Document:

ELTRAX SYSTEMS PTY LTD

                         AREMISSOFT AUSTRALIA PTY LIMITED

                             AREMISSOFT CORPORATION

                            ELTRAX INTERNATIONAL, INC

                             VERSO TECHNOLOGIES, INC

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                            DEED OF SALE AND PURCHASE
                                   OF BUSINESS

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                            CORRS CHAMBERS WESTGARTH
                                     Lawyers
                        Level 32, Governor Phillip Tower
                                 1 Farrer Place
                                 SYDNEY NSW 2000
                                    AUSTRALIA
                               Tel: (02) 9210 6500
                               Fax: (02) 9210 6611
                                 DX: 133 SYDNEY

                                      Ref:

                                    S/1096829

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<TABLE>
<S>                                                                                                         <C>

                                    CONTENTS

1          INTERPRETATION............................................................................................1
           1.1       Definitions.....................................................................................1
           1.2       Construction....................................................................................6
           1.3       Headings........................................................................................7

2          TRANSACTION...............................................................................................7
           2.1       Sale and purchase of the Business...............................................................7
           2.2       Assumed Liabilities.............................................................................7
           2.3       Representations.................................................................................7
           2.4       Inconsistency...................................................................................8
           2.5       Purchase Price apportionment....................................................................8

3          PURCHASE PRICE............................................................................................8
           3.1       Time and manner of payment......................................................................8

4          COMPLETION................................................................................................8

5          AGREEMENT TO ACQUIRE FOREIGN OPERATIONS...................................................................8

6          CONDITIONS TO COMPLETION..................................................................................8
           6.1       Conditions to obligation of Purchaser...........................................................8
           6.2       Conditions to obligation of the Vendor.........................................................10

7          EMPLOYEES................................................................................................10
           7.1       Offers of Employment...........................................................................10
           7.2       Vendor's Obligation to Transferring Employees..................................................11
           7.3       Purchasers Obligation to Transferring Employees................................................11
           7.4       Indemnity......................................................................................11

8          COVENANTS OF THE PURCHASER...............................................................................11
           8.1       Affirmative Covenants..........................................................................11
           8.2       Cooperation....................................................................................12
           8.3       Expenses.......................................................................................12
           8.4       Publicity......................................................................................12
           8.5       Cooperation....................................................................................12

9          covenants of the vendor..................................................................................13
           9.1       Affirmative covenants..........................................................................13
           9.2       Covenant not to compete........................................................................13
           9.3       Access and information.........................................................................13
           9.4       No solicitation................................................................................14
           9.5       Conduct of Business pending the Transactions...................................................14
           9.6       Cooperation....................................................................................15
           9.7       Expenses.......................................................................................16
           9.8       Publicity......................................................................................16
           9.9       Updating the Schedules and Disclosure Documents................................................16
           9.10      Payment of Unassumed Liabilities...............................................................16

<PAGE>

10         INDEMNITY BY Vendor......................................................................................16

11         INDEMNITY BY PURCHASER AND PURCHASER'S GUARANTOR.........................................................17

12         Remedies.................................................................................................17
           12.1      Procedures.....................................................................................18
           12.2      Negotiation....................................................................................18
           12.3      Failure to Respond.............................................................................18
           12.4      Co-operation...................................................................................18
           12.5      Initial Limitation.............................................................................19
           12.6      Aggregate Limitation...........................................................................19
           12.7      Available Insurance Limitation.................................................................19
           12.8      Accounts Adjustment Limitation.................................................................19
           12.9      Application of Indemnification Provisions......................................................20

13         PURCHASER'S GUARANTOR....................................................................................20

14         TERMINATION..............................................................................................20

15         AMENDMENT................................................................................................21

16         WAIVER...................................................................................................21

17         RELIEF...................................................................................................21

18         WARRANTOR'S OBLIGATIONS..................................................................................21
           18.1      Guarantee......................................................................................21
           18.2      Indemnity......................................................................................22
           18.3      Guarantee not to be affected...................................................................22
           18.4      Continuing guarantee...........................................................................22
           18.5      No competition.................................................................................22
           18.6      Guarantee in addition to other rights of the Purchaser.........................................22
           18.7      Representations by the Warrantor...............................................................23

19         GST......................................................................................................23
           19.1      Definitions....................................................................................23
           19.2      Sums exclude GST...............................................................................23
           19.3      Responsibility for GST.........................................................................23
           19.4      Supply of going concern........................................................................23
           19.5      Reimbursement of expenses......................................................................24
           19.6      Tax invoice....................................................................................24

20         GENERAL PROVISIONS.......................................................................................24
           20.1      Collection of Accounts Receivable..............................................................24
           20.2      Arbitration....................................................................................25
           20.3      Notices........................................................................................25
           20.4      Interpretation.................................................................................26
           20.5      Survival of Representations and Warranties.....................................................26
           20.6      Miscellaneous..................................................................................26

<PAGE>

SCHEDULE 1 - WARRANTIES.............................................................................................28

1          REPRESENTATIONS AND WARRANTIES OF PURCHASER..............................................................30

2          REPRESENTATIONS AND WARRANTIES OF THE VENDOR.............................................................31

SCHEDULE 2 - DISCLOSURE DOCUMENT....................................................................................41

SCHEDULE 3 - ACCOUNTS...............................................................................................43

SCHEDULE 4 - EMPLOYEES..............................................................................................44

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<PAGE>

THIS DEED is made on                                          2000

BETWEEN  Eltrax  Systems  Pty Ltd ACN 053  993  025 a  company  incorporated  in
     Australia  of, Unit A, Level 2, 15 Rodborough  Road,  Frenchs  Forest,  New
     South Wales ("Vendor")

AND  AREMISSOFT  Australia Pty Limited ACN 094 649 377 a company incorporated in
     Australia of Unit A, Level 2, 15 Rodborough Road, Frenchs Forest, New South
     Wales ("Purchaser")

AND  AremisSoft  Corporation of 216 Haddon Avenue,  Suite 607, Westmont NJ 08108
     ("Purchaser Guarantor")

AND  Eltrax  International Inc and Verso  Technologies Inc. both of 400 Galleria
     Parkway, Suite 300, Atlanta, GA 30339 ("Warrantor")

-RECITALS:

A    The Vendor is the owner of and carries on the Business.

B    The Vendor  desires to sell the Business  including the Goodwill as a going
     concern and the  Purchaser  has agreed to  purchase  the  Business  for the
     Purchase Price on the terms of this Agreement.

C    To induce  the  Purchaser  to enter into this  document  the Vendor and the
     Warrantor  have made  representations  to the Purchaser in the terms of the
     Warranties  with the  intention  that the  Purchaser  should  rely upon the
     Warranties.

D.   To induce the Vendor to enter into this  document  the  Purchaser  has made
     representations to the Vendor in terms of the Warranties with the intention
     that the Vendor should rely upon the Warranties

E    The Warrantor has agreed to guarantee the  performance by the Vendor of the
     Vendor's obligations under this Agreement in consideration of the Purchaser
     entering into this Agreement.

F    The  Purchaser's  Guarantor has agreed to guarantee the  performance by the
     Purchaser  of  the   Purchaser's   obligations   under  the   Agreement  in
     consideration of the Vendor entering into the Agreement.

it is agreed

1    INTERPRETATION

1.1  Definitions

     In this Agreement:

<PAGE>

"Accounting Standards" means:

(a)  the accounting standards as defined in the Corporations Law;

(b)  where  not  inconsistent  with  the  accounting  standards  referred  to in
     paragraph (a) Australian Accounting Standards; and

(c)  where  not  inconsistent  with  the  accounting  standards  referred  to in
     paragraph  (a)  or  Australian  Accounting  Standards,  generally  accepted
     accounting principles and practices in Australia consistently applied.

"Accounts"  means profit and loss  accounts and balance  sheet of the Vendor and
includes all  statements,  reports and notes  attached to or intended to be read
with  any of  those  profit  and loss  accounts  or  balance  sheets  and  where
appropriate:

(a)  financial  statements  required  under  Division  4  of  Part  3.6  of  the
     Corporations Law;

(b)  a copy of the director's  statement  under section 301 of the  Corporations
     Law; and

(c)  a copy of the auditor's report under section 332 of the Corporations Law,

a copy of which comprises Schedule 3

"Accounts Date" means 30 September 2000.

"Agreement" means this Agreement for the Purchase and Sale of Assets,  including
all of the Schedules specifically referred to in this Agreement that are or have
been delivered by a party to this Agreement to another party in connection  with
the Agreement,  and including all duly adopted  amendments,  modifications,  and
supplements to or of this Agreement.

"Assets" means all assets used in the Business including without limitation:

(a)  the Intellectual Property;

(b)  the Software Products; and

(c)  all  other  assets  of  the  Vendor,   tangible  or  intangible  (including
     contractual  warranty,  and  other  rights),  the use or  value of which is
     related to the assets so identified.

"Assumed  Liabilities" means those known Liabilities reflected in the accounting
records of the Vendor to be assumed by the Purchaser pursuant to this Agreement,
consisting  of those known and  absolute  Liabilities  reflected  in the Balance
Sheet, effected through the operation of the Business in the ordinary course and
no other Liabilities.

<PAGE>

"Australian  Accounting  Standards" means the accounting standards issued by the
Institute of Chartered  Accountants in Australia and the  Australian  Society of
Certified Practising Accountants.

"Balance  Sheet" means the Balance  Sheet as at 30 September  2000 included with
the Accounts and as set out in Schedule 3.

"Balance Sheet Gains" means any realisation with respect to any current Asset in
excess of its value as reflected in the Accounts (as adjusted to account for any
ordinary  course  changes  prior  to  the  Completion  Date),  or  any  positive
realisation with respect to any liability reflected in the Accounts (as adjusted
to account for any ordinary course changes prior to the Completion Date).

"Business"  means the  Vendor's  development  and  distribution  of software and
hardware for the hospitality  industry and associated  businesses as at the date
of this agreement.

"Business  Day" means a day on which trading banks are open for general  banking
business in Sydney, Australia and Atlanta, United States of America.

"Completion"  means  completion  of the sale and  purchase  of the  Business  in
accordance with the terms of this Agreement.

"Completion  Date" means the date on which the sale and purchase of the Business
is completed, in accordance with clause 2.1.

"Corporations  Law" means the Corporations Law and the Corporations  Regulations
in each Australian  jurisdiction and (where the context so permits) includes any
statute, ordinance, code or any prior corresponding legislation.

"Disclosure  Document"  means  the  document  delivered  by  the  Vendor  to the
Purchaser containing certain disclosures  relative to this Agreement,  a copy of
which is attached as Schedule 2.

"Employees"  means all the  employees  of the  Vendor  engaged  in the  Business
including, those listed in Schedule 4.

"Entity" means a corporation,  partnership, sole proprietorship,  joint venture,
or other form of  organisation  formed for the  conduct of a  business,  whether
passive or active.

"Guarantee"  means the guarantee  and indemnity  granted by the Warrantor to the
Purchaser by clause 18.

"Guarantee  and  Indemnity"  means the guarantee  and  indemnity  granted by the
Warrantor to the Purchaser in accordance with clause18.

"Intellectual  Property" means all Software Products  (including but not limited
to,  all  versions,  renewals,  modifications  and  extensions  of any  Software
Product), patents, applications, trade and service marks, trade and service mark
registrations,  business names, copyrights, licenses, sub-licenses,  inventions,
trade secrets,  technology,  know-how,  domain names,  customer lists,  prospect
lists and other similar intangible property.

<PAGE>

"Inventories"  means the stock of raw  materials,  work in progress and finished
goods, including but not limited to finished goods purchased for resale, held by
the Vendor for manufacturing, assembly, processing, finishing, sale or resale to
others from time to time in the ordinary course of business of the Vendor in the
form in which such inventories are then held or after manufacturing, assembling,
finishing, processing, incorporating with other goods or items, refining and the
like.

"Liabilities" at any point in time ("The  Determination  Time"), the obligations
of a person  or  Entity,  whether  known or  unknown,  contingent  or  absolute,
recorded  on its  books or not,  arising  or  resulting  in any way from  facts,
events,  agreements,  obligations or occurrences that existed or transpired at a
prior point in time, or resulted  from the passage of time to the  Determination
Time.

"Loss" means any loss  (including  loss of profit and loss of expected  profit),
claim, action, liability,  damage, cost, charge, expense, diminution in value or
deficiency of any kind or character which the Purchaser pays,  suffers or incurs
or is liable for including, without limitation:

     (i)  all liabilities on account of Taxes;

     (ii) all interest and other amounts payable to third parties; and

     (iii) all legal(on a full indemnity  basis) and other expenses  incurred in
          connection  with  investigating  or  defending  any  claim or  action,
          whether or not  resulting  in any  liability  and all amounts  paid in
          settlement of claim or action.

"Principal  Agreement"  means the  Agreement  for the  Purchase  and Sale Assets
between  AremiSsoft  Corporation,  a Delaware  Corporation as Purchaser,  Eltrax
Systems,  Inc, a Minnesota  Corporation and Eltrax  Hospitality  Group,  Inc., a
Georgia Corporation, as Seller and dated on or about the date of this Agreement.

"Projections" means the projections of economic results of the Business prepared
by the Vendor on a monthly  basis  through 31 December 2000 and delivered to the
Purchaser  pursuant to the terms of this Agreement.  Such  Projections  include,
separately  and  consolidated,  projected  financial  results for each  separate
business operation of the Business.

"Property  Plant and  Equipment"  means all property plant and equipment used in
the Business and reflected in the Balance Sheet.

"Proprietary  Rights"  means trade  secrets,  copyrights,  patents,  trademarks,
service  marks,  customer  lists,  and all similar types of intangible  property
developed  created or owned by the Vendor in connection  with the Assets or used
by the  Vendor in  connection  with its  business,  whether  or not the same are
entitled to legal protection.

"Purchase Price" means USD$300,000.00.

"Receivables" means accounts receivable,  notes receivable and other obligations
appearing  as assets in the books of the Vendor,  and  customarily  reflected as

<PAGE>

assets in the  Accounts of the Vendor  prepared in  accordance  with  Australian
Accounting Standards, indicating monies owed to the Vendor.

"Related  Transaction"  means  the sale by  Verso  Technologies  Inc and  Eltrax
Hospitality  Systems  Inc of  its  assets  and  liabilities  of  its  operations
currently conducted in the foreign  jursidictions of Belgium (Eltrax Group Inc),
Hong Kong (Eltrax Hospitality Ltd), Malayasia (Eltrax Malayasia) SBD. HD, Norway
(Eltrax Systems Scandanavia AS), Singapore (Eltrax Systems Pty Ltd),  Switerland
(Eltrax Holdings AG) and the United Kingdom (Eltrax UK Limited).

"Software  Products" means any instruction or  instructions,  in source code, or
object code format,  for  controlling  the operation of any computer  processing
unit together with all user documentation  related thereto, and the Great Plains
Software Australasian Partnership Agreement between Sulcus Australia Pty Ltd and
Great Plains Software Pty Ltd.

"Taxes" includes:

     (a)  all taxes levied,  imposed or assessed under the Income Tax Assessment
          Act or any other statute, ordinance or law, in Australia or elsewhere;
          and

     (b)  taxes in the nature of sales tax,  consumption  tax,  value added tax,
          payroll  tax,  group tax,  PAYE,  undistributed  profits  tax,  fringe
          benefits tax, recoupment tax,  withholding tax, land tax, water rates,
          municipal rates, stamp duties, gift duties or other state, territorial
          goods  and  services  tax,   Commonwealth  or  municipal   charges  or
          impositions levied, imposed or collected by any government body

together with any additional tax, interest, penalty, charge, fee or other amount
of any kind  assessed,  charged or imposed in relation to the non, late or short
payment of the same or the failure to file any return.

"Transaction"  means the sale of the Assets,  and the  assumption of the Assumed
Liabilities,  for the Purchase  Price as provided  for, and subject to the terms
and conditions of this Agreement.

"Transferring  Employee" means all of the Employees of the Vendor who accept the
Purchaser's offer of employment.

"Unaudited  Financial  Statements"  means the Balance  Sheet as at 30  September
2000,  the  financial  statements  for the period ended 31 December 1999 and the
related  notes  prepared for the Business,  but  excluding the Excluded  Assets,
prepared in accordance with Australian Accounting Standards.

"US Transaction" means the Agreement for the Sale and Purchase of Assets between
AremisSoft Corporation,  a Delaware Corporation,  as Purchaser,  Eltrax Systems,
Inc,.  a Minnesota  corporation,  and Eltrax  Hospitality  Group Inc., a Georgia
Corporation, as Seller.

"Warranties" means all of the representations of the Vendor and the Purchaser in
this document including those set out in Schedule 1.

<PAGE>

1.2  Construction

     Unless expressed to the contrary:

     (a)  words importing:

          (i)  the singular include the plural and vice versa;

          (ii) any gender includes the other genders;

     (b)  if a word  or  phrase  is  defined  cognate  words  and  phrases  have
          corresponding definitions;

     (c)  a reference to:

          (i)  a person includes a firm, unincorporated association, corporation
               and a government or statutory body or authority;

          (ii) a person includes its legal personal representatives,  successors
               and assigns;

          (iii)a statute,  ordinance, code or other law includes regulations and
               other  statutory   instruments   under  it  and   consolidations,
               amendments, re-enactments or replacements of any of them;

          (iv) a right  includes a benefit,  remedy,  discretion,  authority  or
               power;

          (v)  an  obligation  includes  a  warranty  or  representation  and  a
               reference  to a failure  to  observe  or  perform  an  obligation
               includes a breach of warranty or representation;

          (vi) provisions  or  terms  of  this  document  or  another  document,
               agreement,  understanding  or arrangement  include a reference to
               both express and implied provisions and terms;

          (vii) time is to local time in Sydney, Australia;

         (viii)"USD$" or "US dollars" is a reference to the lawful currency of
               the United States;

          (ix) writing includes any mode of representing or reproducing words in
               tangible and  permanently  visible form,  and includes  facsimile
               transmissions; and

          (x)  any  thing  (including,  without  limitation,  any  amount)  is a
               reference  to the  whole or any part of it and a  reference  to a
               group of things or persons is a  reference  to any one or more of
               them.

     (d)  a reference to this  document  includes all  schedules,  annexures and
          appendices referred to in it;

<PAGE>

     (e)  the Warranties are to be construed separately, and the meaning of each
          Warranty  is in no way  limited by  reference  to any other  covenant,
          warranty or representation contained in this document; and

     (f)  no written  statement by or on behalf of the Vendor or any third party
          or state of  knowledge  of the  Purchaser  contrary to the  Warranties
          other than the  Disclosure  Letter is to result in or cause the waiver
          of any or all of the Warranties.

1.3  Headings

     Headings do not affect the interpretation of this document.

2    transaction

2.1  Sale and purchase of the Business

     On the  Completion  Date subject in all  instances to each of the terms and
     conditions  contained in this Agreement,  the Vendor shall sell,  transfer,
     convey, and assign to the Purchaser, by instruments reasonably satisfactory
     in form and substance to the  Purchaser,  and the  Purchaser  shall acquire
     from the Vendor, the Assets, and shall assume the Assumed Liabilities,  and
     only those Liabilities, in exchange for the Purchase Price.

2.2  Assumed Liabilities

     (a)  The parties agree that the Purchaser is not assuming,  becoming liable
          for,  or agreeing to  discharge  or in any manner  becoming in any way
          responsible  for any of the  Liabilities  of the Vendor other than the
          Assumed  Liabilities.  The Purchaser hereby agrees to pay, perform, or
          discharge all of the Assumed Liabilities.

     (b)  The  Purchaser  agrees that its  obligation  to pay and  discharge the
          Assumed   Liabilities   is  continuing   and  will  not  merge  or  be
          extinguished on Completion.

2.3  Representations

     The Vendor:

     (a)  represents that the Assets are all the assets reasonably necessary for
          the  conduct of the  Business in the  ordinary  course  (exclusive  of
          working capital) in the same manner as that in which such business has
          been conducted in the immediate past,  including,  without limitation,
          all Proprietary  Rights,  Software Products and Intellectual  Property
          used  in the  ordinary  conduct  of the  Business  and  all  contract,
          warranty,  and other  intangible  rights relating to or arising out of
          the Business;

     (b)  represents that, prior to Completion the Vendor holds all right, title
          and  interest  in the Assets  and that there are no other  agreements,
          understandings,  or arrangements which, as or after Completion,  would
          materially  adversely  affect  the  Assets  and the  Business,  or the

<PAGE>

          ability of the Vendor to sell, transfer,  convey and assign the Assets
          and the Business to the  Purchaser or result in the  assumption of any
          Liabilities by the Purchaser other than the Assumed Liabilities.

2.4  Inconsistency

     In the event of a conflict  between a provision of this  Agreement  and any
     provision of the  Principal  Agreement,  the  provisions  of the  Principal
     Agreement will prevail unless they are illegal,  unenforceable or relate to
     the laws of foreign jurisdiction.

2.5  Purchase Price apportionment

     (a)  The Purchase Price is to be apportioned between the Assets as follows:

          (i)  Accounts Receivable                          US$200,000
          (ii) Inventory                                    US$ 75,000
          (iii) Property, Plant and Equipment               US$ 25,000

3    PURCHASE PRICE

3.1  Time and manner of payment

     Payment of the Purchase Price by the Purchaser shall be made in immediately
     available  funds by wire transfer to such account or accounts of the Vendor
     as are notified to the  Purchaser in writing not less than 3 Business  Days
     prior to Completion.

4    Completion

     Completion shall simultaneously take place at the offices of the Purchaser,
     counsel to the  Purchaser,  the Vendor,  counsel to the Vendor,  or at such
     other places as the parties to this Agreement may agree.

5    Agreement to acquire foreign operations

     On or prior to the Completion  Date,  certain assets and liabilities of the
     operations of the Warrantor  currently  conducted in the United States will
     be sold. Completion of this Transaction,  shall be dependent on the closing
     of the US Transaction, such that this Transaction shall not close until the
     US  Transaction  closes,   notwithstanding  any  other  provision  of  this
     Agreement  or of the  purchase  agreement  for  the US  Transaction  to the
     contrary.

6    conditions to completion

6.1  Conditions to obligation of Purchaser

     The obligation of the Purchaser to effect the Transaction  shall be subject
     to the  fulfilment at or prior to  Completion of the following  conditions,
     unless the Purchaser agrees to waive such fulfilment:

<PAGE>

     (a)  this  Agreement  and the  Transaction  contemplated  by it shall  have
          received those approvals, consents,  authorisations,  and waivers from
          government  and other  regulatory  agencies  and other  third  parties
          (including  lenders,  holders  of debt,  securities  and  lessors)  as
          necessary;

     (b)  there shall not be in effect a preliminary or permanent  injunction or
          other  order by any federal or state  court or other  authority  which
          prohibits the completion of the Transaction;

     (c)  the Vendor shall have  performed in all material  respects each of its
          agreements and obligations contained in this Agreement and required to
          be performed  on or prior to the  Completion  and shall have  complied
          with  all  material   requirements,   rules  and  regulations  of  all
          regulatory   authorities   having   jurisdiction   relating   to   the
          Transaction;

     (d)  no material  adverse  change  shall have taken place in the  business,
          condition  (financial  or otherwise)  operations,  or prospects of the
          Business or the Assets since the date of the Balance  Sheet other than
          those,  if any,  that  result  from  the  changes  permitted  by,  and
          transactions contemplated by, this Agreement;

     (e)  the  representations  and  warranties for the Vendor set forth in this
          Agreement  shall be true in all  material  respects  as of the date of
          this  Agreement  or,  except in such  respects  as, in the  reasonable
          judgment of the Purchaser,  do not materially and adversely affect the
          business condition (financial or otherwise),  operations, or prospects
          of the Business or the Assets, at the Completion Date as if made as of
          such time;

     (f)  the Purchaser shall have received from the Vendor documents sufficient
          to transfer  title of the Assets to the  Purchaser and the delivery of
          all  Software  Products  and  Intellectual   Property,  in  each  case
          reasonably satisfactory in form and substance to the Purchaser and its
          counsel;

     (g)  all conditions to the completion of the US  Transaction,  as described
          in clause 5 above,  have been satisfied or waived, it being an express
          requirement  that  the US  Transaction  described  in  clause  5 above
          complete on the same day,  adjusted for the appropriate  time zone for
          that jurisdiction;

     (h)  the  employment  agreements  between  the  Purchaser  and the  persons
          identified  in  Schedule D have been  executed  and  delivered  by the
          parties;

     (i)  the Vendor will use commercially  reasonable efforts to make available
          to the  Purchaser  prior to Completion  an updated  unaudited  balance
          sheet and income  statement with related notes and schedules as of the
          end of the month  immediately  prior to the Completion  Date. If those
          updated financial statements are produced, they shall, for purposes of
          the  definition  of  "Unaudited  Financial  Statements",  replace  and
          supersede  the  balance  sheet  as at 31  July  2000  and  the  income
          statement for the period ended 30 September  2000, in their  entirety,
          for all purposes relevant to this Agreement; and

<PAGE>

6.2  Conditions to obligation of the Vendor

     The obligation of the Vendor to effect the Transaction  shall be subject to
     the  fulfilment  at or prior to  Completion  of the  following  conditions,
     unless the Vendor waives such fulfilment:

     (a)  this  Agreement  and the  Transaction  contemplated  hereby shall have
          received those approvals,  consents,  authorisations  and waivers from
          governmental  and other  regulatory  agencies and other third  parties
          (including lenders, holders of debt securities and lessors);

     (b)  there shall not be in effect a preliminary or permanent  injunction or
          other  order by any federal or state  authority  which  prohibits  the
          completion of the Transaction;

     (c)  the Purchaser  shall have  performed in all material  respects each of
          its agreements and obligations contained in this Agreement required to
          be performed on or prior to  Completion  and shall have  complied with
          all material  requirements,  rules and  regulations  of all regulatory
          authorities having jurisdiction relating to the Transaction;

     (d)  the  representation  and warranties of the Purchaser set forth in this
          Agreement  shall be true in all  material  respects  as of the date of
          this Agreement  and,  except in such respects as do not materially and
          adversely  affect the business of the Purchaser,  taken as a whole, as
          of the Completion Date as if made as of such time;

     (e)  the  Vendor  shall  have   received   from  the   Purchaser   evidence
          satisfactory to the Vendor and its counsel that the Purchase Price has
          been,  or is in  the  process  of  being,  delivered  in the  form  of
          immediately   available   funds  via  wire  transfer  or  other  means
          acceptable to the Vendor;

     (f)  all  other  conditions  to  the  closing  of the  US  Transaction,  as
          described in clause 5 above,  have been satisfied or waived,  it being
          an express  requirement that the US Transaction as described in clause
          5 above, close on the same day, adjusted for the appropriate time zone
          for that jurisdiction.

7    employees

7.1  Offers of Employment

     (a)  The Purchaser  must offer  employment in writing to the Employees with
          effect from the Completion Date.

     (b)  The terms of the employment  offered must be at least as favourable as
          the  terms  of the  Employees  current  terms of  employment  with the
          Vendor.

<PAGE>

7.2  Vendor's Obligation to Transferring Employees

     At the Completion Date the Vendor must terminate the Transferring Employees
     in writing.

7.3  Purchasers Obligation to Transferring Employees

     The Purchaser  must assume  liability for all  compensation  and employment
     entitlements  for the employees  indicated in Schedule 4 accrued but unpaid
     prior to the  Completion  Date  including  without  limitation,  and to the
     extent applicable:

     (a)  payment in lieu of notice or redundancy payment that the Vendor may be
          obliged to pay to the Employee on the  termination  of the  Employee's
          employment with the Vendor;

     (b)  commissions,  bonuses,  salary and accrued but  untaken  long  service
          leave  entitlements,  superannuation and all other award and statutory
          entitlements for the Transferring Employees; and

     (c)  untaken annual leave entitlements for Transferred Employees.

7.4  Indemnity

     The  Purchaser  fully  and   unconditionally   indemnifies  and  will  keep
     indemnified the Vendor (its directors,  officers,  agents and employees) in
     respect of any cost, claim,  demand,  loss,  expense or damages directly or
     indirectly  incurred or which may be directly or indirectly incurred by the
     Vendor (its directors, officers, agents and employees) in relation to:

     (a)  a breach by the Purchaser of its obligations under this clause 7 ; or

     (b)  the  termination  by the Vendor or any of its  employees in accordance
          with the terms of this Agreement.

8    Covenants of the purchaser

8.1  Affirmative Covenants

     From the date hereof  through the  Completion  Date, the Purchaser will use
     commercially reasonable efforts to satisfy the conditions to Completion set
     forth in this  Agreement  and  otherwise to ensure the prompt and expedient
     completion  of  the  Transaction  substantially  as  contemplated  by  this
     Agreement,  and will  use  commercially  reasonable  efforts  to cause  the
     Transaction   to  be  completed,   provided  in  all  instances   that  the
     representations  and  Warranties  of the Vendor in this  Agreement  are and
     remain true and  accurate in all material  respects and that the  covenants
     and  agreements  of the Vendor in this  Agreement are honoured and that the
     conditions to the  obligations of the Purchaser set forth in this Agreement
     are not incapable of satisfaction.

<PAGE>

8.2  Cooperation

     The Purchaser shall  reasonably  cooperate with the Vendor and its counsel,
     accountants  and  agents  in every  way in  carrying  out the  Transactions
     contemplated herein, and in delivering all documents and instruments deemed
     reasonably necessary or useful by the Vendor.

8.3  Expenses

     Whether  or not the  Transaction  is  completed,  all  costs  and  expenses
     incurred  by the  Purchaser  in  connection  with the  preparation  of this
     Agreement and in preparation for the Transactions contemplated hereby shall
     be paid by the Purchaser.

8.4  Publicity

     Prior  to the  Completion  any  written  news  releases  by  the  Purchaser
     pertaining to this Agreement or the  Transaction  shall be submitted to the
     Vendor for review and approval prior to release by the Purchaser, and shall
     be released only in a form approved by the Vendor, provided, however that:

     (a)  such approval shall not be unreasonably withheld; and

     (b)  such  review and  approval  shall not be  required  of releases by the
          Purchaser if prior review and  approval  would  prevent the timely and
          accurate dissemination of such press release as required to comply, in
          the judgment of counsel, with any applicable law, rule or policy.

8.5  Cooperation

     (a)  The Purchaser  acknowledges that  post-Completion,  the Vendor will be
          dissolved,  its  assets  liquidated  and its  affairs  wound  up.  The
          Purchaser will reasonably cooperate with the Vendor and its respective
          counsel, accountants,  agents and representatives in every way in that
          regard and in executing and delivering  all documents and  instruments
          deemed reasonably necessary or useful by the Vendor in that regard.

     (b)  Without  limiting  the  foregoing,  the  Purchaser  shall use its best
          efforts to cause  those  employees  of the Vendor  who  currently  are
          officers  of the Vendor and who become  employed by the  Purchaser  to
          remain as officers of the Vendor, without compensation,  and shall use
          its best efforts to cause such  employees  to execute and deliver,  on
          behalf of the Vendor,  the documents and  instruments  contemplated in
          the  immediately  preceding  sentence  and to  otherwise  further  the
          dissolution,  liquidation and winding up of the Vendor, as directed by
          the  Vendor,  provided,  however,  that  the  Purchaser  shall  not be
          required to take any action  which may expose the  Purchaser or any of
          its  officers,  directors,  employees  or agents to any  liability  in
          connection with such action.

     (c)  The Vendor shall  reimburse the  Purchaser for any and all  reasonable
          out-of-pocket expenses which it incurs and pays in connection with its
          duties and obligations  under this clause 8.5 but the Vendor shall not
          be  required  to  reimburse  the  Purchaser  for the time spent by its

<PAGE>

          employees in furtherance of such duties and obligations.

     (d)  The  Purchaser  shall use its best efforts to retain,  and on request,
          shall  provide the Vendor  with access to or copies of, all  documents
          which  the  Vendor  may  reasonably  request  in  connection  with the
          dissolution,  liquidation and winding up of the Vendor or in preparing
          and filing any and all tax returns and  financial  statements  for any
          periods ending on or prior to 31 December 2000, or in connection  with
          any audit  activities in respect of any periods  ending on or prior to
          31 December 2000.

9    covenants of the vendor

9.1  Affirmative covenants

     From the date hereof  through  the  Completion  Date,  the Vendor will take
     every  action  reasonably  required  of it to  satisfy  the  conditions  to
     Completion  set forth in this  Agreement and otherwise to ensure the prompt
     and expedient  completion of the Transaction  substantially as contemplated
     hereby,  and will exert all reasonable  efforts to cause the Transaction to
     be  completed,  provided  in all  instances  that the  representations  and
     warranties  of the  Purchaser  in this  Agreement  are and remain  true and
     accurate and that the  covenants  and  agreements  of the Purchaser in this
     Agreement are honoured and that the  conditions to the  obligations  of the
     Vendor set forth in this Agreement are not incapable of satisfaction.

9.2  Covenant not to compete

     The Vendor will execute a five (5) year non-competition  agreement with the
     Purchaser to preclude the Vendor from engaging in any business  competitive
     with  that  of  the  Business,   directly  or   indirectly,   alone  or  in
     collaboration with others, except with the written consent of the Purchaser
     or as a shareholder  of less than one percent (1%) of the common stock of a
     publicly held company  engaged in one or more of such  businesses  and with
     such other terms as are mutually acceptable to the Vendor and Purchaser.

9.3  Access and information

     Subject  to  the  terms  and  conditions  of the  existing  confidentiality
     agreement between the Vendor and the Purchaser (the terms and conditions of
     which are  incorporated  herein  by  reference),  between  the date of this
     Agreement and the Completion  Date the Vendor shall afford to the Purchaser
     and to the  Purchaser's  accountants,  counsel,  and other  representatives
     reasonable  access during normal business hours throughout the period prior
     to  Completion to all of its  properties,  books,  contracts,  commitments,
     records  (including,  but not  limited  to,  tax  returns),  and  personnel
     relating  to the Assets or the  Business  and,  during such  period,  shall
     furnish promptly to the Purchaser:

     (a)  all written  communications  to its  directors or to its  shareholders
          generally relating to the Assets or the Business;

     (b)  internal  monthly  financial  statements  of the Business  when and as
          available; and

<PAGE>

     (c)  all other  information  relating to the Assets or the  Business as the
          Purchaser may reasonably  request,  but no  investigation  pursuant to
          this clause 9.3 shall affect any  representations or Warranties of the
          Vendor,  or the  conditions  to the  obligations  of the  Purchaser to
          complete the Transaction  contained in this  Agreement.  The Purchaser
          and its  representatives  shall use their best efforts to assert their
          rights hereunder in such a manner as to minimise interference with the
          business of the Vendor.

9.4  No solicitation

     Until  the  Completion  Date  or  the  termination  of  this  Agreement  in
     accordance  with its terms,  the Vendor,  and those  acting on behalf of it
     will not, and the Vendor will use its best  efforts to cause its  officers,
     employees,  agents and representatives (including any investment banker) to
     not,  directly  or  indirectly,   solicit,   encourage,   or  initiate  any
     discussions  with,  or  negotiate or  otherwise  deal with,  or provide any
     information  to, any  person or Entity  other  than the  Purchaser  and its
     officers,  employees  and agents in relation to the Assets or the Business.
     The  Vendor  will  notify  the  Purchaser  immediately  upon  receipt of an
     inquiry,  offer or proposal  relating to any of the foregoing.  None of the
     foregoing  shall  prohibit  providing  information to others in a manner in
     keeping with the ordinary  conduct of the Vendor's  business,  or providing
     information to government authorities.

9.5  Conduct of Business pending the Transactions

     The Vendor  covenants  and agrees  with the  Purchaser  that,  prior to the
     completion of the Transaction or the termination of this Agreement pursuant
     to its terms,  unless the  Purchaser  shall  otherwise  consent in writing,
     which consent shall not be unreasonably  withheld or delayed, and except as
     otherwise  contemplated  by this  Agreement or disclosed in the  Disclosure
     Document, the Vendor will comply with each of the following:

     (a)  the Business,  and the other  businesses that relate to, use or affect
          the Assets,  if any, will be conducted  only in the ordinary and usual
          course,  the Vendor  shall use  reasonable  efforts to keep intact the
          business  organisation  and good will of the Business,  keep available
          the services of its employees whose principal activities relate to the
          Business and maintain relationships, in a manner reasonably consistent
          with  historical  practices,  with  suppliers,   lenders,   creditors,
          distributors,  employees,  customers  and others  having  business  or
          financial  relationships  with the Business,  and it shall immediately
          notify the Purchaser of any event or occurrence or emergency  material
          to and not in the  ordinary  and usual  course  of  business  of,  the
          Business or affecting any material part of the Assets;

     (b)  it shall not  create,  incur or assume  any  long-term  or  short-term
          indebtedness  for money borrowed or make any capital  expenditures  or
          commitment for capital expenditures,  affecting the Business or any of
          the Assets,  except in the ordinary  course of business and consistent
          with past practice;

<PAGE>

     (c)  it shall not:

          (i)  adopt,   enter   into,   or  amend  a  bonus,   profit   sharing,
               compensation,   stock  option,  warrant,   pension,   retirement,
               deferred compensation,  employment,  severance,  termination,  or
               other employee benefit plan,  agreement trust fund or arrangement
               for the benefit or welfare of any employees of the Business; or

          (ii) agree to any material (in  relation to  historical  compensation)
               increase in the compensation  payable or to become payable to, or
               any increase in the  contractual  term of employment of, any such
               employee  except,  with respect to employees who are not officers
               or directors,  in the ordinary  course of business and consistent
               with past practice.

     (d)  it shall not sell, lease, mortgage,  encumber, or otherwise dispose of
          or  grant  any  interest  in any  of  the  Assets  except  for  sales,
          encumbrances  and other  dispositions or grants in the ordinary course
          of business of the  Business  and  consistent  with past  practice and
          except for liens for taxes not yet due or liens or  encumbrances  that
          are not  material in amount or affect and do not impair the use of the
          property,  or as  specifically  provided  for  or  permitted  in  this
          Agreement;

     (e)  it  shall  not  enter  into,  or  terminate,   any  material  contact,
          agreement,  commitment,  or understanding relating to or affecting the
          Assets or the Business;

     (f)  it shall not enter into any agreement,  commitment,  or understanding,
          whether in writing or  otherwise,  with  respect to any of the matters
          referred to in clauses 9.5(a) through (e) above;

     (g)  the Vendor will  continue to properly and  promptly  file when due (or
          obtain proper extensions with respect to) all federal,  state,  local,
          foreign, and other tax returns,  reports, and declarations required to
          be filed by it  relating to the Assets or the  Business,  and will pay
          when due,  all taxes  and  governmental  charges  due  (including  any
          amounts  deferred as a result of an  extension or  otherwise)  from or
          payable by it relating to the Assets or the Business;

     (h)  the Vendor  will  comply in all  material  respects  with all laws and
          regulations  applicable  to the  operations  of the  Business  and the
          utilisation of the Assets;

     (i)  the Vendor will maintain in full force and effect  insurance  coverage
          relating to the Assets or the Business of a type and amount consistent
          with past practice, but not less than that presently in effect.

9.6  Cooperation

     The Vendor will  reasonably  cooperate  with the Purchaser and its counsel,
     accountants  and  agents  in every  way in  carrying  out the  transactions
     contemplated  by  this  Agreement  and  in  delivering  all  documents  and
     instruments deemed reasonably necessary or useful by the Purchaser.

<PAGE>

9.7  Expenses

     Whether  or not the  Transaction  is  completed,  all  costs  and  expenses
     incurred by the Vendor in connection with the preparation of this Agreement
     and  in  preparation  for  the  Transaction  and  in  connection  with  the
     Completion  of the  Transaction  contemplated  hereby  shall be paid by the
     Vendor.

9.8  Publicity

     Prior to the Completion any written news releases by the Vendor  pertaining
     to this  Agreement or the  Transaction  shall be submitted to the Purchaser
     for  review and  approval  prior to  release  by the  Vendor,  and shall be
     released only in a form approved by the Purchaser, provided, however, that:

     (a)  approval shall not be unreasonably withheld; and

     (b)  such  review and  approval  shall not be  required  of releases by the
          Vendor if prior  review  and  approval  would  prevent  the timely and
          accurate dissemination of such press release as required to comply, in
          the judgment of counsel, with any applicable law, rule or policy.

9.9  Updating the Schedules and Disclosure Documents

     The Vendor shall notify the  Purchaser of any changes,  additions or events
     which may cause any change in or addition to the Disclosure Document or any
     Schedules   delivered  by  it  under  this  Agreement  promptly  after  the
     occurrence  of  the  same  and  again  at the  Completion  by  delivery  of
     appropriate  updates to the Disclosure  Document and to all such Schedules.
     No such  notification  made pursuant to this clause shall be deemed to cure
     any breach of any  representation or Warranty made in this Agreement unless
     the  Purchaser  specifically  agrees  hereto in writing  nor shall any such
     notification  be  considered  to constitute or give rise to a waiver by the
     Purchaser of any condition set forth in this Agreement.

9.10 Payment of Unassumed Liabilities

     The Vendor and the  Warrantor  agree to promptly pay when due, or otherwise
     to  discharge,  without  cost or expense to the  Purchaser,  each and every
     Liability  of  it  relating  to  the   Business   other  than  the  Assumed
     Liabilities.

10   INDEMNITY BY Vendor

     The  Vendor  agrees to jointly  and  severally  indemnify,  defend and hold
     harmless,  the  Purchaser  and  its  officers,   directors,   shareholders,
     managers, members, employees,  independent contractors,  agents, successors
     and assigns (the  "Purchaser  Parties"),  for, from and against any and all
     liabilities,  losses,  costs or expenses which any of the Purchaser Parties
     may suffer or for which any of the Purchaser  Parties may become liable and
     which are based on, the result of, arise out of or are otherwise related to
     any of the following:

<PAGE>

     (a)  any   inaccuracy   or   misrepresentation   in,   or   breach  of  any
          representation  or Warranty of the Vendor contained in this Agreement,
          any of the  documents or agreements  executed in connection  with this
          Agreement (the "Attendant  Documents") or any  certificate,  schedule,
          list  or  other  instrument  to be  furnished  by  the  Vendor  to the
          Purchaser   pursuant  to  this  Agreement  or  any  of  the  Attendant
          Documents;

     (b)  any  breach of  failure  of the  Vendor to  perform  any  covenant  or
          agreement  required  to be  performed  by the Vendor  pursuant to this
          Agreement  or  any  of  the  Attendant  Documents  including,  without
          limitation,  the Vendor's obligations to pay the unassumed Liabilities
          under clause 9.10 above;

     (c)  any  and  all  actions,  suits,  proceedings,   demands,  assessments,
          judgments,  costs and expenses,  including reasonable  attorneys' fees
          and consultants' fees (the "Related Expenses").

11   Indemnity by Purchaser and purchaser's guarantor

     The  Purchaser  and the  Purchaser's  Guarantor  hereby agree to indemnify,
     defend  and  hold  harmless,  the  Vendor  from  and  against  any  and all
     liabilities,  losses,  costs or expenses which the Vendor may suffer or for
     which the Vendor  may  become  liable and which are based on, or the result
     of, or arising out of or are otherwise related to any of the following:

     (a)  any   inaccuracy   or   misrepresentation   in,   or   breach  of  any
          representation  of the Purchaser  contained in this Agreement,  any of
          the Attendant  Documents or any certificate,  schedule,  list or other
          instrument to be furnished by the Purchaser to the Vendor  pursuant to
          this Agreement or any of the Attendant Documents; and

     (b)  any breach or failure of the  Purchaser  to perform  any  covenant  or
          agreement  required to be performed by the Purchaser  pursuant to this
          Agreement  or  any  of  the  Attendant  Documents  including,  without
          limitation,  Purchaser's  obligations  to pay the Assumed  Liabilities
          under clause 2.2 above.

12   Remedies

     The  Purchaser  and the Vendor  shall be entitled to exercise and resort to
     all rights and remedies for  misrepresentation or breach as are afforded at
     law  or in  equity,  including  without  limitation,  rescission,  specific
     performance  or such  other  non-monetary  remedies  and  relief  as may be
     afforded  under this  Agreement  or by a court of  competent  jurisdiction.
     Neither the  existence or exercise of any specific  remedies is intended to
     be  exclusive  or  impair  or  otherwise  adversely  affect  in any  manner
     whatsoever any rights, remedies or relief otherwise available, and each and
     every  right and remedy will be  cumulative  and in addition to every other
     right and remedy provided in this Agreement or by law.  Notwithstanding the
     foregoing,  other than actions for fraud or other  intentional  torts,  the
     remedies  set  forth  in this  clause  12 shall  be the  Purchaser  and the
     Vendor's sole and exclusive  remedies  relative to the recovery of economic
     or monetary damages.

<PAGE>

12.1 Procedures

     If any proceedings are instituted or any claim or demand is asserted by any
     person not a party to this  Agreement in respect of which the  Purchaser or
     the Vendor may seek  indemnification  pursuant  to clause 10, or clause 11,
     the indemnified party shall promptly cause written notice (the "Notice") of
     the  assertion  of any such claim or demand to be made to the  indemnifying
     party; provided, however, that the failure of the indemnified party to give
     prompt Notice shall not relieve the  indemnifying  part of its  obligations
     pursuant  to clause 10 and clause 11,  and only to the  extent  that,  such
     failure caused the damages for which the indemnifying party is obligated to
     be greater  than they would have been had the  indemnified  party given the
     indemnifying party prompt Notice in accordance with clause 20.3.

12.2 Negotiation

     Except as otherwise provided:

     (a)  the  indemnifying  party  shall  have the  right,  at its  option  and
          expense,  to defend  against,  negotiate,  or settle any such claim or
          demand,  and if the  indemnifying  party  exercises  that option,  the
          indemnifying  party  shall  not be  liable  for the fees and  expenses
          incurred   after  the  date  the   indemnifying   party  notifies  the
          indemnified  party  of such  exercise  by a  counsel  employed  by the
          indemnified party;

     (b)  an indemnifying  party may not settle any such claim or demand without
          the written consent (which consent shall not be unreasonably withheld,
          conditioned  or  delayed)  of  the   indemnified   party  unless  such
          settlement  requires  no more than a  monetary  payment  for which the
          indemnified  party is fully  indemnified or involves other matters not
          binding upon the indemnified party; and

     (c)  an  indemnifying  party shall not be liable for any  settlement of any
          such claim or demand effected without its prior written consent (which
          consent shall not be unreasonably withheld, conditioned or delayed).

12.3 Failure to Respond

     In the event that the  indemnifying  party shall fail to respond within ten
     (10) days after the giving of the Notice,  then the  indemnified  party may
     retain  counsel  and  conduct  the  defence  thereof as it may, in its sole
     discretion,  deem proper,  at the sole cost and expense of the indemnifying
     party.  The parties agree to cooperate  fully with each other in connection
     with the defence,  negotiation or settlement of any such legal proceedings,
     claim or demand.

12.4 Co-operation

     (a)  The  Purchaser  shall,  and  shall  cause  its  accountants,  counsel,
          employees and other  representatives to reasonably  cooperate with the
          Vendor  in  connection  with any and all  disputes  which may arise in
          connection  with  any and  all  liabilities  other  than  the  Assumed
          Liabilities (the "Excluded Liabilities").

<PAGE>

     (b)  The Vendor shall, and shall cause its accountants,  counsel, employees
          and other  representatives to, reasonably cooperate with the Purchaser
          in connection  with any and all disputes which may arise in connection
          with any and all of the Assumed Liabilities.

     (c)  The  Purchaser  shall cause its  accountants,  counsel,  employees and
          other representatives,  to make available to the Vendor, documents and
          other information and materials  reasonably requested by the Vendor in
          connection  with the Excluded  Liabilities  and the Vendor shall cause
          its   respective   accountants,    counsel,    employees   and   other
          representatives,  to make  available to the  Purchaser,  documents and
          other information and materials  reasonably requested by the Purchaser
          in connection with the Assumed Liabilities.

     The  party  requesting  cooperation  (the  Vendor  in  connection  with the
     Excluded  Liabilities  or the  Purchaser  in  connection  with the  Assumed
     Liabilities) shall pay all out-of-pocket  expenses  reasonably incurred and
     paid by the  cooperating  party to third  parties in  connection  with such
     cooperative  efforts;   provided,   however,   that  the  party  requesting
     cooperation  shall not be obligated to reimburse the cooperating  party for
     the time spent by any of their  employees'  time spent in  connection  with
     such cooperative efforts.

12.5 Initial Limitation

     Other  than the rights to defend and hold  harmless  with  respect to third
     party claims  neither party shall have any  liability  for  indemnification
     pursuant to clause 10 and clause 11 above,  until the  aggregate  amount of
     all losses  suffered by the party seeking  indemnification  with respect to
     such matters  exceeds the sum of $100,000.00  provided  however,  that this
     limitation  shall not apply to  breaches  by the Vendor of its  obligations
     under  clause 10 or the  Purchaser  of its  obligations  to pay the Assumed
     Liabilities.

12.6 Aggregate Limitation

     The aggregate liability,  for either Party, for indemnification pursuant to
     clause 10 and clause 11, shall not exceed the sum of  $100,000.00  provided
     however,  that this limitation shall not apply to breaches by the Vendor of
     its obligations under clause 9.10 above or the Purchaser of its obligations
     to pay the Assumed Liabilities under clause 2.2.

12.7 Available Insurance Limitation

     The amount of any recovery for indemnification pursuant clause 10 or clause
     11 above,  shall be  determined  after  taking into  account all amounts to
     which the  indemnified  party is entitled and actually  receives  under the
     provisions of all insurance  policies with third parties  subject to offset
     for any increase in premiums  attributable  to such losses or payments made
     in respect of such losses.  The parties agree to use reasonable  efforts to
     collect amounts available under any such insurance policies.

12.8 Accounts Adjustment Limitation

     (a)  With respect to any claim of indemnification  related to any breach of
          clause 10 or any  other  representation  or  warranty  concerning  the
          Accounts,   the  amount  of  any   recovery  by  the   Purchaser   for

<PAGE>

          indemnification   pursuant   to  clause   10   above,   or  any  other
          representation or warranty  concerning the Accounts,  shall be reduced
          by any Balance Sheet Gains.

     (d)  The  Purchaser  shall  deliver to the Vendor or the Warrantor a report
          identifying  Balance  Sheet Gains or must  represent  in writing  that
          there are no Balance Sheet Gains.

12.9 Application of Indemnification Provisions

     The parties agree:

     (a)  That the limitations of the  indemnification  provisions  contained in
          clauses 12.5,  12.6,  12.7 and 12.8 above do not apply to the parties'
          rights and  obligations  to defend and hold  harmless  with  regard to
          third party  claims,  pursuant  to clause 10 and clause 11 above,  and
          shall   apply   on  a   collective   basis  to  all   agreements   for
          indemnification  including those to be entered into in respect of each
          of the Related Transactions, pursuant to clause 5 above;

     (b)  For the avoidance of doubt, a claim for indemnification as a result of
          a balance sheet  adjustment,  pursuant to clause 12.8 above,  shall be
          determined  after taking into account any positive  adjustments to the
          Accounts or to accounts associated with any Related Transactions; and

     (c)  The  parties  further  agree  that  the  Purchaser's  right to put any
          Receivables  back to the  Vendor,  as and to the  extent  provided  in
          clause 20.1 below,  shall be determined on a collective basis,  taking
          into  consideration  all  Receivables  of the  Vendor  and  all of the
          foreign entities associated with the Related Transactions.

13   PURCHASER'S GUARANTOR

     The Purchaser's Guarantor unconditionally and irrevocably guarantees to the
     Vendor,  performance  of all  of the  Purchaser's  obligations  under  this
     Agreement, including without limitation those under clause 2.

14   TERMINATION

     This Agreement and the  Transaction  may be terminated at any time prior to
     the  Completion,   whether  before  or  after  any  necessary  shareholders
     approval:

     (a)  by mutual consent of the Purchaser and the Vendor;

     (b)  by the  Purchaser  or the  Vendor  upon the  material  breach  of this
          Agreement by the other; or

     (c)  by either the  Purchaser  or the Vendor,  upon  written  notice to the
          other,  if the conditions to such party's  obligations to complete the
          Transaction,  in the case of the Purchaser, as provided in clause 6.2,
          or, in the case the Vendor,  as  provided in clause 6.1,  were not, or
          cannot  reasonably be, satisfied on or before 26 October 2000,  unless

<PAGE>

          the failure of condition is the result of the material  breach of this
          Agreement by the party seeking to terminate this Agreement.

15   AMENDMENT

           This  Agreement  may be amended by the  Vendor and the  Purchaser  by
           action taken at any time. This Agreement may not be amended except by
           an  instrument  in  writing  signed on behalf of the  Vendor  and the
           Purchaser.

16   WAIVER

     At any time prior to the Completion Date, the Purchaser,  or the Vendor, by
     action taken by their respective boards of directors, may, but shall not be
     obligated to:

     (a)  extend the time for the performance of any of the obligations or other
          acts of the other parties hereto;

     (b)  waive any inaccuracies in the representations and warranties contained
          herein or in any document delivered pursuant hereto; or

     (c)  waive  compliance  with any of the agreements or conditions  contained
          herein.  Any  agreement  on the  part of a party  hereto  to any  such
          extension or waiver shall be valid only if set forth in an  instrument
          in writing signed on behalf of such party.

17   RELIEF

     In the event of  liability  on the part of the Vendor to the  Purchaser  in
     accordance with the provisions of this Agreement  prior to Completion,  the
     parties  recognise and acknowledge  that monetary  measures of damages will
     not reasonably be calculable and that specific  performance  and injunctive
     relief should therefore be available to the Purchaser.

18   WARRANTOR'S OBLIGATIONS

18.1 Guarantee

     The  Warrantor  acknowledges  that the  Purchaser  has  entered  into  this
     document at the request of the Warrantor in reliance, amongst other things,
     upon the Warrantor  executing this Agreement to assure the due and punctual
     observance  and  performance  by the  Vendor  of  the  provisions  of  this
     Agreement.  Accordingly,  the  Warrantor  unconditionally  and  irrevocably
     guarantees to the Purchaser the due and punctual observance and performance
     by the  Vendor  of all the  obligations  of the  Vendor  contained  in this
     Agreement and the truth of the Warranties.  Without  limiting the foregoing
     the Warrantor  further covenants to the Purchaser that it will use its best
     endeavours  to  ensure  the  Vendor's  compliance  with  the  terms of this
     Agreement.

<PAGE>

18.2 Indemnity

     The Warrantor  unconditionally and irrevocably  indemnifies,  and agrees to
     keep  indemnified,   the  Purchaser  its  servants  and  agents  and  if  a
     corporation its servants or officers against all Loss relating  directly or
     indirectly to:

     (a)  any  failure  by the Vendor to pay any  moneys in  relation  to, or to
          comply with any of its  obligations  contained  in or implied by, this
          Agreement; and

     (b)  this Agreement or any related security, transaction or agreement being
          or becoming void,  voidable or otherwise  unenforceable  in accordance
          with its terms or the priority or  effectiveness  of any of them being
          adversely affected.

18.3 Guarantee not to be affected

     Subject to clause 12, the liability of the Warrantor under this clause is a
     principal  unconditional  and  absolute  obligation  and is not  abrogated,
     prejudiced  or adversely  affected by the  granting of time,  credit or any
     other  forbearance,  indulgence  or  concession  to the Warrantor or to the
     Vendor  or by any  other  dealing,  matter  or  thing  which,  but for this
     provision,  could or might  operate to  abrogate,  prejudice  or  adversely
     affect the Guarantee and Indemnity  including,  (without  limitation),  the
     actual  or  alleged  invalidity  or  unenforceability  of any of the  other
     provisions of this Agreement.

18.4 Continuing guarantee

     The Guarantee and Indemnity is a continuing  guarantee and indemnity and is
     irrevocable   and   remains  in  full  force  and  effect   notwithstanding
     termination  of this  Agreement  until all  obligations of the Vendor under
     this Agreement have been  discharged and performed in full. If any payments
     made by the Vendor are set aside or avoided by any  statutory  provision or
     otherwise  such payment are taken not to have been made and do not diminish
     or reduce the liability of the Warrantor under the Guarantee and Indemnity.

18.5 No competition

     Until the Vendor has fully  discharged  and performed  all its  obligations
     under this Agreement,  the Warrantor may not without the written consent of
     the Purchaser:

     (a)  by way of  reduction  of its  liability  under  this  clause,  raise a
          set-off  or  counter-claim  available  to  itself,  the  Vendor  or  a
          co-surety or  co-indemnifier  against the Vendor or claim a set-off or
          make a counter-claim against the Vendor;

     (b)  prove in competition with the Purchaser against the Vendor.

18.6 Guarantee in addition to other rights of the Purchaser

     The Guarantee and Indemnity is in addition to and not in  substitution  for
     any  other  security  or  right  which  the  Purchaser  may now have or may
     subsequently  take or hold against the Vendor or the  Warrantor  and may be
     enforced without first recourse to such other security or right and without

<PAGE>

     taking any steps or  proceedings  against the Vendor,  notwithstanding  any
     rule of law or equity or statutory provision to the contrary.

18.7 Representations by the Warrantor

     The Warrantor warrants to the Purchaser that:

     (a)  it has the corporate power to enter into and perform and has taken all
          necessary  corporate  and other action to authorise  the execution and
          performance of the Guarantee and Indemnity;

     (b)  the Guarantee and Indemnity constitutes a legal and binding obligation
          of the Warrantor;

     (c)  the execution and  performance of the Guarantee and Indemnity does not
          violate any  provision of any existing  law or of the  memorandum  and
          articles of association of the Warrantor or of any mortgage,  contract
          or other  undertaking  to which the  Warrantor  is a party or which is
          binding upon the Warrantor or its assets; and

     (d)  the  Warrantor  is not aware of any matter  material to the conduct of
          the Business which has not been adequately  disclosed to the Purchaser
          in this Agreement.

19   GST

19.1 Definitions

     In this clause the expressions "adjustment note",  "consideration",  "GST",
     "input tax credit",  "recipient",  "supply",  "supply of a going  concern",
     "tax  invoice"  and  "taxable  supply"  have  the  meanings  given to those
     expressions in the A New Tax System (Goods and Services Tax) Act 1999.

19.2 Sums exclude GST

     Unless  otherwise  expressly  stated,  all prices or other sums  payable or
     consideration to be provided under this document are exclusive of GST.

19.3 Responsibility for GST

     Despite  any other  provision  in this  document,  if GST is imposed on any
     supply made by the supplier under this document, the recipient shall pay to
     the supplier an amount equal to the GST payable on the taxable supply. That
     amount shall be paid at the same time that the consideration for the supply
     is  payable  under  this  document  and  shall be paid in  addition  to the
     consideration.

19.4 Supply of going concern

     The parties  agree that the sale of the Assets by the  supplier  under this
     document is a supply of a going concern. If the sale of the Assets is not a

<PAGE>

     supply of a going concern and GST is payable by the supplier on the sale of
     the Assets,  the  recipient  will pay to the  supplier the sum of an amount
     equal to the GST payable plus any  penalties  and  interest  imposed on the
     supplier for late payment of GST.  That amount shall be paid in addition to
     all amounts  payable by the recipient  under this document for the purchase
     of the  Assets  and  notwithstanding  paragraph  1.3  shall  be paid to the
     supplier on demand.

19.5 Reimbursement of expenses

     If this  document  requires the recipient to reimburse the supplier for any
     expense,  loss  or  outgoing  ("reimbursable   expense")  incurred  by  the
     supplier, the amount required to be reimbursed by the recipient will be the
     sum of:

     (a)  the amount of the  reimbursable  expense  net of input tax credits (if
          any) to which the supplier is entitled in respect of the  reimbursable
          expense; and

     (b)  if the supplier's recovery from the recipient is a taxable supply, any
          GST payable in respect of that supply.

19.6 Tax invoice

     If a GST is imposed on any supply made by the supplier  under this document
     or the amount of GST is varied,  the supplier  will  provide the  recipient
     with a tax invoice or adjustment note.

20   GENERAL PROVISIONS

20.1 Collection of Accounts Receivable

     Upon and after the Completion Date:

     (a)  ThePurchaser  shall  have the  right  and  authority  to  collect  all
          Receivables  transferred  to the Purchaser  pursuant to this Agreement
          and to  endorse  the name of the  Vendor  on any  checks  received  on
          account of any such Receivables;

     (b)  The Vendor shall  promptly  transfer and deliver to the  Purchaser any
          cash, checks or other property which the Vendor may have in respect of
          its Accounts;

     (c)  Payments  received from customers in respect of  Receivables  shall be
          applied  to the  oldest  outstanding  Receivable  from such  customer,
          unless  such  customer,  acting  on  its  own  volition,  specifically
          identifies such payment to a particular Receivable;

     (d)  The Purchaser shall use commercially reasonable efforts to collect the
          Receivables  (but  shall not be obliged to bring any action to collect
          Receivables)  but if it shall fail to collect  the full  amount of any
          such Receivable within 180 days of the Completion Date, and subject to
          clause  20.1(e)  and (f) the  Purchaser  may  require  the  Vendor  to
          purchase the Receivable at its face value;

<PAGE>

     (e)  The Purchaser  shall not require the Vendor to purchase any Receivable
          where  the  Purchaser  has  compromised,  settled  or agreed to accept
          payment  at less than face  value or as given a credit in  respect  of
          that Receivable; and

     (f)  The Vendor shall not be obliged to repurchase  any  Receivables  until
          the aggregate amount of Receivables which the Purchaser has a right to
          and has  elected to put to the Vendor  exceeds  the  reserve  for such
          Receivables  in the Accounts.  Any such put right must be exercised by
          the Purchaser no later than one year after the Completion Date.

20.2 Arbitration

     In the event that there  shall be a dispute  arising  out of or relating to
     this  Agreement,  the  Transaction,  any  document  referred  to  herein or
     centrally  related to the subject matter  hereof,  or the subject matter of
     any of the same,  the parties agree that such dispute shall be submitted to
     binding  arbitration  in  Sydney,  Australia,  under the  auspices  of, and
     pursuant to the rules of, the Australian Commercial Disputes Centre Limited
     as then in effect,  or such other procedures as the parties may agree to at
     the  time,  before  an  arbitrator  selected  pursuant  to the rules of the
     Australian Commercial Disputes Centre Limited. Any award issued as a result
     of such  arbitration  shall be final and binding  between the parties,  and
     shall be enforceable by a court having  jurisdiction over the party against
     whom enforcement is sought.

20.3 Notices

     All notices and other communications  required or permitted hereunder shall
     be in writing and shall be deemed given if and when delivered personally or
     3 Business Days  following  mailing by registered or certified mail (return
     receipt  requested)  to the parties at the  following  addresses or at such
     other address for a party as shall be specified by like notice given.

     If to the Purchaser:

                     AremisSoft Australia Pty Ltd
                     Tel:  9972 7320
                     Fax:  9972 7325
                     Attention:

                     with a copy to:  Christopher Gribble

                     AremisSoft Corporation
                     Tel:  856 869 0770
                     Fax:
                     Attention:  Paul Bloom

<PAGE>

     If to the Vendor:

                     Eltrax Systems Pty Ltd

                     Tel:  9972 7320
                     Fax:  9972 7325
                     Attention:  Jo Schlein

                     with a copy to:

                     Eltrax International  Inc

                     Tel:  678-589-3585
                     Fax:  687-539-3780
                     Attention: William A Fieder

20.4 Interpretation

     The headings  contained in this  Agreement are for reference  purposes only
     and  shall  not  affect  in any  the  meaning  or  interpretation  of  this
     Agreement.

20.5 Survival of Representations and Warranties

     The representations,  Warranties,  covenants, and agreements of the parties
     contained  herein shall survive and shall not merge on  Completion  and any
     investigation  of the other party made prior thereto.  Representations  and
     Warranties shall so survive for a period of 3 years from Completion, except
     for those  contained  in SC 1.1,  1.2, 1.3 2.1, 2.2 and 2.3 and clauses 2.2
     and 2.4 which shall survive indefinitely, and for those contained in SC 2.5
     which shall survive until 31 March 2001.

20.6 Miscellaneous

     This Agreement and the existing  confidentiality  agreement  constitute the
     entire   agreement  and  supersedes   all  of  the  prior   agreements  and
     understandings, both written and oral, between the parties, with respect to
     the subject matter hereof,  except as  specifically  provided  otherwise or
     referred  to  herein,  so that  no such  external  or  separate  agreements
     relating to the subject matter of this Agreement:

     (a)  shall have any effect or be  binding,  unless the same is  referred to
          specifically in this Agreement or is executed by the parties after the
          date hereof;

     (b)  is not intended to confer upon any other person any rights or remedies
          hereunder;

     (c)  shall not be  assigned by  operation  of law or  otherwise  except for
          assignments  of  all or  any  part  of  the  rights  of the  Purchaser
          hereunder,  which may be freely  assigned by the  Purchaser so long as
          the  obligations  of  the  Purchaser   under  this  Agreement   remain
          obligations  of, or their  performance is  unconditionally  guaranteed
          (which must be a guaranty  of  performance,  and not just  collection,
          with no duty on the part of the Vendor to pursue the  assignee  first,

<PAGE>

          and which  guarantee must be approved by the Vendor in advance,  which
          approval will not be unreasonably withheld) by, the Purchaser;

     (d)  shall be governed in all respects, including validity,  interpretation
          and  effect,  by the  internal  laws of the State of New South  Wales,
          without  regard to the  principles of conflict of laws thereof.  It is
          acknowledged  and  understood  by the Vendor  that the  Purchaser  may
          assign it rights, but not its obligations,  hereunder, after execution
          and  prior  to  Completion,  to one or more  wholly-owned  (direct  or
          indirect) subsidiaries of the Purchaser;

     (e)  this  Agreement  may be  executed  in two or more  counterparts  which
          together shall constitute a single agreement and facsimile  signatures
          shall have equal  dignity with original  signatures  for all purposes;
          and

     (f)  the execution and  performance  of this Agreement by the Purchaser and
          the other transactions contemplated by this Agreement does not violate
          or  conflict  with or result in a breach  of or  constitute  a default
          under the  provisions of the memorandum and articles of association of
          the Purchaser.

<PAGE>

                                   SCHEDULE 1

                                   WARRANTIES

                               Index to Warranties

1    REPRESENTATIONS AND WARRANTIES OF PURCHASER

     SC1.1 Organisation

     SC1.2 Authority relative to this Agreement

     SC1.3 Absence of breach: No consents

     SC1.4 Brokers

2    REPRESENTATIONS AND WARRANTIES OF THE VENDOR

     SC2.1 Organisation and Qualification

     SC2.2 Authority Relatively to this Agreement

     SC2.3 Absence of Breach: No Consents

     SC2.4 Brokers

     SC2.5 Financial Statements

     SC2.6 Absence of Material Differences from the Disclosure Document

          (i)  No Undisclosed Liabilities

          (ii) No Material Adverse Charge, etc

          (iii) Taxes

          (iv) Litigation

          (v)  Employees

          (vi) Compliance with Laws

          (vii) Ownership of Assets

          (viii) Proprietary Rights, Software Products and Intellectual Property

          (ix) Trade Names

          (x)  Facilities

          (xi) Accounts Receivable

          (xii) Inventories

          (xiii) Contracts

          (xiv) Accounts Payable

          (xv) Employee Matters

          (xvi) Title to  and  Utilisation  of  Real  Properties  and  Leasehold
                Estates

<PAGE>

     SC2.7 Full Disclosure

     SC2.8 Action Since Balance Sheet Date

<PAGE>

                                   SCHEDULE 1

1    REPRESENTATIONS AND WARRANTIES OF PURCHASER

     Purchaser hereby represents and warrants to the vendor:

          SC1.1 Organisation

               The Purchaser is a corporation duly organised,  validly existing,
               and in good standing under the  Corporations Law of Australia and
               has the requisite  corporate  power and authority to carry on its
               business as it is now being conducted.

          SC1.2 Authority relative to this Agreement

               The Purchaser has the requisite  corporate power and authority to
               enter  into  this  Agreement  and to  carry  out its  obligations
               hereunder.  The execution and delivery of this  Agreement and the
               completion of the transactions contemplated hereby have been duly
               authorised  and  approved  by the  requisite  level of  corporate
               authority of Purchaser and no other corporate  proceedings on the
               part of the  Purchaser  are  necessary  to approve and adopt this
               Agreement  or to  approve  the  completion  of  the  Transactions
               contemplated hereby, including,  without limitation,  delivery of
               the  Purchase  Price.  This  Agreement  has been duly and validly
               executed and delivered by the  Purchaser and  constitutes a valid
               and  binding   obligation  of  the   Purchaser,   enforceable  in
               accordance with its terms.

          SC1.3 Absence of breach: No consents

               The execution,  delivery and performance of this  Agreement,  and
               the  performance  by Purchaser of its  obligations  hereunder and
               compliance  with any regulatory or licensing  laws  applicable to
               the  business  of the  Purchaser,  all of  which,  to the  extent
               applicable  to  Purchaser,  will  be  satisfied  in all  material
               respects  prior to  Completion)  do not,  except as  disclosed in
               Schedule 2:

               (i)  conflict  with,  and will not  result in a breach of, any of
                    the provisions of the Constitution of the Purchaser;

               (ii) contravene  any  law,  rule or  regulation  of any  State or
                    Territory of or the Commonwealth of Australia;

               (iii)contravene  any  applicable  foreign   jurisdiction  or  any
                    order, writ, judgment, jurisdiction,  decree, determination,
                    or award affecting or binding upon the Purchaser,  in such a
                    manner as to provide for a basis for  enjoining or otherwise
                    preventing completion of the Transaction;

               (iv) conflict  with or result in a breach of or default under any
                    indenture or loan or credit agreement or any other agreement
                    or instrument to which  Purchaser is a party, in such manner
                    as to provide a basis of enjoining  or otherwise  preventing
                    completion of the Transaction; or;

<PAGE>

               (v)  require the authorisation,  consent,  approval or license of
                    any third party of such nature that he failure to obtain the
                    same  would  provide  a basis  for  enjoining  or  otherwise
                    preventing completion of the Transaction.

           SC1.4  Brokers

                     No broker,  finding or investment banker is entitled to any
                     brokerage,   finder's  or  other  fee  or   commission   in
                     connection  with this  Agreement or the  Transaction or any
                     related  transaction based upon any agreements,  written or
                     oral,  made  by or on  behalf  of  Purchaser  or any of its
                     Subsidiaries.

2    REPRESENTATIONS AND WARRANTIES OF THE VENDOR

     The Vendor represents and warrants to the Purchaser as follows:

     SC2.1 Organisation and Qualification

          The Vendor is a corporation duly organised,  validly existing,  and in
          good  standing  under the  Corporations  Law of Australia  and has the
          requisite corporate power and authority to carry on the Business as it
          is now being conducted.

     SC2.2 Authority Relatively to this Agreement

          This Agreement has been duly and validly executed and delivered by the
          Vendor and  constitutes  a valid and binding  Agreement  of the Vendor
          enforceable in accordance with its terms. The Vendor has all requisite
          corporate  power and  authority  to enter into this  Agreement  and to
          carry out the  Transaction  contemplated  hereby,  and in doing so has
          been duly and  sufficiently  authorised,  subject only to governmental
          regulatory  approvals  as and to the  extent  specifically  set  forth
          elsewhere in this Agreement.

     SC2.3 Absence of Breach: No Consents

          The  execution,  delivery,  and  performance  of this Agreement by the
          Vendor and the performance by the Vendor of its obligations hereunder,
          do not:

          (i)  except as identified in the Disclosure Document, conflict with or
               result in a breach of any of the  provisions of the  Constitution
               of the Vendor;

          (ii) except as identified in the Disclosure  Document,  contravene any
               law, ordinance,  rule, or regulation of any State of Australia or
               of any applicable  foreign  jurisdiction or contravene any order,
               writ, judgment,  injunction,  decree, determination,  or award of
               any court or other authority having  jurisdiction  over, or cause
               the  suspension  or  revocation  of any  authorisation,  consent,

<PAGE>

               approval or license,  presently in effect, which affects or binds
               the  Vendor  or all or any  part  of  the  Business  or  material
               properties  of the  Business,  except in any such case where such
               contravention,  suspension or revocation will not have a material
               adverse   effect  on  the  business,   condition   (financial  or
               otherwise),  operations or prospects of the Business and will not
               have a material  adverse effect on the validity of this Agreement
               or on the validity of the completion of the Transaction;

          (iii)except as identified in the Disclosure Document, conflict with or
               result in a  material  breach of or  default  under any  material
               indenture or loan or credit  agreement or any other  agreement or
               instrument  to which the Vendor is a party or by which any of the
               material properties of the Business may be affected or bound;

          (iv) except as  identified  in the  Disclosure  Document,  require the
               authorisation,  consent, approval, or license of any third party,
               except  for  those  the  failure  of which to  obtain  would  not
               reasonably be expected to have a material  adverse  effect on the
               Business or the Assets; or

          (v)  except  as  identified  in the  Disclosure  Document,  constitute
               grounds for the loss or suspension of any permits,  licenses,  or
               other authorisations used in the Business.

     SC2.4 Brokers

          No broker,  finder or investment  banker is entitled to any brokerage,
          finder's, or other fee or commission in connection with this Agreement
          or  the  Transaction  or  any  Related   Transaction  based  upon  any
          agreements,  written or oral, made by or on behalf of the Vendor.  The
          Vendor does not have any  obligation  to pay finder's or broker's fees
          or commissions in connection  with the exercise of options to renew or
          extend real estate leases to which the Vendor is a party.

     SC2.5 Financial Statements

          The Vendor has delivered to the Purchaser the following:

               (i)  the Unaudited Financial Statements of the Business;

               (ii) the Projections.

          The Vendor confirms that:

                    (A)  all of the historical financial statements contained in
                         such documents were prepared from the books and records
                         of the Vendor;

                    (B)  the  Unaudited  Financial  Statements  were prepared in
                         accordance with Australian Accounting Standards;

                    (C)  as at the Balance Sheet date,  the Vendor owned each of
                         the Assets included in the Balance Sheet;

<PAGE>

                    (D)  the valuation of such Assets included in preparation of
                         the  Balance  Sheet  is  consistent   with   Australian
                         Accounting Standards;

                    (E)  the Vendor had no  Liabilities  required to be included
                         in the  Balance  Sheet in  accordance  with  Australian
                         Accounting Standards for which the Business or any part
                         of the  Assets is  responsible  or  liable,  other than
                         those included in the Balance Sheet;

                    (F)  there are no Liabilities required to be included in the
                         Balance  Sheet  in   accordance   in  with   Australian
                         Accounting  Standards  in  amounts  in  excess  of  the
                         amounts  included for them in the Balance Sheet,  there
                         are  no  Liabilities  required  to be  included  in the
                         Balance Sheet in accordance with Australian  Accounting
                         Standards in amounts in excess of the amounts  included
                         for them in the Balance Sheet.

          The  Purchaser   acknowledges  that  projections  of  future  economic
          performance are  necessarily  unreliable and subject to the occurrence
          or  non-occurrence  of a variety of events,  but the Vendor represents
          that the  Projections  have been prepared on the basis of  assumptions
          that are, in the  judgment of the Vendor,  reasonable  in all respects
          and are not, to the knowledge of the Vendor,  contrary in any material
          respect to fact or to events that have  occurred or are  presently  in
          existence.

          From the date hereof  through to the  Completion  Date the Vendor will
          continue to prepare financial  statements for the Business on the same
          basis  that it has  done so in the  past,  and will  promptly  deliver
          updated financial statements to the Purchaser, and agree that from and
          after such delivery the foregoing  representations  will be applicable
          to each financial statement so prepared and delivered.

     SC2.6 Absence of Material Differences from the Disclosure Document

          (i)  Except as  specifically  disclosed in the Disclosure  Document in
               sections corresponding to the subsections below:

          (ii) No Undisclosed Liabilities

               The  Vendor  has no  Liabilities  relating  to or  affecting  the
               Business or the Assets  which are not, to the extent  required by
               Australian Accounting Standards, adequately reflected or reserved
               against  on the face of the  Balance  Sheet,  except  Liabilities
               incurred  since  the date of the  Balance  Sheet in the  ordinary
               course of  business  of the  Business  and  consistent  with past
               practice. Without limiting the foregoing:

               (A)  the Vendor is not in default or in breach,  in any  material
                    respect, under any contract,  license, mortgage,  indenture,
                    deed or permit held or affecting the Business;

<PAGE>

               (B)  there are no leasehold  improvements currently due and owing
                    in respect of the Acquired  Assets for which the Business is
                    or will be responsible;

               (C)  there  are no  deferred  rents  due to  lessors  at or  with
                    respect to any of such Acquired Assets; and

               (D)  the Disclosure  Document sets forth,  as part thereof,  each
                    Liability of or  affecting  the Business or the Assets in an
                    amount  in  excess of  $10,000  and each  person to whom the
                    aggregate  amount  of  such  Liabilities  is  in  excess  of
                    $10,000.

          (ii) No Material Adverse Charge, Etc

               Since the date of the Balance Sheet,  other than as  contemplated
               or caused by this Agreement, there has not been:

               (A)  any  material  adverse  change  in the  business,  condition
                    (financial or  otherwise),  operations,  or prospects of the
                    Business;

               (B)  any  damage,   destruction  or  loss,   whether  covered  by
                    insurance or not,  having a material  adverse  effect on the
                    business, condition (financial or otherwise),  operations or
                    prospects of the Business, or materially adversely affecting
                    the Assets;

               (C)  any entry into or  termination  of any material  commitment,
                    contract, agreement or transaction affecting the Business or
                    the Assets  (including,  without  limitation,  any  material
                    borrowing   or   capital   expenditure   or  sale  or  other
                    disposition of any material asset or assets) other than this
                    Agreement and agreements  executed in the ordinary course of
                    business;

               (D)  any transfer of or right granted  under any material  lease,
                    license,  agreement,  patent,  trade  mark,  trade  name  or
                    copyright included among the Assets;

               (E)  any sale or other disposition of any assets of the Business,
                    or any  mortgage,  pledge or  imposition  of any  licence or
                    other  encumbrance  on any asset of the  Business  or of any
                    corporation   included  in  the  Assets,  or  any  agreement
                    relating to any of the foregoing, other than in the ordinary
                    course of business; or

               (F)  any  default  or breach in any  material  respect  under any
                    contract,  license or permit held by or for or affecting the
                    Business.  Since the date of the Balance  Sheet,  the Vendor
                    has conducted the Business's  only in the ordinary and usual
                    course, and without limiting the foregoing,  no changes have
                    been made in:

                    (1)  executive compensation levels; or

                    (2)  the manner in which other  employees  of the Vendor are
                         compensated, or

                    (3)  supplemental  benefits  provided to any such executives
                         or other employees of the Vendor; or

                    (4)  inventory  levels of the  Business in relation to sales
                         levels,  except,  in any  such  case,  in the  ordinary
                         course of business and, in any event,  without material
                         adverse effect on the business, condition (financial or
                         otherwise), operations, or prospects of the Business.
<PAGE>

          (iii) Taxes

               The Vendor has properly  filed or caused to be filed (or obtained
               proper extensions in respect of) all federal,  state,  local, and
               foreign income and other tax returns,  reports,  and declarations
               that are required by applicable  law to be filed by them and that
               relate to or in any way affect the Business or the Assets  except
               for those the  failure of which to file would not have an adverse
               effect on the Business or the Assets,  and have paid, or will pay
               when due all federal,  state, local, and foreign income and other
               taxes properly due (including any amounts deferred as a result of
               an  extension  or  otherwise)  for the  periods  covered  by such
               returns, reports and declarations.

          (iv) Litigation

               (A)  No  material  investigation  or review  by any  governmental
                    entity with  respect to the Business or any of the Assets or
                    the use  thereof  is,  to the best of the  knowledge  of the
                    Vendor,  pending or threatened  (other than  inspections and
                    reviews   customarily   made  of  businesses   such  as  the
                    Business),  nor has any  governmental  entity  indicated  an
                    intention to conduct the same; and

               (B)  there is no action,  suit or  proceeding  pending or, to the
                    best of the  knowledge of the Vendor  threatened  against or
                    affecting the Business or the Assets at law or in equity, or
                    before any federal,  state, municipal, or other governmental
                    department,    commission,   board,   bureau,   agency,   or
                    instrumentality.

          (v)  Employees

               (A)  Compliance with Laws

<PAGE>

                    The  Business  and  each  of the  Assets  is in  substantial
                    compliance  with all, and the Vendor has not received notice
                    of any violation of any laws or regulations applicable to it
                    or  the  operations  of  the  Business,  including,  without
                    limitation,  the laws and or regulations relevant to the use
                    or  utilisation  of  premises,  or  with  respect  to  which
                    compliance  is a condition  of engaging in any aspect of the
                    Business,  except to the extent the  failure of which any of
                    the  foregoing to be true would not have a material  adverse
                    effect on the  Business or the Assets.  The Business has all
                    permits,  licenses,  zoning rights,  and other  governmental
                    authorisations   necessary   to  conduct  its   business  as
                    presently conducted, except to the extent the failure of the
                    Business  to have  any of the  foregoing  would  not  have a
                    material  adverse effect on the Business or the Assets.  All
                    such   permits,   licenses,   zoning   rights,   and   other
                    governmental  authorisations will, as a part and consequence
                    of the  Transaction  be  transferred to the Purchaser at the
                    Completion Date.

          (vi) Ownership of Assets

               The Vendor:

               (A)  has  (or  as  of  the  Completion   Date  will  have)  good,
                    marketable  and  insurable  title,  or valid,  effective and
                    continuing leasehold rights (including licenses) in the case
                    of leased or licensed property,  to all real property (as to
                    which,  in the case of  owned  property,  such  title is fee
                    simple) and all personal  property owned or leased by it and
                    comprising a part of the Assets or the Business,  or used by
                    it in the  conduct  of the  Business  in such a manner as to
                    create the reasonable appearance or reasonable  expectations
                    that the same is owned or leased by it;  such  ownership  or
                    leasehold  rights  are, or at the  Completion  Date will be,
                    free  and  clear  of all  liens,  claims,  encumbrances  and
                    charges  (other than those  customarily  held by a lessor or
                    licensor  in a lease or  license of real  property),  except
                    liens for taxes not yet due and minor imperfections of title
                    and  encumbrances,  if  any,  which,  singularly  or in  the
                    aggregate,   are  not  substantial  in  amount  and  do  not
                    materially  detract from the value of the  property  subject
                    thereto or materially impair its use thereof;

               (B)  no other person has any  ownership  or similar  right in, or
                    contractual or other right to acquire any such right in, any
                    of such assets;  and such ownership or leasehold rights will
                    be conveyed to the Purchaser at the Completion Date pursuant
                    to  the  Transaction.  The  Vendor  does  not  know  of  any
                    potential action by any party, governmental or other, and no
                    proceedings  with respect  thereto have been  instituted  of
                    which the  Vendor's  ability to use and to  utilise  each of
                    such assets in the business of the Business.  The Vendor has
                    not  received  any  default   notices  from  any   mortgagee

<PAGE>

                    regarding  any  leased  properties  of the  Business  or any
                    leasehold interests which comprise any part of the Assets;

               (C)  the Balance Sheet contains a reasonably detailed listing, as
                    of the date specified therein, of all Assets including,  but
                    not limited to:

                    (1)  Accounts Receivable as provided for in clause 20.1;

                    (2)  miscellaneous current assets in excess of $10,000;

                    (3)  prepaid expenses in excess of $10,000;

                    (4)  Software Products;

                    (5)  real property; and

                    (6)  gross  aggregate  additions  for each of the past  four
                         years by location of:

                            o    buildings and improvements;

                            o    leasehold improvements, and

                            o    automobiles and trucks.

          (vii) Proprietary Rights, Software Products and Intellectual Property

               (A)  The Vendor  possesses  full  ownership  of, or adequate  and
                    enforceable  exclusive long-term licenses or other exclusive
                    rights to use (without  payment),  all  Proprietary  Rights,
                    Software  Products  and  Intellectual  Property  used in the
                    Business or utilised in connection with the Assets,  and all
                    such ownership, license or other rights shall be conveyed to
                    the  Purchaser  at  the  Completion  Date  pursuant  to  the
                    Transaction;

               (B)  the Vendor has not  received  any notice of  conflict  which
                    asserts the rights of others with respect  thereto;  and the
                    Vendor has, in all material  respects,  performed all of the
                    obligations  required to be  performed  by it, and is not in
                    default  in  any  material  respect,   under  any  agreement
                    relating to any such Proprietary  Rights,  Software Products
                    and Intellectual Property.

          (vii) Trade Names

               The Disclosure  Document  identifies each trade name,  fictitious
               business  name,  or other similar name under which the Vendor has

<PAGE>

               conducted  any part of the  Business  or in which the  Vendor has
               utilised  any of the Assets  during the five (5) years  preceding
               the date of this Agreement.

          (ix) Facilities

               (A)  To  the  Vendor's  knowledge  (as  applied  to  all  of  the
                    following),  the Acquired  Assets are (as to physical  plant
                    and structure)  structurally  sound and none of the Acquired
                    Assets,  nor any of the vehicles or other  equipment used by
                    the Vendor in connection with the Business have any material
                    defects and all of them are in all material respects in good
                    operating  conduction  and repair and are  adequate  for the
                    uses to which they are being utilised.

               (B)  None of such Acquired Assets, vehicles or other equipment is
                    in need of  maintenance  or  repairs  except  for  ordinary,
                    routine  maintenance  and  repairs  (normal  wear  and  tear
                    excepted) which are not material in nature or cost.

               (C)  The  Vendor  is not in any  material  breach,  violation  or
                    default of any lease  affecting  the  Business or the Assets
                    with  respect to, or as a result of which,  the other party,
                    whether lessor, lessee, sublessor, or sublessee thereto, has
                    the  right to  terminate  the same  and the  Vendor  has not
                    received  notice of any claim or assertion that it is or may
                    be in any such breach, violation or default.

          (x)  Accounts Receivable

               All Accounts  Receivable  of the Vendor  reflected in the Balance
               Sheet  represent  transactions in the ordinary course of business
               and  are  collectible,  net  of  any  reserves.  As of  the  date
               specified therein, the document specifically identifies:

               (A)  the aging of Receivables;

               (B)  each Receivable in excess of $10,000;

               (C)  each  Receivable  in an amount  in excess of $5,000  that is
                    more than 90 days past due, and

               (D)  each  Receivable  from a  person  or  Entity  from  whom the
                    aggregate of such Receivables exceeds $10,000.

          (xi) Inventories

               All Inventories of the Vendor  reflected in the Balance Sheet are
               of quality  and  quantity  useable and  saleable in the  ordinary
               course  of  business  except  for  obsolete  items  and  items of
               below-standard  quality,  all of  which,  in the  aggregate,  are

<PAGE>

               immaterial in amount.  Items included in the Vendor's Inventories
               are  carried  on the books of the  Vendor  and are  valued on the
               Balance Sheet consistent with Australian Accounting Standards.

          (vii) Contracts

               The Assets and the Business  are not  affected by any  contracts,
               agreements or understandings, whether express or implied, written
               or verbal, provided, however, that the Assets or the Business may
               be affected by, and the  Disclosure  Document  need not identify,
               any such contracts,  agreements, or understandings that fall into
               one of the following categories:

               (A)  those that are terminable on notice of less than  thirty-two
                    (32) days and do not involve payments or obligations of more
                    than $10,000 in any period of  thirty-one  (31) days or less
                    (on termination or otherwise); or

               (B)  those that involve aggregate payment or obligation remaining
                    unpaid as of the date of the Agreement of less than $10,000.

                    All items excluded in (B) above represent, in the aggregate,
                    less than $100,000.

                    The Vendor is not a party to any executory  contract to sell
                    or transfer any part of any leasehold  interest  included in
                    the Assets or utilised by the  Business.  True and  accurate
                    copies of all leases of properties included in the Assets or
                    utilised  by  the  Business,   including   all   amendments,
                    supplements, extensions and modifications thereof, have been
                    delivered to the Purchaser by the Vendor.

        (viii) Accounts Payable

          (vix)The  accounts  payable  reflected  on the  Balance  Sheet do, and
               those  reflected in the most recent Balance Sheet included in the
               Unaudited  Financial  Statements  do, and those  reflected on the
               books of the Vendor at the time of Completion  will,  reflect all
               amounts  owed by the Vendor in respect of trade  accounts due and
               other payables of the Business or relating to the Assets, and the
               actual liability of the Vendor in respect of such obligations was
               not,  and will not be,  on any of such  dates,  in  excess of the
               amounts so  reflected  on the  Balance  Sheet or the books of the
               Business, as the case may be.

         (xiv) Employee Matters

               Subject to the  Disclosure  Document to the best of the knowledge
               of  the  Vendor,   there  are  no  activities  or  controversies,
               including without limitation,  any labour organising  activities,
               election  petitions  or  proceedings,   proceedings   preparatory
               thereto,  unfair  labour  practice  complaints,  labour  strikes,

<PAGE>

               disputes,  slowdowns,  or work stoppages,  pending or threatened,
               affecting the employees of the Vendor.

          (xv) Title to and Utilisation of Real Properties and Leasehold Estates

               Except as disclosed in the Disclosure Document, the Vendor owns a
               valid  leasehold  interest in all real  property  included in the
               Assets and has the  unbridled  right to use the same  (other than
               those  customarily  held by a lessor  or  licensor  in a lease or
               license of real property),  and is not aware of any claim, notice
               or  threat  to the  effect  that  its  right  to own and use such
               property is subject in any way to any challenge, claim, assertion
               of rights,  proceedings toward  condemnation or confiscation,  in
               whole or in part, or is otherwise  subject to  challenge.  To the
               Vendor's  knowledge,  each parcel of real  property the ownership
               of, or leasehold  interest in, which is included among the Assets
               is  free  of  any  and  all  hazardous   wastes,   substances  or
               contaminants in connection with any such property.

     SC2.7 Full Disclosure

          The documents,  certificates,  and other  writings  furnished or to be
          furnished by or on behalf of the Vendor to the  Purchaser  pursuant to
          the provisions of this Agreement,  taken together in the aggregate, do
          not and will not contain any untrue  statements of a material fact, or
          omit to state any material fact necessary to make the statements made,
          in the light of the  circumstances  under  which  they are  made,  not
          misleading.

     SC2.8 Action Since Balance Sheet Date

          Except as set forth on the Disclosure Document,  since the date of the
          Balance  Sheet,  the  Vendor has not taken any  actions  that would be
          prohibited  under the provisions of this Agreement  (without the prior
          consent of the Purchaser) after the date of this Agreement.

<PAGE>

                                   SCHEDULE 3

                                    accounts

<PAGE>

                                   SCHEDULE 4

                                    employees

                                      Name

<PAGE>

EXECUTED by the parties as a deed

EXECUTED BY AremisSoft Australia Pty Limited in the)
presence of:                                       )
                                                   )
                                                   )

Secretary/Director                                     Director

Name of Secretary/Director (print)                     Name of Director (print)

EXECUTED BY AremiSsoft Corporation                 )
in the presence of:                                )
                                                   )
                                                   )

President                                              Chief Executive Officer

Name of President(print)                               Name of Chief Executive
                                                       Officer (print)

EXECUTED BY Eltrax Systems Pty Ltd                 )
in the presence of:                                )
                                                   )
                                                   )

Secretary/Director                                     Director

Name of Secretary/Director (print)                     Name of Director (print)

EXECUTED BY Eltrax International Inc               )
 in the presence of:                               )
                                                   )
                                                   )

President                                              Chief Executive Officer

Name of President(print)                               Name of Chief Executive
                                                       Officer (print)

EXECUTED BY Verso Technologies Inc                 )
in the presence of:                                )
                                                   )
                                                   )

President                                              Chief Executive Officer

Name of President(print)                               Name of Chief Executive
                                                       Officer (print)DATED                                       2000
                  ------------------------------------------------

                  ELTRAX UK LIMITED                           (1)

                  AREMISSOFT HOSPITALITY (UK) LIMITED         (2)

                  VERSO TECHNOLOGIES, INC.
                  (formerly ELTRAX SYSTEMS, INC.)             (3)

                  AREMISSOFT CORPORATION                      (4)

              ----------------------------------------------------
                        ASSET SALE AND PURCHASE AGREEMENT
                           relating to the business of
                                 ELTRAX UIMITED
              ----------------------------------------------------

                                   Joelson Wilson & Co
                                   70 New Cavendish Street
                                   London W1M 8AT

                                   Ref: PIW.PPS.LS.2289.9

<PAGE>

                                      INDEX
                                      -----

                                                                        Page No:
                                                                        -------
1.       Definitions                                                         1
2.       Sale and Purchase of the Business                                   11
3.       Consideration                                                       11
4.       Completion                                                          12
5.       Excluded Assets and Liabilities                                     13
6.       Value Added Tax                                                     13
7.       Conduct of the Business                                             14
8.       Debts and Liabilities                                               15
9.       Risk and Liabilities                                                15
10.      Title                                                               17
11.      Cash                                                                18
12.      Warranties by the Vendor                                            19
13.      Employees                                                           19
14.      Vendor's Undertakings                                               20
15.      Guarantees                                                          21
16.      Conditions                                                          22
17.      Property                                                            22
18.      Generally                                                           25
19.      Notices                                                             26

Schedule 1 - Warranties                                                      29
Schedule 2 - Transferring Employees                                          43
Schedule 3 - Agreed Liabilities                                              44
Schedule 4 - Debts                                                           45
Schedule 5 - The Property                                                    46
Schedule 6 - Apportionment of Consideration                                  47
Schedule 7 - Limitation of Liability on Warranties                           48
Schedule 8 - Schedule of Condition                                           49
Appendix 1 - Computer Software Licences                                      51
Appendix 2 - Equipment                                                       51

Agreed Form Documents:

1.       Assignment of Debts                                                 52
2.       Assignment of Goodwill                                              57
3.       Assignment of Intellectual Property Rights                          64
4.       Balance Sheet                                                       70

<PAGE>

THIS AGREEMENT is made the                  day of                          2000

BETWEEN:

(1)  ELTRAX UK LIMITED whose registered office is at 1 Holmesdale Road,  Croydon
     CR0 2LR (Registered No: 02042869) ("the Vendor");

(2)  AREMISSOFT  HOSPITALITY  (UK)  LIMITED  whose  registered  office  is  at 2
     Hazelbank Close,  Petersfield,  Hampshire GU31 4BY (Registered No: 4098063)
     ("the Purchaser");

(3)  VERSO  TECHNOLOGIES,  INC.  (formerly  ELTRAX SYSTEMS,  INC.) a corporation
     incorporated  under the law of the State of Minnesota  USA whose  principal
     place of business is at 400 Galleria Parkway,  Suite 300, Atlanta,  Georgia
     30339, USA ("Verso Technologies"); and

(4)  AREMISSOFT  CORPORATION  a corporation  incorporated  under the laws of the
     State of Delaware  USA whose  principal  place of business is at 216 Haddon
     Avenue, Suite 607, Westmont, New Jersey 08109, USA ("the Purchaser's Parent
     Company").

WHEREAS:

(A)  The Vendor is an indirect  wholly-owned  subsidiary of Eltrax International
     Inc.  (a   Pennsylvania   corporation)   whose  holding  company  is  Verso
     Technologies.

(B)  The Vendor provides turnkey hardware and software solutions and services to
     the hospitality industry in the United Kingdom.

(C)  The  Purchaser's  Parent  Company is the  ultimate  holding  company of the
     Purchaser.

(D)  The  Purchaser's  Parent  Company  (1) Verso  Technologies  (2) and  Eltrax
     Hospitality Group, Inc. (a Georgia  Corporation)  ("EHGI") (3), have agreed
     under  the  terms  of the  Head  Agreement  (as  defined  below)  that  the
     Purchaser's  Parent  Company  will  purchase  certain of the assets and the
     agreed  liabilities  of EHGI as  provided  in and on the  terms of the Head
     Agreement and pursuant thereto it has been agreed that the Vendor will sell
     to the  Purchaser  the  Business  (as  defined  below)  upon the  terms and
     conditions of this Agreement as the parties hereto agree.

NOW IT IS HEREBY AGREED as follows:-

1.       DEFINITIONS

1.1      In  this  Agreement  the  following  words  and  expressions  have  the
         following meanings unless inconsistent with the context:

          "Accounting Date" means 31 December 1999;

<PAGE>

          "Accounts" means the accounts  relating to the  Business  incorporated
               into the  audited  financial  statements  of the  Vendor  for the
               accounting   reference   period  ended  on  the  Accounting  Date
               comprising  balance sheet,  profit and loss account,  notes,  the
               directors'  and  auditor's  reports  and cash flow  statement  as
               included in Schedule 1 to the Disclosure Letter;

          "Agreed Form" means in relation to any documents  such document in the
               form agreed between the parties and initialled by the Purchaser's
               Solicitors  and  the  Vendor's  Solicitors  for  the  purpose  of
               identification;

          "Agreed Liabilities" the aggregate amount  (including VAT) owed by the
               Vendor at the Completion  Date in connection with the Business to
               or in respect of trade  creditors which are set out in Schedule 3
               exclusive  of VAT to be  assumed  by the  Purchaser  pursuant  to
               Clause 8.3 and in addition any  liabilities to be included in the
               Management  Accounts  which the  Purchaser  agrees in  writing to
               assume  in  connection  with  the  Business  (but  excluding  any
               liabilities  relating  to any  other  division  of the  Vendor or
               liabilities  due to any other  company in the Vendor's  Group and
               also  excluding  any  direct  or  indirect  costs or  liabilities
               incurred in connection with the sale and purchase of the Business
               whether under this Agreement or otherwise);

          "Assets" means all assets and rights of the Vendor used in the conduct
               of  Business  as at the  Completion  Date to be  bought  and sold
               pursuant  to Clause  2.1,  including,  but not  limited  to,  all
               intellectual  property and software and hardware products used in
               the Business and all other Assets of the Vendor save the Excluded
               Assets;

          "Balance Sheet Date" means the 30 September 2000; "Business" means the
               business of providing turnkey hardware and software solutions and
               services to the hospitality  industry carried on by the Vendor at
               the date hereof in the event that this  Agreement is entered into
               on a date  prior to the  Completion  Date  and at the  Completion
               Date;

          "Business"  means the  business  of  providing  turnkey  hardware  and
               software  solutions  and  services  to the  hospitality  industry
               carried  on by the  Vendor at the date  hereof in the event  that
               this

<PAGE>
               Agreement is enetered into on a date prior to the Completion Date
               and at the Completion Date;

          "Business  Contracts"  means  the  Customer  Contracts,  the  Supplier
               Contracts and the Lease Contracts ;

          "Business Day"  means any day which is not a  Saturday,  a Sunday or a
               Bank or Public Holiday in England and Wales;

          "Business Information" means all information,  know-how and techniques
               (whether or not  confidential and in whatever form held) which in
               any way relates to:-

               (i)  all or any part of the Business or Assets;

               (ii) any products  manufactured  and/or sold or services rendered
                    by   the   business;

               (iii)any  formulas,  designs,  specifications,   drawings,  data,
                    manuals or  instructions;

               (iv) the  operations,  management,  administration,  or financial
                    affairs of the Business  (including  any  business  plans or
                    forecasts,   information   relating   to   future   business
                    development   or  planning  and   information   relating  to
                    litigation or legal  advice);  and

               (v)  the sale or marketing  of any of the  products  manufactured
                    and/or sold or services rendered by the Business,  including
                    but without  limiting the generality of the foregoing words,
                    customer  names and lists,  sales and marketing  information
                    including but not limited to targets, sales and market share
                    statistics, market surveys and reports on research;

          "Business Name" means Eltrax UK or any name  including the word Eltrax
               or any colourable imitation of it;

          "Cash" means any cash  balances  held at the  Completion  Date for the
               purpose of reimbursing  out-of-pocket expenses in connection with
               the  Business and cash at the bank in  accordance  with Clause 11
               and all cheques and other securities representing the same;

<PAGE>

          "Completion"  means the  completion  of the sale and  purchase  of the
               Business and the Assets in accordance with Clause 4;

          "Completion Date" means the date hereof;

          "Completion  Time"  means  the time at which the  Completion  actually
               occurs, which shall take place at 3.30 p.m. in the United Kingdom
               where the Vendor conducts its Business;

          "Computer Software Licences" means the computer software licences held
               by the Vendor as listed in  Appendix 1 together  with the benefit
               of all  guarantees  given to the  Vendor in  respect  thereof  or
               relating thereto;

          "Computer Systems" means all computer hardware,  software and networks
               owned or used by the Business including all arrangements relating
               to the provision of maintenance and support,  security,  disaster
               recovery,  facilities  management,  bureau and online services to
               the Business;

          "Computer Systems  Agreements"  means all  arrangements and agreements
               pursuant to which any third  party,  including  any member of the
               Vendor's  Group  provides any element of the Computer  Systems to
               the  Business   including   without   limitation  the  agreements
               particulars  of which are set out in Schedule 2 to the Disclosure
               Letter and in addition any  agreements to be included in Schedule
               2 to which the Vendor and the Purchaser agree in writing prior to
               Completion;

          "Consideration"  means the purchase  price payable by the Purchaser to
               the Vendor for the Business and Assets  hereby  agreed to be sold
               of US Dollars ten thousand (US$10,000) apportioned as provided in
               Schedule 6;

          "Creditors"* means all trade and other debts,  accrued charges and all
               other amounts owing by the Vendor in connection with the Business
               on the  Completion  Date except the Excluded  Liabilities  to the
               extent taken into  account in the  Management  Accounts  together
               with such debts as have  properly  been  incurred in the ordinary
               course of business  between the 30 September  2000 and

<PAGE>

               Completion  except the Excluded  Liabilities;  *NB referred to in
               Warranties only

          "Customer  Cash"  means  all  cash  sums  belonging  or  referable  to
               customers or potential  customers of the Business  which are held
               or  deposited  with the Vendor as  deposits  for or  advances  of
               instalment  payments in relation to, any Business  Contract or so
               held or  deposited  in relation  to any future  contract or order
               which  any such  customer  may  place  with the  Business  in the
               future;

          "Customer Contracts" means all those contracts,  engagements or orders
               entered into on or by the Completion  Date by or on behalf of the
               Vendor with its customers for the sale,  loan or hire of goods or
               equipment or  provision  of services by the Vendor in  connection
               with  and  in  the  ordinary  course  of  business  which  at the
               Completion Date remain to be performed in whole or in part by the
               Vendor   including,   without  limiting  the  generality  of  the
               foregoing words,  all those  contracts,  particulars of which are
               set out in  Schedule 3 to the  Disclosure  Letter and in addition
               any Customer  Contracts to be included in Schedule 3 to which the
               Vendor and the Purchaser agree in writing prior to Completion;

          "Debts" means the aggregate amount  (including VAT) owed to the Vendor
               at the  Completion  Date in  connection  with goods and  services
               supplied  in the  Business  by or in  respect  of  trade  debtors
               including (but without limitation) those trade debtors set out in
               Schedule 4 (which are set out  exclusive  of VAT) and in addition
               any debtors in connection with the Business to be included in the
               Management   Accounts  which  have  fallen  due  between  the  30
               September  2000 and  Completion  to be assigned to the  Purchaser
               pursuant to a Deed of Assignment of Debts in the Agreed Form;

          "Disclosed"  means  fully  and  fairly   disclosed  to  the  Purchaser
               expressly  for the purposes of this  Agreement in the  Disclosure
               Letter and for the  purposes of this  definition  the  expression
               "fully and fairly" means that a matter shall be Disclosed only if
               it has been  disclosed  with  reference to a particular  Warranty
               identified   by  its  number  in   Schedule  1

<PAGE>
               with sufficient  particularity  to enable the Purchaser to assess
               the full impact on the Business of the matter disclosed;

          "Disclosure Letter" the letter disclosing exceptions to the Warranties
               dated the date hereof and written and  delivered by the Vendor to
               the Purchaser ;

          "the Eltrax Guarantor" means Verso Technologies;

          "Equipment" means the loose equipment comprising furniture,  plant and
               machinery,   computer  hardware,  computer  software,  facsimile,
               filing systems, archives and any other equipment wherever situate
               belonging to the Vendor and used in connection  with the Business
               including,  without limitation to the generality of the foregoing
               words,  all  those  items  particulars  of  which  are set out in
               Appendix  2 and in  addition  any  Equipment  to be  included  in
               Appendix 2 which the Vendor  and the  Purchaser  agree in writing
               prior to Completion;

          "Excluded Assets"  means the assets listed in Clause 5 which are owned
               by the Vendor and excluded from the sale;

          "Excluded  Employees"  means  all  employees  if any  other  than  the
               Transferring Employees as listed in Schedule 2 Part 2;

          "Excluded Liabilities" means the liabilities of the Vendor in relation
               to the Business  outstanding at the Completion  Date save for the
               Agreed Liabilities;

          "Goodwill"  means the  goodwill of the Vendor in  connection  with the
               Business  including  the  exclusive  right for the  Purchaser  to
               represent itself as carrying on the Business in succession to the
               Vendor,  and under the names and in  connection  with products of
               the Business  under the trade names  Medallion,  Medallion  2000,
               Medallion 3000, Check, Innmaxx,  Lanmark,  Winnmaxx, EIS and SCMS
               and all other trade names of the Business but excluding  "Eltrax"
               and "Eltrax  Hospitality"  and all other trading names and styles
               of the Vendor;

<PAGE>

          "Head Agreement" means the Agreement  dated 29 September  2000 between
               the Purchaser's Parent Company (1) and Verso Technologies (2) and
               EHGI (3) by virtue of which the  Purchaser's  Parent  Company has
               agreed to  purchase  the  acquired  assets and assume the assumed
               liabilities for the  consideration  (as such terms are defined in
               the Head Agreement) and upon the terms of the Head Agreement;

          "Information"  means other than the  Retained  Records all  stationery
               promotional  material  brochures sales  publications  advertising
               material  terms of  business  and all other  written  or  printed
               material  issued solely in connection with the Business and owned
               by the Vendor;

          "Intellectual Property Rights" means patents, know-how, registered and
               unregistered  trademarks and service marks  (including any trade,
               brand  or  business  name  and  any  distinctive  sounds  used to
               differentiate  the goods or  services  of the  Business),  domain
               names,  registered  designs,  registered rights,  utility models,
               copyright  (including  all such rights in computer  software  and
               hardware,  the Business  Information  and any  databases),  moral
               rights and topography  rights,  (in each case for the full period
               thereof and all  extensions and renewals  thereof),  applications
               for any of the  foregoing  and the  right to apply for any of the
               foregoing  in any  part  of the  world  and  any  similar  rights
               situated in any country;  and the benefit (subject to the burden)
               of  any  and  all  agreements,   arrangements   and  licences  in
               connection with any of the foregoing and without prejudice to the
               generality of the foregoing the rights to use, assign, licence or
               grant  rights over any trade or service mark of the Vendor or any
               member of the Vendor including the rights to Medallion, Medallion
               2000, Medallion 3000, Check, Innmaxx, Lanmark,  Winnmaxx, EIS and
               SCMS but save for "Eltrax" and "Eltrax Hospitality";

          "Landlord" means the person or corporation for the time being entitled
               to the  reversion  expectant on the term granted by the Lease and
               shall  include any superior  landlord and the  freeholder  of the
               Property excluded from the sale hereby agreed;

<PAGE>
          "Lease" means the Lease of the Property as defined below;

          "Lease  Contracts"   means  those  contracts  and  other   contractual
               arrangements  particulars  of which are set out in  Schedule 6 to
               the Disclosure Letter  (including,  without  limitation,  finance
               leases, but excluding leases of real property) entered into by or
               on behalf of the Vendor in connection with the Business and which
               remain  unperformed as at the  Completion  Date pursuant to which
               tangible  assets used by the Vendor in or in connection  with the
               Business at that date  (together  "the Leased  Assets") have been
               supplied  to or are held by the  Vendor on hire or other  rental,
               lease,  licence, hire purchase, or in other terms such that title
               thereto does not pass or has not passed to the Vendor;

          "Management  Accounts" means the balance sheet of the Business made up
               at 30 September  2000 and the trading and profit and loss account
               of the  Business for the period of 9 months ended on that date in
               the Agreed Form;

          "Motor Vehicles" means those, motor vehicles, details of which are set
               out in Schedule 4 to the  Disclosure  Letter and in addition  any
               Motor  Vehicles to be included in Schedule 4 which the Vendor and
               the Purchaser agree in writing prior to Completion;

          "Planning Acts"  means the Town and  Country  Planning  Act 1990,  the
               Planning  (Listed  Building  Conservation  Areas)  Act 1990,  the
               Planning  (Hazardous   Substances)  Act  1990  and  the  Planning
               Compensation Act 1990;

          "the Property"  means  the  leasehold  property  owned  by the  Vendor
               described in Schedule 5;

          "Purchaser's  Solicitors"  means Messrs  Joelson Wilson & Co of 70 New
               Cavendish Street London W1G 8AT;

          "Records" means all sale and purchase  records and lists of customers,
               suppliers,   agents,   distributors  and  prospective  customers,
               contracts,   correspondence,   data,   information  reports,  all

<PAGE>
               consultancy  reports  prepared  for the Vendor or its  customers,
               personnel,  payroll and national  insurance  records,  orders for
               services  and other books and  records in whatever  form the same
               are maintained  (including computer programmes) in respect of the
               Business  as are  within the power  possession  or control of the
               Vendor and as may exist but  excluding  the Retained  Records and
               any other  records  the Vendor is  required  to retain  including
               (without  limit) all national  insurance and PAYE records and all
               records which relate both to the Business and other operations or
               businesses of the Vendor's Group;

          "Retained  Records"  means  records and other  documents of the Vendor
               relating to the Business required to be retained by the Vendor by
               law;

          "Stock" all  unsold  products  and  stock  in  trade,  raw  materials,
               components and work in progress of the Business at the Completion
               Date;

          "Supplier Contracts" means all those contracts,  engagements or orders
               entered into on or prior to the  Completion  Date by or on behalf
               of the  Vendor  for the  supply or sale of goods to the Vendor in
               connection  with and in the ordinary course of the Business which
               at the Completion Date remain to be performed in whole or in part
               including,  without  limiting  the  generality  of the  foregoing
               words, all those  contracts,  particulars of which are set out in
               Schedule 5 to the Disclosure  Letter and in addition any Supplier
               Contracts  to be  included in Schedule 5 which the Vendor and the
               Purchaser agree in writing prior to Completion;

          "Third Party Rights" means rights of the Vendor  against third parties
               arising  out of the  Business  in  respect of  manufacturer's  or
               supplier's    warranties   guarantees   and   other   contractual
               obligations  and  assurances  (express or implied) in relation to
               Stock,  Equipment  and Computer  Systems so far as the Vendor can
               assign the same but excluding any claim or right by the Vendor in
               respect of taxation or insurance;

          "Transferring Employees" means the employees listed in Schedule 2 Part

<PAGE>
               1 and in  addition  any  other  Transferring  Employee  which the
               Vendor and the Purchaser agree in writing prior to Completion;

          "VAT Records" means all records  relating to the Business  referred to
               in Section 49 of and Schedule 11 to the Value Added Tax 1994;

          "Vendor's Group"  means the  holding  company of the Vendor and all of
               the subsidiaries of such holding company;

          "Vendor's  Solicitors"  Ormerods  of Green  Dragon  House,  64-70 High
               Street, Croydon CRO 9XN;

          "Warranties" the warranties  representations and undertakings given by
               the Vendor and  guaranteed  by the  Eltrax  Guarantor  set out in
               Schedule 1 to this  Agreement and  "Warranty"  shall be construed
               accordingly.

1.2  The schedules and  appendices  attached  hereto form part of this Agreement
     and have the same force and effect as if  expressly  set out in the body of
     this Agreement and any reference to this Agreement  includes the schedules,
     appendices and the recitals hereto

1.3  In this Agreement and its schedules:

     1.3.1 words and expressions defined in the Companies Acts 1985-1989 bear
           the same respective meanings

     1.3.2 reference to any statute or statutory  provision  includes any
           statute or  statutory  provision  which  amends or  replaces or has
           amended or replaced it or which it has  replaced  and  includes  any
           subordinate legislation  made under the relevant statute except to
           the extent that any amendment or modification enacted after the date
           of this Agreement would  extend  or  increase  the  liability  of the
           Vendor  under the Warranties

     1.3.3 the paragraph headings and index are for reference  purposes only and
           shall not affect interpretation

     1.3.4 unless otherwise  stated a  reference  to a clause or  schedule  is a
           reference to the clause or schedule so numbered in this Agreement

     1.3.5 unless the context  otherwise  requires  words  importing  one gender
           include the other genders and words importing the singular include
           the plural and vice versa

<PAGE>

2.   SALE AND PURCHASE OF THE BUSINESS
     ---------------------------------

2.1  Subject to the  provisions of this  Agreement the Vendor shall sell and the
     Purchaser  shall  purchase  for the  Consideration  with  effect  from  the
     Completion  Date the Business as a going concern and the Assets and without
     prejudice to the  generality  of the  foregoing the Assets shall include in
     particular the following assets of the Business:

     2.1.1 the Goodwill;

     2.1.2 the Equipment;

     2.1.3 the benefit (subject to the burden) of the Business Contracts;

     2.1.4 the benefit (subject to the burden) of the Computer Software Licences
           (including for the  avoidance of doubt the benefit of all  guarantees
           given to the Vendor in respect thereof or relating thereto);

     2.1.5 the Stock;

     2.1.6 the Intellectual Property Rights;

     2.1.7 the Cash;

     2.1.8 the  Computer  Systems  and  the  benefit  of  the  Computer  Systems
           Agreements;

     2.1.9 the Motor Vehicles;

     2.1.10 without in any way  limiting the  generality  of the  foregoing  all
          other assets (if any) of the Vendor of whatever nature employed in the
          Business at the Completion Date but excluding the Excluded Assets

2.2  The Consideration  (apportioned as provided in Schedule 6) shall be paid in
     cash upon Completion in accordance with Clause 4.3;

2.3  The  Eltrax  Guarantor  shall  procure  that the Vendor  complies  with its
     obligations under clause 2.1

2.4  The  Purchaser's  Parent Company shall procure that the Purchaser  complies
     with all the Purchaser's obligations under this Agreement;

3.   CONSIDERATION:
     -------------

3.1  The  Consideration  payable for the sale by the Vendor of the  Business and
     the Assets shall be the sum of US Dollars ten thousand (US$10,000) equal to
     the aggregate of the values of the Goodwill,  the  Equipment,  the Business

<PAGE>

     Contracts,  the Computer  Software  Licences,  the Stock,  the Intellectual
     Property  Rights,  the Cash, the Computer  Systems and the Computer Systems
     Agreements, and the Motor Vehicles.

4.   COMPLETION
     ----------

4.1  Completion  shall take place at the Purchaser's  Solicitors  offices on the
     Completion  Date  at the  Completion  Time or at such  other  place  as the
     parties may agree whereupon the transactions set out in Clauses 4.2 and 4.3
     shall take place.

4.2  The Eltrax Guarantor shall procure and the Vendor shall deliver or cause to
     be delivered to the Purchaser:

     4.2.1 a Deed of Assignment of the Intellectual Property Rights in the
           Agreed Form duly executed by the Vendor;

     4.2.2 a Deed of Assignment of the Goodwill in the Agreed Form duly executed
           by the Vendor

     4.2.3 a Deed of Assignment of the Debts in the Agreed Form duly executed by
           the Vendor

     4.2.4 the Equipment, the Computer Systems, the Motor Vehicles and all other
           of the Assets as are capable of passing by delivery

     4.2.5 such documents as shall be  reasonably  necessary or  appropriate  to
           complete the sale and purchase of the Assets and vest title in them
           in the Purchaser

     4.2.6 the Records  and VAT  records  and  copies  of the PAYE and  National
           Insurance records

     4.2.7 the Stock

     4.2.8 the Business  Contracts  which  the  Vendor  hereby  assigns  to  the
           Purchaser

     4.2.9 the Business Information and the Information

     4.2.10 the Computer Software Licences and the Computer Systems Agreements

     4.2.11 deeds of release in respect of all charges mortgages  debentures and
            other security  interests created by the Vendor or to which any of
            the Assets are subject in terms satisfactory to the Purchaser

     4.2.12 transfer documents in respect of Motor Vehicles

<PAGE>

4.3  At the request and on the authority of the Vendor the  Purchaser  shall pay
     or cause to be paid to Verso Technologies Inc the Consideration.

4.4  The  Purchaser  shall not be obliged to complete the purchase of any of the
     Assets  unless the purchase of all the Assets is  completed  in  accordance
     with this Agreement (and  completion of the Head Agreement is or shall have
     been effected).

4.5  The  Vendor  undertakes  with the  Purchaser  to  allow  the  Purchaser  on
     reasonable  notice  access  to or copies  of such of the  Retained  Records
     relating to the period before  Completion  as the Purchaser may  reasonably
     require  in order to  comply  with any  legal  obligations  imposed  on the
     Purchaser  after  Completion and the Vendor  undertakes  that it shall give
     such  reasonable  assistance  to the  Purchaser  as shall be  agreed by the
     Purchaser  and the  Vendor  after the  Completion  Date to  facilitate  the
     transition of the Business to the  Purchaser  including if requested by the
     Purchaser attending meetings with customers of the Business

5.   EXCLUDED ASSETS AND LIABILITIES

There shall be excluded  from the sale and purchase of the Business and retained
by the Vendor:

5.1  all the  statutory  books  and  statutory  records  of the  Vendor  and the
     Retained Records

5.2  any  amounts  recoverable  by the  Vendor in respect  of  taxation  paid or
     payable by the Vendor in connection with matters or events  occurring on or
     before the Completion

5.3  the Excluded Liabilities

5.4  the Property

6.   VALUE ADDED TAX

6.1  The  parties  intend  that  Section 49 of the Value  Added Tax Act 1994 and
     Article 5 of the Value  Added Tax  (Special  Provisions)  Order  1995 shall
     apply  to the  transfer  of the  Business  and the  parties  shall  use all
     reasonable  endeavours  to secure that the sale of the  Business as a going
     concern is  treated  as neither a supply of goods nor a supply of  services
     for the purposes of VAT

6.2  In the event that VAT is  chargeable  on the  transfer  of the whole or any
     part of the Business  pursuant to this  Agreement the  Purchaser  shall pay
     within  sufficient  time for the  Vendor to pay such VAT in due time to the
     Vendor (in  addition  to the  Consideration  referred  to in Clause 2.2) an
     amount  equal to the VAT  payable  in  respect  of the  transfer  following

<PAGE>

     delivery by the Vendor to the  Purchaser  of tax invoices in respect of the
     purchase price (or such part that attracts VAT)

6.3  The  Purchaser  hereby  undertakes  to  preserve  the VAT  Records for such
     periods as are required by law and, upon reasonable  notice but only during
     normal  business  hours,  to  permit  the  Vendor  or its  duly  authorised
     representatives  to inspect and at the Vendor's costs to make copies of the
     VAT records

7.   CONDUCT OF THE BUSINESS

7.1  In the event that this  Agreement  is  entered  into on a date prior to the
     Completion  Date the Vendor shall carry on the Business as a going  concern
     and prudently and in an efficient and business-like manner from the date of
     this Agreement to the Completion Date and during such period shall:

     7.1.1 not sell or dispose of any of the Assets or remove any physical
           Assets of the Business  from the Property save in the course of
           normal day to day trading;

     7.1.2 use its best endeavours to maintain the trade and trade connection of
           the Business and shall not by any action  omission  default or
           neglect knowingly damage or risk damage to the same;

     7.1.3 settle the  debts  incurred  by it in  the  course  of  the  Business
           including  (without  limitation)  salaries wages and other emoluments
           payable to the employees of the Business;

     7.1.4 not enter into any  material  contract  or incur  capital expenditure
           (other than as disclosed in writing to the Purchaser prior to the
           date of this  Agreement  or except  with the prior  written  consent
           of the Purchaser or at its request);

     7.1.5 not in any way  depart  from the  ordinary  course of the  day-to-day
           conduct of the Business  either as regards the scope or the manner of
           conducting the same;

     7.1.6 not enter into any unusual or abnormal  contract or  commitment which
           is material to the Business;

     7.1.7 not grant or create or agree to grant or create  any  mortgage charge
           debenture or other incumbrance over or affecting any of the Assets;

     7.1.8 not permit  any of its  insurances  to  lapse or do or omit to do any
           thing which would make any policy of insurance void or voidable.

7.2  The Purchaser  shall take over the Business with effect from the Completion
     Date and shall assume  responsibility for the management of the Business in
     all respects.

<PAGE>

8.   DEBTS AND LIABILITIES

8.1  The  Vendor  shall  assign  the Debts to the  Purchaser  on  Completion  by
     executing  a Deed of  Assignment  in the Agreed  Form as provided in Clause
     4.2.3.

8.2  The Vendor shall be solely  responsible  for and in the ordinary  course of
     business   shall   discharge   the   Excluded   Liabilities   promptly  and
     notwithstanding  Completion  shall be responsible  for all debts payable by
     and claims  accruing or outstanding  against it in relation to the Business
     at Completion (save for the Agreed  Liabilities)  which it hereby agrees to
     discharge and satisfy in a timely manner.  In relation to any claim made by
     a third party the Vendor will promptly give notice thereof to the Purchaser
     and will not take any steps  which might  reasonably  be expected to damage
     the commercial  interests of the Purchaser without prior  consultation with
     and the approval of the  Purchaser  such  approval  not to be  unreasonably
     withheld or delayed.

8.3  The Purchaser shall be responsible for discharge of the Agreed  Liabilities
     in accordance with their terms as from Completion

8.4  The Purchaser  shall fully and effectively  indemnify and keep  indemnified
     the Vendor on demand against all demands,  claims,  liabilities,  costs and
     expenses properly incurred by it in relation to the Agreed Liabilities

9.   RISK AND LIABILITIES
     --------------------

9.1  The assets rights and property to be sold pursuant to this Agreement  shall
     be at the sole risk of the Purchaser from the Completion Time

9.2  Save for the Agreed  Liabilities and the other obligations of the Purchaser
     assumed  hereunder  the Vendor  hereby  undertakes  to  indemnify  and hold
     harmless the Purchaser from and against any and all

     9.2.1 losses costs liabilities and expenses arising out of or in connection
           with the ownership or carrying on of the Business arising or relating
           to all periods up to or on  Completion  and any and all actions suits
           proceedings claims  demands  assessments  awards  and  judgements  in
           respect  thereto and  (save  in  respect  of  work  in  progress  and
           unfinished  products  and  any  steps  required  to be  taken  by the
           Purchaser under Clause 7.2)

     9.2.2 liabilities arising   under  or  in  respect   of  all   contractual
           commitments entered  into by the Vendor in  respect  of the  Business
           (save as  provided  in  Clause  2.1.3  in  respect  of  the  Business
           Contracts)

<PAGE>

9.3  The  Purchaser  covenants  with  the  Vendor  that  it will  pay,  satisfy,
     discharge, and fulfil all costs, claims, expenses, liabilities, obligations
     and  undertakings  whatsoever  relating  to the  Business in respect of any
     period commencing after Completion except the Excluded Liabilities and will
     indemnify  and hold  harmless the Vendor in respect of the same (except the
     Excluded Liabilities)

     9.4.1 Subject to Clause 9.4.2 after Completion the Purchaser shall meet and
           discharge all claims for fulfilment of warranties given by the Vendor
           in relation to the Business to customers which have been disclosed to
           the Purchaser or are normal warranties given in the ordinary course
           of the Business  which arise after that date in respect of products
           sold or supplied or services provided by the Vendor before Completion
           and the Purchaser shall indemnify the Vendor against all reasonable
           costs and liabilities incurred by the Vendor under such warranties

     9.4.2 In respect of liability for the costs to upgrade Squirrel software to
           "Version 1.1" pursuant to an international distribution agreement
           made between  Squirrel  Systems,   Inc.  ("Squirrel")  (1)  and
           AremisSoft Hospitality  (US), Inc., (2) dated 18 October 2000 (the
           "Distribution Agreement"),  neither the customers of the Business nor
           the Purchaser, the Purchaser's  Parent Company nor its  subsidiaries
           with respect to such  customers,  will be liable for the cost of
           providing the Version 1.1  upgrade  pursuant  to and in  accordance
           with the  terms of the Distribution Agreement. Other than the rights,
           duties, liabilities and obligations created by the Distribution
           Agreement, no rights, duties, liabilities or obligations are granted
           to or imposed upon any party by this clause.

9.5  All rents, rates, gas, water, electricity and telephone charges and service
     charges  and other  outgoings  relating  to or  payable  in  respect of the
     Business (including but not exclusively  repairs,  decoration,  damages for
     breach of covenant  landlord's  costs  including  surveyors fees in respect
     thereof) up to and  including  Completion  shall be borne by the Vendor and
     after  Completion such charges and other outgoings  (excluding  damages for
     breach of covenant  arising from lack of repair,  decoration  and any other
     breach prior to Completion and landlord's  costs  including  surveyors fees
     relating  to a  claim  for  damages  for a  breach  of  covenant  prior  to
     Completion)  relating  to or payable in  respect  of the  Business  and the
     Property  whilst  it is used  for the  purpose  of the  Business  or by the
     Purchaser or any associated  company of the Purchaser as aforesaid shall be
     borne  by  the  Purchaser.  Outgoings  and  payments  receivable  including
     Customer Cash shall be apportioned  between the Vendor and the Purchaser on
     a like basis.  All rents,  rates,  gas,  water,  electricity  and telephone
     charges and service  charges and other outgoings in respect of the Property
     (including but not exclusively repairs,  decoration,  damages for breach of
     covenant  landlord's costs including  surveyors fees in respect thereof and
     any reverse  premium  arising  after  Completion)  and all rentals or other
     payments  and  periodic  payments  including  premiums   receivable  on  an
     assignment  or  surrender  of the Lease or a  subletting  thereof and other
     benefits in respect of the Property  after the later of Completion  and the
     date the  Property is no longer used for the purpose of the  Business or by
     the Purchaser as aforesaid  shall be dealt with in  accordance  with Clause
     17.

<PAGE>

9.6  Where any amounts fall to be apportioned  under this Agreement,  the Vendor
     shall  provide  the  Purchaser  with full  details  of the  apportionments,
     together  with  supporting  vouchers or similar  documentation,  and in the
     absence  of  dispute  the  appropriate  payment  shall be made by or to the
     Vendor  forthwith.  If the amount of any  apportionment is in dispute,  the
     provisions  of Clause 9.7 shall  apply for  resolving  the  dispute and the
     amount  determined in  accordance  with that clause shall be paid within 14
     days of the  determination,  together with  interest  calculated on a daily
     basis (as well after as before  judgment),  from the  Completion  until the
     date of actual  payment,  at the rate of one per cent per  annum  above the
     base rate from time to time of Barclays Bank PLC

9.7  Any  dispute  with  respect  to  the  determination  of  the  value  of any
     apportionments under Clause 9.6 shall be referred for final settlement to a
     firm of  chartered  accountants  nominated  jointly  by the  Vendor and the
     Purchaser  or,  failing  such  nomination  within 14 days after  request by
     either the Vendor or the  Purchaser,  nominated at the request of either of
     them by the  President  for the time being of the  Institute  of  Chartered
     Accountants in England and Wales. The accountants shall be entitled to call
     for and inspect the working papers of the Vendor's  auditors and such other
     documents  as they may  reasonably  consider  necessary.  In  making  their
     determination, the accountants shall act as experts and not as arbitrators,
     their  decision  shall  (in the  absence  of  manifest  error) be final and
     binding on the parties and their fees shall be borne and paid by the Vendor
     and the Purchaser in such proportions as the accountants determine

9.8  The Vendor  shall be  granted  by the  Purchaser  the right  during  normal
     business hours to inspect on reasonable  notice all the Records relating to
     the  Business  which  the  Vendor  considers  necessary  to  consider  such
     apportionments  provided  that the Vendor shall keep the same  confidential
     and not divulge or disclose the same save as required by law

9.9  The  Vendor  shall  maintain  all such of the  Retained  Records  which are
     retained  by it on  Completion  for a period of not less than 7 years  from
     Completion

10.  TITLE

10.1 The Eltrax  Guarantor  shall  procure that it and the Vendor shall take all
     necessary steps and generally co-operate fully with the Purchaser to ensure
     that it obtains the full  benefit of the  Business and the Assets and shall
     execute  such  documents  and  take  such  other  steps  as are  reasonably
     necessary  or  appropriate  for  vesting  its rights and  interests  in the
     Business and the Assets in the Purchaser and as requested by the Purchaser

10.2 In so far as the Assets  comprise  the benefit  and burden of the  Business
     Contracts or the Computer Software Licences or Computer Systems  Agreements
     (in this Clause together  referred to as "the  Contracts")  which cannot be
     effectively  assigned to the Purchaser without the consent of a third party
     or except by agreement or novation:-

<PAGE>

     10.2.1 the Vendor and the Purchaser shall use all reasonable  endeavours to
            obtain such consent in order to procure a novation;

     10.2.2 unless and until such  consent is obtained  or any such  contract is
            novated the Purchaser shall for its own benefit and to the extent
            that the Contracts  permit the Vendor shall hold the relevant
            Contracts as bare trustee for the Purchaser  (and subject to Clause
            10.2.3) for nil consideration  and  shall  sub-contract  any  work
            arising  from  the Contracts  to the  Purchaser  to the intent  that
            the Vendor  does not benefit from the Contracts

     10.2.3 if and to the extent that any Contract  incorporates  a  prohibition
            against  holding  on  trust or any  agency  arrangement,  pending
            the obtaining of such  consents,  the Vendor and the  Purchaser
            will make such other  arrangements  between  themselves as may be
            permissible to implement so far as possible the effect of the
            transfer of the benefit and the burden of such  Contracts to the
            Purchaser to the intent that the Vendor does not  benefit  from and
            incurs no expense in respect of the Contracts.

10.3 The Purchaser  shall  indemnify  and hold  harmless the Vendor  against all
     costs,  claims,  liabilities and expenses arising out of the Contracts (but
     not in the  event  that the same  arises  from a breach or  default  by the
     Vendor) after Completion

10.4 The Eltrax  Guarantor  shall  procure that whilst the Vendor's  obligations
     under  Clause  10.2  subsist  the  Vendor  shall  remain  solvent,  pass no
     resolution  or have no order made  against it for its  winding-up,  have no
     administrator,  administrative receiver or receiver appointed in respect of
     its assets or take or suffer any similar or analogous action in consequence
     of debt.

11.  CASH

11.1 The Vendor shall within  fourteen days after the Completion Date produce to
     the Purchaser a cash statement  that shall  reconcile with the bank account
     of the Vendor at the Completion  Date and all cheques and other  securities
     representing  the same received by the Vendor after the Completion Time and
     the Vendor shall further produce copies of its relevant bank statements and
     shall pay to the  Purchaser  the  amount (if any) shown as a credit on such
     statement  within  7 days  of  production  of the  cash  statement  and the
     relevant bank statements  together with interest thereon from the expiry of
     such 7 day period at 1% over the Base Rate of Barclays Bank.

11.2 Any dispute  with  respect to the  determination  of the amount of the Cash
     shall be referred for final  settlement to a firm of chartered  accountants
     nominated  jointly  by the  Vendor  and  the  Purchaser  or,  failing  such
     nomination  within 14 days  after a request  by  either  the  Vendor or the
     Purchaser,  nominated at the request of either of them by the President for
     the time being of the  Instituted  of Chartered for and in  Accountants  in
     England and Wales.  The accountants

<PAGE>

     shall be entitled to call for the cash  statement  and the bank  statements
     referred  to in 11.1  and  such  other  documents  as they  may  reasonably
     consider necessary.  In making their  determination,  the accountants shall
     act as experts and not as arbitrators, their decision shall (in the absence
     of manifest error) be final and binding on the parties and their fees shall
     be borne and paid by the Vendor and the  Purchaser in such  proportions  as
     the accountants determine.

12.  WARRANTIES BY THE VENDOR
     ------------------------

12.1 The Vendor  warrants to the Purchaser that subject to matters  Disclosed in
     the  Disclosure  Letter and in this  Agreement  the  Warranties  set out in
     Schedule 1 at the date of this  Agreement are (and will at  Completion  be)
     true and accurate in all respects

12.2 The rights and  remedies of the  Purchaser  in respect of any breach of the
     Warranties shall not be affected by Completion, by the Purchaser failing to
     exercise  or delaying  the  exercise of any of its rights or remedies or by
     any other event or matter whatsoever

12.3 Where any Warranty  refers to the  awareness or knowledge  information  and
     belief of the Vendor the Vendor  undertakes that it has procured that David
     Jones  director  of the Vendor  has made  reasonable,  diligent  and proper
     enquiry into the subject matter of that Warranty

12.4 If the Vendor pays to the Purchaser an amount in respect of a breach of the
     Warranties and the Purchaser subsequently recovers from a third party a sum
     which is in respect of that breach the Purchaser shall forthwith pay to the
     Vendor so much of the amount  paid by the Vendor as does not exceed the sum
     recovered  from the third  party  less all  reasonable  costs  charges  and
     expenses  incurred by the Purchaser in  recovering  that sum from the third
     party and any applicable tax

13.  EMPLOYEES

13.1 The  parties  declare  that it is their  intention  that the  contracts  of
     employment  of the  Transferring  Employees  shall  be  transferred  to the
     Purchaser   pursuant  to  the  Transfer  of  Undertakings   (Protection  of
     Employment)   Regulations  1981  ("the   Regulations")   with  effect  from
     Completion

13.2 All salaries and other emoluments  including  national  insurance  payments
     relating to the  Transferring  Employees shall be borne by the Vendor up to
     and including  Completion and by the Purchaser thereafter and all necessary
     apportionments shall be made

13.3 The Vendor shall indemnify the Purchaser  against each and every cost claim
     liability  expense or demand  which  relates to or arises out of any act or
     omission by the Vendor including without prejudice to the generality of the
     foregoing  any failure by the Vendor to comply with its  obligations  under
     regulation 10 of the Regulations or any other event or occurrence  prior to
     the

<PAGE>

     Completion  Date and  which the  Purchaser  may  incur in  relation  to the
     employment of the Transferring Employees and in relation to any contract of
     employment and collective agreements concerning the Transferring  Employees
     pursuant to the operation of the Regulations  including without  limitation
     any such matter relating to or arising out of:

     13.3.1 the Vendor's  rights powers duties  and/or  liabilities  under or in
            connection with  any  such  contract  of  employment  and  any  such
            collective agreements (which rights powers duties and/or liabilities
            are or will be transferred to the Purchaser in  accordance  with the
            Regulations)

     13.3.2 anything  done or omitted  before  the date of  Completion  by or in
            relation to the Vendor in respect of any contract of employment or
            any such  collective  agreements  or any person  employed in the
            Business which is deemed to have been done or omitted by or in
            relation to the Purchaser in accordance with the Regulations

     13.3.3 the Vendor's  failure to pay to any  Transferring  Employee any sums
            due in respect of the period prior to the Completion Date

     13.3.4  any  claim  by  any  trade  union,  staff   association,   employee
             representatives or staff body recognised by the Vendor or
             Transferring Employees  in  respect  of all or  any of the
             Transferring  Employees arising  out  of  the  Vendor's  failure
             to  comply  with  its  legal obligations  to such  trade  unions or
             staff  associations,  employee representatives, staff bodies or
             Transferring Employees

     13.3.5 any  claim by any of the  Excluded  Employees  (if any) or any other
            former existing  or  future  employee  of  the  Vendor  (other  than
            Transferring Employees) against the Purchaser concerning or relating
            to any matter whatever including without limitation any claim by
            such Excluded  Employees (if any) that their  employment has
            transferred to the  Purchaser or arising  from any  termination
            which the  Purchaser effects of such Excluded Employees (if any)

13.4 The Purchaser  shall indemnify the Vendor against each and every cost claim
     liability  expense  or  demand  arising  from  any act or  omission  by the
     Purchaser  in  relation  to a  Transferring  Employee  occurring  after the
     Completion Date

13.5 The parties hereby agree and  acknowledge  that the Excluded  Employees (if
     any) shall be deemed not to transfer  with the Business and shall remain in
     the employ of the Vendor.

14.  VENDOR'S UNDERTAKINGS

For the purpose of assuring to the  Purchaser  the full  benefit of the Business
the Vendor covenants with the Purchaser that the Vendor shall not and the Eltrax
Guarantor as a separate covenant  covenants with the Purchaser that it shall not
and

<PAGE>

shall procure that each company in the Vendor's Group shall not:-

14.1 use in any way,  for their own account or the  account of any other  party,
     nor disclose to any third party,  Confidential  Information relating to the
     Business  or any  clients or  customers  of the  Business  or any Assets or
     Information which are the subject of this Agreement save as may be required
     by law or which enters the public domain (through no fault of the Vendor)

14.2 publish any technical descriptions of Confidential Information beyond those
     published and  authorised  for  disclosure by the Purchaser  save as may be
     required by law or which enters the public domain  (through no fault of the
     Vendor)

14.3 for three (3) years following the Completion,  either on its own account or
     through or in conjunction  with any other person anywhere within the United
     Kingdom unless otherwise authorised by the Purchaser in writing directly or
     indirectly

     14.3.1 solicit,  interfere with,  approach or endeavour to entice away from
            the  Purchaser  any  person  who is now or has during the last two
            (2) years  preceding the Completion been a client or customer or
            potential client or customer or employee or contractor of the Vendor
            in relation to the Business

     14.3.2 participate in the ownership, management,  operation, or control of,
            or have any financial  interest in or be connected  with, or engage
            in or aid or knowingly assist anyone else, in the conduct of any
            business in competition with the Business

15.  GUARANTEES

15.1 In consideration  of the Purchaser  entering into this Agreement the Eltrax
     Guarantor  hereby  guarantees the due and full performance by the Vendor of
     its duties  obligations  and  undertakings  under this Agreement and hereby
     undertakes to the Purchaser that if the Vendor shall fail in any respect to
     fulfil or shall be in breach of any of its  duties  obligations  Warranties
     representations covenants or undertakings the Purchaser shall be at liberty
     to act and the  Eltrax  Guarantor  shall be  liable as if it were the party
     principally bound thereby

15.2 In  consideration  as aforesaid the Eltrax  Guarantor hereby covenants with
     the Purchaser  that it will  indemnify and at all times  hereafter keep the
     Purchaser fully  indemnified  against all losses damages costs and expenses
     which may be  incurred  or  suffered  by it by reason of any default on the
     part of the Vendor in making the payments and in  performing  and observing
     the agreements and conditions on its part herein contained

15.3 The  Eltrax  Guarantor  hereby  agrees  that any duty  obligation  covenant
     Warranty  agreement or  undertaking  expressed in this  Agreement or in the
     Schedules  to  be  a  duty  obligation   covenant  Warranty   agreement  or
     undertaking

<PAGE>

     of the  Vendor  shall be and be  construed  as a duty  obligation  covenant
     Warranty  agreement and undertaking of the Eltrax  Guarantor and the Vendor
     jointly and severally

15.4 In consideration of the Vendor entering into this Agreement the Purchaser's
     Parent  Company  hereby  guarantees  the due and  full  performance  by the
     Purchaser of its duties  obligations and undertakings  under this Agreement
     and hereby undertakes to the Vendor that if the Purchaser shall fail in any
     respect  to fulfil or shall be in breach of any of its  duties  obligations
     representations covenants or undertakings the Vendor shall be at liberty to
     act and the  Purchaser's  Parent  Company shall be liable as if it were the
     party principally bound thereby.

15.5 In  consideration  as  aforesaid  the  Purchaser's  Parent  Company  hereby
     covenants with the Vendor that it will indemnify and at all times hereafter
     keep the Vendor  fully  indemnified  against all losses  damages  costs and
     expenses  which may be  incurred or suffered by it by reason of any default
     on the part of the Purchaser in making the payments and in  performing  and
     observing the agreements and conditions on its part herein contained.

15.6 The  Purchaser's  Parent  Company  hereby  agrees that any duty  obligation
     covenant  agreement or  undertaking  expressed in this  Agreement or in the
     Schedules to be a duty obligation  covenant agreement or undertaking of the
     Purchaser shall be and be construed as a duty obligation covenant agreement
     and undertaking of the Purchaser's Parent Company and the Purchaser jointly
     and severally.

15.7 The guarantees,  covenants and agreements contained in this clause 15 shall
     be a  continuing  security  and  shall  not  be  affected  by any  time  or
     indulgence  granted by the  Purchaser to the Vendor or by the Vendor to the
     Purchaser.

15.8 Each reference  herein to the Eltrax  Guarantor and the Purchaser's  Parent
     Company shall be deemed to include their respective  successors all of whom
     shall be bound by the provision hereof

16.  CONDITIONS

16.1 This  Agreement  and  Completion  are  conditional  upon the  exchange  and
     completion of the Head Agreement.

16.2 This Agreement shall automatically terminate on the expiry of 6 months from
     the date hereof and all rights and  obligations  of the parties  shall save
     for accrued rights cease to have effect  immediately  on such date,  unless
     before that date the above mentioned condition has been fulfilled.

17.  THE PROPERTY

17.1.1 The Purchaser  shall after the  Completion  Date pay the outgoings on the
     Property  as  provided  in Clause 9.5 whilst the  Property  is used for the
     purposes

<PAGE>

       of the  Business or by the  Purchaser as set out in Clause 9.5 as
       aforesaid and the Purchaser's Parent Company shall pay to the Vendor
       one half of such outgoings incurred and paid by the Vendor thereafter.
       For the avoidance of doubt  outgoings as referred to in this clause
       17.1.1 shall not include any sum  payable to the  Landlord  on a
       surrender  of the Lease which shall be dealt with in accordance with
       clause 17.5.

17.1.2 All rentals or other payments and periodic payments receivable in respect
     of the  Property  whilst it is used for the  purposes of the Business or by
     the Purchaser as aforesaid after the Completion Date shall belong to and be
     payable to the Purchaser  but after the Property  ceases to be used for the
     purposes of the  Business or by the  Purchaser  as set out in Clause 9.5 as
     aforesaid all such rentals or other payments and periodic  payments and any
     other benefits including premiums receivable on an assignment,  sub-letting
     or  surrender of the Lease shall be shared  equally  between the Vendor and
     the Purchaser.

17.2 The Purchaser's Parent Company shall be entitled at any time to require the
     Vendor to use its best endeavours to surrender or assign the Lease on terms
     acceptable to both parties and, in the case of an assignment, to obtain the
     consent of the Landlord to the same.

17.3 The Vendor shall give full particulars to the Purchaser's Parent Company in
     respect  of any  claim  arising  under  this  clause  17 or of  any  notice
     direction  order or proposal for a notice  direction or order made given or
     issued  in  respect  of  the  Property  by  the  Landlord,  any  government
     department or local or public  authority as soon as  practicable  after the
     same has come to its  knowledge  and shall supply a copy of the same to the
     Purchaser's Parent Company.  Subject to clause 17.7 below, the Vendor shall
     without  delay and at the  Vendor's  own cost take all  necessary  steps to
     comply with,  avoid,  resist or compromise the same and also at the request
     of the Purchaser's  Parent Company make such objections or  representations
     relating  to the  same  as the  Purchaser's  Parent  Company  shall  acting
     reasonably deem expedient  PROVIDED THAT,  save where the notice  direction
     order or proposal for the same has been made given or issued as a result of
     any act or default solely of the Vendor or anyone else at the Property with
     the Vendor's  authority (except the Purchaser or any associated  company of
     the Purchaser),  the Purchaser's  Parent Company shall indemnify the Vendor
     against  one half of the  amount of any claim or demand  made  against  the
     Vendor and paid by the Vendor in respect of the Property  including but not
     exclusively  in the event that the Lease is assigned any claim or demand by
     the Landlord if the Assignee fails to comply with the terms of the Lease

17.4 The Vendor shall not do or permit or suffer any person to do anything on or
     in relation to the  Property  which would or might cause it to be in breach
     of any covenants or  conditions  attaching to the Property  whatsoever  and
     which could result in a notice direction order claim or demand being made.

<PAGE>

17.5 Subject to the Proviso  hereto if the Lease is  surrendered to the Landlord
     after Completion then the Purchaser's Parent Company hereby indemnifies the
     Vendor  against one half of any sum payable to the  Landlord to effect such
     surrender  PROVIDED THAT before  agreeing such  surrender with the Landlord
     the Vendor  shall  obtain the prior  written  approval  of the  Purchaser's
     Parent  Company of the  amount of any  payment or premium to be paid to the
     Landlord on such surrender.

17.6 The  Purchaser's  Parent  Company  shall pay to the  Vendor one half of the
     proper and reasonable costs including but not exclusively solicitors' costs
     land  agents'  costs and the  Landlords'  costs after  Completion  Date and
     referable to the matters set out in Clauses 17.2 and 17.3

17.7.1 The Vendor shall  indemnify  the  Purchaser  and the  Purchaser's  Parent
     Company against any claim brought by the Landlord as a result of any breach
     of the Vendor's  obligations as to repair and  decoration  contained in the
     Lease  committed  prior to Completion and the parties hereby agree that the
     state  of  repair  of the  Property  as at the  date  of  Completion  is as
     evidenced by the schedule of condition annexed at Schedule 8 hereof

17.7.2 The  Purchaser's  Parent  Company shall  indemnify the Vendor against any
     claim  brought by the  Landlord  as a result of any breach of the  Vendor's
     obligations as to repair and decoration contained in the Lease committed by
     the Purchaser after  Completion but prior to the date on which the Property
     ceases to be used for the purposes of the  Business or by the  Purchaser as
     set out in Clause 9 as  aforesaid  and the parties  hereby agree that a new
     schedule of condition ("New Schedule of Condition") evidencing the state of
     condition of the Property as at the date the Property ceases to be used for
     the  purposes of the Business or by the  Purchaser  as  aforesaid  shall be
     prepared  and agreed  within 7 days of the date the  Property  ceases to be
     used for the purposes of the Business or by the Purchaser as aforesaid and,
     in default of agreement within those 7 days, the Vendor and the Purchaser's
     Parent  Company shall be entitled to refer the matter for final  settlement
     to a firm of chartered  surveyors  nominated  jointly by the Vendor and the
     Purchaser's  Parent Company or, failing such nomination within 7 days after
     a request by either the Vendor or the Purchaser's Parent Company, nominated
     at the request of either of them by the President of the Royal Institute of
     Chartered Surveyors. In making their determination,  the surveyor shall act
     as  expert  and not  arbitrator,  his  decision  shall (in the  absence  of
     manifest  error) be final and  binding on the  Vendor  and the  Purchaser's
     Parent  Company  and his fees shall be borne and paid by the Vendor and the
     Purchaser's  Parent  Company  in such  proportions  as the  surveyor  shall
     determine.

17.7.3 In the event of a claim being  brought by the Landlord as a result of any
     breach of the Vendor's obligations as to repair and decoration contained in
     the Lease  committed  after the date the Property ceases to be used for the
     purposes  of the  Business or by the  Purchaser  as  aforesaid  the parties
     hereby  agree  that  the  costs of any  such  claim  shall be borne by them
     equally and that in  determining

<PAGE>

     the state of repair of the Property as at the date the  Property  ceases to
     be used for the purposes of the Business the parties  shall make  reference
     to the New Schedule of Condition.

18.  GENERALLY

18.1 Except as required by law no  announcements  of the terms of this Agreement
     shall be made by any party  without  the  consent of the others and pending
     any agreed  announcement  each party shall use its best  endeavours to keep
     the same confidential

18.2 The exercise of or the failure to exercise any right  (including a right of
     rescission) conferred on any party by this Agreement shall not constitute a
     waiver of that or any other right or remedy available to that party

18.3.If any provision of this  Agreement is held by any  competent  authority to
     be  invalid  or  unenforceable  in whole or in part  this  Agreement  shall
     continue to be valid as to its other  provisions  and the  remainder of the
     affected provision

18.4 This  Agreement  shall be  governed by and  construed  in  accordance  with
     English  law  and  the  parties   irrevocably   submit  to  the   exclusive
     jurisdiction  of the English  Courts and waive any objection to proceedings
     in such courts on grounds of venue or on the grounds that  proceedings have
     been brought in an inconvenient forum

18.5 All  obligations  which remain to be performed after the date of Completion
     shall  continue  in full force and effect  notwithstanding  Completion  and
     shall not merge in the assurance to the Purchaser

18.6 This  Agreement  shall be  binding  upon and enure for the  benefit  of the
     successors  of the  parties  but  shall  not be  assignable,  save that the
     Purchaser may at any time assign all or any part of the Assets

18.7 This Agreement,  together with any documents referred to in it, constitutes
     the whole agreement  between the parties relating to its subject matter and
     supersedes and  extinguishes  any prior drafts,  agreements,  undertakings,
     representations,  warranties,  assurances and  arrangements  of any nature,
     whether in writing or oral, relating to such subject matter

18.8 The Purchaser  acknowledges that it has not been induced to enter into this
     Agreement  by any  representation,  warranty,  promise or  assurance by the
     Vendor or any other person save for those contained in this Agreement.  The
     Purchaser  agrees that  (except in respect of fraud) it shall have no right
     or remedy in respect of any representation,  warranty, promise or assurance
     save for those contained in this Agreement

18.9 No variation of this  Agreement  shall be effective  unless made in writing
     and signed by each of the parties

<PAGE>

18.10Each party shall bear its own costs  arising out of or in  connection  with
     the preparation, negotiation and implementation of this Agreement

18.11This Agreement may be executed in any number of  counterparts or duplicates
     each of which  shall be an original  but such  counterparts  or  duplicates
     shall together constitute one and the same agreement.

19.  NOTICES

All  notices to be given  under this  agreement  shall be in writing  and shall
either be delivered  personally or sent by first class or airmail  pre-paid post
or by facsimile  transmission and shall be deemed duly served:  19.1 in the case
of a notice delivered personally, at the time of delivery;

19.2 in the case of a notice sent inland by first class pre-paid post, two clear
     business days after the date of dispatch;

19.3 in the case of a notice sent  overseas by airmail,  7 business  days (being
     business  days in the place to which the  notice is  dispatched)  after the
     date of dispatch; and

19.4 in the case of a facsimile  transmission,  if sent during  normal  business
     hours then at the time of transmission  and if sent outside normal business
     hours then on the next following  business day provided (in each case) that
     a confirmatory cop is sent by first class pre-paid or by hand by the end of
     the next business day.

Each notice shall be addressed to the address of the party  concerned set out in
this  agreement  or to such other  address as that party  shall have  previously
notified to the sender.

(a)  If to Vendor, addressed as follows:

     Eltrax UK Limited
     c/o Ormerods
     Green Dragon House
     64-70 High Street
     Croydon  CRO  9XN

     with a copy to:

<PAGE>

     Sir John Wickerson
     Ormerods
     Green Dragon House
     64-70 High Street
     Croydon CR0 9XN

(b)  If to Purchaser,  addressed as follows:

     AremisSoft Hospitality (UK) Limited
     2 Hazelbank Close
     Petersfield
     Hampshire GU31 4BY

     with copies to:

     Scott Bartel,
     Bartel Eng Linn & Schroder,
     300 Capitol Mall,
     Suite 1100,
     Sacramento,
     California, 95814, U.S.A.

       and

     Paul I Wilson,
     Joelson Wilson & Co.,
     70 New Cavendish Street,
     London, W1G 8AT, U.K.

(c)  if to the Eltrax Guarantor, addressed as follows:

     Verso Technologies, Inc.
     400 Galleria Parkway
     Suite 300
     Atlanta
     GA 30339
     USA

     With a copy to

     William E Sider and Derek S Adolf
     Jaffe, Raitt, Heuer & Weiss, P.C.
     One Woodward Avenue
     Suite 2400
     Detroit
     MI 48226

(d)  if to the Purchaser's Parent Company, addressed as follows:

<PAGE>

     AremisSoft Corporation
     216 Haddon Avenue
     Suite 607
     WNJ 08108
     USA

     With a copy to

     Scott Bartel
     Bartel Eng Linn & Schroder
     300 Capitol Mall
     Suite 1100
     Sacramento
     CA 95814, USA

or to such other  individual  or address as any party hereto may  designate  for
itself following the giving of prior written notice as provided herein

AS WITNESS the hands of the Parties the day and year first above written

<PAGE>

                                   SCHEDULE 1

                                (The Warranties)

1.   THE VENDOR

1.1. The  Vendor  is and will at  Completion  be  entitled  to enter  into  this
     Agreement with the Purchaser and the Vendor has full power and authority to
     sell the Assets to the Purchaser without obtaining the consent of any third
     party and the Vendor is and will at Completion be solvent.

1.2  Compliance with the terms of this Agreement,  and any document entered into
     by the Vendor in accordance with it, does not and will not conflict with or
     result  in a breach of any of the  provisions  of the  Vendor's  Memorandum
     and/or Articles of Association.

1.3  The Vendor has at all times  carried on the  Business  in all  respects  in
     accordance  with its Memorandum  and Articles of  Association  for the time
     being in force and any other documents to which it is or has been a party.

1.4. The Vendor has not disposed of or agreed to dispose of or granted or agreed
     to grant any security or other  encumbrance in respect of any of the Assets
     and the  Vendor  shall  sell the  Assets to the  Purchaser  with full title
     guarantee free from all charges liens and encumbrances

2.   ACCOUNTS

2.1  The Accounts have been prepared in accordance with the  requirements of all
     relevant statutes and generally accepted accounting principles consistently
     applied comply with all current standard statements of accountancy practice
     applicable to a United Kingdom company and show a true and fair view of the
     state of affairs of the Vendor at the  Accounting  Date and the  profits or
     losses for the period ended on such date

2.2  To the extent  required by the  Companies  Act 1985 and the relevant  SSAPs
     proper  provision  or  reserve  has  been  made  in the  Accounts  for  all
     liabilities  and  capital  commitments  of the Company  outstanding  at the
     Accounting  Date  whether  contingent  quantified  disputed  or not and the
     Accounts are not affected by any unusual or  non-recurring  item (as relate
     to the Business)

2.3  For the purposes of the Accounts the  Company's  assets have been valued on
     bases in all  material  respects  consistent  with  those  adopted  for the
     purpose of the audited  accounts of the Company in respect of the beginning
     and end of each of the last  three  preceding  accounting  periods  and the
     bases and policies of accounting of the Company  adopted for the purpose of
     preparing  the  Accounts  are the same as those  adopted for the purpose of
     preparing the audited accounts for such periods

<PAGE>

2.4  The  Management  Accounts have been prepared in accordance  with  generally
     accepted  accounting  principles  and  reflect  a true and fair view of the
     state of affairs of the Business  and truly and fairly  disclose all Assets
     and the Agreed Liabilities of the Business at the date to which they relate
     and apply bases and  policies of  accounting  which have been  consistently
     applied in the Accounts (save that such  Management  Accounts have not been
     audited)  and  there  have  been  no  material   changes  and  no  material
     deterioration  in the  financial  position of the Company since the Balance
     Sheet  Date other  than as  disclosed  in the  Management  Accounts  and no
     extraordinary  items have occurred  during the periods  between the date of
     the  Management  Accounts and  Completion  and that between the date of the
     Management Accounts and Completion the Vendor has carried on and will carry
     on (if this  Agreement is entered into on a date prior to Completion  Date)
     the Business in accordance with all the provisions contained in Clause 7.1.

3.   VENDOR'S BOOKS AND RECORDS
     --------------------------

All of the Vendor's  accounts books ledgers financial and other records of every
kind  relating to the  Business  have been fully and  accurately  maintained  in
accordance with generally accepted accounting  practices and standards and there
are no material inaccuracies or discrepancies of any kind contained or reflected
in them or in any of them in  relation  to its plant  machinery  and other fixed
assets  debtors  creditors  stock-in-trade  work-in-progress  and other  current
assets of the  Business  (including  without  prejudice  to the  generality  the
Assets, the Equipment,  the Debts and the Stock) and liabilities  (including the
Agreed  Liabilities and the Liabilities) in relation to the Business and will be
fully written up to the date of Completion

4.   CONSEQUENCE OF ACQUISITION OF THE BUSINESS BY THE PURCHASER

The acquisition of the Business and/or the Assets by the Purchaser or compliance
with the terms of this Agreement will not:

4.1  (so  far as the  Vendor  is  aware  without  having  made  enquiry  of such
     following  persons)  cause any person who normally  does  business with the
     Business not to continue to do so on the same basis as previously

4.2  relieve any person of any  contractual  obligation  to the  Business or the
     Vendor in respect of the  Business  or enable any person to  determine  any
     such obligation enjoyed by the Business

4.3  give  rise to or cause  to  become  exercisable  any  right of  pre-emption
     relating to the Business or any of the Assets nor

4.4  result  in a  breach  of or  constitute  a  default  under  (i)  the  terms
     conditions  or  provisions of any agreement or instrument or (ii) any order
     judgment or decree of any court or governmental  agency to which the Vendor
     is a party or by which the Vendor is bound in relation to the Business

<PAGE>

     and to the best of the knowledge and belief of the Vendor  (without  having
     made  enquiry of the  customers)  the  relationship  of the  Business  with
     clients customers suppliers and employees will not be adversely affected by
     the execution completion and/or implementation of this Agreement

5.   THE ASSETS

5.1  Ownership of Assets

     5.1.1 the Vendor owns absolutely at Completion all the Assets;

     5.1.2 the Vendor has not agreed to dispose of or granted or agreed to grant
           any security or other encumbrance in respect of any of the Assets.

5.2  Assets sufficient for the Business

     5.2.1 the Assets comprise all assets now used in the Business and which are
           necessary for the continuation of the Business now carried on;

     5.2.2 the stocks  are  sufficient  for  the  normal   requirements  of  the
           Business;

     5.2.3 the work in  progress included  in the stocks is at its normal  level
           having regard to current orders included in the Customer Contracts
           and to orders reasonable anticipated from customers of the Business;

     5.2.4 the stocks of all materials,  packaging  materials and finished goods
           included in the stocks are not excessive and are adequate in relation
           to the current trading requirements of the Business;

5.3  Equipment
     ---------

     5.3.1 Appendix 2 contains full and accurate details of the Equipment;

     5.3.2 the Equipment, Motor Vehicles and other equipment :-

          (a)  are in a proper state of repair and  condition  and  satisfactory
               working order;

          (b)  have been regularly and properly maintained;

          (c)  are  adequate  for and not  surplus  to the  requirements  of the
               business;  and

          (d)  would not be expected  (if the sale of the with in  Business  did
               not take place) to require replacements or additions at a cost in
               excess  of(pound)5,000  within the period of six months after the
               Completion;

5.4  Stock

     5.4.1 the Stock is of  satisfactory  quality and saleable at normal selling
           prices.

<PAGE>

     5.4.2 none  of  the   Stock   is   obsolete,   unusable,   unmarketable  or
           inappropriate  or of limited  nature in relation to the Business  and
           none of the Customer  Contracts  is likely  to  result in this  being
           untrue.

5.5  Document Stamps

     All documents  which in any way effect the right,  title or interest of the
     Vendor in or to any of the  assets and which  attract  stamp duty have been
     duly stamped within the requisite period for stamping.

5.6  None of the Assets is subject to any  option  lien or  encumbrances  or any
     agreement  or  commitment  to give or create any of the  foregoing  and the
     Assets are the sole unencumbered absolute property of the Vendor

5.7  There has been no exercise  purported exercise or claim for any charge lien
     encumbrance  or  equity  over any of the  Assets  and  there is no  dispute
     directly or indirectly relating to any of the Assets

5.8  The Vendor has not  purchased  any of the Assets on terms that  property in
     them does not pass until full payment is made by it to the seller

6.   TRADING

6.1  Business and Financial Position

     6.1.1 since the Accounting Date:-

          (a)  the Business has been  continued in the normal  course as regards
               its nature,  extent and manner of carrying it on;

          (b)  neither the turnover nor the financial or trading business of the
               Business  has  deteriorated;

          (c)  the  Vendor  has not  borrowed  or raised  any money or taken any
               financial  facility in relation  to the  Business  except for the
               overdraft   facilities   from  its  bankers   specified   in  the
               Disclosures;

          (d)  the Vendor has paid the  Creditors of the business in  accordance
               with their respect credit terms and there are no amounts owing by
               the Vendor which have been due for more than six weeks.

     6.1.2 so far as the Vendor is aware the trading  prospects  of the Business
           have  not  been  adversely  effected  as a  result  of  any  event or
           circumstance which has arisen since the Accounting Date;

     6.1.3 since the Accounting  Date the  Vendor  has not done or omitted to do
           anything which might prejudice or affect the Goodwill.

6.2  Existing Suppliers and Customers

     6.2.1 so far as the  Vendor is aware  (not  having  made any  enquiries  in
           respect  of future intentions):-

<PAGE>

          (a)  no supplier of the Business has, in the past three years,  ceased
               or  (as a  result  of the  acquisition  of  the  Business  by the
               Purchaser  or for any other  reason)  will  cease  supplying  the
               Business  or  may  substantially   reduce  its  supplies  to  the
               Business;

          (b)  no  customer  of the  Business  has,  in the  past  three  years,
               terminated  or  materially  reduced,  or will (as a result of the
               acquisition  of the  Business by the  Purchaser  or for any other
               reason) terminate or materially reduce, its relationship with the
               Business.

6.3  Licences and Consents

     6.3.1 the Vendor has obtained all  necessary  licences and consents for the
           proper carrying  on of the  Business  and is not in  breach of any of
           their terms or conditions;

     6.3.2 details of  all of the  licences  and  consents  are  set  out in the
           Disclosures and the Vendor  knows of no reason why they should not be
           capable of being transferred or obtained by the Purchaser without the
           necessity for any special arrangement or expense.

6.4  Insurance

     6.4.1 all the Assets of an  insurable  nature  are and have at all material
           times been insured in amounts  representing  the full  replacement or
           reinstatement  value of them  against  fire and other  risks normally
           insured against by a person carrying on business of the same class as
           the Business;

     6.4.2 all insurances  relating to the Business and the Assets are currently
           in full force and effect and  nothing  has been done or omitted to be
           done which could make any policy of insurance void or voidable;

     6.4.3 subject to any provision in the Management  Accounts the Debts at the
           date hereof  will  realise  their  full  face  value  and be good and
           collectable in the ordinary course of business

6.5  Joint Ventures

     6.5.1 The Vendor

          6.5.1.1.  is not and has not  been a party  to any  joint  venture  or
                    consortium  or  any  partnership  arrangements  or agreement
                    or any agreement  or  arrangement  for sharing  commissions
                    or other  income related to the Business;

<PAGE>

          6.5.1.2   does  not  conduct  and  has not conducted  any  part of the
                    Business through a branch, agency or permanent establishment
                    outside the UK.

6.6  Agreements concerning the Business

     6.6.1 there have been no arrangements  and understandings  (whether legally
           enforceable or not) between the Vendor and any person who is,
           directly or indirectly,  a shareholder or the beneficial owner of any
           interest in the  Vendor  or any  company  in which  the  Vendor  is
           interested relating  to the  management  of the  Business  or  the
           ownership  or transfer of the ownership or the letting of any of the
           Assets or the provision of finance, goods, services or other
           facilities to or by the Vendor or otherwise in any way relating to
           the Business or the Assets.

     6.6.2 the Vendor  has not  been a  party  to any  agency,  distributorship,
           marketing,  purchasing,   manufacturing  or  licensing  agreement  or
           arrangement or any restrictive trade or other agreement or
           arrangement pursuant  to which any part of the  Business  has been
           carried  on or which in any way has  restricted  its freedom to carry
           on the whole or any part of the Business or to use or exploit any of
           the assets in any part of the world in such manner as it thought fit.

     6.6.3 compliance with  the  terms of this  Agreement  does not and will not
           conflict with, result in the breach of or constitute,  or fall within
           any of the terms,  conditions  or  provisions  of  any  agreement  or
           instrument to which the Vendor is now a party.

7.   MATERIAL CONTRACTS

The Vendor is not in  relation to the  Business  and/or the Assets a party to or
subject to any  legally  binding  agreement  transaction  obligation  commitment
arrangement or liability  which is material in terms of the trading or financial
position of the Business which:

7.1  is incapable of complete  performance in accordance with its terms within 6
     months after the date on which it was entered into or undertaken or

7.2  is known by the  Vendor  to have  been  likely  to  result in a loss to the
     Vendor on completion of performance if the Vendor had not sold the Business
     pursuant to this Agreement or

7.3  subject to force majeure could not readily be fulfilled or performed by the
     Vendor on time and without undue or unusual expenditure of money and effort
     if the Business was not sold or

7.4  other  than in  respect of work  carried  out  between  the  exchange  of a
     contract and  completion of that contract is a contract under which payment
     has already

<PAGE>

     been received by the Vendor but which requires the  performance of services
     by the Purchaser after the date of Completion or

7.5  involves or is likely to involve  obligations  restrictions  expenditure or
     receipts  of an  unusual  onerous  or  exceptional  nature  and  not in the
     ordinary course of the Business or

7.6  other than  normal  leasing  agreements  in respect of Motor  Vehicles  and
     office equipment is a lease loan agreement debenture guarantee or indemnity
     or a letter of  credit or a  contract  for hire or rent  hire  purchase  or
     purchase by way of credit sale or periodical payment or

6.7  involves  or is likely to involve  the supply of services by the Vendor the
     aggregate  value of which will  represent  in excess of 10% of the turnover
     for the last accounting period of the Vendor or

7.8  will require the Purchaser to pay any  commission  finder's fees royalty or
     similar payment or

7.9  in any way restricts the Vendor's freedom to carry on the whole or any part
     of the  Business  in any part of the United  Kingdom or  elsewhere  in such
     manner as it thinks fit

8.   THE BUSINESS CONTRACTS

8.1  Disclosure of contracts

     The  Business  Contracts,  the  Computer  Software  Licenses,  the Computer
     Systems  Agreements,   the  Customer  Contracts  and  the  Lease  Contracts
     (together referred to in this clause as "the Contracts") constitute all the
     contracts and other  engagements,  whether written or oral referable to the
     Business to which the Vendor is now a party,  apart from the  contracts  of
     employment  of the  employees and the Lease which is excluded from the sale
     and purchase hereby agreed.

8.2  Nature of contracts

     None of the Contracts:

     8.2.1 is of an unusual, abnormal or onerous nature;

     8.2.2 is for a fixed term of more than six months;

     8.2.3 is of a long term nature (that it is say incapable of  performance in
           accordance  with its terms  within six months after the date which it
           was entered into or undertaken);

     8.2.4 is incapable  of  termination  in  accordance  with its  terms by the
           Purchaser on 60 days' notice or less;

<PAGE>

     8.2.5 is of a loss making nature  (that is to say known to have been likely
           to result in a loss to the Vendor on completion of performance if the
           Vendor had not sold the Business);

     8.2.6 is not  capable  of  being  readily  fulfilled  or  performed  by the
           Purchaser on time without  undue or unusual  expenditure  of money or
           personnel;

     8.2.7 will involve payment by the Purchaser by reference to fluctuations in
           the index of retail prices;

     8.2.8 was entered into in any way  otherwise  than in the normal  course of
           Business.

8.3  The Vendor is not nor (to the best of its  knowledge  and  belief)  will it
     with the lapse of time become:

     8.3.1 in default  under any of the  Contracts  or in  respect  of any other
           obligations or  restrictions  binding  upon  it in  relation  to  the
           Business nor has it waived any rights or privileges under any of
           them;

     8.3.2 in default under any  provisions  existing by reason of membership of
           any association or body relating to the Business;

     8.3.3 liable in respect of any representation  or warranty (whether express
           or implied) or matter giving rise to a duty of care on the part of
           the Vendor relating to the Business.

8.4  No threat or claim of  default  under the  Contracts  and/or the Assets has
     been made and is  outstanding  against  the  Vendor  and  there is  nothing
     whereby any of the  Contracts  may be  terminated or rescinded by any other
     party or whereby the terms of them may be worsened or the  Business  and/or
     the Assets  prejudiced as a result of anything done or omitted or permitted
     to be done by the Vendor

8.5  Neither the Vendor nor any other party to any agreement  with the Vendor is
     in default under such agreement  being a default which would be material in
     the context of the financial or trading  position of the Business or in the
     context  of its  Assets  nor (as far as the  Vendor is aware) are there any
     circumstances likely to give rise to such a default

8.7  Subject to any  provision  in the  Management  Accounts  the Vendor has not
     manufactured  or sold  products  which  were or are or will  become  in any
     material  respect  faulty or defective or which did not or do not comply in
     any material  respect with any warranties or  representations  expressly or
     impliedly  made by the  Vendor  or with  all  applicable  laws  regulations
     standards and requirements

<PAGE>

9.   EMPLOYEES

9.1  Full and accurate  details in all material  respects have been supplied and
     are  annexed  as  Schedule  2 to  this  Agreement  as to  the  Transferring
     Employees'  ages  length  of  service  rates  of  remuneration,  bonus  and
     commission,  benefits in kind, periods of notice,  pension and other rights
     under any retirement  benefits life assurance or hospital  insurance scheme
     of the Vendor. Such details will remain true and accurate at Completion and
     the Vendor is not under any legal or moral commitment to change or vary any
     of such  details  and will  not  prior to  Completion  enter  into any such
     commitment.  The  information  contained in the Second Schedule is true and
     correct  in all  material  respects.  There  are no stock  option  or other
     schemes  either in  operation or proposed  whereby any of the  Transferring
     Employees  is or is to be  entitled  to any  shares  of the  Vendor  or the
     Vendor's Group or to any commission or  remuneration of any sort calculated
     by reference to the turnover  profit or sales of the Vendor or the Vendor's
     Group

9.2  No liability  has been  incurred by the Vendor and not yet been  discharged
     for  breach of any  contract  of service or  employment  or for  redundancy
     payments  (including  protective awards) or for damages or compensation for
     wrongful  dismissal  or unfair  dismissal  or  otherwise  or for failure to
     comply  with  any  order  for   reinstatement   or   re-engagement  of  any
     Transferring  Employee  engaged in connection  with the Business or for the
     actual or proposed  termination or suspension of employment or variation of
     any contract of employment of any present or former director or employee of
     the Vendor employed in connection with the Business

9.3  There are not in existence any  contracts of employment  between the Vendor
     and  any of the  Transferring  Employees  nor  any  consultancy  agreements
     between the Vendor and any of the  Transferring  Employees  which cannot be
     terminated by 3 months' notice or less or (where not reduced in writing) by
     reasonable  notice  without  giving  rise  to  any  claim  for  damages  or
     compensation  (other  than a  statutory  redundancy  payment  or  statutory
     compensation for unfair  dismissal).  The Vendor has not given nor received
     any  notice  to  terminate  any  contract  of  employment  of  any  of  the
     Transferring  Employees or any other person  employed in the Business which
     expires on or after the date of Completion

9.4  The  Vendor  has not  offered  and will not  prior  to  Completion  offer a
     contract of  employment or for services to any person to be employed in the
     Business or as a consultant to the Business

9.5  Since  the  Accounting  Date  no  change  has  been  made  in the  rate  of
     remuneration,  emolument,  pension  benefit or other terms of employment of
     any of the employees.

9.6  No negotiations  for any increase in the remuneration or benefits of any of
     the  employees  are  currently or likely  within a period of 6 months after
     Completion.

<PAGE>

10.  POWERS OF ATTORNEY

The  Vendor  has not given any power of  attorney  or other  authority  (express
implied or ostensible)  which is still outstanding or effective to any person to
enter into any contract or commitment on its behalf in relation to the Business

11.  STATUTORY REQUIREMENTS

11.1 At the date of this  Agreement the Vendor is conducting the Business in all
     material respects in accordance with all applicable laws and regulations

11.2 At the date of this  Agreement  the Vendor is not party to any agreement or
     arrangement  which  infringes or is  registrable  unenforceable  or void or
     which renders the Vendor liable to civil or criminal  proceedings by virtue
     of  any  restrictive   trade   practice,   competition  or  unfair  trading
     legislation which would have a material adverse effect on the Business

12.  LITIGATION

12.1 All  licences  permits  consents  registrations  permission  and  approvals
     required for  carrying on the  Business now being  carried on by the Vendor
     have been obtained and are in full force and effect and all reports returns
     and  information  required by law or as a condition  of any licence  permit
     consent  registration  permission  or  approval  to be made or given to any
     person or authority in connection with the Business have been made or given
     to the  appropriate  person or authority  and so far as the Vendor is aware
     there is no  circumstance  which  indicates that any licence permit consent
     registration  permission  or  approval  is capable of being  revoked or not
     renewed

12.2 The Vendor is not  engaged in any  litigation  or  arbitration  criminal or
     administrative  proceeding whether as plaintiff  defendant or otherwise and
     no such proceedings by or against the Vendor in relation to the Business or
     Assets or in respect of any of its assets has been  threatened or is to the
     best of the Vendor's  knowledge  and belief  pending or expected and to the
     best of the Vendor's  knowledge and belief there is no fact or circumstance
     which could give rise to any such proceedings

12.3 The Vendor is not a party or subject to the  provisions  of any judgment or
     judicial  order or decree  whether or not contested or subject to appeal in
     relation to the Business

12.4 The Vendor has not and to the best of the Vendor's  knowledge and belief is
     not alleged to have  committed  or is alleged to be liable for any criminal
     illegal unlawful ultra vires or statutory duty

13.  INTELLECTUAL PROPERTY

13.1 The Vendor is the beneficial  owner,  registered  proprietor or Licensee of
     the

<PAGE>

     Intellectual Property Rights.

13.2 To the best of the Vendor's knowledge,  information and belief, each of the
     Intellectual  Property  Rights is valid and enforceable and no act has been
     done or omitted  whereby  any of them  ceased or might cease to be valid or
     enforceable.

13.3 The Business does not and is not likely to infringe any patent,  registered
     design,  trademark,  copyright or other intellectual  property right of any
     other  person  (or would not do so if the same were  valid) or give rise to
     any liability to pay compensation pursuant to the Patents Act 1977 sections
     40 and 41.

13.4 The  Vendor  does not  require  and has not been  granted  any  licence  in
     relation to any Intellectual Property.

13.5 No right has been granted to any person to do anything which would or might
     otherwise infringe any of the Intellectual Property Rights.

13.6 The Vendor has not (except in the normal  course of Business)  disclosed or
     permitted  to be  disclosed  or  undertaken  or arranged to disclose to any
     person  other  than  the  Purchaser  any of its  know-how,  trade  secrets,
     confidential  information,  price lists or lists of  customers or suppliers
     relating to the Business.

14.  PROPERTY

14.1 Encumbrances:-

     14.1.1 save as specifically  stated in Schedule 5 the Property is free from
            any mortgage, debenture, charge, lien or other encumbrance;

     14.1.2 the  Property is not subject to any  outgoings  other than  business
            rates, water rates and insurance premiums, rent and service charge;

     14.1.3 the  Property  is  not  subject  to  any   restrictive   covenants,
            restrictions, stipulations, easements, profits a prendre, wayleaves,
            licences, grants or reservations or other similar rights vested in
            the third parties;

     14.1.4 where any of the third party  rights  referred  to in clause  14.1.3
            have been disclosed in the disclosures, they have been fully
            observed and performed and any payments in respect of them due and
            payable have been duly paid.

14.2 Planning matters:-

     14.2.1 the use of the  Property  for the  purposes  of the  Business is the
            permitted use for the purposes of the Planning Acts;

<PAGE>

     14.2.2  planning  permission  has been  obtained  or is deemed to have been
            granted for the purposes of the  Planning  Acts with  respect to the
            development  of the Property, no  permission  has been  suspended or
            called in and no application for  planning  permission  is  awaiting
            decision;

     14.2.3 building  regulation consents have been obtained with respect to the
            development of the Property and any  alterations  and  improvements
            to it;

     14.2.4 the Vendor has complied  with and is still  complying in all respect
            with:-

          14.2.4.1 planning permissions, orders and regulations issued under the
                   Planning Acts and building  regulation  consents and bye laws
                   for the time being in force with respect to the Property; and

          14.2.4.2 all agreements  under the Town and Country  Planning Act 1971
                   Section 52 or under the Highways Act 1980 Section 38 all
                   planning obligations  undertaken  under the Town and Country
                   Planning Act 1990 Section 106 made in respect of the
                   Property.

     14.2.5 the  Property  is  not  listed  as  being  of  special,  historical,
            architectural importance or is located in a conservation area.

     14.2.6 all  claims and  liabilities  under the  Planning  Acts or any other
            legislation have been discharged and no claim or liability,
            contingent or otherwise is outstanding.

14.3 Statutory obligations

     14.3.1 the Vendor has complied  with and is complying  with all  applicable
            statutory and bye law requirements with respect to the Property.

     14.3.2 there is no outstanding and unobserved or unperformed  obligation in
            respect of the Property necessary  to comply  with the  requirements
            whether formal or informal, competent authority exercising statutory
            or delegated powers.

14.4 Adverse orders

     14.4.1 there are no  compulsory  purchase  notices,  orders or  resolutions
            affecting the Property and there are no circumstances likely to lead
            to any being made.
 <PAGE>

     14.4.2 there are no closing,  demolition  or clearance  order,  enforcement
            notices or stop notices  affecting  the  Property  and  there are no
            circumstances likely to lead to any being made.

14.5 Leasehold Property:-

     14.5.1 the  Vendor  has  paid  the  rent and  observed  and  performed  the
            covenants on the part of the Tenant and the conditions  contained in
            the Lease and the last demand (or  receipt for rent if  issued)  was
            unqualified

     14.5.2 all licences  consents and approvals  required from the Landlord and
            any superior Landlord  under the Lease  have been  obtained  and the
            covenants on the  part  of the  Tenant  contained  in the  licences,
            consents and approvals have been duly performed and observed

     14.5.3 there are no rent reviews  under the Lease or any superior  lease in
            progress.

     14.5.4 there is no outstanding and unobserved or unperformed any obligation
            necessary to comply with any notice or other requirements given by
            the Landlord  or any  superior  landlord  under the Lease or any
            superior lease.

     14.5.5 there is no obligation to reinstatement of the leasehold Property by
            removing or dismantling any alteration  made to it by the Vendor and
            any predecessor entitled to the Vendor.

15.  GUARANTEES AND WARRANTIES

The  Vendor  has not given  any  guarantee  indemnity  or  warranty  or made any
representation  in respect of any  products  or  services  sold or  supplied  or
contracted to be sold or supplied by it or in respect of any other aspect of the
Business save for any guarantee  indemnity or warranty  implied by law and (save
as aforesaid)  has not accepted any  liability or  obligation to service  repair
maintain take back or otherwise do or not do anything in respect of any products
or  services  that would apply  after any such  products  or services  have been
delivered or supplied by it in connection with the Business

16.  MATERIAL INFORMATION

16.1 To the best of the Vendor's knowledge information and belief there is:

     16.1.1 no fact or matter  material to the value of the Assets or materially
            affecting the aggregate value of such Assets and

     16.1.2 no fact or matter  materially  affecting the trading of the Business
            which has not been disclosed to the Purchaser and the  disclosure of
            which might  reasonably   be  expected   materially  to  affect  the
            willingness of the Purchaser to purchase such Assets at the
            aggregate price or the terms

<PAGE>

            upon which the purchase is made(on the basis that the Purchaser will
            use such Assets for the purpose of carrying on the Business  and for
            the purposes of Clause 16.1 the aggregate  of any claims  under this
            warranty which total less than (pound)5,000  shall not be considered
            material

16.2 The  information  contained  in the  recitals  and  the  schedules  to this
     Agreement and the  Disclosure  Letter and all other  information in writing
     given by the Vendor and or the Vendor's  Solicitors in the responses to the
     questionnaire  submitted  by  the  Purchaser's  Solicitors  (including  the
     annotations by the Vendor on such  questionnaire)  and the responses by the
     Vendor's  Solicitors to the Purchaser's  Solicitors  property enquiries was
     when  given  is at the  date  hereof  and will at  Completion  remain  true
     complete  and  accurate  in all  material  respects  and to the best of its
     knowledge  and  belief the Vendor is not aware of any fact or matter not in
     the public  domain in  relation  to the  Business  which  renders  any such
     information untrue incomplete inaccurate or misleading

<PAGE>

                                   SCHEDULE 2

                                     PART 1

                            (Transferring Employees)

                             See attached documents

                                     PART 2

                          (Excluded Employees (if any))

                                      None

<PAGE>

                                   SCHEDULE 3

                              (Agreed Liabilities)

                               (See attached list)

<PAGE>

                                   SCHEDULE 4
                                   ----------

                                     (Debts)

                               (See attached list)

<PAGE>

                                   SCHEDULE 5
                                   ----------

                                 (The Property)

Leasehold interest in Suite 2, Metropolitan  House,  38-40 High Street,  Croydon
under Lease dated 25 November 1987

<PAGE>

                                   SCHEDULE 6
                                   ----------

                                 (Consideration)

The Goodwill:                         (pound)

The Business Contracts:               (pound)

The Equipment

The Computer Software Licences        (pound)

The Stock

The Intellectual Property Rights      (pound)

The Computer Systems and the
Computer Systems Agreements           (pound)

The Motor Vehicles                    (pound)

Cash                                  (pound)                 See Clause 11

           The parties have agreed not to apportion the Consideration

<PAGE>

                                   SCHEDULE 7

The  Financial  liability of the Vendor in relation to the  Warranties  shall be
governed by the terms of the Head Agreement.

<PAGE>

                                   SCHEDULE 8

                      (Schedule of Condition to be annexed)

<PAGE>

EXECUTED by                          )
for and on behalf of ELTRAX UK       )
LIMITED in the presence              )
of:-                                 )

EXECUTED by                          )
for and on behalf of                 )
AREMISSOFT HOSPITALITY               )
(UK) LIMITED in the presence of:-    )

EXECUTED by                          )
for and on behalf of VERSO           )
TECHNOLOGIES, INC. (formerly Eltrax  )
Systems, Inc.) in the presence of:-  )

EXECUTED by                          )
For and on behalf of AREMISSOFT      )
CORPORATION. in the presence of:-    )

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