Document:

EXHIBIT 10.5

                                    EXHIBIT C

                                MERGER AGREEMENT

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                          AGREEMENT AND PLAN OF MERGER
                                     by and
                                      among

                     Empire Energy Corporation International
                              a Nevada corporation,

                             EEGC Acquisition, Inc.,
                              a Kansas corporation

                                       and

                            Bob Owen & Company, Inc.,
                              a Kansas corporation

                                       i

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                         LIST OF SCHEDULES AND EXHIBITS
                                       TO
                          AGREEMENT AND PLAN OF MERGER

         SCHEDULES

         Company Disclosure Schedule

         Schedule 4.2(d)   BOCI Financial Statements

         Schedule 4.2(i)   BOCI Legal Proceedings

         Schedule 4.2(g)   BOCI Liabilities

         Schedule 4.2(m)   BOCI Absence of Certain Changes or Events

         Schedule 4.2(n)   BOCI Compliance with Law

         EXHIBITS

         Exhibit 2.2(a)        Escrow Agreement

         Exhibit 6.1(a)        Company Certified Resolutions

         Exhibit 6.1(b)        Opinion of Counsel to the Company

         Exhibit 6.1(c)        Opinion of Special Securities Counsel to Company
                               re Rule 504

         Exhibit 6.1(d)        Company's Instruction Letter to Transfer Agent

         Exhibit 6.1(e)        Acquisition Certified Resolutions

         Exhibit 6.1(f)        Company Officer's Certificate

         Exhibit 6.1(h)        Acquisition Officer's Certificate

         Exhibit 6.2(a)        BOCI Certified Resolutions

         Exhibit 6.2(b)        Opinion of BOCI counsel

         Exhibit 6.2(c)        Opinion of Special Securities Counsel to BOCI
                               re Rule 504

         Exhibit 6.2(e)        BOCI Officer's Certificate

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<PAGE>

     AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of May 20, 2004,
by and among Empire Energy Corporation International, a Nevada corporation (the
"Company"), EEGC Acquisition, Inc., a Kansas corporation ("Acquisition") and Bob
Owen & Company, Inc., a Kansas corporation ("BOCI").

                                    RECITALS

     WHEREAS, the Company and BOCI desire to merge Acquisition with and into
BOCI whereby BOCI shall be the surviving entity pursuant to the terms and
conditions set forth herein and whereby the transaction is intended to qualify
as a tax free reorganization pursuant to Section 368(a) of the Internal Revenue
Code of 1986, as amended (the "IRC"), to the extent permitted by applicable law;

     WHEREAS, in furtherance of such combination, the Boards of Directors of the
Company, Acquisition and BOCI have each approved the merger of Acquisition with
and into BOCI (the "Merger"), upon the terms and subject to the conditions set
forth herein, in accordance with the applicable provisions of the Kansas General
Corporation Code (the "KGCC").

     WHEREAS, the stockholder of BOCI desires to exchange all of its shares of
the capital stock of BOCI (the "BOCI Capital Stock") for shares of the capital
stock of the Company (the "Company Capital Stock") as a tax free reorganization
pursuant to Section 368(a) of the IRC, to the extent permitted by applicable
law;

     WHERAS, just prior to the Merger, BOCI's 1.5% Convertible Debentures Due
May 19, 2009 in the aggregate principal amount of Four Hundred Eighty Five
Thousand Dollars ($485,000) (the "BOCI First Debenture") and BOCI's 1.5%
Convertible Debenture Due May 19, 2009 in the principal amount of Fifteen
Thousand Dollars ($15,000) (the "BOCI Second Debenture" and, together with the
BOCI First Debenture, the "BOCI Debentures") are convertible into shares of BOCI
common stock, par value $.001 (the "BOCI Common Stock"), pursuant to the terms
of the BOCI Debentures and the Purchase Agreement (as defined below) and upon
the consummation of the Merger will be convertible into an equivalent number of
shares of the Company's common stock, par value $0.001 per share (the "Company
Common Stock") (the "Company Underlying Shares");

     WHEREAS, upon the effectiveness of the Merger and pursuant to the terms of
this Agreement and the Purchase Agreement, the Company Underlying Shares will be
substituted for the BOCI Underlying Shares, the Company will assume the
obligations, jointly and severally, with BOCI under the BOCI Debentures and the
Company will assume the obligations of BOCI under that certain Convertible
Debenture Purchase Agreement dated even date herewith between BOCI and HEM
Mutual Assurance LLC ("HEM") (the "Purchase Agreement") and BOCI will be
released from certain of such obligations; and

     WHEREAS, all defined terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Purchase Agreement.

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     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements herein contained, and intending to be legally bound hereby, the
parties agree as follows:

                                    ARTICLE I

                                   THE MERGER

     1.1 The Merger. At the Effective Time (as hereinafter defined) and subject
to and upon the terms and conditions of this Agreement and the KGCC, Acquisition
shall be merged with and into BOCI pursuant to the Merger. Following the Merger,
BOCI shall continue as the surviving corporation (the "Surviving Corporation")
and the separate corporate existence of Acquisition shall cease. As part of the
Merger and as more fully described in Section 2.1, (i) the One Thousand (1,000)
issued and outstanding shares of the BOCI Common Stock shall be exchanged for
Company Common Stock at the Exchange Ratio (as defined below) and (ii) each
share of Acquisition's issued and outstanding shares of common stock, par value
$.001 per share (the "Acquisition Common Stock"), shall be converted into one
validly issued, fully paid and non-assessable share of common stock, par value
$.001, of the Surviving Corporation (the "Surviving Corporation Common Stock").

     1.2 Effective Time. The Merger shall be consummated as promptly as
practicable after satisfaction of all conditions to the Merger set forth herein,
by filing with the Secretary of State of the State of Kansas a certificate of
merger or similar document (the "Certificate of Merger"), and all other
appropriate documents, executed in accordance with the relevant provisions of
the KGCC. The Merger shall become effective upon the filing of the Certificate
of Merger with the Secretary of the State of the State of Kansas. The time of
such filing shall be referred to herein as the "Effective Time."

     1.3 Effects of the Merger. At the Effective Time, all the rights,
privileges, immunities, powers and franchises of Acquisition and BOCI and all
property, real, personal and mixed, and every other interest of, or belonging to
or due to each of Acquisition and BOCI shall vest in the Surviving Corporation,
and all debts, liabilities, obligations and duties of Acquisition and BOCI,
including, without limitation, the performance of all obligations and duties of
BOCI pursuant to the Purchase Agreement, the BOCI Debentures and the exhibits,
schedules and all documents executed in connection therewith or any other
Transaction Document (as defined in the Purchase Agreement), shall become the
debts, liabilities, obligations and duties of the Surviving Corporation (except
as assumed by the Company) without further act or deed, all in the manner and to
the full extent provided by the KGCC. Whenever a conveyance, assignment,
transfer, deed or other instrument or act is necessary to vest any property or
right in the Surviving Corporation, the directors and officers of the respective
constituent corporations shall execute, acknowledge and deliver such instruments
and perform such acts, for which purpose the separate existence of the
constituent corporations and the authority of their respective directors and
officers shall continue, notwithstanding the Merger.

     1.4 Certificate of Incorporation. The Certificate of Incorporation of BOCI,
as in effect immediately prior to the Effective Time, shall be the Certificate
of Incorporation of the Surviving Corporation and thereafter may be amended or
repealed in accordance with its terms and applicable law.

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     1.5 By-Laws. At the Effective Time and without any further action on the
part of Acquisition and BOCI, the By-laws of BOCI shall be the By-laws of the
Surviving Corporation and thereafter may be amended or repealed in accordance
with their terms or the Certificate of Incorporation of the Surviving
Corporation and as provided by law.

     1.6 Directors. The directors of Acquisition at the Effective Time shall be
the directors of the Surviving Corporation, until the earlier of their
resignation or removal or until their respective successors are duly elected and
qualified, as the case may be.

     1.7 Officers. The officers of Acquisition at the Effective Time shall be
the officers of the Surviving Corporation, until the earlier of their
resignation or removal or until their respective successors are duly appointed
and qualified, as the case may be.

     1.8 Tax-Free Reorganization. The parties intend that the Merger shall be
treated as a tax-free reorganization pursuant to Section 368(a) of the IRC, to
the extent permitted by applicable law.

                                   ARTICLE II

           CONVERSION OF BOCI SHARES AND ASSUMPTION OF BOCI DEBENTURES

     2.1 Conversion and Cancellation of BOCI Common Stock. As of the Effective
Time, by virtue of the Merger and without any action on the part of the Company,
Acquisition or BOCI or the holders of any shares of the capital stock of
Acquisition or BOCI:

          (a) Subject to the provisions of Sections 2.4 and 2.5, each share of
BOCI Common Stock (the "BOCI Common Stock Shares") issued and outstanding
immediately prior to the Effective Time (other than shares canceled in
accordance with Section 2.1(b) and other than with respect to the escrow shares
deposited by BOCI with the Escrow Agent (as defined below) in accordance with
the Purchase Agreement (the "BOCI Escrow Shares") which shall be automatically
cancelled and replaced with an equal number of Company Escrow Shares in
accordance with Section 2.2, shall be converted into 0.04 (the "Exchange Ratio")
of a validly issued, fully paid and nonassessable share of Company Common Stock
(the "Company Common Stock Shares"). As of the Effective Time, each BOCI Common
Stock Share shall no longer be outstanding and shall automatically be canceled
and cease to exist, and each holder of a certificate representing any BOCI
Common Stock Share shall cease to have any rights with respect thereto other
than the right to receive Company Common Stock Shares to be issued in
consideration therefor upon the surrender of such certificate, properly endorsed
to the Company.

          (b) Each share of BOCI Capital Stock held in the treasury of the BOCI
and each share of BOCI Capital Stock owned by Acquisition or Company shall be
canceled without any conversion thereof and no payment, distribution or other
consideration shall be made with respect thereto.

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          (c) Each issued and outstanding share of Acquisition Common Stock
shall be converted into one validly issued, fully paid and nonassessable share
of Surviving Corporation Common Stock.

     2.2 Escrow Materials. (a) At the Post-Closing, the Company shall deposit
into escrow with Gottbetter & Partners, LLP, as escrow agent (the "Escrow
Agent") the following, which are hereinafter collectively referred to as the
"Escrow Materials," (i) the escrow agreement annexed hereto and made a part
hereof as Exhibit 2.2(a) (the "Escrow Agreement"), (ii) certificates
representing Fifty Million (50,000,000) shares of duly issued Company Common
Stock, without restriction and freely tradable pursuant to Rule 504 of
Regulation D of the Securities Act (the "Company Escrow Shares"), in share
denominations specified by the Purchaser, registered in the name of the
Purchaser and/or its assigns; and (iii) a power of attorney with respect to the
Company Underlying Shares and the Company Escrow Shares, in the form annexed to
the Escrow Agreement as Appendix I. At the Post-Closing, upon the Company
fulfilling its obligations under this Section 2.2, Escrow Agent shall release to
the Company the BOCI Escrow Shares cancelled in accordance with Section 2.1. The
Escrow Materials shall be held in escrow in accordance with the Escrow
Agreement. The Escrow Materials shall be released from escrow only in accordance
with this Section 2.2, the Purchase Agreement the BOCI Debentures and the Escrow
Agreement.

          (b) Upon the effectiveness of the Merger and in accordance with
Section 2.7 hereof, the Company shall substitute the Company Underlying Shares
and the Company Escrow Shares for the BOCI Underlying Shares and the BOCI Escrow
Shares with regard to all of the rights and obligations, specifically including
the conversion rights, under the BOCI Debentures, and the BOCI Escrow Shares
shall be cancelled.

     2.3 [Intentionally left blank].

     2.4 Adjustment of the Exchange Ratio. In the event that, prior to the
Effective Time, any stock split, combination, reclassification or stock dividend
with respect to the Company Common Stock or BOCI Common Stock, any change or
conversion of Company Common Stock or BOCI Common Stock or into other securities
or any other dividend or distribution with respect to the Company Common Stock
or BOCI Common Stock (other than regular quarterly dividends) should occur or,
if a record date with respect to any of the foregoing should occur, appropriate
and proportionate adjustments shall be made to the Exchange Ratio, and
thereafter all references to an Exchange Ratio shall be deemed to be to such
Exchange Ratio as so adjusted.

     2.5 No Fractional Shares. No certificates or scrip representing fractional
shares of Company Common Stock shall be issued upon the surrender for exchange
of certificates and such fractional share shall not entitle the record or
beneficial owner thereof to vote or to any other rights as a stockholder of the
Company. The number of shares of Company Common Stock to be issued shall be
rounded up to the nearest whole share.

     2.6 Further Assurances. If at any time after the Effective Time the
Surviving Corporation shall consider or be advised that any deeds, bills of
sale, assignments or assurances or any other acts or things are necessary,
desirable or proper (a) to vest, perfect or confirm, of record or otherwise, in

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the Surviving Corporation, its right, title or interest in, to or under any of
the rights, privileges, powers, franchises, properties or assets of either BOCI
or Acquisition or (b) otherwise to carry out the purposes of this Agreement, the
Surviving Corporation and its proper officers and directors or their designees
shall be authorized (to the fullest extent allowed under applicable law) to
execute and deliver, in the name and on behalf of either BOCI or Acquisition ,
all such deeds, bills of sale, assignments and assurances and do, in the name
and on behalf of BOCI or Acquisition, all such other acts and things necessary,
desirable or proper to vest, perfect or confirm its right, title or interest in,
to or under any of the rights, privileges, powers, franchises, properties or
assets of BOCI or Acquisition, as applicable, and otherwise to carry out the
purposes of this Agreement.

     2.7 BOCI Debentures. (a) As of the Effective Time, the Company assumes,
jointly and severally with BOCI, all of the obligations and responsibilities
under the BOCI Debentures to the holder or holders of the BOCI Debentures. With
respect to the BOCI Debentures, at the Effective Time, the Company shall (i)
replace the BOCI Underlying Shares, with the Company Underlying Shares and (ii)
replace the Escrow Shares deposited by BOCI with the Escrow Agent with the
Company Escrow Shares.

     (b) At the Effective Time, (i) all references in the BOCI Debentures to
Company Common Stock (as defined in the BOCI Debentures) shall be references to
Company Common Stock (as defined herein) and (ii) all references to the Company
(as defined in the BOCI Debentures) in the BOCI Debentures shall be read as
references to the Company (as defined herein) as if the BOCI Debentures were
issued on the date the BOCI Debentures were issued, by the Company (as defined
herein), specifically including all calculations in the BOCI Debentures such as
the determination of the conversion price, the Conversion Price, the Fixed
Conversion Price and the Floating Conversion Price. The Exchange Ratio (as
defined herein) shall have no effect on the BOCI Debentures or the assumption
thereof by the Company (as defined herein).

     (c) At the Effective Time, BOCI shall assign and the Company shall assume
all of BOCI's obligations and covenants under the Purchase Agreement as if the
Company executed the Purchase Agreement instead of BOCI on the date thereof. At
the Effective Time, all references to the Company (as defined in the Purchase
Agreement) in the Purchase Agreement shall mean the Company (as defined herein)
and all references to dates or tolling of periods shall be read as if the
Company (as defined herein) executed the Purchase Agreement instead of the
Company (as defined in the Purchase Agreement). At the Effective Time, all of
the remedies available to the current and future holders of the BOCI Debentures
under the Purchase Agreement against the Company (as defined in the Purchase
Agreement) shall be available against the Company (as defined herein).

     (d) The provisions described in this Section 2.7 shall not be amended and
shall be in effect until the earlier of (i) the date all of the BOCI Convertible
Debentures have been converted into Company Common Stock Shares and (ii) six (6)
years from the date the BOCI Debentures were issued.

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<PAGE>

     (e) The current and future holders of the BOCI Debentures shall be third
party beneficiaries of this Agreement. There shall be no other third party
beneficiaries to this Agreement or any part hereof.

                                   ARTICLE III

                                     CLOSING

     Subject to satisfaction of the conditions to closing set forth in this
Agreement and unless this Agreement is otherwise terminated in accordance with
the provisions contained herein, the closing of the Merger and the Contemplated
Transactions (the "Post-Closing") shall take place at the offices of Gottbetter
& Partners, LLP, 488 Madison Avenue, New York, New York as promptly as
practicable after satisfaction of the conditions set forth in this Agreement,
which in no event shall be more than ten days after the Closing Date under the
Purchase Agreement (except if such 10th day is not a Business Day, then the next
Business Day) (the "Post-Closing Date").

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     7.14 4.1 Representations and Warranties of the Company and Acquisition.
Except as disclosed in the Reports (as defined below) or in a document of even
date herewith referring to the representations and warranties in this Agreement
and delivered by Company to BOCI prior to the execution and delivery of this
Agreement (the "Company Disclosure Schedule"), Acquisition and the Company
hereby make the following representations and warranties to BOCI, all of which
shall survive the Post-Closing, subject to the limitations set forth in Section
8.1 hereof:

          (a) Organization and Good Standing. Acquisition is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Kansas, with full corporate power and authority to conduct its business as it is
now being conducted, to own or use the properties and assets that it owns or
uses, and to perform all its obligations under this Agreement. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada, with full corporate power and authority to conduct its
business as it is now being conducted, to own or use the properties and assets
that it owns or uses, and to perform all its obligations under this Agreement
and, upon the Post-Closing the BOCI Debentures. Company has no subsidiaries
other than Acquisition and other than as set forth on the Company Disclosure
Schedule (individually, a "Subsidiary" and collectively, the "Subsidiaries").
Acquisition has no subsidiaries. Each of the Company and Acquisition is duly
qualified to do business and is in good standing as a foreign corporation in
each jurisdiction in which either the ownership or use of the properties owned
or used by it, or the nature of the activities conducted by it, requires such
qualification, except for such failures to be so qualified or in good standing
would not have a Material Adverse Effect.

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<PAGE>

          (b) Authority; No Conflict.

              i. This Agreement and any agreement executed in connection
herewith by Company or Acquisition constitute the legal, valid and binding
obligations of the Company and Acquisition, as the case may be, enforceable
against the Company and Acquisition, as the case may be, in accordance with
their respective terms, except as such enforceability is limited by bankruptcy,
insolvency and other laws affecting the rights of creditors and by general
equitable principles. The Company has the absolute and unrestricted right,
power, authority and capacity to execute and deliver this Agreement and any
agreement executed by it in connection herewith and to perform its obligations
hereunder and thereunder.

              ii. Neither the execution and delivery of this Agreement by each
of the Company and Acquisition, nor the consummation or performance by each of
any of its respective obligations contained in this Agreement or in connection
with the Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time):

                  a. contravene, conflict with or result in a violation of (x)
any provision of the Organizational Documents of the Company or Acquisition, as
the case may be, or (y) any resolution adopted by the board of directors or the
stockholders of the Company or Acquisition, as the case may be;

                  b. contravene, conflict with or result in a violation of, or
give any governmental body or other Person the right to challenge any of the
Contemplated Transactions or to exercise any remedy or obtain any relief under,
any Legal Requirement or any Order to which the Company or Acquisition or any of
the assets owned or used by the Company or Acquisition may be subject;

                  c. contravene, conflict with or result in a violation or
breach of any provision of, or give any Person the right to declare a default or
exercise any remedy under, or to accelerate the maturity or performance of, or
to cancel, terminate or modify, this Agreement, the BOCI Debentures (once
assumed by Company) or any Applicable Contract;

                  d. result in the imposition or creation of any material
encumbrance upon or with respect to any of the material assets owned or used by
the Company or Acquisition;

                  e. cause the Company or Acquisition to become subject to, or
to become liable for the payment of, any tax; or

                  f. cause any of the assets owned by the Company or Acquisition
to be reassessed or revalued by any taxing authority or other governmental body,
except in connection with the transfer of real estate pursuant to this Agreement
or the Contemplated Transactions, if any.

          (c) Capitalization. The capitalization of the Company as of September
30, 2003 is as set forth in the Form 10-Q for the period ended September 30,
2003, increased as set forth in the next sentence. The Company has not issued
any capital stock since that date other than pursuant to (i) employee benefit

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<PAGE>

plans disclosed in the Reports (as defined in Section 4.1(d)) or (ii)
outstanding warrants, options or other securities disclosed in the Reports. All
of the issued and outstanding shares of the Company Capital Stock have been duly
authorized and validly issued and are fully paid and non-assessable. Except for
this Agreement and as disclosed in the Reports, there are no outstanding
options, warrants, script, rights to subscribe to, registration rights, calls or
commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exchangeable for, or giving any Person any right
to subscribe for or acquire, any shares of the Company Common Stock, or
contracts, commitments, understandings, or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional shares of the Company
Common Stock, or securities or rights convertible or exchangeable into shares of
the Company Common Stock. None of the outstanding Company Capital Stock was
issued in violation of the Securities Act or any other legal requirement.

          (d) Financial Statements. The Company has delivered or made available
to BOCI copies of its Form 10-K Annual Report for the fiscal year ended December
31, 2002 and December 31, 2003, each as filed with the SEC and including, in
each case, any amendments thereto (collectively, the "Reports"). The financial
statements contained in the Reports are in all material respects in accordance
with the books and records of the Company and have been prepared in accordance
with GAAP applied on a consistent basis throughout the periods indicated, all as
more particularly set forth in the notes to such statements. The consolidated
balance sheets contained in such Reports (the "Company Balance Sheets") present
fairly in all material respects as of their dates the consolidated financial
condition of the Company and its subsidiaries. Except as and to the extent
reflected or reserved against in the Company Balance Sheets (including the notes
thereto), the Company did not have, as of the date of any such Company Balance
Sheet, any material liabilities or obligations (absolute or contingent) of a
nature customarily reflected in a balance sheet or the notes thereto. The
consolidated statements of operations, consolidated statements of stockholders'
equity and changes in consolidated statements of cash flows present fairly in
all material respects the results of operations and changes in financial
position of the Company and its subsidiaries for the periods indicated.

          (e) SEC Filings. The Company has filed all reports required to be
filed with the SEC under the rules and regulations of the SEC and all such
reports have complied in all material respects, as of their respective filing
dates and effective dates, as the case may be, with all the applicable
requirements of the Securities Exchange Act of 1934, as amended. As of the
respective filing and effective dates, none of such reports (including without
limitation, the Reports) contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

          (f) Absence of Material Adverse Change. Since the date of the latest
Company Balance Sheets, there have been no events, changes or occurrences which
have had or are reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect.

          (g) Issuance of Company Securities. The Company Common Stock Shares,
and when issued in accordance with this Agreement, the Purchase Agreement, the
BOCI Debentures and the Escrow Agreement, the Company Underlying Shares and the

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<PAGE>

Company Escrow Shares, shall be duly authorized, validly issued, fully-paid and
nonassessable. The Company currently has, and at all times while the BOCI
Debentures are outstanding will maintain, an adequate reserve of shares of the
Company Common Stock to enable it to perform its obligations under this
Agreement and BOCI Debentures. Except as set forth in the Reports, there is no
equity line of credit or convertible security or instrument outstanding of the
Company.

          (h) Undisclosed Liabilities. Except as disclosed in any Schedule to
this Agreement, none of the Company, Acquisition or the Subsidiaries has any
material obligations and liabilities (contingent or otherwise) except those
liabilities (i) that are reflected in the Company Balance Sheets or in the notes
thereto, or disclosed in the notes therein in accordance with GAAP or, in
accordance with GAAP, are not required to be so reflected or disclosed, or (ii)
that were incurred after the date of the Company Balance Sheets in the Ordinary
Course of Business, none of which results from, arises out of, relates to, is in
the nature of, or was caused by any breach of contract, breach of warranty,
tort, infringement, or violation of law or could reasonably be expected to have
a Material Adverse Effect.

          (i) Taxes.

              i. The Company has filed or caused to be filed on a timely basis
all tax returns that are or were required to be filed by it pursuant to
applicable Legal Requirements. The Company has paid, or made provision for the
payment of, all taxes that have or may have become due pursuant to those tax
returns or otherwise, or pursuant to any assessment received by the Company,
except such taxes, if any, as are listed in the Company Disclosure Schedule and
are being contested in good faith as to which adequate reserves have been
provided in the Company Balance Sheets.

              ii. All tax returns filed by the Company are true, correct and
complete in all material respects.

          (j) Employee Benefits. Except as disclosed in the Reports, the Company
does not sponsor or otherwise maintain a "pension plan" within the meaning of
Section 3(2) of ERISA or any other retirement plan other than the Company Profit
Sharing and 401(k) Plan and Trust that is intended to qualify under Section 401
of the Code, nor do any unfunded liabilities exist with respect to any employee
benefit plan, past or present. No employee benefit plan, any trust created
thereunder or any trustee or administrator thereof has engaged in a "prohibited
transaction," as defined in Section 4975 of the Code, which may have a Material
Adverse Effect.

          (k) Governmental Authorizations. The Company, Acquisition and the
Subsidiaries have all permits that are legally required to enable them to
conduct their business in all material respects as now conducted.

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<PAGE>

          (l) Legal Proceedings; Orders.

              i. Except as set forth in the Reports, there is no material
pending Proceeding:

                 a. that has been commenced by or against the Company,
Acquisition or the Subsidiaries, or any of the assets owned or used by, the
Company, Acquisition or the Subsidiaries; or

                 b. that challenges, or that may have the effect of preventing,
delaying, making illegal, or otherwise interfering with, any Contemplated
Transaction.

              ii. Except as set forth in the Reports:

                  a. there is no material Order to which the Company or the
Subsidiaries, or any of the assets owned or used by the Company, Acquisition or
the Subsidiaries, is subject; and

                  b. no officer, director, agent, or employee of the Company or
Acquisition is subject to any material Order that prohibits such offer,
director, agent or employee from engaging in or continuing any conduct, activity
or practice relating to the business of the Company or Acquisition, as the case
may be.

          (m) Absence of Certain Changes and Events. Except as set forth in the
Reports, since the date of the most recent Company Balance Sheets, the Company
and the Subsidiaries and Acquisition, since the date of its inception, have
conducted their business only in the Ordinary Course of Business, and other than
as contemplated by this Agreement or the Contemplated Transactions there has not
been any:

              i. change in the authorized or issued Company Capital Stock or the
authorized or issued capital stock of Acquisition and the Subsidiaries; grant of
any stock option or right to purchase shares of capital stock of the Company;
issuance of any equity lines of credit, security convertible into such capital
stock; grant of any registration rights; purchase, redemption, retirement, or
other acquisition or payment of any dividend or other distribution or payment in
respect of shares of capital stock;

              ii. amendment to the Organizational Documents of the Company,
Acquisition or the Subsidiaries;

              iii. damage to or destruction or loss of any material asset or
property of the Company, Acquisition or the Subsidiaries, whether or not covered
by insurance, causing a Material Adverse Effect;

              iv. receipt of notice that any of their substantial customers have
terminated or intends to terminate their relationship, which termination would
have a Material Adverse Effect;

                                      C-11

              v. entry into any transaction other than in the Ordinary Course of
Business;

              vi. entry into, termination of, or receipt of written notice of
termination of any material (i) license, distributorship, dealer, sales
representative, joint venture, credit, or similar agreement, or (ii) contract or
transaction;

              vii. sale (other than sales of inventory in the Ordinary Course of
Business), lease, or other disposition of any asset or property of the Company,
Acquisition or the Subsidiaries or mortgage, pledge, or imposition of any lien
or other encumbrance on any material asset or property of the Company,
Acquisition or the Subsidiaries;

              viii. cancellation or waiver of any claims or rights with a value
to the Company in excess of $10,000;

              ix. material change in the accounting methods used by the Company,
Acquisition or the Subsidiaries; or

              x. agreement, whether oral or written, by the Company, Acquisition
or the Subsidiaries to do any of the foregoing.

          (n) No Default or Violation. The Company, Acquisition and the
Subsidiaries (i) are in material compliance with all applicable material terms
and requirements of each material contract under which they have or had any
obligation or liability or by which they or any of the assets owned or used by
them is or was bound and (ii) is not in material violation of any Legal
Requirement.

          (o) Certain Payments. Since the most recent date of the Company
Balance Sheets, neither the Company, Acquisition or the Subsidiaries, nor any
director, officer, agent or employee of the Company or the Subsidiaries has
directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff,
influence payment, kickback or other payment to any Person, private or public,
regardless of form, whether in money, property or services (i) to obtain
favorable treatment in securing business, (ii) to pay for favorable treatment
for business secured, (iii) to obtain special concessions or for special
concessions already obtained, for or in respect of the Company, Acquisition or
the Subsidiaries or (iv) in violation of any Legal Requirement, or (b)
established or maintained any fund or asset that has not been recorded in the
books and records of the Company, Acquisition or the Subsidiaries.

          (p) Brokers or Finders. The Company and Acquisition have not incurred
any obligation or liability, contingent or otherwise, for brokerage or finders'
fees or agents' commissions or other similar payment in connection with this
Agreement.

     4.2 Representations and Warranties of BOCI. BOCI hereby makes the following
representations and warranties to the Company, all of which shall survive the
Post-Closing, subject to the limitations set forth in Section 8.2 hereof:

          (a) Organization, Good Standing and Purpose. BOCI is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Kansas with full power and authority to conduct its businesses as it is

                                      C-12

<PAGE>

now being conducted, to own or use the properties and assets that it owns or
uses, and to perform all of its obligations under this Agreement. BOCI has no
subsidiaries. BOCI is duly qualified to do business and is in good standing as a
foreign corporation in each jurisdiction in which either the ownership or use of
the properties owned or used by it, or the nature of the activities conducted by
it, requires such qualification, except for such failures to be so qualified or
in good standing would not have a Material Adverse Effect. BOCI was formed to
assist small communications companies with their growth strategies.

          (b) Authority; No Conflict.

              i. This Agreement and any agreement executed in connection
herewith have been duly authorized by all required action of BOCI and constitute
the legal, valid and binding obligations of BOCI, enforceable against BOCI in
accordance with their respective terms. BOCI has the absolute and unrestricted
right, power and authority to execute and deliver this Agreement and any
agreements executed in connection herewith and to perform its obligations
hereunder and thereunder.

              ii Neither the execution and delivery of this Agreement by BOCI,
nor the consummation or performance by it of any of its obligations contained in
this Agreement or in connection with the Contemplated Transactions by the
Company will, directly or indirectly (with or without notice or lapse of time):

              a. contravene, conflict with or result in a violation of (x) any
provision of the Organizational Documents of BOCI or (y) any resolution adopted
by the board of directors or the stockholders of BOCI;

              b. contravene, conflict with or result in a violation of, or give
any governmental body or other Person the right to challenge any of the
Contemplated Transactions or to exercise any remedy or obtain any relief under,
any Legal Requirement or any Order to which BOCI or any of the assets owned or
used by BOCI may be subject;

              c. contravene, conflict with or result in a violation or breach of
any provision of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate or modify, this Agreement, the Purchase Agreement, the BOCI Debentures
or any Applicable Contract;

              d. result in the imposition or creation of any material
encumbrance upon or with respect to any of the material assets owned or used by
BOCI;

              e. cause BOCI to become subject to, or to become liable for the
payment of, any tax; or

              f. cause any of the assets owned by BOCI to be reassessed or
revalued by any taxing authority or other governmental body, except in
connection with the transfer of real estate pursuant to this Agreement or the
Contemplated Transactions.

                                      C-13

<PAGE>

              iii. BOCI is not required to obtain any consent from any Person in
connection with the execution and delivery of this Agreement or the consummation
or performance of any of the Contemplated Transactions, other than the requisite
approval of its stockholder, David C. Owen, (the "BOCI Stockholder"), which
approval has been obtained.

          (c) Capitalization. The entire authorized BOCI Capital Stock consists
of 50,000,000 shares BOCI Common Stock, of which 2,500,000 shares are issued and
outstanding and held by the BOCI Stockholder and 47,500,000 of which are held in
escrow pursuant to the BOCI Escrow Agreement (as defined below). Additionally
there are 5,000,000 shares of preferred stock authorized, none of which are
issued or outstanding. With the exception of the BOCI Common Stock Shares and
the BOCI Debentures, there are no other outstanding equity or debt securities of
the Company. No legend or other reference to any purported encumbrance appears
upon any certificate representing the BOCI Common Stock Shares, other than
applicable Securities Act legends. The BOCI Common Stock Shares have been duly
authorized and validly issued and are fully paid and non-assessable. Except for
the BOCI Debentures and the agreements relating thereto set forth in the
Purchase Agreement, there are no outstanding options, voting agreements or
arrangements, warrants, script, rights to subscribe to, registration rights,
calls or commitments of any character whatsoever relating to, or, securities,
rights or obligations convertible into or exchangeable for, or giving any Person
any right to subscribe for or acquire, any shares of BOCI Capital Stock or other
securities, or contracts, commitments, understandings, or arrangements by which
BOCI is or may become bound to issue additional shares of BOCI Capital Stock or
other securities, or securities or rights convertible or exchangeable into
shares of BOCI Capital Stock or other securities. Except as set forth in this
Section 4.2(c), BOCI has no outstanding equity, debt, debt or equity equivalent
security, or debt or equity lines of credit. None of the outstanding BOCI Common
Stock Shares were issued in violation of the Securities Act or any other legal
requirement. BOCI does not own, and has no contract to acquire, any equity
securities or other securities of any Person or any direct or indirect equity or
ownership interest in any other business. The BOCI Escrow Shares have been duly
authorized, validly issued, fully paid and are nonassessable pursuant to the
escrow agreement between BOCI, HEM, and the Escrow Agent (the "BOCI Escrow
Agreement"). The BOCI Underlying Shares have been duly authorized, and when and
if issued pursuant to the terms of the Purchase Agreement, will be fully paid
and nonassessable.

          (d) Financial Statements. BOCI has delivered to the Company a balance
sheet of BOCI as at December 31, 2003 (the "BOCI Balance Sheet"), and a
statement of operations for the period from inception to December 31, 2003. Such
financial statements were prepared in accordance with GAAP, are set forth in
Schedule 4.2(d) hereto and fairly present the financial condition and the
results of operations of BOCI as at December 31, 2003 of and for the period then
ended.

          (e) Absence of Material Adverse Change. Since the date of the most
recent BOCI Balance Sheet provided under Section 4.2(d) hereof, there have been
no events, changes or occurrences which have had or are reasonably likely to
have, individually or in the aggregate, a material adverse effect on BOCI.

          (f) Books and Records. The books of account, minute books, stock
record books, and other records of BOCI, all of which have been made available
to the Company and original copies of which will be delivered to the Company at

                                      C-14

<PAGE>

the Post-Closing, are complete and correct and have been maintained in
accordance with sound business practices, including the maintenance of an
adequate system of internal controls. The minute books of BOCI contain accurate
and complete records of all meetings held of, and corporate action taken by, the
stockholders, the Board of Directors, and any committees of the Board of
Directors of BOCI.

          (g) No Undisclosed Liabilities. There are no material liabilities of
BOCI, whether absolute, accrued, contingent, or otherwise, other than the BOCI
Debentures and as set forth in Schedule 4.2(g).

          (h) Title to Properties; Encumbrances. BOCI has good and marketable
title to all the properties, interest in such properties and assets, real and
personal, reflected in the BOCI Balance Sheet or acquired after the date of such
balance sheet, free and clear of all mortgages, liens, pledges, charges or
encumbrances except (i) mortgages and other encumbrances referred to in the
notes to the BOCI Balance Sheet. BOCI neither owns nor leases any real property.

          (i) Legal Proceedings; Orders.

              i. Except as set forth in Schedule 4.2(i) hereto, there is no
pending Proceeding:

                 a. that has been commenced or threatened by or against BOCI or
any of its officers, directors, agents or employees as such or that otherwise
relates to or may affect the business of, or any of the assets owned or used by,
BOCI; or

                 b. that challenges, or that may have the effect of preventing,
delaying, making illegal, or otherwise interfering with, any Contemplated
Transaction.

              ii. Except as set forth in Schedule 4.2(i) hereto:

                 a. there is no Order to which BOCI, or any of the assets owned
or used by BOCI, is subject; and

                 b. no officer, director, agent, or employee of BOCI is subject
to any Order that prohibits such offer, director, agent or employee from
engaging in or continuing any conduct, activity or practice relating to the
business of BOCI.

          (j) Brokers or Finders. BOCI has incurred no liability, contingent or
otherwise, for brokerage or finders' fees or agents' commissions or other
similar payment in connection with this Agreement.

          (k) No Default or Violation. Schedule 4.2(k) hereto lists each
contract, agreement and commitment to which BOCI is a party or otherwise bound
(each, an "BOCI Contract") or has any obligation or liability pursuant thereto.
BOCI (i) is in compliance with all terms and requirements of each BOCI Contract
and (ii) is not in violation of any Legal Requirement.

                                      C-15

<PAGE>

          (l) Taxes.

              i. BOCI has filed or caused to be filed on a timely basis all tax
returns that are or were required to be filed by it pursuant to applicable Legal
Requirements. BOCI has paid, or made provision for the payment of, all taxes
that have or may have become due pursuant to those tax returns or otherwise, or
pursuant to any assessment received by BOCI, except such taxes, if any, as are
listed in Schedule 4.2(l) hereto and are being contested in good faith as to
which adequate reserves have been provided in the BOCI Balance Sheets.

              ii. All tax returns filed by BOCI are true, correct and complete
in all material respects and no taxes are currently owed or tax returns due by
or on behalf of BOCI.

          (m) Absence of Certain Changes and Events. Except as set forth in
Schedule 4.2(m) hereto, since the date of the BOCI Balance Sheet, BOCI has
conducted its business only in the Ordinary Course of Business, there has not
been any material adverse effect on BOCI's business or operations, and there has
not been any:

              i. change in the authorized or issued capital stock of BOCI; grant
of any stock option or right to purchase shares of capital stock of BOCI;
issuance of any security convertible into such capital stock; grant of any
registration rights; purchase, redemption, retirement, or other acquisition or
payment of any dividend or other distribution or payment in respect of shares of
capital stock;

              ii. amendment to the Organizational Documents of BOCI;

              iii. damage to or destruction or loss of any asset or property of
BOCI, whether or not covered by insurance or any other event or circumstance,
materially and adversely affecting the properties, assets, business, financial
condition, or prospects of BOCI;

              iv. receipt of notice that any of its substantial customers have
terminated or intends to terminate their relationship, which termination would
have a material adverse effect on its financial condition, results or
operations, business assets or properties of BOCI;

              v. entry into any transaction other than in the Ordinary Course of
Business;

              vi. entry into, termination of, or receipt of written notice of
termination of any (i) license, distributorship, dealer, sales representative,
joint venture, credit, or similar agreement, or (ii) contract or transaction;

              vii. sale, lease, or other disposition of any asset or property of
BOCI or mortgage, pledge, or imposition of any lien or other encumbrance on any
asset or property of BOCI;

              viii. cancellation or waiver of any claims or rights with a value
to BOCI in excess of $10,000;

                                      C-16

<PAGE>

              ix. material change in the accounting methods used by BOCI;

              x. accrual or payment of any salaries or other compensation,
increase in salaries, compensation or bonuses or retention or hiring of, any
consultant or employee;

              xi. debt or other liability incurred, other than the BOCI
Debentures; or

              xii. agreement, whether oral or written, by BOCI to do any of the
foregoing, other than the Purchase Agreement.

          (n) Compliance with Law. Except as set forth in Schedule 4.2(n)
hereto:

              i. BOCI has complied in all material respects with, and is not in
violation of, in any material respect, any Law to which it or its business is
subject; and

              ii. BOCI has obtained all licenses, permits, certificates or other
governmental authorizations (collectively "Authorizations") necessary for the
ownership or use of its assets and properties or the conduct of its business;
and

              (iii) BOCI has not received written notice of violation of, or
knows of any material violation of, any Laws to which it or its business is
subject or any Authorization necessary for the ownership or use of its assets
and properties or the conduct of its business.

          (o) Environmental Laws. BOCI has not received any notice or claim (and
is not aware of any facts that would form a reasonable basis for any claim), or
entered into any negotiations or agreements with any other Person, and, to the
best knowledge of BOCI, BOCI is not the subject of any investigation by any
governmental or regulatory authority, domestic or foreign, relating to any
material or potentially material liability or remedial action under any
Environmental Laws. There are no pending or, to the knowledge of BOCI,
threatened, actions, suits or proceedings against BOCI or any of its properties,
assets or operations asserting any such material liability or seeking any
material remedial action in connection with any Environmental Laws.

          (p) Intellectual Property. (i) BOCI owns, or is validly licensed or
otherwise has the right to use, all patents, and patent rights ("Patents") and
all trademarks, trade secrets, trademark rights, trade names, trade name rights,
service marks, service mark rights, copyrights and other proprietary
intellectual property rights and computer programs (the "Intellectual Property
Rights"), in each case, which are material to the conduct of the business of
BOCI.

              (ii) To the best knowledge of BOCI, BOCI has not interfered with,
infringed upon (without license to infringe), misappropriated or otherwise come
into conflict with any Patent of any other Person. BOCI has not interfered with,
infringed upon, misappropriated or otherwise come into conflict with any
Intellectual Property Rights of any other Person. BOCI has not received any
written charge, complaint, claim, demand or notice alleging any such
interference, infringement, is appropriation or violation (including any claim

                                      C-17

<PAGE>

that BOCI must license or refrain from using any Patents or Intellectual
Property Rights of any other Person) which has not been settled or otherwise
fully resolved. To the best knowledge of BOCI, no other Person has interfered
with, infringed upon (without license to infringe), misappropriated or otherwise
come into conflict with any Patents or Intellectual Property Rights of BOCI.

          (q) Employees. (a) BOCI has no employees other than David C. Owen, who
is the President and Chief Executive Officer of BOCI; (b) David C. Owen has been
fully paid for all services rendered by her to BOCI in her capacity as President
of BOCI and is owed no further salary or compensation in connection therewith;
(c) BOCI has complied in all respects with all applicable Laws respecting
employment and employment practices, terms and conditions of employment, wages
and hours, and BOCI is not liable for any arrears of wages or any taxes or
penalties for failure to comply with any such Laws; (d) BOCI believes that
BOCI's relations with its employees is satisfactory; (e) there are no
controversies pending or, to the best knowledge of BOCI, threatened between BOCI
and any of its employees or former employees; (f) BOCI is not a party to any
collective bargaining agreement or other labor union contract applicable to
persons employed by BOCI, nor, to the best knowledge of BOCI, are there any
activities or proceedings of any labor union to organize any such employees; (g)
there are no unfair labor practice complaints pending against BOCI before the
National Labor Relations Board or any current union representation questions
involving employees of BOCI; (h) there is no strike, slowdown, work stoppage or
lockout existing, or, to the best knowledge of BOCI, threatened, by or with
respect to any employees of BOCI; (i) no charges are pending before the Equal
Employment Opportunity Commission or any state, local or foreign agency
responsible for the prevention of unlawful employment practices with respect to
BOCI; (j) there are no claims pending against BOCI before any workers'
compensation board; (k) BOCI has not received notice that any Federal, state,
local or foreign agency responsible for the enforcement of labor or employment
laws intends to conduct an investigation of or relating to BOCI and, to the best
knowledge of BOCI, no such investigation is in progress; and (l) BOCI has no
consultants or independent contractors.

          (r) Employee Benefit Plans. There no "employee pension benefit plans"
(as defined in Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA")) or "employee welfare benefit plans" (as defined in
Section 3(1) of ERISA) maintained, or contributed to, by BOCI for the benefit of
any current or any former employees, officers or directors of BOCI.

          (s) Rule 504 Securities. The BOCI Debentures (which include the Escrow
Shares for the BOCI Underlying Shares) were sold in accordance with Rule 504 of
Regulation D of the Securities Act of 1933, as amended (the "Securities Act"),
and Section 80A.15.2(a)(1) of the Minnesota Statutes, 1986 (the "Minnesota
Act"), to an accredited investor residing in the State of Minnesota.
Accordingly, at the Effective Time and pursuant to Rule 504, the Minnesota Act,
and Section 3(a)(9) of the Securities Act, the BOCI Debentures (which include
the Company Escrow Shares for the Company Underlying Shares) shall continue to
be without restriction and shall be freely tradable in accordance with Rule 504.

                                      C-18

<PAGE>

                                    ARTICLE V

                                    COVENANTS

     5.1 Covenants of the Company and Acquisition.

     (a) Conduct of Business. Between the date hereof and up to and including
the Post-Closing Date, each of the Company and Acquisition shall:

         i. conduct its business only in the Ordinary Course of Business;

         ii. use its commercially reasonable efforts to preserve intact the
current business organization of the Company and Acquisition, as the case may
be, keep available the services of the current officers, employees and agents of
the Company and Acquisition, as the case may be, and maintain the relations and
good will with suppliers, customers, landlords, creditors, employees, agents and
others having business relationships with the Company and Acquisition, as the
case may be;

         iii. not pay, incur or declare any dividends or distributions with
respect to its stockholders or amend its Certificate of Incorporation or
By-Laws, without the prior written consent of the BOCI Debenture Holder;

         iv. not authorize, issue, sell, purchase or redeem any shares of its
capital stock or any options or other rights to acquire ownerships interests
without the prior written consent of the BOCI Debenture Holder except as may be
required by pre-existing commitments disclosed herein or in the Reports;

         v. not incur any indebtedness for money borrowed or issue any debt
securities, or incur or suffer to be incurred any liability or obligation of any
nature whatsoever, except those incurred in the Ordinary Course of Business, or
cause or permit any material lien, encumbrance or security interest to be
created or arise on or in respect of any material portion of its properties or
assets;

         vi. not make any investment of a capital nature either by purchased
stock or securities, contribution to capital, property transfer or otherwise, or
by the purchase of any property or assets of any other Person;

         vii. not do any other act which would cause any representation or
warranty of the Company in this Agreement to be or become untrue in any material
respect or that is not in the Ordinary Course of Business;

         viii. report periodically to the BOCI Debenture Holder concerning the
status of the business and operations of the Company upon the reasonable request
of the BOCI Debenture Holder; and

         ix. confer with the BOCI Debenture Holder concerning operational
matters of a material nature upon the reasonable request of the BOCI Debenture
Holder.

                                      C-19

<PAGE>

     (b) Proposals; Other Offers. Commencing on the date of execution of this
Agreement up to and including the Post-Closing Date, each of the Company and
Acquisition shall not, directly or indirectly (whether through an employee, a
representative, an agent or otherwise), solicit or encourage any inquiries or
proposals, engage in negotiations for or consent to or enter into any agreement
providing for the acquisition of its business. Each of the Company and
Acquisition shall not, directly or indirectly (whether through an employee, a
representative, an agent or otherwise) disclose any nonpublic information
relating to the Company and Acquisition or afford access to any of the books,
records or other properties of the Company and Acquisition to any person or
entity that is considering, has considered or is making any such acquisition
inquiry or proposal relating to the Company's and Acquisition's business.

     (c) Further Assurances. Prior to the Post-Closing Date, with the
cooperation of BOCI where appropriate, each of the Company and Acquisition shall
use commercially reasonable efforts to:

         i. promptly comply with all filing requirements which federal, state or
local law may impose on the Company or Acquisition, as the case may be, with
respect to the Contemplated Transactions by this Agreement; and

         ii. take all actions necessary to be taken, make any filing and obtain
any consent, authorization or approval of or exemption by any governmental
authority, regulatory agency or any other third party (including without
limitation, any landlord or lessor of the Company and any party to whom
notification is required to be delivered or from whom any form of consent is
required) which is required to be filed or obtained by the Company or
Acquisition in connection with the Contemplated Transactions by this Agreement.

     (d) Access to Additional Agreements and Information. Prior to the
Post-Closing Date, the Company and Acquisition shall make available to the BOCI
Debenture Holder (as well as its counsel, accountants and other representatives)
any and all agreements, contracts, documents, other instruments and personnel
material to the Company's business, including without limitation, those
contracts to which the Company or Acquisition is a party and those by which each
of its business or any of the Company's or Acquisition's assets are bound.

     5.2 Covenants of BOCI.

     (a) Conduct of Business. Between the date hereof and up to and including
the Post-Closing Date, BOCI shall:

         i. conduct its business only in the Ordinary Course of Business;

         ii. use its commercially reasonable efforts to preserve intact the
current business organization of BOCI, keep available the services of the
current officers, employees and agents of BOCI, and maintain the relations and
good will with suppliers, customers, landlords, creditors, employees, agents and
others having business relationships with BOCI;

                                      C-20

<PAGE>

         iii. not pay, incur or declare any dividends or distributions with
respect to its stockholders or amend its Certificate of Incorporation or
By-Laws, without the prior written consent of the Company and BOCI Debenture
Holder;

         iv. not authorize, issue, sell, purchase or redeem any shares of its
capital stock or any options or other rights to acquire ownerships interests
without the prior written consent of the Company and BOCI Debenture Holder;

         v. not incur any indebtedness for money borrowed or issue and debt
securities, or incur or suffer to be incurred any liability or obligation of any
nature whatsoever, or cause or permit any material lien, encumbrance or security
interest to be created or arise on or in respect of any material portion of its
properties or assets;

         vi. not make any investment of a capital nature either by purchased
stock or securities, contribution to capital, property transfer or otherwise, or
by the purchase of any property or assets of any other Person;

         vii. not do any other act which would cause representation or warranty
of BOCI in this Agreement to be or become untrue in any material respect or that
is not in the Ordinary Course of Business consistent with past practice;

         viii. report periodically to the Company and the BOCI Debenture Holder
concerning the status of the business and operations of BOCI; and

         ix. confer with the Company and the BOCI Debenture Holder concerning
operational matters of a material nature.

     (b) Proposals; Other Offers. Commencing on the date of execution of this
Agreement through the Post-Closing Date, BOCI shall not, directly or indirectly
(whether through an employee, a representative, an agent or otherwise), solicit
or encourage any inquiries or proposals, engage in negotiations for or consent
to or enter into any agreement providing for the acquisition of its business.
BOCI shall not, directly or indirectly (whether through an employee, a
representative, an agent or otherwise) disclose any nonpublic information
relating to BOCI or afford access to any of the books, records or other
properties of BOCI to any person or entity that is considering, has considered
or is making any such acquisition inquiry or proposal relating to the BOCI's
business.

     (c) Further Assurances. Prior to the Post-Closing Date, with the
cooperation of the Company where appropriate, BOCI shall:

         i. promptly comply with all filing requirements which federal, state or
local law may impose on BOCI with respect to the Contemplated Transactions by
this Agreement and cooperate with the Company regarding the same; and

         ii. take all actions necessary to be taken, make any filing and obtain
any consent, authorization or approval of or exemption by any governmental
authority, regulatory agency or any other third party (including without
limitation, any landlord or lessor of BOCI and any party to whom notification is

                                      C-21

<PAGE>

required to be delivered or from whom any form of consent is required) which is
required to be filed or obtained by BOCI in connection with the Contemplated
Transactions by this Agreement.

     (d) Actions by BOCI. BOCI shall take no action or enter into any agreements
or arrangements except as may be required by this Agreement.

     (e) No Change in Capital Stock. Prior to the Effective Time, no change will
be made in the authorized, issued or outstanding capital stock of BOCI, and no
subscriptions, options, rights, warrants, calls, commitments or agreements
relating to the authorized, issued or outstanding capital stock of BOCI will be
entered into, issued, granted or created.

     (f) Access to Additional Agreements and Information. Prior to the
Post-Closing Date, BOCI shall make available to the Company and BOCI Debenture
Holder (as well as its counsel, accountants and other representatives) any and
all agreements, contracts, documents, other instruments and personnel material
of BOCI's business, including without limitation, those contracts to which BOCI
is a party and those by which its business or any of BOCI's assets are bound.

     (g) Further Assurances. Prior to the Post-Closing Date, with the
cooperation of the Company where appropriate, BOCI shall use commercially
reasonable efforts to:

         i. promptly comply with all filing requirements which federal, state or
local law may impose on BOCI with respect to the Contemplated Transactions by
this Agreement; and

         ii. take all actions necessary to be taken, make any filing and obtain
any consent, authorization or approval of or exemption by any governmental
authority, regulatory agency or any other third party (including without
limitation, any landlord or lessor of BOCI and any party to whom notification is
required to be delivered or from whom any form of consent is required) which is
required to be filed or obtained by BOCI in connection with the Contemplated
Transactions by this Agreement.

     5.3 Governmental Filings and Consents. The Company, Acquisition and BOCI
shall cooperate with one another in filing any necessary applications, reports
or other documents with any federal or state agencies, authorities or bodies
having jurisdiction with respect to the business of the Company, Acquisition or
BOCI and in seeking any necessary approval, consultation or prompt favorable
action of, with or by any of such agencies, authorities or bodies.

     5.4 Publicity. Any public announcement or press release relating to this
Agreement or the Contemplated Transactions must be approved by the BOCI
Debenture Holder and the Company in writing before being made or released. The
Company shall have the right to issue a press release or make other disclosure
without the BOCI Debenture Holder's written approval if in the opinion of the
Company's counsel such a release is necessary to comply with SEC Rules and
Regulations or other Law; provided that, the BOCI Debenture Holder receives a
copy of such prepared press release or other disclosures for purposes of review
at least 24 hours before it is issued. This 24 hour period may be shortened if
in the opinion of the Company's counsel it is required by Law; provided that,
the BOCI Debenture Holder and the Company receives a copy of such release as
long as reasonably practical before it is issued.

                                      C-22

<PAGE>

     5.5 Tax Returns. The current officers of the Company shall have the right
to prepare any tax returns of the Company with respect to any period that ends
on or before the Post-Closing Date. Such tax returns shall be timely filed by
the Company. BOCI shall cooperate with said officers in the preparation of such
tax returns.

                                   ARTICLE VI

                                   CONDITIONS

     6.1 Conditions to Obligations of BOCI. The obligation of BOCI to consummate
the Contemplated Transactions is subject to the fulfillment of each of the
following conditions, any of which may be waived by BOCI in its sole discretion:

     (a) Copies of Resolutions. At the Post-Closing (i) the Company shall have
furnished BOCI with a certificate of its CEO or President, as the case may be,
in the form of Exhibit 6.1(a) annexed hereto, certifying that attached thereto
are copies of resolutions duly adopted by the board of directors of the Company
authorizing the execution, delivery and performance of this Agreement and all
other necessary or proper corporate action to enable the Company to comply with
the terms of this Agreement and (ii) Acquisition shall have furnished BOCI with
a certificate of its CEO or President, as the case may be, in the form of
Exhibit 6.1(e) annexed hereto, certifying that attached thereto are copies of
resolutions duly adopted by the board of directors of Acquisition authorizing
the execution, delivery and performance of this Agreement and all other
necessary or proper corporate action to enable Acquisition to comply with the
terms of this Agreement.

     (b) Opinion of Company's Counsel. The Company shall have furnished to BOCI,
at the Post-Closing, an opinion of its legal counsel, dated as of the
Post-Closing Date, substantially in the form of Exhibit 6.1(b) annexed hereto.

     (c) Opinion of Company's Special Securities Counsel. The Company shall have
furnished to BOCI, at the Post-Closing, with an opinion of the special
securities counsel to the Company, dated as of the Post-Closing Date,
substantially in the form of Exhibit 6.1(c) annexed hereto.

     (d) Instruction Letter to Transfer Agent. The Company shall have furnished
BOCI, at the Post-Closing, with a letter to its transfer agent, to accept the
legal opinion set forth in Section 6.1(c), dated as of the Post-Closing Date,
substantially in the form of Exhibit 6.1(d) annexed hereto.

     (e) Accuracy of Representations and Warranties; Performance of Covenants.
Each of the representations and warranties of the Company and Acquisition set
forth in this Agreement was true, correct and complete in all material respects
when made (except for representations and warranties that speak as of a specific
date, which representations and warranties shall be true, correct and complete
in all material respects as of such date) and shall also be true, correct and
complete in all material respects at and as of the Post-Closing Date (except for

                                      C-23

<PAGE>

representations and warranties that speak as of a specific date, which
representations and warranties shall be true, correct and complete in all
material respects as of such date), with the same force and effect as if made at
and as of the Post-Closing Date. The Company shall have performed and complied
in all material respects with all agreements and covenants required by this
Agreement to be performed by the Company and Acquisition at or prior to the
Post-Closing Date.

     (f) Delivery of Certificate. (A) The Company shall have delivered to BOCI a
certificate, in the form of Exhibit 6.1(f) annexed hereto, dated the
Post-Closing Date, and signed by the CEO or President of the Company affirming
that the representations and warranties as set forth in Section 4.1 were and are
true, correct and complete as required by Section 6.1(e) and (B) Acquisition
shall have delivered to BOCI a certificate, in the form of Exhibit 6.1(h)
annexed hereto, dated the Post-Closing Date, and signed by the CEO or President
of Acquisition affirming that the representations and warranties as set forth in
Section 4.1 were and are true, correct and complete as required by Section
6.1(e).

     (g) Consents and Waivers. At the Post-Closing, any and all necessary
consents, authorizations, orders or approvals shall have been obtained, except
as the same shall have been waived by the BOCI Debenture Holder.

     (h) Litigation. On the Post-Closing Date, there shall be no effective
injunction, writ or preliminary restraining order or any order of any kind
whatsoever with respect to the Company issued by a court or governmental agency
(or other governmental or regulatory authority) of competent jurisdiction
restraining or prohibiting the consummation of the Contemplated Transactions or
making consummation thereof unduly burdensome to BOCI. On the Post-Closing Date
and immediately prior to consummation of the Contemplated Transactions, no
proceeding or lawsuit shall have been commenced, be pending or have been
threatened by any governmental or regulatory agency or authority or any other
Person restraining or prohibiting the consummation of the Contemplated
Transactions.

     (i)            Delivery of Documents and Other Information. Prior to the
                    Post-Closing Date, the Company and Acquisition shall have
                    made available or delivered to BOCI all of the agreements,
                    contracts, documents and other instruments requested by
                    BOCI.

     6.2 Conditions to Obligations of the Company and Acquisition. The
obligations of the Company and Acquisition to consummate the Contemplated
Transactions are subject to the fulfillment of each of the following conditions,
any of which may be waived by the Company and Acquisition, in their sole
discretion:

     (a) Copies of Resolutions. At the Post-Closing, BOCI shall have furnished
the Company with a certificate of its President, in the form of Exhibit 6.2(a)
annexed hereto, certifying that attached thereto are copies of resolutions duly
adopted by the board of directors of BOCI authorizing the execution, delivery
and performance of the terms of this Agreement and all other necessary or proper
corporate action to enable BOCI to comply with the terms of this Agreement.

                                      C-24

<PAGE>

     (b) Opinion of BOCI's Counsel. BOCI shall have furnished to the Company, at
the Post-Closing, with an opinion of counsel to BOCI, dated as of the
Post-Closing Date, substantially in the form of Exhibit 6.2(b) annexed hereto.

     (c) Opinion of BOCI's Special Securities Counsel. BOCI shall have furnished
to the Company, at the Closing, with an opinion of the special securities
counsel to BOCI dated as of the Post-Closing Date, substantially in the form of
Exhibit 6.2(c) annexed hereto.

     (d) Accuracy of Representations and Warranties; Performance of Covenants.
Each of the representations and warranties of BOCI was true, correct and
complete in all material respects when made (except for representations and
warranties that speak as of a specific date, which representations and
warranties shall be true, correct and complete in all material respects as of
such date) and shall also be true, correct and complete in all material respects
at and as of the Post-Closing Date (except for representations and warranties
that speak as of a specific date, which representations and warranties shall be
true, correct and complete in all material respects as of such date), with the
same force and effect as if made at and as of the Post-Closing Date. BOCI shall
have performed and complied in all material respects with all agreements and
covenants required by this Agreement to be performed by BOCI at or prior to the
Post-Closing Date.

     (e) Delivery of Certificate. BOCI shall have delivered to the Company a
certificate, in the form of Exhibit 6.2(e) annexed hereto, dated the
Post-Closing Date and signed by the CEO or President of BOCI, affirming that the
representations and warranties of BOCI as set forth in Section 4.2 were and are
true, correct and complete and BOCI's agreements and covenants have been
performed as required by Section 6.2(d).

     (f) Compliance with Rule 504. In connection with the issuance of the
Securities by BOCI under the Purchase Agreement, on or prior to the Post-Closing
Date BOCI shall be in full compliance with Rule 504 of Regulation D of the
Securities Act of 1933, as amended, and BOCI shall have delivered to the Company
at the Post-Closing a filed copy of the Form D required to be filed with the SEC
in connection therewith.

     (g) Consents and Waivers. On or prior to the Post-Closing Date, any and all
necessary consents, authorizations, orders or approvals shall have been
obtained, except as the same shall have been waived by the Company.

     (h) Litigation. On the Post-Closing Date, there shall be no effective
injunction, writ or preliminary restraining order or any order of any kind
whatsoever with respect to BOCI issued by a court or governmental agency (or
other governmental or regulatory authority) of competent jurisdiction
restraining or prohibiting the consummation of the Contemplated Transactions or
making the consummation thereof unduly burdensome to the Company or BOCI. On the
Post-Closing Date, no proceeding or lawsuit shall have been commenced,
threatened or be pending or by any governmental or regulatory agency or
authority or any other person with respect to the Contemplated Transactions.

                                      C-25

<PAGE>

     (i) Delivery of Documents and Other Information. Prior to the Post-Closing
Date, BOCI shall have made available or delivered to the Company all of the
agreements, contracts, documents and other instruments required to be delivered
pursuant to the provisions of this Agreement.

                                   ARTICLE VII

                                   TERMINATION

     7.1 Termination by Mutual Agreement. This Agreement may be terminated at
any time by mutual consent of the parties hereto, provided that such consent to
terminate is in writing and is signed by each of the parties hereto.

     7.2 Termination for Failure to Close. This Agreement shall be automatically
terminated if the Closing shall not have occurred within ten (10) days of the
date hereof (except if such 10th day is not a Business Day, then the next
Business Day).

     7.3 Termination by Operation of Law. This Agreement may be terminated by
any party hereto if there shall be any statute, rule or regulation that renders
consummation of the Contemplated Transactions illegal or otherwise prohibited,
or a court of competent jurisdiction or any government (or governmental
authority) shall have issued an order, decree or ruling, or has taken any other
action restraining, enjoining or otherwise prohibiting the consummation of such
transactions and such order, decree, ruling or other action shall have become
final and nonappealable.

     7.4 Termination for Failure to Perform Covenants or Conditions. This
Agreement may be terminated prior to the Post-Closing Date:

     (a) by BOCI if: (i) any of the representations and warranties made in this
Agreement by the Company or Acquisition shall not be materially true and
correct, when made or at any time prior to consummation of the Contemplated
Transactions as if made at and as of such time; (ii) any of the conditions set
forth in Section 6.1 hereof have not been fulfilled in all material respects by
the Post-Closing Date; (iii) the Company or Acquisition shall have failed to
observe or perform any of its material obligations under this Agreement; or (iv)
as otherwise set forth herein; or

     (b) by the Company or Acquisition if: (i) any of the representations and
warranties of BOCI or the BOCI Stockholder shall not be materially true and
correct when made or at any time prior to consummation of the Contemplated
Transactions as if made at and as of such time; (ii) any of the conditions set
forth in Section 6.2 hereof have not been fulfilled in all material respects by
the Post-Closing Date; (iii) BOCI or the BOCI Stockholder shall have failed to
observe or perform any of their material respective obligations under this
Agreement; or (iv) as otherwise set forth herein.

     7.5 Effect of Termination or Default; Remedies. In the event of termination
of this Agreement as set forth above, this Agreement shall forthwith become void
and there shall be no liability on the part of any party hereto, provided that

                                      C-26

<PAGE>

such party is a Non-Defaulting Party (as defined below). The foregoing shall not
relieve any party from liability for damages actually incurred as a result of
such party's breach of any term or provision of this Agreement.

     7.6 Remedies; Specific Performance. In the event that any party shall fail
or refuse to consummate the Contemplated Transactions or if any default under or
beach of any representation, warranty, covenant or condition of this Agreement
on the part of any party (the "Defaulting Party") shall have occurred that
results in the failure to consummate the Contemplated Transactions, then in
addition to the other remedies provided herein, the non-defaulting party (the
"Non-Defaulting Party") shall be entitled to seek and obtain money damages from
the Defaulting Party, or may seek to obtain an order of specific performance
thereof against the Defaulting Party from a court of competent jurisdiction,
provided that the Non-Defaulting Party seeking such protection must file its
request with such court within forty-five (45) days after it becomes aware of
the Defaulting Party's failure, refusal, default or breach. In addition, the
Non-Defaulting Party shall be entitled to obtain from the Defaulting Party court
costs and reasonable attorneys' fees incurred in connection with or in pursuit
of enforcing the rights and remedies provided hereunder.

                                  ARTICLE VIII

                            SURVIVAL; INDEMNIFICATION

     8.1 Survival of Representations and Warranties of the Company. All
representations and warranties of the Company shall survive the execution and
delivery of this Agreement and the Post-Closing hereunder and shall thereafter
survive until the earlier of (i) the fourth anniversary of the Post-Closing Date
and (ii) the date of the BOCI Debentures have been fully converted or otherwise
cease to be outstanding (the "Conversion Date") and shall then terminate except
to the extent that notice of the Company's or Acquisition liability in respect
of any inaccuracy in or breach of any representation or warranty shall have been
given on or prior to such second anniversary or Conversion Date.

     8.2 Survival of Representations and Warranties of BOCI. All representations
and warranties of BOCI shall terminate upon the Closing except to the extent
that notice of BOCI's liability in respect of any inaccuracy in or breach of any
representation or warranty shall have been given on or prior to Closing.

     8.3 Obligation of the Company to Indemnify. The Company agrees to
indemnify, defend and hold harmless BOCI (and its directors, officers,
employees, affiliates, stockholders, debenture holders, agents, attorneys,
successors and assigns) from and against all losses, liabilities, damages,
deficiencies, costs or expenses (including interest, penalties and reasonable
attorneys' and consultants' fees and disbursements) (collectively, "Losses")
based upon, arising out of or otherwise in respect of any (i) inaccuracy in any
representation or warranty of the Company contained in this Agreement or in the
Schedules and Exhibits hereto or (ii) breach by the Company of any covenant or
agreement contained in this Agreement.

     8.4 Obligation of and BOCI to Indemnify. BOCI agrees to indemnify, defend
and hold harmless the Company (and its directors, officers, employees,
affiliates, stockholders, agents, attorneys, successors and assigns) from and

                                      C-27

<PAGE>

against any Losses based upon, arising out of or otherwise in respect of any (i)
inaccuracy in any representation or warranty of BOCI contained in this Agreement
or (ii) breach by BOCI of any covenant or agreement contained in this Agreement.

     8.5 Notice and Opportunity to Defend. (a) Promptly after receipt by any
Person entitled to indemnity under this Agreement (an "Indemnitee") of notice of
any demand, claim or circumstances which, with the lapse of time, would or might
give rise to a claim or the commencement (or threatened commencement) of any
action, proceeding or investigation (an "Asserted Liability") that may result in
a Loss, the Indemnitee shall give notice thereof (the "Claims Notice") to any
other party (or parties) who is or may be obligated to provide indemnification
pursuant to Section 8.3 or 8.4 (the "Indemnifying Party"). The Claims Notice
shall describe the Asserted Liability in reasonable detail and shall indicate
the amount (estimated, if necessary and to the extent feasible) of the Loss that
has been or may be suffered by the Indemnitee.

     (b) The Indemnifying Party may elect to compromise or defend, at its own
expense and by its own counsel, any Asserted Liability. If the Indemnifying
Party elects to compromise or defend such Asserted Liability, it shall within 30
days after the date the Claims Notice is given (or sooner, if the nature of the
Asserted Liability so requires) notify the Indemnitee of its intent to do so,
and the Indemnitee shall cooperate, at the expense of the Indemnifying Party, in
the compromise of, or defense against, such Asserted Liability. If the
Indemnifying Party elects not to compromise or defend the Asserted Liability,
fails to notify the Indemnitee of its election as herein provided or contests
its obligation to indemnify under this Agreement, the Indemnitee may pay,
compromise or defend such Asserted Liability and all reasonable expenses
incurred by the Indemnitee in defending or compromising such Asserted Liability,
all amounts required to be paid in connection with any such Asserted Liability
pursuant to the determination of any court, governmental or regulatory body or
arbitrator, and amounts required to be paid in connection with any compromise or
settlement consented to by the Indemnitee, shall be borne by the Indemnifying
Party. Except as otherwise provided in the immediately preceding sentence, the
Indemnitee may not settle or compromise any claim over the objection of the
Indemnifying Party. In any event, the Indemnitee and the Indemnifying Party may
participate, at their own expense, in (but the Indemnitee may not control) the
defense of such Asserted Liability. If the Indemnifying Party chooses to defend
any claim, the Indemnitee shall make available to the Indemnifying Party any
books, records or other documents within its control that are necessary or
appropriate for such defense.

                                   ARTICLE IX

                                   DEFINITIONS

     The following terms, which are capitalized in this Agreement, shall have
the meanings set forth below for the purpose of this Agreement.

     "Applicable Contract" means any Contract (a) to which the Company is a
party and under which the Company has or may acquire any material rights, (b)
under which the Company or BOCI, as the case may be, is a party and has or may

                                      C-28

<PAGE>

become subject to any material obligation or material liability or (c) by which
the Company or BOCI, as the case may be, or any of the material assets owned or
used by it is or may become bound.

     "Contemplated Transactions" means all of the transactions contemplated by
this Agreement, including, without limitation:

     (1) the Merger; and

     (2) the performance by the parties of their respective covenants and
obligations under this Agreement.

     "Environmental Laws" means all applicable federal, state, local or foreign
laws, rules and regulations, orders, decrees, judgments, permits, filings and
licenses relating (i) to protection and clean-up of the environment and
activities or conditions related thereto, including those relating to the
generation, handling, disposal, transportation or release of hazardous
substances and (ii) the health or safety of employees in the workplace
environment, all as amended from time to time, and shall also include any common
law theory based on nuisance, trespass, negligence or other tortious conduct.

     "ERISA" means the Employee Retirement Income Security Act of 1974 or any
successor law, and regulations and rules issued pursuant to such law or any
successor law.

     "GAAP" means generally accepted accounting principles in the United States,
applied on a consistent basis.

     "Law" means all applicable laws, statutes, ordinances, rules, regulations,
orders, writs, injunctions, judgments or decrees entered, enacted, promulgated,
enforced or issued by any court or other governmental or regulatory authority,
domestic or foreign.

     "Legal Requirement" means any federal, state, local, municipal, foreign,
international, multinational or other administrative law, ordinance, principle
of common law, regulation, statute, treaty, court or arbitrator.

     "Material Adverse Effect" means a material adverse effect upon the business
or financial condition of the Company (when used in Section 4.1) or BOCI (when
used in Section 4.2), taken as a whole with any subsidiaries.

     "Order" means any award, decision, injunction, judgment, order, ruling,
subpoena or verdict entered, issued, made or rendered by any court,
administrative agency or other governmental body or by any arbitrator.

     "Ordinary Course of Business" means an action taken by a Person where:

     (1) such action is consistent with the past practices of such Person and is
taken in the ordinary course of the normal day-to-day operations of such Person;

     (2) such action is not required to be authorized by the board of directors
of such Person (or by any Person or group of Persons exercising similar
authority); and

                                      C-29

<PAGE>

     (3) such action is similar in nature and magnitude to actions customarily
taken, without any authorization by the board of directors (or by any Person or
group of Persons exercising similar authority), in the ordinary course of the
normal day-to-day operations of other Persons that are in the same line of
business as such Person.

     "Organizational Documents" means the articles or certificate of
incorporation and the by-laws of a corporation and any amendment thereto.

     "Person" means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union or other entity
or governmental body.

     "Proceeding" means any action, arbitration, audit, hearing, investigation,
litigation or suit (whether civil, criminal, administrative, investigative or
informal) commenced, brought, conducted or heard by or before, or otherwise
involving, any governmental body or arbitrator.

     "SEC" means the United States Securities and Exchange Commission.

     "Securities Act" means the Securities Act of 1933, as amended.

                                    ARTICLE X

                                  MISCELLANEOUS

     10.1 Fees and Expenses. Except as otherwise provided in this Agreement,
each party hereto will bear its own legal, accounting and other fees and
expenses incident to the Contemplated Transactions herein. Any fees and expenses
required to be paid by any party hereunder shall be limited to reasonable and
necessary fees and expenses

     10.2 Modification, Amendments and Waiver. The parties hereto may amend,
modify or otherwise waive any provision of this Agreement by mutual consent,
provided that such consent and any amendment, modification or waiver is in
writing and is signed by each of the parties hereto.

     10.3 Assignment. Neither the Company nor BOCI shall have the authority to
assign its respective rights or obligations under this Agreement without the
prior written consent of the BOCI Debenture Holder.

     10.4 Successors. This Agreement shall be binding upon and, to the extent
permitted in this Agreement, shall inure to the benefit of the parties and their
respective successors and permitted assigns.

     10.5 Entire Agreement. This Agreement and the exhibits, schedules and other
documents referred to herein contain the entire agreement among the parties
hereto with respect to the Contemplated Transactions and supersede all prior
agreements with respect thereto, whether written or oral.

                                      C-30

<PAGE>

     7.15 10.6 Governing Law. This Agreement and the exhibits hereto shall be
governed by and construed in accordance with the laws of the State of New York,
without giving effect to principles of conflicts or choice of laws thereof. Any
action to enforce the terms of this Agreement or any of its exhibits shall be
brought exclusively in the state and/or federal courts situated in the County
and State of New York. Service of process in any action by either party to
enforce the terms of this Agreement may be made by serving a copy of the summons
and complaint, in addition to any other relevant documents, by commercial
overnight courier to the other party at its principal address set forth in this
Agreement.

          10.7 Notices. Any notice, request, demand, waiver, consent, approval,
or other communication which is required or permitted to be given to any party
hereunder shall be in writing and shall be deemed given only if delivered to the
party personally or sent to the party by facsimile upon electronic confirmation
of receipt (promptly followed by a hard-copy delivered in accordance with this
Section 10.7) or three days after being mailed by registered or certified mail
(return receipt requested), with postage and registration or certification fees
thereon prepaid, or if sent by nationally recognized overnight courier, one day
after being mailed, addressed to the party at its address set forth below:

          If to BOCI prior to
          Post-Closing:             Bob Owen & Company, Inc.
                                    11011 King St., Suite 260
                                    Overland Park, KS 66210
                                    Attention:  CEO
                                    Tel: (913) 469-5614
                                    Fax:  (913) 469-1662

          If to BOCI after          Bob Owen & Company, Inc.
          Post-Closing:             11011 King St., Suite 260
                                    Overland Park, KS 66210
                                    Tel: (913) 469-5614
                                    Fax:  (913) 469-1662

          with copies to:           Roger V. Davidson, Esq.
                                    Ballard Spahr Andrews & Ingersoll, LLP
                                    1225 17th Street, Suite 2300
                                    Denver, CO 80202-5596
                                    Tel: (303) 299-7307
                                    Fax: (303) 382-4607

          If to Acquisition:        EEGC Acquisition, Inc.
                                    11011 King St., Suite 260
                                    Overland Park, KS 66210
                                    Tel: (913) 384-2599
                                    Fax: (913) 906-9632

                                      C-31

<PAGE>

          with copies to:           Roger V. Davidson, Esq.
                                    Ballard Spahr Andrews & Ingersoll, LLP
                                    1225 17th Street, Suite 2300
                                    Denver, CO 80202-5596
                                    Tel: (303) 299-7307
                                    Fax: (303) 382-4607

          If to the Company:        Empire Energy Corporation International
                                    11011 King St., Suite 260
                                    Overland Park, KS 66210
                                    Tel: (913) 384-2599
                                    Fax: (913) 906-9632

          with copies to:           Roger V. Davidson, Esq.
                                    Ballard Spahr Andrews & Ingersoll, LLP
                                    1225 17th Street, Suite 2300
                                    Denver, CO 80202-5596
                                    Tel: (303) 299-7307
                                    Fax: (303) 382-4607

or to such other persons or addresses as may be designated in writing by the
party to receive such notice. If mailed as aforesaid, the day of mailing or
transmission shall be the date any such notice shall be deemed to have been
delivered.

          10.8 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which shall
constitute but one agreement. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

          10.9 Rights Cumulative. All rights, powers and privileges conferred
hereunder upon the parties, unless otherwise provided, shall be cumulative and
shall not be restricted to those given by law. Failure to exercise any power
given any party hereunder or to insist upon strict compliance by any other party
shall not constitute a waiver of any party's right to demand exact compliance
with any of the terms or provisions hereof.

          10.10 Severability of Provisions. The provisions of this Agreement
shall be considered severable in the event that any of such provisions are held
by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable. Such invalid, void or otherwise unenforceable provisions shall be
automatically replaced by other provisions which are valid and enforceable and
which are as similar as possible in term and intent to those provisions deemed
to be invalid, void or otherwise unenforceable and the remaining provisions
hereof shall remain enforceable to the fullest extent permitted by law.

                                      C-32

<PAGE>

          10.11 Headings. The headings set forth in the articles and sections of
this Agreement and in the exhibits and the schedules to this Agreement are
inserted for convenience of reference only and shall not be deemed to constitute
a part hereof.

                            [Signature Page Follows]

                                      C-33

<PAGE>

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

                                            EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

                                            By:  /s/
                                               --------------------------------
                                                      John C. Garrison,
                                                      President

                                            Bob Owen & Company, Inc.

                                            By:  /s/
                                               --------------------------------
                                                      Dave Owen, President

                                            EEGC ACQUISITION, INC.

                                            By:  /s/
                                               --------------------------------
                                                      John C. Garrison,
                                                      President

                                      C-34

<PAGE>

                           COMPANY DISCLOSURE SCHEDULE
                           ---------------------------

                                      C-35

<PAGE>

     The following are exceptions to the representations and warranties made by
Empire Energy Corporation International ("Company") and EEGC Acquisition, Inc.
("Acquisition") in Section 4.1 of the Agreement and Plan of Merger dated as of
May 20, 2004 (the "Agreement") by and among the Company, Acquisition and Bob
Owen & Company, Inc., which exceptions along with any disclosure in the Reports
(as defined in the Agreement) shall be deemed to be representations and
warranties as if made under the Agreement. To the extent any exception is
disclosed pursuant to any specific section of the Agreement designated below, it
shall be deemed to be disclosed for any and all purposes under any other
sections of the Agreement where such disclosure on its face would be deemed
reasonably to apply. Where the terms of a lease, contract, agreement or other
disclosure item have been summarized or described in this Company Disclosure
Schedule, such summary or description does not purport to be a complete
statement of the material terms of such lease, contract, agreement or other
item. Terms defined in the Agreement shall have the same meanings when used
herein unless otherwise defined. The inclusion of any item hereunder shall not
be deemed an admission by the Company that such item is material to the
business, assets, results of operations, prospectus or affairs of the Company,
nor shall it be deemed an admission of any obligation or liability to any third
party.

Section 4.1(a):

         1.

Section 4.1(c):

         1.

Section 4.1(g):

         1.

Section 4.1(h):

         1.

Section 4.1(l)

         1.

Section 4.1 (m)

         1.

Section 4.1 (p)

         1.

                                      C-36

<PAGE>

                                 Schedule 4.2(d)

                            BOCI Financial Statements

                                  BALANCE SHEET

                                      C-37

<PAGE>

                             Schedule 4.2(d) cont'd.

                            BOCI Financial Statements

                            STATEMENTS OF OPERATIONS

                                      C-38

<PAGE>

                                 Schedule 4.2(i)

                             BOCI Legal Proceedings

                                      C-39

<PAGE>

                                 Schedule 4.2(g)

                                BOCI Liabilities

                                      C-40

<PAGE>

                                 Schedule 4.2(m)

                    BOCI Absence of Certain Changes or Events

                                      C-41

<PAGE>

                                 Schedule 4.2(n)

                            BOCI Compliance with Law

                                      C-42

<PAGE>

                                 EXHIBIT 2.2(a)

                                ESCROW AGREEMENT

          ESCROW AGREEMENT (this "Agreement"), dated as of May 20, 2004, by and
among Empire Energy Corporation International, a Nevada corporation with its
principal place of business at 11011 King St., Suite 260, Overland Park, KS
66210 (the "Company"); Gottbetter & Partners, LLP, with its principal place of
business at 488 Madison Avenue, New York, NY 10022 (the "Escrow Agent"); and HEM
Mutual Assurance LLC, a Minnesota limited liability company with offices at 60
South Sixth Street, Suite 3000, Minneapolis, Minnesota 55402 (the "Purchaser").

                                    Recitals

          A. Immediately preceding the execution of this Agreement, the
Purchaser and Bob Owen & Company, Inc., a Kansas corporation ("BOCI") entered
into a Convertible Debenture Purchase Agreement (the "Purchase Agreement"),
dated as of the date hereof and incorporated herein by reference, pursuant to
which BOCI issued and sold and the Purchaser purchased the Debentures, a portion
for cash and a portion for a certain Note (the "Note").

          B. Simultaneous with the execution of this Agreement, the Company has
entered into an Agreement and Plan of Merger (the "Merger Agreement"),
incorporated herein by reference, with BOCI and EEGC Acquisition, Inc., a Kansas
corporation ("Acquisition"), pursuant to which Acquisition will be merged with
and into BOCI (the "Merger") making BOCI the surviving corporation in the Merger
and a wholly-owned subsidiary of the Company.

          C. Pursuant to the Merger, the Company has agreed to assume all of
BOCI's obligations to the Purchaser under the Purchase Agreement and the BOCI
Debentures, to issue the Company Escrow Shares (as defined in the Merger
Agreement) into escrow with the Escrow Agent in order to replace the Escrow
Shares (as defined in the Purchase Agreement) and for purposes of conversions of
the BOCI Debentures, the Company acknowledges its assigned rights under the Note
and Purchaser has agreed to such assumption and related transactions.

          D. In connection with the foregoing, the Escrow Agent has agreed to
continue to act as Escrow Agent for the BOCI Debentures (both the First
Debenture and the Second Debenture and the Company Escrow Shares) in the same
manner and to the same extent that it previously agreed to act as Escrow Agent
for the BOCI Debentures and the Escrow Shares.

          E. Pursuant to the Purchase Agreement, the Escrow Agent will hold
First Debenture B in escrow and the First Debenture B shall not accrue interest,
or become subject to repayment until the Note is either due and paid in full by
the Purchaser, whereupon it will be delivered to the Purchaser and will commence
accruing interest and become subject to conversion or repayment or the Note
expires under its terms, whereupon the First Debenture B will be delivered to
the Company for cancellation without any obligation for repayment.

                                      C-43

<PAGE>

          F. The Company has granted the Escrow Agent a limited power of
attorney (the "Power of Attorney") with respect to the BOCI Debentures and the
Company Escrow Shares (collectively the "Securities"), in the form attached
hereto as Appendix I.

          G. The Escrow Agent is willing to act as escrow agent pursuant to the
terms of this Agreement with respect to the Securities.

          H. All capitalized terms used but not defined herein shall have the
meanings ascribed thereto in the Merger Agreement.

          NOW, THEREFORE, IT IS AGREED:

ARTICLE I Procedure for Escrow. The procedures of the escrow shall be governed
by the provisions of Article 2 of the Purchase Agreement and Exhibit E thereto,
Section 2.2 of the Merger Agreement, the Note and Sections 2, 3, 4 and 5 of the
BOCI Debentures, all of which are incorporated herein.

ARTICLE II Terms of Escrow. The terms of the escrow shall be governed by Article
4 of the Purchase Agreement, Article 2 of the Merger Agreement, Sections 2, 3, 4
and 5 of the BOCI Debentures and the Note, all of which are incorporated herein.

ARTICLE III Duties and Obligations of the Escrow Agent.

     3.1 The parties hereto agree that the duties and obligations of the Escrow
Agent shall be only those obligations herein specifically provided and no other.
The Escrow Agent's duties are those of a depositary only, and the Escrow Agent
shall incur no liability whatsoever, except as a direct result of its willful
misconduct or gross negligence in the performance of its duties hereunder;

     3.2 The Escrow Agent may consult with counsel of its choice, and shall not
be liable for any action taken, suffered or omitted to be taken by it in good
faith in accordance with the advice of such counsel;

     3.3 The Escrow Agent shall not be bound in any way by the terms of any
other agreement to which the Purchaser and the Company are parties, whether or
not the Escrow Agent has knowledge thereof, and the Escrow Agent shall not in
any way be required to determine whether or not any other agreement has been
complied with by the Purchaser and the Company, or any other party thereto. The
Escrow Agent shall not be bound by any modification, amendment, termination,
cancellation, rescission or supersession of this Agreement unless the same shall
be in writing and signed by the Purchaser and the Company and agreed to in
writing by the Escrow Agent;

     3.4 If the Escrow Agent shall be uncertain as to its duties or rights
hereunder or shall receive instructions, claims or demands which, in its
opinion, are in conflict with any of the provisions of this Agreement, the
Escrow Agent shall be entitled to refrain from taking any action other than
keeping safely the Consideration (as defined below) or take action it deems
until the Escrow Agent is directed otherwise in writing jointly by the Purchaser
and the Company or by a final judgment of a court of competent jurisdiction;

                                      C-44

<PAGE>

     3.5 The Escrow Agent shall be fully protected in relying upon any written
notice, demand, certificate or document which the Escrow Agent, in good faith,
believes to be genuine. The Escrow Agent shall not be responsible for the
sufficiency or accuracy of the form, execution, validity or genuineness of
documents or securities now or hereafter deposited hereunder or of any
endorsement thereon, or for any lack of endorsement thereon, or for any
description therein; nor shall the Escrow Agent be responsible or liable in any
respect on account of the identity, authority or rights of the persons executing
or delivering or purporting to execute or deliver any such document, security or
endorsement;

     3.6 The Escrow Agent shall not be required to institute legal proceedings
of any kind and shall not be required to defend any legal proceedings which may
be instituted against it or in respect of the Consideration;

     3.7 If the Escrow Agent at any time, in its sole discretion, deems it
necessary or advisable to relinquish custody of any of the Securities (to the
extent delivered to the Escrow Agent pursuant hereto, the "Consideration"), it
may do so by delivering the same to another Person that agrees to act as escrow
agent hereunder and whose substitution for the Escrow Agent is agreed upon in
writing by the Purchaser and the Company. If no such escrow agent is selected
within ten (10) days after the Escrow Agent gives notice to the Purchaser and
the Company of the Escrow Agent's desire to so relinquish custody of the
Consideration and resign as Escrow Agent, then the Escrow Agent may do so by
delivering the Consideration to the clerk or other proper officer of a state or
federal court of competent jurisdiction situate in the state and county of New
York. The fee of any court officer shall be borne by the Company. Upon such
delivery, the Escrow Agent shall be discharged from any and all responsibility
or liability with respect to the Consideration and this Agreement and each of
the Company and the Purchaser shall promptly pay all monies it may owe to the
Escrow Agent for its services hereunder, including, but not limited to,
reimbursement of its out-of-pocket expenses;

     3.8 This Agreement shall not create any fiduciary duty on the Escrow
Agent's part to the Purchaser or the Company, nor disqualify the Escrow Agent
from representing either party hereto in any dispute with the other, including
any dispute with respect to the Consideration; provided, however, that in the
event of such dispute, the Escrow Agent shall have the right to commence an
interpleader action in any court of competent jurisdiction of the State of New
York or of the United States located in the county and State of New York and
deposit the Consideration with such court;

     3.9 The parties acknowledge and agree that the Escrow Agent is counsel to
the Purchaser. The parties agree to, and agree not to object to, the Escrow
Agent's engagement as Escrow Agent hereunder;

     3.10 Upon the performance of this Agreement, the Escrow Agent shall be
deemed released and discharged of any further obligations hereunder.

                                      C-45

<PAGE>

     3.11 The Escrow Agent agrees to perform its obligations hereunder in
accordance with the provisions of Sections 1 and 2 hereof.

ARTICLE IV Indemnification.

     4.1 The Purchaser hereby indemnifies and holds free and harmless the Escrow
Agent from any and all losses, expenses, liabilities and damages (including but
not limited to reasonable attorney's fees, and amounts paid in settlement)
resulting from claims asserted by the Company against the Escrow Agent with
respect to the performance of any of the provisions of this Agreement;

     4.2 The Company hereby indemnifies and holds free and harmless the Escrow
Agent from any and all losses, expenses, liabilities and damages (including but
not limited to reasonable attorney's fees, and amount paid in settlement)
resulting from claims asserted by the Purchaser against the Escrow Agent with
respect to the performance of any of the provisions of this Agreement;

     4.3 The Purchaser and the Company, jointly and severally, hereby indemnify
and hold the Escrow Agent harmless from and against any and all losses, damages,
taxes, (other than taxes related to the fee of the Escrow Agent), liabilities
and expenses that may be incurred by the Escrow Agent, arising out of or in
connection with its acceptance of appointment as the Escrow Agent hereunder
and/or the performance of its duties pursuant to this Agreement, the Purchase
Agreement, the Securities and the Power of Attorney, including, but not limited
to, all reasonable legal costs and expenses of the Escrow Agent incurred
defending itself against any claim or liability in connection with its
performance hereunder, provided that the Escrow Agent shall not be entitled to
any indemnity for any losses, damages, taxes, liabilities or expenses that
directly result from its willful misconduct or gross negligence in its
performance as Escrow Agent hereunder.

     4.4 In the event of any legal action or proceeding involving any of the
parties to this Agreement which is brought to enforce or otherwise adjudicate
any of the rights or obligations of the parties hereunder, the non-prevailing
party or parties shall pay the reasonable legal fees of the prevailing party or
parties and the reasonable legal fees, if any, of the Escrow Agent.

ARTICLE V Miscellaneous.

     5.1 Any notice, request, demand, waiver, consent, approval, or other
communication which is required or permitted to be given to any party hereunder
shall be in writing and shall be deemed given only if delivered to the party
personally or via courier or sent to the party by facsimile upon electronic
confirmation and receipt (promptly followed by a hard-copy delivered in
accordance with this Section 5(a)) or three days after being mailed by
registered or certified mail (return receipt requested), or if sent by
nationally recognized overnight courier, one day after being mailed, in each
case with postage and registration or certification fees thereon prepaid,
addressed to the party at its address set forth below:

                                      C-46

<PAGE>

          (i) If to the Company:       Empire Energy Corporation International
                                       11011 King St., Suite 260
                                       Overland Park, KS 66210
                                       Tel: (913) 384-2599
                                       Fax: (913) 906-9632

          with copies to:              Roger V. Davidson, Esq.
                                       Ballard Spahr Andrews & Ingersoll, LLP
                                       1225 17th Street, Suite 2300
                                       Denver, CO 80202-5596
                                       Tel: (303) 299-7307
                                       Fax: (303) 382-4607

          (ii) If to the Purchaser:    See Schedule 1 to the Purchase Agreement.

          With copies to               Gottbetter & Partners, LLP
                                       488 Madison Avenue
                                       New York, New York 10022
                                       Attn:  Adam S. Gottbetter, Esq.
                                       Tel:  (212) 400-6900
                                       Fax:  (212) 400-6901

          (ii)If to the Escrow Agent:  Gottbetter & Partners, LLP
                                       488 Madison Avenue
                                       New York, New York 10022
                                       Attn:  Adam S. Gottbetter, Esq.
                                       Tel:  (212) 400-6900
                                       Fax:  (212) 400-6901

          This Agreement shall be governed by and construed and enforced in
accordance with the laws of the state of New York applicable to contracts
entered into and performed entirely within New York, without giving effect to
the principles of New York law relating to the conflict of laws.

     5.2 This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

     5.3 This Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns. The assignment by a party of
this Agreement or any rights hereunder shall not affect the obligations of such
party under this Agreement.

                                      C-47

<PAGE>

     5.4 Any fees and expenses required to be paid by any party hereunder shall
be limited to reasonable and necessary fees and expenses

     5.5 This Agreement and the other agreements and documents referenced herein
contain the entire agreement among the parties hereto with respect to the
transactions described herein and supercedes all prior agreements with respect
thereto, whether written or oral.

ARTICLE VI Termination of Escrow. The term of this Escrow Agreement shall begin
upon the date hereof and shall continue until the earlier to occur of (i) full
conversion of the BOCI Debentures (ii) the Maturity Date, and (iii) the written
agreement of the parties to terminate this Agreement. Upon the termination of
this Escrow Agreement, the Escrow Agent shall return any of the Consideration
then held by it to the Company or the Purchaser, as applicable pursuant to the
Merger Agreement and all other documents executed in connection therewith, the
Purchase Agreement and the other Transaction Documents.

                            [Signature Page Follows]

                                      C-48

<PAGE>

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

Escrow Agent:                               The Company:

Gottbetter & Partners, LLP                  EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

By:  /s/                                    By:  /s/
   -------------------------------             --------------------------------
          Adam Gottbetter,                            John C. Garrison,
          Managing Partner                            President

Purchaser:

                                            HEM MUTUAL ASSURANCE LLC

                                            By:  /s/
                                               --------------------------------
                                            Name:     Pierce Loughran
                                            Title:    Manager

                                      C-49

<PAGE>

                                   APPENDIX I

FORM 26/33-DPOA/S-97
Power of Attorney; Statutory Short Form, Revised 1/1/97 o (with Affidavit of
         Effectiveness (C)

              CONSULT YOUR LAWYER BEFORE SIGNING THIS INSTRUMENT -
                 THIS INSTRUMENT SHOULD BE USED BY LAWYERS ONLY

                        DURABLE GENERAL POWER OF ATTORNEY
                          NEW YORK STATUTORY SHORT FORM
               THE POWERS YOU GRANT BELOW CONTINUE TO BE EFFECTIVE
                    SHOULD YOU BECOME DISABLED OR INCOMPETENT

CAUTION: THIS IS AN IMPORTANT DOCUMENT IT GIVES THE PERSON WHOM YOU DESIGNATE
(YOUR "AGENT") BROAD POWERS TO HANDLE YOUR PROPERTY DURING YOUR LIFETIME WHICH
MAY INCLUDE POWERS TO MORTGAGE, SELL, OR OTHERWISE DISPOSE OF ANY REAL OR
PERSONAL PROPERTY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU. THESE POWERS
WILL CONTINUE TO EXIST EVEN AFTER YOU BECOME DISABLED OR INCOMPETENT. THESE
POWERS ARE EXPLAINED MORE FULLY IN NEW YORK GENERAL OBLIGATIONS LAW, ARTICLE 5,
TITLE 15, SECTION 5-1502A THROUGH 5-1503 WHICH EXPRESSLY PERMIT THE USE OF ANY
OTHER OR DIFFERENT FORM OF POWER OF ATTORNEY.

THIS DOCUMENT DOES NOT AUTHORIZE ANYONE TO MAKE MEDICAL OR OTHER HEALTH CARE
DECISIONS. YOU MAY EXECUTE A HEALTH CARE PROXY TO DO THIS.

(IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHOULD ASK
A LAWYER TO EXPLAIN IT TO YOU.)

THIS is intended to constitute a DURABLE GENERAL POWER OF ATTORNEY pursuant to
Article 5, Title 15 of the New York General Obligations Law:

     EMPIRE ENERGY CORPORATION INTERNATIONAL, with an address at 11011 King St.,
                       Suite 260, Overland Park, KS 66210
                         (insert your name and address)

  does hereby appoint: Adam S. Gottbetter with an address at c/o Gottbetter &
       Partners, LLP, 488 Madison Avenue, 12th Floor, New York, NY 10017
   (If 1 person is to be appointed agent, insert the name and address of your
                                  agent above)

      (If 2 or more persons are to be appointed agents by you insert their
                          names and addresses above.)

my attorney(s)-in-fact TO ACT (If more than one agent is designated, CHOOSE ONE
of the following two choices by putting your initials in ONE of the blank spaces
to the left of your choice;)

                           ( ) Each agent may SEPARATELY act.
                           ( ) All agents must act TOGETHER.
    (If neither blank space is initialed, the agents will be required to act
                                   TOGETHER)

IN MY NAME, PLACE AND STEAD in any way which I myself could do, if I were
personally present, with respect to the following matters as each of them is
defined in Title 15 of Article 5 of the New York General Obligations Law to the
extent that I am permitted by law to act through an agent:
(DIRECTIONS: Initial in the blank space to the left of your choice any one or
more of the following lettered subdivisions as to which you WANT to give your
agent authority. If the blank space to the left of any particular lettered
subdivision is NOT initialed, NO AUTHORITY WILL BE GRANTED for matters that are
included in that subdivision. Alternatively, the letter corresponding to each
power you wish to grant may be written or typed on the blank line in subdivision
"(Q)", and you may then put your initials in the blank space to the left of
subdivision "(Q)" in order to grant each of the powers so indicated)

                                      C-50

<PAGE>

(    )   (A)    real estate transactions;
(    )   (B)    chattel and goods transactions;
( X  )   (C)    bond, share and commodity transactions;
(    )   (D)    banking transactions;
(    )   (E)    business operating transactions;
(    )   (F)    insurance transactions;
(    )   (G)    estate transactions;
(    )   (H)    claims and litigation;
(    )   (I)    personal relationships and affairs;
(    )   (J)    benefits from military service;
(    )   (K)    records, reports and statements;
(    )   (L)    retirement benefit transactions;

(    )   (M)    making gifts to my spouse, children and more remote descendants,
                and parents, not to exceed in the aggregate $10,000 to each of
                such persons in any year;
(    )   (N)    tax matters;
(    )   (O)    all other matters;
(    )   (P)    full and unqualified authority to my attorney(s)-in-fact to
                delegate any or all of the foregoing powers to any person or
                persons whom my attorney(s)-in-fact shall select;
(    )   (Q)    each of the matters identified by the following letters:

(Special provisions and limitations may be included in the statutory short form
durable power of attorney only if they conform to the requirements of Section
5-1503 of the New York General Obligations Law.)

                                SEE ATTACHMENT A

Special Additional Provisions: The powers granted under (A) through (C) above
shall include the sale of a cooperative housing unit and are enlarged so that
all fixtures and articles of personal property which at the time of such
transaction are or which may thereafter be attached to or used in connection
with the real or personal property may be included in the agreements or other
instruments to be executed and delivered in connection with any transactions and
which may be described in said instruments with more particularity. This Power
of Attorney is not subject to question because an instrument executed hereunder
fails to recite or recites only nominal consideration paid therefore and any
person dealing with the subject matter of such instrument may do so as if full
consideration had been expressed therein.

This durable power of attorney shall not be affected by my subsequent disability
or incompetence. If every agent named above is unable or unwilling to serve, I
appoint
                                   residing at
(insert name and address of successor)
to be my agent for all purposes hereunder.                               JUD 134

                                      C-51

<PAGE>

TO INDUCE ANY THIRD PARTY TO ACT HEREUNDER, I HEREBY AGREE THAT ANY THIRD PARTY
RECEIVING A DULY EXECUTED COPY OR FACSIMILE OF THIS INSTRUMENT MAY ACT
HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO
SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR KNOWLEDGE OF SUCH REVOCATION
OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND I FOR MYSELF
AND FOR MY HEIRS, EXECUTORS, LEGAL REPRESENTATIVES AND ASSIGNS, HEREBY AGREE TO
INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL
CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY
HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

THIS DURABLE GENERAL POWER OF ATTORNEY MAY BE REVOKED BY ME AT ANY TIME.

IN WITNESS WHEREOF I have hereunto signed my name this __nd day of June, 2004.

                                  EMPIRE ENERGY CORPORATION INTERNATIONAL

      (YOU SIGN HERE:) [ ] By:  _______________________, Chief Executive Officer
                                (Signature of principal)

The statute requires that this instrument be acknowledged by the principal. No
express provision is made for proof by subscribing witness.

STATE OF                COUNTY OF                    ) ss.:

On the   day of                   , 2004,            before me personally came

to me known to be the individual described in and who executed the foregoing
instrument and acknowledged that he executed same.

 STATE OF               COUNTY OF                    ) ss.:

On the   day of                    , 20  ,           before me personally came

to me known to be the individual described in and who executed the foregoing
instrument and acknowledged that he executed same.

                         AFFIDAVIT OF EFFECTIVENESS (C)
 STATE OF                COUNTY OF          ) ss.:

Adam S. Gottbetter, residing at 488 Madison Avenue, 12th Floor, New York, New
York 10017, being duly sworn does depose and say that I am the Attorney-in-Fact
under the above Power of Attorney. That said Power of Attorney is a valid and
subsisting Power which has not been revoked by the death of the principal(s) or
otherwise; that I have no actual knowledge of a revocation of the foregoing
Power; and, I warrant and represent that I have full and unqualified authority
to execute the documents relating to the release of common stock of Empire
Energy Corporation International held in escrow knowing that Interwest Transfer
Company, Inc, as transfer agent and Gottbetter & Partners, LLP as escrow agent ,
will rely upon the representations made herein as inducement to accept such
instrument(s) and this Power of Attorney as evidence of my authority to act.

                                                                Attorney in Fact
SWORN AND SUBSCRIBED TO BEFORE ME THIS      DAY OF                     , 200

                          (Notary Affix Stamp at Right)

Durable General Power of Attorney                         DISTRICT
  REVISED STATUTORY SHORT FORM                            SECTION
TITLE NO.                                                 BLOCK
                                                          LOT
                                                          COUNTY OR TOWN

                                                   RECORDED AT THE REQUEST OF
                                               ---------------------------------

                               RETURN BY MAIL TO:

                       RESERVED FOR RECORDING OFFICE USE

                                      C-52

<PAGE>

                            DURABLE POWER OF ATTORNEY
                          NEW YORK STATUTORY SHORT FORM
                               DATED MAY __, 2004
           BY EMPIRE ENERGY CORPORATION INTERNATIONAL (the "Company")

                                  ATTACHMENT A

     The attached power of attorney is limited by and subject to the terms and
conditions of the Convertible Debenture Purchase Agreement by and between Bob
Owen & Company, Inc. ("BOCI") and HEM Mutual Assurance LLC (the "Purchaser")
dated June __, 2004 (the "Purchase Agreement"), the Escrow Agreement by and
among Empire Energy Corporation International (the "Company"), Gottbetter &
Partners, LLP and the Purchaser dated June __, 2004 (the "Escrow Agreement"),
and the Agreement and Plan of Merger dated June __, 2004 by and between the
Company, EEGC Acquisition, Inc. and BOCI (the "Merger Agreement") and, to be
issued in accordance with the Merger Agreement, the BOCI Debentures and the
Company Escrow Shares, and such power of attorney can only be acted upon to
enforce the rights of the Purchaser and its successors and assigns under the
Purchase Agreement, the Merger Agreement and the BOCI Debentures, and to grant
the appointed agent the power to deliver the opinions of counsel in
substantially the same form as the opinions contained in Exhibits 6.1(b) and
6.1(c) to the Merger Agreement, in connection with the issuance and delivery of
shares of the Company Common Stock, removing stop transfer orders and
restrictions, and replenishing the Company Escrow Shares under and in accordance
with the aforementioned documents.

     All capitalized terms used but not defined herein shall have the meanings
ascribed thereto in the Merger Agreement.

     This power of attorney shall expire upon the full and complete satisfaction
of all of the Company's obligations under the Escrow Agreement and the BOCI
Debentures.

     IN WITNESS WHEREOF, I have hereunto signed my name this day of June, 2004.

                                            EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

                                            By:
                                               --------------------------------
                                            Name:
                                            Title:

Signed and sworn to before me on
                           , 2004
---------------------------

---------------------------
   Notary Public

                                      C-53

<PAGE>

                                 EXHIBIT 6.1(a)

                     EMPIRE ENERGY CORPORATION INTERNATIONAL

                              OFFICER'S CERTIFICATE
                              ---------------------

     I, John C. Garrison, being the President of Empire Energy Corporation
International, a Nevada corporation (the "Company"), pursuant to Section 6.1(a)
of that certain Agreement and Plan of Merger (the "Merger Agreement"), dated as
of June __, 2004, by and between the Company, EEGC Acquisition, Inc. and Bob
Owen & Company, Inc., do hereby certify on behalf of the Company that attached
hereto is a copy of the resolutions duly adopted by the Board of Directors of
the Company authorizing the execution, delivery and performance of the Merger
Agreement and all exhibits and documents related thereto by the Company and all
other necessary or proper corporate action to enable the Company to comply with
the terms thereunder.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on behalf of
the Company this __ day of June, 2004.

                                            EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

                                            By:  ______________________________

                                      C-54

<PAGE>

                                 EXHIBIT 6.1(b)

June __, 2004

Confidential
------------

Bob Owen & Company, Inc.
9899 Santa Monica Blvd. #317
Beverly Hills, CA 90212

                  Re:   Agreement and Plan of Merger by and among Empire Energy
                        Corporation International, EEGC Acquisition, Inc., and
                        Bob Owen & Company, Inc.

Gentlemen:

          This opinion is furnished to you pursuant to Section 6.1(b) of the
Agreement and Plan of Merger, dated June __, 2004 (the "Merger Agreement"), by
and among (i) Empire Energy Corporation International, a corporation organized
under the laws of Nevada ("Parent"), (ii) EEGC Acquisition, Inc., a Kansas
corporation and a wholly owned subsidiary of Parent ("Acquisition"), and (iii)
Bob Owen & Company, Inc., a corporation organized under the laws of Kansas
("BOCI"). We have acted as counsel to Parent and Acquisition in connection with
the preparation, execution and delivery of the Merger Agreement and the Escrow
Agreement, dated June __, 2004, among Parent, Gottbetter & Partners, LLP, as
escrow agent, and HEM Mutual Assurance LLC (the "Escrow Agreement") referred to
in Section 2.2(a) of the Merger Agreement. Capitalized terms used and not
otherwise defined herein have the meanings assigned to them in the Merger
Agreement.

In connection with this opinion, we have examined original or reproduced or
certified copies of such records of Parent and Acquisition, certificates of
public officials, officers and representatives of Parent and Acquisition and
such other instruments and documents as we have deemed necessary to form the
basis for the opinion hereinafter expressed.

As to various matters of fact relevant to our opinion, we have relied upon
representations and warranties of representatives of Parent and Acquisition
(including representations and warranties made in or pursuant to the Merger
Agreement) and certificates and statements of public officials and officers and
other representatives of Parent and Acquisition.

Based upon the foregoing, and subject to the assumptions, exceptions and
qualifications set forth herein, we are of the opinion that:

                                      C-55

<PAGE>

ARTICLE VIII 1. Parent is a corporation validly existing in good standing under
the laws of the State of Nevada. Acquisition is corporation validly existing in
good standing under the laws of the State of Kansas. Parent is qualified to
transact business and in good standing in the States of [ ] and [other states].

ARTICLE IX 2. Parent and Acquisition have all necessary corporate power and
authority to execute and deliver the Merger Agreement and Parent has all
necessary corporate power and authority to execute and deliver the Escrow
Agreement. The execution and delivery by Parent and Acquisition of the Merger
Agreement have been duly authorized by all necessary corporate action required
on the part of Parent and Acquisition. The execution and delivery by Parent of
the Escrow Agreement have been duly authorized by all necessary corporate action
required on the part of Parent. The Merger Agreement has been duly executed and
delivered by Parent and Acquisition and constitutes a valid and binding
obligation of Parent and Acquisition, enforceable against Parent and Acquisition
in accordance with its terms. The Escrow Agreement has been duly executed and
delivered by Parent and constitutes a valid and binding obligation of Parent,
enforceable against Parent in accordance with its terms.

ARTICLE X 3. As of the date hereof, immediately prior to the effective time of
the Merger, the Parent's authorized capital stock consists of (a) [ ] shares of
common stock, [par value $.001] per share (the"Common Stock"), of which
approximately [ ] shares are issued and outstanding, and (b) [ ] shares of
preferred stock, par value [$.0001] per share, of which no shares of Preferred
Stock are issued and outstanding. No shares of the Common Stock are entitled to
statutory preemptive rights. Except as specifically disclosed in Schedule 4.1(c)
to the Merger Agreement, to our knowledge, there are no outstanding options,
warrants, rights to subscribe to, registration rights, calls or commitments
relating to, or, except as a result of the purchase and sale of the BOCI
Debentures, securities, rights or obligations convertible into or exchangeable
for, or giving any person any right to subscribe for or acquire, any shares of
Common Stock, or contracts or commitments by which Parent is bound to issue
additional shares of the Common Stock, or securities or rights convertible into
or exchangeable for shares of the Common Stock, except as otherwise provided in
the Merger Agreement.

ARTICLE XI 4. Parent has duly authorized and reserved for issuance such number
of shares of the Common Stock as are issuable upon conversion of the BOCI
Debentures (the "Underlying Shares") and, to the extent that the number of the
Underlying Shares may exceed the aggregate number of the Escrow Shares deposited
in escrow pursuant to the Escrow Agreement (such excess shares, if any, the
"Excess Shares"), such number of Excess Shares as are required pursuant to the
BOCI Debentures and the Merger Agreement. The Escrow Shares and the Excess
Shares, when issued pursuant to the terms of the BOCI Debentures, the Merger
Agreement and the Escrow Agreement, will be validly issued, fully paid and
non-assessable.

                                      C-56

<PAGE>

ARTICLE XII 5. The execution and delivery of the Merger Agreement by Parent and
BOCI Acquisition, and the execution and delivery of the Escrow Agreement by
Parent, and the performance by them of the terms thereof, do not conflict with
or violate any judgment, decree, order, rule or regulation known to us of any
court or governmental body of the State of Kansas or the United States of
America having jurisdiction over Parent or Acquisition.

ARTICLE XIII 6. The execution and delivery of the Merger Agreement by Parent and
Acquisition, and the execution and delivery of the Escrow Agreement by Parent,
and the performance by them of the terms thereof, do not violate, to our
knowledge, any provision of any applicable law, rule or regulation of the State
of Kansas or the United States of America, which violation is reasonably
expected to have a Material Adverse Effect. To our knowledge, except as
disclosed in Schedule 4.1(b) to the Merger Agreement, neither the execution,
delivery and performance of the Merger Agreement by Parent or Acquisition, nor
the execution, delivery and performance of the Escrow Agreement by Parent, have
resulted in any violation of, or constituted a default under (or an event which
with the passage of time or the giving of notice or both would constitute a
default under) any contract, agreement, instrument, judgment or decree binding
upon Parent or Acquisition known to us, which violation or default is reasonably
expected to have a Material Adverse Effect.

ARTICLE XIV 7. To our knowledge, no lawsuit, governmental investigation or
legal, administrative or arbitration action or proceeding is pending or
threatened against Parent or Acquisition which questions the validity of the
Merger Agreement or the Escrow Agreement or seeks to prohibit, enjoin or
otherwise challenge the consummation of the transactions contemplated thereby.

ARTICLE XV 8. No consent or approval of or filing with any governmental
authority of the States of Kansas or the United States of America is required
(a) for Parent or Acquisition to execute and deliver the Merger Agreement or to
perform the terms thereof, or (b) for Parent to execute and deliver the Escrow
Agreement or perform the terms thereof, except for the filing of registration
statements and periodic reports with the Securities and Exchange Commission
under the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended.

          The opinion set forth above is subject to the following further
qualifications and limitations:

     1.   In rendering the opinion in paragraph 1 above, we have relied solely
          on certificates of good standing of the Secretaries of State of the
          State of Nevada;

     2.   The enforceability of the Merger Agreement and the Escrow Agreement
          may be subject to or limited by bankruptcy, insolvency, moratorium,
          reorganization, fraudulent conveyance or other similar laws and court
          decisions affecting or relating to the enforcement of creditors'
          rights generally;

                                      C-57

<PAGE>

     3.   The enforceability of the Merger Agreement and the Escrow Agreement
          are subject to the application of and may be limited by general
          principles of equity, including, without limitation, concepts of
          materiality, reasonableness, good faith and fair dealing (regardless
          of whether such enforceability is considered in a proceeding in equity
          or at law). Such principles of equity are of general application, and
          in applying such principles a court, among other things, might decline
          to order Parent or Acquisition to perform certain covenants.

     4.   The remedies of specific performance, injunction and other forms of
          equitable relief are subject to certain limitations and defenses and
          the discretion of the court before which any proceeding may be
          brought;

     5.   We express no opinion as to the validity, binding nature or
          enforceability of any provision in any documents which (i) purports to
          waive any procedural due process rights, (ii) relates to choice of
          governing law as it may be interpreted by any court other than a court
          of the State of New York, (iii) waives any rights afforded to any
          party under any statute or constitutional provision, or (iv) waives
          broadly or vaguely stated rights or future rights, or waives certain
          rights or defenses to obligations, in each case where such waivers are
          against statutes, laws or public policy;

     6.   Rights to indemnity and/or contribution under the Merger Agreement or
          any obligation of BOCI assumed thereby may be limited by federal or
          state securities laws or the public policy underlying such laws;

     7.   We express no opinion with respect to (i) the securities laws of any
          jurisdiction, including the securities laws of the United States of
          America or of any state (ii) the anti-trust laws of the United States
          of America or of any state, (iii) patent, copyright, trademark or
          other intellectual property laws or regulations of the United States
          of America or of any state;

     8.   In rendering the opinion in paragraph 3 above, we have relied solely
          on the disclosures in Parent's Annual Report on Form 10-KSB for the
          Quarterly Period ended December 31, 2003, as updated by a certificate
          of the President and Chief Executive Officer of Parent; and

     9.   As used in this opinion letter, "our knowledge," "known to us" or like
          phrases shall mean the current, actual knowledge (without independent
          investigation or verification) of attorneys in our firm who have been
          involved with the negotiation, execution and delivery of the Merger
          Agreement and Escrow Agreement based upon our limited representation
          of Parent and Acquisition. We do not purport to have made nor have we
          made any review of court or other public records (other than the
          certificates of good standing referred to in clause (i) above) or
          proceedings, or any specific review or investigation of Parent or
          Acquisition or any affiliate thereof or any special inquiry of Parent
          or Acquisition, any affiliate thereof, or any other Person.

          We do not express any opinion with respect to any law other than the
laws of the State of [ ] and the federal laws of the United States of America
that in our experience are generally applicable to transactions of the type

                                      C-58

<PAGE>

contemplated by the Merger Agreement and the Escrow Agreement ("Applicable
Law"), and we express no opinion as to laws that are applicable as a result of
the particular business of any party to the Merger Agreement or the Escrow
Agreement.

          We note that Parent is organized under the laws of the State of Nevada
and that Acquisition is organized under the State of Kansas. We are not members
of the Bar of the State of Nevada or Kansas, and thus, with your consent, the
opinion expressed herein is understood to be rendered as if Parent were
organized under the laws of the State of [Colorado].

          This opinion is furnished by us solely for your benefit in connection
with the transactions referred to in and contemplated by the Merger Agreement
and may not be circulated to, or quoted or relied upon by, any other person or
for any other purpose.

                                            Very truly yours,

                                      C-59

<PAGE>

                                 EXHIBIT 6.1(c)

June __, 2004

Bob Owen & Company, Inc.
9899 Santa Monica Blvd. #317
Beverly Hills, CA 90212

         Re:      Supporting Legal Opinion for Request to Issue Free Trading
                  Securities Pursuant to Rule 504 for Empire Energy Corporation
                  International

Dear Sirs:

     The undersigned has been retained as special securities and acquisition
counsel to Empire Energy Corporation International, a Nevada corporation,
("EEGC") and Bob Owen & Company, Inc., a Kansas corporation ("BOCI"). We can
advise you that prior to the transactions referred to herein, BOCI was not
affiliated with EEGC.

     The subject of this letter are securities to be issued by BOCI on or about
June __, 2004, pursuant to a Convertible Debenture Purchase Agreement ("Purchase
Agreement") dated June __, 2004 between BOCI and the Investor (as defined
below), to wit, the BOCI 1.5% Convertible Debenture in the aggregate principal
amount of Four Hundred Eighty Five Thousand Dollars ($485,000) (the "First
Debenture") and the BOCI 1.5% Convertible Debenture in the aggregate principal
amount of Fifteen Thousand Dollars ($15,000) (the "Second Debenture"; and,
together with the First Debenture, the "BOCI Debentures"), together with the
underlying shares of the BOCI common stock, par value $.001 (the "BOCI Common
Stock"), into which the BOCI Debentures are convertible, from time to time. The
Purchase Agreement also requires BOCI and/or its successor in interest, to issue
50,000,000 shares of BOCI Common Stock as a "security stock" (the "Escrow
Shares") in support of the offer and sale of the BOCI Debentures. The BOCI
Debentures, the BOCI Common Stock and the Escrow Shares may be referred to
collectively herein as the "BOCI Securities."

     The BOCI Debentures are to be issued to the accredited investor listed on
Exhibit A to this opinion, an accredited Minnesota resident or domiciliary (the
"Investor"). Under and pursuant to the terms of the BOCI Debentures and the
Purchase Agreement, the Investor may elect to convert all or some of the BOCI
Debentures into the BOCI Common Stock.

     Following the issuance of the BOCI Debentures on or about June __, 2004,
EEGC Acquisition, Inc., a Kansas corporation ("Acquisition"), a wholly owned
subsidiary of EEGC, will be merged with and into BOCI (the "Merger") pursuant to
the Agreement and Plan of Merger dated as of June __, 2004 by and among EEGC,
Acquisition and BOCI (the "Merger Agreement"). Pursuant to the Merger, the BOCI
Common Stock will be canceled and EEGC shall issue 50,000,000 shares of its
common stock, [par value $0.001] per share (the "EEGC Common Stock") into escrow
pursuant to the terms of the Merger Agreement and the Purchase Agreement as a

                                      C-60

<PAGE>

"security stock" to replace the Escrow Shares (the "Security Shares"). Up to all
of the Security Shares and up to all of any additional shares of EEGC Common
Stock that may in the future be issued and deposited into escrow by EEGC in
accordance with the Purchase Agreement (the "Additional Security Shares") may be
released from escrow from time to time to the Investor or its assigns to satisfy
EEGC's obligations upon conversion of the Debentures by the Investor or its
assigns in accordance with the terms of the Purchase Agreement and the
Debentures. This letter addresses the validity of the issuance of the Security
Shares and Additional Security Shares and the delivery of the Security Shares
and Additional Security Shares to the Investor or its assigns from time-to-time
in accordance with the Merger Agreement, Purchase Agreement and BOCI Debentures.
The BOCI Debentures, EEGC Common Stock, Security Shares and Additional Security
Shares, are referred to collectively herein as the "EEGC Securities."

     You have requested that we provide you with separate legal opinions (i)
covering the issuance of the Security Shares and any Additional Security Shares
to the effect that the BOCI Debentures and the BOCI Common Stock, and the EEGC
Securities, as the case may be, may be issued without a restrictive legend and
may be freely traded; and (ii) covering the issuance of EEGC Common Stock as
Security Shares and Additional Security Shares pursuant to the terms of the
Merger Agreement, Purchase Agreement and the BOCI Debentures to the effect that
such shares (or any part thereof) may be issued and subsequently delivered to
the Investor or its assigns upon the receipt by EEGC of any notices of
conversion issued by the Investor or its assigns pursuant to the terms of the
Purchase Agreement and the BOCI Debentures without a restrictive legend and may
be freely traded. This opinion covers any issuance of EEGC Securities and the
delivery of the same to the Investor or its assigns in accordance with the terms
of the Purchase Agreement, the Merger Agreement and the BOCI Debentures.

     A. Basis for Supporting Legal Opinion. The following is the basis for our
supporting legal opinion for the requested issuance and delivery of the BOCI
Securities and the EEGC Securities free of any restrictive legend.

        1. Our review and analysis of Rule 504 of Regulation D of the Securities
Act of 1933 (the "Securities Act"), as revised, effective as of April 7, 1999;
Chapter 80A of the Minnesota Statutes, 1986 (the "Minnesota Act"); and the
Regulations promulgated thereunder (the "Minnesota Regulations") which are
collectively referred to herein as the "Minnesota Statutes", as they apply to
the proposed issuance of the BOCI Securities and the EEGC Securities.

        2. Our review and analysis of a resolution of the Board of Directors of
BOCI dated June __, 2004.

        3. Our review and analysis of a resolution of the Board of Directors of
EEGC dated June __, 2004.

        4. Our review of the Merger Agreement and the Certificate of Merger to
be filed pursuant to the Merger Agreement pursuant to which Acquisition is to be
merged with and into BOCI, pursuant to which BOCI will survive as a wholly-owned
subsidiary of EEGC , which review was taken in connection with our analysis of
Section 3(a)(9) of the Securities Act.

                                      C-61

<PAGE>

        5. Our review and analysis of the Purchase Agreement and the Merger and
discussions with representatives of BOCI and the Investor that:

           (a) the BOCI Securities are to be purchased by the Investor from BOCI
on or about June __, 2004;

           (b) at the time the BOCI Securities were purchased, and within the
contemplation of Regulation D of the Securities Act,

               (i) BOCI was not a "reporting company";

               (ii) BOCI was not an "investment company";

               (iii) BOCI was not a development stage company that either had no
specific business plan or purpose or had indicated that its business plan was to
engage in a merger or acquisition with an unidentified company or entity;

               (iv) BOCI had not utilized Rule 504 within the last twelve
calendar months;

               (v) the dollar amount of the offering of the BOCI Securities
(including the BOCI Securities) would not exceed $1,000,000.00; and

               (vi) the Investor of the BOCI Securities qualifies as an
"accredited investor", the Investor was a bona fide resident of the State of
Minnesota, and was not, prior to, nor would be subsequent to, the Merger, an
"affiliate" of BOCI, Acquisition or EEGC.

     B. New Rule 504. On April 7, 1999, revisions to Rule 504 went into effect
which prohibit general solicitation and general advertising of the offering by
the issuer and which provide that securities issued under the Rule will be
restricted, unless certain specified conditions are met. These conditions are:

        1. The transaction is registered under a state law requiring public
filing and delivery of a disclosure document prior to sale;1 or

        2. The securities are issued under a state law exemption that permits
general solicitation and general advertising so long as sales are made only to
"accredited investors" as the term is defined in Regulation D.

---------------------------------
1  For sales to occur in a state without such state law, the transactions must
be registered in a state with such law and the disclosure document filed in
that state must be delivered to all purchasers before sale in both states.

                                      C-62

<PAGE>

          Thus, if the securities are issued under a state law exemption that
permits general solicitation and general advertising (so long as sales are made
only to accredited investors), the securities are not restricted under Rule 504.

     C. Application of Minnesota Statutes. The BOCI Securities are to be
purchased by a resident of Minnesota (i.e., the Investor), who is an accredited
investor. Section 80A.15.2(a)(1) of the Minnesota Act specifically exempts from
the securities registration requirements of Section 80A.08 of the Minnesota Act,
offers and sales made to not more than 10 persons in Minnesota in any twelve
month period by the same issuer, under any exception under Section 3(b) of the
Securities Act. Rule 504 of Regulation D is promulgated under Section 3(b) of
the Securities Act. Still further, Section 80A.15.2(a)(1) specifically permits
general solicitation and advertising if the securities are sold under an
exemption under Section 3(b) of the Securities Act.

     Since the BOCI Common Stock will be sold to an accredited investor pursuant
to Rule 504, the BOCI Common Stock may be freely traded if it is issued
"[e]xclusively according to [a] state law exemption[] from registration [i.e.,
the Minnesota Statutes consisting of Section 80A.15.2(a)(1)] that permit[s]
general solicitation and general advertising so long as sales are made only to
`accredited investors'". Therefore, the BOCI Common Stock may be issued without
a restriction and may be freely traded pursuant to Rule 504. This includes the
issuance of the Escrow Shares under the Purchase Agreement and the Security
Shares and Additional Security Shares under the Merger Agreement and the
Purchase Agreement.

     D. The Merger and Section 3(a) of the Securities Act. Prior to the Merger
of Acquisition into BOCI, the BOCI Securities were issued by BOCI to the
Investor. Pursuant to the Merger, the BOCI Common Stock will be canceled and
EEGC will issue to the Escrow Agent (as defined in the Purchase Agreement)
Security Shares, and potentially in the future Additional Security Shares, to
replace the Escrow Shares and into which the BOCI Debentures may be converted
and delivered to the Investor or its assigns pursuant to the terms of the
Purchase Agreement and BOCI Debentures. By virtue of operation of law and the
Merger Agreement, EEGC will assume and be responsible for all BOCI obligations,
including those of BOCI under and with respect to the BOCI Securities.

     Section 3(a)(9) exempts any security exchanged by the issuer with "its"
security holders. The Commission has interpreted this language as requiring that
both the security issued and the security surrendered in the exchange be those
of the same issuer. According to Professor Hicks,2 Section 3(a)(9) is available
for certain intracorporate reorganizations where the exchange of securities is
NOT made by the ORIGINAL issuer, where the security issued is that of issuer B
but the security surrendered is that of what was issuer A.

     There are two related No-Action Letters which are virtually perfectly on
point. Pacwest Bancorp, SEC No-Action Letter. 1979 WL 14720 [1979-1980 Transfer
Binder] Fed. Sec. L. Rep. (CCH) Paragraph 82, 376 (October 24, 1979), and
Pacwest Bancorp, SEC No-Action Letter 1979 WL 13112 (October 12, 1979).

-----------------------------
2  Hicks, Exempted Transactions Under the Securities Act of 1933, West Group,
1999, Volume 7.  See generally, Section 2.04 [1], beginning at page 2-35.

                                      C-63

<PAGE>

     At the time of the proposed merger into a wholly-owned subsidiary of
Pacwest Bancorp ("Pacwest"), First State Bank ("First State") had issued and
outstanding, debentures that were convertible into its common stock. First State
was to be the surviving company. Under the merger agreement, Pacwest, a
multibank holding company, and First State were to enter into a supplemental
indenture with the trustees providing for the substitution of Pacwest common
stock for First State common stock as the underlying security into which the
debentures were convertible. Pacwest was to assume the obligation to issue its
common stock upon conversion of the debentures, but was not to assume the
obligations of First State to pay the debentures in accordance with their terms.
In relying on Section 3(a)(9) to exempt the issuance of Pacwest common upon
conversion of the debentures, counsel to Pacwest presented two reasons why its
client should be deemed the same issuer:

          1. Pacwest should be deemed the issuer of the conversion privilege
     that the debenture holders of First State possessed by reason of the
     supplemental indenture; and

          2. Pacwest should be considered as the issuer of the debentures by
     assuming the obligations of First State with respect to conversion.

     The SEC staff rejected both arguments and found Section 3(a)(9)
inapplicable. However, in a supplementary request to the staff, Pacwest
announced its intention to assume First State's obligation to pay principal,
interest, and premium, if any, on the debentures. On these new facts, which the
SEC staff noted were absent from the original no-action request, the staff
stated that Section 3(a)(9) applied.

     According to Professor Hicks, the SEC staff continues to follow the Pacwest
position and allows a person who seeks Section 3(a)(9) issuer status for
obligations it did not originate but subsequently assumes primary liability. The
original issuer might be affiliated or nonaffiliated with the new issuer. Under
either circumstance, the issuance of the parent's stock upon conversion of the
subsidiary's debt securities will constitute an exempted exchange.

     Since EEGC will by operation of law and the Merger Agreement, assume and be
responsible for the payment of principal and interest on the BOCI Debentures,
the issuance of the EEGC Common Stock upon conversion of the BOCI Debentures
will constitute an exempt exchange.

     Therefore, the subject transaction would be exempt from registration, and
the EEGC Securities, including the issuance of the Security Shares and
Additional Security Shares and the delivery of such shares to the Investor or
its assigns upon conversion of the BOCI Debentures in accordance with the terms
thereof, the Merger Agreement and the Purchase Agreement will remain freely
tradable.

     E. Supporting Legal Opinion. Accordingly, based upon the above we are of
the opinion as follows with respect to the issuance of the BOCI Securities and
the EEGC Securities, including the Escrow Shares, the Security Shares and the
Additional Security Shares:

                                      C-64

<PAGE>

          1. Assuming that the sale of the BOCI Securities (and the EEGC
     Securities) does not exceed the aggregate amount of $1,000,000 (which to
     our knowledge is correct based solely on our review of the Merger
     Agreement, the Purchase Agreement and the BOCI Debentures), that the facts
     given to us by management of both companies are true and correct, and that
     the other conditions of Rule 504 and the applicable Minnesota Statutes (as
     they relate to the facts given to us) are met (which to our knowledge is
     correct based solely on our review of the Merger Agreement, the Purchase
     Agreement and the BOCI Debentures), the issuance of the BOCI Securities
     will be exempt from registration pursuant to Rule 504 of Regulation D and
     the applicable Minnesota Statutes. Consequently, when issued, the EEGC
     Securities may be issued without a restrictive legend, may be delivered to
     the Investor or its assigns in accordance with the Purchase Agreement and
     the BOCI Debentures, and may be freely traded except by affiliates of
     either company.

          2. Assuming that the sale of the BOCI Securities (and the EEGC
     Securities) does not exceed the aggregate amount of $1,000,000.00 (which to
     our knowledge is correct based solely on our review of the Merger
     Agreement, the Purchase Agreement and the BOCI Debentures), that the
     representations in the Purchase Agreement given to us are true and correct,
     and that the other conditions of Rule 504 and the applicable Minnesota
     Statutes (as they relate to the facts given to us) are met(which to our
     knowledge is correct based solely on our review of the Merger Agreement,
     the Purchase Agreement and the BOCI Debentures), the issuance of the BOCI
     Securities will be exempt from registration pursuant to Rule 504 of
     Regulation D, the applicable Minnesota Statutes, and Section 3(a)(9) of the
     Securities Act. Consequently, when issued, the EEGC Securities may be
     issued without a restrictive legend and may be freely traded except by
     affiliates of either company. This would also include the issuance of the
     Security Shares pursuant to the Merger Agreement and of the Additional
     Security Shares pursuant to the Purchase Agreement and the delivery of any
     such shares to the Investor or its assigns pursuant to the Purchase
     Agreement and the BOCI Debentures.

          3. Accordingly, pursuant to Rule 504, the applicable Minnesota
     Statutes, and Section 3(a)(9) of the Securities Act, you may issue the BOCI
     Securities and, subsequently, the EEGC Securities, without a restrictive
     legend, and the BOCI Securities and the EEGC Securities are, and will be,
     available for immediate resale by non-affiliates of BOCI and EEGC.

          4. Finally, that BOCI and EEGC, through their respective Board of
     Directors, have taken all necessary and required corporate action to cause
     the issuance and delivery of the Security Shares in accordance with the
     Merger Agreement. Further, that the Security Shares and Additional Security
     Shares when issued in accordance with the Merger Agreement, the Purchase
     Agreement and this opinion, will be duly authorized, validly issued and
     non-assessable.

     Our above opinions are subject to the following qualifications:

     1. Members of our firm are qualified to practice law in the State of
California and we express no opinion as to the laws of any jurisdictions except
for those of California, the securities laws of Minnesota referred to herein and

                                      C-65

<PAGE>

the United States of America referred to herein. For the purposes of rendering
this opinion, we have assumed that if a court applies the laws of a jurisdiction
(other than the Minnesota securities laws referred to herein) other than the
laws of California, the laws of such other jurisdiction are identical in all
material respects to the comparable laws of the State of California.

     2. The opinions set forth herein are expressed as of the date hereof and
remain valid so long as the documents, instruments, records and certificates we
have examined and relied upon as noted above, are unchanged and the assumptions
we have made, as noted above, are valid.

     This opinion is furnished by us as special securities and acquisition
counsel to BOCI and may only be relied upon by you and Acquisition and in
connection with the issue of Security Shares or Additional Security Shares, by
your transfer agent in connection with any instruction letters from you to your
transfer agent regarding their authorization to issue shares of Security Shares
or additional Security Shares without restrictive legends. It may not be used or
relied upon by you for any other purpose or by any other person, nor may copies
be delivered to any other person, without in each instance our prior written
consent.

     Please have all stock certificates issued in the name of the Investor shown
on Exhibit A delivered to the office of Gottbetter & Partners, LLP, 488 Madison
Avenue, New York, NY 10017, Attention: Adam Gottbetter, Esq., as that firm is
acting on behalf of the issuer as closing escrow agent with respect to the
transaction referred to herein.

Very truly yours,

Hand & Hand
a professional corporation

                                      C-66

<PAGE>

                                    EXHIBIT A

                                                         Principal Amount of
Name of Investor                   Purchase Price     BOCI Convertible Debenture

HEM Mutual Assurance LLC            $1,000,000                $1,000,000

Stock Certificate Denominations for the Security Shares:

4 certificates each for 5,000,000 shares
12 certificates each for 1,000,000 shares
20 certificates each for 500,000 shares
20 certificates each for 250,000 shares
18 certificates each for 100,000 shares
20 certificates each for 50,000 shares
20 certificates each for 10,000 shares

                                      C-67

<PAGE>

                                 EXHIBIT 6.1(d)

                      Instruction Letter to Transfer Agent
                      ------------------------------------

                                  June __, 2004

Interwest Transfer Company, Inc.
1981 East Murray Holladay Road, Suite 100
Salt Lake City, Utah 84117

         RE:  Empire Energy Corporation International

Dear Sirs:

     The purpose of this letter is to authorize Interwest Transfer Company, Inc.
to rely upon the attached legal opinion of Jehu Hand, in connection with the
issuance of 50,000,000 shares of Empire Energy Corporation International common
stock. Jehu Hand is acting as special counsel to Empire Energy Corporation
International on a complex business transaction.

         Please do not hesitate to contact us for additional assistance with
this matter.

                                            Sincerely yours,

                                            EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

                                            By: __________________________
                                                    John C. Garrison,
                                                    President

                                      C-68

<PAGE>

                                 EXHIBIT 6.1(e)

                             EEGC ACQUISITION, INC.

                             OFFICER'S CERTIFICATE
                             ---------------------

     I, John C. Garrison, being the President of EEGC Acquisition, Inc., a
Kansas corporation (the "Company"), pursuant to Section 6.1(a) of that certain
Agreement and Plan of Merger (the "Merger Agreement"), dated as of June __,
2004, by and between the Company, Empire Energy Corporation International and
Bob Owen & Company, Inc., do hereby certify on behalf of the Company that
attached hereto is a copy of the resolutions duly adopted by the Board of
Directors of the Company authorizing the execution, delivery and performance of
the Merger Agreement and all exhibits and documents related thereto by the
Company and all other necessary or proper corporate action to enable the Company
to comply with the terms thereunder.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on behalf of
the Company this __ day of June, 2004.

                                            EEGC ACQUISITION, INC.

                                            By:  /s/
                                               -------------------------------

                                      C-69

<PAGE>

                                 EXHIBIT 6.1(f)

                     EMPIRE ENERGY CORPORATION INTERNATIONAL

                              OFFICER'S CERTIFICATE
                              ---------------------

     I, John C. Garrison, being the President of Empire Energy Corporation
International, a Nevada corporation (the "Company"), pursuant to Section 6.1(f)
of that certain Agreement and Plan of Merger, dated as of June __, 2004, by and
between the Company, EEGC Acquisition, Inc., and Bob Owen & Company, Inc.
("BOCI") (the "Merger Agreement"), do hereby certify on behalf of the Company as
follows:

     1. The representations and warranties of the Company contained in Section
4.1 of the Merger Agreement, as supplemented by the Schedules attached thereto,
were true, correct and complete in all material respects when made (except for
representations and warranties that speak as of a specific date, which
representations and warranties shall be true, correct and complete in all
material respects as of such date) and are true, correct and complete in all
material respects as at the date hereof (except for representations and
warranties that speak as of a specific date, which representations and
warranties shall be true, correct and complete in all material respects as of
such date).

     2. The Company has satisfied in all material respects, all covenants and
agreements required to be satisfied by it under the Merger Agreement on or prior
to the date hereof except such as may have become waived by BOCI in accordance
with the Agreement.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on or behalf
of the Company this __ day of June, 2004.

                                            EMPIRE ENERGY CORPORATION
                                            INTERNATIONAL

                                            By:  /s/
                                               --------------------------------

                                      C-70

<PAGE>

                                 EXHIBIT 6.1(h)

                             EEGC ACQUISITION, INC.

                             OFFICER'S CERTIFICATE
                             ---------------------

     I, John C. Garrison, being the President of EEGC Acquisition, Inc., a
Kansas corporation (the "Company"), pursuant to Section 6.1(f) of that certain
Agreement and Plan of Merger, dated as of June __, 2004, by and between the
Company, Empire Energy Corporation International and Bob Owen & Company, Inc.
("BOCI") (the "Merger Agreement"), do hereby certify on behalf of the Company as
follows:

     1. The representations and warranties of the Company contained in Section
4.1 of the Merger Agreement, as supplemented by the Schedules attached thereto,
were true, correct and complete in all material respects when made (except for
representations and warranties that speak as of a specific date, which
representations and warranties shall be true, correct and complete in all
material respects as of such date) and are true, correct and complete in all
material respects as at the date hereof (except for representations and
warranties that speak as of a specific date, which representations and
warranties shall be true, correct and complete in all material respects as of
such date).

     2. The Company has satisfied in all material respects, all covenants and
agreements required to be satisfied by it under the Merger Agreement on or prior
to the date hereof except such as may have become waived by BOCI in accordance
with the Agreement.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on or behalf
of the Company this __ day of June, 2004.

                                            EEGC ACQUISITION, INC.

                                            By:  /s/
                                               --------------------------------
                                                      John C. Garrison,
                                                      President

                                      C-71

<PAGE>

                                 EXHIBIT 6.2(a)

                            Bob Owen & Company, Inc.

                              OFFICER'S CERTIFICATE
                              ---------------------

     I, Dave Owen, being the President and Chief Executive Officer of Bob Owen &
Company, Inc., a Kansas corporation (the "Company"), pursuant to Section 6.2(a)
of that certain Agreement and Plan of Merger (the "Merger Agreement"), dated as
of June __, 2004, by and between the Company, EEGC Acquisition, Inc. and Empire
Energy Corporation International, do hereby certify on behalf of the Company
that attached hereto is a copy of the resolutions duly adopted by the Board of
Directors of the Company authorizing the execution, delivery and performance of
the Merger Agreement and all exhibits and documents related thereto by the
Company and all other necessary or proper corporate action to enable the Company
to comply with the terms thereunder.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on behalf of
the Company this __ day of June, 2004.

                                            Bob Owen & Company, Inc.

                                            By:  /s/
                                               --------------------------------
                                                      Dave Owen
                                                      President and Chief
                                                      Executive Officer

                                      C-72

<PAGE>

                                 EXHIBIT 6.2(b)

                                                                   June __, 2004

Empire Energy Corporation International
11011 King St., Suite 260
Overland Park, KS 66210

Attn:  John C. Garrison, President

Gentlemen:

     We have acted as counsel to Bob Owen & Company, Inc., a Kansas corporation
("BOCI"), in connection with the Agreement and Plan of Merger (the "Agreement")
dated as of June __, 2004, by and between BOCI, Empire Energy Corporation
International (the "Company") and EEGC Acquisition, Inc., a wholly owned
subsidiary of the Company. The Agreement and all other documents, instruments,
agreements and certificates to be delivered pursuant thereto are herewith
referred to as the "Transaction Documents."

     In connection with this opinion, we have examined the Transaction Documents
and such other documents, agreements and records of BOCI as in our judgment are
necessary or appropriate to enable us to render the opinions expressed below. In
our examination of such documents, we have assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and
the conformity to the original documents of all documents submitted to us as
copies, and we have relied upon the aforesaid documents with respect to the
accuracy of material factual matters contained therein. We have also assumed,
without verification, the due authorization, execution and delivery by each
party thereto other than BOCI of each of the Transaction Documents and that such
agreements constitute the legal, valid and binding obligations of such parties,
and are enforceable against such parties in accordance with their respective
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors'
rights generally or by the exercise of judicial discretion in accordance with
general principles of equity.

     As to factual matters relevant to our opinion which were not independently
established, we have also relied, without independent verification, on the
representations and warranties of BOCI contained in the Transaction Documents
and in certificates furnished by officers of BOCI in connection with the related
transactions, copies of which certificates are attached hereto.

     In instances where we have expressed an opinion "to our knowledge," the
term "knowledge" refers to the actual knowledge of the attorneys at our firm who
have rendered legal services in connection with the Agreement and related

                                      C-73

<PAGE>

transactions, and we have not undertaken any independent investigation or made
inquiries of any outside third parties with respect to such matters.

     Based upon the foregoing and subject to the assumptions, limitations,
qualifications and exceptions stated herein, we are of the opinion that:

     (1) BOCI has been duly incorporated and is validly existing and in good
standing under the laws of the State of Kansas.

     (2) Based upon representations of BOCI, as of the date hereof and after
giving effect to the Closing (as defined in the Agreement), the number of shares
of capital stock that BOCI is authorized to issue is 50,000,000 shares of common
stock, par value $.001 (the "Common Stock") and its issued and outstanding
capital stock consists of 2,500,000 shares of Common Stock, [2,500,000] shares
of which are held by David Owen and 47,500,000 of which are held in escrow
pursuant to the Purchase Agreement and will be canceled pursuant to the terms of
the Merger Agreement. All such outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid and non-assessable. There are
no outstanding rights, options, warrants or other securities which may be
convertible into equity securities of BOCI other than the BOCI Debenture, which
BOCI issued to HEM Mutual Assurance LLC. There are no preemptive or other rights
to subscribe for or purchase any Common Stock or other securities of BOCI.

     (3) BOCI has the full legal power and authority to enter into the
Agreement. The Agreement, and the completion of the transactions contemplated
thereby have been duly and validly authorized by all necessary corporate action
by BOCI. The Agreement has been duly and validly executed and delivered by and
on behalf of BOCI, is a valid and binding Agreement of BOCI and is enforceable
against BOCI in accordance with its terms. No approval, authorization, order,
consent, registration, filing, qualification, license or permit of or with any
court, regulatory, administrative or other governmental body is required for the
execution and delivery of the Agreement by BOCI or the completion of the
transactions contemplated by the Agreement.

     (4) The execution and performance of the Agreement, and the consummation of
the transactions therein contemplated, did not and will not conflict with or
violate any law, statute, judgment, decree, order, rule or regulation of any
court or governmental body (including the Securities and Exchange Commission)
having jurisdiction over BOCI.

     (5) No action, suit, claim, investigation or proceeding is pending or, to
our knowledge, threatened against BOCI.

     The opinions expressed herein are subject to the following additional
limitations, qualifications and exceptions:

     (a) We disclaim any opinion as to (i) any provisions in any documents which
purport to waive any procedural due process rights, and (ii) any provisions
relating to choice of governing law, which choice may depend upon factual
circumstances and the laws of other jurisdictions.

     (b) We note that we are members of the bar of the State of California. To
the extent that the governing law with respect to any matters covered by this
opinion is the law of any jurisdiction other than the state of California or the

                                      C-74

<PAGE>

federal securities law of the United States, we have assumed that the law of
such other jurisdiction is identical to California law.

     (c) We express no opinion on the validity, binding effect or enforceability
under the provisions of the Transaction Documents: (i) which waive any rights
afforded to any party thereto under any statute or constitutional provision;
(ii) which waive broadly or vaguely stated rights or future rights, or waive
certain rights or defenses to obligations, in each case where such waivers are
against statutes, laws or public policy; (iii) that provide that injunctive
relief or specific performance may be available as a remedy for breach of any of
the Transaction Documents, or (iv) the breach of which a court of competent
jurisdiction concludes is not material or does not adversely affect the
non-breaching party.

     (d) Insofar as the indemnity provisions of any of the Transaction Documents
may encompass indemnification with respect to violation of law, enforcement
thereof may be limited by public policies underlying such laws.

     (e) Our opinions on the binding effect and enforceability of any obligation
are subject to limitations resulting from the effects of: (i) bankruptcy,
insolvency, reorganization, receivership, moratorium, fraudulent conveyance,
arrangement and assignment for the benefit of creditors laws and similar laws or
judicially developed doctrines, and (ii) general principles of equity, whether
applied by a court of law or a court of equity.

     (f) We express no opinion on federal patent, copyright or trademark, state
trademark or other federal or state intellectual property laws or regulations.

     This opinion is given as of the date hereof and is necessarily limited to
the laws now in effect and the facts and circumstances known to us on the date
hereof, and we do not undertake or assume any obligations, to review update or
supplement this opinion to reflect any facts, circumstances which may hereafter
come to our attention or any changes in laws which may hereafter occur.

     These opinions are limited to the matters expressly stated herein and are
rendered solely for your benefit and may not be quoted or relied upon for any
other purpose or by any other person.

                                         Very truly yours,

                                         Hand & Hand, a professional corporation

                                      C-75

<PAGE>

                                 EXHIBIT 6.2(c)

                                                                   June __, 2004

Empire Energy Corporation International
11011 King St., Suite 260
Overland Park, KS 66210

Attn:  John C. Garrison, President

         Re:      Supporting Legal Opinion for Request to Issue Free Trading
                  Securities Pursuant to Rule 504 for Empire Energy Corporation
                  International

Dear Sirs:

     The undersigned has been retained as special securities and acquisition
counsel to Empire Energy Corporation International, a Nevada corporation,
("EEGC") and Bob Owen & Company, Inc., a Kansas corporation ("BOCI"). We can
advise you that prior to the transactions referred to herein, BOCI was not
affiliated with EEGC.

     The subject of this letter are securities to be issued by BOCI on or about
June __, 2004, pursuant to a Convertible Debenture Purchase Agreement ("Purchase
Agreement") dated June __, 2004 between BOCI and the Investor (as defined
below), to wit, the BOCI 1.5% Convertible Debenture in the aggregate principal
amount of Four Hundred Eighty Five Thousand Dollars ($485,000) (the "First
Debenture") and the BOCI 1.5% Convertible Debenture in the aggregate principal
amount of Fifteen Thousand Dollars ($15,000) (the "Second Debenture"; and,
together with the First Debenture, the "BOCI Debentures"), together with the
underlying shares of the BOCI common stock, par value $.001 (the "BOCI Common
Stock"), into which the BOCI Debentures are convertible, from time to time. The
Purchase Agreement also requires BOCI and/or its successor in interest, to issue
50,000,000 shares of BOCI Common Stock as a "security stock" (the "Escrow
Shares") in support of the offer and sale of the BOCI Debentures. The BOCI
Debentures, the BOCI Common Stock and the Escrow Shares may be referred to
collectively herein as the "BOCI Securities."

     The BOCI Debentures are to be issued to the accredited investor listed on
Exhibit A to this opinion, an accredited Minnesota resident or domiciliary (the
"Investor"). Under and pursuant to the terms of the BOCI Debentures and the
Purchase Agreement, the Investor may elect to convert all or some of the BOCI
Debentures into the BOCI Common Stock.

     Following the issuance of the BOCI Debentures on or about June __, 2004,
EEGC Acquisition, Inc., a Kansas corporation ("Acquisition"), a wholly owned
subsidiary of EEGC, will be merged with and into BOCI (the "Merger") pursuant to
the Agreement and Plan of Merger dated as of June __, 2004 by and among EEGC,

                                      C-76

<PAGE>

Acquisition and BOCI (the "Merger Agreement"). Pursuant to the Merger, the BOCI
Common Stock will be canceled and EEGC shall issue 50,000,000 shares of its
common stock, par value $0.001 per share (the "EEGC Common Stock") into escrow
pursuant to the terms of the Merger Agreement and the Purchase Agreement as a
"security stock" to replace the Escrow Shares (the "Security Shares"). Up to all
of the Security Shares and up to all of any additional shares of EEGC Common
Stock that may in the future be issued and deposited into escrow by EEGC in
accordance with the Purchase Agreement (the "Additional Security Shares") may be
released from escrow from time to time to the Investor or its assigns to satisfy
EEGC's obligations upon conversion of the Debentures by the Investor or its
assigns in accordance with the terms of the Purchase Agreement and the
Debentures. This letter addresses the validity of the issuance of the Security
Shares and Additional Security Shares and the delivery of the Security Shares
and Additional Security Shares to the Investor or its assigns from time-to-time
in accordance with the Merger Agreement, Purchase Agreement and BOCI Debentures.
The BOCI Debentures, EEGC Common Stock, Security Shares and Additional Security
Shares, are referred to collectively herein as the "EEGC Securities."

     You have requested that we provide you with separate legal opinions (i)
covering the issuance of the Security Shares and any Additional Security Shares
to the effect that the BOCI Debentures and the BOCI Common Stock, and the EEGC
Securities, as the case may be, may be issued without a restrictive legend and
may be freely traded; and (ii) covering the issuance of EEGC Common Stock as
Security Shares and Additional Security Shares pursuant to the terms of the
Merger Agreement, Purchase Agreement and the BOCI Debentures to the effect that
such shares (or any part thereof) may be issued and subsequently delivered to
the Investor or its assigns upon the receipt by EEGC of any notices of
conversion issued by the Investor or its assigns pursuant to the terms of the
Purchase Agreement and the BOCI Debentures without a restrictive legend and may
be freely traded. This opinion covers any issuance of EEGC Securities and the
delivery of the same to the Investor or its assigns in accordance with the terms
of the Purchase Agreement, the Merger Agreement and the BOCI Debentures.

     A. Basis for Supporting Legal Opinion. The following is the basis for our
supporting legal opinion for the requested issuance and delivery of the BOCI
Securities and the EEGC Securities free of any restrictive legend.

        1. Our review and analysis of Rule 504 of Regulation D of the Securities
Act of 1933 (the "Securities Act"), as revised, Chapter 80A of the Minnesota
Statutes, 1986 (the "Minnesota Act"); and the Regulations contained therein (the
"Minnesota Regulations") which are collectively referred to herein as the
"Minnesota Statutes", as they apply to the proposed issuance of the BOCI
Securities and the EEGC Securities.

        2. Our review and analysis of a resolution of the Board of Directors of
BOCI dated June __, 2004.

        3. Our review and analysis of a resolution of the Board of Directors of
EEGC dated June __, 2004.

                                      C-77

<PAGE>

        4. Our review of the Merger Agreement and the Certificate of Merger to
be filed pursuant to the Merger Agreement pursuant to which Acquisition is to be
merged with and into BOCI, pursuant to which BOCI will survive as a wholly-owned
subsidiary of EEGC , which review was taken in connection with our analysis of
Section 3(a)(9) of the Securities Act.

        5. Our review and analysis of the Purchase Agreement and the Merger and
discussions with representatives of BOCI and the Investor that:

           (a) the BOCI Securities are to be purchased by the Investor from BOCI
on or about June __, 2004;

           (b) at the time the BOCI Securities were purchased, and within the
contemplation of Regulation D of the Securities Act,

               (i) BOCI was not a "reporting company";

               (ii) BOCI was not an "investment company";

               (iii) BOCI was not a development stage company that either had no
specific business plan or purpose or had indicated that its business plan was to
engage in a merger or acquisition with an unidentified company or entity;

               (iv) BOCI had not utilized Rule 504 within the last twelve
calendar months;

               (v) the dollar amount of the offering of the BOCI Securities
(including the BOCI Securities) would not exceed $1,000,000.00; and

               (vi) the Investor of the BOCI Securities qualifies as an
"accredited investor", the Investor was a bona fide resident of the State of
Minnesota, and was not, prior to, nor would be subsequent to, the Merger, an
"affiliate" of BOCI, Acquisition or EEGC.

     B. New Rule 504. On April 7, 1999, revisions to Rule 504 went into effect
which prohibit general solicitation and general advertising of the offering by
the issuer and which provide that securities issued under the Rule will be
restricted, unless certain specified conditions are met. These conditions are:

        1. The transaction is registered under a state law requiring public
filing and delivery of a disclosure document prior to sale;3 or

        2. The securities are issued under a state law exemption that permits
general solicitation and general advertising so long as sales are made only to
"accredited investors" as the term is defined in Regulation D.

-----------------------------
3  For sale to occur in a state without such a state law, the transactions must
be registered in a state with such a law and the disclosure document filed in
that state must be delivered to all purchasers before sale in both states.

                                      C-78

<PAGE>

          Thus, if the securities are issued under a state law exemption that
permits general solicitation and general advertising (so long as sales are made
only to accredited investors), the securities are not restricted under Rule 504.

     C. Application of Minnesota Statutes. The BOCI Securities are to be
purchased by a resident of Minnesota (i.e., the Investor), who is an accredited
investor. Section 80A.15.2(a)(1) of the Minnesota Act specifically exempts from
the securities registration requirements of Section 80A.08 of the Minnesota Act,
offers and sales made to not more than 10 persons in Minnesota in any twelve
month period by the same issuer, under any exception under Section 3(b) of the
Securities Act. Rule 504 of Regulation D is promulgated under Section 3(b) of
the Securities Act. Still further, Section 80A.15.2(a)(1) specifically permits
general solicitation and advertising if the securities are sold under an
exemption under Section 3(b) of the Securities Act.

     Since the BOCI Common Stock will be sold to an accredited investor pursuant
to Rule 504, the BOCI Common Stock may be freely traded if it is issued
"[e]xclusively according to [a] state law exemption[] from registration [i.e.,
the Minnesota Statutes consisting of Section 80A.15.2(a)(1)] that permit[s]
general solicitation and general advertising so long as sales are made only to
`accredited investors'". Therefore, the BOCI Common Stock may be issued without
a restriction and may be freely traded pursuant to Rule 504. This includes the
issuance of the Escrow Shares under the Purchase Agreement and the Security
Shares and Additional Security Shares under the Merger Agreement and the
Purchase Agreement.

     D. The Merger and Section 3(a) of the Securities Act. Prior to the Merger
of Acquisition into BOCI, the BOCI Securities were issued by BOCI to the
Investor. Pursuant to the Merger, the BOCI Common Stock will be canceled and
EEGC will issue to the Escrow Agent (as defined in the Purchase Agreement)
Security Shares, and potentially in the future Additional Security Shares, to
replace the Escrow Shares and into which the BOCI Debentures may be converted
and delivered to the Investor or its assigns pursuant to the terms of the
Purchase Agreement and BOCI Debentures. By virtue of operation of law and the
Merger Agreement, EEGC will assume and be responsible for all BOCI obligations,
including those of BOCI under and with respect to the BOCI Securities.

     Section 3(a)(9) exempts any security exchanged by the issuer with "its"
security holders. The Commission has interpreted this language as requiring that
both the security issued and the security surrendered in the exchange be those
of the same issuer. According to Professor Hicks,4 Section 3(a)(9) is available
for certain intracorporate reorganizations where the exchange of securities is
NOT made by the ORIGINAL issuer, where the security issued is that of issuer B
but the security surrendered is that of what was issuer A.

     There are two related No-Action Letters which are virtually perfectly on
point. Pacwest Bancorp, SEC No-Action Letter. 1979 WL 14720 [1979-1980 Transfer
Binder] Fed. Sec. L. Rep. (CCH) Paragraph 82, 376 (October 24, 1979), and
Pacwest Bancorp, SEC No-Action Letter 1979 WL 13112 (October 12, 1979).

-----------------------------
4  Hicks, Exempted Transactions Under the Securities Act of 1933, West Group,
1999, Volume 7.  See generally, Section 2.04 [1], beginning at page 2-35.

                                      C-79

<PAGE>

     At the time of the proposed merger into a wholly-owned subsidiary of
Pacwest Bancorp ("Pacwest"), First State Bank ("First State") had issued and
outstanding, debentures that were convertible into its common stock. First State
was to be the surviving company. Under the merger agreement, Pacwest, a
multibank holding company, and First State were to enter into a supplemental
indenture with the trustees providing for the substitution of Pacwest common
stock for First State common stock as the underlying security into which the
debentures were convertible. Pacwest was to assume the obligation to issue its
common stock upon conversion of the debentures, but was not to assume the
obligations of First State to pay the debentures in accordance with their terms.
In relying on Section 3(a)(9) to exempt the issuance of Pacwest common upon
conversion of the debentures, counsel to Pacwest presented two reasons why its
client should be deemed the same issuer:

          1. Pacwest should be deemed the issuer of the conversion privilege
     that the debenture holders of First State possessed by reason of the
     supplemental indenture; and

          2. Pacwest should be considered as the issuer of the debentures by
     assuming the obligations of First State with respect to conversion.

     The SEC staff rejected both arguments and found Section 3(a)(9)
inapplicable. However, in a supplementary request to the staff, Pacwest
announced its intention to assume First State's obligation to pay principal,
interest, and premium, if any, on the debentures. On these new facts, which the
SEC staff noted were absent from the original no-action request, the staff
stated that Section 3(a)(9) applied.

     According to Professor Hicks, the SEC staff continues to follow the Pacwest
position and allows a person who seeks Section 3(a)(9) issuer status for
obligations it did not originate but subsequently assumes primary liability. The
original issuer might be affiliated or nonaffiliated with the new issuer. Under
either circumstance, the issuance of the parent's stock upon conversion of the
subsidiary's debt securities will constitute an exempted exchange.

     Since EEGC will by operation of law and the Merger Agreement, assume and be
responsible for the payment of principal and interest on the BOCI Debentures,
the issuance of the EEGC Common Stock upon conversion of the BOCI Debentures
will constitute an exempt exchange.

     Therefore, the subject transaction would be exempt from registration, and
the EEGC Securities, including the issuance of the Security Shares and
Additional Security Shares and the delivery of such shares to the Investor or
its assigns upon conversion of the BOCI Debentures in accordance with the terms
thereof, the Merger Agreement and the Purchase Agreement will remain freely
tradable.

     E. Supporting Legal Opinion. Accordingly, based upon the above we are of
the opinion as follows with respect to the issuance of the BOCI Securities and
the EEGC Securities, including the Escrow Shares, the Security Shares and the
Additional Security Shares:

          1. Assuming that the sale of the BOCI Securities (and the EEGC
     Securities) does not exceed the aggregate amount of $1,000,000 (which to
     our knowledge is correct based solely on our review of the Merger

                                      C-80

<PAGE>

     Agreement, the Purchase Agreement and the BOCI Debentures), that the facts
     given to us by management of both companies are true and correct, and that
     the other conditions of Rule 504 and the applicable Minnesota Statutes (as
     they relate to the facts given to us) are met (which to our knowledge is
     correct based solely on our review of the Merger Agreement, the Purchase
     Agreement and the BOCI Debentures), the issuance of the BOCI Securities
     will be exempt from registration pursuant to Rule 504 of Regulation D and
     the applicable Minnesota Statutes. Consequently, when issued, the EEGC
     Securities may be issued without a restrictive legend, may be delivered to
     the Investor or its assigns in accordance with the Purchase Agreement and
     the BOCI Debentures, and may be freely traded except by affiliates of
     either company.

          2. Assuming that the sale of the BOCI Securities (and the EEGC
     Securities) does not exceed the aggregate amount of $1,000,000.00 (which to
     our knowledge is correct based solely on our review of the Merger
     Agreement, the Purchase Agreement and the BOCI Debentures), that the
     representations in the Purchase Agreement given to us are true and correct,
     and that the other conditions of Rule 504 and the applicable Minnesota
     Statutes (as they relate to the facts given to us) are met(which to our
     knowledge is correct based solely on our review of the Merger Agreement,
     the Purchase Agreement and the BOCI Debentures), the issuance of the BOCI
     Securities will be exempt from registration pursuant to Rule 504 of
     Regulation D, the applicable Minnesota Statutes, and Section 3(a)(9) of the
     Securities Act. Consequently, when issued, the EEGC Securities may be
     issued without a restrictive legend and may be freely traded except by
     affiliates of either company. This would also include the issuance of the
     Security Shares pursuant to the Merger Agreement and of the Additional
     Security Shares pursuant to the Purchase Agreement and the delivery of any
     such shares to the Investor or its assigns pursuant to the Purchase
     Agreement and the BOCI Debentures.

          3. Accordingly, pursuant to Rule 504, the applicable Minnesota
     Statutes, and Section 3(a)(9) of the Securities Act, you may issue the BOCI
     Securities and, subsequently, the EEGC Securities, without a restrictive
     legend, and the BOCI Securities and the EEGC Securities are, and will be,
     available for immediate resale by non-affiliates of BOCI and EEGC.

          4. Finally, that BOCI and EEGC, through their respective Board of
     Directors, have taken all necessary and required corporate action to cause
     the issuance and delivery of the Security Shares in accordance with the
     Merger Agreement. Further, that the Security Shares and Additional Security
     Shares when issued in accordance with the Merger Agreement, the Purchase
     Agreement and this opinion, will be duly authorized, validly issued and
     non-assessable.

     Our above opinions are subject to the following qualifications:

     1. Members of our firm are qualified to practice law in the State of
California and we express no opinion as to the laws of any jurisdictions except
for those of California, the securities laws of Minnesota referred to herein and
the United States of America referred to herein. For the purposes of rendering
this opinion, we have assumed that if a court applies the laws of a jurisdiction
(other than the Minnesota securities laws referred to herein) other than the
laws of California, the laws of such other jurisdiction are identical in all
material respects to the comparable laws of the State of California.

                                      C-81

<PAGE>

     2. The opinions set forth herein are expressed as of the date hereof and
remain valid so long as the documents, instruments, records and certificates we
have examined and relied upon as noted above, are unchanged and the assumptions
we have made, as noted above, are valid.

     This opinion is furnished by us as special securities and acquisition
counsel to BOCI and may only be relied upon by you and Acquisition and, in
connection with the issue of Security Shares or Additional Security Shares, by
your transfer agent in connection with any instruction letters from you to your
transfer agent regarding their authorization to issue shares of Security Shares
or Additional Security Shares without restrictive legends. It may not be used or
relied upon by you for any other purpose or by any other person, nor may copies
be delivered to any other person, without in each instance our prior written
consent.

     Please have all stock certificates issued in the name of the Investor shown
on Exhibit A delivered to the office of Gottbetter & Partners, LLP, 488 Madison
Avenue, New York, NY 10017, Attention: Adam Gottbetter, Esq., as that firm is
acting on behalf of the issuer as closing escrow agent with respect to the
transaction referred to herein.

Very truly yours,

Hand & Hand
a professional corporation

                                      C-82

<PAGE>

                                    EXHIBIT A

                                                         Principal Amount of
Name of Investor                  Purchase Price      BOCI Convertible Debenture

HEM Mutual Assurance LLC            $1,000,000               $1,000,000

Stock Certificate Denominations for the Security Shares:

4 certificates each for 5,000,000 shares
12 certificates each for 1,000,000 shares
20 certificates each for 500,000 shares
20 certificates each for 250,000 shares
18 certificates each for 100,000 shares
20 certificates each for 50,000 shares
20 certificates each for 10,000 shares

                                      C-83

<PAGE>

                                 EXHIBIT 6.2(e)

                            Bob Owen & Company, Inc.

                             OFFICER'S CERTIFICATE
                             ---------------------

     I, Dave Owen, being the President and Chief Executive Officer of Bob Owen &
Company, Inc., a Kansas corporation (the "Company"), pursuant to Section 6.2(e)
of that certain Agreement and Plan of Merger, dated as of June __, 2004, by and
between the Company, EEGC Acquisition, Inc. and Empire Energy Corporation
International ("EEGC") (the "Merger Agreement"), do hereby certify on behalf of
the Company as follows:

     1. The representations and warranties of the Company contained in Section
4.2 of the Merger Agreement, as supplemented by the Schedules attached thereto,
were true, correct and complete in all material respects when made (except for
representations and warranties that speak as of a specific date, which
representations and warranties shall be true, correct and complete in all
material respects as of such date) and are true, correct and complete in all
material respects as at the date hereof (except for representations and
warranties that speak of a specific date, which representations and warranties
shall be true, correct and complete in all material respects as of such date).

     2. The Company has satisfied in all material respects, all covenants and
agreements required to be satisfied by it under the Merger Agreement on or prior
to the date hereof except such as may have become waived by EEGC in accordance
with this Agreement.

     IN WITNESS WHEREOF, I have executed this Officer's Certificate on behalf of
the Company this __ day of June, 2004.

                                            Bob Owen & Company, Inc.

                                            By:  /s/  David C. Owen
                                                 ------------------------------
                                                      David C. Owen
                                                      President and Chief
                                                      Executive Officer

                                      C-84EXHIBIT 10.1
--------------------------------------------------------------------------------

              HOLLYWOOD MEDIA CORP. 401(K) RETIREMENT SAVINGS PLAN

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

<PAGE>

              CROSS-TESTED/AGE-WEIGHTED 401(K) PROFIT SHARING PLAN

         The undersigned, Hollywood Media Corp. ("Employer"), by executing this
Adoption Agreement, elects to establish a retirement plan and trust ("Plan")
under the Volume Submitter Cross-Tested Defined Contribution Plan and Trust .
The Employer, subject to the Employer's Adoption Agreement elections, adopts
fully the Prototype Plan and Trust provisions. This Adoption Agreement, the
basic plan document and any attached appendices or addenda, constitute the
Employer's entire plan and trust document. All section references within this
Adoption Agreement are Adoption Agreement section references unless the Adoption
Agreement or the context indicate otherwise. All article references are basic
plan document and Adoption Agreement references as applicable. Numbers in
parenthesis which follow headings are references to basic plan document
sections. This Plan is established under the IRS volume submitter program.
References in the basic plan document to the prototype plan are not applicable
to this Plan or mean volume submitter plan as the context requires. References
to the prototype sponsor or to the mass submitter mean the volume submitter
practitioner. For all purposes under the basic plan document, the Plan
Administrator shall treat this Adoption Agreement as a nonstandardized adoption
agreement. The Employer makes the following elections granted under the
corresponding provisions of the basic plan document.

                                    ARTICLE I
                                   DEFINITIONS

1. PLAN (1.21). The name of the Plan as adopted by the Employer is Hollywood
Media Corp. 401(k) Retirement Savings Plan .

2. TRUSTEE (1.33). The Trustee executing this Adoption Agreement is: (Choose one
of (a), (b) or (c))

[ X ]    (a)  A DISCRETIONARY TRUSTEE. See Plan Section 10.03[A].

[   ]    (b)  A NONDISCRETIONARY TRUSTEE. See Plan Section 10.03[B].

[   ]    (c)  A TRUSTEE UNDER A SEPARATE TRUST AGREEMENT. See Plan
              Section 10.03[G].

3. EMPLOYEE (1.11). The following Employees are not eligible to participate in
the Plan: (Choose (a) or one or more of (b) through (f) as applicable)3 p.11

[   ]    (a)  NO EXCLUSIONS.

[   ]    (b)  COLLECTIVE BARGAINING EMPLOYEES.

[   ]    (c)  NONRESIDENT ALIENS.

[   ]    (d)  LEASED EMPLOYEES.

[   ]    (e)  RECLASSIFIED EMPLOYEES.

[ X ]    (f)  EXCLUSIONS BY TYPES OF CONTRIBUTIONS. The following
              classification(s) of Employees are not eligible for the specified
              contributions:

   EMPLOYEE CLASSIFICATION: Limited Service Employees and Temporary Employees
   CONTRIBUTION TYPE:       All Contribution Types

4. COMPENSATION (1.07). The Employer makes the following election(s) regarding
the definition of Compensation for purposes of the contribution allocation
formula under Article III: (Choose one of (a), (b) or (c))4 p.11

[ X ]    (a)  W-2 WAGES INCREASED BY ELECTIVE CONTRIBUTIONS.

[   ]    (b)  CODE SS.3401(A) FEDERAL INCOME TAX WITHHOLDING WAGES INCREASED BY
              ELECTIVE CONTRIBUTIONS.

[   ]    (c)  415 COMPENSATION.

[Note: Each of the Compensation definitions in (a), (b) and (c) includes
Elective Contributions. See Plan Section 1.07(D). To exclude Elective
Contributions, the Employer must elect (g).]

<PAGE>

COMPENSATION TAKEN INTO ACCOUNT. For the Plan Year in which an Employee first
becomes a Participant, the Plan Administrator will determine the allocation of
Employer contributions (excluding deferral contributions) by taking into
account: (Choose one of (d) or (e))

[   ]    (d)  PLAN YEAR. The Employee's Compensation for the entire Plan Year.

[ X ]    (e) COMPENSATION WHILE A PARTICIPANT. The Employee's Compensation only
         for the portion of the Plan Year in which the Employee actually is a
         Participant.

MODIFICATIONS TO COMPENSATION DEFINITION. The Employer elects to modify the
Compensation definition elected in (a), (b) or (c) as follows. (Choose one or
more of (f) through (k) as applicable)

[  ]     (f) FRINGE BENEFITS. The Plan excludes all reimbursements or other
         expense allowances, fringe benefits (cash and noncash), moving
         expenses, deferred compensation and welfare benefits.

[   ]    (g)  ELECTIVE CONTRIBUTIONS. The Plan excludes a Participant's
         Elective Contributions. See Plan Section 1.07(D).

[   ]    (h)  EXCLUSION. The Plan excludes Compensation in excess of:          .
                                                                      ---------

[   ]    (i)  BONUSES. The Plan excludes bonuses.

[   ]    (j)  OVERTIME. The Plan excludes overtime.

[   ]    (k)  COMMISSIONS. The Plan excludes commissions.

5. PLAN YEAR/LIMITATION YEAR (1.24). Plan Year and Limitation Year mean the
12-consecutive month period (except for a short Plan Year) ending every: (Choose
one of (a) or (b). Choose (c) if applicable)

[X] (a) DECEMBER 31.

[   ]    (b)  OTHER:             .
                     ------------

[   ]    (c)  SHORT PLAN YEAR: commencing on:         and ending on:          .
                                              --------              -----------

6. EFFECTIVE DATE (1.10). The Employer's adoption of the Plan is a: (Choose one
of (a) or (b))

[   ]    (a)  NEW PLAN. The Effective Date of the Plan is:               .
                                                           --------------

[ X ]    (b)  RESTATED PLAN. The restated Effective Date is:  January 1, 2004.
                                                             ----------------

         This Plan is an amendment and restatement of an existing retirement
         plan(s) originally established effective as of: January 1, 2001 .

7. HOUR OF SERVICE/ELAPSED TIME METHOD (1.15). The crediting method for Hours of
Service is: (Choose one or more of (a) through (d) as applicable)

[ X ]    (a)  ACTUAL METHOD. See Plan Section 1.15(B).

[   ]    (b)  EQUIVALENCY METHOD. The Equivalency Method is:                 .
                                                             ----------------
         [Note: Insert "daily," "weekly," "semi-monthly payroll periods" or
         "monthly."] See Plan Section 1.15(C).

[   ]    (c)  COMBINATION METHOD. In lieu of the Equivalency Method specified
         in (b), the Actual Method applies for purposes of:                 .
                                                           ----------------

                                       2
<PAGE>

[   ]    (d) ELAPSED TIME METHOD. In lieu of crediting Hours of Service, the
         Elapsed Time Method applies for purposes of crediting Service for:
         (Choose one or more of (1), (2) or (3) as applicable)

     [   ]    (1) Eligibility under Article II.

     [   ]    (2) Vesting under Article V.

     [   ]    (3) Contribution allocations under Article III.

8. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
the Plan must credit by reason of Section 1.30 of the Plan, the Plan credits as
Service under this Plan service with the following predecessor employer(s): N/A

[Note: The Plan Administrator may not credit more than five years of service
immediately preceding the Plan Year in which the service credit first becomes
effective. If the Plan does not credit any additional predecessor service under
this Section 1.30, insert "N/A" in the blank line. The Employer also may elect
to credit predecessor service with specified Participating Employers only. See
the Participation Agreement.] Service with the designated predecessor
employer(s) applies: (Choose one or more of (a) through (d) as applicable)

[   ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[   ]    (c)  CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service:                 .
                                                            ----------------

                                   ARTICLE II
                            ELIGIBILITY REQUIREMENTS

9.       ELIGIBILITY (2.01)

ELIGIBILITY CONDITIONS. To become a Participant in the Plan, an Employee must
satisfy the following eligibility conditions: (Choose one or more of (a) through
(e) as applicable) [Note: If the Employer does not elect (c), the Employer's
elections under (a) and (b) apply to all types of contributions. The Employer as
to deferral contributions may not elect (b)(2) and may not elect more than 12
months in (b)(4) and (b)(5).]

[ X ]    (a) AGE. Attainment of age 18 (not to exceed age 21).

[ X ]    (b) SERVICE. Service requirement. (Choose one of (1) through (5))

     [   ]    (1) One Year of Service.

     [   ]    (2) Two Years of Service, without an intervening Break in Service.
              See Plan Section 2.03(A).

     [   ]    (3) One Hour of Service (immediate completion of Service
              requirement). The Employee satisfies the Service requirement on
              his/her Employment Commencement Date.

     [ X ]    (4) 6 months (not exceeding 24).

     [   ]    (5) An Employee must complete Hours of Service within the time
              period following the Employee's Employment Commencement Date. If
              an Employee does not complete the stated Hours of Service during
              the specified time period (if any), the Employee is subject to the
              One Year of Service requirement. [Note: The number of hours may
              not exceed 1,000 and the time period may not exceed 24 months. If
              the Plan does not require the Employee to satisfy the Hours of
              Service requirement within a specified time period, insert "N/A"
              in the second blank line.]

[   ]    (c) ALTERNATIVE 401(K)/401(M) ELIGIBILITY CONDITIONS. In lieu of the
         elections in (a) and (b), the Employer elects the following eligibility
         conditions for the following types of contributions: (Choose (1) or (2)
         or both if the Employer wishes to impose less restrictive eligibility
         conditions for deferral/Employee
         contributions or for matching contributions)

              (1) [ ] DEFERRAL/EMPLOYEE CONTRIBUTIONS: (Choose one of a. through
              d. Choose e. if applicable)

              a.  [   ] One Year of Service
              b.  [   ] One Hour of Service (immediate completion of
                        Service requirement)
              c.  [   ] ______________ months (not exceeding 12)

                                       3
<PAGE>

              d.  [   ]    An Employee must complete _________ Hours of Service
              within the ____________ time period following an Employee's
              Employment Commencement Date. If an Employee does not complete the
              stated Hours of Service during the specified time period (if any),
              the Employee is subject to the One Year of Service requirement.
              [Note: The number of hours may not exceed 1,000 and the time
              period may not exceed 12 months. If the Plan does not require the
              Employee to satisfy the Hours of Service requirement within a
              specified time period, insert "N/A" in the second blank line.]

              e.  [   ]    Age              (not exceeding age 21)
                               ------------

              (2) [ ] MATCHING CONTRIBUTIONS: (Choose one of f. through i.
              Choose j. if applicable)

              f.  [   ] One Year of Service
              g.  [   ]    One Hour of Service (immediate completion of
              Service requirement)
              h.  [   ]                 months (not exceeding 24)
                           ------------
              i.  [   ]    An Employee must complete ___________ Hours of
              Service within the __________ time period following an Employee's
              Employment Commencement Date. If an Employee does not complete the
              stated Hours of Service during the specified time period (if any),
              the Employee is subject to the One Year of Service requirement.
              [Note: The number of hours may not exceed 1,000 and the time
              period may not exceed 24 months. If the Plan does not require the
              Employee to satisfy the Hours of Service requirement within a
              specified time period, insert "N/A" in the second blank line.]
              j.  [   ] Age __________ (not exceeding age 21)

[   ]    (d)  SERVICE REQUIREMENTS:             .
                                    ------------
              [Note: Any Service requirement the Employer elects in (d) must be
              available under other Adoption Agreement elections or a
              combination thereof.]

[   ]    (e) DUAL ELIGIBILITY. The eligibility conditions of this Section 2.01
         apply solely to an Employee employed by the Employer after . If the
         Employee was employed by the Employer by the specified date, the
         Employee will become a Participant on the latest of: (i) the Effective
         Date; (ii) the restated Effective Date; (iii) the Employee's Employment
         Commencement Date; or (iv) on the date the Employee attains age (not
         exceeding age 21).

PLAN ENTRY DATE. "Plan Entry Date" means the Effective Date and: (Choose one of
(f) through (j). Choose (k) if applicable) [Note: If the Employer does not elect
(k), the elections under (f) through (j) apply to all types of contributions.
The Employer must elect at least one Entry Date per Plan Year.]

[   ]    (f)  SEMI-ANNUAL ENTRY DATES. The first day of the Plan Year and the
         first day of the seventh month of the Plan Year.

[   ]    (g)  THE FIRST DAY OF THE PLAN YEAR.

[   ]    (h)  EMPLOYMENT COMMENCEMENT DATE (immediate eligibility).

[ X ]    (i) THE FIRST DAY OF EACH: month (e.g., "Plan Year quarter").

[   ]    (j)  THE FOLLOWING PLAN ENTRY DATES:             .
                                              ------------
<TABLE>

[   ]    (k)  ALTERNATIVE 401(K)/401(M) PLAN ENTRY DATE(S). For the alternative 401(k)/401(m) eligibility conditions
         under (c), Plan Entry Date means: (Choose (1) or (2) or both as applicable)
<S>                                                               <C>
           (1)  [   ]   DEFERRAL/EMPLOYEE CONTRIBUTIONS           (2)  [   ]   MATCHING CONTRIBUTIONS
                      (Choose one of a. through d.)                          (Choose one of e. through h.)

                  a.   [   ] Semi-annual Entry Dates                  e.    [   ] Semi-annual Entry Dates
                  b.   [   ] The first day of the Plan Year           f.    [   ] The first day of the Plan Year
                  c.   [   ] Employment Commencement Date             g.    [   ] Employment Commencement Date
                             (immediate eligibility)                              (immediate eligibility)
                  d.   [   ] The first day of each:                   h.    [   ] The first day of each:
</TABLE>

TIME OF PARTICIPATION. An Employee will become a Participant, unless excluded
under Section 1.11, on the Plan Entry Date (if employed on that date): (Choose
one of (l), (m) or (n). Choose (o) if applicable): [Note: If the Employer does
not elect (o), the election under (l), (m) or (n) applies to all types of
contributions.]

[X] (l) IMMEDIATELY FOLLOWING OR COINCIDENT WITH

[   ]    (m)  IMMEDIATELY PRECEDING OR COINCIDENT WITH

[   ]    (n)  NEAREST

                                       4
<PAGE>
<TABLE>

[   ]    (o)  ALTERNATIVE 401(K)/401(M) ELECTION(S): (Choose (1) or (2) or both as applicable)
<S>                                                               <C>
            (1)  [   ]   DEFERRAL CONTRIBUTIONS                  (2)  [   ]   MATCHING CONTRIBUTIONS
                                                                           (Choose one of b., c. or d.)

                  a.  [   ] Immediately following                     b.    [   ] Immediately
                             following or coincident with                         or coincident with
                                                                      c.    [   ] Immediately preceding
                                                                                  or coincident with
                                                                      d.    [   ] Nearest
</TABLE>

the date the Employee completes the eligibility conditions described in this
Section 2.01. [Note: Unless otherwise excluded under Section 1.11, an Employee
must become a Participant by the earlier of: (1) the first day of the Plan Year
beginning after the date the Employee completes the age and service requirements
of Code ss.410(a); or (2) 6 months after the date the Employee completes those
requirements.]

10. YEAR OF SERVICE - ELIGIBILITY (2.02). (Choose (a) and (b) as applicable):
[Note: If the Employer does not elect a Year of Service condition or elects the
Elapsed Time Method, the Employer should not complete (a) or (b).]

[  ]     (a) YEAR OF SERVICE. An Employee must complete Hour(s) of Service
         during an eligibility computation period to receive credit for a Year
         of Service under Article II: [Note: The number may not exceed 1,000. If
         left blank, the requirement is 1,000.]

[ X ]    (b) ELIGIBILITY COMPUTATION PERIOD. After the initial eligibility
         computation period described in Plan Section 2.02, the Plan measures
         the eligibility computation period as: (Choose one of (1) or (2))

     [ X ]    (1) The Plan Year beginning with the Plan Year which includes the
              first anniversary of the Employee's Employment Commencement Date.

     [ ]      (2) The 12-consecutive month period beginning with each
              anniversary of the Employee's Employment Commencement Date.

11. PARTICIPATION - BREAK IN SERVICE (2.03). The one year hold-out rule
described in Plan Section 2.03(B): (Choose one of (a), (b) or (c))

[ X ]    (a) NOT APPLICABLE. Does not apply to the Plan.

[   ]    (b)  APPLICABLE. Applies to the Plan and to all Participants.

[   ]    (c)  LIMITED APPLICATION. Applies to the Plan, but only to a
         Participant who has incurred a Separation from Service.

12. ELECTION NOT TO PARTICIPATE (2.06). The Plan: (Choose one of (a) or (b))

[ X ]    (a) ELECTION NOT PERMITTED. Does not permit an eligible Employee to
         elect not to participate.

[   ]    (b) IRREVOCABLE ELECTION. Permits an Employee to elect not to
         participate if the Employee makes a one-time irrevocable election prior
         to the Employee's Plan Entry Date.

                                   ARTICLE III
         EMPLOYER CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES

13.      AMOUNT AND TYPE (3.01). The amount and type(s) of the Employer's
         contribution to the Trust for a Plan Year or other specified period
         will equal: (Choose one or more of (a) through (e) as applicable)13
         p.55

[ X ]    (a) DEFERRAL CONTRIBUTIONS (401(K) ARRANGEMENT). The dollar or
         percentage amount by which each Participant has elected to reduce
         his/her Compensation, as provided in the Participant's salary reduction
         agreement and in accordance with Section 3.02.

[ X ]    (b) MATCHING CONTRIBUTIONS (OTHER THAN SAFE HARBOR MATCHING
         CONTRIBUTIONS UNDER SECTION 3.01(D)). The matching contributions made
         in accordance with Section 3.03.

[ X ]    (c) NONELECTIVE CONTRIBUTIONS (PROFIT SHARING). The following
         nonelective contribution (Choose (1) or (2) or both as applicable):
         [Note: The Employer may designate as a qualified nonelective
         contribution, all or any portion of its nonelective contribution. See
         Plan Section 3.04(F). The Employer may make qualified nonelective
         contributions to correct an ADP test failure only if the Plan
         Administrator is using current year testing.]

     [ X ]    (1) DISCRETIONARY. An amount the Employer in its sole discretion
              may determine.

                                       5
<PAGE>

     [   ]    (2) FIXED. The following amount:
                                               ------------

[   ]    (d)  401(K) SAFE HARBOR CONTRIBUTIONS. The following 401(k) safe harbor
         contributions described in Plan Section 14.02(D): (Choose one of (1),
         (2) or (3). Choose (4), if applicable)

     [   ]    (1) SAFE HARBOR NONELECTIVE CONTRIBUTION. The safe harbor
              nonelective contribution equals ______% of a Participant's
              Compensation [Note: the amount in the blank must be at least 3%.].

     [   ]    (2) BASIC SAFE HARBOR MATCHING CONTRIBUTION. A matching
              contribution equal to 100% of each Participant's deferral
              contributions not exceeding 3% of the Participant's Compensation,
              plus 50% of each Participant's deferral contributions in excess of
              3% but not in excess of 5% of the Participant's Compensation. For
              this purpose, "Compensation" means Compensation for: . [Note: The
              Employer must complete the blank line with the applicable time
              period for computing the Employer's basic safe harbor match, such
              as "each payroll period," "each month," "each Plan Year quarter"
              or "the Plan Year".]

     [   ]    (3) ENHANCED SAFE HARBOR MATCHING CONTRIBUTION. (Choose one of
              a. or b.).

         [   ]    a.  UNIFORM PERCENTAGE. An amount equal to _____ % of
                  each Participant's deferral contributions not
                  exceeding _____ % of the Participant's Compensation.
                  For this purpose, "Compensation" means Compensation
                  for: _______ . [See the Note in (d)(2).]

         [   ]    b. TIERED FORMULA. An amount equal to the specified matching
                  percentage for the corresponding level of each Participant's
                  deferral contribution percentage. For this purpose,
                  "Compensation" means Compensation for: . [See the Note in
                  (d)(2).]

              Deferral Contribution Percentage             Matching Percentage

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

[Note: The matching percentage may not increase as the deferral contribution
percentage increases and the enhanced matching formula otherwise must satisfy
the requirements of Code ss.ss.401(k)(12)(B)(ii) and (iii). If the Employer
wishes to avoid ACP testing on its enhanced safe harbor matching contribution,
the Employer also must limit deferral contributions taken into account (the
"Deferral Contribution Percentage") for the matching contribution to 6% of Plan
Year Compensation.]

     [   ]    (4) ANOTHER PLAN. The Employer will satisfy the 401(k) safe
              harbor contribution in the following plan:______________.

[   ]    (e) FROZEN PLAN. This Plan is a frozen Plan effective: . For any
         period following the specified date, the Employer will not contribute
         to the Plan, a Participant may not contribute and an otherwise eligible
         Employee will not become a Participant in the Plan.

14.      DEFERRAL CONTRIBUTIONS (3.02). The following limitations and terms
         apply to an Employee's deferral contributions: (If the Employer elects
         Section 3.01(a), the Employer must elect (a). Choose (b) or (c) as
         applicable)14 p.66

[ X ]    (a) LIMITATION ON AMOUNT. An Employee's deferral contributions are
         subject to the following limitation(s) in addition to those imposed by
         the Code: (Choose (1), (2) or (3) as applicable)

     [ X ]    (1) Maximum deferral amount: 92% .

     [   ]    (2) Minimum deferral amount:             .
                                           ------------

     [   ]    (3) No limitations.

For the Plan Year in which an Employee first becomes a Participant, the Plan
Administrator will apply any percentage limitation the Employer elects in (1) or
(2) to the Employee's Compensation: (Choose one of (4) or (5) unless the
Employer elects (3))

     [   ]    (4) Only for the portion of the Plan Year in which the Employee
              actually is a Participant.

     [ X ]    (5) For the entire Plan Year.

[   ]    (b)  NEGATIVE DEFERRAL ELECTION. The Employer will withhold ______ %
         from the Participant's Compensation unless the Participant elects a
         lesser percentage (including zero) under his/her salary reduction
         agreement. See Plan Section 14.02(C). The negative election will apply
         to: (Choose one of (1) or (2))

                                       6
<PAGE>

     [   ]    (1) All Participants who have not deferred at least the automatic
              deferral amount as of: ____________.

     [   ]    (2) Each Employee whose Plan Entry Date is on or following the
              negative election effective date.

[    ]   (c) CASH OR DEFERRED CONTRIBUTIONS. For each Plan Year for which the
         Employer makes a designated cash or deferred contribution under Plan
         Section 14.02(B), a Participant may elect to receive directly in cash
         not more than the following portion (or, if less, the 402(g)
         limitation) of his/her proportionate share of that cash or deferred
         contribution: (Choose one of (1) or (2))

     [   ]    (1) All or any portion.                 [   ]  (2)           %.
                                                                 --------

MODIFICATION/REVOCATION OF SALARY REDUCTION AGREEMENT. A Participant
prospectively may modify or revoke a salary reduction agreement, or may file a
new salary reduction agreement following a prior revocation, at least once per
Plan Year or during any election period specified by the basic plan document or
required by the Internal Revenue Service. The Plan Administrator also may
provide for more frequent elections in the Plan's salary reduction agreement
form.

15. MATCHING CONTRIBUTIONS (INCLUDING ADDITIONAL SAFE HARBOR MATCH UNDER PLAN
SECTION 14.02(D)(3)) (3.03). The Employer matching contribution is: (If the
Employer elects Section 3.01(b), the Employer must elect one or more of (a), (b)
or (c) as applicable. Choose (d) if applicable)15 p.77

[   ]    (a)  FIXED FORMULA. An amount equal to ________% of each Participant's
         deferral contributions.

[ X ]    (b) DISCRETIONARY FORMULA. An amount (or additional amount) equal to a
         matching percentage the Employer from time to time may deem advisable
         of the Participant's deferral contributions. The Employer, in its sole
         discretion, may designate as a qualified matching contribution, all or
         any portion of its discretionary matching contribution. The portion of
         the Employer's discretionary matching contribution for a Plan Year not
         designated as a qualified matching contribution is a regular matching
         contribution.

[   ]    (c) MULTIPLE LEVEL FORMULA. An amount equal to the following
         percentages for each level of the Participant's deferral contributions.
         [Note: The matching percentage only will apply to deferral
         contributions in excess of the previous level and not in excess of the
         stated deferral contribution percentage.]

                   Deferral Contribution                    Matching Percentage
                   ---------------------                    -------------------

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

[   ]    (d) RELATED EMPLOYERS. If two or more Related Employers contribute to
         this Plan, the Plan Administrator will allocate matching contributions
         and matching contribution forfeitures only to the Participants directly
         employed by the contributing Employer. The matching contribution
         formula for the other Related Employer(s) is: . [Note: If the Employer
         does not elect (d), the Plan Administrator will allocate all matching
         contributions and matching forfeitures without regard to which
         contributing Related
         Employer directly employs the Participant.]

TIME PERIOD FOR MATCHING CONTRIBUTIONS. The Employer will determine its matching
contribution based on deferral contributions made during each: (Choose one of
(e) through (h))

[ X ]    (e) PLAN YEAR.

[   ]    (f)  PLAN YEAR QUARTER.

[   ]    (g)  PAYROLL PERIOD.

[   ]    (h)  ALTERNATIVE TIME PERIOD: ____________. [Note: Any alternative
         time period the Employer elects in (h) must be the same for all
         Participants and may not exceed the Plan Year.]

DEFERRAL CONTRIBUTIONS TAKEN INTO ACCOUNT. In determining a Participant's
deferral contributions taken into account for the above-specified time period
under the matching contribution formula, the following limitations apply:
(Choose one of (i), (j) or (k))

[   ]    (i) ALL DEFERRAL CONTRIBUTIONS. The Plan Administrator will take into
          account all deferral contributions.

[   ]    (j) SPECIFIC LIMITATION. The Plan Administrator will disregard
         deferral contributions exceeding % of the Participant's Compensation.
         [Note: To avoid the ACP test in a safe harbor 401(k) plan, the Employer
         must limit deferrals and Employee contributions which are subject to
         match to 6% of Plan Year Compensation.]

[X]      (k) DISCRETIONARY. The Plan Administrator will take into account the
         deferral contributions as a percentage of the Participant's
         Compensation as the Employer determines.

                                       7
<PAGE>

OTHER MATCHING CONTRIBUTION REQUIREMENTS. The matching contribution formula is
subject to the following additional requirements: (Choose (l) or (m) or both as
applicable)

[   ]    (l)  MATCHING CONTRIBUTION LIMITS. A Participant's matching
         contributions may not exceed: (Choose one of (1) or (2))

     [   ]    (1) __________. [Note: The Employer may elect (1) to place an
              overall dollar or percentage limit on matching contributions.]

     [   ]    (2) 4% of a Participant's Compensation for the Plan Year under
              the discretionary matching contribution formula. [Note: The
              Employer must elect (2) if it elects a discretionary matching
              formula with the safe harbor 401(k) contribution formula and
              wishes to avoid the ACP test.]

[   ]    (m) QUALIFIED MATCHING CONTRIBUTIONS. The Plan Administrator will
         allocate as qualified matching contributions, the matching
         contributions specified in Adoption Agreement Section: . The Plan
         Administrator will allocate all other matching contributions as regular
         matching contributions. [Note: If the Employer elects two matching
         formulas, the Employer may use (m) to designate one of the formulas as
         a qualified matching contribution. The Employer may make qualified
         matching contributions to correct an ACP test failure only if the Plan
         Administrator is using current year testing.]

16. CONTRIBUTION ALLOCATION (3.04)

EMPLOYER NONELECTIVE CONTRIBUTIONS (3.04(A)). The Plan Administrator will
allocate the Employer's nonelective contribution under the following
contribution allocation formula which are in lieu of those under Plan Section
3.04(E). (Choose one of (a), (b) or (c))

[ X ]    (a) NONINTEGRATED (PRO RATA) ALLOCATION FORMULA.

[   ]    (b) SUPER-INTEGRATED ALLOCATION FORMULA. Subject to any restoration
         allocation required under the Plan, the Plan Administrator will
         allocate and credit for the Plan Year each annual Employer contribution
         (and Participant forfeitures, if any) to the Account of each
         Participant who satisfies the conditions of Section 3.06, in the
         following tiers of priority (Complete the second tier blanks): [Note:
         The Plan Administrator may not proceed to the next tier unless the Plan
         Administrator has allocated the specified maximum percentage under the
         preceding tier.]

         FIRST TIER. Under the first tier, the Plan Administrator will allocate
         the annual Employer contribution in the same ratio that each
         Participant's Compensation bears to the total Compensation of all
         Participants, but in an amount not exceeding 3% of each Participant's
         Compensation.

         SECOND TIER. Under the second tier, the Plan Administrator will
         allocate any remaining Employer contribution in the same ratio that
         each Participant's Excess Compensation bears to the total Excess
         Compensation of all Participants, but in an amount not exceeding __% of
         each Participant's Excess Compensation receiving an allocation under
         this second tier. For purposes of this second tier allocation, Excess
         Compensation means Compensation in excess of: $ ______.

         THIRD TIER. Under the third tier, the Plan Administrator then will
         allocate any Employer contribution remaining after the first two tiers
         of allocation in the same ratio that each Nonhighly Compensated
         Employee Participant's Compensation bears to the total of all Nonhighly
         Compensated Employee Participant's Compensation.

[   ]    (c) AGE-BASED ALLOCATION FORMULA. The Plan Administrator will
         allocate the annual Employer contribution (and Participant forfeitures,
         if any) in the same ratio that each Participant's Benefit Factor for
         the Plan Year bears to the sum of the Benefit Factors of all
         Participants for the Plan Year. A Participant's Benefit Factor is
         his/her Compensation for the Plan Year multiplied by the Actuarial
         Factor in Appendix C. If Normal Retirement Age is 65, use Table I. If
         Normal Retirement Age is not 65, use Table II. In Appendix C, the Plan
         Administrator will use the Actuarial Factors based on the following
         assumptions: (Complete (1) and (2))
<TABLE>

     [   ]    (1) INTEREST RATE. (Choose one of (i), (ii) or (iii)):
<S>                                         <C>                        <C>
                  [   ]  (i)  7.5%.         [   ]  (ii)  8%.           [   ]  (iii)  8.5%.

     [   ]    (2) MORTALITY. (Choose one of (i) or (ii)):

                  [   ]  (i)  UP-1984.      [   ]  (ii)  Alternative:   (Specify 1983 GAM, 1983 IAM,
                                                         1971 GAM or 1971 IAM and attach tables as
                                                         determined using such mortality table
                                                         and the specified interest rate.)
</TABLE>

                                       8
<PAGE>

QUALIFIED NONELECTIVE CONTRIBUTIONS. (3.04(F)). The Plan Administrator will
allocate the Employer's qualified nonelective contributions to: (Choose one of
(d) or (e))

[ X ]    (d) NONHIGHLY COMPENSATED EMPLOYEES ONLY.

[   ]    (e)  ALL PARTICIPANTS.

RELATED EMPLOYERS. (Choose (f) if applicable)

[   ]    (f) ALLOCATE ONLY TO DIRECTLY EMPLOYED PARTICIPANTS. If two or more
         Related Employers adopt this Plan, the Plan Administrator will allocate
         all nonelective contributions and forfeitures attributable to
         nonelective contributions only to the Participants directly employed by
         the contributing Employer. If a Participant receives Compensation from
         more than one contributing Employer, the Plan Administrator will
         determine the allocations under this Section 3.04 by prorating the
         Participant's Compensation between or among the participating Related
         Employers. [Note: If the Employer does not elect 3.04(f), the Plan
         Administrator will allocate all nonelective contributions and
         forfeitures without regard to which contributing Related Employer
         directly employs the Participant. The Employer may not elect 3.04(f)
         under a safe harbor 401(k) Plan.]

17. FORFEITURE ALLOCATION (3.05). The Plan Administrator will allocate a
Participant forfeiture: (Choose one or more of (a), (b) or (c) as applicable)
[Note: Even if the Employer elects immediate vesting, the Employer should
complete Section 3.05. See Plan Section 9.11.]17 p.99

[X]      (a) MATCHING CONTRIBUTION FORFEITURES. To the extent attributable to
         matching contributions: (Choose one of (1) through (4))

     [   ]    (1) As a discretionary matching contribution.

     [ X ]    (2) To reduce matching contributions.

     [   ]    (3) As a discretionary nonelective contribution.

     [   ]    (4) To reduce nonelective contributions.

[X]      (b) NONELECTIVE CONTRIBUTION FORFEITURES. To the extent attributable to
         Employer nonelective contributions: (Choose one of (1) through (4))

     [   ]    (1) As a discretionary nonelective contribution.

     [ X ]    (2) To reduce nonelective contributions.

     [   ]    (3) As a discretionary matching contribution.

     [   ]    (4) To reduce matching contributions.

[X]      (c) REDUCE ADMINISTRATIVE EXPENSES. First to reduce the Plan's ordinary
         and necessary administrative expenses for the Plan Year and then
         allocate any remaining forfeitures in the manner described in Sections
         3.05(a) or (b) as applicable.

TIMING OF FORFEITURE ALLOCATION. The Plan Administrator will allocate
forfeitures under Section 3.05 in the Plan Year: (Choose one of (d) or (e))

[   ]    (d)  In which the forfeiture occurs.

[ X ]   (e) Immediately following the Plan Year in which the forfeiture occurs.

18. ALLOCATION CONDITIONS (3.06).18 p.99

ALLOCATION CONDITIONS. The Plan does not apply any allocation conditions to
deferral contributions, or to 401(k) safe harbor contributions (under Section
3.01(d)). To receive an allocation of matching contributions, nonelective
contributions, qualified nonelective contributions or Participant forfeitures, a
Participant must satisfy the following allocation condition(s): (Choose one or
more of (a) through (i) as applicable)

[X]      (a) HOURS OF SERVICE CONDITION. The Participant must complete at least
         the specified number of Hours of Service (not exceeding 1,000) during
         the Plan Year: 1,000 .

                                       9
<PAGE>

[X]      (b) EMPLOYMENT CONDITION. The Participant must be employed by the
         Employer on the last day of the Plan Year (designate time period).

[   ]    (c)  NO ALLOCATION CONDITIONS.

[   ]    (d) ELAPSED TIME METHOD. The Participant must complete at least the
         specified number (not exceeding 182) of consecutive calendar days of
         employment with the Employer during the Plan Year: .

[   ]    (e) TERMINATION OF SERVICE/501 HOURS OF SERVICE COVERAGE RULE. The
         Participant either must be employed by the Employer on the last day of
         the Plan Year or must complete at least 501 Hours of Service during the
         Plan Year. If the Plan uses the Elapsed Time Method of crediting
         Service, the Participant must complete at least 91 consecutive calendar
         days of employment with the Employer during the Plan Year.

[   ]    (f) SPECIAL ALLOCATION CONDITIONS FOR MATCHING CONTRIBUTIONS. The
         Participant must complete at least Hours of Service during the
         (designate time period) for the matching contributions made for that
         time period.

[ X ]    (g) DEATH, DISABILITY OR NORMAL RETIREMENT AGE. Any condition specified
         in Section 3.06 always applies if the Participant incurs a Separation
         from Service during the Plan Year on account of: death, Disability or
         Normal Retirement Age (e.g., death, Disability or Normal Retirement
         Age).

[ X ]    (h) SUSPENSION OF ALLOCATION CONDITIONS FOR COVERAGE. The suspension of
         allocation conditions of Plan Section 3.06(E) applies to the Plan,
         except that the Plan Administrator must apply Section 3.06(E) using the
         Ratio Percentage Test only.

[  ]     (i) LIMITED ALLOCATION CONDITIONS. The Plan does not impose an
         allocation condition for the following types of contributions: . [Note:
         Any election to limit the Plan's allocation conditions to certain
         contributions must be the same for all Participants, be definitely
         determinable and not discriminate in favor of Highly Compensated
         Employees.]

                                   ARTICLE IV
                            PARTICIPANT CONTRIBUTIONS

19. EMPLOYEE (AFTER TAX) CONTRIBUTIONS (4.02). The following elections apply to
Employee contributions: (Choose one of (a) or (b). Choose (c) if applicable) 19
p.1010

[ X ]    (a) NOT PERMITTED. The Plan does not permit Employee contributions.

[   ]    (b) PERMITTED. The Plan permits Employee contributions subject
         to the following limitations: . [Note: Any designated
         limitation(s) must be the same for all Participants, be definitely
         determinable and not discriminate in favor of Highly
         Compensated Employees.]

[   ]    (c) MATCHING CONTRIBUTION. For each Plan Year, the Employer's
         matching contribution made with respect to Employee contributions is: .

                                    ARTICLE V
                              VESTING REQUIREMENTS

20. NORMAL/EARLY RETIREMENT AGE (5.01). A Participant attains Normal Retirement
Age (or Early Retirement Age, if applicable) under the Plan on the following
date: (Choose one of (a) or (b). Choose (c) if applicable)20 p.1010

[ X ]    (a)  SPECIFIC AGE. The date the Participant attains age 65.
         [Note: The age may not exceed age 65.]

[   ]    (b) AGE/PARTICIPATION. The later of the date the Participant attains
         years of age or the anniversary of the first day of the Plan Year in
         which the Participant commenced participation in the Plan. [Note: The
         age may not exceed age 65 and the anniversary may not exceed the 5th.]

[   ]    (c) EARLY RETIREMENT AGE. Early Retirement Age is the later of: (i)
         the date a Participant attains age or (ii) the date a Participant
         reaches his/her anniversary of the first day of the Plan Year in which
         the Participant commenced participation in the Plan.

21. PARTICIPANT'S DEATH OR DISABILITY (5.02). The 100% vesting rule under Plan
Section 5.02 does not apply to: (Choose (a) or (b) or both as applicable)

[   ]    (a)  DEATH.

[   ]    (b)  DISABILITY.

                                       10
<PAGE>

22. VESTING SCHEDULE (5.03). A Participant has a 100% Vested interest at all
times in his/her deferral contributions, qualified nonelective contributions,
qualified matching contributions and 401(k) safe harbor contributions. The
following vesting schedule applies to Employer regular matching contributions
and to Employer nonelective contributions: (Choose one or more of (a) through
(f) as applicable)22 p.1111

[   ]    (a) IMMEDIATE VESTING. 100% Vested at all times. [Note: The Employer
         must elect (a) if the Service condition under Section 2.01 exceeds One
         Year of Service or more than twelve months.]

[X]      (b)  TOP-HEAVY VESTING SCHEDULES. [Note: The Employer must choose one
         of (b)(1), (2) or (3) if it does not elect (a).]
<TABLE>
<S>                                                           <C>
     [   ]    (1) 6-year graded as specified in the Plan.     [ X ]    (3) Modified top-heavy schedule
     [   ]    (2) 3-year cliff as specified in the Plan.

                                                                      Years of                   Vested
                                                                      Service                   Percentage
                                                                      -------                   ----------

                                                          Less than 1 ...................            0%
                                                                                                     -

                                                             1 ..........................            25%
                                                                                                     --

                                                             2 ..........................            50%
                                                                                                     --

                                                             3 ..........................            75%
                                                                                                     --

                                                             4 ..........................           100%
                                                                                                    ---

                                                             5 ..........................            100%
                                                                                                     ---

                                                             6 or more ..................            100%

                                                                      Years of                   Vested
                                                                      Service                   Percentage
                                                                      -------                   ----------

                                                          Less than 1 ...................               %
                                                                                                  ------

                                                             1 ..........................               %
                                                                                                  ------

                                                             2 ..........................               %
                                                                                                  ------

                                                             3 ..........................               %
                                                                                                  ------

                                                             4 ..........................               %
                                                                                                  ------

                                                             5 ..........................               %
                                                                                                  ------

                                                             6 or more ..................            100%
</TABLE>

[   ]    (c)  NON-TOP-HEAVY VESTING SCHEDULES. [Note: The Employer may elect
         one of (c)(1), (2) or (3) in addition to (b).]

                                       11
<PAGE>
<TABLE>
<S>                                                           <C>
     [   ]    (1) 7-year graded as specified in the Plan.     [   ]    (3) Modified non-top-heavy schedule
     [   ]    (2) 5-year cliff as specified in the Plan.

                                                                      Years of                   Vested
                                                                      Service                   Percentage

                                                          Less than 1 ...................               %
                                                                                                  ------

                                                             1 ..........................               %
                                                                                                  ------

                                                             2 ..........................               %
                                                                                                  ------

                                                             3 ..........................               %
                                                                                                  ------

                                                             4 ..........................               %
                                                                                                  ------

                                                             5 ..........................               %
                                                                                                  ------

                                                             6 ..........................               %
                                                                                                  ------

                                                             7 or more ..................            100%
</TABLE>

If the Employer does not elect (c), the vesting schedule elected in (b) applies
to all Plan Years. [Note: The modified top-heavy schedule of (b)(3) must satisfy
Code ss.416. If the Employer elects (c)(3), the modified non-top-heavy schedule
must satisfy Code ss.411(a)(2).]

[   ]    (d) SEPARATE VESTING ELECTION FOR REGULAR MATCHING CONTRIBUTIONS. In
         lieu of the election under (a), (b) or (c), the following vesting
         schedule applies to a Participant's regular matching contributions:
         (Choose one of (1) or (2))

     [   ]    (1) 100% Vested at all times.

     [   ]    (2) Regular matching vesting schedule:             .
                                                     ------------
              [Note: The vesting schedule completed under (d)(2) must comply
              with Code ss.411(a)(4).]

[   ]    (e) APPLICATION OF TOP-HEAVY SCHEDULE. The non-top-heavy schedule
         elected under (c) applies in all Plan Years in which the Plan is not a
         top-heavy plan. [Note: If the Employer does not elect (e), the
         top-heavy vesting schedule will apply for the first Plan Year in which
         the Plan is top-heavy and then in all subsequent Plan Years.]

[   ]    (f) SPECIAL VESTING PROVISIONS: . [Note: Any special vesting
         provision must satisfy Code ss.411(a). Any special vesting provision
         must be definitely determinable, not discriminate in favor of Highly
         Compensated Employees and not violate Code ss.401(a)(4).]

23. YEAR OF SERVICE - VESTING (5.06). (Choose (a) and (b)): [Note: If the
Employer elects the Elapsed Time Method or elects immediate vesting, the
Employer should not complete (a) or (b).]

[ X ]    (a) YEAR OF SERVICE. An Employee must complete at least 1,000 Hours of
         Service during a vesting computation period to receive credit for a
         Year of Service under Article V. [Note: The number may not exceed
         1,000. If left blank, the requirement is 1,000.]

[ X ]    (b) VESTING COMPUTATION PERIOD. The Plan measures a Year of Service on
         the basis of the following 12-consecutive month period: (Choose one of
         (1) or (2))

     [ X ] (1) Plan Year.

     [   ] (2) Employment year (anniversary of Employment Commencement Date).

24. EXCLUDED YEARS OF SERVICE - VESTING (5.08). The Plan excludes the following
Years of Service for purposes of vesting: (Choose (a) or choose one or more of
(b) through (f) as applicable)24 p.1212

[ X ]    (a) NONE. None other than as specified in Plan Section 5.08(a).

[   ]    (b)  AGE 18. Any Year of Service before the Year of Service during
         which the Participant attained the age of 18.

[   ]    (c) PRIOR TO PLAN ESTABLISHMENT. Any Year of Service during the
         period the Employer did not maintain this Plan or a predecessor plan.

[   ]    (d)  PARITY BREAK IN SERVICE. Any Year of Service excluded under the
         rule of parity. See Plan Section 5.10.

                                       12
<PAGE>

[   ]    (e) PRIOR PLAN TERMS. Any Year of Service disregarded under the terms
         of the Plan as in effect prior to this restated Plan.

[   ]    (f)  ADDITIONAL EXCLUSIONS. Any Year of Service before:              .
                                                                 -------------
         [Note: Any exclusion specified under (f) must comply with Code
         ss.411(a)(4). Any exclusion must be definitely determinable, not
         discriminate in favor of Highly Compensated Employees and not violate
         Code ss.401(a)(4). If the Employer elects immediate vesting, the
         Employer should not complete Section 5.08.]

                                   ARTICLE VI
                         DISTRIBUTION OF ACCOUNT BALANCE

25. TIME OF PAYMENT OF ACCOUNT BALANCE (6.01). The following time of
distribution elections apply to the Plan:25 p.1313

SEPARATION FROM SERVICE/VESTED ACCOUNT BALANCE NOT EXCEEDING $5,000. Subject to
the limitations of Plan Section 6.01(A)(1), the Trustee will distribute in a
lump sum (regardless of the Employer's election under Section 6.04) a separated
Participant's Vested Account Balance not exceeding $5,000: (Choose one of (a)
through (d))

[ X ]   (a) IMMEDIATE. As soon as administratively practicable following the
Participant's Separation from Service.

[   ]    (b) DESIGNATED PLAN YEAR. As soon as administratively practicable in
         the _____ Plan Year beginning after the Participant's Separation from
         Service.

[   ]    (c) DESIGNATED PLAN YEAR QUARTER. As soon as administratively
         practicable in the _____ Plan Year quarter beginning after the
         Participant's Separation from Service.

[   ]    (d) DESIGNATED DISTRIBUTION. As soon as administratively practicable in
         the: _____ following the Participant's Separation from Service. [Note:
         The designated distribution time must be the same for all Participants,
         be definitely determinable, not discriminate in favor of Highly
         Compensated Employees and not violate Code ss.401(a)(4).]

SEPARATION FROM SERVICE/VESTED ACCOUNT BALANCE EXCEEDING $5,000. A separated
Participant whose Vested Account Balance exceeds $5,000 may elect to commence
distribution of his/her Vested Account Balance no earlier than: (Choose one of
(e) through (i). Choose (j) if applicable)

[ X ]    (e) IMMEDIATE. As soon as administratively practicable following the
Participant's Separation from Service.

[   ]    (f) DESIGNATED PLAN YEAR. As soon as administratively practicable in
         the _____ Plan Year beginning after the Participant's Separation from
         Service.

[   ]    (g) DESIGNATED PLAN YEAR QUARTER. As soon as administratively
         practicable in the Plan Year quarter following the Plan Year quarter in
         which the Participant elects to receive a distribution.

[   ]    (h) NORMAL RETIREMENT AGE. As soon as administratively practicable
         after the close of the Plan Year in which the Participant attains
         Normal Retirement Age and within the time required under Plan Section
         6.01(A)(2).

[   ]    (i) DESIGNATED DISTRIBUTION. As soon as administratively practicable
         in the: following the Participant's Separation from Service. [Note: The
         designated distribution time must be the same for all Participants, be
         definitely determinable, not discriminate in favor of Highly
         Compensated Employees and not violate Code ss.401(a)(4).]

[   ]    (j) LIMITATION ON PARTICIPANT'S RIGHT TO DELAY DISTRIBUTION. A
         Participant may not elect to delay commencement of distribution of
         his/her Vested Account Balance beyond the later of attainment of age 62
         or Normal Retirement Age. [Note: If the Employer does not elect (j),
         the Plan permits a Participant who has Separated from Service to delay
         distribution until his/her required beginning date. See Plan Section
         6.01(A)(2).]

PARTICIPANT ELECTIONS PRIOR TO SEPARATION FROM SERVICE. A Participant, prior to
Separation from Service may elect any of the following distribution options in
accordance with Plan Section 6.01(C). (Choose (k) or choose one or more of (l)
through (o) as applicable). [Note: If the Employer elects any in-service
distributions option, a Participant may elect to receive one in-service
distribution per Plan Year unless the Plan's in-service distribution form
provides for more frequent in-service distributions.]

[   ]    (k) NONE. A Participant does not have any distribution option prior
         to Separation from Service, except as may be provided under Plan
         Section 6.01(C).

[ X ]    (l) DEFERRAL CONTRIBUTIONS. Distribution of all or any portion (as
         permitted by the Plan) of a Participant's Account Balance attributable
         to deferral contributions if: (Choose one or more of (1), (2) or (3) as
         applicable)

                                       13
<PAGE>

     [ X ]    (1) HARDSHIP (SAFE HARBOR HARDSHIP RULE). The Participant has
              incurred a hardship in accordance with Plan Sections 6.09 and
              14.11(A).

     [ X ]    (2) AGE. The Participant has attained age 59 1/2 (Must be at
              least age 59 1/2).

     [   ]    (3) DISABILITY. The Participant has incurred a Disability.

[ X ]    (m) QUALIFIED NONELECTIVE CONTRIBUTIONS/QUALIFIED MATCHING
         CONTRIBUTIONS/SAFE HARBOR CONTRIBUTIONS. Distribution of all or any
         portion of a Participant's Account Balance attributable to qualified
         nonelective contributions, to qualified matching contributions, or to
         401(k) safe harbor contributions if: (Choose (1) or (2) or both as
         applicable)

     [ X ]    (1) AGE. The Participant has attained age 59 1/2 (Must be at
              least age 59 1/2).

     [   ]    (2) DISABILITY. The Participant has incurred a Disability.

[ X ]    (n) NONELECTIVE CONTRIBUTIONS/REGULAR MATCHING CONTRIBUTIONS.
         Distribution of all or any portion of a Participant's Vested Account
         Balance attributable to nonelective contributions or to regular
         matching contributions if: (Choose one or more of (1) through (5) as
         applicable)

     [ X ]    (1) AGE/SERVICE CONDITIONS. (Choose one or more of a. through d.
              as applicable):

         [ X ]    a. AGE. The Participant has attained age 59 1/2 .

         [   ]    b. TWO-YEAR ALLOCATIONS. The Plan Administrator has
                  allocated the contributions to be distributed for a period of
                  not less than Plan Years before the distribution date. [Note:
                  The minimum number of years is 2.]

         [   ]    c. FIVE YEARS OF PARTICIPATION. The Participant has
                  participated in the Plan for at least Plan Years. [Note: The
                  minimum number of years is 5.]

         [ X ]    d. VESTED. The Participant is 100 % Vested in his/her Account
                  Balance. See Plan Section 5.03(A). [Note: If an Employer makes
                  more than one election under Section 6.01(n)(1), a Participant
                  must satisfy all conditions before the Participant is eligible
                  for the distribution.]

     [   ]    (2) HARDSHIP. The Participant has incurred a hardship in
              accordance with Plan Section 6.09.

     [   ]    (3) HARDSHIP (SAFE HARBOR HARDSHIP RULE). The Participant has
              incurred a hardship in accordance with Plan Sections 6.09 and
              14.11(A).

     [   ]    (4) DISABILITY. The Participant has incurred a Disability.

     [   ]    (5) DESIGNATED CONDITION. The Participant has satisfied the
              following condition(s): . [Note: Any designated condition(s) must
              be the same for all Participants, be definitely determinable and
              not discriminate in favor of Highly Compensated Employees.]

[ X ]    (o) PARTICIPANT CONTRIBUTIONS. Distribution of all or any portion of a
         Participant's Account Balance attributable to the following Participant
         contributions described in Plan Section 4.01: (Choose one of (1), (2)
         or (3))

     [   ]    (1) ALL PARTICIPANT CONTRIBUTIONS.

     [   ]    (2) EMPLOYEE CONTRIBUTIONS ONLY.

     [ X ]    (3) ROLLOVER CONTRIBUTIONS ONLY.

PARTICIPANT LOAN DEFAULT/OFFSET. See Section 6.08 of the Plan.

26. DISTRIBUTION METHOD (6.03). A separated Participant whose Vested Account
Balance exceeds $5,000 may elect distribution under one of the following
method(s) of distribution described in Plan Section 6.03: (Choose one or more of
(a) through (d) as applicable)26 p.1414

[ X ]    (a)  LUMP SUM (Distributions are in Cash only).

[   ]    (b)  INSTALLMENTS.

[   ]    (c)  INSTALLMENTS FOR REQUIRED MINIMUM DISTRIBUTIONS ONLY.

[   ]    (d)  ANNUITY DISTRIBUTION OPTION(S): ____________.
         [Note: Any optional method of distribution may not be subject to
         Employer, Plan Administrator or Trustee discretion.]

                                       14
<PAGE>

27.      JOINT AND SURVIVOR ANNUITY REQUIREMENTS (6.04). The joint and survivor
         annuity distribution requirements of Plan Section 6.04: (Choose one of
         (a) or (b))

[ X ]    (a) PROFIT SHARING PLAN EXCEPTION. Do not apply to a Participant,
         unless the Participant is a Participant described in Section 6.04(H) of
         the Plan.

[   ]    (b)  APPLICABLE. Apply to all Participants.

                                   ARTICLE IX
       PLAN ADMINISTRATOR - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS

28. ALLOCATION OF NET INCOME, GAIN OR LOSS (9.08). For each type of contribution
provided under the Plan, the Plan allocates net income, gain or loss using the
following method: (Choose one or more of (a) through (d) as applicable)

[ X ]    (a)  DEFERRAL CONTRIBUTIONS/EMPLOYEE CONTRIBUTIONS. (Choose one or
         more of (1) through (5) as applicable)

     [ X ]    (1) DAILY VALUATION METHOD. Allocate on each business day of the
              Plan Year during which Plan assets for which there is an
              established market are valued and the Trustee is conducting
              business.

     [   ]    (2) BALANCE FORWARD METHOD. Allocate using the balance forward
              method.

     [   ]    (3) WEIGHTED AVERAGE METHOD. Allocate using the weighted average
              method, based on the following weighting period: _________.
              See Plan Section 14.12.

     [   ]    (4) BALANCE FORWARD METHOD WITH ADJUSTMENT. Allocate pursuant to
              the balance forward method, except treat as part of the relevant
              Account at the beginning of the valuation period % of the
              contributions made during the following valuation period: .

     [   ]    (5) INDIVIDUAL ACCOUNT METHOD. Allocate using the individual
              account method. See Plan Section 9.08.

[ X ]    (b)  MATCHING CONTRIBUTIONS. (Choose one or more of (1) through (5)
         as applicable)

     [ X ]    (1) DAILY VALUATION METHOD. Allocate on each business day of the
              Plan Year during which Plan assets for which there is an
              established market are valued and the Trustee is conducting
              business.

     [   ]    (2) BALANCE FORWARD METHOD. Allocate using the balance forward
              method.

     [   ]    (3) WEIGHTED AVERAGE METHOD. Allocate using the weighted average
              method, based on the following weighting period: _________.
              See Plan Section 14.12.

     [   ]    (4) BALANCE FORWARD METHOD WITH ADJUSTMENT. Allocate pursuant to
              the balance forward method, except treat as part of the relevant
              Account at the beginning of the valuation period % of the
              contributions made during the following valuation period: .

     [   ]    (5) INDIVIDUAL ACCOUNT METHOD. Allocate using the individual
              account method. See Plan Section 9.08.

[ X ]    (c)  EMPLOYER NONELECTIVE CONTRIBUTIONS. (Choose one or more of (1)
         through (5) as applicable)

     [ X ]    (1) DAILY VALUATION METHOD. Allocate on each business day of the
              Plan Year during which Plan assets for which there is an
              established market are valued and the Trustee is conducting
              business.

     [   ]    (2) BALANCE FORWARD METHOD. Allocate using the balance forward
              method.

     [   ]    (3) WEIGHTED AVERAGE METHOD. Allocate using the weighted average
              method, based on the following weighting period: _______. See Plan
              Section 14.12.

     [   ]    (4) BALANCE FORWARD METHOD WITH ADJUSTMENT. Allocate pursuant to
              the balance forward method, except treat as part of the relevant
              Account at the beginning of the valuation period % of the
              contributions made during the following valuation period: .

     [   ]    (5) INDIVIDUAL ACCOUNT METHOD. Allocate using the individual
              account method. See Plan Section 9.08.

[   ]    (d)  SPECIFIED METHOD. Allocate pursuant to the following
         method: __________.
         [Note: The specified method must be a definite predetermined formula
         which is not based on Compensation, which satisfies the
         nondiscrimination requirements of Treas. Reg. ss.1.401(a)(4) and which
         is applied uniformly to all Participants.]

                                       15
<PAGE>

                                    ARTICLE X
                    TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

29.      INVESTMENT POWERS (10.03). The following additional investment options
         or limitations apply under Plan Section 10.03: N/A . [Note: Enter "N/A"
         if not applicable.]

30.      VALUATION OF TRUST (10.15). In addition to the last day of the Plan
         Year, the Trustee must value the Trust Fund on the following valuation
         date(s): (Choose one of (a) through (d))

[X]      (a) DAILY VALUATION DATES. Each business day of the Plan Year on which
         Plan assets for which there is an established market are valued and the
         Trustee is conducting business.

[   ]    (b) LAST DAY OF A SPECIFIED PERIOD. The last day of each __________ of
         the Plan Year.

[   ]    (c)  SPECIFIED DATES: __________.

[   ]    (d)  NO ADDITIONAL VALUATION DATES.

                                       16
<PAGE>

                                 EXECUTION PAGE

         The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts its position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Plan and Trust. The Employer hereby agrees to the provisions of this Plan and
Trust, and in witness of its agreement, the Employer by its duly authorized
officers, has executed this Adoption Agreement, and the Trustee (and Custodian,
if applicable) has signified its acceptance, on: September 16, 2004.

                        Name of Employer:   Hollywood Media Corp.
                                          -----------------------------------
                        Employer's EIN:   65-0385686
                                        -------------------------------------
                        Signed: /s/ Mitchell Rubenstein
                                ---------------------------------------------
                                By: Mitchell Rubenstein, CEO     [Name/Title]

                        Name(s) of Trustee:
                                     Nicholas G. Hall
                                   ------------------------------------------

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

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

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

                        Trust EIN (Optional):

                        Signed: /s/ Nicholas G. Hall
                                ---------------------------------------------
                                By: Nicholas G. Hall             [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]

                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]
                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]

                        Name of Custodian (Optional):

                        Signed:
                                ---------------------------------------------

                                                                 [Name/Title]

                                       17
<PAGE>

31. PLAN NUMBER. The 3-digit plan number the Employer assigns to this Plan for
ERISA reporting purposes (Form 5500 Series) is: 001 .

USE OF ADOPTION AGREEMENT. Failure to complete properly the elections in this
Adoption Agreement may result in disqualification of the Employer's Plan. The
Employer only may use this Adoption Agreement in conjunction with the basic plan
document referenced by its document number on Adoption Agreement page one.

EXECUTION FOR PAGE SUBSTITUTION AMENDMENT ONLY. If this paragraph is completed,
this Execution Page documents an amendment to Adoption Agreement Section(s)
effective , by substitute Adoption Agreement page number(s) .

RELIANCE ON SPONSOR ADVISORY LETTER. The volume submitter practitioner has
obtained from the IRS an advisory letter specifying the form of this Adoption
Agreement and the basic plan document satisfy, as of the date of the advisory
letter, Code ss.401. An adopting Employer may rely on the volume submitter
practitioner's IRS advisory letter only to the extent provided in Announcement
2001-77, 2001-30 I.R.B. The Employer may not rely on the advisory letter in
certain other circumstances or with respect to certain qualification
requirements, which are specified in the advisory letter and in Announcement
2001-77. In order to have reliance in such circumstances or with respect to such
qualification requirements, the Employer must apply for a determination letter
to Employee Plans Determinations of the Internal Revenue Service.

                                       18
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

32. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

33. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

34. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]    (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   Hollywood.com, Inc.
--------------------------------------------------------------         -------------------------------------------------

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               -----------------------------------------
                                                                               By: Mitchell Rubenstein, CEO [Name/Title]
                                                                               -----------------------------------------
                                                                               September 16, 2004              [Date]

                                                                       Participating Employer's EIN:   95-4438846
                                                                                                     ---------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------
By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------
        September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       19
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

35. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

36. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

37. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]    (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   Broadway.com, Inc.
--------------------------------------------------------------         -------------------------------------------

                                                                       By: Mitchell Rubenstein, President

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               ------------------------------------

                                                                               September 16, 2004
                                                                               ------------------------------------
                                                                                                             [Date]

                                                                       Participating Employer's EIN:   65-1025111
                                                                                                     --------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------
By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------

September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       20
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

38. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

39. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

40. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]      (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   Showtimes.com, Inc.
--------------------------------------------------------------         -------------------------------------------

                                                                       By: Mitchell Rubenstein, CO-CEO

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               ------------------------------------
                                                                                                       [Name/Title]
                                                                               September 16, 2004
                                                                               ------------------------------------
                                                                                                             [Date]

                                                                       Participating Employer's EIN:   65-0922070
                                                                                                     --------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------
By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------
September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       21
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

41. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

42. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

43. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]    (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   Theatre Direct of NY, Inc.
--------------------------------------------------------------         -------------------------------------------

                                                                       By: Mitchell Rubenstein, CO-CEO

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               ------------------------------------
                                                                                                       [Name/Title]
                                                                               September 16, 2004
                                                                               ------------------------------------
                                                                                                             [Date]

                                                                       Participating Employer's EIN:   13-3555409
                                                                                                     --------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------

By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------
September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       22
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

44. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

45. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

46. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]    (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   Baseline, Inc.
--------------------------------------------------------------         -------------------------------------------

                                                                       By: Mitchell Rubenstein, CO-CEO

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               ------------------------------------
                                                                                                       [Name/Title]
                                                                               September 16, 2004
                                                                               ------------------------------------
                                                                                                             [Date]

                                                                       Participating Employer's EIN:   65-0943905
                                                                                                     --------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------

By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------
September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       23
<PAGE>

                             PARTICIPATION AGREEMENT

         [ ] CHECK HERE IF NOT APPLICABLE AND DO NOT COMPLETE THIS PAGE.

         The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.21
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Plan as made by the Signatory Employer to the Execution Page of the Adoption
Agreement, except as otherwise provided in this Participation Agreement.

47. EFFECTIVE DATE (1.10) The Effective Date of the Plan for the Participating
Employer is: January 1, 2004 .

48. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))

[   ]    (a)  The adoption of a new plan by the Participating Employer.

[ X ]    (b) The adoption of an amendment and restatement of a plan currently
         maintained by the Participating Employer, identified as: Hollywood
         Media Corp. 401(k) Retirement Savings Plan , and having an original
         effective date of: January 1, 2001 .

49. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or more
of (a) through (d) as applicable): [Note: The Plan Administrator may not credit
more than five years of service immediately preceding the Plan Year in which the
service credit first becomes effective. If the Plan does not credit any
additional predecessor service under Section 1.30 for this Participating
Employer, do not complete this election.]

[ X ]    (a)  ELIGIBILITY. For eligibility under Article II. See Plan
         Section 1.30 for time of Plan entry.

[   ]    (b)  VESTING. For vesting under Article V.

[ X ]    (c) CONTRIBUTION ALLOCATION. For contribution allocations under
         Article III.

[   ]    (d)  EXCEPTIONS. Except for the following Service: __________.
<TABLE>
<S>                                                                      <C>

Name of Plan:                                                          Name of Participating Employer:
Hollywood Media Corp. 401(k) Retirement Savings Plan                   MovieTickets.com, Inc.
--------------------------------------------------------------         -------------------------------------------

                                                                       By: Mitchell Rubenstein, Co-President

                                                                       Signed: /s/ Mitchell Rubenstein
                                                                               ------------------------------------
                                                                                                       [Name/Title]
                                                                               September 16, 2004
                                                                               ------------------------------------
                                                                                                             [Date]

                                                                       Participating Employer's EIN:   43-1877087
                                                                                                     --------------

ACCEPTANCE BY THE SIGNATORY EMPLOYER TO THE EXECUTION PAGE OF THE ADOPTION
AGREEMENT AND BY THE TRUSTEE.

Name of Signatory Employer:                                           Name(s) of Trustee:
Hollywood Media Corp.                                                 Nicholas G. Hall
--------------------------------------------------------------        ---------------------------------------------

By: Mitchell Rubenstein, CEO
--------------------------------------------------------------        ---------------------------------------------
                                                   [Name/Title]                                        [Name/Title]

Signed: /s/ Mitchell Rubenstein                                        Signed: /s/ Nicholas G. Hall
        -----------------------------------------------------                  ------------------------------------
September 16, 2004                                                     September 16, 2004
-------------------------------------------------------------          --------------------------------------------
                                                       [Date]                                                [Date]
</TABLE>

[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]

                                       24
<PAGE>

                                   APPENDIX A
                    TESTING ELECTIONS/EFFECTIVE DATE ADDENDUM

50. The following testing elections and special effective dates apply: [Note:
Except as otherwise provided in the Plan or Adoption Agreement, the general
effective date for GUST provisions is the first Plan Year beginning after
December 31, 1996, except for certain GATT provisions effective for Plan Years
beginning after December 31, 1994.] (Choose one or more of (a) through (n) as
applicable)

[  ]     (a) HIGHLY COMPENSATED EMPLOYEE (1.14). For Plan Years beginning
         after , the Employer makes the following election(s) regarding the
         definition of Highly Compensated Employee:
              (1) [ ] TOP PAID GROUP ELECTION.
              (2) [ ] CALENDAR YEAR DATA ELECTION (FISCAL YEAR PLAN).

[ X ]    (b) 401(K) CURRENT YEAR TESTING. The Employer will apply the current
         year testing method in applying the ADP and ACP tests effective for
         Plan Years beginning after December 31, 2000 . [Note: For Plan Years
         beginning on or after the Employer's execution of its "GUST"
         restatement, the Employer must use the same testing method within the
         same Plan Year for both the ADP and ACP tests.]

[   ]    (c) COMPENSATION. The Compensation definition under Section 1.07 will
         apply for Plan Years beginning after: _______________.

[   ]    (d)  ELECTION NOT TO PARTICIPATE. The election not to participate under
         Section 2.06 is effective: _____________.

[   ]    (e)  401(K) SAFE HARBOR. The 401(k) safe harbor provisions under
         Section 3.01(d) are effective: _____________.

[   ]    (f)  NEGATIVE ELECTION. The negative election provision under
         Section 3.02(b) is effective: _____________.

[   ]    (g) CONTRIBUTION/ALLOCATION FORMULA. The specified contribution(s) and
         allocation method(s) under Sections 3.01 and 3.04 are effective:
         _____________.

[   ]    (h) ALLOCATION CONDITIONS. The allocation conditions of Section 3.06
         are effective: _____________.

[   ]    (i) BENEFIT PAYMENT ELECTIONS. The distribution elections of Section(s)
         _________ are effective: _____________.

[   ]    (j) ELECTION TO CONTINUE PRE-SBJPA REQUIRED BEGINNING DATE. A
         Participant may not elect to defer commencement of the distribution of
         his/her Vested Account Balance beyond the April 1 following the
         calendar year in which the Participant attains age 70 1/2. See Plan
         Section 6.02(A).

[   ]    (k) ELIMINATION OF AGE 70 1/2 IN-SERVICE DISTRIBUTIONS. The Plan
         eliminates a Participant's (other than a more than 5% owner) right to
         receive in-service distributions on April 1 of the calendar year
         following the year in which the Participant attains age 70 1/2 for Plan
         Years beginning after: .

[   ]    (l)  ALLOCATION OF EARNINGS. The earnings allocation provisions under
         Section 9.08 are effective: _____________.

[ X ]    (m) ELIMINATION OF OPTIONAL FORMS OF BENEFIT. The Employer elects
         prospectively to eliminate the following optional forms of benefit:
         (Choose one or more of (1), (2) and (3) as applicable)

     [   ]    (1) QJSA and QPSA benefits as described in Plan Sections 6.04,
              6.05 and 6.06 effective:_____________.

     [   ]    (2) Installment distributions as described in Section 6.03
              effective: _____________.

     [ X ]    (3) Other optional forms of benefit (Any election to eliminate
              must be consistent with Treas. Reg. ss.1.411(d)-4): Single Life
              Annuities effective November 15, 2004 .

[X]      (n) SPECIAL EFFECTIVE DATE(S): Section 1.11 - Employee Exclusions
         effective September 1, 2004; Section 2.01 - Eligibility for Nonelective
         Contributions effective September 1, 2004 .

         For periods prior to the above-specified special effective date(s), the
Plan terms in effect prior to its restatement under this Adoption Agreement will
control for purposes of the designated provisions. A special effective date may
not result in the delay of a Plan provision beyond the permissible effective
date under any applicable law.

                                       25
<PAGE>

                                   APPENDIX B
                    GUST REMEDIAL AMENDMENT PERIOD ELECTIONS

51. The following GUST restatement elections apply: [Note: Except as otherwise
provided in the Plan or Adoption Agreement, the general effective date for GUST
provisions is the first Plan Year beginning after December 31, 1996, except for
certain GATT provisions effective for Plan Years beginning after December 31,
1994.] (Choose one or more of (a) through (j) as applicable. Also complete (k)
and (l).)51 p.2626

[  ]     (a) HIGHLY COMPENSATED EMPLOYEE ELECTIONS. The Employer makes the
         following remedial amendment period elections with respect to the
         Highly Compensated Employee definition:
<TABLE>
<S>                                                                    <C>
              (1) 1997:    [   ] Top paid group election.              [   ] Calendar year election.
                           [   ] Calendar year data election.
              (2) 1998:    [   ] Top paid group election.              [   ] Calendar year data election.
              (3) 1999:    [   ] Top paid group election.              [   ] Calendar year data election.
              (4) 2000:    [   ] Top paid group election.              [   ] Calendar year data election.
              (5) 2001:    [   ] Top paid group election.              [   ] Calendar year data election.
              (6) 2002:    [   ] Top paid group election.              [   ] Calendar year data election.
</TABLE>

[  ]     (b) 401(K) TESTING METHODS. The Employer makes the following remedial
         amendment period elections with respect to the ADP test and the ACP
         test: [Note: The Employer may use a different testing method for the
         ADP and ACP tests through the end of the Plan Year in which the
         Employer executes its GUST restated Plan.]
<TABLE>
<S>                                                               <C>
                                    ADP TEST                                         ACP TEST
              (1) 1997:  [   ]prior year  [   ] current year      1997:  [   ]prior year    [   ]current year
              (2) 1998:  [   ]prior year  [   ] current year      1998:  [   ]prior year    [   ]current year
              (3) 1999:  [   ]prior year  [   ] current year      1999:  [   ]prior year    [   ]current year
              (4) 2000:  [   ]prior year  [   ] current year      2000:  [   ]prior year    [   ]current year
              (5) 2001:  [   ]prior year  [   ] current year      2001:  [   ]prior year    [   ]current year
              (6) 2002:  [   ]prior year  [   ] current year      2002:  [   ]prior year    [   ]current year
</TABLE>

[  ]     (c) DELAYED APPLICATION OF SBJPA REQUIRED BEGINNING DATE. The
         Employer elects to delay the effective date for the required beginning
         date provision of Plan Section 6.02 until Plan Years beginning after: .

[  ]     (d) MODEL AMENDMENT FOR REQUIRED MINIMUM DISTRIBUTIONS. The Employer
         adopts the IRS Model Amendment in Plan Section 6.02(E) effective .
         [Note: The date must not be earlier than January 1, 2001.]

DEFINED BENEFIT LIMITATION

[  ]     (e) CODE SS.415(E) REPEAL. The repeal of the Code ss.415(e)
         limitation is effective for Limitation Years beginning after . [Note:
         If the Employer does not make an election under (e), the repeal is
         effective for Limitation Years beginning after December 31, 1999.]

CODE SS.415(E) LIMITATION. To the extent necessary to satisfy the limitation
under Plan Section 3.17 for Limitation Years beginning prior to the repeal of
Code ss.415(e), the Employer will reduce: (Choose one of (f) or (g))

[   ]    (f)  The Participant's projected annual benefit under the defined
         benefit plan.

[   ]    (g) The Employer's contribution or allocation on behalf of the
         Participant to the defined contribution plan and then, if necessary,
         the Participant's projected annual benefit under the defined benefit
         plan.

COORDINATION WITH TOP-HEAVY MINIMUM ALLOCATION. The Plan Administrator will
apply the top-heavy minimum allocation provisions of Article XII with the
following modifications: (Choose (h) or choose (i) or (j) or both as applicable)

[   ]    (h)  No modifications.

[   ]    (i) For Non-Key Employees participating only in this Plan, the
         top-heavy minimum allocation is the minimum allocation determined by
         substituting % (not less than 4%) for "3%," except: (Choose one of (1)
         or (2))
     [   ]    (1) No exceptions.
     [   ]    (2) Plan Years in which the top-heavy ratio exceeds 90%.

[   ]    (j)  For Non-Key Employees also participating in the defined benefit
         plan, the top-heavy minimum is: (Choose one of (1) or (2))
     [   ]    (1) 5% of Compensation irrespective of the contribution rate of
              any Key Employee: (Choose one of a. or b.)
         [   ]    a.  No exceptions.
         [   ]    b.  Substituting "7 1/2%" for "5%" if the top-heavy ratio
                      does not exceed 90%.
     [   ]    (2) 0%. [Note: The defined benefit plan must satisfy the
              top-heavy minimum benefit requirement for these
              Non-Key Employees.]

                                       26
<PAGE>

ACTUARIAL ASSUMPTIONS FOR TOP-HEAVY CALCULATION. To determine the top-heavy
ratio, the Plan Administrator will use the following interest rate and mortality
assumptions to value accrued benefits under a defined benefit plan:
            .
CASH-OUT/LOOKBACK.

[  ]     (k) CASH-OUT. For Plan Years beginning before August 6, 1997, the
         Plan references to "$5,000" in the Plan are $3,500 in lieu of $5,000.
         The Plan Administrator will apply the $5,000 amount effective . [Note:
         The Employer should specify the date that the Plan Administrator first
         operationally applied the $5,000 amount which may not be earlier than
         Plan Years beginning after August 5, 1997.]

[  ]     (l) LOOKBACK. The determination of the Vested Account balance under
         Plan Section 6.01(A)(6) is effective for distributions made after .
         [Note: The Employer should specify the date that the Plan Administrator
         discontinued application of the "lookback rule." The earliest date that
         the Employer may specify is October 16, 2000.]

                                       27
<PAGE>

                        CHECKLIST OF EMPLOYER INFORMATION
                      AND EMPLOYER ADMINISTRATIVE ELECTIONS

COMMENCING WITH THE       2004       PLAN YEAR

     The Plan permits the Employer to make certain administrative elections not
reflected in the Adoption Agreement. This form lists those administrative
elections and provides a means of recording the Employer's elections. This
checklist is not part of the Plan document.
<TABLE>
<S>                                                                    <C>
52.  EMPLOYER INFORMATION.
     Hollywood Media Corp.
     [Employer Name]
     2255 Glades Road, Suite 219A
     [Address]
     Boca Raton, Florida 33431                                         (561) 998-8000
     --------------------------------------------------------          --------------------------------------------
     [City, State and Zip Code]                                        [Telephone Number]

53. FORM OF BUSINESS.

     (a)  [ X ]  Corporation                                           (b) [   ]  S Corporation
     (c)  [   ]  Limited Liability Company                             (d) [   ]  Sole Proprietorship
     (e)  [   ]  Partnership                                           (f) [   ]  ____________
</TABLE>

54.  SECTION 1.07(F) - NONDISCRIMINATORY DEFINITION OF COMPENSATION. When
     testing nondiscrimination under the Plan, the Plan permits the Employer to
     make elections regarding the definition of Compensation. [Note: This
     election solely is for purposes of nondiscrimination testing. The election
     does not affect the Employer's elections under Section 1.07 which apply for
     purposes of allocating Employer contributions and Participant forfeitures.]

     (a) [ X ] The Plan will "gross up" Compensation for Elective Contributions.

     (b) [  ] The Plan will exclude Elective Contributions.

55. SECTION 4.04 - ROLLOVER CONTRIBUTIONS.55 p.2828

     (a) [ X ] The Plan accepts rollover contributions.

     (b) [  ] The Plan does NOT accept rollover contributions.

56.  SECTION 8.06 - PARTICIPANT DIRECTION OF INVESTMENT/404(C). The Plan
     authorizes Participant direction of investment with Trustee consent. If the
     Trustee permits Participant direction of investment, the Employer and the
     Trustee should adopt a policy which establishes the applicable conditions
     and limitations, including whether they intend the Plan to comply with
     ERISA ss.404(c).56 p.2828

     (a)   [X] The Plan permits Participant direction of investment and is a
           404(c) plan.

     (b)   [ ] The Plan does NOT permit Participant direction of investment or
           is a non-404(c) plan.

57.  SECTION 9.04[A] - PARTICIPANT LOANS. The Plan authorizes the Plan
     Administrator to adopt a written loan policy to permit Participant loans.57
     p.2828

     (a)   [X] The Plan permits Participant loans subject to the following
           conditions:
              (1) [X] Minimum loan amount: $ 1,000 .
              (2) [X] Maximum number of outstanding loans: 1 .
              (3) [X] Reasons for which a Participant may request a loan:
                  a. [X] Any purpose.
                  b. [ ] Hardship events.
                  c. [ ] Other: .
              (4) [X] Suspension of loan repayments:
                  a. [ ] Not permitted.
                  b. [ ] Permitted for non-military leave of absence.
                  c. [X] Permitted for military service leave of absence.
              (5) [ ] The Participant must be a party in interest.

     (b) [ ] The Plan does NOT permit Participant loans.

58.  SECTION 11.01 - LIFE INSURANCE. The Plan with Employer approval authorizes
     the Trustee to acquire life insurance.58 p.2828

     (a) [ ] The Plan will invest in life insurance contracts.

     (b) [X] The Plan will NOT invest in life insurance contracts.

59.  SURETY BOND COMPANY: ______________. Surety bond amount:  $ ____________

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