Document:

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                        EXECUTIVE EMPLOYMENT AGREEMENT

                  THIS EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is
made effective as of the 15th day of October, 2001 by and between Israel Adan,
a resident of New York (the "Employee"), and Orbit/FR, Inc., a Delaware
corporation (the "Company").

                  WHEREAS, the Company desires to employ Employee, and
Employee desires to be employed by the Company, upon the terms and conditions
hereinafter set forth.

                  NOW, THEREFORE, in consideration of the mutual covenants and
obligations contained herein, and intending to be legally bound, the parties,
subject to the terms and conditions set forth herein, agree as follows:

1.       Employment and Term. The Company hereby employs Employee, and
Employee hereby accepts employment with the Company, as President and CEO (the
"Position") for a period (the "Term") commencing on the date hereof and
continuing until terminated pursuant to the provisions of Section 8 hereof.

2.       Duties.  During the Term, Employee shall serve the Company faithfully
and to the best of his ability and shall devote his full time, attention,
skill and efforts to the performance of the duties required by or appropriate
for the Position.   Employee will be reporting directly to the company's
Chairman, Vice Chairman and Board of Directors.

3.       Other Business Activities. During the Term, Employee will not,
without the prior written consent of the Board of Directors of the Company in
its sole discretion, directly or indirectly engage in any other business
activities or pursuits whatsoever, except activities in connection with
charitable or civic activities, personal investments and serving as an
executor, trustee or in other similar fiduciary capacity; provided, that such
activities do not interfere with his performance of his responsibilities and
obligations pursuant to this Agreement.

4.       Compensation.  The Company shall pay Employee, and Employee hereby
agrees to accept, as compensation for all services rendered hereunder and for
Employee's covenants provided for in Sections 5, 6 and 7 hereof, the
compensation set forth in this Section 4.

         4.1.     Base Salary. The Company shall pay Employee a base salary at
the annual rate of One Hundred Fifty thousand dollars ($150,000) (the "Base
Salary"). The Base Salary shall be inclusive of all applicable income and
other taxes and charges that are required by law to be withheld by the
Company, are requested to be withheld by Employee, and shall be withheld and
paid in accordance with the Company's normal payroll practice for its
similarly situated employees from time to time in effect. Upon commencement of
Employee's employment hereunder, Employee shall be entitled to a special
payment in an amount equal $6,667.

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         4.2.     Bonus Program. Employee may be entitle to an annual bonus
(the "Bonus") based upon the achievement (during any calendar year) of such
written individual and corporate annual objectives (the "Objectives") as the
Board of Directors may from time to time establish. Employee acknowledges that
such Objectives may be amended from time to time without Employee's consent.
Employee further acknowledges that any Bonus shall be deemed earned on the
last day of the applicable calendar year and shall be payable to Employee by
the end of the first quarter of the following calendar year, except as
expressly otherwise set forth in Section 8 hereof in connection with a
pro-rata payment upon termination.

         4.3.     Fringe Benefits. Employee shall be entitled to participate
in any health, life and disability insurance, 401(k) and other fringe benefit
programs (collectively the "Benefits") of the Company to the extent and on
substantially similar terms and conditions as are accorded to other executives
of the Company and its affiliates (the "Orbit Group"). Provided, that Employee
may, subject to applicable laws, waive in writing participation in the
Company's health insurance plan and receive, in lieu thereof, an additional
compensation at an annual rate of $10,000 (inclusive of all applicable income
and other taxes) payable ratably along with each Base Salary payment.

         4.4.     Reimbursement of Expenses. Employee shall be reimbursed for
all normal items of travel and entertainment and miscellaneous expenses
reasonably incurred by him on behalf of Company, provided that such expenses
are documented and submitted to the Company all in accordance with the
reimbursement policies of the Company as in effect from time to time.

         4.5.     Stock Options. Subject to approval by the Company's Board of
Directors, Employee shall be granted stock options (the "Options") for 60,000
shares of the Company's common stock. The Options shall vest in three (3)
equal annual installments, commencing on the first anniversary hereof, and
shall otherwise be subject to all of the terms and conditions of the Company's
Employee Stock Option Plan. Provided, that the award of the Options shall
provide for an acceleration of vesting upon a change in control (i.e. a change
of more than 50% of the beneficial ownership of the Company's capital stock).

         4.6.     Use of Company Car. The Company shall make available to the
Employee a car of a standard suitable for his position owned or leased by the
Company for the Employee's business and reasonable personal use during the
Term. The Company shall be responsible for the cost of insurance and
maintenance for the vehicle. The Employee shall be responsible for overseeing
the proper maintenance of the vehicle. Employee shall be solely responsible,
and shall indemnify the Company, for the payment of any fines, costs or
expenses incurred in connection with moving or parking violations (the
"Violations") involving the vehicle, other than Violations that occurred while
the vehicle was under the control of an employee of the Company (other than
Employee) for business purposes only.

5.       Confidentiality.

         5.1.     Employee recognizes and acknowledges that he will obtain
Proprietary Information (as hereinafter defined) of the Company and other
Orbit Group entities in the course

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of his employment as an executive employee of the Company. Employee further
recognizes and acknowledges that the Proprietary Information is a valuable,
special and unique asset of the Company and the Orbit Group. As a result,
Employee shall not, without the prior written consent of the Company, for any
reason either directly or indirectly divulge to any third-party or use for his
own benefit, or for any purpose other than the exclusive benefit of the
Company, any confidential, proprietary, business and technical information or
trade secrets (the "Proprietary Information") of the Company or any other
Orbit Group entity revealed, obtained or developed in the course of his
employment with the Company. Proprietary Information shall include, but shall
not be limited to, any information relating to methods of production,
manufacture and research; computer hardware and software configurations,
computer inputs and outputs (regardless of the media on which stored or
located) and computer processing systems, techniques, designs, architecture,
and interfaces; the identities of, the relationship with, the terms of
contracts and agreements with, the needs and requirements of, and the course
of dealing with, the respective Orbit Group entities' actual and prospective
customers, contractors and suppliers; and any other materials prepared by
Employee in the course of his employment by the Company, or prepared by any
other employee or contractor of the Orbit Group for the Orbit Group's
customers, (including concepts, layouts, flow charts, specifications,
know-how, plans, sketches, blueprints, costs, business studies, business
procedures, finances, marketing data, methods, plans, personnel information,
customer and vendor credit information and any other materials that have not
been made available to the general public). Nothing contained herein shall
restrict Employee's ability to make such disclosures during the course of the
employment as may be necessary or appropriate to the effective and efficient
discharge of the duties required by or appropriate for the Position or as such
disclosures may be required by law. Furthermore, nothing contained herein
shall restrict Employee from divulging or using for his own benefit or for any
other purpose any Proprietary Information that is readily available to the
general public so long as such information did not become available to the
general public as a direct or indirect result of Employee's breach of this
Section 5. Failure by the Company (or any other Orbit Group entity) to mark
any of the Proprietary Information as confidential or proprietary shall not
affect its status as Proprietary Information under the terms of this
Agreement.

         5.2.     All right, title and interest in and to Proprietary
Information shall be and remain the sole and exclusive property of the
respective Orbit Group entity. During the Term, Employee shall not remove from
the Company's offices or premises any documents, records, notebooks, files,
correspondence, reports, memoranda or similar materials of or containing
Proprietary Information, or other materials or property of any kind belonging
to the Company unless necessary or appropriate in accordance with the duties
and responsibilities required by or appropriate for the Position and, in the
event that such materials or property are removed, all of the foregoing shall
be returned to their proper files or places of safekeeping as promptly as
possible after the removal shall serve its specific purpose. Employee shall
not make, retain, remove and/or distribute any copies of any of the foregoing
for any reason whatsoever except as may be necessary in the discharge of the
assigned duties and shall not divulge to any third person the nature of and/or
contents of any of the foregoing or of any other oral or written information
to which he may have access or with which for any reason he may become
familiar, except as disclosure shall be necessary in the performance of the
duties; and upon the termination of his

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employment with the Company, he shall return to the Company all originals and
copies of the foregoing then in the possession, whether prepared by Employee
or by others.

6.       Assignment of Developments

         6.1.     If at any time or times during Employee's employment with
the Company, he shall (either alone or with others) make, discover or reduce
to practice any invention, modification, discovery, design, development,
improvement, process, software program, work of authorship, documentation,
formula, data, technique, know-how, secret or intellectual property right
whatsoever or any interest therein (whether or not patentable or registrable
under copyright or similar statutes or subject to analogous protection)
(herein called "Developments") that (i) relates to the then current business
of the Company or any then current customer of or supplier to the Company or
any of the products or services being developed, manufactured or sold by the
Company, (ii) results from tasks assigned me by the Company or (iii) results
from any use of premises or personal property (whether tangible or intangible)
owned, leased or contracted for by the Company, such Developments and the
benefits thereof shall immediately become the sole and absolute property of
the Company and its assigns, and Employee shall promptly disclose to the
Company (or any persons designated by it) each such Development and Employee
hereby assigns any rights he may have or acquire in the Developments, and
benefits and/or rights resulting therefrom, to the Company and its assigns
without further compensation and shall communicate, without cost or delay, and
without publishing the same, all available information relating thereto (with
all necessary plans and models) to the Company.

         6.2.     Upon disclosure of each Development to the Company, Employee
will, during his employment with the Company, and at any time thereafter, at
the request and cost of the Company, sign, execute, make and do all such
deeds, documents, acts and things as the Company and its duly authorized
agents may reasonably require (i) to apply for, obtain and vest in the name of
the Company alone (unless the Company otherwise directs) letters patent,
copyrights or other analogous protection in any country throughout the world
and when so obtained or vested to renew and restore the same; and (ii) to
defend any opposition proceedings in respect of such applications and any
opposition proceedings or petitions or applications for revocation of such
letters patent, copyright or other analogous protection.

         6.3.     In the event the Company is unable, after all diligent
effort, to secure Employee's signature on any letters patent, copyright or
other analogous protection relating to a Development, whether because of
Employee's physical or mental incapacity or for any other reason whatsoever,
Employee hereby irrevocably designate and appoint the Company through its duly
authorized president as his agent and attorney-in-fact, to act for and in his
behalf and stead solely to execute and file any such application or
applications and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent, copyright or other analogous
intellectual property protection thereon with the same legal force and effect
as if executed by him.

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7.       Covenant not to Compete.

         7.1.     Employee shall not, during the Term and for a period of two
(2) years after termination hereof for any reason whatsoever (the "Restricted
Period"), do any of the following directly or indirectly without the prior
written consent of the Company in its sole discretion:

                  7.1.1.   engage or participate, directly or indirectly, in
any business activity competitive with the business of the Company or any
other Orbit Group entity (collectively the "Business") as conducted during the
Term;

                  7.1.2.   become interested (as owner, stockholder, lender,
partner, co-venturer, director, officer, employee, agent, consultant or
otherwise) in any person, firm, corporation, association or other entity
engaged in any business that is competitive with the Business as conducted
during the Term, or become interested in (as owner, stockholder, lender,
partner, co-venturer, director, officer, employee, agent, consultant or
otherwise) any portion of the business of any person, firm, corporation,
association or other entity where such portion of such business is competitive
with the Business as conducted during the Term (notwithstanding the foregoing,
Employee may hold not more than one percent (1%) of the outstanding securities
of any class of any publicly-traded securities of a company that is engaged in
activities competitive with the Business as conducted during the Term);

                  7.1.3.   solicit or call on, either directly or indirectly,
any (i) customer with whom the Company shall have dealt at any time during the
Term, or (ii) supplier with whom the Company shall have dealt at any time
during the one (1) year period immediately preceding the termination of
Employee's employment hereunder;

                  7.1.4.   influence or attempt to influence any supplier,
customer or potential customer of the Company to terminate or modify any
written or oral agreement or course of dealing with the Company; or

                  7.1.5.   influence or attempt to influence any person either
(i) to terminate or modify the employment, consulting, agency, distributorship
or other arrangement with the Company or the Orbit Group, or (ii) to employ or
retain, or arrange to have any other person or entity employ or retain, any
person who has been employed or retained by the Company or the Orbit Group as
an employee, consultant, agent or distributor of the Company or the Orbit
Group at any time during the one (1) year period immediately preceding the
termination of Employee's employment hereunder.

         7.2.     Employee acknowledges that he has carefully read and
considered the provisions of this Section 7. Employee acknowledges that the
foregoing restrictions may limit his ability to earn a livelihood in a
business similar to the Business, but he nevertheless believes that he has
received and will receive sufficient consideration and other benefits in
connection with the payment by the Company of the compensation set forth in
Section 4 to justify such restrictions, which restrictions Employee does not
believe would prevent him from earning a living in

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businesses that are not competitive with the Business and without otherwise
violating the restrictions set forth herein.

         7.3.     Any reference to the "Company" in Section 7.1 above shall
mean the Company and its subsidiaries, individually and collectively, as
appropriate in context.

8.       Early Termination.  Employee's employment hereunder may be terminated
during the Term upon the occurrence of any one of the events described in this
Section 8.  Upon termination, Employee shall be entitled only to such
compensation and benefits as described in this Section 8.

         8.1.     Termination for Disability.

                  8.1.1.   In the event of the disability of Employee such
that Employee is unable to perform the duties and responsibilities hereunder
to the full extent required by this Agreement by reasons of illness, injury or
incapacity for a period of more than ninety (90) consecutive days or more than
one hundred eighty (180) days, in the aggregate, during any twenty four (24)
months period, Employee's employment hereunder may be terminated by the
Company by written notice to Employee.

                  8.1.2.   In the event of a termination of Employee's
employment hereunder pursuant to Section 8.1.1, Employee shall be entitled to
receive all accrued but unpaid (as of the effective date of such termination)
Base Salary, Benefits and a pro-rata amount (as determined in good faith by
the Company's Board of Directors) of the Bonus applicable to the then calendar
year. Except as specifically set forth in this Section 8.1, the Company shall
have no liability or obligation to Employee hereunder by reason of such
termination, except that Employee shall be entitled to receive any payment
prescribed under any disability benefits plan in which he is a participant as
an employee of the Company, and to exercise any rights afforded under any
other benefit plan then in effect.

         8.2.     Termination by Death. In the event that Employee dies during
the Term, Employee's employment hereunder shall be terminated thereby and the
Company shall pay to Employee's executors, legal representatives or
administrators an amount equal to the accrued and unpaid (as of the effective
date of such termination) Base Salary, Benefits and a pro-rata amount (as
determined in good faith by the Company's Board of Directors) of the Bonus
applicable to the then calendar year. Except as specifically set forth in this
Section 8.2, the Company shall have no liability or obligation hereunder to
Employee's executors, legal representatives, administrators, heirs or assigns
(or any other person claiming under or through him by reason of Employee's
death), except that Employee's executors, legal representatives or
administrators will be entitled to receive the payment prescribed under any
death or disability benefits plan in which he is a participant as an employee
of the Company, and to exercise any rights afforded under any benefit plan
then in effect.

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         8.3.     Termination for Cause.

                  8.3.1.   The Company may terminate Employee's employment
hereunder at any time for "cause" upon written notice to Employee. For
purposes of this Agreement, "cause" shall mean:

                           8.3.1.1  any breach by Employee of any of the
covenants under Sections 5, 6 or 7 of this Agreement;

                           8.3.1.2  Employee has been grossly negligent or has
committed willful misconduct in carrying out his duties hereunder and either
continues to be grossly negligent or commit willful misconduct for a period
of, or fails to cure the results of his gross negligence or willful misconduct
within, 30 days after written notice from the Company to Employee thereof;

                           8.3.1.3  conduct of Employee involving any type of
insubordination, or disloyalty to the Company, or willful misconduct with
respect to the Company, including without limitation fraud, embezzlement,
theft or proven dishonesty in the course of the employment;

                           8.3.1.4  conviction of a felony or other criminal act
punishable by more than one (1) year in prison; and

                           8.3.1.5  commission by Employee of an intentional
tort or an act involving moral turpitude or constituting fraud.

                  8.3.2.   In the event of a termination of Employee's
employment hereunder pursuant to Section 8.3 Employee shall be entitled to
receive all accrued but unpaid (as of the effective date of such termination)
Base Salary and Benefits. All Base Salary and Benefits shall cease at the time
of such termination. Employee shall not be entitled to receive any Bonus
(whether or not then earned) for (i) the then calendar year, and (ii) the
calendar year in which the event giving rise to the termination for "cause"
occurred. Except as specifically set forth in this Section 8.3, the Company
shall have no liability or obligation to Employee hereunder by reason of such
termination.

         8.4.     Termination Without Cause.

                  8.4.1.   The Company may terminate Employee's employment
hereunder at any time, for any reason whatsoever, with or without cause,
effective upon the date designated by the Company upon ninety (90) days (the
"Notice Period") prior written notice to Employee.

                  8.4.2.   In the event of a termination of Employee's
employment hereunder pursuant to Section 8.4, Employee shall be entitled to
receive all accrued but unpaid (as of the effective date of such termination)
Base Salary, Benefits and a pro-rata amount (as determined in good faith by
the Company's Board of Directors) of the Bonus applicable to the then calendar
year. Employee shall further be deemed to have a vested interest in such
portion of the Options

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equal to the number of months from the date hereof until the effective date of
termination of his employment hereunder, divided by 36. Except as specifically
set forth in this Section 8.4, the Company shall have no liability or
obligation to Employee hereunder by reason of such termination.

                  8.4.3.   During the Notice Period, Employee (i) shall not be
entitled to retain the Position, and (ii) shall cooperate in good faith with
the Company in transitioning the duties of the Position to one or more
successors as determined by the Board of Directors or the Chairman.

         8.5.     Termination By Employee.

                  8.5.1.   Employee may terminate Employee's employment
hereunder at any time for any reason effective upon the date designated by
Employee in written notice of the termination of the employment hereunder
pursuant to this Section 8.5; provided that, such date shall be at least sixty
(60) days after the date of such notice.

                  8.5.2.   In the event of a termination of Employee's
employment hereunder pursuant to Section 8.5 hereof, Employee shall be
entitled to receive all accrued but unpaid (as of the effective date of such
termination) Base Salary and Benefits. All Base Salary and Benefits shall
cease at the time of such termination, subject to the terms of any benefit
plan then in force and applicable to Employee. Employee shall not be entitled
to receive any Bonus on account of the then current year. Except as
specifically set forth in this Section 8.5, the Company shall have no
liability or obligation to Employee hereunder by reason of such termination.

9.       Representations, Warranties and Covenants of Employee.

         9.1.     Employee represents and warrants to the Company that:

                  9.1.1.   There are no restrictions, agreements or
understandings whatsoever to which Employee is a party which would prevent or
make unlawful Employee's execution of this Agreement or Employee's employment
hereunder, or which is or would be inconsistent or in conflict with this
Agreement or Employee's employment hereunder, or would prevent, limit or
impair in any way the performance by Employee of the obligations hereunder;

                  9.1.2.   Employee has disclosed to the Company all
restraints, confidentiality commitments or other employment restrictions that
he has with any other employer, person or entity; and

10.      Survival of Provisions.  The provisions of this Agreement set forth
in Sections 5, 6, 7, 9, 10, 16 and 19 hereof shall survive the termination of
Employee's employment hereunder for any reason whatsoever.

11.      Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the Company and Employee and their respective successors,
executors, administrators, heirs and/or permitted assigns; provided that
neither Employee nor the Company may make any

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assignments of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other parties hereto;
except that, without such consent, the Company may assign this Agreement to
any successor to all or substantially all of its assets and business by means
of liquidation, dissolution, merger, consolidation, transfer of assets, or
otherwise, provided that such successor assumes in writing all of the
obligations of the Company under this Agreement.

12.      Notice. Any notice hereunder by either party shall be given by
personal delivery or by sending such notice by certified mail, return-receipt
requested, or telecopied, addressed or telecopied, as the case may be, to the
other party at its address set forth below or at such other address designated
by notice in the manner provided in this section. Such notice shall be deemed
to have been received upon the date of actual delivery if personally delivered
or, in the case of mailing, two (2) days after deposit with the U.S. mail, or,
in the case of facsimile transmission, when confirmed by the facsimile machine
report.

                  If to Employee:

                           Israel Adan
                           149 Finucane Pl.
                           Woodmere,  NY 11598

                  If to the Company:

                           Orbit/FR, Inc.
                           Att: Chairman
                           506 Prudential Road
                           Horsham, PA 19047

                  With a copy to:

                           Benjamin Strauss, Esquire
                           Pepper Hamilton LLP
                           1201 Market Street
                           Suite 1600
                           Wilmington, DE 19801

13.      Entire Agreement; Amendments. This Agreement contains the entire
agreement and understanding of the parties hereto relating to the subject
matter hereof, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature between the parties
hereto relating to the employment of Employee with the Company. This Agreement
may not be changed or modified, except by an agreement in writing signed by
each of the parties hereto.

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14.      Waiver.  The waiver of the breach of any term or provision of this
Agreement shall not operate as or be construed to be a waiver of any other or
subsequent breach of this Agreement.

15.      Governing Law.  This Agreement shall be construed and enforced in
accordance with the substantive laws of the State of Delaware, without regard
to the principles of conflicts of laws of any jurisdiction.

16.      Invalidity. If any provision of this Agreement shall be determined to
be void, invalid, unenforceable or illegal for any reason, the validity and
enforceability of all of the remaining provisions hereof shall not be affected
thereby. If any particular provision of this Agreement shall be adjudicated to
be invalid or unenforceable, such provision shall be deemed amended to delete
therefrom the portion thus adjudicated to be invalid or unenforceable, such
amendment to apply only to the operation of such provision in the particular
jurisdiction in which such adjudication is made; provided that, if any
provision contained in this Agreement shall be adjudicated to be invalid or
unenforceable because such provision is held to be excessively broad as to
duration, geographic scope, activity or subject, such provision shall be
deemed amended by limiting and reducing it so as to be valid and enforceable
to the maximum extent compatible with the applicable laws of such
jurisdiction, such amendment only to apply with respect to the operation of
such provision in the applicable jurisdiction in which the adjudication is
made.

17.      Section Headings.  The section headings in this Agreement are for
convenience only; they form no part of this Agreement and shall not affect its
interpretation.

18.      Number of Days. In computing the number of days for purposes of this
Agreement, all days shall be counted, including Saturdays, Sundays and legal
holidays; provided that, if the final day of any time period falls on a
Saturday, Sunday or day which is a legal holiday in the location of the
principal place of business of the Company, then such final day shall be
deemed to be the next day which is not a Saturday, Sunday or legal holiday.

19.      Specific Enforcement; Extension of Period.

         19.1.    Employee acknowledges that the restrictions contained in
Sections 5, 6, and 7 hereof are reasonable and necessary to protect the
legitimate interests of the Company and its affiliates and that the Company
would not have entered into this Agreement in the absence of such
restrictions. Employee also acknowledges that any breach by him of Sections 5,
6, or 7 hereof will cause continuing and irreparable injury to the Company for
which monetary damages would not be an adequate remedy. Employee shall not, in
any action or proceeding to enforce any of the provisions of this Agreement,
assert the claim or defense that an adequate remedy at law exists. In the
event of such breach by Employee, the Company shall have the right to enforce
the provisions of Sections 5, 6, and 7 of this Agreement by seeking injunctive
or other relief in any court, and this Agreement shall not in any way limit
remedies of law or in equity otherwise available to the Company.

         19.2.    The periods of time set forth in Section 7 hereof shall not
include, and shall be deemed extended by, any time required for litigation to
enforce the relevant covenant periods,

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provided that the Company is successful on the merits in any such litigation.
The "time required for litigation" is herein defined to mean the period of
time from the earlier of Employee's first breach of such covenants or service
of process upon Employee through the expiration of all appeals related to such
litigation.

20.      Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to be one and the same instrument.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed UNDER SEAL as of the day and year first written above.

Orbit/FR, Inc.                                    Israel Adan

By:                      [SEAL]                                         [SEAL]
   ----------------------                         ----------------------
   Zeev Stein,  Chairman

                                     -11-================================================================================

                            ASSET PURCHASE AGREEMENT

                          DATED AS OF NOVEMBER 15, 2001

                                      AMONG

                              ALLEGRA HOLDINGS LLC,
                      A MICHIGAN LIMITED LIABILITY COMPANY,

                               INSTY-PRINTS, INC.,
                             A MINNESOTA CORPORATION

                                       AND

                                   IPI, INC.,
                             A MINNESOTA CORPORATION

================================================================================

<PAGE>

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT"), dated as of November
15, 2001 (the "SIGNING DATE"), is made by and among INSTY-PRINTS, INC., a
Minnesota corporation ("INSTY"), IPI, INC., a Minnesota corporation ("IPI"), and
ALLEGRA HOLDINGS LLC, a Michigan limited liability company ("BUYER"). (Insty and
IPI are sometimes referred to herein individually as a "SELLER" and together as
"SELLERS".)

                                R E C I T A L S:
                                - - - - - - - -

         WHEREAS, Insty, a wholly-owned subsidiary of IPI, is engaged in the
business of franchising printing centers under the trade name of
"Insty-Prints(R)" (the "BUSINESS");

         WHEREAS, IPI is the sole shareholder of Insty and owns certain assets
in connection with the Business; and

         WHEREAS, Sellers desire to sell to Buyer, and Buyer desires to purchase
from Sellers, certain assets associated with the operation of the Business, on
the terms and conditions contained in this Agreement; and

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

                                   ARTICLE 1

                           PURCHASE AND SALE OF ASSETS

         1.1. PURCHASE AND SALE. Subject to the terms and conditions of this
Agreement, at the Closing (as defined in Section 1.6), each Seller shall sell,
transfer, convey and deliver to Buyer, and Buyer shall purchase from each
Seller, all of such Seller's right and title to and interest in the Acquired
Assets (as defined in Section 1.2), free and clear of all claims, liens,
mortgages, pledges, charges, security interests, equities and encumbrances of
any nature whatsoever (collectively "ENCUMBRANCES").

         1.2. ACQUIRED ASSETS. As used herein, as to each Seller, the term
"ACQUIRED ASSETS" shall mean all of such Seller's right, title and interest in
and to the following:

                  (a) all rights, title and interest of Seller in and to all
         franchise agreements, including any and all amendments, modifications
         or extensions thereto, entered into by and between Seller and its
         franchisees, or assigned to Seller;

                  (b) a commercially reasonable amount of unopened and undamaged
         inventory relating to the Business purchased and owned by Seller within
         ninety (90) days immediately prior to the Closing for products Seller
         has sold to franchisees or other customers within such ninety (90) day
         period (collectively, the "INVENTORY");

<PAGE>

                  (c) all accounts receivable and notes receivable, including,
         without limitation, all trade accounts receivables, notes receivables
         from customers, franchisees and all other obligations of customers
         and/or franchisees with respect to sale of goods or services, or
         amounts due under a franchise agreement or any other contract, whether
         or not evidenced by a note, including, without limitation, those listed
         on Schedule 1.2(c), as adjusted by the Final Receivables Schedule as
         hereinafter provided (all of the foregoing collectively referred to
         herein as "RECEIVABLES"); provided, however, Receivables shall exclude
         the Turnback Accounts identified on Schedule 1.3(c);

                  (d) all rights of Seller under the Enumerated Contracts (as
         defined in Section 3.7) identified on Schedule 1.2(d) (the "ASSUMED
         CONTRACTS");

                  (e) the signs, off-the-shelf office computer software and
         computer hardware for employees hired by Buyer pursuant to Section 5.4;

                  (f) all Intellectual Property (as defined in Section 3.18) and
         all rights of Seller to any Licensed Intellectual Property (as defined
         in Section 3.18);

                  (g) any claim (contractual or otherwise), recovery, refund,
         counterclaim, right to offset or other right such Seller may have with
         respect to, or which arise out of, any of the Assumed Liabilities (as
         defined in Section 1.4) or any of the Acquired Assets or the Business;

                  (h) all advertising and marketing materials and brochures
         (including all artwork related thereto), and other materials and data
         relating to the Business; and

                  (i) all warehouse equipment, racks and related movable items
         located at 8091 Wallace Road, Eden Prairie, Minnesota (the "PREMISES");

                  (j) all claims, deposits, warranties, guarantees, refunds
         primarily related to the Acquired Assets, causes of action, right of
         recovery, rights of set-off and rights of recoupement of every kind and
         nature (except relating to the payment of taxes), other than those
         relating primarily to the Excluded Assets;

                  (k) all authorization, approvals, permits, licenses, orders,
         registration, certificate, and similar rights obtained from federal,
         state, or local government or governmental agencies or other similar
         rights (collectively, "GOVERNMENT LICENSES"), but excluding any such
         permits or license that are not transferable, and all data and records
         pertaining thereto;

                  (l) all franchisee, developer and supplier and prospective
         franchisee and supplier lists, leads, sales records, and files
         (including, without limitation, all original franchise agreements,
         Uniform Franchise Offering Circular receipts and other documents
         whether in possession of Seller or Seller's attorney, brokers or other
         agents); records and files regarding Intellectual Property and all
         other books and records (including electronic records), specifications,
         designs, layouts, renderings, equipment lists, manuals, training
         materials videos, brochures, photographs, negatives, and schedules and
         other materials relating primarily to the operation of the Business;
         and

                                       2
<PAGE>

                  (m) all interests in the Insty-Prints website
         (www.instyprints.com) and any other websites of Sellers relating to the
         Business, including, without limitation, all of Seller's rights, title
         and interest in the domain name of such website(s), all links thereto
         (to the extent transferable), the contents of the website, and the
         right of ownership in such website, and all interests of a Seller in
         any other domain name registration for the Business;

                  (n) all customer deposits and prepaid items relating to the
         Business;

                  (o) all assets distributed to Insty upon dissolution of the
         National Advertising Trust Fund pursuant to the terms of the Trust
         Agreement Establishing the Insty-Prints National Advertising Trust Fund
         dated December 20, 1996 (the "TRUST AGREEMENT"); and

                  (p) the telephone numbers 952-975-6200 and 1-800-799-1000 and
         the fax number 952-975-6262, to the extent same are assignable.

         1.3. EXCLUDED ASSETS. The Acquired Assets shall not include the
following assets of each Seller (collectively, the "EXCLUDED ASSETS"), which
such Seller shall specifically retain:

                  (a) All corporate minute book, stock records and corporate
         seal of Seller;

                  (b) All cash, checks, and other marketable securities, all
         utility deposits and all negotiable instruments of Seller;

                  (c) The accounts and notes receivable listed on Schedule
         1.3(c) (the "TURNBACK ACCOUNTS");

                  (d) All of Seller's rights relating to any insurance policy or
         insurance contract maintained by Seller;

                  (e) All Employee Plans (as defined in Section 3.12);

                  (f) The sublease between IPI and Intranet Solutions, Inc.
         dated June 29, 2000 respecting the Premises;

                  (g) All tangible assets relating to the company-owned
         Insty-Print store(s) owned by Seller (the "CORPORATE STORES") and the
         rights of Sellers under that certain Purchase Agreement dated October
         5, 2001 by Insty and Rob Gathings;

                  (h) All furnishings, building improvements, phone system,
         furniture, and general office equipment, except for the items listed on
         Schedule 1.2(e);

                  (i) All employment agreements;

                  (j) Any claims for dividends or other distributions, in cash,
         property, securities or otherwise in respect of the capital stock of
         Sellers;

                                       3
<PAGE>

                  (k) Any claims (including benefits arising therefrom) which
         are related solely to liabilities of Sellers which are not Assumed
         Liabilities or which are related solely to Excluded Assets;

                  (l) Sellers' rights under this Agreement and any documents
         required to be delivered pursuant hereto;

                  (m) Income tax returns and other original income tax records
         of Sellers and all claims for refunds; and

                  (n) All of IPI's assets relating solely to its Change of Mind
         Learning Centers, Inc. franchise business.

         1.4. ASSUMPTION OF CERTAIN LIABILITIES. As partial consideration for
Sellers' sale of the Acquired Assets to Buyer and subject to the provisions of
Section 1.5 below, Buyer hereby assumes those liabilities and obligations of
each Seller that relate solely to events or conditions arising after the Closing
and arising under the Franchise Agreements (as defined in Section 3.19(a)), the
Assumed Contracts, and the trade credits and the accrued liabilities listed on
Schedule 1.4, as modified by the Final Trade Credits and Accrued Liabilities
Schedule (the "TRADE CREDITS AND ACCRUED LIABILITIES") (collectively, the
"ASSUMED LIABILITIES").

         1.5. NO ASSUMPTION OF EXCLUDED LIABILITIES. Buyer does not assume or
take subject to any liabilities or obligations of Seller whatsoever which are
not expressly provided in Section 1.4 above (the "EXCLUDED LIABILITIES").
Without limiting the generality of the foregoing, "EXCLUDED LIABILITIES"
include: (a) all liabilities and obligations of Seller relating to any of the
Excluded Assets; (b) all Taxes (defined in Section 3.5), including, without
limitation, those sales taxes, use taxes and other taxes arising in connection
with the purchase and sale of the Acquired Assets; (c) those accrued expenses
related to the operation of the Business covering the period up to the Closing
Date, except for those listed on Schedule 1.4; (d) obligations of a Seller under
any guarantees by such Seller of third-party obligations; and (e) subject to
Section 5.7, obligations of Insty or the trustees under the Trust Agreement.

         1.6. CLOSING. Consummation of the transactions this Agreement
contemplates (the "CLOSING") shall take place at the offices of Lindquist &
Vennum, P.L.L.P. in Minneapolis, Minnesota, at 11:00 a.m. Central Time on
December 28, 2001 or another date mutually agreed upon by the parties hereto,
but in no event later than January 31, 2001 (the "CLOSING DATE").

                                   ARTICLE 2

                         CONSIDERATION AND PAYMENT TERMS

         2.1. PURCHASE PRICE. The aggregate consideration to be paid to Sellers
by Buyer for the Acquired Assets and the agreement by Sellers to enter into the
Restrictive Covenant Agreement attached as EXHIBIT 7.1(f) hereto (the
"RESTRICTIVE COVENANT AGREEMENT") shall be the Purchase Price plus the Assumed
Liabilities. The Purchase Price shall equal the aggregate of the following
amounts (the "PURCHASE PRICE"):

                                       4
<PAGE>

                  (a) Four Million One Hundred Twenty-Five Thousand Dollars
         ($4,125,000), minus the aggregate amount of Trade Credits and Accrued
         Liabilities as set forth on the Final Trade Credits and Accrued
         Liability Schedule and assumed by Buyer pursuant to Section 1.4;

                  (b) An amount equal to Sellers' original acquisition cost for
         the Inventory, which shall be paid within thirty (30) days after the
         Closing Date;

                  (c) An amount equal to the "net book value" of prepaids as set
         forth on Schedule 2.1(c) hereto, as modified by the Final Prepaids
         Schedule, which shall be agreed upon by the parties at least five (5)
         days prior to the Closing and payable in immediately available funds at
         the Closing; and

                  (d) An amount determined pursuant to Section 2.2 below for the
         Receivables, which shall be payable in the manner set forth in Section
         2.2.

         2.2. RECEIVABLES. With respect to the Receivables, as set forth in
Schedule 1.2(c), as modified by the Final Receivables Schedule, Buyer and
Sellers have agreed to the following categorizations: "Current," "Settlement,"
"Special Settlements," "Workout," and "Undetermined." With respect to each
category of Receivables, Buyer will pay Sellers the following amounts for the
Receivables, less any reasonable out-of-pocket expenses incurred by Buyer in the
collection of such Receivables, in the manner set forth below:

                  (a) Current: During the one (1) year period immediately after
         the Closing, Buyer will pay Sellers, on or before the tenth (10th) day
         of each calendar month, one hundred percent (100%) of the amounts
         received by Buyer during the immediately preceding calendar month. All
         payments received by Buyer for a "Current" account will be applied to
         the most dated Receivable for such account.

                  (b) Settlements: On the tenth (10th) day after the Closing
         Date, Buyer will pay Sellers fifty percent (50%) of the "Net" amount
         agreed upon by the parties on the Schedule 1.2(c). In addition, during
         the one (1) year period immediately after the Closing, Buyer will pay
         Sellers, on or before the tenth (10th) day of each calendar month,
         seventy percent (70%) of any amounts received by Buyer in excess of the
         "Net" amount set forth in Schedule 1.2(c) during the immediately
         preceding calendar month. However, payments received by Buyer with
         respect to any account will not be applied to the "Settlement"
         Receivables of such account unless there are no outstanding invoices
         for such account at the time of payment. Any increase in the Receivable
         balance from the amount indicated on Schedule 1.2(c) will be fully
         reserved so that the "Net" will not be in excess of the amount
         indicated on the Final Receivables Schedule.

                  (c) Special Settlements: During the one (1) year period
         immediately after the Closing, Buyer will pay Sellers on or before the
         tenth (10th) day of each calendar month, one hundred percent (100%) of
         any amounts received by Buyers during the immediately preceding
         calendar month. However, payments received by Buyer with respect to any
         account will not be applied to the "Special Settlement" Receivables of
         such account unless there are no outstanding invoices for such account
         at the time of payment.

                                       5
<PAGE>

                  (d) Workouts: On the tenth (10th) day following the Closing
         Date, Buyer will pay Sellers ten percent (10%) of the "Net" amount
         agreed upon by the parties and set forth on Schedule 1.2(c) in
         immediately available funds. In addition, during the one (1) year
         period immediately after the Closing, Buyer will pay Sellers, on or
         before the fifth (5th) day of each calendar month, fifty percent (50%)
         of any amounts received by Buyer in excess of the "Net" amount set
         forth on the Schedule 1.2(c) during the immediately preceding calendar
         month. However, payments received by Buyer with respect to any account
         will not be applied to the "Workout" Receivables of such account unless
         there are no outstanding invoices for such account at the time of
         payment. Any increase in the Receivable balance from the amount
         indicated on Schedule 1.2(c) will be fully reserved so that the "Net"
         amount will not be in excess of the amount indicated on the Final
         Receivables Schedule.

                  (e) Undetermined: Buyer and Sellers will agree upon a purchase
         price for such Receivables at least five (5) days prior to the Closing.
         If the parties cannot agree upon a purchase price, these Receivables
         will be deemed Turnback Accounts.

                  (f) Accruals. Buyer acknowledges that Sellers may not know the
         amount of royalties due from each franchisee for the thirty (30) day
         period immediately preceding the Closing Date (the "Accrued Amount").
         Sellers have the right to estimate a reasonable Accrued Amount due from
         each franchisee and include it on the Final Receivables Schedule. Buyer
         will treat the Accrued Amount as a valid account receivable, subject to
         a further adjustment based on the franchisee's actual reported results,
         and will pay the Accrued Amount in accordance with the terms of
         2.2(a)-(d).

         Notwithstanding anything to the contrary contained herein, Sellers
acknowledge that (i) except for Current Receivables, the "Net" amount for each
Receivable on the Final Receivables Schedule shall not exceed the "Net" amount
for such Receivable on Schedule 1.2(c) attached hereto; (ii) the categorization
of each Receivable on the Final Receivables Schedule shall be the same as the
categorization indicated on Schedule 1.2(c) hereto; and (iii) any amounts
collected by Sellers prior to the Closing from any franchisee or creditor will
reduce the amount payable by Buyer to Sellers on the tenth (10th) day following
the Closing Date under subsections 2.2(b) and 2.2(d) above for such franchisee
or creditor.

         2.3. POST DECEMBER 31, 2001 CLOSING. In the event the Closing occurs
after December 31, 2001, the Purchase Price will be reduced by the amount of
revenues received by either Seller in connection with the Business during the
period commencing January 1, 2002 until the Closing Date, less the amount of
reasonable employee salaries and benefits (excluding the salaries and benefits
of any officers other than Robert Warmka) and reasonable out-of-pocket operating
expenses incurred by Sellers relating solely to the Business during such period
(provided that gross rent for the Premises will be $14,000 per month). Operating
expenses exclude interest and finance charges, income taxes, and non-cash items,
including, without limitation, amortization and depreciation. Any reduction in
Purchase Price under this Section will be determined by Buyer and Sellers within
fifteen (15) days after the Closing Date and such amount will offset amounts
payable by Buyer to Sellers under Section 2.2. Further, the parties agree that
in the event the Closing does not occur by December 31, 2001, all decisions made
after such date relating to all Franchise Agreements, other contracts,
commitments and communications with Franchisees, must be approved by Buyer,
which approval will not be unreasonably withheld.

                                       6
<PAGE>

         2.4. PAYMENT OF PURCHASE PRICE. Except as otherwise specified in this
Article 2, the Purchase Price shall be paid to Seller by wire transfer of same
day funds to the account set forth on Schedule 2.4 and shall be paid on the
Closing Date.

         2.5. PURCHASE PRICE ALLOCATION. The parties acknowledge and agree that
the Purchase Price shall be allocated among the Acquired Assets and the
Restrictive Covenant Agreement. Buyers will provide Sellers with the allocation
prior to the Closing Date. The Buyer and Sellers will each file, in accordance
with the Internal Revenue Code of 1986, as amended, an asset allocation
statement on Form 8594 with its federal income tax return for the tax year in
which the Closing occurs that is consistent with the allocation, and neither the
Buyers nor Sellers will file or permit the filing of any tax return on which it
takes a position that is inconsistent with the allocation without the prior
written approval of the other party.

                                   ARTICLE 3

                    REPRESENTATIONS AND WARRANTIES OF SELLERS

         Sellers, jointly and severally, represent and warrant the following to
Buyer as of the Signing Date and as of the Closing Date:

         3.1. ORGANIZATION AND STANDING. Each Seller is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Minnesota. Each Seller has all necessary corporate powers and authority to
engage in the business in which it is presently engaged (as it is presently
being conducted), to own all property now owned by it, and to lease all of the
property used by it under lease. Each Seller conducts its Business directly and
not through any subsidiary, association, joint venture, partnership or other
business entity (other than the other Seller). Schedule 3.1 contains a complete
and accurate list of the officers and directors of each Seller

         3.2. QUALIFICATION. Except as set forth on Schedule 3.2, neither Seller
has failed to qualify in any jurisdiction where such failure to so qualify would
have a material adverse effect on the Business. Schedule 3.2 identifies each
jurisdiction where each Seller is duly qualified to do business as a foreign
corporation, and such Seller is in good standing in each such jurisdiction.

         3.3. NO RESTRICTIONS; AUTHORIZATIONS; BINDING EFFECT. Neither Seller is
subject to any restriction, agreement, law, rule, regulation, ordinance, code,
writ, injunction, award, judgment or decree which would prohibit or be
materially violated by the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby. Provided that IPI's
shareholders approve of the transactions contemplated by this Agreement pursuant
to the Minnesota Business Corporation Act, each Seller has all necessary power
and authority and has taken all action necessary to execute and deliver this
Agreement and the instruments, documents and agreements to be executed and
delivered by such Seller pursuant hereto (collectively, the "SELLER'S
DOCUMENTS"), to consummate the transactions contemplated by this Agreement and
the Seller's Documents and to perform such Seller's obligations under this
Agreement and the

                                       7
<PAGE>

Seller's Documents. This Agreement and each of the Seller's Documents has been
duly executed and delivered by the applicable Seller, and constitutes a legal,
valid and binding obligation of such Seller, enforceable against such Seller in
accordance with its terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or similar laws of
general applicability relating to or limiting creditors' rights generally, now
or hereafter in effect and subject to the application of equitable principles
and the availability of equitable remedies.

         3.4. CONDITION OF ACQUIRED ASSETS. All tangible assets are being
transferred "as is," "where is," without any other warranty of any other kind or
nature, whether express or implied, including any warranty as to suitability,
durability, merchantability or fitness for a particular purpose.

         3.5. TAXES. Seller has filed with the appropriate authorities all
returns (collectively, the "TAX RETURNS") concerning income, sales, payroll, and
any other kind of taxes, including any interest, penalty or addition thereto
("TAXES"), required to be filed through the Closing Date and will timely file
any Tax Returns for all Taxes required to be filed after the Signing Date which
relate to the operation of the Business prior to the Closing Date. Seller has
paid all Taxes shown to be due by Tax Returns filed prior to the Signing Date.
Each Tax Return is true, correct and complete and prepared in accordance with
the Internal Revenue Code of 1986 and all subsequent amendments thereto or
substitutions therefor.

         3.6. TITLE. Seller has good and marketable title to all Acquired
Assets, free and clear of all Encumbrances. No items included in the Inventory
are held on consignment from others.

         3.7. CONTRACTS. Except as set forth in Schedule 3.7 hereto, and except
for the Franchise Agreements (as defined in Section 3.19(a)), there is no
contract, agreement, commitment or arrangement ("CONTRACT"), or any outstanding
unaccepted offer ("OFFER"), whether written or oral, to which a Seller is or may
be a party or by which it or any property or asset of a Seller is or may become
bound:

                  (a) which is or relates to any personal property leased or
         otherwise occupied or used by Seller in connection with the Business;

                  (b) which is or relates to an independent contractor,
         distribution, marketing, sales representative or similar agreement with
         any individual or entity providing services to Seller relating to the
         Business;

                  (c) involving any remaining or unsatisfied obligation of
         Seller under any purchase order or other agreement or commitment to
         purchase materials, supplies or goods in the nature of inventory for
         the Business ("PURCHASE ORDERS");

                  (d) evidencing supplier arrangements or agreements to purchase
         goods or services; and

                  (e) any other contracts or commitments not made in the
         ordinary course of the business in connection with the Business.

                                       8
<PAGE>

Sellers have delivered to Buyer true and correct copies of all written Contracts
and Offers set forth in Schedule 3.7 and a written summary setting forth all
material terms and conditions of each oral agreement set forth in Schedule 3.7,
all as presently in effect (collectively the "ENUMERATED CONTRACTS"). Except as
set forth on Schedule 3.7 hereto, all Enumerated Contracts are valid and binding
obligations of a Seller and the other parties thereto, and are in full force and
effect, enforceable in accordance with their respective terms, except as may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or similar laws of general applicability relating to or
limiting creditors' rights generally, now or hereafter in effect and subject to
the application of equitable principles and the availability of equitable
remedies. Except as set forth in Schedule 3.7, neither Seller nor, to Sellers'
knowledge, any other party is in default in the payment of any obligation under,
or in the performance of any material covenant or material obligation to be
performed by it pursuant to, any Enumerated Contract. The execution and delivery
of this Agreement and any documents to be delivered pursuant hereto, and
Sellers' performance of their obligations under this Agreement and such other
documents, will not conflict with or breach any of the provisions of, or
constitute a default (with or without notice or lapse of time, or both) under,
or accelerate any indebtedness due under, or give rise to any other rights or
obligations under, any Enumerated Contract.

         3.8. CONSENTS. Except as set forth on Schedule 3.8, neither Seller is
required to obtain any consents or other approvals from any governmental agency
or other person (including any lessor, customer, supplier or lender) as a result
of the transactions contemplated by this Agreement, and no such consent or other
approval is necessary or desirable in order that Buyer can conduct the Business
after the Closing Date in substantially the same manner as Seller conducted the
Business before the Closing Date (any such consent or approval is called a
"CONSENT").

         3.9. LITIGATION. Except as set forth on Schedule 3.9, neither Seller is
(a) subject to any outstanding injunction, judgment, order, decree or ruling
relating directly or indirectly to the Business, or (b) a party to or, to the
knowledge of Sellers, threatened to be made a party to, any action, suit,
proceeding, hearing, audit or investigation before any court, quasi-judicial
agency, administrative agency or arbitrator relating directly or indirectly to
the Business.

         3.10. COMPLIANCE WITH LAWS. Each Seller has materially complied with
all laws, rules, regulations, ordinances and codes applicable to the Business,
including, without limitation, those governing each Employee Plan (as defined in
Section 3.12), whether federal, state, local or foreign, and neither Seller has
received any notice alleging non-compliance with respect thereto which remains
uncured as of the date hereof.

         3.11. LICENSES AND PERMITS. Seller has obtained, and Schedule 3.11
lists, all licenses, permits and other governmental authorizations required to
conduct the Business as presently conducted. Except as disclosed on Schedule
3.11 hereto, all such licenses and permits are transferable to Buyer and will
continue to be in full force and effect in the name of Buyer from and after the
Closing. No proceeding is pending or, to the knowledge of Sellers, threatened,
to revoke or limit any such license or permit.

         3.12. EMPLOYEE BENEFITS. Except as set forth on Schedule 3.12 hereto,
Sellers do not maintain and have not established any Employee Plan or similar
arrangement which provides for

                                       9
<PAGE>

continuing benefits or coverage for any participant or any beneficiary of a
participant after such participant's termination of employment, except as may be
required by the Internal Revenue Code (the "CODE") Section 4980B or Section 601
ET SEQ. of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or under any applicable state law, and at the expense of the
participant or the beneficiary of the participant. Sellers are in material
compliance in form, administration and operation with ERISA, the Code and all
applicable laws and regulations governing each Employee Plan, and all
instruments constituting each Employee Plan. For purposes of this Agreement,
"Employee Plans" shall include any pension, retirement, savings, disability,
medical, dental, health, life, death benefit, group insurance, profit sharing,
deferred compensation, stock option, bonus, incentive, vacation pay, tuition
reimbursement, severance pay, or other employee benefit plan, trust, agreement,
contract, policy or commitment, whether any of the foregoing is funded, insured
or self-funded, written or oral, sponsored or maintained by either Seller.

         3.13. LABOR. Neither Seller is a party to or bound by any collective
bargaining agreement. Neither Seller has experienced any attempt of its
employees to organize into a labor union, association or similar organization.
Except as set forth on Schedule 3.9, no allegation, charge or complaint of age,
disability, sex, religious or race discrimination or similar charge has been
made or threatened to be made by or on behalf of any employee against either
Seller and, to Sellers' knowledge, there is no reasonable basis upon which any
such allegation, charge or complaint could be made. Schedule 3.13 contains a
complete and accurate list of the names, titles, annual compensation, commission
structure, all bonus and similar payments made or that will be made with respect
to such individual for the current fiscal year for all directors, officers and
employees of each Seller and all persons engaged by a Seller to offer and sell
franchises as an independent contractor, if any.

         3.14. ENVIRONMENTAL. Seller has no ownership interest in any real
property. As of the Closing Date: (a) To Sellers' knowledge, no hazardous
materials exist on, under or about the Premises; (b) the operation of the
Business is and has been in material compliance with all hazardous materials
laws; and (c) there are no existing or, to Sellers' knowledge, threatened,
claims, demands or actions instituted or pending in connection with the
presence, release or discharge of hazardous materials. For purposes of this
Section, "hazardous materials laws" means all federal, state and local laws
regulating the environmental condition of air, water or real property,
pollution, contamination or clean-up, and "hazardous materials" means any toxic,
radioactive or otherwise hazardous substance, any substance or material defined,
listed or identified as, or meeting the criteria for, "hazardous waste" under
the Resource Conservation and Recovery Act, 42 U.S.C. ss.ss. 6901 et seq. or any
similar local, state or federal law or any substance or material defined as a
"hazardous substance" under CERCLA.

         3.15. FINANCIAL INFORMATION. Sellers have delivered to Buyer a true and
correct copy of: (i) the audited financial statements of each Seller as at
November 30, 2000, November 30, 1999, and November 30, 1998 (including balance
sheets, profit and loss statements and statements of cash flow, together with
the notes thereto, if any); and (ii) unaudited consolidated financial statements
of IPI for the ten (10) months ended September 30, 2001 (collectively, the
"FINANCIAL STATEMENTS"). Each of the Financial Statements has been prepared in
accordance with the United States generally accepted accounting principles
applied on a consistent basis throughout the periods covered thereby and fairly
presents the financial condition (including

                                       10
<PAGE>

contingent liabilities) and results of operation of such Seller for the periods
reflected therein and any unaudited financial statements reflect all adjustments
of a normal and recurring nature, necessary for a fair statement, on a basis
consistent with the auditee's audited financial statements.

         3.16. BROKERS. Neither Seller has dealt with any broker, finder or
other person entitled to any broker's or finder's fee, commission or other
similar compensation in connection with the transactions contemplated hereby.

         3.17. BUSINESS RECORDS. No material records of accounts, franchise
records, or other business records related to the Business have been destroyed
within the last five (5) years, and there exists no such record other than those
records delivered by Sellers to Buyer at the Closing on the Closing Date (other
than the Excluded Assets).

         3.18. INTELLECTUAL PROPERTY.

                  (a) Schedule 3.18(a) correctly identifies (where applicable,
         by owner, place of registration, application number and registration or
         application dates) all issued domestic and foreign patents, patent
         applications, patent applications in process, trademarks, trademark
         registrations, trademark registrations applications, service marks,
         service mark registration applications, service mark registrations,
         copyrights, copyright registrations, copyright registration
         applications, license agreements, logos, trade names and slogans owned
         by each Seller and which are presently used in and/or necessary to
         conduct the Business, including, without limitation, the mark
         "Insty-Prints" (the foregoing, along with know-how, proprietary
         information and trade secrets owned by Sellers presently used in and/or
         necessary to conduct the Business are hereinafter referred to as the
         "INTELLECTUAL PROPERTY"). Schedule 3.18 correctly identifies all issued
         patents, patent applications pending, patent applications in process,
         trademarks, trademark registrations, trademark registration
         applications, service marks, service mark registrations, service mark
         registration applications, copyrights, copyright registrations,
         copyright registration applications, licenses, rights, logos, trade
         names, slogans, know-how and trade secrets that are currently expressly
         licensed to a Seller ("LICENSED INTELLECTUAL PROPERTY"). Except
         pursuant to the Franchise Agreements, neither Seller has granted any
         license to any person with respect to any Intellectual Property or
         Licensed Intellectual Property. Except as set forth in Schedule 3.18,
         the agreements and/or arrangements for the Licensed Intellectual
         Property are in full force and effect and are free and clear of all
         encumbrances and no material default by Seller exists thereunder.

                  (b) There are no interference, opposition or cancellation
         proceedings or infringement suits pending, or to Sellers' knowledge,
         threatened, with respect to any Intellectual Property or Licensed
         Intellectual Property. Neither Seller has received any notice of any
         infringement, misappropriation or violation by any Seller of any
         intellectual property rights of any third party. To Sellers' knowledge,
         neither Seller has infringed, misappropriated or otherwise violated any
         such intellectual property rights. Neither Seller has received any
         notice of any claim by any third party contesting the validity of any
         Intellectual Property or Licensed Intellectual Property. To Sellers'
         knowledge, no claims by any third party contesting the validity of any
         Intellectual Property or Licensed Intellectual Property is threatened.

                                       11
<PAGE>

         3.19. FRANCHISE MATTERS.

                  (a) Attached as Schedule 3.19(a) is a true, correct and
         complete list of the only franchise agreements, master agreements and
         development agreements, to which either Seller is a party in connection
         with the Business (collectively, the "FRANCHISE AGREEMENTS"). True,
         correct and complete copies of the Franchise Agreements have been made
         available to Buyer. Schedule 3.19(a) includes with respect to each of
         Insty-Prints business (the "FRANCHISED BUSINESS"): (i) the date and or
         agreement number or other identifier of the Franchise Agreement
         governing the Franchised Business; (ii) the name of the franchisee, the
         address of the Franchised Business; the term commencement and
         termination date of each Franchise Agreement; and (iii) the names of
         each individual or entity that has an ownership or beneficial interest
         in or to each of the Franchised Businesses or the franchises.

                  (b) Neither Seller has directly or indirectly offered or sold
         any franchises or business opportunities other than for (a) the
         Insty-Prints franchise system and (b) the Change of Mind Learning
         franchise system.

                  (c) Schedule 3.19(a) also contains a list of rights of first
         refusal, development rights or similar rights granted to franchisees.

                  (d) Except as attached as Schedule 3.19(d), there are no
         outstanding, pending, or promised applications to enter into any
         Franchise Agreements.

                  (e) Seller has entered into, or acquired rights, title and
         interest in, written Franchise Agreements relating to the franchising
         of the Franchised Business with all of its Franchisees (as defined in
         3.19(f)), and each of the Franchise Agreements is valid, binding and
         enforceable in accordance with its terms except as enforcement may be
         limited by applicable franchise relationship laws, bankruptcy,
         insolvency, reorganization, moratorium and other laws affecting
         enforcement of creditors rights generally and, except as the
         availability of equitable remedies, may be limited by applicable law;
         provided that for the purposes of this subsection 3.19(e), Sellers
         assume due execution and delivery of a Franchise Agreement by any
         franchisee which is a business entity.

                  (f) Except as set forth on Schedule 3.19(f), all franchise
         agreements which have been entered into by Insty with its current
         franchisees or acquired by Insty (the "FRANCHISEES") have been legally
         and validly offered and sold in compliance with all applicable laws and
         regulations in effect at the time of offer, sale, execution of such
         Franchise Agreements. Schedule 3.19(f) includes a description of the
         facts that relate to the cause of any invalid or non-compliant offer or
         sale. Except as set forth on Schedule 3.19(f), all franchise agreements
         which have been terminated by Insty since January 1, 1996 have been
         legally and validly terminated in compliance with all applicable laws
         and regulations in effect at the time of the termination of such
         franchise agreement. The consummation of the transactions contemplated
         by this Agreement should not cause the termination of any Franchise
         Agreement, nor should it affect the binding nature or enforceability of
         any Franchise Agreement.

                                       12
<PAGE>

                  (g) Neither Seller has entered into any Franchise Agreements
         other than those which are reflected in written and signed documents.
         Unless otherwise set forth on a Schedule pursuant to this Section 3.19,
         there are no promises, understandings, commitments or other forms of
         undertakings which are contrary or in addition to such written
         Franchise Agreements. Except as provided in Schedule 3.19(g), neither
         Seller has entered into or endeavored to enter into any agreements,
         promises or undertakings with Franchisees to reduce royalty payments or
         other fees under the Franchise Agreement.

                  (h) Except as set forth on Schedule 3.19(h), Insty currently
         has valid registrations for offering and selling franchises in effect
         in each state requiring such registrations, and has valid exemptions
         where required in each state having business opportunities laws.
         Schedule 3.19(h) includes a chart of all jurisdictions in which Insty
         has valid registrations or exemptions, and indicates all lapse periods,
         if any.

                  (i) Except as set forth on Schedule 3.19(h) and Schedule
         3.19(f), Insty is in material compliance with, and has been at all
         times in material compliance with, all laws, regulations, rules,
         consents, decrees or orders of all state, federal or foreign
         governmental authorities or regulatory agencies applicable to the
         offer, sale or regulation of franchises or its franchising activities.

                  (j) Except as set forth on Schedule 3.19(j), Seller has
         delivered to Buyer, or made available for Buyer's review a true,
         correct and complete copy of each form of Uniform Franchise Offering
         Circular ("UFOC") used or currently being used by Insty. All UFOC's
         used by Insty in the offer or sale of its franchises comply in all
         material respects with all applicable federal and state laws and
         regulations pertaining to the offer or sale of franchises, including,
         without limitation, the Federal Trade Commission's Disclosure Rule
         entitled "Disclosure Requirements and Prohibitions Concerning
         Franchising and Business Opportunity Ventures," 16 C.F.R.ss.436, ET
         SEQ., and do not contain any untrue statement of fact or omit - to
         state a material fact required to be stated in the UFOC or which would
         be necessary to make any statement in the UFOC, in light of the
         circumstances under which they were made, not misleading.

                  (k) Except as set forth on Schedule 3.19(k), all agreements
         and understandings between Insty and the Franchisees with regard to the
         Insty Prints National Advertising Trust Fund are set forth in the
         Franchise Agreements.

                  (l) Except as set forth on Schedule 3.19(l), neither Seller
         has received notice of any proceeding, investigation or inquiry by any
         state or federal regulatory agency in which the franchising activities
         of Insty is or may be involved, other than comment letters, requests
         for information and other routine inquiries, and there are no facts
         which are likely to lead to any such proceeding, investigation or
         inquiry. Sellers have provided Buyer access to all such comment
         letters, requests for information and routine inquiries.

                                       13
<PAGE>

                  (m) Except as set forth on Schedule 3.19(m), neither Seller
         has received notice of any pending claims, and there are no threatened
         claims, by any Franchisees or prospective franchisee against either
         Seller relating to any Franchise Agreement or Insty's franchising
         activities. Except as set forth in Schedule 3.19(m), to the knowledge
         of Sellers, there are no facts relating to the Franchise Agreements or
         the franchising activities of Insty which are reasonably likely to lead
         to any claim against Sellers or its affiliates.

                  (n) Sellers do not own, lease, operate or manage any of the
         Franchised Businesses.

                  (o) Schedule 3.19(o) includes a true, correct and complete
         list identifying each of Seller's "recommended" or designated suppliers
         of goods or services to the Franchised Business.

                  (p) To the knowledge of Sellers, all Franchised Businesses
         that have had their franchise agreements terminated by reason of the
         expiration of the term thereof or otherwise (the "TERMINATED STORES")
         are no longer operated as Insty-Prints businesses (unless sold to other
         Franchisees). Except as set forth on Schedule 3.19(p), to the knowledge
         of Sellers, the operators of the Terminated Stores (i) have ceased to
         use any Intellectual Property and (ii) have made all changes,
         modifications or alternations necessary to eliminate any interior and
         exterior design features, decor items, signage and other trade dress
         items associated with the Franchised Business.

                  (q) Schedule 3.19(q) contains a correct and complete list of
         all outstanding promissory notes made by a Franchisee to a Seller, as
         modified by the Final Promissory Notes Schedule (as defined in Section
         7.2(c)). Schedule 3.19(q) also contains a correct and complete list of
         all Uniform Commercial Code financing statements filed by a Seller
         evidencing such Seller's security interest in the assets of a
         Franchisee or a Franchised Business (the "FINANCING STATEMENTS").

         3.20. NATIONAL ADVERTISING TRUST FUND.

                  (a) Schedule 3.20(a) contains a true, correct and complete
         list of all accounts used by or in connection with the National
         Advertising Trust Fund, as referenced in the Franchise Agreements and
         governed by the Trust Agreement (collectively, the "TRUST FUND
         ACCOUNT"), in which funds have been deposited. All assets of the
         National Advertising Trust Fund are, as of the date of this Agreement,
         and will be, as of the Closing Date, deposited in the Trust Fund
         Accounts. No monies, other than Franchisees' contributions to the
         National Advertising Trust Fund and supplier rebates, marketing and
         advertising allowances, if any, have been deposited in the Trust Fund
         Account.

                  (b) All contributions to the National Advertising Trust Fund
         made by Franchisees, suppliers or any other person or entity have been
         deposited in the Trust Fund Account and used solely for purposes of
         marketing and advertising the Franchised Businesses, the Corporate
         Stores, or the Insty-Prints system, on behalf of, and for the benefit
         of, all of the Franchised Business and the Corporate Stores, or as
         otherwise provided in the Franchise Agreement or governing documents of
         the National Advertising Trust Fund.

                                       14
<PAGE>

                  (c) Sellers have neither possession of, nor control over, any
         other funds contributed by Franchisees, suppliers or any other person
         or entity for advertising purposes (national or regional), except for
         the trustees' control over the funds in the Trust Fund Account. Except
         as provided in Schedule 3.20(a), Sellers have not collected and are not
         currently holding any fees designated for use in any advertising
         program whether related to the National Advertising Trust Fund or
         otherwise.

                  (d) Insty and the trustees of the National Advertising Trust
         Fund who are listed on Schedule 3.20 (d) (the "TRUSTEES") have operated
         and administered the National Advertising Trust Fund in material
         compliance with laws, rules and regulations applicable to the operation
         of the National Advertising Trust Fund and in accordance with the
         Franchise Agreements, trust fund governing documents, and their
         fiduciary and legal responsibilities, if any, established in any
         governing documents of the National Advertising Trust Fund and in any
         other agreements or understandings entered into with Franchisees,
         suppliers, vendors or others in connection with the National
         Advertising Trust Fund. As of the Closing Date, the National
         Advertising Trust Fund has no material liabilities or obligations
         (other than trade payables and subject to Section 5.7, obligations to
         franchisees) of any nature, whether accrued, absolute, contingent or
         otherwise, including, without limitation, tax liabilities. To Sellers'
         knowledge, there exists no basis for the assertion against the National
         Advertising Trust Fund, as of the Signing Date or as of the Closing
         Date, of any material liability of any nature or in any amount.

                  (e) Attached as EXHIBIT 3.20(e) are true, correct and complete
         copies of the governing documents of the National Advertising Trust
         Fund.

         3.21. GUARANTEES. Except as disclosed in Schedule 3.21 hereto, neither
Seller is a guarantor or indemnitor or otherwise liable for or in respect of any
indebtedness of any person except as an endorser of checks received by it and
deposited in the ordinary course of business.

         3.22. DISCLOSURE. No representation or warranty of Sellers made
hereunder or in the Schedules or in any certificate, statement or other document
delivered by or on behalf of either Seller contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained herein or therein not misleading. Except as expressly set
forth in this Agreement and the Schedules and, except as may be a matter of
general public knowledge, neither Seller has any knowledge of any facts which
will or may reasonably be expected to have any material adverse effect on the
Business or any of the Acquired Assets.

                                   ARTICLE 4

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants the following to Sellers as of the
Signing Date and as of the Closing Date:

                                       15
<PAGE>

         4.1. ORGANIZATION AND STANDING. Buyer is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Michigan.

         4.2. NO RESTRICTIONS; AUTHORIZATIONS; BINDING EFFECT. Buyer is not
subject to any restriction, agreement, law, rule, regulation, ordinance, code,
writ, injunction, award, judgment or decree which would prohibit or be
materially violated by the execution and delivery hereof or the consummation of
the transactions contemplated hereby. Buyer has all necessary power and
authority and has taken all action necessary to execute and deliver this
Agreement and the instruments, documents and agreements to be executed and
delivered by Buyer pursuant hereto (collectively, the "BUYER'S DOCUMENTS"), to
consummate the transactions contemplated by this Agreement and the Buyer's
Documents and to perform Buyer's obligations under this Agreement and the
Buyer's Documents. This Agreement and each of the Buyer's Documents has been
duly executed and delivered by Buyer and constitutes a legal, valid and binding
obligation of Buyer, enforceable against Buyer in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or similar laws of general applicability
relating to or limiting creditors' rights generally, now or hereafter in effect
and subject to the application of equitable principles and the availability of
equitable remedies.

         4.3. BROKERS. Buyer has not dealt with any broker, finder or other
person entitled to any broker's or finder's fee, commission or other similar
compensation in connection with the transactions contemplated hereby.

         4.4. DISCLOSURE. No representation or warranty of Buyer made hereunder
or in the Schedules or in any certificate, statement or other document delivered
by or on behalf of Buyer contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
contained herein or therein not misleading.

                                   ARTICLE 5

                         COVENANTS OF SELLERS AND BUYER

         5.1. OPERATION OF THE BUSINESS. Between the Signing Date and the
Closing Date, Sellers will conduct the Business only in the ordinary course of
business and operate the Business in strict compliance with the Franchise
Agreements, including, without limitation, by: (i) implementing and committing
to implement all marketing, advertising and promotional programs for the
Business consistent with past practice; (ii) principal officers and employees
continuing to work the same or substantially the same number of hours in
operating the Business as such officer or employee has worked in the past while
conducting business in the ordinary course; and (iii) maintaining the same level
of employees; provided, however, Sellers will not implement any new policies,
training programs, or marketing programs respecting the Business without prior
written consent of Buyer. As used herein actions taken in the "ordinary course
of business" shall mean that such action is consistent with the past practices
of Sellers and is taken in the ordinary course of the normal day-to-day
operations of the Business.

         5.2. LIABILITIES. From and after the Closing Date, Buyer shall pay and
discharge when due all of the Assumed Liabilities. Sellers, prior to and after
the Closing, shall be solely responsible for the payment and performance, when
due, of any liability or obligation of Sellers for any debt, obligation or
liability of either Seller, whenever arising, which is not an Assumed Liability.

                                       16
<PAGE>

         5.3. CONSENTS. Prior to the Closing, Sellers shall have obtained (and
shall have delivered to Buyer copies of) all Consents as set forth on Schedule
3.8.

         5.4. EMPLOYEES.

                  (a) Sellers shall solely be responsible for all severance,
         retirement, welfare, vacation, bonus programs or other benefits, if
         any, payable to employees of Sellers under all Employee Plans of either
         Seller, any oral or written agreement entered into by either Seller on
         or before or after the Closing Date and any promise made by either
         Seller to any of its employees on, before or after the Closing Date.

                  (b) Sellers agree not to terminate, without prior written
         consent of Buyer, any of Sellers' employees for a period of sixty (60)
         days following the Closing Date (the "Employee Period"); provided that
         Sellers may terminate any employee for good cause.

                  (c) Sellers will make available to Buyer the services of any
         employees of Sellers that Buyer, in its sole discretion, determines to
         be necessary for the Business, unless (i) the employee terminates his
         or her employment with Seller prior to the expiration of the Employee
         Period, (ii) Buyer hires any such employee as its employee, (iii) Buyer
         determines that any such employee is no longer necessary for its
         operations, or (iv) Sellers terminate such employee for good cause, but
         with prior written notice to Buyer.

                  (d) In consideration for the services provided by Sellers'
         employees, Buyer will pay Sellers for each employee who performs
         services for Buyer, such employee's Employment Rate, as adjusted to
         reflect the proportion of such employee's working hours spent in the
         service of Buyer. "Employment Rate" shall mean an amount equal to such
         employee's base salary and the cost of such employee's benefits under
         the Sellers' Employee Plans as set forth on Schedule 3.13. Nothing
         contained herein shall restrict Sellers in any way with respect to
         those employees whose services are not requested by Buyer or with
         respect to employees not hired by Buyer upon the expiration of the
         Employee Period. Buyer and Sellers acknowledge and agree that, unless
         Buyer expressly makes an offer in writing to an employee for such
         employee to become an employee of Buyer, and such employee accepts
         Buyer's offer of employment, no employee of a Seller will be deemed an
         employee of Buyer for any reason.

         5.5. RECEIVABLES.

                  (a) Within five (5) business days after the Closing, Sellers
         will deliver to Buyer an updated schedule of the Receivables which
         shall be dated as of the Closing Date (the "Final Receivables
         Schedule").

                                       17
<PAGE>

                  (b) From the Signing Date until the Closing, Sellers may agree
         to any settlement on any Receivables or other amounts owed by
         franchisees without prior written consent of Buyer; provided that
         Sellers give Buyer written notice of such settlement within five (5)
         business days. Buyer will abide by and enforce in a commercially
         reasonable manner all written settlement agreements Seller enters into
         prior to the Closing with respect to the Receivables and will not
         modify any such agreements without Sellers' prior written consent
         during the one(1) year period immediately after the Closing Date.
         During such one (1) year period, Buyer will use its reasonable efforts
         to collect the Receivables in the same manner that Buyer pursues
         receivables from its current franchisees, provided that Buyer shall not
         be required to institute a lawsuit with respect to any Receivables.
         Sellers agree that they will have no rights to the Receivables after
         the Closing (except rights to receive payment from Buyer under Section
         2.2) and will not contact any Franchisee directly or indirectly with
         respect to the Receivables.

                  (c) Buyer shall provide to Seller on the tenth (10th) day of
         each month for a period of eighteen (18) months immediately after the
         Closing Date a statement of any Receivables collected during the
         immediately preceding calendar month and a statement of the reasonable
         out-of-pocket expenses incurred by Buyer in collection of such
         Receivables. Seller shall have the right to audit such statement by
         reviewing correspondence, records, receipts, financial statements,
         accounting work papers and any other Receivables related documents of
         Buyer, such audit to be performed at Sellers' expense.

         5.6. TAX FILINGS. Prior to the Closing, Seller shall pay all fees,
taxes, penalties and other amounts required by any governmental authority or
applicable law (including, without limitation, with respect to Taxes) in
connection with the purchase and sale of the Acquired Assets or any of the
transactions contemplated by this Agreement. Seller agrees to timely file, and
Buyer agrees to assist and cooperate with Seller in timely filing, any notices
or other documents relating to any Taxes that are required to be filed by Seller
or Buyer with any state or local government agency due to the transactions that
this Agreement contemplates.

         5.7. NATIONAL ADVERTISING TRUST FUND.

                  (a) Set forth on Schedule 5.7 hereto is a statement of (i) all
         advertising plans, programs or benefits available to franchisees
         relating to the National Advertising Trust Fund (the "Fund") existing
         as of the Closing Date (the "Fund Programs") (ii) a description of, and
         estimated or actual budget for, Fund Programs approved for calendar
         years 2001 and 2002. Sellers shall prepare and deliver to Buyer on the
         Closing Date a statement of all accounts payable of the Fund as of the
         Closing Date (the "Closing Fund Payables").

                  (b) Sellers will cause the Fund to be dissolved effective as
         of the Closing Date. As of Closing Date, Seller shall cause all Fund
         Assets to be transferred to an account designated by Buyer for the
         benefit of the Franchisees, the Franchised Businesses and the
         Insty-Prints system and Buyer shall assume all Closing Fund Payables
         and pay the same when due, pursuant to an Assignment and Assumption of
         National Advertising Trust Fund Assets in a form mutually agreed upon
         by Sellers and Buyer ("ASSIGNMENT AND ASSUMPTION OF FUND ASSETS").
         "Fund Assets" shall mean amounts remaining in the Trust Fund Account,
         together with all rights of Sellers in and to any and

                                       18
<PAGE>

         all assets of the Fund held for the benefit of the Franchisees or any
         other party having a beneficial interest therein, including, without
         limitation, cash, accounts receivables, deposits, advertising
         materials, and rights to rebates, marketing and advertising allowances.
         As of the Closing, the Fund Assets will be free and clear of any
         Encumbrances whatsoever.

                  (c) Sellers will indemnify and hold harmless Buyer from and
         against any and all issues, damages, expenses or claims of any nature
         made by any party with respect to the Fund arising on or before the
         Closing Date; provided that Buyers will be responsible for
         reimbursement obligations pursuant to the Fund Programs set forth in
         Schedule 5.7. Buyer will indemnify and hold harmless Sellers from and
         against any and all issues, damages, expenses or claims that relate (i)
         solely to Buyer's administration of the Fund after the Closing Date or
         (ii) provided Seller dissolves the Fund pursuant to the terms of the
         Trust Agreement and applicable laws, the dissolution of the Fund by
         Seller and transfer of Fund Assets to the Buyer.

                  (d) On and after the Closing Date, Buyer covenants and agrees,
         for a period of one (1) year after the Closing Date, to continue,
         maintain and administer Fund Programs as described on Schedule 5.7 and
         as such Fund Programs have been established and historically
         administered under the Trust Agreement.

         5.8. TRANSITION ASSISTANCE. From and after the Signing Date, Sellers
will cooperate with and obtain the approval of Buyer, which approval will not be
unreasonably withheld, with respect to all decisions made after such date
relating to all Franchise Agreements, other contracts, commitments and
communications with Franchisees, communications with Franchisees regarding the
transactions which are the subject of this Agreement and filing with
governmental agencies. From and after the Signing Date, Sellers will assist
Buyer, at Buyer's reasonable out-of-pocket expense, if any, in converting
Sellers' electronic data files relating to billing, accounts receivable, payment
processing, adjustments and credit memos, accounts payable, inventory and sales
history for royalties, National Advertising Trust Fund, matching funds, sales of
supplies, advertising cooperatives and notes to Buyer's electronic accounting
and franchise information systems. Sellers will in good faith assist and
cooperate with Buyer to make all reasonable efforts to complete such conversion
process by November 21, 2001. Such assistance will include, but not be limited
to, providing the foregoing information in a comma delimited file with
descriptions of each field.

         5.9. TRADE NAMES.

                  (a) From and after the Closing Date, neither Seller shall have
         any rights to or interest in the name "Insty-Prints" or any variation
         thereof. At the Closing, Sellers shall deliver to Buyer a certified
         copy of duly adopted joint resolutions of the Board of Directors and
         the sole shareholder of Insty authorizing an amendment to the Articles
         of Incorporation of Insty to change the corporate name of Insty to
         comply with the provisions of this Section 5.9, as well as a copy of
         the Articles of Amendment for Insty to be filed with both the
         Department of Revenue of the State of Minnesota and the Secretary of
         State of Minnesota. Sellers also shall cease using all Intellectual
         Property in connection with the Corporate Stores and remove all signs
         identifying such stores as Insty-Prints stores.

                                       19
<PAGE>

                  (b) Sellers shall grant Buyer and its affiliates a
         non-exclusive license to use the "IPI" name and mark in connection with
         the Business, but only to the extent currently used by Sellers. Buyer
         acknowledges the importance to Sellers of the reputation and goodwill
         of the "IPI" name and mark. Buyer, therefore, agrees to maintain the
         reasonable standards of quality as may be set by Sellers from time to
         time.

         5.10. DUE DILIGENCE. Prior to the Closing Date, Buyer shall have the
right to conduct such due diligence, and Sellers shall provide such due
diligence or access to requested information, as Buyer reasonably requires in
order to satisfy itself with respect to the Business, the Acquired Assets and
the Assumed Liabilities. Sellers will provide Buyer full access to, and
authorize Buyer to make copies of all of the contents of all files maintained by
Sellers' attorneys, brokers or other agents relating to the Franchisees, the
Acquired Assets, the Insty-Prints system, the Franchised Businesses and the
conduct of the Business prior to the Closing.

         5.11. PRE-CLOSING DELIVERIES. Not less than five (5) business days
before the Closing Date, Sellers shall deliver to Buyer:

                  (a) a list of all Trade Credits and Accrued Liabilities to be
         assumed by Buyer at the Closing (the "Final Trade Credits and Accrued
         Liabilities Schedule");

                  (b) a true and correct list of all Uniform Commercial Code
         financing statements filed by a Seller evidencing such Seller's
         security interest in the assets of a Franchisee or a Franchised
         Business (the "Financing Statements");

                  (c) a substantially complete list of all Purchase Orders;

                  (d) a list of all Inventory which will be delivered to Buyer
         at the Closing;

                  (e) all signed Consents;

                  (f) a schedule of royalties paid by each Franchisee to Sellers
         each month since December 1, 2000; and

                  (g) of a list of and a description of the variations in
         insurance coverage Insty requires the Franchisees to maintain. Sellers
         also agree to deliver to Buyer a list of Franchisees who, to Sellers'
         knowledge, do not have the required policies in full force and effect
         and/or have not named Sellers as additional insureds under their
         respective policies; and

                  (h) a statement of the "net book value" of the prepaids as of
         the Closing Date (the "Final Prepaids Schedule") as agreed upon by the
         parties;

                                       20
<PAGE>

                  (i) an updated Schedule 3.19(o) amended to include a true,
         correct and complete list of every agreement then in effect entered
         into by either Seller for, and any of Seller's "recommended" or
         designated suppliers of, goods or services to the Franchise Business;
         and

                  (j) a statement of Closing Fund Payables pursuant to Section
         5.7.

         5.12. CONFIDENTIALITY. Sellers shall at all times (including after the
Closing) maintain the absolute confidentiality of the Confidential Information
(defined below) and shall not use or disclose the Confidential Information in
any manner whatsoever, other than in connection with the consummation of the
transactions that this Agreement contemplates. As used in this Section 5.12,
"CONFIDENTIAL INFORMATION" means all information acquired by Sellers relating to
any financial, strategic or business plans, data or analyses of Buyer, or any of
their licensees or franchisees. Notwithstanding the foregoing, nothing contained
herein shall prohibit Seller, from (a) disclosure of Confidential Information
which are generally known to the public and (b) disclosure of Confidential
Information in legal proceedings when Sellers are legally required to disclose
it, provided that Sellers give Buyer an opportunity to obtain an appropriate
legal protective order or other assurance satisfactory to Buyer that the
information required to be disclosed will be treated confidentially.

                                    ARTICLE 6

                                   TERMINATION

         6.1. TERMINATION BY BUYER. This Agreement and the transactions
contemplated hereby may be terminated by Buyer at any time prior to the Closing
if:

                  (a) Sellers' representations and warranties are not true and
         correct as of the Closing Date; or

                  (b) either Seller has failed in any manner to timely perform
         or comply with any covenant to be performed by it hereunder; or

                  (c) Seller fails to deliver any executed Consent (including
         from the landlord under the sublease for the Premises); or

                  (d) at any time between the Signing Date and the Closing Date
         there occurs a material adverse change in any Acquired Asset, the
         Business, the condition (financial or other), results of operations or
         prospects of Sellers, or any information disclosed to Buyer in the
         Schedules delivered to Buyer on the Signing Date; or

                  (e) Seller shall have received a written statement by Buyer on
         or before 5:00 p.m. Minneapolis, Minnesota time on November 27, 2001
         notifying Seller that based upon its review of materials (described on
         Schedule 6.1(e)) provided by Sellers to Buyer after the Signing Date,
         Buyer in its reasonable judgement concludes that either (i) there has
         been an uncured breach of any of the representations, warranties or
         pre-closing covenants of Sellers hereunder; or (ii) Buyer has learned
         from its review of Schedule 6.1(e) materials, of any event or condition
         which could reasonably be expected to have a material adverse effect on
         any Acquired Asset or the Business. Provided however, that any written
         statement to be provided under this Section 6.1(e) which is received by
         Seller

                                       21
<PAGE>

         after 5:00 p.m. Minneapolis, Minnesota time on November 27, 2001 shall
         be ineffective to terminate the transactions contemplated by this
         Agreement. Provided further, that Buyer's review under this Section
         6.1(e) shall have no effect on the liability of Sellers to Buyer under
         this Agreement for breach of any representations, warranties or
         covenants of Sellers hereunder.

         Nothing herein shall be construed to prevent Buyer, in its sole and
absolute discretion, from waiving in writing any of the above conditions, in
whole or in part, at any time up to the Closing.

         6.2. TERMINATION BY SELLER. This Agreement and the transactions
contemplated hereby may be terminated by Seller at any time prior to the Closing
if:

                  (a) Buyer's representations and warranties are not true and
         correct as of the Closing Date; or

                  (b) Buyer has failed in any manner to timely perform or comply
         with any covenant to be performed by it hereunder.

                  (c) IPI does not obtain approval of the transaction
         contemplated by this Agreement by the affirmative vote of the holders
         of a majority of the outstanding shares of IPI's Common Stock entitled
         to vote at a meeting of shareholders called for that purpose, other
         than failure of IPI to obtain approval as a result of actions of
         shareholders who are also officers, directors or who benficially own in
         excess of 10% of the outstanding shares of IPI's Common Stock. Nothing
         herein shall be construed to prevent either Seller, in such Seller's
         sole and absolute discretion, from waiving in writing any of the above
         conditions, in whole or in part, at any time up to the Closing.

                                    ARTICLE 7

                               CLOSING DELIVERIES

         7.1. CLOSING DOCUMENTS. At the Closing, the parties hereto shall
execute and deliver the following agreements and documents:

                  (a) Buyer and each Seller shall execute and deliver the
         assumption agreement substantially in the form of EXHIBIT 7.1(a)
         attached hereto;

                  (b) Insty shall execute and deliver to Buyer an intellectual
         property substantially in the form of EXHIBIT 7.1(b) attached hereto;

                  (c) Insty shall execute and deliver to Buyer executed
         assignments, in form for filing with applicable governmental agencies,
         of all Intellectual Property;

                  (d) Sellers shall execute and deliver to Buyer executed
         assignments (with consents, if required) of each agreement constituting
         Licensed Intellectual Property;

                                       22
<PAGE>

                  (e) Sellers shall execute and deliver a Bill of Sale,
         substantially in the form of EXHIBIT 7.1(e) attached hereto, conveying
         good and marketable title to all Acquired Assets not otherwise
         transferred or conveyed pursuant to this Section;

                  (f) Buyer and Sellers shall execute and deliver the
         Restrictive Covenant Agreement substantially in the form of EXHIBIT
         7.1(f) attached hereto;

                  (g) Buyer and IPI shall execute and deliver the Temporary
         Space License Agreement substantially in the form of EXHIBIT 7.1(g)
         attached hereto;

                  (h) Sellers shall execute all amendments and/or assignment
         necessary to assign all of Sellers' interest in the Financing
         Statements to Buyer;

                  (i) Sellers shall cause the Trustees and Insty to execute the
         Assignment of Fund Assets and any other documents reasonably required
         for the purposes of Section 5.8; and

                  (j) Buyer and Sellers shall execute and deliver such other
         instruments and documents as are reasonably required in order to
         consummate the transactions contemplated hereby.

         7.2. ADDITIONAL DELIVERIES BY SELLERS. Sellers, at their sole expense,
shall deliver to Buyer at the Closing:

                  (a) certified copies of joint resolutions duly adopted by the
         shareholders and the Board of Directors of each Seller authorizing the
         execution of this Agreement and the consummation of the transactions
         contemplated hereby;

                  (b) Certificates of Good Standing of Insty and IPI, dated
         within fifteen (15) days prior to the Closing Date, from the state of
         incorporation and any other state or foreign jurisdiction within which
         such Seller is qualified to do business as a foreign corporation;

                  (c) A correct and complete list of all outstanding promissory
         notes made by a Franchisee to a Seller as of the day immediately prior
         to the Closing Date (the "Final Promissory Note Schedule");

                  (d) certificate from each Seller, signed by an officer of such
         Seller, dated as of the Closing Date, certifying, without
         qualifications or exceptions, (i) all pre-closing covenants set forth
         in Article 5 have been fully satisfied and (ii) all representations and
         warranties of such Seller contained herein or in any certificate or
         other writing delivered pursuant hereto or in connections herewith are
         accurate as of the Closing date. Each such certificate shall be deemed
         a representation and warranty by such Seller.

                  (e) an opinion of Lindquist & Vennum, P.L.L.P., counsel to
         Sellers, dated the Closing Date, in the form of EXHIBIT 7.2(e) attached
         hereto.

                                       23
<PAGE>

         7.3. ADDITIONAL DELIVERIES BY BUYER. Buyer, at its expense, shall
deliver to Sellers at the Closing:

                  (a) certified copy of resolutions duly adopted by members of
         Buyer authorizing the execution of this Agreement and the consummation
         of the transactions contemplated hereby; and

                  (b) opinion of Piper Marbury Rudnick & Wolfe, counsel to
         Buyer, dated the Closing Date, in the form of EXHIBIT 7.3(b) attached
         hereto.

                                    ARTICLE 8

                                 INDEMNIFICATION

         8.1. INDEMNIFICATION BY SELLERS. Sellers, jointly and severally, shall
indemnify, defend and hold harmless Buyer and its affiliates and each of their
respective shareholders, officers, directors, agents, representatives,
employees, successors and assigns (collectively, the "BUYER INDEMNIFIED
PARTIES") against all costs, expenses, losses, direct or indirect damages
(including incidental, consequential and punitive damages), fines, penalties or
liabilities (including, without limitation, attorneys' fees, arbitrators' fees,
expert witness fees, costs of investigation and proof of facts and other costs
of litigation or arbitration, whether or not such litigation or arbitration is
commenced) (collectively, "DAMAGES") incurred by any of the Buyer Indemnified
Parties and arising directly or indirectly from, with respect to or in
connection with:

                  (a) the existence of any fact, circumstance or condition
         constituting a breach or violation of any of the representations and
         warranties of a Seller contained in this Agreement or any other
         document delivered by a Seller to Buyer in connection herewith;

                  (b) the breach by a Seller of any covenant or agreement
         contained in this Agreement or any other document delivered by a Seller
         to Buyer in connection herewith;

                  (c) any threatened or instituted claim, suit, action or cause
         of action, investigation or proceeding of any kind whatsoever, whether
         instituted or commenced prior to or after the Closing Date, which
         relates to, or arises directly or indirectly from, the Business or the
         Acquired Assets on or before the Closing Date; and

                  (d) any threatened or instituted claim, suit, action or cause
         of action, investigation or proceeding of any kind whatsoever, whether
         instituted or commenced prior to or after the Closing Date, which
         relates to, or arises directly or indirectly from, the employees of a
         Seller before, on or after the Closing Date.

If any indemnification obligation under this Section 8.1 might arise from the
claim, action or allegation of a third party or any litigation or alternate
dispute resolution resulting therefrom (a "CLAIM"), Sellers shall assume the
defense of any such Claim and any investigation, defense and settlement
resulting from such Claim, provided that Sellers shall use counsel reasonably
satisfactory to Buyer to defend against such Claim and may not settle any such
Claim without the prior written consent of Buyer, which shall not be
unreasonably withheld. Notwithstanding the

                                       24
<PAGE>

above, Buyer may, at its option, participate in the investigation, defense and
settlement of any Claim and engage counsel of its choice to participate in the
defense of any Claim at Buyer's risk and expense, provided that Buyer and its
counsel shall proceed diligently and in good faith with respect thereto.

         8.2. INDEMNIFICATION BY BUYER. Buyer shall indemnify, defend and hold
harmless Sellers, their affiliates and each of their respective shareholders,
officers, directors, agents, representatives, employees, successors and assigns
(collectively, the "SELLER INDEMNIFIED PARTIES") against all Damages incurred by
any of the Seller Indemnified Parties and arising directly or indirectly from,
with respect to or in connection with:

                  (a) the existence of any fact, circumstance or condition
         constituting a breach or violation of any of the representations and
         warranties of Buyer contained in this Agreement or any other document
         delivered by Buyer to Sellers in connection herewith;

                  (b) a breach by Buyer of any covenant or agreement contained
         in this Agreement or any other document delivered by Buyer to Sellers
         in connection herewith;

                  (c) any threatened or instituted claim, suit, action or cause
         of action, investigation or proceeding of any kind whatsoever which
         relates solely to or arises solely from the Business or the Acquired
         Assets after the Closing Date;

                  (d) any of the Assumed Liabilities.

         If any indemnification obligation under this Section 8.2 might arise
from a Claim, Buyer shall assume the defense of such Claim and any
investigation, defense and settlement resulting from such Claim, provided that
Buyer shall use counsel reasonably satisfactory to Sellers to defend against
such Claim and may not settle any such Claim without the prior written consent
of Sellers, which shall not be unreasonably withheld. Notwithstanding the above,
Sellers may, at their option, participate in the investigation, defense and
settlement of any Claim and engage counsel of their choice to participate in the
defense of any Claim at Sellers' expense, provided that Sellers and their
counsel shall proceed diligently and in good faith with respect thereto.

         8.3. SURVIVAL. All covenants and agreements of any party hereto shall
survive the Closing. Except as is otherwise expressly provided in this Section
8.3, all representations and warranties of any party hereto set forth herein
shall survive the Closing for a period of one (1) year following the Closing
Date, at which time they shall be deemed terminated. Any representation and
warranty in Section 3.6 or any representation or warranty which was known by
Sellers to be untrue when made shall survive the Closing without limitation. Any
claim which Buyer makes against Sellers in writing prior to the expiration of
the applicable cut-off period set forth in this Section 8.3 shall survive the
expiration of such period and Buyer shall have the right to pursue the same in
accordance with the applicable indemnification provisions set forth in this
Agreement. Any representation and warranty in this Agreement shall be deemed to
be material and to have been relied upon by the party to which made,
notwithstanding any investigation or inspection made by or on behalf of such
party, and shall not be affected in any respect by any such investigation or
inspection.

                                       25
<PAGE>

         8.4. RIGHT TO OFFSET. To the extent Buyer is entitled to any payment
for indemnification under Section 8.1 hereof or any payment under Section 5.5(a)
(an "INDEMNIFICATION PAYMENT"), Buyer may (but is not obligated to) offset any
part or the full amount of any such Indemnification Payment against any payment
or payments, if any, coming due from Buyer to Sellers under this Agreement or
otherwise until such Indemnification Payment is fully satisfied; provided,
however, that nothing herein shall be deemed to prohibit or restrict Buyer's
right or ability to collect any Indemnification Payment.

                                    ARTICLE 9

                                  MISCELLANEOUS

         9.1. ARBITRATION. ALL CONTROVERSIES, DISPUTES OR CLAIMS BETWEEN BUYER,
ITS OFFICERS, DIRECTORS, AGENTS, EMPLOYEES AND ATTORNEYS (IN THEIR
REPRESENTATIVE CAPACITY) AND SELLER ARISING OUT OF OR RELATING TO: (1) THIS
AGREEMENT OR ANY PROVISION HEREOF OR ANY RELATED AGREEMENT; (2) THE RELATIONSHIP
OF THE PARTIES HERETO; OR (3) THE VALIDITY OF THIS AGREEMENT OR ANY RELATED
AGREEMENT, OR ANY PROVISION HEREOF; SHALL BE SUBMITTED FOR ARBITRATION TO BE
ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION. SUCH ARBITRATION
PROCEEDINGS SHALL BE CONDUCTED IN CHICAGO, ILLINOIS AND, EXCEPT AS OTHERWISE
PROVIDED IN THIS AGREEMENT, SHALL BE CONDUCTED BY ONE ARBITRATOR IN ACCORDANCE
WITH THE THEN CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION
ASSOCIATION. THE ARBITRATOR SHALL HAVE THE RIGHT TO AWARD OR INCLUDE IN HIS OR
HER AWARD ANY RELIEF WHICH HE OR SHE DEEMS PROPER IN THE CIRCUMSTANCES,
INCLUDING, WITHOUT LIMITATION, MONEY DAMAGES (WITH INTEREST ON UNPAID AMOUNTS
FROM DATE DUE), SPECIFIC PERFORMANCE, INJUNCTIVE RELIEF, ATTORNEYS' FEES AND
COSTS. THE AWARD AND DECISION OF THE ARBITRATOR SHALL BE CONCLUSIVE AND BINDING
UPON ALL PARTIES HERETO AND JUDGMENT UPON THE AWARD MAY BE ENTERED IN ANY COURT
OF COMPETENT JURISDICTION. ALL MATTERS WITHIN THE SCOPE OF THE FEDERAL
ARBITRATION ACT (9 U.S.C. SECTIONS 1 ET SEQ.) SHALL BE GOVERNED BY IT AND NOT BY
ANY STATE ARBITRATION LAW. THE PARTIES FURTHER AGREE THAT IN CONNECTION WITH ANY
SUCH ARBITRATION PROCEEDING EACH SHALL FILE ANY COMPULSORY COUNTERCLAIM (AS
DEFINED BY RULE 13 OF THE FEDERAL RULES OF CIVIL PROCEDURE) WITHIN THIRTY (30)
DAYS OF THE DATE OF THE FILING OF THE CLAIM TO WHICH IT RELATES; OTHERWISE, SUCH
COUNTERCLAIM SHALL BE FOREVER BARRED. THE PARTIES FURTHER AGREE THAT ARBITRATION
WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS AND THAT AN
ARBITRATION PROCEEDING BETWEEN THE PARTIES, AND/OR THEIR AFFILIATES' RESPECTIVE
SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS AND/OR EMPLOYEES, MAY NOT BE
CONSOLIDATED WITH ANY OR OTHER ARBITRATION PROCEEDING. DESPITE THE PARTIES'
AGREEMENT TO ARBITRATE, BUYER AND SELLERS EACH HAVE THE RIGHT IN A PROPER CASE

                                       26
<PAGE>

TO SEEK TEMPORARY RESTRAINING ORDERS AND TEMPORARY OR PRELIMINARY INJUNCTIVE
RELIEF FROM A COURT OF COMPETENT JURISDICTION; PROVIDED, HOWEVER, THAT SELLERS
AND BUYER MUST CONTEMPORANEOUSLY SUBMIT THEIR DISPUTE FOR ARBITRATION ON THE
MERITS AS PROVIDED IN THIS SUBSECTION.

         9.2. CONSENT TO JURISDICTION. Subject to the parties' obligations under
Section 9.1, Buyer and Sellers agree that all actions arising under this
Agreement, any related agreement, the relationship of the parties hereto, or the
validity of this Agreement or any related agreement must be commenced in the
state or federal court of general jurisdiction in or nearest to Troy, Michigan.
Sellers and Buyer irrevocably submit to the jurisdiction of those courts and
waive any objection of jurisdiction or venue in those courts.

         9.3. TRANSACTION EXPENSES. Each party will bear all of its own
respective expenses incurred in the negotiations and consummation of the
transactions contemplated hereby, including all legal, accounting and other
advisors' fees.

         9.4. NOTICES. All notices, requests, demands and other communications
required or permitted under this Agreement are sufficient if in writing and
delivered personally, delivered by a nationally recognized overnight courier
service, mailed first-class, postage prepaid, registered or certified mail, or
facsimile and in any event addressed as follows:

         If to Buyer to:         Allegra Holdings LLC
                                 1800 West Maple Road
                                 Troy, MI 48084
                                 Attention: Mr. William McIntire
                                 Fax: (248) 614-3719

         with a copy to:         Piper Marbury Rudnick & Wolfe
                                 203 North LaSalle Street, Suite 1800
                                 Chicago, IL 60601
                                 Attention: Fredric A. Cohen, Esq.
                                 Fax: (312) 236-7516

         If to Sellers to:       Jacobs Management Corporation
                                 2900 IDS Center
                                 80 South 8th Street
                                 Minneapolis, MN 55402
                                 Attention: David Mahler
                                 Fax: (612) 338-8188

         with a copy to:         Lindquist & Vennum, P.L.L.P.
                                 4200 IDS Center
                                 80 South 8th Street
                                 Minneapolis, MN 55402
                                 Attention: John H. Strothman
                                 Fax: (612) 371-3207

                                       27
<PAGE>

         Notice is effective (a) when delivered personally, (b) on the business
day after being sent by nationally recognized courier service or transmittal by
facsimile, or (c) three (3) business days after being sent by registered or
certified mail. Either party may designate, by notice in writing, a new address
to which any notice, demand or communication may hereafter be so given or sent.

         9.5. WRITTEN AGREEMENT TO GOVERN. This Agreement (along with all
documents and instruments to be delivered pursuant hereto, including all
Exhibits and Schedules) sets forth the entire understanding, and supersedes all
prior and contemporaneous discussions, negotiations, understandings and oral and
written agreements, among the parties relating to the subject matter it contains
and merges all prior and contemporaneous discussions among them. No party shall
be bound by any definition, condition, representation, warranty, covenant or
provision other than as expressly stated in this Agreement or in the other
documents referred to in this Agreement which form a part of this Agreement.

         9.6. CONSTRUCTION. The parties expressly agree that it is not any
party's intention to violate any public policy, statutory or common laws, rules,
regulations, treaties or decisions of any government. If any provision of this
Agreement is judicially or administratively interpreted or construed as being
unenforceable, such provision shall be inoperative, and the remainder of this
Agreement shall remain binding upon the parties. If any provision of this
Agreement is determined by a court of competent jurisdiction to be invalid as
written by reason of its scope, the parties intend that such provision be
enforced to the maximum extent permitted under applicable laws.

         9.7. WAIVER OF PROVISIONS. The headings in this Agreement are inserted
for convenience of reference only and are not a part of and will not control or
affect the meaning of this Agreement. The terms, covenants, representations,
warranties and conditions of this Agreement may be waived only by a written
instrument executed by the party waiving compliance. The failure of any party at
any time to require performance of any obligation under this Agreement or any
other instrument or document to be delivered pursuant hereto shall in no manner
affect the right at a later date to enforce the same. No waiver by any party of
any condition, or any breach of any provision, term, covenant, representation or
warranty contained in this Agreement, whether by conduct or otherwise in any one
or more instances, shall be deemed to be or construed as a further or continuing
waiver of any such condition or the breach of any other provision, term,
covenant, representation or warranty of this Agreement.

         9.8. LAW TO GOVERN. All matters relating to arbitration shall be
governed exclusively by the Federal Arbitration Act (9 U.S.C. Sections 1 ET
SEQ.). Except to the extent governed by the Federal Arbitration Act or other
federal law, all matters arising from or relating to the validity, construction
or enforceability of this Agreement shall be governed in all respects by the
laws of the State of Michigan, without regard to its conflicts of laws rules.

         9.9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, administrators successors and assigns; however, neither this
Agreement nor the rights or obligations of either Seller arising hereunder or in
connection herewith may be assigned by such Seller except with the written
consent of Buyer, which consent shall not be unreasonably withheld.

                                       28
<PAGE>

         9.10. THIRD PARTY BENEFICIARIES. Nothing in this Agreement shall confer
any rights upon any person or entity other than the parties hereto and their
respective heirs, successors and permitted assigns.

         9.11. FURTHER ASSURANCES. From the Signing Date until the Closing Date,
and continuing after the Closing, the parties agree (a) to use all reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary, proper or advisable to consummate and effectuate the
transaction contemplated by this Agreement; (b) to execute and deliver to the
others any documents, instruments or conveyances of any kind which may be
reasonably necessary or advisable to consummate and effectuate the transactions
contemplated by this Agreement, including, without limitation, any documents
requested by the telephone company or other service provider in connection with
the transfer of the telephone number or any service used in the Business'
operation to Buyer; and (c) to cooperate with each other in connection with the
foregoing.

                                       29
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the day and year first written above.

BUYER:                                      SELLERS:

ALLEGRA HOLDINGS LLC,                       IPI, INC., a Minnesota corporation
a Michigan limited liability company

By: /s/ Mark A. Crowley                      By: /s/ Robert J. Sutter
    ---------------------------------            -------------------------------
    Mark A. Crowley                              Robert J. Sutter
    Its: Vice President of Finance           Its:President

                                            INSTY-PRINTS, INC., a Minnesota
                                            corporation:

                                            By: David C. Oswald
                                                --------------------------------
                                            Its: President

                                       30

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