-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 IMukrsoazJINj/ej/ok0To5163vHWj8TUjzG48dw/k2LFAoShjjZlDdtJi8oklsC
 lda/90AYJRWUar+/GJ6Pkw==

<SEC-DOCUMENT>0000950123-05-004650.txt : 20050419
<SEC-HEADER>0000950123-05-004650.hdr.sgml : 20050419
<ACCEPTANCE-DATETIME>20050419061619
ACCESSION NUMBER:		0000950123-05-004650
CONFORMED SUBMISSION TYPE:	SC 13D
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20050419
DATE AS OF CHANGE:		20050419

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KEITH COMPANIES INC
		CENTRAL INDEX KEY:			0001080922
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ENGINEERING SERVICES [8711]
		IRS NUMBER:				330203193
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-57875
		FILM NUMBER:		05758059

	BUSINESS ADDRESS:	
		STREET 1:		19 TECHNOLOGY DRIVE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92618
		BUSINESS PHONE:		949-923-6000

	MAIL ADDRESS:	
		STREET 1:		19 TECHNOLOGY DRIVE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92618

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STANTEC INC
		CENTRAL INDEX KEY:			0001131383

	FILING VALUES:
		FORM TYPE:		SC 13D

	BUSINESS ADDRESS:	
		STREET 1:		10160 112TH STREET
		STREET 2:		EDMONTO9N ALBERTA T5K 2L6 CANADA
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D
<SEQUENCE>1
<FILENAME>t16403sc13d.htm
<DESCRIPTION>SC 13D
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13d</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B><BR>
<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B></DIV>
<P align="center" style="font-size: 18pt"><B>SCHEDULE 13D</B>

<P align="center"><B>Under the Securities Exchange Act of 1934<BR>
(Amendment No.
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)*</B>

<P><DIV align="center" style="font-size: 24pt">THE KEITH COMPANIES, INC.</DIV>
<HR size="1" noshade>
<DIV align="center" style="font-size: 10pt"><B>(Name of Issuer)</B></DIV>

<P><DIV align="center" style="font-size: 10pt"><B>COMMON STOCK</B><BR>
<HR size="1" noshade>
<B>(Title of Class of Securities)</B></DIV>

<P><DIV align="center" style="font-size: 10pt"><B>487539 10 8</B><BR>
<HR size="1" noshade>
<B>(CUSIP Number)</B></DIV>

<P> <DIV align="center" style="font-size: 10pt"><B>Jeffrey S. Lloyd<BR>
Vice President, Secretary and General Counsel<BR>
Stantec Inc.<BR>
112 Street, Edmonton, Canada T5K 2L6</B><BR>
<HR size="1" noshade>
<B>(Name, Address and Telephone Number of Person<BR>Authorized to Receive Notices
and Communications)</B></DIV>
<P><DIV align="center" style="font-size: 10pt"><B>April 14, 2005</B><BR>
<HR size="1" noshade>
<B>(Date of Event Which Requires Filing of this Statement)</B></DIV>
<P align="left" style="font-size: 10pt">If the filing person has previously
filed a statement on Schedule 13G to report the acquisition that is the subject
of this Schedule 13D, and is filing this schedule because of
&#167;&nbsp;240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following
box&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>.
<P>
<P align="left" style="font-size: 10pt">Note: Schedules filed in paper
format shall include a signed original and five copies of the schedule,
including all exhibits. See &#167;&nbsp;240.13d-7(b) for other parties to whom copies are
to be sent.
<P>
<P align="left" style="font-size: 10pt"><SUP>*</SUP> The remainder of this cover
page shall be filled out for a reporting person&#146;s initial filing on this
form with respect to the subject class of securities, and for any subsequent
amendment containing information which would alter disclosures provided in a
prior cover page.
<P>
<P align="left" style="font-size: 10pt">The information required on the
remainder of this cover page shall not be deemed to be &#147;filed&#148; for the
purpose of Section 18 of the Securities Exchange Act of 1934 (&#147;Act&#148;)
or otherwise subject to the liabilities of that section of the Act but shall be
subject to all other provisions of the Act (however, see the Notes).

<P align="center" style="font-size: 10pt">

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="4" style="font-size: 10pt">
<TR>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="28%">&nbsp;</TD>
<TD width="14%">&nbsp;</TD>
<TD width="45%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="5">CUSIP No. 487539 10 8 </td> <TD colspan="2" align="right">Page 2
of 9 </TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD>&nbsp;</TD>
<TD valign=top>1.</TD>
<TD valign=top colspan=3>Name of Reporting Person:<BR>STANTEC INC.</TD>
<TD valign=top colspan=2>I.R.S. Identification Nos. of above persons (entities
only):<BR>
</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD>&nbsp;</TD>
<TD valign=top>2.</TD>
<TD valign=top colspan=5>Check the Appropriate Box if a Member of a Group (See
Instructions):</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD valign=top>(a)</TD>
<TD valign=top><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD valign=top colspan=3>&nbsp;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD valign=top>(b)</TD>
<TD valign=top><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD valign=top colspan=3>&nbsp;</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD>&nbsp;</TD>
<TD valign=top>3.</TD>
<TD valign=top colspan=5>SEC Use Only:</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD>&nbsp;</TD>
<TD valign=top>4.</TD>
<TD valign=top colspan=5>Source of Funds (See Instructions):<BR>OO</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>


<TR>
<TD>&nbsp;</TD>
<TD valign=top>5.</TD>
<TD valign=top colspan=5>Check if Disclosure of Legal Proceedings Is Required
Pursuant to Items 2(d) or 2(e): <FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD>&nbsp;</TD>
<TD valign=top>6.</TD>
<TD valign=top colspan=5>Citizenship or Place of Organization:<BR>CANADA</TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR><TD colspan="3" rowspan="8" align="center">Number
of<BR>Shares<BR>Beneficially<BR>Owned by<BR> Each Reporting<BR>Person
With</TD></TR>

<TR><TD valign=top>7.</TD>
<TD valign=top colspan=3>Sole Voting Power:<BR>0</TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top>8.</TD><TD valign=top colspan=3> Shared Voting
Power:<BR>1,366,217 SHARES</TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top>9.</TD><TD valign=top colspan=3> Sole Dispositive
Power:<BR>0</TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top>10.</TD><TD valign=top colspan=3>Shared Dispositive
Power:<BR>0</TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD>&nbsp;</TD>
<TD valign=top>11.</TD><TD valign=top colspan=5>Aggregate Amount Beneficially
Owned by Each Reporting Person: <BR>1,366,217 SHARES</TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD>&nbsp;</TD>
<TD valign=top>12.</TD><TD valign=top colspan=5>Check if the Aggregate Amount in
Row (11) Excludes Certain Shares (See Instructions):<BR> <FONT face="wingdings"
size="2">&#111;</FONT> </TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD>&nbsp;</TD>
<TD valign=top>13.</TD><TD valign=top colspan=5>Percent of Class Represented by
Amount in Row (11):<BR>17.2%</TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD>&nbsp;</TD>
<TD valign=top>14.</TD><TD valign=top colspan=5>Type of Reporting Person (See
Instructions):<BR>CO</TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>
</TABLE>

<P align="center" style="font-size: 10pt">Page 2 of 8 Pages

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>Item&nbsp;1. Security and Issuer.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Statement on Schedule&nbsp;13D (this &#147;Statement&#148;) relates to the common stock, par value
$0.001 per share (the &#147;Shares&#148;), of The Keith Companies, Inc., a California corporation (the
&#147;Issuer&#148;). The Issuer&#146;s principal executive offices are located at 19 Technology Drive, Irvine, CA
92618.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;2. Identity and Background.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Stantec Inc. (&#147;Reporting Person&#148;) is a Canadian corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The address of the principal office of the Reporting Person is 10160 &#150; 112 Street,
Edmonton, Canada T5K 2L6.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Reporting Person is a holding company. The principal business activities of the
Reporting Person&#146;s operating subsidiaries are providing professional design and consulting services
in planning, engineering, architecture, surveying, and project management.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;During
the last five years, the Reporting Person has not been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;During the last five years, the Reporting Person has not been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining future violations of,
or prohibiting or mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth on Schedule&nbsp;A to this Statement, and incorporated herein by reference, is the (a)
name, (b)&nbsp;residence or address of principal employment, (c)&nbsp;present principal occupation or
employment and (d)&nbsp;citizenship, of each executive officer and director of the Reporting Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the last five years, to the best of the Reporting Person&#146;s knowledge, none of the
persons listed in Schedule&nbsp;A hereto has been (a)&nbsp;convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or (b)&nbsp;a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding was or is subject
to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws or finding any violation with respect to
such laws.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;3. Source and Amount of Funds or Other Considerations.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Reporting Person is deemed to have obtained beneficial ownership of the Shares in
connection with a Stockholders Support Agreement to which it is a party (described in item 4).
Except in connection with the Merger (as described below), the Reporting Person has not expended,
and does not expect to expend, funds in connection with its deemed beneficial ownership of the
Shares. To the best of the Reporting Person&#146;s knowledge, no person named in Annex A hereto has
expended, nor expects to expend, funds in connection with the Reporting Person&#146;s deemed beneficial
ownership of the Shares.


<P align="center" style="font-size: 10pt">Page 3 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Item&nbsp;4. Purpose of Transaction.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#150; (j)&nbsp;On April&nbsp;14, 2005, the Reporting Person and Stantec Consulting California Inc.
(&#147;Merger Sub&#148;) entered into an Agreement and Plan of Merger and Reorganization (the &#147;Merger
Agreement&#148;) with the Issuer. The Merger Agreement provides, among other things, that on the second
business day following the satisfaction or waiver of the conditions set forth in the Merger
Agreement and in accordance with the relevant provisions of the California Corporations Code
(&#147;California Law&#148;), the Issuer will be merged with and into Merger Sub (the &#147;Merger&#148;). As a result
of the Merger, Merger Sub will continue as the surviving corporation (the &#147;Surviving Corporation&#148;)
and a wholly-owned subsidiary of the Reporting Person. The Merger Agreement is included as Exhibit
1 hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Effective Time of the Merger (the &#147;Effective Time&#148;), each Share issued and outstanding
immediately prior to the Effective Time (other than any Shares held in the treasury of the Issuer,
Shares owned by the Reporting Person or any direct or indirect subsidiary of the Reporting Person,
unvested restricted Shares and Shares which are held by stockholders who shall have not voted in
favor of the Merger or consented thereto in writing and who shall have demanded and perfected
appraisal rights for such Shares in accordance with California Law (&#147;Dissenting Stockholders&#148;))
shall be canceled and converted into the right to receive (i)&nbsp;US$11.00 in cash, (ii)&nbsp;0.23 common
shares of the Reporting Person and (iii)&nbsp;common shares of the Reporting Person equal to US$5.50
divided by simple average of the daily weighted average sales price of Parent Common Stock on the
Toronto Stock Exchange for each of the 20 consecutive trading days ending on (and including) the
second trading day prior to the Effective Time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Effective Time, the directors and officers of Merger Sub shall be the directors and
officers of the Surviving Corporation and the certificate of incorporation and bylaws of Merger Sub
will be the certificate of incorporation and bylaws of the Surviving Corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Merger, it is expected that the Shares will be delisted from the Nasdaq
and will be deregistered under federal securities laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with entering into the Merger Agreement, the Reporting Person and Merger Sub
entered into a Stockholders Support Agreement, dated as of April&nbsp;14, 2005 (the &#147;Stockholders
Support Agreement&#148;), with Aram H. Keith, Margie R. Keith and the Aram H. Keith and Margie R. Keith
Revocable Trust dated October&nbsp;23, 1989 (the &#147;Stockholders&#148;). The purpose of the Stockholders
Support Agreement is to facilitate and increase the likelihood that the Merger will be consummated.
As a result of the Stockholders Support Agreement, the Reporting Person is deemed to share voting
power over the Shares beneficially owned by the Stockholders. The Stockholders Support Agreement
is included as Exhibit&nbsp;2 hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Stockholders Support Agreement, the Stockholders, among other things, have
granted an irrevocable proxy to the Reporting Person to vote, at any meeting of the stockholders of
the Issuer, all of such Stockholder&#146;s 1,366,217 Shares (i)&nbsp;in favor of the approval of the Merger
Agreement, (ii)&nbsp;against any action, agreement or transaction (other than the Merger Agreement or
the Merger) or proposal that would result in a breach of any covenant, representation or warranty
or any other obligation or agreement of the Issuer under the Merger Agreement or that could result
in any of the conditions to the Issuer&#146;s obligations under the


<P align="center" style="font-size: 10pt">Page 4 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Merger Agreement not being fulfilled, and (iii)&nbsp;in favor of any other matter necessary to the
consummation of the Merger and considered and voted upon by the stockholders of the Issuer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References to and descriptions of the Merger Agreement and the Stockholders Support Agreement
as set forth in this Item&nbsp;4 are qualified in their entirety by reference to the Merger Agreement
and the Stockholders Support Agreement, which are attached as exhibits to this Statement and
incorporated by reference in this Item&nbsp;4.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the best of the Reporting Person&#146;s knowledge, this item does not apply to any person
named in Annex A hereto.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;5. Interest in Securities of the Issuer.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;and (b)&nbsp;As a result of the Stockholders Agreement, the Reporting Person is deemed to
beneficially own the 1,366,217 Shares currently beneficially owned by the
Stockholders. Such Shares
represent approximately 17.2% of the outstanding Shares (based upon the 7,985,085 Shares reported
by the Company to be issued and outstanding as of April&nbsp;2, 2005 in the Merger Agreement). To the
best of the Reporting Person&#146;s knowledge, none of the persons listed in Annex A hereto beneficially
owns any Shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;- (d)&nbsp;Except as described herein, neither the Reporting Person nor, to the best of its
knowledge, any of the persons listed in Schedule&nbsp;A attached hereto, has acquired or disposed of any
Shares during the past 60&nbsp;days. Furthermore, the Reporting Person does not know of any other person
with the right to receive or the power to direct the receipt of dividends from, or the proceeds
from the sale of, the securities covered by this Statement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Not applicable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References to and descriptions of the Merger
Agreement and the Stockholders Support Agreement as set forth in this Item
5 are qualified in their entirety by reference to the Merger
Agreement and the Stockholders Support Agreement, which are
attached as exhibits to this Statement and incorporated by reference in this Item&nbsp;5.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the
Issuer.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as described above or elsewhere in this Statement or incorporated by reference in this
Statement, there are no contracts, arrangements, understandings or relationships (legal or
otherwise) between the Reporting Person or, to the best of its knowledge, any of the persons named
in Schedule&nbsp;A hereto, or between the Reporting Person and any other person or, to the best of its
knowledge, any person named in Schedule&nbsp;A hereto and any other person with respect to any
securities of the Issuer.


<P align="center" style="font-size: 10pt">Page 5 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7. Materials to be Filed as Exhibits.</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement and Plan of Merger and Reorganization, dated as of
April&nbsp;14, 2005, among Stantec Inc., Stantec Consulting
California Inc. and The Keith Companies, Inc.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stockholders Support Agreement, dated as of March&nbsp;14, 2005,
among Stantec Inc., Stantec Consulting California Inc., Aram
H. Keith, Margie R. Keith and the Aram H. Keith and Margie R.
Keith Revocable Trust dated October&nbsp;23, 1989.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">Page 6 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.


<P align="left" style="font-size: 10pt">Dated: April&nbsp;18, 2005


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STANTEC INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;&nbsp;
Jeffrey S. Lloyd</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Jeffrey S. Lloyd</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President and General Counsel</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">Page 7 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>SCHEDULE A</B>



<P align="center" style="font-size: 10pt"><B>ADDITIONAL INFORMATION CONCERNING THE REPORTING PERSONS</B>



<P align="left" style="font-size: 10pt"><B>Stantec Inc.</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Residence/Address of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Occupation/</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Principal Employment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Employment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Citizenship</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ronald P. Triffo
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stantec Inc., 10160 &#150; 112<BR>
Street, Edmonton, Canada<BR>
T5K 2L6
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the
Board, Stantec Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony P.
Franceschini
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stantec Inc., 10160 &#150; 112<BR>
Street, Edmonton, Canada<BR>
T5K 2L6
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President &#038; CEO,
Stantec Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Neilson A. Bertholf Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Phoenix, AZ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">United States</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert J. Bradshaw
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Toronto, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, Contor<BR>
Industries Limited
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E. John Finn
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Madision, CT
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">United States</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William D. Grace
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Edmonton, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Susan E. Hartman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rochester, NY
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and
Owner, The Hartman
Group
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">United States</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert R. Mesel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kiawah Island, SC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">United States</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">D.W. Wilson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stantec Inc., 10160 &#150; 112<BR>
Street, Edmonton, Canada<BR>
T5K 2L6
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and
CFO, Stantec Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jeffrey S. Lloyd
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stantec Inc., 10160 &#150; 112<BR>
Street, Edmonton, Canada<BR>
T5K 2L6
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President,
Secretary and
General Counsel,
Stantec Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">Page 8 of 8 Pages
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><U><B>EXHIBIT INDEX</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement and Plan of Merger and Reorganization, dated as of
April&nbsp;14, 2005, among Stantec Inc., Stantec Consulting
California Inc. and The Keith Companies, Inc.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stockholders Support Agreement, dated as of March&nbsp;14, 2005,
among Stantec Inc., Stantec Consulting California Inc., Aram
H. Keith, Margie R. Keith and the Aram H. Keith and Margie R.
Keith Revocable Trust dated October&nbsp;23, 1989.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>t16403exv99w1.htm
<DESCRIPTION>AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;1</B>



<P align="left" style="font-size: 10pt"><HR size="1" noshade align="center" color="#000000">


<P align="center" style="font-size: 10pt">AGREEMENT AND PLAN OF MERGER AND REORGANIZATION



<P align="center" style="font-size: 10pt">among



<P align="center" style="font-size: 10pt">STANTEC INC.,



<P align="center" style="font-size: 10pt">STANTEC CONSULTING CALIFORNIA INC.



<P align="center" style="font-size: 10pt">and



<P align="center" style="font-size: 10pt">THE KEITH COMPANIES, INC.



<P align="center" style="font-size: 10pt">Dated as of April&nbsp;14, 2005



<P align="left" style="font-size: 10pt"><HR size="1" noshade align="center" color="#000000">


<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE I</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">THE MERGER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1.01. The Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1.02. Effective Time; Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1.03. Effect of the Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1.04. Articles of Incorporation; By-laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1.05.&nbsp;Directors and Officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:45px; text-indent:-15px">CONVERSION OF SECURITIES; EXCHANGE OF CERTIFICATES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.01. Conversion of Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.02. Exchange of Certificates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.03. Stock Transfer Books</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.04. Company Stock Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.05. Company Restricted Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.06. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.07. Dissenting Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.08. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2.09. Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE III</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:60px; text-indent:-15px">REPRESENTATIONS AND WARRANTIES OF THE COMPANY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.01. Organization and Qualification; Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.02. Articles of Incorporation and By-laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.03. Capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.04. Authority Relative to This Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.05. No Conflict; Required Filings and Consents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.06. Permits; Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.07. SEC Filings; Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.08. Absence of Certain Changes or Events</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.09. Absence of Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.10. Employee Benefit Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.11. Labor and Employment Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.12. Real Property; Title to Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.13. Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.14. Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.15. Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.16. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">i
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.17. Material Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.18. Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.19. Board Approval; Vote Required</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.20. Customers and Suppliers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.21. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.22. Interested Party Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.23. Opinion of Financial Advisor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3.24. Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE IV</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:30px; text-indent:-15px">REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.01. Corporate Organization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.02. Articles of Incorporation and By-Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.03. Capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.04. Authority Relative to This Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.05. No Conflict; Required Filings and Consents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.06. Permits; Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.07. ASC Filings; Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.08. Absence of Certain Changes or Events</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.09. Absence of Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.10. Stockholder Vote</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.11. Operations of Merger Sub</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.12. Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.13. Board Approval</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.14. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.15. Ownership of Company Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.16. Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.17. Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4.18. Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE V</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">CONDUCT OF BUSINESS PENDING THE MERGER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 5.01. Conduct of Business by the Company Pending the Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 5.02. Conduct of Business by Parent Pending the Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE VI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ADDITIONAL AGREEMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.01. Registration Statement; Proxy Statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.02. Company Stockholders&#146; Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.03. Access to Information; Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.04. No Solicitation of Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.05. Employee Benefit Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.06. Directors&#146; and Officers&#146; Indemnification and Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">ii
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.07. Notification of Certain Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.08. Company Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.09. Further Action; Reasonable Best Efforts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.10. Plan of Reorganization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.11. Obligations of Merger Sub</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.12. Consents of Accountants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.13. Listing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.14. Subsequent Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.15. Public Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.16. Board of Directors of Parent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.17. Company Contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6.18. Unvested Company Restricted Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE VII</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">CONDITIONS TO THE MERGER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 7.01. Conditions to the Obligations of Each Party</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 7.02. Conditions to the Obligations of Parent and Merger Sub</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 7.03. Conditions to the Obligations of the Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE VIII</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">TERMINATION, AMENDMENT AND WAIVER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8.01. Termination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8.02. Effect of Termination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8.03. Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8.04. Amendment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8.05. Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">ARTICLE IX</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:75px; text-indent:-15px">GENERAL PROVISIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.01. Non Survival of Representations, Warranties and Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.02. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.03. Certain Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.04. Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.05. Entire Agreement; Assignment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.06. Parties in Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.07. Specific Performance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.08. Governing Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.09. Headings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.10. Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9.11. Waiver of Jury Trial</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">iii
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT AND PLAN OF MERGER AND REORGANIZATION, dated as of April&nbsp;14, 2005 (this
&#147;<U>Agreement</U>&#148;), among Stantec Inc., a Canadian corporation (&#147;<U>Parent</U>&#148;), Stantec
Consulting California Inc., a California corporation and a wholly owned subsidiary of Parent
(&#147;<U>Merger Sub</U>&#148;), and The Keith Companies, Inc., a California corporation (the
&#147;<U>Company</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, upon the terms and subject to the conditions of this Agreement and in accordance with
the California Corporations Code (the &#147;<U>CCC</U>&#148;), Parent and the Company will enter into a
business combination transaction pursuant to which the Company will merge with and into Merger Sub
(the &#147;<U>Merger</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of the Company (the &#147;<U>Company Board</U>&#148;) has (i)
determined that the Merger is consistent with and in furtherance of the long-term business strategy
of the Company and fair to, and in the best interests of, the Company and its stockholders and has
approved and adopted this Agreement and declared its advisability and approved the Merger and the
other transactions contemplated by this Agreement (the &#147;<U>Transactions</U>&#148;) and (ii)&nbsp;has
recommended the approval and adoption of this Agreement by the stockholders of the Company;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of Parent (the &#147;<U>Parent Board</U>&#148;) has determined that the
Merger is consistent with and in furtherance of the long-term business strategy of Parent and fair
to, and in the best interests of, Parent and its stockholders and has approved and adopted this
Agreement, the Merger and the other Transactions;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Parent and Company CEO (&#147;<U>Stockholder</U>&#148;) have entered into a Support Agreement,
dated as of the date hereof (the &#147;<U>Support Agreement</U>&#148;), in connection with this Agreement,
the Merger and the other Transactions; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, for United States federal income tax purposes, the Merger is intended to qualify as a
reorganization under the provisions of Section 368(a) of the United States Internal Revenue Code of
1986, as amended (the &#147;<U>Code</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
herein contained, and intending to be legally bound hereby, Parent, Merger Sub and the Company
hereby agree as follows


<P align="center" style="font-size: 10pt"><B>ARTICLE I</B>



<P align="center" style="font-size: 10pt"><B>THE MERGER</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01. <U>The Merger</U>. Upon the terms and subject to the conditions set forth
in Article&nbsp;VII, and in accordance with the CCC, at the Effective Time (as defined in Section&nbsp;1.02),
the Company will be merged with and into the Merger Sub. As a result of the Merger, the separate
corporate existence of the Company shall cease and the Merger Sub shall continue as the surviving
corporation of the Merger (the &#147;<U>Surviving Corporation</U>&#148;).
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02. <U>Effective Time; Closing</U>. On the second Business Day immediately
following the satisfaction or, if permissible, waiver of the last conditions set forth in

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Article
VII, the parties hereto shall cause the Merger to be consummated by filing this Agreement (or an
Agreement of Merger that includes only the information required by the CCC), an officers&#146;
certificate of the Company and an officers&#146; certificate of Merger Sub (together, the
&#147;<U>Certificate of Merger</U>&#148;) with the Secretary of State of the State of California, in such
form as is required by, and executed in accordance with, the relevant provisions of the CCC (the
date and time of such filing of the Certificate of Merger (or such later time as may be agreed by
each of the parties hereto and specified in the Certificate of Merger) being the &#147;<U>Effective
Time</U>&#148;). Immediately prior to such filing of the Certificate of Merger, a closing (the
&#147;<U>Closing</U>&#148;) shall be held at the offices of the Company, 19 Technology Drive, Irvine,
California 92618, or such other place as the parties shall agree, for the purpose of confirming the
satisfaction or waiver, as the case may be, of the conditions set forth in Article&nbsp;VII.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.03. <U>Effect of the Merger</U>. At the Effective Time, the effect of the Merger
shall be as provided in the applicable provisions of the CCC. Without limiting the generality of
the foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges,
powers and franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and
all debts, liabilities, obligations, restrictions, disabilities and duties of each of the Company
and Merger Sub shall become the debts, liabilities, obligations, restrictions, disabilities and
duties of the Surviving Corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.04. <U>Articles of Incorporation; By-laws</U>. (a)&nbsp;At the Effective Time, subject
to Section&nbsp;6.06, the Articles of Incorporation of Merger Sub, as in effect immediately prior to the
Effective Time, shall be the Articles of Incorporation of the Surviving Corporation until
thereafter amended as provided by law and such Articles of Incorporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless otherwise determined by Parent prior to the Effective Time, and subject to Section
6.06, at the Effective Time, the By-laws of Merger Sub, as in effect immediately prior to the
Effective Time, shall be the By-laws of the Surviving Corporation until thereafter amended as
provided by law, the Articles of Incorporation of the Surviving Corporation and such By-laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.05. <U>Directors and Officers</U>. The directors of Merger Sub immediately prior
to the Effective Time shall be the initial directors of the Surviving Corporation, each to hold
office in accordance with the Articles of Incorporation and By-laws of the Surviving Corporation,
and the officers of Merger Sub immediately prior to the Effective Time shall be the initial
officers of the Surviving Corporation, in each case until their respective successors are duly
elected or appointed and qualified or until the earlier of their death, resignation or removal.


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>ARTICLE II</B>



<P align="center" style="font-size: 10pt"><B>CONVERSION OF SECURITIES; EXCHANGE OF CERTIFICATES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01. <U>Conversion of Securities</U>. At the Effective Time, by virtue of the
Merger and without any action on the part of Merger Sub, the Company or the holders of any of the
following securities:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;each share of common stock, par value US$0.001 per share, of the Company (&#147;<U>Company
Common Stock</U>,&#148; all issued and outstanding shares of Company Common Stock being hereinafter
collectively referred to as the &#147;<U>Shares</U>&#148;) issued and outstanding immediately prior to the
Effective Time (other than any Shares to be cancelled pursuant to Section&nbsp;2.01(i), substituted for
pursuant to Section&nbsp;2.05 and any Dissenting Shares (as hereinafter defined)) shall be cancelled and
shall be converted automatically, subject to Section&nbsp;2.01 (h)&nbsp;and Section&nbsp;2.02, into the right to
receive:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>(A)&nbsp;0.23 common shares, without par value, of Parent (&#147;<U>Parent Common
Stock</U>&#148;) (the &#147;<U>Fixed Ratio Stock</U>&#148;) and (B)&nbsp;that number of shares of Parent
Common Stock equal to US$16.50 divided by the Average Stock Price (the &#147;<U>Floating
Ratio Stock</U>&#148; and, together with the Fixed Ratio Stock, the &#147;<U>Exchange
Stock</U>&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>cash equal the sum of (A)&nbsp;US$16.50 and (B)&nbsp;the product of (x)&nbsp;0.23 and (y)
Average Stock Price (the &#147;<U>Cash Payment</U>&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>(A)&nbsp;US$11.00, (B)&nbsp;the Fixed Ratio Stock and (C)&nbsp;that number of Parent Common
Stock equal to US$5.50 divided by the Average Stock Price (the &#147;<U>US$5.50 Stock</U>&#148;
and, together with the Fixed Ratio Stock, the &#147;<U>Mixed Election Stock</U>&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
<TD width="1%">&nbsp;</TD>
<TD>such other combination of shares of Parent Common Stock and cash determined in
accordance with Section&nbsp;2.01(e) or Section&nbsp;2.01(f)</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">(the &#147;<U>Merger Consideration,</U>&#148; which when used herein shall be deemed to include cash in lieu
of any fractional shares of Parent Common Stock to which a holder is entitled pursuant to Section
2.02(e)), in each case upon surrender by the holder of such share of Company Common Stock of the
Certificate representing such share in accordance with Section&nbsp;2.02. &#147;<U>Average Stock Price</U>&#148;
means the simple average of the daily weighted average sales price of Parent Common Stock on the
Toronto Stock Exchange (&#147;<U>TSX</U>&#148;), as reported by Bloomberg L.P., for each of the 20
consecutive trading days ending on (and including) the second trading day prior to the Effective
Time. The weighted average sales price for each trading day shall be converted from Canadian
dollars to U.S. dollars at the noon buying rate quoted by the Federal Reserve Bank of New York on
such trading day;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The aggregate number of shares of Parent Common Stock (the &#147;<U>Aggregate Stock
Amount</U>&#148;) to be issued as Merger Consideration shall be equal to the product of (i)&nbsp;the Mixed
Election Stock and (ii)&nbsp;the difference of (A)&nbsp;the number of Shares outstanding immediately prior to
the Effective Time minus (B)&nbsp;the sum of (x)&nbsp;the number of Shares held by any Subsidiary of the
Company or Parent or any Subsidiary of Parent, (y)&nbsp;the number of Shares of unvested Company
Restricted Stock and (z)&nbsp;the number of Dissenting Shares. The aggregate


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">amount of cash to be paid
by Parent as Merger Consideration (the &#147;<U>Aggregate Cash Amount</U>&#148;) shall be equal to the
product of (i)&nbsp;US$11.00 and (ii)&nbsp;the difference of (A)&nbsp;the number of Shares outstanding immediately
prior to the Effective Time minus (B)&nbsp;the sum of (x)&nbsp;the number of Shares held by any Subsidiary of
the Company or Parent or any Subsidiary of Parent, (y)&nbsp;the number of Shares of unvested Company
Restricted Stock and (z)&nbsp;the number of Dissenting Shares. Any right to receive cash as all or part
of the Merger Consideration shall be without interest.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to the allocation and election procedures set forth in this Section&nbsp;2.01, each
record holder of Shares immediately prior to the Effective Time (other than Shares held by the
Company or any Subsidiary of the Company or Parent or any Subsidiary of Parent and Dissenting
Shares) will be entitled to elect to receive:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>cash per Share equal the Cash Payment (a &#147;<U>Cash Election</U>&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>the number of shares, or fraction thereof, of Parent Common Stock per Share
equal to the Exchange Stock (a &#147;<U>Stock Election</U>&#148;); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>the &#147;<U>Mixed Consideration</U>&#148; per Share, which consists of US$11.00 in
cash and the Mixed Election Stock (a &#147;<U>Mixed Election</U>&#148;, and together with the
Cash Election and the Stock Election, the &#147;<U>Elections</U>&#148;);</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Each holder shall make the same Election with respect to all of such holder&#146;s Shares. All such
Elections shall be made on a form in compliance with the terms of Section&nbsp;2.02 (a &#147;<U>Form of
Election</U>&#148;). Holders of record of Shares who hold such shares as nominees, trustees or in other
representative capacities (a &#147;<U>Holder Representative</U>&#148;) may submit multiple Forms of
Election, <U>provided</U> that such Holder Representative certifies that each such Form of
Election covers all the Shares held by such Holder Representative for a particular beneficial
owner. For purposes hereof, a holder of Company Common Stock who does not make a valid Election
prior to the Election Deadline, including by failure to return the Form of Election to the Exchange
Agent prior to the Election Deadline and as a result of revocation, shall be deemed to have made a
Mixed Election. If Parent or the Exchange Agent shall determine that any purported Cash Election
or Stock Election was not properly made, such purported Cash Election or Stock Election shall be
deemed to be of no force and effect and the stockholder making such purported Cash Election or
Stock Election shall for purposes hereof be deemed to have made a Mixed Election.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;At the Effective Time, each Share covered by a Mixed Election (a &#147;<U>Mixed Election
Share</U>&#148;) shall be converted into and exchanged for the right to receive from Parent the Mixed
Consideration;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;At the Effective Time, each Share covered by a Stock Election (a &#147;<U>Stock Election
Share</U>&#148;) shall be converted into the right to receive the Exchange Stock; <U>provided</U>,
<U>however</U>, if after taking into account the Elections made and deemed made pursuant to
Section&nbsp;2.01(c), the number of shares of Parent Common Stock to be issued as Merger Consideration
would exceed the Aggregate Stock Amount, then, at the Effective Time, each Stock Election Share
shall be converted into the right to receive:


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>a number of shares (the &#147;<U>Pro Rata Number of Shares</U>&#148;) of Parent Common
Stock equal to the quotient determined by (A)&nbsp;the difference of the Aggregate Stock
Amount minus the number of shares of Parent Common Stock to be issued in exchange for
Mixed Election Shares, divided by (B)&nbsp;the number of Stock Election Shares; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>an amount in cash equal to the product of (A)&nbsp;the difference of (x)&nbsp;the
Exchange Stock, minus (y)&nbsp;the Pro Rata Number of Shares, multiplied by (B)&nbsp;the Average
Stock Price;</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;At the Effective Time, each Share covered by a Cash Election (a &#147;<U>Cash Election
Share</U>&#148;) shall be converted into the right to receive the Cash Payment; <U>provided</U>,
<U>however</U>, if, taking into account the Elections made and deemed made pursuant to Section
2.01(c), the amount of cash to be paid by Parent as Merger Consideration would exceed the Aggregate
Cash Amount, then, at the Effective Time, each Cash Election Share shall be converted into the
right to receive:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>an amount in cash (the &#147;<U>Pro Rata Amount of Cash</U>&#148;) equal to the quotient
determined by (A)&nbsp;the difference of the Aggregate Cash Amount minus the amount of cash
to be paid in exchange for Mixed Election Shares, divided by (B)&nbsp;the number of Cash
Election Shares; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>a number of shares of Parent Common Stock equal to the quotient of (A)&nbsp;the
difference of (x)&nbsp;the Cash Payment, minus (y)&nbsp;the Pro Rata Amount of Cash, divided by
(B)&nbsp;the Average Stock Price;</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;The Company shall mail the Form of Election to each person who is a holder of record of
Company Common Stock on the record date for the Company Stockholders&#146; Meeting contemplated by
Section&nbsp;6.02 and shall use its reasonable best efforts to make the Form of Election available to
all persons who become holders of Company Common Stock during the period between such record date
and the Election Deadline;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;To be effective, a Form of Election must be properly completed and signed by a record
holder of Company Common Stock and submitted to the Exchange Agent and accompanied by the
Certificates as to which the Election is being made. All Certificates so surrendered shall be
subject to the exchange procedures set forth in Section&nbsp;2.02. The Exchange Agent will have the
discretion to determine whether Forms of Election have been properly completed, signed and
submitted or revoked and to disregard immaterial defects in Forms of Election. The decision of the
Exchange Agent in such matters shall be conclusive and binding. Neither Parent nor the Exchange
Agent will be under any obligation to notify any person of any
defect in a Form of Election submitted to the Exchange Agent. The Exchange Agent shall also
make all computations contemplated by this Section&nbsp;2.01 and all such computations shall be
conclusive and binding on the holders of Company Common Stock absent manifest error. The Form of
Election and the Certificates must be received by the Exchange Agent by the close of business on
the last business day prior to the date on which the vote with respect to the adoption and approval
of this Agreement and the approval of the Merger at the Company Stockholders&#146; Meeting contemplated
by Section&nbsp;6.02 hereof is held (the &#147;<U>Election Deadline</U>&#148;) in order to be


<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">effective. The
Exchange Agent shall not accept guarantee of delivery of Certificates in lieu of physical delivery
of Certificates. An Election may be revoked, but only by written notice received by the Exchange
Agent prior to the Election Deadline. Upon any such revocation, unless a duly completed Form of
Election, accompanied by a Certificate, is thereafter submitted in accordance with this Section
2.01(i), such shares shall be deemed to be Mixed Election Shares. In the event that this Agreement
is terminated pursuant to the provisions hereof and any Certificates have been transmitted to the
Exchange Agent pursuant to the provisions hereof, such Certificates shall be promptly be returned
without charge to the person submitting same;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;each Share held in the treasury of the Company and each Share owned by Merger Sub, Parent
or any direct or indirect wholly owned subsidiary of Parent or of the Company immediately prior to
the Effective Time shall be cancelled without any conversion thereof and no payment or distribution
shall be made with respect thereto; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;each share of common stock, par value US$0.01 per share, of Merger Sub issued and
outstanding immediately prior to the Effective Time shall be one validly issued, fully paid and
nonassessable share of common stock, par value US$0.01 per share, of the Surviving Corporation;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this Agreement, if:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Parent or the Company receives written notice from its counsel specified in
Article&nbsp;VII to the effect that such counsel is unlikely to be able to deliver a tax
opinion required pursuant to Section&nbsp;7.02(l) or Section&nbsp;7.03(e), as the case may be, on
the date of the Effective Time; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>instead of depositing the Aggregate Cash Amount and the Aggregate Stock Amount
in accordance with Section&nbsp;2.02(a), Parent deposits, or causes to be deposited
(including as contemplated by Section&nbsp;7.02(f)), with the Exchange Agent (as defined
below), for the benefit of the holders of Shares, for exchange in accordance with this
Article&nbsp;II through the Exchange Agent, cash in an amount equal to US$22.00 per Share,</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">Parent shall have the right, at its sole and absolute discretion, to reverse the Merger so that
Merger Sub will merge with and into the Company, such that the separate corporate existence of
Merger Sub shall cease and the Company shall continue as the Surviving Corporation of the Merger (a
&#147;<U>Reverse-Subsidiary Merger</U>&#148;). A Reverse-Subsidiary Merger would not be intended to
constitute a &#147;plan of reorganization&#148; within the meaning of section 1.368-2(g) of the income tax
regulations promulgated under the Code. In the event Parent effects the acquisition of the Company
pursuant to a Reverse Subsidiary Merger in accordance with this Section&nbsp;2.01(k), (x)
all references to the &#147;Merger&#148; in this Agreement and all other related agreements, documents and
instruments, shall be deemed to be to the &#147;Reverse-Subsidiary Merger,&#148; all references to the
&#147;Surviving Corporation&#148; shall be deemed to be to the Company, all references to Merger
Consideration shall be deemed to mean US$22.00 per Share, and this Agreement and (y)&nbsp;the conditions
in Section&nbsp;7.02(l) and Section&nbsp;7.03(e) shall be deemed to be waived.



<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02. <U>Exchange of Certificates</U>. (a) <U>Exchange Agent</U>. Immediately
prior to the Effective Time, Parent shall deposit, or shall cause to be deposited (including as
contemplated by Section&nbsp;7.02(f)), with such bank or trust company that may be designated by Parent
and is reasonably satisfactory to the Company (the &#147;<U>Exchange Agent</U>&#148;), for the benefit of
the holders of Shares, for exchange in accordance with this Article&nbsp;II through the Exchange Agent,
cash equal to the Aggregate Cash Amount and certificates representing the Aggregate Stock Amount,
and cash, from time to time as required to make payments in lieu of any fractional shares pursuant
to Section&nbsp;2.02(e) (such cash and certificates for shares of Parent Common Stock, together with any
dividends or distributions with respect thereto, being hereinafter referred to as the &#147;<U>Exchange
Fund</U>&#148;). The Exchange Agent shall, pursuant to irrevocable instructions, deliver the cash and
shares of Parent Common Stock contemplated to be issued pursuant to Section&nbsp;2.01. Except as
contemplated by Section&nbsp;2.02(g) hereof, the Exchange Fund shall not be used for any other purpose.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Exchange Procedures</U>. As promptly as practicable after the Effective Time, Parent
shall cause the Exchange Agent to mail to each person who was, at the Effective Time, a holder of
record of Shares entitled to receive the Merger Consideration pursuant to Section&nbsp;2.01(a): (i)&nbsp;a
letter of transmittal (which shall be in customary form and shall specify that delivery shall be
effected, and risk of loss and title to the certificates evidencing such Shares (the
&#147;<U>Certificates</U>&#148;) shall pass, only upon proper delivery of the Certificates to the Exchange
Agent) and (ii)&nbsp;instructions for use in effecting the surrender of the Certificates pursuant to
such letter of transmittal. Upon surrender to the Exchange Agent of a Certificate for
cancellation, together with such letter of transmittal, duly completed and validly executed in
accordance with the instructions thereto, and such other documents as may be required pursuant to
such instructions, the holder of such Certificate shall be entitled to receive in exchange therefor
the Merger Consideration, and any dividends or other distributions to which such holder is entitled
pursuant to Section&nbsp;2.02(c), and the Certificate so surrendered shall forthwith be cancelled. In
the event of a transfer of ownership of Shares that is not registered in the transfer records of
the Company the Merger Consideration and any dividends or other distributions to which such holder
is entitled pursuant to Section&nbsp;2.02(c) may be issued to a transferee if the Certificate
representing such Shares is presented to the Exchange Agent, accompanied by all documents required
to evidence and effect such transfer and by evidence that any applicable stock transfer taxes have
been paid. Until surrendered as contemplated by this Section&nbsp;2.02, each Certificate shall be
deemed at all times after the Effective Time to represent only the right to receive upon such
surrender the Merger Consideration, and any dividends or other distributions to which such holder
is entitled pursuant to Section&nbsp;2.02(c). The Merger Consideration (plus any dividends or other
distributions to which such holder is entitled pursuant to Section&nbsp;2.02(c)) shall be delivered to
each former stockholder of the Company by the Exchange Agent as promptly as practicable following
surrender of a Certificate and a duly executed letter of transmittal.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Distributions with Respect to Unexchanged Shares of Parent Common Stock</U>. No
dividends or other distributions declared or made after the Effective Time with respect to the
Parent Common Stock with a record date after the Effective Time shall be paid to the holder of any
unsurrendered Certificate with respect to the shares of Parent Common Stock represented thereby,
and no cash payment shall be paid to any such holder pursuant to Section&nbsp;2.01(a) or 2.02(e), until
the holder of such Certificate shall surrender such Certificate. Subject to the effect of escheat,
tax or other applicable Laws (as defined in Section&nbsp;3.05(a)), following


<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">surrender of any such
Certificate, there shall be paid to the holder of the certificates representing whole shares of
Parent Common Stock issued as part of the Merger Consideration in exchange therefor, (i)&nbsp;promptly,
the amount of any cash payable with respect to a fractional share of Parent Common Stock to which
such holder is entitled pursuant to Section&nbsp;2.02(e) and the amount of dividends or other
distributions with a record date after the Effective Time and theretofore paid with respect to such
whole shares of Parent Common Stock, and (ii)&nbsp;at the appropriate payment date, the amount of
dividends or other distributions, with a record date after the Effective Time but prior to
surrender and a payment date occurring after surrender, payable with respect to such whole shares
of Parent Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>No Further Rights in Company Common Stock</U>. The Merger Consideration issued upon
surrender of a Certificate in accordance with the terms of this Article&nbsp;II (including, with respect
to Shares, any cash paid pursuant to Section&nbsp;2.02(c) or (e)) shall be deemed to have been issued in
full satisfaction of all rights pertaining to the Shares formerly represented by such Certificate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>No Fractional Shares</U>. No certificates or scrip representing fractional shares of
Parent Common Stock shall be issued upon the surrender for exchange of Certificates, and such
fractional share interests will not entitle the owner thereof to vote or to any other rights of a
shareholder of Parent. Each holder of a fractional share interest shall be paid an amount in cash
(without interest and subject to the amount of any withholding taxes as contemplated in Section
2.02(i)) equal to the product obtained by multiplying (i)&nbsp;such fractional share interest to which
such holder (after taking into account all fractional share interests then held by such holder)
would otherwise be entitled by (ii)&nbsp;the simple average of the daily weighted average sales price
of Parent Common Stock on the TSX, as reported by Bloomberg L.P., for each of the 20 consecutive
trading days ending on (and including) the second trading day prior to the Effective Time (the
weighted average sales price for each trading day shall be converted from Canadian dollars to U.S.
dollars at the noon buying rate quoted by the Federal Reserve Bank of New York on such trading
day). As promptly as practicable after the determination of the amount of cash, if any, to be paid
to holders of fractional share interests, the Exchange Agent shall so notify Parent, and Parent
shall deposit such amount with the Exchange Agent and shall cause the Exchange Agent to forward
payments to such holders of fractional share interests subject to and in accordance with the terms
of Sections&nbsp;2.02(b) and (c).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Adjustments to Merger Consideration</U>. The Merger Consideration shall be adjusted to
reflect appropriately the effect of any stock split, reverse stock split, stock dividend (including
any dividend or distribution of securities convertible into Parent Common Stock or Company Common
Stock), extraordinary cash dividends, reorganization, recapitalization, reclassification,
combination, exchange of shares or other like change with respect to Parent
Common Stock or Company Common Stock occurring on or after the date hereof and prior to the
Effective Time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Termination of Exchange Fund</U>. Any portion of the Exchange Fund that remains
undistributed to the holders of the Company Common Stock for twelve months after the Effective Time
shall be delivered to Parent, upon demand, and any holders of the Shares who have not theretofore
complied with this Article&nbsp;II shall thereafter look only to Parent for the Merger Consideration,
and any dividends or other distributions with respect to the Parent


<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Common Stock to which they are
entitled pursuant to Section&nbsp;2.02(c). Any portion of the Exchange Fund remaining unclaimed by
holders of Shares as of a date which is immediately prior to such time as such amounts would
otherwise escheat to or become property of any government entity shall, to the extent permitted by
applicable Law, become the property of Parent free and clear of any claims or interest of any
person previously entitled thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>No Liability</U>. None of the Exchange Agent, Parent or the Surviving Corporation
shall be liable to any holder of Shares for any such Shares (or dividends or distributions with
respect thereto), or cash delivered to a public official pursuant to any abandoned property,
escheat or similar Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Withholding Rights</U>. Each of the Surviving Corporation and Parent shall be
entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement
to any holder of Shares such amounts as it is required to deduct and withhold with respect to the
making of such payment under the Code, or any provision of state, local or foreign tax law. To the
extent that amounts are so withheld by the Surviving Corporation or Parent, as the case may be,
such withheld amounts shall be treated for all purposes of this Agreement as having been paid to
the holder of the Shares in respect of which such deduction and withholding was made by the
Surviving Corporation or Parent, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Lost Certificates</U>. If any Certificate shall have been lost, stolen or destroyed,
upon the making of an affidavit of that fact by the person claiming such Certificate to be lost,
stolen or destroyed and, if required by the Surviving Corporation, the posting by such person of a
bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any
claim that may be made against it with respect to such Certificate, the Exchange Agent will issue
in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration, and any
dividends or other distributions to which the holders thereof are entitled pursuant to Section
2.02(c), subject to Section&nbsp;2.02(g).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03. <U>Stock Transfer Books</U>. At the Effective Time, the stock transfer books
of the Company shall be closed and there shall be no further registration of transfers of Shares
thereafter on the records of the Company. From and after the Effective Time, the holders of
Certificates representing Shares outstanding immediately prior to the Effective Time shall cease to
have any rights with respect to such Shares, except as otherwise provided in this Agreement or by
Law. On or after the Effective Time, any Certificates presented to the Exchange Agent or Parent
for any reason shall be exchanged for the Merger Consideration, and any dividends or other
distributions to which the holders thereof are entitled pursuant to Section&nbsp;2.02(c).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04. <U>Company Stock Options</U>. At the Effective Time, all options to purchase
Company Common Stock, whether or not exercisable and whether or not vested (the &#147;<U>Company Stock
Options</U>&#148;), outstanding under the Company&#146;s Amended and Restated 1994 Stock Incentive Plan, in
each case as such may have been amended, supplemented or modified (collectively, the &#147;<U>Company
Stock Option Plans</U>&#148;) shall be cancelled without further rights. At least 20&nbsp;days prior to the
Effective Time, the Company shall offer to purchase each Company Stock Option which as of the
Effective Time would be unexercisable and unvested (the &#147;<U>Unvested Options</U>&#148;), at a price
equal to the Cash Payment less the exercise price of such


<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Unvested Option ( the &#147;<U>Option
Consideration</U>&#148;), which offer to purchase shall be conditional upon the approval of this
Agreement by the Stockholders of the Company and the satisfaction or waiver of all of the
conditions hereunder. Prior to the Effective Time, Parent shall have deposited, or shall have
caused to be deposited with the Exchange Agent, for the benefit of holders of the Unvested Options
that surrender such Unvested Options for purchase by the Company for exchange in accordance with
this Section&nbsp;2.04, cash equal to the aggregate Option Consideration (such cash being hereinafter
referred to as the &#147;<U>Option Exchange Fund</U>&#148;). The Exchange Agent shall, pursuant to
irrevocable instructions, deliver the cash contemplated to be delivered to the holders of the
Unvested Options pursuant to this Section&nbsp;2.04 out of the Option Exchange Fund. The Option
Exchange Fund shall not be used for any other purpose.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05. <U>Company Restricted Stock</U>. At the Effective Time, each share of Company
Common Stock outstanding immediately prior to the Effective Time that is unvested or is subject to
a repurchase option, risk of forfeiture or other condition under the Company Stock Option Plans or
any applicable restricted stock purchase agreement or other agreement with the Company
(&#147;<U>Company Restricted Stock</U>&#148;) shall be substituted with Exchange Stock, which shall be
subject to the same terms and conditions (including, without limitation, vesting conditions) as
such Company Restricted Stock, except that current references to the Company shall, after the
Effective Time, mean Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.06. &#091;<U>Reserved</U>&#093;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.07. <U>Dissenting Shares</U>. (a)&nbsp;Notwithstanding anything in this Agreement to
the contrary, any Shares that are issued and outstanding immediately prior to the Effective Time
and held by a holder (a &#147;<U>Dissenting Shareholder</U>&#148;) who has not voted in favor of the Merger
or consented thereto in writing and who has dissented in accordance with Chapter&nbsp;13 of the CCC
(&#147;<U>Dissenting Shares</U>&#148;) as well as any Shares (a &#147;<U>Potential Dissenting Shares</U>&#148;) held
by a holder (a &#147;<U>Potential Dissenting Shareholder</U>&#148;) that are not voted in favor of the
Merger but that have not dissented in accordance with Chapter&nbsp;13 of the CCC, shall not be converted
into a right to receive the Merger Consideration in accordance with Section&nbsp;2.01, but shall
represent and become the right to receive such consideration as may be determined to be due such
Dissenting Shareholder or Potential Dissenting Shareholder pursuant to the laws of the State of
California, unless and until such holder fails to perfect or withdraws or otherwise loses such
holder&#146;s right to dissent under Chapter&nbsp;13 of the CCC. If, after the Effective Time, such holder
fails to perfect or withdraws or
otherwise loses such holder&#146;s right to dissent, such former Dissenting Shares or Potential
Dissenting Shares held by such holder shall be treated as if they had been converted as of the
Effective Time into a right to receive, upon surrender as provided above, such holders ratable
portion of the Merger Consideration, without any interest or dividends thereon, in accordance with
Section&nbsp;2.01. In this Agreement, references to &#147;Dissenting Shareholders&#148; shall be deemed to
include Potential Dissenting Shareholders and references to &#147;Dissenting Shares&#148; shall be deemed to
include Potential Dissenting Shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall give Parent (i)&nbsp;prompt notice of any demands for appraisal received by
the Company, withdrawals of such demands, and any other instruments served pursuant to the CCC and
received by the Company and (ii)&nbsp;the opportunity to direct all negotiations and proceedings with
respect to demands for appraisal under the CCC. The


<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Company shall not, except with the prior
written consent of Parent, make any payment with respect to any demands for appraisal or offer to
settle or settle any such demands.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.08. <U>&#091;Reserved&#093;</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.09. <U>Affiliates</U>. Notwithstanding anything to the contrary herein, no Merger
Consideration shall be delivered to a person who may be deemed an &#147;affiliate&#148; of the Company in
accordance with Section&nbsp;6.08 hereof for purposes of Rule&nbsp;145 under the Securities Act until such
person has executed and delivered to Parent an executed copy of the affiliate letter contemplated
in Section&nbsp;6.08 hereof.


<P align="center" style="font-size: 10pt"><B>ARTICLE III</B>



<P align="center" style="font-size: 10pt"><B>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an inducement to Parent and Merger Sub to enter into this Agreement, the Company hereby
represents and warrants to Parent and Merger Sub that, except as disclosed in the Company&#146;s
Disclosure Schedule, which has been prepared by the Company and delivered to Parent and Merger Sub
concurrently with the execution and delivery of this Agreement (the &#147;<U>Company Disclosure
Schedule</U>&#148;), or in the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2004
(as filed with the SEC on March&nbsp;10, 2005), Current Reports on Form 8-K (as filed with the SEC on
February&nbsp;10, 2005 and February&nbsp;14, 2005) and Definitive Proxy Statement on Schedule&nbsp;14A (as filed
with the SEC on April&nbsp;12, 2005), to the Company&#146;s knowledge:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.01. <U>Organization and Qualification; Subsidiaries</U>. (a)&nbsp;Each of the Company
and each subsidiary of the Company (each a &#147;<U>Subsidiary</U>&#148;) is a corporation or limited
liability company, as the case may be, duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and has the requisite corporate or other power and
authority and all necessary governmental approvals to own, lease and operate its properties and to
carry on its business as it is now being conducted, except where the failure to be so organized,
existing or in good standing or to have such power, authority and governmental approvals would not,
individually or in the aggregate,
have a Company Material Adverse Effect (as defined in Section&nbsp;9.03(a)). Each of the Company
and each Subsidiary is duly qualified or licensed as a foreign corporation or limited liability
company, as the case may be, to do business, and is in good standing, in each jurisdiction where
the character of the properties owned, leased or operated by it or the nature of its business makes
such qualification or licensing necessary, except for such failures to be so qualified or licensed
and in good standing that would not, individually or in the aggregate, have a Company Material
Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A true and complete list of all the Subsidiaries, together with the jurisdiction of
incorporation of each Subsidiary and the percentage of the outstanding capital stock of each
Subsidiary owned by the Company and each other Subsidiary, is set forth in Section&nbsp;3.01(b) of the
Company Disclosure Schedule. Except as disclosed in Section&nbsp;3.01(b) of the Company Disclosure
Schedule, the Company does not directly or indirectly own any equity or similar interest in, or any
interest convertible into or exchangeable or exercisable for any


<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">equity or similar interest in, any
corporation, partnership, joint venture or other business association or entity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.02. <U>Articles of Incorporation and By-laws</U>. The Company has heretofore made
available to Parent a complete and correct copy of the Articles of Incorporation and the By-laws or
equivalent organizational documents, each as amended to date, of the Company. Such Articles of
Incorporation, By-laws or equivalent organizational documents are in full force and effect.
Neither the Company nor any Subsidiary is in violation of any of the provisions of its Articles of
Incorporation, By-laws or equivalent organizational documents. The Company has heretofore provided
to the Parent the minutes of the meetings of the Board of Directors of the Company and any
committee thereof in respect of meetings of the Board of Directors and such committees held since
January&nbsp;1, 2002 through the date hereof for which minutes have been prepared and approved.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.03. <U>Capitalization</U>. (a)&nbsp;The authorized capital stock of the Company
consists of (i)&nbsp;100,000,000 Shares and (ii)&nbsp;5,000,000 shares of preferred stock, par value $0.001
per share (&#147;<U>Company Preferred Stock</U>&#148;). As of April&nbsp;2, 2005, (i)&nbsp;7,985,085 Shares were
issued and outstanding, all of which are validly issued, fully paid and nonassessable, (ii)&nbsp;no
Shares are held in the treasury of the Company, (iii)&nbsp;no Shares are held by the Subsidiaries, and
(iv)&nbsp;230,995 Shares are reserved for future issuance pursuant to outstanding Company Stock Options,
Company Restricted Stock and other purchase rights (the &#147;<U>Company Stock Awards</U>&#148;) granted
pursuant to the Company Stock Option Plans. As of the date of this Agreement, no shares of Company
Preferred Stock are issued and outstanding. Except as set forth in this Section&nbsp;3.03 there are no
options, warrants or other rights, agreements, arrangements or commitments of any character
relating to the issued or unissued capital stock of the Company or any Subsidiary or obligating the
Company or any Subsidiary to issue or sell any shares of capital stock of, or other equity
interests in, the Company or any Subsidiary. As of April&nbsp;2, 2005, there were (x)&nbsp;265,510
outstanding Unvested Options exercisable for an aggregate of 265,510 Shares at a weighted average
exercise price of US$12.27 per Share, and (y)&nbsp;512,026 Company Stock Options (excluding Unvested
Options), exercisable for an aggregate of 512,026 Shares at a weighted average exercise price of
US$8.23 per Share. As of the date of this Agreement, there were 117,668 Shares of unvested Company
Restricted Stock. The Company has made available to Parent accurate and complete copies of all
Company Stock Option Plans pursuant to which Company has granted the Company Stock Awards that are
currently outstanding and the form of all stock award agreements evidencing such Company Stock
Awards. All Shares subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instruments pursuant to which they are issuable, will be duly authorized, validly
issued, fully paid and nonassessable. There are no outstanding contractual obligations of the
Company or any Subsidiary to repurchase, redeem or otherwise acquire any Shares or any capital
stock of any Subsidiary or to provide funds to, or make any investment (in the form of a loan,
capital contribution or otherwise) in, any Subsidiary or any other person. All outstanding Shares,
all outstanding Company Stock Awards, and all outstanding shares of capital stock of each
subsidiary of the Company have been issued and granted in compliance with (i)&nbsp;all applicable
securities laws and other applicable Laws (as defined below) and (ii)&nbsp;all requirements set forth in
applicable contracts.


<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each outstanding share of capital stock of each Subsidiary is duly authorized, validly
issued, fully paid and nonassessable, and each such share is owned by the Company or another
Subsidiary free and clear of all security interests, liens, claims, pledges, options, rights of
first refusal, agreements, limitations on the Company&#146;s or any Subsidiary&#146;s voting rights, charges
and other encumbrances of any nature whatsoever.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.04. <U>Authority Relative to This Agreement</U>. The Company has all necessary
corporate power and authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the Transactions. The execution and delivery of this Agreement by the
Company and the consummation by the Company of the Transactions have been duly and validly
authorized by all necessary corporate action, and no other corporate proceedings on the part of the
Company are necessary to authorize this Agreement or to consummate the Transactions (other than,
with respect to the Merger, the approval and adoption of this Agreement by the holders of a
majority of the then-outstanding Shares and the filing and recordation of appropriate merger
documents as required by the CCC). This Agreement has been duly and validly executed and delivered
by the Company and, assuming the due authorization, execution and delivery by Parent and Merger
Sub, constitutes a legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms (except as may be limited by bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting the rights of creditors generally and the
availability of equitable remedies). No state takeover statute is applicable to the Merger or the
Transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.05. <U>No Conflict; Required Filings and Consents</U>. (a)&nbsp;The execution and
delivery of this Agreement by the Company do not, and the performance of this Agreement by the
Company will not, (i)&nbsp;conflict with or violate the Articles of Incorporation or By-laws or any
equivalent organizational documents of the Company or any Subsidiary, (ii)&nbsp;conflict with or violate
any United States or non-United States statute, law, ordinance, regulation, rule, code, executive
order, injunction, judgment, decree or other order (&#147;<U>Law</U>&#148;) applicable to the Company or any
Subsidiary or by which any property or
asset of the Company or any Subsidiary is bound or affected, or (iii)&nbsp;result in any breach of
or constitute a default (or an event which, with notice or lapse of time or both, would become a
default) under, or give to others any right of termination, amendment, acceleration or cancellation
of, or result in the creation of a lien or other encumbrance on any property or asset of the
Company or any Subsidiary pursuant to, any Material Contract (as defined below), except, with
respect to clauses (ii)&nbsp;and (iii), for any such conflicts, violations, breaches, defaults or other
occurrences which would not, individually or in the aggregate, have a Company Material Adverse
Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution and delivery of this Agreement by the Company do not, and the performance of
this Agreement by the Company will not, require any consent, approval, authorization or permit of,
or filing with or notification to, any United States federal, state, county or local or other
foreign government, governmental, regulatory or administrative authority, agency, instrumentality
or commission or any court, tribunal, or judicial or arbitral body (a &#147;<U>Governmental
Authority</U>&#148;), except (i)&nbsp;for applicable requirements, if any, of the Exchange Act, state
securities or &#147;blue sky&#148; laws (&#147;<U>Blue Sky Laws</U>&#148;), the pre-merger notification requirements
of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the &#147;<U>HSR Act</U>&#148;) and
filing and recordation of appropriate merger documents as required by the CCC, and (ii)&nbsp;where the
failure to obtain such consents, approvals, authorizations or permits, or to


<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">make such filings or
notifications, would not, individually or in the aggregate, individually or in the aggregate, have
a Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.06. <U>Permits; Compliance</U>. Each of the Company and the Subsidiaries is in
possession of all franchises, grants, authorizations, licenses, permits, easements, variances,
exceptions, consents, certificates, approvals and orders of any Governmental Authority necessary
for each of the Company or the Subsidiaries to own, lease and operate its properties or to carry on
its business as it is now being conducted (the &#147;<U>Company Permits</U>&#148;), except where the failure
to have, or the suspension or cancellation of, any of the Company Permits would not, individually
or in the aggregate, have a Company Material Adverse Effect. As of the date of this Agreement, no
suspension or cancellation of any of the Company Permits is pending or threatened, except where the
failure to have, or the suspension or cancellation of, any of the Company Permits would not,
individually or in the aggregate, have a Company Material Adverse Effect. Neither the Company nor
any Subsidiary is in conflict with, or in default, breach or violation of, (a)&nbsp;any Law applicable
to the Company or any Subsidiary or by which any property or asset of the Company or any Subsidiary
is bound or affected, or (b)&nbsp;any note, bond, mortgage, indenture, contract, agreement, lease,
license, Company Permit, franchise or other instrument or obligation to which the Company or any
Subsidiary is a party or by which the Company or any Subsidiary or any property or asset of the
Company or any Subsidiary is bound, except for any such conflicts, defaults, breaches or violations
that would not, individually or in the aggregate, have a Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.07. <U>SEC Filings; Financial Statements</U>. (a)&nbsp;The Company has filed all
forms, reports and documents required to be filed by it with the Securities and Exchange Commission
(the &#147;<U>SEC</U>&#148;) since December&nbsp;31, 2004, and has heretofore previously made available to Parent, in the form filed with the SEC, (i)&nbsp;its
Annual Reports on Form 10-K for the fiscal years ended December&nbsp;31, 2002, 2003 and 2004,
respectively, (ii)&nbsp;all proxy statements relating to the Company&#146;s meetings of stockholders (whether
annual or special) held since May&nbsp;20, 2003 and (iii)&nbsp;all other forms, reports and other
registration statements filed by the Company with the SEC since December&nbsp;31, 2004 (the forms,
reports and other documents referred to in clauses (i), (ii), (iii)&nbsp;and (iv)&nbsp;above being,
collectively, the &#147;<U>Company SEC Reports</U>&#148;). The Company SEC Reports (i)&nbsp;complied in all
material respects with either the requirements of the Securities Act of 1933, as amended (the
&#147;<U>Securities Act</U>&#148;), or the Securities Exchange Act of 1934, as amended (the &#147;<U>Exchange
Act</U>&#148;), as the case may be, and the rules and regulations promulgated thereunder, and (ii)&nbsp;did
not, at the time they were filed, or, if amended, as of the date of such amendment, contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading, except that to the extent information as of a later date
conflicts with information of an earlier date, the information of such later date shall be deemed
to modify such earlier information. No Subsidiary is required to file any form, report or other
document with the SEC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the consolidated financial statements (including, in each case, any notes thereto)
contained in the Company SEC Reports was prepared in accordance with United States generally
accepted accounting principles (&#147;<U>GAAP</U>&#148;) applied on a consistent basis (except that
unaudited financial statements are subject to year-end audit adjustments and may not contain notes
in full compliance with GAAP) throughout the periods indicated (except as may be


<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">indicated in the
notes thereto) and each fairly presents, in all material respects, the consolidated financial
position, results of operations and cash flows of the Company and its consolidated Subsidiaries as
at the respective dates thereof and for the respective periods indicated therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as and to the extent set forth on, or reserved against, the consolidated balance
sheet of the Company and the Subsidiaries as at December&nbsp;31, 2004, including the notes thereto (the
&#147;<U>2004 Balance Sheet</U>&#148;), neither the Company nor any Subsidiary has any liability or
obligation of any nature (whether accrued, absolute, contingent or otherwise), except for
liabilities and obligations, incurred in the ordinary course of business consistent with past
practice since December&nbsp;31, 2004, which have not had, individually or in the aggregate, a Company
Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company has responded to all comments or requests received from the SEC or the staff
of the SEC since January&nbsp;1, 2002 and the SEC or the staff of the SEC, as the case may be, has not
made any supplemental comments or requests with respect to the matters described therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Company has timely filed all certifications and statements required by (x)&nbsp;Rule&nbsp;13a-14
or Rule&nbsp;15d-14 under the Exchange Act or (y)&nbsp;18 U.S.C. Section&nbsp;1350 (Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002) with respect to any Company SEC Report. The Company maintains
disclosure controls and procedures required by Rule&nbsp;13a-15 or Rule&nbsp;15d-15 under the Exchange Act;
such controls and procedures are effective to ensure that all material information concerning the
Company and its Subsidiaries is made known on a timely basis to the individuals responsible for the
preparation of the Company&#146;s SEC filings.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Company maintains and will continue to maintain books and records in accordance with
GAAP, in all material respects and to the extent that GAAP is applicable to the maintenance of
books and records. The Company and its Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i)&nbsp;transactions are executed in
accordance with management&#146;s general or specific authorizations, (ii)&nbsp;transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP, (iii)&nbsp;access to
assets is permitted only in accordance with management&#146;s general or specific authorization and (iv)
the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Accounts receivable, book debts and other debts due or accruing to the Company and its
Subsidiaries, taken as a whole, reflected on the 2004 Balance Sheet or arising thereafter, have
arisen, in all material respects, from <U>bona</U> <U>fide</U><I>, </I>arm&#146;s length transactions between
unrelated parties in the ordinary course of business consistent with past practice and, subject to
an allowance for doubtful accounts that has been reflected on the books and records of the Company
and its Subsidiaries, as applicable, in accordance with GAAP and the regulations of the SEC, which
are collectible without setoff or counterclaim, except as would not, individually or in the
aggregate, have a Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Accounts payable of the Company and its Subsidiaries, taken as a whole, reflected on the
2004 Balance Sheet or arising thereafter are, in all material respects, the result of


<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">bona fide
transactions in the ordinary course of business and have been paid or are not yet due or payable.
Since the date of the 2004 Balance Sheet, the Company and its Subsidiaries have not altered in any
material respects their practices for the payment of such accounts payable, including the timing of
such payment, except as would not, individually or in the aggregate, have a Company Material
Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The work in progress reflected on the 2004 Balance Sheet was owned by the Company and its
Subsidiaries on December&nbsp;31, 2004. The value of such work in progress at December&nbsp;31, 2004 has
been recorded appropriately and represents work in progress that can be invoiced and collected in
the ordinary course of business, except as would not, individually or in the aggregate, have a
Company Material Adverse Effect .


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The Company and its Subsidiaries have appropriately accrued project liabilities on
its financial statements in accordance with GAAP, in all material respects.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The Company and its Subsidiaries have appropriately deferred the recognition of revenues
on projects where amounts have been invoiced in advance of the underlying work having been
completed in accordance with GAAP, in all material respects.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.08. <U>Absence of Certain Changes or Events</U>. Since December&nbsp;31, 2004, except
as expressly contemplated by this Agreement (a)&nbsp;the Company and the Subsidiaries have conducted
their businesses in all material respects only in the ordinary course and in a manner consistent
with past practice, and (b)&nbsp;there has not been any Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.09. <U>Absence of Litigation</U>. Except as set forth in Section&nbsp;3.09 of the
Company Disclosure Schedule, there is no (i)&nbsp;litigation, suit, claim, action, proceeding or
investigation (an &#147;<U>Action</U>&#148;) pending or threatened against the Company or any Subsidiary, or
any property or asset of the Company or any Subsidiary, before any Governmental Authority, or (ii)
material property or asset of the Company or any Subsidiary that is subject to any continuing order
of, consent decree, settlement agreement or other similar written agreement with, or continuing
investigation by, any Governmental Authority, or any order, writ, judgment, injunction, decree,
determination or award of any Governmental Authority that, in each case, would, individually or in
the aggregate, have a Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.10. <U>Employee Benefit Plans</U>. (a)&nbsp;Section&nbsp;3.10(a) of the Company Disclosure
Schedule lists (i)&nbsp;all employee benefit plans (as defined in Section&nbsp;3(3) of the Employee
Retirement Income Security Act of 1974, as amended (&#147;<U>ERISA</U>&#148;)) and all other material
employment benefit agreements or arrangements including, without limitation, all bonus, stock
option, stock purchase, restricted stock, incentive, deferred compensation, retiree medical or life
insurance, supplemental retirement, severance or other benefit plans, programs or arrangements, and
employment, termination, severance or other contracts or agreements to which the Company or any
Subsidiary is a party, which are maintained, contributed to or sponsored by the Company or any
Subsidiary for the benefit of any current or former employee, officer or director of the Company or
any Subsidiary, (ii)&nbsp;each employee benefit plan for which the Company or any Subsidiary could incur
liability under Section&nbsp;4069 of ERISA in the event such plan has been or were to be terminated,
(iii)&nbsp;any plan in respect of which the Company or any


<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Subsidiary could incur liability under
Section 4212(c) of ERISA (collectively, the &#147;<U>Plans</U>&#148;). Neither the Company nor any
Subsidiary has any express or implied commitment, whether legally enforceable or not, (i)&nbsp;to
create, incur liability with respect to or cause to exist any other Plan, or (ii)&nbsp;to modify, change
or terminate any Plan, other than with respect to a modification, change or termination required by
ERISA, the Code or this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;None of the Plans is a multiemployer plan (within the meaning of Section&nbsp;3(37) or
4001(a)(3) of ERISA) (a &#147;<U>Multiemployer Plan</U>&#148;) or a single employer pension plan (within the
meaning of Section&nbsp;4001(a)(15) of ERISA) for which the Company or any Subsidiary could incur
liability under Section&nbsp;4063 or 4064 of ERISA (a &#147;<U>Multiple Employer Plan</U>&#148;). None of the
Plans (i)&nbsp;obligates the Company or any Subsidiary to pay separation, severance, termination or
similar-type benefits solely or partially as a result of any transaction contemplated by this
Agreement, or (ii)&nbsp;obligates the Company or any Subsidiary to make any payment or provide any
benefit as a result of a &#147;change in control&#148;, within the meaning of such term under Section&nbsp;280G of
the Code. None of the Plans provides for or promises retiree medical, disability or life insurance
benefits to any current or former employee, officer or director of the Company or any Subsidiary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Plan is now and always has been operated in all material respects in accordance with
its terms and the requirements of all applicable Laws including, without limitation, ERISA and the
Code. The Company and the Subsidiaries have performed all
obligations required to be performed by them under, are not in any respect in default under or
in violation of, and have no knowledge of any default or violation by any party to, any Plan. No
Action is pending or threatened with respect to any Plan (other than claims for benefits in the
ordinary course) and no fact or event exists that could reasonably be expected to give rise to any
such Action. The Company and the Subsidiaries are in compliance with the applicable requirements of
Section&nbsp;4980(B) of the Code, with respect to each Plan that is a &#147;group health plan&#148;, as such term
is defined in Section&nbsp;5000(b)(1) of the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Each Plan that is intended to be qualified under Section 401(a) of the Code or Section
401(k) of the Code has timely received a favorable determination letter from the Internal Revenue
Service (the &#147;<U>IRS</U>&#148;) covering all of the provisions applicable to the Plan for which
determination letters are currently available that the Plan is so qualified and each trust
established in connection with any Plan which is intended to be exempt from federal income taxation
under Section 501(a) of the Code has received a determination letter from the IRS that it is so
exempt, and no fact or event has occurred since the date of such determination letter or letters
from the IRS to adversely affect the qualified status of any such Plan or the exempt status of any
such trust. Each Plan that is intended to be qualified under Section 401(a) of the Code has been
submitted to the IRS for a determination that &#147;GUST&#148; amendments have been appropriately made prior
to the end of the GUST remedial period. Each Plan that is intended to be qualified under Section
401(a) of the Code has adopted good faith amendments designed to comply with the requirements of
the Economic Growth Tax Relief Reconciliation Act, and such amendments were effective prior to the
applicable amendment deadline.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;There has not been any prohibited transaction (within the meaning of Section&nbsp;406 of ERISA
or Section&nbsp;4975 of the Code) with respect to any Plan. Neither the Company nor any Subsidiary has
incurred any liability under, arising out of or by operation of


<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Title IV of ERISA (other than
liability for premiums to the Pension Benefit Guaranty Corporation arising in the ordinary course),
including, without limitation, any liability in connection with (i)&nbsp;the termination or
reorganization of any employee benefit plan subject to Title IV of ERISA, or (ii)&nbsp;the withdrawal
from any Multiemployer Plan or Multiple Employer Plan, and no fact or event exists which could
reasonably be expected to give rise to any such liability.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All contributions, premiums or payments required to be made with respect to any Plan have
been made on or before their due dates. All such contributions have been fully deducted for income
tax purposes and no such deduction has been challenged or disallowed by any Governmental Authority
and no fact or event exists which could reasonably be expected to give rise to any such challenge
or disallowance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;In addition to the foregoing, with respect to each Plan that is not subject to United
States law (a &#147;<U>Non-U.S. Benefit Plan</U>&#148;):


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all employer and employee contributions to each Non-U.S. Benefit Plan required
by law or by the terms of such Non-U.S. Benefit Plan have been made, or, if applicable,
accrued in accordance with normal accounting practices, and a pro rata contribution for
the period prior to and including the date of this Agreement has been made or accrued;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>the fair market value of the assets of each funded Non-U.S. Benefit Plan, the
liability of each insurer for any Non-U.S. Benefit Plan funded through insurance or the
book reserve established for any Non-U.S. Benefit Plan, together with any accrued
contributions, is sufficient to procure or provide for the benefits determined on any
ongoing basis (actual or contingent) accrued to the date of this Agreement with respect
to all current and former participants under such Non-U.S. Benefit Plan according to
the actuarial assumptions and valuations most recently used to determine employer
contributions to such Non-U.S. Benefit Plan, and no Transaction shall cause such assets
or insurance obligations to be less than such benefit obligations; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>each Non-U.S. Benefit Plan required to be registered has been registered and
has been maintained in good standing with applicable regulatory authorities. Each
Non-U.S. Benefit Plan has been operated in full compliance with all applicable
non-United States laws.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.11. <U>Labor and Employment Matters</U>. (a)&nbsp;Except as set forth in Section
3.11(a) of the Company Disclosure Schedule, (i)&nbsp;there are no material labor controversies, material
labor strikes, material slowdowns, material work stoppages or material lockouts pending or
threatened between the Company or any Subsidiary and any of their respective employees and neither
the Company nor any Subsidiary has experienced any such controversy, strike, slowdown, work
stoppage or lockout within the past three years; (ii)&nbsp;neither the Company nor any Subsidiary is a
party to any collective bargaining agreement or other labor union contract applicable to persons
employed by the Company or any Subsidiary, nor has any union certification or decertification been
filed or threatened that relates to employees of the


<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Company or any of its Subsidiaries and no
union authorization campaign has been conducted within the 12&nbsp;months prior to the date of this
Agreement; (iii)&nbsp;neither the Company nor any Subsidiary has breached or otherwise failed to comply
with any provision of any such collective bargaining agreement or labor union contract, and there
are no grievances outstanding against the Company or any Subsidiary under any such collective
bargaining or material labor union agreement or contract; and (iv)&nbsp;there are no unfair labor
practice complaints pending against the Company or any Subsidiary before the National Labor
Relations Board (or similar foreign agency). The consent of each labor union which is a party to
the collective bargaining agreements listed in Section&nbsp;3.11 of the Company Disclosure Schedule is
not required to consummate the Transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company and the Subsidiaries are in compliance, in all material respects, with all
applicable laws relating to the employment of labor, including those related to wages, hours,
collective bargaining, worker classification and the payment and withholding of taxes and other
sums as required by the appropriate Governmental Authority and have withheld and paid to the
appropriate Governmental Authority or are holding for payment not yet due to such Governmental
Authority all amounts required to be withheld from employees of the Company or any Subsidiary and
are not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with
any of the foregoing, except in each case those that would not, individually or in the aggregate,
have a Company Material Adverse Effect. The Company and the Subsidiaries have paid in full to all
employees or adequately accrued for in accordance with
GAAP consistently applied all wages, salaries, commissions, bonuses, benefits and other
compensation due to or on behalf of such employees and there is no material claim with respect to
payment of wages, salary, vacation, improper worker classification or overtime pay that has been
asserted or is now pending or threatened before any Governmental Authority with respect to any
persons currently or formerly employed by the Company or any Subsidiary, except in each case those
that would not, individually or in the aggregate, have a Company Material Adverse Effect. Neither
the Company nor any Subsidiary is a party to, or otherwise bound by, any consent decree with, or
citation by, any Governmental Authority relating to employees or employment practices, except those
that would not, individually or in the aggregate, have a Company Material Adverse Effect. There is
no charge or proceeding with respect to a violation of any occupational safety or health standards
that has been asserted or is now pending or threatened with respect to the Company, except in each
case those that would not, individually or in the aggregate, have a Company Material Adverse
Effect. There is no charge of discrimination in employment or employment practices, for any
reason, including, without limitation, age, gender, race, religion or other legally protected
category, which has been asserted or is now pending or threatened before the United States Equal
Employment Opportunity Commission, or any other Governmental Authority in any jurisdiction in which
the Company or any Subsidiary has employed or employ any person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.12. <U>Real Property; Title to Assets</U>. (a)&nbsp;Section&nbsp;3.12 of the Company
Disclosure Schedule sets forth a complete and accurate list and description of all real property
leased, subleased or otherwise occupied by the Company or its Subsidiaries (the &#147;<U>Leased Real
Property</U>&#148;). The Company and its subsidiaries do not own and have never owned any real
property. All of the leases or subleases of any Leased Property (the &#147;<U>Leases</U>&#148;) are valid,
binding and in full force and effect and there is not, under any such Leases, any existing material
default


<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">or event of default (or event which, with notice or lapse of time, or both, would
constitute a default) by the Company or any Subsidiary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There are no material contractual or material legal restrictions that preclude or restrict
the ability to use any real property leased by the Company or any Subsidiary for the purposes for
which it is currently being used. There are no material defects or material adverse physical
conditions affecting the real property, and improvements thereon leased by the Company or any
Subsidiary other than those that would not, individually or in the aggregate, have a Company
Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.13. <U>Intellectual Property</U>. Except as would not, individually or in the
aggregate, have a Company Material Adverse Effect, (a)&nbsp;the conduct of the business of the Company
and the Subsidiaries as currently conducted does not infringe upon or misappropriate the
Intellectual Property rights of any third party, and no claim has been asserted to the Company that
the conduct of the business of the Company and the Subsidiaries as currently conducted infringes
upon or may infringe upon or misappropriates the Intellectual Property Rights of any third party;
(b)&nbsp;with respect to each item of Intellectual Property owned by the Company or a Subsidiary and
material to the business, financial condition or results of operations of the Company and the
Subsidiaries taken as a whole (&#147;<U>Company Owned Intellectual Property</U>&#148;), the Company or a
Subsidiary is the owner of the
entire right, title and interest in and to such Company Owned Intellectual Property and is
entitled to use such Company Owned Intellectual Property in the continued operation of its
respective business; (c)&nbsp;with respect to each item of Intellectual Property licensed to the Company
or a Subsidiary that is material to the business of the Company and the Subsidiaries as currently
conducted (&#147;<U>Company Licensed Intellectual Property</U>&#148;), the Company or a Subsidiary has the
right to use such Company Licensed Intellectual Property in the continued operation of its
respective business in accordance with the terms of the license agreement governing such Company
Licensed Intellectual Property; (d)&nbsp;the Company Owned Intellectual Property is valid and
enforceable, and has not been adjudged invalid or unenforceable in whole or in part; (e)&nbsp;each
license of the Company Licensed Intellectual Property is valid and enforceable, is binding on all
parties to such license, and is in full force and effect; and (f)&nbsp;neither the execution of this
Agreement nor the consummation of the Merger shall adversely affect any of the Company&#146;s rights
with respect to any material Company Owned Intellectual Property or any material Company Licensed
Intellectual Property.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.14. <U>Taxes</U>. The Company and the Subsidiaries have filed all United States
federal, state, local and non-United States Tax returns and reports required to be filed by them
and have paid and discharged all Taxes required to be paid or discharged, other than such payments
as are being contested in good faith by appropriate proceedings. All such Tax returns are true,
accurate and complete. Except as set forth in Section&nbsp;3.14 of the Company Disclosure Schedule,
neither the IRS nor any other United States or non-United States taxing authority or agency is now
asserting or threatening to assert against the Company or any Subsidiary any deficiency or claim
for any Taxes or interest thereon or penalties in connection therewith. Neither the Company nor
any Subsidiary has granted any waiver of any statute of limitations with respect to, or any
extension of a period for the assessment of, any Tax. The accruals and reserves for Taxes
reflected in the 2004 Balance Sheet are adequate to cover all Taxes accruable through such date
(including interest and penalties, if any, thereon) in accordance with GAAP. There are no Tax
liens upon any property or assets of the Company or any of the Subsidiaries


<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">except liens for
current Taxes not yet delinquent. Neither the Company nor any of the Subsidiaries has been
required to include in income any adjustment pursuant to Section&nbsp;481 of the Code by reason of a
voluntary change in accounting method initiated by the Company or any of the Subsidiaries, and the
IRS has not initiated or proposed any such adjustment or change in accounting method, in either
case which adjustment or change would have a Company Material Adverse Effect. Neither the Company
nor any Subsidiary has been a &#147;distributing corporation&#148; or a &#147;controlled corporation&#148; in a
distribution intended to qualify under Section 355(e) of the Code within the past five years.
Neither the Company nor any of its affiliates has taken or agreed to take any action that would
prevent the Merger from qualifying as a reorganization within the meaning of Section 368(a) of the
Code. The Company is not aware of any agreement, plan or other circumstance that would prevent the
Merger from qualifying as a reorganization within the meaning of Section 368(a) of the Code. The
Company does not have any interest in any joint venture, partnership or other entity or arrangement
that could be treated as a partnership for United States federal income tax purposes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.15. <U>Environmental Matters</U>. Except as described in Section&nbsp;3.15 of the Company Disclosure Schedule or as would not,
individually or in the aggregate, have a Company Material Adverse Effect, (a)&nbsp;none of the Company
nor any of the Subsidiaries has violated or is in violation of any Environmental Law; (b)&nbsp;none of
the properties currently or formerly owned, leased or operated by the Company or any Subsidiary
(including, without limitation, soils and surface and ground waters) are contaminated with any
Hazardous Substance; (c)&nbsp;none of the Company or any of the Subsidiaries is actually, potentially or
allegedly liable for any off-site contamination by Hazardous Substances; (d)&nbsp;none of the Company or
any of the Subsidiaries is actually, potentially or allegedly liable under any Environmental Law
(including, without limitation, pending or threatened liens); (e)&nbsp;each of the Company and each
Subsidiary has all permits, licenses and other authorizations required under any Environmental Law
(&#147;<U>Environmental Permits</U>&#148;); and (f)&nbsp;each of the Company and each Subsidiary is in compliance
with its Environmental Permits; and (g)&nbsp;neither the execution of this Agreement nor the
consummation of the Merger will require any investigation, remediation or other action with respect
to Hazardous Substances, or any notice to or consent of Governmental Authorities or third parties,
pursuant to any applicable Environmental Law or Environmental Permit.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.16. &#091;<U>Reserved</U>&#093;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.17. <U>Material Contracts</U>. (a)&nbsp;Subsections (i)&nbsp;through (viii)&nbsp;of Section
3.17(a) of the Company Disclosure Schedule list the following types of contracts and agreements to
which the Company or any Subsidiary is a party (such contracts and agreements as are required to
be set forth in Section&nbsp;3.17(a) of the Company Disclosure Schedule being the &#147;<U>Material
Contracts</U>&#148;):


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
<TD width="1%">&nbsp;</TD>
<TD>each &#147;material contract&#148; (as such term is defined in Item&nbsp;601(b)(10) of
Regulation&nbsp;S-K of the SEC) with respect to the Company and its Subsidiaries;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>each contract and agreement which is likely to involve consideration of more
than US$5,000,000, in the aggregate, in any 12-month period;</TD>
</TR>


</TABLE>
<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>any employment or consulting agreement or any other written agreement with any
other officer, employee or consultant with annual compensation in excess of US$100,000
or which includes a change of control provision or provides for severance obligations
upon termination;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iv)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all management contracts (excluding contracts (i)&nbsp;for employment or (ii)&nbsp;which
involve consideration of less than US$100,000 in any 12-month period or (iii)&nbsp;which are
terminable with no more than 90&nbsp;days notice without payment of a termination fee),
including any contracts involving the payment of royalties or other amounts calculated
based upon the revenues or income of the Company or any Subsidiary or income or
revenues related to any product of the Company or any Subsidiary to which the Company
or any Subsidiary is a party;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(v)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all contracts and agreements with any Governmental Authority to which the
Company or any Subsidiary is a party that are not for professional services or not
otherwise in the ordinary course of business;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vi)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all contracts and agreements that limit, or purport to limit, the ability of
the Company or any Subsidiary to compete in any line of business or in any geographic
area;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(vii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all material contracts or arrangements that result in any person or entity
holding a power of attorney from the Company or any Subsidiary that relates to the
Company, any Subsidiary or their respective businesses, excluding any power of attorney
entered into in the ordinary course of business consistent with past practice; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(viii)</TD>
<TD width="1%">&nbsp;</TD>
<TD>all other contracts and agreements, whether or not made in the ordinary course of
business, which the breach, non-performance, amendment, termination or the absence of
would, individually, have a Company Material Adverse Effect.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt">No contract pursuant to which the Company or any Subsidiary performs professional services in the
ordinary course of business shall constitute a Material Contract.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as would not, individually or in the aggregate, have a Company Material Adverse
Effect, (i)&nbsp;each Material Contract is a valid and binding agreement and neither the Company nor any
Subsidiary is in default of a Material Contract; (ii)&nbsp;no Material Contract has been cancelled by
the other party; (iii)&nbsp;the Company and the Subsidiaries have not received any claim of default by
the Company or the Subsidiaries under any such agreement; and (iv)&nbsp;neither the execution of this
Agreement nor the consummation of any Transaction shall constitute a default under, give rise to
cancellation rights under, any Material Contract. The Company has furnished or made available to
Parent true and complete copies of all Material Contracts, including any amendments thereto through
the date of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.18. <U>Insurance</U>. The Company and its Subsidiaries have in effect insurance
coverage with reputable insurers or are self-insured, which in respect of amounts, premiums,
assets, types and risks insured, constitutes reasonably adequate coverage against all risks
customarily insured against by companies in the same or similar lines of business as the


<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Company and its Subsidiaries and comparable in size and operations to the Company and its Subsidiaries.
The Company has made available to Parent a copy of all material insurance policies and all material
self insurance programs or arrangements relating to the business, assets and operations of the
Company and its subsidiaries (the &#147;<U>Insurance Policies</U>&#148;). Each of such Insurance Policies
is in full force and effect as of the date of this Agreement. From December&nbsp;31, 2002 through the
date hereof, none of the Company or any of its Subsidiaries has received any notice or other
communications regarding any actual or possible (a)&nbsp;cancellation of any Insurance Policy that has
not been renewed in the ordinary course of business without lapse of coverage, (b)&nbsp;invalidation of
any Insurance Policy, (c)&nbsp;refusal of any coverage or rejection of any material claim under any
Insurance Policy or (d)&nbsp;any material adjustment in the amount of any of the premiums payable with
respect to any Insurance Policy.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.19. <U>Board Approval; Vote Required</U>. (a)&nbsp;The Company Board, by resolutions duly adopted by unanimous vote of those voting at a
meeting duly called and held and not subsequently rescinded or modified in any way, has duly (i)
determined that this Agreement and the Merger are fair to and in the best interests of the Company
and its stockholders, (ii)&nbsp;approved this Agreement and the Merger, and (iii)&nbsp;recommended that the
stockholders of the Company approve and adopt this Agreement and approve the Merger and directed
that this Agreement and the Transactions be submitted for consideration by the Company&#146;s
stockholders at the Company Stockholders&#146; Meeting (as defined below).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The only vote of the holders of any class or series of capital stock of the Company
necessary to approve this Agreement, the Merger and the other Transactions is the affirmative vote
of the holders of a majority of the outstanding Shares in favor of the approval and adoption of
this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.20. <U>Customers and Suppliers</U>. Section&nbsp;3.20 of the Company Disclosure
Schedule sets forth a true and complete list of the top ten (10)&nbsp;customers of the Company and its
Subsidiaries (based on the revenue from such customer during the 12-month period ended March&nbsp;31,
2005). As of the date of this Agreement, the loss of any single customer or supplier of the
Company and its Subsidiaries would not cause a Company Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.21. <U>&#091;Reserved&#093;</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.22. <U>Interested Party Transactions</U>. Except as set forth in the Company SEC
Reports or employment or other compensation arrangements in the ordinary course, there are no
transactions, agreements, arrangements or understandings between the Company and the Subsidiaries,
on the one hand, and any affiliate (including any officer or director) thereof, (excluding any
Subsidiary of the Company that is an affiliate of the Company solely by virtue of it being a
Subsidiary of the Company). The Company and the Subsidiaries have not, since July&nbsp;30, 2002, (i)
extended or maintained credit, arranged for the extension of credit or renewed an extension of
credit in the form of a personal loan to or for any director or executive officer (or equivalent
thereof) of the Company, or (ii)&nbsp;materially modified any term of any such extension or maintenance
of credit.


<P align="center" style="font-size: 10pt">23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.23. <U>Opinion of Financial Advisor</U>. The Board of Directors of the Company has
received the written opinion of Bear Stearns &#038; Co. Inc., dated the date of this Agreement, to the
effect that, as of the date of this Agreement, the Merger Consideration is fair, from a financial
point of view, to the Company&#146;s stockholders, a copy of which opinion will be delivered to Parent
on the date of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.24. <U>Brokers</U>. No broker, finder or investment banker (other than Bear
Stearns &#038; Co. Inc.) is entitled to any brokerage, finder&#146;s or other fee or commission in connection
with the Transactions based upon arrangements made by or on behalf of the Company. The Company has
heretofore furnished to Parent a complete and correct copy of all agreements between the
Company and Bear Stearns &#038; Co. Inc. pursuant to which such firm would be entitled to any payment
relating to the Transactions.


<P align="center" style="font-size: 10pt"><B>ARTICLE IV</B>



<P align="center" style="font-size: 10pt"><B>REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an inducement to the Company to enter into this Agreement, Parent and Merger Sub hereby,
jointly and severally, represent and warrant to the Company that, except as disclosed in Parent&#146;s
(i)&nbsp;Annual Information Form dated as of March&nbsp;20, 2005; (ii)&nbsp;Management Information Circular; and
(iii)&nbsp;2004 Annual report (each as filed with the Alberta Securities Commission (the &#147;<U>ASC</U>&#148;)
on March&nbsp;31, 2005), to Parent and Merger Sub&#146;s knowledge:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.01. <U>Corporate Organization</U>. Parent is a corporation validly subsisting
under the Canada Business Corporations Act and Merger Sub is a corporation duly organized, validly
existing and in good standing under the laws of the State of California and each of them has the
requisite corporate power and authority and all necessary governmental approvals to own, lease and
operate its properties and to carry on its business as it is now being conducted, except where the
failure to be so organized, existing or in good standing or to have such power, authority and
governmental approvals would not, individually or in the aggregate, have a Parent Material Adverse
Effect (as defined in Section&nbsp;9.03(a)).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.02. <U>Articles of Incorporation and By-Laws</U>. Parent has heretofore furnished
to the Company a complete and correct copy of the Articles of Incorporation and the By-Laws of
Parent and Merger Sub, each as amended to date. Such Articles of Incorporation and By-Laws are in
full force and effect. Neither Parent nor Merger Sub is in violation of any of the provisions of
its Articles of Incorporation or By-Laws. Parent has heretofor furnished to the Company the
minutes of the meetings of the Board of Directors of Parent and any committee thereof in respect of
meetings of the Board of Directors and such committees held since January&nbsp;1, 2001 through the date
hereof for which minutes have been prepared and approved


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.03. <U>Capitalization</U>. (a)&nbsp;The authorized share capital of Parent consists of
(i)&nbsp;unlimited shares of Parent Common Stock and (ii)&nbsp;unlimited preferred shares, without par value
(&#147;<U>Parent Preferred Stock</U>&#148;). As of April&nbsp;13, 2005, (i)&nbsp;18,937,019 shares of Parent Common
Stock are issued and outstanding, all of which are validly issued, fully paid and


<P align="center" style="font-size: 10pt">24
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">non-assessable,
(ii)&nbsp;no shares of Parent Common Stock are held in the treasury of Parent (excluding shares of
Parent Common Stock purchased pursuant to Parent&#146;s normal course issuer bid which are to be
cancelled) and (iii)&nbsp;no shares of Parent Common Stock are held by subsidiaries of Parent. As of
the date of this Agreement, no shares of Parent Preferred Stock are issued and outstanding. Except
as set forth in this Section&nbsp;4.03 and except for stock options granted pursuant to the stock option plans
of Parent (the &#147;<U>Parent Stock Option Plans</U>&#148;), there are no options, warrants or other
rights, agreements, arrangements or commitments of any character relating to the issued or unissued
capital stock of Parent or Merger Sub or obligating Parent or Merger Sub to issue or sell any
shares of capital stock of, or other equity interests in, Parent or Merger Sub. All shares of
Parent Common Stock subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instruments pursuant to which they are issuable, will be duly authorized, validly
issued, fully paid and non-assessable. There are no outstanding contractual obligations of Parent
or Merger Sub to repurchase, redeem or otherwise acquire any shares of Parent Common Stock or any
capital stock of Merger Sub. There are no outstanding contractual obligations of Parent to provide
funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in,
Merger Sub or any other person excluding Parent or any subsidiary of Parent).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The authorized capital stock of Merger Sub consists of 100 shares of common stock, par
value US$0.001 per share, all of which are duly authorized, validly issued, fully paid and
non-assessable and free of any preemptive rights in respect thereof and all of which are owned by
Parent. Each outstanding share of capital stock of Merger Sub is duly authorized, validly issued,
fully paid and non-assessable and each such share is owned by Parent or Merger Sub free and clear
of all security interests, liens, claims, pledges, options, rights of first refusal, agreements,
limitations on Parent&#146;s or Merger Sub&#146;s voting rights, charges and other encumbrances of any nature
whatsoever, except where failure to own such shares free and clear would not, individually or in
the aggregate, have a Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The shares of Parent Common Stock to be issued pursuant to the Merger in accordance with
Section&nbsp;2.01 (i)&nbsp;will be duly authorized, validly issued, fully paid and non-assessable and not
subject to preemptive rights created by statute, Parent&#146;s Articles of Incorporation or By-Laws or
any agreement to which Parent is a party or is bound and (ii)&nbsp;will, when issued, be registered
under the Securities Act and the Exchange Act and registered or exempt from registration under
applicable Blue Sky Laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.04. <U>Authority Relative to This Agreement</U>. Each of Parent and Merger Sub has
all necessary corporate power and authority to execute and deliver this Agreement, to perform its
obligations hereunder and to consummate the Transactions. The execution and delivery of this
Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the
Transactions have been duly and validly authorized by all necessary corporate action, and no other
corporate proceedings on the part of Parent or Merger Sub are necessary to authorize this Agreement
or to consummate the Transactions (other than, with respect to the Merger, the filing and
recordation of appropriate merger documents as required by the CCC). This Agreement has been duly
and validly executed and delivered by Parent and Merger Sub and, assuming due authorization,
execution and delivery by the Company, constitutes a legal, valid and binding obligation of each of
Parent and Merger Sub, enforceable against each of Parent and Merger Sub in accordance with its
terms (except as may


<P align="center" style="font-size: 10pt">25
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">be limited by bankruptcy, insolvency, moratorium, reorganization or similar
laws affecting the rights of creditors generally and the availability of equitable remedies).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.05. <U>No Conflict; Required Filings and Consents</U>. (a)&nbsp;The execution and delivery of this Agreement by Parent and Merger Sub do not, and the
performance of this Agreement by Parent and Merger Sub will not, (i)&nbsp;conflict with or violate the
Articles of Incorporation or By-laws of either Parent or Merger Sub, (ii)&nbsp;assuming that all
consents, approvals, authorizations and other actions described in Section&nbsp;4.05(b) have been
obtained and all filings and obligations described in Section&nbsp;4.05(b) have been made, conflict with
or violate any law, rule, regulation, order, judgment or decree applicable to Parent or Merger Sub
or by which any property or asset of either of them is bound or affected, or (iii)&nbsp;result in any
breach of, or constitute a default (or an event which, with notice or lapse of time or both, would
become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of a lien or other encumbrance on any property or asset
of Parent or Merger Sub pursuant to, any note, bond, mortgage, indenture, contract, agreement,
lease, license, permit, franchise or other instrument or obligation to which Parent or Merger Sub
is a party or by which Parent or Merger Sub or any property or asset of either of them is bound or
affected, except, with respect to clauses (ii)&nbsp;and (iii), for any such conflicts, violations,
breaches, defaults or other occurrences which would not, individually or in the aggregate, have a
Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution and delivery of this Agreement by Parent and Merger Sub do not, and the
performance of this Agreement by Parent and Merger Sub will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any Governmental Authority, except
(i)&nbsp;for applicable requirements, if any, of the Exchange Act, Blue Sky Laws and state takeover
laws, the HSR Act and filing and recordation of appropriate merger documents as required by the
CCC, and (ii)&nbsp;where the failure to obtain such consents, approvals, authorizations or permits, or
to make such filings or notifications, would not, individually or in the aggregate, prevent or
materially delay consummation of any of the Transactions or otherwise prevent Parent or Merger Sub
from performing their material obligations under this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.06. <U>Permits; Compliance</U>. Each of Parent and Merger Sub is in possession of
all franchises, grants, authorizations, licenses, permits, easements, variances, exceptions,
consents, certificates, approvals and orders of any Governmental Entity necessary for Parent or
Merger Sub to own, lease and operate its properties or to carry on its business as it is now being
conducted (the &#147;<U>Parent Permits</U>&#148;), except where the failure to have, or the suspension or
cancellation of, any of the Parent Permits would not, individually or in the aggregate, have a
Parent Material Adverse Effect. As of the date of this Agreement, no suspension or cancellation of
any of the Parent Permits is pending or threatened, except where the failure to have, or the
suspension or cancellation of, any of the Parent Permits would not, individually or in the
aggregate, have a Parent Material Adverse Effect. Neither Parent nor Merger Sub is in conflict
with, or in default, breach or violation of, (a)&nbsp;any Law applicable to Parent or Merger Sub or by
which any property or asset of Parent or Merger Sub is bound or affected, or (b)&nbsp;any note, bond,
mortgage, indenture, contract, agreement, lease, license, Parent Permit, franchise or other
instrument or obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub
or any property or asset of Parent or Merger Sub is bound, except for any such conflicts,


<P align="center" style="font-size: 10pt">26
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">defaults,
breaches or violations that would not, individually or in the aggregate, have a Parent Material
Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.07. <U>ASC Filings; Financial Statements</U>. (a)&nbsp;Parent has filed all forms, reports and documents required to be filed by it with the
Alberta Securities Commission (&#147;<U>ASC</U>&#148;) since December&nbsp;31, 2004, and has heretofore
previously made available to the Company, in the form filed with the ASC, (i)&nbsp;the Annual
Information Forms, dated as of March&nbsp;30, 2005, March&nbsp;31, 2004 and May&nbsp;15, 2003, (ii)&nbsp;the Management
Information Circular for Annual and Special Meeting, May&nbsp;10, 2005; and (iii)&nbsp;the 2004, 2003 and
2002 Annual Reports (the form, reports and other documents referred to in clauses (i), (ii)&nbsp;and
(iii)&nbsp;being collectively, the &#147;<U>Parent Reports</U>&#148;). The Parent Reports (i)&nbsp;complied in all
material respects with the requirements of the Alberta Securities Act and the rules and regulations
promulgated thereunder, and (ii)&nbsp;did not, at the time they were filed, or, if amended, as of the
date of such amendment, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading, except that to the
extent information as of a later date conflicts with information of an earlier date, the
information of such later date shall be deemed to modify such earlier information. No subsidiary
of Parent is required to file any form, report or other document with the ASC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the consolidated financial statements (including, in each case, any notes thereto)
contained in the Parent Reports was prepared in accordance with Canadian generally accepted
accounting principles (&#147;<U>Canadian GAAP</U>&#148;) applied on a consistent basis (except that
unaudited financial statements are subject to year-end audit adjustments and may not contain notes
in full compliance with Canadian GAAP) throughout the periods indicated (except as may be indicated
in the notes thereto) and each fairly presents, in all material respects, the consolidated
financial position, results of operations and cash flows of Parent and its consolidated
subsidiaries as at the respective dates thereof and for the respective periods indicated therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as and to the extent set forth on, or reserved against, the consolidated balance
sheet of Parent and its consolidated subsidiaries as at December&nbsp;31, 2004, including the notes
thereto (the &#147;<U>Parent 2004 Balance Sheet</U>&#148;), neither the Parent nor any of its Subsidiaries
has any liability or obligation of any nature (whether accrued, absolute, contingent or otherwise),
except for liabilities and obligations, incurred in the ordinary course of business consistent with
past practice since December&nbsp;31, 2004, which have not had, individually or in the aggregate, a
Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Parent has responded to all comments or requests received from the ASC or the staff of the
ASC since January&nbsp;1, 2002 and the ASC or the staff of the ASC, as the case may be, has not made any
supplemental comments or requests with respect to the matters described therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Parent maintains and will continue to maintain a system of accounting established and
administered in accordance with Canadian GAAP, in all material respects and to the extent Canadian
GAAP is applicable to a system of accounting. Parent and its subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that


<P align="center" style="font-size: 10pt">27
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">(i)&nbsp;transactions are
executed in accordance with management&#146;s general or specific authorizations, (ii)&nbsp;transactions are
recorded as necessary to permit preparation of financial statements in conformity with Canadian
GAAP, (iii)&nbsp;access to assets is permitted only in accordance with management&#146;s general or specific authorization and (iv)&nbsp;the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Accounts receivable, book debts and other debts due or accruing to Parent and its
subsidiaries, taken as a whole, and reflected on the Parent 2004 Balance Sheet or arising
thereafter, have arisen, in al material respects, from <U>bona</U> <U>fide</U>, arm&#146;s length
transactions between unrelated parties in the ordinary course of business consistent with past
practice and, subject to an allowance for doubtful accounts that has been reflected on the books
and records of the Parent and its subsidiaries, as applicable, in accordance with Canadian GAAP and
the regulations of the ASC, which are collectible without setoff or counterclaim, except as would
not, individually or in the aggregate, have a Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Accounts payable of Parent and its subsidiaries, taken as a whole, reflected on the Parent
2004 Balance Sheet or arising thereafter are, in all material respects, the result of <U>bona</U>
<U>fide</U> transactions in the ordinary course of business and have been paid or are not yet due
or payable. Since the date of the Parent 2004 Balance Sheet, Parent and its subsidiaries have not
altered in any material respects their practices for the payment of such accounts payable,
including the timing of such payment, except as would not, individually or in the aggregate, have a
Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The work in progress reflected on the Parent 2004 Balance Sheet was owned by Parent and
its subsidiaries on December&nbsp;31, 2004. The value of such work in progress at December&nbsp;31, 2004 has
been recorded appropriately and represents work in progress that can be invoiced and collected in
the ordinary course of business, except as would not, individually or in the aggregate, have a
Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Parent and its Subsidiaries have appropriately accrued project liabilities on its
financial statements in accordance with Canadian GAAP, in all material respects.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Parent and its Subsidiaries have appropriately deferred the recognition of revenues on
projects where amounts have been invoiced in advance of the underlying work having been completed
in accordance with Canadian GAAP, in all material respects.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.08. <U>Absence of Certain Changes or Events</U>. Since December&nbsp;31, 2004 or as
expressly contemplated by this Agreement, (a)&nbsp;Parent has conducted its business only in the
ordinary course and in a manner consistent with past practice, and (b)&nbsp;there has not been any
Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.09. <U>Absence of Litigation</U>. Except as specifically disclosed in any Parent
Report filed prior to the date of this Agreement, there is no Action pending or threatened against
Parent or Merger Sub, or any property or asset of Parent or Merger Sub, before any Governmental
Authority that (a)&nbsp;individually or in the aggregate, has had or would have a Parent Material
Adverse Effect or (b)&nbsp;seeks to materially delay or prevent the consummation of the


<P align="center" style="font-size: 10pt">28
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Merger. Neither
Parent nor Merger Sub nor any material property or asset of Parent or Merger Sub is subject to any
continuing order of, consent decree, settlement agreement or other similar written agreement with, or
continuing investigation by, any Governmental Authority that would, individually or in the
aggregate, have a Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.10. <U>Stockholder Vote</U>. The sole stockholder of Merger Sub has approved this
Agreement and the consummation of the Transactions. No vote of the stockholders of Parent is
required by Law, Parent&#146;s Articles of Incorporation or Bylaws or otherwise in order for Parent and
Merger Sub to consummate the Transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.11. <U>Operations of Merger Sub</U>. Merger Sub is a direct, wholly owned
subsidiary of Parent, was formed solely for the purpose of engaging in the Transactions, has
engaged in no other business activities and has conducted its operations only as contemplated by
this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.12. <U>Taxes</U>. Parent and its subsidiaries have filed all Canadian federal,
provincial, local and non-Canadian Tax returns and reports required to be filed by them and have
paid and discharged all Taxes required to be paid or discharged, other than such payments as are
being contested in good faith by appropriate proceedings. All such Tax returns are true, accurate
and complete. Neither the Canada Revenue Agency nor any other Canadian or non-Canadian taxing
authority or agency is now asserting or threatening to assert against Parent or any subsidiary any
deficiency or claim for any Taxes or interest thereon or penalties in connection therewith.
Neither Parent nor any subsidiary has granted any waiver of any statute of limitations with respect
to, or any extension of a period for the assessment of, any Tax. The accruals and reserves for
Taxes reflected in the Parent 2004 Balance Sheet are adequate to cover all Taxes accruable through
such date (including interest and penalties, if any, thereon) in accordance with Canadian GAAP.
There are no Tax liens upon any property or assets of Parent or any of the subsidiaries except
liens for current Taxes not yet delinquent. Neither Parent nor any of its affiliates has taken or
agreed to take any action that would prevent the Merger from qualifying as a reorganization within
the meaning of Section 368(a) of the Code. Parent is not aware of any agreement, plan or other
circumstance that would prevent the Merger from qualifying as a reorganization within the meaning
of Section 368(a) of the Code. Neither Parent nor any of its subsidiaries has been required to
include in income any adjustment by reason of a voluntary change in accounting method initiated by
Parent or any of its subsidiaries, and the Canada Revenue Agency has not initiated or proposed any
such adjustment or change in accounting method, in either case, which adjustment or change would
have a Parent Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.13. <U>Board Approval</U>. The board of directors of each of Parent and Merger
Sub, by resolutions duly adopted by unanimous vote of those voting at a meeting duly called and
held and not subsequently rescinded or modified in any way, has (i)&nbsp;determined that this Agreement
and the Merger are fair and in the best interests of Parent and Merger Sub and their respective
stockholders, (ii)&nbsp;approved this Agreement and Merger, and (iii)&nbsp;in the case of the board of
directors of the Parent, have approved the registration of the Parent Common Stock to be issued in
connection with the Transactions under the Securities Act and the Exchange Act and the listing of
the Parent Common Stock for trading on the U.S. Exchange.


<P align="center" style="font-size: 10pt">29
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.14. &#091;Reserved&#093;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.15. <U>Ownership of Company Common Stock</U>. As of the date hereof, neither
Parent nor any of its subsidiaries, owns any Shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.16. <U>Brokers</U>. No broker, finder or investment banker is entitled to any
brokerage, finder&#146;s or other fee or commission in connection with the Transactions based upon
arrangements made by or on behalf of Parent or Merger Sub.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.17. <U>Intellectual Property</U>. Except as would not, individually or in the
aggregate, have a Parent Material Adverse Effect, (a)&nbsp;the conduct of the business of Parent and its
subsidiaries as currently conducted does not infringe upon or misappropriate the Intellectual
Property rights of any third party, and no claim has been asserted to Parent that the conduct of
the business of Parent and its subsidiaries as currently conducted infringes upon or may infringe
upon or misappropriates the Intellectual Property Rights of any third party; (b)&nbsp;with respect to
each item of Intellectual Property owned by Parent or a subsidiary of Parent and material to the
business, financial condition or results of operations of Parent and its subsidiaries taken as a
whole (&#147;<U>Parent Owned Intellectual Property</U>&#148;), Parent or a subsidiary of Parent is the owner
of the entire right, title and interest in and to such Parent Owned Intellectual Property and is
entitled to use such Parent Owned Intellectual Property in the continued operation of its
respective business; (c)&nbsp;with respect to each item of Intellectual Property licensed to Parent or a
subsidiary of Parent that is material to the business of Parent and its subsidiaries as currently
conducted (&#147;<U>Parent Licensed Intellectual Property</U>&#148;), Parent or a subsidiary of Parent has
the right to use such Parent Licensed Intellectual Property in the continued operation of its
business in accordance with the terms of the license agreement governing such Parent Licensed
Intellectual Property; and (d)&nbsp;Parent Owned Intellectual Property is valid and enforceable, and has
not been adjudged invalid or unenforceable in whole or in part.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.18. <U>Environmental Matters</U>. Except as would not, individually or in the
aggregate, have a Parent Material Adverse Effect, (a)&nbsp;neither Parent nor any of its subsidiaries
has violated or is in violation of any Environmental Law; (b)&nbsp;none of the properties currently or
formerly owned, leased or operated by Parent or any subsidiary of Parent (including, without
limitation, soils and surface and ground waters) are contaminated with any Hazardous Substance; (c)
neither Parent nor any of its
subsidiaries is actually, potentially or allegedly liable for any off-site contamination by
Hazardous Substances; (d)&nbsp;neither Parent nor any of its subsidiaries is actually, potentially or
allegedly liable under any Environmental Law (including, without limitation, pending or threatened
liens); (e)&nbsp;each of Parent and its subsidiaries has all Environmental Permits; and (f)&nbsp;each of the
Parent and its subsidiaries is in compliance with its Environmental Permits; and (g)&nbsp;neither the
execution of this Agreement nor the consummation of the Merger will require any investigation,
remediation or other action with respect to Hazardous Substances, or any notice to or consent of
Governmental Authorities or third parties, pursuant to any applicable Environmental Law or
Environmental Permit.


<P align="center" style="font-size: 10pt">30
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>ARTICLE V</B>



<P align="center" style="font-size: 10pt"><B>CONDUCT OF BUSINESS PENDING THE MERGER</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.01. <U>Conduct of Business by the Company Pending the Merger</U>. The Company
agrees that, between the date of this Agreement and until the earlier of the termination of this
Agreement or the Effective Time, except as set forth in Section&nbsp;5.01 of the Company Disclosure
Schedule or as expressly contemplated by any other provision of this Agreement, unless Parent shall
otherwise consent in writing (which consent will not be unreasonably withheld or delayed):



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the businesses of the Company and the Subsidiaries shall be conducted only in, and
the Company and the Subsidiaries shall not take any action except in, the ordinary course of
business and in a manner consistent with past practice; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company shall use its reasonable best efforts to preserve substantially intact
the business organization of the Company and the Subsidiaries, to keep available the
services of the current officers, key employees and key consultants of the Company and the
Subsidiaries and to preserve the current advantageous relationships of the Company and the
Subsidiaries with customers, suppliers and other persons with which the Company or any
Subsidiary has significant business relations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By way of amplification and not limitation, except as expressly contemplated by any other
provision of this Agreement or as set forth in Section&nbsp;5.01 of the Company Disclosure Schedule,
neither the Company nor any Subsidiary shall, between the date of this Agreement and until the
earlier of the termination of this Agreement or the Effective Time, do, any of the following
without the prior written consent of Parent (which consent will not be unreasonably withheld or
delayed):



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend or otherwise change its Articles of Incorporation or By-laws or equivalent
organizational documents;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;issue any shares of any class of capital stock of the Company or any
Subsidiary, or any options, warrants, convertible securities or other rights of any kind to
acquire any shares of such capital stock, or any other ownership interest (including,
without limitation, any phantom interest), of the Company or any Subsidiary (except for
issuances of Shares issuable pursuant to Company Stock Awards outstanding on the date
of this Agreement) or (ii)&nbsp;sell, pledge, dispose of, grant or encumber any material
assets of the Company or any Subsidiary, except in the ordinary course of business and in a
manner consistent with past practice or pursuant to contracts in force on the date hereof;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare, set aside, make or pay any dividend or other distribution, payable in
cash, stock, property or otherwise, with respect to any of its capital stock, except for
dividends by any direct or indirect wholly-owned Subsidiary to the Company or any other
wholly-owned Subsidiary;


<P align="center" style="font-size: 10pt">31
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reclassify, combine, split, subdivide or redeem, or purchase or otherwise acquire,
directly or indirectly, any of its capital stock (other than in connection with the cashless
exercise of Company Stock Options outstanding on the date hereof);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i)&nbsp;acquire (including, without limitation, by merger, consolidation, or
acquisition of stock or assets or any other business combination) any corporation,
partnership, other business organization or any division thereof or any material amount of
assets; (ii)&nbsp;incur any indebtedness for borrowed money or issue any debt securities or
assume, guarantee or endorse, or otherwise become responsible for, the obligations of any
person, or make any loans or advances, or grant any security interest in any of its material
assets except in the ordinary course of business and consistent with past practice; (iii)
enter into any Material Contract; (iv)&nbsp;authorize any capital expenditure if, when added to
all other capital expenditures previously recorded in fiscal 2005, the total of all such
capital expenditures would exceed US$4,500,000; or (v)&nbsp;enter into or amend any contract,
agreement, commitment or arrangement with respect to any matter set forth in this Section
5.01(e);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) hire any additional employees other than in the ordinary course of business,
increase the compensation payable or to become payable or the benefits provided to its
directors, officers or employees, except for increases in the ordinary course of business in
salaries or wages of employees of the Company or any Subsidiary who are not directors or
officers of the Company or any Subsidiary, or grant any severance or termination pay to, or
enter into any employment or severance agreement with, any director, officer or other
employee of the Company or of any Subsidiary, or establish, adopt, enter into or amend any
collective bargaining, bonus, profit-sharing, thrift, compensation, stock option, restricted
stock, pension, retirement, deferred compensation, employment, termination, severance or
other plan, agreement, trust, fund, policy or arrangement for the benefit of any current or
former director, officer, employee or consultant;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) implement or adopt any change in its accounting principles, practices or methods,
other than as is consistent with or as may be required by law, GAAP or regulatory
guidelines;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) make any tax election or settle or compromise any material United States federal,
state, local or non-United States income tax liability;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay, discharge or satisfy any claim, liability or obligation (absolute, accrued,
asserted or unasserted, contingent or otherwise), other than the payment, discharge or
satisfaction of liabilities (i)&nbsp;reflected or reserved against on the consolidated balance
sheet of the Company and the Subsidiaries as of March&nbsp;31, 2005, (ii)&nbsp;subsequently incurred
in the ordinary course of business and consistent with past practice, or (iii)&nbsp;subsequently
incurred not in the ordinary course of business, which shall not in the aggregate exceed
US$100,000;


<P align="center" style="font-size: 10pt">32
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter into any material amendment to any Material Contract or consent to the
termination of any Material Contract, or amend, waive, modify or consent to the termination
of the Company&#146;s or any Subsidiary&#146;s rights thereunder;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) commence or settle any material Action; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) announce an intention to, or enter into any agreement or otherwise make a
commitment, to do any of the foregoing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.02. <U>Conduct of Business by Parent Pending the Merger</U>. Except as expressly
contemplated by any other provision of this Agreement, Parent agrees that from the date of this
Agreement until the earlier of the termination of this Agreement and the Effective Time, Parent
shall not, directly or indirectly, do, or propose to do, any of the following without the prior
written consent of the Company (which consent will not be unreasonably withheld or delayed):



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in any action that could reasonably be expected to cause the Merger to fail
to qualify as a reorganization within the meaning of Section 368(a) of the Code;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take any action to cause Parent&#146;s representations and warranties set forth in
Article&nbsp;IV to be untrue in any material respect or cause any condition set forth in Section
7.03(a) and Section&nbsp;7.03(b) not to be satisfied; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) take any action that would reasonably be likely to materially delay the Merger.


<P align="center" style="font-size: 10pt"><B>ARTICLE VI</B>



<P align="center" style="font-size: 10pt"><B>ADDITIONAL AGREEMENTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.01. <U>Registration Statement; Proxy Statement</U>. (a)&nbsp;As promptly as
practicable after the execution of this Agreement, (i)&nbsp;Parent and the Company shall prepare the
proxy statement to be sent to the stockholders of the Company relating to the meeting of the
Company&#146;s stockholders (the &#147;<U>Company Stockholders&#146; Meeting</U>&#148;) to be held to consider
approval and adoption of this Agreement or any information statement to be sent to such
stockholders, as appropriate (such proxy statement or information statement, as amended or
supplemented, being referred to herein as the &#147;<U>Proxy Statement</U>&#148;) and
(ii)&nbsp;Parent shall prepare and file with the SEC a registration statement on Form F-4 (together
with all amendments thereto, the &#147;<U>Registration Statement</U>&#148;) in which the Proxy Statement
shall be included as a prospectus, in connection with the registration under the Securities Act of
the shares of Parent Common Stock to be issued to the stockholders of the Company pursuant to the
Merger. Parent and the Company each shall use their reasonable best efforts to cause the
Registration Statement to become effective as promptly as practicable, and, prior to the effective
date of the Registration Statement, Parent shall take all or any action required under any
applicable federal or state securities laws in connection with the issuance of shares of Parent
Common Stock pursuant to the Merger. The Company shall furnish all information concerning the
Company as Parent may reasonably request in connection with such actions and the preparation of the
Registration


<P align="center" style="font-size: 10pt">33
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Statement and Proxy Statement. As promptly as practicable after the Registration
Statement shall have become effective, the Company shall mail the Proxy Statement to its
stockholders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as provided in Section&nbsp;6.04(c) and Section&nbsp;8.01(g), the Company covenants that none
of the Company Board or any committee thereof shall withdraw or modify, or propose to withdraw or
modify, in a manner adverse to Parent or Merger Sub, the approval or recommendation by the Company
Board or any committee thereof of this Agreement, the Merger or any other Transaction (the
&#147;<U>Company Recommendation</U>&#148;) and the Proxy Statement shall include the recommendation of the
Company Board to the stockholders of the Company in favor of approval and adoption of this
Agreement and approval of the Merger.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No amendment or supplement to the Proxy Statement or the Registration Statement will be
made by Parent or the Company without the approval of the other party (such approval not to be
unreasonably withheld or delayed). Parent and the Company each will advise the other, promptly
after they receive notice thereof, of the time when the Registration Statement has become effective
or any supplement or amendment has been filed, of the issuance of any stop order, of the suspension
of the qualification of the Parent Common Stock issuable in connection with the Merger for offering
or sale in any jurisdiction, or of any request by the SEC for amendment of the Proxy Statement or
the Registration Statement or comments thereon and responses thereto or requests by the SEC for
additional information.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Parent represents that the information supplied by Parent for inclusion in the
Registration Statement and the Proxy Statement shall not, at (i)&nbsp;the time the Registration
Statement is declared effective, (ii)&nbsp;the time the Proxy Statement (or any amendment thereof or
supplement thereto) is first mailed to the stockholders of the Company, (iii)&nbsp;the time of the
Company Stockholders&#146; Meeting and (iv)&nbsp;the Effective Time, contain any untrue statement of a
material fact or fail to state any material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading. If, at any time prior to the Effective Time, any event or circumstance relating to
Parent or Merger Sub, or their respective officers or directors, should be discovered by Parent
which should be set forth in an amendment or a supplement to the Registration Statement or Proxy
Statement, Parent shall promptly inform the Company. All documents that Parent is responsible for
filing with the SEC in connection with the Merger or the other Transactions will comply as to form
and substance in all material aspects with the applicable requirements of the Securities Act and
the rules and regulations thereunder and the Exchange Act and the rules and regulations thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Company represents that the information supplied by the Company for inclusion in the
Registration Statement and the Proxy Statement shall not, at (i)&nbsp;the time the Registration
Statement is declared effective, (ii)&nbsp;the time the Proxy Statement (or any amendment thereof or
supplement thereto) is first mailed to the stockholders of the Company, (iii)&nbsp;the time of the
Company Stockholders&#146; Meeting and (iv)&nbsp;the Effective Time, contain any untrue statement of a
material fact or fail to state any material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading. If, at any time prior to the Effective Time, any event or circumstance relating to the
Company or any Company Subsidiary, or their respective officers or directors, should be discovered
by the Company which should be set forth in an amendment or a


<P align="center" style="font-size: 10pt">34
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">supplement to the Registration
Statement or Proxy Statement, the Company shall promptly inform Parent. All documents that the
Company is responsible for filing with the SEC in connection with the Merger or the other
Transactions will comply as to form and substance in all material respects with the applicable
requirements of the Securities Act and the rules and regulations thereunder and the Exchange Act
and the rules and regulations thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.02. <U>Company Stockholders&#146; Meeting</U>. The Company shall call the Company
Stockholders&#146; Meeting as promptly as practicable for the purpose of voting upon the approval of
this Agreement and the Company shall use its reasonable best efforts to hold the Company
Stockholders&#146; Meeting as soon as practicable after the date on which the Registration Statement
becomes effective. The Company shall use its reasonable best efforts to solicit from its
stockholders proxies in favor of the approval and adoption of this Agreement and shall use its
reasonable best efforts to take all other action necessary or advisable to secure the required vote
or consent of its stockholders, except in the event and to the extent that the Company Board, in
accordance with Section&nbsp;6.04(c), withdraws or modifies its recommendation to the stockholders of
the Company in favor of the approval and adoption of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.03. <U>Access to Information; Confidentiality</U>. (a)&nbsp;Except pursuant to
applicable Law, from the date of this Agreement until the Effective Time, the Company and Parent
shall (and shall cause their respective subsidiaries to): (i)&nbsp;provide to the other party (and the
other party&#146;s officers, directors, employees, accountants, consultants, legal counsel, agents and
other representatives, collectively, &#147;<U>Representatives</U>&#148;) access at reasonable times upon
prior notice to the officers, employees, agents, properties, offices and other facilities of such
party and its subsidiaries and to the books and records thereof; and (ii)&nbsp;furnish promptly to the
other party such information concerning the business, properties, contracts, assets, liabilities,
personnel and other aspects of such party and its subsidiaries as the other party or its
Representatives may reasonably request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All information obtained by the parties pursuant to this Section&nbsp;6.03 shall be kept
confidential in accordance with the confidentiality agreement, dated February&nbsp;18, 2005 (the
&#147;<U>Confidentiality Agreement</U>&#148;), between Parent and the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No investigation pursuant to this Section&nbsp;6.03 shall affect any representation or warranty
in this Agreement of any party hereto or any condition to the obligations of the parties hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company hereby waives the provisions of the Confidentiality Agreement as and to the
extent necessary to permit the consummation of each Transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.04. <U>No Solicitation of Transactions</U>. (a)&nbsp;The Company agrees that neither
it nor any Subsidiary nor any of the directors, officers or employees of it or any Subsidiary will,
and that it will not authorize or knowingly permit its or its Subsidiaries&#146; agents, advisors and
other representatives (including, without limitation, any investment banker, attorney or accountant
retained by it or any Subsidiary) to, directly or indirectly, (i)&nbsp;solicit, initiate or encourage
(including by way of furnishing nonpublic information), or take any other action to facilitate the
making of any proposal or offer (including, without limitation, any proposal or offer to its
stockholders) that constitutes, or may reasonably be expected to lead to, a Competing


<P align="center" style="font-size: 10pt">35
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Transaction (as defined below), or (ii)&nbsp;enter into or maintain or continue discussions or negotiations with any
person or entity in furtherance of such inquiries or to obtain a proposal or offer for a Competing
Transaction, or (iii)&nbsp;agree to, approve, endorse or recommend any Competing Transaction or enter
into any letter of intent or other contract, agreement or commitment contemplating or otherwise
relating to any Competing Transaction. The Company shall notify Parent as promptly as practicable
(and in any event within two (2)&nbsp;days after any director or executive officer of the Company
attains knowledge thereof), orally and promptly thereafter in writing, if any proposal or offer, or
any inquiry or contact with any person with respect thereto, regarding a Competing Transaction is
made, specifying the material terms and conditions thereof and the identity of the party making
such proposal or offer or inquiry or contact (including material amendments or proposed material
amendments). The Company shall provide Parent with 48 hours prior notice (or such lesser prior
notice as is provided to the members of the Company Board) of any meeting of the Company Board at
which the Company Board is reasonably expected to consider any Competing Transaction. The Company
immediately shall cease and cause to be terminated all existing discussions or negotiations with
any parties conducted heretofore with respect to a Competing Transaction. The Company shall not
release any third party from, or waive any provision of, any confidentiality or standstill
agreement to which it is a party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding anything to the contrary in this Section&nbsp;6.04, the Company Board may
furnish information to, and enter into discussions with, a person who has made an unsolicited,
written, bona fide proposal or offer regarding a Competing Transaction, if the Company Board has
(i)&nbsp;determined, in its good faith judgment (after having received the advice of a financial advisor
of nationally recognized reputation), that such proposal or offer constitutes a Superior Proposal
(as defined below), (ii)&nbsp;determined, in its good faith judgment after consultation with independent
legal counsel (who may be the Company&#146;s regularly engaged independent legal counsel), that, in
light of such Superior Proposal, the failure to furnish such information or enter into discussions
would cause the members of the Company Board of Directors to breach their fiduciary duties to the
Company and its stockholders under applicable Law, (iii)&nbsp;provided written notice to Parent of its
intent to furnish information or enter into discussions with such person at least three (3)
business days prior to taking any such action, and (iv)&nbsp;obtained from such person an executed confidentiality agreement on terms no less
favorable to the Company than those contained in the Confidentiality Agreement (it being understood
that such confidentiality agreement and any related agreements shall not include any provision
calling for any exclusive right to negotiate with such party or having the effect of prohibiting
the Company from satisfying its obligations under this Agreement).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth in this Section&nbsp;6.04(c), neither the Company Board nor any committee
thereof shall withdraw or modify, or propose to withdraw or modify, in a manner adverse to Parent
or Merger Sub, the Company Recommendation (a &#147;<U>Change in the Company Recommendation</U>&#148;) or
approve or recommend, or cause or permit the Company to enter into any letter of intent, agreement
or obligation with respect to, any Competing Transaction. Notwithstanding the foregoing, if the
Company Board determines, in its good faith judgment prior to the time of the Company Stockholders&#146;
Meeting and after consultation with independent legal counsel (who may be the Company&#146;s regularly
engaged independent legal counsel), that a failure to make a Change in the Company Recommendation
would cause the members of the Company Board of Directors to breach their fiduciary duties to the
Company and its stockholders


<P align="center" style="font-size: 10pt">36
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">under applicable Law, the Company Board may (i)&nbsp;recommend a Superior
Proposal or (ii)&nbsp;terminate this Agreement pursuant to Section&nbsp;8.01(g), but only (A)&nbsp;after providing
written notice to Parent (a &#147;<U>Notice of Superior Proposal</U>&#148;) advising Parent that the Company
Board has received a Superior Proposal, specifying the material terms and conditions of such
Superior Proposal and identifying the person making such Superior Proposal and indicating that the
Company Board intends to effect a Change in the Company Recommendation and the manner in which it
intends (or may intend) to do so, and (B)&nbsp;if Parent does not, within three (3)&nbsp;business days of
Parent&#146;s receipt of the Notice of Superior Proposal, make an offer that the Company Board
determines, in its good faith judgment (after having received the advice of a financial advisor of
internationally recognized reputation) to be at least as favorable to the Company&#146;s stockholders as
such Superior Proposal. Any disclosure that the Company Board may be compelled to make with
respect to the receipt of a proposal or offer for a Competing Transaction or otherwise in order to
comply with its fiduciary duties to the Company and its stockholders under applicable Law or Rule
14d-9 or 14e-2 will not constitute a violation of this Agreement, provided that such disclosure
states that no action will be taken by the Company Board in violation of this Section&nbsp;6.04(c).
Notwithstanding anything to the contrary contained in this Agreement, the obligation of the Company
to call, give notice of, convene and hold the Company Stockholders&#146; Meeting shall not be limited or
otherwise affected by the commencement, disclosure, announcement or submission to it of any
Competing Transaction, or by any Change in the Company Recommendation. The Company shall not
submit to the vote of its stockholders any Competing Transaction, or propose to do so at the
Company Stockholders&#146; Meeting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A &#147;<U>Competing Transaction</U>&#148; means any of the following (other than the
Transactions): (i)&nbsp;any merger, consolidation, share exchange, business combination,
recapitalization, liquidation, dissolution or other similar transaction involving the Company or
any Subsidiary; (ii)&nbsp;any sale, lease, exchange, transfer or other disposition of assets or
businesses that constitute or represent 15% or more of the total revenue, operating income, EBITDA
or assets of the Company and its Subsidiaries, taken as a whole; (iii)&nbsp;any sale, exchange, transfer
or other disposition of 15% or more of any class of equity securities of the Company or of any
Significant Subsidiary (as defined in Rule&nbsp;1-02 of Regulation&nbsp;S-X under the Securities Act); (iv)
any tender offer or exchange offer that, if consummated, would result in any person beneficially
owning 15% or more of any class of equity securities of the Company or of any Significant
Subsidiary; (v)&nbsp;any solicitation in opposition to approval of this Agreement by the Company&#146;s
stockholders; or (vi)&nbsp;any other transaction the consummation of which would reasonably be expected
to prevent or materially delay the Merger.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;A &#147;<U>Superior Proposal</U>&#148; means an unsolicited written bona fide offer made by a third
party to consummate any of the following transactions: (i)&nbsp;a merger, consolidation, share
exchange, business combination or other similar transaction involving the Company pursuant to which
the stockholders of the Company immediately preceding such transaction would hold less than 50% of
the equity interest in the surviving or resulting entity of such transaction; or (ii)&nbsp;the
acquisition by any person or group (including by means of a tender offer or an exchange offer or a
two-step transaction involving a tender offer followed with reasonable promptness by a cash-out
merger involving the Company), directly or indirectly, of ownership of 50% of the then outstanding
shares of stock of the Company, in each case on terms (including conditions to consummation of the
contemplated transaction) that the Company Board determines, in its good faith judgment (after
having received the advice of a financial advisor of


<P align="center" style="font-size: 10pt">37
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">nationally recognized reputation), to be more
favorable to the Company stockholders than the Merger and for which financing, to the extent
required, is then committed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.05. <U>Employee Benefit Matters</U>. From and after the Effective Time, Parent
shall cause the Surviving Corporation and its subsidiaries to honor in accordance with their terms,
all contracts, agreements, arrangements, policies, plans and commitments of the Company and the
Subsidiaries as in effect immediately prior to the Effective Time that are applicable to any
current or former employees or directors of the Company or any Subsidiary. Parent shall use
reasonable best efforts to provide that employees of the Company or any Subsidiary receive credit,
for purposes of eligibility to participate and vesting (but not for benefit accruals) under any
employee benefit plan, program or arrangement established or maintained by the Surviving
Corporation or any of its subsidiaries, for service accrued or deemed accrued prior to the
Effective Time with the Company or any Subsidiary; <U>provided</U>, <U>however</U>, that such
crediting of service shall not operate to duplicate any benefit or the funding of any such benefit.
In addition, Parent shall use reasonable best efforts to waive, or cause to be waived, any
limitations on benefits relating to any pre-existing conditions to the same extent such limitations
are waived under any comparable plan of Parent or its subsidiaries and recognize, for purposes of
annual deductible and out-of-pocket limits under its medical and dental plans, deductible and
out-of-pocket expenses paid by employees of the Company and its subsidiaries in the calendar year
in which the Effective Time occurs.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.06. <U>Directors&#146; and Officers&#146; Indemnification and Insurance</U>. (a)&nbsp;The
By-laws of the Surviving Corporation shall contain provisions no less favorable, taken as a whole,
with respect to indemnification than are set forth in Article&nbsp;VI of the By-laws of the Company,
which provisions shall not be amended, repealed or otherwise modified for a period of six years
from the Effective Time in any manner that would affect adversely the rights thereunder of
individuals who, at or prior to the Effective Time, were
directors, officers, employees, fiduciaries or agents of the Company, unless such modification
shall be required by law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Surviving Corporation shall use its reasonable best efforts to maintain in effect for
six years from the Effective Time, if available, the current directors&#146; and officers&#146; liability
insurance policies maintained by the Company (provided that the Surviving Corporation may
substitute therefor policies of at least the same coverage containing terms and conditions that are
not materially less favorable) with respect to matters occurring prior to the Effective Time;
<U>provided</U>, <U>however</U>, that in no event shall the Surviving Corporation be required to
expend pursuant to this Section&nbsp;6.06(b) more than an amount per year equal to 175% of current
annual premiums paid by the Company for such insurance (which premiums the Company represents and
warrants to be US$131,920 in the aggregate); <U>provided</U>, <U>however</U>, that in the event
of an expiration, termination or cancellation of such current policies, Merger Sub or the Surviving
Corporation shall be required to obtain as much coverage as is possible under substantially similar
policies for aggregate annual premiums which shall not exceed 175% of current annual premiums paid
by the Company for such insurance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event the Surviving Corporation or any of its successors or assigns (i)
consolidates with or merges into any other person and shall not be the continuing or surviving
corporation or entity of such consolidation or merger or (ii)&nbsp;transfers all or substantially all of
its


<P align="center" style="font-size: 10pt">38
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">properties and assets to any person, then, and in each such case, proper provision shall be
made so that the successors and assigns of the Surviving Corporation or at Parent&#146;s option, Parent,
shall assume the obligations set forth in this Section&nbsp;6.06.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Parent and Merger Sub acknowledge that the Company is party to indemnification agreements
with each director and executive officer of the Company and that at the Effective Time the
Company&#146;s obligations under such indemnification agreements shall become the obligations of the
Surviving Corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.07. <U>Notification of Certain Matters</U>. The Company shall give prompt notice
to Parent, and Parent shall give prompt notice to the Company, of (a)&nbsp;the occurrence, or
non-occurrence, of any event the occurrence, or non-occurrence, of which could reasonably be
expected to cause any representation or warranty contained in this Agreement to be untrue or
inaccurate in any material respect and (b)&nbsp;any failure of the Company, Parent or Merger Sub, as the
case may be, to comply with or satisfy any covenant or agreement to be complied with or satisfied
by it hereunder; <U>provided</U>, <U>however</U>, that the delivery of any notice pursuant to
this Section&nbsp;6.07 shall not limit or otherwise affect the remedies available hereunder to the party
receiving such notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.08. <U>Company Affiliates</U>. (a)&nbsp;No later than 30&nbsp;days after the date of
this Agreement, the Company shall deliver to Parent a list of names and addresses of those persons
who were, in the Company&#146;s reasonable judgment, on such date, affiliates (within the meaning of
Rule&nbsp;145 of the rules and regulations promulgated under the Securities Act (each such person being
a &#147;<U>Company Affiliate</U>&#148;)) of the Company. The Company shall provide Parent with such
information and
documents as Parent shall reasonably request for purposes of reviewing such list. The Company
shall use its reasonable best efforts to deliver or cause to be delivered to Parent, prior to the
Effective time, an affiliate letter in the form attached hereto as Exhibit&nbsp;6.08, executed by each
of the Company Affiliates identified in the foregoing list and any person who shall, to the
knowledge of the Company, have become a Company Affiliate subsequent to the delivery of such list.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Parent agrees that it shall make available &#147;current public information&#148; in accordance with
Rule 144(c) under the Securities Act for a period of two years from the Effective Time. Parent
further agrees that it shall cooperate with each Company Affiliate to remove the legend from Parent
Common Stock received by such Company Affiliate as Merger Consideration and sold by such Company
Affiliate in accordance with Rule 145(d) under the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.09. <U>Further Action; Reasonable Best Efforts</U>. Upon the terms and subject to
the conditions of this Agreement, each of the parties hereto shall (i)&nbsp;make promptly its respective
filings, and thereafter make any other required submissions, under the HSR Act or other applicable
foreign, federal or state antitrust, competition of fair trade Laws with respect to the
Transactions and (ii)&nbsp;use its reasonable best efforts to take, or cause to be taken, all
appropriate action, and to do, or cause to be done, all things necessary, proper or advisable under
applicable Laws or otherwise to consummate and make effective the Transactions, including, without
limitation, using its reasonable best efforts to obtain all Permits, consents, approvals,
authorizations, qualifications and orders of Governmental Authorities and parties to contracts


<P align="center" style="font-size: 10pt">39
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">with the Company and the Subsidiaries as are necessary for the consummation of the Transactions and to
fulfill the conditions to the Merger; <U>provided</U> that neither Merger Sub nor Parent will be
required by this Section&nbsp;6.09 to take any action, including entering into any consent decree, hold
separate orders or other arrangements, that (A)&nbsp;requires the divestiture of any assets of any of
Merger Sub, Parent, the Company or any of their respective subsidiaries or (B)&nbsp;limits Parent&#146;s
freedom of action with respect to, or its ability to retain, the Company and the Subsidiaries or
any portion thereof or any of Parent&#146;s or its affiliates&#146; other assets or businesses. In case, at
any time after the Effective Time, any further action is necessary or desirable to carry out the
purposes of this Agreement, the proper officers and directors of each party to this Agreement shall
use their reasonable best efforts to take all such action.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.10. <U>Plan of Reorganization</U>. (a)&nbsp;Subject to Section&nbsp;2.01(k), this Agreement
is intended to constitute a &#147;plan of reorganization&#148; within the meaning of section 1.368-2(g) of
the income tax regulations promulgated under the Code. From and after the date of this Agreement
and until the Effective Time, each party hereto shall use its reasonable best efforts to cause the
Merger to qualify, and will not knowingly take any action, cause any action to be taken, fail to
take any action or cause any action to fail to be taken which action or failure to act could
prevent the Merger from qualifying, as a reorganization within the meaning of Section 368(a) of the
Code. Following the Effective Time, neither the Surviving Corporation, Parent nor any of their
affiliates shall knowingly take any action, cause any action to be taken, fail to take any action
or cause any
action to fail to be taken, which action or failure to act could cause the Merger to fail to
qualify as a reorganization within the meaning of Section 368(a) of the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As of the date hereof, the Company does not know of any reason (i)&nbsp;why it would not be
able to deliver to counsel to the Company and Parent at the date of the legal opinions referred to
below, certificates substantially in compliance with IRS published advance ruling guidelines, with
customary exceptions and modifications thereto, to enable such firms to deliver the legal opinions
contemplated by Section&nbsp;7.02(j) and Section&nbsp;7.03(e), and the Company hereby agrees, subject to
Section&nbsp;2.01(k), to deliver such certificates effective as of the date of such opinions or (ii)&nbsp;why
counsel to the Company and Parent would not be able to deliver the opinions required by Section
7.02(j) and Section&nbsp;7.03(e). Subject to Section&nbsp;2.01(k), the Company will deliver such
certificates to counsel to the Company and Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;As of the date hereof, Parent does not know of any reason (i)&nbsp;why it would not be able to
deliver to counsel to the Company or Parent at the date of the legal opinions referred to below,
certificates substantially in compliance with IRS published advance ruling guidelines, with
customary exceptions and modifications thereto, to enable such firms to deliver the legal opinions
contemplated by Section&nbsp;7.02(j) and Section&nbsp;7.03(e), and Parent hereby agrees, subject to Section
2.01(k), to deliver such certificates effective as of the date of such opinions or (ii)&nbsp;why counsel
to the Company and Parent would not be able to deliver the opinions required by Section&nbsp;7.02(j) and
Section&nbsp;7.03(e). Subject to Section&nbsp;2.01(k), Parent will deliver such certificates to counsel to
the Company and Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.11. <U>Obligations of Merger Sub</U>. Parent shall take all action necessary to
cause Merger Sub to perform its obligations under this Agreement and to consummate the Merger on
the terms and subject to the conditions set forth in this Agreement.


<P align="center" style="font-size: 10pt">40
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.12. <U>Consents of Accountants</U>. Parent and the Company will each use all
reasonable efforts to cause to be delivered to each other consents from their respective
independent auditors, in form reasonably satisfactory to the recipient and customary in scope and
substance for consents delivered by independent public accountants in connection with registration
statements on Form F-4 under the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.13. <U>Listing</U>. Parent shall promptly prepare and submit to (i)&nbsp;either the New
York Stock Exchange (&#147;<U>NYSE</U>&#148;) or the National Market System of the NASDAQ Stock Market
(&#147;<U>Nasdaq</U>&#148; and, together with the NYSE, the &#147;<U>U.S. Exchange</U>&#148;) and (ii)&nbsp;the TSX,
listing applications covering the shares of Parent Common Stock to be issued in the Merger and
shall use its reasonable efforts to obtain, prior to the Effective Time, approval for the listing
or quotation, as the case may be, of such Parent Common Stock by the U.S. Exchange and the TSX,
subject in each case to official notice of issuance, and the Company shall cooperate with Parent
with respect to such listing or quotation, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.14. <U>Subsequent Financial Statements</U>. The Company shall, if practicable,
consult with Parent prior to making publicly available its financial results for any period after
the date of this Agreement and prior to filing any report or document with the SEC after the date
of this Agreement, it being understood that Parent shall have no liability by reason of such
consultation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.15. <U>Public Announcements</U>. The initial press release relating to this
Agreement shall be a joint press release the text of which has been agreed to by each of Parent and
the Company. Thereafter, unless otherwise required by applicable Law or the requirements of the
U.S. Exchange or the TSX, each of Parent and the Company shall each use its reasonable best efforts
to consult with each other before issuing any press release or otherwise making any public
statements with respect to this Agreement, the Merger or any of the other Transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.16. <U>Board of Directors of Parent</U>. Parent shall take all such action as may
be necessary to cause the Chief Executive Officer of the Company (the &#147;<U>Company Designated
Director</U>&#148;) to be appointed to the Board of Directors of Parent as of the first meeting of the
Board of Directors of Parent after the Effective Time, to serve until the next annual election of
directors of Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.17. <U>Company Contribution</U>. Immediately prior to the Effective Time, at
Parent&#146;s request, Company shall deposit, or shall cause to be deposited, with the Exchange Agent
for the benefit of the holders of Shares the lesser of (i) $18,000,000 and (ii)&nbsp;the maximum amount
of cash that would not preclude the Merger from qualifying as a reorganization within the meaning
of Section 368(a) of the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.18. <U>Unvested Company Restricted Stock</U>. The Company will cooperate to enter
into an agreement with each holder of an unvested Company Restricted Stock to amend the agreement
between the Company and such holder pursuant to which such unvested Company Restricted Stock was
granted and such amendment shall be reasonably satisfactory to Parent.


<P align="center" style="font-size: 10pt">41
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>ARTICLE VII</B>



<P align="center" style="font-size: 10pt"><B>CONDITIONS TO THE MERGER</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.01. <U>Conditions to the Obligations of Each Party</U>. The obligations of the
Company, Parent and Merger Sub to consummate the Merger are subject to the satisfaction or waiver
(where permissible) of the following conditions:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Registration Statement</U>. The Registration Statement shall have been
declared effective by the SEC under the Securities Act and no stop order suspending the
effectiveness of the Registration Statement shall have been issued by the SEC and no
proceeding for that purpose shall have been initiated by the SEC.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Company Stockholder Approval</U>. This Agreement shall have been approved and
adopted by the requisite affirmative vote of the stockholders of the Company in accordance
with the CCC and the Company&#146;s Articles of Incorporation.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>No Order</U>. No Governmental Authority shall have enacted, issued,
promulgated, enforced or entered any law, rule, regulation, judgment, decree, executive
order or award (an &#147;<U>Order</U>&#148;) which is then in effect and has the effect of making the
Merger illegal or otherwise prohibiting consummation of the Merger.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>U.S. Antitrust Approvals and Waiting Periods</U>. Any waiting period (and any
extension thereof) applicable to the consummation of the Merger under the HSR Act shall have
expired or been terminated.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>TSX Listing</U>. The shares of Parent Common Stock to be issued in the Merger
shall have been authorized for listing on the TSX, subject to official notice of issuance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.02. <U>Conditions to the Obligations of Parent and Merger Sub</U>. The obligations
of Parent and Merger Sub to consummate the Merger are subject to the satisfaction or waiver (where
permissible) of the following additional conditions:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Representations and Warranties</U>. The representations and warranties of the
Company contained in this Agreement shall have been true and correct when made and shall be
true and correct as of the Effective Time, with the same force and effect as if made as of
the Effective Time (other than such representations and warranties as are made as of another
date which shall be true and correct as of such date), except where the failure to be so
true and correct (without giving effect to any limitations or qualification as to
&#147;materially&#148; (including the word &#147;material&#148;) or &#147;Company Material Adverse Effect&#148; set forth
therein) would not, individually or in the aggregate, have a Company Material Adverse
Effect.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Agreements and Covenants</U>. The Company shall have performed or complied in
all material respects with all agreements and covenants required by this Agreement to be
performed or complied with by it on or prior to the Effective Time.


<P align="center" style="font-size: 10pt">42
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Officer Certificate</U>. The Company shall have delivered to Parent a
certificate, dated the date of the Closing, signed by the Chief Executive Officer of the
Company, certifying as to the satisfaction of the conditions specified in Sections&nbsp;7.02(a),
7.02(b) and 7.02(e).



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Consents</U>. All consents, approvals and authorizations legally required to
be obtained to consummate the Merger shall have been obtained from and made with all
Governmental Entities.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Material Adverse Effect</U>. No Company Material Adverse Effect shall have
occurred since the date of this Agreement.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Company Contribution.</U> The Company shall have deposited, or shall have
caused to be deposited, with the Exchange Agent for the benefit of the holders of the
Company Common Stock the lesser of (i) $18,000,000 and (ii)&nbsp;the maximum amount of cash that
would not preclude the Merger from qualifying as a reorganization within the meaning of
Section 368(a) of the Code.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Company Cash Balance</U>. The Company shall have at least $40,000,000 of cash
on deposit in cash or cash equivalents, less the amount of cash deposited with the Exchange
Agent pursuant to Section&nbsp;2.04 and Section&nbsp;7.02(f).



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Dissenting Shares</U>. The number of Dissenting Shares shall be less than 5%
of the issued and outstanding Shares.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Cancellation of Company 401(k) Plan. </U> Prior to the Effective Time, the
Company Board shall have duly adopted a resolution providing for the termination and
cancellation, as of the day immediately preceding the date on which the Effective Time
occurs, of the Company&#146;s Plan qualified under Section 401(k) of the Code (the &#147;<U>401(k)
Plan</U>&#148;) and provided a certified copy of such resolution to Parent, which is reasonably
satisfactory to Parent. Notwithstanding the foregoing, the Board of Directors of the
Company shall not act to terminate and cancel the 401(k) Plan if Parent provides written
notice to that effect to the Company at least two (2)&nbsp;days prior to the Effective Time.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Taxes</U>. Subject to Section&nbsp;2.01(k), Parent shall have received the opinion
of Shearman &#038; Sterling LLP, counsel to Parent, based upon representations of Parent and the
Company, and normal assumptions, to the effect that, for federal income tax purposes, the
Merger will qualify as a reorganization within the meaning of Section 368(a) of the Code and
that each of Parent, Merger Sub and the Company will be a party to the reorganization within
the meaning Section 368(b) of the Code, which opinion shall not have been withdrawn or
modified in any material respect. The issuance of such opinion shall be conditioned on
receipt by Shearman &#038; Sterling LLP of representation letters from each of Parent and Company
contemplated in Section&nbsp;6.10. Each such representation letter shall be dated on or before
the date of such opinion and shall not have been withdrawn or modified in any material
respect as of the Effective Time.


<P align="center" style="font-size: 10pt">43
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.03. <U>Conditions to the Obligations of the Company</U>. The obligations of the
Company to consummate the Merger are subject to the satisfaction or waiver (where permissible) of
the following additional conditions:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Representations and Warranties</U>. The representations and warranties of
Parent and Merger Sub contained in this Agreement shall have been true and correct
when made and shall be true and correct as of the Effective Time, with the same force
and effect as if made as of the Effective Time (other than such representations and
warranties as are made as of another date which shall be true and correct as of such date),
except where the failure to be so true and correct (without giving effect to any limitations
or qualification as to &#147;materially&#148; (including the word &#147;material&#148;) or &#147;Parent Material
Adverse Effect&#148; set forth therein) would not, individually or in the aggregate, have a
Parent Material Adverse Effect.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Agreements and Covenants</U>. Parent and Merger Sub shall have performed or
complied in all material respects with all agreements and covenants required by this
Agreement to be performed or complied with by it on or prior to the Effective Time.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Material Adverse Effect</U>. No Parent Material Adverse Effect shall have
occurred since the date of this Agreement.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Officer Certificate</U>. Parent shall have delivered to the Company a
certificate, dated the date of the Closing, signed by the President or any Vice President of
Parent, certifying as to the satisfaction of the conditions specified in Sections&nbsp;7.03(a),
7.03(b) and 7.03(c).



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Taxes</U>. Subject to Section&nbsp;2.01(k), the Company shall have received the
opinion of Akin Gump Strauss Hauer &#038; Feld LLP, counsel to the Company, based upon
representations of Parent and the Company, and normal assumptions, to the effect that, for
federal income tax purposes, the Merger will qualify as a reorganization within the meaning
of Section 368(a) of the Code and that each of Parent, Merger Sub and the Company will be a
party to the reorganization within the meaning Section 368(b) of the Code, which opinion
shall not have been withdrawn or modified in any material respect. The issuance of such
opinion shall be conditioned on receipt by Akin Gump Strauss Hauer &#038; Feld LLP of
representation letters from each of Parent and Company contemplated in Section&nbsp;6.10. Each
such representation letter shall be dated on or before the date of such opinion and shall
not have been withdrawn or modified in any material respect as of the Effective Time.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>U.S. Exchange Listing</U>. The shares of Parent Common Stock to be issued in
the Merger shall have been authorized for listing or quotation, as the case may be, on the
U.S. Exchange, subject to official notice of issuance.


<P align="center" style="font-size: 10pt">44
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>ARTICLE VIII</B>



<P align="center" style="font-size: 10pt"><B>TERMINATION, AMENDMENT AND WAIVER</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.01. <U>Termination</U>. This Agreement may be terminated and the Merger and the
other Transactions may be abandoned at any time prior to the Effective Time by action taken or
authorized by the Board of Directors of the terminating party, notwithstanding any requisite approval and
adoption of this Agreement and the Transactions by the stockholders of the Company, as follows:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written consent of Parent and the Company duly authorized by the Boards
of Directors of Parent and the Company; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either Parent or the Company if the Effective Time shall not have occurred on or
before December&nbsp;31, 2005; <U>provided</U>, <U>however</U>, that the right to terminate
this Agreement under this Section&nbsp;8.01(b) shall not be available to any party whose failure
to fulfill any obligation under this Agreement has been the cause of, or resulted in, the
failure of the Effective Time to occur on or before such date; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by Parent if a Company Triggering Event (as defined below) shall have occurred; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by either Parent or the Company if this Agreement shall fail to receive the
requisite vote for approval at the Company Stockholders&#146; Meeting; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by Parent upon a breach of any representation, warranty, covenant or agreement on
the part of the Company set forth in this Agreement, or if any representation or warranty of
the Company shall have become untrue, in either case such that the conditions set forth in
Section&nbsp;7.02(a) and Section&nbsp;7.02(b) would not be satisfied as of the time of such breach or
as of the time such representation or warranty shall have become untrue (&#147;<U>Terminating
Company Breach</U>&#148;); <U>provided</U>, <U>however</U>, that, if such Terminating Company
Breach is curable by the Company, Parent may not terminate this Agreement under this Section
8.01(e) for so long as the Company continues to exercise its best efforts to cure such
breach, unless such breach is not cured within 15&nbsp;days after written notice of such breach
is provided by Parent to the Company; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) by the Company upon a breach of any representation, warranty, covenant or agreement
on the part of Parent and Merger Sub set forth in this Agreement, or if any representation
or warranty of Parent and Merger Sub shall have become untrue, in either case such that the
conditions set forth in Section&nbsp;7.03(a) and Section&nbsp;7.03(b) would not be satisfied as of the
time of such breach or as of the time such representation or warranty shall have become
untrue (&#147;<U>Terminating Parent Breach</U>&#148;); <U>provided</U>, <U>however</U>, that, if
such Terminating Parent Breach is curable by Parent and Merger Sub, the Company may not
terminate this Agreement under this Section&nbsp;8.01(f) for so long as Parent and Merger Sub
continue to exercise their best efforts to cure such breach, unless such breach is not cured
within 15&nbsp;days after written notice of such breach is provided by the Company to Parent.


<P align="center" style="font-size: 10pt">45
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) by the Company in order to accept a Superior Proposal; <U>provided</U>,
<U>however</U>, in order for the termination of this Agreement pursuant to this paragraph
8.01(g) to be effective, the Company shall have complied with the provisions of Section
6.04(c) and the provisions of Section&nbsp;8.03(b) (including the payment of the Fee and Parent&#146;s
Expenses).

<P align="left" style="font-size: 10pt">For purposes of this Agreement, a &#147;<U>Company Triggering Event</U>&#148; shall be deemed to have
occurred if: (i)&nbsp;the Company Board withdraws, modifies or changes the Company Recommendation in a
manner adverse to Parent or shall have resolved to do so; (ii)&nbsp;the Company Board shall have
recommended to the stockholders of the Company a Competing Transaction or shall have resolved to do
so or shall have entered into any letter of intent or similar document or any agreement, contract
or commitment accepting any Competing Transaction; (iii)&nbsp;the Company shall have failed to include
in the Proxy Statement the recommendation of the Company Board in favor of the approval of this
Agreement; (iv)&nbsp;the Company Board fails to reaffirm its recommendation in favor of the approval of
this Agreement and the approval of the Merger within five business days after Parent requests in
writing that such recommendation be reaffirmed; (v)&nbsp;as a result of the Company&#146;s breach of its
obligation hereunder, the Merger is not, prior to December&nbsp;15, 2005, submitted for the approval of
the holders of Company Common Stock at the Company Stockholders&#146; Meeting; (vi)&nbsp;the Company shall
have intentionally breached its obligations under Section&nbsp;6.04; or (vii)&nbsp;a tender offer or exchange
offer for 15% or more of the outstanding shares of capital stock of the Company is commenced, and
the Company Board fails to recommend against acceptance of such tender offer or exchange offer by
its stockholders (including by taking no position with respect to the acceptance of such tender
offer or exchange offer by its stockholders) within ten (10)&nbsp;business days after such tender offer
or exchange offer is commenced.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.02. <U>Effect of Termination</U>. In the event of the termination of this
Agreement pursuant to Section&nbsp;8.01, this Agreement shall forthwith become void, and there shall be
no liability under this Agreement on the part of any party hereto, except (a)&nbsp;as set forth in
Section&nbsp;8.03 and (b)&nbsp;nothing herein shall relieve any party from liability for any willful breach
of any of its representations, warranties, covenants or agreements set forth in this Agreement
prior to such termination; <U>provided</U>, <U>however</U>, that the Confidentiality Agreement
shall survive any termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.03. <U>Fees and Expenses</U>. (a)&nbsp;Except as set forth in this Section&nbsp;8.03, all
Expenses (as defined below) incurred in connection with this Agreement and the Transactions shall
be paid by the party incurring such expenses, whether or not the Merger or any other transaction is
consummated, except that the Company and Parent shall each pay one-half of all Expenses relating to
(i)&nbsp;printing, filing and mailing the Registration Statement and the Proxy Statement and all SEC and
other regulatory filing fees incurred in connection with the Registration Statement and the Proxy
Statement and (ii)&nbsp;the filing fee for the Notification and Report Forms filed under HSR Act.
&#147;Expenses&#148;, as used in this Agreement, shall include all reasonable out-of-pocket expenses
(including, without limitation, all fees and expenses of counsel, accountants, investment bankers,
experts and consultants to a party hereto and its affiliates) incurred by a party or on its behalf
in connection with or related to the authorization, preparation, negotiation, execution and
performance of this Agreement, the preparation, printing, filing and mailing of the Registration
Statement and the Proxy Statement, the solicitation of


<P align="center" style="font-size: 10pt">46
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">stockholder approvals, the filing of any
required notices under the HSR Act or other similar regulations and all other matters related to
the closing of the Merger and the other Transactions.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees that:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Parent shall terminate this Agreement pursuant to Section&nbsp;8.01(c); or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Company shall terminate this Agreement pursuant to Section&nbsp;8.01(g);

<P align="left" style="font-size: 10pt">then the Company shall pay to Parent promptly (but in any event no later than one business day
after the first of such events shall have occurred) a fee of US$3,000,000 (the &#147;<U>Fee</U>&#148;),
which amount shall be payable in immediately available funds, plus an amount equal to the amount of
Parent&#146;s Expenses.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company acknowledges that the agreements contained in this Section&nbsp;8.03 are an
integral part of the Transactions. In the event that the Company shall fail to pay the Fee or any
Expenses when due, the term &#147;Expenses&#148; shall be deemed to include the costs and expenses actually
incurred or accrued by Parent (including, without limitation, fees and expenses of counsel) in
connection with the collection under and enforcement of this Section&nbsp;8.03, together with interest
on such unpaid Fee and Expenses, commencing on the date that the Fee or such Expenses became due,
at a rate equal to the rate of interest publicly announced by Citibank, N.A., from time to time, in
The City of New York, as such bank&#146;s Prime Rate plus 2.00%. Payment of the fees and expenses
described in this Section&nbsp;8.03 shall not be in lieu of any damages incurred in the event of willful
or intentional breach of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.04. <U>Amendment</U>. This Agreement may be amended by the parties hereto by
action taken by or on behalf of their respective Boards of Directors at any time prior to the
Effective Time; <U>provided</U>, <U>however</U>, that, after the approval of this Agreement by
the stockholders of the Company, no amendment may be made that would reduce the amount or change
the type of consideration into which each Share shall be converted upon consummation of the Merger
without the approval of the Stockholders of the Company. This Agreement may not be amended except
by an instrument in writing signed by each of the parties hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.05. <U>Waiver</U>. At any time prior to the Effective Time, any party hereto may
(a)&nbsp;extend the time for the performance of any obligation or other act of any other party hereto,
(b)&nbsp;waive any inaccuracy in the representations and warranties of any other party contained herein
or in any document delivered pursuant hereto and (c)&nbsp;waive compliance with any agreement of any
other party or any condition to its own obligations contained herein. Any such extension or waiver
shall be valid if set forth in an instrument in writing signed by the party or parties to be bound
thereby.


<P align="center" style="font-size: 10pt"><B>ARTICLE IX</B>



<P align="center" style="font-size: 10pt"><B>GENERAL PROVISIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.01. <U>Non Survival of Representations, Warranties and Agreements</U>. The representations, warranties and agreements in this Agreement and in any certificate


<P align="center" style="font-size: 10pt">47
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">delivered pursuant hereto shall terminate at the Effective Time or upon the termination of this
Agreement pursuant to Section&nbsp;8.01, as the case may be, except that the agreements set forth in
Articles I and II and Sections&nbsp;6.03(b), 6.06, 6.10, 8.03 and this Article&nbsp;IX shall survive the
Effective Time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.02. <U>Notices</U>. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be deemed to have been
duly given upon receipt) by delivery in person, by telecopy or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with
this Section&nbsp;9.02):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if to Parent or Merger Sub:


<P align="left" style="font-size: 10pt; margin-left: 10%">Stantec Inc.<BR>
10160 &#150; 112 Street<BR>
Edmonton, Alberta T5K 2L6<BR>
Canada<BR>
Attention: Jeffrey S. Lloyd<BR>
Facsimile No: (780)&nbsp;917-7330<BR>
Email: jlloyd@stantec.com


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to:


<P align="left" style="font-size: 10pt; margin-left: 10%">Shearman &#038; Sterling LLP<BR>
Commerce Court West<BR>
Suite&nbsp;4405, P.O. Box 247<BR>
Toronto, Canada M5L 1E8<BR>
Attention: Christopher J. Cummings, Esq.<BR>
Facsimile No: (416)&nbsp;360 2958<BR>
Email: ccummings@shearman.com


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if to the Company:


<P align="left" style="font-size: 10pt; margin-left: 10%">The Keith Companies, Inc.<BR>
19 Technology Drive<BR>
Irvine, CA 92618<BR>
U.S.A.<BR>
Attention: Aram H. Keith<BR>
Facsimile No: (949)&nbsp;923-6026<BR>
Email: aram.keith@keithco.com


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to:


<P align="center" style="font-size: 10pt">48
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt; margin-left: 10%">Akin Gump Strauss Hauer &#038; Feld LLP<BR>
2029 Century Park East<BR>
Suite&nbsp;2400<BR>
Los Angeles, CA 90067-3012<BR>
Attention: C.N. Franklin Reddick III, Esq.<BR>
Facsimile No: (310)&nbsp;229 1001<BR>
Email: freddick@akingump.com


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
9.03. <U>Certain Definitions</U>. (a)&nbsp;For purposes of this Agreement:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>affiliate</U>&#148; of a specified person means a person who, directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control
with, such specified person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>beneficial owner</U>&#148;, with respect to any Shares, has the meaning ascribed to
such term under Rule&nbsp;13d-3(a) of the Exchange Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>business day</U>&#148; means any day on which the principal offices of the SEC in
Washington, D.C. are open to accept filings, or, in the case of determining a date when any
payment is due, any day on which banks are not required or authorized to close in The City
of New York.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Material Adverse Effect</U>&#148; means any event, circumstance, change or
effect that, individually or in the aggregate with all other events, circumstances, changes
and effects, is or is reasonably likely to be materially adverse to (i)&nbsp;the business,
prospects, condition (financial or otherwise), assets, liabilities or results of operations
of the Company and the Subsidiaries taken as a whole or (ii)&nbsp;the ability of the Company to
consummate the Transactions; <U>provided</U>, <U>however</U>, that Company Material
Adverse Effect (i)&nbsp;shall not include any event, circumstance, change or effect resulting
from (x)&nbsp;changes in general economic, regulatory or political conditions (including, without
limitation, acts of war or terrorism) or changes in securities markets in general that do
not have a materially disproportionate effect (relative to other industry participants) on
the Company or its Subsidiaries, (y)&nbsp;general changes in the industries in which the Company
and the Subsidiaries operate, except those events, circumstances, changes or effects that
adversely affect the Company and its subsidiaries to a materially greater extent than they
affect other entities operating in such industries or (z)&nbsp;the execution, announcement or
consummation of this Agreement and the Transactions, including the impact thereof on
relationships, contractual or otherwise, with customers, suppliers or employees.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>control</U>&#148; (including the terms &#147;<U>controlled by</U>&#148; and &#147;<U>under common
control with</U>&#148;) means the possession, directly or indirectly, or as trustee or executor,
of the power to direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, as trustee or executor, by contract or
credit arrangement or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148; means any United States federal, state or local or
non-United States laws relating to (i)&nbsp;releases or threatened releases of Hazardous
Substances


<P align="center" style="font-size: 10pt">49
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">or materials containing Hazardous Substances; (ii)&nbsp;the manufacture, handling,
transport, use, treatment, storage or disposal of Hazardous Substances or materials
containing Hazardous Substances; or (iii)&nbsp;pollution or protection of the environment,
health, safety or natural resources.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Substances</U>&#148; means (i)&nbsp;those substances defined in or regulated under
the following United States federal statutes and their state counterparts, as each may be
amended from time to time, and all regulations thereunder: the Hazardous Materials
Transportation Act, the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Clean Water Act, the Safe
Drinking Water Act, the Atomic Energy Act, the Federal Insecticide, Fungicide, and
Rodenticide Act and the Clean Air Act; (ii)&nbsp;petroleum and petroleum products, including
crude oil and any fractions thereof; (iii)&nbsp;natural gas, synthetic gas, and any mixtures
thereof; (iv)&nbsp;polychlorinated biphenyls, asbestos and radon; (v)&nbsp;any other contaminant; and
(vi)&nbsp;any substance, material or waste regulated by any Governmental Authority pursuant to
any Environmental Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148; means (i)&nbsp;United States, non-United States and
international patents, patent applications and statutory invention registrations, (ii)
trademarks, service marks, trade dress, logos, trade names, corporate names and other source
identifiers, and registrations and applications for registration thereof, (iii)
copyrightable works, copyrights, and registrations and applications for registration
thereof, and (iv)&nbsp;confidential and proprietary information, including trade secrets and
know-how.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>knowledge</U>&#148; of the Company means the actual knowledge of any of the Chief
Executive Officer, the Chief Financial Officer, the Chief Operating Officer or the General
Counsel of the Company, after due investigation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>knowledge</U>&#148; of Parent and Merger Sub means the actual knowledge of any
executive officer of Parent, after due investigation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>liens</U>&#148; means mortgages, pledges, liens, security interest, conditional and
installment sale agreements, encumbrances, charges or other claims of third parties of any
kind, including, without limitation, any easement, right of way or other encumbrance to
title, or any option, right of first refusal, or right of first offer, other than (A)&nbsp;liens
for current taxes and assessments not yet past due, (B)&nbsp;inchoate mechanics&#146; and
materialmen&#146;s liens arising in the ordinary course of business consistent with past
practice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent Material Adverse Effect</U>&#148; means any event, circumstance, change or
effect that, individually or in the aggregate with all other events, circumstances, changes
and effects, is or is reasonably likely to be materially adverse to (i)&nbsp;the business,
prospects, condition (financial or otherwise), assets, liabilities or results of operations
of Parent and its subsidiaries taken as a whole or (ii)&nbsp;the ability of Parent to consummate
the Transactions; <U>provided</U>, <U>however</U>, that Parent Material Adverse Effect
clause (i)&nbsp;shall not include any event, circumstance, change or effect resulting from (x)
changes in general


<P align="center" style="font-size: 10pt">50
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">economic, regulatory or political conditions (including without,
limitation, acts of war or terrorism) or changes in securities markets in general that do
not have a materially disproportionate effect (relative to other industry participants) on
Parent or its subsidiaries, (y)&nbsp;general changes in the industries in which Parent and its
subsidiaries operate, except those events, circumstances, changes or effects that adversely
affect Parent and its subsidiaries to a materially greater extent than they affect other
entities operating in such industries or (z)&nbsp;the execution, announcement or consummation of
this Agreement and the Transactions, including the impact thereof on relationships,
contractual or otherwise, with customers, suppliers or employees.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>person</U>&#148; means an individual, corporation, partnership, limited partnership,
limited liability company, syndicate, person (including, without limitation, a &#147;person&#148; as
defined in Section&nbsp;13(d)(3) of the Exchange Act), trust, association or entity or
government, political subdivision, agency or instrumentality of a government.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>subsidiary</U>&#148; or &#147;<U>subsidiaries</U>&#148; of the Company, the Surviving
Corporation, Parent or any other person means an affiliate controlled by such person,
directly or indirectly, through one or more intermediaries.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; shall mean any and all taxes, fees, levies, duties, tariffs, imposts
and other charges of any kind (together with any and all interest, penalties, additions to
tax and additional amounts imposed with respect thereto) imposed by any Governmental
Authority or taxing authority, including, without limitation: taxes or other charges on or
with respect to income, franchise, windfall or other profits, gross receipts, property,
sales, use, capital stock, payroll, employment, social security, workers&#146; compensation,
unemployment compensation or net worth; taxes or other charges in the nature of excise,
withholding, ad valorem, stamp, transfer, value-added or gains taxes; license, registration
and documentation fees; and customers&#146; duties, tariffs and similar charges.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The following terms have the meaning set forth in the Sections set forth below:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Defined Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Location of Definition</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Action</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 3.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;affiliate&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 2.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aggregate Cash Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aggregate Stock Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ASC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average Stock Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Blue Sky Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.05</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canadian GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.07</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash Election</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash Election Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash Payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">51
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Defined Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Location of Definition</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificate of Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.02</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in the Company Recommendation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.04</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Affiliate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 6.08</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Board</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Designated Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 6.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Disclosure Schedule</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Article III</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Licensed Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.13</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Owned Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.13</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Permits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 3.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Recommendation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.01</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Restricted Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 2.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company SEC Reports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Stock Awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Stock Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.04</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Stock Option Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.04</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Stockholders&#146; Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company Triggering Event</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 8.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Competing Transaction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.04</TD>
    <TD nowrap>(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Confidentiality Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.03</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dissenting Shareholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dissenting Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effective Time</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Election Deadline</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(i)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Elections</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Environmental Permits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 3.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.02</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.02</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 8.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 8.03</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed Ratio Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Floating Ratio Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Form of Election</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forward LLC Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(l)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Governmental Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.05</TD>
    <TD nowrap>(b)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">52
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Defined Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Location of Definition</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Holder Representative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HSR Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.05</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Insurance Policies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 3.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IRS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.05</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leased Real Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.12</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.12</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Material Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.17</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merger Consideration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merger LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(l)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merger Sub</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mixed Consideration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mixed Election</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mixed Election Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mixed Election Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Multiemployer Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Multiple Employer Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-U.S. Benefit Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notice of Superior Proposal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.04</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nasdaq</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 6.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NYSE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 6.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Option Consideration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 2.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Option Exchange Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 2.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Order</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 7.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Board</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Licensed Intellectual Property.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 4.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Owned Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 4.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Permits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 4.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Reports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Stock Option Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent 2004 Balance Sheet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 4.07</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.10</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Potential Dissenting Shareholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Potential Dissenting Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro Rata Amount of Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pro Rata Number of Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proxy Statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registration Statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Representatives</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.03</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reverse-Subsidiary Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(k)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">53
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Defined Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Location of Definition</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Significant Subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.04</TD>
    <TD nowrap>(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock Election</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock Election Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Superior Proposal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 6.04</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Support Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Surviving Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 1.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Terminating Company Breach</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 8.01</TD>
    <TD nowrap>(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Terminating Parent Breach</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 8.01</TD>
    <TD nowrap>(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TSX</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unvested Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 2.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#167; 6.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004 Balance Sheet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 3.07</TD>
    <TD nowrap>(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">401(k) Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 7.02</TD>
    <TD nowrap>(i)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">US$5.50 Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#167; 2.01</TD>
    <TD nowrap>(a)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.04. <U> Severability</U>. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the Transactions is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible
in a mutually acceptable manner in order that the Transactions be consummated as originally
contemplated to the fullest extent possible.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.05. <U>Entire Agreement; Assignment</U>. This Agreement and the Support Agreement
constitute the entire agreement among the parties with respect to the subject matter hereof and
supersede, except as set forth in Sections&nbsp;6.03(b), all prior agreements and undertakings, both
written and oral, among the parties, or any of them, with respect to the subject matter hereof.
This Agreement shall not be assigned (whether pursuant to a merger, by operation of law or
otherwise), except that Parent and Merger Sub may assign all or any of their rights and obligations
hereunder to any affiliate of Parent, <U>provided</U> that no such assignment shall relieve the
assigning party of its obligations hereunder if such assignee does not perform such obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.06. <U>Parties in Interest</U>. This Agreement shall be binding upon and inure
solely to the benefit of each party hereto, and nothing in this Agreement, express or


<P align="center" style="font-size: 10pt">54
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">implied, is
intended to or shall confer upon any other person any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.07. <U>Specific Performance</U>. The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement were not performed in accordance with the
terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at law or equity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.08. <U>Governing Law</U>. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts executed in and to be
performed in that State (other than those provisions set forth herein that are required to be
governed by the CCC). All actions and proceedings arising out of or relating to this Agreement
shall be heard and determined exclusively in any New York state or federal court. The parties
hereto hereby (a)&nbsp;submit to the exclusive jurisdiction of any New York state or federal court for
the purpose of any Action arising out of or relating to this Agreement brought by any party hereto,
and (b)&nbsp;irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any
such Action, any claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution, that the Action is
brought in an inconvenient forum, that the venue of the Action is improper, or that this Agreement
or the Transactions may not be enforced in or by any of the above-named courts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.09. <U>Headings</U>. The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.10. <U>Counterparts</U>. This Agreement may be executed and delivered (including
by facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an original but all of
which taken together shall constitute one and the same agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.11. <U>Waiver of Jury Trial</U>. Each of the parties hereto hereby waives to the
fullest extent permitted by applicable law any right it may have to a trial by jury with respect to
any litigation directly or indirectly arising out of, under or in connection with this Agreement or
the Transactions. Each of the parties hereto (a)&nbsp;certifies that no representative, agent or
attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce that foregoing waiver and (b)&nbsp;acknowledges that it and the other hereto
have been induced to enter into this Agreement and the Transactions, as applicable, by, among other
things, the mutual waivers and certifications in this Section&nbsp;9.11.


<P align="center" style="font-size: 10pt">55
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Parent, Merger Sub and the Company have caused this Agreement to be
executed as of the date first written above by their respective officers thereunto duly authorized.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STANTEC INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ AP Franceschini
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony P. Franceschini&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &#038; CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                 /s/ Jeffrey S. Lloyd
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Jeffrey S. Lloyd&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President, Secretary &#038;
General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STANTEC CONSULTING CALIFORNIA INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ AP Franceschini
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony P. Franceschini&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                     /s/ Michael Slocombe
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Michael J. Slocombe&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">THE KEITH COMPANIES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Aram H. Keith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Aram H. Keith&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                         /s/ Gary Campanaro
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Gary Campanaro&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">56
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<P align="right" style="font-size: 10pt">EXHIBIT 6.08



<P align="center" style="font-size: 10pt">FORM OF AFFILIATE LETTER FOR<BR>
AFFILIATES OF THE COMPANY



<P align="right" style="font-size: 10pt">April&nbsp;14, 2005



<P align="left" style="font-size: 10pt">Stantec Inc.<BR>
10160 &#150; 112 Street<BR>
Edmonton, Alberta T5K 2L6<BR>
Canada



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have been advised that as of the date of this letter I may be deemed to be an &#147;affiliate&#148; of
The Keith Companies, Inc., (the &#147;<U>Company</U>&#148;), as the term &#147;affiliate&#148; is defined for purposes
of paragraphs (c)&nbsp;and (d)&nbsp;of Rule&nbsp;145 of the rules and regulations (the &#147;<U>Rules and
Regulations</U>&#148;) of the Securities and Exchange Commission (the &#147;<U>Commission</U>&#148;) under the
Securities Act of 1933, as amended (the &#147;<U>Act</U>&#148;). Pursuant to the terms of the Agreement and
Plan of Merger and Reorganization, dated as of April&nbsp;14, 2005 (the &#147;<U>Merger Agreement</U>&#148;),
among Stantec Inc., a Canadian corporation (&#147;<U>Parent</U>&#148;), Stantec Consulting California Inc. a
California corporation (&#147;<U>Merger Sub</U>&#148;), and the Company, the Company will be merged with and
into Merger Sub (the &#147;<U>Merger</U>&#148;). Capitalized terms used in this letter agreement without
definition shall have the meanings assigned to them in the Merger Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the Merger, I may receive shares of common stock, without par value, of Parent
(the &#147;<U>Parent Shares</U>&#148;). I would receive such Parent Shares in exchange for shares (or upon
exercise of options for shares) owned by me of common stock, par value US$&nbsp;&nbsp;per share, of the
Company (the &#147;<U>Company Shares</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I represent, warrant and covenant to Parent that in the event I receive any Parent Shares as a
result of the Merger:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. I shall not make any sale, transfer or other disposition of the Parent Shares in
violation of the Act or the Rules and Regulations.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. I have carefully read this letter and the Merger Agreement and discussed the
requirements of such documents and other applicable limitations upon my ability to sell,
transfer or otherwise dispose of the Parent Shares, to the extent I felt necessary, with my
counsel or counsel for the Company.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. I have been advised that the issuance of the Parent Shares to me pursuant to the
Merger has been registered with the Commission under the Act on a Registration Statement on
Form F-4. However, I have also been advised that, because at the time the Merger is
submitted for a vote of the shareholders of the Company, (a)&nbsp;I may be deemed to be an
affiliate of the Company and (b)&nbsp;the distribution by me of the Parent Shares has not been
registered under the Act, I may not sell, transfer or otherwise dispose of the Parent Shares
issued to me in the Merger unless (i)&nbsp;such sale, transfer or other disposition

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left:3%; font-size: 10pt">is made in conformity with the volume and other limitations of Rule&nbsp;145 promulgated by
the Commission under the Act, (ii)&nbsp;such sale, transfer or other disposition has been
registered under the Act or (iii)&nbsp;in the opinion of counsel reasonably acceptable to Parent,
such sale, transfer or other disposition is otherwise exempt from registration under the
Act.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. I understand that Parent is under no obligation to register the sale, transfer or
other disposition of the Parent Shares by me or on my behalf under the Act or, except as
provided in paragraph 2(A) below, to take any other action necessary in order to make
compliance with an exemption from such registration available.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. I understand that there will be placed on the certificates for the Parent Shares
issued to me, or any substitutions therefor, a legend stating in substance:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A TRANSACTION TO
WHICH RULE 145 PROMULGATED UNDER THE SECURITIES ACT OF 1933 APPLIES. THE SHARES
REPRESENTED BY THIS CERTIFICATE MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH THE TERMS
OF AN AGREEMENT DATED APRIL 14, 2005 BETWEEN THE REGISTERED HOLDER HEREOF AND
PARENT, A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICES OF PARENT.&#148;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. I understand that unless a sale or transfer is made in conformity with the
provisions of Rule&nbsp;145, or pursuant to a registration statement, Parent reserves the right
to put the following legend on the certificates issued to my transferee:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND WERE ACQUIRED FROM A PERSON WHO RECEIVED SUCH SHARES IN A
TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER THE SECURITIES ACT OF 1933 APPLIES.
THE SHARES HAVE BEEN ACQUIRED BY THE HOLDER NOT WITH A VIEW TO, OR FOR RESALE IN
CONNECTION WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF THE SECURITIES ACT
OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933.&#148;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Execution of this letter should not be considered an admission on my part that I am
an &#147;affiliate&#148; of the Company as described in the first paragraph of this letter, nor as a
waiver of any rights I may have to object to any claim that I am such an affiliate on or
after the date of this letter.


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt; margin-left: 50%">Very truly yours,


<P align="left" style="font-size: 10pt; margin-left: 50%; border-bottom: 1px solid #000000">&nbsp;

<DIV align="left" style="font-size: 10pt; margin-left: 50%">Name:
</DIV>

<P align="left" style="font-size: 10pt">Agreed and accepted this 14th day<BR>
of April, 2005, by<BR>
STANTEC INC.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">3
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>t16403exv99w2.htm
<DESCRIPTION>STOCKHOLDERS SUPPORT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;2</B>



<P align="center" style="font-size: 10pt"><B>STOCKHOLDERS SUPPORT AGREEMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS AGREEMENT, dated as of April&nbsp;14, 2005 (this &#147;<U>Agreement</U>&#148;), among Stantec
Inc., a Canadian corporation (&#147;<U>Parent</U>&#148;), Stantec Consulting California Inc., a California
corporation and a wholly owned subsidiary of Parent (&#147;<U>Purchaser</U>&#148;), and each of the
stockholders whose names appear on Exhibit&nbsp;A to this Agreement (each, a &#147;<U>Stockholder</U>&#148; and,
collectively, the &#147;<U>Stockholders</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, as of the date hereof and except as noted on Exhibit&nbsp;A hereto, each Stockholder
represents and warrants to Parent that he, she or it owns of record and/or beneficially and has
good, valid and marketable title to, free and clear of any Lien, proxy, voting restriction,
limitation on disposition, adverse claim of ownership or use or encumbrance of any kind, other than
pursuant to this Agreement, a margin account established in accordance with Regulation&nbsp;T under the
Securities Exchange Act of 1934, as amended, the trust agreement establishing the Aram H. Keith and
Margie R. Keith Revocable Trust dated October&nbsp;23, 1989 (the &#147;<U>Trust</U>&#148;), and the Trust has the
sole power to vote the number of shares of common stock, par value $0.001 per share (&#147;Company
Common Stock&#148;), of The Keith Companies, Inc., a California corporation (the &#147;Company&#148;), as set
forth opposite such Stockholder&#146;s name on Exhibit&nbsp;A hereto (all such shares of Company Common Stock
and any shares of Company Common Stock of which ownership of record or the power to vote is
hereafter acquired by the Stockholders prior to the termination of this Agreement being referred to
herein as the &#147;Shares&#148;); and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Parent, Purchaser and the Company propose to enter into, simultaneously herewith, an
Agreement and Plan of Merger and Reorganization (the &#147;Merger Agreement&#148;; terms used but not defined
in this Agreement shall have the meanings ascribed to them in the Merger Agreement), a draft of
which has been made available to each Stockholder, which provides, upon the terms and subject to
the conditions thereof, for the merger of Purchaser with and into the Company (the &#147;Merger&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein and in the Merger Agreement, and intending to be legally bound hereby, the
Stockholders hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Representations and Warranties of the Stockholders</U>. Each Stockholder hereby,
jointly and severally, represents and warrants to Parent and Purchaser as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Trust is a trust duly organized, validly existing and in good standing under the laws
of the State of California. The Trust has all necessary power and authority to execute and deliver
this Agreement and to perform its obligations hereunder. The execution and delivery of this
Agreement by the Trust and the performance by the Trust of its obligations hereunder have been duly
and validly authorized by all necessary action, and no other proceedings on the part of the Trust
are necessary to authorize this Agreement or to perform its obligations hereunder. This Agreement
has been duly executed and delivered by the Trust and, assuming the due authorization, execution
and delivery by Parent and Purchaser, constitutes the legal, valid and binding obligation of the
Trust, enforceable against the Trust in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy insolvency and similar laws affecting creditors&#146; rights
generally and general principles of equity (whether considered in a proceeding at law or equity).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution and delivery of this Agreement by the Trust do not, and the performance of
this Agreement by the Trust will not, (A)&nbsp;conflict with or violate the organizational documents of
the Trust, (B)&nbsp;assuming that all consents, approvals, authorizations and other actions described in
subsection (c)&nbsp;have been obtained and all filings and obligations described in subsection (c)&nbsp;have
been made, conflict with or violate any Law applicable to the Trust or by which any property or
asset of the Trust is bound or affected, or (C)&nbsp;result in any breach of or constitute a default (or
an event which, with notice or lapse of time or both, would become a default) under, or give to
others any right of termination, amendment, acceleration or cancellation of, or result in the
creation of a Lien or other


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">encumbrance on any property or asset of the Trust pursuant to, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other instrument or
obligation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The execution and delivery of this Agreement by each Stockholder does not, and the
performance of this Agreement by each Stockholder will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any Governmental Authority, except
for applicable requirements, if any, of the Securities Act of 1933, as amended, the Exchange Act
and the HSR Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;With respect to Aram H. Keith and Margie R. Keith (each an &#147;<U>Individual</U>&#148;), this
Agreement has been duly executed and delivered by each Individual and, assuming the due
authorization, execution and delivery by Parent and Purchaser, constitutes the legal, valid and
binding obligation of each Individual, enforceable against each Individual in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy insolvency and similar
laws affecting creditors&#146; rights generally and general principles of equity (whether considered in
a proceeding at law or equity).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except for shares of Company Common Stock held directly by the Trust, the Individuals do
not own, either directly or beneficially, any shares of Company Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Grant of Proxy</U>. Each Stockholder, by this Agreement, with respect to his, her or
its Shares, hereby agrees, and to secure such agreement, grants an irrevocable proxy to Parent (and
agrees to execute such documents or certificates evidencing such proxy as Parent may reasonably
request) to vote, at any meeting of the stockholders of the Company, and in any action by written
consent of the stockholders of the Company, all of such Stockholder&#146;s Shares (i)&nbsp;in favor of the
approval and adoption of the Merger Agreement and approval of the Merger, (ii)&nbsp;against any action,
agreement or transaction (other than the Merger Agreement or the Merger) or proposal (including any
Superior Proposal) that would result in a breach of any covenant, representation or warranty or any
other obligation or agreement of the Company under the Merger Agreement or that could result in any
of the conditions to the Company&#146;s obligations under the Merger Agreement not being fulfilled, and
(iii)&nbsp;in favor of any other matter necessary to the consummation of the Merger and considered and
voted upon by the stockholders of the Company. Each Stockholder further agrees to cause such
Stockholder&#146;s Shares to be voted in accordance with the foregoing. THIS PROXY IS IRREVOCABLE AND
SECURES THE PERFORMANCE BY THE STOCKHOLDERS OF THE DUTIES SET FORTH HEREIN. Each Stockholder
acknowledges receipt and review of a copy of the Merger Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Transfer of Shares</U>. Each Stockholder agrees that he, she or it shall not, directly
or indirectly, (a)&nbsp;sell, assign, transfer (including by operation of law), lien, pledge, dispose of
or otherwise encumber any of the Shares or otherwise agree to do any of the foregoing, (b)&nbsp;deposit
any Shares into a voting trust or enter into a voting agreement or arrangement or grant any proxy
or power of attorney with respect thereto that is inconsistent with this Agreement, (c)&nbsp;enter into
any contract, option or other arrangement or undertaking with respect to the direct or indirect
acquisition or sale, assignment, transfer (including by operation of law) or other disposition of
any Shares or (d)&nbsp;take any action that would make any representation or warranty of such
Stockholder herein untrue or incorrect in any material respect or have the effect of preventing or
disabling the Stockholder from performing his, her or its obligations hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>No Solicitation of Transactions</U>. None of the Stockholders shall, directly or
indirectly, (a)&nbsp;solicit, initiate or encourage the submission of, any Competing Transaction or (b)
participate in any discussions or negotiations regarding, or furnish to any person, any information
with respect to, or otherwise cooperate in any way with respect to, or assist or participate in,
facilitate or encourage, any unsolicited proposal that constitutes, or may reasonably be expected
to lead to, a Superior Proposal; <U>provided</U>, <U>however</U>, that nothing in this Section&nbsp;3
shall prevent Aram H. Keith, in his capacity as a director and executive officer of the Company
from, engaging in any activity permitted pursuant to Section&nbsp;6.04 of the Merger Agreement. Each
Stockholder shall, and shall direct his, her or its representatives and agents to, immediately
cease and terminate any discussions or negotiations with any parties that may be ongoing with
respect to any Competing Transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Information for Proxy Statement/Prospectus; Disclosure</U>. Each Stockholder
authorizes and agrees to permit Parent and Purchaser to publish and disclose in the Proxy


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Statement/Prospectus and related filings under the securities laws such Stockholder&#146;s identity
and ownership of Shares and the nature of his, her or its commitments, arrangements and
understandings under this Agreement and any other information required by applicable Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Termination</U>. The obligations of the Stockholders under this Agreement shall
terminate upon the earlier of (i)&nbsp;the Effective Time and (ii)&nbsp;upon the termination of the Merger
Agreement. Nothing in this Section&nbsp;7 shall relieve any party of liability for any breach of this
Agreement occurring prior to the time of such termination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Miscellaneous</U>. Notwithstanding anything to the contrary contained herein, no
action of a Stockholder in his, her or its capacity as a director or executive officer of the
Company shall constitute a breach of this Agreement. Except as otherwise provided herein, all
costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such costs and expenses, whether or not the
transactions contemplated hereby are consummated; all notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be deemed to have been
duly given upon receipt) by delivery in person, by telecopy, e-mail or by registered or certified
mail (postage prepaid, return receipt requested) to the respective parties at their addresses as
specified on the signature page(s) of this Agreement; if any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy,
all other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party; this Agreement and the Merger Agreement
constitute the entire agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements and undertakings, both written and oral, among the parties, or any
of them, with respect to the subject matter hereof; this Agreement shall not be assigned (whether
pursuant to a merger, by operation of law or otherwise), except that Parent may assign all or any
of its rights and obligations hereunder to any affiliate of Parent, <U>provided</U>,
<U>however</U>, that no such assignment shall relieve the assigning party of its obligations
hereunder if such assignee does not perform such obligations; this Agreement shall be binding upon
and inure solely to the benefit of each party hereto, and nothing in this Agreement, express or
implied, is intended to or shall confer upon any other person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement; the parties hereto agree that irreparable
damage would occur in the event any provision of this Agreement was not performed in accordance
with the terms hereof and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or in equity; this Agreement shall be governed by,
and construed in accordance with, the laws of the State of California applicable to contracts
executed in and to be performed in that State; this Agreement may be executed and delivered
(including by facsimile transmission) in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement; from time to time, at the
request of Parent, in the case of any Stockholder, or at the request of the Stockholders, in the
case of Parent and Purchaser, and without further consideration, each party shall execute and
deliver or cause to be executed and delivered such additional documents and instruments and take
all such further action as may be reasonably necessary or desirable to give effect to the rights,
duties and obligations of the parties set forth in this Agreement; <B>each of the parties hereto
hereby waives to the fullest extent permitted by applicable law any right it may have to a trial by
jury with respect to any litigation directly or indirectly arising out of, under or in connection
with this Agreement.</B>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STANTEC INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/a/ AP Franceschini
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony P. Franceschini&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &#038; CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">               /s/ Jeffrey S. Lloyd
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Jeffrey S. Lloyd&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President, Secretary &#038;<BR>
General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STANTEC CONSULTING CALIFORNIA INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/a/ AP Franceschini
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony P. Franceschini&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">             /s/ Michael Slocombe
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Michael J. Slocombe&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ARAM H. KEITH AND MARGIE R. KEITH REVOCABLE TRUST<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Aram H. Keith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Aram H. Keith, as trustee&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Margie R. Keith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Margie R. Keith, as trustee&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                             /s/ Aram H. Keith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" align="left">Aram H. Keith&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                             /s/ Margie R. Keith
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" align="left">Margie R. Keith&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">EXHIBIT A



<P align="center" style="font-size: 10pt">LIST OF STOCKHOLDERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Shares of Company</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Common Stock Owned</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name of Stockholder</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Beneficially</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARAM H. KEITH AND MARGIE R. KEITH REVOCABLE
TRUST DATED OCTOBER 23, 1989</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,366,217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARAM H. KEITH</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,366,217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MARGIE R. KEITH</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,366,217</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
