Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Moneyflow Capital Corp. - Exhibit 10.4

 

               THIS
  AGREEMENT made the 25th day of October, 2004. 

 AMONG: 

	 	CMC Investments Inc. a British Columbia
        company c/o 1400 – 1055 West Hastings Street, Vancouver, British
        Columbia, V6E 2E9 

(the “Seller”) 

 - and -

	 	Moneyflow Capital Corp., a company
        incorporated under the laws of the Province of British Columbia, with
        its registered and records office at Suite 302, 850 West Hastings Street,
        Vancouver, BC V6C 1E1 

(the “Buyer”)

 - and -

	 	Canadian Cheque Cashing Corporation,
        a Canadian corporation having its registered office at 1400 – 1055
        West Hastings Street, Vancouver, British Columbia, V6E 2E9

(“CCCC”) 

 - and -

	 	Wayne Mah, Businessman, of 6289 Carnarvon
        Street, Vancouver B.C. V6N 1K2 

(“Mah”) 

 - and -

	 	North American General Resources Corp.,
        a company incorporated under the laws of state of Nevada, with its Canadian
        Branch office at Suite 302, 850 West Hastings Street, Vancouver, BC V6C
        1E1 

(“NAGR”) 

 

 2

 WITNESSES THAT:  

          WHEREAS
  the Seller carries on the business (the “Business”) of operating
  a foreign exchange service and owns 100% of the issued and outstanding shares
  of CCCC.

          AND
  WHEREAS CCCC carries on the business of providing financial services including
  short-term loans and cheque cashing from retail store premises located in Vancouver
  (Granville and Hastings locations), Burnaby, Kelowna, Kamloops and Nanaimo (the
  “Stores”);

          AND
  WHEREAS Mah is the sole director, officer and registered shareholder of
  the Seller; 

          AND
  WHEREAS NAGR is the sole registered shareholder of the Buyer; 

          AND
  WHEREAS subject to the terms and conditions set forth in this Agreement
  the Seller has agreed to sell to the Buyer and the Buyer has agreed to purchase
  from the Seller substantially all the assets, property and undertaking of and
  pertaining to the Business;

          NOW
  THEREFORE, in consideration of the premises and mutual agreements contained
  in this Agreement and of other good and valuable consideration (the receipt
  and sufficiency of which are acknowledged by each Party hereto), the Parties
  agree with one another as follows:

 1. INTERPRETATION 

 1.1 Definitions. Whenever used
  in this Agreement, unless there is something in the subject matter or context
  inconsistent therewith, the following words and terms shall have the respective
  meanings assigned to them in this Section 1.1:

	 	(a) 	“Affiliate”, “Associate”
        and “Subsidiary” shall have the respective meanings assigned
        to those terms by the Company Act (British Columbia);  

	 	 	 
	 	(b) 	“Agreement” means this asset purchase
        agreement and all instruments supplemental to or in amendment or confirmation
        of this asset purchase agreement, and all references to this Agreement
        shall include the attached Schedules and “Article”, “Section”,
        “Subsection”, or “Paragraph” means and refers
        to the specified article, section, subsection, or paragraph of this asset
        purchase agreement;

	 	 	 
	 	(c) 	“Assumed Liabilities” means:
	 	 	 

	 	 	(i) 	 the Mah Debt; and
	 	 	 	 
	 	 	(ii) 	 the OFC Debt;
	 	 	 	 

	 	(d) 	“Assumption Agreement” means the
        assumption and indemnity agreement to be issued by the Buyer to the Seller
        in the form attached as Schedule A;

	 	 	 
	 	(e)  	“Benefit Plan” means any management
        agreement, pay equity plan, vacation or vacation pay policy, employee
        insurance, hospital or medical expense programme or pension, retirement,
        profit sharing, stock bonus or other employee benefit plan, programme
        or arrangement or any executive or key personnel incentive or other special
        compensation arrangement. 

 

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	 	(f) 	“Business” has the meaning assigned
        in the recitals to this Agreement; 

	 	 	 
	 	(g)	“Business Day” means any day,
        other than a Saturday, Sunday or any other day on which the principal
        chartered banks located in the City of Vancouver are not open for business
        during normal banking hours;

	 	 	 
	 	(h)	“Buyer’s Solicitors” means
        John Briner, Barrister & Solicitor; 

	 	 	 
	 	(i)	“Closing” means the completion
        of the sale to, and the purchase by the Buyer of, the Purchased Assets
        under this Agreement by the transfer and delivery of documents of title
        to the Purchased Assets and the payment of the Purchase Price; 

	 	 	 
	 	(j) 	“Closing Date” means the first
        Business Day following receipt of the last to be received of the required
        consent of any third parties to the assignment of the Assets, but not
        later than November 1st, 2004, or such later date as the Parties
        may agree in writing as the date upon which the Closing shall take place;
        

	 	 	 
	 	(k)	“Closing Documents” means collectively
        the documents referred to in Article 7;

	 	 	 
	 	(l) 	“Closing Time” means 10:00 a.m.
        or such other time on the Closing Date as the Parties may agree;

	 	 	 
	 	(m) 	“Contracts” means those contracts,
        agreements, commitments, entitlements and engagements of the Seller relating
        to the Business and the Purchased Assets other than relating to the Excluded
        Assets whether with suppliers, customers or otherwise and including all
        unfilled loan requests from customers; all forward commitments for supplies
        or materials; all orders for new machinery and equipment as yet undelivered;
        all equipment and construction guarantees and warranties; negative covenants
        with employees; and all other contracts described in Schedule B;

	 	 	 
	 	(n)	“Court” means the Supreme Court
        of British Columbia; 

	 	 	 
	 	(o)  	“Deposit” means an amount of $500,000;
	 	 	 
	 	(p) 	 “Employees” means the persons identified on Schedule
      C; 
	 	 	 
	 	(q)	“Equipment Leases” means those
        equipment leases and other agreements between the Seller and third Persons
        relating to equipment used by the Seller in connection with the Business
        including those that are listed in Schedule D;

	 	 	 
	 	(r)	“Excluded Assets” means: 

	 	 	 

	 	 	(i)	 all cash, bank balances, monies in possession of
        banks and other depositaries, term or time deposits and similar cash items
        of, owned or held by or for the account of the Seller;

	 	 	 	 
	 	 	(ii)	 the corporate, financial, taxation and other records
        of the Seller not pertaining exclusively or primarily to the Business
        or Purchased Assets;

	 	 	 	 
	 	 	(iii)	 all extra-provincial, sales, excise or other licences
        or registrations issued to or held by the Seller, whether in respect of
        the Business or otherwise; and 

	 	 	 	 
	 	 	(iv)	 all deferred income taxes and income taxes recoverable;
      

 

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	 	(u) 	“Excluded Liabilities” means all
        liabilities of the Seller other than the Assumed Liabilities, existing
        or incurred on or before the Closing Date including, without limitation:
      

	 	 	 

	 	 	(i)	 deferred income tax of the Seller; 

	 	 	 	 
	 	 	(ii)	 except as specifically contemplated in the Agreement
        all other taxes, duties or similar charges (including penalties, fines
        and interest) payable by the Seller;

	 	 	 	 
	 	 	(iii)	 any liability of the Seller to the Buyer arising
        after the date of this Agreement out of any misrepresentation or breach
        of any warranty of the Seller contained in this Agreement;

	 	 	 	 
	 	 	(iv) 	any liability of the Seller for any personal injuries
        arising on or before the Closing Date from or in connection with an injury,
        accident or other alleged damage-causing event occurring in the course
        of the conduct of the Business by the Seller;

	 	 	 	 
	 	 	(v)	 any liability of the Seller to any bank or other
        financial institution by way of loan or other credit facility; and

	 	 	 	 
	 	 	(vi)	 any liability of the Seller to its shareholders,
        affiliates or associates or any other Person not dealing at arm’s
        length with any of them;

	 	 	 	 

	 	(v)	“General Assignment” has the meaning
        assigned in Section 2.3;

	 	 	 
	 	(w)	“GST” means the Goods and Services
        Tax payable under the Excise Tax Act; 

	 	 	 
	 	(x)	“Inventories” means all inventories
        of every kind and nature and wheresoever situate owned by the Seller and
        pertaining to the Business including, without limitation, all inventories
        of fuel;

	 	 	 
	 	(y)	“Leases” means all leases of the
        leasehold and other interests described in Schedule E, including all fixtures
        and improvements owned by the Business relating to those leasehold and
        other interests;

	 	 	 
	 	(z)	“Licences” means all transferable
        licences, registrations, qualifications, permits and approvals, issued
        by any government or governmental unit, agency, board, body or instrumentality,
        whether federal, provincial or municipal, relating to the Business, including
        those listed in Schedule F, together with all applications for such licences
        or permits; 

	 	 	 
	 	(aa)	“Mah Debt” means the unpaid liability
        of the Seller to the Wayne Mah in respect of his unpaid advances to the
        Business in the amount of $2,010,000; 

	 	 	 
	 	(bb)	 “OFC Debt” means the liability
        of the Seller to 685203 B.C. Ltd. in the amount of $490,000 CAD repayable
        together with interest at a rate of 12% per annum pursuant to a debenture
        dated February 18th, 2004, a copy of which is attached as Schedule G;
      

	 	 	 
	 	(cc)	“PST” means the taxes payable
        under the Social Service Tax Act (British Columbia) 

	 	 	 
	 	(dd) 	“Person” includes an individual,
        corporation, partnership, joint venture, trust, unincorporated organization,
        the Crown or any agency or instrumentality thereof or any other juridical
        entity;

	 	 	 
	 	(ee) 	“Purchase Price” means the aggregate
        of: 

 

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	 	 	(i)	 the amount of the Mah Debt as at the Closing Date; 
	 	 	 	 
	 	 	(ii)	 the amount of the OFC Debt as at the Closing Date; and
	 	 	 	 
	 	 	(iii)	 stock in the capital of NAGR as set forth in Schedule H. 
	 	 	 	 

	 	(ff) 	“Purchased Assets” means all of
        the all of the right and entitlement and interest of the Seller in the
        assets of and used in connection with the Business, other than the Excluded
        Assets, and including, without limitation: 

	 	 	 

	 	 	(i)	
         Inventories—all the Inventories; 
        

      

	 	 	 	

	 	 	(ii) 	Contracts and Equipment Leases—all right,
        title and interest of the Seller in, to and under and the full benefit
        and advantage of, the Contracts and the Equipment Leases and the full
        benefit of all service contracts relating to any Equipment Leases or any
        equipment or other assets covered by the Equipment Leases and all options,
        including, without limitation, options to purchase, under the Contracts
        or Equipment Leases; 

	 	 	 	

	 	 	(iii)	 Fixed Assets, Equipment, etc.—all fixed
        assets, machines, machinery, equipment, fixtures, furniture, furnishings
        and other tangible property and facilities owned or held by the Seller
        and used in the Business whether located in or on the premises of the
        Seller or elsewhere, including, without limitation, those described in
        Schedule I; 

	 	 	 	

	 	 	(iv)	 Goodwill of Business—the right, title
        and interest of the Seller in the goodwill of the Business, and all right,
        title and interest of the Seller in, to and in respect of the name “Moneyflow”
        or Canadian “Cheque Advance”; 

	 	 	 	

	 	 	(v)	 Prepaid Expenses— subject to adjustment
        to and including the Closing Date under Section 3.3 below, all prepaid
        expenses including, without limitation, taxes, business taxes, rents,
        telephone and insurance incurred by the Seller but excluding income, capital
        and other taxes which are personal to the Seller or not incurred in connection
        with the Business; 

	 	 	 	

	 	 	(vi) 	Accounts Receivable—all accounts receivable,
        bills receivable, trade accounts, book debts, and other amounts due, owing
        or accruing due to the Seller in connection with the Business, including
        for greater certainty, the benefit of all security (including cash deposits),
        guarantees and other collateral held by the Seller in respect of any accounts
        receivable;

	 	 	 	

	 	 	(vii)	 Leases—all right, title and interest
        of the Seller in the Leases;

	 	 	 	

	 	 	(viii)	 Licences—all the Licences;

	 	 	 	

	 	 	(ix) 	Books and Records—all business books
        and records used in the conduct of the Business, including without limitation,
        all financial, operating, inventory, legal, personnel, payroll, and customer
        records and all sales and promotional literature, correspondence and files;
        and,

	 	 	 	

	 	 	(x) 	General—all other rights, properties
        and assets (other than Excluded Assets) of the Seller used primarily in
        the Business, including telephone numbers, of whatsoever nature or kind
        and wherever situated;

 

 6

	 	(gg) 	“Seller’s Financial Statements”
        means the un-audited financial statements of the Seller as at August
        31st, 2004; 

	 	 	

	 	(hh)	“Seller’s Solicitor” means
        Gregory G. Dureault, Barrister & Solicitor; 

	 	 	

	 	(ii)	“Statement of Adjustments” has
        the meaning assigned in Section 3.3; 

1.2 Gender and Number. In this
  Agreement, words importing the singular include the plural and vice versa and
  words importing gender include all genders.

 1.3 Entire Agreement. This Agreement,
  including Schedules A to K, together with the agreements and other documents
  related to the preparation of or to be delivered under this Agreement constitute
  the entire agreement between the Parties pertaining to the subject matter of
  this Agreement; but shall not be construed so as to supersede all prior agreements,
  understandings, negotiations and discussions, whether oral or written, of the
  Parties unless expressly otherwise stipulated herein. For example, the Parties
  expressly agree that there are no warranties or representations between the
  Parties in connection with the subject matter of this Agreement except as specifically
  set forth in this Agreement. In addition, no supplement, modification or amendment
  to this Agreement and no waiver of any provision of this Agreement shall be
  binding on any Party unless executed by such Party in writing.

 1.4 Article and Section Headings.
  Article and Section headings contained in this Agreement are included solely
  for convenience, are not intended to be full or accurate descriptions of the
  content of any Article or Section and shall not be considered to be part of
  this Agreement.

 1.5 Schedules.  The following
  Schedules are an integral part of this Agreement:

	 	Schedule A — Assumption Agreement

        Schedule B — Contracts 

        Schedule C— Employees

        Schedule D — Equipment Leases

        Schedule E — Leases

        Schedule F — Licences 

        Schedule G— Debenture in respect of the OFC Debt and Mah Debt

        Schedule H— Stock Issuance in the Capital of NAGR to Mah

        Schedule I — Fixed Assets and Equipment, etc

        Schedule J— General Assignment

        Schedule K — Allocation of Purchase Price 

      

1.6 Applicable Law. This Agreement shall
  be governed by and construed in accordance with the laws of the Province of
  British Columbia and the federal laws of Canada applicable in the Province of
  British Columbia and shall be treated, in all respects, as a British Columbia
  contract. Each Party to this Agreement irrevocably attorns to and submits to
  the jurisdiction of the Courts of British Columbia with respect to any matter
  arising under or relating to this Agreement.

 1.7 Currency. Unless otherwise
  indicated, all dollar amounts referred to in this Agreement are in Canadian
  funds.

 1.8 Accounting Terms. All accounting
  terms not otherwise defined have the meanings assigned to them, and all calculations
  are to be made and all financial data to be submitted are to be prepared, in
  accordance with the generally accepted accounting principles “GAAP”
  approved from time to time by the Canadian Institute of Chartered Accountants,
  or any successor institute, applied on a consistent basis.

 

 7

 1.9 Arm’s Length. For purposes
  of this Agreement, Persons are not dealing at arm’s length with one another
  if they would not be dealing at arm’s length with one another for purposes
  of the Income Tax Act.

 1.10. Business Days. Whenever
  any action or payment to be taken or made under this Agreement shall be stated
  to be required to be taken or made on a day other than a Business Day, and payment
  shall be made or such action shall be taken on the next succeeding Business
  Day.

 1.11 Statutory Instruments. Unless otherwise
  specifically provided in this Agreement, any reference in this Agreement to
  any law, by-law, rule, regulation, order, act or statute of any government,
  governmental body or other regulatory body shall be construed as a reference
  to those as amended or re-enacted from time to time or as a reference to any
  successor to those.

 1.12. Materiality. In this Agreement
  “Material” means, when used as an adjective, that any breach, default
  or deficiency in the satisfaction of any covenant, representation or warranty
  so described might reasonably:

	 	(a) 	give rise to an aggregate remedial cost (including
        consequential loss and loss of profit) of more than $10,000.00, in
        any individual instance, or more than $100,000.00, collectively in
        any greater number of instances, where all such instances arise pursuant
        to multiple breaches of the same covenant, representation or warranty;
        or

	 	 	

	 	(b)	 where no adequate remedy is reasonably available,
        result in disturbance in the ordinary conduct of the Business of an aggregate
        cost properly attributable to such disturbance (including consequential
        loss and loss of profit) of more than $10,000.00, and “Materially”
        shall have the corresponding meaning.

2. PURCHASE AND SALE OF PURCHASED ASSETS

 2.1 Purchase and Sale of Purchased Assets.
  Upon and subject to the terms and conditions of this Agreement, at the Closing
  Time the Seller shall sell, transfer, assign and set over the Purchased Assets
  to the Buyer and the Buyer shall purchase and acquire the Purchased Assets from
  the Seller, for the Purchase Price. 

 2.2 Assumed Liabilities. The Buyer
  agrees to assume and become liable only for the Assumed Liabilities at the Closing
  Time by executing and delivering the Assumption Agreement to the Seller. The
  Buyer will not assume any liabilities of the Business other than the Assumed
  Liabilities. 

 2.3. Non-Assignable Contracts. Neither
  this Agreement nor any document delivered under this Agreement shall constitute
  an assignment or attempted assignment of any Contract, Equipment Lease, Lease
  or Licence contemplated to be assigned to the Buyer under this Agreement:

	 	(a)	 that is not assignable without the consent of a
        third party if such consent has not been obtained and such assignment
        or attempted assignment would constitute a breach of such contract or
        agreement; or

	 	 	

	 	(b)	 in respect of which the remedies for the enforcement
        of which that are available to the Seller would not pass to the Buyer.

The Seller agrees to use its best efforts to obtain the consents
  of third parties as may be necessary for the assignment of the Contracts, the
  Equipment Leases, the Leases and the Licences except that the Seller shall not
  be obliged to make any payments to those third parties in addition to those
  required to be made under those contracts or agreements in order to obtain such
  consents, unless the Buyer reimburses the Seller for such payments at the time
  that they are made. To the extent that any of the foregoing items are not assignable
  by their terms or where consents to their assignment cannot be obtained as provided
  in this Section 2.3, such items 

 

 8

 shall be held by the Seller in trust for the Buyer and the
  covenants and obligations under those contracts or agreements shall be performed
  by the Buyer in the name of the Seller and all benefits and obligations existing
  therein shall be for the account of the Buyer. The Seller shall take or cause
  to be taken such action in its name or otherwise as the Buyer may reasonably
  require so as to provide the Buyer with the benefits of those contracts or agreements
  and to effect collection of money to become due and payable under such items
  and the Seller shall promptly pay over to the Buyer all money received by the
  Seller in respect of all of the foregoing items. Upon the Closing, the Seller
  and the Buyer shall execute and deliver a general assignment of contracts, leases
  and licences agreement (the “General Assignment”) in the form attached
  as Schedule J, under which the Seller shall authorize the Buyer, at the Buyer’s
  expense, to perform all of the Seller’s obligations under the foregoing
  items and constitute the Buyer its attorney to act in the name of the Seller
  with respect to those items, and the Buyer shall agree to assume those obligations.

 Nothing in this Section 2.3 shall limit the effect of Section
  7.1(f) regarding consents to assignments.

 3. PURCHASE PRICE AND PAYMENT

 3.1 Payment of Purchase Price. The
  Buyer shall pay the Purchase Price at the Closing as follows:

	 	(a)	 delivering or causing to be delivered to the Seller
        or in accordance with the Seller’s instructions, a trust cheque
        of the Buyer’s Solicitors in the amount of the Deposit;

	 	 	

	 	(b)	 assuming, in the manner contemplated by this Agreement,
        the Assumed Liabilities; and, 

	 	 	

	 	(c) 	delivering or causing to be delivered to Mah or in
        accordance with Mah’s instructions certificates or other evidence
        satisfactory to Mah of the stock to be issued in the capital of NAGR in
        accordance with Schedule H; and,

	 	 	

	 	(d) 	The parties agree that as a material part of the
        payment of the Purchase Price for the acquisition of the Purchased Assets,
        NAGR will further advance to the Buyer not less than $2,500,000 CAD
        to complete the acquisition of the Mah Debt and the OFC Debt in an aggregate
        amount of approximately $990,000 CAD and to provide a balance of enhanced
        working capital for the Business, in accordance with the following schedule:

	 	 	 

	 	 	i. 	$500,000 by private placement on or before October 31st, 2004 (the
      “First Placement”); 
	 	 	 	 
	 	 	ii.	$500,000 by private placement on or before November 30th, 2004 (the
      “Second Placement”); 
	 	 	 	 
	 	 	iii. 	$1,000,000 by private placement and/or Line of Credit on a best efforts
      basis as the market allows (the “Third Placement”); 
	 	 	 	 
	 	 	iv.	$500,000 by private placement and/or Line of Credit on or before February
      8th, 2005 (the “Fourth Placement”). 
	 	 	 	 

	 	(e)	 The First Placement will be used to reduce the Mah
        Debt. 

	 	 	

	 	(f) 	The Second Placement shall be used to reduce the
        OFC Debt 

	 	 	

	 	(g)	 After the Third Placement has been completed or
        a minimum of $1,500,000 in term deposits is obtained by NAGR and/or
        the Buyer, the holders of Debt in the Company may call upon the Buyer
        and/or NAGR to retire their outstanding debt in such amounts and 

 

 9

	 	 	 	upon such payment terms as may be decided at their discretion, on a pro
      rata basis. For this purpose the total amount of the indebtedness of NAGR
      and the Buyer to be owed to Mah upon successful completion of this Agreement
      is approximately an amount of $2,500,000 less the amount of $500,000
      to be paid under subparagraph (d) (i) above, and less the amount of the
      OFC Debt of $490,000 leaving an remaining balance of $1,510,000
      owing to Mah; and the total deemed indebtedness owed to current principals
      of NAGR is $600,000.
	 	 	 	 

	 	(h) 	The Fourth Placement shall be placed as working capital
        in the Buyer. 

	 	 	

	 	(i) 	Any GST applicable to result of the purchase and
        sale of the Purchased Assets shall be in addition to the Purchase Price.

3.2 Deposit. If the Buyer fails to complete
  this transaction by reason of the non-fulfillment by the Seller of any of the
  conditions set forth in Section 7.1, the Seller is not entitled to the Deposit
  and it shall be released to the Buyer no later than one Business Day after the
  scheduled Closing Date. If the Buyer fails to complete this transaction for
  any other reason, the Deposit may be retained by the Seller as liquidated damages
  and shall be obtained by the Seller by making the requisite demand upon the
  Buyer’s Solicitors and the Seller’s Solicitor. 

 3.3 General Adjustments. In addition
  to the Purchase Price, the usual and customary adjustments shall be made as
  of the Closing Date and allowed either to the Seller for Prepaid Expenses, Inventory
  etc. or the Buyer, as the case may be, on the Closing Date and a statement of
  adjustments (the “Statement of Adjustments”) shall be prepared and
  delivered by the Parties on the Closing Date.

 3.4. Allocation of Purchase Price and Tax Returns.
  The Seller and the Buyer covenant and agree with each other that the Purchase
  Price shall be allocated among the Purchased Assets in the manner set out in
  Schedule K. The Seller and the Buyer agree to cooperate in the filing of such
  elections under the Income Tax Act as may be necessary or desirable to
  give effect to said allocation for tax purposes. In addition the Seller and
  the Buyer agree to prepare and file their respective tax returns in a manner
  consistent with those allocations and elections. If either the Seller or the
  Buyer fails to file its tax returns in the agreed manner, it shall indemnify
  and save harmless the other, in accordance with Article 6, in respect of any
  additional tax, interest, penalty, legal or accounting costs paid or incurred
  as a result of the failure to file.

 3.5 Transfer Taxes. Subject to
  Section 5.8 and 5.11, the Buyer shall be liable for and shall pay at the Closing
  Date, in addition to the Purchase Price, all sales and value added taxes and
  all registration charges and other transfer fees or taxes properly payable upon
  and in connection with the sale and transfer of the Purchased Assets, including,
  without limitation, GST and PST, but specifically excluding any taxes based
  on the capital or net income of the Seller.

 3.6 Employees. Despite anything to the
  contrary in this Article 3, all payments, assumptions of liabilities and adjustments
  concerning any amount with respect to Employees shall be calculated and dealt
  with between the Parties in accordance with Section 5.6.

 4. REPRESENTATIONS AND WARRANTIES

	4.1 	Representations and Warranties of the Seller and CCCC.
      Subject to obtaining any necessary approvals and consents transfer and
      assign the Purchased Assets to the Buyer the Seller and CCCC hereby jointly
      and severally represent and warrant to the Buyer as follows and acknowledge
      that the Buyer is relying on these representations and warranties in entering
      into this Agreement and the transactions contemplated under this Agreement:

 

 10

	 	(a)	 Organization and Good Standing — The Seller
        and CCCC are each corporations duly incorporated, organized and validly
        existing in good standing under the laws of British Columbia and Canada
        as the case may be.

	 	 	

	 	(b) 	Bankruptcy, etc. — No bankruptcy, insolvency
        or receivership proceedings have been instituted or are pending against
        the Seller or CCCC and the Seller and CCCC are able to satisfy their liabilities
        as they become due, excluding the Mah Debt and the OFC Debt.

	 	 	

	 	(c)	 Previous Names —The Seller acquired its current
        name on October 15th, 2002 and prior to that was known as “Universal
        Coins & Bullion Inc.” from incorporation on March 20, 2000.
        The Seller has not at any time since incorporation carried on business
        under any other name. CCCC acquired its current name from continuance
        on July 8th, 1988 and has also operated under the registered
        proprietorship name “Canadian Cheque Advance” since that time
        period, and prior to that was known as Canadian Cheque Cashing Corporation
        by certificate of name change on October 3rd, 1985, and prior
        to that was known as “Canadian Cheque Cashing Ltd. by certificate
        of name change on May 29th, 1985 and was originally incorporated
        as a British Columbia company called “292294 British Columbia Ltd.”
        on May 9th, 1985. 

	 	 	

	 	(d) 	Capacity to Carry on Business — The Seller
        and CCCC have all necessary corporate power, authority and capacity to
        own its property and assets to carry on the Business as presently owned
        and carried on by them, and the Seller and CCCC are duly licensed, registered
        and qualified as a corporation to do business and is in good standing
        in each jurisdiction in which the nature of the Business and the Purchased
        Assets make such qualification necessary and all such licences, registrations
        and qualifications are valid and subsisting and in good standing and none
        of them contains any burdensome term, provision, condition or limitation
        that has or may have an adverse effect on the Purchased Assets.

	 	 	

	 	(e) 	Due Authorization, etc. —The Seller and CCCC
        have all necessary corporate power, authority and capacity to enter into
        this Agreement and to perform their obligations hereunder; the execution
        and delivery of this Agreement and the consummation of the transactions
        contemplated by this Agreement have been duly authorized by all necessary
        corporate action on the part of the Seller and CCCC. 

	 	 	

	 	(f) 	Absence of Conflicting Agreements — Except
        for the Contracts, the Equipment Leases, and the Leases, the consent to
        the assignment or transfer of which may be required from lessors or other
        third parties thereunder in connection with the completion of the transactions
        contemplated by this Agreement, the Seller and CCCC are not a party to,
        bound or affected by or subject to any indenture, mortgage, lease, agreement,
        instrument, statute, regulation, arbitration award, charter or by-law
        provisions, order or judgment which would be violated, contravened, breached
        by, or under which any default would occur as a result of the execution
        and delivery of this Agreement or the consummation of any of the transactions
        contemplated under this Agreement.

	 	 	

	 	(g) 	Enforceability of Obligations — This Agreement
        constitutes a valid and binding obligation of the Seller and CCCC enforceable
        against them in accordance with its terms, provided that enforcement may
        be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction
        and other similar laws generally affecting enforceability of creditors’
        rights and that equitable remedies such as specific performance and injunction
        are in the discretion of the court from which they are sought.

 

 11

	 	 	accurately described. The Purchased Assets comprise
        all the assets, property and undertakings necessary to carry on the Business.
        It is understood and agreed that the Purchased Assets are being sold to
        the Buyer “as is”. The Buyer acknowledges that it has had
        the opportunity to inspect the Purchased Assets and that it has not relied
        on any representations by the Seller or CCCC concerning any condition
        or fitness for use of the Purchased Assets.

	 	 	

	 	(i) 	Title to Purchased Assets—Subject in each case
        to section 2.3 the Seller is, or will be on the Closing Date and the Buyer
        shall on Closing become the absolute beneficial owner of the Purchased
        Assets, with good and marketable title to the Purchased Assets, free and
        clear of any title defects, mortgages, pledges, hypothecs, security interests,
        deemed trusts, liens, charges, encumbrances or rights or claims of others
        of any kind whatsoever and the Seller and CCCC are exclusively entitled
        to possess and, subject to obtaining any necessary approvals and consents
        to dispose of the Purchased Assets.

	 	 	

	 	(j) 	Seller’s Consolidated Financial Statements—
        The Seller’s Financial Statements have been prepared in accordance
        with GAAP applied on a basis consistent with that of the preceding period
        and present fairly: 

	 	 	 

	 	 	(i)	 all of the assets of the Business as at August 31st,
        2004 that are of a nature customarily reflected in or reserved against
        in a balance sheet; 

	 	 	 	

	 	 	(ii) 	all of the liabilities of the Business as at August
        31st, 2004 that are of a nature customarily reflected in or
        reserved against in a balance sheet; and 

	 	 	 	

	 	 	(iii) 	the revenues from operations of the Business after
        February 18th, 2004 to the Closing Date;

	 	 	 	 

	 	(l) 	Accounts Receivable — All accounts receivable,
        trade accounts, bills receivable and book debts and other debts due or
        accruing to the Seller and CCCC in connection with the Business are bona
        fide and good and subject to an allowance for doubtful accounts taken
        in accordance with GAAP are collectible without setoff or counterclaim.
        

	 	 	

	 	(m) 	Inventories — The Inventories are in
        good and merchantable condition and are usable or saleable in the ordinary
        course of business for the purposes for which they are intended; 

	 	 	

	 	(n)	 Guarantees and Indebtedness — The Seller and
        CCCC are not a party to or bound by any guarantee, indemnification, surety
        or similar obligation (except such as are granted in the ordinary course
        of business to the Bank of Montreal) in respect of the Business.

	 	 	

	 	(o)	 Material Contracts — Except for the Contracts,
        the Equipment Leases, the Leases and the Licences, the Seller and CCCC
        are not a party to or bound by any Material contract or commitment relating
        to the Business whether oral or written. The Contracts, the Leases, the
        Equipment Leases and the Licences are all in good standing and in full
        force and effect unamended and no Material default or breach exists in
        respect of them on the part of any of the parties to them and no event
        has occurred which, after the giving of notice or the lapse of time or
        both, would constitute such a default or breach.

	 	 	

	 	(p) 	No Options — No Person other than the Buyer
        has any agreement or option or any right capable of becoming an agreement
        or option for the purchase from the Seller or CCCC of any of the Purchased
        Assets.

	 	 	

	 	(q) 	Expropriation — No part of the Purchased Assets
        has been taken or expropriated by any 

 

 12

	 	 	federal, provincial, state, municipal or other authority
        nor has any notice or proceeding in respect thereof been given or commenced
        nor is the Seller or CCCC aware of any intent or proposal to give such
        notice or commence any such proceedings.

	 	 	

	 	(r)	 Insurance — The Seller and CCCC maintain such
        policies of insurance, issued by responsible insurers, as are appropriate
        to the Business and its property and assets, in such amounts and against
        such risks as are customarily carried and insured against by owners of
        comparable businesses, properties and assets; all such policies of insurance
        are in full force and effect, and will continue to be so until the Closing
        Date, and the Seller and CCCC are not in default, whether as to the payment
        of premiums or otherwise, under the terms of any such policy, nor has
        the Seller or CCCC failed to give any notice or present any claim under
        any such insurance policy in due and timely fashion.

	 	 	

	 	(s) 	Bank Accounts — All of the bank accounts operated
        in connection with the Business are maintained and operated solely in
        the name of the Seller and/or CCCC. There are no bank accounts operated
        in the name of any division or business or trade name or style of the
        Seller and/or CCCC.

	 	 	

	 	(t) 	Books and Records — The books and records of
        the Seller and CCCC fairly and correctly set out and disclose in all material
        respects, in accordance with GAAP, the financial position of the Seller
        and CCCC as at the date of this Agreement and all material financial transactions
        of the Seller and CCCC relating to the Business and the Purchased Assets
        have been accurately recorded in Seller’s books and records.

	 	 	

	 	(u)	 Liabilities — There are no liabilities of
        the Seller and CCCC of any kind whatsoever, whether or not accrued and
        whether or not determined or determinable, in respect of which the Buyer
        may become liable on or after the Closing Date, other than the Assumed
        Liabilities.

	 	 	 
	 	(v) 	Absence of Changes — Since the date of the
        Seller’s Consolidated Financial Statements, there has not been:

	 	 	 

	 	 	(i) 	any Material change in the condition of the Purchased
        Assets or in the condition or operations of the Business other than changes
        in the ordinary and normal course of business and other than changes resulting
        from general market conditions in the industry of which the Business forms
        a part; or

	 	 	 	

	 	 	(ii)	 any damage, destruction or loss, labour trouble
        or other event, development or condition of any character (whether or
        not covered by insurance) Materially and adversely affecting the Business.

	 	 	 	 

	 	(w) 	Absence of Unusual Transactions — Since the
        date of the Seller’s Consolidated Financial Statements, the Seller
        and CCCC have collectively carried on their Business in the usual and
        ordinary course, and in particular the Seller and CCCC have not:

	 	 	 

	 	 	(i) 	transferred, assigned, sold or otherwise disposed
        of any of the assets used in the Business except in the ordinary and usual
        course of business;

	 	 	 	

	 	 	(ii)	 discharged or satisfied any lien or encumbrance,
        or paid any obligation or liability (fixed or contingent) other than liabilities
        included in the balance sheet to the Audited Financial Statements and
        liabilities incurred since the date of the Seller’s Financial Statements
        in the ordinary and normal course of business;

 

 13

	 	 	(iii)	 suffered an extraordinary loss, or waived any rights
        of Material value, or entered into any Material commitment or transaction
        not in the ordinary and usual course of business;

	 	 	 	

	 	 	(iv) 	made any general wage or salary increases or other
        payments in respect of personnel which it employs except in the ordinary
        course of business;

	 	 	 	

	 	 	(vi)	 made any capital expenditure, except in the usual
        and ordinary course of business, and no capital expenditure will be made
        or authorized after the date of this Agreement by the Seller with respect
        to the Business without the prior written consent of the Buyer;

	 	 	 	

	 	 	(viii)	 authorized or agreed or otherwise become committed
        to do any of the foregoing;

	 	 	 	 

	 	(x)	 Employees, etc. — Schedule C is a complete
        and accurate list showing the names of all the Employees, their current
        annual salaries or hourly rates, job descriptions, length of employment
        or date of hire, dates and amounts of the most recent increases in salary,
        the amounts of any bonus payments, commissions, accrued vacation pay and
        other amounts owing to all Employees. This list includes all full-time,
        part-time, temporary, seasonal and casual employees of the Seller, and
        CCCC including, without limitation, all persons who may be considered,
        pursuant to applicable workers’ compensation, employment standards
        or similar legislation or otherwise at law or in equity to be employees
        of the Seller. 

	 	 	

	 	(y) 	Employment Contracts and Government Withholdings
        — Subject to applicable statutory rights, the Seller is not a party
        to any written contracts of employment with any of its employees or any
        oral contracts of employment which are not terminable on the giving of
        reasonable notice and/or severance pay in accordance with applicable law
        and no inducements to accept employment with the Seller and CCCC were
        offered to any such employees which have the effect of increasing the
        period of notice of termination to which any such employee is entitled.
        The Seller and CCCC have deducted and remitted to the relevant governmental
        authority or entity all income taxes, unemployment insurance contributions,
        Canada Pension Plan contributions, British Columbia employer health tax
        remittances and any taxes or deduction or other amounts which it is required
        by statute or contract to collect and remit to any governmental authority
        or other entities entitled to receive payment of such deduction.

	 	 	

	 	(z) 	Employment Payments by the Seller to Date of Closing
        — The Seller and CCCC have paid to the date of this Agreement all
        amounts payable on account of salary, bonus payments and commission (other
        than accrued vacation pay which shall be adjusted in accordance with Section
        5.6 (g)) to or on behalf of any and all Employees;

	 	 	

	 	(aa) 	Workers’ Compensation — All levies under
        the Workers’ Compensation Act (British Columbia) have been
        paid by the Seller.

	 	 	

	 	(ab)	 Statutory Lien – Except with respect to the
        Mah Debt and the OFC Debt the Seller and CCCC have paid all payments,
        charges and taxes, the failure to pay which could create or result in
        a lien against any of the Purchased Assets either before or after the
        Closing. 

	 	 	 
	 	(ac) 	Employment matters –
	 	 	 

	 	 	(i) 	The Seller and CCCC are not a party, either directly
        or by operation of law, to any collective agreement, letter of understanding,
        letter of intent or other written communication with any trade union or
        association. There are no Employees in 

 

 14

	 	 	 	receipt of or who have claimed benefits under any
        weekly indemnity, long term disability or workers’ compensation
        plan or arrangement or any other form of disability benefit programme,
        other than those Employees or former employees identified on Schedule
        C.

	 	 	 	 
	 	 	(ii)	 Benefit Plans — The Seller is not a party
        to any Benefit Plan. 

	 	 	 	 
	 	 	(iii) 	Health and Safety — The business premises located
        on the Real Properties comply with applicable sanitation, health and safety
        legislation and regulations and are not subject to any orders or directions
        of a sanitation or occupational health and safety authority or similar
        body. 

	 	 	 	 

	 	(ad) 	Litigation — With the exception of certain
        litigation commenced by Kurt MacKinnon1 against CCCC, there
        is no suit, action, litigation, arbitration, proceeding, governmental
        proceeding, including appeals and applications for review in progress,
        pending or threatened against or involving the Seller or CCCC, and there
        is not presently outstanding against or in respect of the Seller or CCCC
        any judgment, decree, injunction, rule or order of any court, governmental
        department, commission, agency, instrumentality or arbitrator.

	 	 	 
	 	(ae)	 Consents - Except for: 
	 	 	 

	 	 	(i)	 Contracts, 
	 	 	 	 
	 	 	(ii) 	Equipment Leases,
	 	 	 	 
	 	 	(iii)	 Leases, and 
	 	 	 	 
	 	 	(iv)	 Licenses 
	 	 	 	 

	 	 	requiring the consent to assignment of third parties
        there are no consents, authorizations, licences, franchise agreements,
        permits, approvals or orders of any person or government required to permit
        the Seller to complete this transaction with the Buyer.

	 	 	 
	 	(af) 	Licences and Permits — All of the licences,
        registrations, qualifications, permits, bonds and approvals (other than
        environmental licences or permits) issued by any government or governmental
        unit, agency, board, body or instrumentality, whether federal, provincial
        or municipal, related to the Business or necessary for the conduct of
        the Business are listed on Schedule F.

	 	 	

	 	(ag) 	
        Governmental Consents —No governmental or regulatory authorizations,
          consents, approvals, filings or notices pertaining to Buyer are required
          to be obtained or given or waiting period is required to expire in oder
          that the purchase and sale of the Assets may be consummated by the Buyer
          or for the Buyer to carry out its obligations set out in this Agreement.

        

	 	 	

	 	(ah)	 Residence — The Seller is not a non-resident
        of Canada within the meaning of the Income Tax Act. 

	 	 	

	 	(ai)	 GST Registration — The Seller is a registrant
        for purposes of GST and its GST registration number is RT871784526; 

1 Kurt MacKinnon v. National Money Mart et.al. in
  Supreme Court of British Columbia Action No. S030527 Vancouver Registry 

 

 

 15

	 	(aj)	 Tax Matters —The Seller is not in arrears or in default in respect
      of the filing of any required federal, provincial, or municipal tax or other
      return; and,
	 	 	 

	 	 	(i)	 all taxes, filing fees, and other assessments due and payable or collectable
      from the Business have been paid or collected;
	 	 	 	 
	 	 	(ii) 	no claim for additional taxes, filing fees, or other amounts and assessments
      has been made that has not been paid; and,
	 	 	 	 
	 	 	(iii)	 to the best of the Seller’s knowledge, no such return contains
      any misstatement or conceals any statement that should have been included
      therein. 
	 	 	 	 

	 	(ak)	 Rights, Privileges etc. — There are no rights,
        privileges or advantages presently enjoyed by the Seller in respect of
        the Business which might be lost as a result of the consummation of the
        transactions contemplated under this Agreement.

	 	 	

	 	(al) 	Disclosure — None of the foregoing representations,
        warranties and statements of fact contains any untrue statement of material
        fact or omits to state any material fact necessary to make any such representation,
        warranty or statement not misleading to a prospective Buyer of the Purchased
        Assets seeking full information concerning the matters which are the subject
        of such representations, warranties and statements.

	 	 	 

4.2 Representations and Warranties of the Buyer and NAGR.
  The Buyer and NAGR hereby jointly and severally represent and warrant to
  the Seller and Mah as follows and acknowledge that the Seller and Mah are relying
  on these representations and warranties in entering into this Agreement and
  the transactions contemplated under this Agreement:

	 	(a) 	Organization and Good Standing — The Buyer
        and NAGR are each a corporation duly incorporated, organized, and validly
        existing and in good standing under the laws of British Columbia and Nevada
        as the case may be. NAGR is the parent and sole shareholder of the Buyer.

	 	 	

	 	(b)	 The shares of NAGR are currently listed for trading
        on the OTCBB Exchange. 

	 	 	

	 	(c)	 NAGR is in good standing, up to date in all its
        filings and is current in all its tax and regulatory submissions. 

	 	 	

	 	(d)	 The authorized capital of NAGR consists of 100,000,000
        common shares with a par value of $.001, of which a total of approximately
        560,000 Common shares have been validly issued and are outstanding and
        are fully paid and non-assessable. 

	 	 	

	 	(e) 	Authority Relative to this Agreement, etc. —
        The Buyer and NAGR have all necessary corporate power, authority and capacity
        to enter into this Agreement and to perform its obligations under this
        Agreement; the execution and delivery of this Agreement and the consummation
        of the transactions contemplated by this Agreement have been duly authorized
        by all necessary corporate action on the part of the Buyer and NAGR.

	 	 	

	 	(f) 	Absence of Conflicting Agreements — The Buyer
        and NAGR are not a party to, bound or affected by or subject to any indenture,
        mortgage, lease, agreement, instrument, charter or bylaw provision, statute,
        regulation, order, judgment, decree or law which would be violated, contravened
        or breached by, or under which any default would occur as a result of
        the execution and delivery by it of this Agreement or the consummation
        of the transactions 

 

 16

	 	 	contemplated under this Agreement, except as disclosed in this Agreement.
	 	 	 
	 	(g)	 Enforceability of Obligations — This Agreement constitutes a valid
      and binding obligation of the Buyer and NAGR enforceable against them in
      accordance with its terms provided that enforcement may be limited by bankruptcy,
      insolvency, liquidation, reorganization, reconstruction and other similar
      laws generally affecting enforceability of creditors’ rights and that
      equitable remedies such as specific performance and injunction are in the
      discretion of the court from which they are sought.
	 	 	 
	 	(e)	 Financial Ability – The Buyer and NAGR have the financial ability
      as at the date of execution of this Agreement to perform each and every
      of its payment and other obligations as set forth herein. 
	 	 	 
	 	(f) 	Governmental Consents — No governmental or regulatory authorizations,
      consents, approvals, filings or notices pertaining to NAGR or the Buyer
      are required to be obtained or given or waiting period is required to expire
      in order that the purchase and sale of the Assets may be consummated by
      NAGR or the Buyer or for NAGR or the Buyer to carry out their obligations
      set out in this Agreement. 
	 	 	 
	 	(g)	 GST Registration — The Buyer will at the closing be a registrant
      for purposes of GST.

4.3 Commission. Each Party represents and warrants to
  the other Party that no Person is entitled to a brokerage commission, finder’s
  fee or other like payment in connection with the purchase and sale contemplated
  by this Agreement.

 4.4 Non-Waiver. No investigations made by or on behalf
  of the Buyer at any time shall have the effect of waiving, diminishing the scope
  of or otherwise affecting any representation or warranty made by the Seller
  in this Agreement or pursuant hereto. No waiver by the Buyer of any condition,
  in whole or in part, shall operate as a waiver of any other condition.

 4.5 Nature and Survival of Representations and Warranties.
  All statements contained in any certificate or other instrument delivered
  by or on behalf of a Party pursuant to or in connection with the transactions
  contemplated by this Agreement shall be deemed to be made by that Party under
  this Agreement. All representations, warranties, covenants and agreements contained
  in this Agreement on the part of each of the Parties shall survive the Closing,
  the execution and delivery hereunder of any bills of sale, instruments of conveyance,
  assignments or other instruments of transfer of title to any of the Purchased
  Assets and the payment of the consideration contemplated under this Agreement,
  except that the representations and warranties contained in this Agreement shall
  only survive for two years following Closing (except for the Seller’ representations
  and warranties relating to tax matters which shall survive for the period of
  time during which the taxes to which such representations and warranties relate
  may be reassessed by the relevant taxation authority, unless the Seller has
  been fraudulent in filing a return or supplying information to any taxation
  authority under any taxation legislation, in which case the survival of those
  representations and warranties relating to tax matters shall be unlimited) after
  which period of time, if no claim shall, prior to the expiry of such period,
  have been made under this Agreement against a Party with respect to any incorrectness
  in or breach of any representation or warranty made in this Agreement by such
  Party, such Party shall have no further liability under this Agreement with
  respect to such representation or warranty.

 

 17

 5. OTHER COVENANTS OF THE PARTIES

 5.1 Conduct of Business Prior to Closing. Until the
  Closing Date, the Seller shall, CCCC shall, and Mah shall cause the Seller and
  CCCC to:

	 	(a) 	Conduct Business in Ordinary Course — except
        as otherwise contemplated or permitted by this Agreement, conduct the
        Business in the ordinary and normal course and shall not, without the
        prior written consent of Buyer, enter into any transaction which, if entered
        into before the date of this Agreement, would cause any representations
        or warranties of the Seller contained in this Agreement to be incorrect
        or constitute a breach of any covenant or agreement of the Seller contained
        in this Agreement. The Seller shall use its reasonable commercial efforts
        to preserve the Business and the relationship between the Seller and the
        customers of the Business. 

	 	 	

	 	(b) 	Continue Insurance —continue in force all insurance
        maintained by it in respect of the Business.

	 	 	

	 	(c) 	Perform Obligations —comply with all applicable
        laws, regulations, by-laws and other governmental requirements of each
        jurisdiction in which the Business is carried on.

	 	 	

	 	(d) 	Material Changes — refrain from taking any
        action which would result in any Material adverse change, which shall
        be deemed to include the circumstances specified in Subsection 4.1 (z),
        in or to the Purchased Assets or sell, transfer or dispose of any of the
        Purchased Assets, other than in the ordinary course of business.

	 	 	

	 	(e) 	Liens — not suffer or permit any mortgages,
        pledges, hypothecs, security interests, deemed trusts, liens, charges,
        rights or claims of other Persons, or any other encumbrances whatsoever,
        to attach to or affect the Purchased Assets.

	 	 	

	 	(f) 	Wage Increases, Hiring and Firing — not make
        or commit to make any wage increases or grant any bonuses to any of the
        non-union Employees of the Business, nor employ any new Employees in the
        Business without the Buyer’s consent nor terminate the employment
        of any key Employees of the Business, without the Buyer’s consent.

	 	 	

	 	(g)	 Shareholder Approval – use its best efforts
        to cause all necessary steps and proceedings to be taken to permit the
        Purchased Assets to be duly and regularly transferred to the Buyer, including,
        but not limited to, obtaining the Matrimonial Consent and the passage
        of a resolution of the shareholders of the Seller in accordance with section
        126 of the Company Act (British Columbia). 

5.2 Access for Investigation. The Seller shall, and
  Mah shall cause the Seller to, permit the Buyer and its employees, agents, counsel
  and accountants or other representatives, between the date of this Agreement
  and the Closing Time, without interference to the ordinary conduct of the Business,
  to have access during normal business hours to the premises and to all the books,
  accounts, records and other data of the Business (including, without limitation,
  all corporate and accounting records of the Seller relating exclusively to the
  Business) and to furnish to the Buyer such financial and operating data and
  other information with respect to the Business, as the Buyer shall from time
  to time reasonably request to enable confirmation of the matters warranted in
  Section 4.1.

 5.3 Delivery of Books and Records. At the Time of Closing,
  the Seller shall, CCCC shall and Mah shall cause the Seller to, deliver to the
  Buyer the following documents: (i) lists of suppliers and customers of the Seller
  and CCCC which relate to the Business; (ii) employee records with respect to
  employees of Seller and 

 

 18

 CCCC hired by Buyer; (iii) advertising, promotional and marketing
  materials which relate to the Business; and (iv) files relating to the Purchased
  Assets including, without limitation, the maintenance records for each item
  of equipment or machinery included in the Purchased Assets. The Buyer agrees
  that it will preserve the documents, books and records so delivered to it for
  a period of six years from the Closing Date, or for such other period as is
  required by any applicable law, and will permit the Seller or its authorized
  representatives reasonable access to those books and records in connection with
  the affairs of the Seller relating to any tax matters, workers’ compensation
  or litigation matters. The Seller agrees that it will preserve the documents,
  books and records which are not delivered to the Buyer for a period of six years
  from the Closing Date, or for such longer period as is required by applicable
  law, and will permit the Buyer or its authorized representatives reasonable
  access to those books and records in connection with the affairs of the Buyer
  relating to any tax, workers’ compensation or litigation matters.

 5.4 Actions to Satisfy Closing Conditions. Each party
  hereby agrees to take all such actions as are within its power to control, and
  to use its best efforts to cause other actions to be taken which are not within
  its power to control, so as to ensure compliance with any conditions set forth
  in Article 7 which are for the benefit of another party.

 5.5 Business Names. Forthwith after the Closing Date,
  the Seller shall change its corporate name to a name not including the expression
  “Moneyflow Capital” or “Canadian Cheque Advance” or any variation
  thereof, shall discontinue further use of the names “Moneyflow Capital”
  or “Canadian Cheque Advance” or any similar name and will upon the request
  of the Buyer take such action as may be necessary to assist the Buyer or any
  of its affiliates to change its or their corporate names to names including
  the expression “Moneyflow Capital” or a variation thereof.

 5.6 Employees. 

	 	(a) 	Offer to Employees — The Buyer will
        offer employment, effective from the Closing Date, to each Employee on
        terms and conditions of employment including salary, incentive compensation,
        benefits, positions and responsibilities that are substantially similar
        to and in any event no less favourable to the Employee than those than
        applicable as at the Closing Date. The Buyer shall recognize the service
        of the Employees with the Seller or its predecessors up to the Closing
        Date for all purposes as if such service had occurred with the Buyer.
        The Seller will co-operate with the Buyer in giving notice to the Employees
        of the matters referred to in this Section 5.6 as is considered reasonable
        in the circumstances by the Buyer.

	 	 	

	 	(b) 	Wages and Benefits — The Seller shall
        be responsible for all wages, bonuses, earned vacations, sick leave, pensions,
        source deductions and other remuneration benefits for all the Employees
        accruing up to the Closing Date. The Buyer shall be responsible, conditional
        on Closing, for all such benefits of the Employees accruing on or after
        the Closing Date.

	 	 	

	 	(c)	 Employees Refusing Offer — The Seller shall
        be liable for the payment of all legal obligations relating to the termination
        of employment of any Employee who does not accept the Buyer’s offer
        of employment (“Refusing Employee”). The Seller’s liability
        shall extend to all amounts required either by statute or at common law
        to be paid to all Refusing Employees including pay in lieu of notice,
        termination pay, severance pay, vacation pay and all other outstanding
        amounts. The termination of any Refusing Employee shall be effective on
        the later of the day that he leaves his employment in the Interim Period
        or the Closing Date.

 

 19

	 	(d)	 Employees Accepting Offer — The Buyer shall
        be liable for the payment of all legal obligations relating to the termination
        of employment after the Closing Date of any Employee who accepts the Buyer’s
        offer of employment (“Accepting Employee”). The extent of
        the liability of the Buyer with respect to the Accepting Employees shall
        be the same as that of the Seller with respect to the Refusing Employees
        described in Section 5.6 (c).

	 	 	

	 	(f) 	Deductions and Withholding — Until the Closing
        Date the Seller will make all deductions required by law or by contract
        to be made from employee wages or salaries and will remit the amounts
        deducted and all related employer contributions required to the authorities
        or entities entitled to receive payment of such amounts.

	 	 	

	 	(g) 	Accrued Vacation Pay Credits — The Seller shall
        quantify the amount of accrued vacation pay due and owing to the Employees
        as of the Closing Date, and such amount shall be an adjustment to the
        Purchase Price to the Buyer’s credit.

5.7 Workers’ Compensation. On or before Closing,
  the Seller shall provide a clearance certificate or other similar documentary
  evidence from the Workers’ Compensation Board of British Columbia certifying
  that there are no outstanding assessments, penalties, fines, levies, charges,
  surcharges or other amounts due or owing to those authorities. The Seller shall
  be and remain responsible for any and all Worker’s Compensation assessments,
  penalties, fines, levies, charges, surcharges or other amounts due or owing
  prior to the Closing Date and shall indemnify and agree to hold harmless the
  Buyer as provided in Article 6. Notwithstanding the foregoing, the Seller shall
  be entitled to any rebate, refund or other payment which is owed or may become
  due under workers' compensation or similar legislation in respect of any period
  prior to Closing.

 5.8 GST Election. The Seller and the Buyer shall elect
  jointly pursuant to the provisions of subsection 167(1) of the Excise Tax
  Act by completing at or prior to Closing all prescribed forms and related
  documents in such manner as is prescribed, so that for purposes of the Excise
  Tax Act, no GST is payable in respect of the purchase and sale of the Purchased
  Assets. The Buyer covenants that, at the time of Closing, it will file with
  Revenue Canada, Customs and Excise, the joint election made under section 167
  of the Excise Tax Act by registered mail, and will provide the Seller
  with written confirmation of such filing.

 5.9 Consents Required in Contracts etc. The Buyer shall
  be responsible for obtaining any consent to assignment, which may be required
  for the assignment or transfer of any Contract, Lease or Equipment Lease included
  in the Purchased Assets in connection with the consummation of transactions
  contemplated by this Agreement including the Delta Consent. If the Buyer is
  unable to obtain such consents, such Contract, Lease or Equipment Lease shall
  not be assigned and the Seller shall, to the extent legally possible, hold its
  right, title and interest in, to and under such Contract, Lease or Equipment
  Lease in trust for the benefit of the Buyer until such consent is obtained until
  October 31st, 2002 or such further date as the Parties shall in writing
  mutually agree, on which date this Agreement and all obligations of the Seller
  under this Section 5.9 shall cease and determine.

 5.10 Section 22 Election. The Buyer and the Seller
  agree to elect, in the prescribed manner and form and within the prescribed
  time to have section 22 of the Income Tax Act apply to the transfer of
  the accounts receivable comprised in the Assets and transferred under this Agreement.
  The parties shall file all necessary elections or filings under all corresponding
  provincial tax legislation to make the transfer of the accounts receivable transferred
  hereunder effective on the same basis as contemplated by section 22 of the Income
  Tax Act.

 5.11 PST Clearance Certificate. The Seller agrees to
  deliver to the Buyer forthwith following the Closing Date a clearance certificate
  under section 99 of the Social Services Tax Act (British Columbia). 

 

 20

 6. INDEMNIFICATION  

 6.1 Indemnification by Seller. If the transactions
  contemplated by this Agreement are consummated, save and except for the claims
  of Kurt MacKinnon et.al. as set forth above, the Seller agrees to indemnify
  and hold the Buyer harmless against and in respect of any loss, damage, claim,
  cost or expense whatsoever, including any and all incremental out-of-pocket
  costs, including, without limitation, all reasonable legal and accounting fees,
  which the Buyer may incur, suffer or be required to pay, pursuant to any claim,
  demand, action, suit, litigation, charge, complaint, prosecution or other proceeding
  (collectively, a “Claim”) that may be made or asserted against or
  affect the Buyer, provided, however, that the subject matter of any such Claim
  relates to or arises out of or in connection with the following matters:

	 	(a) 	any misrepresentation or breach of any warranty,
        agreement, covenant or obligation of the Seller contained in this Agreement
        or in any agreement, schedule, certificate or other document required
        to be entered into or delivered by the Buyer;

	 	 	

	 	(b)	 failure by the Seller to comply with its agreements
        under Section 3.3;

	 	 	

	 	(c)	 any amount payable to or in respect of any Employee
        for which the Seller is responsible under Section 5.6;

	 	 	

	 	(d)	 any and all liability of any nature whatsoever under
        any Worker’s Compensation or similar legislation or regulation in
        any jurisdiction for the period prior to the Effective Date, including
        any experience rating assessments, surcharges or levies based on or related
        to the Seller’s record or history of workplace injuries; and 

	 	 	

	 	(e)	 the Excluded Assets or the Excluded Liabilities;

The obligation of the Seller to indemnify the Buyer as set
  forth in Paragraph 6.1 (a) for any loss, damage, claim, cost or expense shall
  be subject to the limitation period referred to in Section 4.5 with respect
  to survival of representations and warranties.

 6.2 Indemnification by Buyer. If the transactions contemplated
  by this Agreement are consummated, the Buyer agrees to indemnify and hold the
  Seller harmless against and in respect of any loss, damage, claim, cost or expense
  whatsoever, including any and all incremental out-of-pocket costs, including,
  without limitation, all reasonable legal and accounting fees, which the Seller
  may incur, suffer or be required to pay, pursuant to any claim, demand, action,
  suit, litigation, charge, complaint, prosecution or other proceeding of any
  nature or kind whatsoever (collectively a “Claim”) that may be made
  or asserted against or affect the Seller, provided, however, that the subject
  matter of any such claim relates to or arises out of or in connection with the
  following matters:

	 	(a)	 any misrepresentation or breach of any warranty,
        agreement, covenant or obligation of the Buyer contained in this Agreement
        or in any agreement, schedule, certificate or other document required
        to be entered into or delivered by the Buyer;

	 	 	

	 	(b)	 the Buyer’s failure to fulfil the terms of
        any of the Contracts, Equipment Leases or Leases which are assigned to
        the Buyer and which the Buyer has assumed pursuant to this Agreement;

	 	 	

	 	(c)	 failure by the Buyer to comply with its agreements
        under Section 3.3;

	 	 	

	 	(d)	 any amount payable to or in respect of any Employee
        for which the Buyer is responsible under Section 5.6;

 

 21

	 	(e) 	the Purchased Assets or the Assumed Liabilities.
	 	 	 
	 	(f)	 failure by the Buyer to file the election pursuant to section 167 of
      the Excise Tax Act in the manner and within the time limits prescribed
      under the Excise Tax Act.

The obligation of the Buyer to indemnify the Seller as set
  forth in Section 6.2 (a)) for any loss, damage, claim, cost or expense shall
  be subject to the limitation period referred to in Section 4.5 with respect
  to survival of representations and warranties.

 6.3 Claims by Third Parties. 

	 	(a)	 For the purposes of this Section 6.3 “Third
        Party Claim” means any demand which has been made on, or communicated
        to, the Seller or the Buyer by or on behalf of any Person other than the
        persons mentioned above in this definition and which, if maintained or
        enforced, might result in a loss, liability or expense of the nature described
        in either Section 6.1 (a) or Section 6.2 (a).

	 	 	

	 	(b) 	Promptly upon receipt by either the Buyer or the
        Seller (the “Indemnitee”) of notice of any Third Party Claim
        in respect of which the Indemnitee proposes to demand indemnification
        from the other party to this Agreement (the “Indemnitor”),
        the Indemnitee shall forthwith give notice to that effect to the Indemnitor.

	 	 	

	 	(c) 	The Indemnitor shall have the right, exercisable
        by giving notice to the Indemnitee not later than 30 days after receipt
        of the notice described in Section 6.3 (b), to assume the control of the
        defence, compromise or settlement of the Third Party Claim, provided that:

	 	 	 

	 	 	(i)	 the Indemnitor shall first deliver to the Indemnitee
        its written consent to be joined as a party to any action or proceeding
        relating thereto; and,

	 	 	 	

	 	 	(ii) 	Indemnitor shall at the Indemnitee’s request
        furnish it with reasonable security against any costs or other liabilities
        to which it may be or become exposed by reason of such defence, compromise
        or settlement.

	 	 	 	 

	 	(d)	 Upon the assumption of control by the Indemnitor
        as aforesaid, the Indemnitor shall, at its expense, diligently proceed
        with the defence, compromise or settlement of the Third Party Claim at
        the Indemnitor’s sole expense, including employment of counsel reasonably
        satisfactory to the Indemnitee, and in connection with such proceedings,
        the Indemnitee shall co-operate fully, but at the expense of the Indemnitor,
        to make available to the Indemnitor all pertinent information and witnesses
        under the Indemnitee’s control and to make such assignments and
        take such other steps as in the opinion of counsel for the Indemnitor
        are necessary to enable the Indemnitor to conduct such defence, provided
        always that the Indemnitee shall be entitled to reasonable security from
        the Indemnitor for any expense, costs or other liabilities to which it
        may be or may become exposed by reason of such co-operation.

	 	 	 
	 	(e) 	The final determination of any such Third Party Claim,
        including all related costs and expenses, will be binding and conclusive
        upon the Parties as to the validity or invalidity, as the case may be,
        of such Third Party Claim against the Indemnitor.

	 	 	

	 	(f) 	Should the Indemnitor fail to give notice to the
        Indemnitee as provided in Section 6.3 (b), the Indemnitee shall be entitled
        to make such settlement of the Third Party Claim as in its sole discretion
        may appear advisable, and such settlement or any other final determination
        of the Third Party Claim shall be binding upon the Indemnitor.

 

 22

 6.4 Details of Claims. With respect to any claim provided
  for under Sections 6.1 (a) and 6.2 (a), no indemnity under this Agreement shall
  be sought unless written notice providing reasonable details of the reasons
  for which the indemnity is sought is provided to the Seller or the Buyer, as
  the case may be, before the expiration of the limitation dates provided for
  in Sections 6.1 (b) and 6.2 (b), respectively, as applicable.

 6.5 Goods and Services Tax Gross-up on Indemnification.
  Where an amount is payable by the Buyer or Seller as indemnification pursuant
  to the terms of this Agreement and the Excise Tax Act provides that GST
  is deemed to have been collected by the payee thereof, the amount so payable
  as determined without reference to this paragraph (the “Indemnification
  Amount”) shall be increased by an amount equal to the rate of GST applied
  to the Indemnification Amount in accordance with the Excise Tax Act.

 6.6 Threshold of Claims. The obligations of
  either the Buyer or the Seller, as the case may be, to indemnify the other Party
  pursuant to the terms of this Agreement for a breach of a misrepresentation
  or warranty shall only apply to the extent that the claims in respect of which
  such Party has given an indemnity exceed $100,000.00 in the aggregate, in
  which case the indemnity shall cover all such claims including the first $10,000.00
  thereof. 

 7. CONDITIONS PRECEDENT TO THE PERFORMANCE BY THE BUYER
  AND THE SELLER OF THEIR OBLIGATIONS UNDER THIS AGREEMENT

 7.1 Buyer’s Conditions. The obligation of the
  Buyer to complete the transactions contemplated by this Agreement shall be subject
  to the satisfaction of, or compliance with, at or before the Closing Time, each
  of the following conditions precedent (each of which is hereby acknowledged
  to be inserted for the exclusive benefit of the Buyer and may be waived by it
  in whole or in part):

	 	(a)	 Truth and Accuracy of Representations of the Seller
        at the Closing Time — All of the representations and warranties
        of the Seller made in or under this Agreement, including, without limitation,
        the representations and warranties made by the Seller and set forth in
        Section 4.1, shall be true and correct as at the Closing Time and with
        the same effect as if made at and as of the Closing Time (except as such
        representations and warranties may be affected by the occurrence of events
        or transactions expressly contemplated and permitted by this Agreement).
      

	 	 	

	 	(b) 	Performance of Obligations — The Seller shall
        have performed or complied with, in all material respects, all their obligations,
        covenants and agreements under this Agreement.

	 	 	

	 	(c) 	Receipt of Closing Documentation — All instruments
        of conveyance and other documentation and assurances relating to the sale
        and purchase of the Purchased Assets including, without limitation, assignments
        of the Contracts, the Leases, the Equipment Leases and the Licences (and
        consents to such assignments, where required), bills of sale, motor vehicle
        transfers and documentation, and all actions and proceedings taken on
        or prior to the Closing in connection with performance by the Seller of
        its obligations under this Agreement shall be satisfactory to the Buyer
        and its counsel, acting reasonably, and the Buyer shall have received
        copies of all such documentation or other evidence as it may reasonably
        request in order to establish the consummation of the transactions contemplated
        under this Agreement and the taking of all corporate proceedings in connection
        under those transactions in compliance with this Section 7.1 (c), in form
        (as to certification and otherwise) and substance satisfactory to the
        Buyer and its counsel.

	 	 	

	 	(d) 	Closing Documentation — Without limiting the
        generality of Section 7.1(c), the Buyer shall have received at or before
        the Closing Time sufficient duly executed original copies of the 

 

 23

	 	 	following:
	 	 	 

	 	 	(i) 	certified copy of a resolution of the shareholders
        of the Seller approving this Agreement and the transactions contemplated
        under this Agreement;

	 	 	 	

	 	 	(ii)	 a certificate of Mah as a senior officer of the
        Seller concerning residence of the Seller, the matters referred to in
        Section 7(1)(a) and (b) and confirming that all conditions under this
        Agreement in favour of the Seller have been either fulfilled or waived;

	 	 	 	

	 	 	(iii) 	certificates of good standing of the Seller and CCCC;
      

	 	 	 	

	 	 	(iv)	 bill of sale; 

	 	 	 	

	 	 	(v) 	General Assignment; 

	 	 	 	

	 	 	(vi)	 Statement of Adjustments; 

	 	 	 	

	 	 	(vii)	 election under section 22 of the Income Tax Act;
      

	 	 	 	

	 	 	(viii)	 election under subsection 167(1) of the Excise
        Tax Act;

	 	 	 	 

	 	(e) 	Opinion of Counsel for Seller — The Buyer shall
        have received a opinion dated the Closing Date, in form and substance
        satisfactory to the Buyer, from the Seller’s Solicitor, confirming
        the matters warranted in Sections 4.1(a), 4.1(d), 4.1(e) and 4.1(g) .
        In giving such opinion, counsel to the Seller may rely on a certificate
        of Mah, in his capacity as the sole director and officer of the Seller,
        as to factual matters.

	 	 	

	 	(f) 	Consents to Assignment — All consents or approvals
        from or notifications to any lessor or other third Person required under
        the terms of any of the Contracts, Equipment Leases, the Leases or the
        Licences with respect to their assignment to the Buyer, or otherwise in
        connection with the consummation of the transactions contemplated under
        this Agreement, shall have been duly obtained or given, as the case may
        be, on or before the Closing Time.

	 	 	

	 	(g) 	Consents, Authorizations and Registrations —
        All consents, approvals, orders and authorizations of or from governmental
        or regulatory authorities required in connection with the completion of
        the transactions contemplated in this Agreement shall have been obtained
        on or prior to the Closing Time including, without limitation, the Matrimonial
        Consent, the consent of the Minister of Transport to the transfer of the
        Airport Certificate, and the consent of the Corporation of Delta to the
        assignment of the Lease.

	 	 	

	 	(h) 	Certificate as to Status of Assets — Mah shall
        have executed and delivered to the Buyer, in a form satisfactory to the
        Buyer, a certificate stating that, as of the Closing Date, there has been
        no Material damage to or adverse change in the condition of the Purchased
        Assets.

	 	 	

	 	(m) 	No Actions Taken Restricting Sale — No action
        or proceeding in Canada by law or in equity shall be pending or threatened
        by any person, firm, corporation, government, governmental authority,
        regulatory body or agency to enjoin, restrict or prohibit the purchase
        and sale of the Purchased Assets contemplated under this Agreement.

	 	 	

	 	(o) 	Employment Offers Accepted — The Buyer shall
        be satisfied that senior employees of the Business will accept the offer
        of employment by the Buyer under Section 5.6.

 

 24

 7.2 Seller’s Conditions. The obligations of the
  Seller to complete the transactions contemplated by this Agreement shall be
  subject to the satisfaction of, or compliance with, at or before the Closing
  Time, each of the following conditions precedent (each of which is hereby acknowledged
  to be inserted for the exclusive benefit of the Seller and may be waived by
  the Seller in whole or in part):

	 	(a) 	Truth and Accuracy of Representations of the Buyer at Closing Time —
      All of the representations and warranties of the Buyer made in or under
      this Agreement, including, without limitation, the representations and warranties
      made by the Buyer and set forth in Section 4.2 of this Agreement, shall
      be true and correct in all material respects as at the Closing Time and
      with the same effect as if made at and as of the Closing Time (except as
      such representations and warranties may be affected by the occurrence of
      events or transactions contemplated and permitted by this Agreement) and
      the Seller shall have received a certificate from a senior officer of the
      Buyer confirming the truth and correctness in all material respects of such
      representations and warranties of the Buyer.
	 	 	 
	 	(b) 	Performance of Agreements — The Buyer shall have performed or complied
      with, in all respects, all their other obligations, covenants and agreements
      under this Agreement.
	 	 	 
	 	(c)	 Closing Documents — The Seller shall have received at or before
      the Closing Time sufficient duly executed original copies of the following:
	 	 	 

	 	 	(i) 	certified copy of a resolution of the board of directors
        of the Buyer approving this Agreement and the transactions contemplated
        under this Agreement;

	 	 	 	

	 	 	(ii)	 a certificate of a senior officer of the Buyer concerning
        residence of the Buyer, the matters referred to in Section 7.2(a) and
        (b), and confirming that all conditions under this Agreement in favour
        of the Buyer have been either fulfilled or waived;

	 	 	 	

	 	 	(iii)	 certificate of good standing of the Buyer;

	 	 	 	

	 	 	(iv)	 Assumption Agreement regarding the Mah Debt and
        the OFC Debt; 

	 	 	 	

	 	 	(v)	 Statement of Adjustments; 

	 	 	 	

	 	 	(vi)	 election under section 22 of the Income Tax Act;
      

	 	 	 	

	 	 	(vii)	 election under subsection 167(1) of the Excise
        Tax Act.

	 	 	 	 

	 	(d) 	No Actions Taken Restricting Sale — No action
        or proceeding in Canada by law or in equity shall be pending or threatened
        by any person, firm, corporation, government, governmental authority,
        regulatory body or agency to enjoin, restrict or prohibit the purchase
        and sale of the Purchased Assets contemplated under this Agreement.

	 	 	

	 	(e) 	Payment of Purchase Price — The Buyer shall
        have tendered to the Seller a solicitor’s certified trust cheque
        for the amount of the Deposit.

	 	 	

	 	(f) 	Consents, Authorizations and Registrations —
        All consents, approvals, orders and authorizations of or from governmental
        or regulatory authorities required in connection with the completion of
        the transactions contemplated in this Agreement shall have been obtained
        on or prior to the Closing Time including, without limitation, all required
        Landlord consents.

7.3 Failure to Satisfy Conditions. If any condition
  set forth in Sections 7.1 or 7.2 is not satisfied on or 

 

 25

 before the Closing Time, the Party entitled to the benefit
  of such condition (the “First Party”) may terminate this Agreement
  by notice in writing to the other Party and in such event the First Party shall
  be released from all obligations under this Agreement, and unless the First
  Party can show that the condition or conditions which have not been satisfied
  and for which the First Party has terminated this Agreement are reasonably capable
  of being performed or caused to be performed by the other Party then the other
  Party shall also be released from all obligations under this Agreement, except
  that the First Party shall be entitled to waive compliance with any such conditions,
  obligations or covenants in whole or in part if it sees fit to do so without
  prejudice to any of its rights of termination in the event of non-performance
  of any other condition, obligation or covenant, or whole or in part.

 7.4 Destruction or Expropriation. Up to the Closing
  Time, all risk of loss or damage by fire or other cause or hazard to the Purchased
  Assets shall remain with the Seller and the Seller shall hold all insurance
  policies and any proceeds thereof in trust for the Seller and the Buyer. If,
  prior to the Closing Time, there occurs any Material destruction or damage by
  fire or other cause or hazard to any of the Purchased Assets, or if the Purchased
  Assets or any Material part of them are expropriated or forcefully taken by
  any governmental authority or if notice of intention to expropriate a Material
  part of the Purchased Assets has been filed in accordance with applicable legislation,
  then the Buyer may, at its option;

	 	(a)	 terminate this Agreement by notice to the Seller;
        or

	 	 	

	 	(b) 	elect to complete the purchase and sale of the Purchased
        Assets, in which event all insurance proceeds or expropriation proceeds,
        as the case may be, shall be assigned and/or paid by the Seller to the
        Buyer; or

	 	 	

	 	(c) 	elect to complete the purchase and sale subject to
        the Purchase Price being reduced to reflect such change or expropriation,
        such reduction to be based on the Book Value of the Assets.

8. CLOSING ARRANGEMENTS

 8.1 Time and Place of Closing. The completion of the
  transactions contemplated by this Agreement shall take place at the Closing
  Time on the Closing Date at the offices of the Seller’s Solicitors, or
  at such other place as may be agreed upon between the Parties.

 8.2 Closing Arrangements. At the Closing Time, upon
  fulfillment of all the conditions under this Agreement which have not been waived
  in writing by the Buyer or the Seller respectively:

	 	(a) 	Purchase and Sale of Purchased Assets — The
        Seller shall sell and the Buyer shall purchase the Purchased Assets and
        for the Purchase Price payable under this Agreement.

	 	 	

	 	(b) 	Delivery of Closing Documents — The Parties
        shall respectively deliver the Closing Documents.

	 	 	

	 	(c) 	Actual Possession — The Seller shall deliver
        actual possession of the Purchased Assets to the Buyer.

	 	 	

	 	(d) 	Payment of Purchase Price — On the fulfillment
        of the foregoing terms of this Article 8, the Buyer shall pay and satisfy
        the Purchase Price as provided in Section 3.1.

8.3 Tender. Any tender of documents or money hereunder
  may be made upon the Parties or their respective counsel and money may be tendered
  by official bank draft drawn upon a Canadian chartered bank or by negotiable
  cheque payable in Canadian funds and certified by a Canadian chartered bank
  or trust company.

 

 26

 9 NOTICES  

 9.1 Notices. Any notice, direction or other instrument
  required or permitted to be given by either party under this Agreement shall
  be in writing and shall be sufficiently given if delivered personally, sent
  by prepaid first class mail or transmitted by telecopier or other form of electronic
  communication during the transmission of which no indication of failure of receipt
  is communicated to the sender:

	 	(a)	 in the case of a notice to the Seller at: 

      Gregory G. Dureault Esq., 

        1400 – 1055 West Hastings Street 

        Vancouver, B.C. V6E 2E9 

	 	 	 
	 	(b)	 in the case of a notice to the Buyer at: 

       John Briner Esq., 

        Suite 302, 850 West Hastings St. 

        Vancouver, BC V6C 1E1 

      

9.2 Deemed Delivery. Any such notice, direction or other
  instrument, if delivered personally, shall be deemed to have been given and
  received on the date on which it was received at such address, or, if sent by
  mail, shall be deemed to have been given and received on the date which is five
  days after which it was mailed, provided that if either such day is not a Business
  Day, then the notice shall be deemed to have been given and received on the
  Business Day next following such day. Any notice transmitted by telecopier or
  other form of electronic communication shall be deemed to have been given and
  received on the date of its transmission provided that if such day is not a
  Business Day or if it is received after the end of normal business hours on
  the date of its transmission at the place of receipt, then it shall be deemed
  to have been given and received at the opening of business in the office of
  the recipient on the first Business Day next following the transmission thereof.
  If normal mail service, telex, telecopier or other form of electronic communication
  is interrupted by strike, slowdown, force majeure or other cause, a notice,
  direction or other instrument sent by the impaired means of communication will
  not be deemed to be received until actually received, and the party sending
  the notice shall utilize any other such service which has not been so interrupted
  to deliver such notice.  

 10. GENERAL

 10.1 Expenses. All costs and expenses (including, without
  limitation, the fees and disbursements of legal counsel) incurred in connection
  with this Agreement and the transaction contemplated under this Agreement shall
  be paid by the Party incurring such expenses.

 10.2 Time. Time shall be of the essence of this Agreement.

 10.3 Assignment/Successors and Assigns. Neither this
  Agreement nor any rights or obligations under this Agreement shall be assignable
  by either Party without the prior written consent of the other Party. Subject
  to that condition, this Agreement shall enure to the benefit of and be binding
  upon the Parties and their respective heirs, executors, administrators, successors
  (including any successor by reason of amalgamation of any Party) and permitted
  assigns.

 10.4 Further Assurances. Each Party agrees that upon
  the written request of any other Party, it will do all such acts and execute
  all such further documents, conveyances, deeds, assignments, transfers and the
  like, and will cause the doing of all such acts and will cause the execution
  of all such further documents as are within its power to cause the doing or
  execution of, as the other Party may from time to time reasonably request be
  done and/or executed as may be required to consummate the transactions contemplated
  under this Agreement or as 

 

 27

 may be necessary or desirable to effect the purpose of this
  Agreement or any document, agreement or instrument delivered under this Agreement
  and to carry out their provisions or to better or more properly or fully evidence
  or give effect to the transactions contemplated under this Agreement, whether
  before or after the Closing.

 10.5 Public Notices. All notices to third parties and
  all other publicity concerning the transactions contemplated by this Agreement
  shall be jointly planned and coordinated by the Seller and the Buyer and no
  Party shall act unilaterally in this regard without the prior approval of the
  other Party (such approval not to be unreasonably withheld), except where required
  to do so by law or by the applicable regulations or policies of any provincial
  or Canadian or other regulatory agency of competent jurisdiction or any stock
  exchange.

 10.6 Counterparts. This Agreement may be executed by
  the Parties in separate counterparts each of which when so executed and delivered
  shall be an original, and all such counterparts shall together constitute one
  and the same instrument.

 IN WITNESS WHEREOF the Parties, intending to be bound,
  have duly executed this Agreement as of the date first above written.

 CMC INVESTMENTS, INC. 

 By: 

____________________________________________

  (Authorized Signatory) 

 

  CANADIAN CHEQUE CASHING CORPORATION 

 By: 

____________________________________________

  (Authorized Signatory) 

 

  MONEYFLOW CAPITAL INC. 

 By: 

 ____________________________________________

  (Authorized Signatory) 

 

 ____________________________________________

  WAYNE MAH 

 

 28

 NORTH AMERICAN GENERAL RESOURCES CORP. 

 By: 

 ____________________________________________

  (Authorized Signatory)EXHIBIT 10.1

 

GLA/HNP
Form

 

 

«GrantDate»

 

 

«FirstName»«LastName»

«Address1»

«City»,
«State» «PostalCode»

 

Re:                               Grant of Restricted
Units

 

Dear «FirstName»:

 

I am pleased to inform you that you have been granted «Units» Phantom Units as of the above date pursuant
to the Company’s 2005 Long-Term Incentive Plan (the “Plan”).  In addition, in tandem with each Phantom Unit
you have been granted a distribution equivalent right (a “DER”). The terms and
conditions of this grant are as set forth below.

 

1.                       Subject to
the further provisions of this Agreement, your Phantom Units shall vest (become
payable in the form of one Common Unit of Plains All American Pipeline, L.P.
for each Phantom Unit) as follows: (i) 30% shall vest upon the later to occur
of the May 2007 Distribution Date and the date on which the Partnership pays a
quarterly dividend of $0.65 per unit, (ii) 30% shall vest upon the later to
occur of the May 2009 Distribution Date and the date on which the Partnership
pays a quarterly distribution of $0.70 per unit, and (iii) 40% shall vest upon
the later to occur of the May 2010 Distribution Date and the date on which the
Partnership pays a quarterly distribution of $0.75 per unit.  Any Phantom Units that remain unvested, and
all associated DERs (whether or not vested), as of the May 2011 Distribution
Date (after giving effect to the distribution on such date) shall be forfeited.

 

2.                       Subject to
the further provisions of this Agreement, your DERs shall vest (become payable
in cash) as follows: (i) 30% shall vest upon and effective with the earlier to
occur of the May 2007 Distribution Date and the date on which the Partnership
pays a quarterly dividend of $0.65 per unit, (ii) 15% shall vest upon and
effective with the earlier to occur of the May 2008 Distribution Date and the
date on which the Partnership pays a quarterly distribution of $0.675 per unit,
(iii) 15% shall vest upon and effective with the earlier to occur of the May
2009 Distribution Date and the date on which the Partnership pays a quarterly
distribution of $0.70 per unit, (iv) 20% shall vest upon and effective with the
earlier to occur of the May 2010 Distribution Date and the date on which the
Partnership pays a quarterly distribution of $.725 per unit, and (iv) 20% shall
vest upon and effective with the earlier to occur of the May 2010 Distribution
Date and the date on which the Partnership pays a quarterly distribution of
$0.75 per unit.

 

3.                       Your DERs
shall not accrue payments prior to vesting.

 

 

4.                       Any
distribution level required for vesting under paragraphs 1 or 2 above shall be
proportionately reduced or increased for any split or reverse split,
respectively, of the Units, or any event or transaction having similar effect.

 

5.                       Upon
vesting of any Phantom Units, an equivalent number of DERs will expire.  Any such DERs that are vested prior to, or
that would vest as of, the Distribution Date on which the Phantom Units vest,
shall be payable on such Distribution Date prior to their expiration.

 

6.                       In the
event of the termination of your employment with the Company and its Affiliates
(other than in connection with a Change in Status or by reason of your death or
“disability,” as defined in paragraph 7 below), all of your then outstanding
DERs (regardless of vesting) and Phantom Units shall automatically be forfeited
as of the date of termination; provided, however, that if the Company or
its Affiliates terminate your employment other than a Termination for Cause,
any unvested Phantom Units that have satisfied all vesting criteria as of the
date of termination but for the passage of time shall be deemed nonforfeitable
on the date of termination, and shall vest on the next following Distribution
Date; provided, further, that any DERs associated with the unvested,
nonforfeitable Phantom Units described in the preceding proviso shall not be
forfeited on the date of termination, but shall be payable and shall expire in
accordance with paragraph 5 above.

 

7.                       In the
event of termination of your employment with the Company and its Affiliates by
reason of your death or your “disability” (a physical or mental infirmity that
impairs your ability substantially to perform your duties for a period of
eighteen months or that the Company otherwise determines constitutes a “disability”),
all of your then outstanding Phantom Units and tandem DERs shall be deemed 100%
nonforfeitable on such date, and such Phantom Units shall vest in accordance
with paragraph 1 and paragraph 2 above.

 

8.                       In the
event of a Change of Status, all of your then outstanding Phantom Units and tandem
DERs shall be deemed 100% nonforfeitable on such date, and such Phantom Units
shall vest in full upon the next Distribution Date.

 

9.                       Upon
payment pursuant to a DER, you agree that the Company may withhold any taxes
due from your compensation as required by law. 
Upon vesting of a Phantom Unit, you agree that the Company may withhold
any taxes due from your compensation as required by law, which (in the sole
discretion of the Company) may include withholding a number of Common Units
otherwise payable to you.

 

As used herein, the phrase “Distribution Date”
means the date, in any given month and year, on which the Partnership pays a
quarterly distribution.

 

 

The phrase “Change in Status” means the occurrence, within three months
prior to or one year following a Change of Control, of any of the following
circumstances:  (A) any termination by
the Company of your employment other than a Termination for Cause, (B) without
your consent, any removal of you from, or any failure to re-elect you to, the
positions held by you  (or substantially
equivalent positions) immediately prior to the change that may constitute a
Change in Status, or (C) any reduction in your base salary or (D) any material
reduction in your fringe benefits.

 

The phrase “Change of Control” means, and shall be deemed to have
occurred upon the occurrence of, one or more of the following events:  (i) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Partnership or the Company to any Person
and/or its Affiliates, other than to the Partnership or the Company, including
any employee benefit plan thereof; (ii) the consolidation, reorganization,
merger or any other similar transaction involving (a) a Person other than the
Partnership or the Company and (b) the Partnership, the Company or both, (iii)
any person, including any partnership, limited partnership, syndicate or other
group deemed a “person” for purposes of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended, becoming the beneficial owner,
directly or indirectly, of 50% or more of the membership interest in the
Company, (iv) the persons who own membership interests in the Company on the
date hereof cease to beneficially own, directly or indirectly, more than 50% of
the membership interest in the Company, or (v) the Company ceasing to be the
general partner of the general partner of the Partnership.

 

The phrase “Termination for Cause” shall mean severance of your
employment with the Company or its Affiliates based on your (i) failure to
perform your job function in accordance with standards described to you in
writing, or (ii) violation of the Company’s Code of Business Conduct (unless
waived in accordance with the terms thereof), in each case, with the specific
failure or violation described to you in writing.

 

The “Company” refers to Plains All American GP LLC.  The “Partnership” refers to Plains All
American Pipeline, L.P.

 

Terms used herein that are not defined herein
shall have the meanings set forth in the Plan or, if not defined in the Plan,
in the Third Amended and Restated Agreement of Limited Partnership of Plains
All American Pipeline, L.P., as amended (the “Partnership Agreement”). By
signing below, you agree that the Phantom Units and DERs granted hereunder are
governed by the terms of the Plan. 
Copies of the Plan and the Partnership Agreement are available upon
request.  Please execute and return this
Agreement to me.  The attached copy of
this Agreement is for your records.

 

 

	
   

  	
  PLAINS AAP,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: PLAINS
  ALL AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Tim Moore

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President & General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  «FirstName»

  	
   

  
	
   

  	
   

  
	
  SSN:

  	
     «SSN»

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

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