Document:

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                CHANGEPOINT - ARTEMIS INTERNATIONAL JOINT VENTURE

                           MEMORANDUM OF UNDERSTANDING

1.       PURPOSE AND OVERVIEW:      Artemis  International  Germany Gmbh ("AI")
                                    and Changepoint  Europe Ltd.  ("CPE")
                                    intend to create a  corporate  joint
                                    venture  in  Germany,  Changepoint  Germany
                                    Gmbh("CPG").

                                    CPG's objective is to become the leading
                                    centre of excellence in the provision of
                                    Professional Services Automation solutions
                                    (the "Changepoint Products") and related
                                    services in the German speaking regions of
                                    the Euro zone.

                                    The objective will be achieved through CPG
                                    becoming the exclusive marketing
                                    representative of the Changepoint Products
                                    in Germany and the other German speaking
                                    regions of Europe (the "Territory"). CPG
                                    will provide consulting, sales support,
                                    implementation and integration services,
                                    pre-sales support, first and second-line
                                    software support and maintenance services,
                                    and the coordination of the translation of
                                    Changepoint products into the German
                                    language.

                                    The development and launch of a
                                    myChangepoint service and an ASP service
                                    offering access to Changepoint products in
                                    the Territory is also an objective of CPG,
                                    however the timing of the development of
                                    these services has not been determined and
                                    the financial terms governing their offering
                                    may differ from those set out herein.
2.       SHARE OWNERSHIP AND
         INITIAL CAPITALIZATION:    CPE will own 60% and AI will
                                    own 40% of the issued and outstanding shares
                                    in the capital of CPG and the initial
                                    capitalization costs of CPG will be shared
                                    by the parties in the same ratio as their
                                    ownership of shares.

3.       START-UP COSTS:            The start-up costs, beginning on the
                                    effective date of the Shareholder Agreement,
                                    related to the joint venture will be shared
                                    by the parties in the same ratio as their
                                    ownership of shares. The parties will each
                                    be responsible for their respective legal
                                    and other professional fees (e.g., tax
                                    advisors).

4.       GOVERNANCE:                The parties will enter into a shareholder
                                    agreement to provide for the conduct of the
                                    business of CPG, to provide for the transfer
                                    and ownership of shares in the capital of
                                    CPG and to govern the relationship between
                                    the parties. The shareholder agreement will
                                    address the issue of termination of the
                                    joint venture.

                                    The board of directors will be responsible
                                    for the overall management of CPG. The
                                    initial board of directors will include 2

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                                      - 2 -

                                    representatives of CPE and 1 representative
                                    of AI. The board of directors will determine
                                    the size and frequency of dividend payments
                                    to shareholders and will consider the
                                    retained earnings proposals submitted by
                                    management

                                    The parties will agree upon a list of
                                    corporate actions that require the approval
                                    of the board of directors, including:

                                    -  All financing by debt or equity;

                                    -  Changes to the capital structure of CPG;

                                    -  Changes in the financial year;

                                    -  Non-arm's length dealings;

                                    -  Approval of the annual budget;

                                    -  Expenditures in excess of relevant
                                       budgets;

                                    -  Changes in senior management.

5.       MANAGEMENT:                AI will appoint the majority of the initial
                                    officers of CPG from its ranks.. The
                                    officers of CPG will be responsible for
                                    day-to-day operations.

                                    The officers of CPG will prepare in June of
                                    each year for the following two years a
                                    strategic plan and budget (including
                                    revenue, expense and profit forecasts) for
                                    the approval of a majority of the board of
                                    directors

                                    The officers of CPG will from time to time
                                    submit proposals to the board of directors
                                    regarding the suggested level of retained
                                    earnings to promote the growth of the joint
                                    venture.

                                    All employees and officers of CPG will sign
                                    Changepoint standard confidentiality,
                                    non-competition and intellectual property
                                    agreement.

6.       INITIAL BUDGET             The initial business plan and budget for CPG
                                    is attached as Appendix A.

7.       EXPENSES:                  CPG will not incur or commit to expenses
                                    other than as contemplated in the budget
                                    described in clause 5, without requisite
                                    board approval.

8.       PUT AND CALL OPTIONS       1. Subject to the conditions below:

                                      i)  Changepoint Europe (CPE) may at its
                                          option exercise its CALL option to
                                          buy the 40% of Changepoint Germany
                                          (CPG) it does not currently own.

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                                      - 3 -

                                     ii)  Artemis International (AI) may at its
                                          option exercise its PUT option,
                                          requiring CPE to purchase the 40% of
                                          CPG it does not currently own.

                                    2.  Conditions:

                                      a)  Either party will provide the other 3
                                          months  notice of their  intention
                                          to exercise either a PUT or a CALL

                                      b)  The price of the PUT and CALL
                                          options will be determined by
                                          applying the following formula:

                                    CPG Revenue

                                    Divided by:

                                    Consolidated CPNT Corp Revenue

                                    Times:

                                    Value of CPNT

                                    Times:

                                    Percentage Ownership

                                    Times:

                                    Discount for PUT or CALL

                                                  Where:

                                    -     CPG REVENUE is the revenue (from
                                          license sales, maintenance and
                                          consulting) from Changepoint Germany
                                          in the previous 3 months.

                                    -     CONSOLIDATED CPNT CORP REVENUE is the
                                          GAAP revenue recognized by
                                          Changepoint Corporation from
                                          operations in the  previous 3 months.
                                          The

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                                      - 4 -

                                          revenue from CPG is consolidated at
                                          the rate of 60% of CPG REVENUE

                                    -     VALUE OF CPNT is the Stock Price
                                          multiplied by the number of
                                          outstanding shares.  The Stock Price
                                          will be the lesser of the average
                                          trading price of CPNT over the
                                          previous 3 months and the price of
                                          CPNT at the date of exercising the
                                          option.  If CPNT is not publicly
                                          traded than the value of CPNT will be
                                          determined by an independent third
                                          party valuator agreeable to both AI
                                          and CPE.  CPE will pay for the
                                          services of the valuator.

                                    -     PERCENTAGE OWNERSHIP is the portion of
                                          CPG owned by AI (ie 40%)

                                    -     DISCOUNT FOR PUT OR CALL is:  20% for
                                          CALL and 60% for PUT during the first
                                          24 months of the Shareholder Agreement
                                          and 50% thereafter.

                                    c)    During the first 18 months
                                          following the effective
                                          date of the Shareholder
                                          Agreement, the value of
                                          the CALL option will be
                                          the greater of the formula
                                          in a) above and the
                                          appropriate value from the
                                          following table:

                                          Months of Operation
                                                 Value

                                          From month 1 to month 6 inclusive
                                                 $600,000

                                          From month 7 to month 12 inclusive
                                                 $1,200,000

                                          From month 13 to month 18 inclusive
                                                 $1,800,000

                                    d)    If the profitability of CPG measured
                                          on a cumulative year to date basis
                                          from the beginning of CPG's budget
                                          year is not:

                                          i.  equal to or greater than the
                                              board approved budget or

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                                      - 5 -

                                          ii.  above 10%

                                          then the value of the PUT option
                                          will be equal to any loses incurred
                                          by AI in CPG from the effective
                                          date of the Shareholder Agreement

                                    e)    If all or substantially all of the
                                          shares of Changepoint Corp are
                                          acquired by a third party, AI will
                                          have the right to execute a PUT at
                                          the same value as the Changepoint
                                          CALL.

                                    f)    Changepoint will have the right to
                                          exercise a CALL by repaying AI any
                                          loses AI has incurred in CPG from
                                          the effective date of the Shareholder
                                          Agreement, if during the first 24
                                          months following the effective date
                                          of the Shareholder Agreement

                                               the management shareholdings in
                                               AI are reduced below 50% by a
                                               sale to any other third party
                                               than Artemis Management.Systems
                                               or its shareholders.

                                          iii) At its option, Changepoint will
                                               have the right to pay amounts
                                               owning AI from the exercise of
                                               the PUT or CALL options in cash
                                               or shares, if those shares are
                                               liquid, in Changepoint.

                                    3.    AI will provide CPE with pre-emption
                                          rights and rights of first refusal
                                          prior to sale to a third party
9.       NON-COMPETE FOLLOWING
         TERMINATION                AI will refrain from competing directly with
                                    the business of CPE or for two years from
                                    the date that either CPG is dissolved or CPE
                                    purchases AI's shares in CPG.

10.      DISTRIBUTION AGREEMENT:    Changepoint will appoint CPG as the
                                    exclusive distributor of Changepoint
                                    products in the Territory. CPG will sign a
                                    CPE distributor agreement which will provide
                                    for the terms of distribution, including:

                                    1.    End user contracts:

                                          CPG will contract directly with end
                                          users in the Territory using a
                                          contract form that is acceptable
                                          to CPE.

                                    2.    Revenue share:

                                          CPG will pay CPE a 40% share of the
                                          license revenue, net of delivery
                                          charges, taxes, and returns from
                                          licenses for Changepoint products to
                                          end users in the Territory.

                                    3.    Support and maintenance:

                                          CPG will contract directly with end
                                          users in the Territory for the

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                                          provision of software support and
                                          maintenance. CPG will provide first
                                          and second level support and CPE will
                                          provide third level support through
                                          CPG for Changepoint products licensed
                                          to end users in the Territory. Support
                                          and maintenance revenue will be split
                                          60% for CPG and 40% for CPE.

                                    4.    Master distributor:

                                          CPG will have the right to appoint
                                          sub-distributors in the Territory. CPG
                                          agrees to cooperate in good faith with
                                          CPE if CPE signs a distribution
                                          agreement with a distributor outside
                                          the territory allowing them to
                                          distribute in the territory. This
                                          cooperation will include the right to
                                          sign a single distribution agreement
                                          with the out of territory distributor.
                                          (Revenue recognition rules to be
                                          defined in the latter case)

                                          Training

                                          g)  CPG will train its sales staff to
                                              sell Changepoint products.

                                          h)  CPG will train its technical
                                              staff to provide technical
                                              sales support (i.e. ability to
                                              conduct demonstrations and
                                              develop a business case based on
                                              the Changepoint Return of
                                              Investment methodology)

                                          i)   CPE will provide training to CPG
                                               staff. CPG will be responsible
                                               for Travel and Expenses of
                                               CPE staff.

                                          j)   CPE will provide implementation
                                               assistance to CPG for the first
                                               three engagements at twenty (20)
                                               percent discount to its standard
                                               services rates as part of the
                                               initial ramp up of the CPE
                                               services group. The expectation
                                               is that CPE staff would lead
                                               the first engagement; CPG staff
                                               would take the lead on the two
                                               subsequent opportunities with CPE
                                               shadowing and supporting the
                                               latter two implementations.

                                    5.    Reporting

                                          CPG will provide a monthly report of
                                          activity and opportunities in a format
                                          to be mutually agreed upon.

                                    6.    Demonstration Software and Hardware

                                          Changepoint will provide CPG with
                                          copies of Changepoint products for
                                          demonstration purposes.

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                                      - 7 -

7.       CONSULTING SERVICES        CPG will provide consulting services to end
                                    users in the territory and will keep 100% of
                                    the consulting revenue.

                                    On request, CPG may also provide consulting
                                    services to end users outside the Territory
                                    and, in this case, the consulting revenue
                                    will be split 80% to CPG and 20% to the
                                    appropriate Changepoint operation. If, at
                                    CPG's request, another Changepoint operation
                                    provides consulting services to end users in
                                    the territory, the consulting revenue will
                                    be split 80% to the Changepoint affiliate
                                    and 20% to CPG.

8.       LOCALIZATION               CPE will develop a German language version
                                    of the Changepoint products for sale in the
                                    Territory. CPG will provide assistance, at
                                    no charge, as required. This assistance will
                                    include co-ordination with in-Territory
                                    organizations that provide translation
                                    services and QA reviews.
9.       NEW PRODUCTS,
         TRADEMARKS, TRADE
         NAMES AND LOGOS:           CPG will not, without CPE's consent,
                                    develop, market, license, sell or otherwise
                                    commercialize any product provided by or
                                    based on a product from any third party
                                    that would compete with the products
                                    marketed from time to time by CPE.

                                    Subject to the terms herein, CPG will have
                                    an exclusive license to use the CPE
                                    trademarks, trade names and logos in the
                                    Territory. CPG will be subject to CPE's
                                    trademark and logo policy as provided from
                                    time to time.

                                    All (a) marketing and advertising materials,
                                    (b) website (initial and revisions), and (c)
                                    sales and marketing collateral will be
                                    provided to CPE by CPG for approval by CPE
                                    prior to any use by CPG.

10.      GENERAL:                   The terms of the Joint Venture will be
                                    formalized in agreements to be drafted by
                                    counsel and will be subject to tax advice.

                                    All announcements to third parties
                                    (including public announcements) about the
                                    joint venture require the prior written
                                    approval of both parties.

11.      TIMING:                    Upon execution of this term sheet, the
                                    parties will take the necessary steps to
                                    create the joint venture as soon as
                                    possible.

12.      NON-BINDING TERM SHEET:    This term sheet summarizes the parties'
                                    intentions regarding the joint venture. This
                                    term sheet is not binding on either party.

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                                      - 8 -

13.      CONFIDENTIALITY:           The parties agree to keep the contents of
                                    this term sheet and the discussions about
                                    the joint venture confidential and neither
                                    party will disclose any information about
                                    the joint venture to a third party, other
                                    than legal and tax advisors, without the
                                    prior written consent of the other party.
                                    Notwithstanding that the term sheet is not
                                    binding, the confidentiality obligations in
                                    this section are intended to be legally
                                    binding.

<TABLE>
<S>                                                           <C>
ARTEMIS INTERNATIONAL GERMANY GMBH.                           CHANGEPOINT EUROPE LTD.

Accepted and agreed to                                        Accepted and agreed to

this _____________ day of ______________, 2000.               this _____________ day of ____________, 2000.

By: __________________________                                By: __________________________

Name:  _______________________                                Name:  _______________________

Title:  ______________________                                Title:  ______________________

</TABLE><PAGE>

                                  SCHEDULE "B"

                  THIS AMALGAMATION AGREEMENT entered into as of the day of
                  August, 2000.

AMONG:

                  1359288 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1359288")

                                                               OF THE FIRST PART
                                     - and -

                  1359290 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1359290")
                                                              OF THE SECOND PART
                                     - and -

                  1359292 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1359292")

                                                               OF THE THIRD PART

                                     - and -

                  1359293 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1359293")

                                                              OF THE FOURTH PART

                                     - and -

                  1403721 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1403721")

                                                               OF THE FIFTH PART

                                     - and -

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                                                                          Page 2

                  1403627 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1403627")

                                                               OF THE SIXTH PART
                                     - and -

                  1403626 ONTARIO LIMITED,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "1403626")

                                                             OF THE SEVENTH PART
                                     - and -

                  XDL CHANGEPOINT HOLDINGS INC.,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "XDL")

                                                              OF THE EIGHTH PART
                                     - and -

                  CHANGEPOINT CORPORATION,

                  a corporation incorporated under the laws of Ontario

                  (hereinafter called "Changepoint")

                                                               OF THE NINTH PART

                  WHEREAS all of 1359288, 1359290, 1359292, 1359293, 1403721,
1403627, 1403626, XDL and Changepoint are corporations to which the Business
Corporations Act (Ontario) applies;

         AND WHEREAS 1359288 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which -Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS 1359290 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which - Class A shares and - common shares are issued and
outstanding;

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                                                                          Page 3

         AND WHEREAS 1359292 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares, of which - Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS 1359293 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which - Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS 1403721 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which - Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS 1403627 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which - Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS 1403626 is authorized to issue an unlimited number of Class
A shares, an unlimited number of Class B shares and an unlimited number of
common shares of which - Class A shares and - common shares are issued and
outstanding;

         AND WHEREAS XDL is authorized to issue an unlimited number of
[preference] and common shares, of which [- preference] shares and 3,150 common
shares are issued and outstanding;

         AND WHEREAS Changepoint is authorized to issue 5,983,962 Class A
Preferred Shares, an unlimited number of Class B Preference Shares and an
unlimited number of common shares, of which 5,983,962 Class A Preferred Shares,
2,873,696 Class B Preferred Shares and 10,197,108 common shares are issued and
outstanding;

         AND WHEREAS the parties hereto, acting under the authority contained in
the Business Corporations Act (Ontario), have agreed to amalgamate upon the
terms and conditions set out hereunder.

         NOW THEREFORE THIS AGREEMENT WITNESSETH as follows:

1.       DEFINITIONS

                  In this agreement:

         (a)      "Amalgamating   Corporations"  means  1359288,   1359290,
         1359292,  1359293,  1403721,  1403627, 1403626, XDL and Changepoint;

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                                                                          Page 4

         (b)      "Amalgamation Agreement" or "Agreement" means this
                  amalgamation agreement;

         (c)      "Act" means the Business Corporations Act (Ontario);

         (d)      "Corporation"  means  the  corporation  continuing  from  the
                  amalgamation  of the  Amalgamating Corporations;

         (e)      "Effective Time" means 4:00 p.m. on the Effective Date; and

         (f)      "Effective Date" means the date set out on the certificate
                  endorsed by the Director appointed under the Act on the
                  articles of amalgamation giving effect to the amalgamation
                  herein provided for.

2.       AGREEMENT TO AMALGAMATE

                  The Amalgamating Corporations do hereby agree to amalgamate on
the Effective Date under the provisions of the Act and to continue as one
corporation upon the terms and conditions herein set out.

3.       NAME OF CORPORATION

                  The name of the Corporation shall be CHANGEPOINT CORPORATION.

4.       REGISTERED OFFICE

                  The registered office of the Corporation shall be in the
Regional Municipality of York, in the Province of Ontario. The address of the
registered office of the Corporation shall be 1595 Sixteenth Avenue, Suite 702,
Richmond Hill, Ontario L4B 3N9.

5.       RESTRICTIONS

                  There shall be no restrictions on the business which the
Corporation is authorized to carry on or the powers the Corporation may
exercise.

6.       AUTHORIZED CAPITAL

                  The classes and any maximum  number of shares that the
Corporation is authorized to issue are as follows:

                  an unlimited  number of shares  designated as Blank Cheque
                  Preference  Shares issuable in one or more series; and

                  an unlimited number of Common Shares.

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                                                                          Page 5

7.       RIGHTS ATTACHING TO SHARES

                  The Blank Cheque Preference Shares and Common Shares of the
Corporation shall have attached thereto the following rights, privileges,
restrictions and conditions:

BLANK CHEQUE PREFERENCE SHARES

PREFERENCE SHARES ISSUABLE IN SERIES

1.       ONE OR MORE  SERIES - The  preference  shares  may at any time and from
         time to time be  issued in one or more series.

2.       TERMS OF EACH SERIES - Subject to the Act, the directors  may fix,
         before the issue thereof, the number of preference shares of each
         series, the designation, rights, privileges, restrictions and
         conditions attaching to the preference shares of each series,
         including, without limitation, any voting rights, any right to receive
         dividends (which may be cumulative or non-cumulative and variable or
         fixed) or the means of determining such dividends, the dates of payment
         thereof, any terms and conditions of redemption or purchase, any
         conversion rights, and any rights on the liquidation, dissolution or
         winding-up of the Corporation, any sinking fund or other provisions,
         the whole to be subject to the issue of a certificate of amendment
         setting forth the designation, rights, privileges, restrictions and
         conditions attaching to the preference hares of the series.

3.       RANKING OF PREFERENCE SHARES - The  preference  shares of each series
         shall, with respect to the payment of dividends and the distribution of
         assets in the event of the liquidation, dissolution or winding-up of
         the Corporation, whether voluntary or involuntary, rank on a parity
         with the preference shares of every other series and be entitled to
         preference over the common shares. If any amount of cumulative
         dividends (whether or not declared) or declared non-cumulative
         dividends or any amount payable on any such distribution of assets
         constituting a return of capital in respect of the preference shares of
         any series is not paid in full, the preference shares of such series
         shall participate ratably with the preference shares of every other
         series in respect of all such dividends and amounts.

COMMON SHARES

1. DIVIDENDS. If in any fiscal year after providing for the full dividend on the
Blank Cheque Preference Shares and any other class of shares ranking above the
Common Shares, there shall remain any moneys of the Corporation properly
applicable to the payment of dividends, such moneys may, in the discretion of
the directors be applied to dividends on the Common Shares as and when declared
by the directors.

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                                                                          Page 6

2. LIQUIDATION, DISSOLUTION & WINDING-UP. In the event of the liquidation,
dissolution or winding-up of the Corporation, whether voluntary or involuntary,
the holders of the Common shares shall be entitled to receive, after payment to
the holders of the Blank Cheque Preference Shares and any other class of shares
ranking above the Common Shares, the remaining property of the Corporation.

3. VOTING RIGHTS. The holders of the Common Shares shall be entitled to receive
notice of and to attend and vote at all meetings of the shareholders of the
Corporation (except where the holders of another class of shares are entitled to
vote separately as a class as provided in the Business Corporations Act or these
Articles) and each Common Share shall confer the right to 1 vote in person or by
proxy at all meetings of shareholders of the Corporation.

8.       DIRECTORS

         The minimum and maximum number of directors of the Corporation shall,
until changed in accordance with the Act, be a minimum of 1 and a maximum of 12.
Until otherwise determined, the number of directors of the Corporation shall be
fixed at 7 persons and, except as otherwise provided in this Agreement,
hereafter the board of directors of the Corporation shall have full power and
authority to determine by ordinary resolution the precise number of directors of
the Corporation within the aforesaid minimum and maximum numbers. The first
directors of the Corporation shall be the following:

<TABLE>
<CAPTION>

Name                    Residential Address            Resident Canadian
----                    -------------------            -----------------
<S>                     <C>                            <C>

Gerald William Smith    1169 Secretariate Road         Yes
                        Newmarket, Ontario
                        L3X 1M5

A. David Ferguson       231 Grenview Boulevard South   Yes
                        Etobicoke, Ontario
                        M8Y 3V2

Ian Giffen              5 Orchard Street               Yes
                        Markham, Ontario
                        L3P 2S9

Bernard Goldsmith       16 Avenue of Two Rivers        No
                        South Rumson, New Jersey
                        USA    07760

David C. Wetmore        530 Walker Road                No
                        Great Falls, Virginia

<PAGE>
                                                                          Page 7

                                    USA    22066

Bob Sywolski            100 Anchor Drive, #376         No
                        Key Largo, Florida
                        USA    33037

Howard Gwin             101 Babypoint Road             Yes
                        Toronto, Ontario
                        M6S 2G3
</TABLE>

The said first directors shall hold office until the first annual meeting of
shareholders of the Corporation or until their successors are elected or
appointed, subject to the Corporation's by-laws.

9.       BY-LAWS

                  The by-laws of Changepoint shall be the by-laws of the
Corporation and a copy of the by-laws may be examined at the address of the
registered office of the Corporation at any time during regular business hours.

10.      SURRENDER OF SHARE CERTIFICATES

                  After the Effective Date, the shareholders of the Amalgamating
Corporations shall, when requested by the Corporation, surrender for
cancellation the certificates representing the shares held by them in the
Amalgamating Corporations and shall be entitled to receive certificates for
shares of the Corporation as herein provided. After the Effective Time,
certificates formerly representing the shares of the Amalgamating Corporations
shall represent only the right to receive certificates representing the shares
of the Corporation into which such shares of the Amalgamating Corporation have
been converted in accordance with paragraph 11 of this Agreement, together with
any dividends paid or distributions made in respect thereof and any interest
accrued on such dividends and distributions.

11.      CONVERSION OF SHARES

                  The issued and outstanding shares in the capital of the
Amalgamating Corporations shall be converted at the Effective Time into issued
and outstanding shares of the Corporation as follows:

         (a)      the 205,011 issued and outstanding Class A shares of 1359288
                  held by The Paul Lupinacci Family Trust shall be converted
                  into 68,510 common shares of the Corporation;

         (b)      the 8,255 issued and outstanding common shares of 1359288 held
                  by Paul Lupinacci shall be converted into 2,759 common shares
                  of the Corporation;

<PAGE>
                                                                          Page 8

         (c)      the - issued and outstanding - shares of 1359288 held by
                  Envision Management Services Inc. shall be converted into
                  865,466 common shares of the Corporation;

         (d)      the 728,155 issued and outstanding Class A shares of 1359290
                  held by The Gerry Smith Family Trust shall be converted into
                  82,759 common shares of the Corporation;

         (e)      the 100,000 issued and outstanding Class A shares of 1359290
                  held by UI Design Inc. shall be converted into 11,362 common
                  shares of the Corporation;

         (f)      the 124 issued and outstanding common shares of 1359290 held
                  by UI Design Inc. shall be converted into 2,693,634 common
                  shares of the Corporation;

         (g)      the 2,015,960 issued and outstanding Class A shares of 1359292
                  held by The Paul Edwards Family Trust shall be converted into
                  55,724 common shares of the Corporation;

         (h)      the - issued and outstanding - shares of 1359292 held by
                  Fenwick Design Limited shall be converted into 1,840,949
                  common shares of the Corporation;

         (i)      the 205,011 issued and outstanding Class A shares of 1359293
                  held by The Randy Remme Family Trust shall be converted into
                  68,510 common shares of the Corporation;

         (j)      the - issued and outstanding - shares of 1359293 held by
                  Internet Expressions Inc. shall be converted into 833,531
                  common shares of the Corporation;

         (k)      the - issued and outstanding - shares of 1403721 held by The
                  Moreau Family Trust shall be converted into 33,500 common
                  shares of the Corporation;

         (l)      the - issued and outstanding - shares of 1403721 held by The
                  Moreau Family Trust No. II shall be converted into - common
                  shares of the Corporation;

         (m)      the - issued and outstanding - shares of 1403721 held by Rick
                  Moreau shall be converted into 11,856 common shares of the
                  Corporation;

         (n)      the - issued and outstanding - shares of 1403627 held by The
                  Rusch Family Trust shall be converted into 17,170 common
                  shares of the Corporation;

         (o)      the - issued and outstanding - shares of 1403627 held by The
                  Rusch Family Trust No. II shall be converted into 44,458
                  common shares of the Corporation;

         (p)      the - issued and outstanding - shares of 1403627 held by Chris
                  Rusch shall be converted into 10,372 common shares of the
                  Corporation;

<PAGE>
                                                                          Page 9

         (q)      the - issued and outstanding - shares of 1403626 held by The
                  Tatham Family Trust shall be converted into 38,000 common
                  shares of the Corporation;

         (r)      the - issued and outstanding - shares of 1403626 held by The
                  Tatham Family Trust No. II shall be converted into - common
                  shares of the Corporation;

         (s)      the - issued and outstanding - shares of 1403721 held by Chuck
                  Tatham shall be converted into 12,000 common shares of the
                  Corporation;

         (t)      the - issued  and  outstanding  -  [preference]  shares of XDL
                  shall be  converted  into - common shares of the Corporation;

         (u)      the - issued and  outstanding  common  shares of XDL shall be
                  converted  into - common  shares of the Corporation;

         (v)      the 5,983,962 issued and outstanding Class A Preferred shares
                  of Changepoint shall be converted into common shares of the
                  Corporation on a 1 for 1 basis so that each Class A Preferred
                  shareholder shall receive that number of common shares of the
                  Corporation which it held in Changepoint immediately prior to
                  amalgamation;

         (w)      the 2,873,696 issued and outstanding Class B Preferred shares
                  of Changepoint shall be converted into common shares of the
                  Corporation on a 1 for 1 basis so that each Class A Preferred
                  shareholder shall receive that number of common shares of the
                  Corporation which it held in Changepoint immediately prior to
                  amalgamation;

         (x)      the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1359288 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (y)      the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1359290 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (z)      the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1359292 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (aa)     the 902,401 issued and outstanding common shares of
                  Changepoint all of which are at the date hereof and will be at
                  the Effective Time held by or on behalf of 1359293 shall be
                  cancelled without any repayment of capital in respect thereof
                  and shall not be converted into shares of the Corporation;

<PAGE>
                                                                         Page 10

         (bb)     the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1403626 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (cc)     the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1403627 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (dd)     the - issued and outstanding common shares of Changepoint all
                  of which are at the date hereof and will be at the Effective
                  Time held by or on behalf of 1403721 shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (ee)     the - issued and outstanding [preference] shares of
                  Changepoint all of which are at the date hereof and will be at
                  the Effective Time held by or on behalf of XDL shall be
                  cancelled without any repayment of capital in respect thereof
                  and shall not be converted into shares of the Corporation;

         (ff)     the 3,150 issued and outstanding common shares of Changepoint
                  all of which are at the date hereof and will be at the
                  Effective Time held by or on behalf of XDL shall be cancelled
                  without any repayment of capital in respect thereof and shall
                  not be converted into shares of the Corporation;

         (gg)     the - issued and outstanding common shares of Changepoint held
                  by - [remaining Changepoint shareholders] shall be converted
                  into - common shares of the Corporation.

12.      STATED CAPITAL

                  The stated capital of the shares of the Corporation issued on
the conversion of the shares of the Corporation, subject to section 175(2) of
the Act, shall be the aggregate of the issued stated capital of all of the
amalgamating corporations.

13.      AMALGAMATION

                  Upon the Effective Time:

         (a)      the  Amalgamating  Corporations  are amalgamated and continue
                  as one corporation  under the terms and conditions prescribed
                  in the Amalgamation Agreement;

         (b)      the Corporation possesses all the property, rights, privileges
                  and franchises and is subject to all liabilities, including
                  civil, criminal and quasi-criminal, and all contracts,
                  disabilities and debts of each of the Amalgamating
                  Corporations;

<PAGE>
                                                                         Page 11

         (c)      a conviction against, or ruling, order or judgment in favour
                  or against an Amalgamating Corporation may be enforced by or
                  against the Corporation;

         (d)      the articles of amalgamation giving effect to the amalgamation
                  herein provided for are deemed to be the articles of
                  incorporation of the Corporation and, except for the purposes
                  of subsection 117(1) of the Act, as may be amended from time
                  to time, the certificate of amalgamation shall be deemed to be
                  the certificate of incorporation of the Corporation;

         (e)      the Corporation shall be deemed to be the party plaintiff or
                  the party defendant, as the case may be, in any civil action
                  commenced by or against an Amalgamating Corporation before the
                  Effective Time.

                                                            continued on page 12

<PAGE>
                                                                         Page 12

14.      TERMINATION

                  At any time before the Effective Time, this Amalgamation
Agreement may be terminated by the directors of either of the Amalgamating
Corporations, notwithstanding the approval of this Amalgamation Agreement by the
shareholders of each of the Amalgamating Corporations.

                  IN WITNESS WHEREOF this Agreement has been executed by the
parties hereto as of the date and year first above written.

      1359288 ONTARIO LIMITED                 1359292 ONTARIO LIMITED

Per: ________________________________      Per:_________________________________
     Paul Lupinacci - Secretary                Paul Edwards - Secretary

      1359293 ONTARIO LIMITED                 1359290 ONTARIO LIMITED

Per: _________________________________     Per:_________________________________
     Randall Nelson Remme - Secretary          Gerald William Smith - Secretary

     1403721 ONTARIO LIMITED                  1403627 ONTARIO LIMITED

Per: _________________________________     Per:_________________________________
     Rick Moreau - Secretary                   Chris Rusch- Secretary

    1403626 ONTARIO LIMITED                    XDL CHANGEPOINT HOLDINGS INC.

Per: _________________________________     Per:_________________________________
     Chuck Tatham - Secretary                  David Latner -

      CHANGEPOINT CORPORATION

Per: _________________________________
     John Anhang - Secretary

<PAGE>

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