Document:

Exhibit 10.13

        EMPLOYMENT AGREEMENT

        THIS AGREEMENT is made and entered into as of the 1st day of April, 2008 by and between Hostopia.com Inc. (the “Company”) and Peter Kostandenou (the “Employee”).

        WHEREAS the Company wishes to employ Employee and desires to enter into an agreement (the “Agreement”) embodying the terms of such employment;

        AND WHEREAS Employee has accepted such employment on the basis of the terms and conditions set forth I this Agreement;

        IN CONSIDERATION of the recitals and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:

        
            	
                        1.

                    	
                        Employment:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        The company hereby employs Employee and Employee hereby accepts employment wit the Company for the term of this Agreement set forth in Section 2 below, in a position and with the duties and responsibilities set forth in Section 3 below, and upon all other terms and conditions in this Agreement set forth.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        Employee shall be headquartered in Toronto, Canada provided that Employee shall render such services within and outside of Canada, including frequent visits to the Company’s offices in United States and Europe, as shall from time to time be necessary for the performance of his duties hereunder.

                    

        

        
            	
                        2.

                    	
                        Term:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        The term of Employee’s employment pursuant to this Agreement (the “term”) shall be for a period of 3 years, and shall begin on April 1, 2008 and shall continue until April 1st, 20011, subject to the provisions of this Agreement providing for earlier termination of Employee’s employment in certain
                        circumstances.

                    

        

         

        
            	
                         

                    	
                        (b)

                    	
                        The term shall automatically be extended for an additional period of 12 months from April 1st, 2011 (“Renewal Date”) and on each subsequent anniversary of the Renewal Date, unless terminated by either the Company of Employee by written notice to the other given at least 180 days prior to the Renewal Date or
                        each subsequent anniversary of the Renewal Date.

                    

        

        
            	
                        3.

                    	
                        Position, Responsibilities:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        It is intended that all times during the term of this Agreement, Employee shall serve as the Chief Operation Officer of the Company with responsibility for

                    

        

         

        
            

        

        performing such duties for the Company and its subsidiaries as Employee shall reasonably by directed to perform the Company’s board of directors.

        
            	
                         

                    	
                        (b)

                    	
                        Throughout the term of this Agreement, Employee shall devote on average, no less than 40 hours per week to the business and affairs of the Company, except for vacations and except for illness or incapacity. In addition, nothing in this Agreement shall preclude Employee from devoting reasonable periods required for serving, as
                        appropriate, on boards of directors of other corporations, from engaging in charitable and public service activities, and from managing his personal investments, provided such activities do not materially interfere with the performance of his duties and responsibilities under this Agreement.

                    

        

        
            	
                        4.

                    	
                        Salary/Options: For services rendered by Employee during the term of this Agreement, Employee shall be paid a base salary payable monthly, at an annual rate of $100,000 from April 1st, 2008 – July 1st, 2008 and $120,000 from July 1st, 2008 subject to, during the
                        second and the third years of the term and subsequent years, if any, to annual review and increase of salary and options at the sole discretion of the CEO and board of directors of the Company, taking into account, among other things, individual performance and general business conditions. The base salary shall be payable in Canadian dollars. In addition, the Employee will receive an executive bonus plan to be set at the sole discretion of the CEO and board of
                        directors.

                    

        

        
            	
                        5.

                    	
                        Business Expenses: Employee will be reimbursed for all reasonable expenses incurred by him in connection with the conduct of the Company’s business upon presentation of sufficient evidence of such expenditures provided such expenditures are deductible to the Company for tax purposes or are
                        authorized expenditures pursuant to policies adopted by the board of directors of the Company from time to time.

                    

        

        
            	
                        6.

                    	
                        Benefits and Vacation:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        Employee will be entitled to participate in all employee benefit programs of the Company from time to time in effect under the terms and conditions of such programs, including, but not limited to, pension and other retirement plans, group life insurance, hospitalization and surgical and major medical coverage, dental insurance, sick
                        leave, including salary continuation arrangements, long-term disability, and such other fringe benefits as are or may be available from time to time to employees of the Company.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        The Company may obtain a key-man life insurance policy covering Employee for the benefit of Employee or the company in such amount as the Company considers appropriate, and Employee hereby agrees to take all necessary actions to facilitate the issuance and maintenance of such insurance policy.

                    

        

         

        
            

        

        
            	
                         

                    	
                        (c)

                    	
                        Employee shall be entitled to all usual public holidays and, in addition, to three weeks paid vacation during each year of Employee’s employment for the first 3 years of employment and 4 weeks hereafter. Such vacation shall be utilized by Employee at such time or times as do not materially interfere with the ongoing conduct of
                        the Company’s business and operations and can not be carried over from year to year.

                    

        

        
            	
                        7.

                    	
                        Termination of Employment:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        Death. In the event of the death of Employee during the term of this Agreement, Employee’s salary will be paid to Employee’s designated beneficiary, and in the absence of such designation, to the estate in which death occurs. Rights and benefits of Employee under employee benefit plans and
                        programs of the Company, including life insurance, will be determined in accordance with the terms and conditions of such plans and programs.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        Disability. Employee’s employment shall terminate automatically upon written notice from the Company in the event of Employee’s absence or inability to render the services required hereunder due to disability, illness, and incapacity or otherwise for an aggregate of 60 days during any one
                        year period. In the event of any such absence or inability, Employee shall be entitled to receive the compensation provided for herein for the first 30 days thereof, whereafter Employee shall be entitled to receive compensation in accordance with the Company’s long-term disability plan together with such compensation, if any, as may be determined by the board of directors of the Company.

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        Termination by the Company Other Than for Cause. In the event of termination by the Company of Employee employment hereunder other than for cause, Employee shall be entitled to continued salary payments, payable monthly, for a period equal to 4 weeks multiplied by the number of years employed by the
                        Company (“Severance Period”), following such termination (notwithstanding that the balance of the term of this Agreement may exceed the Severance Period) at the rate in effect immediately prior to such termination. Any rights and benefits of Employee under employee benefit plans and programs of the Company will be determined in accordance with the terms of such plans and programs.

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        Termination by the Company for Cause. In the event of a termination for cause, there will be no continued salary payments by the Company to Employee and any rights and benefits of Employee under employee benefit plans and programs of the Company will be determined in accordance with the terms of such
                        plans and programs. For purposes of this Section 7(d) and of Employees employment with the Company, “cause” shall mean that:

                    

        

         

        
            

        

        
            	
                         

                    	
                        (i)

                    	
                        Employee has committed a felony or indictable offence or has improperly enriched himself at the expense of the Company or has committed an act evidencing dishonesty or moral turpitude including without limitation an act of theft; or

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        Employee, in carrying out his duties hereunder, (i) has been willfully and grossly negligent, or (ii) has committed willful and gross misconduct or, (iii) has failed to comply with an instruction or directive from the board of directors of the Company;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        Employee has breached a material term of this Agreement;

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        Employee becomes bankrupt or in the event a receiving order (or any analogous order under any applicable law) is made against Employee or in the event Employee makes any general disposition or assignment for the benefit of his creditors; or

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        Employee commits any other act giving the Company cause to terminate Employee’s employment, including, but not limited to, chronic alcoholism or drug addition, material malfeasance or nonfeasance with respect to Employee’s duties hereunder.

                    

        

        Prior to any termination of Employee for cause due to any occurrence described in subparagraphs 7(a)(ii),(iii) and (v) above, the Company shall notify Employee in writing of the particulars of the occurrence upon which termination would be based and shall in such notice advise Employee as to whether in the Company’s sole discretion the default of Employee
        occasioned by such occurrence is capable of being cured or rectified in full without loss or damage to the Company, in which case the Company shall afford Employee a reasonable period of not less than five business days in which to cure or rectify such default. In such event and provided Employee cures or rectifies such default in full without loss or damage to the Company, Employee’s employment shall not be terminated on the basis of such occurrence.

        
            	
                        8.

                    	
                        Non-Competition: Employee agrees that during the period of Employee’s employment with the Company for a period of 18 months from the last payment of compensation to Employee by the Company, Employee shall not engage in or participate in any business activity that competes, directly or indirectly,
                        with business of the Company, or its subsidiaries or affiliates, provided that Employee shall not be precluded from competing with the business of the Company in the event of a termination of Employee’s employment as a result of a material breach by the Company of the provisions of this Agreement or in the event that Employee’s employment is terminated by the Company other than for cause.

                    

        

         

        
            

        

        For purpose of this Section 8, Employee shall be deemed to “compete, directly or indirectly: with the businesses of the Company, or its subsidiaries or affiliates if Employee is or becomes engaged, otherwise than at the request of the Company, as an officer, director or employee of, or is or becomes associated in a management or ownership, consultant or agent,
        capacity with, any corporation, partnership or other enterprise or venture the business of which includes wholesale, private label web hosting and email services in Canada or United States, during the 18 month period immediately preceding Employee’s termination. Employee shall not be deemed to “compete, directly or indirectly: with businesses of the Company, or its subsidiaries of affiliates if he becomes associated in a management or ownership, consultant or agent, capacity
        with, any corporation, partnership or other enterprise or venture, the business of which is competitive to the Company, prior to the date that the businesses of the Company becomes competitive with the business so such corporation, partnership or other enterprise or venture.

        Notwithstanding anything to the contrary contained herein Employee many, without being deemed to compete, directly or indirectly, with business of the Company or its subsidiaries or affiliates own not more than 5% of any class of the outstanding securities of any such corporation listed on a national securities exchange or traded in the over-the-counter
        market.

        It is the desire and the intent of the parties that the provisions of this Section 8 shall be enforceable to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular portion of this Section 8 is adjudicated unenforceable in any jurisdiction, such adjudication shall
        apply only in that particular jurisdiction in which such adjudication is made.

        The parties recognize that the Company will have no adequate remedy at law for the breach by Employee of the covenants provided in this Section 8, and, in the event of such breach, the Company and Employee hereby agree that the Company will be entitled to any injunction, a decree of specific performance, mandamus or other appropriate remedy to enforce such
        covenants.

        
            	
                        9.

                    	
                        Non-Solicitations: Employee agrees that for a period of 24 months following the last payment of salary to Employee, Employee will not, whether as principal, agent, employee, employer, director, officer, shareholder or in any other individual or representative capacity, solicit or attempt to retain in any
                        way whatsoever any of the employees of the Company or its subsidiaries of affiliates.

                    

        

        
            	
                        10.

                    	
                        Confidential Information:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        Employee agrees not to disclose either while the Company’s employ or at any time thereafter to any person not employed by the Company or not engaged to render

                    

        

         

        
            

        

        services to the Company, any trade secrets or confidential information of or relating to the Company or its subsidiaries and affiliates or its business obtained by Employee while in the employ of the Company; provided, however, that this provision shall not preclude Employee from the sue of disclosure of information known generally to the public (other than that
        which Employee may have disclosed in breach of this Agreement) or of information not generally considered confidential or from disclosure required by law or court order in the proper conduct of the Company’s business.

        
            	
                         

                    	
                        (b)

                    	
                        Employee also agrees that upon leaving the Company’s employ, Employee will not take, without the prior written consent of the board of directors of the Company, any document, whether in paper or electronic form, of the Company or its subsidiaries, affiliates and divisions, which is of a confidential nature relating to the
                        Company of its subsidiaries, affiliates and divisions.

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        The parties recognize that the Company will have no adequate remedy at law for breach by Employee of the covenants provided in this Section 10, and in the event of such breach, the Company and Employee hereby agree that the Company shall be entitled to an injunction, a decree of specific performance, mandamus or other appropriate
                        remedy to enforce such covenants.

                    

        

        
            	
                        11.

                    	
                        Ownership of Trade Secrets: All results of services performed by Employee hereunder including without limitation all ideas, copyrights, trade secrets or otherwise, shall be owned by and be the sole and exclusive property of the Company. Employee hereby transfers and assigns all right, title and interest
                        of every nature and kind whatsoever therein to the Company and agrees to execute and deliver such further documents and instruments as may be necessary to fully and effectually give effect thereto.

                    

        

        
            	
                        12.

                    	
                        Withholding: Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to Employee or his estate or beneficiaries, shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine, after consultation with Employee, it
                        should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholdings as required by law, provided the Company is satisfied that all requirements of law affecting the Company’s responsibilities to withhold have been complied with.

                    

        

        
            	
                        13.

                    	
                        Notices: Any notices, requests, demands or other communications provided for by this Agreement shall be in writing and shall be sufficiently given when and if sent by personal delivery, overnight courier or by facsimile to the party entitled thereto at the address stated below or at such other address as
                        the addresses may have given similar notice:

                    

        

         

        
            

        

        To the Company:

        Hostopia.com Inc.

        5915 Airport Road, 11th Floor

        Mississauga, Ontario L4V 1T1

        Attention: Secretary

        Fax No.: 1 800 979-9587

        To Employee:

        Peter Konstandenou

        (416) 499-8996

        Any such notice shall be deemed delivered if given by means of personal delivery on the day of delivery thereof or if given by means of overnight courier of facsimile transmission on the first business day following the dispatch thereof.

        
            	
                        14.

                    	
                        Entire Agreement: This Agreement contains the entire agreement between the parties hereto with respect to matters herein and supersedes all prior agreements and understandings, oral or written, between the parties hereto relating to such matters.

                    

        

        
            	
                        15.

                    	
                        Assignment: Except as herein expressly provided, the respective rights and obligations of Employee and the Company under this Agreement shall not be assignable by either party without written consent of other party and shall endure to the benefit of and be binding upon Employee and the Company and their
                        permitted successors or assigns, including, in the case of the Company, any other corporation or entity with which the Company may be merged or otherwise combined or which may acquire the Company or its assets in whole or substantial part, and, in the case of Employee, his estate or other legal representatives. Nothing herein expressed or implied is intended to confer on any person other than the parties hereto any rights, remedies, obligations or liabilities under or by
                        reason of this Agreement.

                    

        

        
            	
                        16.

                    	
                        Legal Fees: In the event of any dispute or legal proceeding arising out of or in connection with this Agreement, the party succeeding in such action, whether by judicial decision or settlement, shall be reimbursed by the other party for all legal fees and expenses incurred by the successful party with
                        respect to such dispute or proceeding.

                    

        

        
            	
                        17.

                    	
                        Applicable Law: This Agreement shall be deemed a contract under, and for all purposes shall be governed by and construed in accordance with, the laws of the Province of Ontario without regard to the conflict of laws rules thereof. The Company and Employee hereby each irrevocably consent and at torn to
                        the jurisdiction of the courts of the Province of Ontario with respect to any dispute or proceeding arising in connection with this Agreement.

                    

        

         

        
            

        

        
            	
                        18.

                    	
                        Amendment or Modification; Waiver: No provision of this Agreement may be amended or waiver unless such amendment or waiver is authorized by the Company (including any authorized officer or committee or by the board of directors) and is in a writing signed by Employee and by a duly authorized officer of
                        the Company. Except as otherwise specifically provided in this Agreement, no waiver by either party hereto of any breach by the other party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar breach, condition or provision at the same time or at any prior or subsequent time.

                    

        

        
            	
                        19.

                    	
                        Resignation: Employee hereby agrees that, upon termination of his employment for any reason whatsoever, Employee shall thereupon be deemed, upon the request of the Company, to have immediately resigned any position Employee may have as an offices and/or director or otherwise which Employee may hold with
                        any of the Company’s subsidiaries or related entities in connection with or arising from the performance of Employee’s duties of employment under this Agreement. In such event, Employee shall, at the reasonable request of the Company, forthwith execute any and all documents appropriate to evidence such resignations which are consistent with the terms of this Agreement.

                    

        

        
            	
                        20.

                    	
                        Damages: In the event that Employee is awarded any damages as compensation for any breach of this Agreement, a breach of any covenant contained in this Agreement (whether express or implied by either law or fact), or any other cause of action based in whole or in part on a breach of any provision of this
                        Agreement or related in any way to Employee’s employment hereunder, such damages shall be limited to contractual damages and shall exclude punitive damages and any other type of tort damages resulting from any such breach of any such term, covenant or condition of the Agreement.

                    

        

        
            	
                        21.

                    	
                        Provisions Surviving Termination: It is expressly agreed that notwithstanding termination of Employee’s employment with and by the Company for any reason or cause or in any circumstances whatsoever, such termination shall be without prejudice to the rights and obligations of Employee and the
                        Company, respectively, in relation to or arising up to the time of and including the date of termination, and the provisions of Sections 8,9,10,11,12,16,17,19,20,21, and 21 of this Agreement, all of which shall remain and continue in full force and effect unless and until the board of directors of the Company at its absolute discretion resolves otherwise and so notifies Employee in writing.

                    

        

        
            	
                        22.

                    	
                        Indemnity: The Company hereby indemnifies Employee and agrees to hold Employee safe, harmless, defended and indemnified (to the maximum extent permissible under applicable law, as now exists or as may be hereafter amended) against all claims and liabilities incurred by Employee relative to his lawful and
                        authorized performance of the services under this Agreement, except where such claims and liabilities arise because of

                    

        

         

        
            

        

        Employee’s intentional default or malfeasance, gross negligence, habitual neglect, unlawful conduct or breach of the terms, covenants or conditions of this Agreement.

        
            	
                        23.

                    	
                        Severability: In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions and portions of this Agreement shall be unaffect4ed thereby and shall remain in full force and effect to the fullest extent permitted by
                        law.

                    

        

        
            	
                        24.

                    	
                        Counterparts: This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same instruments.

                    

        

        
            	
                        25.

                    	
                        References: Om the event of Employee’s death or a judicial determination of his incompetency, reference in this Agreement to Employee shall be deemed, where appropriate, to refer to his legal representatives, or, where appropriate, to refer to his beneficiary or beneficiaries.

                    

        

        
            	
                        26.

                    	
                        Captions: Captions to the Sections of this Agreement are solely for convenience and no provision of this Agreement is to be construed by reference to the captions of that Section.

                    

        

        IN WITNESS WHEREOF this Agreement has been executed by a duly authorized officer of the Company and Employee as of the day and year first above written.

        

         

        
            	
                         

                         

                         

                        

                        

                         ____________________

                        Witness

                    	
                        HOSTOPIA.COM INC.

                         

                         

                        By:___________________

                         

                         

                             ____________________

                             Peter KonstandenouExhibit 10.14

        ASSET PURCHASE AGREEMENT

         

        B E T W E E N:

        HOSTOPIA.COM INC., a corporation incorporated under the laws of Delaware

        (hereinafter called the “Purchaser”)

        OF THE FIRST PART

        - and –

        GEEKSFORLESS INC., a corporation incorporated under the laws of Ontario

        (hereinafter called the “Vendor”)

        OF THE SECOND PART

        - and –

         

        IGOR NIKOLAICHUK, a Canadian citizen residing in 3 Galina Petrova Street Suite 128, Nikolaev, Ukraine (hereinafter called “Igor”)

        OF THE THIRD PART

         

        WHEREAS the Vendor is a creator of website templates and media content, and the Vendor and Purchaser had entered into the Website Template License Agreement (as defined below), which granted rights to the website templates to both the Vendor and Purchaser;

         

        AND WHEREAS the Purchaser wishes to purchase from the Vendor, and the Vendor wishes to sell, all of the website templates used by the Business (as defined below), including without limitation the website templates licensed to the Purchaser by the Vendor in the Website Template License Agreement

         

        AND WHEREAS the Vendor has agreed to indemnify the Purchaser from and against any and all claims, actions, damages or liabilities arising from the sale of the Purchased Assets (as hereinafter defined) or breach of any term of this agreement by the Vendor.

         

        NOW THEREFORE, the Purchaser agrees to purchase from the Vendor, and the Vendor agrees to sell to the Purchaser, the Purchased Assets on the following terms and conditions:

        
            	
                        1.

                    	
                        Defined Terms

                    

        

         

        
            

        

        
            

            - 2

            

        

         

        In this Agreement and in the schedules hereto the following terms and expressions will have the following meanings:

        
            	
                         

                    	
                        (a)

                    	
                        “Benefit Plans” has the meaning ascribed thereto in Section 10(t);

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        “Business” means the website template business carried on by the Vendor under various trade names and at various websites, whereby the Vendor licenses the Templates to third parties;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        “Closing Date” has the meaning ascribed thereto in Section 9;

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        “Contractors” means the Ukrainian contractors that are contracted by the Vendor to create web site templates, which were resold to the Purchaser by the Vendor.

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        “Domain Names” means the domain names owned or controlled by the Vendor or Igor essential to the operation of the Business as more fully described in Schedule A;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        “Employees” means any employee or contractor of the Vendor;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        “Encumbrances” means all mortgages, charges, pledges, security interests, liens, encumbrances, actions, claims, demands and equities of any nature whatsoever or howsoever arising and any rights or privileges capable of becoming any of the foregoing;

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        “Excluded Assets” has the meaning ascribed thereto in Section 3;

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        “Governmental Charges” means all taxes, customs duties, rates, levies, assessments, reassessments and other charges, together with all penalties, interest and fines with respect thereto, payable to any federal, provincial, municipal, local or other government or governmental agency,
                        authority, board, bureau or commission, domestic or foreign;

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        “Images and Media” means all still photographs, digital images, cartoons, drawings, video, graphics, text, sound, Flash applications, original work or images in any media or form, essential to the Business, including without limitation the 7,500 digital images, and all Intellectual Property
                        incorporated therein as described in Schedule A.

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        “Intellectual Property” shall mean all intellectual property that Vendor owns or uses with respect to the Business including, but not limited to all, (i) trademarks, trade names, service marks, product labels, telephone numbers, graphics and logos, and other trade designations, including
                        common-law rights, goodwill, registrations and applications therefor; (ii) copyrights currently owned, in whole or in part, by Vendor, including, the right to create derivative works thereof and common-law rights, registrations and applications therefor (ii) patents currently owned, in whole or in part, by Vendor, including, registrations and applications

                    

        

         

        
            

             

            

        

         

        
            

        

        
            

            - 3

            

        

         

        therefor (iii) trade secrets, schematics, technology, know-how, and (iv) Software, and all licenses, royalties, assignments and other similar agreements relating to the foregoing to which Vendor is a party, as described in Schedule A;

        
            	
                         

                    	
                        (l)

                    	
                        “Interim Period” has the meaning ascribed thereto in Section 11;

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        “Purchased Assets” has the meaning ascribed thereto in Section 2 of this Agreement;

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        “Purchase Price” has the meaning ascribed thereto in Section 4.

                    

        

        
            	
                         

                    	
                        (o)

                    	
                        “Software” means all computer software programs, applications, tools, libraries, interfaces and APIs, in source code, object code and other forms owned or licensed by Vendor and employed in the Business.

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        “Template Rover Websites and System” means the look and feel of the websites located at the Domain Names, including without limitation the sales and provisioning software used by the Business, and all Intellectual Property incorporated therein, as described in Schedule A.

                    

        

        
            	
                         

                    	
                        (q)

                    	
                        “Website Templates” means all website templates created by or for the Vendor, including without limitation the website templates created in accordance with the Website Template License Agreement and 1,597 additional web site templates, and all Intellectual Property that is incorporated
                        therein, as described in Schedule A.

                    

        

        
            	
                         

                    	
                        (r)

                    	
                        “Website Template License Agreement” means the Template Purchase Agreement entered into by the Vendor and the Purchaser on February 1, 2005.

                    

        

        
            	
                        2.

                    	
                        Purchased Assets

                    

        

        The Purchaser shall receive all right, title, and interest in, and to, the following assets (collectively, the “Purchased Assets”), upon the Closing:

        
            	
                         

                    	
                        (a)

                    	
                        The Website Templates;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        The Template Rover Websites and System;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        The Images and Media;

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        The Domain Names;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        The Intellectual Property;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        The Vendor’s goodwill in connection with the Business, together with the exclusive right of the Purchaser to hold itself out as carrying on the Business in succession to the Vendor;

                    

        

         

        

         

        
            

        

        
            

            
                
                    

                    - 4

                    

                

                 

            

        

        
            	
                         

                    	
                        (g)

                    	
                        Any marketing intelligence or strategies relating to the Business; and

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        All of the Vendor’s contractual rights and obligations relating to the Business which the Purchaser agrees to assume.

                    

        

        
            	
                        3.

                    	
                        Excluded Assets

                    

        

        Any other assets not specified herein shall be excluded (the “Excluded Assets”) including, without limitation, the following assets:

        
            	
                         

                    	
                        (a)

                    	
                        The Vendor’s computer programming contractor for hire business;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        The Vendor’s furniture, fixtures, equipment leases, computer equipment and telephone systems; and

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        real property leases or other rights granted to the Vendor by its landlord with respect to use and occupation of any leased premises.

                    

        

        
            	
                        4.

                    	
                        Purchase Price

                    

        

        The purchase price (“Purchase Price”) for the Purchased Assets shall be an amount equal to CDN$247,000, plus GST payable to the Vendor by Purchaser’s company cheque, at the time of Closing, or as otherwise mutually agreed by the parties. The Vendor and Purchase agree that the Purchase Price is allocated in accordance
        with the following:

        
            	
                        (a)         The Website Templates;

                    	
                         

                    	
                        $240,000.00

                    
	
                        (b)        The Template Rover Websites and System;

                    	
                         

                    	
                        $1,000.00

                    
	
                        (c)         The Images and Media;

                    	
                         

                    	
                        $1,000.00

                    
	
                        (d)        The Domain Names;

                    	
                         

                    	
                        $1,000.00

                    
	
                        (e)         The Intellectual Property;

                    	
                         

                    	
                        $1,000.00

                    
	
                        (f)         The Vendor’s goodwill in connection with the Business, together with the exclusive right of the Purchaser to hold itself out as carrying on the Business in succession to the Vendor;

                    	
                         

                    	
                        $1,000.00

                    
	
                        (g)        Any marketing intelligence or strategies relating to the Business; and

                    	
                         

                    	
                        $1,000.00

                    

            	
                        (h)        All of the Vendor’s contractual rights and obligations relating to the

                    	
                         

                    	
                        $1,000.00

                    

        

         

         

        
            

        

        
            

            
                
                    
                        

                        - 5

                        

                    

                     

                

            

        

        
            	
                                      Business which the Purchaser agrees to assume.

                    	
                         

                    	
                         

                    

        

        

        
            	
                        5.

                    	
                        Purchase Price Set-Off

                    

        

        The Purchaser shall deduct from the Purchase Price Any amount owing to the Purchaser by the Vendor prior to or following the Closing Date.

        
            	
                        6.

                    	
                        Liabilities

                    

        

        The Vendor shall be responsible for all expenses and liabilities incurred inthe running of the Business up to the Closing Date, and the Purchaser shall not be responsible for assuming any liabilities.

        
            	
                        7.

                    	
                        Non-Competition/Non-Solicitation

                    

        

        The Vendor and Igor agree that they will not during the five (5) year period following the Closing Date, directly or indirectly:

        
            	
                         

                    	
                        (a)

                    	
                        Be engaged in any business or undertaking which is competitive with the Business;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        Solicit any of the Purchaser’s employees;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        Solicit the customers or clients of the Business and the Purchaser; or

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        Attempt to sell, or sell, directly or indirectly, any services in competition with the services of the Business hereunder;

                    

        

        unless approved by the Purchaser, in writing in advance which approval may be arbitrarily withheld. For the purposes of this Agreement “Solicit” means to contact for any purpose, directly or indirectly.

        
            	
                        8.

                    	
                        Conditions Precedent to Closing

                    

        

        The closing of this transaction (“Closing”) is subject to the following conditions precedent in favour of the Purchaser, which conditions may be waived by the Purchaser in its sole discretion:

        
            	
                         

                    	
                        (a)

                    	
                        The Board of Directors of the Purchaser approving the purchase of the Business by the Purchaser from the Vendor;

                    

            
                	
                             

                        	
                            (b)

                        	
                            The Vendor shall have delivered a copy of a resolution of the shareholders and Board of Directors of the Vendor approving the purchase of the Business by the Purchaser from the Vendor;

                        

            

        

         

        

         

        
            

        

        
            

            
                
                    
                        

                        - 6

                        

                    

                     

                

            

        

        
            	
                         

                    	
                        (c)

                    	
                        The Vendor shall have entered into an agreement with the Purchaser to assign the Website Template License Agreement, whereby all rights of the Vendor shall be sold, assigned and transferred to Purchaser;

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        The Contractors shall have entered into the agreement attached hereto as Schedule B with regard to additional website templates;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        Igor shall have entered into an agreement with the Purchaser to act as an independent contractor, for total consideration of $1.00, during the 90 day period following the Closing Date, to assist with the Purchaser with regard to its reasonable requests related to the Business. The agreement shall be in a form prepared by Purchaser and shall contain such
                        terms and conditions as the Purchaser deems appropriate, acting reasonably;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        Search results of the public records of Ontario confirming the absence of security interests, judgments, tax liens and bankruptcy proceedings which affect or could affect the Purchased Assets;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        All requisite governmental and regulatory approvals of, exemptions from and consents required to consummate this Agreement shall have been obtained and all waiting periods prescribed by law shall have expired;

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        The Vendor shall have obtained all consents and approvals to the transfer of any contracts, licenses and other instruments being transferred which the Purchaser considers material to the Business;

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        All right, title, interest in, and to, the Purchased Assets shall have been sold, assigned and transferred to the Purchaser free and clear of all Encumbrances;

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        The Purchaser shall be satisfied with its due diligence investigations;

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        The Vendor shall have delivered all agreements or obligations forming part of the Purchased Assets;

                    

        

        
            	
                         

                    	
                        (l)

                    	
                        The Vendor shall have delivered all records of the Business and all of the schedules attached hereto, shall have been completed and updated, to the Purchaser’s satisfaction;

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        An officer’s certificate shall be signed and delivered to the Purchaser with respect to the veracity and accuracy of the representations and warranties as at the Closing Date in a form satisfactory to the Purchaser; and

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        Closing certificates, a bill of sale and other usual closing documentation shall have been delivered.

                    

        

        
            	
                        9.

                    	
                        Closing

                    

        

        
            

             

            

        

         

        
            

        

        
            

            
                
                    
                        

                        - 7

                        

                    

                

            

        

        The parties intend that the Closing will occur on June 1, 2007 (the “Closing Date”) or another date mutually satisfactory to both Purchaser and Vendor after the fulfilment of all of the aforesaid conditions precedent, which date shall be no more than ten (10) days after the fulfilment of the last of the aforesaid
        conditions precedent.

        
            	
                        10.

                    	
                        Representations and Warranties

                    

        

        Each of the Vendor and Igor hereby jointly and severally represents and warrants to the Purchaser (which representations and warranties shall survive for a period that begins on the date this Agreement is signed and ends three (3) years following the Closing Date), as follows, and confirms that the Purchaser is relying upon the accuracy of each of such representations and warranties
        in connection with the purchase of the Purchased Assets and the completion of the other transactions contemplated hereunder:

        
            	
                         

                    	
                        (a)

                    	
                        Corporate Authority and Binding Obligation. The Vendor has good right, full corporate power and absolute authority to enter into this Agreement and to sell, assign and transfer the Purchased Assets to the Purchaser in the manner contemplated herein and to perform all of the Vendor’s obligations under this Agreement. The Vendor and its respective
                        shareholders and board of directors have taken all necessary or desirable actions, steps and corporate and other proceedings to approve or authorize, validly and effectively, the entering into, and the execution, delivery and performance of, this Agreement and the sale and transfer of the Purchased Assets by the Vendor to the Purchaser. This Agreement is a legal, valid and binding obligation of the Vendor, enforceable against each of the Vendor and Igor in accordance
                        with its terms subject to (i) bankruptcy, insolvency, moratorium, reorganization and other laws relating to or affecting the enforcement of creditors' rights generally, and (ii) the fact that equitable remedies, including the remedies of specific performance and injunction, may only be granted in the discretion of a court.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        No Other Purchase Agreements. No person or entity has any agreement, option, understanding or commitment, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement, option or commitment, for the purchase or other acquisition from the Vendor of any of the Purchased Assets, or any rights or interest
                        therein.

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        Contractual and Regulatory Approvals. The Vendor is not under any material obligation, contractual or otherwise, to request or obtain the consent of any person, and no permits, licences, certifications, authorizations or approvals of, or notifications to, any federal, provincial, municipal or local government or governmental agency, board,
                        commission or authority are required to be obtained by the Vendor:

                    

            	
                         

                    	
                        (i)

                    	
                        in connection with the execution, delivery or performance by the Vendor of this Agreement or the completion of any of the transactions contemplated herein;

                    

        

         

        
            

             

            

        

         

        
            

        

        
            

            
                - 8

            

            

        

         

        
            	
                         

                    	
                        (ii)

                    	
                        to avoid the loss of any material permit, licence, certification or other authorization relating to the Business; or

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        in order that the authority of the Purchaser to carry on the Business in all material respects in the ordinary course and in the same manner as presently conducted remains in good standing and in full force and effect as of and following the closing of the transactions contemplated hereunder.

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        Status and Governmental Licences

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        The Vendor is a corporation duly incorporated and validly subsisting in all respects under the laws of its jurisdiction of incorporation. The Vendor has all necessary corporate power to own its properties and to carry on its business as it is now being conducted.

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        The Vendor holds all necessary licences, registrations and qualifications to carry on the Business in each jurisdiction in which:

                    

        

        
            	
                         

                    	
                        (A)

                    	
                        it owns any of the Purchased Assets; or

                    

        

        
            	
                         

                    	
                        (B)

                    	
                        the nature or conduct of the Business or any part thereof, or the nature of the Purchased Assets or any part thereof, makes such qualification necessary to enable the Business to be carried on as now conducted or to enable the Purchased Assets to be owned and operated.

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        Compliance with Constating Documents, Agreements and Laws. The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein, will not constitute or result in a violation, breach or default, under:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        any term or provision of any of the articles, by-laws or other constating documents of the Vendor; or

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        the terms of any indenture, agreement (written or oral), instrument or understanding or other obligation or restriction to which the Vendor is a party or by which it is bound.

                    

             

            
                	
                             

                        	
                            (f)

                        	
                            Financial Records. All material financial transactions of the Business have been recorded in the information provided to the Purchaser in accordance with good business practice and such information:

                        

            

            
                	
                             

                        	
                            (i)

                        	
                            accurately reflects, in all material respects, the basis for the financial condition and the revenues, expenses and results of operations of the Business; and

                        

            

        

         

        

         

        
            

        

        
            

            
                
                    

                    
                        - 9

                    

                    

                

                 

            

        

        
            	
                         

                    	
                        (ii)

                    	
                        together with all disclosures made in this Agreement or in the schedules hereto, present fairly, in all material respects, revenues and expenses of the Business as of and to the date hereof.

                    

        

        No information, records or systems pertaining to the operation or administration of the Business are in the possession of, recorded, stored, maintained by or otherwise dependent upon any other person.

        
            	
                         

                    	
                        (g)

                    	
                        All Material Liabilities. There are no liabilities (contingent or otherwise) of the Vendor of any kind whatsoever in respect of which the Purchaser may become liable on or after the consummation of the transactions contemplated by this Agreement.

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        Absence of Certain Changes or Events. Since April 1, 2007 the Vendor has:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        operated the Business only in the ordinary course thereof, consistent with past practices;

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        not created any Encumbrance upon any of the Purchased Assets;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        not made any material change in the method of billing customers or the credit terms made available by the Business to customers;

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        not made any material change with respect to any method of management, operation or accounting in respect of the Business;

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        not suffered any damage, destruction or loss (whether or not covered by insurance) relating to the Business which has materially adversely affected or could materially adversely affect the Business;

                    

        

        
            	
                         

                    	
                        (vi)

                    	
                        not entered into or amended any material agreement relating to the Business;

                    

        

        
            	
                         

                    	
                        (vii)

                    	
                        not suffered any extraordinary loss relating to the Business;

                    

        

        
            	
                         

                    	
                        (viii)

                    	
                        not made or incurred any material change in, or become aware of any event or condition which is likely to result in a material change in, the Business or its relationships with its customers, suppliers or Employees; or

                    

            	
                         

                    	
                        (ix)

                    	
                        not authorized, agreed or otherwise become committed to do any of the foregoing.

                    

            
                	
                             

                        	
                            (i)

                        	
                            Tax Matters. The Vendor has paid all Governmental Charges which are due and payable by it on or before the date hereof. There are no actions, suits, proceedings, investigations, enquiries or claims now pending or made or threatened against the Vendor in respect of Governmental Charges. The Vendor has withheld from each amount paid or credited to any
                            person or entity the

                        

            

        

         

        

         

        
            

        

        
            

            
                
                    

                    
                        - 10

                    

                

            

            

        

         

        
            	
                         

                    	
                         

                    	
                        amount of Governmental Charges required to be withheld therefrom and has remitted such Governmental Charges to the proper tax or other receiving authorities within the time required under applicable legislation.

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        Litigation. There are no actions, suits or proceedings, judicial or administrative (whether or not purportedly on behalf of the Vendor) threatened or pending against, or, by or against or affecting the Vendor which relate to the Business, at law or in equity, or before or by any court or any federal, provincial, municipal or other governmental
                        department, commission, board, bureau, agency or instrumentality, domestic or foreign.

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        Leased Premises. There are no leases or agreements to lease under which the Vendor leases real property relating solely to the Business.

                    

        

        
            	
                         

                    	
                        (l)

                    	
                        Title to Assets. The Vendor is the owner of and has good and marketable title to all of the Purchased Assets, free and clear of Encumbrances. No other person owns or has any Encumbrance against any assets which are being used in the Business.

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        Website Templates, Template Rover Websites and System, Images and Media, Domain Names and Intellectual Property;

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        Schedule A lists and contains a description of the

                    

        

        
            	
                         

                    	
                        (A)

                    	
                        Website Templates;

                    

        

        
            	
                         

                    	
                        (B)

                    	
                        Template Rover Websites and System;

                    

        

        
            	
                         

                    	
                        (C)

                    	
                        Images and Media;

                    

        

        
            	
                         

                    	
                        (D)

                    	
                        Domain Names; and

                    

        

        
            	
                         

                    	
                        (E)

                    	
                        Intellectual Property;

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        No royalty or other fee is required to be paid by the Vendor to any other person in respect of the use of any of the Website Templates, Template Rover Websites and System, Images and Media, Domain Names and Intellectual Property.

                    

            
                	
                             

                        	
                            (iii)

                        	
                            The conduct of the Business and the use of the Website Templates, Template Rover Websites and System, Images and Media, Domain Names and Intellectual Property does not infringe, and the Vendor has not received any notice, complaint, threat or claim alleging infringement of, any patent, trade mark, trade name, copyright, industrial design, trade
                            secret or propriety right of any other person or entity, and the conduct of the Business does not include any activity which may constitute passing off.

                        

            

        

         

        

         

        
            

        

        
            

            
                
                    

                    
                        - 11

                    

                

            

            

        

         

        
            	
                         

                    	
                        (n)

                    	
                        Partnerships or Joint Ventures. The Vendor is not, in relation to any part of the Business, a partner or participant in any partnership, joint venture, profit-sharing arrangement or other association of any kind and is not party to any agreement under which the Vendor agrees to carry on any part of the Business in such manner or by which the Vendor
                        agrees to share any revenue or profit of the Business with any other person or entity.

                    

        

        
            	
                         

                    	
                        (o)

                    	
                        Restrictions on Doing Business. The Vendor is not subject to any judgment, order or requirement of any court or governmental authority which is not of general application to persons carrying on a business similar to the Business.

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        Outstanding Agreements. The Vendor is not a party to or bound by any outstanding or executory agreement, contract or commitment, whether written or oral, relating to the Business;

                    

        

        
            	
                         

                    	
                        (q)

                    	
                        Good Standing of Agreements. The Vendor is not in material default or breach of any of its obligations under any one or more of the agreements or obligations forming part of the Purchased Assets, and there exists no state of facts which, after notice or lapse of time or both, would constitute such a default or breach. All of the agreements or obligations
                        forming part of the Purchased Assets, are now in good standing and in full force and effect without amendment thereto, the Vendor is entitled to all benefits thereunder and the other parties to such contracts, agreements, commitments, indentures and other instruments are not in default or breach of any of their material obligations thereunder. There are no contracts, agreements, commitments, indentures or other instruments relating to the Business under which the
                        Vendor’s rights or the performance of its respective obligations are dependent upon or supported by the guarantee of or any security provided by any other person.

                    

        

        
            	
                         

                    	
                        (r)

                    	
                        Employment Agreements. The Vendor is not a party to any written or oral employment, service or consulting agreement relating to any Employees, having any special arrangements or commitments with respect to the continuation of employment or payment of any particular amount upon termination of employment.

                    

        

        
            	
                         

                    	
                        (s)

                    	
                        Labour Matters and Employment Standards.

                    

            
                	
                             

                        	
                            (i)

                        	
                            The Vendor is not subject to any agreement with any labour union or employee association with respect to the Employees, has not made any commitment to or conducted negotiations with any labour union or employee association with respect to any future agreement with respect to the Employees and there is no current attempt to organize, certify or
                            establish any labour union or employee association, in relation to any of the Employees.

                        

            

        

         

        
            

             

        

        
            

        

        
            

            
                
                    

                    
                        - 12

                    

                

            

            

        

         

        
            	
                         

                    	
                        (ii)

                    	
                        There are no existing or, threatened, labour strikes or labour disputes, grievances, controversies or other labour troubles affecting the Business.

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        The Vendor has complied in all material respects with all applicable laws, rules, regulations and orders relating to employment in the Business, including those relating to wages, hours, occupational health and safety, workers' hazardous materials, employment standards, pay equity and workers' compensation. There are no outstanding charges or complaints
                        against the Vendor relating to unfair labour practices or discrimination under any legislation relating to Employees. The Vendor has paid in full all amounts owing under the Workers' Compensation Act, R.S.O. 1990, C. W.11 (Ontario) or comparable provincial legislation, and the workers' compensation claims experience of the Vendor would not permit a penalty reassessment under such legislation.

                    

        

        
            	
                         

                    	
                        (t)

                    	
                        Employee Benefit and Pension Plans.

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        The Vendor does not have, and is not subject to any present or future obligation or liability under, any pension plan, deferred compensation plan, retirement income plan, stock option or stock purchase plan, profit sharing plan, bonus plan or policy, employee group insurance plan, hospitalization plan, disability plan or other employee benefit plan,
                        program, policy or practice, formal or informal, with respect to any of the Employees, other than the Canada Pension Plan, R.S.C. 1985, c. C-8, and the Health Insurance Act, R.S.O. 1990, c. H.6 (Ontario) and other similar health plans established pursuant to statute (collectively, “Benefit Plans”). Complete and correct copies of all documentation establishing or relating to any Benefit Plans or, where such
                        Benefit Plans are oral commitments, written summaries of the terms thereof, have been provided to the Purchaser.

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        The Vendor does not have any existing pension plans in respect of the Employees, and is under no obligation to provide or establish any pension plans or benefits to any of the Employees.

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        There are no pending claims by any Employee or by any other person which allege a breach of fiduciary duties or violation of governing law or which may result in liability to the employer and there is no basis for such a claim.

                    

            
                	
                             

                        	
                            (u)

                        	
                            Compliance with Laws. In relation to the Business, the Vendor is not in violation in any material respect of any federal, provincial or other law, regulation or order of any government or governmental or regulatory authority, domestic or foreign.

                        

            

            
                	
                             

                        	
                            (v)

                        	
                            Complete Conveyance. The assets included in the Purchased Assets constitute all of the material assets of the Vendor used in carrying on the Business. The

                        

            

        

         

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - 13

                    

                

            

            

        

         

        
            	
                         

                    	
                         

                    	
                        Purchased Assets include all rights, properties, interests, assets (both tangible and intangible) and agreements necessary to enable the Purchaser to carry on the Business in the same manner and to the same extent as it has been carried on by the Vendor prior to the date hereof.

                    

        

        
            	
                         

                    	
                        (w)

                    	
                        Vendor’s Residency. The Vendor is not a non-resident of Canada within the meaning of the Income Tax Act, S.C. 1970-71-72, c. 63 (Canada).

                    

        

        
            	
                         

                    	
                        (x)

                    	
                        The terms of the form of agreement set out in Schedule B, contain the same or better terms and conditions that the Vendor enjoyed with the Contractors, including without limitation fees payable for each web site template.

                    

        

        
            	
                         

                    	
                        (y)

                    	
                        The Vendor and Igor have not received, and shall not receive, any remuneration from the Contractors with regard to the creation of web site templates for the Purchaser.

                    

        

        
            	
                         

                    	
                        (z)

                    	
                        Copies of Documents. Complete and correct copies (including all amendments) of all contracts, leases and other documents referred to in this Agreement or any schedule hereto or required to be disclosed hereby have been delivered to the Purchaser.

                    

        

        
            	
                         

                    	
                        (aa)

                    	
                        The Vendor shall ensure that all trade creditors of the Vendor, as defined in the Bulk Sales Act, R.S.O. 1990, B. 14, and amendments thereto, shall be satisfied without any claim against the Purchaser.

                    

        

         

        
            	
                        11.

                    	
                        Covenants

                    

        

         

        Each of the Vendor and Igor jointly and severally covenants to the Purchaser that he or it will do or cause to be done the following during the period beginning on the date this Agreement was signed and ending on the Closing Date (“Interim Period”):

         

        
            	
                         

                    	
                        (a)

                    	
                        Investigation of Business and Examination of Documents. The Vendor will provide access to and will permit the Purchaser, through its representatives, to make such investigation of the operations, properties, assets and records of the Business and of its financial and legal condition as the Purchaser deems necessary or advisable to familiarize itself with
                        such operations, properties, assets, records and other matters and to facilitate the transfer of the Purchased Assets. Such investigations and inspections shall not mitigate or affect the representations and warranties of the Vendors hereunder, which shall continue in full force and effect.

                         

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        Conduct of Business. Except as contemplated by this Agreement or with the prior written consent of the Purchaser, the Vendor or Igor will:

                         

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        promptly advise the Purchaser of any facts that come to their attention which would cause any of the Vendor’s representations and warranties herein contained to be untrue in any respect;

                    

        

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - 14

                    

                

            

        

         

        
            	
                         

                    	
                        (ii)

                    	
                        promptly advise the Purchaser in writing of any material adverse change in the Business;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        not create, incur or assume any Encumbrance upon, or dispose of, any of the Purchased Assets;

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        not terminate or waive any right of value of the Business;

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        not enter into or amend any material agreement relating to the Business; and

                    

        

        
            	
                         

                    	
                        (vi)

                    	
                        not increase, in any manner, the compensation or employee benefits of any of the employees of the Business, or pay or agree to pay to any of them any pension, severance or termination amount or other employee benefit not required by the Benefit Plans or the Employment Standards Act, RSO 1990, c. E.14.

                    

        

         

        
            	
                         

                    	
                        (c)

                    	
                        Transfer of Purchased Assets. On or before the Closing Date, the Vendors will cause all necessary steps and corporate proceedings to be taken in order to permit the Purchased Assets to be duly and properly transferred to the Purchaser.

                    

        

         

        
            	
                         

                    	
                        (d)

                    	
                        General Conveyance. On the Closing Date, the Vendor will deliver to the Purchaser good and marketable title to and exclusive possession of the Purchased Assets, free and clear of any and all Encumbrances. On the Closing Date, the Vendor will execute and deliver to the Purchaser one or more forms of general conveyance or bills of sale in respect of the
                        assignment, conveyance, transfer and delivery of the Purchased Assets to the Purchaser in form acceptable to the Purchaser.

                    

        

         

        
            	
                         

                    	
                        (e)

                    	
                        Retail Sales Tax. The Vendor shall deliver to the Purchaser a duplicate copy of a certificate issued pursuant to s.6 of the Retail Sales Tax Act, R.S.O. 1990, c. R. 31, (Ontario) or evidence satisfactory to the Purchaser that all retail sales taxes required to be paid by the Vendor have been paid, no later than two weeks following the Closing
                        Date.

                    

        

         

        
            	
                         

                    	
                        (f)

                    	
                        Transfer of Agreements. On the Closing Date, the Vendor will deliver to the Purchaser consents to the assignment of any contract under which consent is required executed by all persons whose consent is required in form acceptable to the Purchaser; and

                    

        

         

        
            	
                         

                    	
                        (g)

                    	
                        Exclusivity. The Vendor agrees that, notwithstanding the earlier termination of this agreement, prior to Closing it will not, directly or through its representatives or agents, solicit any offer, entertain any offer or otherwise discuss or deal with any party other than the Purchaser with respect to any competing transaction, the sale of the
                        Vendor’s assets or the sale of the shares of the Vendor.

                    

        

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - 15

                    

                

            

            

        

         

        
            	
                        12.

                    	
                        Indemnities

                    

        

         

        The Vendor will indemnify the Purchaser from and against, all obligations, damages, commitments and liabilities of, and claims against, the Purchaser arising from the transactions contemplated herein or breach of any of the terms of this Agreement by the Vendor or Igor. Without limiting the generality of the foregoing, it is agreed that the Purchaser will have no liability for any of
        the following:

         

        
            	
                         

                    	
                        (a)

                    	
                        all liabilities in respect of all indebtedness of the Vendor to all persons;

                    

        

         

        
            	
                         

                    	
                        (b)

                    	
                        all liability claims relating to any agreements relating to the Business and incurred prior to the Closing Date;

                    

        

         

        
            	
                         

                    	
                        (c)

                    	
                        all liability claims relating to any service performed prior to the Closing Date;

                    

        

         

        
            	
                         

                    	
                        (d)

                    	
                        all liabilities for all taxes, duties, levies, assessments and other such charges, including any penalties, interests and fines with respect thereto, payable by the Vendor to any federal, provincial, municipal or other government or governmental agency, authority, board, bureau or commission, domestic or foreign, including, without limitation, any taxes
                        in respect of the Retail Sales Tax Act, R.S.O. 1990, c. R. 31, (Ontario) or any taxes in respect of or measured by the sale, consumption or performance by the Vendors of any product or service prior to the Closing Date and any tax pursuant to the Employer Health Tax Act, R.S.O. 1990, c. E. 11 (Ontario) or any similar legislation in respect of all remuneration payable to all persons employed in the Business prior to the Closing Date;

                    

        

         

        
            	
                         

                    	
                        (e)

                    	
                        any and all claims of unsecured trade creditors or secured trade creditors of the Vendor existing at the time of the Closing Date or any action or proceeding to set aside the sale of the Purchased Assets or to have the sale declared void for non-compliance with the Bulk Sales Act, RSO 1990, c. B.14;

                    

        

         

        
            	
                         

                    	
                        (f)

                    	
                        all liabilities for salary, bonus, vacation pay and other compensation and all liabilities under Benefit Plans of the Vendor relating to employment of all persons in the Business prior to the Closing Date;

                    

        

         

        
            	
                         

                    	
                        (g)

                    	
                        all liabilities for claims for injury, disability, death or workers' compensation arising from or related to employment in the Business prior to the Closing Date; and

                    

        

         

        
            	
                         

                    	
                        (h)

                    	
                        all severance payments, damages for wrongful dismissal and all related costs in respect of the termination by the Vendor of the employment of any Employee.

                    

        

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - l6

                    

                

            

            

        

         

        
            	
                        13.

                    	
                        Confidentiality

                    

        

        Each of the Vendor and the Purchaser, and our respective servants and professional advisers, are to keep confidential the terms of this Agreement, and the books and records of the Vendor. This agreement of confidentiality shall remain binding on the aforesaid parties, whether or not this transaction is consummated. Each party shall be responsible for its own professional fees and
        other expenses arising in connection with this Agreement, any approvals, consents or investigations in connection herewith, and the negotiation and completion of this transaction.

        
            	
                        14.

                    	
                        Termination of this Agreement

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        This Agreement shall be at an end if any of the conditions precedent listed in Section 8 are not completed, unless waived by the Purchaser in its sole discretion, on or before June 1, 2007.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        In the event of termination of this Agreement, the confidentiality obligations set out in Section 13 hereof shall continue to be binding on the parties hereto.

                    

        

        
            	
                        15.

                    	
                        Entire Agreement

                    

        

        This Agreement constitutes the entire agreement between the parties relating to the subject matter hereof, and there are no other representations, understandings or agreements between the parties relating to the subject matter hereof.

        
            	
                        16.

                    	
                        Amendments

                    

        

        No amendment to, or change or discharge of, any provision of this Agreement shall be valid unless in writing and signed by authorized representatives of each party.

        
            	
                        17.

                    	
                        Legal Advice

                    

        

        The Vendor’s duly authorized representatives and Igor hereby acknowledge that (i) they have reviewed and fully understand the terms and binding effect of this Agreement, (ii) they accept the terms herein voluntarily and without duress or compulsion, and (iii) each has been advised of the right to obtain independent legal and other advice in connection with the execution of this
        Agreement, and has either obtained or hereby waives the obtaining of such advice.

        
            	
                        18.

                    	
                        Waiver

                    

        

        No party will be deemed to have waived the exercise of any right that it holds under this Agreement unless such waiver is made in writing. No waiver made with respect to any instance involving the exercise of any such right will be deemed to be a waiver with respect to any other instance involving the exercise of the right or with respect to any other such
        right.

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - 17

                    

                

            

            

        

         

        
            	
                        19.

                    	
                        Counterparts

                    

        

        This Agreement may be executed in any number of counterparts, and all such counterparts taken together shall be deemed to constitute one and the same instrument. Any party delivering an executed counterpart by facsimile shall also deliver a manually executed counterpart of this Agreement.

        
            	
                        20.

                    	
                        Severability

                    

        

        If any provision of this Agreement or the application of such provision to any party or person or circumstance shall be held illegal, invalid, or unenforceable, the remainder of this Agreement, or the application of such provision to a party or person or circumstance other than those as to which it is held illegal, invalid, or unenforceable shall not be affected thereby. Each
        provision of this Agreement is intended to be severable, and if any provision is illegal, invalid or unenforceable in any jurisdiction, this will not affect the legality, validity or enforceability of such provision in any other jurisdiction or the validity of the remainder of this Agreement.

        
            	
                        21.

                    	
                        Currency

                    

        

        Except where otherwise expressly provided, all amounts in this Agreement are stated and will be paid in the lawful currency of Canada.

        
            	
                        22.

                    	
                        Governing Law

                    

        

        This Agreement will be interpreted and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

         

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        - 18

                    

                

            

            

        

         

        IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the 31st day of May, 2007.

         

        
            	
                        HOSTOPIA.COM INC.

                         

                         

                    
	
                        Per:

                    	
                         

                    
	
                         

                    	
                        Paul Engels

                        Chief Marketing Officer and Executive Vice President

                         

                    
	
                         

                        Per:

                    	
                         

                         

                    
	
                         

                    	
                        Michael Mugan

                        Chief Financial Officer and Secretary

                         

                    

        

         

         

        
            	
                        GEEKSFORLESS INC.

                         

                    
	
                        Per:

                    	
                         

                    
	
                         

                    	
                        Igor Nikolaichuk

                        Chief Executive Officer

                         

                    

        

         

         

        
            	
                         

                    	
                         

                    	
                         

                    
	
                        Witness:

                    	
                         

                    	
                        Igor Nikolaichuk

                    
	
                         

                    	
                         

                    	
                         

                    

        

         

        
            

             

            

        

         

        
            

        

        

        
            

            
                 
            

        

        SCHEDULE A

        PURCHASED ASSETS

         

        Website Templates

        Attached CD ROM

        Template Rover Websites and System

        Attached CD ROM

        Images and Media

        Attached CD ROM

        Domain Names

        
            	
                        1. flashtemplatesdirect.com 3/23/2008

                    	
                         

                    	
                        11. templateroverclub.com 2/16/2008

                    
	
                        2. freetemplatesdirect.com 3/23/2008

                    	
                         

                    	
                        12. templaterovereurope.com 5/30/2008

                    
	
                        3. templateprocenter.com 2/20/2008

                    	
                         

                    	
                        13. templaterovers.ca 4/12/2007

                    
	
                        4. templateprocentrcom 2/20/2008

                    	
                         

                    	
                        14. templaterovers.com 4/12/2007

                    
	
                        5. templaterover.biz 8/4/2007

                    	
                         

                    	
                        15. templatesrover.ca 4/12/2007

                    
	
                        6. templaterover.ca 2/11/2008

                    	
                         

                    	
                        16. templatesrover.com 4/12/2007

                    
	
                        7. templaterover.co.uk 11/1/2008

                    	
                         

                    	
                        17. templatesrovers.ca 4/12/2007

                    
	
                        8. templaterover.com 8/5/2008

                    	
                         

                    	
                        18. templatesrovers.com 4/12/2007

                    
	
                        9. templaterover.net 8/5/2007

                    	
                         

                    	
                        19. templaterover.ru 3/22/2008

                    
	
                        10. templaterover.org 8/5/2007

                    	
                         

                    	
                         

                    

        

         

         

        
            

             

            

        

         

        
            

        

        
            

            
                
                    

                    
                        

                    

                

            

        

        Intellectual Property

        
            	
                         

                    	
                        i)

                    	
                        registered trademarks - NONE

                    

        

        
            	
                         

                    	
                        ii)

                    	
                        trade names - “TEMPLATEROVER” and “TEMPLATE ROVER”

                    

        

        
            	
                         

                    	
                        iii)

                    	
                        registered service marks - NONE

                    

        

        
            	
                         

                    	
                        iv)

                    	
                        product labels

                    

        

        
            	
                         

                    	
                        v)

                    	
                        telephone numbers - 1-888-442-3030

                    

        

        
            	
                         

                    	
                        vi)

                    	
                        graphics and logos

                    

        

        
            	
                         

                    	
                        vii)

                    	
                        other trade designations - NONE

                    

        

        
            	
                         

                    	
                        viii)

                    	
                        registered copyrights - NONE

                    

        

        
            	
                         

                    	
                        ix)

                    	
                        patent registrations and applications - NONE

                    

        

        
            	
                         

                    	
                        x)

                    	
                        All trade secrets, schematics, technology, know-how

                    

        

        
            	
                         

                    	
                        xi)

                    	
                        Software, and all licenses, royalties, assignments and other similar agreements -

                    

        

         

        
            

             

            

        

         

        
            

        

        SCHEDULE B

        FORM OF AGREEMENT - TEMPLATES

        [See attached]

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