Document:

LOCK-UP
      AGREEMENT

    

    THIS
      LOCK-UP AGREEMENT (this "Agreement")
      is
      dated as of June 13, 2007 by and among BPO Management Services, Inc., a Delaware
      corporation (the "Company"),
      and
      the Stockholders of the Company listed on Schedule
      A
      attached
      hereto (collectively, the "Stockholders").

    

    WHEREAS,
      to induce the Company and the investors (the “Investors”)
      to
      enter into the Series D Convertible Preferred Stock Purchase Agreement dated
      as
      of the date hereof (the “Purchase
      Agreement”)
      by and
      among the Company and the Investors, the Stockholders have agreed not to sell
      any Securities (as defined below) of the Company that such Stockholders
      presently own or may acquire after the date hereof, except in accordance with
      the terms and conditions set forth herein. Capitalized terms used herein without
      definition shall have the meanings assigned to such terms in the Purchase
      Agreement.

    

    NOW,
      THEREFORE, in consideration of the covenants and conditions hereinafter
      contained, the parties hereto agree as follows:

    

    1.Restriction
      on Transfer; Term.
      From
      the period commencing on the Closing Date and expiring on the date that is
      the
      earlier of (a) September 30, 2008 or (b) six (6) months following the effective
      date of the registration statement filed by the Company with the Securities
      and
      Exchange Commission providing for the resale of all of the shares of Common
      Stock issuable upon conversion of the Preferred Shares and exercise of the
      Warrants issued pursuant to the Purchase Agreement (the “Period”),
      the
      Stockholders hereby agree with the Company that the Stockholders will not (i)
      offer, sell, contract to sell, sell short, pledge, assign, transfer,
      hypothecate, grant any option to purchase, grant a security interest in or
      otherwise dispose of (collectively, a “Disposition”),
      directly or indirectly, (A) any non-convertible shares of the Company's
      preferred stock, $0.01 par value per share, or (B) any shares of Common Stock
      (including, without limitation, shares of Common Stock that may be deemed to
      be
      beneficially owned by the undersigned in accordance with the rules and
      regulations of the Securities and Exchange Commission and shares of Common
      Stock
      that may be issued upon the exercise of a stock option or warrant) or (C)
      securities convertible into or exchangeable or exercisable for shares of Common
      Stock or (D) any derivative with respect to shares of Common Stock or preferred
      stock beneficially owned by the Stockholders (all of such shares and other
      securities being referred to collectively hereinafter as the "Securities"),
      (ii)
      enter into any transactions that would have the same effect, (iii) enter into
      any swap, hedge or other arrangement that transfers, in whole or in part, any
      of
      the economic consequences of ownership of the Securities, whether any of these
      transactions are to be settled by delivery of the Securities or other
      securities, in cash or otherwise, (iv) publicly disclose the intention to make
      any Disposition, or enter into any transaction, swap, hedge or other
      arrangement, or (v) request the registration of any of the foregoing under
      the
      Securities Act without, in each case, the prior written consent of investors
      who
      have purchased a majority of the Shares.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    2. Ownership. During
      the Period, the Stockholders shall retain all rights of ownership in the
      Securities, including, without limitation, voting rights and the right to
      receive dividends, if any, that may be declared in respect thereof.

    

    3.Company
      and Transfer Agent.
      The
      Company is hereby authorized to disclose the existence of this Agreement to
      its
      transfer agent. The Company and its transfer agent are hereby authorized to
      decline to make any transfer of the Securities if such transfer would constitute
      a violation or breach of this Agreement and the Purchase Agreement.

    

    4.Notices.
      All
      notices, demands, consents, requests, instructions and other communications
      to
      be given or delivered or permitted under or by reason of the provisions of
      this
      Agreement or in connection with the transactions contemplated hereby shall
      be in
      writing and shall
      be
      deemed to be delivered and received by the intended recipient as follows: (i)
      if
personally
      delivered, on the business day of such delivery (as evidenced by the receipt
      of
      the personal delivery service), (ii) if mailed certified or registered mail
      return receipt requested, four (4) business days after being mailed, (iii)
      if
      delivered by overnight courier (with all charges having been prepaid), on the
      business day of such delivery (as evidenced by the receipt of the overnight
      courier service of recognized standing), or (iv) if delivered by facsimile
      transmission, on the business day of such delivery if sent by 6:00 p.m. in
      the
      time zone of the recipient, or if sent after that time, on the next succeeding
      business day (as evidenced by the printed confirmation of delivery generated
      by
      the sending party's telecopier machine). If any notice, demand, consent,
      request, instruction or other communication cannot be delivered because of
      a
      changed address of which no notice was given (in accordance with this Section
      4), or the refusal to accept same, the notice, demand, consent, request,
      instruction or other communication shall be deemed received on the second
      business day the notice is sent (as evidenced by a sworn affidavit of the
      sender). All such notices, demands, consents, requests, instructions and other
      communications will be sent to the following addresses or facsimile numbers
      as
      applicable.

    

    If
      to the
      Company:

    

    BPO
      Management Services, Inc. 

    1290
      N.
      Hancock, Ste 202

    Anaheim,
      CA 92807

    Attention:
      Chief Executive Officer 

    Tel.
      No.:
      (714) 974-2670

    Fax
      No.:
      (714) 974-4771

    E-mail:
      patrick.dolan@bpoms.com

    

    

    With
      copies to (which copies shall not constitute notice): 

    

    Bryan
      Cave LLP

    1900
      Main
      Street, Suite 700

    Irvine,
      CA 92614

    Attention:
      Randolf W. Katz, Esq.

    Tel.
      No.:
      (949) 223-7103

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    Fax
      No.:
      (949) 223-7100

    E-mail:
      rwkatz@bryancave.com

    

    and
      to:

    

    Cornman
      & Swartz

    19800
      MacArthur Blvd., Suite 820

    Irvine,
      CA 92612

    Attention:
      Jack T. Cornman, Esq.

    Tel.
      No.:
      (949) 224-1500

    Fax
      No.:
      (949) 224-1505

    E-mail:
      jcornman@cornmanswartz.com

    

    and
      to:

    

    Sheppard,
      Mullin, Richter & Hampton LLP

    333
      S.
      Hope Street, 48th Floor

    Los
      Angeles, CA 90071

    Attention:
      David I. Sunkin, Esq.

    Tel
      No.:
      (213) 620-1780

    Fax
      No.:
      (213) 443-2750

    E-mail:
      dsunkin@sheppardmullin.com

    

    If
      to any
      of the Stockholders, addressed to such Stockholder at:

     

    c/o
      BPO
      Management Services, Inc. 

    1290
      N.
      Hancock, Ste 202

    Anaheim,
      CA 92807

    Attention:
      Chief Executive Officer 

    Tel.
      No.:
      (714) 974-2670

    Fax
      No.:
      (714) 974-4771

    E-mail:
      patrick.dolan@bpoms.com

    

    With
      copies to (which copies shall not constitute notice): 

     

    Bryan
      Cave LLP

    1900
      Main
      Street

    Suite
      700

    Irvine,
      CA 92614

    Attention:
      Randolf W. Katz, Esq.

    Tel.
      No.:
      (949) 223-7103

    Fax
      No.:
      (949) 223-7100

    E-mail:
      rwkatz@bryancave.com

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      ten (10) days’ written notice of such changed address to the other party
      hereto.

    

    5.Entire
      Agreement.
      This
      Agreement
      contains
      the entire understanding and agreement of the parties relating to the subject
      matter hereof and supersedes all prior and/or contemporaneous understandings
      and
      agreements of any kind and nature (whether written or oral) among the parties
      with respect to such subject matter, all of which are merged
      herein.

    

    6.Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made and to be performed in that
      state, without regard to any of its principles of conflicts
      of laws or other laws which would result in the application of the laws of
      another jurisdiction. This Agreement shall be construed and interpreted without
      regard to any presumption against the party causing this Agreement to be
drafted.
      

    

    7.Waiver
      of Jury Trial.
      EACH OF
      THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL
      BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES
      UNCONDITIONALLY AND IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION
      OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY AND THE
      FEDERAL DISTRICT COURT FOR THE SOUTHERN DISTRICT
      OF NEW YORK WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING
      OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY,
      AND EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY
      OBJECTION TO VENUE IN NEW YORK COUNTY OR SUCH DISTRICT, AND AGREES THAT SERVICE
      OF ANY SUMMONS, COMPLAINT, NOTICE OR OTHER PROCESS RELATING TO SUCH SUIT, ACTION
      OR OTHER PROCEEDING MAY BE EFFECTED IN THE MANNER PROVIDED IN SECTION 4.

    

    8.Severability.
      The
      parties agree that if any provision of this Agreement be held to be invalid,
      illegal or unenforceable in any jurisdiction, that holding shall be effective
      only to the extent of such invalidity, illegally or unenforceability without
      invalidating or rendering illegal or unenforceable the
      remaining provisions hereof, and any such invalidity, illegally or
      unenforceability in any jurisdiction
      shall not invalidate or render unenforceable such provision in any other
      jurisdiction. It is the intent of the parties that this Agreement be fully
      enforced to the fullest extent permitted by applicable law.

    

    9.Binding
      Effect; Assignment.
      This
      Agreement and the rights and obligations hereunder may not be assigned by any
      party hereto without the prior written consent of the other parties hereby.
      This
Agreement
      shall be binding upon and shall inure to the benefit of the parties hereto
      and
      their respective successors and permitted assigns.

    

    10.Headings.
      The
      section headings contained in this Agreement (including, without limitation,
      section headings and headings in the exhibits and schedules) are inserted for
      reference

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    purposes
      only and shall not affect in any way the meaning, construction or interpretation
      of this Agreement. Any reference to the masculine, feminine, or neuter gender
      shall be a reference to such other gender as is appropriate. References to
      the
      singular shall include the plural and vice versa.

    11.Counterparts.
      This
      Agreement may be executed in two or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, and all of which, when taken together,
      shall constitute
      one and the same document. This Agreement shall become effective when one or
      more counterparts, taken together, shall have been executed and delivered by
      all
      of the parties.

    

    12.Third-Party
      Beneficiaries.
      Each of
      the Stockholders and the Company hereby acknowledges that the Investors are
      third party beneficiaries of this Agreement and this Agreement may not be
      modified or changed without the prior written consent of the Investors.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

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

    

    BPO
      MANAGEMENT SERVICES, INC.

     

     

    By: 
      /s/ Patrick A. Dolan 
      
        

      

    

    Name: 
      Patrick A. Dolan

    Title:   
      Chairman and CEO

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    STOCKHOLDER:

     

     

    By: 
      /s/ Patrick A. Dolan 
      
        

      

    

    Name:
      Patrick A. Dolan

    Title:  
      Chairman and CEO

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      
        STOCKHOLDER:

         

         

        By: 
          Jim Cortens 
          
            

          

        

        Name:
          Jim
          Cortens

        Title:  
          

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          STOCKHOLDER:

           

           

          By: 
            /s/ George Logan 
            
              

            

          

          Name:
            George Logan

          Title:  
            

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Brian Meyer 
        
          

        

      

      Name:
        Brian Meyer

      Title:  
        

    

     

    
       

      By: 
        /s/ Lynne Meyer 
        
          

        

      

      Name:
        Lynne Meyer 

      Title:  
        

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Ray Belisle 
        
          

        

      

      Name:
        Ray
        Belisle

      Title:  
        

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Don West 
        
          

        

      

      Name:
        Don
        West

      Title:  
        

       

    

    
      STOCKHOLDER:

       

       

      By:  /s/
        Sharon West  
        
          

        

      

      Name:
        Sharon West

      Title:  
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

    

    
      STOCKHOLDER:

       

      WEST
        LTP TRUST:

       

       

      By: 
        /s/ Richard Taylor  
        
          

        

      

      Name:
        Richard Taylor

      Title:  
        Trustee

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Tom Lucas 
        
          

        

      

      Name:
        Tom
        Lucas

      Title:  
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Bob Bisci  
        
          

        

      

      Name:
        Bob
        Bisci

      Title:  
        

    

     

    
       

      By: 
        /s/ Michele Bisci  
        
          

        

      

      Name:
        Michele Bisci

      Title:  
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Kevin Smith  
        
          

        

      

      Name:
        Kevin Smith

      Title:  
        

    

     

    
       

      By: 
        /s/ Julie Smith 
        
          

        

      

      Name:
        Julie Smith

      Title:  
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ John Lalli  
        
          

        

      

      Name:
        John Lalli

      Title:  
        

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By:  /s/
        Harold Hermann  
        
          

        

      

      Name:
        Harold Hermann

      Title:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By:  /s/
        Koushik Dutta  
        
          

        

      

      Name:
        Koushik Dutta

      Title: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Don Rutherford  
        
          

        

      

      Name:
        Don
        Rutherford

      Title:  
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      STOCKHOLDER:

       

       

      By: 
        /s/ Dale Paisley 
        
          

        

      

      Name:
        Dale Paisley

      Title:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

    

     

    Schedule
      A

     

     

    Patrick
      Dolan

    Jim
      Cortens

    George
      Logan

    Brian
      Meyer

    Lynne
      Meyer

    Ray
      Belisle

    Don
      West

    Sharon
      West

    West
      LTP Trust

    Tom
      Lucas

    Bob
      Bisci

    Michele
      Bisci

    Kevin
      Smith

    Julie
      Smith

    John
      Lalli

    Harold
      Hermann

    Houshik
      Dutta

    Don
      Rutherford

    Dale
      PaisleyCONFIRMATION
      AND MODIFICATION TO REGISTRATION RIGHTS AGREEMENT

    

    This
      Confirmation and Modification to Registration Rights Agreement (the
“Confirmation and Modification Agreement”) is dated as of May 31, 2007 and is
      entered into by the undersigned for the benefit of BPO Management Services,
      Inc., a Delaware corporation (formerly netGuru, Inc., a Delaware corporation)
      (the “Company”), as successor to BPOMS/HRO, Inc.(formerly BPO Management
      Services Inc.), a Delaware corporation (“Sub”), and the Investors (as that term
      is defined below).

    

    WHEREAS,
      the Company has proposed to enter into a series of agreements (the “Transaction
      Documents”) with Vision Opportunity Master Fund, Ltd., RENN Capital Group, Inc.
      Bridgepointe Masterfund Ltd., and Heller Capital Investments, LLC or such other
      entities as are parties to the Transaction Documents (collectively, the
“Investors”);

    

    WHEREAS,
      each of the undersigned previously entered into a Registration Rights Agreement,
      initially dated as of July 29, 2005, or initially dated as of November 1, 2005,
      each such agreement as amended to date (collectively, the “Private Registration
      Rights Agreements”);

    

    WHEREAS,
      as a condition to the Investors’ performance of their respective initial
      obligations under the Transaction Documents, the Investors have required that
      each of the undersigned execute and deliver a Lock-Up Agreement, which agreement
      constitutes one of the Transaction Documents and the spirit of which requires
      that each of the undersigned also execute this Confirmation and Modification
      Agreement;

    

    NOW,
      THEREFORE, in consideration of these presents and for such other good and
      valuable consideration the receipt and legal sufficiency of which is hereby
      acknowledged, each of the undersigned hereby agree and acknowledge as
      follows:

    

    
      	 	
              1.

            	
              Each
                of the undersigned is subject to and shall abide by the restrictions
                on
                the sale of all common stock and preferred stock issued by the Company
                and
                held of record and beneficially by the undersigned as provided for
                in the
                Transaction Documents, including: (i) the form of Registration Rights
                Agreement among the Company and the Investors, which is attached
                hereto as
                Exhibit A; and (ii) the form of Lock-Up Agreement among the Company,
                each
                of the undersigned and the Investors, which is attached hereto as
                Exhibit
                B.

            

    

    
      	 	
              2.

            	
              Effective
                upon the closing of the initial series of transactions contemplated
                by the
                Transaction Documents, whereby the Company shall issue and sell certain
                of
                its equity and derivative securities to the Investors, each of the
                undersigned agrees not to exercise any of its respective rights otherwise
                exercisable under the Private Registration Rights Agreements, except
                as
                expressly permitted under the Transaction
                Documents.

            

    

    
      	 	
              3.

            	
              Each
                of the undersigned, who was a party to that certain Rights Agreement
                dated
                July 29, 2005, among Sub, Patrick Dolan, James Cortens, Brian Meyer,
                Donald

            

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    West,
      Ray
      Belisle and certain other parties related thereto as named on page 33 thereof,
      also hereby acknowledges and confirms that such agreement was previously
      terminated and has no force or effect and that there are no rights or claims
      of
      such undersigned with respect thereto.

    
      	 	
              4.

            	
              This
                Confirmation and Modification Agreement may not be changed or terminated
                unless agreed to in writing by the Company and by the other parties
                affected by such change or termination.

            

    

    
      	 	
              5.

            	
              This
                Confirmation and Modification Agreement may be executed in counterparts
                and by facsimile and such counterparts shall together constitute
                one
                agreement.

            

    

    

    Entered
      into as of the date first set forth above.

     

     

    /S/
      PATRICK A. DOLAN

    
      

    

    MR.
      PATRICK A. DOLAN

     

    
       

      /S/
        JAMES
        CORTENS

    

    
      

    

    MR.
      JAMES
      CORTENS

     

     

    
      /S/
        BRIAN
        MEYER

    

    
      

    

    MR.
      BRIAN
      MEYER

     

    
       

      /S/
        DONALD WEST

    

    
      

    

    MR.
      DONALD WEST

     

    
       

      /S/
        RAY
        BELISLE

    

    
      

    

    MR.
      RAY
      BELISLE

     

    
       

      /S/
        LYNN
        MEYER

    

    
      

    

    MRS.
      LYNN
      MEYER

     

     

    /S/ SHARON WEST

    
      
MRS.
      SHARON WEST

    

    WEST
      LTP
      TRUST, by its Trustee

     

     

    Per:
      /s/
      Richard Taylor 
      
        

      

    

    Name: 
      Richard Taylor

     

     

    
      /s/
        Thomas E. Lucas

      
        

      

    

    Mr.
      Thomas E. Lucas

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    Accepted:

    

    BPO
      MANAGEMENT SERVICES, INC.

     

     

    By: 
      /s/ Patrick A. Dolan

    
      

    

    Name: 
      Patrick A. Dolan

    Title:   
      Chairman and CEO

     

    BPOMS/HRO,
      INC.

     

    By: 
      /s/ Patrick A. Dolan 
      
        

      

    

    Name:
      Patrick A. Dolan

    Title:  
      Chairman and CEO

    
 

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    (Form
      of
      Registration Rights Agreement)

     

     

    
 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    (Form
      of
      Lock-Up Agreement)

     

     

     

     

    
      
        
        

      

      
        -5-

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