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<SEC-DOCUMENT>0000950124-07-006360.txt : 20071221
<SEC-HEADER>0000950124-07-006360.hdr.sgml : 20071221
<ACCEPTANCE-DATETIME>20071221155727
ACCESSION NUMBER:		0000950124-07-006360
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20071220
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071221
DATE AS OF CHANGE:		20071221

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPION ENTERPRISES INC
		CENTRAL INDEX KEY:			0000814068
		STANDARD INDUSTRIAL CLASSIFICATION:	MOBILE HOMES [2451]
		IRS NUMBER:				382743168
		STATE OF INCORPORATION:			MI
		FISCAL YEAR END:			1225

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09751
		FILM NUMBER:		071323163

	BUSINESS ADDRESS:	
		STREET 1:		2701 CAMBRIDGE COURT
		STREET 2:		STE 300
		CITY:			AUBURN HILLS
		STATE:			MI
		ZIP:			48326
		BUSINESS PHONE:		2483409090

	MAIL ADDRESS:	
		STREET 1:		2701 UNIVERSITY DRIVE
		STREET 2:		STE 300
		CITY:			AUBURN HILLS
		STATE:			MI
		ZIP:			48326
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>k22500e8vk.htm
<DESCRIPTION>CURRENT REPORT DATED DECEMBER 20, 2007
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): December&nbsp;20, 2007</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Champion Enterprises, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Michigan<BR>
<DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">(State or Other Jurisdiction of Incorporation)</FONT></DIV></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">1-9751
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">38-2743168</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">755 W. Big Beaver Road, Suite&nbsp;1000, Troy, Michigan
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">48084</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(248)&nbsp;614-8200<BR>
<DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">(Registrant&#146;s Telephone Number, Including Area Code)</FONT></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Not Applicable<BR>
<DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">(Former Name or Former Address, if Changed Since Last Report)</FONT></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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

<!-- PAGEBREAK -->
<P><HR noshade><P>

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

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;1.01. Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;2.01. Completion of Acquisition or Disposition of Asset</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Index to Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="k22500exv2w1.htm">Asset Purchase Agreement</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<!-- link1 "Item&nbsp;1.01. Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;20, 2007, Champion Enterprises, Inc. (the &#147;<U>Company</U>&#148;), through its subsidiaries
Champion Home Builders Co. (&#147;<U>Home Builders</U>&#148;) and 1367606 Alberta ULC (&#147;<U>Buyer</U>&#148;),
entered into an Asset Purchase Agreement, dated as of December&nbsp;17, 2007 (the &#147;<U>Agreement</U>&#148;),
with SRI Homes Inc., NGI Investment Corporation, Robert Adria and Brian Holterhus
(&#147;<U>Sellers</U>&#148;) for the purchase by Buyer of the business and substantially all the assets of
SRI Homes Inc. for total consideration of $114&nbsp;million (CAD) plus the discharge or assumption of
certain liabilities. The consideration is comprised of $90&nbsp;million (CAD) cash at closing and
a pre-payable note for $24&nbsp;million (CAD) due January&nbsp;1, 2009 bearing interest at a rate of 8 1/3
percent per year (the &#147;<U>Note</U>&#148;). Home Builders has guaranteed the payment and performance by
Buyer of the Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Buyer and Sellers have each made customary representations, warranties and covenants in the
Agreement. Buyer and Sellers each agreed to indemnify the other for certain losses arising out of
breaches or representations and warranties, covenants and other specified matters. Consummation of
the Agreement is subject to customary conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing description of the Agreement is not complete and is qualified in its entirety by
reference to the full text of the Agreement, a copy of which is attached as Exhibit&nbsp;2.1 to this
Current Report on Form 8-K and is incorporated herein by reference.
</DIV>

<!-- link1 "Item&nbsp;2.01. Completion of Acquisition or Disposition of Asset" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01. Completion of Acquisition or Disposition of Asset.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;21, 2007, Buyer completed the acquisition of the business and substantially all the
assets of SRI Homes Inc. pursuant to the Agreement.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>
</DIV>


<DIV style="margin-top: 6pt">
<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%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial Statements of Businesses Acquired.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of filing of this Current Report on Form 8-K, it is impracticable for
the Company to provide the financial statements required by Item&nbsp;9.01(a) of Form
8-K. In accordance with Item&nbsp;9.01(a)(4) of Form 8-K, such financial statements will
be filed by amendment to this Form 8-K within 71&nbsp;days after the required filing date
for this Current Report.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pro Forma Financial Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of filing of this Current Report on Form 8-K, it is impracticable for
the Company to provide the pro forma financial information required by Item&nbsp;9.01(b)
of Form 8-K. In accordance with Item&nbsp;9.01(b)(2) of Form 8-K, such financial
statements will be filed by amendment to this Form 8-K within 71&nbsp;days after the
required filing date for this Current Report.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibits.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">Exhibit&nbsp;2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Asset Purchase Agreement, dated as of December&nbsp;17, 2007, among 1367606 Alberta ULC,
Champion Home Builders Co., SRI Homes Inc., NGI Investment Corporation, Robert Adria and Brian
Holterhus.</TD>
</TR>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<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">CHAMPION ENTERPRISES, 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/ Roger K. Scholten
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Roger K. Scholten, Senior Vice President,</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: December&nbsp;21, 2007

</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "Index to Exhibits" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Index to Exhibits</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B></TD>
</TR>
<tr><td>&nbsp;</td></tr>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Purchase Agreement, dated as of December&nbsp;17, 2007, among
1367606 Alberta ULC, Champion Home Builders Co., SRI Homes
Inc., NGI Investment Corporation, Robert Adria and Brian
Holterhus.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>k22500exv2w1.htm
<DESCRIPTION>ASSET PURCHASE AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w1</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">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ASSET PURCHASE AGREEMENT</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AMONG</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>1367606 ALBERTA ULC,<BR>
an Alberta unlimited liability corporation,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CHAMPION HOME BUILDERS CO.<BR>
a Michigan corporation,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SRI HOMES INC.<BR>
an Alberta corporation,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NGI INVESTMENT CORPORATION<BR>
an Alberta corporation,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ROBERT ADRIA</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BRIAN HOLTERHUS</B>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>December&nbsp;17, 2007</B>
</DIV>

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





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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<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="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;1</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PURCHASE OF ACQUIRED ASSETS AND ASSUMPTION OF LIABILITIES</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and Sale</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Acquired Assets</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Assets</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Liabilities Assumed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liabilities Not Assumed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Cash Purchase Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calculation of Cash Purchase Price</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Allocation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Elections</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;2</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CLOSING</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Date</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deliveries at the Closing</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents of Third Parties</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Procedures</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concurrent Delivery</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer of Purchased Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;3</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REPRESENTATIONS AND WARRANTIES OF SELLER</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qualification; Location of Business and Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries and Investments</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authority and Enforceability</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third-Party Consents and Approvals</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Conflict or Violation</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Condition and Liabilities</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Absence of Certain Changes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounts Receivable</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inventories</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title; Business Assets</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Condition of Assets</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owned Real Property</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leased Real Property</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.15</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leased Personal Property</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.16</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Matters</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.17</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Benefit Plans</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.18</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Contracts</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.19</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Customers and Suppliers</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 align="left" valign="top">3.20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Returns and Taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<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="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Permits</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 align="left" valign="top">3.22</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property Rights.</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 align="left" valign="top">3.23</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Pending Litigation or Proceedings</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.24</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.25</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.26</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance Coverage</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.27</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Products Liability and Warranty Claims</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.28</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Relationships with Related Persons</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.29</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Building Codes and other Legal Requirements</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.30</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokers and Finders</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.31</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Disclosure</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.32</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capital Structure of Seller</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.33</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Residency</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.34</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Matters</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.35</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Floorplan Program</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;4</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REPRESENTATIONS AND WARRANTIES OF BUYER</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization</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 align="left" valign="top">4.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authority and Enforceability</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 align="left" valign="top">4.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third-Party Consents</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Conflict or Violation</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Standards Act</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokers and Finders</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;5</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PRE-CLOSING COVENANTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access and Investigation</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents and Approvals</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 align="left" valign="top">5.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commercially Reasonable Efforts</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 align="left" valign="top">5.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Update Schedules</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 align="left" valign="top">5.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Name</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 align="left" valign="top">5.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Clearance Certificates, Filings and Notices</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 align="left" valign="top">5.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Risk of Loss</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exclusivity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents of Third Parties; Governmental Approvals</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maintenance of Leases</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;6</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ADDITIONAL COVENANTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>36</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employees and Employee Benefits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of all Taxes Resulting from Sale of Acquired Assets by Seller</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assistance in Proceedings</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Customer and Other Business Relationships</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retention of and Access to Records</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prorations and Utilities</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Further Assurances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<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="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Product Liability Matters</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cooperation on Tax Matters</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Checks and Drafts</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Endorsement Authorization</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Releases</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 align="left" valign="top">6.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access to Records after Closing</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 align="left" valign="top">6.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Taxes on Sale and Transfer</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 align="left" valign="top">6.15</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.16</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seller&#146;s Website</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.17</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.18</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Estevan Plant Asbestos</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.19</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pre-Closing Amalgamation</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Western Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;7</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CONDITIONS TO CLOSING</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>43</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions to Obligations of Buyer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions to Obligations of Seller</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 align="left" valign="top">7.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consideration re Conditions Precedent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;8</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>INDEMNIFICATION</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>45</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification By Seller, the Shareholder and the Principals</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification By Seller, the Shareholder and the Principals for</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 align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Claims</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification by Buyer</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defense of Third-Party Claims</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 align="left" valign="top">8.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Claims</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 align="left" valign="top">8.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification Limitations</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Right of Setoff; Escrow</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;9</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TERMINATION</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Termination</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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effect of Termination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not an Election</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Conditions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>ARTICLE&nbsp;10</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>OTHER PROVISIONS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>50</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appendices, Exhibits and Schedules</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Entire Agreement; No Third Party Beneficiaries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounting Terms</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Currency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts; Headings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-iii-<!-- /Folio -->

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<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="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Construction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Successors and Assigns</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interpretation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Parent Guarantee of Note</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-iv-<!-- /Folio -->

</DIV>
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<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"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ASSET PURCHASE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS ASSET PURCHASE AGREEMENT (the &#147;<U>Agreement</U>&#148;) is made as of December&nbsp;17, 2007, by
and among 1367606 Alberta ULC<FONT style="font-variant: SMALL-CAPS">, </FONT>an Alberta unlimited liability corporation
(&#147;<U>Buyer</U>&#148;), Champion Home Builders Co., a Michigan corporation (&#147;<U>Parent</U>&#148;), SRI Homes
Inc., an Alberta corporation (&#147;<U>Seller</U>&#148;), NGI Investment Corporation (the &#147;Shareholder&#148;) and
Robert Adria and Brian Holterhus (each, a &#147;<U>Principal</U>&#148; and together, the
&#147;<U>Principals</U>&#148;). Capitalized terms not otherwise defined herein have the meanings set forth
in Appendix&nbsp;A attached hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">RECITALS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Shareholder owns 100% of the shares in the capital stock of Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Principals, directly or indirectly, own shares in the capital stock of the Shareholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller, among other things, is engaged in the manufacture and sale of residential and
commercial modular homes, buildings and related products, the retail sale of manufactured homes
housing, and the wholesale financing of manufactured housing (such manufacture, sale and financing
being hereinafter referred to as the &#147;<U>Business</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently herewith, Seller, the Shareholder and the Principals have provided to Buyer and
Parent a disclosure letter regarding the Business (the &#147;<U>Disclosure Letter</U>&#148;) which
Disclosure Letter has been accepted and will be relied upon by each of the Buyer and Parent in
entering into this Agreement and in proceeding with the transactions contemplated by it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Acquired
Assets (as defined in Appendix&nbsp;A), upon the terms and subject to the conditions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the mutual covenants and agreements herein contained, the sum of One
Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is
hereby confirmed, the parties, intending to be legally bound, agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE&nbsp;1<BR>
PURCHASE OF ACQUIRED ASSETS AND<BR>
ASSUMPTION OF LIABILITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.1 Purchase and Sale. </B>Upon the terms and subject to the conditions of this Agreement, at the
Closing (as defined in Appendix&nbsp;A), Seller shall sell, assign, transfer, convey and deliver, or
cause to be sold, assigned, transferred, conveyed and delivered, to Buyer and Buyer shall purchase,
free and clear of all Liens (as defined in Appendix&nbsp;A) other than Permitted Liens (as defined in
Appendix&nbsp;A), all right, title and interest in, to and under the Acquired Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.2 Acquired Assets. </B>The term &#147;<U>Acquired Assets</U>&#148; means all of the assets, properties,
goodwill and rights that are owned, leased or licensed by Seller or its subsidiaries and
affiliates, SRI Equipment &#038; Real Estate Inc., Interior Modular Construction Services Corporation,
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">- 2 -

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dynamic Modular Homes Store Ltd. (&#147;Dynamic&#148;) and Premier Modular Homes Inc. (collectively, the
&#147;Subsidiaries&#148;) on the Closing Date (as defined in Appendix&nbsp;A) and used, held for use or intended
to be used in the operation or conduct of the Business, of whatever kind and nature, real, personal
or mixed, tangible or intangible, together with all rights and interests of Western Guarantee
Corporation (a body corporate pursuant to the laws of British Columbia) (&#147;Western&#148;) in respect of
the ten year structural warranties which Western has previously granted to approximately 2,145
customers of the Business (the &#147;Western Warranties&#148;), other than the Excluded Assets (as defined in
Appendix&nbsp;A), including, but not limited to, the following used, held for use or intended to be used
in the operation or conduct of the Business:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all deposits (including, without limitation, customer deposits and the cash relating to
those deposits, but specifically excluding non-Business related cash deposits with financial
institutions), prepaid expenses, credits, deferred charges, advance payments and prepaid items;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all accounts receivable, notes receivable, dealer notes receivable under the Floorplan
Program as listed in <B>Schedule </B>1.2(b) as at the date hereof and other amounts receivable from third
parties (&#147;<U>Receivables</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all inventories, including raw materials, work in process, finished goods, Yard Inventory,
retail inventory, components, spare parts, packaging materials and all other materials and supplies
used or consumed by Seller in the production of finished goods (including inventories held at any
location controlled by Seller and inventories previously purchased and in transit to such
locations) (&#147;<U>Inventory</U>&#148;); &#147;<U>Yard Inventory</U>&#148; means all completed homes and other
buildings that are either fully ready for shipment or are in transit;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all other tangible personal property and interests therein, including, but not limited to,
all machinery, equipment, tools, patterns, molds, trade fixtures, furniture, furnishings, vehicles,
computer hardware, drawings, designs and blue prints (&#147;<U>Personal Property</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the Owned Real Property listed on <B>Schedule&nbsp;</B>3.13(a) and the Leased Real Property listed on
<B>Schedule&nbsp;</B>3.14, in each case together with Seller&#146;s right, title and interest in all buildings,
improvements, fixtures and all appurtenances thereto (&#147;<U>Real Property</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all intangible rights and property of Seller, including, but not limited to, the
Intellectual Property Rights (as defined in Appendix&nbsp;A), going concern value, goodwill, telephone,
telecopy, e-mail and internet addresses and listings;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all permits, approvals, consents, registrations, licenses, certificates, variances or
other authorizations granted by or obtained from any Governmental Authority (as defined in Appendix
A) (&#147;<U>Permits</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all contracts, leases, licenses, agreements, commitments, purchase orders, work orders,
customer orders, sales orders and other arrangements, including the Floorplan Program
(&#147;<U>Contracts</U>&#148;) to which Seller is a party or by which Seller is bound or to which any of the
Acquired Assets are subject, in each case, relating to the Business, which are listed on <B>Schedule
&nbsp;</B>3.18 and those Contracts that are not required to be listed on <B>Schedule&nbsp;</B>3.18 in accordance with
Section&nbsp;3.18(a) (&#147;<U>Assigned Contracts</U>&#148;);
</DIV>
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio --> - 3 - <!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Seller&#146;s Employee Plans (as defined in Appendix&nbsp;A) described in <B>Schedule </B>3.17 or otherwise
provided for herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all books and records, including, but not limited to, financial, accounting and personnel
records, property records, production records, engineering records, environmental compliance
records, files, invoices, customer lists and records, supplier lists and records, manuals,
correspondence, studies, reports, stationery, forms, labels, shipping materials, brochures, art
work, photographs, creative materials, advertising materials and other documents and data owned or
used by Seller relating to the Business; provided that Buyer confirms its intention that all such
books and records will remain in their present locations and agrees that it shall in any event
maintain such books and records in Western Canada, and Seller shall have the right to retain, or
obtain after Closing at Buyer&#146;s reasonable expense, a copy of all such records for periods prior to
the Effective Time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all rights, claims, causes of action and choses in action against third parties relating
to the Acquired Assets or the Business (including, but not limited to, rights against suppliers
under warranties covering any Inventory or Personal Property), except for current counterclaims and
crossclaims in connection with litigation and/or causes of action not assumed by Buyer hereunder;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all other tangible and intangible assets of Seller relating to the Business, whether or
not carried at value or listed on the books and records of Seller, and whether or not in the
possession of Seller or others;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;copies of all Customer Lists relating to the Business and its Intellectual Property and
other Intangibles, including the rights to use &#147;SRI&#148; and the current names and trade names of each
Subsidiary, as a corporate name and trade name, and in an Internet URL (or any other name including
&#147;SRI&#148; or the Subsidiary names), all as provided more fully in Sections&nbsp;2.2(a) and 5.6 below; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;all books and records of Western pertaining to the Western Warranties.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.3 Excluded Assets. </B>Notwithstanding anything to the contrary contained elsewhere in this
Agreement, the Excluded Assets (as defined below) are not part of the sale and purchase
contemplated hereunder, are excluded from the Acquired Assets and shall remain the property of
Seller and the Subsidiaries after the Closing. The term &#147;<U>Excluded Assets</U>&#148; means:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all minute books, stock records, tax returns and similar corporate records of Seller and
the Subsidiaries (other than Western);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all claims of Seller for any federal, provincial, local or foreign Tax refunds;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all cash and cash equivalents (other than cash described in Section&nbsp;1.2(a));
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any of Seller&#146;s Employee Plans not described in <B>Schedule </B>3.17 or otherwise provided for
herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;all of Seller&#146;s insurance policies;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all real property listed on <B>Schedule&nbsp;</B>1.3(f) hereto (the &#147;Excluded Real Property&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all counterclaims or crossclaims relating to litigation, investigations and other matters
within the definition of Excluded Liabilities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all personal items of the Principals listed on <B>Schedule </B>1.3(h) hereto to the extent not
needed in the conduct of the Business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Seller&#146;s shares in Oncology Research International Ltd. (the &#147;<U>Excluded Business</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all stock or other equity interests in any entity other than the Subsidiaries held by
Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;any refunds or credits with respect to Excluded Taxes and any input tax credits receivable
under the Excise Tax Act in respect of GST paid or payable by Seller under that Act in respect of
Goods and Services acquired for the Business prior to the Effective Time; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all the issued and outstanding shares of Western Guarantee Corporation (a body corporate
pursuant to the laws of British Columbia) (&#147;Western&#148;) and all issued and outstanding shares of any
of the subsidiaries which are not amalgamated with Seller pursuant to Section&nbsp;6.19 of this
Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.4 Certain Liabilities Assumed. </B>Upon the terms and subject to the conditions of this Agreement,
Buyer shall assume and agree to pay, perform and discharge only the following (subject to the
limitations in Section&nbsp;1.5), which shall be referred to herein collectively as the &#147;<U>Assumed
Liabilities</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all accounts payable and accrued liabilities of Seller and the Subsidiaries arising in the
ordinary course of the Business, or payable under the Floorplan Program (comprising as at the date
of this Agreement those notes payable listed in <B>Schedule </B>1.4(a)) with ordinary course payment
terms, but only to the extent included in the calculation of Closing Working Capital (as defined in
Appendix&nbsp;A) in accordance with Sections&nbsp;1.6 and 1.8;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all obligations and liabilities of Seller and the Subsidiaries under the written
warranties, forms of which are set forth on <B>Schedule&nbsp;</B>3.27, given by them in the ordinary course of
the Business consistent with past practice on or prior to the Closing Date, but solely for, and
only to the extent of, claims or requests of customers for service and/or repair or replacement
(&#147;<U>Ordinary Course Warranty Claims</U>&#148;) and, for greater certainty, excluding any obligations
or liabilities in connection with existing litigation relating to Ordinary Course Warranty Claims
or otherwise and any obligations or liabilities relating to any other Seller Product Liability
Claims;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all obligations and liabilities of Seller and the Subsidiaries under the Assigned
Contracts, including the Floorplan Program, to the extent that such obligations and liabilities do
not remain the responsibility of Seller hereunder; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all obligations and liabilities of Western to customers under the Western Warranties.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.5 Liabilities Not Assumed. </B>The term &#147;<U>Excluded Liabilities</U>&#148; means any and all
obligations, liabilities, contracts or commitments of Seller of any kind or nature whatsoever,
whether known or unknown, liquidated or unliquidated, accrued, absolute, contingent, or otherwise,
except for the Assumed Liabilities listed in Section&nbsp;1.4. The Excluded Liabilities shall remain
the sole responsibility of and shall be retained, paid, performed and discharged solely by Seller
or the Subsidiaries. Without limiting the generality of the foregoing, Excluded Liabilities shall
include, but are not limited to, the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any obligations or liabilities of Seller and the Subsidiaries arising or incurred in
connection with the negotiation, preparation, investigation and performance of this Agreement and
the transactions contemplated hereby, including, without limitation, fees and expenses of counsel,
accountants, consultants, advisers, brokers and others;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any obligations or liabilities for Seller Product Liability Claims (as defined in Appendix
A);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any obligations or liabilities of Seller and the Subsidiaries arising under or incurred in
connection with any Employee Plan providing benefits to any present or former employee of Seller
and the Subsidiaries, except to the extent such obligation or liability relates to any such
employee hired by Buyer hereunder in respect of any period after the Effective Time and in
connection with any Employee Plans included in the Acquired Assets, including vacation pay (subject
to proration pursuant to Section&nbsp;6.1(a)) and severance;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any obligations or liabilities of Seller and the Subsidiaries for any present or past
employees, agents or independent contractors of Seller and the Subsidiaries, including, without
limitation, any workers&#146; compensation claims and employee severance claims, except to the extent
such obligation or liability relates to any such employee, agent or independent contractor hired or
retained by Buyer hereunder in respect of any matter occurring after the Effective Time (it being
acknowledged by Buyer that the vacation, benefit and severance entitlements of the Hired Employees
shall reflect their total period of service to the Business and not just the period of employment
with Buyer);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any obligations or liabilities with respect to the litigation, investigations and other
matters set forth in <B>Schedule&nbsp;</B>3.23;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;any obligations or liabilities for Liens of Seller and the Subsidiaries except Permitted
Liens;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;any obligations or liabilities for any Taxes (as defined in Appendix&nbsp;A) of Seller and the
Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;any obligations or liabilities for any Environmental Claim (as defined in Appendix&nbsp;A),
except as contemplated by Section&nbsp;6.18;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any obligations or liabilities of Seller and the Subsidiaries relating to the Excluded
Business; and
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;any other obligation or liability of Seller and the Subsidiaries of any kind or nature,
whether now in existence or hereafter arising, not constituting Assumed Liabilities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.6 Purchase Price. </B>The consideration for the Acquired Assets will be:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;an amount (the &#147;<U>Cash Purchase Price</U>&#148;) equal to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i) $114,000,000; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii) <U>plus</U> or <U>minus</U>, as the case may be, the amount
by which Closing Working Capital is greater than or less than, respectively,
the Target Working Capital (the &#147;<U>Working Capital Adjustment</U>&#148;).
&#147;<U>Closing Working Capital</U>&#148; means the amount calculated by subtracting
Current Liabilities of Seller included in the Assumed Liabilities under this
Agreement as of the Closing Date (including notes payable under the Floorplan
Program) from the Current Assets of Seller included in the Acquired Assets
under this Agreement as of the Closing Date (including notes receivable under
the Floorplan Program); and then subtracting from that resulting amount a
further amount of $200,000 as a credit to Buyer for the assumption of the
obligations under the Western Warranties. &#147;<U>Current Assets</U>&#148; means that
portion of the Acquired Assets (including customer deposits to the extent of a
cash credit pursuant to Section&nbsp;1.2(a)) that constitute current assets as
determined in accordance with GAAP (as defined in Appendix&nbsp;A), and &#147;<U>Current
Liabilities</U>&#148; means trade accounts payable plus accrued expenses as
determined in accordance with GAAP. &#147;<U>Target Working Capital</U> means
$9,200,000; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the assumption of the Assumed Liabilities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.7 Payment of Cash Purchase Price. </B>The Cash Purchase Price shall be paid as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller&#146;s good faith estimate of the Working Capital Adjustment and the Cash Purchase Price
based thereon calculated in accordance with GAAP as at the Effective Time is attached as <B>Schedule</B>
1.7(a). For Closing purposes, the estimated Cash Purchase Price will be calculated based upon
Seller&#146;s estimate without prejudice to the right of Buyer to review this estimate and related
accounting treatments in accordance with the final determination of Cash Purchase Price pursuant to
Section&nbsp;1.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At the Closing, Buyer shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;pay to Seller a cash closing payment (the &#147;<U>Closing Payment</U>&#148;) equal to
Seller&#146;s good faith estimate of the Cash Purchase Price (in accordance with Section
1.7(a)) <U>less</U> the amount of the Escrow Fund and the Note. Payment shall be
made by wire transfer to an account specified by Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii)&nbsp;deliver the sum of $10,000,000 (the &#147;<U>Escrow Fund</U>&#148;) into escrow to be
held and distributed by HSBC Trust Company (Canada) (the &#147;<U>Escrow Agent</U>&#148;) for
a period of eighteen (18)&nbsp;months after the Closing Date in accordance with the terms
of the Escrow Agreement, including, but not limited to, a provision
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">providing that the Escrow Fund is owned by Seller but with no claim of right of
Seller to release of such funds until such time that the Escrow Fund is, or portions
thereof are, released to Seller in accordance with the terms of escrow, in
substantially the form as <U>Exhibit&nbsp;A</U> (the &#147;<U>Escrow Agreement</U>&#148;); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iii)&nbsp;deliver that certain promissory note in the amount of $24,000,000 (the &#147;Note&#148;)
in the form attached hereto as Exhibit&nbsp;B, together with the security contemplated in
Exhibit &#147;G&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1.8 Calculation of Cash Purchase Price.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On or before the 90<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> calendar day following the Closing Date, Buyer shall at
its expense (i)&nbsp;prepare, or cause to be prepared, an audited balance sheet of Seller as of the
Effective Time, and a calculation of the Closing Working Capital and the Cash Purchase Price based
thereon (collectively, the &#147;<U>Closing Working Capital Calculation</U>&#148;) and (ii)&nbsp;deliver the
Closing Working Capital Calculation to Seller. Seller and its Representatives (as defined in
Appendix&nbsp;A) shall have the right to observe the physical inventory performed by Buyer and its
Representatives in connection with the preparation of the Closing Working Capital Calculation. The
Closing Working Capital Calculation shall be determined in accordance with GAAP and Section&nbsp;1.6
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;During the 30-day period following delivery of the Closing Working Capital Calculation to
Seller, Buyer shall provide reasonable access to Seller during normal business hours to review the
books, records, accounting records and accounting work papers used in the preparation of the
Closing Working Capital Calculation. The Cash Purchase Price as calculated by Buyer shall become
final and binding upon the parties on the 30th&nbsp;calendar day following delivery of the Closing
Working Capital Calculation, unless Seller gives written notice of its disagreement (the
&#147;<U>Notice of Disagreement</U>&#148;) no later than the 45th day following the delivery of the Closing
Working Capital Calculation with the calculation of the Cash Purchase Price to Buyer prior to such
date. The Notice of Disagreement shall specify in reasonable detail the nature and basis of any
disagreement so asserted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If Seller duly and timely delivers to Buyer the Notice of Disagreement, then the
calculation of the Cash Purchase Price shall become final and binding upon the parties on the
earlier of (x)&nbsp;the date the parties resolve in writing all differences they have with respect to
the matters specified in the Notice of Disagreement or (y)&nbsp;the date all disputed matters are
finally resolved in writing by the Reviewing Accountant (as defined below). If the parties fail to
resolve the issues outstanding with respect to the Notice of Disagreement and the calculation of
the Cash Purchase Price within 30&nbsp;days after Buyer&#146;s receipt of the Notice of Disagreement, the
parties shall submit the issues remaining in dispute to a partner having relevant expertise at a
nationally recognized independent public accounting firm that is not performing and has not
performed within the prior three years any work for Parent (or any of its subsidiaries or
affiliates) as shall be agreed upon by the parties in writing (the &#147;<U>Reviewing Accountant</U>&#148;).
Seller and Buyer shall jointly instruct the Reviewing Accountant that it (A)&nbsp;shall act as an
expert and not as an arbitrator, (B)&nbsp;shall review only the matters that were properly included in
the Notice of Disagreement, (C)&nbsp;shall make its determination based upon the terms and conditions
set forth in this Section&nbsp;1.8(c) and within the range of (1)&nbsp;the amount of Cash Purchase Price set
forth in the
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Closing Working Capital Calculation and (2)&nbsp;the amount of Cash Purchase Price set forth in the
Notice of Disagreement and (D)&nbsp;shall render its decision within 60&nbsp;days after the referral of the
dispute to the Reviewing Accountant for a decision pursuant hereto. The determination by the
Reviewing Accountant shall be final, binding and conclusive on the parties. The fees and expenses
of the Reviewing Accountant incurred in rendering any judgment pursuant to this Section&nbsp;1.8 shall
be borne one-half by Seller and one-half by Buyer. The fees and expenses of Seller&#146;s advisors
incurred in connection with their review of the Closing Working Capital Calculation and, if
applicable, the Notice of Disagreement, shall be borne by Seller, and the fees and expenses of
Buyer&#146;s advisors incurred in connection with its preparation of the Closing Working Capital
Calculation, and, if applicable, the Notice of Disagreement, shall be borne by Buyer. Judgment may
be entered upon the determination of the Reviewing Accountant in any court having jurisdiction over
the party against which such determination is to be enforced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Within five (5)&nbsp;business days after the calculation of the Cash Purchase Price becomes
final and binding on the parties pursuant to this Section&nbsp;1.8, Buyer or Seller, as the case may be,
shall make the following payment:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;If the Cash Purchase Price is greater than the Closing Payment, Buyer shall pay
to Seller the amount of such difference by wire transfer to an account specified by
Seller; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii)&nbsp;if the Cash Purchase Price is less than the Closing Payment, Seller shall pay
to Buyer the amount of such difference by wire transfer to an account specified by
Buyer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.9 Allocation. </B>The Purchase Price shall be allocated in accordance with <B>Schedule&nbsp;</B>1.9 as at the
Effective Time. After the Closing, the parties shall adjust <B>Schedule&nbsp;</B>1.9 to correspond to the
amounts set forth in the Closing Working Capital Calculation (as finally determined in accordance
with Section&nbsp;1.8) and then make consistent use of the allocation, fair market value and useful
lives specified in <B>Schedule&nbsp;</B>1.9 (as so adjusted) for all Tax purposes and in all filings,
declarations and reports with the Canada Revenue Agency or any provincial sales tax agency, as the
case may be. In any Proceeding related to the determination of any Tax, neither Buyer nor Seller
nor the Shareholder nor the Principals shall contend or represent that such allocation is not a
correct allocation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.10 Tax Elections.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>ETA</U>. Buyer and Seller shall elect jointly under s. 167(1) of the Excise Tax Act
(Canada), in the form prescribed for the purpose of that subsection, in respect of the sale and
transfer of the Acquired Assets hereunder, and Buyer shall file such election not later than the
deadline for filing its GST return for its reporting period that includes the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Receivables.</U> Seller and Buyer shall execute jointly an election in the form
prescribed in the Income Tax Act (Canada) to have section 22 of the Income Tax Act (Canada) apply
in respect of the transfer of any debts included in Seller&#146;s income for purposes of the Income Tax
Act (Canada) and of any loans made in the ordinary course of the Business.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Liabilities.</U> Seller and Buyer shall jointly elect under subsection 20(24) of the
Income Tax Act (Canada) in respect of an undertaking of Seller for which Seller has included an
amount in income under paragraph 12(1)(a) of the Income Tax Act (Canada) and where such undertaking
is being assumed by Buyer. The elected amount is specifically recognized to be payment in
consideration of the deferred income and other customer deposits included within the Acquired
Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Noncompetition.</U> The Shareholder and Buyer shall jointly elect under proposed
section 56.4(7) of the <I>Income Tax Act </I>(Canada) (as if that provision were in effect) that the
Shareholder will not be taxable on any fair market value which may be imputed by the Canada Revenue
Agency to the noncompetition covenants of the Shareholder granted pursuant to this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE&nbsp;2<BR>
CLOSING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.1 Closing Date. </B>The closing of the transactions contemplated by this Agreement (the
&#147;<U>Closing</U>&#148;) shall take place at the offices of Fasken Martineau DuMoulin LLP, 2900 &#150; 550
Burrard Street, Vancouver, B.C. V6C 0A3 at 10:00&nbsp;a.m., local time, on December&nbsp;21, 2007, or at such
other location, time or date as may be mutually agreed upon between Buyer and Seller (such time and
date being herein called the &#147;<U>Closing Date</U>&#148;), and shall be effective as of the Effective
Time (as defined in Section&nbsp;2.6).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.2 Deliveries at the Closing. At the Closing:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller shall deliver to Buyer:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;a duly executed general assignment and bill of sale in the form attached hereto
as Exhibit &#147;C&#148; (&#147;<U>Bill of Sale</U>&#148;) from itself and each of its Subsidiaries, as
the case may be (including a Bill of Sale and related documentation from Dynamic to
0811456 B.C. Ltd. (&#147;Subco&#148;), a subsidiary of Buyer) and such deeds, assignments and
other instruments of transfer relating to the Acquired Assets in form and substance
reasonably satisfactory to Buyer and its counsel;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii)&nbsp;the duly executed assignment and assumption agreement in the form attached
hereto as Exhibit &#147;D&#148; (the &#147;Assumption Agreement&#148;) with Buyer or Subco, as
applicable, together with an Assumption Agreement from Western to the Buyer re the
Western Warranties
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iii)&nbsp;the various agreements, certificates and other documents and instruments
referred to in Section&nbsp;7.1;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iv)&nbsp;Copies of a certificate of status confirming the incorporation of Seller
certified as of a recent date by the Registrar of Companies for the Province of
Alberta;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(v)&nbsp;Certificate of good standing of Seller issued as of a recent date by the
Registrar of Companies for the Provinces of Alberta, British Columbia and
Saskatchewan, respectively as applicable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(vi)&nbsp;Certificate of the secretary or an assistant secretary of Seller, dated the
Closing Date, in form and substance reasonably satisfactory to Buyer, as to (a)&nbsp;no
amendments to the Memorandum or Articles of Seller since November&nbsp;1, 2007 (except to
the extent of the amalgamation, if undertaken, contemplated by Section&nbsp;6.19 hereof,
and including particulars of any such amalgamation); (b)&nbsp;the resolutions of the
Board of Directors of Seller and the Subsidiaries authorizing the execution and
performance of this Agreement and the transactions contemplated hereby; and (c)
incumbency and signatures of the officers of Seller executing this Agreement and any
documents required hereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(vii)&nbsp;All consents, waivers or approvals obtained by Seller with respect to the
consummation of the transactions contemplated by this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(viii)&nbsp;The employment agreement between Robert Adria and the Buyer in the form
attached hereto as Exhibit &#147;E&#148; (the &#147;Employment Agreement&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ix)&nbsp;The noncompetition agreements executed by Robert Adria, Brian Holterhus, the
Seller, the Shareholder and each of the three plant managers referenced in Schedule
2.2(a)(ix) in the forms attached hereto as Exhibit &#147;F&#148; (the &#147;Noncompetition
Agreements&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(x)&nbsp;With respect to the Leased Real Property, a consent and estoppel certificate
from each landlord confirming that the respective lease for Leased Real Property
held by Seller continues in full force and effect and that the landlord is not aware
of any default thereunder by Seller, and consenting to the assignment of the lease
to the Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xi)&nbsp;Assignment and assumption agreements regarding each lease of Leased Real
Property assigning to Buyer all of Seller&#146;s (or the Subsidiary&#146;s, as the case may
be) right, title and interest in, to and under each lease of Leased Real Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xii)&nbsp;Certified copy of a special resolution of the shareholders of Seller (and of
each Subsidiary and Western as applicable) approving the sale of all or
substantially all of the assets of the Seller (or the Subsidiary or Western)
pursuant to this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xiii)&nbsp;Transfers and deeds of conveyance transferring to Buyer title in fee simple
to all Owned Real Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xiv)&nbsp;An opinion of Canadian counsel to Seller regarding this Agreement and the
closing documents with respect to capacity, authority, execution and enforceability
in such reasonable form and content as approved by Buyer, acting reasonably;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xv)&nbsp;possession of the Acquired Assets to the extent in the possession of Seller as
of the Closing (products in shipment, consignment inventory, work in process at
remote sites and other such items will come into the possession of Buyer in the
ordinary course of business) and the books and records of Western pertaining to the
Western Warranties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xvi)&nbsp;if not previously delivered to Buyer, the original Contracts and Permits to
the extent in the possession of Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xvii)&nbsp;resolutions of the shareholders and Directors of Seller and the Subsidiaries,
as applicable, to change their respective names to names which do not include nor
could be confusing with any name included in the Acquired Assets, and including all
filings of articles and related documentation to permit full activation of such
changes with the respective Registrars of Companies in Alberta, British Columbia and
Saskatchewan and any other jurisdiction in which Seller or such Subsidiary has
carried on the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xviii)&nbsp;written consent of Seller and the Subsidiaries to the use by Buyer of the
name &#147;SRI&#148; and the names and trade names of the Subsidiaries as a corporate name or
trade name (or any variation thereof, such as &#147;SRI&#148;, &#147;SRI Homes&#148;, etc.);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xix)&nbsp;written consents to the transfer of certain of the Material Contracts from
third parties from whom such consent is required pursuant to the terms of the
Material Contracts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xx)&nbsp;such instruments of transfer, assignments, notifications and other
documentation necessary or desirable for Seller to transfer to Buyer the Permits or
to assist Buyer in obtaining issuances of all necessary Permits, subject always to
the assumption by Buyer of the Permits and/or issuance of the Permits, including,
without limitation, payment by Buyer of all applicable application fees and/or other
charges related to the transfer of the Permits and/or the issuance of the Permits
for periods commencing on or after the Closing Date, as applicable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxi)&nbsp;as applicable, a certificate from the Commissioner of Social Service Tax,
pursuant to s. 99 of the <I>Social Service Tax Act (British Columbia) </I>(a &#147;Tax
Certificate&#148;) and any comparable legislation under the laws of Alberta or
Saskatchewan, confirming that all Social Service Tax remittances (or other
Provincial sales taxes applicable) required to be paid by Seller in connection with
the Business have been paid up to the date specified in such Tax Certificate;
provided that if (i)&nbsp;a Tax Certificate is applied for by Seller&#146;s counsel and not
received by the Closing Date, and (ii)&nbsp;Buyer has not received any form of notice of
non-payment by Seller with respect to any Social Service Tax remittances, then
Buyer, in lieu of a Tax Certificate, shall accept from Seller reasonable proof of
payment of all Social Service Tax remittances, with delivery of the Tax Certificate
to follow after the Closing;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxii)&nbsp;a statement of Closing adjustments, reflecting prorations, wages and salary
payments and similar matters, if any, signed by Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxiii)&nbsp;the Escrow Agreement duly signed by Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxiv)&nbsp;the tax elections signed by Seller as contemplated by Section&nbsp;1.10 of this
Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxv)&nbsp;social services tax and other sales tax remittance forms, as applicable, in
respect of those portion of the Acquired Assets in respect of which such taxes are
exigible, duly executed by the Seller or the Subsidiary, as the case may be;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxvi)&nbsp;discharges of all Liens other than Permitted Liens duly executed by each Lien
Holder in form suitable for registration at all applicable offices of public record;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xxvii)&nbsp;such other bills of sale, deeds and instruments and documents of conveyance
and transfer, in form and substance reasonably satisfactory to Seller and its
counsel and Buyer and its counsel, as shall be necessary and effective to
demonstrate satisfaction of the conditions and compliance with the agreements set
forth in this Agreement and to convey, transfer and assign to and vest in Buyer good
and marketable title in and to the Acquired Assets, subject to the provisions of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Buyer shall deliver or cause to be delivered to Seller the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;the Closing Payment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii)&nbsp;the Note, with the security contemplated by Exhibit &#147;G&#148;;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iii)&nbsp;a certificate of the Secretary of Buyer, in form and substance reasonably
satisfactory to Seller and its counsel, regarding Buyer&#146;s charter documents, good
standing, all board and stockholder resolutions relating to the Transactions
contemplated by this Agreement and the incumbency of Buyer&#146;s officers/managers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iv)&nbsp;the Assumption Agreement and such other bills of sale and deeds with covenants
of warranty, assignments, endorsements and other good and sufficient instruments and
documents of conveyance and transfer, in form and substance reasonably satisfactory
to Seller and its counsel and Buyer and its counsel, as shall be necessary and
effective to cause Buyer (or Subco in the case of Assumed Liabilities of Dynamic) to
duly assume the Assumed Liabilities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(v)&nbsp;a certified copy of a resolution of the Board of Directors of the Parent
approving the granting of the covenants of the Parent contained in this Agreement;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(vi)&nbsp;certified copies of resolutions of the directors of Buyer approving the
completion of the purchase of the Business and the Purchased Assets and the
assumption of the Assumed Liabilities, and the execution and delivery of this
Agreement and all documents, instruments and agreements required to be executed and
delivered by Buyer pursuant to this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(vii)&nbsp;an opinion of Canadian counsel to Buyer regarding this Agreement and the
closing documents contemplated hereby with respect to capacity, authority, execution
and enforceability in such form and content as approved by Seller acting reasonably;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(viii)&nbsp;a statement of Closing adjustments signed by Buyer, if applicable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ix)&nbsp;any applicable tax elections signed by Buyer as contemplated by Section&nbsp;1.10 of
this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(x)&nbsp;the Escrow Agreement duly signed by Buyer and the Escrow Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xi)&nbsp;confirmation of payment of the Escrow Fund to the Escrow Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xii)&nbsp;Copies of Buyer&#146;s Certificate of Incorporation certified as of a recent date
by the Registrar of Companies for the Province of Alberta, Canada;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xiii)&nbsp;Reasonable evidence of good standing of Buyer with the Registrar of Companies
for the Province of British Columbia;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xiv)&nbsp;The certificate contemplated by Section&nbsp;7.2(a), duly executed by an authorized
signatory of Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xv)&nbsp;The Employment Agreement duly executed by Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xvi)&nbsp;The Noncompetition Agreements duly executed by Buyer (following execution by
the Seller, the Shareholder, each of the Principals and each of the three plant
managers referenced in <B>Schedule </B>2.2(a)(xvi));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xvii)&nbsp;social services tax and other sales tax remittance forms, as applicable, in
respect of those portion of the Acquired Property in respect of which such taxes
are exigible, duly executed by the Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xviii)&nbsp;Payments to each applicable Provincial taxation authority in respect of the
Social Services Tax or other Provincial sales taxes exigible on the Acquired Assets;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(xix)&nbsp;such other documents as Seller or its counsel may reasonably request to
demonstrate satisfaction of the conditions and compliance with the agreements set
forth in this Agreement.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Further Assurances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;Seller from time to time after the Closing, at Buyer&#146;s request and expense, will
execute, acknowledge and deliver to Buyer such other instruments of conveyance and
transfer and will take such other actions and execute and deliver such other
documents, certifications and further assurances as Buyer may reasonably request in
order to vest more effectively in Buyer, or to put Buyer more fully in possession
of, any of the Acquired Assets, or to better enable Buyer to complete, perform or
discharge any of the Assumed Liabilities or to confirm that the Buyer is not
responsible for the Excluded Liabilities; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(ii)&nbsp;Buyer from time to time after the Closing, at Seller&#146;s request and expense,
will execute, acknowledge and deliver to Seller such other instruments of assumption
and will take such other actions and execute and deliver such other documents,
certifications and further assurances as Seller may reasonably request in order to
vest more effectively in Buyer, any of the Assumed Liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.3 Consents of Third Parties.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding anything in this Agreement to the contrary, this Agreement shall not
constitute an agreement to assign any asset or any claim or right or any benefit arising under or
resulting from such asset if an attempted assignment thereof, without the consent of a third party,
would constitute a breach or other contravention of the rights of such third party, would be
ineffective with respect to any party to an agreement concerning such asset, would constitute a
violation of statute, rule or regulation, or would in any way adversely affect the rights of Seller
or, upon transfer, Buyer under such asset. If any transfer or assignment by Seller to, or any
assumption by Buyer of, any interest in, or liability, obligation or commitment under, any asset
requires the consent of a third party, then such assignment or assumption shall be made subject to
such consent being obtained. To the extent any Assigned Contract may not be assigned to Buyer by
reason of the absence of any such consent, Buyer shall not be required to assume any Assumed
Liabilities arising under such Assigned Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any such consent is not obtained prior to the Closing, Seller and Buyer shall cooperate
(at their own expense) in any lawful and reasonable arrangement reasonably proposed by Buyer under
which Buyer shall obtain the economic claims, rights and benefits under the asset, claim or right
with respect to which the consent has not been obtained in accordance with this Agreement. Such
reasonable arrangement may include (i)&nbsp;the subcontracting, sublicensing or subleasing to Buyer of
any and all rights of Seller against the other party to such third-party agreement arising out of a
breach or cancellation thereof by the other party, and (ii)&nbsp;the enforcement by Seller of such
rights. To the extent, and only to the extent, Buyer is able to receive the economic claims,
rights and benefits under such asset, Buyer shall be responsible for the Assumed Liabilities, if
any, arising under such asset.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.4 Closing Procedures. </B>On the Closing Date, Seller&#146;s counsel shall deliver all closing documents
and items required pursuant to Section&nbsp;2.2(a) of this Agreement to Buyer&#146;s counsel, and Buyer&#146;s
counsel shall deliver all documents and items required pursuant to Section&nbsp;2.2(b) of this Agreement
to Seller&#146;s counsel.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">After each of Seller&#146;s counsel and Buyer&#146;s counsel are satisfied with such deliveries, Buyer shall
instruct Buyer&#146;s counsel to proceed to submit the documents relating to the transfer of the Owned
Real Property, and registration of assignments of leases of all Leased Real Property, into the name
of Buyer (the &#147;Land Transfer Documents&#148;), for registration in the Governmental Land Title Office in
British Columbia, Alberta and Saskatchewan, as applicable, (in each case, the &#147;LTO&#148;, respectively)
and otherwise to be governed, as to the Closing, by the terms of this Section&nbsp;2.4. After
conducting LTO satisfactory pre-application index search, Buyer&#146;s counsel shall make application to
register the Land Transfer Documents in each LTO. Upon receipt by Buyer&#146;s counsel of (A)&nbsp;a
satisfactory post application search of the BC Real Property which indicates that, in the normal
routine of the LTO, title to the Owned Real Property will be issued in the name of Buyer subject
only to the Permitted Liens, and (B)&nbsp;confirmation that the Alberta and Saskatchewan Land Transfer
Documents have been filed for registration in the respective LTO&#146;s and (C)&nbsp;confirmation of the
issuance of a gap title policy in respect of the Estevan, Saskatchewan Real Property, the Closing
documents previously delivered as set forth above shall be considered to have been fully delivered
and all payments due on the Closing Date shall be made in accordance with the terms of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.5 Concurrent Delivery. </B>It shall be a condition of the Closing that all matters of payment and
the execution and delivery of documents by any party to the others pursuant to the terms of this
Agreement shall be concurrent requirements and that nothing will be complete at the Closing until
everything required to complete the Closing has been paid, executed and delivered, as the case may
be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.6 Transfer of Purchased Assets. </B>Subject to compliance with the terms and conditions of this
Agreement, the transfer of the Acquired Assets to Buyer shall be deemed to take effect as at the
close of business on December&nbsp;21, 2007 (the &#147;Effective Time&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE&nbsp;3<BR>
REPRESENTATIONS AND WARRANTIES OF SELLER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the indemnification provisions set forth in Article&nbsp;8 and the limitations of
Section&nbsp;8.7, Seller, the Shareholder and each Principal, jointly and severally, represent and
warrant to Buyer as follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.1 Organization. </B>Seller is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation. Seller has all requisite corporate power
and authority to own, lease and operate its properties and assets and to carry on the Business as
and where now being conducted. Seller has heretofore delivered to Buyer complete and correct
copies of Seller&#146;s Articles of Incorporation and Bylaws, as currently in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.2 Qualification; Location of Business and Assets. </B>Seller is duly licensed or qualified to do
business as an extra-provincial corporation and is in good standing in the jurisdictions set forth
in <B>Schedule&nbsp;</B>3.2, which jurisdictions are the only jurisdictions wherein the character or location
of the properties owned or leased or the nature of activities conducted by Seller make such
qualification necessary, except where the failure to be so qualified could not reasonably be
expected to have a Material Adverse Effect (as defined in Appendix&nbsp;A). There has not been any
claim by any jurisdiction to the effect that Seller is required to qualify or otherwise
</DIV>




</DIV>




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</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to be authorized to do business as a foreign corporation in any jurisdiction in which Seller has
not qualified or obtained such authorization. Set forth in <B>Schedule </B>3.2 is each
location where Seller (a)&nbsp;has a place of business, or (b)&nbsp;owns or leases property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.3 Subsidiaries and Investments. </B>Except as set forth in <B>Schedule </B>3.3, and the shares of Western
and Dynamic, all of which Seller is retaining, Seller holds no stock or other interest (including
an equity, voting or management interest), either of record, beneficially or equitably, in any
firm, venture, corporation, partnership, association, trust or other entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.4 Authority and Enforceability. </B>Seller, the Shareholder and the Principals have full power and
authority to enter into this Agreement and to carry out the transactions contemplated hereby. The
execution, delivery and performance of this Agreement, the Noncompetition Agreements, and the other
agreements and documents to be executed and delivered by Seller, the Shareholder and the Principals
pursuant to the provisions of this Agreement (the &#147;<U>Seller Documents</U>&#148;) have been duly
authorized by all necessary action on the part of Seller, the Shareholder and the Principals. This
Agreement has been, and at the Closing the Seller Documents shall be, duly executed and delivered
by Seller, the Shareholder and the Principals and constitutes, or shall constitute, the legal,
valid and binding obligations of Seller, the Shareholder and the Principals enforceable in
accordance with their respective terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.5 Third-Party Consents and Approvals. </B>Except as set forth in <B>Schedule </B>3.5, no consent,
authorization, waiver, ratification or approval of, and no registration or filing with, any third
parties or any Governmental Authority (as defined in Appendix&nbsp;A), is required for the execution,
delivery and performance of this Agreement and the Seller Documents by Seller, the Shareholder and
the Principals, and the consummation of the transactions contemplated hereby and thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.6 No Conflict or Violation. </B>The execution, delivery and performance of this Agreement and the
Seller Documents, the consummation by Seller, the Shareholder and the Principals of the
transactions contemplated hereby and thereby, and the compliance with the terms hereof and thereof
do not and will not directly or indirectly (with or without notice, the passage of time, or both),
(a)&nbsp;violate any provision of the Articles of Incorporation or Bylaws of Seller, (b)&nbsp;except as set
forth in <B>Schedule </B>3.6, violate, conflict with or result in a breach of or constitute a default
under, any term, condition, or provision of any agreement, contract, mortgage, lease or other
instrument, document or understanding to which Seller, the Shareholder or either Principal is a
party, by which Seller, the Shareholder or either Principal may have rights or by which any of the
assets of Seller, the Shareholder or either Principal may be bound or affected, (c)&nbsp;violate any Law
applicable to Seller, the Shareholder or either Principal or its or his respective assets, (d)
except as set forth in <B>Schedule </B>3.6, give any person the right to terminate, modify, accelerate or
otherwise change the existing rights or obligations of Seller, the Shareholder or the Principals
relating to the Business or assets of Seller, or (e)&nbsp;result in the creation of any Lien on any of
the Acquired Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.7 Financial Condition and Liabilities. </B>Seller has previously delivered to Buyer true and
complete copies of (a)&nbsp;the audited consolidated balance sheets of Seller as of February&nbsp;28, 2007
and February&nbsp;28, 2006 (which incorporates balance sheet information as of February&nbsp;28, 2005), and
the related audited statements of income, cash flow and shareholders equity for
</DIV></DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the fiscal years
then ended, together with the related notes thereto and the report thereon of its independent
public accountant (collectively, the &#147;<U>Financial Statements</U>&#148;), and (b)&nbsp;the unaudited balance
sheets of Seller and Western as of October&nbsp;31, 2007 and October&nbsp;31, 2006 in the case of Seller and
also November&nbsp;30, 2007 in the case of Western (the &#147;<U>Pre-closing Balance Sheet</U>&#148;), and
related statements of income and cash flow for the periods then ended, all of which are in
accordance with the books and records of Seller and Western (as applicable) and have been prepared
in accordance with generally accepted accounting principles, consistently applied throughout the
periods involved, except, as to unaudited financial statements, that no notes to such financial
statements are included. Such balance sheets fairly present in all material respects the financial
condition, assets and liabilities of Seller and Western respectively as of the dates indicated, and
such statements of income, cash flow and shareholders equity fairly present in all material
respects the results of operations, cash flows and shareholders equity of Seller and Western
respectively for the periods indicated, subject, in the case of unaudited statements, to normal
year-end audit adjustments. Except as set forth in <B>Schedule </B>3.7, Seller has no liability or
obligation of any nature, whether due or to become due, fixed, contingent, accrued or otherwise,
including liabilities for or in respect of federal, provincial, local and foreign taxes and any
interest or penalties relating thereto, except (a)&nbsp;to the extent fully reflected as a liability on
the Pre-closing Balance Sheet and (b)&nbsp;liabilities incurred in the ordinary course of business
consistent with past practices since October&nbsp;31, 2007, in the case of Seller and also November&nbsp;30,
2007 in the case of Western, and fully reflected as liabilities on Seller&#146;s or Western&#146;s books of
account, none of which, individually or in the aggregate, has been materially adverse. Buyer
acknowledges the interim financial statements provided exclude certain adjustments that are made
only at year-end.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.8 Absence of Certain Changes. </B>Except as set forth in <B>Schedule </B>3.8, since October&nbsp;31, 2007,
neither Seller nor Western has:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;sold, leased, transferred or assigned any material Acquired Assets, other than in the
ordinary course of business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;accelerated, terminated or cancelled any Contract (or series of related Contracts)
involving Acquired Assets with annual payments of more than $50,000 to which the Seller is a party
or by which it is bound, other than customer orders cancelled in the ordinary course of business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;canceled, compromised, waived or released any right or claim (or series of related rights
and claims) involving Acquired Assets or the Business with more than $25,000 outside the ordinary
course of business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;experienced any material damage, destruction or loss (whether or not covered by insurance)
to any of the Acquired Assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;granted an increase in the base compensation of any officer or employee outside the
ordinary course of business;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;failed to make any material expenditures in connection with the normal maintenance, repair
and replacement of the material Acquired Assets used in connection with the operation of the
Business in accordance with its past custom and practice;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;materially changed any of its methods of accounting or any other accounting practice;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;suffered any Material Adverse Effect and, to the knowledge of Seller, the Shareholder and
each of the Principals, no event has occurred or circumstance exists that could reasonably be
expected to have a Material Adverse Effect;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;made or committed to make any capital expenditures or capital additions or betterments
exceeding in the aggregate $50,000 in connection with the Acquired Assets; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;except as set forth in <B>Schedule </B>3.8(j), instituted, settled, or agreed to settle any
litigation, action, proceeding, or arbitration related to the Acquired Assets or the Business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.9 Accounts Receivable. </B>The Receivables of Seller as set forth in the Pre-closing Balance Sheet
or arising since the date thereof are valid and genuine; have arisen solely out of bona fide sales
and deliveries of goods, performance of services and other business transactions in the ordinary
course of business consistent with past practice; are not subject to valid defenses, set-offs or
counterclaims (other than returns in the ordinary course of business). To the knowledge of Seller,
the Shareholder and each of the Principals, the reserve for doubtful accounts on the Pre-closing
Balance Sheet is adequate and has been determined in accordance with generally accepted accounting
principles consistent with past practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.10 Inventories. </B>All Inventory of Seller reflected on the Pre-closing Balance Sheet or acquired
since the date thereof (a)&nbsp;was acquired and has been maintained in the ordinary course of business;
(b)&nbsp;is merchantable; (c)&nbsp;consists of items of a quality and quantity usable and, with respect to
finished goods, saleable in the ordinary course of business; (d)&nbsp;is valued at the lower of cost or
market value; and (e)&nbsp;is not subject to any write-down or write-off. The quantities of all lines
of inventory are reasonable and appropriate in the present circumstances of the Business of Seller.
The inventories of raw materials and component parts are sufficient to satisfy the current
business needs of the Business therefor, consistent with the historical sales trends of the
Business. Except as specifically reserved on the Pre-closing Balance Sheet, none of the Inventory
of Seller is obsolete. Seller is not under any liability or obligation with respect to the return
of Inventory in the possession of wholesalers, retailers or other customers, save and except to the
extent provided for in the Floorplan Program and the repurchase obligations set forth in <B>Schedule</B>
3.18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.11 Title; Business Assets. </B>Seller has good and marketable title to all of the Acquired Assets
free and clear of all Liens of any nature whatsoever, except: (i)&nbsp;as set forth on <B>Schedule </B>3.11,
and (ii)&nbsp;Permitted Liens. The Acquired Assets constitute all the assets and properties that are
owned or used or held for use by Seller and that are necessary to conduct the
Business as presently conducted, and to perform all of the contracts, leases, agreements,
commitments, purchase orders, work orders, customer orders, and other arrangements of Seller.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.12 Condition of Assets. </B>All of the buildings, structures and fixtures included within the
Acquired Assets owned or leased by Seller are in good operating condition and repair in all
material respects, subject only to ordinary wear and maintenance, and are usable in the regular and
ordinary course of business. Except as set forth in <B>Schedule </B>3.12, all the Personal Property owned
or leased by Seller material to the Business, operations or financial condition of Seller is in
good operating condition and repair in all material respects, subject only to ordinary wear and
maintenance, and are usable in the regular and ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.13 Owned Real Property.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<B>Schedule </B>3.13(a) contains a correct legal description, street address and tax parcel
identification number of all Real Property included within the Acquired Assets in which Seller has
an ownership interest, other than the Excluded Real Property (&#147;<U>Owned Real Property</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Owned Real Property and Leased Real Property (as defined in Appendix&nbsp;A) constitutes
all of the Real Property used in the Business. There is no condemnation, expropriation or other
proceeding in eminent domain, pending or, to the knowledge of Seller, the Shareholder and each of
the Principals, threatened, affecting any parcel of the Owned Real Property or any portion thereof
or interest therein. All utility services or systems for the Owned Real Property have been
installed and are operational and sufficient for the operation of the Business as currently
conducted thereon. To the knowledge of Seller, the Shareholder and each of the Principals, the
classification of each parcel of Owned Real Property under applicable zoning laws, ordinances and
regulations permits the use and occupancy of such parcel and the operation of the Business as
currently conducted thereon, and permits the improvements located thereon as currently constructed,
used and occupied. To the knowledge of Seller, the Shareholder and each of the Principals, there
are sufficient parking spaces, loading docks and other facilities at such parcel to comply with
such zoning laws, ordinances and regulations. To the knowledge of Seller, the Shareholder and each
of the Principals, the Owned Real Property, or any easement affecting the Owned Real Property, does
not violate any building lines or set-back lines, and there are no encroachments onto the Owned
Real Property or any portion thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;True and complete copies of (i)&nbsp;all deeds, existing title insurance policies and surveys
of or pertaining to the Owned Real Property and (ii)&nbsp;all instruments, agreements and other
documents evidencing, creating or constituting any Liens on Real Property have been delivered to
Buyer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.14 Leased Real Property.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<B>Schedule </B>3.14 sets forth a true and complete list of all Real Property and interests in
Real Property included within the Acquired Assets that are leased, subleased or occupied by Seller
(&#147;<U>Leased Real Property</U>&#148;). Seller has delivered to Buyer a true and complete copy of each
such lease, sublease or occupancy agreement, together with all amendments thereto, with respect to
any Leased Real Property (&#147;<U>Real Property Leases</U>&#148;), and in the case of any oral Real
Property Lease, a written summary of the material terms thereof. With respect to each Real
Property Lease, (i)&nbsp;each such Lease is legal, valid, binding, enforceable and in full force and effect,
and Seller is in possession of such leased property, (ii)&nbsp;neither Seller nor, to the knowledge of
Seller, the Shareholder and each of the Principals, any other party to such Lease is in breach or
default
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under such Lease in any material respect, and, to the knowledge of Seller, the Shareholder
and each of the Principals, no event has occurred or circumstance exists which, with the delivery
of notice, the passage of time or both, would constitute such a breach or default, or permit the
termination, modification or acceleration of rent under such Lease and (iii)&nbsp;Seller has not
subleased, licensed or otherwise granted anyone the right to use or occupy such Leased Real
Property or any portion thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There is no condemnation, expropriation or other proceeding in eminent domain, pending or,
to the knowledge of Seller, the Shareholder and each of the Principals, threatened, affecting any
parcel of the Leased Real Property or any portion thereof or interest therein. All utility
services or systems for the Leased Real Property have been installed and are operational and
sufficient for the operation of the Business as currently conducted thereon. To the knowledge of
Seller, the Shareholder and each of the Principals, the classification of each parcel of Leased
Real Property under applicable zoning laws, ordinances and regulations permits the use and
occupancy of such parcel and the operation of the Business as currently conducted thereon, and
permits the improvements located thereon as currently constructed, used and occupied. To the
knowledge of Seller, the Shareholder and each of the Principals, there are sufficient parking
spaces, loading docks and other facilities at such parcel to comply with such zoning laws,
ordinances and regulations. To the knowledge of Seller, the Shareholder and each of the
Principals, the Leased Real Property, or any easement affecting the Leased Real Property, does not
violate any building lines or set-back lines, and there are no encroachments onto the Leased Real
Property or any portion thereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.15 Leased Personal Property. Schedule </B>3.15 contains a correct and complete list of all leases
and other agreements included within the Acquired Assets under which Seller leases, holds or
operates any Personal Property owned by any other person. Seller has delivered to Buyer true,
correct and complete copies of all such leases and agreements. All of such leases and agreements
are valid, binding, enforceable and in full force and effect, Seller is not in material default
thereunder and, to the knowledge of Seller, the Shareholder and each of the Principals, no event
has occurred which, with notice or lapse of time or both, would constitute a material default or
permit termination, modification or acceleration thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.16 Employment Matters.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<B>Schedule </B>3.16 lists the name, date of hire and/or appointment and current annual salary,
commissions, allowances or wage rates, along with any arrangement to increase such annual salary,
commissions, allowances or wage rates, of (i)&nbsp;each present director and officer, and (ii)&nbsp;each
employee of Seller whose employment is not subject to the union certification and collective
agreement referred to in <B>Schedule </B>3.16, together with a statement of the nature of the services
rendered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Through the Closing Date, Seller shall make all statutory contributions in respect of its
employees including, without limitation, employment insurance premiums, Canada
Pension Plan and income tax remittances, and workers&#146; compensation premiums and assessments,
and all employee benefit payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as disclosed on <B>Schedule </B>3.16:
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;Seller is not a party to any collective bargaining agreement or other contract
or agreement with any labor organization or other representative of any of its
employees nor is any such contract or agreement presently being negotiated;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;There are no applications, complaints, grievances, charges or other proceedings
brought by or affecting employees of Seller which are material individually or in
the aggregate and no such matters have been threatened to the knowledge of Seller,
the Shareholder and each of the Principals;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;there is no labor dispute, strike, slowdown, work stoppage, lockout, human
rights code violation, employment standards violation or other material labor
controversy in existence, or to the knowledge of Seller, the Shareholder and each of
the Principals, threatened against or otherwise affecting Seller and, except as set
forth in <B>Schedule </B>3.16, Seller has not experienced any such labor controversy within
the past five years;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iv)&nbsp;except as set forth in <B>Schedule </B>3.16, Seller has paid in full, or accrued in
its financial books and records, to all employees of Seller, all wages, salaries,
vacation pay entitlements, commissions, bonuses, benefits and other compensation due
to such employees or otherwise arising under any policy, practice, agreement, plan,
program, statute or other law;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(v)&nbsp;Seller is not liable for any severance pay or other payments to any employee or
former employee arising from the termination of employment, and Buyer will not have
any liability under any benefit or severance policy, practice, agreement, plan, or
program or under any applicable law, except in connection with Hired Employees
engaged as a result of the transactions contemplated by this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(vi)&nbsp;Save and except for seasonal layoffs in the ordinary course of business, Seller
has not closed any plant or facility, effectuated any layoffs of employees or
implemented any early retirement or separation program within the past five years,
nor has Seller planned or announced any such action or program for the future;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(vii)&nbsp;Within six (6)&nbsp;months prior to the date of this Agreement, Seller has not
effectuated a &#147;group termination&#148; as defined in Provincial employment standards
legislation or any comparable legislation in other jurisdictions in which the
Business is carried on, affecting any site of employment or one or more facilities
or operating units within any site of employment or facility of Seller; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(viii)&nbsp;To the knowledge of Seller, the Shareholder and each of the Principals,
subject to circumstances beyond the control of Seller, the services of all essential
employees of Seller will continue to be available on the same terms and at the same
locations for the continuation of the Business of Seller after consummation of the
transactions contemplated hereby.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Seller has given all notices required by law and any applicable collective agreements with
respect to the transactions contemplated hereby and undertakes to indemnify the Buyer with respect
to any claims, rulings or judgments arising by reason of failure to give any required notice.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.17 Employee Benefit Plans.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U><B>Schedule </B>3.17</U> contains a true and complete list of all written Employee Plans (as
defined in Appendix&nbsp;A).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as disclosed on <B>Schedule </B>3.17: (i)&nbsp;all accrued contributions and other payments
required to be made by the Seller to any Employee Plan through the Closing Date have been made or
reserves adequate for such purposes as of the Closing Date have been set aside therefor and
reflected in the Closing Working Capital Calculation; (ii)&nbsp;the Seller is not in default in any
material respect in performing any of its contractual obligations under any of the Employee Plans
or any related trust agreement or insurance contract, and (iii)&nbsp;and there are no outstanding or
unfunded liabilities of any Employee Plan that could subject Buyer to any liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as disclosed in <B>Schedule </B>3.17, neither Seller nor any of the Subsidiaries maintains
or participates in any pension or retirement plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as set forth in <B>Schedule </B>3.17, with respect to each of the Employee Plans:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;each Employee Plan has been established, maintained, funded and administered in
all material respects in accordance with its governing documents, and all applicable
provisions of labour, employment standards or pension benefit laws or other
applicable law, and all regulations or rules promulgated thereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;there is no litigation, disputed claim (other than routine claims for
benefits), governmental proceeding, audit, inquiry or investigation pending or, to
the knowledge of Seller, the Shareholder and each of the Principals, threatened with
respect to any such Employee Plan, its related assets or trusts, or any fiduciary,
administrator or sponsor of such Employee Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;Seller has delivered to Buyer true and complete copies of the following to the
extent applicable: the current Employee Plan document, any amendments thereto, and
the most recent related summary plan description, if any; each trust or custodial
agreement and each deposit administration, group annuity, insurance or other funding
agreement associated with each such Employee Plan, if any; for the most recent
Employee Plan year, the financial information or reports relating to each such
Employee Plan; the most recent Canada Revenue Agency and governmental agency rulings
relating thereto, and all filing and reports filed with
any governmental agency, along with all schedules and reports filed therewith, if
any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Any trust maintained in connection with an Employee Plan (and from its establishment) has
been exempt from federal income taxation under section 149(1) of the <I>Income</I>
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Tax Act </I>(Canada) and
has not, at any time, had any unrelated business taxable income and, to the knowledge of the
Seller, the Shareholder and each of the Principals, nothing has occurred with respect to the
operation of any such Employee Plan that could cause the loss of such qualification of exemption or
the imposition of any liability, penalty or tax under Law.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.18 Material Contracts.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<B>Schedule </B>3.18(a) contains an accurate and complete list of all Assigned Contracts (other
than those described in <B>Schedule </B>3.14 or <B>Schedule </B>3.15, which are incorporated by reference into
<B>Schedule </B>3.18(a)), including all amendments thereto, to which Seller is a party, accurate and
complete copies of which have been provided to the Buyer, except for those Contracts (i)&nbsp;which were
entered into in the ordinary course of business, (ii)&nbsp;under which the obligations of Seller have
been or shall be fully discharged within one year from the date such obligation was entered into,
and (iii)&nbsp;which individually involve an obligation or liability on the part of Seller in an amount
less than Twenty-Five Thousand Dollars ($25,000) (the &#147;<U>Material Contracts</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All of the Material Contracts are valid and binding obligations of Seller and, except as
set forth in <B>Schedule </B>3.18(b), do not require the consent of any other party thereto to the sale of
the Business or the Acquired Assets to Buyer hereunder to continue to be valid and binding. Except
as set forth in <B>Schedule </B>3.18(b), (i)&nbsp;none of the payments required to be made by Seller under any
of the Material Contracts has been prepaid more than thirty (30)&nbsp;days prior to the due date of such
payment thereunder, and (ii)&nbsp;to the knowledge of Seller, the Shareholder and each of the
Principals, there is not any existing default, or event which, with notice or lapse of time, or
both, would constitute a default under any of the Material Contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth in <B>Schedule </B>3.18(c), Seller is not a party to any of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;any indenture, mortgage, note, guaranty, letter of credit, installment
obligation, agreement, or other instrument relating to the borrowing of money or the
guaranteeing of any obligation for the borrowing of money;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;any Contract, or other commitment that would limit the ability of Seller (or
any manager or officer thereof) to compete in any line of business or with any
person or in any geographic area, or otherwise to conduct the Business as presently
conducted, or to use or disclose any information in the possession of Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;any license agreement, including any agreement with respect to any
manufacturing rights granted to or by Seller; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iv)&nbsp;any joint venture or similar agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <B>Schedule </B>3.18(d) contains a backlog list of Seller, listing all Contracts that are orders
from Business customers on backlog (by customer name, order number, order date, model and selling
price) as of December&nbsp;14, 2007.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.19 Customers and Suppliers. </B>Except as set forth in <B>Schedule </B>3.19, neither Seller nor the
Shareholder nor either Principal has any knowledge of any intention of or indication by a
Significant Customer (as defined below) of Seller or a Significant Supplier (as defined below) to
terminate its business relationship with Seller or to limit or alter its business relationship with
Seller in any material respect. The term &#147;<U>Significant Customer</U>&#148; means any of the twenty
(20)&nbsp;largest customers or dealers, by dollar volume, of Seller during the 2007 calendar year, and
the term &#147;<U>Significant Supplier</U>&#148; means any of the fifteen (15)&nbsp;largest suppliers, by dollar
volume, of Seller during the 2007 calendar year. <B>Schedule </B>3.19 contains a true and correct list of
the Significant Customers and Significant Suppliers of Seller and the dollar volume of business
with each Significant Customer and Significant Supplier during calendar year 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.20 Tax Returns and Taxes. </B>Seller has (i)&nbsp;timely filed all federal, provincial, local and foreign
tax returns, reports, statements and other similar filings (the &#147;<U>Tax Returns</U>&#148;) which are
required to be filed by Seller with respect to any federal, provincial, local or foreign income,
payroll, withholding, excise, sales, use, personal property, occupancy, business, mercantile, real
estate, capital stock, franchise or other taxes (the &#147;<U>Taxes</U>&#148;); and (ii)&nbsp;paid all Taxes,
interest, penalties, assessments and deficiencies due or assessed pursuant to the Tax Returns. All
Tax Returns properly reflect the liabilities of Seller for Taxes for the periods, properties or
events covered thereby. Except as set forth in <B>Schedule </B>3.20, no extensions of time in which to
file any Tax Returns have been executed or filed with any taxing authority. Except as set forth in
<B>Schedule </B>3.20, Seller has not received any notice of assessment of additional Taxes and has not
executed or filed with any taxing authority any agreement extending the period of assessment of any
Taxes. Except as set forth in <B>Schedule </B>3.20, there are no claims, examinations, proceedings or
proposed deficiencies for Taxes pending or, to the knowledge of Seller, the Shareholder and each of
the Principals, threatened against Seller. Seller is current in the payment of all withholding and
other employee Taxes which are due and payable. The accruals for Taxes contained in the
Pre-closing Balance Sheet are adequate to cover all liabilities for Taxes of Seller for all periods
ending on or before the Closing Date, and include adequate provisions for all deferred Taxes.
Except as set forth in <B>Schedule </B>3.20, Seller has not been audited by Canada Revenue Agency or any
other governmental agency or authority within the past five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.21 Permits. Schedule </B>3.21 contains a complete and accurate list of all Permits (other than
Environmental Permits) used by Seller in the operation or conduct of the Business or that relate to
the Acquired Assets (the &#147;<U>Assigned Permits</U>&#148;). To the knowledge of Seller, the Shareholder
and each of the Principals, the Assigned Permits constitute all Permits that are necessary for the
lawful operation or conduct of the Business as presently conducted and are required for the lawful
use, lease, occupancy and ownership of the Acquired Assets. To the knowledge of Seller, the
Shareholder and each of the Principals, Seller is in compliance in all material respects with each
of the Assigned Permits, and no event has occurred which constitutes or, after notice or lapse of
time or both, would constitute a breach or default under any of the Assigned Permits or would
permit revocation or termination of any of the Assigned Permits. The Assigned Permits are in full
force and effect and are renewable by their terms or in the ordinary course of business without the
need to comply with any special qualification procedures
or to pay any amounts other than routine filing fees. None of the Assigned Permits will be
adversely affected by consummation of the transactions contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.22 Intellectual Property Rights.</B>
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Intellectual Property Rights (as defined in Appendix&nbsp;A) are all of the intellectual
property rights used by, required in or necessary for the operation of the Business as currently
conducted. Seller is the owner or licensee of all right, title and interest in and to each of the
Intellectual Property Rights, free and clear of all Liens, and has the right to use without payment
to a third party all of the Intellectual Property Rights, except as indicated in <B>Schedule </B>3.22(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<B>Schedule </B>3.22(b) contains (i)&nbsp;a complete and accurate list and summary description of all
Patents, Marks, Copyrights and Net Names, and (ii)&nbsp;sets forth all registrations and applications
(and the status thereof) that have been submitted to any Governmental Authority with respect to
such Patents, Marks, Copyrights and Net Names (&#147;<U>Registered Intellectual Property</U>&#148;). All
necessary registration, maintenance and renewal fees currently due in connection with any
Registered Intellectual Property have been made and all necessary documents, recordations and
certifications in connection with such Registered Intellectual Property have been filed with the
relevant patent, copyright, trademark or other authorities in Canada or foreign jurisdictions, as
the case may be, for the purpose of maintaining such Registered Intellectual Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as indicated in <B>Schedule </B>3.22(c), Seller does not have, and does not pay or receive
any royalties on, any licenses and other agreements relating to the Intellectual Property Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;None of the Intellectual Property Rights has been or is the subject of any pending (or, to
the knowledge of Seller, the Shareholder and each of the Principals, threatened) litigation or
claim of infringement, or outstanding Judgment, arbitration award, agreement or stipulation
restricting in any manner the use, transfer or licensing thereof by Seller, or which may affect the
validity, use or enforceability of the Intellectual Property Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To the knowledge of Seller, the Shareholder and each of the Principals, the operation of
the Business as it has been and currently is conducted has not and does not infringe or
misappropriate in any manner the intellectual property of any third party. Seller has not received
any written notice contesting its right to use any of the Intellectual Property Rights. To the
knowledge of Seller, the Shareholder and each of the Principals, no Person has or is infringing or
misappropriating any Intellectual Property Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All Net Names have been registered in the name of Seller and are in compliance with all
applicable law.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.23 No Pending Litigation or Proceedings. </B>Except as set forth in <B>Schedule </B>3.23, there is no
litigation, investigation, arbitration or proceeding pending or, to the knowledge of Seller, the
Shareholder and each of the Principals, threatened, by or against or affecting Seller or any of its
properties or assets or relating to the Business, at law or in equity, by or before any court,
arbitrator or governmental or regulatory official, body or authority (&#147;<U>Proceeding</U>&#148;), nor
does Seller, the Shareholder or either of the Principals have knowledge of any reasonably likely
basis for any such Proceeding, the result of which could materially adversely affect Seller, its
assets or the transactions contemplated hereby. There are presently no outstanding judgments,
decrees or orders of any court or any governmental or administrative agency against or affecting
</DIV></DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Seller or any of its properties or assets. There are no Proceedings listed or required to be
listed in <B>Schedule </B>3.23 that could reasonably be expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.24 Compliance with Laws. </B>Except as set forth in <B>Schedule </B>3.24, the Business of Seller has been
conducted in compliance with all applicable Laws, except where the failure to be in such compliance
could not reasonably be expected to have a Material Adverse Effect. No notice, citation, summons
or order has been assessed and no investigation or review is pending or, to the knowledge of
Seller, the Shareholder and each of the Principals, threatened by any governmental or other entity
with respect to any alleged violation by Seller of any Laws. To the knowledge of Seller, the
Shareholder and each of the Principals, no event has occurred or circumstance exists that (with or
without notice or lapse of time), could reasonably be expected to constitute or result in a
violation by Seller of, or a failure on the part of Seller to comply with, any Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.25 Environmental Matters. </B>Except as set forth in <B>Schedule </B>3.25 and Section&nbsp;6.18:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither Seller nor the Business is in violation of or noncompliant with, in any material
respect, any Environmental Laws (as defined in Appendix&nbsp;A) or Environmental Permits (as defined in
Appendix&nbsp;A).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Seller possesses, and has previously possessed, all Environmental Permits that are
required for the operations of Seller, each is valid and in good standing, and Seller has not been
advised by any Governmental Authority of any actual or potential change in the status or terms and
conditions of any Environmental Permit. All applications for renewal, extension, reissuance or
modification of Environmental Permits, or related submissions to any Governmental Authority, have
been made in a complete and timely manner and Seller has no reason to believe that such
application(s) will be denied, in whole or in part. <B>Schedule </B>3.25 contains (i)&nbsp;a description of
all Environmental Permits currently held by Seller in connection with the operation of its
Business, properties and assets, and identifies the nature, duration and renewal dates of and the
issuing governmental entity with respect to each Environmental Permit, and (ii)&nbsp;a complete list of
all solid waste dumps and hazardous waste disposal, treatment, and storage facilities which are
presently or were used by Seller at any time in the operation of its Business for disposal of
Hazardous Materials.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The operation of Seller&#146;s Business does not involve the generation, usage, Release,
transportation, treatment, storage or disposal of any Hazardous Substance (as defined in Appendix
A); no underground storage tanks or surface impoundments are located at, on or under any property
owned, leased or used by Seller in the operation of the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;There has been no Release (as defined in Appendix&nbsp;A) of any Hazardous Substance at, on or
under any property or facility currently or formerly owned, operated or leased by Seller, or at any
adjacent or off-site location, that has formed or could reasonably be
expected to form the basis of any Environmental Claim (as defined in Appendix&nbsp;A) against
Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;There are no Environmental Claims pending or, to the knowledge of Seller, the Shareholder
and each of the Principals, threatened against Seller. Seller has not retained or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assumed, either
contractually or by operation of law, any liabilities or obligations that have formed or could
reasonably be expected to form the basis of any Environmental Claim against Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;No Environmental Law imposes any obligation upon Seller arising out of or as a condition
to the purchase or sale of interests or assets as contemplated by this transaction or other related
transaction, including any requirement to modify or to transfer any permit or license, or any
requirement to file any disclosure statement, notice or other submission with any Governmental
Authority, the placement of any disclosure statement, notice, acknowledgment or covenant in any
land records, or the modification of or provision of notice under any agreement, consent order or
consent decree.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Seller has delivered to Buyer true and complete copies and results of any reports,
studies, analyses, tests or monitoring possessed or initiated by Seller pertaining to any Hazardous
Substance in, on or under any property owned, leased or used by Seller in the operation of the
Business, or concerning compliance by Seller or the Business with Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;To the knowledge of Seller, the Shareholder and each of the Principals, all of the
facilities of Seller are maintained and operated in compliance with the applicable occupational
health and safety and workers&#146; compensation laws of British Columbia, Alberta and Saskatchewan.
Except as set forth in <B>Schedule </B>3.25, Seller is not and has not been subject to any investigation,
complaint, order or ruling with respect to such laws or any fine, penalty or citation relating to
or arising out of a violation or alleged violation of such laws. <B>Schedule </B>3.25 contains a complete
and accurate list of all complaints and reports related to the Business for the last two years.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.26 Insurance Coverage. </B>To the knowledge of Seller, the Shareholder and each of the Principals,
except as set forth in <B>Schedule </B>3.26, Seller presently maintains, and has at all times prior to the
date hereof maintained, liability, casualty, property loss and other insurance coverages upon its
properties and with respect to the conduct of its Business in such amounts, of such kinds and with
such insurance carriers as are generally deemed appropriate and sufficient for companies of a
similar size engaged in similar types of business and operations. <B>Schedule </B>3.26 sets forth a
complete and correct list of all insurance policies maintained by Seller and indicating for each
policy the insurance company, type of coverage, annual premium and whether the terms of such policy
provide for retrospective premium adjustments. Each of such policies are valid, outstanding and
enforceable and there is no default with respect to any provision contained in any such policy, nor
has there been any failure to give any notice or present any claim under any such policy in a
timely fashion or in the manner or detail required by the policy. Seller has paid all premiums
due, and has otherwise performed all of its obligations, under each policy of insurance to which it
is a party or that provides coverage to Seller. No notice of cancellation or non-renewal with
respect to, or disallowance of any claim under, any such policy has been received by Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.27 Products Liability and Warranty Claims. </B>Seller has heretofore delivered to Buyer correct and
complete copies of all written warranties issued in connection with the Business. Except as set
forth in <B>Schedule </B>3.27:
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller has not made any oral or written warranties with respect to the quality or absence
of defects of its products or services which are in force as of the date of this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;there are no liabilities of or claims against Seller and, to the knowledge of Seller, the
Shareholder and each of the Principals, no liabilities or claims are threatened against Seller,
with respect to any product liability (or similar claim) of Seller or product warranty (or similar
claim) of Seller that relates to any product manufactured, shipped or sold by Seller, except for
Ordinary Course Warranty Claims;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;to the knowledge of Seller, the Shareholder and each of the Principals, there is no
alleged or actual defect or hazard in the manufacture, design, materials or workmanship, or alleged
or actual failure to warn of any of the foregoing, in any product (or component thereof) which has
been manufactured, shipped or sold by Seller, except for Ordinary Course Warranty Claims; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;other than ordinary warranty work, there has not been any occurrence involving any product
recall, rework or retrofit relating to any product which has been manufactured, shipped or sold by
Seller, except for Ordinary Course Warranty Claims.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.28 Relationships with Related Persons. </B>Except as disclosed in <B>Schedule </B>3.28, neither the
Shareholder nor either Principal nor any Related Person (as defined in Appendix&nbsp;A) of any of them
has, or during the past two years, has had, any interest in any property (whether real, personal or
mixed and whether tangible or intangible) used in or pertaining to the Business. Neither the
Shareholder nor either Principal nor any Related Person of any of them owns, or during the past two
years, has owned, of record or as a beneficial owner, an equity interest or any other financial or
profit interest in any Person that has (a)&nbsp;had business dealings or a material financial interest
in any transaction with Seller other than business dealings or transactions disclosed in <B>Schedule</B>
3.28, each of which has been conducted in the ordinary course of business with Seller at
substantially prevailing market prices and on substantially prevailing market terms or (b)&nbsp;engaged
in competition with Seller with respect to any line of the products or services of Seller in any
market presently served by Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.29 Compliance with Building Codes and other Legal Requirements. </B>At the time that a customer of
Seller takes possession, each modular and manufactured residential and commercial units and other
Inventories, and corresponding plans, complies in all material respects to the building codes and
other Laws of each locality in which Seller sells or delivers such units. Notwithstanding the
foregoing, neither Seller nor the Shareholder nor the Principals makes any representation or
warranty concerning any actions or omissions of any of Seller&#146;s customers that might cause such
units and other Inventories, and corresponding plans, to not be in such compliance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.30 Brokers and Finders. </B>Seller has not employed any broker or finder or incurred any liability
for any financial advisory fees, brokerage fees, commissions or finders&#146; fees, and no
broker or finder has acted directly or indirectly for Seller in connection with this Agreement or
the transactions contemplated herein.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.31 Disclosure. </B>No representation or warranty of Seller, the Shareholder or the Principals
contained in this Agreement, and no statement contained in any certificate, schedule, list or other
writing furnished to Buyer pursuant hereto, contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained herein or
therein, in light of the circumstances under which such statements are made, not misleading. There
is no fact known to Seller, the Shareholder or to either of the Principals which has or could
reasonably be expected to have a Material Adverse Effect which has not been set forth in this
Agreement or any <B>Schedule </B>hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.32 Capital Structure of Seller.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The issued and outstanding capital of Seller is set forth in Schedule&nbsp;3.32. The Seller is
the sole shareholder of all Subsidiaries. No shares in any of the companies are unissued but
reserved or allotted for any purpose. Except for this Agreement, there are no agreements,
arrangements, options, warrants, calls, rights or commitments of any character relating to the
issuance, sale, purchase or redemption of any shares of the companies. No holder of any securities
has any preemptive, stock purchase or other rights to acquire shares in the companies save and
except as set forth in the governing documents of the companies or in the Shareholders&#146; Agreement,
all of which rights have been waived and will be confirmed by such holders as having been waived on
the Closing Date.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.33 Residency. </B>None of the Seller nor any Subsidiary is a &#147;non-resident&#148; of Canada within the
meaning of s. 116 of the Income Tax Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.34 Tax Matters. </B>Except as disclosed in the Financial Statements and those incurred in the usual
and ordinary course of business since October&nbsp;31, 2007, in the case of Seller, and also November
30, 2007 in the case of Western, there are no liabilities, actual or contingent, of the Seller or
Western in respect of Tax and all Tax and other assessments which the Seller or Western is required
by law to withhold and collect have been duly recorded, withheld and collected and have been paid
over to the proper governmental authority or other taxing authority or, if not yet due, are held in
trust for such payment. With respect to the goods and services tax under the <I>Excise Tax Act</I>
(&#147;GST&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Seller, the Subsidiaries and Western are registered for GST purposes under the
following registration number(s):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SRI Homes Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporation Office
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">891248247</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</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">Winfield
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">891248247</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0004</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">Estevan
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">891248247</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0002</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">Lethbridge
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">891248247</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0003</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD 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">Dynamic Modular
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">886801927</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interior Modular
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">896843646</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Premier Modular
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">851193813</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SRI Equipment &#038; Real Estate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">872803002</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Western Guarantee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">813013273</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RT0001</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Seller, the Subsidiaries and Western do not have any deferred obligations or
liabilities under any section of the <I>Excise Tax Act</I>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Seller, the Subsidiaries and Western have not made a supply of property or service to
a Person with whom the Seller or the Subsidiaries were not dealing at arm&#146;s length for proceeds
less than the fair market value thereof;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all GST required to be collected by the Seller, the Subsidiaries and Western has been
collected and all GST amounts required to be remitted to the Receiver General for Canada have been
remitted; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the reporting period of the Seller, the Subsidiaries and Western for purposes of GST is
and all GST returns and reports of the Seller, the Subsidiaries and Western required by law to be
filed have been filed in a timely manner and are true, complete and correct in all respects.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.35 Floorplan Program. </B>The Floorplan Program is in material compliance with all applicable Laws,
neither Seller, nor any dealer nor any other person (including, without limitation, any lender), is
in material default thereunder, and all notes assumed thereunder will be paid in full when due. To
the extent any note is not so paid, and upon liquidation of any related collateral and realization
by Buyer of less than the full amount due (after consideration of Buyer&#146;s related expenses and
including any related interest and fees), Seller shall pay to Buyer the shortfall amount forthwith
on demand. Buyer will forbear making such a demand until a payment shortfall, as described above,
has been realized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the twenty-four (24)&nbsp;month expiry date provided for in Section&nbsp;8.6 if, prior to the
expiry date, a bankruptcy, receivership, insolvency or other credit event negatively affecting the
payor has occurred, or any collateral has been sold out of trust and related amounts due remain
unpaid by the payor, Buyer shall have an additional 90&nbsp;days after the expiry of the twenty-four
(24)&nbsp;month period in which to pursue its remedies against the payor and in which to make a demand
of Seller in respect of any shortfall on such note.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE&nbsp;4<BR>
REPRESENTATIONS AND WARRANTIES OF BUYER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer hereby represents and warrants to Seller as follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.1 Organization. </B>Buyer is a corporation duly organized, validly existing and in good standing
under the laws of the province of its incorporation. Buyer has all requisite corporate power and
authority to own, lease and operate its properties and assets and to carry out its business as and
where now being conducted. Buyer has heretofore delivered to Seller complete and correct copies of
Buyer&#146;s Articles of Incorporation and Bylaws as currently in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.2 Authority and Enforceability. </B>The execution, delivery and performance of this Agreement and
all other agreements and documents to be delivered by Buyer pursuant to the provisions of this
Agreement (the &#147;<U>Buyer Documents</U>&#148;) have been duly authorized by all necessary corporate
action on the part of Buyer, including, without limitation, the approval of the
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 31 -<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Boards of Directors
of Buyer and Parent. This Agreement has been, and at the Closing the Buyer Documents shall be,
duly executed and delivered by Buyer and constitute, or shall constitute, the legal, valid and
binding obligation of Buyer enforceable in accordance with their respective terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.3 Third-Party Consents. </B>No consent, authorization or approval of, and no registration or filing
with, any third parties or any Governmental Authority is required for the execution, delivery and
performance of this Agreement and the Buyer Documents by Buyer and the consummation of the
transactions contemplated hereby, save for the notification set forth in Section&nbsp;6.18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.4 No Conflict or Violation. </B>The execution, delivery and performance of this Agreement and the
Buyer Documents, the consummation by Buyer of the transactions contemplated hereby and thereby, and
the compliance with the terms hereof and thereof by Buyer do not and will not (with or without
notice, the lapse of time, or both) (a)&nbsp;violate any provision of the Articles of Incorporation or
Bylaws of Buyer, (b)&nbsp;violate, conflict with or result in a breach of or constitute a default under,
any term, condition, or provision of any agreement, contract, mortgage, lease or other instrument,
document or understanding to which Buyer is a party, by which it may have rights or by which any of
its assets may be bound or affected, (c)&nbsp;violate any Law applicable to Buyer or its assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.5 </B><B><I>Employment Standards Act</I></B><B>. </B>Buyer has no present plans or intention to carry out, after the
Closing, any plant closing or mass layoff which would require notification under, or otherwise
violate applicable E<I>mployment Standards Act </I>provisions at any facility of Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.6 Brokers and Finders. </B>Except as set forth in <B>Schedule </B>4.6, Buyer has not employed any broker or
finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or
finder&#146;s fees, and no broker or finder has acted directly or indirectly for Buyer in connection
with this Agreement or the transactions contemplated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.7 GST. </B>Buyer is registered for GST purposes under registration number 829177617-RT0001.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE&nbsp;5<BR>
PRE-CLOSING COVENANTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.1 Access and Investigation. </B>Between the date of this Agreement and the Closing Date, and upon
reasonable notice, Seller shall (i)&nbsp;upon reasonable request, afford Buyer and its Representatives
and prospective lenders and their Representatives (collectively, &#147;<U>Buyer Group</U>&#148;) reasonable
access, during regular business hours or otherwise, to Seller&#146;s personnel, properties (including
subsurface testing), Contracts, Permits, books and records and other documents and data, such
rights of access to be exercised in a manner that does not unreasonably interfere with the
operations of Seller; (ii)&nbsp;furnish Buyer Group with copies of all such Contracts,
Governmental Authorizations, books and records and other existing documents and data as Buyer may
reasonably request; (iii)&nbsp;furnish Buyer Group with such additional financial, operating and other
relevant data and information as Buyer may reasonably request; (iv)&nbsp;reasonable access to a certain
number of the top ten suppliers and top ten customers of Seller
</DIV></DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to be agreed upon by Buyer and
Seller in a manner as shall be mutually agreeable between Buyer and Seller, and (v)&nbsp;otherwise
cooperate and assist, to the extent reasonably requested by Buyer, with Buyer&#146;s investigation of
the properties, assets and financial condition related to Seller. In addition, Buyer shall have
the right to have the Real Property and tangible personal property inspected by Buyer Group, at
Buyer&#146;s sole cost and expense, for purposes of determining the physical condition and legal
characteristics of the Real Property and tangible personal property, including subsurface or other
destructive testing. Buyer Group shall have reasonable access as prescribed in this Section&nbsp;5.1 to
the Real Estate and facilities thereon for the purpose of conducting appropriate environmental
tests, inspections or investigations, including without limitation, Phase II investigations or
other intrusive testing or sampling of soil and groundwater, all at Buyer&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.2 Conduct of Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as otherwise contemplated by this Agreement, during the period from the date of
this Agreement and continuing until the Closing Date, Seller agrees to operate its Business in the
ordinary course and consistent with past practices and to use its commercially reasonable efforts
to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;preserve the Business intact and conserve the goodwill related thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;preserve intact the present business organization of Seller, keep available the
services of officers, employees and agents; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;preserve present relationships with suppliers, customers, dealers, lenders and
others having business dealings with them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In connection with the foregoing, and without limiting the generality of this Section&nbsp;5.2,
Seller shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;maintain raw materials, supplies and other materials included in the Inventories
at levels that are in the usual and
ordinary course of business consistent with past
practice;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;maintain the Acquired Assets (including buildings, offices, properties and
equipment) in the ordinary course of business in good operating order and condition,
reasonable wear and tear excepted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;continue to extend customers credit, collect Receivables and pay accounts
payable and similar obligations and otherwise handle short-term assets and
liabilities in the usual and ordinary course of business consistent with past
practice; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iv)&nbsp;continue to maintain its books and records in accordance with generally
accepted accounting principles and on a basis consistent with past practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Without the prior written consent of Buyer, and without limiting the generality of any
other provision of this Agreement, Seller shall not:
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;take any affirmative action, or fail to take any reasonable action within its
control, as a result of which any of the changes or events listed in Section&nbsp;3.8
would be likely to occur;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;make any modification to any Material Contract or material Permit;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iii)&nbsp;enter into any compromise or settlement of any litigation, proceeding or other
governmental investigation relating to the Acquired Assets, the Business or the
Assumed Liabilities, other than settlement of ordinary course routine litigation
that does not, or will not, impose any material obligation on the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(iv)&nbsp;enter into or authorize any Contract or transaction relating to the Business or
the Acquired Assets, other than in the usual and ordinary course of business of
Seller in accordance with past practice; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(v)&nbsp;take any action to substantially modify the terms and conditions of employment
of any of its employees.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.3 Consents and Approvals. </B>Seller shall use all commercially reasonable efforts and make every
good faith attempt to obtain, prior to the Closing Date, all consents, authorizations, approvals,
registrations and filings specified in <B>Schedule </B>3.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.4 Commercially Reasonable Efforts. </B>Subject to the terms and conditions of this Agreement, each
of the parties shall use commercially reasonable efforts to take, or cause to be taken, all actions
and to do, or cause to be done, all things necessary or advisable to consummate the transactions
provided for in this Agreement as soon as practicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.5 Update Schedules. </B>Seller shall promptly disclose to Buyer any information contained in its
representations and warranties or the Schedules which, because of an event occurring after the date
hereof, is incomplete or is no longer correct as of all times after the date hereof until the
Closing Date; provided, however, that none of such disclosures shall be deemed to modify, amend or
supplement the representations and warranties of Seller, the Shareholder or the Principals or the
Schedules hereto for the purpose of Article&nbsp;3 hereof, unless Buyer shall have consented thereto in
writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.6 Change in Name. </B>Seller shall deliver to Buyer all such executed documents and filing fees as
may be required to change Seller&#146;s name and those of the Subsidiaries on the Closing Date to
another name bearing no similarity to and not derived from Seller&#146;s current name or any variation
thereof, and an appropriate name change notice for each province where Seller is qualified to do
business. Seller hereby appoints Buyer as its attorney-in-fact to file all such documents on or
after the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.7 Tax Clearance Certificates, Filings and Notices. </B>Seller shall cooperate with Buyer and take
all actions required to obtain all conditional tax clearances, tax clearance certificates and
similar documents in connection with the consummation of the transactions contemplated by this
Agreement. Seller shall make all filings and deliver all notices required by any employment
security, taxing or other governmental authority and any notices under the
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 34 -<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Employment Standards Act</I>
or any other plant closing laws) in connection with the consummation of the transactions
contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.8 Risk of Loss. </B>Until the Closing, any loss of or damage to the Acquired Assets from fire,
casualty or any other occurrence shall be the sole responsibility of Seller and Seller shall have
the benefit of any insurance it has maintained, except as otherwise expressly provided herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.9 Exclusivity. </B>Seller, the Shareholder and the Principals grant to Buyer the exclusive right to
acquire the Business and the Acquired Assets until the Final Termination Date (as defined in
Appendix&nbsp;A). Neither Seller nor the Shareholder nor either Principal shall (i)&nbsp;solicit, initiate
or encourage the submission of any proposal or offer from any person relating to the acquisition of
any capital stock or other voting securities, or any substantial portion of the assets of, Seller
(including any acquisition structured as a merger, consolidation or share exchange) or (ii)
participate in any discussions or negotiations regarding, furnishing any information with respect
to, assist or participate in, or facilitate in any other manner any effort or attempt by any person
to do or seek any of the foregoing. Seller, the Shareholder and the Principals will notify Buyer
immediately if any person makes any proposal, offer, inquiry or contact with respect to any of the
foregoing and Seller, the Shareholder and the Principals shall provide copies and disclose the
terms thereof to Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.10 Confidentiality.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Unless and until the Closing has been consummated, Buyer will hold, and shall cause their
counsel, independent certified public accountants, appraisers and investment bankers to hold, in
confidence any confidential data or information made available to Buyer in connection with this
Agreement with respect to the Business using the same standard of care to protect such confidential
data or information as is used to protect Buyer&#146;s confidential information. If the transactions
contemplated by this Agreement are not consummated, Buyer agrees that, upon the request of Seller,
Buyer shall return or cause to be returned to Seller all written materials and all copies thereof
that were supplied to Buyer by Seller and that contain any such confidential data or information
(subject only to document retention requirement applicable to any representative who are duly
qualified auditors pursuant to professional standards mandated to apply to such auditors, such
retained materials to be governed by ongoing requirements of confidentiality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Such documents, materials and information shall not be communicated to any third Person
(other than, in the case of Buyer, to its counsel, accountants, financial advisors or lenders, and
in the case of Seller, to its counsel, accountants or financial advisors). No Person shall use any
confidential information in any manner whatsoever except solely for the purpose of evaluating the
proposed purchase and sale of the Acquired Assets or the negotiation or enforcement of this
Agreement or any agreement contemplated hereby; provided that after the
Closing, Buyer may use or disclose any confidential information related to the Business or the
Western Warranties. The obligation of each party to treat such documents, materials and other
information in confidence shall not apply to any information which (i)&nbsp;is or becomes lawfully
available to such party from a source other than the furnishing party, (ii)&nbsp;is or becomes available
to the public other than as a result of disclosure by such party or its agents, (iii)&nbsp;is required
to be
</DIV>
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->- 35 -<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">disclosed under applicable law or judicial process, but only to the extent it must be
disclosed, or (iv)&nbsp;such party reasonably deems necessary to disclose to obtain any of the consents
or approvals contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For the purposes of s.20 of the <I>Personal Information Protection Act, S.B.C. 2004, c.63</I>,
and any other applicable legislation of comparable effect, the Buyer confirms that any employee
&#147;Personal Information&#148;, as defined in that Act, requested to be disclosed by the Buyer:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(i)&nbsp;is necessary for the purposes of the Buyer in determining to proceed with the
transactions hereby contemplated; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(ii)&nbsp;will be used solely as provided for in that s.20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Return of Information. If the purchase of the Business and Acquired Assets pursuant to
this Agreement is not completed, Buyer shall return to Seller all materials, documentation, data,
records, drawings and other papers and copies thereof (whether on paper or in electronic, magnetic,
photographic, mechanical or optical storage) referred to in Section&nbsp;5.10 in the possession of Buyer
and maintain the confidentiality of all information or knowledge obtained from Seller, and not use
any such information or knowledge for any purpose whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Notification. If the purchase of the Business and Purchased Assets pursuant to this
Agreement is consummated, Buyer will notify all persons whose personal information has been
disclosed to Buyer by Seller in connection with the Transactions, that the Closing has taken place
and that personal information about them has been disclosed to Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Remedies. Buyer acknowledges and agrees that if any of the provisions contained in
Sections&nbsp;5.10(a) and (b)&nbsp;are not performed in accordance with the terms set out therein, Seller
will be entitled to an injunction to prevent any breach of such provisions and may specifically
enforce such provisions in any action instituted in any court having jurisdiction. These specific
remedies are in addition to any other remedy to which Seller may be entitled at law or in equity,
including without limitation, recovery of Seller&#146;s reasonable attorney&#146;s fees and court costs,
whether suit is brought or not.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.11 Consents of Third Parties; Governmental Approvals.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller will act diligently and reasonably to secure, before the Closing Date, the consent,
approval or waiver, in form and substance reasonably satisfactory to Buyer, from any party to any
company agreement required to be obtained to permit the consummation of the transactions
contemplated by this Agreement or to otherwise satisfy the conditions set forth in this Agreement;
provided that (i)&nbsp;neither Seller nor Buyer shall have any obligation to offer or pay any
consideration in order to obtain any such consents or approvals; and (ii)&nbsp;Seller shall not make any
agreement or understanding affecting the assets or business of the Seller as a condition
for obtaining any such consents or waivers except with the prior written consent of Buyer.
During the period prior to the Closing Date, Buyer shall act diligently and reasonably to cooperate
with Seller to obtain the consents, approvals and waivers contemplated by this Section&nbsp;5.11(a).
</DIV>


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



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">- 36 -
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;During the period prior to the Closing Date, Seller and Buyer shall act diligently and
reasonably, and shall cooperate with each other, in making any required filing or notification and
in securing any consents and approvals of any Governmental Body required to be obtained by them in
order to permit the consummation of the transactions contemplated by this Agreement, or to
otherwise satisfy the conditions set forth in this Agreement; provided that Seller shall not make
any agreement or understanding affecting the assets or business of Seller as a condition for
obtaining any such consents or approvals except with the prior written consent of Buyer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.12 Maintenance of Leases. </B>Seller shall ensure that it at all times keeps its or its
Subsidiaries&#146; leases of the Leased Real Property, in good standing insofar as the obligations of
Seller or the Subsidiaries, as tenant thereunder are concerned. The Seller will promptly notify
the Buyer of any and all deficiencies and breaches under those leases of the Leased Real Property
of which it becomes aware and will provide a copy to Buyer concurrently with the issuance, or
receipt, as the case may be, of any notice given by or to the landlord thereunder, or received from
any third party, including landlord&#146;s mortgagor, if any. Further, the Seller will ensure that it
maintains in full force and effect all policies of insurance pertaining to the leased premises, the
contents thereof and the business operations conducted thereat, in amounts and deductibles the same
as those in force as of the date of this Agreement with its existing insurers or such other
insurers as may be acceptable to the Buyer, acting reasonably.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 6<BR>
ADDITIONAL COVENANTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.1 Employees and Employee Benefits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Buyer (and Subco in respect of the personnel of Dynamic) shall offer employment effective
as of the Effective Time to all those Active Employees of the Business (as defined in Appendix&nbsp;A)
listed on <B>Schedule </B>6.1 (the &#147;<U>Scheduled Employees</U>&#148;) on the same terms and conditions
applicable to such Scheduled Employees immediately prior to the Effective Time (other than the
Seller&#146;s share purchase or option programs). Effective as of the Effective Time, Seller shall
terminate the Scheduled Employees who accept employment with Buyer (the &#147;<U>Hired Employees</U>&#148;)
and they shall cease to be employees of Seller. Buyer shall be responsible for all obligations due
to the Hired Employees in respect of any matter occurring after the Effective Time. Seller shall
be responsible for all obligations due to the Scheduled Employees who do not accept employment with
Buyer. Accrued but unpaid wages and salaries and accrued vacation not yet taken shall be prorated
between the parties as of the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As soon as practicable following the Effective Time, but in no event later than sixty (60)
days therefrom, Buyer shall cause Hired Employees to be covered under employee benefit plans of
Buyer as previously in effect for similarly situated employees of Seller (other than the Seller&#146;s
share purchase or option programs). Buyer reserves the right to amend or terminate any of its
employee benefit plans as it (and they) may deem appropriate from time to time following the
Effective Time. For purposes of eligibility and vesting, to the extent legally allowed, Hired
Employees shall receive credit under Buyer&#146;s employee benefit plans for time served as an employee
of Seller or for service credited under Seller&#146;s Employee Benefit Plans,
for all purposes, including, but not limited to, entitlement for holidays, sick days, and
vacations.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Seller has given or will give all notices required under legislation or applicable
benefit plans to all employees of Seller who were or will be terminated or laid off by Seller on or
prior to the Effective Time. Seller shall be responsible for maintaining all of its Employee
Benefit Plans to the Effective Time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Seller shall maintain the Hired Employees on its payroll system after the Effective Time
until such time as the Hired Employees are enrolled on the payroll system of Buyer. Seller shall
cooperate with Buyer and provide access to Seller&#146;s payroll and employee personnel files, and its
employee benefit programs and files. The parties shall make any necessary adjustments,
reimbursements or indemnities with respect to the transfer of employees within sixty (60)&nbsp;days of
the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as specifically provided herein, Seller shall retain any and all obligations and
Liabilities in relation to employees or former employees of the Business whether or not pursuant to
any plan, program or arrangement sponsored by Seller or its Related Persons, including, but not
limited to the Employee Benefit Plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Union Employees.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Buyer acknowledges and agrees that it will be a successor employer and will assume all obligations
to employees whose terms and conditions of employment are governed by a Collective Agreement (the
&#147;Union Employees&#148;) and be bound by the terms of the Collective Agreements as required by applicable
law until their termination, expiration or replacement and will be bound by all proceedings under
the labour legislation of British Columbia, Alberta and Saskatchewan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Buyer and Seller acknowledge and agree that all grievances, references and arbitrations under the
Collective Agreements and any complaints or applications to any labour relations board (or to any
court or tribunal having any jurisdiction over matters arising out of the Collective Agreements),
that are made, filed, commenced or instituted before the Effective Time (or after the Effective
Time, but based primarily on events or circumstances that occurred, existed or were initiated
before the Effective Time), will be the sole responsibility of Seller. Seller shall not take any
action in connection with any such matters without giving prior written notice to Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Remittances. Seller shall remit promptly to Buyer any reimbursements and other amounts
received by Seller from all relevant workers compensation boards, other Governmental Entities or
other persons after the Closing Date with respect to all employment matters including, without
limitation, any and all claims filed by the Employees, with respect to periods after the Closing
Date. Buyer shall remit promptly to Seller any reimbursements and other amounts received by Buyer
from all relevant workers compensation boards, other Governmental Entities or other persons after
the Closing Date with respect to all employment matters including, without limitation, any and all
claims filed by the Employees, with respect to periods before the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Employee Benefits for Former Employees. With the exception of the obligations under the
Assumed Obligations (as shown in and/or adjusted for on the Closing Balance Sheet),
the Pension Plans and the Severance Obligations, Seller acknowledges that it is solely
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">responsible for all obligations to employees and former employees of Seller under its Employee
Benefits plans (including, without limitation, any Employee Benefits plans (except to the extent
provided for under the Assumed Contracts) providing for the continuation of post retirement
benefits previously provided by Seller and any of its predecessors to retired employees),
including, without limitation, any benefits to which an employee would have been entitled upon
voluntary termination of employment (by way of retirement or otherwise) at the Closing Date and
that any liabilities of Seller for failure to provide or otherwise be responsible for such benefits
and any changes made by Seller to its Employee Benefits plans constitute liabilities that are not
Assumed Liabilities for the purposes of Section&nbsp;1.4(a) and Buyer&#146;s obligations under this
Agreement, including without limitation the obligations of Buyer to indemnify Seller pursuant to
Section&nbsp;8.3, shall be deemed not to include any amount related to the matters for which Seller has
responsibility for under this Section&nbsp;6.1(g). For greater certainty, an employee will be
considered to become entitled to a benefit under this Section&nbsp;6.1(g) as follows: (i)&nbsp;in the case of
a death claim, on the date of death; (ii)&nbsp;in the case of a disability claim or a life insurance
premium waiver claim, on the date of the first incidence of disability, illness, injury or disease
that first qualifies an individual for benefits or to commence a qualifying period of benefits;
(iii)&nbsp;in the case of extended health care benefits, including dental and medical treatments, on the
date of treatment or the date of purchase of eligible medical or dental supplies, and (iv)&nbsp;in the
case of a claim for drug or vision benefits, the date the prescription was filled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.2 Payment of all Taxes Resulting from Sale of Acquired Assets by Seller. </B>All Transfer Taxes,
including any interest or penalties in respect thereof, shall be borne by Buyer. Seller and Buyer
shall cooperate with each other and use their commercially reasonable efforts to minimize the
Transfer Taxes attributable to the transfer of the Acquired Assets. The term &#147;<U>Transfer
Taxes</U>&#148; means any liability, obligation or commitment for transfer, documentary, sales, use,
registration, value-added and other similar Taxes (including all applicable real estate and
personal property transfer Taxes and real and personal property transfer gains Taxes) and related
amounts (including any penalties, interest and additions to Tax) incurred in connection with this
Agreement, the Ancillary Agreements, the transfer of the Acquired Assets (including the Real
Estate) to Buyer, and the other transactions contemplated hereby and thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.3 Assistance in Proceedings. </B>Seller will cooperate with Buyer and its counsel in the contest or
defense of, and make available its personnel and provide any testimony and access to its books and
records in connection with, any Proceeding involving or relating to (a)&nbsp;any of the transactions
contemplated by this Agreement or (b)&nbsp;any action, activity, circumstance, condition, conduct,
event, fact, failure to act, incident, occurrence, plan, practice, situation, status or transaction
on or before the Closing Date involving Seller or its business or the Shareholder or either
Principal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.4 Customer and Other Business Relationships. </B>After the Closing, Seller will cooperate with Buyer
in its efforts to continue and maintain for the benefit of Buyer those business relationships of
Seller existing prior to the Closing and relating to the business to be operated by Buyer after the
Closing, including relationships with lessors, employees, regulatory authorities, licensors,
customers, suppliers and others, and Seller will satisfy the Excluded Liabilities in a manner that
is not detrimental to any of such relationships. Seller will refer to Buyer all inquiries relating
to such business. Neither Seller nor any of its officers or the
Shareholder or the Principals shall take any action that would tend to diminish the value of the
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Acquired Assets after the Closing or that would interfere with the business of Buyer to be engaged
in after the Closing, including disparaging the name or business of Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.5 Retention of and Access to Records. </B>After the Closing Date, Buyer shall retain for a period
consistent with Buyer&#146;s record-retention policies and practices those books and records of Seller
delivered to Buyer. Buyer confirms its intention that all such books and records will remain in
their present locations and agrees that it shall in any event maintain such books and records in
Western Canada. Buyer shall provide Seller and its Representatives reasonable access thereto,
during normal business hours and on at least three days&#146; prior written notice, to enable them to
prepare financial statements or tax returns or deal with tax audits. Seller may retain or obtain
post-Closing at Buyer&#146;s reasonable expense, a copy of all such records for periods prior to the
Effective Time. After the Closing Date, Seller shall provide Buyer and its Representatives
reasonable access to books and records that are Excluded Assets reasonably related to the Business,
during normal business hours and on at least three days&#146; prior written notice, for any reasonable
business purpose specified by Buyer in such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.6 Prorations and Utilities. </B>The following shall be prorated and adjusted between Seller and
Buyer, and with respect to Leased Real Property, to the extent the lessee of the Leased Real
Property is responsible for such costs:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All taxes, assessments, general as well as special, and water and sewer use charges shall
be prorated as if such items were paid in advance in accordance with the due date of the taxing
authorities in the locations of the Real Property; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All utility and other operating costs shall be pro rated. Electric, gas and water meters
shall be read as of the date of Closing Date, and charges for such utilities received after the
Closing Date shall be prorated in accordance with such meter readings.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.7 Further Assurances. </B>Seller, after the Closing, without further consideration, shall execute,
acknowledge, and deliver any further deeds, assignments, conveyances, and other assurances,
documents, and instruments of transfer, reasonably requested by Buyer, and shall take any other
action consistent with the terms of this Agreement that may reasonably be requested by Buyer for
the purpose of assigning, transferring, granting, conveying, and confirming the Acquired Assets or
any part of the Acquired Assets to Buyer or to better enable Buyer to complete, perform or
discharge any of the liabilities or obligations assumed by Buyer. Each of the parties hereto will
cooperate with the other and execute and deliver to the other parties hereto such other instruments
and documents and take such other actions as may be reasonably requested from time to time by any
other party hereto as necessary to carry out, evidence and confirm the intended purposes of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.8 Product Liability Matters. </B>Seller and Buyer agree, with respect to product liability and
similar claims for injury to person or property which arise out of or are based upon any express or
implied representation, warranty, agreement or guarantee, or by reason of the improper performance
or malfunctioning of a product, improper design or manufacture of a product, failure to adequately
package, label or warn of hazards or other related product defects (any of the foregoing, a
&#147;<U>Product Liability Claim</U>&#148;), that: (i)&nbsp;if any such Product Liability Claim
arises out of an accident or occurrence involving a product manufactured or sold or any service
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">performed by Seller on or prior to the Effective Time, but excluding Ordinary Course Warranty
Claims (a &#147;<U>Seller Product Liability Claim</U>&#148;), the defense and handling of the same will be
undertaken by Seller directly or through the appropriate insurance contract, and (ii)&nbsp;if any such
Product Liability Claim arises out of an accident or occurrence involving a product manufactured or
sold or any service performed by Buyer after the Effective Time (a &#147;<U>Buyer Product Liability
Claim</U>&#148;), the defense and handling of the same will be undertaken by Buyer directly or through
the appropriate insurance contract. Buyer will use its commercially reasonable efforts to develop
and implement a procedure for marking products to facilitate identification of such products as
manufactured after the Effective Time reasonably consistent with the labeling procedures currently
used by Seller. With regard to the investigation and defense of Product Liability Claims, each
party agrees to provide the other with such documentary material and assistance of personnel
(subject to reimbursement of reasonable travel and lodging expenses) as is available to one party
and as the other may reasonably require in connection with such investigation or defense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.9 Cooperation on Tax Matters.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject always to the provisions of Section&nbsp;1.9 hereof:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller and Buyer agree to cooperate, and shall cause their respective affiliates,
officers, employees, agents, auditors and representatives to cooperate, and to furnish or cause to
be furnished to the other, upon request, as promptly as practicable, such information (including
access to books and records) and assistance relating to the Business, Acquired Assets and Assumed
Liabilities as is reasonably necessary for the filing of any Tax Return, the preparation for any
Tax audit, the prosecution or defense of any claim, suit or proceeding relating to any proposed Tax
adjustment involving the Business. Buyer and Seller shall keep all such information and documents
received by them confidential unless otherwise required by Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Buyer and Seller agree to retain or cause to be retained all books and records included in
the Acquired Assets until the applicable period for assessment of Taxes under applicable Law
(giving effect to any and all extensions or waivers) has expired, and such additional period as
necessary for any administrative or judicial proceedings relating to any proposed assessment, and
to abide by all record retention agreements entered into with any Taxing authority. Seller and
Buyer agree to give the other reasonable notice prior to transferring, discarding or destroying any
such books and records relating to Tax matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Buyer and Seller shall cooperate with each other in the conduct of any audit or other
proceedings for any Tax purposes and they shall each execute and deliver such powers of attorney
and other documents as are reasonably necessary to carry out the intent of this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.10 Checks and Drafts. </B>Seller shall honor (whether presented before, on, or after the Closing)
all checks, drafts and electronic funds transfers drawn or authorized by Seller on or prior to the
Closing Date to pay trade payables and accrued expenses of the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.11 Endorsement Authorization. </B>Effective as of the Closing Date, Seller appoints Buyer its
attorney-in-fact to open all mail relating to the Business addressed to Seller and to
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">endorse in
the name of Seller any checks, drafts, or other instruments received in payment of accounts accrued
after the Closing Date. Buyer promptly will send to Seller all mail not relating to the Acquired
Assets or the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.12 Press Releases. </B>Except as required by applicable law, no party to this Agreement shall give
notice to third parties or otherwise make any public statement or releases concerning this
Agreement or the transactions contemplated hereby except for such written information as shall have
been approved in writing as to form and content by the other parties, which approval shall not be
unreasonably withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.13 Access to Records after Closing.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For a period of seven years after the Closing Date, Seller&#146;s Representatives shall have
reasonable access to all of the books and records of Seller to the extent that such access may
reasonably be required in connection with matters relating to or affected by the operations of
Seller prior to the Closing Date. Such access shall be afforded by Buyer upon receipt of
reasonable advance notice and during normal business hours. Seller shall be solely responsible for
any costs or expenses incurred by it pursuant to this Section&nbsp;6.13. If Buyer shall desire to
dispose of any of such books and records prior to the expiration of such seven year period, Buyer
shall, prior to such disposition, give Seller&#146;s Representative a reasonable opportunity, at
Seller&#146;s expense, to segregate and remove such books and records as Seller&#146;s Representative may
select.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For a period of three years after the Closing Date, Buyer and its representatives shall
have reasonable access to all of the books and records relating to Seller which any of Seller or
any of its Affiliates may retain after the Closing Date. Such access shall be afforded by each
Seller and its Affiliates upon receipt of reasonable advance notice and during normal business
hours. Buyer shall be solely responsible for any costs and expenses incurred by it pursuant to
this Section&nbsp;6.13. If any Seller or any of its Affiliates shall desire to dispose of any of such
books and records prior to the expiration of such three-year period, such Seller shall, prior to
such disposition, give Buyer a reasonable opportunity, at Buyer&#146;s expense, to segregate and remove
such books and records as Buyer may select.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.14 Payment of Taxes on Sale and Transfer. </B>Buyer shall be responsible for and shall pay when due
any land transfer taxes, sales taxes, excise taxes (goods and services taxes) and similar taxes
(but not income taxes of Seller) and any registration fees, taxes or charges payable in respect of
the sale and transfer of the Business and Purchased Assets to Buyer and the assumption by Buyer of
the Assumed Obligations. Without limiting the generality of the foregoing paragraph, at the
Closing, Buyer and Seller shall table all completed returns required pursuant to the Social Service
Tax Act (British Columbia) with respect to the sale of the Purchased Assets and/or the assumption
by Buyer of the Assumed Obligations and Buyer shall table a cheque payable to the Minister of
Finance (British Columbia) in the amount of the tax required to be paid pursuant to that statute.
Immediately following the Closing, such returns and such cheque shall be forwarded by Buyer to the
appropriate taxation authority. Notwithstanding the foregoing, the parties shall claim the benefit
of any provision of applicable law that allows all or any of the Purchased Assets to be transferred
to Buyer by Seller without payment of sales or
transfer taxes, including any exemption for sales tax relating to production equipment or for goods
acquired for resale.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.15 Confidentiality. </B>Seller agrees to use reasonable efforts following the Closing, to cause its
agents, representatives, Affiliates, employees, officers/managers and directors/governors to: (i)
treat and hold as confidential (and not disclose or provide access to any Person to) all
information of Seller relating to trade secrets, processes, patent applications, product
development, price, supplier lists, pricing and marketing plans, policies and strategies, details
of customer contracts, operations methods, product development techniques, business acquisition
plans, new personnel acquisition plans and all other confidential or proprietary information of the
Business, (ii)&nbsp;if Seller or Seller&#146;s Affiliate becomes aware that its employee, officer/manager or
director/governor becomes legally compelled to disclose any such information, Seller shall provide
Buyer with prompt written notice of such requirement so that Buyer may seek a protective order or
other remedy or waive compliance with this Section&nbsp;6.15. The preceding restrictions shall not
apply to communications between Seller, Seller&#146;s Affiliates, Seller&#146;s accountants, counsel and
other agents and Seller&#146;s or Seller&#146;s Affiliates obligations of Tax reporting to any Governmental
Entity. Seller agrees and acknowledges that remedies at law for any breach of its obligations
under this Section&nbsp;6.15 are inadequate and that in addition thereto Buyer shall be entitled to seek
equitable relief, including injunction and specific performance, in the event of any such breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.16 Seller&#146;s Website. </B>Seller&#146;s trademarks, the phone numbers related to the various offices of
the Business, which phone numbers are listed on <B>Schedule </B>6.16, websites, domain names and email
addresses are part of the Acquired Assets. Seller will discontinue any usage of them upon Closing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.17 Employment Agreement</B>. Robert Adria agrees to enter into the Employment Agreement with the
Buyer in the form attached hereto as Exhibit&nbsp;E and including the business terms set out in <B>Schedule</B>
6.17. The Employment Agreement will be executed by Robert Adria and delivered to Buyer on or
before the Closing Date as one of Seller&#146;s deliveries due at Closing. The Employment Agreement
will be effective as of and from completion of Closing, and is subject always to successful
completion of Closing in accordance with the terms of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.18 Estevan Plant Asbestos</B>. Buyer acknowledges that Seller has disclosed the existence of
asbestos insulation in those portions of the Acquired Assets comprising the Estevan, Saskatchewan
manufacturing plant. Buyer accepts the presence of asbestos in that facility and shall assume
responsibility for it, and its ultimate removal, in accordance with applicable Environmental Laws.
Buyer does not accept responsibility for any claims and liabilities which may from time to time be
advanced by any current or former employees or other individuals to the extent deriving from the
presence of such asbestos during any periods prior to the Effective Time, and Seller shall be
solely responsible for such claims and liabilities, if any Seller represents and warrants that it
has not received notice of any such claim by an employee or individual, nor any demands from any
Governmental Authority for removal or remediation of such asbestos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.19 Pre-Closing Amalgamation. </B>Seller will implement prior to Closing a short form amalgamation
pursuant to which each of the Subsidiaries, other than Dynamic, Premier Modular Homes Inc. and
Western, is amalgamated into Seller which shall be the continuing amalgamated corporation. The
amalgamation shall be effected pursuant to the <I>Business Corporations Act</I>
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Alberta) and the current
constating documents and bylaws of Seller shall be those of the amalgamated entity. All
representations and warranties of Seller regarding itself, the Subsidiaries and the Business, and
all Seller closing deliveries, shall continue as herein set forth with only such adjustments as are
necessary to reflect the foregoing amalgamation. Without limiting the generality of the foregoing,
Seller warrants that the amalgamation will not result in any change to the consolidated financing
statements of Seller nor in any Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.20 Western Warranties.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller will cause Western to discontinue its warranty program as of the Effective Time and
acknowledges that any continuation of it would be competitive to the Business and constitute a
breach by Seller and Shareholder under the noncompetition agreements to be granted to Buyer under
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;To the extent Seller or Western has agreed in conjunction with an Assumed Liability to
grant a warranty from Western to a customer of the Business for delivery after the Effective Time,
Buyer will deliver such warranty to the customer concurrently with delivery of the products of the
Business being supplied to that customer under the Assumed Liability, and Seller shall cause
Western to not deliver a warranty to such customer. Buyer will provide notification of such
warranties when delivered so that Seller may cause Western to note the alternate warranty in its
records.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7<BR>
CONDITIONS TO CLOSING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7.1 Conditions to Obligations of Buyer. </B>The obligations of Buyer to consummate the transactions
provided for by this Agreement are subject, at the discretion of Buyer, to the satisfaction at or
prior to the Closing of each of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Representations and Warranties</U>. The representations and warranties of Seller, the
Shareholder and the Principals contained in this Agreement shall have been true and correct in all
material respects on and as of the date hereof and shall be true and correct in all material
respects on and as of the Closing Date as if originally made on and as of the Closing Date, except
that (i)&nbsp;those representations and warranties that are made as of a specific date shall be
determined as of such date and (ii)&nbsp;those representations and warranties that are qualified or
limited as to materiality or Material Adverse Effect shall be true and correct in all respects, and
Buyer shall have received a certificate to such effect signed by the President of Seller and the
Shareholder and each of the Principals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Agreements and Covenants</U><I>. </I>All of the agreements and covenants that Seller, the
Shareholder and the Principals are required to perform or comply with pursuant to this Agreement at
or prior to the Closing Date shall have been performed or complied with in all
material respects, and Buyer shall have received a certificate to such effect signed by the
President of Seller and the Shareholder and the Principals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Material Adverse Change</U><I>. </I>Since the date of this Agreement, there shall not have
occurred with respect to the Business any events or occurrences that, individually or in the
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">aggregate, have had a Material Adverse Effect, or any events or occurrences that, individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Consents and Approvals</U><I>. </I>Each of the consents, authorizations, approvals,
registrations, and filings from third parties and Governmental Authorities specified in <B>Schedule</B>
3.5 or otherwise necessary to permit the transactions contemplated by this Agreement shall have
been obtained and shall be in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Noncompetition Agreements</U><I>. </I>Seller, Robert Adria and Brian Holterhus shall have
delivered to Buyer executed Noncompetition and Confidentiality Agreements substantially in the form
of that attached hereto as Exhibit&nbsp;F (the &#147;<U>Noncompetition Agreements</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Due Diligence</U>. Buyer shall have been satisfied, in its sole discretion, with its
financial, business, environmental and legal due diligence of Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Release of Liens</U>. All Liens on the Acquired Assets shall have been terminated or
discharged other than Permitted Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Litigation; Other Events</U><I>. </I>No action, suit or proceeding shall have been
instituted by any person which seeks to prohibit, restrict or delay consummation of the
transactions contemplated herein or any of the conditions material to consummation of the
transactions contemplated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Employment Agreement</U>. Robert Adria shall have executed and delivered to Buyer,
effective on the Closing Date and subject always to the Closing, the Employment Agreement with the
Buyer in the form attached hereto as Exhibit&nbsp;E.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Parent Board Approval</U>. The Board of Directors of the Buyer&#146;s ultimate parent,
Champion Enterprises, Inc., shall have approved this Agreement and the transactions contemplated
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;<U>Employee Plans Confirmation</U>. Seller shall have delivered to Buyer written
confirmation from the plan administrator(s) of the insured benefit plan and pension plan described
in <B>Schedule </B>3.17 that it or they accept Buyer as the insured under such plans as of the Effective
Time, with no interruption of coverage thereunder.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7.2 Conditions to Obligations of Seller. </B>The obligations of Seller to consummate the transactions
provided for by this Agreement are subject, in the discretion of Seller, to the satisfaction at or
prior to the Closing Date of each of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Representations and Warranties</U>. The representations and warranties of Buyer
contained in this Agreement shall have been true and correct in all material respects on and as of
the date hereof and shall be true and correct in all material respects on and as of the Closing
Date as if originally made on and as of the Closing Date, except that (i)&nbsp;those representations
and warranties that are made as of a specific date shall be determined as of such date and (ii)
those representations and warranties that are qualified or limited as to materiality or Material
Adverse Effect shall be true and correct in all respects, and Seller shall have received a
certificate to such effect signed by the President of Buyer.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Escrow Agreement</U>. The Escrow Agreement shall have been delivered to Buyer for
Closing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Seller&#146;s Board Approval</U>. The Board of Directors of Seller shall have approved
this Agreement and the transactions contemplated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Agreements and Covenants</U><I>. </I>All of the agreements and covenants that Buyer is
required to perform or comply with pursuant to this Agreement at or prior to the Closing Date shall
have been performed or complied with in all material respects, and Seller shall have received a
certificate to such effect signed by the President of the Buyer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>7.3 Consideration re Conditions Precedent. </B>The Buyer and Seller each respectively acknowledge and
confirm to the other that receipt of the sum of One Dollar ($1) respectively, and other good and
valuable consideration, the sufficiency of which is acknowledged, as considerations for the
condition precedent set forth in this Article&nbsp;7, notwithstanding that certain of such conditions
are exercisable based upon the sole discretion of one or the other of the parties or their
affiliates.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 8<BR>
INDEMNIFICATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.1 Indemnification By Seller, the Shareholder and the Principals. </B>Subject to the limitations of
Section&nbsp;8.7, Seller, the Shareholder and each Principal, jointly and severally, shall indemnify and
hold harmless Buyer, its successors and assigns, and its officers, directors, employees, agents and
affiliates (&#147;<U>Buyer&#146;s Indemnified Persons</U>&#148;) from and against, and shall reimburse Buyer&#146;s
Indemnified Persons for, any and all losses, liabilities, claims, obligations, damages,
deficiencies, actions, judgments, regulatory, legislative or judicial proceedings or
investigations, assessments, levies, fines, penalties, costs, Legal Expenses (as defined in
Appendix&nbsp;A) or diminution in value, whether or not involving a third-party claim (collectively,
&#147;<U>Losses</U>&#148;), arising out of, based upon or in any way relating to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any misrepresentation in or breach of any representation or warranty of Seller, the
Shareholder or either Principal set forth in this Agreement or the Disclosure Schedule, or in any
certificate, document, writing, or other instrument delivered by Seller, the Shareholder or either
Principal pursuant to this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any breach or nonfulfillment of any covenant, agreement or other obligation of Seller in
this Agreement or in any certificate, document, writing or other instrument delivered by Seller
pursuant to this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any claims by third parties to the extent caused by acts or omissions of Seller or the
Subsidiaries on or prior to the Effective Time, including, but not limited to, claims arising out
of or related to Seller&#146;s or the Subsidiaries&#146; ownership or operation of the Acquired Assets
or the Business on or prior to the Effective Time, other than the Assumed Liabilities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any Employee Plan established or maintained by Seller or the Subsidiaries in respect of
any period prior to the Effective Time, except as otherwise provided for in this Agreement;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Seller Product Liability Claims;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;any Excluded Asset or Excluded Liability; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;enforcement of this Section&nbsp;8.1.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.2 Indemnification By Seller, the Shareholder and the Principals for Environmental Claims.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the limitations of Section&nbsp;8.7 and except as contemplated by Section&nbsp;6.18,
Seller, the Shareholder and each Principal, jointly and severally, shall indemnify and hold
harmless Buyer&#146;s Indemnified Persons from and against, and shall reimburse Buyer&#146;s Indemnified
Persons for, any and all Losses arising out of, based upon or in any way relating to any
Environmental Claim (as defined in Appendix&nbsp;A) arising under any of the Environmental Laws or any
Remedial Action arising pursuant to any of the Environmental Laws with respect to properties now
owned or leased by Seller, including, but not limited to, investigation, remediation, treatment or
clean up of any Hazardous Substance that is reasonably shown to have been or are present, released,
or disposed of prior to the Closing Date on such properties, or which are reasonably shown to have
migrated or been discharged or transported from such properties prior to the Closing Date, in
violation of Environmental Laws, or at levels which could give rise to liability for investigation,
remediation, removal, treatment or clean up under Environmental Laws; provided that the disclosures
made pursuant to Section&nbsp;3.25 or any attachment thereto (and whether or not a breach of Section
3.25 has occurred) in no way limit the right of any of Buyer&#146;s Indemnified Persons to
indemnification under this Section&nbsp;8.2. Buyer, acting reasonably, will be entitled to control any
Remedial Action, any Proceeding relating to an Environmental Claim and, except as provided in the
following sentence, any other Proceeding with respect to which indemnity may be sought under this
Section&nbsp;8.2, provided that where any Remedial Action is required Buyer shall give Seller a
reasonable opportunity to carry out the Remedial Action at Seller&#146;s expense. The procedure
described in Section&nbsp;8.4 will apply to any claim solely for monetary damages relating to a matter
covered by this Section&nbsp;8.2. Buyer will provide Seller on request with copies of any environmental
reports which it may have received prior to the Effective Time regarding the Acquired Assets and
any additional such reports which it may subsequently receive in respect of Environmental Claims
for periods prior to the Effective Time.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.3 Indemnification by Buyer. </B>Buyer shall indemnify and hold harmless Seller, its successors and
assigns, and its officers, directors, employees, agents and affiliates (&#147;<U>Seller&#146;s Indemnified
Persons</U>&#148;) from and against, and shall reimburse Seller&#146;s Indemnified Persons for, any and all
Losses arising out of, based upon or in any way relating to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any misrepresentation in or breach of any representation or warranty of Buyer set forth in
this Agreement or in any certificate, document, writing, or other instrument delivered by Buyer
pursuant to this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any breach or nonfulfillment of any covenant, agreement or other obligation of Buyer in
this Agreement or in any certificate, document, writing or other instrument delivered by Buyer
pursuant to this Agreement;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any claims by third parties to the extent caused by the acts or omissions of Buyer after
the Effective Time, including, but not limited to, claims arising out of or related to Buyer&#146;s
ownership or operation of the Acquired Assets or the Business after the Effective Time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any Buyer Product Liability Claims;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Assumed Liability; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;enforcement of this Section&nbsp;8.3.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.4 Defense of Third-Party Claims. </B>If any legal proceedings shall be instituted or any claim is
asserted by any third party in respect of which any party hereto may have an obligation to
indemnify another party, the party asserting such right to indemnity (the &#147;<U>Indemnified
Party</U>&#148;) shall give the party from whom indemnity is sought (the &#147;<U>Indemnifying Party</U>&#148;)
written notice thereof, but any failure to so notify the Indemnifying Party shall not relieve it
from any liability that it may have to the Indemnified Party other than to the extent the
Indemnifying Party is actually prejudiced thereby. The Indemnifying Party shall have the right, at
its option and expense, to participate in the defense of such proceeding or claim, but not to
control the defense, negotiation or settlement thereof, which control shall at all times rest with
the Indemnified Party, unless the Indemnifying Party (i)&nbsp;admits in writing its liability to the
Indemnified Party hereunder with respect to such proceeding or claim; and (ii)&nbsp;furnishes
satisfactory evidence of its financial ability to indemnify the Indemnified Party, in which case,
the Indemnifying Party may assume such control at its expense through counsel reasonably
satisfactory to such Indemnified Party; <U>provided, however, that</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Indemnified Party shall be entitled to participate in the defense of such claim and to
employ counsel at its own expense to assist in the handling of such claim;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Indemnifying Party shall obtain the prior written approval of the Indemnified Party
before entering into any settlement of such claim or ceasing to defend against such claim (with
such approval not to be unreasonably withheld);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;no Indemnifying Party shall consent to the entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof the giving by each claimant or
plaintiff to each Indemnified Party of a release from all liability in respect of such claim; and
the Indemnifying Party shall not be entitled to control (but shall be entitled to participate at
its own expense in the defense of), and the Indemnified Party shall be entitled to have sole
control over, the defense or settlement of any claim to the extent the claim seeks an order,
injunction, non-monetary or other equitable relief against the Indemnified Party which, if
successful, could
materially interfere with the business, operations, assets, condition (financial or otherwise) or
prospects of the Indemnified Party.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.5 Other Claims. </B>A claim for indemnification for any matter not involving a third-party claim
shall be asserted by the Indemnified Party to the Indemnifying Party in writing, setting forth
specifically the obligation with respect to which the claim is made, the facts giving rise to and
the alleged basis for such claim and, if known or reasonably ascertainable, the amount of the
liability asserted or which may be asserted by reason thereof, but any failure to so notify the
Indemnifying Party shall not relieve it from any liability that it may have to the Indemnified
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Party other than to the extent the Indemnifying Party is actually prejudiced thereby. In the event
the Indemnifying Party disputes its obligation to indemnify the Indemnified Party under this
Article&nbsp;8, the Indemnifying Party shall have thirty (30)&nbsp;days after receipt of notice under this
Section&nbsp;8.5 to give written notice of such objection, and the grounds therefor, and the Indemnified
Party shall thereafter have thirty (30)&nbsp;days to respond in writing to the objection of the
Indemnifying Party. If after such thirty (30)&nbsp;day period there remains a dispute as to any
obligation, the parties shall attempt in good faith for thirty (30)&nbsp;days to agree upon the rights
of the respective parties with respect to such indemnification obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.6 Survival. </B>Subject to the time limitations of this Section&nbsp;8.6, all representations,
warranties, covenants and obligations contained in this Agreement and in any certificate, document,
writing or instrument delivered pursuant to this Agreement shall survive the Closing and the
consummation of the transactions contemplated by this Agreement. The representations and
warranties of each party contained in this Agreement shall survive the Closing for a period of
twenty-four (24)&nbsp;months following the Closing Date, provided, however, that (i)&nbsp;the representations
and warranties of Seller, the Shareholder and the Principals set forth in Sections&nbsp;3.1
(Organization), 3.4 (Authority and Enforceability) and 3.11 (Title) shall survive indefinitely, and
(ii)&nbsp;the representations and warranties set forth in Section&nbsp;3.20 (Taxes), shall survive until 180
days after the running of the applicable statute of limitations with respect to the taxable period
to which the particular claim relates. Any claim for indemnity under Sections&nbsp;8.1(a) or 8.3(a)
shall be asserted in writing within 90&nbsp;days following the expiration of the foregoing time periods,
except for claims arising as a result of fraud, willful breach or criminal liability, as to which
the limitations of this Section&nbsp;8.6 shall not apply. Any other claim for indemnity under Article&nbsp;8
shall be asserted in writing within 90&nbsp;days after the running of the applicable statute of
limitations with respect to the underlying liability and the right of any of Buyer&#146;s Indemnified
Persons to indemnity for any such other claim for indemnification under Article&nbsp;8 shall not be
limited or affected by whether or not a breach of any representation or warranty has occurred. The
right to indemnification, reimbursement or other remedy based upon such representations,
warranties, covenants and obligations shall not be affected by any investigation (including any
environmental investigation or assessment) conducted with respect to, or any knowledge acquired (or
capable of being acquired) at any time, whether before or after the execution and delivery of this
Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with any
such representation, warranty, covenant or obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.7 Indemnification Limitations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except for Losses relating to breaches of Sections&nbsp;3.1 (Organization), 3.4 (Authority and
Enforceability), 3.11 (Title), 3.20 (Taxes) and 3.35 (Floorplan Program) and
Losses arising as a result of fraud, willful breach or criminal liability, as to which the
limitations of this sentence shall not apply, Buyer&#146;s Indemnified Persons may not assert any claim
for Losses under Sections&nbsp;8.1 or 8.2 until the total amount of such claims under this Agreement
exceed in the aggregate $500,000, and then Buyer&#146;s Indemnified Persons may assert claims for Losses
relating back to the first dollar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In no event shall the total liability of Seller, the Shareholder and the Principals for claims
of Losses under Section&nbsp;8.1 of this Agreement (other than relating to breaches of
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sections&nbsp;3.1,
3.4, 3.11, 3.20 and 3.35 of this Agreement) exceed in the aggregate the Cash Purchase Price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All recoveries for claims for Losses by Buyer&#146;s Indemnified Persons under Article&nbsp;8 shall
be made first from the principal amount, including interest income, of the Escrow Fund.
Notwithstanding anything to the contrary in this Agreement, in no event shall the liability of
either Principal exceed $5,000,000 individually, and the Principals shall not be liable in respect
of any claim for indemnity asserted more than five (5)&nbsp;years after the Effective Time.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.8 Right of Setoff; Escrow. </B>Upon notice to Seller specifying in reasonable detail the basis
therefor, Buyer may set off any amount up to a maximum of $10,000,000 to which it may be entitled
under this Article&nbsp;8 against amounts otherwise payable to Seller, the Shareholder or the Principals
or may give notice of a claim in such amount under the Escrow Agreement, provided that Buyer shall
not be entitled to make any set-off against the Note or amounts payable pursuant to the Employment
Agreement. Neither the exercise of nor the failure to exercise such right of setoff or to give a
notice of a claim under the Escrow Agreement will constitute an election of remedies or limit Buyer
in any manner in the enforcement of any other remedies that may be available to it.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 9<BR>
TERMINATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.1 Termination. </B>This Agreement may be terminated at any time prior to Closing:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;by mutual consent of Buyer and Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;by either Buyer or Seller if there has been a material breach of any representation,
warranty, covenant or agreement on the part of the other party set forth in this Agreement that has
not been cured by the breaching party within ten days after the non-breaching party has notified
the breaching party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;by either Buyer or Seller at any time after February&nbsp;29, 2008 (the &#147;<U>Final Termination
Date</U>&#148;), <U>provided that</U> if the Closing shall not have occurred by the Final Termination
Date as the result of a breach of this Agreement, then any party responsible for such breach may
not avail itself of the right under this Section&nbsp;9.1, and <U>provided further that</U> in any such
event, the non-breaching party(ies) shall not be deprived of any remedy hereunder or at law against
the breaching party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;by Buyer if the Closing shall not have occurred on the Closing Date by reason of the
failure of any of the conditions specified in Section&nbsp;7.1 and such failure has not been waived
by Buyer (unless the failure results primarily from the Buyer itself breaching any
representation, warranty or covenant contained in this Agreement);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;by Seller if the Closing shall not have occurred by the Closing Date by reason of the
failure of any of the conditions specified in Section&nbsp;7.2 and such failure has not been waived by
Seller (unless the failure results primarily from Seller himself breaching any representation,
warranty or covenant contained in this Agreement); or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;by either Buyer or Seller if a court of competent jurisdiction or Governmental Authority
shall have issued an order, decree or ruling or taken any other action, in each case permanently
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and
such order, decree, ruling or other action shall have become final and nonappealable.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.2 Effect of Termination. </B>In the event of termination of this Agreement by either Seller or
Buyer, as provided above, this Agreement shall forthwith terminate and there shall be no liability
on the part of either Seller or Buyer or Parent, or their respective officers or directors, except
for liabilities arising from a material breach by a party hereto of any of its representations,
warranties, covenants or agreements set forth in this Agreement; provided, however, that the
obligations of the parties set forth in Sections&nbsp;5.10 (Confidentiality) and 10.10 (Expenses) hereof
shall survive such termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.3 Not an Election. </B>Except as otherwise provided in this Article&nbsp;9, each party&#146;s right of
termination under Section&nbsp;9.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of such right of termination will not be an election of remedies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.4 Waiver of Conditions. </B>No waiver by the Buyer or the Seller of the conditions set forth in
Sections&nbsp;7.1 or 7.2, in whole or in part, shall in any way prejudice or limit the rights and
remedies of the party waiving such condition to claim or recover damages and compensation from the
other party in respect of any inaccuracy in any representation or warranty, nor in respect of any
breach or non-performance of any covenant, agreement or other obligation of the other party
contained in this Agreement, regardless of whether or not such matter was the subject of such
waiver. The parties may not rely on the failure to satisfy any of the conditions precedent set out
in Sections&nbsp;7.1 or 7.2 as a basis for non-compliance with their obligations under this Agreement if
such condition precedent would have been satisfied but for a material default by the party for
whose benefit the condition exists in complying with its obligations hereunder.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 10<BR>
OTHER PROVISIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.1 Appendices, Exhibits and Schedules. </B>All Recitals, Appendices, Exhibits and Schedules referred
to herein are intended to be and hereby are specifically made a part of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.2 Amendment. </B>This Agreement and the Appendices, Exhibits and Schedules hereto may not be
amended except by an instrument in writing signed on behalf of each of the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.3 No Waiver. </B>No failure of any party to this Agreement to exercise any power given it under
this Agreement, or to insist upon strict compliance with any provision of this Agreement, and no
custom or practice at variance with the terms of this Agreement shall constitute a waiver any such
party&#146;s right to demand strict compliance with the terms of this Agreement.
</DIV>

</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"><!-- Folio -->- 51 -<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.4 Entire Agreement; No Third Party Beneficiaries. </B>This Agreement, together with the Appendices,
Exhibits and Schedules hereto, (a)&nbsp;constitutes the entire Agreement between the parties pertaining
to the subject matter hereof and supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the parties, and (b)&nbsp;is
not intended to confer upon any person other than the parties hereto any rights or remedies
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.5 Governing Law. </B>This Agreement shall be governed by, construed, interpreted and the rights of
the parties determined in accordance with the laws of British Columbia (regardless of the laws that
might be applicable under principles of conflicts of law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.6 Accounting Terms. </B>All accounting terms used herein which are not expressly defined in this
Agreement shall have the respective meanings given to them in accordance with generally accepted
accounting principles on the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.7 Currency. </B>All references in this Agreement to dollar amounts are to Canadian dollars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.8 Notices. </B>All notices and other communications hereunder shall be in writing and shall be
deemed given (a)&nbsp;on the day of service if served personally on the party to whom notice is given,
(b)&nbsp;on the date of receipt if delivered by telecopy or nationally recognized overnight courier, or
(c)&nbsp;on the fifth (5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) business day after deposit in the U.S. or Canadian mail if mailed
to the party to whom notice is given by registered or certified mail, postage prepaid, return
receipt requested and properly addressed as follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">If to Buyer or Parent, addressed to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">William C. Griffiths, Chairman, President &#038; CEO<br>
Champion Enterprises, Inc.<br>
755 West Big Beaver Road<br>
Troy, Michigan<br>
Facsimile: 248-273-4278
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">with a copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">Roger K. Scholten<br>
Champion Enterprises, Inc.<br>
755 West Big Beaver Road<br>
Troy, Michigan<br>
Senior Vice President, General Counsel &#038; Corporate Secretary<br>
Facsimile: 248-273-4268
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">With a copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">Donald M. Dalik<br>
Fasken Martineau DuMoulin LLP<br>
#2900 &#151; 550 Burrard Street<br>
Vancouver, B.C. V6C 0A3<br>
Facsimile: 604-632-4739
</DIV>
</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"><!-- Folio -->- 52 -<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">If to Seller, the Shareholder or the Principals addressed to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">Robert S. Adria, President<br>
SRI Homes, Inc.<br>
485 Beaver Lake Road<br>
Kelowna, B.C. V4V 1S5<br>
Facsimile: 250-760-0583
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">Brian Holterhus<br>
Nelson Lumber Company Ltd.<br>
12727 St. Albert Trail<br>
Edmonton, AB T5L 4H5<br>
Facsimile: 780-455-9556<br>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">With a copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">Allan Farmer<br>
Reynolds Mirth Richards &#038; Farmer LLP<br>
Suite&nbsp;3200 Manulife Place<br>
10180 &#151; 101 Street<br>
Edmonton, Alberta T5J 3W8<br>
Facsimile: 780-429-3044
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or to such other place and with such other copies as either party may designate as to itself by
written notice to the others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.9 Counterparts; Headings. </B>This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. The headings of the several Articles and Sections herein are inserted for convenience
of reference only and are not intended to be part of or to affect the meaning or interpretation of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.10 Expenses. </B>Regardless of whether the transactions contemplated hereby are consummated, each
party hereto shall pay its or their own costs and expenses, including legal, accounting, consulting
and other professional fees, incurred in connection with the negotiation, preparation,
investigation, and performance by such party of this Agreement and the transactions contemplated
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.11 Construction. </B>The parties acknowledge that they have participated jointly in the negotiation
and drafting of the terms of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and
no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.12 Successors and Assigns. </B>This Agreement, and all rights and powers granted hereby, will bind
and inure to the benefit of the parties hereto and their respective successors and assigns.
</DIV>

</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"><!-- Folio -->- 53 -<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.13 Interpretation.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As used in this Agreement, the word &#147;including&#148; means without limitation, the word &#147;or&#148; is
not exclusive and the words &#147;herein&#148;, &#147;hereof&#148;, &#147;hereby&#148;, &#147;hereto&#148; and &#147;hereunder&#148; refer to this
Agreement as a whole. Unless the context otherwise requires, references herein: (i)&nbsp;to Articles,
Sections, Exhibits and Schedules mean the Articles and Sections of and the Exhibits and Schedules
attached to or referred to in this Agreement; (ii)&nbsp;to an agreement, instrument or other document
means such agreement, instrument or other document as amended, supplemented and modified from time
to time to the extent permitted by the provisions thereof and by this Agreement; and (iii)&nbsp;to a
statute means such statute as amended from time to time and includes any successor legislation
thereto. The Schedules and Exhibits referred to herein shall be construed with and as an integral
part of this Agreement to the same extent as if they were set forth verbatim herein. Titles to
Articles and headings of Sections are inserted for convenience of reference only and shall not be
deemed a part of or to affect meaning or interpretation of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The parties acknowledge that this Agreement is the product of arm&#146;s length negotiation
between the parties, each having obtained its own independent legal advice, and that this Agreement
shall be construed neither strictly for nor strictly against any party irrespective of which party
was responsible for drafting this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each and every covenant, representation or warranty of the Seller contained herein shall
be a joint and several covenant, representation or warranty of each of the Seller respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as herein specifically provided otherwise, all references to &#147;Schedules&#148; are
references to the correspondingly numbered Schedules attached to and forming part of the Disclosure
Letter.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.14 Parent Guarantee of Note. </B>The Parent will endorse the Note for delivery at Closing to
guarantee payment to Seller<B>. </B>The Parent&#146;s guarantee shall be as principal obligor and not merely
as surety. Parent shall have the benefit of Seller&#146;s covenants in this Agreement and the equities
between the parties deriving from this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">BUYER:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>1367606 ALBERTA ULC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">PARENT:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CHAMPION HOME BUILDERS CO.</B></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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</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"><!-- Folio -->- 54 -<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">SELLER:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>SRI HOMES, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">SHAREHOLDER:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>NGI INVESTMENT CORPORATION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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><TD style="font-size: 10pt">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>ROBERT ADRIA</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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><TD style="font-size: 10pt">&nbsp;</TD></TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>BRIAN HOLTERHUS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

</DIV>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Definitions</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this Agreement, the following terms shall have the following respective meanings:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Active Employee</U>&#148; shall mean any full-time or part-time employee at work performing
their normal or assigned duties on the Closing Date, or absent from work on approved short
term leave of absence, vacation, statutory holiday, incidental sick leave, short term
disability, or because such day is not a usual work day for such employee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Acquired Assets</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Agreement</U>&#148; shall have the meaning specified in the Preamble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Assigned Contracts</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Assigned Permits</U>&#148; shall have the meaning specified in Section&nbsp;3.21.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Assumed Liabilities</U>&#148; shall have the meaning specified in Section&nbsp;1.4.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Assumption Agreement</U>&#148; shall have the meaning specified in Section&nbsp;2.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Bill of Sale</U>&#148; shall have the meaning specified in Section&nbsp;2.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Business</U>&#148; shall have the meaning specified in the Recitals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Buyer</U>&#148; shall have the meaning specified in the Preamble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Buyer Documents</U>&#148; shall have the meaning specified in Section&nbsp;4.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Buyer Group</U>&#148; shall have the meaning specified in Section&nbsp;5.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Buyer Product Liability Claim</U>&#148; shall have the meaning specified in Section&nbsp;6.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Buyer&#146;s Indemnified Persons</U>&#148; shall have the meaning specified in Section&nbsp;8.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Cash Purchase Price</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Closing</U>&#148; shall have the meaning specified in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Closing Date</U>&#148; shall have the meaning specified in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Closing Payment</U>&#148; shall have the meaning specified in Section&nbsp;1.7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Closing Working Capital</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Closing Working Capital Calculation</U>&#148; shall have the meaning specified in Section&nbsp;1.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<U>Code</U>&#148; shall have the meaning specified in Section&nbsp;1.9.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contracts</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Control</U>&#148; (including the terms &#147;Controlling,&#148; &#147;Controlled by&#148; and &#147;under common
Control with&#148;) shall mean, with respect to the relationship between or among two or more Persons,
the possession, directly or indirectly, or as trustee, personal representative or executor, of the
power to direct or cause the direction of the affairs or management of a Person, whether through
the ownership of voting securities, as trustee, personal representative or executor, by Contract or
otherwise, including the ownership, directly or indirectly, of securities having the power to elect
a majority of the board of directors or similar body governing the affairs of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Current Assets</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Current Liabilities</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disclosure Letter</U>&#148; shall have the meaning specified in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dynamic</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Time</U>&#148; shall have the meaning specified in Section&nbsp;2.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee Plans</U>&#148; shall mean employment related plans, including but not limited to,
employment or consulting agreements, collective bargaining and supplemental agreements, pension,
profit sharing, incentive, bonus, deferred compensation, retirement, stock option, stock purchase,
severance, medical, hospitalization, dental, prescription, life insurance, disability, vacation,
salary continuation, sick pay, welfare, fringe benefit and other employee benefit plans, contracts,
programs, policies and arrangements, which Seller maintains or maintained, or under which Seller
has or had any obligations, with respect to any employee or former employee, officer or former
officer, director or former director, now or at any time during the past three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Claim</U>&#148; shall mean any and all administrative, regulatory or judicial
actions, suits, orders, demands, claims, notices of violation, investigations or proceedings or
requests for information involving any person alleging liability arising out of or resulting from
(A)&nbsp;alleged noncompliance with any Environmental Laws or Environmental Permits prior to the
Effective Time or (B)&nbsp;the alleged presence, migration or Release of, or exposure to, any Hazardous
Substances at any location prior to the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148; shall mean all foreign, Federal, Provincial and local laws,
statutes, ordinances, rules and regulations, and all Environmental Permits, orders, decrees,
Judgments or legally binding agreements relating to the use, management or disposal of Hazardous
Substances, or to pollution, or protection of endangered species, natural resources, human health
or the environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Permits</U>&#148; shall mean Permits which are or have been required under or
are or have been issued pursuant to Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Agent</U>&#148; shall have the meaning specified in Section&nbsp;1.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Agreement</U>&#148; shall have the meaning specified in Section&nbsp;1.7.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Fund</U>&#148; shall have the meaning specified in Section&nbsp;1.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Assets</U>&#148; shall have the meaning specified in Section&nbsp;1.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Business</U>&#148; shall have the meaning specified in Section&nbsp;1.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Liabilities</U>&#148; shall have the meaning specified in Section&nbsp;1.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Real Property</U>&#148; shall have the meaning specified in Section&nbsp;1.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Taxes</U>&#148; means the obligations in respect of any Taxes payable with respect to
(a)&nbsp;Seller, the Shareholder or the Principals; or (b)&nbsp;with respect to any period prior to the
effective time on the Closing Date, either the Business or the Acquired Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final Termination Date</U>&#148; shall have the meaning specified in Section&nbsp;9.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Financial Statements</U>&#148; shall have the meaning specified in Section&nbsp;3.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Floorplan Program</U>&#148; means the revolving credit facility with HSBC Bank Canada in the
maximum amount of $8&nbsp;million pursuant to which Seller or its Subsidiaries finance dealer purchases
of the products of the Business by way, inter alia, of notes receivable from such dealers,
assignments of such notes to the bank and issuance to the bank of notes payable by Seller or its
Subsidiaries, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; shall mean Canadian generally accepted accounting principles and practices, as
published by the Canadian Institute of Chartered Accountants and as applied consistently with prior
periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148; shall mean the government of Canada or any foreign country or
any state or political subdivision thereof and any entity, agency, body or authority exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to
government.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Substance</U>&#148; shall mean any and all substances or wastes which have been
defined or classified as hazardous, toxic or harmful pursuant to any Environmental Laws, or which
are regulated pursuant to such Environmental Laws, including petroleum and each of its chemical
constituents and by-products, urea formaldehyde foam insulation, polychlorinated biphenyls, and
asbestos in any form.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hired Employees</U>&#148; shall have the meaning specified in Section&nbsp;6.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Holding</U>&#148; shall have the meaning specified in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Party</U>&#148; shall have the meaning specified in Section&nbsp;8.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnifying Party</U>&#148; shall have the meaning specified in Section&nbsp;8.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property Rights</U>&#148; shall mean all intellectual property owned or licensed
(as licensor or licensee) by Seller in which Seller has a proprietary interest, including:
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Seller&#146;s name, all assumed fictional business names, trade names,
registered and unregistered trademarks, service marks and applications
(collectively, &#147;<U>Marks</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all patents, patent applications and inventions and discoveries that may
be patentable (collectively, &#147;<U>Patents</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all registered and unregistered copyrights in both published works and
unpublished works and all rights in mask works (collectively, &#147;<U>Copyrights</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all know-how, trade secrets, confidential or proprietary information,
customer and supplier lists, Software, technical information, manufacturing
processes, business practices, customer and supplier relationships, data, process
technology, plans, (collectively, &#147;<U>Trade Secrets</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all computer software and subsequent versions thereof, including source
code, object, executable or binary code, objects, comments, screens, user
interfaces, report formats, templates, menus, buttons and icons and all files, data,
materials, manuals, design notes and other items and documentation related thereto
or associated therewith (collectively, &#147;<U>Software</U>&#148;); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all rights in internet web sites and internet domain names presently used
by Seller (collectively &#147;<U>Net Names</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Inventory</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Law</U>&#148; shall mean any law, ordinance, code, statute, rule, regulation, order, judgment,
injunction, award, or decree of any court, arbitrator, administrative agency, regulatory body or
authority and governmental body or authority, whether federal, provincial, local or foreign.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Leased Real Property</U>&#148; shall have the meaning specified in Section&nbsp;3.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Legal Expenses</U>&#148; shall mean reasonable attorneys&#146;, accountants&#146;, investigators&#146;, and
experts&#146; fees, and expenses reasonably sustained or incurred in connection with the defense or
investigation of any Losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; shall mean any pledge, lien (including without limitation any tax lien),
charge, claim, encumbrance, security interest, mortgage, option, restriction on transfer (including
without limitation any buy-sell agreement or right of first refusal or offer), forfeiture, penalty,
license, equity or other right of another person of every nature and description whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Losses</U>&#148; shall have the meaning specified in Section&nbsp;8.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148; shall mean any material adverse change in (i)&nbsp;the Business
or the Acquired Assets taken as a whole, other than: (a)&nbsp;general economic conditions, or (b)
conditions which affect the modular home industry generally that are not specific to Seller; or
(ii)&nbsp;the ability of the Buyer, Seller, the Shareholder or the Principals to timely consummate the
transactions contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Contracts</U>&#148; shall have the meaning specified in Section&nbsp;3.18.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Noncompetition Agreements</U>&#148; shall have the meaning specified in Section&nbsp;7.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notice of Disagreement</U>&#148; shall have the meaning specified in Section&nbsp;1.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinary Course Warranty Claims</U>&#148; shall have the meaning specified in Section&nbsp;1.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Owned Real Property</U>&#148; shall have the meaning specified in Section&nbsp;3.13.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148; shall have the meaning specified in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permits</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Lien</U>&#148; shall mean (i)&nbsp;statutory liens for Taxes not yet due and payable,
(ii)&nbsp;statutory liens of landlords, carriers, warehousemen, mechanics and materialmen incurred in
the usual and ordinary course of business for sums not yet due, and (iii)&nbsp;those Liens set forth on
<B>Schedule </B>3.11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; or &#147;<U>person</U>&#148; shall mean an individual or any corporation, partnership,
joint venture, association, limited liability company, trust, unincorporated organization, or other
legal entity or a government or governmental entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Personal Property</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pre-closing Balance Sheet</U>&#148; shall have the meaning specified in Section&nbsp;3.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Principals</U>&#148; shall have the meaning specified in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Proceeding</U>&#148; shall have the meaning specified in Section&nbsp;3.23.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Product Liability Claim</U>&#148; shall have the meaning specified in Section&nbsp;6.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Proportionate Share</U>&#148; shall have the meaning specified in <B>Schedule </B>8.7(f).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Real Property</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Real Property Leases</U>&#148; shall have the meaning specified in Section&nbsp;3.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Receivables</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registered Intellectual Property</U>&#148; shall have the meaning specified in Section&nbsp;3.22.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Related Person</U>&#148; shall mean, with respect to any specified Person, any other Person
that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is
under common Control with, such specified Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148; shall mean any actual or threatened release, spill, emission, leaking,
dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into or
through the environment (including ambient air, surface water, groundwater, land surface or
subsurface strata) or within any building, structure, facility or fixture.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remedial Action</U>&#148; shall mean any action required under any Environmental Laws to (x)
clean up, remove, treat, or in any other way address any Hazardous Substance or other substance in
the environment, (y)&nbsp;prevent the Release or threat of Release, or minimize the further Release of
any Hazardous Substance or other substance so it does not migrate or endanger or threaten to
endanger public health or welfare or the environment, or (z)&nbsp;perform pre-remedial studies and
investigations and post-remedial monitoring and care.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Representative</U>&#148; shall mean with respect to a particular Person, any director,
officer, manager, employee, agent, consultant, advisor, accountant, financial advisor, legal
counsel or other representative of that Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reviewing Accountant</U>&#148; shall have the meaning specified in Section&nbsp;1.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Scheduled Employees</U>&#148; shall have the meaning specified in Section&nbsp;6.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller</U>&#148; shall have the meaning specified in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Documents</U>&#148; shall have the meaning specified in Section&nbsp;3.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Product Liability Claim</U>&#148; shall have the meaning specified in Section&nbsp;6.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller&#146;s Indemnified Persons</U>&#148; shall have the meaning specified in Section&nbsp;8.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shareholder</U>&#148; shall have the meaning specified in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Significant Customer</U>&#148; shall have the meaning specified in Section&nbsp;3.19.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Significant Supplier</U>&#148; shall have the meaning specified in Section&nbsp;3.19.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subco</U>&#148; shall have the meaning specified in Section&nbsp;2.2(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target Working Capital</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Returns</U>&#148; shall have the meaning specified in Section&nbsp;3.20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; shall have the meaning specified in Section&nbsp;3.20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>To the knowledge of Seller, the Shareholder and each of the Principals</U>,&#148; or
&#147;<U>known</U>,&#148; and words of similar import shall mean the collective knowledge of the Principals,
Jim Stevenson, Ken Josuttes and Gerry Kerr after due and reasonable investigation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transfer Taxes</U>&#148; shall have the meaning specified in Section&nbsp;6.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Western</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Western Warranties</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Working Capital Adjustment</U>&#148; shall have the meaning specified in Section&nbsp;1.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Yard Inventory</U>&#148; shall have the meaning specified in Section&nbsp;1.2.
</DIV>





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