Document:

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                                                                   EXHIBIT 10.12

                             AVATECH SOLUTIONS, INC.

                             STOCKHOLDERS' AGREEMENT

         THIS STOCKHOLDERS' AGREEMENT (the "Agreement") is made as of the first
day of April, 1998, by and among those shareholders whose names are set forth as
signatories to this Agreement (collectively referred to hereinafter as the
"Stockholders"), and AVATECH SOLUTIONS, INC., a Delaware corporation (the
"Corporation" or "Avatech").

                              EXPLANATORY STATEMENT

         A. The parties hereto believe that it is desirable and in their mutual
best interests to control the ownership of the Common Stock and that the
execution of this Agreement will help facilitate the continuous, harmonious and
effective management of the affairs, policies, and operations of the
Corporation.

         B. It is the intention of the parties, by executing this Agreement, to
restrict the transfer of all shares of Common Stock and to provide a market for
the sale of Common Stock shares upon the occurrence of certain events as
provided herein.

         C. Certain of the Stockholders, as listed in ATTACHMENT A attached
hereto and incorporated by reference herein, are employees of the Corporation.
The Corporation recognizes that the loss of the services of any employed
Stockholder would constitute a serious impairment to the effective conduct of
the Corporation's business, and hopes that by executing this Agreement, each
employed Stockholder will be induced to remain in the Corporation's employ.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the matters set forth in this
Explanatory Statement and the mutual covenants, promises, agreements,
representations and warranties of the parties hereto, the parties hereto do
hereby covenant, promise, agree, represent, and warrant as follows:

         1. DEFINITIONS. Capitalized words and phrases used in this Agreement
have the following meanings:

                  1.1. "Accountants" means the independent certified public
accountants examining or reviewing the books and accounts of the Corporation at
the relevant time; if there be none, then the independent certified public
accountants who last performed such services for the Corporation.

                  1.2. "Act" means the Securities Act of 1933, as amended.
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                  1.3. "Agreed Value" means the per share dollar amount last
established by the Board of Directors of Avatech for purposes of the 1998
Employee Stock Purchase Plan ("ESPP"). Notwithstanding anything contained in
this Agreement to the contrary, if the date of the most recent determination of
Agreed Value is more than eighteen (18) months prior to the date on which the
death of the Decedent (as such term is defined below) occurred, the Disability
occurred, the Transfer Notice was received, the Involuntary Transfer Notice was
received, or the Termination occurred, Agreed Value shall be determined by the
Board of Directors, or, if the Board of Directors so chooses, by a valuator
retained by the Corporation. Notwithstanding anything contained in this
Agreement to the contrary, if the shares were purchased by an employee pursuant
to the ESPP within six (6) months of the date on which the death of the Decedent
(as such term is defined below) occurred, the Disability occurred, the Transfer
Notice was received, or the Involuntary Transfer Notice was received, or the
Termination occurred, Agreed Value shall be the ESPP Value.

                  1.4. "Agreement" means this Stockholders' Agreement, as
amended from time to time.

                  1.5. "Book Value" means the dollar amount value, computed on
the accrual basis of accounting, and in accordance with generally accepted
accounting principles, of the net aggregate stockholders' equity of the
Corporation, divided by the total number of shares of Common Stock outstanding
on the date of the computation (as hereinafter provided). Notwithstanding
anything contained in this Agreement to the contrary, the computation of Book
Value shall be subject to the following provisions:

                           1.5.1. In no event shall the determination of Book
         Value include any proceeds, collected or collectible by the
         Corporation, under any policy or policies of life or disability
         insurance insuring the life or disability of a Stockholder as a result
         of the death or disability of a Stockholder.

                           1.5.2. No additional allowance of any kind shall be
         made for the goodwill, trade names or any other intangible asset or
         asses (the "Intangible Assets") of the Corporation other than the
         aggregate dollar amount for any of such Intangible Assets appearing on
         the most recent balance sheet of the Corporation prior to the date set
         forth in Section 1.5.3 for determining Book Value.

                           1.5.3. Book Value shall be computed and determined as
         of the end of the last full year immediately preceding the year in
         which either the death of the Decedent occurred, the Disability
         occurred, the Transfer Notice was received, the Involuntary Transfer
         Notice was received, or the Termination occurred.

                           1.5.4. In no event shall any reserve for contingent
         liabilities, in excess of the amount of such reserve appearing on the
         most recent balance sheet of the Corporation prior to the date set
         forth in Section 1.5.3 for determining Book Value, be treated as a
         liability for purposes of determining Book Value.

                           1.5.5. In no event shall any adjustment be made to
         Book Value as a

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         result of any event occurring subsequent to the valuation date set
         forth in Section 1.5.3, whether or not that event constitutes an
         adjustment to the federal or state income tax liability of the
         Corporation.

                           1.5.6. Book Value shall be determined by the
         Accountants. The determination by the Accountants shall, for purposes
         of this Agreement, be final, conclusive and binding upon each of the
         parties hereto.

                           1.5.7. Anything contained in this Agreement to the
         contrary notwithstanding, Book Value shall be calculated for the
         purposes of this Agreement on an accrual basis even if the Corporation
         shall have utilized different accounting principles for any prior
         period.

                  1.6. "Closing" means the Decedent Closing Date, the Transfer
Closing Date, the Involuntary Transfer Closing Date, the Disability Closing
Date, or the Termination Closing Date, where there is no distinction among them
in the context.

                  1.7. "Code" means the Internal Revenue Code of 1986, as
amended from time to time (or any corresponding provisions of any succeeding
law).

                  1.8.  "Common Stock" means the Corporation's ten million,
(10,000,000) authorized shares of common stock, with par value of $.01 per
share.

                  1.9.  "Corporation" means Avatech Solutions, Inc., a Delaware
corporation.

                  1.10. "Days" means all calendar days, inclusive of Saturdays,
Sundays and days which are legal holidays under the laws of the United States or
the State.

                  1.11. "Disability" means, with respect to a Stockholder who is
an employee of the Corporation or its subsidiaries at the time the Disability
occurs, the first to occur of:

                           1.11.1. A Stockholder being declared legally
         incompetent under the laws of the State, in which event the date of the
         Disability shall be deemed to be the date of such declaration.

                           1.11.2. The Corporation receiving a written opinion
         from a physician designated by the Corporation to the effect that a
         Stockholder has incurred a mental or physical condition that can
         reasonably be expected to prevent such Stockholder from carrying out
         the Stockholder's material duties for the Corporation for a period of
         six months or longer from the date of such opinion, in which event the
         date of the Disability shall be deemed to be the date of the
         physician's written opinion; each Stockholder hereby covenants and
         agrees to cooperate with any physician so designated by the Corporation
         to determine whether such Stockholder has suffered a Disability,
         provided that any physician so designated shall consult with any
         physician designated by, or on behalf of, such Stockholder.

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                           1.11.3. The Corporation being entitled to receive a
         payment under any Disability Policy with respect to a Stockholder, in
         which event the date of the Disability shall be deemed to be the date
         on which the Stockholder was first deemed disabled pursuant to the
         Disability Policy.

                           1.11.4. A Stockholder being deemed disabled under the
         provisions of the Social Security Act, 42 U.S.C. Section 416, in which
         event the date of the Disability shall be deemed to be the first date
         on which the Stockholder satisfied the requirements contained therein.

                  1.12 "Disability Policy" means any disability insurance policy
insuring against the Disability of a Stockholder and set forth on the Disability
Insurance Schedule attached hereto as Schedule 1.12.

                  1.13. "ESPP Value" means the actual amount paid by the
employee per share for his or her shares which actual amount is 85% of the fair
market value at the time of purchase.

                  1.14. "Event of Bankruptcy" means with respect to any
Stockholder, any of the following:

                           1.14.1. Filing a voluntary petition in bankruptcy or
         for reorganization or for the adoption of an arrangement under the
         Bankruptcy Code (as now or in the future amended) or an admission
         seeking the relief therein provided.

                           1.14.2. Making a general assignment for the benefit
         of creditors.

                           1.14.3. Consenting to the appointment of a receiver
         for all or substantially all of a Stockholder's property.

                           1.14.4. In the case of the filing of an involuntary
         petition in bankruptcy, an entry of an order for relief.

                           1.14.5. The entry of a court order appointing a
         receiver or trustee for all or a substantial part of a Stockholder's
         property, without the Stockholder's consent.

                           1.14.6. The assumption of custody or sequestration by
         a court of competent jurisdiction of all or substantially all of a
         Stockholder's property.

                  1.15. "Involuntary Transfer" means any nonvolitional Transfer
of Common Stock whatsoever and shall be deemed to occur if:

                           1.15.1. A Stockholder is subject to an Event of
         Bankruptcy.

                           1.15.2. A Stockholder's shares of Common Stock are to
         be Transferred pursuant to: (i) a divorce or separation decree,
         property settlement or any other form of

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         judicially approved marital arrangement; (ii) the foreclosure of any
         lien or other security interest; (iii) a judicial sale; or (iv)
         otherwise by operation of law.

                  1.16. "Life Policy" means any life insurance policy insuring
the life of a Stockholder and set forth on the Life Insurance Schedule attached
hereto as Schedule 1.16.

                  1.17. "Termination" means the termination of a Stockholder's
employment with the Corporation for any reason whatsoever other than death or
Disability, the Stockholder with respect to whom a Termination occurs is
referred to as the "Terminated Stockholder." It is understood that the
Termination provisions hereof shall not be applicable to non-employee
stockholders.

                  1.18. "Note" means the Corporation's unsecured non-negotiable
promissory note in the form attached hereto as Exhibit 1.18.

                  1.19. "Person" means any individual, partnership, corporation,
trust or other entity.

                  1.20. "Security" has the meaning set forth in the Act.

                  1.21. "Seller" means the personal representatives of the
Decedent, the Disabled Stockholder, the Transferor, the Involuntary Transferor,
the Terminated Stockholder or the Terminated Stockholder, where there is no
distinction among them in the context.

                  1.22. "Shares" means the Decedent Shares, the Transferor
Shares, the Involuntary Transferor Shares, the Disability Shares, the
Termination Shares or the Termination Shares, where there is no distinction
among them in the context.

                  1.23. "State" means the State of Delaware.

                  1.24. "State Acts" means the securities laws of any state or
the District of Columbia, as amended from time to time.

                  1.25. "Stockholder" means a Person owning of record any shares
of Common Stock and executing this Agreement or a counterpart thereof.

                  1.26. "Transfer" means any sale, hypothecation, pledge,
assignment or other transfer, be it voluntary or involuntary to a Stockholder or
third person, inter vivos, testamentary, by operation of the laws of devise and
descent or any other laws, and, when used as a verb, to voluntarily or
involuntarily, to a Stockholder or third person, inter vivos, testamentary, by
operation of the laws of devise and descent or any other laws, sell,
hypothecate, pledge, assign or otherwise transfer.

                  1.27. "Voluntary Transfer" means any Transfer of Common Stock
other than an Involuntary Transfer.

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         2. EXPLANATORY STATEMENT: RESTRICTIONS ON TRANSFER.

                  2.1. The matters set forth in the Explanatory Statement are
incorporated by reference in, and made a substantive part of, this Agreement.

                  2.2. Each Stockholder covenants, promises and agrees that he
shall not Transfer all, any portion of, or any interest or rights in, the shares
of Common Stock owned of record or beneficially by such Stockholder except
pursuant to the terms and provisions of this Agreement. Each Stockholder hereby
acknowledges the reasonableness of the restrictions on Transfers imposed by this
Agreement in view of the purposes of the Corporation and the relationships of
the Stockholders.

                  2.3. Strict compliance shall be required with each and every
provision of this Agreement and particularly with the procedures set forth
herein with respect to any Transfer of any shares of Common Stock. It is
understood and agreed by the parties hereto that no Stockholder shall have the
right or power to Transfer any shares of Common Stock except in strict
compliance with the procedures set forth in this Agreement. The attempted
Transfer of any shares of Common Stock by any Stockholder shall be deemed
invalid, null and void, and of no force or effect, and the transferee of any
such shares shall not be entitled to vote such shares, receive dividends on such
shares or have any other rights in and with respect to such shares unless such
Transfer is made in conformance with and pursuant to the terms of this
Agreement.

         3. ESTATE AND GIFT TAX PLANNING EXCEPTION. Notwithstanding anything in
this Agreement to the contrary, any Stockholder may Transfer any or all of his
Common Stock to a family member (or a trust for the benefit of such persons)
pursuant to this Section. (For the purposes of this exception, a "family member"
is defined as any husband, wife, son, daughter, grandson, or granddaughter of
the Stockholder). Upon such Transfer, the family member shall hold the shares of
Common Stock received in such Transfer subject to the terms of this Agreement,
and shall execute, seal and deliver a document substantially in the form of
ATTACHMENT B attached hereto, binding him to the terms and conditions of this
Agreement as an additional Stockholder party.

         4. DEATH OF A STOCKHOLDER.

                  4.1. Upon the death of a Stockholder (the "Decedent"), the
Decedent's personal representatives (the "Representatives") shall have the
option to retain ownership of the shares or sell all of the shares of Common
Stock owned of record and beneficially by the Decedent at the time of the
Decedent's death (the "Decedent Shares") to the Corporation or other
Stockholders in accordance with this Agreement. In the event that the
Representatives desire to sell the shares, Representatives shall first provide
written notice to the Corporation and the Corporation shall have the option, but
not the obligation, to purchase the shares. In the event that the Corporation
elects to purchase the shares, the Corporation shall, by written notice
addressed to the Representatives, fix a closing date (the "Decedent Closing
Date") for such purchase. The Decedent Closing Date shall be neither earlier
than ninety (90) Days after the Representatives' written notice is received by
the Corporation. If the Corporation elects to purchase the Decedent

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Shares, the Corporation shall purchase the Decedent Shares on the Decedent
Closing Date at a price per share (the "Decedent Purchase Price") which shall be
equal to Agreed Value.

                  4.2. In the event that a Life Policy exists on the life of the
Decedent Stockholder, the dollar amount of the Decedent Purchase Price
multiplied by the number of Decedent Shares (the "Aggregate Decedent Purchase
Price") shall be paid in cash on the Decedent Closing Date to the extent of the
dollar amount of the net (i.e., after tax, including by way of example, any
alternative minimum tax liability imposed on the Corporation by virtue of its
receipt of such proceeds) cash proceeds received by the Corporation under the
Life Policy insuring the life of the Decedent (the "Net Life Insurance
Proceeds"). To the extent that the Net Life Insurance proceeds exceed the
Aggregate Decedent Purchase Price (the "Excess Insurance Proceeds"), the Excess
Insurance Proceeds shall belong to the Corporation and neither the Decedent nor
the Decedent's personal representatives shall have any right, title or interest
in or to the Excess Insurance Proceeds. In the event that the Aggregate Decedent
Purchase Price shall exceed the Net Life Insurance Proceeds (the "Decedent
Purchase Price Cash Shortfall"), the Corporation shall have the right to either:

                           4.2.1. Pay the Decedent Purchase Price Cash Shortfall
         in cash on the Decedent Closing Date; or

                           4.2.2. Elect prior to or on the Decedent Closing Date
         to pay the Decedent Purchase Price Cash Shortfall in installments as
         provided in Section 9 of this Agreement.

                  4.3 If the Corporation fails to exercise its option to
purchase the Decedent Shares, the Representatives shall continue to hold the
Decedent Shares subject to all of the terms and conditions of this Agreement.

         5. VOLUNTARY TRANSFER OF STOCK.

                  5.1. Subject to the restrictions on transferability imposed by
the Act and State Acts, Stockholder (individually, a "Transferor") shall be
permitted to Voluntarily Transfer all of the shares of Common Stock owned of
record and beneficially by the Transferor (the "Transferor Shares") to any other
Person (a "Transferee"), pursuant to a bona fide written offer (the "Transferee
Offer") by such Transferee to purchase all, but not less than all, of the
Transferor Shares for a purchase price denominated and payable in United States
dollars, in accordance with the provisions of this Section 5 of this Agreement.

                  5.2. Prior to any Voluntary Transfer of the Transferor Shares,
the Transferor shall first give the Corporation written notice (the "Transfer
Notice"). The Transfer Notice shall contain each of the following:

                           5.2.1. The identity of the Transferee.

                           5.2.2. A true, correct and complete copy of the
         Transferee Offer.

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                           5.2.3. An offer (the "Offer") by the Transferor to
         sell the Transferor Shares to the Corporation for a price per share
         (the "Transfer Purchase Price") equal to the lesser of Agreed Value or
         the per share price contained in the Transferee Offer.

                  5.3. The Offer shall be and remain irrevocable for a period
(the "Offer Period") ending at 11:59 P.M., local time at the Corporation's
principal office, on the ninetieth (90th) Day following the date the Transfer
Notice was received by the Corporation. At any time during the Offer Period, the
Corporation may accept the Offer by giving written notice to the Transferor of
such acceptance (the "Offeree Notice"). The Transferor shall not cast a vote as
a stockholder or as a director on the question of whether the Corporation shall
accept the Offer. In the event that the Offer is accepted by the Corporation,
the Offeree Notice shall fix a closing date (the "Transfer Closing Date") for
such purchase which shall be neither earlier than ten (10) nor later than ninety
(90) Days after the expiration of the Offer Period.

                  5.4. In the event that the Offer is accepted by the
Corporation, the dollar amount of the Transfer Purchase Price multiplied by the
number of Transferor Shares (the "Aggregate Transfer Purchase Price") shall be
paid in cash on the Transfer Closing Date unless the Corporation shall elect
prior to or on the Transfer Closing Date to pay the Aggregate Transfer Purchase
Price in installments pursuant to the provisions of Section 9 of this Agreement.

                  5.5. If the Corporation shall reject the Offer or fail to
accept the Offer (within the time and in the manner specified in this Section 5
of this Agreement), then the Transferor shall be free for a period (the "Free
Transfer Period") of thirty (30) Days from the expiration of the Offer Period to
Transfer the Transferor Shares to the Transferee, for the same or greater price
and on the same terms and conditions as set forth in the Transfer Notice. Such
Transfer shall be: (i) subject to any additional restrictions on Transfers that
may be imposed by this Agreement, by any other agreement between all of the
parties hereto, by statute, law, ordinance, rule or regulation or by the Charter
or By-Laws of the Corporation; (ii) permitted, provided that the purchase of the
Transferor Shares will not result in the imposition of a personal holding
company tax or other similar Federal or state punitive tax on the Corporation;
and (iii) permitted, provided that the Transferee and, if the Transferee is
married the spouse of the Transferee, shall execute, seal and deliver a document
substantially in the form of ATTACHMENT B attached hereto (the additional
requirements set forth in clauses (i)--(iii) of this sentence are referred to
collectively as the "Additional Restrictions"). If the Transferor does not
Transfer the Transferor Shares within the Free Transfer Period, the Transferor's
right to Transfer the Transferor Shares pursuant to this Section 5 of this
Agreement shall cease and terminate.

                  5.6. Any Transfer by a Transferor after the last day of the
Free Transfer Period or made without strict compliance with the terms,
provisions and conditions of this Section 5 of this Agreement and the other
terms, provisions and conditions of this Agreement shall be absolutely null and
void.

                  5.7. In the event that the Corporation elects to accept the
Offer and the Transferor should die or become an Involuntary Transferor, a
Disabled Stockholder, a Terminated Stockholder prior to the Transfer Closing
Date, the provisions of this Section 5 shall

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be and remain operative, and the provisions of Sections 4, 6, 7, or 8, as the
case may be, shall be inapplicable.

                  5.8. Notwithstanding the provisions of this Section 5 to the
contrary, but provided that each of the Additional Restrictions is complied
with, any Stockholder may at any time, and from time to time, Transfer all or
any portion of the shares of Common Stock owned by such Stockholder to any other
Stockholder.

                  5.9 If the Corporation or any Stockholder is purchasing any
Common Stock of a Stockholder who has transferred a portion of his Stock to a
family member or a trust pursuant to this exception, then the Corporation or
such Stockholder shall purchase the Common Stock held by the family member in
the same manner and upon the same terms as the Stock of the transferring
Stockholder's Stock is being purchased.

         6. INVOLUNTARY TRANSFER OF STOCK.

                  6.1. In the event of an Involuntary Transfer of any shares of
Common Stock owned of record or beneficially by any Stockholder (the
"Involuntary Transferor Shares"), the Corporation shall have the option (the
"Involuntary Transfer Purchase Option") to purchase all, but not less than all,
of the Involuntary Transfer Shares for a price per share (the "Involuntary
Transfer Purchase Price") equal to Agreed Value.

                  6.2. The Involuntary Transfer Purchase Option shall be and
remain irrevocable for a period (the "Involuntary Transfer Period") ending at
11:59 P.M., local time at the Corporation's principal office on the thirtieth
(30th) Day following the date of the Corporation's receipt of notice (the
"Involuntary Transfer Notice") from the Stockholder owning the Involuntary
Transfer Shares (the "Involuntary Transferor") or any Person acquiring or to
acquire any interest in the Involuntary Transfer Shares (the "Involuntary
Transferee"). At the earliest practicable opportunity, the Involuntary
Transferor covenants and agrees to furnish the Involuntary Transfer Notice to
the Corporation or cause the Involuntary Transfer Notice to be furnished to the
Corporation. The Involuntary Transfer Notice shall set forth the nature and
terms of the Involuntary Transfer, the number of shares of Common Stock involved
therein, and shall identify the Involuntary Transferee.

                  6.3. At any time during the Involuntary Transfer Period, the
Corporation may elect to exercise the Involuntary Transfer Purchase Option by
giving written notice of its election to the Involuntary Transferor and the
Involuntary Transferee. The Involuntary Transferor shall not cast a vote as a
stockholder or as a director on the question of whether the Corporation shall
elect to exercise the Involuntary Transfer Purchase Option.

                  6.4. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option, the Corporation's notice of such election
shall fix a closing date (the "Involuntary Transfer Closing Date") for such
purchase which shall be not earlier than five (5) Days after the date of such
notice of election, nor later than thirty (30) Days after the expiration of the
Involuntary Transfer Period.

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                  6.5. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option, the dollar amount of the Involuntary
Transfer Purchase Price multiplied by the number of Involuntary Transferor
Shares (the "Aggregate Involuntary Transfer Purchase Price") shall be paid in
cash on the Involuntary Transfer Closing Date.

                  6.6. If the Corporation fails to exercise the Involuntary
Transfer Purchase Option, the Involuntary Transfer Shares may be Involuntarily
Transferred free and clear of this Agreement.

                  6.7. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option and the Involuntary Transferor should die
or become a Transferor, a Disabled Stockholder, or a Terminated Stockholder
prior to the Involuntary Transfer Closing Date, the provisions of this Section 6
shall be and remain operate, and the provisions of Sections 4, 5, 7, or 8, as
the case may be, shall be inapplicable.

         7. DISABILITY OF A STOCKHOLDER.

                  7.1 Provided that a Stockholder shall not have terminated
full-time employment with the Corporation for any reason other than Disability,
upon the Disability of a Stockholder employed by the Corporation at the time the
Disability occurs (the "Disabled Stockholder"), the Corporation shall have the
option to purchase (the "Disability Purchase Option"), and the Disabled
Stockholder shall have the obligation to sell, all of the shares of Common Stock
owned of record and beneficially by the Disabled Stockholder at the time of the
Disability (the "Disability Shares") for a price per share equal to the Agreed
Value (the "Disability Purchase Price").

                  7.2. The Disability Purchase Option shall be and remain
irrevocable for a period (the "Disability Transfer Period") ending at 11:59
P.M., local time at the Corporation's principal office on the ninetieth (90) Day
following the date of the Corporation's receipt of notice (the "Disability
Transfer Notice") from the Disability Stockholder. At the earliest practicable
opportunity, the Disability Stockholder covenants and agrees to furnish the
Disability Transfer Notice to the Corporation. The Disability Transfer Notice
shall set forth the nature of the disability and the number of shares of Common
Stock involved therein.

                  7.3. At any time during the Disability Transfer Period, the
Corporation may elect to exercise the Disability Purchase Option by giving
written notice of its election to the Disability Stockholder. The Disability
Stockholder shall not cast a vote as a stockholder or as a director on the
question of whether the Corporation shall elect to exercise the Disability
Purchase Option.

                  7.4. In the event that the Corporation elects to exercise the
Disability Purchase Option, the Corporation's notice of such election shall fix
a closing date (the "Disability Closing Date") for such purchase which shall be
not earlier than five (5) Days after the date of such notice of election, nor
later than thirty (30) Days after the expiration of the Disability Transfer
Period.

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                  7.5. If the Corporation fails to exercise the Disability
Purchase Option, the Disabled Stockholder shall continue to hold Disability
Shares subject to all the terms and conditions of this Agreement.

                  7.6. The dollar amount of the Disability Purchase Price
multiplied by the number of Disability Shares (the "Aggregate Disability
Purchase Price") shall be paid in installments as provided in Section 9 of this
Agreement.

                  7.7. In the event that the Disabled Stockholder should die or
become a Transferor, an Involuntary Transferor, or a Terminated Stockholder
after the date the Disability occurred but prior to the Disability Closing Date,
the provisions of Section 7 shall be and remain operative, and the provisions of
Sections 4, 5, 6, or 8, as the case may be, shall be inapplicable.

         8. TERMINATION OF EMPLOYMENT.

                  8.1. Immediately upon a Termination, the Terminated
Stockholder shall be deemed (without any further action required on the part of
the Terminating Stockholder) to have offered for sale (the "Termination Offer")
to the Corporation all of the shares of Common Stock owned of record and
beneficially by the Terminated Stockholder on the date of the Termination (the
"Termination Shares").

                  8.2. The Termination Offer shall be deemed made by the
Terminated Stockholder on the date the Terminated Stockholder receives written
notice from the Corporation of a Termination (the "Termination Notice"). The
Termination Offer shall be and remain irrevocable for a period (the "Termination
Offer Period") ending at 11:59 P.M., local time at the Corporation's principal
office on the sixtieth (60th) Day following the date the Termination Notice was
received. At any time during the Termination Offer Period, the Corporation may
accept the Termination Offer by giving written notice to the Terminated
Stockholder (the "Terminated Stockholder Notice") of such acceptance. The
Terminated Stockholder shall not cast a vote as a stockholder or as a director
on the question of whether the Corporation shall accept the Termination Offer.

                  8.3. In the event that the Termination Offer is accepted by
the Corporation, the Terminated Stockholder Notice shall fix a closing date (the
"Termination Closing Date") for such purchase which shall be not earlier than
ten (10) nor later than ninety (90) Days after the expiration of the Termination
Offer Period.

                  8.4. In the event that the Termination Offer is accepted by
the Corporation, the Corporation shall purchase the Termination Shares at a
price per share (the "Termination Purchase Price") equal to Agreed Value;
provided, however that Termination Shares purchased pursuant to the ESPP in the
six (6) months preceding Termination shall be purchased at a price per share
equal to the ESPP Value, and any Termination Shares purchased pursuant to the
ESPP more than six (6) months prior to the Termination shall be purchased at a
price per share equal to 85% of the Agreed Value. The dollar amount of the
Termination Purchase Price multiplied by the number of Termination Shares (the
"Aggregate Termination Purchase Price") shall be paid in

<PAGE>

cash on the Termination Closing Date unless the Corporation shall elect prior to
or on the Termination Closing Date to pay the Aggregate Termination Purchase
Price in installments pursuant to the provisions of Section 9 of this Agreement.

                  8.5. In the event that the Termination Offer is accepted by
the Corporation and the Terminated Stockholder should die or become a
Transferor, an Involuntary Transferor, or a Disabled Stockholder prior to the
Termination Closing Date, the provisions of this Section 8 shall be and remain
operative, and the provisions of Sections 4, 5, 6 or 7, as the case may be,
shall be inapplicable. In the event that the Termination Offer is rejected or
not accepted by the Corporation, the Terminated Stockholder shall continue to
hold the Termination Shares subject to all of the terms and conditions of this
Agreement.

         9. INSTALLMENT PAYMENTS.

                  9.1. In the event that the Corporation is to pay the Decedent
Purchase Price Cash Shortfall, the Aggregate Transfer Purchase Price, the
Aggregate Disability Purchase Price, the Aggregate Termination Purchase Price or
the Aggregate Termination Purchase Price (collectively, the "Aggregate
Indebtedness"), the Aggregate Indebtedness shall be paid by the Corporation in
twenty (20) equal quarterly installments by making, sealing and delivering the
Note to the personal representatives of the Decedent, the Transferor, the
Disabled Stockholder, the Terminating Stockholder or the Terminated Stockholder
(collectively, the "Payee").

                  9.2. In the event that a Payee should die prior to the payment
by the Corporation of the Aggregate Indebtedness, the terms of payment shall be
and remain those elected by the Corporation, and the provisions of Section 4
shall be inapplicable.

         10. INSOLVENCY.

                  If the Corporation shall not be permitted to purchase lawfully
all of the Shares or to pay, from time to time, any payment owed on the
Aggregate Indebtedness: (i) the entire amount which may lawfully be paid shall
be paid immediately on such account; and (ii) the surviving or remaining
Stockholders shall promptly take such steps as may be appropriate or necessary
to enable the Corporation to purchase and pay lawfully for all of the Shares
purchased under the applicable provisions of this Agreement, or to pay, from
time to time, any payment owing on the Aggregate Indebtedness including, by way
of illustration and not by way of limitation, an up-to-date appraisal of the
assets of the Corporation, or including in the Note such language as is required
by law to allow the Corporation to issue the Note (and the Payee hereby consents
to the inclusion of such language, if required, in the Note).

<PAGE>

         11. DELIVERY OF CERTIFICATES.

                  11.1. The Closing shall take place at 10:00 A.M. at the
offices of the Corporation. At the Closing, the stock certificate or
certificates representing the Shares shall be delivered to the Corporation duly
endorsed in blank, and the Corporation shall pay the purchase price therefor in
cash, or in the case of an election by the Corporation pursuant to Section 9 of
this Agreement, by making, sealing and delivering the Note.

                  11.2. If a tender of the purchase price in cash or by the Note
shall be refused, or the stock certificate or certificates representing the
Shares, duly executed, as aforesaid, shall not be so delivered, then the
Corporation is hereby appointed the attorney-in-fact of the Seller, with full
power and authority to execute, seal and deliver the stock certificate or
certificates in the Seller's name and stead, and to perform any and all other
and further acts desirable, necessary or proper in order to transfer such stock
certificate or certificates to the Corporation in accordance with the terms,
provisions and conditions of this Agreement.

                  11.3 The power of appointment granted pursuant to Section 11.2
hereof is a special power of appointment coupled with an interest and is
irrevocable and shall survive the death, Disability, legal incapacity, Event of
Bankruptcy or insolvency of a Stockholder.

         12. SECURITIES LAWS AND ENDORSEMENTS OF STOCK CERTIFICATES.

                  12.1. The Stockholders severally acknowledge that the Common
Stock acquired by them has not been registered under the Act, or any State Acts.
The Stockholders severally represent and warrant that they acquired their shares
of the Common Stock without a view to the offer, offer for sale, or the sale in
connection with the distribution of such shares of Common Stock and that they
will hold such shares of Common Stock indefinitely unless subsequently
registered under the Act and the State Acts or unless an exemption from such
registration is available and an opinion of counsel for the Corporation, in form
and substance satisfactory to the Corporation, is obtained to that effect. The
provisions of Sections 4, 5, 6, 7, and 8 hereof are in all respects subject to
the Act and the State Acts and all regulations promulgated thereunder. All
certificates representing shares of Common Stock subject to this Agreement shall
be legended conspicuously in substantially the following form:

          The securities represented by this stock certificate have been
          acquired pursuant to an investment representation on the part of the
          holder thereof and shall not be sold, pledged, hypothecated, donated,
          or otherwise transferred, whether or not for consideration, by the
          holder except upon the issuance to the Corporation of a favorable
          opinion of its counsel and the submission to the Corporation of such
          other evidence as may be satisfactory to counsel for the Corporation
          in either case to the effect that any such transfer shall not be in
          violation of the Securities Act of 1933, as amended, and applicable
          state securities law.

                  12.2. Each Stockholder realizes that the Corporation does not
file, and does not in the foreseeable future contemplate filing, periodic
reports in accordance with the provisions of

<PAGE>

Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended, and
also understands that the Corporation has not agreed to register any of its
securities for distribution in accordance with the provisions of the Act or to
take any actions respecting the obtaining of an exemption from registration for
such securities or any transaction with respect thereto. Hence, by virtue of
certain rules respecting "restricted securities" promulgated under the Act, the
Common Stock acquired by the Stockholders must be held indefinitely unless and
until subsequently registered under the Act and/or the State Acts or unless an
exemption from such registration is available, in which case the amount of the
Common Stock that may be sold may be limited.

                  12.3. Upon the execution of this Agreement, all certificates
representing shares of Common Stock owned of record and beneficially by the
Stockholders shall be conspicuously legended as follows:

          The shares of stock represented by this Certificate are restricted as
          to transfer by the terms, conditions and covenants of an Agreement
          with respect thereto dated as of the 1st day of April, 1998, a copy of
          which is on file with the Corporation. The Corporation will
          gratuitously furnish a copy of said Agreement to any party having a
          valid interest therein. Any transfer of stock other than in accordance
          with said Agreement shall be absolutely null and void.

         13. STOCK ISSUED IN THE FUTURE. Unless waived in writing by all of the
parties hereto, before any additional shares of Common Stock are issued in the
future to any person, other than a signatory to this Agreement, such person and
such person's spouse shall be required to become a party to and to execute,
acknowledge, seal and deliver a copy of this Agreement prior to the issuance of
such shares of Common Stock, and the certificates therefor shall be legended as
provided in Section 12 of this Agreement; thereafter, such person shall be
deemed to be a "Stockholder" for all purposes of this Agreement.

         14. AFTER-ACQUIRED STOCK. Whenever any Stockholder acquires any
additional shares of Common Stock other than the shares of Common Stock owned at
the time of the execution of this Agreement, such shares of Common Stock so
acquired shall be subject to the terms of this Agreement, and the certificates
therefor shall be surrendered to the Corporation for legending in accordance
with Section 12 of this Agreement, unless already so legended.

         15. TERMINATION. This Agreement shall be perpetual until the happening
of any of the events listed below, upon the first to occur of which all rights,
duties and obligations, other than the duties and obligations relating to
registration under or exemption from the Act and the State Acts, as set forth in
Section 12 of this Agreement, and rights, duties and obligations respecting
payment of the Aggregate Indebtedness to any one or more of the Stockholders,
shall cease:

                           15.1. The agreement in writing of all holders of the
         outstanding shares of Common Stock who are parties to, or who are bound
         by, this Agreement to terminate this Agreement.

<PAGE>

                           15.2. The dissolution of the Corporation.

                           15.3. The receipt by the Corporation from the
         Securities and Exchange Commission of an order of effectiveness as to
         any registration statement for the sale of any capital stock of the
         Corporation under the Act, whether or not such capital stock is owned
         by any of the Stockholders.

                           15.4. In the event that there shall be only one (1)
         owner of issued and outstanding shares of Common Stock of the
         Corporation.

                           15.5. In the event that there is a merger,
         consolidation or share exchange whereby the Corporation is not the
         surviving or successor corporation, as the case may be.

         16. AGREEMENT DRAFTED BY CORPORATION'S ATTORNEY. The Stockholders
severally acknowledge and represent that the Corporation's counsel, Shapiro and
Olander prepared this Agreement on behalf of and in the course of its
representation of the Corporation, as directed by the Board of Directors of the
Corporation. Further, each Stockholder severally acknowledges and represents
that he or she has been advised that a conflict of interest may exist between
his interests and those of the Corporation and the other Stockholders, has been
advised by the Corporation's counsel to seek the advice of independent counsel,
has had the opportunity to seek the advice of independent counsel, has been
advised by the Corporation's counsel that this Agreement may have tax
consequences, has received no representations from the Corporation's counsel
concerning the tax consequences of this Agreement, has been advised by the
Corporation's counsel to seek the advice of independent tax counsel, and has had
the opportunity to seek the advice of independent tax counsel.

         17. NOTICES. Any notice, payment, demand or communication required or
permitted to be given by any provision of this Agreement shall be in writing and
shall either be: (a) delivered personally to the party or to an officer of the
party to whom it is directed, in which case a signed receipt therefor shall be
received; or (b) sent by certified mail, return receipt requested, postage
prepaid, addressed as follows: if to the Corporation or if to the Stockholders,
at the addresses set forth below their several signatures, or to such other
address or addresses as may be designated from time to time in accordance with
this Section 17. Any such notice shall be deemed to be delivered, given and
received for all purposes of this Agreement as of: (i) the date noted on the
signed receipt if delivered personally; or (ii) the date deposited in a
regularly maintained receptacle for the deposit of the United States mail, if
sent by certified mail.

         18. ADDITIONAL ACTIONS AND DOCUMENTS.

                  18.1. Each of the parties hereto agrees to take or cause to be
taken such further actions, to execute, acknowledge, seal and deliver or cause
to be executed, acknowledged, sealed and delivered such further instruments and
documents and to use his reasonable efforts to obtain such requisite consents as
any other party may from time to time reasonably request in order to fully
effectuate the purposes and fulfill the intent of this Agreement.

<PAGE>

                  18.2. Any Stockholder who is an officer or director or both of
the Corporation and whose stock ownership in the Corporation shall terminate for
any reason whatsoever shall resign, effective upon such termination, as such an
officer and director, and shall resign as a trustee of any pension or profit
sharing plan of the Corporation or any other employee benefit plan of the
Corporation of which such Stockholder is a trustee.

         19. CONSENT AND APPROVAL OF SPOUSE. Each married party to this
Agreement agrees to obtain the consent and approval of his spouse, by the
execution, sealing and delivery of this Agreement by such spouse, to all the
terms, provisions and conditions of this Agreement. Should an unmarried party to
this Agreement become married, or should a married party to this Agreement
divorce and remarry after the date hereof, such party agrees to obtain the
consent and approval of such spouse, by the execution, sealing and delivery of
this Agreement by such spouse, to all of the terms, provisions and conditions of
this Agreement.

         20. INSERTION IN WILL. Each Stockholder agrees to insert in his Will a
provision, or to execute a Codicil thereto, directing and authorizing the
Stockholder's personal representatives to fulfill and comply with the terms,
provisions and conditions of this Agreement and to sell and transfer the
Stockholder's shares of Common Stock in accordance herewith.

         21. INSURANCE.

                  21.1. The Corporation shall have the right to make application
for, take out, and maintain in effect Life Policies whenever and in such amounts
as, in the opinion of the Board of Directors of the Corporation, may be required
for the benefit of the Corporation.

                  21.2. The Corporation shall have the right to make application
for, take out, and maintain in effect Disability Policies whenever and in such
amounts as, in the opinion of the Board of Directors of the Corporation, may be
required for the benefit of the Corporation.

                  21.3. Each Stockholder hereby covenants and agrees to take
such other and further actions and execute and deliver such other and further
documents necessary to enable the Corporation to acquire the Life Policies and
the Disability Policies.

         22. OPTION TO PURCHASE INSURANCE POLICIES. The Seller (or upon the
termination of this Agreement in accordance with Section 15, all of the
Stockholders) shall have the option to purchase any life insurance policies on
his life (or their lives) owned by the Corporation within ninety (90) Days after
the Closing (or date of the termination of this Agreement) by tendering to the
Corporation in cash, or by certified check, that dollar amount which is equal to
the sum of:

                  22.1. The interpolated terminal reserve of each such policy
and any paid up additions; plus

                  22.2. Any dividends or dividend accumulations credited to such
policy; plus

                  22.3. The unearned portion of any premium paid beyond the date
the policy is to be transferred; less

<PAGE>

                  22.4. Any indebtedness against such policy and any loan
interest accrued thereon as of the date of transfer.

In the event that a Stockholder exercises this option to purchase the life
insurance policies, the Corporation shall promptly deliver to such Stockholder
the policy or policies together with such written documents as are necessary to
convey full title in the policies to the Stockholder. If the Stockholder does
not exercise this purchase option, the Corporation may dispose of or deal with
the policy or policies in the manner it desires.

         23. INTEGRATION. This instrument contains the entire integrated
agreement among the parties and supersedes all prior oral or written agreements,
commitments or understandings with respect to the matters provided for herein,
and no modification shall be binding upon the party affected unless set forth in
writing and duly executed by each party affected.

         24. OWNERSHIP OF STOCK. Each Stockholder severally represents and
warrants that:

                  24.1. He or she is the sole owner of the number of shares of
Common Stock set forth opposite his or her signature hereto, evidenced by the
certificate number or numbers shown immediately after such number of shares.

                  24.2. All of such shares are free and clear of any and all
liens, claims, charges, security interests, or encumbrances of any kind.

                  24.3. He or she has the full and entire right, power and
authority to sell or otherwise transfer such shares in accordance with the
terms, provisions and conditions of this Agreement.

         25. BINDING EFFECT. Each of the covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of their respective heirs, guardians, personal and legal
representatives, successors and permitted assigns.

         26. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Delaware, except in regard to its choice of law.

         27. SPECIFIC PERFORMANCE. In the event of a breach of this Agreement,
any non-breaching party hereto may maintain an action for specific performance
against the party or parties hereto who are alleged to have breached any of the
terms, conditions, representations, warranties, provisions, covenants or
agreements herein contained, and it is hereby further agreed that no objection
to the form of action in any proceeding for specific performance of this
Agreement shall be raised by any party hereto so that such specific performance
of this Agreement may not be obtained by the aggrieved party. Anything contained
herein to the contrary notwithstanding, this Section 27 shall not be construed
to limit in any manner whatsoever any other rights and remedies that an
aggrieved party may have by virtue of any breach of this Agreement.

<PAGE>

         28. HEADINGS. The descriptive headings of the several sections and
subsections of this Agreement are inserted for convenience only, do not
constitute a substantive part of this Agreement, and are not intended to
describe, interpret, define, or limit the scope, extent or intent of this
Agreement as a whole, or any provision hereof. All schedules and exhibits
referred to in this Agreement are hereby deemed a substantive part of this
Agreement.

         29. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall be an original, but all of which shall together constitute one
document.

         30. CONSTRUCTION. Each and every term and provision of this Agreement
has been mutually agreed to and negotiated by the parties hereto, and shall be
construed simply according to its fair meaning and not strictly for or against
any party.

         31. SEVERABILITY. Each and every term and provision of this Agreement
is intended to be severable. If any term or provision hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not
affect the legality or validity of the remainder of this Agreement.

         32. TIME. Time is of the essence with respect to all aspects of this
Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed, sealed and
delivered this Agreement or caused this Agreement to be executed, sealed and
delivered on the day and year first hereinabove set forth.

<TABLE>
<S>                                         <C>

WITNESS/ATTEST:                             AVATECH SOLUTIONS, INC.

____________________________________        ____________________________________
V. Joel Nicholson, Secretary                Ronald Diegelman, President

____________________________________
Employee

</TABLE>

<Page>

                                  ATTACHMENT A

                          LIST OF EMPLOYEE STOCKHOLDERS

Gregory Blackwell
Keith Carter
Donald Claassen
Ronald Diegelman
Greg Dohrman
Henry Felton
Michael Mather
V. Joel Nicholson
Jean Schaeffer
Nancy Strand
Bill Zavadil

The following Employee Stockholders were added subsequent to April 1, 1998:

Peter Kiely                             Ronald E. Santos
Arno Poerner                            Travon O. Price
Charles Pietra                          Martin J. Vitiello
Frank Willson                           L. David Johnson
Richard Allen                           Beth O. MacLaughlin
Blake Balch                             John G. Pagano
Paul Cleveland                          James H. Ross
Lee Dailey                              Helen Baylin
Sharon Lechon                           Charles W. Turok
Heather Livesey                         Diana L. Hill
Laura Lyons                             Gerald P. Berns
Gary Ponsell                            Johhn J. Olson
Russ Rosene                             Kathleen E. Yarbrough
Jeanne Aarhus                           Nancy C. Booth
Eric Brandt                             Melody Craigmyle
Mark Cloyed                             Caryn B. Fink
John Dow                                Meara L. Gallaher
Matt Haney                              Rebecca L. Manion
Robert Henriksen                        Richard A. Feinies
Kevin Kuker                             Jonathan A. Hoebeke
William Mayfield                        Glenn M. Branch
Russell Patten                          John R. Jansen
Michael Peterson                        Frederick H. Stewart
Gary Raftery                            Dean McCarns

<Page>

Tim Strandberg                          Kevin G. Austin
Gary Tener                              Jonathan D. Rittling
Stephen Bamberger                       Kevin J. Knippa
Helen Baylin                            Charles Cullen
Earthcele Hall                          Timothy A. Strickland
David Johnson                           Kevin J. Heilmann
George Kriss                            R. Lee Dailey
Robert Lee                              David D. Meister
Dorothy Marsh                           Heather M. Livesey
Laurie Muldoon-Velez                    Laura M. Lyons
John Pagano                             Kristy L. Millette
James Ross                              Richard S. Boothman
Ronald Santos                           Lonnie W. Cumpton
Martin Vitiello                         Mark D. Farrow
Kenneth Ostermann
Richard France
Carl Deer
Ronald C. Myers
James Smith
Richard Banthin

<Page>

                                                                   Schedule 1.13

                          DISABILITY INSURANCE POLICIES

     The following are the Disability Policies designated for use in funding the
purchase of shares of common stock:

          1.   Insured:
               Insurance Company:
               Policy Number:

          2.   Insured:
               Insurance Company:
               Policy Number:

          3.   Insured:
               Insurance Company:
               Policy Number:

          4.   Insured:
               Insurance Company:
               Policy Number:

          5.   Insured:
               Insurance Company:
               Policy Number:

          6.   Insured:
               Insurance Company:
               Policy Number:

          7.   Insured:
               Insurance Company:
               Policy Number:

          8.   Insured:
               Insurance Company:
               Policy Number:

<Page>

                                                                   Schedule 1.16

                             LIFE INSURANCE POLICIES

     The following are the Life Policies designated for use in funding the
purchase of shares of common stock:

          1.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

          2.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

          3.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

          4.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

          5.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

          6.   Insured:
               Insurance Company
               Policy Number:
               Death Benefit:
               Type of Policy:

<Page>

                                                                    Exhibit 1.18

                         NON-NEGOTIABLE PROMISSORY NOTE

                                                             Baltimore, Maryland
$_____________                                               ______________,19

     FOR VALUE RECEIVED, AVATECH SOLUTIONS, INC., a corporation organized under
the laws of the State of Delaware (the "Corporation"), promises to pay to
_________________________________ (the "Holder") at or at such other place as
the Holder may from time to time designate in writing, the principal sum of
____________________________ Dollars ($___________), with interest payable
thereon as hereinafter set forth. Interest and principal shall be payable in
lawful money of the United States of America, which shall be legal tender in
payment of all debts, public and private, at the time of payment as follows:

     The Corporation shall repay the principal sum, together with interest at
the minimum rate of interest required by the Internal Revenue Code of 1986, as
amended, to preclude the imputation of interest (namely ______% per annum), in
twenty (20) equal quarterly installments of $__________ beginning on the
sixtieth (60th) day from the date hereof, and continuing until
_________________, _______, when the unpaid balance of the principal sum and all
unpaid interest thereon shall be paid in full.

     All payments received shall be applied first to the payment of accrued and
unpaid interest and any balance to the payment of principal. Interest shall be
computed on the basis of a 360-day year factor applied to actual days elapsed.

     The Corporation may prepay the principal sum in whole or in part at any
time without premium or penalty, by paying, in addition to the amount prepaid,
interest accrued to the date of prepayment.

     Upon default in any payment of interest or of principal and interest, such
unpaid amount shall bear interest thereafter at a rate which is at all times
equal to two percent (2%) per annum in excess of the then current rate of
interest under this Note until the default is cured.

     The Corporation also shall pay (i) a late charge of one-twentieth (1/20) of
any payment of interest or principal and interest provided above if such payment
is made more than fifteen (15) calendar days after the due date thereof and (ii)
prior to judgment, costs of collection, including a reasonable attorney's fee,
if this Note is referred to an attorney for collection after default, whether
suit be brought or not.

     The rights and remedies of the Holder provided herein shall be cumulative
and concurrent and may be pursued singularly, successively or together at the
sole discretion of the Holder, and may be exercised as often as occasion
therefor shall occur, and the failure to exercise any such right or remedy shall
in no event be construed as a waiver or release of the same.
<Page>

     In the event that anyone or more of the provisions of this Note shall for
any reason be held to be invalid, illegal or unenforceable, in whole or in part
or in any respect, or in the event that anyone or more of the provisions of this
Note operate or would prospectively operate to invalidate this Note, then and in
either of those events, such provision or provisions only shall be deemed null
and void and shall not affect any other provisions (or remaining part of the
affected provision) of this Note, and the remaining provisions (or remaining
part of the affected provision) of this Note shall remain operative and in full
force and effect and shall in no way be affected, prejudiced or disturbed
thereby.

     WITNESS the signature and seal of the Corporation by its duly authorized
officer as of the day and year first above written.

ATTEST:                                 AVATECH SOLUTIONS, INC.

By:                                     By:                               (SEAL)
   ------------------------------          -------------------------------
   V. Joel Nicholson, Secretary            Ronald Diegelman, President

<Page>

                                  ATTACHMENT B

                               TRANSFEREE CONSENT

     A.   TRANSFEREES. The undersigned, as a Transferee of Common Stock of the
Corporation pursuant to that certain Stockholders' Agreement dated April 1,
1998, hereby acknowledges and agrees that he or she has read and is familiar
with the Agreement and that he or she and his or her heirs, executors,
administrators, successors, assigns and any other transferee of any interest in
the Corporation's shares actually or beneficially owned by him shall be bound by
all of its provisions.

Witnesses:                        Name of Transferee                      Date

----------------------------      ----------------------------------    --------
----------------------------

----------------------------      ----------------------------------    --------
----------------------------

----------------------------      ----------------------------------    --------
----------------------------

     B.   SPOUSES OF TRANSFEREES. Each of the undersigned, being the spouse of a
Transferee who has signed paragraph A, hereby acknowledges that he or she has
read and is familiar with the provisions of the Stockholders' Agreement dated
April 1, 1998, and agrees to be bound thereby, including, by way of example, for
purposes of valuing the Common Stock for purposes of divorce, separation or
property settlement proceedings and to join therein to the extent, if any, that
his or her joinder may be necessary. The undersigned hereby agrees that his or
her spouse may join in any future amendment or modification of this Agreement
without any future signature, acknowledgement agreement or consent on his or her
part and further agrees that any interest which he or she may have in the shares
of stock in the Corporation owned directly or beneficially by his or her spouse
shall be subject to the provisions of this Agreement.

Witnesses:                                           Signature of Spouse

                                                                          (SEAL)
----------------------------            ----------------------------------
                                        Date:
----------------------------                  ----------------------------

                                                                          (SEAL)
----------------------------            ----------------------------------
                                        Date:
----------------------------                  ----------------------------

                                                                          (SEAL)
----------------------------            ----------------------------------
                                        Date:
----------------------------                  ----------------------------<Page>

                                                                    EXHIBIT 10.1

                              COMBINATION AGREEMENT

     This Agreement is made as of the 15th day of May, 2002

AMONG:

     SANCHEZ COMPUTER ASSOCIATES, INC.,
     a corporation existing under the laws of the Commonwealth of Pennsylvania

     ("SANCHEZ"),

     1518356 ONTARIO LIMITED,
     a corporation existing under the Business Corporations Act (Ontario)

     ("SUBCO"),

     SANCHEZ SOFTWARE, LTD.,
     a corporation existing under the laws of the State of Delaware

     ("SANCHEZ DELAWARE"),

     SPECTRA SECURITIES SOFTWARE INC.,
     a corporation existing under the Business Corporations Act (Ontario)

     ("SPECTRA"),

     JOHN C. MCLEOD, an individual who is a resident of Ontario, Canada

     ("JOHN MCLEOD"),

     THE 1998 MCLEOD FAMILY TRUST,
     a trust created under the laws of Ontario, Canada, by its trustees John
     McLeod and Sybilla McLeod

     (the "MCLEOD TRUST")

RECITALS:

     WHEREAS, John McLeod and the McLeod Trust are the sole owners of all of the
shares of outstanding capital stock of Eclipse VII Holdings Inc. ("ECLIPSE");
and

     WHEREAS, the parties intend that Sanchez acquire all of the shares of
outstanding capital stock of Spectra Securities Software Inc., a corporation
existing under the laws of the State of Delaware ("SPECTRA US"), and that
Sanchez Delaware acquire all of the shares of capital stock of Spectra
Securities Software Pty Ltd. ("SPECTRA AUSTRALIA") and Spectra Securities

<Page>

Software Limited ("SPECTRA UK") (each individually a "STOCK PURCHASE" and,
collectively, the "STOCK PURCHASES"); and

     WHEREAS, on the Business Day immediately after the consummation of the
Stock Purchases, the parties intend that Subco acquire all of the outstanding
capital stock of Eclipse and the Spectra Shares (other than those Spectra Shares
owned by Eclipse) and immediately thereafter on the same Business Day amalgamate
with Spectra and Eclipse (the "AMALGAMATION"), all of which will be effected by
way of a Plan of Arrangement pursuant to Section 182 of the OBCA (the
"ARRANGEMENT" and collectively with the Stock Purchases, the "TRANSACTIONS");
and

     WHEREAS, concurrently with the execution of this Agreement, certain holders
of Spectra Shares have entered into a Support Agreement with Sanchez pursuant to
which such holders have agreed, among other things, to vote in favour of the
Transactions contemplated by this Agreement at the Special Meeting.

     NOW THEREFORE IN CONSIDERATION of the mutual covenants in this Agreement,
and of other good and valuable consideration, the receipt and sufficiency of
which are acknowledged by each party, the parties hereto, intending to be
legally bound, agree as follows:

                           ARTICLE 1 - INTERPRETATION

1.1         DEFINITIONS

In this Agreement, unless there is something in the context or subject matter
inconsistent therewith:

"1933 ACT" means the United States Securities Act of 1933, as amended;

"1934 ACT" means the United States Securities Exchange Act of 1934, as amended;

"2001 EMPLOYEE BONUS" has the meaning set forth in Section 2.8(c) hereof;

"2001 EMPLOYEE BONUS HOLDBACK AMOUNT" means the product of (i) the quotient of
(A) the aggregate Bonus Consideration, divided by (B) the Purchase Price less
the Spectra Transaction Fees, multiplied by (ii) the Holdback Amount, all as set
forth in the sample calculation on Schedule 2.9;

"ACCEPTABLE SETTLEMENT" means either of the following: (i) a final,
non-appealable written order of a court of competent jurisdiction fully and
finally resolving any Disclosed Claim or (ii) any irrevocable settlement and
release agreement entered into fully and finally resolving a Disclosed Claim;

"ADJUSTED CLOSING DATE CASH" means the Cash as of the Closing Date (prior to
giving effect to the repayment of the VenGrowth Debentures), less the Aggregate
Spectra Subsidiary Purchase Price, one-half of the Spectra Insurance Premium,
the Disclosed Claim Settlement Amount and

                                       -2-
<Page>

the amount of any loan from any of the Companies to the McLeod Parties or
Eclipse that is repaid prior to Closing;

"AFFILIATE" has the meaning given to such term in Section 13(d) of the 1934 Act;

"AGGREGATE ADDITIONAL PAYMENTS" has the meaning set forth in Section 2.5(b)
hereof:

"AGGREGATE SUBSIDIARY PURCHASE PRICE" has the meaning set forth in Section 2.2
of this Agreement;

"AGREEMENT" means this Combination Agreement among the parties hereto, together
with all Schedules hereto, as amended or supplemented from time to time in
accordance herewith;

"AMALGAMATION" means the amalgamation of Spectra, Eclipse and Subco on the terms
and subject to the conditions set out in this Agreement and the Plan of
Arrangement;

"APPLICABLE LAWS" means with respect to Laws and in the context that refers to
one or more Persons, means those Laws that apply to that Person or Persons or
its or their business, undertaking, property or securities;

"ARRANGEMENT" means the arrangement to be effected under the provisions of
Section 182 of the OBCA and pursuant to the Plan of Arrangement, substantially
as included in the Articles of Arrangement, which includes the Amalgamation, as
set forth in the recitals to this Agreement;

"ARTICLES OF ARRANGEMENT" means the Articles of Arrangement to be filed in
connection with the Arrangement, the form of which is attached hereto as
Exhibit A.

"BALANCE SHEET DATE" has the meaning set forth in Section 3.1(o) hereof;

"BASE PURCHASE PRICE" has the meaning set forth in Section 2.5(a) hereof;

"BONUS CONSIDERATION" has the meaning set forth in Section 2.8(c) hereof;

"BONUS SURRENDER AGREEMENT" has the meaning set forth in Section 2.8(c)(i)
hereof;

"BOOKS AND RECORDS" means all files, documents, instruments, papers, books and
records of Spectra or its Subsidiaries, as the case may be, including without
limitation, financial statements, Tax Returns and related work papers and
letters from accountants, budgets, pricing guidelines, ledgers, journals, deeds,
title policies, customer lists, computer files and programs, retrieval programs,
operating data and plans and environmental studies and plans;

"BUSINESS" means the software development implementation, outsourcing and
related business currently conducted by Spectra and its Subsidiaries;

"BUSINESS CUSTOMER BASE" has the meaning set forth in Section 3.1(zzz) hereof;

"BUSINESS DAY" means any day other than (a) a Saturday or Sunday or (b) a
statutory or civic holiday in Toronto, Ontario or Philadelphia, Pennsylvania;

                                       -3-
<Page>

"BUSINESS INTELLECTUAL PROPERTY" has the meaning set forth in Section 3.1(cc)
hereof;

"CANADIAN JURISDICTIONS" has the meaning set forth in Section 3.1(ffff) hereof;

"CAP" has the meaning set forth in Section 3.5(c) hereof;

"CASH" means all of Spectra's and its Subsidiaries' cash and cash equivalents,
including cash which is subject to restrictions on use pursuant to financing
agreements or otherwise, in any currency, as reflected on the Books and Records;

"CASH OPTION" has the meaning set forth in Section 2.4(a) hereof;

"CERTIFICATE OF ARRANGEMENT" means the certificate of arrangement of Spectra to
be endorsed by the Director upon the filing of the Articles of Arrangement;

"CLAIM" means any written or oral demand, claim, suit, action, cause of action,
investigation, proceeding or notice by any Person, alleging actual or potential
Liability for any Loss;

"CLAIM NOTICE" has the meaning set forth in Section 3.5(b) hereof;

"CLOSING" means the consummation of the Arrangement on the Closing Date pursuant
to the provisions hereof;

"CLOSING CASH AMOUNT" has the meaning set forth in Section 2.5(a) hereof;

"CLOSING CERTIFICATE" has the meaning set forth in Section 2.10 hereof;

"CLOSING CONSIDERATION" has the meaning set forth in Section 2.5(b) hereof;

"CLOSING DATE" has the meaning set forth in Section 2.12 hereof;

"CLOSING NET DEBT ADJUSTMENT" has the meaning set forth in Section 2.5(a)
hereof;

"CLOSING PAYMENT FUND" has the meaning set forth in Section 2.7(c) hereof;

"CODE" means the INTERNAL REVENUE CODE OF 1986, as amended, of the United States
of America;

"COLLATERAL DOCUMENTS" has the meaning set forth in Section 3.1(k) hereof;

"COMPANIES" means Spectra and its Subsidiaries and "COMPANY" means any one of
them;

"COMPANY BENEFIT PLANS" means all employee benefit plans maintained or
contributed to by Spectra or any ERISA Affiliate, including employee benefit
plans within the meaning of Section 3(3) of ERISA, and any related or separate
contracts, plans, trusts, programs, policies, and arrangements, in each case
whether written or oral, and whether maintained by or binding upon Spectra or
any ERISA Affiliate, that provide rights or benefits of economic value to any
current or former employee of Spectra or any ERISA Affiliate or current or
former beneficiary, dependent or assignee of any such employee or former
employee;

                                       -4-
<Page>

"CONFIDENTIALITY AGREEMENT" means the confidentiality agreement between Spectra
and Sanchez dated as of November 21, 2001;

"CONLIN" means R. Gordon Conlin, acting in his individual capacity, and The 1998
Conlin Family Trust;

"CONTRACT" means any written or oral contract, agreement, arrangement,
commitment, note, bond, pledge, lease, mortgage, guaranty, indenture, license,
consulting agreement, supply contract, repair contract, distribution agreement,
purchase order, work order, job order, joint venture agreement, franchise,
technology and know-how agreement, employment agreement, instrument or any other
contractual commitment that is binding on any Person or its property;

"CONTROL PERIOD" has the meaning set forth in Section 4.12 hereof;

"CONVERTIBLE SECURITIES" means any options, warrants, rights, agreements or
securities enabling the holder thereof upon exchange, conversion or exercise to
acquire Spectra Shares, as the case may be;

"COPYRIGHTS" means registered copyrights, copyright applications and
unregistered copyrights;

"COURT" means the Ontario Superior Court of Justice;

"COURT ORDER" means any judgment, decree, edict, writ, injunction, award, order
or ruling of any Governmental Entity or of any arbitration or similar panel;

"CROESUS" has the meaning set forth in Section 3.1(b) hereof;

"CURRENT POLICIES" has the meaning set forth in Section 3.1(vvv) hereof;

"DEBENTURE PAYOFF AMOUNT" means a dollar amount equal to the aggregate of
principal, interest, fees and other amounts owing to VenGrowth under the
VenGrowth Debentures for payment in full of all obligations owing from Spectra
to VenGrowth on the Closing Date, including any prepayment penalties that may be
imposed in connection with the repayment of the VenGrowth Debentures at or
immediately after Closing;

"DEFAULT" means (a) a violation, breach or default, (b) the occurrence of an
event which, with the passage of time, the giving of notice or both, would
constitute a violation, breach or default, or (c) the occurrence of an event
which, with or without the passage of time, the giving of notice or both, would
give rise to a right of damages, specific performance, termination,
cancellation, renegotiation or acceleration (including, without limitation, the
acceleration of payment);

"DEPOSITARY" means CIBC Mellon Trust Company or such other institution as
Sanchez may select;

"DEVELOPERS" has the meaning set forth in Section 3.1(jj) hereof;

"DIRECTOR" means the Director appointed under Section 278 of the OBCA;

                                       -5-
<Page>

"DISCLOSED CLAIM" means any claims and assertions listed in Schedule 3.1(sss)
hereto;

"DISCLOSED CLAIM SETTLEMENT AMOUNT" means the amount payable to any Third
Parties pursuant to an Acceptable Settlement that is obtained prior to the
Closing Date;

"DISSENTING SHARES" has the meaning set forth in Section 2.6(a) hereof;

"ECLIPSE" has the meaning set forth in the recitals to this Agreement;

"ECLIPSE CASH OPTION" has the meaning set forth in Section 2.4(b) hereof;

"ECLIPSE COLLATERAL DOCUMENTS" has the meaning set forth in Section 3.1A(d)
hereof;

"ECLIPSE PURCHASE PRICE" has the meaning set forth in Section 2.5(a.1) hereof;

"ECLIPSE SHARE OPTION" has the meaning set forth in Section 2.4(b) hereof;

"ECLIPSE SHAREHOLDERS" means John McLeod and the McLeod Trust, the holders of
all of the Eclipse Shares;

"ECLIPSE SHARES" means the outstanding capital stock of Eclipse, including, but
not limited to, the common shares, Class A special shares, the Class B special
shares and Class C special shares;

"EDS" means EDS Canada Inc.;

"EFFECTIVE DATE" means the date shown on the Certificate of Arrangement issued
by the Director, giving effect to the Arrangement;

"EFFECTIVE TIME" means 12:01 a.m. (Toronto time) on the Effective Date;

"ELECTION DEADLINE" means the time specified in the Letter of Transmittal and
Election Form as the deadline for a Spectra Shareholder to elect the Share
Option or the Cash Option, but in no event less than four Business Days prior to
the Effective Date;

"EMPLOYEE SHAREHOLDERS AGREEMENT" means the Shareholders Agreement dated as of
May 5, 2000, among the parties set forth in Exhibit B;

"EMPLOYMENT AGREEMENTS" means the employment agreements among Spectra and the
parties stipulated in Sections 5.3(f) and 5.5(f) hereof;

"ENCUMBRANCE" means any mortgage, lien (including federal, state and local tax
liens), security interest, pledge, negative pledge, encumbrance, assessment,
title retention agreement, restriction or restraint on transfer, defect of
title, charge in the nature of a lien or security interest, or option (whether
consensual, statutory or otherwise) or any conditional sale contract, title
retention contract or other contract to give any of the foregoing;

"ENVIRONMENTAL LAWS" means all Applicable Laws, including applicable common
laws, relating to the protection of the environment and employee and public
health and safety;

                                       -6-
<Page>

"ERISA" means the United States Employee Retirement Income Security Act of 1974,
as amended;

"ERISA AFFILIATE" shall mean (i) any corporation included with Spectra in a
controlled group of corporations within the meaning of Section 414(b) of the
Code; (ii) any trade or business (whether or not incorporated) which is under
common control with Spectra within the meaning of Section 414(c) of the Code;
(iii) any member of an affiliated service group of which Spectra is a member
within the meaning of Section 414(m) of the Code; or (iv) any other person or
entity treated as an affiliate of Spectra under Section 414(o) of the Code;

"ESCROW ACCOUNT" has the meaning set forth in Section 2.9(a) hereof;

"ESCROW AGENT" means CIBC Mellon Trust Company;

"ESCROW AGREEMENT" means the agreement among Spectra, the Escrow Agent, Sanchez,
John McLeod, the McLeod Trust, Sanchez Delaware, the Shareholders'
Representative and Subco stipulated under Section 2.9(a) hereof in regard to the
Escrow Account;

"EXPORT/IMPORT CLAIM" has the meaning set forth in Section 3.1(bbbb) hereof;

"EXPORT/IMPORT LAWS" means all U.S. or foreign federal, state and local laws and
regulations relating to the export or import of any items (commodities, software
or technology), and all laws and regulations relating to customs, export
controls, embargoes, quotas, anti-boycott and economic sanctions, including,
without limitation, the International Traffic in Arms Regulations ("ITAR"), Arms
Export Control Act ("AECA"), and Defense Trade Security Initiatives ("DTSI")
administered by the U.S. Department of Defense and the U.S. Department of State,
Office of Defense Trade Controls ("ODTC"); the Export Administration Regulations
("EAR") (including the anti-boycott laws) administered by the U.S. Department of
Commerce, Bureau of Export Administration ("BXA") and the sanctions and assets
control regulations administered by the U.S. Department of Treasury, Office of
Foreign Assets Control ("OFAC");

"FINAL ORDER" means an order of the Court approving the Arrangement;

"FINANCIAL STATEMENTS" has the meaning set forth in Section 3.1(o) hereof;

"FULLY DILUTED AMOUNT" means 25,505,458 (which is the sum of (i) 17,840,891 (the
number of shares of Spectra common shares), (ii) 6,881,984 (the number of shares
of Spectra common shares into which the Spectra preferred shares are
convertible), and (iii) 782,583 (the number of shares of Spectra common shares
represented by the anti-dilutive clauses in the UpTick Subscription Rights
Agreement dated December 13, 1999)), and in each case that are issued and
outstanding immediately prior to the Effective Time;

"GAAP" means, with respect to any Person, generally accepted accounting
principles consistently applied, as applied by the jurisdiction of organization
of such Person;

"GOVERNMENTAL ENTITY" means any: (i) federal, provincial, state, regional,
municipal, local or other government, governmental or public department, central
bank, court, tribunal, arbitrage body, commission, board, bureau, agency,
domestic or foreign; (ii) any subdivision, agent,

                                       -7-
<Page>

commission, board or authority of any of the foregoing; or (iii) any
quasi-governmental or private body exercising any regulatory, expropriation or
taxing authority under or for the account of any of the foregoing;

"GST" has the meaning set forth in Section 3.1(ppp) hereof;

"HOLDBACK AMOUNT" has the meaning set forth in Section 2.9(a);

"INDEBTEDNESS" of any Person means all obligations of such Person (i) for
borrowed money, (ii) evidenced by notes, bonds, debentures or similar
instruments, (iii) for the deferred purchase price of goods or services (other
than trade payables or accruals incurred in the ordinary course of business),
(iv) under capital leases or (v) in the nature of guarantees of the obligations
described in clauses (i) through (iv) above of any other Person;

"INDEMNIFIED PARTY", "INDEMNITY NOTICE" and "INDEMNIFYING PARTY" each have the
meaning set forth in Section 3.5(a);

"INFORMATION CIRCULAR" means the management information circular(s) to be
prepared by Spectra in connection with the Agreement, the Transactions and the
Special Meeting, together with any amendments or supplements thereto;

"INSTITUTIONAL SHAREHOLDERS AGREEMENT" means the Shareholders Agreement dated as
of May 5, 2000 among the parties listed in Exhibit C;

"INTELLECTUAL PROPERTY" means collectively, (a) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all Patents; (b) all Trademarks, trade dress, logos,
trade names, fictitious names, brand names, brand marks, domain names and
corporate names, together with all translations, adaptations, derivations and
combinations thereof and including all goodwill associated therewith, and all
applications, registrations and renewals in connection therewith; (c) all
copyrightable works, all Copyrights and all applications, registrations and
renewals in connection therewith; (d) all mask works and all applications,
registrations, and renewals in connection therewith; (e) all trade secrets and
confidential business information (including, without limitation, ideas,
research and development, know-how, formulae, compositions, manufacturing and
production processes and techniques, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information, and
business and marketing plans and proposals); (f) all computer software
(including, without limitation, data, source codes, object codes, objects,
specifications and related documentation), including the Software; (g) all other
proprietary rights; and (h) all copies and tangible embodiments thereof (in
whatever form or medium);

"INTERIM ORDER" means an order of the Court providing for, among other things,
the calling and holding of the Special Meeting, as such order may be amended,
supplemented or varied by the Court;

"ITA" means the Income Tax Act (Canada), R.S.C. 1985, c. 1 (5th Supplement), as
amended;

"JOHN MCLEOD" means John C. McLeod, acting either in his individual capacity or
on behalf of Eclipse;

                                       -8-
<Page>

"KNOWLEDGE" means the actual knowledge and the knowledge which a reasonable
person acting in such capacity should have under the circumstances after having
made due and diligent inquiry as to the matters which are the subject of the
statements which are "known" or made to the "knowledge" or "best knowledge", of:
(i) with respect to Sanchez and Subco, each such entity's respective corporate
executive officers, (ii) with respect to Spectra, such entity's corporate
executive officers and directors, (iii) with respect to the Spectra
Subsidiaries, each such entity's respective corporate executive officers and
directors, and (iv) with respect to the Spectra or Eclipse Shareholders, such
Shareholder, to the extent a natural Person, and otherwise such Shareholder's
executive officers, directors, executive managers, general partners, or such
similar Persons;

"LAW" means all published laws, statutes, codes, ordinances, decrees, rules,
regulations, by-laws, judicial or arbitral or administrative or ministerial or
departmental or regulatory judgments, orders, decisions, rulings or awards,
including general principles of common and civil law, and conditions of any
grant of approval, permission, authority or license of any court, Governmental
Entity, statutory body or self-regulatory authority;

"LETTER OF TRANSMITTAL AND ELECTION FORM" means the letter of transmittal and
election form to be forwarded by Spectra to the Spectra Shareholders;

"LIABILITIES" means all Indebtedness, obligations and other liabilities, whether
direct or indirect, and any loss, damage, cost, contingent liability, loss
contingency, unpaid expense, Claim, deficiency, guaranty or endorsement of or by
any Person whether or not ascertainable;

"LICENSES" means all licenses, permits, authorizations, approvals, franchises,
rights, orders, variances, easements, rights of way, and similar consents or
certificates granted or issued by any Person, other than a Governmental Entity,
and relating to the Companies, their assets and properties or the Business;

"LITIGATION" means (i) any action, lawsuit, arbitration, mediation, criminal
prosecution, Tax audit, administrative or other proceeding by, before or on
behalf of any Person, including any Governmental Entity, or (ii) any
investigation or inquiry asserting a violation of any Law by, before or on
behalf of any Governmental Entity;

"LOSS" means any and all damages (including direct, incidental, consequential
and special damages), losses, obligations, deficiencies, Liabilities,
Encumbrances, penalties, fines, interest, costs and expenses (including, without
limitation, court costs, fees and disbursements of attorneys, accountants,
consultants and other experts, or other expenses of investigating, prosecuting
or defending any Litigation, Claim or Default);

"MATERIAL ADVERSE CHANGE" means, when used in connection with a party, any
change, effect, event or occurrence that is, or could reasonably be expected to
be, material and adverse to the business, results of operation, financial
condition or prospects of such party and its Subsidiaries taken as a whole;

"MATERIAL ADVERSE EFFECT" means the effect of a Material Adverse Change;

"MAXIMUM SANCHEZ SHARE PERCENTAGE" means 75%;

                                       -9-
<Page>

"MAXIMUM SANCHEZ SHARES" means 1.1 million Sanchez Shares;

"MCLEOD CLAIM NOTICE" has the meaning set forth in Section 3.5A(g) hereof;

"MCLEOD INDEMNIFIED PARTY" and "MCLEOD INDEMNITY NOTICE" each have the meaning
set forth in Section 3.5A(f) hereof;

"MCLEOD PARTIES" means John McLeod and the McLeod Trust;

"MCLEOD TRUST" means the 1998 McLeod Family Trust, of which John McLeod and
Sybilla McLeod are the trustees;

"NON-COMPETITION AGREEMENT" means the non-competition and non-solicitation
agreement among Spectra and Messrs. McLeod and Conlin to be entered into on or
prior to the Effective Date;

"NOTICE OF DISSENT" means a notice given in respect of the dissent right of
Holders as contemplated in the Interim Order and as described in Section 2.6;

"OBCA" means the BUSINESS CORPORATIONS ACT (Ontario), as amended;

"OPTION CONSIDERATION" has the meaning set forth in Section 2.8(a)(ii) hereof;

"OPTION HOLDBACK AMOUNT" means the product of (i) the quotient of (A) the
aggregate Option Consideration, divided by (B) the Purchase Price less the
Spectra Transaction Fees, multiplied by (ii) the Holdback Amount, all as set
forth in the sample calculation on Schedule 2.9;

"OPTION SURRENDER AGREEMENT" has the meaning set forth in Section 2.8(a)(i)
hereof;

"ORGANIZATIONAL DOCUMENTS" means the articles or certificate of incorporation,
by-laws, operating agreement, certificate of partnership or other governing or
constituent documents of a Person;

"OSA" means the SECURITIES ACT (Ontario), as amended;

"PATENTS" means all patents and pending applications for patents of Canada and
all countries foreign thereto, including regional patents, certificates of
invention and utility models, rights of license or otherwise to or under letters
patent, certificates of intention and utility models which have been opened for
public inspection and all reissues, divisions, continuations and extensions
thereof;

"PBGC" means the Pension Benefit Guaranty Corporation;

"PER SHARE CASH ARRANGEMENT CONSIDERATION" means an amount equal to the Per
Share Closing Consideration paid in cash;

"PER SHARE CLOSING CONSIDERATION" has the meaning set forth in Section 2.5(b);

                                      -10-
<Page>

"PER SHARE STOCK ARRANGEMENT CONSIDERATION" means the number of Sanchez Shares
equal to the quotient of the Per Share Closing Consideration divided by the
Weighted Average Sales Price of a Sanchez Share as of the Closing Date;

"PERMITS" means any and all licenses, franchises, permits, registrations,
certificates of authority, easements and rights of way, variances (including
zoning variances), rights, consents, orders, approvals, certificates and other
authorizations of or issued by any Governmental Entity and relating to the
Companies, their assets and properties or the Business;

"PERMITTED LIENS" means Encumbrances listed on Schedule 1.1(a), none of which,
individually or in the aggregate, has a Material Adverse Effect or will detract
from, interferes with or will interfere with any of the Companies' or Sanchez'
right to dispose of any property or the use of such property;

"PERSON" includes an individual, corporation, partnership, joint venture, trust,
limited liability company, unincorporated organization, Governmental Entity, the
Crown or any agency or instrumentality thereof or any other entity recognized by
Law;

"PLAN OF ARRANGEMENT" means the Plan of Arrangement of Spectra in respect of the
Arrangement required by the OBCA to be filed with the Articles of Arrangement
and substantially in the form included in Exhibit A;

"POTENTIAL BUYER" has the meaning set forth in Section 4.4(a) hereof;

"PREVAILING PARTY" has the meaning set forth in Section 8.4;

"PURCHASE PRICE" has the meaning set forth in Section 2.5(a) hereof;

"REAL PROPERTY" has the meaning set forth in Section 3.1(aaa) hereof;

"REAL PROPERTY LEASE" and "REAL PROPERTY LEASES" has the meaning set forth in
Section 3.1(zz) hereof;

"REGISTRAR" has the meaning attributed to that term under the OBCA;

"REPRESENTATION AND WARRANTY INSURANCE POLICY" means the insurance policy from a
Best's "A+" rated insurance company for coverage of Spectra's indemnification
obligations under Section 3.4 hereof and the Spectra Shareholders'
indemnification obligations under the Support Agreement on terms and conditions
and in the form of Exhibit D hereto;

"REQUIRED CONSENTS" means any consent, waiver, approval, authorization,
certification or exemption required from any person or under any Contract or
Law, as applicable, including all consents of a Governmental Entity or
Third-Party Consents required in connection with, as a result of or prior to the
execution of this Agreement or the consummation of the transactions contemplated
hereby including, without limitation, the Arrangement and the Stock Purchases,
all listed on Schedule 1.1(b);

"SALES TAXES" has the meaning set forth in Section 3.1(ppp) hereof;

                                      -11-
<Page>

"SANCHEZ" means Sanchez Computer Associates, Inc., a corporation existing under
the laws of the Commonwealth of Pennsylvania;

"SANCHEZ DELAWARE" means Sanchez Delaware, Ltd., a corporation formed under the
laws of the State of Delaware;

"SANCHEZ PARTIES" means Sanchez, Sanchez Delaware and Subco;

"SANCHEZ SHARES" means the shares of the common stock of Sanchez, no par value
per share;

"SANCHEZ TERMINATION FEE" has the meaning set forth in Section 7.4(a) hereof;

"SECURITIES LEGISLATION" means the OSA, the COMMODITY FUTURES ACT (Ontario), the
1933 Act, the 1934 Act, and the equivalent Laws in the other provinces of Canada
and the United States, and the published rules, regulations and policies of any
Governmental Entity administering those Laws;

"SHARE ELECTING HOLDERS" has the meaning set forth in Section 2.4(c) hereof;

"SHARE HOLDBACK AMOUNT" means the product of (i) the quotient of (A) the Closing
Consideration, divided by (B) the Purchase Price less the Spectra Transaction
Fees, multiplied by (ii) the Holdback Amount, all as set forth in the sample
calculation on Schedule 2.9;

"SHARE OPTION" has the meaning set forth in Section 2.4(a) hereof;

"SHARE PLANS" means (i) the Stock Option Plan of Spectra dated December 9, 1999
and (ii) the 2001 Stock Option Plan of Spectra dated February 16, 2001;

"SHAREHOLDER AGREEMENTS" means the Employee Shareholders Agreement and the
Institutional Shareholders Agreement;

"SHAREHOLDERS' REPRESENTATIVE" has the meaning set forth in Section 2.11 hereof;

"SHARES OUTSTANDING" means the number of Spectra common shares outstanding as of
the Closing Date, but not including any common shares which may be issuable
pursuant to the Spectra Options or Spectra Warrants;

"SOFTWARE" means all computer software programs and related objects, object
codes and source codes owned, marketed, licensed or under development by the
Companies, as the case may be, or for which the Companies have the right and
license to copy, distribute, prepare derivative works of, display and perform
publicly, modify, use or market, and any enhancements, improvements or
modifications thereto owned or under development by the Companies, other than
shrink-wrapped "off-the-shelf" software products. All documentation and
specifications used in connection with and related to the Software shall be
included in the definition of Software;

"SPECIAL MEETING" means the special meeting of the Spectra Shareholders to be
held on or about June 24, 2002 (or such later date or dates to which such
meeting is postponed or adjourned) to, among other things, consider and if
deemed advisable, to approve the Transactions by way of the

                                      -12-
<Page>

Special Resolution passed by (i) two-thirds of the votes cast by holders of
Spectra Shares represented in person or by proxy at such meeting, (ii) a
majority of the votes cast by holders of the Spectra Shares (other than John
McLeod, Eclipse and Conlin) represented in person or by proxy at such meeting,
if applicable, and (iii) in such other manner as may be required by the Court in
the Interim Order;

"SPECIAL RESOLUTION" means the resolution of the Spectra Shareholders approving
the Transactions;

"SPECTRA" means Spectra Securities Software Inc., a corporation existing under
the OBCA;

"SPECTRA ACQUISITION PROPOSAL" means any proposal or any transaction (other than
a proposal or transaction made with respect to the Arrangement, including,
without limitation, any proposal or offer to the Spectra Shareholders) regarding
(i) amalgamation, merger, consolidation, share exchange, business combination or
other similar transaction or series of related transactions involving Spectra or
its Subsidiaries; (ii) any sale, lease, exchange, transfer or other disposition
of a material portion of the assets or of the intellectual property (including
software) of Spectra or its Subsidiaries; (iii) any tender offer, take-over bid,
exchange offer or similar transaction or series of related transactions made by
any Person or entity involving the acquisition or lock up of 10% or more of any
class of securities of Spectra or its Subsidiaries, coupled with or followed by
an offer for the balance of the outstanding securities of such class; (iv) the
acquisition by any Person or any group of persons (as defined in Section 13(d)
of the 1934 Act) (other than Sanchez and its Affiliates), directly or
indirectly, of beneficial ownership of, or the formation of a group of Persons
to acquire beneficial ownership of, 10% or more of the then outstanding shares
of any class of securities of Spectra or its Subsidiaries, coupled with or
followed by an offer for the balance of such outstanding shares; or (v) any
other substantially similar transaction or series of related transactions that
would hinder the consummation of the transactions contemplated herein or would
otherwise defeat the purposes of this Agreement;

"SPECTRA BOARD" means the board of directors of Spectra;

"SPECTRA EQUITY HOLDERS" means holders of Spectra Shares, Spectra Options,
Spectra Warrants and a 2001 Employee Bonus;

"SPECTRA INSURANCE PREMIUM" means the insurance premium payable by Spectra
relating to the Representation and Warranty Insurance Policy, one-half of which
will be included in the Spectra Transaction Fees pursuant to Section
2.7(c)(i)(B) hereto;

"SPECTRA OPTIONS" means the outstanding options to purchase common shares of
Spectra pursuant to the Share Plans, whether or not vested;

"SPECTRA SHAREHOLDER" means a registered holder of Spectra Shares;

"SPECTRA SHAREHOLDER APPROVAL" means the approval of the Transactions by the
Spectra Shareholders pursuant to the Special Resolution;

"SPECTRA SHARES" means all of the issued and outstanding common and preferred
shares, if any, of Spectra;

                                      -13-
<Page>

"SPECTRA US," "SPECTRA UK," "SPECTRA AUSTRALIA" shall each have the meanings set
forth in the recitals to this Agreement;

"SPECTRA WARRANTS" means the warrants to purchase or acquire Spectra Shares,
whether or not exercisable;

"STOCK PURCHASE" and "STOCK PURCHASES" each have the meaning set forth in the
preambles to this Agreement;

"STOCK PURCHASE CLOSING DATE" means the Business Day immediately preceding the
Effective Date;

"STOCK PURCHASE CLOSINGS" means the consummation of the Stock Purchases on the
Stock Purchase Closing Date pursuant to the provisions hereof and "STOCK
PURCHASE CLOSING" means the consummation of any one of the Stock Purchases on
the Stock Purchase Closing Date pursuant to the provisions hereof;

"SUB SHARES" means all of the shares of capital stock of the Subsidiaries of
Spectra;

"SUBCO" means 1518356 Ontario Limited;

"SUBSIDIARY" means, with respect to a specified body corporate, a body corporate
of which more than 50% of the outstanding shares ordinarily entitled to elect a
majority of the board of directors thereof (whether or not shares of any other
class or classes shall or might be entitled to vote upon the happening of any
event or contingency) are at the time owned, directly or indirectly, by such
specified body corporate, and includes a body corporate in like relation to a
Subsidiary;

"SUBSIDIARY PURCHASE PRICE" has the meaning set forth in Section 2.2 hereof;

"SUBSIDIARY PURCHASE SHARES" has the meaning set forth in Section 2.2 hereof;

"SUPERIOR PROPOSAL" has the meaning set forth in Section 4.4(b) hereof;

"SUPPORT AGREEMENT" means the lock-up agreement among John McLeod, Conlin, EDS
and VenGrowth in favour of Sanchez dated as of the date hereof;

"SURVIVAL DATE" has the meaning set forth in Section 3.3(a) hereof;

"SURVIVING CORPORATION" means the entity formed or continuing in existence as a
result of the Arrangement and the Amalgamation contained therein;

"TAX" and "TAXES" means, with respect to any entity (i) all federal, provincial,
state, local or foreign income taxes (including any tax on or based upon net
income, gross income, income as specially defined, earnings, profits or selected
items of income, earnings or profits), capital taxes, gross receipts taxes,
environmental taxes, sales taxes, use taxes, ad valorem taxes, value added
taxes, transfer taxes, franchise taxes, license taxes, withholding taxes,
payroll taxes, employment taxes, Canada or Quebec Pension Plan premiums, excise,
severance, social security premiums, workers' compensation premiums, employment
insurance or compensation premiums, stamp

                                      -14-
<Page>

taxes, occupation taxes, premium taxes, property taxes, windfall profits taxes,
alternative or add-on minimum taxes, goods and services tax, customs duties or
other taxes, fees, imports, assessments or charges of any kind whatsoever,
together with any interest and any penalties or additional amounts imposed by
any taxing authority (domestic or foreign) on such entity, and any interest,
penalties, additional taxes and additions to tax imposed with respect to the
foregoing, and (ii) any liability for the payment of any amount of the type
described in the immediately preceding clause (i) as a result of being a
"transferee" (within the meaning of Section 6901 of the Code or any other
Applicable Laws) of another entity or a member of an affiliated or combined
group;

"TAX RETURNS" means all returns, declarations, reports, claims for refund,
elections, designations, information returns and statements relating to Taxes,
including any schedules or attachments thereto, and including any amendment
thereof;

"THIRD PARTY" means any Person other than the Sanchez Parties, the Companies,
the Shareholders, or an Affiliate of the Sanchez Parties, the Companies or the
Shareholders;

"THIRD-PARTY CONSENTS" means any and all Licenses, franchises, Permits,
easements, rights, consents, approvals, variances, waivers, filings and other
authorizations with, of or from Persons (other than Governmental Entities) which
are parties to any Contract, License and other instrument to which a Person is a
party (or by which any of their respective properties or assets is bound or
affected) and which are necessary for the consummation of the transactions
contemplated herein in the manner contemplated hereby, including the transfer of
any such Contract, License or other instrument in accordance with the terms
hereof;

"THRESHOLD AMOUNT" has the meaning set forth in Section 3.5(c) hereof;

"THRESHOLD SETTLEMENT AMOUNT" has the meaning set forth in Section 4.12 hereof;

"TRADEMARKS" means registered trademarks, registered service marks, trademark
and service mark applications and unregistered trademarks and service marks;

"TRANSACTION FEES" of a Person means all fees and expenses of legal, audit and
financial advisors and any other fees and expenses of such Person relating to
the negotiation and completion of this Agreement and transactions contemplated
herein;

"TRANSACTIONS" has the meaning set forth in the recitals to this Agreement;

"TRIGGER EVENT" has the meaning set forth in the Share Plans;

"U.S. JURISDICTIONS" has the meaning set forth in Section 3.2(d) hereof;

"UNAUDITED MONTHLY STATEMENTS" has the meaning set forth in Section 4.10 hereof;

"UPTICK SHARES" means 782,583 Spectra common shares issuable under Subscription
Rights Agreements dated December 13, 1999;

                                      -15-
<Page>

"VENGROWTH" means The VenGrowth Investment Fund Inc. and The VenGrowth II
Investment Fund Inc.;

"VENGROWTH DEBENTURES" means debentures of Spectra dated April 11, 1997 and
December 23, 1998 in favour of VenGrowth, and any amendments thereto;

"WARRANT CONSIDERATION" has the meaning set forth in Section 2.8(b) hereof;

"WARRANT HOLDBACK AMOUNT" means the product of (i) the quotient of (A) the
aggregate Warrant Consideration, divided by (B) the Purchase Price less the
Spectra Transaction Fees, multiplied by (ii) the Holdback Amount all as set
forth in the sample calculation on Schedule 2.9;

"WARRANT SURRENDER AGREEMENT" has the meaning set forth in Section 2.8(b)
hereof;

"WEIGHTED AVERAGE SALES PRICE" means (i) the volume-weighted average sales price
per Sanchez Share (i.e., the sum of the daily volume multiplied by the average
of the high and low sales prices for such trading day) as reported by Bloomberg
Information Systems, Inc. during a period consisting of the Nasdaq trading day
two trading days immediately prior to the date as of which the Weighted Average
Sales Price of a Sanchez Share is being determined and the ten (10) consecutive
trading days prior to such day divided by (ii) the total daily volume of such
ten-day period; and

"WITHHOLDING TAXES" means any Taxes which are required to be withheld by a
Governmental Entity in connection with the payment of the Purchase Price to a
Spectra Shareholder or the holder of a Spectra Option, a Spectra Warrant or a
2001 Employee Bonus; and

"Y2K WARRANTY" has the meaning set forth in Section 3.1(ii).

1.2         CALCULATION OF TIME

In this Agreement, a period of days shall be deemed to begin on the first day
after the event which began the period and to end at 6:00 p.m. (Toronto time) on
the last day of the period. If, however, the last day of the period does not
fall on a Business Day, the period shall terminate at 6:00 p.m. (Toronto time)
on the next Business Day. References to time in this Agreement shall be to local
time in Toronto, Ontario, Canada unless otherwise stated.

1.3         SUBSIDIARIES

Notwithstanding any other provision hereof, to the extent any covenants
contained herein relate, directly or indirectly, to a Subsidiary of either
Spectra or Sanchez, each such provision will be construed as a covenant by
Spectra or Sanchez, as the case may be, to cause (to the fullest extent to which
it is legally capable) that Subsidiary to perform the required action.

1.4         CURRENCY

Unless specified otherwise, all statements of or references to dollar amounts in
this Agreement are to lawful money of Canada.

                                      -16-
<Page>

1.5         SECTIONS AND HEADINGS

The division of this Agreement into sections and the insertion of headings are
for reference purposes only and shall not affect the interpretation of this
Agreement. Unless otherwise indicated, any reference in this Agreement to a
section or schedule refers to the specified section of or schedule to this
Agreement. References to "hereof", "herein", "hereto" and similar expressions
refer to this Agreement as a whole and not to any particular part of or any
particular schedule to this Agreement.

1.6         NUMBER AND GENDER

In this Agreement, unless the context otherwise requires, words importing the
singular number include the plural and vice versa, and words importing any
gender include all genders.

1.7         SCHEDULES

The Schedules referenced in this Agreement are incorporated into and form part
of this Agreement.

                ARTICLE 2 - STOCK PURCHASE; ARRANGEMENT; CLOSING

2.1         TRANSACTIONS

As promptly as practicable after the execution of this Agreement, Spectra shall
seek the approval of the Transactions by the holders of the outstanding Spectra
Shares in accordance with the Interim Order and with the covenants of Spectra
and the Sanchez Parties set forth in Article 4 hereof.

2.2         STOCK PURCHASES

On the date of the Stock Purchase Closing Date, subject to the conditions of
this Agreement, Spectra hereby agrees to sell, assign, transfer and set over
unto Sanchez Delaware all of the issued and outstanding shares of capital stock
of each of Spectra UK and Spectra Australia and to Sanchez all of the issued and
outstanding capital stock of Spectra US (collectively, the "SUBSIDIARY PURCHASE
SHARES") in exchange for $1, $500,000 and $3,499,999, respectively (each
individually a "SUBSIDIARY PURCHASE PRICE," and collectively, the "AGGREGATE
SUBSIDIARY PURCHASE PRICE"). Such Aggregate Subsidiary Purchase Price shall be
paid by Sanchez and Sanchez Delaware, as applicable, to Spectra on the Stock
Purchase Closing Date at the Stock Purchase Closing by wire transfer of
immediately available funds as set forth in Section 2.12 and in accordance with
the terms and conditions of this Agreement.

2.3         ARRANGEMENT

At the Effective Time, without any further act or formality, by virtue of the
Plan of Arrangement and without any further action on the part of Spectra,
Sanchez, Subco or any Spectra Shareholder, the following shall occur and shall
be deemed to occur:

                                      -17-
<Page>

     (a)    Spectra shall issue the UpTick Shares;

     (b)    Subco, on behalf of the Companies, will pay to each holder of a
            Spectra Option, a Spectra Warrant and a 2001 Employee Bonus, the
            Option Consideration, the Warrant Consideration and the Bonus
            Consideration, respectively, which shall be paid in the amounts and
            in the manner provided for in Section 2.8 hereof;

     (c)    each of the Spectra Shares, other than Spectra Shares in respect of
            which a Notice of Dissent has been given and other than Spectra
            Shares owned by Eclipse, shall be and shall be deemed to be
            transferred to Subco in exchange for the Purchase Price provided in
            Section 2.5 hereof, as adjusted and less the payments set forth in
            Sections 2.5 and 2.7 hereof and subject to the Holdback Amount set
            forth herein, all of which shall be paid in the manner provided for
            in Section 2.7 hereof and, as to the Holdback Amount, Section 2.9(a)
            hereof;

     (d)    each of the Eclipse Shares shall be and shall be deemed to be
            transferred to Subco in exchange for the Eclipse Purchase Price
            provided in Section 2.5 hereof, as adjusted and less the payments
            set forth in Sections 2.5 and 2.7 hereof and subject to the Holdback
            Amount set forth herein, all of which shall be paid to the Eclipse
            Shareholders in the manner provided for in Section 2.7 hereof and,
            as to the Holdback Amount, Section 2.9(a) hereof;

     (e)    each of the Spectra Shares in respect of which a Notice of Dissent
            has been given shall be and shall be deemed to be cancelled pursuant
            to Section 2.6 hereof with Spectra being obligated to pay therefor
            the amount determined in accordance with Section 2.6 hereof;

     (f)    each of the Spectra Shares owned by Eclipse shall be deemed to be
            cancelled for no consideration;

     (g)    with respect to each Spectra Share transferred or cancelled in
            accordance with Sections 2.3(c) and (e) above and with respect to
            each Eclipse Share transferred in accordance with Sections 2.3(d)
            and (f) above:

            (i)     the registered holder thereof shall cease to be the
                    registered holder of such share and the name of the holder
                    thereof shall be removed from the register of Spectra
                    Shareholders or the Eclipse Shareholders, as applicable, as
                    of the Effective Time;

            (ii)    the certificate representing such share shall be deemed to
                    have been cancelled as of the Effective Time;

            (iii)   the holder thereof shall be deemed to have executed and
                    delivered all consents, releases, assignments and waivers,
                    statutory or otherwise, required to transfer such share in
                    accordance with Section 2.3(c), (d), (e) or (f) above; and

                                      -18-
<Page>

            (iv)    Subco shall be and shall be deemed to be the transferee of
                    such shares and Subco shall be entered in the register of
                    Spectra Shareholders and the Eclipse Shareholders, as
                    applicable, as the registered holder of such share; and

     (h)    Subco, Eclipse and Spectra shall amalgamate pursuant to the
            Amalgamation.

2.4         SHARE OPTION AND CASH OPTION

     (a)    With respect to the transfer of the Spectra Shares set forth in
            Section 2.3(c), above, a Spectra Shareholder may elect to receive
            either the Per Share Stock Arrangement Consideration (the "SHARE
            OPTION") or the Per Share Cash Arrangement Consideration (the "CASH
            OPTION") with respect to all Spectra Shares held by him or may
            divide the number of Spectra Shares held by him between the two
            options, such election to be made in the manner set forth in Section
            2.7 hereof; provided, however, that each Spectra Shareholder must
            select the Cash Option so that the portion of the Purchase Price
            payable to such Spectra Shareholder on account of the Share Option
            does not exceed the Maximum Sanchez Share Percentage. A Spectra
            Shareholder who does not indicate his election in respect of the
            Share Option or the Cash Option in the Letter of Transmittal and
            Election Form delivered within the time limits set out therein, or
            who does not deliver such a Letter of Transmittal and Election Form,
            subject to Section 2.6 below, shall be deemed to have elected the
            Cash Option in respect of all Spectra Shares held by him.

     (b)    With respect to the transfer of the Eclipse Shares set forth in
            Section 2.3(d) above, the Eclipse Shareholders may elect to receive
            the Eclipse Purchase Price either in cash (the "ECLIPSE CASH
            OPTION") or in Sanchez Shares valued on the same basis as the Share
            Option (the "ECLIPSE SHARE OPTION") with respect to all or a portion
            of the Eclipse Purchase Price, such election to be made in the
            manner set forth in Section 2.7 hereof; provided, however, that the
            Eclipse Shareholders must select the Eclipse Cash Option so that the
            portion of the Eclipse Purchase Price payable to such Eclipse
            Shareholders on account of the Eclipse Share Option does not exceed
            the Maximum Sanchez Share Percentage. If the Eclipse Shareholders do
            not indicate their election in respect of the Eclipse Share Option
            or the Eclipse Cash Option in the Letter of Transmittal and Election
            Form delivered within the time limits set out therein, or do not
            deliver such a Letter of Transmittal and Election Form, subject to
            Section 2.6 below, the shall be deemed to have elected the Eclipse
            Cash Option in respect of the entire Eclipse Purchase Price.

     (c)    The number of Spectra Shares and Purchase Price to be transferred to
            Subco in respect of the Share Option and the portion of the Eclipse
            Purchase Price to be paid pursuant to the Eclipse Share Option shall
            be limited such that, if the number of Sanchez Shares to be issued
            in respect of the aggregate of the Purchase Price that would
            otherwise be payable by Subco to the Spectra Shareholders and the
            Eclipse Shareholders who elect the Share Option in respect of their
            Spectra Shares and the Eclipse Share Option (the "SHARE ELECTING
            HOLDERS") exceeds the

                                      -19-
<Page>

            Maximum Sanchez Shares, then the number of Spectra Shares to be
            acquired by Subco from each Share Electing Holder and the amount of
            Eclipse Purchase Price to be paid to each Eclipse Shareholder on
            account of the Eclipse Share Option may, at the sole discretion of
            Subco, be reduced pro-rata so that, in the aggregate, the number of
            Sanchez Shares to be issued in respect of the portion of the
            Purchase Price payable to the Share Electing Holders and the amount
            of Eclipse Purchase Price to be paid to each Eclipse Shareholder on
            account of the Eclipse Share Option equals the Maximum Sanchez
            Shares. In addition, the number of Spectra Shares to be transferred
            to Subco in respect of the Share Option and the amount of Eclipse
            Purchase Price to be paid to each Eclipse Shareholder on account of
            the Eclipse Share Option shall be limited such that, if the number
            of Sanchez Shares to be issued in respect of the Purchase Price that
            would otherwise be payable by Subco to a specific Share Electing
            Holder exceeds the Maximum Sanchez Share Percentage, then the number
            of Spectra Shares and Eclipse Shares to be acquired by Subco from
            such Share Electing Holder in connection with the Share Option and
            the amount of Eclipse Purchase Price to be paid to each Eclipse
            Shareholder on account of the Eclipse Share Option may, at the sole
            discretion of Subco, be reduced so that, in the aggregate, the
            number of Sanchez Shares to be issued in respect of the portion of
            the Purchase Price payable to the Share Electing Holder on account
            of the Share Option and the amount of Eclipse Purchase Price to be
            paid to each Eclipse Shareholder on account of the Eclipse Share
            Option does not exceed the Maximum Sanchez Share Percentage. Each
            Share Electing Holder may, at the sole discretion of Subco, be
            deemed, for all purposes, to have elected the Cash Option in respect
            of any Spectra Shares or portion of Eclipse Purchase Price to which
            the Stock Option or the Eclipse Stock Option, as the case may be, as
            a result of either of the foregoing pro-rations, does not apply and
            shall transfer such shares to Subco and shall receive from Subco the
            consideration payable in respect of such Spectra Shares and Eclipse
            Shares on the same basis as the Spectra Shareholders and any Eclipse
            Shareholder who elect the Cash Option for the Spectra Shares and the
            Eclipse Cash Option.

2.5         ARRANGEMENT CONSIDERATION

     (a)    As full consideration for the Spectra Shares and Eclipse Shares
            acquired in the Arrangement, Subco shall pay and deliver or cause to
            be paid and delivered to the Spectra Shareholders and the Eclipse
            Shareholders, in the manner, including the combination of Sanchez
            Shares and cash, set forth in this Article 2, the Base Purchase
            Price (as defined below), decreased as further set forth in this
            Section 2.5 (collectively, the "PURCHASE PRICE").

            (i)     BASE PURCHASE PRICE. The base Purchase Price is Forty-One
                    Million Three Hundred Ninety-Six Thousand Two Hundred Fifty
                    ($41,396,250) (the "BASE PURCHASE PRICE").

            (ii)    CLOSING NET DEBT ADJUSTMENT. If (i) the Debenture Payoff
                    Amount less the Adjusted Closing Date Cash is greater than
                    (ii) $3,500,000, then the Base Purchase Price shall be
                    decreased at Closing by $1.00 for each $1.00

                                      -20-
<Page>

                    of such excess (the "CLOSING NET DEBT ADJUSTMENT"). Attached
                    as Schedule 2.5(a) is a sample Closing Net Debt Adjustment
                    using figures from Spectra's balance sheet at March 31,
                    2002. The Cash as of the Closing Date (the "CLOSING CASH
                    AMOUNT") and the Closing Net Debt Adjustment shall be
                    determined as set forth herein and in Section 2.10 hereof.

     (a.1)  ALLOCATION OF CLOSING CONSIDERATION. The Eclipse Shareholders shall
            receive 4.704875% of the Closing Consideration reflecting Eclipse's
            percentage ownership of the Spectra Shares on Closing Date (the
            "ECLIPSE PURCHASE PRICE"), as to be determined by the Eclipse
            Shareholders prior to Closing.

     (b)    The Purchase Price shall be reduced by the Aggregate Additional
            Payments (as defined below) in order to determine the aggregate
            amount to be paid to the Spectra Shareholders in respect of each
            Spectra Share in connection with the transfer of the Spectra Shares
            pursuant to Section 2.3(c) and 2.3(e) hereof and to the Eclipse
            Shareholders in connection with the transfer of the Eclipse Shares
            pursuant to Section 2.3(d) and 2.3(f) hereof (collectively, the
            "CLOSING CONSIDERATION"). The per share Closing Consideration shall
            be determined by dividing the Closing Consideration by the Shares
            Outstanding (the "PER SHARE CLOSING CONSIDERATION"). For purposes
            hereof, the "AGGREGATE ADDITIONAL PAYMENTS" shall mean Spectra's
            Transaction Fees, the aggregate Option Consideration, the aggregate
            Warrant Consideration and the Bonus Consideration.

2.6         DISSENTING SHAREHOLDERS

     (a)    A Spectra Shareholder may exercise rights of dissent conferred by
            the Interim Order in connection with the Arrangement in the manner
            set out in Section 185 of the OBCA, as modified by the Interim
            Order, provided the Notice of Dissent is given to Spectra in the
            manner and within the time periods contemplated by such section as
            modified by the Interim Order. The Spectra Shares subject to the
            exercise of such rights of dissent shall be referred to herein as
            "DISSENTING SHARES." Without limiting the generality of the
            foregoing, Spectra Shareholders who duly exercise such rights of
            dissent and who are ultimately entitled to be paid fair value for
            their Spectra Shares by Spectra shall have their Spectra Shares in
            respect of which the Notice of Dissent was given cancelled as of the
            Effective Date. In no case shall Spectra or Sanchez be required to
            recognize such Spectra Shareholders as Spectra shareholders at and
            after the Effective Date, and the names of such Spectra Shareholders
            shall be deleted from Spectra's register of shareholders on the
            Effective Date.

     (b)    In the event a Spectra Shareholder gives a Notice of Dissent but is
            not entitled, for any reason, to be paid the fair value of the
            Spectra Shares in respect of which the Notice of Dissent was given
            as contemplated in Section 185 of the OBCA and the Interim Order,
            such Spectra Shareholder shall be deemed to have participated in the
            Arrangement on the same basis as each non-dissenting Spectra
            Shareholder who has elected the Cash Option.

                                      -21-
<Page>

2.7         PAYMENT ELECTION; CLOSING PAYMENT FUND; CASH AND CERTIFICATES

     (a)    MANNER OF MAKING ELECTIONS.

            (i)     Spectra shall cause the Letter of Transmittal and Election
                    Form to be sent to each Spectra Shareholder no later than
                    the date on which the Information Circular is mailed to the
                    Spectra Shareholders by Spectra, at the earliest possible
                    date after the execution of this Agreement and on a date
                    which will enable the Election Deadline to occur as soon as
                    practicable so as not to unduly delay the Effective Date.

            (ii)    Each Spectra Shareholder entitled to make an election under
                    Section 2.4 may elect either the Share Option or the Cash
                    Option by depositing, or by causing their agent or other
                    representative to deposit, with the Depositary prior to the
                    Election Deadline a duly completed Letter of Transmittal and
                    Election Form indicating such Spectra Shareholder's election
                    together with the certificates representing such Spectra
                    Shareholder's Spectra Shares or as otherwise provided in the
                    Letter of Transmittal and Election Form.

            (iii)   Any Spectra Shareholder entitled to make an election under
                    Section 2.4 who, in respect of a Spectra Share held by such
                    Spectra Shareholder: (i) does not deposit with the
                    Depositary a duly completed Letter of Transmittal and
                    Election Form prior to the Election Deadline or (ii)
                    otherwise fails to comply fully with the requirements of
                    this Section 2.7 and the Letter of Transmittal and Election
                    Form in respect of such Spectra Shareholder's election of
                    the Share Option, shall, subject to Section 2.6(b) above, be
                    deemed to have elected the Cash Option in respect of such
                    Spectra Share.

            (iv)    Any deposit of a Letter of Transmittal and Election Form and
                    accompanying certificates, or other documentation as
                    provided in the Letter of Transmittal and Election Form, may
                    be made at any of the offices of the Depositary specified in
                    the Letter of Transmittal and Election Form.

(a.1)   ECLIPSE ELECTION.

The McLeod Trust and John McLeod shall elect either the Eclipse Share Option or
the Eclipse Cash Option by depositing, or by causing their agent or other
representative to deposit, with the Depositary prior to the Election Deadline, a
duly completed Letter of Transmittal and Election Form.

     (b)    VENGROWTH REPAYMENT.

            (i)     On the Closing Date but prior to the Closing, Spectra will
                    promptly deliver a certified cheque in the amount of the
                    Debenture Payoff Amount to VenGrowth.

                                      -22-
<Page>

     (c)    DEPOSITARY AND CLOSING PAYMENT FUND.

            (i)     At the Closing, Subco shall deliver to the Depositary the
                    Purchase Price, as adjusted pursuant to Section 2.5(a)
                    hereof, in the applicable portions of cash and Sanchez
                    Shares set forth in the Letters of Transmittal and Election
                    Forms pursuant to this Section 2.7 and to account for
                    payment of the Spectra Transaction Fees set forth below, for
                    deposit in a separate, interest-bearing account (as to the
                    cash portion) designated for such purpose (the "CLOSING
                    PAYMENT FUND"), established for the benefit of the former
                    holders of Spectra Shares, Eclipse Shares and holders of
                    Spectra Options, Spectra Warrants and 2001 Employee Bonus,
                    for payment in accordance with this Section 2.7. The cash
                    portion of the Purchase Price shall be delivered to the
                    Depositary by bank transfer or other means satisfactory to
                    the Depositary. Promptly thereafter, the Depositary will,
                    pursuant to irrevocable instructions from Sanchez, in form
                    and substance acceptable to the Shareholders'
                    Representative, promptly deliver from the Closing Payment
                    Fund:

                    A.   cash in an amount equal to the Holdback Amount to two
                         separate, interest-bearing accounts at the Escrow Agent
                         designated for such purpose as further set forth in
                         Section 2.9 and the Escrow Agreement, then

                    B.   cash in the respective amount of Spectra's Transaction
                         Fees (which, for purposes of this Agreement, includes,
                         without limitation, (i) any fees or expenses of the
                         Depositary and the Shareholders' Representative, and
                         (ii) any fees and expenses related to the preparation
                         of the Information Circular, the printing and
                         distribution thereof and the Special Meeting, and (iii)
                         any fees and expenses of the Representation and
                         Warranty Insurance Policy and 50% of Spectra Insurance
                         Premium) owing to each Person set forth on the
                         certificate delivered by Spectra to the Sanchez Parties
                         pursuant to Sections 5.3(l) and 5.5(l) shall be paid to
                         Spectra for the immediate payment on the Closing Date
                         of such amounts to such Persons and to the extent any
                         such specific Transaction Fees arise or become known
                         after the Closing Date, such Transaction Fees shall be
                         paid from the Holdback Amount in the Escrow Account;
                         then

                    C.   the applicable Closing Consideration for the Spectra
                         Shares and Eclipse Shares described in Section 2.3 and
                         2.5, less the applicable Share Holdback Amount pursuant
                         to Section 2.9 for each such Spectra Share and Eclipse
                         Shares represented by such certificate the holder of
                         which has selected the Share Option and applicable
                         Withholding Taxes; then

                                      -23-
<Page>

                    D.   in exchange for an Option Surrender Agreement pursuant
                         to Section 2.8, the cash payment described in Section
                         2.8 for the corresponding Spectra Options, less the
                         applicable Option Holdback Amount pursuant to Section
                         2.9 for each Spectra Share purchasable pursuant to such
                         Spectra Options and applicable Withholding Taxes; then

                    E.   in exchange for a Warrant Surrender Agreement pursuant
                         to Section 2.8, the cash payment described in Section
                         2.8 for the corresponding Spectra Warrants, less the
                         Warrant Holdback Amount pursuant to Section 2.9 for
                         each Spectra Share purchasable pursuant to such Spectra
                         Warrants and applicable Withholding Taxes; then

                    F.   in exchange for a Bonus Surrender Agreement pursuant to
                         Section 2.8, the cash payment described in Section 2.8
                         for the corresponding Bonus Consideration, less the
                         2001 Employee Bonus Holdback Amount pursuant to
                         Section 2.9 for each Spectra Share purchasable pursuant
                         to such Bonus Consideration and applicable Withholding
                         Taxes; then

                    G.   cash in the amount of the aggregate applicable
                         Withholding Taxes to the appropriate Governmental
                         Entity.

            (ii)    In no event, however, shall the Depositary disburse amounts
                    from the Closing Payment Fund with respect to any holders of
                    Dissenting Shares until the receipt of an order to such
                    effect from the applicable Governmental Entity or as agreed
                    by Spectra upon settlement of such dispute and in no event
                    shall the Depositary disburse amounts from the Closing
                    Payment Fund to any holders of Dissenting Shares in excess
                    of the Per Share Closing Consideration. Schedule 2.7(c)(ii)
                    sets forth a detailed list of all recipients and estimated
                    amounts to be paid from the Closing Payment Fund. The
                    deposit of cash by Subco to the Closing Payment Fund and
                    payment thereof by the Depositary of the amounts necessary
                    to make the payments pursuant to this Section 2.7 shall be
                    by wire transfer. Such payments shall be made out of the
                    Closing Payment Fund. If, after delivery by the Subco of the
                    Purchase Price to the Closing Payment Fund, sufficient funds
                    are not present in the Closing Payment Fund to enable the
                    Depositary to pay the recipients the amounts set forth in
                    this Section 2.7, appropriate adjustments shall be made to
                    the amounts to be paid to the Spectra Shareholders, Eclipse
                    Shareholders and the holders of Spectra Options, Spectra
                    Warrants and 2001 Employee Bonus pursuant to Section 2.9. In
                    no event shall Sanchez or Subco be required to pay or
                    deposit an amount greater than the Purchase Price to the
                    Depositary or any intended recipient set forth in this
                    Section 2.7. The Closing Payment Fund shall not be used for
                    any purpose except as expressly provided in this
                    Section 2.7.

                                      -24-
<Page>

     (d)    RIGHT TO PAYMENT/SANCHEZ SHARES.

            (i)     Where a Spectra Shareholder or Eclipse Shareholder has
                    properly elected or is deemed to have elected in accordance
                    with Section 2.7(a), Section Section 2.7(a.1) or Section 2.6
                    the Cash Option for such Spectra Shareholder's Spectra
                    Shares or the Eclipse Cash Option, as applicable, Subco
                    shall, as soon as practicable following the later of the
                    Effective Date and the date of deposit with the Depositary
                    of a duly completed Letter of Transmittal and Election Form,
                    cause the Depositary either:

                    A.   to forward or cause to be forwarded by first class mail
                         (postage prepaid) to the Spectra Shareholder or Eclipse
                         Shareholder at the address specified in the Letter of
                         Transmittal and Election Form; or

                    B.   if requested by the Spectra Shareholder or Eclipse
                         Shareholder in the Letter of Transmittal and Election
                         Form, to make available at the Depositary for pick-up
                         by the Spectra Shareholder or Eclipse Shareholder; or

                    C.   if the Letter of Transmittal and Election Form neither
                         specifies an address nor contains a request as
                         described in (ii), to forward or cause to be forwarded
                         to the Spectra Shareholder or Eclipse Shareholder at
                         the address of such holder as shown on the share
                         register maintained by Spectra, a cheque in Canadian
                         currency representing the payment required to be made
                         to such Spectra Shareholder or Eclipse Shareholder
                         pursuant to the provisions hereof. Subco shall have
                         provided the Depositary with sufficient funds for this
                         purpose on or prior to the Effective Date by wire
                         transfer or other means satisfactory to the Depositary.
                         Under no circumstances will interest be paid to any
                         Spectra Shareholder or Eclipse Shareholder on any
                         payment to be made hereunder, regardless of any delay
                         in making such payment.

            (ii)    Where a Spectra Shareholder or Eclipse Shareholder has
                    elected in accordance with Section 2.7(a) or 2.7(a.1) to
                    receive Sanchez Shares for such Spectra Shareholder's
                    Spectra Shares or for such Eclipse Shareholder's Eclipse
                    Shares, Subco shall, as soon as practicable following the
                    later of the Effective Date and the date of deposit with the
                    Depositary of a duly completed Letter of Transmittal and
                    Election Form, cause the Depositary either:

                    A.   to forward or cause to be forwarded by first class mail
                         (postage prepaid) to the Spectra Shareholder or Eclipse
                         Shareholder at the address specified in the Letter of
                         Transmittal and Election Form; or

                                      -25-
<Page>

                    B.   if requested by the Spectra Shareholder or Eclipse
                         Shareholder in the Letter of Transmittal and Election
                         Form, to make available at the Depositary for pick-up
                         by the holder; or

                    C.   if the Letter of Transmittal and Election Form neither
                         specifies an address nor contains a request as
                         described in (B), to forward or cause to be forwarded
                         to the Spectra Shareholder or Eclipse Shareholder at
                         the address of such holder as shown on the share
                         register maintained by Spectra or Eclipse, as
                         applicable, certificates representing the number of
                         Sanchez Shares issuable to such Spectra Shareholder or
                         Eclipse Shareholder as determined in accordance with
                         the provisions hereof, together with a cheque in the
                         amount, if any, payable to such Spectra Shareholder or
                         Eclipse Shareholder pursuant to this Section 2.7(d).
                         Subco shall have provided the Depositary with
                         sufficient certificates representing Sanchez Shares for
                         this purpose.

            (iii)   Spectra Shareholders or Eclipse Shareholders who have
                    elected to receive Sanchez Shares shall be deemed to be the
                    registered holder for all purposes as of the Effective Time
                    of the number of Sanchez Shares to which they are entitled.
                    All dividends paid or other distributions made on or after
                    the Effective Date on or in respect of any Sanchez Shares
                    which a Spectra Shareholder or Eclipse Shareholder is
                    entitled to receive pursuant to the Plan of Arrangement, but
                    for which a certificate has not yet been delivered to such
                    Spectra Shareholder or Eclipse Shareholder in accordance
                    with this Section 2.7(d), shall be paid or made to such
                    Spectra Shareholder or Eclipse Shareholder when such
                    certificate is delivered to such Spectra Shareholder or
                    Eclipse Shareholder in accordance with this Section 2.7(d).

            (iv)    Subject to Section 2.6, and after the Effective Date, any
                    certificate formerly representing Spectra Shares shall
                    represent only the right to receive Sanchez Shares or cash
                    in accordance with the Arrangement. Any portion of the
                    Closing Payment Fund (including any undistributed Option
                    Consideration, Warrant Consideration or Bonus Consideration)
                    which remains undistributed to the beneficial holders of
                    Spectra Shares, Spectra Options, Spectra Warrants or 2001
                    Employee Bonus on the first anniversary of the Effective
                    Time shall be delivered to the Surviving Corporation, upon
                    demand, and any such holders who have not theretofore
                    complied with this Section 2.7 and the instructions set
                    forth in the Letter of Transmittal and Election Form mailed
                    to such holder shall thereafter look only to Sanchez and the
                    Surviving Corporation for payment of the consideration to
                    which they are entitled under this Section 2.7. All interest
                    accrued in respect of the Closing Payment Fund shall inure
                    to the benefit of and be paid to the Surviving Corporation.

                                      -26-
<Page>

            (v)     Any dividends or other distributions to which the Spectra
                    Shareholder or Eclipse Shareholder is entitled under this
                    Section 2.7(d), and any such certificate formerly
                    representing Spectra Shares not duly surrendered on or prior
                    to the second anniversary of the Effective Date shall cease
                    to represent a claim on interest of any kind or nature,
                    including a claim for dividends or other distributions under
                    this Section 2.7(d), against Sanchez, Subco or Spectra by a
                    former Spectra Shareholder or Eclipse Shareholder. On such
                    date, all cash and Sanchez Shares to which the former
                    Spectra Shareholder or Eclipse Shareholder of such
                    certificates was entitled shall be deemed to have been
                    surrendered to Subco.

     (e)    FRACTIONAL SHARES. No fractional Sanchez Shares will be issued
            pursuant to this Agreement. In lieu of a fractional Sanchez Share, a
            Spectra Shareholder or Eclipse Shareholder who would otherwise
            receive a fraction of a Sanchez Share will receive a cash payment
            from Sanchez determined on the basis of the Weighted Average Sales
            Price of a Sanchez Share as of the Closing Date multiplied by such
            fractioned Sanchez Share.

     (f)    ILLEGALITY OF DELIVERY OF SANCHEZ SHARES. Notwithstanding the
            foregoing, if it appears to Sanchez or Subco that it would be
            contrary to Applicable Law to issue or transfer, as the case may be,
            Sanchez Shares pursuant to the Arrangement to a person that is not a
            resident of Canada, the Sanchez Shares that otherwise would be
            issued or transferred, as the case may be, to that person will be
            issued or transferred, as the case may be, and delivered to the
            Depositary for sale of the Sanchez Shares by the Depositary on
            behalf of that person. The Sanchez Shares delivered to the
            Depositary will be pooled and sold as soon as practicable after the
            Effective Date, on such dates and at such prices as the Depositary
            determines in its sole discretion. The Depositary shall not be
            obligated to seek or obtain a minimum price for any of the Sanchez
            Shares sold by it. Each such person will receive a pro rata share of
            the cash proceeds from the sale of the Sanchez Shares sold by the
            Depositary (less commissions, other reasonable expenses incurred in
            connection with the sale of the Sanchez Shares and any amount
            withheld in respect of Canadian taxes) in lieu of the Sanchez
            Shares. The net proceeds will be remitted in the same manner as set
            forth in this Section 2.7. None of Spectra, the McLeod Parties,
            Sanchez, Subco or the Depositary will be liable for any loss arising
            out of any such sales.

     (g)    SECTION 116 OF THE ITA

            (i)     Each Spectra Equity Holder that is a non-resident of Canada
                    (each a "NON-RESIDENT SHAREHOLDER") for the purposes of
                    section 116 of the ITA shall on or before the Effective
                    Date, deliver to Subco a certificate issued by the Minister
                    of National Revenue of Canada pursuant to subsection 116(2)
                    of the ITA (a "SECTION 116 CERTIFICATE") in respect of the
                    proposed disposition by such Spectra Equity Holder of the
                    Spectra Shares, Spectra Options, Spectra Warrants or 2001
                    Bonus Award, as applicable. The Section 116 Certificate
                    delivered by the Spectra Equity Holder shall

                                      -27-
<Page>

                    specify a "certificate limit" in an amount no less than the
                    aggregate consideration to be received hereunder by such
                    Spectra Equity Holder (for each such Non-resident
                    Shareholder the "LIMIT AMOUNT").

            (ii)    In the event that the Section 116 Certificate required under
                    Section 2.7(g)(i) has not been delivered by a Non-resident
                    Shareholder on or before the Effective Time, or in the event
                    that a Section 116 Certificate does not specify a
                    "certificate limit" that is no less than the Limit Amount
                    for such Non-resident Shareholder, the Depositary shall
                    withhold from payment an amount equal to 25% of the Limit
                    Amount, or, if a Section 116 Certificate has been delivered
                    by the Non-resident Shareholder, an amount equal to 25% of
                    the Limit Amount less the certificate limit specified in the
                    Section 116 Certificate (the "WITHHELD AMOUNT"). The
                    Withheld Amount shall be in addition to amounts held in
                    respect of the Holdback Amount, as applicable. The Withheld
                    Amount shall be immediately converted to Canadian dollars
                    and deposited by the Depositary in an interest bearing
                    Canadian dollar trust account at a bank located in Ontario
                    to be held for the benefit of the Non-resident Shareholder
                    to be disposed of as set out herein. The Withheld Amount
                    shall be remitted by the Depositary to Subco five Business
                    Days prior to the day that the Withheld Amount is required
                    to be so remitted pursuant to subsection 116(5) of the ITA
                    (the "Remittance Date") who shall in turn remit such amount
                    to the Receiver General of Canada on, or up to five Business
                    Days prior to, the Remittance Date. All interest earned on
                    the Withheld Amount shall be for the account of Non-resident
                    Shareholder and the full amount of such interest less any
                    applicable Taxes of any nature whatsoever applicable to such
                    interest shall be paid by the Depositary to the Non-resident
                    Shareholder on the Remittance Date.

            (iii)   Notwithstanding the foregoing, if the Non-resident
                    Shareholder delivers a Section 116 Certificate to the
                    Depositary at any time after the Closing Date and prior to
                    the day that is five Business Days before the Remittance
                    Date that exonerates Subco from liability under Section 116
                    of the ITA in respect of any payment pursuant to this
                    Agreement in the amount of the "certificate limit" specified
                    in the Section 116 Certificate, the Depositary shall pay to
                    such Spectra Equity Holder on account of such payment an
                    amount equal to the amount, if any, by which

                    A.   the aggregate of

                         (1)  the Withheld Amount; and

                         (2)  the amount, if any, by which

                              a)   the amount of interest received by the
                                   Depositary on the Withheld Amount

                                      -28-
<Page>

                                   exceeds

                              b)   the amount of any tax payable by the
                                   Depositary in respect of any interest on the
                                   Withheld Amount or which the Depositary is
                                   required or entitled to withhold or deduct in
                                   respect of such interest

                         exceeds

                    B.   25% of the amount, if any, by which

                         (1)  such payment

                              exceeds

                         (2)  the "certificate limit" specified in the Section
                              116 Certificate.

                    The balance of the Withheld Amount shall be remitted by the
                    Depositary to Subco five days prior to the Remittance Date
                    and in turn by Subco to the Receiver General of Canada on,
                    or up to five Business Days prior to, the Remittance Date.

2.8         SPECTRA OPTIONS AND WARRANTS

     (a)    SURRENDER OF SPECTRA OPTIONS.

            (i)     Spectra will use commercially reasonable efforts to obtain
                    from each holder of a Spectra Option, promptly after the
                    date of this Agreement, an option surrender agreement
                    substantially in the form of Schedule 2.8(a) attached hereto
                    (an "OPTION SURRENDER AGREEMENT"), duly executed and
                    delivered by such holder (which agreement may be conditioned
                    upon the Spectra Shareholder Approval and the consummation
                    of the Arrangement). At the Effective Time, each then
                    outstanding Spectra Option shall be cancelled and shall
                    represent the right to receive the Option Consideration, net
                    to the holder, payable to the holder thereof in cash,
                    without any interest thereon, less any required withholding
                    taxes. No outstanding Spectra Option, the holder of which
                    has not duly executed and delivered to Spectra an Option
                    Surrender Agreement in accordance with this Section 2.8
                    hereof, will be entitled to receive any portion of the
                    Option Consideration until such holder duly executes and
                    delivers to the Surviving Corporation an Option Surrender
                    Agreement; at which time each then outstanding Spectra
                    Option held by such holder shall be cancelled, net to the
                    holder of any deductions set forth herein, payable to the
                    holder thereof in cash, without any interest thereon, less
                    any required withholding taxes.

                                      -29-
<Page>

            (ii)    The Term "OPTION CONSIDERATION" means, with respect to each
                    Spectra Option, an amount equal to the product of (i) the
                    result of (A) the quotient of (1) the Closing Consideration,
                    divided by (2) the Fully Diluted Amount, minus (B) the per
                    share exercise price of such Spectra Option, to the extent
                    such amount is a positive number, multiplied by (ii) the
                    number of Spectra Shares pursuant to which such Spectra
                    Option is exercisable. The calculation is based on the steps
                    set forth in Section 2.7(c)(i)(A) through (G) being
                    performed mechanically in an iterative fashion in each case
                    adjusting the Option, Warrant and Bonus Consideration paid
                    under Section 2.3(b) for the per share amount received on
                    the prior calculation. Such calculation will be performed
                    100 times to ensure that the amount per share is calculated
                    with sufficient efficiency, all as set forth on Schedule
                    2.7(c)(ii), which shall be updated at Closing to include the
                    amounts set forth on the Closing Certificate and the Spectra
                    Transaction Fees.

     (b)    SURRENDER OF SPECTRA WARRANTS.

            (i)     Spectra will obtain from each holder of a Spectra Warrant,
                    promptly after the date of this Agreement, a surrender
                    agreement in the form of Schedule 2.8 (b) attached hereto
                    (the "WARRANT SURRENDER AGREEMENT") duly executed and
                    delivered by such warrant holder (which agreement may be
                    conditioned upon Spectra Shareholder Approval and the
                    consummation of the Arrangement). At the Effective Time,
                    each then outstanding Spectra Warrant shall be cancelled and
                    shall represent the right to receive the following
                    consideration. With respect to each Spectra Share subject to
                    such Spectra Warrant, the Spectra Warrant shall be converted
                    into the right to receive cash in the amount of the Warrant
                    Consideration, net to the holder, payable to the holder
                    thereof in cash, without any interest thereon, less any
                    required withholding taxes. No outstanding Spectra Warrant,
                    the holder of which has not duly executed and delivered to
                    Spectra a Warrant Surrender Agreement in accordance with
                    this Section 2.8 hereof, will be entitled to receive any
                    portion of the Warrant Consideration until such holder duly
                    executes and delivers to the Surviving Corporation a Warrant
                    Surrender Agreement; at which time each then outstanding
                    Spectra Warrant held by such holder shall be cancelled, net
                    to the holder of any deductions set forth herein, payable to
                    the holder thereof in cash, without any interest thereon,
                    less any required withholding taxes.

            (ii)    The term "WARRANT CONSIDERATION" means an amount equal to
                    the product of (i) the result of (A) the quotient of (1) the
                    Closing Consideration, divided by (2) the Fully Diluted
                    Amount, minus (B) the per share exercise price of such
                    Spectra Warrant, to the extent such amount is a positive
                    number, multiplied by (ii) the number of Spectra Shares
                    pursuant to which such Spectra Warrant is exercisable. The
                    calculation is based on the steps set forth in Section
                    2.7(c)(i)(A) through (G) being performed mechanically in an
                    iterative fashion in each case adjusting the

                                      -30-
<Page>

                    Option, Warrant and Bonus Consideration paid under Section
                    2.3(b) for the per share amount received on the prior
                    calculation. Such calculation will be performed 100 times to
                    ensure that the amount per share is calculated with
                    sufficient efficiency; all as set forth on Schedule
                    2.7(c)(ii), which shall be updated at Closing to include the
                    amounts set forth on the Closing Certificate and the Spectra
                    Transaction Fees.

     (c)    SURRENDER OF 2001 EMPLOYEE BONUS.

            (i)     Spectra will use commercially reasonable efforts to obtain
                    from each holder of a bonus pursuant to Spectra's 2001 bonus
                    plan (the "2001 EMPLOYEE BONUS"), promptly after the date of
                    this agreement, a bonus surrender agreement substantially in
                    the form of Schedule 2.8(c) attached hereto (a "BONUS
                    SURRENDER AGREEMENT"), duly executed and delivered by such
                    holder (which agreement may be conditioned upon the Spectra
                    Shareholder Approval and consummation of the Arrangements).
                    At the Effective Time, each then outstanding 2001 Employee
                    Bonus shall be cancelled and shall represent the right to
                    receive the Bonus Consideration, net to the holder, payable
                    to the holder thereof in cash, without any interest thereon,
                    less any required withholding taxes. No outstanding 2001
                    Employee Bonus, the holder of which has not duly executed
                    and delivered to Spectra a Bonus Surrender Agreement in
                    accordance with this Section 2.8 hereof, will be entitled to
                    receive any portion of the Bonus Consideration until such
                    holder duly executes and delivers to the Surviving
                    Corporation a Bonus Surrender Agreement; at which time each
                    then outstanding 2001 Employee Bonus held by such holder
                    shall be cancelled, net to the holder of any deductions set
                    forth herein, payable to the holder in cash, without any
                    interest thereon, less any required withholding taxes.

            (ii)    The term "BONUS CONSIDERATION" means an amount equal to the
                    product of (i) the result of (A) the quotient of (1) the
                    Closing Consideration, divided by (2) the Fully Diluted
                    Amount, minus (B) the per share exercise price of such 2001
                    Employee Bonus, to the extent such amount is a positive
                    number, multiplied by (ii) the number of Spectra Shares
                    pursuant to which such 2001 Employee Bonus is exercisable.
                    The calculation is based on the steps set forth in Section
                    2.7(c)(i)(A) through (G) being performed mechanically in an
                    iterative fashion in each case adjusting the Option, Warrant
                    and Bonus Consideration paid under Section 2.3(b) for the
                    per share amount received on the prior calculation. Such
                    calculation will be performed 100 times to ensure that the
                    amount per share is calculated with sufficient efficiency;
                    all as set forth on Schedule 2.7(c)(ii), which shall be
                    updated at Closing to include the amounts set forth on the
                    Closing Certificate and the Spectra Transaction Fees.

     (d)    TERMINATION OF RIGHTS. The surrender of a Spectra Option to Spectra
            and/or the Surviving Corporation in exchange for the Option
            Consideration shall be deemed

                                      -31-
<Page>

            a release of any and all rights the holder thereof had or may have
            had in respect of such Spectra Option and each applicable surrender
            agreement shall include such a release in its terms. The surrender
            of a Spectra Warrant to Spectra and/or the Surviving Corporation in
            exchange for the Warrant Consideration shall be deemed a release of
            any and all rights the holder thereof had or may have had in respect
            of such Spectra Warrant and each applicable surrender agreement
            shall include such a release in its terms. The surrender of a 2001
            Employee Bonus to Spectra and/or the Surviving Corporation in
            exchange for the Bonus Consideration shall be deemed a release of
            any and all rights the holder thereof had or may have had in respect
            of such 2001 Employee Bonus and each applicable surrender agreement
            shall include a release in its terms. Prior to the Special Meeting,
            Spectra shall take all action necessary (including such actions by
            the Spectra Board (or any committees thereof)), to make certain
            that, following the Effective Time, no warrant holder, participant
            in such stock option plan, participant in any employee bonus plan or
            any other plans, programs or arrangements, or other party shall have
            any right thereunder to acquire equity securities of Spectra, the
            Surviving Corporation, Sanchez or any Subsidiary thereof.

     (e)    PAYMENT PROCEDURES.

            (i)     Upon the delivery of a duly executed Option Surrender
                    Agreement by a holder of a Spectra Option, the Depositary
                    shall pay to each such holder the Option Consideration, in
                    respect thereof (less, in each case, the applicable Option
                    Holdback Amount pursuant to Section 2.9 for each such option
                    and less any required withholding taxes pursuant to the
                    terms of Section 2.7 hereof).

            (ii)    Upon the delivery of a duly executed Warrant Surrender
                    Agreement by a holder of a Spectra Warrant, the Depositary
                    shall pay to each such holder the Warrant Consideration, in
                    respect thereof (less, in each case, the applicable portion
                    of the Warrant Holdback Amount pursuant to Section 2.9 for
                    each such warrant and less any required withholding taxes)
                    pursuant to the terms of Section 2.7 hereof.

            (iii)   Upon the delivery of a duly executed Bonus Surrender
                    Agreement by a holder of a 2001 Employee Bonus, the
                    Depositary shall pay to each such holder the Bonus
                    Consideration, in respect thereof (less, in each case, the
                    applicable portion of the 2001 Employee Bonus Holdback
                    Amount pursuant to Section 2.9 for each such 2001 Employee
                    Bonus and less any required withholding taxes) pursuant to
                    the terms of Section 2.7 hereof.

            (iv)    No interest shall be paid or accrued on any Option
                    Consideration, Warrant Consideration or Bonus Consideration.

                                      -32-
<Page>

2.9         HOLDBACK AMOUNT

     (a)    HOLDBACK AMOUNT. Subco shall pay from the Closing Payment Fund in
            accordance with Section 2.7 hereof, and not as additional
            consideration, an amount (the "HOLDBACK AMOUNT") equal to $7,365,500
            at Closing to the Depositary pursuant to the Escrow Agreement (the
            "ESCROW ACCOUNT"), such amount which shall be deemed to be paid by
            each Spectra Shareholder and Eclipse Shareholder from the Cash
            Option, and the holders of Spectra Options, Spectra Warrants and
            2001 Employee Bonus based on his or its proportionate ownership
            interest of Spectra (and as to an Eclipse Share the ownership of
            Spectra Shares held by Eclipse), as set forth on Schedule 2.9
            attached hereto, as updated at Closing to reflect the Closing Net
            Debt Adjustment and the Spectra Transaction Fees. The Escrow Account
            shall be available to fund any obligations of (i) Spectra and the
            Spectra Equity Holders under this Agreement, the Support Agreement
            and the Plan of Arrangement, and (ii) the Eclipse Shareholders under
            Section 3.4 of this Agreement, the Support Agreement and the Plan of
            Arrangement, and shall be subject to adjustment, deduction and
            set-off for, amongst other things, the indemnification obligations
            in favour of the Sanchez Parties and other Persons set forth in
            Sections 3.4 and in the Support Agreement.

     (b)    RELEASE OF HOLDBACK AMOUNT. The Depositary will retain the Holdback
            Amount in escrow pursuant to the terms of this Agreement and the
            Escrow Agreement and will, when required to pursuant the Escrow
            Agreement, release and deliver such funds to the former Holders of
            Spectra Shares and Eclipse Shares, and the holders of the Spectra
            Warrants, Spectra Options and 2001 Employee Bonus in the pro-rated
            amount calculated as set forth in Section 2.9(a) above with the
            applicable Withholding Taxes deducted and such applicable
            Withholding Taxes to be paid to the applicable Governmental Entity.

2.10        ADJUSTMENT OF BASE PURCHASE PRICE

The Base Purchase Price shall be adjusted at Closing as set forth in Section 2.5
hereof. The Closing Cash Amount shall be determined for purposes of Closing
based on a closing certificate executed by, and the truth and accuracy of which
is certified by, the Chief Financial Officer and the Chief Executive Officer of
Spectra (the "CLOSING CERTIFICATE") that shall be delivered to the Sanchez
Parties Three Business Days prior to the Closing, such Closing Certificate which
shall set forth the Closing Cash Amount and the Debenture Payoff Amount at
Closing and shall be accompanied by a revised Schedule 2.7(c)(ii) and Schedule
2.9 to reflect the amounts set forth on the Closing Certificate. Such Closing
Certificate shall be accompanied by (i) a certificate of an officer of VenGrowth
certifying that the Debenture Payoff Amount shown therein is accurate and that
no further amounts are owed to VenGrowth in connection with the VenGrowth
Debentures and (ii) a certificate of an officer of each bank or other
institution at which Spectra has an account that contains Cash certifying to the
amount of Cash in such account.

                                      -33-
<Page>

2.11        SHAREHOLDERS' REPRESENTATIVE

As of the date of the Plan of Arrangement, each Spectra Shareholder and the
Eclipse Shareholders (pursuant to their approval of this Agreement and the
Transactions) and each holder of Spectra Options, Spectra Warrants and 2001
Employee Bonus as set forth in their Option Surrender Agreement, Warrant
Surrender Agreement or Bonus Surrender Agreement, appoints McCarthy Tetrault LLP
as the shareholders' representative (the "SHAREHOLDERS' REPRESENTATIVE")
pursuant to the Escrow Agreement and authorizes the Shareholders' Representative
to act on such Person's behalf in effecting the performance of the Escrow
Agreement and Section 3.5 of this Agreement and any other document, instrument
or agreement executed and delivered in connection with the Escrow Agreement or
Section 3.5 of this Agreement or the transactions contemplated thereby, with
full power and authority to bind such Person as though such Person was present
and acting on his, her or its behalf. Each such Person further authorizes
Sanchez and Subco to discuss all matters relating to the Escrow Agreement and
Section 3.5 of this Agreement and any other matters associated with the
transactions contemplated therein with the Shareholders' Representative acting
on behalf of all such Persons.

2.12        CLOSING

The Stock Purchase Closings shall occur on the Stock Purchase Closing Date,
assuming the satisfaction or waiver of the applicable conditions set forth in
Sections 5.1, 5.2 and 5.3 hereof (other than those involving the delivery of
documents, agreements and instruments at the Closing). The Closing of the
Arrangement and all of other transactions contemplated in the Arrangement shall
(subject to satisfaction or waiver of the conditions set forth in Sections 5.1,
5.4 and 5.5 hereof) begin at 10:00 a.m., local time, on the fourth Business Day
following the satisfaction or waiver of the conditions set forth in Sections
5.1, 5.4 and 5.5 hereof (other than those involving the delivery of documents,
agreements and instruments at the Closing) (the "CLOSING DATE"), at the offices
of McCarthy Tetrault LLP or such other place as is mutually agreed to in writing
by the parties hereto. At or prior to the Closing, the parties shall take all
administrative actions necessary to prepare to effect the Transactions. On the
Stock Purchase Closing Date, the capital stock of the applicable Subsidiaries of
Spectra shall be delivered to Sanchez or Sanchez Delaware, as applicable, so as
to transfer good, valid and marketable title to such shares and the Aggregate
Spectra Subsidiary Purchase Price shall be paid to Spectra pursuant to the terms
and conditions hereof. On the Closing Date, (i), the Articles of Arrangement
shall be filed with the appropriate Governmental Entity so that they shall
become effective and the Arrangement shall thereby be effected on the Closing
Date and (ii) all transactions contemplated by this Agreement, including the
conversion of the Spectra Shares and the Eclipse Shares shall be consummated.
All actions taken at the Closing shall be deemed to have occurred
simultaneously, and shall be effective as of the close of business on the
Closing Date.

                                      -34-
<Page>

                   ARTICLE 3 - REPRESENTATIONS AND WARRANTIES

3.1         REPRESENTATIONS AND WARRANTIES OF SPECTRA

Spectra and its Subsidiaries hereby, jointly and severally, represent and
warrant to and in favour of the Sanchez Parties as follows, and acknowledge that
the Sanchez Parties are relying upon such representation and warranties in
connection with the matters contemplated by this Agreement:

INCORPORATION

     (a)    Spectra is a corporation duly incorporated, organized and is validly
            subsisting under the laws of the Province of Ontario with the
            corporate power and authority to own, lease and operate its assets
            and to carry on its business and has made all necessary filings
            under all Applicable Laws. Spectra is not qualified to transact
            business as a foreign corporation and has never been required to be
            so qualified, or in good standing, in any jurisdiction other than
            Canada.

SUBSIDIARIES

     (b)    Spectra has no Subsidiaries other than Spectra US, Spectra Australia
            and Spectra UK. Except for a 20% ownership interest in Croesus
            Finansoft, Inc. ("CROESUS"), neither Spectra nor any of its
            Subsidiaries (i) owns any shares of capital stock, units or any
            other interest of any other Person or any rights, options, warrants
            or other securities of any other Person, (ii) does not have any
            agreement for the purchase, subscription or issuance of any of the
            unissued shares of capital rights, options, warrants, securities or
            any other interest of any other Person and (iii) does not have any
            interest, directly or indirectly, in any other Person.

     (c)    Each of the Subsidiaries of Spectra is a corporation duly organized,
            validly existing and in good standing under the laws of its
            jurisdiction of incorporation with the corporate power and authority
            to own, lease and operates its assets and to carry on its business
            and has made all necessary filings under all Applicable Laws.
            Spectra US is qualified to transact business as a foreign
            corporation in the State of New York. No other Spectra Subsidiary
            is, or has at any time been, required to be duly qualified to
            transact business as a foreign corporation in any jurisdiction.

     (d)    No bankruptcy, insolvency or receivership proceedings have been
            instituted or are pending against Spectra or any of its Subsidiaries
            and Spectra and its Subsidiaries are able to satisfy their
            liabilities as they become due.

CAPITALIZATION

     (e)    The authorized capital stock of Spectra consists of an unlimited
            number of common shares and preferred shares, of which 17,840,891
            common shares and 6,881,984 preferred shares have been validly
            issued and are outstanding as fully paid and non-assessable and of
            which 25,505,458 common shares (which includes

                                      -35-
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            the 17,840,891 common shares outstanding as of the date hereof,
            6,881,984 common shares into which the outstanding preferred shares
            on the date hereof will be converted and the UpTick Shares to be
            issued prior to Closing) and no preferred shares will be validly
            issued and outstanding as fully paid and non-assessable on the
            Closing Date, all of which are, or will be at Closing, as the case
            may be, beneficially owned by and registered in the name of those
            Persons set forth on Schedule 3.1(e). The rights, privileges,
            restrictions and conditions attached to the Spectra Shares are set
            out in the Articles of Amalgamation of Spectra, a copy of which are
            attached as Exhibit E. Other than as set forth on Schedule 3.1(e),
            there are no outstanding options, warrants, convertible or
            exchangeable securities or other rights to (i) purchase Spectra
            Shares, or (ii) require Spectra to allot or issue any of its capital
            stock.

     (f)    The ordinary shares of Spectra Australia consists of 12 shares of
            which all have been validly issued and are fully paid and which are
            beneficially owned by and registered in the name of Spectra. The
            rights, privileges, restrictions and conditions of such shares are
            set forth in the Constitution of Spectra Australia attached hereto
            as Schedule 3.1(f). There are no outstanding options, warrants,
            convertible or exchangeable securities or other rights to (i)
            purchase shares of Spectra Australia, or (ii) require Spectra
            Australia to allot or issue any shares.

     (g)    The authorized capital stock of Spectra UK consists of 1,000 common
            shares par value of L 1.00 per share, of which 2 shares have
            been validly issued and are outstanding as fully paid and
            non-assessable, all of which are beneficially owned by and
            registered in the name of Spectra. The rights, privileges,
            restrictions and conditions of such common stock are set forth in
            the Articles of Association or other similar documents of Spectra UK
            attached hereto as Schedule 3.1(g). There are no outstanding
            options, warrants, convertible or exchangeable securities or other
            rights to (i) purchase shares of capital stock of Spectra UK, or
            (ii) require Spectra UK to allot or issue any of its capital stock.

     (h)    The authorized capital stock of Spectra US consists of 3,000 shares
            of common stock, $1.00 par value per share of which 600 shares have
            been validly issued and are outstanding as fully paid and
            non-assessable, all of which are beneficially owned by and
            registered in the name of Spectra. The rights, privileges,
            restrictions and conditions of such common stock are set forth in
            the Certificate of Incorporation or other similar documents of
            Spectra US attached hereto as Schedule 3.1(h). There are no
            outstanding options, warrants, convertible or exchangeable
            securities or other rights to (i) purchase shares of capital stock
            of Spectra US, or (ii) require Spectra US to allot or issue any of
            its capital stock.

     (i)    There is no Contract, option, or any other right of another binding
            upon or which at any time in the future may become binding upon
            Spectra to sell, transfer, assign, pledge, charge, mortgage or any
            other way to dispose of or encumber any of the Sub Shares other than
            pursuant to the provisions of this Agreement.

                                      -36-
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     (j)    Spectra has good and valid title to the Sub Shares owned by it, free
            and clear of all Encumbrances.

AUTHORITY AND ENFORCEABILITY

     (k)    Spectra has the requisite power and authority to execute, deliver
            and enter into this Agreement and each of the documents, agreements
            and instruments to be executed, delivered and performed by it in
            connection with this Agreement (collectively the "COLLATERAL
            DOCUMENTS") and perform the actions and complete the transactions to
            be completed by it hereunder and thereunder. The execution, delivery
            and performance of this Agreement and each of the Collateral
            Documents to which Spectra is a party, and the consummation of the
            transactions contemplated hereby and thereby, has been authorized by
            all necessary action (corporate or otherwise) on the part of
            Spectra, including the approval of the Transactions and this
            Agreement by the Spectra Board, other than (i) the approval of the
            Spectra Board solely with respect to the Information Circular and
            (ii) shareholder approval with respect to the completion of the
            Transactions as contemplated herein. Other than as contemplated
            herein, no further authorization or consent will be required by
            Spectra or any of its Subsidiaries in order to consummate the
            Transactions. This Agreement and the Collateral Documents to be
            executed and delivered by Spectra have been duly and validly
            executed and delivered by Spectra and constitute the legal, valid
            and binding obligation of Spectra, enforceable against it in
            accordance with their respective terms, except as such enforcement
            may be limited by applicable bankruptcy, insolvency, moratorium or
            similar Laws affecting the enforcement of creditors' rights
            generally.

SPECTRA BOARD REPRESENTATION

     (l)    The board of directors of Spectra has determined to recommend that
            the Spectra Shareholders vote in favour of the Transactions.

CONTRAVENTION

     (m)    The execution, delivery and performance of this Agreement and each
            of the Collateral Documents, and the consummation of the
            Transactions, by Spectra or any of its Subsidiaries, do not and will
            not (i) result in a Default, of or under (A) any of the terms of the
            Organizational Documents of Spectra or any of its Subsidiaries, (B)
            assuming the receipt of all Required Consents of a Governmental
            Entity, any Law or Court Order applicable to or binding upon any of
            the Companies, or (C) assuming the receipt of all Required Consents,
            any Contracts, Licenses or Permits to which any of the Companies is
            a party or by which they are bound, (ii) result in the creation or
            imposition of any Encumbrances, other than Permitted Liens, upon any
            of the equity interests of any of the Companies or upon any of the
            assets or properties of any of the Companies, or (iii) assuming the
            receipt of all Required Consents, (A) result in the termination,
            amendment or modification of, or give any party the right to

                                      -37-
<Page>

            terminate, amend, modify, abandon, or refuse to perform any
            Contract, License or Permit to which any of the Companies is a party
            or by which they, or any of their properties or assets, are bound,
            or (B) result in the acceleration or modification, or give any party
            the right to accelerate or modify, the time within which, or the
            terms under which, any duties or obligations are to be performed, or
            any rights or benefits are to be received under any Contract,
            License or Permit to which any of the Companies is a party or by
            which they, or any of their properties or assets, are bound.

FINANCIAL STATEMENTS

     (n)    The corporate records and minute books of Spectra and its
            Subsidiaries are maintained in all material respects in accordance
            with Applicable Law. The books, records and accounts of Spectra and
            its Subsidiaries, in all material respects: (i) have been maintained
            in accordance with good business practices on a basis consistent
            with prior years; and (ii) are stated in reasonable detail and
            accurately and fairly reflect the transactions and dispositions of
            the assets of Spectra and its Subsidiaries. Except as set forth on
            Schedule 3.1(n), there have been no material changes in accounting
            policies of Spectra and its Subsidiaries since September 1, 1998.
            Spectra and its Subsidiaries have devised and maintain a system of
            internal accounting controls sufficient to provide reasonable
            assurances that: (i) transactions are executed in accordance with
            management's general or specific authorization and (ii) transactions
            are recorded as necessary (A) to permit preparation of financial
            statements in conformity with applicable GAAP and (B) to maintain
            accountability for assets.

     (o)    The consolidated financial statements of Spectra and its
            Subsidiaries, consisting of the audited consolidated balance sheet
            and consolidated statements of operations and cash flows for the
            period ended on August 31, 2001 (the "BALANCE SHEET DATE"), the
            notes thereto and the accompanying report of the auditors of
            Spectra, and the unaudited consolidated balance sheet and
            consolidated statements of operations and cash flow for the period
            ended March 31, 2002 (collectively, the "FINANCIAL STATEMENTS"):

            (i)     are in accordance with the Books and Records of Spectra and
                    its Subsidiaries;

            (ii)    are true and correct and present fairly the financial
                    position of Spectra on a consolidated basis as of the date
                    presented and the changes in Spectra's financial position
                    for the periods then ended;

            (iii)   have been prepared in accordance with applicable GAAP;

            (iv)    contain and reflect adequate provision or allowance for all
                    reasonably anticipated liabilities, expenses and losses of
                    Spectra and its Subsidiaries; and

                                      -38-
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            (v)     present fairly and in accordance with applicable GAAP and on
                    a consolidated basis all of the assets and liabilities of
                    Spectra as at the dates presented including all contingent
                    liabilities of Spectra required to be disclosed by
                    applicable GAAP as at the dates presented.

     (p)    Since the Balance Sheet Date, the Business has been carried on in
            its usual and ordinary course and neither Spectra nor any of its
            Subsidiaries has entered into any transaction out of the usual and
            ordinary course of the Business. The accruals set forth on
            Schedule 3.1(p) shall be recorded on Spectra's Books and Records as
            of the Closing Date.

     (q)    On the Effective Date, neither Spectra nor any of its Subsidiaries
            will have any Liabilities (except for (i) those Liabilities set
            forth in the Financial Statements and (ii) those Liabilities which
            arose after the Balance Sheet Date and were incurred in the ordinary
            course of business, consistent with past practices and in compliance
            with the covenants and agreements of Spectra and its Subsidiaries
            herein contained, as the case may be).

ABSENCE OF CHANGES

     (r)    Except as set forth on Schedule 3.1(sss), since the Balance Sheet
            Date, neither Spectra nor any of its Subsidiaries has had:

            (i)     any Material Adverse Change;

            (ii)    any damage, destruction or Loss (whether or not covered by
                    insurance) or any condemnation by any Governmental Entity,
                    whether or not arising as a result of any legislative or
                    regulatory change, revocation of any licence or right to do
                    business, fire, explosion, accident, casualty, labour
                    dispute, flood, drought, riot, storm, condemnation, act of
                    God, public force or otherwise, which has had or may have a
                    Material Adverse Effect;

            (iii)   any strike, lockout, labour trouble or any event or
                    condition of any character having a Material Adverse Effect;

            (iv)    any declaration, setting aside or payment of any dividend or
                    other distribution in respect of any of the Sub Shares, or
                    any direct or indirect redemption, purchase or other
                    acquisition of any of the Sub Shares;

            (v)     any increase in the compensation payable or to become
                    payable by Spectra or any of its Subsidiaries to any of
                    their officers, employees or agents, or any known payment or
                    arrangement made to or with any thereof, other than normal
                    increases in compensation to employees consistent with past
                    practices; or

            (vi)    any amendments to their charter, bylaws or other
                    organizational documents.

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<Page>

     (s)    Neither Spectra nor any of its Subsidiaries has taken or agreed to
            take, whether in writing or otherwise, either (i) any action
            described in Section 3.1(r) above or in Sections 3.1(y), 3.1(z) or
            3.1(aa) below (Contracts and Commitments) or (ii) any action which
            would result in the occurrence of any of the events described
            Section 3.1(r) above or in Sections 3.1(y), 3.1(z) or 3.1(aa) below.
            Neither Spectra nor any of its Subsidiaries has omitted to take any
            action where the omission could reasonably be expected to result in
            or lead to the occurrence of any of the events described in Section
            3.1(r) above or in Sections 3.1(y), 3.1(z) or 3.1(aa) below.

     (t)    No dividends have been declared or paid on or in respect of the
            Spectra Shares and no distribution on any of its securities or
            shares has been made or authorized by Spectra or any of its
            Subsidiaries (other than in the case of a Subsidiary, a distribution
            to Spectra or another Subsidiary) since the Balance Sheet Date.

CONDITION OF ASSETS

     (u)    Spectra and each of its Subsidiaries have good and marketable title
            to, or have valid leasehold interests in or valid rights under a
            Contract to use, all of the their properties and assets (real and
            personal, immovable and moveable, tangible and intangible, including
            leasehold interests), including all the properties and assets shown
            or reflected on the balance sheets forming part of the Financial
            Statements and of all assets acquired by Spectra or one of its
            Subsidiaries since the Balance Sheet Date, free and clear of all
            Encumbrances, except such of the assets as have been disposed of in
            the usual and ordinary course of business since the Balance Sheet
            Date. The tangible personal property included in such property and
            assets (including equipment) is in good working order and fit for
            its intended use, reasonable wear and tear excepted. The properties
            and assets of Spectra and its Subsidiaries, taken as a whole,
            together with all leasehold interests and Contracts relating
            thereto, are adequate to conduct the Business.

     (v)    Except as set forth on Schedule 3.1(v), no properties or assets used
            by Spectra or its Subsidiaries in connection with the Business
            (other than the real property subject to the Real Property Leases)
            is held under any lease, security agreement, pledge agreement or
            security arrangement or is located other than in the possession of
            Spectra or its Subsidiaries. All of the leases of personal property
            to which Spectra or its Subsidiaries are a party, are valid and in
            effect and afford Spectra and its Subsidiaries peaceful and
            undisturbed possession of the subject matter of the lease.

ACCOUNTS RECEIVABLE AND PAYABLE

     (w)    The accounts receivable and notes receivable of Spectra and its
            Subsidiaries have been accurately reflected in the Books and Records
            or the Financial Statements of Spectra and its Subsidiaries and are
            valid accounts receivable that arose from bona fide transaction in
            the ordinary course of business, consistent with past practices.
            Schedule 3.1(w) sets forth, as of March 31, 2002, an aged trial
            balance of all accounts receivable and any reserves relating
            thereto. Each such accounts

                                      -40-
<Page>

            and note receivable (including any loans to current or former
            employees, directors, consultants or Spectra Affiliates) is fully
            collectible in its stated amount within ninety (90) days following
            the date such account receivable was created or on the date of
            maturity with respect to a note receivable and is not subject to any
            defence, counterclaim or set-off, nor is one threatened, and there
            is an adequate allowance in the Books and Records of Spectra and its
            Subsidiaries for bad and doubtful accounts. No part of any such
            accounts or note receivable is contingent upon performance by
            Spectra (other than those accounted for as unearned revenue on the
            Financial Statements) or any other party of any obligation, and no
            agreements for deductions or discounts have been made with respect
            to any par of such accounts or note receivable. Spectra has
            collected its accounts receivable and notes receivable and paid its
            accounts payable in a consistent manner and has not taken any
            actions (e.g. acceleration of receivables or delayed payment of
            payables) that are not in the ordinary course of business and
            consistent with past practices.

CONTRACTS AND COMMITMENTS

     (x)    Schedule 3.1(x) sets forth a true and complete list of all Contracts
            to which Spectra or its Subsidiaries is a party, or by which any of
            their respective assets or properties is bound, that fall into one
            or more of the following categories:

            (i)     agreement or commitment with any current or former
                    shareholder, director, or officer, or any of their
                    Affiliates;

            (ii)    agreement, commitment or arrangement with any labour union
                    or other representative of any of their employees;

            (iii)   written employment agreement or severance agreement with any
                    of their employees or independent contractors or agents;

            (iv)    agreement or commitment for the performance of services or
                    the supply of products by a third party which involves in
                    any one case (or in the aggregate for similar type
                    arrangements) in any calendar year Fifty Thousand Dollars
                    ($50,000) and is not cancellable on thirty (30) days notice
                    or less without penalty. Schedule 3.1(x) also contains a
                    list of the five (5) largest (in terms of dollar amount)
                    active customer Contracts as of March 31, 2002;

            (v)     agreement or commitment to sell or supply products or to
                    perform services which obligates Spectra or its Subsidiaries
                    to sell products or perform services which involves in any
                    one case (or in the aggregate for similar type arrangements
                    with the same or Affiliated Persons) in any calendar year
                    One Hundred Thousand Dollars ($100,000) which is not
                    cancellable on thirty (30) days notice or less without
                    penalty;

            (vi)    outstanding proposal to sell or supply products or to
                    perform services which, upon acceptance of such proposal,
                    would obligate Spectra or its

                                      -41-
<Page>

                    Subsidiaries to sell products or perform services which
                    involves in any one case (or in the aggregate for similar
                    type arrangements with the same or Affiliated Persons) in
                    any calendar year One Hundred Thousand Dollars ($100,000)
                    which is not cancellable by Spectra or its Subsidiaries on
                    thirty (30) days notice or less without penalty;

            (vii)   distribution agreement where Spectra or its Subsidiaries is
                    acting as supplier or distributor or any agency agreement
                    where Spectra or its Subsidiaries is acting as principal or
                    agent;

            (viii)  lease under which Spectra or its Subsidiaries is either
                    lessor or lessee of personal property requiring annual lease
                    payments (including rent and any other charges) in excess of
                    One Hundred Thousand Dollars ($100,000), in any calendar
                    year (or in the aggregate for similar type arrangements with
                    the same or Affiliated Persons), and any lease under which
                    Spectra or its Subsidiaries is the lessor of real property;

            (ix)    evidence of Indebtedness, including capital leases or
                    providing for any Encumbrance on any of the assets or
                    properties of Spectra or its Subsidiaries, any agreement,
                    commitment or Contract relating to a guarantee,
                    indemnification, surety or similar obligation;

            (x)     agreement, Contract or commitment for any charitable or
                    political contribution;

            (xi)    agreement, Contract or commitment for any capital
                    expenditure in excess of Fifty Thousand Dollars ($50,000)
                    (or in the aggregate for similar type arrangements with the
                    same or Affiliated Persons);

            (xii)   agreement, Contract or commitment limiting or restraining it
                    from engaging or competing in any lines of business with any
                    Persons;

            (xiii)  license, franchise, distributorship, joint venture, royalty
                    or other similar agreement, including, without limitation,
                    those which relate in whole or in part to any asset, and
                    property, any patent, trademark, trade name, service mark or
                    copyright or to any ideas, technical assistance or other
                    know-how of or used by Spectra or its Subsidiaries;

            (xiv)   agreement with any Governmental Entity;

            (xv)    power of attorney granted by Spectra or its Subsidiaries
                    with respect to Spectra or its Subsidiaries in favour of any
                    Person;

            (xvi)   other agreement requiring committed payments or other
                    consideration by or from Spectra or any of its Subsidiaries
                    in excess of Fifty Thousand Dollars ($50,000) during the
                    remainder of its term (or in the aggregate for similar type
                    arrangements with the same or Affiliated Persons);

                                      -42-
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            (xvii)  agreement or Contract which involves an obligation to
                    indemnify, defend or hold harmless any other Person;

            (xviii) agreement or Contract which involves the payment of any
                    commission, royalty, finders fee, agency fee or similar fee,
                    whether payable in cash or other consideration;

            (xix)   other material agreement, Contract or commitment not made in
                    the ordinary course of business; or

            (xx)    agreement, option, understanding or commitment, or any right
                    or privilege capable of becoming an agreement, for the
                    purchase from Spectra or any of its Subsidiaries of any of
                    its Business or any of its assets or properties, other than
                    in the ordinary course of business consistent with past
                    practice.

     (y)    Except as set forth on Schedule 3.1(sss), neither Spectra nor any of
            its Subsidiaries has received notice of any Default or breach of any
            such Contracts and there exists no condition, event or act that,
            with the giving of notice or lapse of time or both, would constitute
            such a Default or breach, and such Contracts are in good standing
            and in full force and effect without unwritten amendment thereto.

     (z)    None of such Contracts will be materially adversely affected, or
            contains any provisions which would cause Spectra or its
            Subsidiaries to be liable to the other party thereto for any amount
            (or any increased price for goods or services being provided by the
            other party thereto), as a result of the consummation of the
            transactions contemplated hereby. None of such Contracts contains
            any provisions which would cause Spectra or its Subsidiaries to be
            liable to the other party thereto for any amount in the event that
            following the Closing, Spectra or its Subsidiaries terminates such
            Contract, so long as such termination does not constitute a breach
            of such Contract by Spectra or its Subsidiaries.

     (aa)   There are no outstanding orders, notices or similar requirements
            relating to Spectra or the Business issued by any Governmental
            Entity and there are no matters under discussion with any
            Governmental Entity relating to orders, notices or similar
            requirements.

     (bb)   Spectra and its Subsidiaries have made available a true and correct
            copy of each written contract (excluding purchase orders) included
            in the Contracts to Sanchez prior to the date hereof.

INTELLECTUAL PROPERTY

     (cc)   The Companies own or license and lawfully use all Intellectual
            Property necessary or appropriate for the operation of the Business
            or ownership or use of the assets and properties of the Companies,
            free and clear of all Encumbrances, all of which Intellectual
            Property is set forth on Schedule 3.1(cc) (the "BUSINESS
            INTELLECTUAL PROPERTY"). All of the Business Intellectual Property,
            including the

                                      -43-
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            Software, functions in all material respects in accordance with the
            currently published documentation and specifications therefore. Each
            of the Companies has taken all commercially reasonable steps to
            adequately protect the status of the Business Intellectual Property
            as the Intellectual Property of Spectra or its Subsidiaries, as the
            case may be. All of such Software is available in "general release"
            form (as opposed to only "alpha," "beta" or "early release" forms).
            With respect to any applications to register or registrations of the
            Business Intellectual Property owned by each of the Companies,
            Schedule 3.1(cc) also sets forth, as to each such item of the
            Business Intellectual Property, the (i) relevant application of
            registration number, (ii) relevant filing, registration, issue or
            application date, (iii) record owner, (iv) jurisdiction, (v) title
            or description and (vi) remaining life thereof. In addition,
            Schedule 3.1(cc) identifies whether each item of the Business
            Intellectual Property is owned by each of the Companies or is
            possessed and used by each of the Companies under any license,
            Contract, agreement or other commitment, and if under any such
            commitment, the identity of the parties thereto, the term thereof
            and all amounts payable thereunder (whether royalties, license fees
            or otherwise) together with the payment terms therefore. All such
            licenses, Contracts, agreements or other commitments, if any, are
            valid and enforceable and are renewable by their terms in the
            ordinary course of business.

     (dd)   Each item of the Business Intellectual Property owned by one of the
            Companies constitutes a valid and enforceable right of Spectra or
            its Subsidiaries, as the case may be, and other than rights with
            respect to Patents, does not infringe or conflict with the rights of
            any Person and with respect to rights with respect to Patents, to
            the Knowledge of Spectra, does not infringe or conflict with the
            rights of any Person. Except as otherwise provided in Schedule
            3.1(dd), none of the Companies has or will have an obligation to
            compensate, or to obtain the consent of, any third party for the use
            of any item of the Business Intellectual Property. There is neither
            pending nor, to the Knowledge of any of Spectra or its Subsidiaries,
            threatened, any Claim, grievance or Litigation against any of the
            Companies or their respective licensors contesting the validity of,
            or any of the Companies' right to use, any of the Business
            Intellectual Property. Except as otherwise provided on Schedule
            3.1(dd), none of the Companies has granted a license or other right
            to use, in any manner, any item of the Business Intellectual
            Property (including, but not limited to, source code for any of the
            Software), whether or not requiring the payment of royalties, and no
            third party has any right to use any of the Business Intellectual
            Property.

     (ee)   None of the Companies has received any written notice that any Third
            Party is (i) infringing all or any portion of the Business
            Intellectual Property, or (ii) using all or any portion of the
            Business Intellectual Property in derogation of any rights of the
            Companies or rights to be granted to Sanchez or Subco under this
            Agreement.

     (ff)   There is no interference action or other Litigation pending or, to
            the Knowledge of Spectra or its Subsidiaries, threatened before any
            Governmental Entity (including, without limitation, the United
            States Patent and Trademark Office or

                                      -44-
<Page>

            corresponding Governmental Entities in any jurisdiction) in regard
            to any of the Business Intellectual Property.

     (gg)   The modification, use, promotion, distribution and/or sale of the
            Business Intellectual Property (for the purposes of this clause
            (gg), Business Intellectual Property shall not include Software not
            owned by Spectra or its Subsidiaries), other than Patents and rights
            in Patents, has not infringed and does not infringe any Intellectual
            Property right of any Person and, as to Patents and rights in
            Patents, to the Knowledge of any of the Companies, has not infringed
            and does not infringe on any Intellectual Property right of any
            Person. None of the Companies has received notice of infringement
            upon, misappropriation of or conflict with any asserted right of any
            Person, and to the Knowledge of Spectra and its Subsidiaries, there
            is no basis for any such notice.

     (hh)   The inception, development and reduction to practice of the Business
            Intellectual Property by Spectra or its Subsidiaries have not
            constituted or involved, and do not constitute or involve, the
            misappropriation of trade secrets, other Intellectual Property or
            other rights of any other Person (including, without limitation, any
            Governmental Entity).

     (ii)   The Software is capable of (i) recording, storing, processing,
            calculating, comparing, sequencing and presenting date data, and
            (ii) calculating information dependent on dates between January 1,
            1999 and January 1, 2000 (the "Y2K WARRANTY"). However, for greater
            clarity, such representation does not apply to output, results,
            errors, or abnormal terminations or delays caused in whole or in
            part by (1) any functionality of software or products, including
            databases, not created or approved by Spectra, whether or not such
            products or software are embedded in or form part of the Software;
            (2) use of the Software and updates thereto in combination with any
            other product not provided or approved by Spectra; (3) errors not
            attributable to date-specific data; (4) any modification of the
            Software or updates thereto made by a party other than Spectra; (5)
            any data provided to the Software by non-Spectra products (unless
            approved by Spectra) which does not adequately specify date data;
            (6) any failures to process date data that result from any Third
            Party hardware or operating system; or (7) a customer's failure to
            use the Software in accordance with the documentation related
            thereto provided by Spectra.

     (jj)   All Software developed by Spectra or any of its Subsidiaries was
            developed by employees of and consultants to Spectra and its
            Subsidiaries (the "DEVELOPERS") and all such work is done under
            employment contracts and employee non-disclosure agreements that
            explicitly confer all Intellectual Property Rights to Spectra and is
            the exclusive property of Spectra or its Subsidiaries. By way of the
            employee non-disclosure agreements, all Developers were advised of
            Spectra's requirement that all work was to be the sole property of
            Spectra and that all related Intellectual Property rights were to be
            the sole property of Spectra. All Developers were also advised and
            agreed by way of the employee non-disclosure agreement that all work
            product arising out of or in the course of the work

                                      -45-
<Page>

            relationship with Spectra was to be assigned to and become the
            property of Spectra.

     (kk)   Each past or current employee, officer and consultant of Spectra or
            any of its Subsidiaries has executed a Non-Disclosure Agreement
            which includes Intellectual Property Rights provisions in the form
            of Exhibit F attached hereto, and each such agreement is assignable,
            and shall be assigned, to the Surviving Corporation as of the
            Closing Date. No past or current employee, officer or consultant of
            the Companies has excluded works or inventions made prior to his or
            her employment with the Companies from his or her assignment of
            inventions pursuant to such employee, officer or consultant's
            Non-Disclosure Agreement.

EMPLOYMENT RELATED MATTERS

     (ll)   Spectra and its Subsidiaries have written employment contracts or
            consulting contracts with each of their respective employees and
            consultants. The form of employment agreement for all of the
            Companies employees (other than Messrs. Nissan, Seiz and Conlin,
            Spectra's five Canadian residents employed by Spectra Australia and
            Spectra US in Australia and the United States, and John McLeod) is
            attached hereto as Schedule 3.1(ll).

     (mm)   Neither Spectra nor any of its Subsidiaries is bound by or a party
            to or is in the process of negotiating or renegotiating, any
            collective bargaining agreement, side letter or other agreement with
            any trade union, council of trade unions, employee bargaining agency
            or other affiliated bargaining agency.

     (nn)   All accrued vacation days and accrued vacation pay for employees
            (including all senior management) of Spectra and its Subsidiaries is
            properly reflected and accrued in the Books and Records and accounts
            of Spectra and its Subsidiaries.

     (oo)   Since the Balance Sheet Date, except in the ordinary course of
            business and consistent with the schedule of salary increases
            provided to Sanchez as referenced in Section 4.1(p) hereof, there
            have been no material changes in the terms and conditions of
            employment of any employees of Spectra or its Subsidiaries,
            including their salaries, remuneration and any other payments to
            them, there have been no material changes in any remuneration
            payable or benefits provided to any officer, director, consultant,
            independent or dependent contractor or agent of Spectra or any of
            its Subsidiaries, neither Spectra nor any of its Subsidiaries has
            paid or declared any bonuses, and neither Spectra nor any of its
            Subsidiaries has agreed or otherwise become committed to change any
            of the foregoing since that date.

     (pp)   Neither Spectra nor any of its Subsidiaries is a party to any
            collective bargaining agreement or other contract or agreement with
            any labour organization or other representative of any of the
            employees of Spectra or any of its Subsidiaries, nor are any of such
            contracts or agreements pending or contemplated. There is no labour
            strike, dispute, slowdown, work stoppage or lockout that is pending
            or, to

                                      -46-
<Page>

            the Knowledge of Spectra or any of its Subsidiaries, threatened
            against or otherwise affecting Spectra or any of its Subsidiaries,
            and neither Spectra nor any of its Subsidiaries has experienced the
            same. Neither Spectra nor any of its Subsidiaries has closed any
            office, plant or facility, effectuated any layoffs of employees or
            implemented any early retirement or separation program at any time
            nor has Spectra or any of its Subsidiaries planned (where a decision
            has been made) or announced any such action or program for the
            future with respect to which Spectra or any of its Subsidiaries may
            have any liability. All salaries, wages, vacation pay, bonuses,
            commissions and other compensation payable by Spectra or any of its
            Subsidiaries to the employees of Spectra or any of its Subsidiaries
            before the date hereof have been paid in all material respects as of
            the date hereof. Except as set forth in Schedule 3.1(sss), no Person
            has asserted any Claim, or, to the Knowledge of Spectra or any of
            its Subsidiaries, has any reasonable basis to assert any valid
            Claim, against Spectra or any of its Subsidiaries that either the
            continued employment by, or association with, Spectra or any of its
            Subsidiaries of any of the present officers or employees of, or
            consultants to, Spectra or any of its Subsidiaries contravenes any
            agreements or Laws applicable to unfair competition, trade secrets
            or proprietary information.

EMPLOYEE BENEFIT PLANS.

     (qq)   Except for the Company Benefit Plans listed on Schedule 3.1(qq),
            there are no employee benefit plans, or any contracts, plans,
            trusts, programs, policies or arrangements, in each case whether
            written or oral, that provide rights or benefits of economic value
            to any current or former employee of Spectra, any of its
            Subsidiaries or any ERISA Affiliate or current or former
            beneficiary, dependent or assignee of any such employee or former
            employee, maintained or contributed to by Spectra, its Subsidiaries
            or any ERISA Affiliate. Except as disclosed on Schedule 3.1(qq), no
            promise or commitment to increase benefits under the Company Benefit
            Plans has been made by Spectra or its Subsidiaries except as
            required by Applicable Law.

     (rr)   LIST OF PLANS. Schedule 3.1(rr) sets forth a complete list of all
            Company Benefit Plans. Spectra has made available to Sanchez (i)
            accurate and complete copies of all Company Benefit Plan documents
            and all other material documents relating thereto, including (if
            applicable) the most recent summary plan description for each plan,
            and all summary annual reports and insurance contracts, (ii)
            accurate and complete detailed summaries of all unwritten Company
            Benefit Plans, (iii) accurate and complete copies of the most recent
            financial statements and actuarial reports with respect to all
            Company Benefit Plans for which financial statements or actuarial
            reports are required or have been prepared, and (iv) accurate and
            complete copies of all information returns and annual reports for
            all Company Benefit Plans (for which information returns or annual
            reports are required) prepared within the last three years, (v) all
            material professional opinions relating to Company Benefit Plans and
            (vi) accurate and complete copies of material correspondence with
            all Governmental Entities. No material changes have occurred or are
            expected to occur which would affect the actuarial reports or

                                      -47-
<Page>

            financial statements delivered to Sanchez pursuant to this Section
            3.1(rr). Neither Spectra nor any ERISA Affiliate sponsors a benefit
            plan subject to Part 3, Subtitle B of Title I of ERISA or Title IV
            of ERISA, nor has Spectra or any ERISA Affiliate ever contributed to
            or been required to contribute to any multiemployer plan (as defined
            in Section 3(37) of ERISA), nor does Spectra nor any ERISA Affiliate
            have a current or contingent obligation to or liability with respect
            to such a multiemployer plan. Neither Spectra nor any ERISA
            Affiliate has any liability with respect to any employee benefit
            plan (as defined in Section 3(3) of ERISA) other than with respect
            to Company Benefit Plans.

     (ss)   LEGAL COMPLIANCE; FUNDING. All Company Benefit Plans conform (and at
            all times have conformed) in all material respects to, and are being
            administered and operated (and have at all time been administered
            and operated) in material compliance with, the terms of the
            applicable plan and the requirements of all Applicable Laws. All
            returns, reports and disclosure statements required to be made under
            Applicable Laws have been timely filed or delivered. To the extent
            required by Applicable Laws, the Company Benefit Plans are
            registered, and no event has occurred, or could reasonably be
            expected to occur, which could entitle any Person to terminate any
            Company Benefit Plan or adversely affect the Tax status of any
            Company Benefit Plan. There have not been any "prohibited
            transactions," as such term is defined in Section 4975 of the Code
            or Section 406 of ERISA, involving any Company Benefit Plans that
            could subject Spectra or any ERISA Affiliate to any penalty or Tax
            imposed under ERISA or the Code. No Company Benefit Plan is
            underfunded on either a going concern or a solvency basis, and, to
            the Knowledge of Spectra and its Subsidiaries, there have been no
            withdrawals of surplus or contribution holidays except as permitted
            by Applicable Law and the terms of the applicable plan.

     (tt)   PLAN DETERMINATIONS. Any Company Benefit Plan that was or is
            intended to be qualified under Section 401(a) of the Code and exempt
            from tax under Section 501(a) of the Code has been determined by the
            Internal Revenue Service (U.S.) to be so qualified or an application
            for such determination is pending. Any such determination that has
            been obtained remains in effect and has not been revoked.

     (uu)   CLAIMS. There are no pending or, to the Knowledge of Spectra or its
            Subsidiaries, threatened Claims by or on behalf of any Company
            Benefit Plans, or by or on behalf of any individual participants or
            beneficiaries of any Company Benefit Plans, involving or relating to
            the Company Benefit Plans (other than Claims made in the ordinary
            operation of such plans), nor is there, to the Knowledge of Spectra
            or its Subsidiaries, any reasonable basis to assert any such Claim.
            None of the Company Benefit Plans are the subject of any pending,
            or, to the Knowledge of any Spectra and its Subsidiaries, threatened
            investigation or audit by the Internal Revenue Service, the
            Department of Labor or the PBGC or other Governmental Entity.

     (vv)   WELFARE PLANS. No Company Benefit Plan provides any health, life or
            other welfare coverage to employees of Spectra or any of its
            Subsidiaries beyond

                                      -48-
<Page>

            termination of their employment with Spectra or any of its
            Subsidiaries by reason or retirement or otherwise, other than
            coverage as may be required under Section 4980B of the Code or Part
            6 of ERISA, or under the continuation of coverage provisions of the
            Laws of any state, province, territory or locality.

     (ww)   NO ACCELERATED BENEFITS. Spectra's execution and performance of the
            transactions contemplated by this Agreement will not constitute an
            event under any Company Benefit Plan that will result in any payment
            (whether as severance pay or otherwise), acceleration, vesting or
            increase in benefits with respect to any employee or any dependent
            or independent contractor of Spectra or any ERISA Affiliate.

     (xx)   [INTENTIONALLY OMITTED].

REALTY

     (yy)   Neither Spectra nor any of its Subsidiaries owns any real property.

     (zz)   Schedule 3.1(zz) is a true, complete, correct and current list, by
            address, owner and usage, of all real property agreements (including
            all amendments and supplements thereto) pursuant to which any of the
            Companies (as the case may be) leases, subleases or otherwise
            occupies any real property (each a "REAL PROPERTY LEASE" and
            collectively the "REAL PROPERTY LEASES"), copies of which have been
            made available to Sanchez. Pursuant to the Real Property Leases,
            Spectra or its Subsidiaries (as the case may be) has validly
            existing and enforceable leasehold, sublease hold or occupancy
            interests in the real property leased thereunder, in each case free
            and clear of all Encumbrances and free from Defaults (i) by the
            Companies and (ii) by the other party or parties to such Real
            Property Leases. Except for the Real Property Leases, if any,
            described in Schedule 3.1(zz), the consummation of the transactions
            contemplated by this Agreement will not require any consent or
            approval of any landlord or sublandlord under any such Real Property
            Lease, result in any increase in rent or penalty to the party which
            is a tenant or subtenant thereunder or result in the early
            termination of any Real Property Lease. None of the Companies has
            transferred, assigned, hypothecated, pledged or encumbered any of
            its rights or interest under any Real Property Lease. None of the
            Companies has received any notice from any landlord or sublandlord
            or any other party of any Default under, or the termination of, any
            Real Property Lease.

     (aaa)  The real property leased to Spectra or its Subsidiaries, as the case
            may be, pursuant to the Real Property Leases, if any, constitutes
            all real property used or occupied by Spectra or its Subsidiaries
            (the "REAL PROPERTY") and (i) no portion thereof is subject to any
            pending condemnation proceeding or proceeding by any Governmental
            Entity and there is no threatened condemnation or proceeding with
            respect thereto; (ii) the physical condition of such Real Property
            is sufficient to permit the continued conduct of the Business,
            subject to the provision of usual and customary maintenance and
            repair performed in the ordinary course; (iii)

                                      -49-
<Page>

            there are no Contracts, written or oral, to which any of the
            Companies is a party, granting to any party or parties the right of
            use or occupancy of any portion of the Real Property; (iv) there are
            no parties (other than the Spectra or its Subsidiaries, as the case
            may be) in possession of any such Real Property and (v) no notice of
            any increase in the assessed valuation of any such Real Property and
            no notice of any contemplated special assessment has been received
            by the Companies, and to Spectra's Knowledge, there is no threatened
            increase in assessed valuation or threatened special assessment
            pertaining to any of the Real Property.

     (bbb)  As may be required by Law, each of the Companies has all permits and
            certificates of occupancy necessary to the use and possession of the
            Real Property as such is currently being used and possessed, and no
            such permits or certificates will be required, as a result of the
            consummation of the transactions contemplated by this Agreement, to
            be issued, modified or supplemented after the Closing Date in order
            to permit Sanchez or Surviving Corporation (as the case may be)
            following the consummation of the transactions contemplated by this
            Agreement to lease or operate the Real Property as such is currently
            being leased and used.

     (ccc)  There is nothing that restricts or limits the normal operation of
            the Business from the Real Property and such normal operation is not
            in contravention of any Applicable Law or of any decree or order of
            any court or other Governmental Entity having jurisdiction.

ENVIRONMENTAL

     (ddd)  The Business, as carried on by Spectra and its Subsidiaries, from
            the Real Property is in compliance in all material respects with all
            Environmental Laws and, to the Knowledge of Spectra, there are no
            facts that could give rise to a notice of non-compliance with any
            Environmental Law.

     (eee)  There are no environmental permits used in or required to carry on
            the Business.

TAXES

     (fff)  Spectra and each of its Subsidiaries has duly and timely filed all
            Tax Returns, required to be filed by it with any taxation authority;
            no Tax Return, filed by Spectra or any of its Subsidiaries contains
            any material misstatement or omits any material statements or
            elections that should have been included and each Tax Return,
            including accompanying schedules and statements, is true, correct
            and complete in all material respects.

     (ggg)  All Taxes due and payable by Spectra and each of its Subsidiaries
            (whether or not shown on any Tax Return) have been paid.

     (hhh)  There are no agreements, waivers or other arrangements with any
            taxation authority providing for an extension of time with respect
            to the filing of any Tax Return, or any payment of any amount by or
            governmental charge with respect to Spectra or any of its
            Subsidiaries nor with respect to the issuance of any

                                      -50-
<Page>

            assessment or reassessment. Neither Spectra nor any of its
            Subsidiaries has waived any statute of limitations in respect of
            Taxes or agreed to any extension of time with respect to a Tax
            assessment or deficiency.

     (iii)  There are no actions, suits, proceedings, reassessments, audits,
            investigations or claims by any Governmental Entity or to the
            Knowledge of Spectra, after reasonable enquiry, threatened against
            Spectra or any of its Subsidiaries relating to Taxes; there are no
            current objections or appeals by Spectra or any of its Subsidiaries
            relating to Taxes other than normally required annual reviews under
            the Scientific, Research and Expenditure Development program
            administered by the Canada Customs and Revenue Agency.

     (jjj)  Spectra and each of its Subsidiaries has withheld and remitted all
            Taxes required to have been withheld and paid by it in connection
            with any amounts paid or owing to any employee, independent
            contractor, creditor, Shareholder or other Third Party (including
            without limitation, income tax, workers' compensation payments,
            Canadian Plan contributions, employment insurance premiums, Benefit
            Plan premiums and contributions) and has paid those amounts
            including any penalties or interest due to the appropriate authority
            on a timely basis and in the form required under the Applicable
            Laws.

     (kkk)  The Books and Records of Spectra and each of its Subsidiaries
            accurately depict payroll Taxes withheld and remitted by each such
            Company.

     (lll)  Neither Spectra nor any of its Subsidiaries has been required to
            file any Tax Returns, with any taxation authority located in any
            jurisdiction other than Canada, Ontario, United States (federal),
            New York (state and city), United Kingdom and Australia. Neither
            Spectra nor any of its Subsidiaries is currently required to file
            any Tax Returns with any taxation authority located in any
            jurisdiction outside Canada, Ontario, United States (federal), New
            York (state and city), United Kingdom or Australia. No Claim has
            ever been made by an authority in a jurisdiction where Spectra and
            its Subsidiaries does not file Tax Returns that it is or may be
            subject to taxation by that jurisdiction.

     (mmm)  Except as set forth on Schedule 3.1(mmm), the taxation year end of
            Spectra and each of its Subsidiaries is August 31 and the taxation
            year end of Spectra has not been changed in the last five years.

     (nnn)  Neither Spectra nor any of its Subsidiaries has made any election or
            designation for purposes of the ITA or any relevant provincial
            taxing statute, or for purposes of any administrative rulings or
            notices or administrative practices pursuant to the ITA or any
            relevant provincial taxing statute.

     (ooo)  To Spectra's Knowledge, neither Spectra nor any of its Subsidiaries
            has any contingent tax liability.

                                      -51-
<Page>

     (ppp)  With respect to the goods and services tax ("GST") under the EXCISE
            TAX ACT (Canada) and any other sales, ad valorem, excise or any
            other similar tax (collectively, "SALES TAXES"):

            (i)     Spectra and each of its Subsidiaries are registered in each
                    applicable jurisdiction for Sales Tax purposes;

            (ii)    None of the Companies has deferred obligations or
                    liabilities under any section of the EXCISE TAX ACT
                    (Canada), or any other similar Applicable Law;

            (iii)   none of the Companies has made a supply of property or
                    service for which it paid or that has a fair market value in
                    excess of $10,000 to a person with whom either Spectra or a
                    Subsidiary was not dealing at arm's length for proceeds less
                    than the fair market value thereof;

            (iv)    all Sales Taxes required to be collected by any of the
                    Companies has been collected and all Sales Tax amounts
                    required to be remitted to the applicable Government Entity
                    have been remitted; and

     (qqq)  the reporting period of each of the Companies for purposes of Sales
            Taxes is monthly (except with respect to value added tax in the
            United Kingdom, for which the reporting period is quarterly) and all
            Sales Tax returns and reports of each of the Companies required by
            law to be filed have been filed and are true, complete and correct
            in all respects.

     (rrr)  Schedule 3.1(rrr) lists all federal, provincial, state, local and
            foreign income Tax Returns filed with respect to Spectra and its
            Subsidiaries for taxable periods ended on or after August 31, 1997,
            indicates those Tax Returns that have been audited, and indicates
            those Tax Returns which are currently the subject of audit. Spectra
            has made available to Sanchez correct and complete copies of all
            income Tax Returns, examination reports, and statements of
            deficiencies assessed against or agreed to by any of Spectra and its
            Subsidiaries filed or received since August 31, 1997. Neither
            Spectra nor any of its Subsidiaries has filed a consent under Code
            Section 341(f) concerning collapsible corporations. Neither Spectra
            nor any of its Subsidiaries is a party to any agreement, contract,
            arrangement or plant that has resulted or would result, separately
            or in the aggregate, in the payments of (i) any "excess parachute
            payment" within the meaning of Code Section 280G (or any
            corresponding provision of state, local or foreign Tax law) and (ii)
            any amount that will not be fully deductible as a result of Code
            162(m) (or any corresponding provision of state, local or foreign
            Tax law). Neither Spectra nor any of its Subsidiaries has been a
            United States real property holding corporation within the meaning
            of Code Section 897(c)(2) during the applicable period specified in
            Code Section 897(c)(1)(A)(ii). Neither Spectra nor any of its
            Subsidiaries is a party to or bound by any Tax allocation or sharing
            agreement. Neither Spectra nor any of its Subsidiaries (A) has been
            a member of an affiliated group filing a consolidated federal income
            Tax Return, or (B) has any liability for the Taxes of any Person

                                      -52-
<Page>

            (other than any of Spectra and its Subsidiaries) under
            Reg. Section 1.1502-6 (or any similar provision of state, local, or
            foreign law), as a transferee or successor, by contract, or
            otherwise

LITIGATION AND LIABILITIES

     (sss)  Except as set forth on Schedule 3.1(sss), no Litigation is pending
            or, to the Knowledge of Spectra or any of its Subsidiaries,
            threatened against any of the Companies in respect of the assets and
            properties of the Companies, the employees of the Companies, the
            Business or the transactions contemplated by this Agreement, and
            none of the Companies has any Knowledge of any basis for any such
            Litigation. None of the Companies is a party to or subject to the
            provisions of any Court Order which provides limitations or
            instructions upon the ability to operate the Business.

     (ttt)  No Claims under product or service warranties or guarantees made to
            customers have been received by any of the Companies. Other than the
            warranties set forth in the Contracts and applicable
            license/maintenance schedules with customers, a form of which is
            attached as Schedule 3.1(ttt), and any warranties provided by Law,
            none of the Companies has given or made any warranties to Third
            Parties with respect to any products sold or services performed by
            it. Any warranties provided in a license or maintenance schedule to
            a customer Contract conforms in all material respects to the form
            attached as Schedule 3.1(ttt). Except as set forth on Schedule
            3.1(sss), there are no actual or, to the Knowledge of Spectra or the
            Spectra Subsidiaries, any threatened or anticipated Claims,
            discounts or credits arising out of or resulting from a client
            request or performance concern relating to Croesus (or any
            Affiliated Persons or predecessor entity related thereto) or in any
            way arising out of any of the Companies' relationships with Croesus
            (or any Affiliated Persons or predecessor entity related thereto).
            Except as set forth on Schedule 3.1(sss), there are no actual or, to
            the Knowledge of Spectra or the Spectra Subsidiaries, any threatened
            or anticipated Claims, discounts or credits relating to or in any
            way arising out of any Croesus products sold or services performed
            by any of the Companies.

PERMITS AND LICENSES

     (uuu)  The Companies have obtained all Permits and Licenses for the
            operation of the Business, or as needed in connection with the
            assets and properties of the Companies or the employees of the
            Companies. There are no Licenses or Permits issued, other than
            licenses for shrink-wrapped "off-the-shelf" software products, in
            favour of each of the Companies, and each of the Companies currently
            operates in compliance with the terms of each of the foregoing.
            Sanchez will not be required, prior to or following the Closing, to
            file, apply for or obtain any Permit or License in order to
            consummate the Transactions, employ the current employees of the
            Companies or operate the Business pursuant to this Agreement.

                                      -53-
<Page>

INSURANCE

     (vvv)  All of the assets and properties owned or leased by any of the
            Companies are insured against fire and casualty under the policies
            and in the amounts and types of coverage set forth in Schedule
            3.1(vvv) attached hereto, and each of the Companies are insured
            under liability insurance policies in the amounts set forth in
            Schedule 3.1(vvv) attached hereto (the "CURRENT POLICIES"). The
            Current Policies are maintained with reputable insurers, are in full
            force and effect, the premiums thereon are paid, and are in amounts
            and with such coverages as would be maintained by a prudent
            corporation in the carrying on of a business comparable to the
            Business. All such insurance policies are valid, binding and
            enforceable in accordance with their terms against the respective
            insurers, except as enforcement may be limited by applicable
            bankruptcy, insolvency, reorganization, moratorium or similar Laws
            affecting creditor's rights generally. To the Knowledge of Spectra
            or any of its Subsidiaries, no insurer of any of the Companies is
            the subject of pending or threatened insolvency proceedings. Each of
            the Companies has notified each of their respective insurance
            carriers of all known Litigation, known Claims, and known facts and
            circumstances which could reasonably give rise to a Claim. None of
            the Companies has received any notice from its respective insurance
            carrier disclaiming coverage or defending a reservation of rights
            clause as to any of such notifications.

COMPLIANCE WITH LAWS

     (www)  Each of the Companies has complied with each, and is not in
            violation of any Law or Court Order to which such Company is subject
            and has not failed to obtain, or to adhere to the requirements of,
            any License, Permit or authorization necessary to the ownership of
            their assets and properties, the employment of their employees and
            the engagement of their consultants and independent contractors or
            the operation of the Business. Without limiting the generality of
            the foregoing, none of the Companies has made any offer, payment,
            promise to pay or authorization for the payment of money or an
            offer, gift, promise to give, or authorization for the giving of
            anything of value to any Person in violation of the United States
            Foreign Corrupt Practices Act of 1977. In addition, without limiting
            the generality of the foregoing, none of the Companies has violated
            or is currently in violation of any Laws of any Governmental Entity
            relating to the privacy of personal information.

     (xxx)  Each of the Companies is conducting and has conducted the Business
            in compliance with all Applicable Laws, is not in material breach of
            any such Applicable Laws.

     (yyy)  All Software owned by Spectra or any of the other Companies is
            operating in compliance with all Applicable Laws in the
            jurisdictions in which such Software is currently being used,
            excluding Laws relating to privacy of personal information;
            provided, however, that Spectra makes no representations or

                                      -54-
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            warranties that Spectra's customers use such Software in accordance
            with Applicable Laws.

CUSTOMERS

     (zzz)  Each of the Companies have used their commercially reasonable
            efforts to maintain good working relationships with all of their
            customers. The Companies' Contracts with their customers and
            customer relationships which have been terminated or cancelled, or
            threatened to be terminated or cancelled, or which have resulted in
            credits, discounts or refunds arising out of or resulting from a
            client request or performance concern or have given rise to
            allegations of breach of contract, during the past two years are set
            forth and described on Schedule 3.1(zzz). Schedule 3.1(zzz) also
            contains a list of the names of each of the current customers of the
            Companies (the "BUSINESS CUSTOMER BASE"), indicating the dollar
            amount of sales to each such customer for the period beginning
            September 1, 2000 and ending as of the date hereof. Except as set
            forth on Schedule 3.1(zzz), none of the customers listed on Schedule
            3.1(zzz) has terminated or, to the Knowledge of Spectra or any of
            its Subsidiaries, given written notice to any of the Companies prior
            to the date of this Agreement or any notice (whether written or
            otherwise) to any of the Companies from the date of this Agreement
            to the Closing Date of an intention or plan to terminate any
            Contract of the Companies, and to the Knowledge of Spectra or any of
            its Subsidiaries, none of such customers may terminate any Contract
            with any of the Companies or all or a material part of such
            purchases, whether by reason of the Transactions, the execution of
            this Agreement or for any other reason other than by mutual consent.
            To the Knowledge of Spectra or any of its Subsidiaries, no employees
            or independent contractors primarily responsible for servicing
            customers listed on Schedule 3.1 (zzz) thereon has indicated in
            writing an intention or plan to terminate his or her employment or
            relationship, as the case may be, with any of the Companies. Except
            as listed on Schedule 3.1(sss), none of the Companies has received
            notice of, and to the Knowledge of Spectra or any of its
            Subsidiaries, there is no basis for, any material complaint or
            dispute by any of their customers.

EXPORT/IMPORT COMPLIANCE

     (aaaa) Each of the Companies is in compliance with all Export/Import Laws
            and neither Spectra nor any of its Subsidiaries has any Knowledge of
            any facts or circumstances, and none of the Companies has received
            any Claim from any Governmental Entity, employee or other Person,
            indicating that it is not in compliance with any Export/Import Laws
            or the terms or conditions of any Permits relating to the export or
            import of any items (commodities, Software, technology or
            otherwise).

     (bbbb) There has not been to the Knowledge of Spectra or any of its
            Subsidiaries, and none of the Companies has received, any Claim from
            any Governmental Entity, Employee or other Person that there has
            been any past or present actions, activities, circumstances,
            conditions, events or incidents involving any unlawful

                                      -55-
<Page>

            export or import of any items (commodities, software or technology)
            that form or could form the basis of any Claim against any of the
            Companies, their properties or assets or any Person, the liability
            for which has or may have been retained or assumed either
            contractually or by operation of law (an "EXPORT/IMPORT CLAIM").

SALES COMMISSIONS

     (cccc) Except as set forth on Schedule 3.1(sss), no Claims have been made
            or threatened against any of the Companies relating to sales
            commissions, royalties and other similar payments in connection with
            the sale of the Companies' products, and none of the Companies has
            any Knowledge of any basis for any such Claim. Such commissions,
            royalties and similar payments which have accrued but are not yet
            payable are accurately reflected in the Books and Records of the
            Companies. Other than as set forth on Schedule 3.1(p), there are no
            obligations of the Companies to make any payments on account of
            bonuses or similar payments under any bonus plan, arrangement,
            Contract or otherwise.

BROKERS AND OTHER FEES

     (dddd) No broker, finder or investment banker is entitled to any brokerage,
            finder's or other fee or commission in connection with the
            Transactions or the other transactions contemplated by this
            Agreement (other than CIBC World Markets Inc. and Morgan Stanley &
            Co. Incorporated, the fees for whom shall be solely borne by the
            Spectra Shareholders and shall be paid as set forth in Section
            2.7(c)).

GENERAL

     (eeee) No representation or warranty made herein, and no statement
            contained in any certificate, Schedule or the Collateral Documents,
            as to Spectra or its Subsidiaries contains or will contain any
            untrue statement of a material fact or omits or will omit to state
            any material fact necessary to make the statements or facts
            contained herein not misleading in light of the circumstances under
            which they were made. Except with respect to matters referenced
            herein, Spectra does not have Knowledge of any material facts
            relating to Spectra, any of its Subsidiaries or the Business that
            could reasonably be expected, individually or in the aggregate, to
            have a Material Adverse Effect on the Business or any of the
            Companies.

     (ffff) Spectra is, and has been for not less than the past 12 months, a
            reporting issuer (or its equivalent) public company not in default
            under the securities laws of the Province of Ontario, Canada, and in
            any applicable jurisdiction in Canada (the "CANADIAN
            JURISDICTIONS"), since December 13, 2000, has filed with the
            securities regulatory authorities of such Canadian Jurisdictions all
            documents required to be filed by it pursuant to the securities laws
            of such Canadian Jurisdictions and the published policies of such
            regulatory authorities and all such documents when filed complied in
            all material respects with the then applicable requirements of such
            laws and policies. As of their respective dates, none of such

                                      -56-
<Page>

            documents contained any untrue statement of a material fact or
            omitted to state a material fact required to be stated therein or
            necessary in order to make the statements therein, in light of the
            circumstances under which they were made, not misleading.

     (gggg) There are no prepayment penalties that may be imposed in connection
            with the anticipated repayment of the VenGrowth Debentures at
            Closing.

3.1A        REPRESENTATION AND WARRANTIES OF THE MCLEOD PARTIES

The McLeod Parties, jointly and severally, hereby represent and warrant to and
in favour of the Sanchez Parties and Spectra and its Subsidiaries as follows,
and acknowledges that each of the Sanchez Parties and Spectra and its
Subsidiaries is relying upon such representations and warranties in connection
with the matters contemplated by this Agreement:

     (a)    Eclipse is a corporation duly incorporated, organized and is validly
            subsisting under the laws of the Province of Ontario and the McLeod
            Trust is an entity duly organized and is validly subsisting under
            the laws of the Province of Ontario, each with the power and
            authority (corporate or otherwise) to own, lease and operate its
            assets and to carry on its business and has made all necessary
            filings under all Applicable Laws. Neither Eclipse nor the McLeod
            Trust is qualified to transact business as a foreign corporation or
            entity and has never been required to be so qualified or in good
            standing, in any jurisdiction other than Canada.

     (b)    Eclipse has no Subsidiaries and, other than its ownership of Spectra
            Shares, does not (i) own any shares of capital stock, units or any
            other interest of any other Person or any rights, options, warrants
            or other securities of any other Person, (ii) does not have any
            agreement for the purchase, subscription or issuance of any of the
            unissued shares of capital rights, options, warrants, securities or
            any other interest of any other Person and (iii) does not have any
            interest, directly or indirectly, in any other Person.

     (c)    The authorized capital stock of Eclipse consists of an unlimited
            number of common shares, an unlimited number of Class A special
            shares, an unlimited number of Class B special shares and an
            unlimited number of Class C special shares, of which 100 common
            shares, 200,000 Class A special shares, 1,333,000 Class B special
            shares and 2,352,600 Class C special shares have been validly issued
            and are outstanding as fully paid and non-assessable and will be
            validly issued and outstanding as fully paid and non-assessable on
            the Closing Date. On the Closing Date:

            (i)     200,000 Class A special shares and 100 common shares will be
                    beneficially owned by and registered in the name of John C.
                    McLeod;

            (ii)    1,333,000 Class B special shares and 2,352,600 Class C
                    special shares will be beneficially owned by and registered
                    in the name of the McLeod Trust.

                                      -57-
<Page>

            There are no outstanding options, warrants, convertible or
            exchangeable securities or other rights to (i) purchase capital
            stock of Eclipse, or (ii) require Eclipse to allot or issue any of
            its capital stock.

     (d)    Eclipse has the requisite power and authority to execute, deliver
            and enter into this Agreement and each of the documents, agreements
            and instruments to be executed, delivered and performed by it in
            connection with this Agreement (collectively the "ECLIPSE COLLATERAL
            DOCUMENTS") and perform the actions and complete the transactions to
            be completed by it hereunder and thereunder. The execution, delivery
            and performance of this Agreement and each of the Eclipse Collateral
            Documents, and the consummation of the transactions contemplated
            hereby and thereby, has been authorized by all necessary action
            (corporate or otherwise) on the part of Eclipse. This Agreement and
            the Eclipse Collateral Documents have been duly and validly executed
            and delivered by Eclipse and constitute the legal, valid and binding
            obligation of Eclipse, enforceable against it in accordance with
            their respective terms, except as such enforcement may be limited by
            applicable bankruptcy, insolvency, moratorium or similar Laws
            affecting the enforcement of creditors' rights generally.

     (e)    The execution, delivery and performance of this Agreement and each
            of the Eclipse Collateral Documents, and the consummation of the
            Amalgamation, by Eclipse, does not and will not (i) result in a
            Default, of or under (A) any of the terms of the Organizational
            Documents of Eclipse or the McLeod Trust, (B) assuming the receipt
            of all Required Consents of a Governmental Entity, any Law or Court
            Order applicable to or binding upon Eclipse or the McLeod Trust, or
            (C) any Contracts, Licenses or Permits to which Eclipse or the
            McLeod Trust is a party or by which it is bound, (ii) result in the
            creation or imposition of any Encumbrances, upon any of the equity
            interests of Eclipse or the McLeod Trust or upon any of their assets
            or properties, (iii) result in the termination, amendment or
            modification of, or give any party the right to terminate, amend,
            modify, abandon, or refuse to perform any Contract, License or
            Permit to which Eclipse or the McLeod Trust is a party or by which
            they, or any of their properties or assets, are bound, or (iv)
            result in the acceleration or modification, or give any party the
            right to accelerate or modify, the time within which, or the terms
            under which, any duties or obligations are to be performed, or any
            rights or benefits are to be received under any Contract, License or
            Permit to which Eclipse or the McLeod Trust is a party or by which
            they, or any of their properties or assets, is bound.

     (f)    The corporate records and minute books of Eclipse are maintained in
            all material respects in accordance with Applicable Laws. The books,
            records and accounts of Eclipse, in all material respects: (i) have
            been maintained in accordance with good business practices on a
            basis consistent with prior years; and (ii) are stated in reasonable
            detail and accurately and fairly reflect the transactions and
            dispositions of the assets of Eclipse.

                                      -58-
<Page>

     (g)    Eclipse was formed for the sole purposes of holding Spectra Shares
            and, except as incident thereto, Eclipse has not (i) engaged in any
            business activities, (ii) entered into any Contracts or agreements,
            or (iii) conducted any other operations.

     (h)    Eclipse has good and marketable title to all of its properties and
            assets, which only consist of 1,200,000 common shares of Spectra,
            free and clear of all Encumbrances.

     (i)    Eclipse does not now nor has it ever owned, licensed or used any
            Intellectual Property.

     (j)    On the Effective Date, Eclipse will not have any Liabilities.

     (k)    Eclipse does not now nor has it ever (i) had any employees, nor has
            it ever (ii) maintained, or contributed to or had any obligation or
            liability to any employee benefit plans, programs, agreements or
            arrangements (whether written or unwritten). Eclipse is not (i) in a
            controlled group of corporations within the meaning of Section
            414(b) of the Code; (ii) under common control, within the meaning of
            Section 414(c) of the Code, with any trade or business (whether or
            not incorporated); (iii) a member of an affiliated service group
            within the meaning of Section 414(m) of the Code; or (iv) or treated
            as an affiliate of any entity under Section 414(o) of the Code.

     (l)    Eclipse does not now nor has it ever owned any real property, nor
            has it ever leased, subleased or otherwise occupied any real
            property.

     (m)    No Tax Return filed by Eclipse contains any material misstatement or
            omits any material statements or elections that should have been
            included and each Tax Return filed by Eclipse, including
            accompanying schedules and statements, is true, correct and complete
            in all material respects.

     (n)    All Taxes due and payable by Eclipse (whether or not shown on any
            Tax Return) have been paid.

     (o)    There are no actions, suits, proceedings, reassessments, audits,
            investigations or claims by any Governmental Entity or threatened
            against Eclipse relating to Taxes.

     (p)    There is no Litigation pending or threatened against Eclipse or any
            of its assets or properties or the transactions contemplated by this
            Agreement, and none of the McLeod Parties are aware of any basis for
            any such Litigation.

     (q)    Eclipse has complied with each, and is not in violation of any Law
            or Court Order to which it is subject and has not failed to obtain,
            or to adhere to the requirements of, any License, Permit or
            authorization necessary to the ownership of its assets and
            properties.

                                      -59-
<Page>

     (r)    No representation or warranty made herein, and no statement
            contained in any certificate, Schedule or the Eclipse Collateral
            Documents, as to Eclipse, the McLeod Trust or John McLeod, contains
            or will contain any untrue statement of a material fact or omits or
            will omit to state any material fact necessary to make the
            statements or facts contained herein not misleading in light of the
            circumstances under which they were made.

3.2         SANCHEZ'S REPRESENTATIONS AND WARRANTIES

Sanchez hereby represents and warrants to and in favour of Spectra as follows,
and acknowledges that Spectra is relying upon such representations and
warranties in connection with the matters contemplated by this Agreement:

     (a)    Sanchez is a corporation duly incorporated, organized and is validly
            subsisting under the laws of the Commonwealth of Pennsylvania and is
            a non-resident corporation for the purposes of the ITA.

     (b)    Sanchez has the requisite power and authority to execute, deliver
            and enter into this Agreement and the Collateral Documents and to
            perform the actions and complete the transactions to be completed by
            Sanchez hereunder.

     (c)    This Agreement and the Collateral Documents to be executed and
            delivered by Sanchez have been duly and validly executed and
            delivered by Sanchez and constitute the legal, valid and binding
            obligation of Sanchez, enforceable against it in accordance with
            their respective terms, except as such enforcement may be limited by
            applicable bankruptcy, insolvency, moratorium or similar Laws
            affecting the enforcement of creditors' rights generally.

     (d)    Sanchez is, and has been for not less than the past 12 months, a
            public company not in default under the securities laws of the
            United States and in any applicable jurisdiction in the United
            States (the "U.S. JURISDICTIONS") since November 13, 1996, has filed
            with the securities regulatory authorities of such U.S.
            Jurisdictions all documents required to be filed by it pursuant to
            the securities laws of such U.S. Jurisdictions and the published
            policies of such regulatory authorities and all such documents when
            filed complied in all material respects with the then applicable
            requirements of such laws and policies. As of their respective
            dates, none of such documents contained any untrue statement of a
            material fact or omitted to state a material fact required to be
            stated therein or necessary in order to make the statements therein,
            in light of the circumstances under which they were made, not
            misleading.

     (e)    Neither the entering into and the delivery of the Agreement nor the
            completion of the transactions contemplated by the Agreement by
            Sanchez will result in the violation of:

                    A.   any of the provisions of the constituting documents or
                         by-laws of Sanchez;

                                      -60-
<Page>

                    B.   any Applicable Law; or

                    C.   any material agreement or other material instrument to
                         which Sanchez is a party or by which Sanchez is bound.

     (f)    No notices, consents, authorizations, licenses, permits, approvals
            or orders of any person or government are required to permit Sanchez
            to complete the transactions contemplated by the Agreement.

3.3         SURVIVAL.

     (a)    REPRESENTATIONS AND WARRANTIES. Notwithstanding any investigation
            made by or on behalf of the Sanchez Parties, Spectra or its
            Subsidiaries, or any of the Spectra Shareholders prior to or after
            the Closing Date: (i) representations or warranties made by any
            party which were made by such party with intent to defraud or
            mislead shall survive in accordance with the applicable statute of
            limitations, (ii) the representations and warranties of Spectra set
            forth in Sections 3.1(fff) to (rrr) relating to Taxes shall survive
            until the expiration of the applicable tax statute of limitations,
            (iii) representations and warranties set forth in Sections 3.1(cc)
            to (kk) and Section 3.1(yyy), Section 3.1(u) and (v) and Section
            3.1(e) to (j) relating to Intellectual Property, Title to Assets and
            Title to Subsidiaries shall survive the Closing until the date which
            is three years from the Closing Date, (iv) all representations and
            warranties made by the McLeod Parties in Section 3.1A shall survive
            the Closing without any limitation, and (v) all other
            representations and warranties made by any party in this Agreement
            or in any Collateral Document shall survive the Closing until the
            date which is one year following the Closing Date (each a "SURVIVAL
            DATE"), and thereafter as to any Claims or Losses set forth with
            reasonable specificity in a notice given prior to the applicable
            Survival Date.

     (b)    COVENANTS, AGREEMENTS. All covenants set forth herein shall survive
            the Closing in accordance with the applicable statute of
            limitations.

3.4         SPECTRA'S INDEMNIFICATION.

Subject to the limitations set forth in Sections 3.5(c) and 3.5(e), regardless
of any investigation undertaken or made by the Sanchez Parties, or any of their
shareholders, employees, agents or representatives prior to the Closing Date,
Spectra, prior to Closing, and the Spectra Equity Holders and the Eclipse
Shareholders, jointly and severally, agree to indemnify, defend and hold
harmless the Sanchez Parties (and the amalgamated company in the event the
Closing occurs) and each of their directors, officers, employees, Affiliates,
agents, shareholders, successors and assigns and legal representatives, and each
Person who controls (within the meaning of the 1933 Act) any of them, from and
against any and all Claims (including, without limitation, Claims arising out of
facts or circumstances that have occurred on or prior to the Closing Date, even
though such Claim may not be filed or come to light until after the Closing
Date) or Losses that may be imposed upon, incurred by or asserted against any of
them arising out of, based upon or resulting from: (a) any misrepresentation,
breach of any warranty or non-fulfillment of any covenant to be performed by the
Companies under this Agreement or any Collateral Document,

                                      -61-
<Page>

or the Shareholders under any Collateral Document; (b) a Disclosed Claim; (c)
any non-compliance by the Companies at or before the Closing Date with
Applicable Laws relating to fraudulent conveyances, fraudulent transfers,
preferential transfers and the like; or (d) any breach by any officer or
director of any of the Companies of any fiduciary duty owed by such officer or
director to any shareholder of the Companies, which breach occurred prior to, in
connection with or as a result of the Closing and the transactions contemplated
to take place at Closing.

3.4A        INDEMNIFICATION BY THE MCLEOD PARTIES

Regardless of any investigation undertaken or made by the Company or the Sanchez
Parties, or any of their shareholders, employees, agents or representatives
prior to the Closing Date, the McLeod Parties, jointly and severally, agree to
indemnify, defend and hold harmless the Company and the Sanchez Parties (and the
amalgamated company in the event the Closing occurs) and each of their
directors, officers, employees, Affiliates, agents, shareholders, successors and
assigns and legal representatives, and each Person who controls (within the
meaning of the 1933 Act) any of them, from and against any and all Claims
(including, without limitation, Claims arising out of facts or circumstances
that have occurred on or prior to the Closing Date, even though such Claim may
not be filed or come to light until after the Closing Date) or Losses that may
be imposed upon, incurred by or asserted against any of them arising out of,
based upon or resulting from: (a) any misrepresentation, breach of any warranty
or non-fulfillment of any covenant to be performed by Eclipse or the McLeod
Parties under this Agreement; (b) any non-compliance by Eclipse or the McLeod
Parties at or before the Closing Date with Applicable Laws relating to
fraudulent conveyances, fraudulent transfers, preferential transfers and the
like; or (c) any breach by any officer or director of Eclipse of any fiduciary
duty owed by such officer or director to any shareholder of Eclipse, which
breach occurred prior to, in connection with or as a result of the Closing and
the transactions contemplated to take place at Closing.

3.5         PAYMENT; PROCEDURE FOR INDEMNIFICATION.

     (a)    CLAIM OR LOSS. In the event that the Person seeking indemnification
            under Section 3.4 (the "INDEMNIFIED PARTY") shall suffer an
            indemnifiable Claim or Loss, he, she or it shall promptly, after
            obtaining knowledge of the incurrence of any such indemnifiable
            Claim or Loss, give a notice of intent to seek indemnity, describing
            the Claim or Loss in reasonable detail (an "INDEMNITY NOTICE") to
            the Shareholders' Representative and, to the extent such Claim or
            Loss could give rise to a payment from the Escrow Account, the
            Instructing Shareholders (as defined in the Escrow Agreement)(in
            which case such notice shall be accompanied by a list of the last
            known address of each of the Spectra Equity Holders on the Books and
            Records). The failure of any Indemnified Party to give such Persons
            the Indemnity Notice pursuant to such notification provisions shall
            not release the party from whom indemnification under Section 3.4 is
            sought (the "INDEMNIFYING PARTY") of liability under Section 3.4,
            except to the extent that the Indemnifying Party's ability to defend
            such Claim or Loss is materially prejudiced by the failure to give
            such notice. Within thirty (30) days after the receipt by the
            Shareholders' Representative and the Instructing Shareholders (as
            defined in the Escrow Agreement) of the Indemnity Notice, the
            Shareholders'

                                      -62-
<Page>

            Representative, in accordance with the Escrow Agreement and upon
            receipt of instructions thereunder, shall either (i) direct to the
            Escrow Agent to pay to the Indemnified Party an amount equal to the
            indemnifiable Claim or Loss or (ii) direct to the Shareholders'
            Representative to object to such Claim, in which case the
            Shareholders' Representative shall give written notice to the
            Indemnified Party of such objection together with the reasons
            therefor, it being understood that the failure of the Instructing
            Shareholders to so instruct the Shareholders' Representative to so
            object shall preclude the Indemnifying Party from asserting any
            Claim, defense or counterclaim relating to the Indemnifying Party's
            failure to pay any indemnifiable Claim or Loss and the Indemnified
            Party shall be entitled to have such Claim or Loss resolved pursuant
            to the dispute resolution provisions of Section 8.4 of this
            Agreement. The Shareholders' Representative's objection shall not,
            in and of itself, relieve the Indemnifying Party from its
            obligations under Section 3.4 which shall remain subject to Section
            3.5(e) hereof. In the event that the parties are unable to resolve
            the subject of the Indemnity Notice, the issue shall be submitted to
            the dispute resolution provisions of Section 8.4 of this Agreement.

     (b)    Third Party Claim or Loss.

            (i)     Notwithstanding anything set forth in subparagraph (a)
                    above, in the event the facts giving rise to the Claim for
                    indemnification under Section 3.4 shall involve any action,
                    or threatened Claim or demand by any Third Party, the
                    Indemnified Party shall, promptly after obtaining knowledge
                    of such Third Party Claim or demand giving rise to the Claim
                    for indemnification, send written notice of intent to seek
                    indemnity, describing such action, Claim or demand in
                    reasonable detail (a "CLAIM NOTICE") to the Shareholders'
                    Representative and, to the extent such Claim or Loss could
                    give rise to a payment from the Escrow Account, the
                    Instructing Shareholders (in which case such notice shall be
                    accompanied by a list of the last known address of each of
                    the Spectra Equity Holders on the Books and Records). The
                    failure of the Indemnified Party to give such Persons the
                    Claim Notice pursuant to such notification provisions, other
                    than by accidental omission, shall not release the
                    Indemnifying Party of Liability under Section 3.4, except to
                    the extent that the Indemnifying Party's ability to defend
                    such Claim or Loss is materially prejudiced by the failure
                    to give such notice. The Shareholders' Representative on
                    behalf of the Indemnifying Party and on the instruction of
                    the Instructing Shareholders, in accordance with the Escrow
                    Agreement, shall be entitled to defend such action, Claim or
                    demand in the name of the Indemnified Party at the expense
                    of the Indemnifying Party and through counsel selected by
                    the Instructing Shareholders; provided, that if the
                    applicable action, Claim or demand is against, or if the
                    defendants in any such Litigation shall include, both the
                    Indemnified Party and the Indemnifying Party and the
                    Indemnified Party reasonably concludes that a legal conflict
                    exists with respect to the defense of such matter, then the
                    Indemnified Party shall have the right to select separate
                    counsel with the reasonable

                                      -63-
<Page>

                    fees, expenses and disbursements of a single such counsel to
                    be reimbursed by the Indemnifying Party as incurred. In such
                    event, each party will agree not to settle any Claim or Loss
                    without the express written consent of the other party,
                    which consent will not be unreasonably withheld. The
                    Shareholders' Representative shall give the Indemnified
                    Party notice in writing within fourteen (14) days after
                    receiving the Claim Notice from the Indemnified Party of its
                    intent to exercise its right to assume the defense of such
                    action, Claim or demand. If the Indemnified Party has
                    received no such notice within such time period, the
                    Indemnified Party may take control of the defense of such
                    action, Claim or demand but the Indemnifying Party shall pay
                    the reasonable costs of such defense incurred by the
                    Indemnified Party (and all such costs shall be deemed to be
                    Losses for purposes of Section 3.4).

            (ii)    Whenever the Indemnifying Party is entitled to defend any
                    Claim hereunder, the Indemnified Party may elect, by notice
                    in writing to the Shareholders' Representative, to continue
                    to participate through its own counsel, at its expense, but
                    the Shareholders' Representative shall have the right to
                    control the defense of the Claim or the Litigation;
                    provided, that the Shareholders' Representative retains
                    counsel reasonably satisfactory to the Indemnified Party.

            (iii)   Notwithstanding any other provision contained in this
                    Agreement, the party controlling the defense of the Claim or
                    the Litigation shall not settle any such Claim or litigation
                    without the written consent of the other party; which
                    consent shall not be unreasonably withheld or delayed. In
                    the event the Indemnified Party and Shareholders'
                    Representative are unable to agree as to whether the
                    proposed settlement terms are reasonable, the Indemnifying
                    Party and the Shareholders' Representative will submit the
                    disagreement to dispute resolution pursuant to the
                    provisions in Section 8.4 of this Agreement. In the event
                    the proposed settlement shall require that the Indemnified
                    Party make an admission of liability, a confession of
                    judgment, or shall contain any other non-financial
                    obligation which, in the reasonable judgment of the
                    Indemnified Party, renders such settlement unacceptable,
                    then the Indemnifying Party shall continue to be liable to
                    the full extent of such Litigation or Claim. Notwithstanding
                    any provision to the contrary, no indemnifiable Claims or
                    Losses with respect to Taxes shall be settled without the
                    prior written consent of the Surviving Corporation.

     (c)    LIMITATIONS OF INDEMNITY. Notwithstanding any provisions herein to
            the contrary, (i) no Indemnifying Party shall be required to
            indemnify, defend or hold harmless Indemnified Parties pursuant to
            Section 3.4, until such time as the aggregate amount of Losses
            sustained, suffered or incurred, or which may be sustained, suffered
            or incurred exceeds in the aggregate the sum of $50,000 (the
            "THRESHOLD AMOUNT"), and then such recovery shall include the full
            amount of any such Losses, including the Threshold Amount, provided
            that for the sole purpose of

                                      -64-
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            calculating whether the Threshold Amount has been reached, any
            materiality provisions contained in the representations and
            warranties shall be disregarded, and (ii) the aggregate liability of
            Spectra for Losses as to which indemnification may be sought
            pursuant to Section 3.4 shall not exceed $7,365,500 (the "CAP");
            provided, however, (1) that the Cap shall not be applicable to a
            Claim for indemnification which may be sought pursuant to Section
            3.4(a) relating to or arising out of any alleged misstatement of or
            omission from the representations and warranties contained in
            Sections 3.1(cc) to (kk) and Section 3.1(yyy) relating to Spectra's
            Intellectual Property, (2) that the Threshold Amount shall not be
            applicable to a Claim for indemnification which may be sought
            pursuant to Section 3.4(b) and (3) that neither the Threshold Amount
            nor the Cap shall be applicable to (A) a Claim for indemnification
            which may be sought pursuant to Section 3.4(a) relating to or
            arising out of non-compliance with the covenants set forth in
            Sections 4.1 (hh), (B) a Claim for indemnification which may be
            sought pursuant to Section 3.4(a) relating to or arising out of any
            alleged misstatement of or omission from the representations and
            warranties contained in Section 3.1(w) relating to loans to current
            or former employees, directors or consultants of Spectra or (C) a
            Claim that is based on fraud on the part of Spectra or the Spectra
            Shareholders.

     (d)    NO THIRD PARTY BENEFICIARIES. There are no intended third party
            beneficiaries under Section 3.4 with respect to the rights of any
            party hereunder.

     (e)    HOLDBACK. No party entitled to indemnification under Section 3.4
            shall be entitled to make any Claim whatsoever against property or
            assets of any Spectra Equity Holder or Eclipse Shareholder other
            than against the Escrow Accounts as set forth below and in
            accordance with the Escrow Agreement. After Closing and prior to the
            escrow release dates set forth in the Escrow Agreement, any amounts
            which must be paid by an Indemnifying Party on account of the
            indemnification obligations set forth in Section 3.4 hereof or in
            the Support Agreement, respectively (other than on account of an
            indemnification obligation set forth in Section 3.4(a) relating to
            or arising out of any alleged misstatement of or omission from the
            representations and warranties contained in Sections 3.1(cc) through
            (kk) and Section 3.1(yyy) relating to Spectra's Intellectual
            Property which shall be satisfied from the coverages provided to the
            Sanchez Parties under the Representation and Warranty Insurance
            Policy), shall be paid first from the Escrow Account pursuant to the
            provisions hereof and the Escrow Agreement. After the applicable
            escrow release dates set forth in the Escrow Agreement, any amounts
            owing on account of the indemnification provisions in Section 3.4
            hereof or under the Support Agreement may only be sought against the
            Representation and Warranty Insurance Policy, provided, however,
            that the Sanchez Parties shall be entitled to payment of the
            Retention Amount (as such term is defined in the Escrow Agreement)
            pursuant to the terms of the Escrow Agreement.

3.5A        PAYMENT; PROCEDURE FOR JOHN MCLEOD'S INDEMNIFICATION

                                      -65-
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     (a)    CLAIM OR LOSS. In the event that the Person seeking indemnification
            under Section 3.4A (the "MCLEOD INDEMNIFIED PARTY") shall suffer an
            indemnifiable Claim or Loss, he, she or it shall promptly, after
            obtaining knowledge of the incurrence of any such indemnifiable
            Claim or Loss, give a notice of intent to seek indemnity, describing
            the Claim or Loss in reasonable detail (a "MCLEOD INDEMNITY NOTICE")
            to the McLeod Parties. The failure of any McLeod Indemnified Party
            to give the McLeod Parties the McLeod Indemnity Notice shall not
            release the McLeod Parties of liability under Section 3.4A, except
            to the extent that the McLeod Parties' ability to defend such Claim
            or Loss is materially prejudiced by the failure to give such notice.
            Within thirty (30) days after the receipt by the McLeod Parties of
            the McLeod Indemnity Notice, the McLeod Parties shall either (i) pay
            to the McLeod Indemnified Party an amount equal to the indemnifiable
            Claim or Loss or (ii) object to such Claim, in which case John
            McLeod, on behalf of the McLeod Parties shall give written notice to
            the McLeod Indemnified Party of such objection together with the
            reasons therefor, it being understood that the failure of John
            McLeod to so object shall preclude the McLeod Parties from asserting
            any Claim, defense or counterclaim relating to his failure to pay
            any indemnifiable Claim or Loss. John McLeod's objection shall not,
            in and of itself, relieve the McLeod Parties from their obligations
            under Section 3.4A. In the event that the parties are unable to
            resolve the subject of the McLeod Indemnity Notice, the issue shall
            be submitted to the dispute resolution provisions of Section 8.4 of
            this Agreement.

     (b)    Third Party Claim or Loss.

            (i)     Notwithstanding anything set forth in subparagraph (a)
                    above, in the event the facts giving rise to the Claim for
                    indemnification under Section 3.4A shall involve any action,
                    or threatened Claim or demand by any Third Party, the McLeod
                    Indemnified Party shall, promptly after obtaining knowledge
                    of such Third Party Claim or demand giving rise to the Claim
                    for indemnification, send written notice of intent to seek
                    indemnity, describing such action, Claim or demand in
                    reasonable detail (a "MCLEOD CLAIM NOTICE") to John McLeod.
                    The failure of the McLeod Indemnified Party to give John
                    McLeod the McLeod Claim Notice shall not release the McLeod
                    Parties of Liability under Section 3.4A, except to the
                    extent that his ability to defend such Claim or Loss is
                    materially prejudiced by the failure to give such notice.
                    The McLeod Parties shall be entitled to defend such action,
                    Claim or demand in the name of the McLeod Indemnified Party
                    at his own expense and through counsel of its own choosing;
                    provided, that if the applicable action, Claim or demand is
                    against, or if the defendants in any such Litigation shall
                    include, both the McLeod Indemnified Party and the McLeod
                    Parties and the McLeod Indemnified Party reasonably
                    concludes that a legal conflict exists with respect to the
                    defense of such matter, then the McLeod Indemnified Party
                    shall have the right to select separate counsel with the
                    reasonable fees, expenses and disbursements of a single such
                    counsel to be reimbursed by the McLeod Parties as incurred.
                    In such event, each party will agree not to settle any

                                      -66-
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                    Claim or Loss without the express written consent of the
                    other party, which consent will not be unreasonably
                    withheld. John McLeod shall give the McLeod Indemnified
                    Party notice in writing within fourteen (14) days after
                    receiving the McLeod Claim Notice from the McLeod
                    Indemnified Party of the McLeod Parties' intent to exercise
                    their right to assume the defense of such action, Claim or
                    demand. If the McLeod Indemnified Party has received no such
                    notice within such time period, the McLeod Indemnified Party
                    may take control of the defense of such action, Claim or
                    demand but the McLeod Parties shall pay the reasonable costs
                    of such defense incurred by the McLeod Indemnified Party
                    (and all such costs shall be deemed to be Losses for
                    purposes of Section 3.4A).

            (ii)    Whenever the McLeod Parties are entitled to defend any Claim
                    hereunder, the McLeod Indemnified Party may elect, by notice
                    in writing to John McLeod, to continue to participate
                    through its own counsel, at its expense, but the McLeod
                    Parties shall have the right to control the defense of the
                    Claim or the Litigation; provided, that he retains counsel
                    reasonably satisfactory to the McLeod Indemnified Party.

            (iii)   Notwithstanding any other provision contained in this
                    Agreement, the party controlling the defense of the Claim or
                    the Litigation shall not settle any such Claim or litigation
                    without the written consent of the other party; which
                    consent shall not be unreasonably withheld or delayed. In
                    the event the McLeod Indemnified Party and John McLeod, on
                    behalf of the McLeod Parties, are unable to agree as to
                    whether the proposed settlement terms are reasonable, John
                    McLeod and the McLeod Indemnified Party will submit the
                    disagreement to dispute resolution pursuant to the
                    provisions in Section 8.4 of this Agreement. In the event
                    the proposed settlement shall require that the McLeod
                    Indemnified Party make an admission of liability, a
                    confession of judgment, or shall contain any other
                    non-financial obligation which, in the reasonable judgment
                    of the McLeod Indemnified Party, renders such settlement
                    unacceptable, then the McLeod Parties shall continue to be
                    liable to the full extent of such Litigation or Claim.
                    Notwithstanding any provision to the contrary, no
                    indemnifiable Claims or Losses with respect to Taxes shall
                    be settled without the prior written consent of the
                    Surviving Corporation.

     (c)    NO THIRD PARTY BENEFICIARIES. There are no intended third party
            beneficiaries under Section 3.4A with respect to the rights of any
            party hereunder.

                              ARTICLE 4 - COVENANTS

4.1         COVENANTS OF SPECTRA

Spectra covenants and agrees with the Sanchez Parties that during the period
commencing on the date hereof and continuing until the earlier of the Effective
Date or the termination of this

                                      -67-
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Agreement pursuant to Article 7, as the case may be, it will not (and will not
cause or permit any of its Subsidiaries to), without the consent in writing of
Sanchez otherwise, take any action or enter into any transaction other than in
the ordinary course of business consistent with past practices. Without limiting
the generality of the foregoing, Spectra shall (unless otherwise consented to in
writing by Sanchez):

     (a)    use reasonable commercial efforts to take all actions and to do all
            things necessary in order to consummate and make effective the
            transactions contemplated by this Agreement (including satisfaction,
            but not waiver, of the closing conditions set forth in Article 5
            below);

     (b)    carry on its business and the business of its Subsidiaries in and
            only in the ordinary and regular course in substantially the same
            manner as heretofore conducted (including, without limitation,
            maintaining all necessary Licenses and Permits) and, to the extent
            consistent with such business and use all reasonable efforts to
            preserve intact its present business organization;

     (c)    not commence to undertake a substantial or unusual expansion of its
            or its Subsidiaries' business or an expansion that is out of the
            ordinary and regular course of business consistent with prior
            practice in light of current market and economic conditions;

     (d)    not, and will not permit any of its Subsidiaries to, except as
            expressly contemplated by Sections 4.4 and 4.5 and otherwise in this
            Agreement, take any action or enter into any transaction or
            negotiation which would interfere or be inconsistent with the
            consummation of the transactions contemplated by this Agreement;

     (e)    except as contemplated herein in connection with the Transactions,
            not, and will not permit any of its Subsidiaries to, declare, set
            aside or pay any dividend or make any distribution of its properties
            or assets to its shareholders or purchase or retire any Spectra
            Shares or Sub Shares;

     (f)    except for (i) 6,881,984 common shares to be issued prior to Closing
            on the conversion of Series A Preferred Shares, (ii) common shares
            to be issued prior to Closing pursuant to the anti-dilution
            provisions of UpTick Subscription Rights Agreements dated October
            13, 1999, (iii) in respect of the Option Consideration, Warrant
            Consideration and 2001 Employee Bonus to be paid pursuant hereto or
            (iv) as otherwise described in Schedule 4.1(f), Spectra shall not,
            and will not permit any of its Subsidiaries to, allot, reserve, set
            aside or issue, or enter into any agreement for the allotment or
            issuance of, or purchase or redeem or propose the purchase or
            redemption of, or grant any other rights to acquire, shares of its
            capital stock or any of its Subsidiaries thereof or securities
            convertible into, exchangeable for, or which carry the right to
            acquire, directly or indirectly, any shares of its capital stock or
            any such Subsidiary;

                                      -68-
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     (g)    not, whether through the action of the Spectra Board or otherwise,
            accelerate the vesting of any unvested stock options or accelerate
            the release of, or the expiry date of any hold period relating to,
            any Convertible Securities;

     (h)    except as contemplated herein in connection with the Transactions,
            not, and will not permit any of its Subsidiaries to, alter or amend
            its articles, by-laws or other organizational documents, or those of
            its Subsidiaries, as the same exist at the date of this Agreement;

     (i)    use reasonable commercial efforts to obtain all approvals and
            waivers (including, without limitation, the Required Consents) and
            provide all notices necessary or desirable in connection with the
            Transactions and the transactions contemplated hereby and take such
            other reasonable measures as may be appropriate to fulfil its
            obligations hereunder and to carry out the transactions contemplated
            by this Agreement;

     (j)    not, and will not permit any of its Subsidiaries to, acquire or
            agree to acquire by amalgamating, merging or consolidating with,
            purchasing substantially all of the assets of or otherwise, any
            business of any corporation, partnership, association or other
            business organization or division thereof;

     (k)    not, and will not permit any of its Subsidiaries to, sell, lease or
            otherwise dispose of any of its assets;

     (l)    not, and will not permit any of its Subsidiaries to, assume,
            guarantee, endorse or otherwise become liable for the payment of
            Indebtedness or incur Indebtedness or issue or sell any debt
            securities (or any securities convertible or exchangeable thereto),
            it being understood that any prohibition will not prevent or hinder
            the drawing of funds pursuant to credit facilities established and
            available as of the date hereof;

     (m)    promptly advise Sanchez in writing of any Material Adverse Change;

     (n)    for the purposes of carrying out the Transactions, afford to Sanchez
            and its financial, legal and other advisers full access during
            normal business hours during the period prior to the Effective Date
            to the management, properties, Books and Records and Contracts of
            Spectra and its Subsidiaries and to allow Sanchez and such advisers
            to perform a diligent and complete examination of the financial
            condition, business, affairs, properties and assets of Spectra and
            its Subsidiaries and, during such period, make available to Sanchez
            a copy of each material change report or similar document filed by
            it during such period pursuant to the requirements of any Securities
            Legislation, and all other information concerning its business,
            properties and personnel as Sanchez may reasonably request, which
            information shall be true, correct and complete in all material
            respects and shall not contain an untrue statement of any material
            fact or omit to state any material fact required to be stated
            therein or necessary in order to make the statements therein not
            misleading in the light of the circumstances in which they are made;

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     (o)    comply promptly with all requirements which Applicable Laws may
            impose on Spectra or its Subsidiaries with respect to the
            transactions contemplated hereby and by the Arrangement;

     (p)    except June 1, 2002 increases in the amounts previously disclosed to
            Sanchez, not permit Spectra or its Subsidiaries to grant any of
            their employees any increase in compensation or to pay any severance
            or termination amounts whether or not such compensation, payment or
            amount is payable in cash, or enter into any employment agreement
            with any executive officer;

     (q)    not, and shall not permit its Subsidiaries to, make any changes in
            management and use its commercially reasonable efforts to retain all
            of its employees and the current employees of its Subsidiaries;

     (r)    not, and shall not permit any of its Subsidiaries to, grant any
            stock options, stock appreciation or other Convertible Securities;

     (s)    not create or assume any Lien or other Encumbrance on any asset or
            property of the Companies;

     (t)    not, and will not permit any of its Subsidiaries to, make any loan,
            advance or capital contribution to or investment in any Person;

     (u)    not, and will not permit any of its Subsidiaries to, enter into,
            amend, relinquish, terminate or fail to renew any Contract;

     (v)    not incur, or allow any of the Companies incur, any capital
            expenditures in excess of those provided for in the annual budget of
            the Companies as previously presented to Sanchez;

     (w)    not pass any resolution to approve a split, combination or
            reclassification of any of its outstanding Spectra Shares or
            Convertible Securities;

     (x)    not change accounting methods, principles or practices unless
            required by applicable GAAP and after consultation with Sanchez;

     (y)    do all things necessary to establish the date, which shall be as
            soon as practicable and in any event not later than June 24, 2002,
            for the Special Meeting, or such later date as Spectra and Sanchez
            may agree, solicit proxies to be voted at such meeting in favour of
            the Transactions, and prepare and mail Information Circular in
            connection with such meeting which shall be satisfactory in form and
            substance to Sanchez, acting reasonably, and convene the Special
            Meeting, all as contemplated herein and in accordance with
            Applicable Laws, the Interim Order and the requirements of
            securities regulatory authorities;

     (z)    use commercially reasonable efforts to cause each of the conditions
            precedent set forth in Article 5 hereof to be complied with and the
            Required Consents to be obtained on or before the Effective Date and
            take such measures as may be

                                      -70-
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            reasonably necessary or desirable to fulfil its obligations
            hereunder and to implement the Transactions and the transactions
            contemplated under this Agreement;

     (aa)   promptly provide notice of and defend all lawsuits or other legal,
            regulatory or other proceedings challenging or affecting this
            Agreement or the consummation of the transactions contemplated
            hereby;

     (bb)   use reasonable commercial efforts to have lifted or rescinded any
            injunction or restraining order or other order which may adversely
            affect the ability of the parties to consummate the transactions
            contemplated hereby;

     (cc)   effect all necessary registrations, filings and submissions of
            information required by Governmental Entities from Spectra or any of
            its Subsidiaries;

     (dd)   file, or cause to be filed, in a timely manner, all Tax Returns to
            be filed by Spectra and its Subsidiaries and pay, or cause to be
            paid, all Taxes that are due and payable by them;

     (ee)   use reasonable commercial efforts to preserve intact its business
            organizations and goodwill and to maintain satisfactory
            relationships with suppliers, distributors, customers and others
            having business relationship with it;

     (ff)   use reasonable commercial efforts to prevent the cancellation or
            termination of its Current Policies or any of the coverage
            thereunder to lapse;

     (gg)   prior to the Special Meeting, automatically convert all outstanding
            preferred shares into common shares pursuant to and in accordance
            with the "Drag-Along" provision in the articles of amalgamation of
            Spectra dated September 1, 2001 with respect to its Series A
            Preferred Shares;

     (hh)   Except as set forth on the certificate provided by Spectra pursuant
            to Sections 5.3(l) and 5.5(l), all Transaction Fees of Spectra will
            have been paid on Closing and there will be no other outstanding
            Spectra Transaction Fees at Closing; and

     (ii)   The Closing Cash Amount and the Debenture Payoff Amount set forth on
            the Closing Certificate will be true and accurate in all respects as
            of the Closing Date.

4.2         COVENANTS OF SANCHEZ

Sanchez covenants and agrees with Spectra that during the period commencing on
the date hereof and continuing until the earlier of the Effective Date and the
termination of this Agreement pursuant to Article 7, as the case may be, it will
(subject to Spectra consenting in writing otherwise):

     (a)    not, and will not permit any of its Subsidiaries to, except as
            expressly contemplated in this Agreement, take any action or enter
            into any transaction or

                                      -71-
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            negotiation which would interfere or be inconsistent with the
            consummation of the transactions contemplated by this Agreement;

     (b)    use reasonable commercial efforts to obtain all consents, approvals
            and waivers which it is required to obtain and provide all notices
            that are necessary for it to provide in connection with the
            Transactions and the transactions contemplated hereby as may be
            appropriate to fulfil its obligations hereunder and to carry out the
            transactions contemplated by this Agreement;

     (c)    use reasonable commercial efforts to cause each of the conditions
            precedent to its obligations as set forth in Article 5 hereof to be
            complied with on or before the Effective Date and take such measures
            as may be necessary or desirable to fulfil its obligations hereunder
            and implement the Transactions;

     (d)    use reasonable commercial efforts to defend all lawsuits or other
            legal, regulatory or other proceedings to which it is a party
            challenging or affecting this Agreement or the consummation of the
            transactions contemplated hereby;

     (e)    use reasonable commercial efforts to effect all necessary
            registrations, filings and submissions of information required by
            Governmental Entities from Sanchez or its Subsidiaries;

     (f)    use its reasonable commercial efforts to comply promptly with all
            requirements which Applicable Laws may impose on Sanchez or its
            Subsidiaries with respect to the transactions contemplated hereby
            and by the Arrangement; and

     (g)    use its reasonable commercial efforts to assist Spectra in informing
            its clients of this Agreement and the transactions contemplated
            hereby.

4.3         ACTIONS TO COMPLETE ARRANGEMENT

     (a)    CO-OPERATION. Sanchez and Spectra agree that they shall co-operate
            and proceed in good faith with respect to the Arrangement and shall
            use all commercially reasonable efforts to complete the Arrangement
            on or prior to June 30, 2002 including, without limitation:

            (i)     the preparation and filing as promptly as practicable of the
                    Information Circular, any exemption applications or orders
                    and any other documents deemed reasonably necessary by
                    either of Sanchez and Spectra to discharge their respective
                    obligations under applicable Securities Legislation in
                    connection with the Arrangement;

            (ii)    fixing a record date for the determination of those holders
                    of Spectra Shares entitled to receive notice of the Special
                    Meeting and causing such meeting to be held; and

            (iii)   the taking of all such action as may be required under the
                    OBCA in connection with the transactions contemplated by
                    this Agreement,

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                    subject in each case to the provisions of this Agreement.

     (b)    THE ARRANGEMENT.

            (i)     Spectra shall: (i) forthwith following the execution and
                    delivery of this Agreement, prepare jointly with Sanchez an
                    application to the Court for an Interim Order on terms
                    acceptable to both Spectra and Sanchez, each acting
                    reasonably, providing for, among other things, the calling
                    and holding of the Special Meeting on or about
                    June 24, 2002; and (ii) apply for the Interim Order such
                    that the application for such order may be heard by the
                    Court on or about May 31, 2002.

            (ii)    If the approval of the Special Resolution at the Special
                    Meeting in accordance with the Interim Order (or any
                    variation thereof) is obtained, as soon as reasonably
                    practicable thereafter, the parties will forthwith, but in
                    any event no later than five Business Days after the Special
                    Meeting, bring the application to the Court for the Final
                    Order in respect of the Arrangement on any terms as the
                    Court may direct and Spectra and Sanchez may agree.

            (iii)   If a Final Order is obtained, subject to the fulfilment or
                    waiver of each of the conditions set forth in Article 5
                    hereof and, subject to the last sentence of this subsection,
                    on the Stock Purchase Closing Date Spectra and Sanchez will
                    cause the Stock Purchases to be consummated. Subject to the
                    fulfilment or waiver of each of the conditions set forth in
                    Article 5 hereof and, subject to the last sentence of this
                    subsection, on the Effective Date Spectra will file a
                    certified copy of the Final Order for acceptance by the
                    Registrar, together with any other documentation as may be
                    required in connection therewith, to give effect to the
                    Arrangement pursuant to Section 183 of the OBCA.
                    Notwithstanding the foregoing, Sanchez shall be entitled, if
                    it reasonably considers it appropriate to do so having
                    regard, among other things, to the percentage of the total
                    issued and outstanding Spectra Shares that were voted in
                    favour of the Arrangement at the Special Meeting and whether
                    and to what extent Spectra Shareholders appear or are
                    represented at the Court hearing in respect of the Interim
                    Order or the Final Order expressing opposition to the
                    Transactions, to require that the consummation of the Stock
                    Purchases and the filing by Spectra of the Plan of
                    Arrangement be delayed until the earlier of the Termination
                    Date and three Business Days after all appeal periods
                    applicable to the Interim Order and the Final Order have
                    expired, and any such appeals, if any, made during such
                    periods have been denied or withdrawn.

     (c)    INTERIM ORDER. The notice of motion for the application referred to
            in Section 2.1 above will request that the Interim Order provide,
            among other things mutually agreed upon by Spectra and the Sanchez
            Parties: (i) the calling and holding of the Special Meeting, (ii)
            for the class of Persons to whom notice is to be provided in respect
            of the Arrangement and the Special Meeting and for the manner in
            which

                                      -73-
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            such notice is to be provided; (iii) that the requisite approval for
            the Special Resolution shall be (1) two-thirds of the votes cast by
            holders of Spectra Shares represented in person or by proxy at such
            meeting, (2) a majority of the votes cast by holders of the Spectra
            Shares (other than John McLeod, Eclipse and Conlin) represented in
            person or by proxy at such meeting, if applicable; and (3) in such
            other manner as may be required by the Court in the Interim Order;
            and (iv) the provision of dissent rights.

     (d)    INFORMATION CIRCULAR. As promptly as practicable after the execution
            and delivery of this Agreement, Spectra and the Sanchez Parties will
            jointly prepare the Information Circular, Letter of Transmittal and
            Election Form, Warrant Surrender Agreement, Bonus Surrender
            Agreement and Option Surrender Agreement, together with any other
            documents required by the OBCA or other Applicable Law in connection
            with the Transactions and the Special Meeting. Spectra will cause
            the Information Circular, Letter of Transmittal and Election Form,
            Warrant Surrender Agreement, Bonus Surrender Agreement and Option
            Surrender Agreement and any other documentation required in
            connection with the Special Meeting to be sent to each Spectra
            Shareholder and holder of Spectra Options, 2001 Bonus Awards and
            Spectra Warrants, as applicable, as soon as reasonably practicable
            following receipt of the Interim Order and filed as required by the
            Interim Order and Applicable Law. The Warrant Surrender Agreement,
            Bonus Surrender Agreement and Option Surrender Agreement shall be in
            the forms set forth in Section 2.8 hereof.

     (e)    SECURITIES COMPLIANCE.

            (i)     Each of Spectra and the Sanchez Parties will use all
                    reasonable commercial efforts to obtain all orders required
                    (to the extent necessary) from the applicable Canadian and
                    United States securities regulatory authorities to permit
                    the issuance and resale of the Sanchez Shares issued
                    pursuant to the Arrangement, in each case, without
                    qualification, without the approval of, or the filing of,
                    any document, including any prospectus or similar document,
                    or the taking of any proceeding with, or the obtaining of
                    any further order, ruling or consent from, any Governmental
                    Entity or regulatory authority under any Canadian or United
                    States (as applicable) federal, provincial, state or
                    territorial securities or other Law or pursuant to the rules
                    and regulations of any regulatory authority administering
                    those Laws, or the fulfilment of any other legal requirement
                    in any jurisdiction (other than, with respect to resales,
                    any restrictions on transfer by reason of, among other
                    things, a holder being: (i) a "control person" of Sanchez
                    for purposes of Canadian Securities Legislation; or (ii) an
                    "affiliate" of Spectra or Sanchez for purposes of United
                    States Securities Legislation); provided, however, that
                    nothing in this Agreement shall create the obligation that
                    any of the Sanchez Parties be required to file a
                    registration statement or prospectus in the United States in
                    respect of the Sanchez Shares.

                                      -74-
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            (ii)    Spectra and Sanchez will prepare and file all documents
                    (including exemption applications) required under applicable
                    Securities Legislation in respect of exemptions to
                    registration and other requirements of the relevant
                    Securities Legislation, provided that Sanchez shall not in
                    any event be required to file a registration statement or
                    prospectus in the United States in respect of the Sanchez
                    Shares, including pursuant to Regulation A of the 1933 Act.

     (f)    PREPARATION OF FILINGS.

            (i)     Each of Spectra and Sanchez will proceed diligently, in a
                    co-ordinated fashion and use its reasonable commercial
                    efforts in:

                    A.   the preparation of the Information Circular, any
                         exemption applications or orders and any other
                         documents deemed reasonably necessary by either of them
                         to discharge their respective obligations under
                         applicable Securities Legislation in connection with
                         the Arrangement and the other transactions contemplated
                         hereby; and

                    B.   the taking of such action as may be required under any
                         applicable Securities Legislation (including "blue sky
                         laws ") in connection with the issuance of Sanchez
                         Shares, provided however, that with respect to the
                         United States "blue sky" requirements and Canadian
                         provincial qualifications neither Spectra nor Sanchez
                         will be required to register or qualify as a foreign
                         corporation or to take any action that would subject it
                         to service of process in any jurisdiction where that
                         entity is not now so subject except with respect to
                         service of process as to matters and transactions
                         arising solely from the offer and sale of the Sanchez
                         Shares.

            (ii)    Each of Spectra and Sanchez will furnish to the other of
                    them, on a timely basis, all information as may be required
                    to effectuate the foregoing actions, and each covenants that
                    no information so furnished by it in writing in connection
                    with those actions or otherwise in connection with the
                    consummation of the Arrangement will contain any
                    misrepresentation or omission or will fail to comply with
                    any Securities Legislation or Applicable Law. Each of
                    Spectra and Sanchez will ensure that the information
                    relating to it which is provided in the Information Circular
                    will not contain any misrepresentation or omission and will
                    otherwise comply with all Securities Legislation and
                    Applicable Law.

            (iii)   Each of Spectra and Sanchez will promptly notify the other
                    of them if, at any time before the Stock Purchase Closing
                    Date or Effective Date, it becomes aware that the
                    Information Circular contains a misrepresentation (within
                    the meaning of the OSA) or omission of a material fact. In
                    any event, each of Spectra and Sanchez will co-operate in
                    the preparation of a

                                      -75-
<Page>

                    supplement or amendment to the Information Circular, as
                    the case may be, that corrects that misrepresentation, and
                    will cause the same to be distributed to the Spectra
                    Shareholders and filed with each applicable Governmental
                    Entity under Securities Legislation.

            (iv)    Each of Spectra and Sanchez will ensure that the Information
                    Circular complies with all applicable Law (including
                    Securities Legislation). Without limiting the generality of
                    the foregoing, each of Spectra and Sanchez will ensure that
                    the Information Circular provides the Spectra Shareholders
                    with information in sufficient detail to permit them to form
                    a reasoned judgment concerning the matters to be placed
                    before them at the Special Meeting.

     (g)    SPECIAL MEETING. Spectra will, subject to the terms of the Interim
            Order, convene the Special Meeting for the Spectra Shareholders to
            consider and, if deemed advisable, approve the Transactions by way
            of Special Resolution, passed, subject to the terms of the Interim
            Order, by (i) two-thirds of the votes cast by holders of Spectra
            Shares represented in person or by proxy at such meeting, (ii) a
            majority of the votes cast by holders of the Spectra Shares (other
            than John McLeod, Eclipse and Conlin) represented in person or by
            proxy at such meeting, if applicable and (iii) in such other manner
            as may be required by the Court in the Interim Order.

4.4         EXCLUSIVE NEGOTIATION AND NON-SOLICITATION

     (a)    Spectra shall not, directly or indirectly, through any officer,
            director, employee, representative or agent (including, but not
            limited to, any investment banker, attorney or accountant) of
            Spectra or any of its Subsidiaries (i) solicit, initiate or
            encourage (including by way of furnishing information or entering
            into any form of agreement, arrangement or understanding) the
            initiation of any inquiries or proposals regarding a Spectra
            Acquisition Proposal or (ii) participate in any discussions or
            negotiations regarding, or provide any confidential information or
            data to any Person relating to, or otherwise assist or facilitate
            any effort or attempt by any Person to make or implement any Spectra
            Acquisition Proposal. Spectra will notify Sanchez promptly if any
            such inquiries or proposals are received by, any such information is
            requested from, or any such negotiations or discussions are sought
            to be instituted or continued with, Spectra, and will provide to
            Sanchez a copy of such Spectra Acquisition Proposal, including a
            description of the material terms and conditions of any such Spectra
            Acquisition Proposal and the names of the Persons or groups of
            Persons making such proposal. Spectra and its officers and directors
            will, and Spectra will cause its employees, agents and
            representatives (including, without limitation, any investment
            banker, attorney or accountant retained by Spectra) to, immediately
            cease and cause to be terminated any existing activities,
            discussions or negotiations with any parties conducted heretofore
            with respect to any of the foregoing; provided, however, that
            Spectra shall not terminate any agreement pursuant to which a Third
            Party has agreed not to acquire or agree, offer, seek or propose to
            acquire ownership (beneficial or

                                      -76-
<Page>

            otherwise) of outstanding capital stock of Spectra. Spectra will
            promptly request that each Person to whom any confidential documents
            or information concerning Spectra was disclosed by Spectra since
            February 28, 2002 for the purpose of discussing a possible change in
            control transaction involving Spectra (a "POTENTIAL BUYER"), either
            return all of such confidential documents and information, and all
            copies thereof, to Spectra or deliver a written certification of
            such destruction to Spectra.

     (b)    Nothing contained in Section 4.4(a) shall prohibit the Spectra Board
            from furnishing information to, or entering into discussions or
            negotiations with, any Person in connection with an unsolicited
            proposal involving a fully-financed Spectra Acquisition Proposal
            which is made in writing by such Person and which, if consummated,
            would provide aggregate consideration to the Spectra Shareholders
            and the holders of Spectra Options and Spectra Warrants in excess of
            the Purchase Price if, and only to the extent that, the Spectra
            Board determines in good faith, based upon the written advice of
            McCarthy Tetrault LLP, that such action is required for the Spectra
            Board to comply with its fiduciary duties to shareholders under
            Applicable Law (a "SUPERIOR PROPOSAL").

     (c)    If Spectra or its Subsidiaries receives a request for material
            non-public information from a Person who proposes a bona fide
            Spectra Acquisition Proposal and the Spectra Board determines that
            such proposal would constitute a Superior Proposal pursuant to
            Section 4.4(b), then, and only in such case, the Spectra Board may,
            subject to the execution by such Person of a confidentiality
            agreement in form and substance no less beneficial to Spectra as the
            Confidentiality Agreement, provide such Person with access to
            information regarding Spectra.

     (d)    Spectra shall ensure that its officers, directors and employees and
            its Subsidiaries and their officers, directors and employees and any
            financial advisors or other advisors or representatives retained by
            it are aware of the provisions of this Section 4.4, and it shall be
            responsible for any breach of this Section 4.4 by its financial
            advisors or other advisors or representatives.

4.5         COMPETING TRANSACTION

Subject to clauses (a) and (b) below, nothing in this Agreement shall prevent
the Spectra Board from withdrawing, modifying or changing any recommendation
regarding the Transactions, in response to a bona fide Superior Proposal
received in sufficient time to enable Spectra to comply with this Section 4.5.
Spectra shall inform Sanchez forthwith upon becoming aware of a Superior
Proposal and shall not withdraw or otherwise change its recommendation to
approve the Transactions unless:

     (a)    it has provided Sanchez with notice in writing delivered to Sanchez
            that there is a Superior Proposal at least eight Business Days prior
            to the date on which the Spectra Board proposes to withdraw or
            otherwise change its recommendation to approve the Transactions,
            which notice may only be given if the Superior

                                      -77-
<Page>

            Proposal has been made or proposed on or before the eight Business
            Day prior to the Special Meeting;

     (b)    Sanchez, within five Business Days after receipt of the notice
            contemplated above, does not increase the consideration to at least
            equal the consideration under the Superior Proposal within three
            Business Days thereafter and, in any event, before the Special
            Meeting, provided that, if more than one Superior Proposal exists,
            the provisions of this Section 4.5(b) shall only apply to and in
            respect of the Superior Proposal that the Spectra Board concludes is
            the superior transaction and has so notified Sanchez; and

     (c)    it deposits the Sanchez Termination Fee in an interest bearing
            escrow account with a Third Party mutually agreeable to Sanchez and
            Spectra, such amounts to be used exclusively to pay the Sanchez
            Termination Fee pursuant to Section 7.4 hereof.

4.6         POSTPONEMENT OF SPECIAL MEETINGS

Notwithstanding anything to the contrary herein, if a Superior Proposal is
proposed at any time prior to the date of the Special Meeting, Sanchez may, if
Sanchez increases the consideration per Spectra Share, by notice in writing to
Spectra, require that the Special Meeting be postponed to a date reasonably
necessary (up to maximum of 30 days) to enable Spectra and Sanchez to jointly
prepare an amendment to the Information Circular, together with any other
documents required by the OBCA or other Applicable Law, which Information
Circular and any other documentation required in connection with the Special
Meeting Spectra will cause to be sent to each Spectra shareholder as soon as
reasonably practicable after such notice has been given by Sanchez to Spectra to
enable the Spectra Shareholders to vote on the Transactions, as amended.

4.7         INDEMNIFICATION

     (a)    Sanchez agrees that all rights to indemnification or exculpation now
            existing in favour of the directors or officers of Spectra shall
            survive the Arrangement and shall continue in full force and effect
            for a period of four years, and effective upon consummation of the
            Arrangement, Sanchez shall assume, to the extent permitted under the
            Applicable Law, all such indemnification obligations with respect to
            any matters arising prior to the Effective Time. The foregoing
            covenant shall be held by Spectra in trust for the directors and
            officers of Spectra and all benefits existing thereunder shall be
            for the benefit of such directors and officers.

     (b)    There shall be maintained in effect, for not less than four years
            from the Effective Date, coverage equivalent to that in effect under
            the current policies of the directors' and officers' liability
            insurance maintained by Spectra which is no less advantageous, and
            with no gaps or lapses in coverages with respect to matters
            occurring prior to the Effective Date; provided, however, if the
            existing liability insurance expires, or is terminated or canceled
            by the insurance carrier during such four-year period, the Surviving
            Corporation will use reasonable commercial efforts to obtain as much
            liability insurance as can be obtained for the remainder

                                      -78-
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            of such period for a premium not in excess (on an annualized basis)
            of 150% of the last annual premium paid prior to the date hereof. In
            fulfillment of its obligations under this clause (b), Sanchez may
            arrange insurance providing coverage that in the aggregate is no
            less favorable to Spectra's officers and directors than that which
            is currently in effect for Sanchez' officers and directors.

4.8         LITIGATION PROCEEDINGS

In the event that any Person including, without limitation, any securities
regulatory authority, seeks to prevent, delay or hinder implementation of all or
any portion of the Arrangement or seeks to invalidate all or any portion of this
Agreement or the Plan of Arrangement, each of the parties hereto shall use all
commercially reasonable efforts to vigorously and diligently resist such
proceedings and will not settle or compromise any Claim or Claims which, if
successful, would exceed $50,000 alone or in the aggregate, brought by any such
Person, including, without limitation, any securities regulatory authority or
Spectra's or Sanchez's respective present, former or purported holders of any of
their securities, in connection with the transactions contemplated by this
Agreement, prior to the Effective Date without first consulting and discussing
the proposed settlement or compromise fully with the other parties and obtaining
such other parties' prior written consent, which shall not be unreasonably
withheld or delayed.

4.9         NOTICE

Each of Sanchez and Spectra will give prompt notice to each other of the
existence, occurrence, or failure to occur, at any time from the date hereof to
the Effective Date, of any change, event, condition, occurrence or state of
facts which would, or would be likely to: (i) cause any of the representations
or warranties of such party contained herein to be untrue or inaccurate in any
material respect on the date hereof or at the Effective Date; or (ii) result in
the failure to comply with or satisfy any covenant, condition or agreement
relating to this Agreement to be complied with or satisfied by such party prior
to the Effective Date; provided, however, that no notification will affect the
representations and warranties of either of them or the conditions to the
obligations of either of them or otherwise affect the remedies available
hereunder to the party receiving the notice.

4.10        MONTHLY REPORTS AND QUARTERLY FINANCIAL STATEMENTS.

Spectra shall deliver to Sanchez monthly consolidated financial statements of
the Companies consisting of a balance sheet, income statement and statement of
cash flows (the "UNAUDITED MONTHLY STATEMENTS") for each calendar month
hereafter within 15 Business Days after the end of each such month. Delivery of
each set of Unaudited Monthly Statements shall automatically constitute a
representation and warranty by Spectra that such Unaudited Monthly Statements
were prepared in accordance with applicable GAAP and fairly present the
financial condition, the results of operations and, where applicable, the cash
flows of the Companies as of their respective dates and for the respective
periods reported therein (subject to normal year-end adjustments and the lack of
any footnote disclosures) and such Unaudited Monthly Statements shall be deemed
"Financial Statements" for purposes of this Agreement.

                                      -79-
<Page>

4.11        [INTENTIONALLY OMITTED]

4.12        DISCLOSED CLAIMS

Prior to and for the 90 day period immediately following Closing (the "CONTROL
PERIOD"), counsel reasonably acceptable to the Sanchez Parties and Spectra or
the Shareholders' Representative shall continue, under the direction and at the
discretion of Spectra (or the Shareholders' Representative after Closing), to
represent Spectra and any person who served as an officer or director of Spectra
in respect of Disclosed Claims. Prior to the Closing, Spectra shall pay all
costs and expenses in connection with such Disclosed Claims. Prior to the
Closing, Spectra may obtain an Acceptable Settlement without the consent of the
Sanchez Parties if the Losses related thereto do not exceed that amount which is
set forth on Schedule 4.12 (the "THRESHOLD SETTLEMENT AMOUNT"), otherwise any
other settlement of Disclosed Claims involving a settlement amount in excess of
the Threshold Settlement Amount, shall require the prior written approval of the
Sanchez Parties. After the Control Period, counsel reasonably acceptable to the
Sanchez Parties and Spectra or the Shareholders' Representative, under the
direction and at the discretion of Sanchez, shall represent Spectra and any
person who served as an officer or director of Spectra prior to Closing in
respect of the Disclosed Claims and Sanchez shall control all aspects of the
defence and settlement of such Disclosed Claims. Any and all costs incurred by
the Sanchez Parties and paid in connection with Disclosed Claims in excess of US
$30,000 shall be reimbursed from the Escrow Account in accordance with the terms
and conditions of Section 3.5 hereof and the Escrow Agreement.

4.13        EMPLOYEES

Within five (5) days after the date hereof, the Companies shall demand payment
in full of all outstanding loans to current or former employees, directors or
consultants of the Companies.

                        ARTICLE 5 - CONDITIONS OF CLOSING

5.1         MUTUAL CONDITIONS PRECEDENT

The respective obligations of the parties hereto to consummate the Stock
Purchases and Arrangement shall be subject to fulfilment of each of the
following conditions on or before the Stock Purchase Closing Date and the
Effective Date, as the case may be, any of which may be waived by the parties
hereto, without prejudice to their right to rely on any other or others of them:

     (a)    the Agreement shall have been accepted by the holders of Spectra
            Shares by such margin as is in compliance with the terms of the
            "Drag-Along Right" contained in the Series A Preferred Share terms;

     (b)    the Plan of Arrangement shall have been approved by the holders of
            Spectra Shares at the Special Meeting by such margin as is in
            compliance with the terms and provisions of the OBCA and the Interim
            Order;

                                      -80-
<Page>

     (c)    all consents, approvals, authorizations, waivers and orders required
            or necessary for the completion of the transactions contemplated
            herein shall have been obtained or received from the Persons,
            authorities or bodies having jurisdiction in the circumstances
            (including consents to change of control of Spectra under
            contractual obligations of Spectra and the issuance of the Final
            Order);

     (d)    no legal impediment will exist, whether arising under Law or
            regulation, or by actions of a court, nor will any proceedings or
            Litigation, judicial, administrative or otherwise, be pending before
            a court or threatened, in Canada or elsewhere, that will have the
            consequence (or would, if successful, have the consequence) of
            preventing the Stock Purchases or the Arrangement, imposing material
            limitations or conditions on the Stock Purchases, Arrangement or the
            transactions contemplated hereby or on the rights of the Sanchez
            Parties to own and exercise full rights to ownership of the Spectra
            Shares and the Subsidiary Purchase Shares, or which has resulted in,
            or if the Arrangement or Stock Purchases were completed, would
            result in a Material Adverse Change with respect to Spectra or its
            Subsidiaries; and

     (e)    this Agreement shall not have been terminated pursuant to Article 7.

5.2         CONDITIONS TO OBLIGATION OF SPECTRA TO CONSUMMATE THE STOCK
            PURCHASES

The obligation of Spectra to consummate the Stock Purchases is subject to the
satisfaction on or before the Effective Date of each of the following
conditions, any of which may be waived by it in writing without prejudice to its
right to rely on any other or others of them except as affected by the
transactions permitted or contemplated by this Agreement:

     (a)    the representations and warranties of Sanchez contained herein which
            are not subject to a Material Adverse Effect, materiality or similar
            qualifier shall be true and correct in all material respects on the
            Effective Date with the same effect as though made again at and as
            of such date (except representations and warranties which address
            matters only as of a certain date which shall be true and correct as
            of such date) and all representations and warranties which are
            subject to a Material Adverse Effect, materiality or other similar
            qualifier shall be true and correct on the Effective Date (except
            representations and warranties which address matters only as of a
            certain date which shall be true and correct as of such date) and
            all covenants and obligations of Sanchez required to be observed,
            performed or complied with shall have been so observed, performed or
            complied with in all material respects by the Stock Purchase Closing
            Date and Spectra shall have received certificates dated the Stock
            Purchase Closing Date signed by two senior officers of Sanchez, as
            applicable, to that effect; and

     (b)    The Sanchez Parties shall have caused the Stock Purchase Price to be
            deposited to a bank account at a Canadian financial institution at
            least one Business Day prior to the Stock Purchase Closings.

                                      -81-
<Page>

5.3         CONDITIONS TO OBLIGATION OF SANCHEZ PARTIES TO CONSUMMATE THE STOCK
            PURCHASES

The obligation of each of the Sanchez Parties to consummate the Stock Purchases
is subject to the satisfaction on or before the Stock Purchase Closing Dates of
each of the following conditions, any of which may be waived by Sanchez on
behalf of itself in writing without prejudice to Sanchez's right to rely on any
other or others of them:

     (a)    except as affected by the transactions permitted or contemplated by
            this Agreement, the representations and warranties of Spectra
            contained herein which are not subject to a Material Adverse Effect,
            materiality or similar qualifier shall be true and correct in all
            material respects on the Effective Date with the same effect as
            though made again at and as of such date (except representations and
            warranties which address matters only as of a certain date which
            shall be true and correct as of such date) and all representations
            and warranties which are subject to a Material Adverse Effect,
            materiality or other similar qualifier shall be true and correct on
            the Effective Date (except representations and warranties which
            address matters only as of a certain date which shall be true and
            correct as of such date) and all covenants and obligations of
            Spectra required to be observed, performed or complied with shall
            have been so observed, performed or complied with in all material
            respects by the Stock Purchase Closing Date, and Sanchez shall have
            received certificates dated the Stock Purchase Closing Date signed
            by two senior officers of Spectra as applicable, to that effect,
            such certificate which shall be deemed a Collateral Document
            hereunder;

     (b)    except with respect to any Material Adverse Changes disclosed to
            Sanchez herein as of the date this Agreement is first executed by
            the parties hereto, from the Balance Sheet Date up to and including
            the Stock Closing Purchase Date, there shall have been no Material
            Adverse Change with respect to Spectra and its Subsidiaries nor will
            any change of Law have occurred which, in the reasonable judgement
            of Sanchez, has or will have a Material Adverse Effect with respect
            to Spectra and its Subsidiaries;

     (c)    all Convertible Securities, other than those set forth on Schedule
            3.1(e), shall have been cancelled and shall no longer be
            outstanding;

     (d)    Spectra and the Spectra Shareholders shall have complied with all
            notice requirements and other provisions of the Institutional
            Shareholders Agreement, the Employee Shareholders Agreement, the
            Spectra Warrants and the Spectra Options and the Company Benefit
            Plans in connection with or as a result of the Transactions;

     (e)    the Support Agreement shall be and remain in full force and effect,
            unamended, and each of the parties thereto shall have performed
            their respective obligations thereunder;

                                      -82-
<Page>

     (f)    the Employment Agreements in the form attached as Exhibit G shall
            have been duly executed and delivered by John C. McLeod and
            R. Gordon Conlin;

     (g)    the Non-Competition Agreements in the form attached as Exhibit H
            shall have been duly executed and delivered by John C. McLeod and
            R. Gordon Conlin;

     (h)    all Required Consents (including, without limitation, the Third
            Party Consents) which, in the determination of Sanchez, acting
            reasonably, are necessary or desirable to proceed with and
            consummate the Stock Purchases and the Arrangement shall have been
            obtained;

     (i)    McCarthy Tetrault LLP, counsel for the Companies, shall have
            delivered to Sanchez their favorable opinion, dated the Stock
            Purchase Closing Date, in the form attached as Exhibit I hereto;

     (j)    Spectra and the Escrow Agent shall have entered into the Escrow
            Agreement making provision for the deposit of the Holdback Amount
            with CIBC Mellon Trust Company pursuant to the terms of the Escrow
            Agreement to be available to Sanchez to satisfy any Claims (as
            hereinafter defined) arising under this Agreement or the Support
            Agreement;

     (k)    Spectra shall have delivered to the Sanchez Parties the agreement
            and consent of VenGrowth to be paid the Debenture Payoff Amount, as
            set forth in Section 2.7;

     (l)    Spectra shall have delivered to the Sanchez Parties (i) the Closing
            Certificate and (ii) a detailed accounting of all of Spectra's
            Transaction Fees, the nature of the fee, the amount of the fee and
            payment instructions of such fee, together with a statement from any
            Third Party to which such amounts are owed stating that such amounts
            shown are final and that such Third Party shall have no other claims
            for fees or amounts in connection with the Transactions or the
            transactions contemplated by this Agreement;

     (m)    Spectra shall have delivered to the Sanchez Parties a Warrant
            Surrender Agreement from the holder of each outstanding Spectra
            Warrant;

     (n)    the Shareholder Agreements shall have been terminated;

     (o)    Spectra shall have no preferred shares outstanding, and all rights
            to participate in the Transactions as a purchaser of the Spectra
            Shares or to otherwise acquire Spectra Shares as a result of the
            Transactions shall have expired or been waived in writing by the
            holder of such rights;

     (p)    Spectra shall have obtained the Representation and Warranty
            Insurance Policy, 50% of the cost of the premiums of which shall be
            Spectra Transaction Fees payable in accordance with Section
            2.7(c)(i)(B);

     (q)    the existing loans to John McLeod and R. Gordon Conlin shall be
            repaid in full;

                                      -83-
<Page>

     (r)    Spectra shall have delivered to the Sanchez Parties a certificate
            duly executed by the Secretary or any Assistant Secretary of Spectra
            dated the Stock Purchase Closing Date that (i)(A) the certified copy
            of the Articles of Incorporation for Spectra, certified by the
            Province of Ontario, attached to such certificate, is true, correct
            and complete, and is in effect on and as of the Stock Purchase
            Closing Date, (B) the Bylaws of Spectra, attached to such
            certificate, are true, correct and complete, and are in effect on
            and as of the Stock Purchase Closing Date and (C) the resolutions of
            the Board of Directors of Spectra, attached to such certificate
            approving this Agreement and the Transactions are true, correct and
            complete and are in full force and effect as of the Stock Purchase
            Closing Date; (ii) the officers of Spectra executing this Agreement
            are incumbent officers of Spectra and that the specimen signatures
            on such certificate are their genuine signatures; and (iii) Spectra
            is presently existing and in good standing under the laws of the
            Province of Ontario;

     (s)    Spectra shall have delivered to the Sanchez Parties letters executed
            by each of the members of the Spectra Board and each Spectra
            Subsidiary effecting each such member's resignation from the Spectra
            Board and the board of directors of each Spectra Subsidiary as of
            the Closing Date;

     (t)    Spectra shall have entered into a settlement and release agreement
            with Croesus which memorializes and contains the terms of the
            settlement outline attached hereto as Exhibit J and which includes a
            release from any liability concerning intellectual property
            infringement or potential intellectual property infringement;

     (u)    except as affected by the transactions permitted or contemplated by
            this Agreement, the representations and warranties of the McLeod
            Parties contained herein which are not subject to a materiality or
            similar qualifier shall be true and correct in all material respects
            on the Effective Date with the same effect as though made again at
            and as of such date (except representations and warranties which
            address matters only as of a certain date which shall be true and
            correct as of such date) and all representations and warranties
            which are subject to a materiality or other similar qualifier shall
            be true and correct on the Effective Date (except representations
            and warranties which address matters only as of a certain date which
            shall be true and correct as of such date) and all covenants and
            obligations of the McLeod Parties required to be observed, performed
            or complied with shall have been so observed, performed or complied
            with in all material respects by the Stock Purchase Closing Date,
            and Sanchez shall have received a certificate dated the Stock
            Purchase Closing Date signed by the McLeod Parties that effect; and

     (v)    from the Balance Sheet Date up to and including the Stock Closing
            Purchase Date, there shall have been no Material Adverse Change with
            respect to Eclipse nor will any change of Law have occurred which,
            in the reasonable judgement of Sanchez, has or will have a Material
            Adverse Effect with respect to Eclipse;

                                      -84-
<Page>

     (w)    all outstanding indebtedness of the Subsidiaries of Spectra owed to
            Spectra shall have been converted to equity or forgiven;

     (x)    Eclipse shall have duly filed, and paid all amounts owed in
            connection with, all Tax Returns required to be filed by it with any
            taxation authority;

     (y)    the Director shall have granted the rectification set forth in the
            Application for Rectification of Articles of Incorporation under the
            OBCA filed by Spectra in March 20, 2002; and

     (z)    the Encumbrances on the properties and assets of Spectra and its
            Subsidiaries in favour of VenGrowth shall have been removed.

5.4       CONDITIONS TO OBLIGATION OF SPECTRA TO CONSUMMATE THE ARRANGEMENT

The obligation of Spectra to consummate the Arrangement is subject to the
satisfaction on or before the Effective Date of each of the following
conditions, any of which may be waived by it in writing without prejudice to its
right to rely on any other or others of them except as affected by the
transactions permitted or contemplated by this Agreement:

     (a)    the representations and warranties of Sanchez contained herein which
            are not subject to a Material Adverse Effect, materiality or similar
            qualifier shall be true and correct in all material respects on the
            Effective Date with the same effect as though made again at and as
            of such date (except representations and warranties which address
            matters only as of a certain date which shall be true and correct as
            of such date) and all representations and warranties which are
            subject to a Material Adverse Effect, materiality or other similar
            qualifier shall be true and correct on the Effective Date (except
            representations and warranties which address matters only as of a
            certain date which shall be true and correct as of such date) and
            all covenants and obligations of Sanchez required to be observed,
            performed or complied with shall have been so observed, performed or
            complied with in all material respects by the Effective Date and
            Spectra shall have received certificates dated the Effective Date
            signed by two senior officers of Sanchez, as applicable, to that
            effect;

     (b)    Sanchez and the Escrow Agent shall have entered into the Escrow
            Agreement making provision for the deposit of the Holdback Amount
            with CIBC Mellon Trust Company pursuant to the terms of the Escrow
            Agreement to be available to Sanchez to satisfy any Claims (as
            hereinafter defined) arising under this Agreement or the Support
            Agreement and the funds required to be delivered by Sanchez by
            Section 2.5 shall have been deposited free and clear of all charges;
            and

     (c)    Sanchez shall have caused the Purchase Price to be deposited to a
            bank account at a Canadian financial institution at least one
            Business Day prior to the Closing.

                                      -85-
<Page>

5.5         CONDITIONS TO OBLIGATION OF SANCHEZ PARTIES TO CONSUMMATE THE
            ARRANGEMENT

The obligation of each of the Sanchez Parties to consummate the Arrangement is
subject to the satisfaction on or before the Effective Date of each of the
following conditions, any of which may be waived by Sanchez on behalf of itself
in writing without prejudice to Sanchez's right to rely on any other or others
of them:

     (a)    except as affected by the transactions permitted or contemplated by
            this Agreement, the representations and warranties of Spectra
            contained herein which are not subject to a Material Adverse Effect,
            materiality or similar qualifier shall be true and correct in all
            material respects on the Effective Date with the same effect as
            though made again at and as of such date (except representations and
            warranties which address matters only as of a certain date which
            shall be true and correct as of such date) and all representations
            and warranties which are subject to a Material Adverse Effect,
            materiality or other similar qualifier shall be true and correct on
            the Effective Date (except representations and warranties which
            address matters only as of a certain date which shall be true and
            correct as of such date) and, subject to Section 4.1, all covenants
            and obligations of Spectra required to be observed, performed or
            complied with shall have been so observed, performed or complied
            with in all material respects by the Effective Date, and Sanchez
            shall have received certificates dated the Effective Date signed by
            two senior officers of Spectra as applicable, to that effect, such
            certificate which shall be deemed a Collateral Document hereunder;

     (b)    from the Balance Sheet Date up to and including the Effective Date,
            there shall have been no Material Adverse Change with respect to
            Spectra and its Subsidiaries nor will any change of Law have
            occurred which, in the reasonable judgement of Sanchez, has or will
            have a Material Adverse Effect with respect to Spectra and its
            Subsidiaries;

     (c)    all Convertible Securities shall have been cancelled and shall no
            longer be outstanding;

     (d)    Spectra and the Spectra Shareholders shall have complied with all
            notice requirements and other provisions of the Institutional
            Shareholders Agreement, the Employee Shareholders Agreement, the
            Spectra Warrants and the Spectra Options and the Company Benefit
            Plans in connection with or as a result of the Transactions;

     (e)    the Support Agreement shall be and remain in full force and effect,
            unamended, and each of the parties thereto shall have performed
            their respective obligations thereunder;

     (f)    the Employment Agreements in the form attached as Exhibit G shall
            have been duly executed and delivered by John C. McLeod and
            R. Gordon Conlin;

                                      -86-
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     (g)    the Non-Competition Agreements in the form attached as Exhibit H
            shall have been duly executed and delivered by John C. McLeod and
            R. Gordon Conlin;

     (h)    all Required Consents (including, without limitation, the Third
            Party Consents) which, in the determination of Sanchez, acting
            reasonably, are necessary or desirable to proceed with and
            consummate the Arrangement shall have been obtained;

     (i)    McCarthy Tetrault LLP, counsel for the Companies, shall have
            delivered to Sanchez their favorable opinion, dated the Closing
            Date, in the form attached as Exhibit I hereto;

     (j)    Spectra and the Escrow Agent shall have entered into the Escrow
            Agreement making provision for the deposit of the Holdback Amount
            with CIBC Mellon Trust Company pursuant to the terms of the Escrow
            Agreement to be available to Sanchez to satisfy any Claims (as
            hereinafter defined) arising under this Agreement or the Support
            Agreement;

     (k)    Spectra shall have delivered to the Sanchez Parties the agreement
            and consent of VenGrowth to be paid the Debenture Payoff Amount, as
            set forth in Section 2.7;

     (l)    Spectra shall have delivered to the Sanchez Parties (i) the Closing
            Certificate and (ii) a detailed accounting of all of Spectra's
            Transaction Fees, the nature of the fee, the amount of the fee and
            payment instructions of such fee, together with a statement from any
            Third Party to which such amounts are owed stating that such amounts
            shown are final and that such Third Party shall have no other claims
            for fees or amounts in connection with the Transactions or the
            transactions contemplated by this Agreement;

     (m)    Spectra shall have delivered to the Sanchez Parties a Warrant
            Surrender Agreement from the holder of each outstanding Spectra
            Warrant;

     (n)    the Shareholder Agreements shall have been terminated;

     (o)    the Stock Purchases shall have been consummated in accordance with
            this Agreement;

     (p)    Spectra shall have no preferred shares outstanding, and all rights
            to participate in the Transactions as a purchaser of the Spectra
            Shares or to otherwise acquire Spectra Shares as a result of the
            Transactions shall have expired or been waived in writing by the
            holder of such rights;

     (q)    Spectra shall have obtained the Representation and Warranty
            Insurance Policy, 50% of the cost of the premiums of which shall be
            Spectra Transaction Fees payable in accordance with Section
            2.7(c)(i)(B);

     (r)    the existing loans to John McLeod and R. Gordon Conlin shall be
            repaid in full;

                                      -87-
<Page>

     (s)    Spectra shall have delivered to the Sanchez Parties a certificate
            duly executed by the Secretary or any Assistant Secretary of Spectra
            dated the Closing Date that (i)(A) the certified copy of the
            Articles of Incorporation for Spectra, certified by the Province of
            Ontario, attached to such certificate, is true, correct and
            complete, and is in effect on and as of the Closing Date, (B) the
            Bylaws of Spectra, attached to such certificate, are true, correct
            and complete, and are in effect on and as of the Closing Date and
            (C) the resolutions of the Board of Directors of Spectra, attached
            to such certificate approving this Agreement and the Transactions
            are true, correct and complete and are in full force and effect as
            of the Closing Date; (ii) the officers of Spectra executing this
            Agreement are incumbent officers of Spectra and that the specimen
            signatures on such certificate are their genuine signatures; and
            (iii) Spectra is presently existing and in good standing under the
            laws of the Province of Ontario;

     (t)    Spectra shall have delivered to the Sanchez Parties letters executed
            by each of the members of the Spectra Board and each Spectra
            Subsidiary effecting each such member's resignation from the Spectra
            Board and the board of directors of each Spectra Subsidiary as of
            the Closing Date;

     (u)    Spectra shall have entered into a settlement and release agreement
            with Croesus which memorializes and contains the terms of the
            settlement outline attached hereto as Exhibit J and which includes a
            release from any liability concerning intellectual property
            infringement or potential intellectual property infringement;

     (v)    except as affected by the transactions permitted or contemplated by
            this Agreement, the representations and warranties of the McLeod
            Parties contained herein which are not subject to a materiality or
            similar qualifier shall be true and correct in all material respects
            on the Effective Date with the same effect as though made again at
            and as of such date (except representations and warranties which
            address matters only as of a certain date which shall be true and
            correct as of such date) and all representations and warranties
            which are subject to a materiality or other similar qualifier shall
            be true and correct on the Effective Date (except representations
            and warranties which address matters only as of a certain date which
            shall be true and correct as of such date) and, subject to
            Section 5.1, all covenants and obligations of the McLeod Parties
            required to be observed, performed or complied with shall have been
            so observed, performed or complied with in all material respects by
            the Effective Date, and Sanchez shall have received a certificate
            dated the Effective Date signed by the McLeod Parties to that
            effect;

     (w)    from the Balance Sheet Date up to and including the Effective Date,
            there shall have been no Material Adverse Change with respect to
            Eclipse nor will any change of Law have occurred which, in the
            reasonable judgement of Sanchez, has or will have a Material Adverse
            Effect with respect to Eclipse;

     (x)    all outstanding indebtedness of the Subsidiaries of Spectra owed to
            Spectra shall have been converted to equity or forgiven;

                                      -88-
<Page>

     (y)    Eclipse shall have duly filed, and paid all amounts owed in
            connection with, all Tax Returns required to be filed by it with any
            taxation authority; and

     (z)    the Director shall have granted the rectification set forth in the
            Application for Rectification of Articles of Incorporation under the
            OBCA filed by Spectra in March, 2002.

                           ARTICLE 6 - PAYMENT OF FEES

6.1         PAYMENT OF FEES

Except as provided in Section 7.4 hereto and Section 2.7(c) hereto, each party
hereto shall pay its own costs and expenses incurred in connection with this
Agreement and the Arrangement including, without limitation, expenses incurred
in connection with the preparation and mailing of the Information Circulars and
fees payable to their respective investment advisors, legal counsel and
auditors. In addition to any other remedies set forth herein, any Spectra
Transaction Fees that arise or become known after the Closing, to the extent
there is sufficient funds after payment of all indemnification Claims pursuant
to Section 3.4 hereof, shall be paid from the Holdback Amount in the Escrow
Account prior to its release.

                             ARTICLE 7 - TERMINATION

7.1         TERMINATION

This Agreement may be terminated and the transactions contemplated hereby may be
abandoned, whether before or after the approval of this Agreement and the
Transactions by the Spectra Shareholders:

     (a)    by written mutual consent of Spectra and Sanchez;

     (b)    by either Sanchez or Spectra if either of the Transactions shall not
            have been consummated on or before July 26, 2002, unless otherwise
            agreed to in writing by Sanchez and Spectra;

     (c)    by either Sanchez or Spectra if the requisite approval of the
            Spectra Shareholders shall not have been obtained at the Special
            Meeting;

     (d)    by either Sanchez or Spectra if any of the conditions precedent to
            be performed by the other party set forth in Article 5 shall not
            have been fulfilled or performed by such other party in accordance
            with the provisions hereof or thereof; or

     (e)    by either Sanchez or Spectra if a federal, state, provincial or
            other court of competent jurisdiction (whether U.S., Canadian or
            otherwise) or Governmental Entity shall have issued an order, decree
            or ruling or taken any other action permanently restraining,
            enjoining or otherwise prohibiting the transactions contemplated by
            this Agreement and such injunction, order, decree, ruling or

                                      -89-
<Page>

            other action shall have become final; provided that the party
            seeking to terminate this Agreement pursuant to this clause (e)
            shall have used all commercially reasonable efforts to remove such
            injunction, order, decree or ruling;

     (f)    by Sanchez, if the Spectra Board (i) enters into or publicly
            announces its intention to enter into an agreement or agreement in
            principle with respect to a Spectra Acquisition Proposal, (ii)
            withdraws or modifies its recommendation to the Spectra Shareholders
            of this Agreement or the Transactions or (iii) after the receipt of
            a Spectra Acquisition Proposal, fails to confirm publicly, upon
            request by Sanchez, its recommendation to the Spectra Shareholders
            that the Spectra Shareholders approve this Agreement and the
            Transactions;

     (g)    by Sanchez, if Spectra or its Subsidiaries shall have breached any
            of their representations, warranties or covenants under this
            Agreement; or

     (h)    by Spectra, if any of the Sanchez Parties shall have breached any of
            their representations, warranties or covenants under this Agreement.

7.2         EFFECT OF TERMINATION

Except as provided in Section 7.4 below, if any party hereto terminates this
Agreement pursuant to Section 7.1 above, all rights and obligations of the
parties hereto hereunder shall terminate without any liability of any party to
any other party (except for any liability of any party then in breach);
provided, however, that the provisions of the Confidentiality Agreement, this
Section 7.2, Section 7.4 and Section 6.1 shall survive any such termination.

7.3         WITHDRAWAL OF SUPPORT FOR THE TRANSACTIONS

Subject to the provisions of Sections 4.4, 4.5 and 7.4, nothing in this
Agreement shall prevent the Spectra Board from withdrawing, modifying or
changing any recommendation regarding the Agreement or the Transactions (but not
terminating this Agreement), if a Superior Proposal has been made.

7.4         SANCHEZ TERMINATION FEE

     (a)    If this Agreement is terminated by Sanchez pursuant to Section
            7.1(g), but only with respect to a breach by Spectra or its
            Subsidiaries of Section 4.4, or Section 7.1(f), then Spectra will
            immediately pay Sanchez the sum of $2,000,000 in immediately
            available funds (such amount which shall have been deposited into an
            escrow account pursuant to Section 4.5), which the parties hereto
            agree is a reasonable sum to reimburse Sanchez for costs and
            expenses incurred in connection with this Agreement (the "SANCHEZ
            TERMINATION FEE").

     (b)    Sanchez agrees that the payment provided for in Section 7.4(a) shall
            be the sole and exclusive remedy upon a termination of this
            Agreement provided that nothing herein shall relieve any party from
            liability for any breach of any representation, warranty, covenant
            or other agreement in this Agreement occurring prior to termination.

                                      -90-
<Page>

     (c)    The provisions of this Section 7.4 shall survive the termination of
            this Agreement.

     (d)    If Spectra fails to pay Sanchez any amounts due under this Section
            7.4, it shall also pay Sanchez' costs and expense (including fees
            and disbursements of counsel) in connection with any action,
            including the filing of a law suit or other legal action, taken to
            collect payment, together with interest on the unpaid amount as the
            U.S. prime rate of interest announced from time to time in the Wall
            Street Journal (New York Edition) from the dates such amounts were
            first due.

                               ARTICLE 8 - GENERAL

8.1         DISCLOSURE

The parties hereto shall co-ordinate the making, dissemination and content of
the initial public announcement of this Agreement. Thereafter, the parties shall
use their best efforts to notify each other of the contents of all press
releases solely relating to the Transactions or the transactions contemplated
thereby issued by such party.

8.2         ASSIGNMENT

This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors but shall not
be assignable by any party hereto, unless otherwise agreed in writing by the
other parties hereto; provided, however, Sanchez or any of the Sanchez Parties
may assign its obligations and rights hereunder to any of its Affiliates without
the consent of any party hereto.

8.3         TIME

Time shall be of the essence of this Agreement.

8.4         GOVERNING LAW; DISPUTE RESOLUTION

     (a)    This Agreement and the rights and obligations of the parties hereto
            shall be governed by and construed and interpreted in accordance
            with the Laws of the Province of Ontario and the federal Laws of
            Canada applicable therein.

     (b)    EACH OF THE SANCHEZ PARTIES, SPECTRA, JOHN MCLEOD AND THE SPECTRA
            SUBSIDIARIES HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
            PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
            PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR
            OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF
            THE TRANSACTIONS CONTEMPLATED HEREBY.

     (c)    Except as otherwise set forth in this Agreement, if any dispute
            arises under this Agreement or the Escrow Agreement that is not
            settled promptly in the ordinary course of business, the parties
            shall seek to resolve such dispute between them,

                                      -91-
<Page>

            first, by negotiating promptly with each other in good faith
            negotiations. If the parties are unable to resolve such dispute
            between them within 10 Business Days after such dispute arises (or
            such period as the parties shall otherwise agree) through these
            negotiations, then any such dispute shall be submitted to
            arbitration as set forth in subsection (d) below.

     (d)    Except as otherwise set forth in this Agreement, any dispute herein
            shall take place on a confidential basis under the auspices of the
            American Arbitration Association ("AAA"), which proceeding shall be
            conducted under the Commercial Arbitration Rules. The arbitration
            shall take place in New York, New York, in accordance with the
            following procedures:

            (i)     The parties shall attempt to agree on a single arbitrator
                    within thirty (30) days of the demand for arbitration. If
                    the parties fail to agree on a single arbitrator within the
                    thirty (30) day period, then within ten (10) further days
                    each party shall select a single arbitrator, who shall
                    together within ten (10) further days select a third
                    arbitrator (and if no such third arbitrator can be selected,
                    the AAA shall select such third arbitrator). The single
                    arbitrator, or the three arbitrators, as the case may be,
                    shall preside over the arbitration.

            (ii)    Unless otherwise agreed to by the parties, the arbitration
                    shall take place within sixty (60) days after the
                    arbitrator(s) are appointed. The arbitration hearing shall
                    be held on consecutive Business Days.

            (iii)   The parties shall be entitled to conduct discovery in
                    accordance with the Federal Rules of Civil Procedure as in
                    effect where arbitration occurs, limited to document
                    production and depositions and subject to further limitation
                    by the arbitrator(s) to secure just and efficient resolution
                    of the controversy, dispute or Claim. The arbitrator(s) are
                    empowered to issue subpoenas to compel compliance with
                    requirements for pre-hearing exchange of witness lists and
                    documents or deposition discovery, and to enforce the
                    discovery rights and obligations of the parties.

            (iv)    The arbitration shall include the presentation of evidence
                    and examination of witnesses at an oral hearing. The hearing
                    shall be conducted to preserve its privacy and to allow
                    reasonable procedural due process. Rules of evidence need
                    not be strictly followed, and the hearing shall be
                    streamlined. Documents shall be self-authenticating, subject
                    to valid objection by the opposing party. Expert reports,
                    witness biographies, depositions, and affidavits may be
                    utilized, subject to the opposing party's right to a live
                    cross-examination of the witness in person. The
                    arbitrator(s) shall control the scheduling and conduct of
                    the proceedings.

            (v)     If the amount in controversy exceeds $10,000, the decision
                    of the arbitrator(s) shall include a statement specifying in
                    reasonable detail the basis for and computation of the
                    award, if any. The award rendered by the

                                      -92-
<Page>

                    arbitrator(s) shall be final, shall not constitute a basis
                    for collateral estoppel as to any issue in any other legal
                    or arbitration proceeding, and shall not be subject to
                    vacation or modification. Judgment upon the award may be
                    entered in any court having jurisdiction.

            (vi)    No party shall be precluded hereby from securing equitable
                    remedies in courts of any jurisdiction, including temporary
                    restraining orders and preliminary injunctions, to protect
                    its rights and interests, but no party shall seek any such
                    equitable remedies as a means to avoid or stay arbitration.

            (vii)   The parties other than the party that substantially prevails
                    (the "PREVAILING PARTY") in the arbitration shall share
                    equally the arbitrator(s) fees for the arbitration. The
                    Prevailing Party shall be entitled, as a component of the
                    arbitration award, to reimbursement of its costs and
                    expenses including, without limitation, reasonable
                    attorney's fees. In the event that the arbitration award
                    fails to clarify which (if any) party has substantially
                    prevailed, then the parties agree that the arbitrator(s)
                    shall be deemed to have retained jurisdiction for purposes
                    of clarifying, upon request of any party, such determination
                    and any resulting allocation of costs, fees or expenses.

8.5         ENTIRE AGREEMENT

This Agreement, together with the Collateral Documents, sets forth the entire
agreement and understanding of the parties hereto in respect of the transactions
contemplated hereby. There are no warranties, representations, terms, conditions
or collateral agreements, expressed, implied or statutory, among the parties
hereto other than as expressly set forth herein or therein.

8.6         WAIVER

No modification of, or amendment to this Agreement shall be valid or binding
unless set forth in writing and duly executed by the parties hereto and no
waiver of any breach of any term or provision of this Agreement shall be
effective or binding unless made in writing and signed by the party purporting
to give the same and, unless otherwise provided, shall be limited to the
specific breach waived and any waiver by Sanchez or Spectra of a breach by the
other shall not in itself be deemed to be or constitute a waiver of a similar or
other breach by the other.

8.7         NOTICES

All notices and other communications hereunder shall be in writing and shall be
given and shall be deemed to have been duly given at the time of receipt, if
delivered in person or sent by facsimile transmission on a Business Day at the
place of receipt (or, if given on a non-Business Day at the place of receipt,
shall be deemed to have been duly given on the next succeeding Business Day at
such place) to the parties as follows:

                                      -93-
<Page>

     If to Sanchez at:

     Sanchez Computer Associates, Inc.
     40 Valley Stream Parkway
     Malvern, Pennsylvania, USA
     19355
     Fax:  610-695-9283

     Attention:  Joseph F. Waterman

     with a copy to:

     PEPPER HAMILTON LLP
     3000 Two Logan Square
     18th and Arch Streets
     Philadelphia, PA 19103-2799

     Fax:  215-981-4750
     Attention:  Barry M. Abelson, Esquire

     If to Spectra at:

     Spectra Securities Software Inc.:
     150 York Street
     Suite 700
     Toronto, Ontario. Canada
     M5H 3S5
     Fax:  (416) 368-3315
     Attention:  John McLeod

     with a copy to McCarthy Tetrault LLP:

     Suite 4700
     Toronto Dominion Bank Tower
     Toronto, Ontario, Canada
     M5K 1E6
     Fax: (416) 601-8250
     Attention: Ronald Schwass

     If to the McLeod Parties, at:

     c/o John C. McLeod
     66 King George's Road
     Etobicoke, Ontario M8Y1L9

or to such other address as a party may have furnished to the others in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

                                      -94-
<Page>

8.8         INVALIDITY

If any provision of this Agreement is determined to be invalid or unenforceable
by a court of competent jurisdiction that provision shall be deemed to be
severed herefrom, and the remaining provisions of this Agreement shall not be
affected thereby and shall remain valid and enforceable.

8.9         COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed to
be an original, but all of which together shall constitute one and the same
document.

8.10        FURTHER ASSURANCES

Each of the parties hereto shall, from time to time, execute and deliver all
such further documents and instruments and do all acts and things as any other
party may, either before or after the Effective Date, which may reasonably be
required to effectively carry out the meaning and intent of this Agreement.

8.11        PRESS RELEASES AND PUBLIC ANNOUNCEMENTS

No party shall issue any press release or make any public announcement relating
to the subject matter of this Agreement without the prior written approval of
the other parties; PROVIDED, HOWEVER, that any party may make any public
disclosure it believes in good faith is required by Applicable Law or any
listing or trading agreement concerning its publicly-traded securities (in which
case the disclosing party will use all reasonable efforts to advise the other
parties prior to making the disclosure).

8.12        SUBSIDIARY PERFORMANCE

Sanchez hereby guarantees the performance of all covenants of Subco and Sanchez
Delaware set forth herein. Spectra hereby guarantees the performance of all
covenants of its Subsidiaries set forth herein.

                                      -95-
<Page>

     IN WITNESS WHEREOF this Agreement has been executed by the parties hereto
on the date first written above.

                                              SANCHEZ COMPUTER ASSOCIATES, INC.

                                              By: /s/ Joseph F. Waterman
                                                  ------------------------------

                                              Title: President
                                                     ---------------------------

                                              SANCHEZ SOFTWARE, LTD.

                                              By: /s/ Joseph F. Waterman
                                                  ------------------------------
                                              Title: President
                                                     --------------------------

                                              1518356 ONTARIO LIMITED

                                              By: /s/ Joseph F. Waterman
                                                  ------------------------------
                                              Title: President
                                                     ---------------------------

                                              SPECTRA SECURITIES SOFTWARE INC.

                                              By: /s/ John C. McLeod
                                                  ------------------------------

                                              Title: President
                                                     ---------------------------

/s/ John H. Teaford                           /s/ John C. McLeod
-----------------------                       --------------------------

Witness                                       JOHN C. MCLEOD

                                              THE 1998 MCLEOD FAMILY TRUST, BY A
                                              TRUSTEE JOHN C. MCLEOD

                                              By: /s/ John C. McLeod
                                                  ------------------------------
                                                  John C. McLeod, Trustee

                                      -96-

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