Document:

ex10-1.htm

    Exhibit 10.1

     

    ASSET
PURCHASE AGREEMENT

     

    dated
as of March __, 2009

     

    by
and between

     

    

     

     

    NCEY
Holdings Corp., and

     

    Brazos
Lateral Holdings Corp.

     

    as
Purchasers

     

    and

     

    

     

     

    New
Century Energy Corp.

     

    Gulf
Coast Oil Corporation, and

     

     

    Century
Resources, Inc.

     

     

    as
Seller

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSET
PURCHASE AGREEMENT

     

    This
ASSET PURCHASE AGREEMENT, dated as of _______________ (this “Agreement”), by and
among New Century Energy Corp., Gulf Coast Oil Corporation, and Century
Resources, Inc. (together, the “Sellers”) and NCEY
Holdings Corp. (“NCEY”) and Brazos
Lateral Holdings Corp. (“Brazos Lateral”), and if applicable, their designee
(NCEY, Brazos Lateral, and such designee, as applicable “Purchaser”).

     

     

    BACKGROUND

     

    On July
28, 2008, (the “Petition Date”),
Sellers commenced voluntary petitions for relief under chapter 11 of the United
States Code in the United States Bankruptcy Court for the Southern District of
Texas (the “Chapter 11
Cases”).

     

     

    Sellers
desire to sell, transfer and assign to Purchaser, and Purchaser desires to
purchase, acquire and assume from Sellers, pursuant to sections 363 and 365
of the Bankruptcy Code, all of the Purchased Assets and Assumed Liabilities, on
the terms and subject to the conditions set forth in this Agreement all as more
specifically provided herein.

     

     

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, the parties hereby agree as
follows:

     

     

    ARTICLE
I

     

    DEFINITIONS

     

    1.1           Certain
Definitions.

     

    For
purposes of this Agreement, the following terms shall have the meanings
specified in this Section 1.1:

     

    “Affiliate” means,
with respect to any Person, any other Person that, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person, and the term “control” (including the terms
“controlled by” and “under common control with”) means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting securities, by
contract or otherwise.  A Person is also an Affiliate of a Seller if a
family member (i.e., a spouse, child, parent or sibling) of an employee,
shareholder, owner, manager, director or officer of such Seller controls such
Person.

     

    “Alternative
Transaction” means any transaction involving either (i) except as
contemplated by this Agreement, the consummation of the sale of all or any
portion of the Purchased Assets by Sellers to a purchaser other than Purchaser
and/or one or more of its Affiliates at any time during the pendency of the
Chapter 11 Cases or as a part of, or pursuant to, any plan of reorganization
confirmed in the Chapter 11 Cases or (ii) except to the extent the Closing has
occurred, the filing of a plan of reorganization by Sellers or the confirmation
of a plan of reorganization with respect to Sellers that does not include a sale
of all, or any portions of which in the aggregate involve substantially all, of
the Purchased Assets by Sellers to Purchaser and/or one or more Affiliates of
Purchaser; provided that
“Alternative Transaction” shall not include an orderly liquidation of Sellers’
assets in which (x) Sellers’ assets are sold on an asset-by-asset basis or
in lots of assets, any one of which does not encompass all or substantially all
of Sellers’ assets, or (y) Sellers sell their assets in bulk to an auctioneer or
liquidator.

    
      
        
        

      

      
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    “Assumed Contracts”
has the meaning given to such term in Section 2.1 of this
Agreement.

     

    “Assumed Executory
Contracts” has the meaning given to such term in Section 2.1 of this
Agreement.

     

    “Assumed Liabilities”
has the meaning given to such term in Section 2.3 of this
Agreement.

     

    “Bankruptcy Code”
means Title 11 of the United States Code.

     

    “Bankruptcy Court”
means the United States Bankruptcy Court for the Southern District of Texas,
Houston Division, or such other court having jurisdiction over the Chapter 11
Cases originally administered in the United States Bankruptcy Court for the
Southern District of Texas, Houston Division.

     

    “Business” means the
business of Sellers as of the date hereof relating to the exploration,
production and sale of oil, gas, or other hydrocarbons, minerals, or substances
therefrom.

     

    “Business Day” means
any day of the year on which national banking institutions in New York City are
open to the public for conducting business and are not required or authorized to
close.

     

    “Chapter 11 Cases” has
the meaning given to such term in the Background Section to this
Agreement.

     

    “Closing” has the
meaning given to such term in Section 4.1 of this Agreement.

     

    “Closing Date” has the
meaning given to such term in Section 4.1 of this Agreement.

     

    “COBRA” means Part 6
of Subtitle B of Title I of ERISA, Section 4980B of the Code and any similar
state law.

     

    “Claims” means any and
all claims as defined in section 101(5) of the Bankruptcy Code.

     

    “Code” means the
Internal Revenue Code of 1986, as amended.

     

    “Competing Bid” has
the meaning given to such term in Section 7.6 of this Agreement.

    
      
        
        

      

      
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    “Confidential
Information” means any confidential information with respect to,
including, without limitation, methods of operation, customers, customer lists,
Products, prices, fees, costs, Technology, inventions, trade secrets, know-how,
software, marketing methods, plans, personnel, suppliers, competitors, markets
or other specialized information or proprietary matters.

     

    “Confidentiality
Agreement” means the agreement attached hereto as Exhibit
__.

     

    “Confirmation Hearing”
means the hearing scheduled in the Bankruptcy Court on _________,
2009.

     

    “Confirmation Order”
means the order to be entered by the Bankruptcy Court at the Confirmation
Hearing in substantially the same form as Exhibit D.

     

    “Contract” means any
written or oral contract, indenture, note, bond, lease (excluding any Assumed
Lease), license or other legally binding agreement or arrangement.

     

    “Copyrights” means all
copyrightable works, and all United States and foreign registered copyrights and
applications, registrations and renewals therefore owned by Sellers, and any
past, present or future claims or causes of actions arising out of or related to
any infringement or misappropriation of any of the foregoing, that are used or
useful in connection with or related to the Purchased Assets as of the date
hereof.  The Copyrights include, but are not limited to, those listed
on Schedule 1.1(c).

     

    “Credit Bid”
means the bid of
Purchaser for the purchase of the Purchased Assets pursuant to this Agreement or
at an auction that may be offset from the Purchase Price in accordance with
Section 363(k) of the Bankruptcy Code.

     

    “Credit Bid Amount”
means a Credit Bid in an amount equal to or less than the Lenders
Debt.

     

    “Cure Amount” has the
meaning given to such term in Section 2.3 of this Agreement.

     

    “Debt” for any Person,
means all obligations of such Person (a) for borrowed money (including
principal, accrued by unpaid interest, prepayment premiums or penalties and
expenses); (b) evidenced by notes, bonds, debentures or similar instruments; (c)
under or relating to letters of credit (including any obligation to reimburse
the issuer thereof with respect to amounts drawn on such instruments); (d) to
pay any accrued dividends or distributions (or dividends or distributions that
have otherwise been declared and not yet paid) or to redeem any securities or
rights; (e) under any lease of any property, which, in accordance with GAAP, is
required to be accounted for as a capital lease on the consolidated balance
sheet of such Person and (f) in respect of the obligations described in clauses
(a) through (e) above, (i) any guarantee of the payment or performance of, or
any Liability in respect of, any Debt or other obligation of any other Person,
(ii) any other arrangement whereby credit is extended to one obligor on the
basis of any promise or undertaking of another Person (A) to pay the Debt of
such obligor, (B) to purchase any obligation owed by such obligor to discharge
one or more of its obligations, or (D) to maintain the capital, working capital,
solvency or general financial condition of such obligor, and (iii) any Liability
as a general partner of a partnership or as a venturer in a joint venture in
respect of Debt or other obligations of such partnership or joint venture of any
other Person.

    
      
        
        

      

      
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    “D&O Claims” has
the meaning given to such term in Section 2.2 of this Agreement.

     

    “Domain Names” means
the internet domain names owned by Sellers, including without limitation those
that are listed or described on Schedule 1.1(b), and all
registrations, applications and renewals related to the foregoing.

     

    “Employee Plans” has
the meaning given to such term in Section 5.7(a) of this Agreement.

     

    “Employees” means all
individuals, whether or not actively at work as of the date hereof, who are
employed by Sellers or their Subsidiaries in connection with the Business,
together with individuals who are hired in respect of the Business after the
date hereof and prior to the Closing.

     

    “Environmental Law”
means any Law that relates to, or otherwise imposes liability or standards of
conduct concerning, pollution, or protection of the environment, or protection
of human or occupational health from environmental hazards, including those
concerning discharges, releases or threatened releases of, petroleum or
hazardous substances.

     

    “Equipment” means all
machinery, equipment, furniture, trade fixtures, furnishings, vehicles,
leasehold improvements and other tangible personal property used in connection
with the Business as presently conducted, including, without limitation, all
artwork, desks, chairs, tables, Hardware, copiers, telephone lines and numbers,
facsimile machines and other telecommunication equipment, cubicles and
miscellaneous office furnishings and supplies, as well as pumps,
surface and subsurface well equipment, gas plants, lines and facilities,
sulfur recovery facilities, compressors, compressor stations, dehydration
facilities, treating facilities, gathering lines, flow lines, valves,
meters, separators, tanks, tank batteries, and other fixtures and facilities
used in connection with the Leased Real Property or the Business.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

     

    “ERISA Affiliate” has
the meaning given to such term in Section 5.7(a) of this Agreement.

     

    “Excluded Assets” has
the meaning given to such term in Section 2.2 of this Agreement.

     

    “Excluded Liabilities”
has the meaning given to such term in Section 2.4 of this
Agreement.

     

    “Financial Statements”
has the meaning given to such term in Section 5.12 of this
Agreement.

    
      
        
        

      

      
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    “GAAP” means generally
accepted accounting principles in the United States as of the date hereof as
applied in a manner consistent with the Seller’s historical accounting
policies.

     

    “Governmental Body”
means any government or governmental or regulatory body thereof, or political
subdivision thereof, whether foreign, federal, state or local, or any agency,
instrumentality or authority thereof, or any court or arbitrator (public or
private).

     

    “Hardware” means any
and all computer and computer-related hardware, including, without limitation,
computers, file servers, facsimile servers, scanners, color printers, laser
printers and networks.

     

    “Hazardous Substances”
means any wastes, substances, products, pollutants or materials, whether solid,
liquid or gaseous, that (i) is or contains asbestos, polychlorinated biphenyls,
radioactive materials, oil, petroleum or any fraction thereof, (ii) requires
removal, remediation or reporting under any Environmental Law, or is defined,
listed or identified as a “contaminant”, “pollutant”, “toxic substance”, “toxic
material”, “hazardous waste” or “hazardous substance” or words of similar
meaning and regulatory effect thereunder or (iii) is toxic, explosive,
corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or
otherwise hazardous and is regulated as such by any Governmental Body under any
Environmental Law.

     

    “Intellectual
Property” means intellectual property or other proprietary rights of
every kind throughout the world, both domestic and foreign, which, in each case,
are used or useful in connection with or related to the Business as of the date
hereof, including all inventions and improvements thereon, Patents, Trademarks,
Domain Names, Trademark Rights, Copyrights, Technology and trade
secrets.

     

    “Interest” means any
defect or imperfection in title, encumbrance, interest, Claim, charge, pledge,
mortgage, deed of trust, security interest, lien, lease, sublease, license,
option, right of first refusal, easement, right-of-way, servitude, covenant,
condition, proxy, voting trust or agreement or transfer restriction under any
shareholder or similar agreement.

     

    “Inventory” means all
finished goods, work in process, raw materials, goods in transit, goods at
customer sites and other inventory or goods held for sale of a person in all
forms, wherever located, now or hereafter existing, including without limitation
all produced oil, gas, condensate and natural gas liquids attributable to the
Leased Real Property.

     

    “Knowledge of Sellers”
means the actual knowledge of those officers and directors of Sellers identified
on Schedule
1.1(d), assuming
reasonable inquiry of such individuals in the Ordinary Course of Business, but
without any separate duty to investigate.

     

    “Laurus” or “LMF” means Laurus
Mater Fund, Ltd., a Cayman Islands company and each of its Affiliates,
successors and assigns.

     

    “Laurus’s
Allowed Claim” means the amount of Laurus’s allowed claim in the Chapter 11
Cases as may be determined by the Bankruptcy Court, and which amount shall not
be less than $66,000,000 as set forth in the Stipulated Final Cash Collateral
Order (Dkt 95) entered by the Bankruptcy Court on September 29,
2008.

    
      
        
        

      

      
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    “Law” means any
federal, state or local law, common law, statute, code, ordinance, rule or
regulation.

     

    “Leased Real Property”
has the meaning given to such term in Section 2.1 of this
Agreement.

     

    “Legal Proceeding”
means any judicial, administrative or arbitral actions, demands, suits,
proceedings (public or private), audit or investigation by or before a
Governmental Body or arbitral tribunal.

     

    “Lenders Debt” is the
amount stated in Section 3.1 of this Agreement, or the amount of Laurus’s
Allowed Claim, which ever is the greatest uncontested amount.

     

    “Liability” means any
debt, liability or obligation (whether direct or indirect, known or unknown,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due
or to become due) and including all costs and expenses relating
thereto.

     

    “Licensed Intellectual
Property” means all Patents, Trademarks, Domain Names, Trademark Rights,
Copyrights and Technology that are licensed to Sellers from another Person as
set forth on Schedule
1.1(g).

     

    “Losses” means
collectively, all damages, claims, liabilities, fines, penalties, levies, fees,
costs or expenses (including reasonable expenses and disbursements of
accountants and legal counsel).

     

    “Material Adverse
Effect” means any events, circumstances, development, change or effect
that, individually or in the aggregate with all other events, circumstances,
developments, changes and effects, has: (i) a material adverse effect on the
Purchased Assets, properties, results of operations or consolidated financial
condition of Sellers (taken as a whole); provided, however, that none of
the following shall be deemed to constitute, and none of the following shall be
taken into account in determining whether there has been, a Material Adverse
Effect: any adverse change, event, development, or effect arising from or
relating to (1) acts of war or terrorism occurring after the date hereof so long
as the Purchased Assets are not disproportionately affected thereby; (2) any
change in the market price or trading volume of the common stock of the Sellers
after the date hereof; (3) any change arising from and related to the market in
general in which Sellers operate the Business (whether in the United States or
abroad), the United States economy as a whole, or international economy; (4)
changes in GAAP or (5) the commencement of the Chapter 11 Cases; or (ii) a
material adverse effect on the ability of Sellers to consummate the transactions
contemplated by this Agreement, in each case (clause (i) or (ii)
above).

     

    “Notes” means (i)
Secured Convertible Term Note, dated June 30, 2005 issued by New Century Energy
Corp. (“NCEY”)
to Laurus Master Fund, Ltd. and subsequently assigned to affiliates of LMF (as
amended, restated, modified and/or supplemented from time to time, the “June 2005 NCEY
Note”), (ii) Secured Term Note, dated September 19, 2005, issued by NCEY
to Laurus Master Fund, Ltd. and subsequently assigned to affiliates of LMF (as
amended, restated, modified and/or supplemented from time to time, the “September 2005 NCEY
Note”), (iii) Secured Term Note, dated December 28, 2006, issued by NCEY
to Laurus and subsequently assigned to affiliates of Laurus Master Fund, Ltd.
(as amended, restated, modified and/or supplemented from time to time, the
“December 2006 NCEY
Note”), (iv) Secured Term Note, dated November 30, 2007, issued by NCEY
to Valens U.S. SPV I, LLC (“Valens US”) and
subsequently assigned to affiliates of Valens US (as amended, restated, modified
and/or supplemented from time to time, the “First November 2007 NCEY
Note”), (v) Secured Term Note, dated November 30, 2007, issued by NCEY to
Valens Offshore SPV II, Corp. (“Valens Offshore II”)
as may be subsequently assigned to affiliates of Valens Offshore II (as amended,
restated, modified and/or supplemented from time to time, the “Second November
2007 NCEY Note”), (vi) Secured Term Note, dated April 27, 2006, issued by Gulf
Coast Oil Corporation (“Gulf”) to Laurus
Master Fund, Ltd. and subsequently assigned to affiliates of LMF (as amended,
restated, modified and/or supplemented from time to time, the “April 2006 Gulf
Note”), (vii) Secured Term Note, dated November 20, 2007 issued by Gulf
to Valens Offshore II as may be subsequently assigned to affiliates of Valens
Offshore II (as amended, restated, modified and/or supplemented from time to
time, the “First
November 2007 Gulf Note”) and (viii) the Secured Term Note, dated
November 20, 2007 issued by Gulf to Valens US as may be subsequently assigned to
affiliates of Valens US (as amended, restated, modified and/or supplemented from
time to time, the “Second November 2007 Gulf
Note”).

    
      
        
        

      

      
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    “Order” means any
order, injunction, judgment, decree, ruling, writ, assessment or arbitration
award of a Governmental Body.

     

    “Ordinary Course of
Business” means the ordinary and usual course of normal day-to-day
operations of the Business since the Petition Date.

     

    “Party” means each of
Sellers and Purchaser and “Parties” means
collectively Sellers and Purchasers.

     

    “Patents” means the
United States patents and patent applications owned by Sellers, including, any
continuations, divisionals, continuations in part, or reissues of patent
applications and patents issuing thereon and any past, present or future claims
or causes of action arising out of or related to any infringement or
misappropriation of any of the foregoing, that are used or useful in connection
with or related to the Business as of the date hereof.  The Patents
include, but are not limited, to those listed on Schedule
1.1(e).

     

    “Permits” means any
approvals, authorizations, consents, licenses, permits or certificates of a
Governmental Body.

     

    “Permitted Exceptions”
means: (i) Interests relating to Taxes which are not due and payable as of the
Closing Date or the amount or validity of which is being contested in good faith
by appropriate proceedings, provided an appropriate reserve for such Taxes is
established in accordance with GAAP; (ii) mechanics’, carriers’, workers’,
repairers’, materialmen’s and similar Interests arising or incurred in the
Ordinary Course of Business, for amounts which are not due and payable as of the
Closing Date or the amount or validity of which is being contested in good faith
by appropriate proceedings, provided an
appropriate reserve for such Interests is established in accordance with GAAP;
(iii) any Interests disclosed on Schedule 1.1(h); and
(iv) any other Interests which will be discharged on or before the Closing
Date in connection with the Confirmation Order or any other actions of the
Bankruptcy Court.

    
      
        
        

      

      
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    “Person” means any
individual, corporation, limited liability company, partnership, firm, joint
venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity.

     

    “Petition Date” has
the meaning given to such term in the Background Section to this
Agreement.

     

    “Plan” has the meaning
given to such term in Section 7.1 of this Agreement.

     

    “Products” means any
and all products developed, manufactured, marketed or sold in connection with
the Business.

     

    “Purchased Assets” has
the meaning given to such term in Section 2.1 of this Agreement.

     

    “Purchased Intellectual
Property” means all of Sellers’ and the Seller Affiliates’ right, title
and interest in and to Intellectual Property (other than Licensed Intellectual
Property).

     

    “Purchaser” has the
meaning given to such term in the Introductory Section to this
Agreement.

     

    “Purchaser Documents”
has the meaning given to such term in Section 6.2 of this
Agreement.

     

    “Purchaser Material Adverse
Effect” means a material adverse effect on the ability of Purchaser to
(i) consummate the transactions contemplated hereby or the Purchaser Documents
without any material delay or (ii) perform their respective obligations under
this Agreement or the Purchaser Documents.

     

    “Purchaser Parties”
has the meaning given to such term in Section 12.2 of this
Agreement.

     

    “Purchaser Plans” has
the meaning given to such term in Section 9.2 of this Agreement.

     

    “Release” means any
release, spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching, or migration at, into or onto the environment,
including movement or migration through or in the environment, whether sudden or
non-sudden and whether accidental or non-accidental, or any release, emission or
discharge as those terms are defined in any applicable Environmental
Law.

     

    “Rental Agreement”
means a lease, rental agreement or similar contract, license or
arrangement

    
      
        
        

      

      
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    “Required Consents”
has the meaning given to such term in Section 10.2 of this
Agreement.

     

    “Seller Documents” has
the meaning given to such term in Section 5.2 of this Agreement.

     

    “Seller Party” has the
meaning given to such term in Section 12.3 of this Agreement.

     

    “Sellers” has the
meaning given to such term in the Introductory Section to this
Agreement.

     

    “Subsidiary” means
any Person of which a majority of the outstanding voting securities or other
voting equity interests are owned, directly or indirectly, by
Seller.

     

    “Tax Authority” means
any federal, state, local or foreign government, or any agency, instrumentality
or employee thereof, charged with the administration of any Law relating to
Taxes.

     

    “Tax Return” means all
returns, declarations, reports, estimates, information returns and statements
required to be filed in respect of any Taxes.

     

    “Taxes” means
(i) all federal, state, local or foreign taxes, charges or other
assessments, including, without limitation, all net income, gross receipts,
capital, sales, use, ad valorem, value added,
transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp,
occupation, property and estimated taxes; and (ii) all interest, penalties,
fines, additions to tax or additional amounts imposed by any Tax Authority in
connection with any item described in clause (i).

     

    “Technology” means,
collectively, all designs, formulae, algorithms, procedures, methods,
techniques, know-how, research and development, technical data, programs,
subroutines, tools, materials, specifications, processes, inventions (whether
patentable or unpatentable and whether or not reduced to practice), apparatus,
creations, improvements, works of authorship and other similar materials, and
all recordings, graphs, drawings, reports, analyses, and other writings, and
other tangible embodiments of the foregoing, in any form whether or not
specifically listed herein, and all related technology, that are used in,
incorporated in, embodied in, displayed by, or are used in the design, used in
the development, used in the reproduction, used in the maintenance or used in
the modification of, any of the Products.

     

    “Termination Date”
means ___________, 2009.

     

    “Trademarks” means the
trademark registrations and applications for trademark registration owned by
Sellers, together with the goodwill associated with any of the foregoing, and
all applications, registrations and renewals thereof, and any past, present or
future claims or causes of action arising out of or related to any infringement
or misappropriation of any of the foregoing, that are used or useful in
connection with or related to the Business as of the date hereof.  The
Trademarks include, but are not limited to, those listed on Schedule
1.1(f).

    
      
        
        

      

      
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    “Trademark Rights”
means all common law rights in the United States in trade names, corporate
names, logos, slogans, designs, trade dress, and unregistered trademarks and
service marks, together with all translations, adaptations, derivations and
combinations thereof, and the goodwill associated with any of the foregoing,
which, in each case, are used by Sellers with regard to the Business as of the
date hereof.

     

    “Transfer Taxes” means
any and all sales, use stamp, documentary stamp, filing, recording, transfer or
similar fees or taxes or governmental charges (including any interest and
penalty thereon) payable in connection with the transactions contemplated by
this Agreement.

     

    “Transferred
Employees” has the meaning given to such term in Section 9.1(a) of this
Agreement.

     

    “Undisclosed Contract”
has the meaning given to such term in Section 2.1 of this
Agreement.

     

    “WARN” or “WARN Act” means the
Worker Adjustment and Retraining Notification Act of 1988, as amended, and any
similar state Law, and the rules and regulations thereunder.

     

    1.2           Other Definitional and
Interpretive Matters.

     

    (a)           Unless
otherwise expressly provided, for purposes of this Agreement, the following
rules of interpretation shall apply:

     

    Calculation of Time
Period.  When calculating the period of time before which,
within which or following which any act is to be done or step taken pursuant to
this Agreement, the date that is the reference date in calculating such period
shall be excluded.  If the last day of such period is a non-Business
Day, the period in question shall end on the next succeeding Business
Day.

     

    Dollars.  Any
reference in this Agreement to $ shall mean dollars of the United States of
America.

     

    Exhibits/Schedules.  All
Exhibits and Schedules annexed hereto or referred to herein are hereby
incorporated in and made a part of this Agreement as if set forth in full
herein.  Any matter or item disclosed on one schedule shall be deemed
to have been disclosed on each other schedule where such matter or item’s
relevance is readily apparent on the face of such item.  Any
capitalized terms used in any Schedule or Exhibit but not otherwise defined
therein shall be defined as set forth in this Agreement.  The
Schedules shall be subject to changes and modifications from time to time that
are reasonably acceptable to the Sellers and the Purchaser.

     

    Gender and
Number.  Any reference in this Agreement to gender shall
include all genders, and words imparting the singular number only shall include
the plural and vice versa.

     

    Headings.  The
provision of a Table of Contents, the division of this Agreement into Articles,
Sections and other subdivisions and the insertion of headings are for
convenience of reference only and shall not affect or be utilized in construing
or interpreting this Agreement.  All references in this Agreement to
any “Section” are to the corresponding Section of this Agreement unless
otherwise specified.

    
      
        
        

      

      
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    Herein.  The
words such as “herein,” “hereinafter,” “hereof” and “hereunder” refer to
this Agreement as a whole and not merely to a subdivision in which such words
appear unless the context otherwise requires.

     

    Including.  The
words such as “includes” and “including” shall mean “including without
limitation”.

     

    (b)           The
parties hereto have participated jointly in the negotiation and drafting of this
Agreement and, in the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as jointly drafted by the Parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring
any Party by virtue of the authorship of any provision of this
Agreement.

     

    ARTICLE
II

     

    PURCHASE
AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES

     

    2.1           Purchase and Sale of
Assets. On the terms and subject to the conditions set forth in this
Agreement, at the Closing, Purchaser shall purchase, acquire and accept from
Sellers, and Sellers shall sell, transfer, assign, convey and deliver to
Purchaser all of Sellers’ right, title and interest in, to and under the
Purchased Assets.  “Purchased Assets”
shall mean all assets, properties, interests and rights of Sellers, other than
the Excluded Assets, as of the Closing, used or useful in connection with or
related to the Business, including:

     

    (a)           (i)
all leasehold estates created by the oil and gas leases described on Schedule 2.1(b) (the “Leased Real
Property”), including any amendments or extension of said leases, or new
leases covering the same property (in whole or in part) covered by said leases,
together with all contract rights and privileges; surface, reversionary, future
or remainder interests; and all other rights titles and interests associated
with the Leased Real Property or lands or leases pooled therewith; and (ii) all
oil, gas, water disposal and other wells located on the Leases or on lands
pooled therewith (the "Wells"), including, but not limited to, the wells
described on Schedule
2.1(b), together with all of Seller's interest in the rights
and appurtenances incident thereto;

     

    (b)           (i)
all contracts and agreements concerning the Leased Real Property, including, but
not limited to, unit agreements, pooling agreements, areas of mutual
interest agreements, farmout agreements, farmin agreements, saltwater
disposal agreements, water injection agreements, line well injection
agreements, road use agreements, drilling contracts, operating agreements,
well service contracts, production sales contracts, gas contracts, gas
balancing agreements, storage or warehouse agreements, supplier contracts,
service contracts, construction agreements, division orders and transfer
orders, insofar as and only insofar as they relate to the Leased Real
Property, and (iii) all Contracts and purchase orders related to the Business
which are made between the date hereof and Closing in accordance with the terms
of this Agreement, and as agreed to in writing by Laurus with such agreement not
to be unreasonably withheld (the “Assumed Contracts”);

    
      
        
        

      

      
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    (c)           the
Purchased Intellectual Property, together with the right to sue and recover for
past, present or future infringements or misappropriations thereof, and all
telephone numbers assigned to Sellers;

     

    (d)           all
leases and contracts as listed on Schedule 2.1(e) (the
“Assumed Executory
Contracts”);

     

    (e)           all
Equipment except for any equipment or tangible property held by Sellers pursuant
to a Rental Agreement unless the Rental Agreement is an Assumed Contract or an
Assumed Lease;

     

    (f)           
all Inventory;

     

    (g)           all
accounts receivable of the Sellers, except to the extent an Excluded
Asset;

     

    (h)           all
deposits and prepaid expenses set forth on Schedule
2.1(i);

     

    (i)           
all lockboxes and bank accounts and all cash and cash equivalents;

     

    (j)           
all books, records, papers and instruments of whatever nature and wherever
located that are in the possession or control of the Sellers that are used or
useful in connection with or relate to the Business or the Purchased
Assets;

     

    (k)           all
insurance proceeds, claims and causes of action relating to the Purchased
Assets; 

     

    (l)           
all rights, privileges, Permits, Claims, set-offs causes of action, and options
of the Sellers to the extent transferable, except with respect to the Excluded
Assets or the Excluded Liabilities, and excluding all rights and avoidance
Claims of Sellers arising under Chapter 5 of the Bankruptcy Code;
and

     

    (m)           subject
to the exclusions set forth in this Agreement, all other or additional
privileges, rights, interests, properties and assets of every kind and
description and wherever located that are used or useful in connection with the
Business as presently conducted.

     

    Notwithstanding
anything to the contrary contained herein, Purchaser may (x) at any time up to
fifteen (15) days prior to the Confirmation Hearing (except where the
counterparty to a Contract or lease consents (in which case Purchaser may
supplement, as applicable, Schedule 2.1(e) at
any time prior to the Confirmation Hearing)) supplement, as applicable, Schedule 2.1(e) to
add any Contract or lease that was not previously listed thereon, in which case
such Contract or lease shall be, as applicable, an Assumed Contract or an
Assumed Lease, or (y) at any time prior to the Closing remove any Contract
or lease from, as applicable, Schedule 2.1(e)
listed thereon, in which case such Contract or lease shall not be, as
applicable, an Assumed Contract or Assumed Lease, but rather shall be an
Excluded Asset.  In the case of any Contract or lease the existence of
which were not disclosed to the Purchaser in reasonable detail prior to the date
hereof (an “Undisclosed
Contract”), Purchaser may remove or add such Undisclosed Contract to
Schedule
2.1(e), as applicable, at any time prior to Closing, and Sellers shall
take all actions desirable or necessary, including filing any necessary or
desirable motions or applications and obtaining any appropriate Orders from the
Bankruptcy Court, in order to effectuate the assignment of such Undisclosed
Contract to the Purchaser.

    
      
        
        

      

      
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    2.2           Excluded
Assets.  Nothing contained herein shall be deemed to sell,
transfer, assign or convey the Excluded Assets to Purchaser, and Sellers shall
retain all right, title and interest to, in and under the Excluded
Assets.  “Excluded Assets”
shall mean the following assets of Sellers:

     

    (a)           any
and all rights under this Agreement, and any rights, Claims, counterclaims,
demands and causes of action of Sellers that relate to the Excluded Liabilities,
including, without limitation, avoidance Claims or causes of action arising
under the Bankruptcy Code or applicable state law, including, without
limitation, all rights and avoidance Claims of Sellers arising under Chapter 5
of the Bankruptcy Code, and, except for Claims, counterclaims, causes of action
and demands that are expressly described herein as Purchased Assets (including
those included in the definitions of Copyrights, Patents and Trademarks), any
and all Claims, counterclaims, demands, and causes of action of Sellers
against any current or former directors, officers,  attorneys,
accountants, investment bankers, and other professionals, employees,
shareholders or agents of Seller sounding in tort or otherwise arising
under the Bankruptcy Code or applicable state law  (the “D&O
Claims”) and any directors and officers insurance
policies;

     

    (b)           all
leases other than the Assumed Contracts or Assumed Executory Contracts or
associated with the Leased Real Property, and all Contracts other than the
Assumed Contracts and Assumed Executory Contracts, including any accounts
receivable arising out of or in connection with any Contracts other than the
Assumed Contracts and Assumed Executory Contracts;

     

    (c)           any
and all deposits and prepaid expenses that are not set forth on Schedule 2.1(i) and
any and all instruments, letters of credit proceeds, unbilled costs and fees,
and accounts primarily relating to any Excluded Assets;

     

    (d)           the
Purchase Price;

     

    (e)           any:
(i) confidential personnel and medical records pertaining to any Employee to the
extent such records may not be transferred to Purchaser pursuant to applicable
Law; (ii) other books and records that Sellers are required by Law to retain
including, without limitation, Tax Returns, taxpayer and other identification
numbers, financial statements and corporate or other entity filings; provided, that
Purchaser shall have the right to make copies of any portions of such retained
books and records to the extent that such portions relate to the Business or any
of the Purchased Assets; (iii) any information management systems of
Sellers, other than those used in or useful in connection with or related to the
Business; and (iv) minute books, stock ledgers and stock certificates of any
Seller or any of its Subsidiaries except for entities the stock of which, if
any, is a Purchased Asset;

     

    (f)           any
claim, right or interest of Sellers in or to any refund, rebate, abatement or
other recovery for Taxes, together with any interest due thereon or penalty
rebate arising therefrom, for any Tax period (or portion thereof) ending on or
before the Closing Date;

     

    (g)           assets
of any Employee Plan, except as provided in Article IX; and

    
      
        
        

      

      
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    (h)           other
assets listed on Schedule
2.2(h).

     

    2.3           Assumption of
Liabilities.  On the terms and subject to the conditions set
forth in this Agreement, at the Closing, Purchaser shall assume the following,
and only the following, Liabilities of Sellers (the “Assumed
Liabilities”):

     

    (a)           all
Liabilities relating to the Purchased Assets that arise from events, facts or
circumstances that occur after the Closing;

     

    (b)           all
Liabilities of Sellers under the Assumed Contracts and Assumed Executory
Contracts arising after the Closing;

     

    (c)           Liabilities
(whether known or unknown) arising from the sale of Products or Inventory after
the Petition Date pursuant to product warranties (provided that the only
liability assumed under such warranties is the obligation to replace defective
product), product returns and rebates;

     

    (d)           amounts
payable under Section 365 of the Bankruptcy Code to cure monetary defaults under
the Assumed Contracts and the Assumed Executory Contracts (the “Cure
Amount”);

     

    (e)           all
other Liabilities with respect to the Purchased Assets arising after the
Closing; and

     

    (f)           all
Liabilities relating to amounts required to be paid by Purchaser
hereunder.

     

    2.4           Excluded
Liabilities.  Notwithstanding anything in this Agreement to the
contrary, except for the Assumed Liabilities specifically described in Section
2.3 (it being understood that if a Liability could be construed to be described
in both Section 2.3 and Section 2.4, then it shall be deemed an Excluded
Liability), Purchaser shall not assume or be liable for, and shall be deemed not
to have assumed or be liable for, any of the Liabilities of the Sellers
(collectively, the “Excluded
Liabilities”), which Excluded Liabilities include:

     

    (a)           all
Liabilities arising out of Excluded Assets, including Contracts that are not
Assumed Contracts or Assumed Executory Contracts;

     

    (b)           except
for the Assumed Liabilities described in Schedule 2.3(d), Liabilities (whether
known or unknown) arising from the sale of Products of Inventory prior to the
Closing, whether pursuant to product warranties, product recalls, returns and
rebates or otherwise;

     

    (c)           except
as provided in Article IX, all Liabilities with respect to all employee benefit
plans, policies, agreements and arrangements of the Sellers and their
Affiliates, including all Employee Plans, and any Liability to or in respect of,
or arising out of or in connection with, the employment by any of the Sellers or
cessation of employment with any of the Sellers of any employees or independent
contractors or former employees or independent contractors of any of the
Sellers, including any severance obligations that arise on or prior to the
Closing Date;

    
      
        
        

      

      
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    (d)           except
for the Assumed Liabilities described in Schedule 2.3(d), all Liabilities for
(i) Taxes of Sellers (including all Liabilities for Taxes relating to the
Purchased Assets) for any Tax periods (or portions thereof) ending on or before
the Closing Date and (ii) Transfer Taxes;

     

    (e)           Liabilities
incurred in the Ordinary Course of Business and existing prior to the filing of
the Chapter 11 Cases that are subject to compromise under the Bankruptcy Code
(the “Compromised
Liabilities”);

     

    (f)           any
Debt of Sellers;

     

    (g)           all
Liabilities relating to amounts required to be paid by Sellers
hereunder;

     

    (h)           all
Liabilities associated with brokers, finders or other consultants or advisors to
Sellers entitled to a fee or reimbursement of expenses with respect to this
transaction; and

     

    (i)           all
other Liabilities, accrued expenses, accounts payable of Seller arising from or
associated with the Business or the Permits arising from events, facts or
circumstances occurring before the Closing, except to the extent expressly
identified as an Assumed Liability.

     

    2.5           Further Conveyances and
Assumptions.

     

    (a)           From
time to time following the Closing, Sellers shall, or shall cause their
Affiliates to, make available to Purchaser on a timely basis such data in
personnel records of Employees as is reasonably necessary for Purchaser to
transition such employees into Purchaser’s records to the extent not prohibited
by applicable Law.

     

    (b)           From
time to time following the Closing, Sellers and Purchaser shall, and shall cause
their respective Affiliates to, on a timely basis, execute, acknowledge and
deliver all such further conveyances, notices, assumptions, releases and such
other instruments, and shall, on a timely basis, take such further actions, as
may be reasonably necessary or appropriate to assure fully to Purchaser and its
respective successors or assigns, all of the properties, rights, titles,
interests, estates, remedies, powers and privileges intended to be conveyed to
Purchaser under this Agreement and the Seller Documents and to assure fully to
Sellers and their Affiliates and their successors and assigns, the assumption of
the liabilities and obligations intended to be assumed by Purchaser under this
Agreement and such other agreements contemplated hereby, and to otherwise make
effective the transactions contemplated hereby and thereby.

     

    ARTICLE
III

     

    CONSIDERATION

     

    3.1           Purchase
Price.  Each Seller hereby acknowledges, confirms and agrees
that as of the close of business on the date hereof, (a) each Seller is indebted
to LMF with respect to loans and advances in the aggregate amount (including
principal, interest, fees, costs, and other charges payable by each Seller) of
$75,000,000.00 (the “Lender Debt”) and (b)
the Lender Debt is a valid and unconditional obligation of each Seller to LMF
(as hereinafter defined) and is due and owing without offset, defense or
counterclaim of any kind, nature or description whatsoever.  Subject
to overbidding, the Purchase Price for the Acquired Assets shall be the Credit
Bid Amount.

    
      
        
        

      

      
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    3.2           Reservations of
Rights.  Notwithstanding anything contained herein to the
contrary, LMF does not terminate nor in any manner whatsoever release any rights
granted to it under or in connection with and/or any obligations, representation
or warranties of the Sellers under (i)that certain Option, dated June 30, 2005,
issued by New Century Energy Corp. ("NCEY") to LMF and
subsequently assigned in full to affiliates of LMF, including without
limitation, LMF Select Assets, Ltd. ("Select") (as amended,
restated, modified and/or supplemented from time to time, the "June Option"), (ii)
that certain Common Stock Purchase Warrant, dated, June 30, 2005, issued by NCEY
to LMF and subsequently assigned in full to Select (as amended, restated,
modified and/or supplemented from time to time, the "June Warrant"),(iii)
that certain Option, dated December 30, 2005, issued by NCEY to LMF and
subsequently assigned in full to Select (as amended, restated, modified and/or
supplemented from time to time, the "December Option")and
(iv) that certain Common Stock Purchase Warrant, dated April 28, 2006, issued by
Gulf Coast Oil Corporation to LMF and subsequently assigned in full to Select
and Valens U.S. SPV I, LLC (as amended, restated, modified and/or supplemented
from time to time, the “Gulf Warrant” and,
together with the June Option, the June Warrant and the December Option, the
“Warrants”), which such Warrants shall remain in full force and effect in
accordance with their terms.

     

    3.3           Payment of Purchase
Price.

     

    (a)           Not
later than one (1) Business Day prior to the Closing Date, the Seller and
Purchaser shall cooperatively prepare a closing statement consisting of the Cure
Amount.

     

    (b)           At
the Closing, Purchaser shall cancel the sum of the Credit Bid Amount under the
Notes.

     

    (c)           At
the Closing, Purchaser and each of its Affiliates shall be deemed to have
relinquished and released all claims, demands, and causes of action against and
interests in the Sellers and their Affiliates as set forth in Exhibit
E.

     

    ARTICLE
IV

     

    CLOSING
AND TERMINATION

     

    4.1           Closing
Date.  Subject to the satisfaction of the conditions set forth
in Sections 10.1, 10.2 and 10.3 hereof (or the waiver thereof by the Party
entitled to waive that condition):  (a) so long as no objection or
other challenge to Purchaser’s good faith has been made or asserted at or before
the Confirmation Hearing and no appeal has been filed challenging or disputing
any finding or decree, whether under Section 363(m) or 363(n) of the Bankruptcy
Code or otherwise, by the Bankruptcy Court relating to Purchaser’s good faith,
the closing of the purchase and sale of the Purchased Assets and the assumption
of the Assumed Liabilities provided for in Article II hereof (collectively, the
“Closing”)
shall take place at 10:00 a.m. (Houston time) on the business day selected by
Purchaser that is after entry of the Confirmation Order on the docket; or (b) if
any objection or other challenge to Purchaser’s good faith has been made or
asserted at or before the Confirmation Hearing and no appeal has been filed
challenging or disputing any finding or decree, whether under Section 363(m) or
363(n) of the Bankruptcy Code or otherwise, by the Bankruptcy Court relating to
Purchaser’s good faith, the Closing shall take place at 10:00 a.m. (Houston
time) on the Business Day selected by Purchaser that is after the Confirmation
Order becomes a final order no longer subject to appeal or reconsideration; or
(c) if (i) any appeal is filed challenging or disputing any finding or decree,
whether under Section 363(m) or 363(n) of the Bankruptcy Code or otherwise, by
the Bankruptcy Court relating to Purchaser’s good faith but the Confirmation
Order is not otherwise stayed, and (ii) Purchaser decides, in its sole and
absolute discretion, to proceed with the Closing, the Closing shall take place
at 10:00 a.m. (Houston time) on the business day selected by Purchaser after
entry of the Confirmation Order on the docket.  The Closing shall take
place at the offices of Andrews Kurth LLP, 600 Travis, Suite 4200, Houston,
Texas  77002 (or at such other place as the Parties may designate in
writing).  The date on which the Closing shall be held is referred to
in this Agreement as the “Closing
Date.”

    
      
        
        

      

      
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    4.2           Deliveries by
Seller.  At the Closing, Seller shall deliver to
Purchaser:

     

    (a)           a
bill of sale in the form of Exhibit A hereto,
duly executed by the Sellers, as applicable;

     

    (b)           an
assignment and assumption agreement in the form attached hereto as Exhibit B
hereto, duly executed by the Sellers, as applicable;

     

    (c)           an
assignment and assumption of lease for each Leased Real Property in the form
attached to this Agreement as Exhibit C, with such
modifications as are necessary to properly describe such Leased Real Property
(collectively, the “Lease Assignments”),
duly executed by the applicable Sellers that holds the leasehold interest in
such Leased Real Property;

     

    (d)           duly
executed assignments of (i) the Patents and Trademarks, if any, in forms
suitable for recording in the United States Patent and Trademark Office, and
(ii) duly executed assignments of the copyright registrations and applications
for copyright registration owned by Sellers that are included in Purchased
Intellectual Property (if applicable);

     

    (e)           the
officer’s certificate required to be delivered pursuant to Sections 10.1(a)
and 10.1(b);

     

    (f)           a
copy of all orders of the Bankruptcy Court pertaining to the transactions
contemplated herein, including the Confirmation Order;

     

    (g)           a
certificate duly executed by an officer of the Seller certifying that as of the
Closing Date no appeal of or motion for stay, reargument, rehearing or
reconsideration with respect to the Confirmation Order has been served on the
Debtor or, based solely on a review of the online docket of the Chapter 11
Cases, has been filed;

     

    (h)           all
consents or notices of third parties obtained or given by Sellers as of the
Closing Date to the transfer of the Purchased Assets, if any; and

    
      
        
        

      

      
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    (i)           all
other instruments of conveyance and transfer, in form and substance reasonably
acceptable to Purchaser, as may be necessary to convey the Purchased Assets to
Purchaser and to allow the Purchaser to operate properties in which the Seller
is currently operating.

     

    4.3           Deliveries by
Purchaser.

     

    (a)           an
assignment and assumption agreement in the form attached hereto as Exhibit B
hereto, duly executed by Purchaser;

     

    (b)           the
Lease Assignments duly executed by Purchaser (Exhibit
C);

     

    (c)           the
release described in Section 3.3 (Exhibit E).

     

    (d)           the
officer’s certificate required to be delivered pursuant to Sections 10.2(a)
and 10.2(b); and

     

    (e)           all
other instruments of conveyance and transfer, in form and substance reasonably
acceptable to Seller, as may be necessary to convey the Purchased Assets to
Purchaser.

     

    4.4           Termination of
Agreement.  This Agreement may be terminated prior to the
Closing as follows:

     

    (a)           by
Purchaser or Seller, if the Closing shall not have occurred by the close of
business on the Termination Date;

     

    (b)           by
Purchaser if (i) the Confirmation Order, in form and content provided by
Purchaser before execution of this Agreement, is not entered by the Bankruptcy
Court on or before _____________ 2009, or (ii) if the approved auction process
for the sale of the Purchased Assets is not completed on or before __________,
2009;

     

    (c)           by
mutual written consent of Sellers and Purchaser;

     

    (d)           by
Purchaser, if any of the conditions to the obligations of Purchaser set forth in
Sections 10.1 and 10.3 shall have become incapable of fulfillment other
than as a result of a breach by Purchaser of any covenant or agreement contained
in this Agreement, and such condition is not waived by Purchaser;

     

    (e)           by
Sellers, if any condition to the obligations of Sellers set forth in
Sections 10.2 and 10.3 shall have become incapable of fulfillment other
than as a result of a breach by any Seller of any covenant or agreement
contained in this Agreement, and such condition is not waived by
Sellers;

     

    (f)           by
Purchaser, if there shall be a breach by any Seller of any representation or
warranty, or any covenant or agreement contained in this Agreement, which would
result in a failure of a condition set forth in Section 10.1 or 10.3, and
which breach cannot be cured or has not been cured by the earlier of
(i) seven (7) Business Days after the giving of written notice by Purchaser
to Sellers of such breach and (ii) the Termination Date;

    
      
        
        

      

      
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    (g)           by
Sellers, if there shall be a breach by Purchaser of any representation or
warranty, or any covenant or agreement contained in this Agreement, which would
result in a failure of a condition set forth in Section 10.2 or 10.3, and
which breach cannot be cured or has not been cured by the earlier of (i) seven
(7) Business Days after the giving of written notice by Sellers to Purchaser of
such breach and (ii) the Termination Date;

     

    (h)           by
Sellers or Purchaser if there shall be in effect a final nonappealable Order of
a Governmental Body of competent jurisdiction restraining, enjoining or
otherwise prohibiting the consummation of the transactions contemplated hereby,
or the Bankruptcy Court or another court of competent jurisdiction shall stay
the Confirmation Order;

     

    (i)           by
Purchaser, if Purchaser is unable to retain the necessary Employees, as
determined by Purchaser in its sole discretion, to, among other things, operate
the Business and perform under the Assumed Contracts and Assumed Executory
Contracts;

     

    (j)           by
Purchaser if Seller or Seller’s board of directors elects to pursue an
Alternative Transaction; or

     

    (k)           by
Purchaser or Sellers, if the Bankruptcy Court shall enter an Order approving a
Competing Bid.

     

    4.5           Procedure Upon
Termination.  In the event of termination by Purchaser or
Sellers, or both, pursuant to Section 4.4 hereof, written notice thereof
shall forthwith be given to the other Party or Parties, and this Agreement shall
terminate, and the purchase of the Purchased Assets hereunder shall be
abandoned, without further action by Purchaser or Sellers.  If this
Agreement is terminated as provided herein each Party shall redeliver all
documents, work papers and other material of any other Party relating to the
transactions contemplated hereby, whether so obtained before or after the
execution hereof, to the Party furnishing the same.

     

    4.6           Effect of
Termination.

     

    (a)           In
the event that this Agreement is validly terminated as provided herein, then
each of the Parties shall be relieved of its duties and obligations arising
under this Agreement after the date of such termination and such termination
shall be without liability to Purchaser or Sellers; provided, however, that the
obligations of the Parties set forth in this Section 4.6, Section 8.6
and Article XIII hereof shall survive any such termination and shall be
enforceable hereunder.

     

    (b)           Nothing
in this Section 4.6 shall relieve Purchaser or Sellers of any liability for
a breach of this Agreement prior to the date of termination.

     

    4.7           Post-Closing
Deliveries.  Any documents required to allow the Purchaser to
operate properties in which the Seller is currently operating, including without
limitation letters in lieu of division orders and/or transfer orders and
appropriate Texas Railroad Commission P-4 forms.

    
      
        
        

      

      
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    ARTICLE
V

     

    REPRESENTATIONS
AND WARRANTIES OF SELLERS

     

     

    Each
Seller hereby represents and warrants to Purchaser that:

     

    5.1           Debtor-in-Possession.  Seller
is the Debtor-in-Possession in the Bankruptcy Case.

     

    5.2           Authority.  Subject
to the approval of the Bankruptcy Court, Seller has the authority to carry on
its business as presently conducted, to enter into this Agreement and the
Assignment (as hereinafter defined) and to perform its obligations hereunder and
thereunder.

     

    5.3           Corporate
Power.  Subject to the approval of this Agreement and the
Closing Documents (hereinafter defined) by the Bankruptcy Court, the making and
performance by Seller of (i) this Agreement, (ii) that certain Assignment, Bill
of Sale and Conveyance, a form of which is attached hereto as Exhibit B (the
“Assignment”), and (iii) all other instruments to be executed in connection with
the Agreement and the Assignment, including the MMS Assignment as hereinafter
defined, (all such other instruments, together with the Assignment, are
collectively referred to herein as the “Closing Documents”) are within Seller’s
corporate powers, and have been duly authorized by all necessary corporate
action on the part of Seller.

     

    5.4           Litigation.  Except
as set forth on Schedule 5.4, there are no suits, claims, demands, filings,
causes of action, administrative proceedings, lawsuits or other litigation
pending, or, to Seller’s knowledge, threatened that could now or hereafter
adversely affect the ownership or operation of any of the Assets or the
transactions contemplated by this Agreement.

     

    5.5           Brokers.  Except
as set forth in Schedule 5.5, no broker or finder is entitled to any brokerage
or finder’s fee, or to any commission, based in any way on agreements,
arrangements or understandings made by or on behalf of Seller for which Buyer
has or will have any liabilities or obligations (contingent or
otherwise).

     

    5.6           Compliance with
Laws.  Except as set forth in Schedule 5.6(a), to the best of
Seller’s knowledge, the Assets have been operated in accordance with all laws,
orders, rules and regulations of all governmental authorities having or
asserting jurisdiction relating to the ownership and operation thereof,
including the production of all hydrocarbons attributable thereto.  To
the best of Seller’s knowledge, all necessary governmental certificates,
consents, permits, licenses or other authorizations with regard to the ownership
or operation of the Assets have been obtained and no violations exist or have
been recorded in respect of such licenses, permits or
authorizations.

     

    5.7           Consents, Waivers and
Preferential Rights.  To the best of Seller’s knowledge and
except with respect to the Licensed Intellectual Property and the Required
Consents, there are no consents or waivers of preferential purchase or other
rights necessary to permit the valid conveyance to Purchaser of the Purchased
Assets (excluding governmental consents and approvals customarily obtained
post-closing).

     

    5.8           Sufficiency of the Purchased
Assets.  Except for the property or consents described in
Schedules 5.6(a) and 1.1(h), the Purchased Assets are sufficient to operate the
Business in substantially the same manner as it was operated by the Seller’s
prior to the Closing Date.

    
      
        
        

      

      
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    5.9           Material
Liabilities.  To the knowledge of Sellers, other than as
expressly set forth in the applicable schedules attached hereto and the
Confirmation Order there are no material liabilities which could be reasonably
expected to attach to the Purchased Assets upon transfer.

     

    5.10           Leased Real
Property.  To the best of Seller’s knowledge, the leases
included within the Leased Real Property are in full force and effect and are
valid and existing documents covering the entire estates which they purport to
cover and all conditions necessary to keep the said leases in force have been
performed.

     

    5.11           Sale of
Production.  To the best of Seller’s knowledge, no hydrocarbons
produced from the Leased Real Property or existing as in-ground reserves in such
Leased Real Property are subject  to a sales contract (other
than  a contract or division order terminable upon no more than 30
days notice), and no person or entity other than a lessor under a lease included
within the Leased Real Property has any call upon, option to purchase or similar
rights with respect to production from such Leased Real Property.  To
the best of Seller’s knowledge, Seller is receiving proceeds from the sale of
production from the Wells from the production purchasers or from operator(s) of
the Leased Real Property in a timely manner, and the proceeds payable to Seller
are not being held in suspense by any production purchaser or
operator.

     

    5.12           Environmental
Laws.  Other than in respect of the acknowledged risks set
forth in Section 6.9, to the best of Sellers’ knowledge, (i) such Purchased
Assets are in compliance in all material respects with all Environmental Laws
(as hereinafter defined) and all orders or requirements of any court or federal,
state, or local governmental authority, and possess and are in compliance with
all required permits, licenses, or similar authorizations, (ii) such Purchased
Assets and related operations are not subject to any existing or threatened
suit, investigation, or proceeding related to any obligation under any
Environmental Law, and (iii) there is no liability (contingent or otherwise) in
connection with the release or threatened release into the environment of any
Hazardous Substances  as a result of or in connection with such Assets
or the operations related thereto.

     

     

    ARTICLE
VI

     

    REPRESENTATIONS
AND WARRANTIES OF PURCHASER

     

     

    Purchaser
hereby represents and warrants to Sellers that:

     

    6.1           Organization and Good
Standing.  Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to own, lease and operate its
properties, to carry on its business as now conducted and to perform its
obligations under this Agreement and the Purchaser Documents.

     

    6.2           Authorization of
Agreement.  Purchaser has full corporate power and authority to
execute and deliver this Agreement and each other agreement, document,
instrument or certificate contemplated by this Agreement or to be executed by
Purchaser in connection with the consummation of the transactions contemplated
by this Agreement (the “Purchaser
Documents”), to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby.  The
execution and delivery by Purchaser of this Agreement and the Purchaser
Documents and the consummation of the transactions contemplated hereby and
thereby have been duly authorized by all requisite corporate action on behalf of
Purchaser.  This Agreement has been, and each Purchaser Document will
be at or prior to the Closing, duly executed and delivered by Purchaser and
(assuming the due authorization, execution and delivery by the other parties
hereto and thereto) this Agreement constitutes, and each Purchaser Document when
so executed and delivered will constitute, the legal, valid and binding
obligations of Purchaser, enforceable against Purchaser in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally,
and subject, as to enforceability, to general principles of equity, including,
without limitation, principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or
in equity).

    
      
        
        

      

      
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    6.3           Conflicts; Consents of Third
Parties.

     

    (a)           None
of the execution and delivery by Purchaser of this Agreement or the Purchaser
Documents, the consummation of the transactions contemplated hereby or thereby,
or compliance by Purchaser with any of the provisions hereof or thereof will
conflict with, or result in any violation of or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination or
cancellation under any provision of (i) the certificate of incorporation
and by-laws of Purchaser, (ii)  any Contract or Permit to which Purchaser
is a party or by which Purchaser or its properties or assets are bound or
(iii) any applicable Law.

     

    (b)           No
consent, waiver, approval, Order, Permit or authorization of, or declaration or
filing with, or notification to, any Person or Governmental Body is required on
the part of Purchaser in connection with the execution and delivery of this
Agreement or the Purchaser Documents, the compliance by Purchaser with any of
the provisions hereof or thereof, the consummation of the transactions
contemplated hereby without any material delay, the performance by Purchaser of
their respective obligations hereunder, or the taking by Purchaser of any other
action contemplated hereby, or for Purchaser to conduct the
Business.

     

    6.4           Litigation.  There
are no Legal Proceedings pending or, to the knowledge of Purchaser, threatened
against Purchaser, or to which Purchaser is otherwise a party before any
Governmental Body, which, if adversely determined, would reasonably be expected
to have a Purchaser Material Adverse Effect.  Purchaser is not subject
to any Order of any Governmental Body except to the extent the same would not
reasonably be expected to have a Purchaser Material Adverse Effect.

     

    6.5           Financial
Advisors.  No Person has acted, directly or indirectly, as a
broker, finder or financial advisor for Purchaser in connection with the
transactions contemplated by this Agreement, and no Person is entitled to any
fee or commission or like payment from any Seller in respect
thereof.

    
      
        
        

      

      
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    6.6           Financial
Capability.  Purchaser (i) has sufficient funds available to
pay the Purchase Price and any expenses incurred by Purchaser in connection with
the transactions contemplated by this Agreement, (ii)  has the resources
and capabilities (financial or otherwise) to perform its obligations hereunder
and (iii) has not incurred any obligation, commitment, restriction or
Liability of any kind, that would impair or adversely affect such resources and
capabilities or could reasonable be expected to have a Purchaser Material
Adverse Effect.  Purchaser is not insolvent, does not have
unreasonably small capital with which to operate the Business, and has not
incurred or committed to incur debts beyond its ability to repay such
debts.  Without limiting the foregoing, Purchaser’s ability to
consummate, and to consummate the transactions contemplated hereby and the
Purchaser Documents is not contingent on Purchaser’s ability to complete any
equity or debt financing or to obtain any other financial commitments before or
on the Closing.

     

    6.7           Purchaser’s
Investigation.  Purchaser represents that it is a sophisticated
entity that was advised by knowledgeable counsel and financial and other
advisors and hereby acknowledges that it has conducted to its satisfaction, its
own independent investigation and analysis of the Purchased Assets and the
Assumed Liabilities and, in making the determination to proceed with the
transactions contemplated by this Agreement, Purchaser has relied solely on the
results of its own independent investigation and the express representations set
forth in this Agreement.

     

    6.8           Adequate Assurances
Regarding Executory Contracts.  Purchaser is and will be
capable of satisfying the conditions contained in section 365(b)(1)(C) and
365(f) of the Bankruptcy Code with respect to the Assumed Contracts and the
Assumed Executory Contracts.

     

    6.9           Environmental
Matters.  The Purchaser Parties acknowledge that some of the
Purchased Assets have been used for the exploration, development and production
of oil, gas, associated hydrocarbons and other minerals. The Purchaser Parties
acknowledge that there may have been releases of crude oil, produced water,
pollutants or other material in the past. The Purchaser Parties acknowledge that
some items among the properties may contain asbestos or naturally occurring
radioactive materials ("NORM").  The Purchaser Parties understand that
NORM may attach itself to the inside of wells and equipment as scale or in other
forms, that the wells and equipment may contain NORM and that the NORM
containing materials may be buried or otherwise disposed of on the
properties.  The Purchaser Parties acknowledge that special procedures may
be required to remove and dispose of asbestos and NORM.

     

    ARTICLE
VII

     

    BANKRUPTCY
COURT MATTERS

     

    7.1           Bankruptcy
Actions.  On March 12, 2009, the Sellers filed (a) their First
Amended Joint Plan of Reorganization (the “Plan”) seeking among
other things the entry of an order approving this Agreement and the transactions
contemplated thereby (including the unconditional allowance of a secured claim
by Purchaser in the Chapter 11 Cases in an amount at least equal to the Credit
Bid Amount, and the credit bid pursuant to Section 363(k) of the Bankruptcy Code
the sale of the Purchased Assets to Purchaser free and clear of all Interests
except for the Permitted Exceptions described on Schedule 1.1(h))
should the purchase offer made by this Agreement constitute the highest or best
offer for the Purchased Assets, which order shall be substantially in the form
of Exhibit D
hereto or otherwise acceptable to Sellers and Purchaser (the “Confirmation
Order”).

    
      
        
        

      

      
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    7.2           Seller
Actions.  A hearing on the Plan is currently scheduled for
____________.  Furthermore, Sellers shall use their reasonable efforts
to obtain any other approvals or consents from the Bankruptcy Court that may be
reasonably necessary to consummate the transactions contemplated in this
Agreement.

     

    7.3           Purchaser
Actions.  Purchaser agrees that it will promptly take such
reasonable actions as are reasonably requested by Sellers to assist in obtaining
the Confirmation Order, including, without limitation, furnishing affidavits or
other documents or information for filing with the Bankruptcy Court for the
purposes, among others, of providing necessary assurances of performance by
Purchaser under this Agreement and demonstrating that Purchaser is a “good
faith” purchaser under section 363(m) of the Bankruptcy Code.

     

    7.4           Adequate
Assurances.  With respect to each Assumed Contract and Assumed
Lease, Purchaser shall provide adequate assurance of the future performance of
such Assumed Contract and Assumed Lease by Purchaser.

     

    7.5           Competing
Transaction.  This Agreement is subject to approval by the
Bankruptcy Court and the consideration by Sellers of higher or better competing
bids (each a “Competing
Bid”).  For purposes of consideration of competing bids, the
Sellers’ hereby agree that the Purchaser’s Credit Bid Amount shall be deemed to
be equivalent to a cash bid in an amount equal to the Lenders Debt constituting
the Purchaser’s Credit Bid Amount.  From the date hereof (and any
prior time) and until the Plan is approved by the Bankruptcy Court, Sellers are
permitted to cause its representatives and Affiliates to initiate contact with,
solicit or encourage submission of any inquiries, proposals or offers by, any
Person (in addition to Purchaser and its Affiliates, agents and representatives)
in connection with any sale or other disposition of the Purchased
Assets.  In addition, Sellers shall have the responsibility and
obligation to respond to any inquiries or offers to purchase all or any part of
the Purchased Assets and perform any and all other acts related thereto that are
required under the Bankruptcy Code or other applicable law, including, without
limitation, supplying information relating to the Business and the assets of
Sellers to prospective purchasers.

     

    ARTICLE
VIII

     

    COVENANTS

     

    8.1           Access to
Information.  Sellers agree that, prior to the Closing Date,
Purchaser shall be entitled, through its officers, employees and representatives
(including, without limitation, its legal advisors and accountants), to make
such investigation of the properties, businesses and operations of the Business
and such examination of the books and records of the Business, the Purchased
Assets and the Assumed Liabilities as it reasonably requests and to make
extracts and copies of such books and records.  Any such investigation
and examination shall be conducted during regular business hours upon reasonable
advance notice and under reasonable circumstances and shall be subject to
restrictions under applicable Law.  Sellers shall cause the officers,
employees, consultants, agents, accountants, attorneys and other representatives
of Sellers to cooperate with Purchaser and Purchaser’s representatives in
connection with such investigation and examination, and Purchaser and its
representatives shall cooperate with Sellers and their representatives and shall
use their reasonable efforts to minimize any disruption to the
Business.  Notwithstanding anything herein to the contrary, no such
investigation or examination shall be permitted to the extent that it would
require Sellers to disclose information subject to attorney-client privilege or
conflict with any confidentiality obligations to which any Seller is
bound.  Purchaser will not contact any employee, customer or supplier
of Sellers with respect to this Agreement without the prior written consent of
Sellers (which such consent will not be unreasonably withheld or delayed);
provided, however, that so long as there is no disruption to the Business and
Purchaser’s conduct is in accordance with the reasonable requirements of
Sellers, Purchaser shall be entitled to contact and engage in discussions with
(i) counterparties to Assumed Contracts and Assumed Executory Contracts in
connection with Purchaser’s attempt to negotiate amounts necessary to cure any
breach or default under such contracts, (ii) Sellers’ vendors and (iii) Seller’s
customers, and,  Sellers shall cooperate with Purchaser to facilitate
such contact and discussions between Purchaser and such counterparties, vendors
and customers.  Promptly following the date of this Agreement, Sellers
shall provide Purchaser with contact information for Seller’s customers and
suppliers and notwithstanding any agreement between the parties to the contrary,
Purchaser shall be entitled to contact such customers and
suppliers.

    
      
        
        

      

      
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    8.2           Conduct of the Business
Pending the Closing.

     

    (a)           Prior
to the Closing and further to any obligations as debtors-in-possession under the
Bankruptcy Code and except (1) as set forth on Schedule 8.2(a), (2) as
required by applicable Law, (3) as otherwise expressly contemplated by this
Agreement or (4) with the prior written consent of Purchaser (which consent
shall not be unreasonably withheld, delayed or conditioned), Sellers
shall:

     

    (i)           use
commercially reasonable efforts to maintain the Purchased Assets in the Ordinary
Course of Business, pay expenses and payables, bill customers, collect
receivables, purchase Inventory, repair and continue normal maintenance (normal
wear and tear excepted) and otherwise conduct the Business in the Ordinary
Course of Business;

     

    (ii)           (A)
comply in all material respects with all Laws and Assumed Contracts and Assumed
Executory Contracts, (B) maintain all existing Permits applicable to the
Business, and (C) pay all applicable Taxes as such Taxes become due and
payable;

     

    (iii)           Use
commercially reasonable efforts to maintain working capital and current asset
and current liability levels consistent with those reflected in the Sellers’
financial statements previously provided to Purchaser;

     

    (iv)           maintain
in full force and effect all Purchased Intellectual Property;

    
      
        
        

      

      
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    (v)           utilize
commercially reasonable efforts to pursue Section 363 of the Bankruptcy Code
sales processes and to comply at all times with the Plan and the Confirmation
Order;

     

    (vi)          use
their commercially reasonable efforts to (A) preserve the present business
operations, organization and goodwill of the Business and (B) preserve the
present relationships with customers and suppliers of the Business;
and

     

    (vii)         promptly
inform Purchaser in writing of the occurrence or non-occurrence of any event
known to any Seller which would cause the condition set forth in Section 10.1(a)
not to be satisfied or the breach of any covenant hereunder by any
Seller.

     

    (b)           Subject
to any obligations as debtors-in-possession under the Bankruptcy Code and except
(1) as set forth on Schedule 8.2(b), (2) as
required by applicable Law, (3) as otherwise contemplated by this Agreement or
(4) with the prior written consent of Purchaser, no Seller shall solely as it
relates to the Business:

     

    (i)            modify
or amend, in any material respect, or terminate any Material Contract or waive,
release or assign any material rights or claims thereunder;

     

    (ii)           enter
into any contract or transaction relating to the purchase of assets primarily
for use in the Business in excess of fifty thousand dollars
($50,000);

     

    (iii)           increase
salaries or wages, declare bonuses, increase compensation or benefits or
institute any new employment arrangement, benefit plan or program with respect
to any Employee, except as required by law, as required by the terms of
previously existing Employee Plans or in the Ordinary Course of Business, and
except that Sellers can declare or pay bonuses or enter into deferred
compensation or similar arrangements in connection with the retention of the
continued services of directors, employees or consultants;

     

    (iv)          sell,
lease, transfer, mortgage, encumber, alienate or dispose of Purchased Assets
except for sales of Inventory in the Ordinary Course of Business;
and

     

    (v)           agree
to do anything prohibited by this Section 8.2.

     

    (c)           Prior
to the Closing, each of the Sellers shall take any and all necessary actions to
transfer, assign, record or perfect in its name record title to any of its
Purchased Assets that is not presently held or recorded in its name, including,
without limitation, filing any necessary notices of assignment in the United
States Patent and Trademark Office or United States Copyright Office, as
applicable, with respect to the Purchased Intellectual Property.

     

    8.3           Regulatory
Approvals.  Purchaser and Sellers shall use commercially
reasonable efforts to (a) obtain all consents and approvals of all
Governmental Bodies and all other Persons required to be obtained by Purchaser
or Sellers to effect the transactions contemplated by this Agreement and
(b) take, or cause to be taken, all action, and to do, or cause to be done,
all things necessary, consistent with applicable Law, to consummate the
transactions contemplated hereby.

    
      
        
        

      

      
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    8.4           Further
Assurances.  Each of Sellers and Purchaser shall use its
commercially reasonable best efforts to (i) take all actions necessary or
appropriate to consummate the transactions contemplated by this Agreement and
(ii) cause the fulfillment at the earliest practicable date of all of the
conditions to their respective obligations to consummate the transactions
contemplated by this Agreement.

     

    8.5           Assumed
Liabilities.  Subsequent to the Closing, Purchaser agrees to
pay, perform and discharge the Assumed Liabilities as they become due,
including, without limitation, the discharge and performance when due of each
and every obligation of Sellers to be satisfied or performed on or after the
Closing Date, under the Assumed Contracts and Assumed Executory
Contracts.

     

    8.6           Confidentiality.

     

    (a)           Purchaser
acknowledges that the Confidential Information provided to it in connection with
this Agreement, including under Section 8.1, and the consummation of the
transactions contemplated hereby, is subject to the terms of the Confidentiality
Agreement the terms of which are incorporated herein by
reference.  Effective upon, and only upon, the Closing Date, the
Confidentiality Agreement shall terminate with respect to information relating
solely to the Business or otherwise included in the Purchased Assets; provided, however, that
Purchaser acknowledges that any and all other Confidential Information provided
to it by any Seller or its representatives concerning any Seller and their
Subsidiaries shall remain subject to the terms and conditions of the
Confidentiality Agreement after the Closing Date.

    
      
        
        

      

      
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    (b)           The
Sellers have had access to and contributed to information and materials of a
highly sensitive nature (including Confidential Information) regarding the
Purchased Assets and the Business.  Each Seller agrees that unless it
first secures the written consent of an authorized representative of Purchaser,
it shall not use for itself or anyone else, and shall not disclose to others,
any Confidential Information except to the extent such use or disclosure is
required by Law (in which event it shall inform Purchaser in advance of any such
required disclosure, shall cooperate with Purchaser in all reasonable ways in
obtaining a protective order or other protection in respect of such required
disclosure, and shall limit such disclosure to the extent reasonably possible
while still complying with such requirements).  Each Seller shall use
reasonable care to safeguard Confidential Information and to protect it against
disclosure, misuse, espionage, loss and theft.

     

    8.7           Preservation of
Records.  For a period of five (5) years after the Closing Date
(or such longer period as may be required by any Governmental Body or ongoing
claim):

     

    (a)           Purchaser
shall not dispose of or destroy any of the business records and files of the
Business held by Purchaser and relating to the period preceding the Closing
Date.  If Purchaser wishes to dispose of or destroy such records and
files after that time, or if Sellers wish at any time to destroy any business
records and files of the Business held by it, the party proposing such
disposition or destruction shall first give thirty (30) days’ prior written
notice to the other party, and such other party shall have the right, at its
option and expense, upon prior written notice to the notifying party within such
thirty (30) day period, to take possession of the records and files within
fifteen (15) days after the date of such notice.  Purchaser shall bear
the costs associated with preserving these records.

     

    (b)           Each
party (the “Requested
Party”) shall allow the other party and any of its directors, officers,
employees, counsel, representatives, accountants and auditors reasonable access
during normal business hours to all employees and files of the Requested Party
and any books and records and other materials included in the Purchased Assets
relating to periods prior to the Closing Date in connection with general
business purposes, whether or not relating to or arising out of this Agreement
or the transactions contemplated hereby (including the preparation of tax
returns, amended tax return or claim for refund (and any materials necessary for
the preparation of any of the foregoing), and financial statements for periods
ending on or prior to the Closing Date, the management and handling of any
audit, investigation, litigation or other proceeding in, whether such audit,
investigation, litigation or other proceeding is a matter with respect to which
indemnification may be sought hereunder), to comply with the rules and
regulations of the Internal Revenue Service, the Securities and Exchange
Commission or any other Governmental Body or otherwise relating to Sellers’
other businesses or operations.  Seller shall further provide prompt
notice to Purchaser of any notices, documents or the like delivered or forwarded
to any Seller that relate to the Purchased Assets acquired by
Purchaser.

     

    8.8           Publicity.  Neither
Sellers nor Purchaser shall issue any press release or public announcement
concerning this Agreement or the transactions contemplated hereby without
obtaining the prior written approval of the other Party hereto, which approval
will not be unreasonably withheld or delayed, unless, in the sole judgment of
Purchaser or Sellers, disclosure is otherwise required by applicable Law or by
the Bankruptcy Court with respect to filings to be made with the Bankruptcy
Court in connection with this Agreement or by the applicable rules of any stock
exchange on which Purchaser or Sellers list securities, provided that the Party
intending to make such release shall use its reasonable efforts consistent with
such applicable Law or Bankruptcy Court requirement to consult with the other
Party with respect to the text thereof.

     

    8.9           Certain
Consents.  Sellers shall use their commercially reasonable
efforts to obtain prior to (or, if not obtained prior to, subsequent to) the
Closing all of the Required Consents.  Purchaser will cooperate with
Seller in connection with seeking and obtaining such Consents.

     

    8.10         Sublease and
Subcontract.  For a period of sixty (60) days after the Closing
Date (the “Transition
Period”), Sellers shall, as applicable, sublease or subcontract to
Purchaser the contracts and leases set forth on Schedule 8.10 (the
“Transition
Agreements”) and subcontract to Purchaser during the Transition Period
the provision of such utilities and other services reasonably necessary and
useful to conduct the Business as determined by Purchaser in its sole discretion
(the “Subcontracted
Services”), in order to transition the Purchased Assets to
Purchaser.  Not less than six (6) Business Days before the
Closing Date, the Purchaser shall provide a schedule setting forth the
Subcontract Services (the “Schedule of Subcontracted
Services”). Not more than three (3) Business Days after actually
receiving the Schedule of Subcontracted Services, Sellers shall provide
Purchaser with a schedule setting forth the estimated costs that Sellers will
likely accrue or incur under or on account of the Transition Agreements and the
Subcontracted Services during the Transition Period (the “Estimated Transition
Costs”).  Purchaser shall be liable for and shall pay within
two (2) Business Days of notice thereof from Sellers or their agent,
representative or designee any actual Transition Costs incurred under the
Transition Agreements and Subcontracted Services during the Transition
Period.  During the Transition Period, Sellers shall not seek to
reject or terminate any of the Transition Agreements or the Subcontracted
Services except to the extent that any such rejection or termination becomes
effective after the end of the Transition Period.  During the
Transition Period, Sellers shall, at the expense and request of Purchaser and to
the extent they continue as debtors in possession, object to or challenge any
motion or other attempt to reject, terminate, suspend or modify the Transition
Agreements or the Subcontracted Services except to the extent that any such
rejection, termination, suspension or modification becomes effective after the
end of the Transition Period.

    
      
        
        

      

      
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    ARTICLE
IX

     

    EMPLOYEES
AND EMPLOYEE BENEFITS

     

    9.1           Employment.

     

    (a)           Sellers
shall terminate all Employees on the Closing Date.  Purchaser shall
offer employment effective as of the Closing to certain Employees at its
discretion on terms and conditions that are substantially comparable in all
material respects to the terms and conditions of the Employee’s employment with
Seller immediately prior to Closing (including position, responsibilities and
job location) as set forth on Schedule
5.25(a).  Employees who accept Purchaser’s offer of employment
and become employees of Purchaser as of or after the Closing Date shall be
referred to as the “Transferred
Employees” effective on their respective initial dates of employment with
Purchaser.  Purchaser shall notify Sellers before the Confirmation
Hearing as to the minimum number of Employees to whom it has offered or will
offer employment..  On or before three (3) days prior to the Closing
Date, Purchaser shall provide to Sellers a schedule listing the Transferred
Employees.

     

    (b)           Sellers
shall be responsible for providing all WARN notices related to the termination
of the Employees by any Seller, and Sellers shall bear full liability for all
WARN liability associated with termination of Employees other than the
Transferred Employees.  Purchaser shall bear full liability for all
WARN liability for all Transferred Employees in the event any such persons are
terminated by Purchaser after the Closing Date.  Purchaser shall bear
no responsibility to provide any WARN notice associated with the termination of
Employees pursuant to the transaction contemplated herein.

     

    9.2           Employee
Benefits in
General.

     

    (a)           Purchaser
shall provide or cause to be provided to each Transferred Employee who remains
actively employed with Purchaser a base salary or hourly wage that is
substantially similar to such Transferred Employee’s base salary or hourly wage
in effect immediately prior to the Closing Date.  Purchaser agrees to
assume and maintain all liabilities with respect to accrued vacation pay for
each Transferred Employee in accordance with such vacation policies set forth on
Schedule
9.2(a).

    
      
        
        

      

      
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    (b)           Effective
as of the Closing Date, Purchaser shall cause each Transferred Employee who was
covered and actively participating in the Employee Plans that are benefits,
retirement and/or welfare plans (excluding equity based plans) immediately prior
to the Closing Date to be covered under employee benefit plans, programs and
arrangements maintained or established by Purchaser (the “Purchaser Plans”)
that are substantially similar in the aggregate (based on value and/or benefit)
to such plans in effect immediately prior to the Closing.  The
Purchaser Plans shall recognize each Transferred Employee’s prior service that
is recognized under the Employee Plans (including prior service with predecessor
employers to the extent such prior service is recognized under the Employee
Plans) for eligibility and vesting purposes and, in the case of vacation or
severance benefits, for purposes of determining the amount of benefits, provided
that such recognition or prior service does not result in duplication of
benefits.

     

    9.3           COBRA.  Purchaser
shall be solely responsible for satisfying the COBRA notice and continuation
coverage requirements for all Transferred Employees (and their eligible
dependents) who are entitled to elect COBRA coverage (or any similar state or
local Law) on account of a qualifying event occurring on or after the Closing
Date.  The Sellers shall be solely responsible for satisfying the
COBRA notice and continuation coverage requirements for all Employees (and their
eligible dependents) who are entitled to elect COBRA coverage (or any similar to
state or local Law) on account of a qualifying event occurring on or prior to
the Closing Date.

     

    9.4           Third-Party
Beneficiaries.

     

    (a)           Notwithstanding
the foregoing, nothing contained herein, whether express or implied, shall be
treated as an amendment or other modification of any Purchaser Plan, or shall
limit the right of Purchaser or any of its Affiliates to amend, terminate or
otherwise modify any Purchaser Plan following the Closing Date.  In
the event that (i) a party other than the Sellers or any of their Affiliates or
Purchaser or any of its Affiliates makes a claim or takes other action to
enforce any provision in this Agreement as an amendment to any Purchaser Plan,
and (ii) such provision is deemed to be an amendment to such Purchaser Plan even
though not explicitly designated as such in this Agreement, then such provision
shall lapse retroactively and shall have no amendatory effect.

     

    (b)           The
Sellers and Purchaser acknowledge and agree that all provisions contained in
this Article IX with respect to Employees are included for the sole benefit of
the Sellers and Purchaser, and that nothing in this Agreement, whether express
or implied, shall create any third party beneficiary or other rights (i) in any
other Person, including, without limitation, any current or former Employees,
any participant in any Employee Plan or Purchaser Plan, or any dependent or
beneficiary thereof, or (ii) to continued employment with the Sellers,
Purchaser, or any of their respective Affiliates.

     

    ARTICLE
X

     

    CONDITIONS
TO CLOSING

     

    10.1           Conditions Precedent to
Obligations of Purchaser.  The obligation of Purchaser to
consummate the transactions contemplated by this Agreement is subject to the
satisfaction, on or prior to the Closing Date, of each of the following
conditions (any or all of which may be waived by Purchaser in whole or in part
to the extent permitted by applicable Law):

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    (a)           each
of the representations and warranties of Sellers set forth in Article V shall be
true and correct, in all material respects as of the Closing Date (or on the
date when made in the case of any representation and warranty which specifically
relates to an earlier date) with the same force and effect as though made on and
as of the Closing Date, and Purchaser shall have received a certificate signed
by an authorized officer of Sellers on behalf of all Sellers, dated the Closing
Date, to the foregoing effect;

     

    (b)           Sellers
shall have performed and complied in all material respects with all obligations
and agreements required in this Agreement to be performed or complied with by it
prior to the Closing Date, and Purchaser shall have received a certificate
signed by an authorized officer of Sellers on behalf of all Sellers, dated the
Closing Date, to the forgoing effect;

     

    (c)           all
Required Consents set forth on Schedule 10.2(a) shall have been duly obtained,
made or given and shall be in full force and effect;

     

    (d)           there
shall not have occurred after the date hereof an event or failure to act causing
a Material Adverse Effect; and

     

    (e)           Sellers
shall have delivered, or caused to be delivered, to Purchaser all of the items
set forth in Section 4.2.

     

    10.2           Conditions Precedent to
Obligations of Sellers.  The obligations of Sellers to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction, prior to or on the Closing Date, of each of the following
conditions (any or all of which may be waived by Sellers in whole or in part to
the extent permitted by applicable Law):

     

    (a)           each
of the representations and warranties of Purchaser set forth in Article VI shall
be true and correct, in all material respects on and as of the date hereof and
as of the Closing Date (or on the date when made in the case of any
representation and warranty which specifically relates to an earlier date) with
the same force and effect as though made on and as of the Closing Date, except
that those representations and warranties that are qualified by materiality,
Material Adverse Effect or similar phrase shall be true and correct in all
respects as of the date hereof and on and as of the Closing Date (or on the date
when made in the case of any representation and warranty which specifically
relates to an earlier date) with the same force and effect as though made on and
as of the Closing Date, and Sellers shall have received a certificate signed by
an authorized officer of Purchaser, dated the Closing Date, to the foregoing
effect;

     

    (b)           Purchaser
shall have performed and complied in all material respects with all obligations
and agreements required by this Agreement to be performed or complied with by
Purchaser on or prior to the Closing Date, and Sellers shall have received a
certificate signed by an authorized officer of Purchaser, dated the Closing
Date, to the foregoing effect;

     

    (c)           [intentionally
omitted]

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    (d)           Purchaser
shall have delivered, or caused to be delivered, to Sellers all of the items set
forth in Section 4.3; and

     

    (e)           At
or prior to the Closing, Purchaser shall have paid the Cure Amount, or made
arrangements, satisfactory to Sellers in their sole discretion, to promptly pay
the Cure Amount, so that the Assumed Contracts and Assumed Executory Contracts
may be assumed by Sellers and assigned to Purchaser in accordance with the
provisions of section 365 of the Bankruptcy Code.

     

    10.3          Conditions Precedent to
Obligations of Purchaser and Sellers.  The respective
obligations of Purchaser and Sellers to consummate the transactions contemplated
by this Agreement are subject to the satisfaction, on or prior to the Closing
Date, of each of the following conditions (any or all of which may be waived by
Purchaser and Sellers in whole or in part to the extent permitted by applicable
Law):

     

    (a)           there
shall not be in effect any Order by a Governmental Body of competent
jurisdiction restraining, enjoining or otherwise prohibiting the consummation of
the transactions contemplated hereby; and

     

    (b)           the
Bankruptcy Court shall have entered the Confirmation Order; provided that,
notwithstanding anything contained in this Agreement to the contrary, if
the Bankruptcy Court issues the Confirmation Order but fails to approve the
assignment to Purchaser of any Assumed Contract or Assumed Lease
contemplated to be assigned to Purchaser pursuant to this Agreement solely by
reason of a failure by Purchaser to provide adequate assurance of future
performance as required by the Bankruptcy Code, then  the Assumed
Contract or Assumed Lease, the contemplated assignment of which was not approved
by the Bankruptcy Court by reason of such failure by Purchaser, shall become an
Excluded Asset, and, assuming the other conditions to Purchaser’s obligations
under the Agreement have been satisfied, the Parties shall proceed with the
Closing without any corresponding adjustment to the Purchase Price.

     

    10.4          Frustration of Closing
Conditions.  Neither Sellers nor Purchaser may rely on the
failure of any condition set forth in Section 10.1, 10.2 or 10.3, as the
case may be, if such failure was caused by such Party’s failure to comply with
any provision of this Agreement.

     

    ARTICLE
XI

     

    TAXES

     

    11.1           Transfer
Taxes.  Purchaser shall have no liability for and Transfer
Taxes.  Sellers shall indemnify and hold harmless Purchaser from and
against any such Transfer Taxes so long as Purchaser is in compliance with
Section 11.2.  Any amounts payable by Sellers to Purchaser on account
of such indemnity shall be entitled to super priority administrative treatment
under sections 503(b) and 507 of the Bankruptcy Code.  Sellers and
Purchaser shall cooperate and otherwise take commercially reasonable efforts to
obtain any available refunds for Transfer Taxes.

     

    11.2           Purchase Price
Allocation.  Purchaser shall allocate the Purchase Price
(including the Assumed Liabilities) among the Purchased Assets within one-year
after Closing and Sellers and Purchaser shall file their income Tax Returns in
Form 8594, in accordance with such allocation; provided that nothing contained
herein shall prevent Sellers and Purchaser from settling any proposed deficiency
or adjustment by any Taxing Authority based upon or arising out of the purchase
price allocation, and no Sellers nor Purchaser shall be required to litigate
before any court, any proposed deficiency or adjustment by any taxing authority
challenging such allocation.  Purchaser shall revise from time to time
purchase price allocation so as to report any matters that need updating
(including purchase price adjustments, if any) consistent with the agreed upon
allocation.

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    ARTICLE
XII

     

    REMEDIES
FOR BREACHES OF THIS AGREEMENT

     

    12.1           Survival of Representations
and Warranties. All of the
representations and warranties set forth in this Agreement or in any certificate
delivered by any Seller in connection with the Closing shall survive the
execution and delivery of this Agreement and through the Closing, but shall not
survive, and shall terminate, at the Closing.

     

    12.2           Indemnification of
Purchaser.

     

    (a)           Subject
to the limitations set forth in Sections 12.2(b) and 12.2(c), Sellers shall
indemnify Purchaser and each of its respective Affiliates, officers, directors,
employees, agents, representatives, successors and assigns (each a “Purchaser Party”),
and save and hold each of them harmless from and against, and pay on behalf of
or reimburse any Purchaser Party as and when incurred for, all Losses arising
out of or relating to:

     

    (i)           any
Taxes of the Sellers (other than Transfer Taxes); and

     

    (ii)          the
fraud of Sellers or any of Sellers’ officers, directors, employees, or agents in
connection with the representations and warranties set forth in Article V
hereof.

     

    (b)           Sellers’
aggregate liability for indemnity of Losses hereunder shall not exceed an amount
equal to the Credit Bid Amount.

     

    (c)           Any
amounts payable by Sellers to Purchaser on account of the indemnity contained in
this Section 12.2 shall be entitled to super-priority administrative treatment
under sections 503(b) and 507 of the Bankruptcy Code.

     

    12.3           Indemnification of
the
Sellers.

     

    (a)           Subject
to the limitations set forth in Sections 12.3(b) and 12.3(c), Purchaser
shall indemnify the Sellers and their Affiliates, officers, directors,
employees, agents, representatives, successors and assigns (each a “Seller Party”) and
save and hold each of them harmless from and against, and pay on behalf of or
reimburse any Seller Party as and when incurred for, all Losses arising out of
or relating to:

     

    (i)           from
and after the Closing Date, any Assumed Liability; and

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    (ii)          the
fraud of Purchaser or any of Purchaser’s officers, directors, employees, or
agents in connection with the representations and warranties set forth in
Article VI hereof.

     

    (b)           Purchaser’s
aggregate liability for indemnity of Losses hereunder shall not exceed the
Credit Bid Amount.

     

    12.4           Matters Involving Third
Parties.

     

    (a)           If
any Seller Party or any Purchaser Party seeks indemnification under this
Section 12.4, such Person (the “Indemnified Party”)
shall give written notice to the other Person(s) (the “Indemnifying Party”).
In that regard, if any Liability shall be brought or asserted by any third party
which, if adversely determined, may entitle the Indemnified Party to indemnity
pursuant to this Section 12.4 (a “Third Party Claim”),
the Indemnified Party shall promptly notify the Indemnifying Party of the same
in writing, specifying in detail the basis of such Liability and the facts
pertaining thereto; provided, however, that except
as otherwise provided in this Article XII, no delay on the part of the
Indemnified Party in notifying any Indemnifying Party shall relieve the
Indemnifying Party from any Liability or Losses hereunder unless the delay in
notice has a material adverse effect on the Indemnifying Party’s ability to
successfully defend such claim.

     

    (b)           Any
Indemnifying Party will have the right to defend the Indemnified Party against
the Third Party Claim with counsel of its choice reasonably satisfactory to the
Indemnified Party so long as (i) the Indemnifying Party notifies the
Indemnified Party in writing within fifteen (15) days after the Indemnified
Party has given notice of the Third Party Claim that the Indemnifying Party will
indemnify the Indemnified Party from and against the entirety of any Losses
(without any limitations) the Indemnified Party may suffer resulting from,
arising out of, relating to, in the nature of, or caused by the Third Party
Claim, (ii) the Third Party Claim involves only money damages and does not
seek an injunction or other equitable relief, (iii)  and (iv) the
Indemnifying Party conducts the defense of the Third Party Claim actively and
diligently.

     

    (c)           So
long as the Indemnifying Party is conducting the defense of the Third Party
Claim in accordance with Section 12.4(b) above, (i) the Indemnified
Party may retain separate co-counsel at its sole cost and expense and
participate in the defense of the Third Party Claim, (ii) the Indemnified
Party will not consent to the entry of any judgment or enter into any settlement
with respect to the Third Party Claim without the prior written consent of the
Indemnifying Party (which consent shall not be withheld unreasonably) and
(iii) the Indemnifying Party will not consent to the entry or any judgment
or enter into any settlement with respect to the Third Party Claim without the
prior written consent of the Indemnified Party (which consent shall not be
withheld unreasonably).

     

    (d)           In
the event that any of the conditions in Section 12.4(b) above is or becomes
unsatisfied, however, (i) the Indemnified Party may defend against, and
consent to the entry of any judgment or enter into any settlement with respect
to, the Third Party Claim in any manner it may deem appropriate (and the
Indemnified Party need not consult with, or obtain any consent from, any
Indemnifying Party in connection therewith), (ii) the Indemnifying Party
will reimburse the Indemnified Party promptly and periodically for the costs of
defending against the Third Party Claim (including reasonable attorneys’ fees
and expenses), and (iii) the Indemnifying Party will remain responsible for
any Losses the Indemnified Party may suffer resulting from, arising out of,
relating to, in the nature of, or caused by the Third Party Claim to the fullest
extent provided in this Section 12.4.

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    12.5           Manner of Payment.  Any
indemnification payment of the Seller Parties pursuant to this Article XII or
any payment of the Seller Parties pursuant to Section 4.6 shall be by way of
cashier’s or certified check or by wire transfer of immediately available funds,
if any, of the Seller, to an account designated by the Purchaser Parties, in
each case within five (5) days after the determination of indemnification
amounts.

     

    12.6           Insurance and Third Party
Recovery.  In
determining the liability of a Party for any Losses pursuant to this Article
XII, no loss, liability, damage or expense shall be deemed to have been
sustained by such Party to the extent of any proceeds previously received by
such Party from any insurance recovery (net of all out-of-pocket costs directly
related to such recovery) with respect to insurance coverage in place as of the
date hereof or other recovery from a third party (net of all out-of-pocket costs
directly related to such recovery).  If an amount is actually
recovered from an insurance carrier or other third party after damages have been
paid by the Indemnifying Party pursuant to Article XII hereof, then the party
receiving such amount shall promptly remit such amount to the Indemnifying
Party.

     

    12.7           Exclusive Remedy;
Mitigation.  Subject to Section 4.6, the Parties hereto agree
that the indemnification provisions set forth in this Article XII are the
exclusive provisions in this Agreement with respect to the liability of the
Sellers or Purchaser for the breach,  and the sole remedy of Sellers,
Purchaser, the Purchaser Parties and the Seller Parties for any claims for
breach of representation or warranty arising out of this Agreement or any law or
legal theory applicable thereto; provided, that nothing herein shall preclude
any Party from seeking any remedy based upon fraud.  Each Person
entitled to indemnification hereunder shall take reasonable steps to mitigate
all Losses that are indemnified hereunder.  Notwithstanding the
foregoing, in the event of a termination of this Agreement by either Purchaser
or Seller, nothing shall limit the rights and remedies of parties under Section
4.6 hereof.

     

    12.8           Tax Treatment of
Indemnification Payments.  All indemnification payments made
pursuant to this Agreement shall be treated by the Parties as adjustments to the
Purchase Price for all relevant Tax purposes.

     

     

    ARTICLE
XIII

     

    MISCELLANEOUS

     

    13.1           Expenses.  Except
as otherwise provided in this Agreement, Sellers and Purchaser shall bear their
own expenses, including attorney’s fees, incurred in connection with the
negotiation and execution of this Agreement and each other agreement, document
and instrument contemplated by this Agreement and the consummation of the
transactions contemplated hereby and thereby.  Notwithstanding the
foregoing, in the event of any action or proceeding to interpret or enforce this
Agreement, the prevailing party in such action or proceeding shall be entitled
to have and recover from the non-prevailing party such costs and expenses
(including, without limitation, all court costs and reasonable attorneys’ fees)
as the prevailing party may incur in the pursuit or defense
thereof.

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    13.2           Injunctive
Relief.  Damages at law may be an inadequate remedy for the
breach of any of the covenants, promises and agreements contained in this
Agreement, and, accordingly, any Party hereto shall be entitled to injunctive
relief with respect to any such breach, including, without limitation, specific
performance of such covenants, promises or agreements or an order enjoining a
party from any threatened, or from the continuation of any actual, breach of the
covenants, promises or agreements contained in this Agreement.  The
rights set forth in this Section 13.2 shall be in addition to any other
rights which a Party may have at law or in equity pursuant to this
Agreement.

     

    13.3           Submission to Jurisdiction;
Consent to Service of Process.

     

    (a)           Without
limiting any Party’s right to appeal any order of the Bankruptcy Court,
(i) the Bankruptcy Court shall retain exclusive jurisdiction to enforce the
terms of this Agreement and to decide any Claims or disputes which may arise or
result from, or be connected with, this Agreement, any breach or default
hereunder, or the transactions contemplated hereby, and (ii) any and all
proceedings related to the foregoing shall be filed and maintained only in the
Bankruptcy Court, and the Parties hereby consent to and submit to the
jurisdiction and venue of the Bankruptcy Court and shall receive notices at such
locations as indicated in Section 13.8 hereof; provided, however, that if the
Chapter 11 Cases have closed, the Parties agree to unconditionally and
irrevocably submit to the exclusive jurisdiction of any state or federal court
located in the State of New York and any appellate court from any thereof, for
the resolution of any such claim or dispute.  The Parties hereby
irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient forum for the
maintenance of such dispute.  Each of the Parties hereto agrees that a
judgment in any such dispute may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law.

     

    (b)           Each
of the Parties hereby consents to process being served by any Party in any suit,
action or proceeding by delivery of a copy thereof in accordance with the
provisions of Section 13.8.

     

    13.4           WAIVER OF RIGHT TO TRIAL BY
JURY.  EACH PARTY TO THIS AGREEMENT WAIVES ANY RIGHT TO TRIAL
BY JURY IN ANY ACTION, MATTER OR PROCEEDING REGARDING THIS AGREEMENT OR ANY
PROVISION HEREOF.

     

    13.5           Entire Agreement; Amendments
and Waivers.  This Agreement (including the schedules and
exhibits hereto) and the Confidentiality Agreement represent the entire
understanding and agreement between the Parties with respect to the subject
matter hereof.  This Agreement can be amended, supplemented or
changed, and any provision hereof can be waived, only by written instrument
making specific reference to this Agreement signed by the Party against whom
enforcement of any such amendment, supplement, modification or waiver is
sought.  No action taken pursuant to this Agreement, including,
without limitation, any investigation by or on behalf of any Party, shall be
deemed to constitute a waiver by the Party taking such action of compliance with
any representation, warranty, covenant or agreement contained
herein.  The waiver by any Party of a breach of any provision of this
Agreement shall not operate or be construed as a further or continuing waiver of
such breach or as a waiver of any other or subsequent breach.  No
failure on the part of any Party to exercise, and no delay in exercising, any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of such right, power or remedy by such Party
preclude any other or further exercise thereof or the exercise of any other
right, power or remedy.

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

    13.6           Parties in
Interest.  Nothing in this Agreement is intended to confer any
rights or remedies under or by reason of this Agreement on any Persons other
than Sellers and Purchaser and their respective successors and permitted
assigns.  Nothing in this Agreement is intended to relieve or
discharge the obligations or liability of any third Persons to Sellers or
Purchaser.  No provision of this Agreement shall give any third
Persons any right of subrogation or action over or against Sellers or
Purchaser.

     

    13.7           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the Bankruptcy Code and to the extent not consistent with the
Bankruptcy Code, the laws of the State of New York applicable to contracts made
and performed in such State.

     

    13.8           Notices.  All
notices and other communications under this Agreement shall be in writing and
shall be deemed given (i) when delivered personally by hand (with written
confirmation of receipt), (ii) when sent by facsimile (with written
confirmation of transmission) or (iii) one Business Day following the day
sent by overnight courier (with written confirmation of receipt), in each case
at the following addresses and facsimile numbers (or to such other address or
facsimile number as a party may have specified by notice given to the other
party pursuant to this provision):

     

     

    If to
Sellers, to:

     

    New
Century Energy Corp.

    1770 St.
James Place, Suite 380

    Houston,
Texas  77056

    Attn: Edward
R. DeStefeno

    Telephone:  713-266-4344

    Facsimile:  713-266-4358

     

    With a
copy (which shall not constitute notice) to:

     

    Andrews
Kurth LLP

    600
Travis, Suite 4200

    Houston,
Texas  77002

    Attn: David
A. Zdunkewicz

    Telephone: 713-220-4200

    Facsimile: 713-220-4285

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

    If to
Purchaser, to:

     

    NCEY
Holdings Corp.

    874
Walker Road, Suite C

    Dover, DE
19904

    Telephone:
800.899.8648

    Facsimile:
914.949.9618

     

     

    With a
copy (which shall not constitute notice) to:

     

    Laurus Capital Management,
LLC

    335
Madison Avenue, 10th
Floor

    New York,
New York 10017

    Attn:
General Counsel

    Telephone: 212.541.5800

    Facsimile: 212.661.6564

     

    13.9          Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any law or public policy, all other terms or provisions of
this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any Party.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as
possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent
possible.

     

    13.10        Binding Effect;
Assignment.  This Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and permitted
assigns.  Nothing in this Agreement shall create or be deemed to
create any third party beneficiary rights in any Person or entity not a Party to
this Agreement except as provided below.  No assignment of this
Agreement or of any rights or obligations hereunder may be made by Sellers or
Purchaser (by operation of law or otherwise) without the prior written consent
of the other Parties hereto and any attempted assignment without the Required
Consents shall be void; provided, that Purchaser may assign this Agreement to an
Affiliate without Sellers’ consent.  No assignment of any obligations
hereunder shall relieve the Parties hereto of any such
obligations.  Upon any such permitted assignment, the references in
this Agreement to Purchaser shall also apply to any such assignee unless the
context otherwise requires.

     

    13.11        Non-Recourse.  No
past, present or future director, officer, employee, incorporator, member,
partner or equityholder (other than Seller) of any Seller shall have any
liability for any obligations or liabilities of Sellers under this Agreement or
the Seller Documents of or for any Claim, counterclaim, cause of action or
demand based on, in respect of, or by reason of, the transactions contemplated
hereby and thereby except for any claim against an individual based on the fraud
of such individual in connection with the representations set forth in Article V
hereof.

     

    13.12        Warranties
Exclusive.  The representations and warranties contained herein
are the only representations or warranties given by Sellers or being relied upon
by Purchaser, and all other express or implied warranties are
disclaimed.  Without limiting the foregoing, Purchaser acknowledges
that the Purchased Assets are conveyed “AS IS, WHERE IS” AND SELLER MAKES NO,
AND DISCLAIMS ANY, REPRESENTATION OR WARRANTY, WHETHER EXPRESSED OR IMPLIED, AND
WHETHER BY LAW, STATUTE OR OTHERWISE, AS TO FITNESS FOR ANY PARTICULAR PURPOSE,
MERCHANTABILITY, CONFORMITY OF MODELS OR SAMPLES OF MATERIALS, AND PHYSICAL
CONDITION.

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    13.13      
Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.

     

    13.14        Mutual
Drafting.  This Agreement is the result of the joint efforts of
Purchaser and Sellers, and each provision hereof has been subject to the mutual
consultation, negotiation and agreement of the parties and there is to be no
construction against either party based on any presumption of that party’s
involvement in the drafting thereof.

     

     

    * * * *
*

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first written above.

     

     

    PURCHASERS

    NCEY
HOLDINGS CORP.

     

    By:                                                                           

     

    Name:

    Title:

     

    BRAZOS
LATERAL HOLDINGS CORP.

     

    By:                                                                           

     

    Name:

    Title:

     

    SELLERS

     

    NEW
CENTURY ENERGY CORP.

     

    By:                                                                        

     

    Name:

    Title:

     

    GULF
COAST OIL CORPORATION

     

    By:                                                                        

     

    Name:

    Title

     

    CENTURY
RESOURCES, INC.

     

    By:                                                                        

     

    Name:

    Title

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

    Exhibits

     

    A    Bill of
Sale

    B    Assignment
and Assumption Agreement

    C    Assignment
and Assumption of Lease

    D    Confirmation
Order

    E    Release

    
      
        
        

      

      
        -42-

        
          

        

      

      
        
        

      

    

    
      
        
          
            	
                    Schedules

                  
	 
      	 
      
	
                    1.1(b)

                  	
                    Domain
      Names

                  
	
                    1.1(c)

                  	
                    Copyrights

                  
	
                    1.1(d)

                  	
                    Knowledge
      of Seller

                  
	
                    1.1(e)

                  	
                    Patents

                  
	
                    1.1(h)

                  	
                    Permitted
      Exception

                  
	
                    1.1(f)

                  	
                    Trademarks

                  
	
                    1.1(g)

                  	
                    Licensed
      Intellectual Property

                  
	
                    2.1(b)

                  	
                    Oil
      and Gas Leases

                  
	
                    2.1(e)

                  	
                    Assumed
      Executory Contracts

                  
	
                    2.1(i)

                  	
                    Deposits
      and Prepaid Expenses

                  
	
                    2.2(h)

                  	
                    Other
      Assets

                  
	
                    5.25(a)

                  	
                    Employees
      to Receive Offers

                  
	
                    5.4

                  	
                    Lawsuits,
      Claims and Causes of Action

                  
	
                    5.5

                  	
                    Broker
      Fees

                  
	
                    5.6(a)

                  	
                    Compliance
      with Laws

                  
	
                    8.2(a)

                  	
                    Conduct
      of the Business

                  
	
                    8.2(b)

                  	
                    Conduct
      of the Business

                  
	
                    8.10

                  	
                    Subcontract
      Services

                  
	
                    9.2
      (a)

                  	
                    Vacation
      Policies

                  
	
                    10.2(a)

                  	
                    Required
      Consents

                  

          

        

      

    

    
      
        
        

      

      
        -43-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(b)

    

    Domain
Names

    

    

    1.           newcenturyenergy.com

    
      
        
        

      

      
        -44-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(c)

    

    Copyrights

    

    None

    
      
        
        

      

      
        -45-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(d)

    

    Knowledge of
Seller

    

    1.           Edward
R. DeStefano

    
      
        
        

      

      
        -46-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(e)

    

    Patents

    

    None

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(h)

    

    Permitted
Exceptions

    

    1.           Tax
liens on the Purchased Property that secure the payment of ad valorem
taxes.

    2.           Possible
Unpaid Severance Taxes on the Hamill & Hamill #2 well  API#:
42-321-00813

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(f)

    

    Trademarks

    

    None

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

    Schedule
1.1(g)

    

    Licensed Intellectual
Property

    

    1.           Master
Geophysical Data-Use License, dated January 9, 2006 between Seismic Exchange
Inc. as Licensor and New Century Energy Corp. as Licensee.

    

    2.           Data
License Purchase Agreement and 2D & 3D Onshore Master Seismic Data
Participation and Licensing Agreement, dated June 13, 2006, between Seitel Data
Limited as Licensor and New Century Energy Corp. as Licensee.

    

    3.           Pre-Stack
Time Migration and AVO License Agreement, dated June 13, 2006, between Seitel
Data Limited as Licensor and New Century Energy Corp. as Licensee.

    

    4.           Master
Data Use License between Lisle Gravity Inc. and New Century Energy
Corp.

    

    5.           Sublicense
Agreement between Calpine Corporation and New Century Energy Corp.

    

    6.           Master
License Agreement between WesternGeco LLC and New Century Energy
Corp.

    
      
        
        

      

      
        -50-

        
          

        

      

      
        
        

      

    

    Schedule
2.1(b)

    

    Oil and Gas
Leases

    

    

    

    See
attached

    
      
        
        

      

      
        -51-

        
          

        

      

      
        
        

      

    

    Schedule
2.1(e)

    

    See
attached.

    
      
        
        

      

      
        -52-

        
          

        

      

      
        
        

      

    

    Schedule
2.1(i)

    

    Deposits and Prepaid
Expenses

    

    1.           Karnes
Electric COOP $11,466.00

    2.           CPL
Electric Services $6,880.00

    3.           1770
St. James Corp. $5,545.00

    
      
        
        

      

      
        -53-

        
          

        

      

      
        
        

      

    

    Schedule
2.2(h)

    

    Other
Assets

    

    

    1.           100%
of the common stock of Gulf Coast Oil Corporation owned by New CenturyEnergy
Corp.

    

    2.           100%
of the common stock of Century Resources, Inc. owned by New Century
EnergyCorp.

    
      
        
        

      

      
        -54-

        
          

        

      

      
        
        

      

    

    Schedule
5.5

    

    Broker
Fees

    

    None

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

    Schedule
5.6(a)

    

    Compliance with
Laws

    

    1.           Required
Texas Railroad Commission consents and/or approvals.

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

    Schedule
8.2(a)

    

    Conduct of the
Business

    

    Not
applicable.

    
      
        
        

      

      
        -57-

        
          

        

      

      
        
        

      

    

    Schedule
8.2(b)

    

    Conduct of the
Business

    

    Not
applicable.

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

    Schedule
8.10

    

    Subcontract
Services

    

    See
attached.

    
      
        
        

      

      
        -59-Unassociated Document

    
      

      

    

    Exhibit 10.1

     

    ASSET PURCHASE
AGREEMENT
between
LUX DIGITAL PICTUTES INC.
(a Wyoming
corporation)
and
LUX DIGITAL PICTURES, GmbH,
(a German Registered
Company)

     

    THIS ASSET PURCHASE AGREEMENT (this “Agreement”), dated June
1, 2008, between related “sister” Company’s Lux Digital Pictures GmbH, a German
Registered Company, (“Seller” herein) and Lux Digital Pictures Inc., a Nevada
corporation, (“Buyer” herein), is made with reference to the following
provisions, and shall be effective upon payment of the Purchase Price and
execution of this Agreement.

     

    RECITALS

     

    A.  
The Seller owns certain motion picture rights, copyrights and licenses as well
as certain “brands” and “business concepts” and certain rights to ongoing
business and contracts as more fully detailed in Schedules “A”, “B”, “C” and “D”
attached hereto and made part of this Agreement (“Assets”).

     

    B.  
Seller desires to transfer and sell the Assets and the Buyer desires to acquire
the Assets and assume all of Seller’s right, title and interest in and to the
Assets and Seller is agreed to accept shares of common stock in the Buyer as
full consideration for the Assets.

     

    C.  
The Buyer and Seller agree that upon execution of the document and payment of
the Purchase Price, title to the Assets shall immediately pass to Buyer and
Buyer shall have complete use, control and benefit of the Assets and Seller
shall become the majority and controlling shareholder of Buyer.

     

    AGREEMENT

     

    NOW, THEREFORE, in consideration of the mutual agreements,
warranties and representations contained in this Agreement, the parties hereby
agree as follows.

     

    Incorporation of Recitals

     

    The recitals and prefatory phrases and paragraphs set forth
above are hereby incorporated in full and made part of this
Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

            

    ASSET PURCHASE AND CONSIDERATION

     

    1. Assets. Seller agrees to sell and transfer, and Buyer agrees to
purchase the Assets free and clear of all liens, claims and encumbrances, except
solely for the assumption of Seller’s obligations to complete two (2) feature
documentary motion pictures and for any guild residuals or profit participations
that may be due, in connection with the motion picture rights and licenses
acquired hereunder, and as more fully detailed in the Schedules attached hereto.

     

    4. Assignment of
Rights. Seller will assign and Buyer will accept and assume all of Seller’s
rights, title and interest in and to the Assets and any contracts in connection
therewith.

     

    5. Purchase Price.
The purchase price for the Assets shall be the issuance by Buyer to Seller of
38,000,000 shares of Buyer’s common stock and 2,500,000 shares of Buyers
preferred stock (“Shares”).

     

    6. Execution and Closing. The consummation of the transaction
contemplated by this Agreement shall occur immediately upon the execution of
this Agreement and the receipt of Seller of the Shares at which time Buyer shall
be delivered all required materials in connection with the conveyance of the
Assets and at which time Buyer shall assume full control of the
Assets.

     

        After execution of this Agreement, Seller will
provide, at its own expense, full delivery to Buyer of any and all materials,
elements, agreements and physical properties and materials that may be required
herein for Buyer to effectively and efficiently assume all right, title and
benefits of the acquired Assets. Should it be required by Buyer, the Seller
shall provide assignments, such bills of sale and instruments of transfer and
conveyance as shall be reasonably be required by Buyer for the transfer to Buyer
of all right, title and interest of Seller in and to the Assets. The parties
shall also deliver to each other such officer certificates and other instruments
as may be reasonably required to effect the transaction contemplated
herein.

     

    ASSET LIABILITY, BUYERS REPRESENTATIONS AND ISSUANCE OF
SHARES

     

    7. Asset Liability. Buyer shall not assume or be responsible for any
liabilities or obligations of Seller, except for those assumed obligations
described herein, including without limitation, any liabilities which Seller was
obligated to satisfy prior to execution Date, or for any tax liability of the
Seller . Buyer shall take all Assets transferred by this Agreement free of any
liens, claims, and encumbrances existing or claimed to exist on the
Assets.

    
    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    8. Buyers Representations. The Seller acknowledges and agrees that the
Shares being issued to Seller hereunder, as the Purchase Price, are being issued
by the Buyer as a private Company and there shall be no tradable exchange for
the Shares unless and until Buyer makes successful filings with the SEC and
FINRA to allow Buyers common stock to be traded in the public market. Seller
further acknowledges that it understands that it is the Buyers intent to make
such filings but that Buyer has no obligation, whatsoever, to Seller or anyone
related to Seller to make any such filings and it shall do so in its sole
discretion and judgment. In the event that Buyer eventually becomes a publicly
traded Company Seller acknowledges that the Shares issued to Seller hereunder
will be issued in accordance with rule 144 of the Securities Act and, as such,
Seller further acknowledges and agrees that all Shares issue hereunder will be
“restricted securities” within the meaning of the Securities Act.

     

    9. Issuance of Shares. The Seller acknowledges that the Buyer has not
agreed and has no obligation to register the resale of the Shares under the
Securities Act. Seller acknowledges and agrees that any and all certificates
representing the Shares, to be issued hereunder, may be endorsed with
restrictive legends. Seller acknowledges that it is a related Company to Buyer
and is, therefore, familiar with the details of Buyer’s financial condition and
that Seller represents that it is sophisticated and experienced in financial
matters and that the Shares being issued hereunder are for Seller’s own account
and that the issuance of the Shares have not been reviewed by the SEC or any
securities regulatory authorities.

     

    OTHER REPRESENTATIONS OF THE SELLER’S AND BUYER

     

    10. Other
Representations of the Seller. Seller hereby represents and warrants to Buyer as
follows:

     

    (a)  Title
to the Purchase Assets. Seller is the lawful owner and has good and marketable
title to all of the Assets and hereby grants indemnification unto Buyer and its
successors and assigns against claims of any third parties. Seller is a duly
authorized corporation under the laws of Germany, validly existing and in good
standing. This Agreement has been duly authorized by the Board of Directors of
Seller and constitutes the binding and enforceable obligation of Seller. Seller
has authority to sell and transfer the Assets, which are free and clear from any
liens or encumbrances. Additionally, Seller has received all consents regarding
the acquisition from any entities whose consents are necessary, including but
not limited to, any and all governmental regulatory agencies whose consents are
necessary, holders of notes, company affiliates, and corporate
consents.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) 
Seller’s Liabilities. Seller represents that it does not have any liability or
obligation (direct or indirect, contingent or absolute, known or unknown, mature
or unmatured of any nature whatsoever, whether arising out of contract, tort,
statute or other (“Liabilities”), except: (i) as specifically disclosed in a
Schedule hereto to be provided to the Seller on or before the date hereof, which
is incorporated herein by reference; (ii) liabilities incurred in the ordinary
course of business which will not individually or in the aggregate be materially
adverse to, or result in a material increase in the current or long term
liabilities or obligations of Seller . To the best knowledge of the Seller, upon
due inquiry, there is no basis for assertion against Seller of any
liabilities.

     

    (C) 
Compliance with Laws. Seller has complied with and is not in default under any
applicable law, ordinance regulation or order, the violation of which would
materially and adversely affect the Assets. There is no litigation proceeding or
investigation pending or known to be threatened which might materially and
adversely effect the Assets.

     

    (d)  Taxes.
Seller has duly filed all federal, state, local, and foreign tax returns, if
any, necessary to be filed by it and has duly paid all taxes (including any
interest or penalties) which are or will be due or payable with respect to
taxes. There are no known or proposed penalty, interest or deficiency
assessments with respect to taxes that require payment by, relate to or could
adversely affect the purchased Assets.

     

    (e) 
Completeness of Statements. No representation or warranty in this Agreement and
no statement set forth in any schedule attached hereto contains any untrue
statement of any material fact, or omits to state any material fact necessary to
make the statements contained therein not misleading.

     

    (f)  
Operation in the Ordinary Course. During the period of Seller’s ownership up and
to and including the date hereof: (i) there has been no damage destruction or
loss or any event materially adversely affecting the Assets, and (ii) there has
been no sale or other disposition of the Assets except as disclosed
herein.

     

    11. 
Representation and Warranties of the Buyer. Buyer represents and warrants to
Seller that Buyer is a corporation duly organized, validly existing and in good
standing under the laws of Wyoming, and this agreement has been duly authorized
by the Board of Directions of Buyer and constitutes the valid binding and
enforceable obligation of the Buyer . 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    12.  Notice
of Default. In the event of default by either party, the non-defaulting party
shall provide written notice of default to the defaulting party. Such notice of
default shall provide ninety (90) days for the defaulting party to cure the
default.

     

    13. 
Commissions and Finder’s Fees. Buyer and the Seller each hereby represent and
warrant that neither of them have retained or used the services of any
individual, firm or corporation in such manner as to entitle such individual,
firm or corporation to any compensation for broker’s or finder’s fees with
respect to the transactions contemplated hereby for which the other may be
liable.

     

    14. 
Governing Law. By executing this Agreement, the parties agree that this
Agreement shall be governed by and construed in accordance with the laws of the
state of Wyoming. It is the intention of the parties that this Agreement and any
dispute arising out of this agreement be governed and construed, by any Court or
judicial body, under the laws of Wyoming. Furthermore the parties recognize and
declare that Wyoming has the most significant relationship to this Agreement and
any dispute that may arise from it and that any other claimed venue or claimed
jurisdiction has no legitimate interest in this Agreement or any dispute arising
from.

     

    15. 
Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the respective successors of Seller and Buyer and their assigns.
Buyer may freely assign its rights under this Agreement without the consent of
Seller or any party related to Seller.

     

    16.  Entire
Agreement. This Agreement sets forth the entire Agreement and understanding of
Seller and the Buyer with respect to the subject matter hereof and supersedes
all prior contemporaneous written or oral agreements, understandings or
representations which are not specifically contained herein. The parties hereto
are related parties and the Agreement was drafted by a related party and they
therefore consent that the terms of this Agreement shall not be construed for or
against either party. This Agreement may be amended or modified only by a
written instrument signed by Seller and the Buyer or their successors in
interest.

     

    17.  Disputes. The parties agree to attempt to resolve any
claim or dispute arising out of or relating to this Agreement by mediation and
good faith reasonable negotiation prior to resorting to litigation or other
judicial process. In the event this Agreement is placed in the hands of an
attorney for enforcement, the prevailing party shall be entitled to recover
court costs and their reasonable attorney fees.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    18. 
Publicity. Prior to the Closing Date, no notices to third parties (including
press releases) or to any employees, suppliers or customers of Buyer or Seller
(other than key management and other persons whose knowledge is required), shall
be made by any party hereto unless mutually agreed to, planned and coordinated
jointly among the parties hereto except as may be required by regulatory
bodies.

     

    19. 
Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which taken together shall
constitute one and the same Agreement.

     

    20.  
No Third Party Beneficiaries. The terms and provisions contained in this
Agreement (including the documents and the instruments referred to herein) are
not intended to confer upon any person other than the parties and any successor
in interest of the parties hereto any rights or remedies hereunder.

     

    21.  Further Assurances. From and after the date of execution,
upon the request of any party, the other party shall do, execute, acknowledge
and deliver all such further acts, assurances, deeds, assignments, transfers,
conveyances  and other instruments and papers as may be reasonably required
or appropriate to carry out the transactions contemplated by this
Agreement.

     

    22.  Amendment. This Agreement maybe amended, or any provision
of this Agreement may be waived, provided that any such amendment or waiver is
set forth in a writing executed by Seller and Buyer or their assigns or
respective successors in interest. No course of dealing between or among any
persons having any interest in this Agreement will be deemed effective to
modify, amend or discharge any part of this Agreement or any rights or
obligations of any person under or by reason of this Agreement.

     

    23. 
Waiver. No waiver by either party of any breach of a provision of this Agreement
shall be a waiver of any subsequent breach, whether of the same or a different
provision of this Agreement.

     

    IN WITNESS WHEREOF, Seller and Buyer have executed this
Agreement as of the date first above written.

     

     

    
      	
               

               

            	
               

               

            	
               

               

            
	
              BUYER :

            	
            	
              SELLER’S :

            
	
              Lux Digital Pictures Inc

            	
               

            	
              Lux Digital Pictures, GmbH

            
	
              By

            	
               

            	
               

            
	
              Mr. Ingo Jucht

            	
               

            	
              Mr. Ingo Jucht

            
	
              CEO

            	
               

            	
              Managing Director

            
	
              Witness:

            	
               

            	
              T. Joseph Coleman

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE “A”

     

    To the Agreement dated June 10, 2008 by and between Lux
Digital Pictures, Inc (“Buyer”) and Lux Digital Pictures GmbH
(“Seller”)

     

    ASSETS

     

    
      
        	
                 

                 

              	
                 

                 

              
	
                1) 

              	
                All of Sellers right, title and interest in and to the
      motion picture “Night of the Living Dead 3D” including, but not limited
      to, the assignment of its copyright, all underlying agreements and
      properties, all licenses, contracts and agreements, logos, domain names,
      web sites, physical and marketing materials, goodwill and any and all
      other right, title and interest not specifically described
      herein.

              
	
                2) 

              	
                Specific assignment of all of Seller’s right, title and
      interest under Seller’s agreement with Lions Gate Films, Inc, for the
      picture “Night of the Living Dead 3D”, dated August 23, 2006 and attached
      hereto as Schedule “B”.

              
	
                3) 

              	
                Specific assignment of all of Seller’s right, title and
      interest under Seller’s agreement with Showcase Entertainment, Inc, for
      the picture “Night of the Living Dead 3D”, dated September 16, 2006 and
      attached hereto as Schedule “C”.

              
	
                4) 

              	
                All of Seller’s right, title and interest in and to the
      “brands” and “business concepts”: “Midnight Movies”, “New Broadway
      Cinema”, “DigiTheater” and “ShortSceams” inclusive of all copyrights and
      trademarks, the rights to use names and logos and all goodwill. All of
      Seller’s right, title and interest in and to two (2) partially completed
      feature length documentary feature motion pictures: “Nightmares in Red,
      White and Blue” and “American Grindhouse” acquired by Seller under its
      agreement with Midnight Movies Entertainment, Inc dated April 14. 2008 and
      attached hereto as Schedule
“D”.

              

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      AGREEMENT

      "NIGHT
OF THE LIVING DEAD 3D"

       

      This agreement
(the "Agreement") is made and entered into as of August 23, 2006, by and between
Lux Digital Pictures GmBH (individually and collectively, "Grantor") and Lions
Gate Films Inc. ("LGF") with respect to that certain motion pictures presently
entitled  "Night of the Living Dead 3D". 

      
        
          

        

      

       

      1.    Picture: The "Picture" shall mean
that certain motion picture presently entitled
"Night of the Living Dead 3D" and any and all
versions thereof and all "bloopers", footage, trims and outtakes thereof
(including, without limitation, the
Director's Cut and the Final
Cut and any and all versions of each of me foregoing, all versions rated by the
Motion Picture Association of America and unrated
versions of the Picture, "behind the scenes", "making of and any and all other
documentary or short films concerning the Picture, and all footage, "bloopers",
trims and out-takes of each of me foregoing),
produced by, on behalf of or at Grantor's direction, in the year 2006,
starring Briaima Brown, Joshua DesRoches, Johanna Black, Sid Harig and Greg
Travis in the principal lead and supporting roles and directed by Jeff
Broadstreet. Grantor shall only be required to Deliver such "behind the scenes",
"making of and other documentary and short films concerning the Picture, and
such footage, "bloopers" trims and outtakes of the Picture as are available,
except as otherwise set forth in the Delivery Schedule with respect to
Television Cover Shots.

       

      2.    Territory:
The 'Territory" shall mean and include each of the following: (a) United States
of America (including but not limited to, Guam, Saipan, Midway Island, the Trust
Territory Islands, the Caroline Islands, the Marshall Islands, the Virgin
Islands, Puerto Rico and American Samoa) ("U.S."), its territories, possessions,
trusteeships and commonwealths and all military bases, ships at sea, airlines
and oil rigs flying the flag or serviced from of the U.S., (b) Bermuda and the
Bahamas Islands. 

       

      3.    
Rights Granted; Release Commitments:

       

      a.    
Rights
Granted to LGF: Grantor hereby grants to LGF, on an exclusive basis, all
jigjnis
in and to the Picture and the underlying material with respect thereto,
under copyright and otherwise, in all languages and in all media, whether now
known or hereafter devised, including, without limitation, all Non-Theatrical,
Home Video, Television, and ancillary and derivative rights in and to the
Picture, by all methods of delivery, whether now know or hereafter devised,
including without limitation, all Internet Delivery Mechanisms, all as such
rights may be more
specifically defined in Schedule
"A", which is attached
hereto and incorporated herein by Has
reference (collectively, the "Rights*), but expressly excluding the
Copyright, all rights in and to
all sequels, prequels and remakes of the
Picture, and the Theatrical, Merchandising, Soundtrack, Music Pubhshjng,
Literary Pubtishing and Electronic Publishing Rights in and to
the Picture (collectively, the "Reserved Rights'^) and all rights to all
sequels, prequels and remakes of the
Picture, regardless of form
(e.g., theatrical, made for cable, episodic television, etc.). Without
limiting
me generality of the foregoing, the Rights granted to LGF hereunder shall
include, without limitation, the exclusive right to market, advertise, promote
and publicize the Picture in all media, whether now known or hereafter
devised.

       

      
        
          
          

        

        
          8

          
            

             

          

        

        
          
          

        

        "The
Night of the Dead 3D"

        DM.03

        Page 2

         

         

      

      b.   
Grantor's Theatrical
Release Commitment
Grantor shall cause a theatrical release of the Picture in the Territory prior
to LGF 8
initial Home Video Street Date of the Picture in the Territory and in no
event later than November 10,2006. Such theatrical release shall occur on no
fewer than three hundred fifty (350) screens in its initial release and shall
have no fewer than five hundred (500) playdates. Without limiting the generality
of the foregoing, Grantor shall spend no less than One Million Dollars
($1,000,000.00) in actual, direct, out-of-pocket, third party print and
advertising costs in connection with such theatrical release.

       

      c.    
LGF Marketing: Subject to timely and complete Delivery (and LGFs acceptance) of
the Picture, LGF shall cause a trailer of the Picture to appear on Video Devices
of other motion pictures)
distributed by LGF, the number and selection of which shall be determined
by LGF in its sole discretion. LGF shall market the Picture in accordance with
its good faith business judgment and standard business practices. Without
limiting the generality of the foregoing, LGF shall meaningfully consult with
Grantor with respect to the top sheet of the marketing budget for the initial
Home Video release of the Picture in the Territory. Without limiting the
generality of the foregoing, LGF shall consult with Grantor with respect to
thelselection of the initial Home Video Street Date of the Picture in the
Territory.

       

      d.    
Remakes. Prequels &
Sequels:
LGF shall have a right of first negotiation (for a period of thirty (30) days
commencing on LGFs receipt of the Negotiation Elements), and a right of first
refusal (with respect to offers that are equal to or less than one hundred fifty
percent (150%) of LGFs best financial offer) for a period of thirty (30)
days commencing on LGFs receipt of the material financial terms of any
agreement which Grantor is prepared to accept, with respect to the distribution
of each and every remake, prequel and sequel of the Picture, regardless of form
(e.g., theatrical, made-for-cable, episodic television, etc.). LGFs first
refusal rights shall revive and apply to each and every further offer which
Grantor is prepared to accept and shall continue in full force and effect so
long as Grantor retains any right, title or interest in and to the applicable
rights. Without limiting the generality of the foregoing, LGFs first negotiation
and first refusal rights shall revive and apply each and every time one of the
Negotiation Elements (as mat term is defined below) changes in any material
respect (unless the Negotiation Elements) change after an agreement with a third
party has been executed, subj ect to any reversion of rights to Grantor, as in
the case of a turnaround provision). As used herein, the term "Negotiation
Elements" shall mean written notice from Grantor that includes all of the
following: (a) a copy of the most recent draft of the script, (b) a list of
principal cast and any and all other material attachments (e.g., writer,
director and producer attachments, etc.), (c) a copy of the budget of such
production, and (d) the most recent cut of such production.

       

      e.    
Reserved
Rights Participation: Grantor represents and warrants to LGF that it has
entered into agreements with third parties for the exploitation of each of the
Reserved Rights, other man the remake, prequel and sequel rights in and to the
Picture. One hundred percent (100%) of all monies received by or credited to the
account of Grantor (or the parent of Grantor or
a wholly owned subsidiary or a wholly owned affiliated entity of Grantor) from
the eixploitation of the Reserved Rights (other than the remake, prequel and
sequel rights in and to the Picture) shall be allocated and paid Eighty Percent
(80%) to Grantor and Twenty Percent (20%) to LGF. LGF shall be copied on all
reporting statements rendered to Grantor with respect to each of the Reserved
Rights within five (5) business days of Grantor's receipt of such reporting
statement. If Grantor self-distributes any of the Reserved Rights at any point
during the Term, Grantor shall render accounting statements and payments to LGF
under the same terms and conditions as LGF is required to render accounting
statements and payments to Grantor pursuant to paragraph 12 below. LGF shall be
entitled to the same audit rights as are accorded to Grantor pursuant to
paragraph 13 below.

       

       

      
        
          
          

        

        
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      4.   
Term:
The Term"offhis Agreement shall commence as of the date first written above and
shall terminate Twenty-Five (25) years from complete Delivery of the Picture to
LGF in accordance with the Delivery Schedule plus an additional six (6) month
exclusive sell-off period Without limiting the generality of the foregoing, LGF
shall have a right of first negotiation and a right oflast refusal with respect
to any extensions of the Term hereof.

       

      5.   
Minimum
Guarantee: None.

       

      6.   
Grantor's
Participation; Distribution Fees:

       

      a.   
Grantor's
Participation: From One Hundred Percent (100%) of all monies received by
LGF on a non-refundable basis from the exploitation of the Picture in all media,
LGF shall be entitled to deduct the following on a continuing basis and in the
following order: (i) LGFs Distribution Fee for all media, and (ii) LGPs
Distribution Expenses (as that term is defined hereinbelow) plus Interest. AH
revenues remaining after the foregoing deductions shall be referred to herein as
"AGR". Grantor shall be entitled to receive One Hundred Percent (100%) of the
AGR. That portion of the AGR allocated to Grantor pursuant to this paragraph
shall be referred to herein as "Grantor's Participation". LGF shall be entitled
to cross-collateralize all revenues from all media for the purposes of recouping
LGFs recoupable Distribution Expenses plus Interest

       

      b.   
LGFs "Distribution Fee" shall equal Twenty Percent (20%) of One Hundred Percent
(100%)
of all Gross Receipts received by LGF from the exploitation of the Picture in
all media throughout
the Territory.

       

      c.    
As used herein, "Distribution Expenses" shall mean, with respect to all rights
granted to LGF
hereunder, one hundred percent (100%) of the aggregate of all actual, direct,
out-of-pocket, third
patty costs expended or incurred by LGF in direct connection with the
distribution and exploitation
of the Picture throughout the Territory in all media, including, without
limitation, all DLT
Creation Costs, and all conversion, manufacturing, duplication, shipping,
marketing, advertising,
promotion and publicity costs, and all costs to complete Delivery of the Picture
(to the
extent (i) LGF elects to cure any failure of Grantor to complete Delivery of the
Picture in accordance with the Delivery Schedule and/or
(ii) LGF is required to take "access" to any Delivery
Materials pursuant to the Delivery Schedule; and/or fiii) Grantor is not
required to deliver such elements under the Delivery Schedule).

       

      
        
          
          

        

        
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      7.    
Delivery: Grantor shall Deliver, at Grantor's sole cost and expense, all Initial
Delivery Materials (as that term is defined in the Delivery Schedule) to LGF on
or before October 16, 2006 (the "Initial Delivery Date") and all Delivery
Materials set forth in the Delivery Schedule mat are required to constitute
complete Delivery on or before October 30,2006 (the "Complete Delivery Date").
The Initial Delivery Date and the Complete Delivery Date shall be individually
and collectively referred to herein as the "Delivery Date". Without limitation
to those requirements set forth in the Delivery Schedule, all documents required
to be Delivered to LGF pursuant to the Delivery Schedule shall be Delivered in
the English language. It is the essence of this Agreement that Grantor Deliver
both the 3D version of the Picture as well as the 2D version of the Picture in
accordance with the Defivery Schedule.

       

      a    
Running
Time: The Picture shall be Delivered to I/jF
have a running time of not less than eighty (80) minutes, nor more than
one hundred ten (110) minutes, inclusive of main and end titles.

       

      b.   
Rating:
The Picture shall be delivered to LGF having been judged to receive a rating by
the M.P.A.A. that is no more restrictive man "R".

       

      8.    Credits;
Editing: LGF shall have the right to cut, edit, change or add to, delete from or
revise the Picture, including the title, for M.P-A.A. rating purposes, to meet
Television broadcaster standards, practices and timing requirements, to obtain
distribution opportunities (e.g., the creation of an airline and/or ship version
of the Picture, the creation of downloadable episodes (e.g., i-tunes downloads),
and as required by law, court order, and in settlement of a dispute. Subject
only to Grantor's third party contractual restrictions delivered to LGF,
Grantor's credit, and/or any guild restrictions which Grantor has informed LGF
are applicable to the Picture in writing prior to the execution of this
Agreement, LGF may, in its sole discretion, determine and arrange the placing
and size of credits including credits above the title and/or above the artwork
tide. Without limiting the generality of the foregoing, LGF shall have the right
to place its name and logo on all materials concerning the Picture, including,
without limitation, in the main and end credits of the Picture (e.g., LGFs
customary presentation credit), in the billing block, and on all advertising
materials. It is the essence of this Agreement that Grantor Deliver written
notice of all credit, name and likeness obligations and restrictions and all
third party contractual approval and consultation rights to LGF in writing on or
before the Initial Delivery Date. Without limiting the generality of the
foregoing, in the event that a performer or other agreement containing a credit,
name and/or likeness provision or approval or consultation right is unexecuted
as of such Initial Defivery Date, then Grantor shall deliver the most recent
draft of such agreement to LGF and LGF shall have the right to rely thereon.
Without limiting the generality of the foregoing, in the event that a performer
or other agreement obtaining a credit, name and/or likeness and/or approval or
consultation provision is unexecuted as of the Initial Delivery Date, then any
and all contractual credit, name and likeness obligations and restrictions and
approval rights negotiated after such Delivery Date must be approved by LGF in
writing prior to Grantor entering into any agreement with respect thereto. LGF
shall not remove any credit
or copyright notice appearing on screen as the Picture is Delivered to LGF
except as follows: (1) to
comply with a court order or the order of an arbitrator or mediator, (ii) as
required in settlement of a dispute, or (iii) as required by law. 

       

      
        
          
          

        

        
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No casual or inadvertent failure by LGF or any third party to comply with any
credit, name or likeness obligation or restriction, or to comply with any
approval or consultation right, shall be deemed a breach of this Agreement,
provided that LGF takes all commercially reasonable steps to cure such failure
on a prospective basis commencing on LGFs receipt ofwritten notice thereof. The
sole remedy of Grantor for a breach of any of the provisions of tins paragraph 8
shall be an action at law for compensatory damages, it being agreed that in no
event shall Grantor be entitled to consequential or punitive damages, or to seek
or obtain injunctive relief, specific performance, or any other form of
equitable relief, by reason of any breach or threatened breach of any of the
credit, name, likeness or other obligation or restriction or approval or
consultation right, nor shall Grantor be entitled to enjoin or restrain the
exhibition, distribution, marketing, advertising, promotion, or other
exploitation of the Picture.

       

      9.    
Holdbacks: LGF shall control the release dates of the Picture by means of the
Home Video Rights as well as all television exhibition in Canada (in the English
and French languages) and in Mexico (in the English and Spanish languages);
provided that Grantor's distributor of the Picture in Canada and in Mexico shall
each be entitled to release the Picture day and date with LGFs initial
commercial release of the Picture in the Territory in like nfedia. When
applicable, LGF shall also control the wholesale and suggested retail price of
the distribution of the Picture by means of the Home Video Rights in Canada (in
the English and French languages) and in Mexico (in the English and Spanish
languages); provided that Grantor's distributor of the Picture in Canada and in
Mexico shall each be entitled to release the Picture at the same price point as
LGF's initial release of the Picture in the Territory. Grantor guarantees that
the distributors) of the Picture in Canada and in Mexico shall each confirm in
writing its acknowledgement of such holdback and price
restrictions.

             

      10. 
Grantor's Representations and Warranties: Grantor represents and warrants as of
the date hereof and also upon Delivery of the Picture that (a) there are no
non-customary credit, name or likeness obligations or restrictions or approval
or consultation rights applicable to the Picture (all of which, if any, shall be
Delivered to LGF in writing on or before the Delivery Date and LGF shall have
the right to rely thereon) and that LGF shall have the right, but not the
obligation, to utilize the likeness and name of each of the principal cast
members in the artwork and in trailers for the Picture, (b) Grantor owns or
controls all Rights granted to LGF under mis Agreement and mat all such Rights
are free of all Kens, claims, charges, encumbrances, restrictions, and
commitments; (c) there is no agreement concerning the Picture with any person or
entity which, ifbreached, would or could in any way impair, interfere with,
abrogate or adveniery or ctiierwiseaftect any of tie Rights granted to LGF under
this Agreement; (d) LGFs exploitation of the Picture will not be subj ect to any
guild (e.g., WGA, DGA, and SAG) hens, or residuals; (e) it is a corporation duty
formed and validly existing in good standing under the laws of California (with
respect to Midnight Movies Entertainment, Inc.) and Germany (with respect to Lux
Digital Pictures GmbH) and has the full right, power, legal capacity and
authority to enter into and cany out the terms of this Agreement; 

       

       

      
        
          
          

        

        
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(f) neither the Picture, nor any part thereof, nor any materials contained
therein or synchronized therewith, nor the title thereof, nor the exercise of
any Right, license or privilege granted to LGF hereunder,
violates or will violate, or infringes or will infringe, any trademark, trade
name, service mark, patent, copyright (whether common law or statutory), or the
literary, dramatic, musical, artistic, pereonal, private, dviL "droit moral" or
property right or rights of privacy or any other right of any person or entity
whatsoever, or unfairly competes with or slanders or libels (or constitutes a
trade disparagem ent of) any person or entity whatsoever, (g) it has no
agreement with or obligations to any third parry with respect to the Picture
which might conflict or interfere with any of the provisions of this Agreement
or the use or enjoyment by LGF of any of the Rights granted; (h) the rights
granted to LGF herein have not been previously granted, licensed, sold,
assigned, transferred, conveyed or exploited by any person or entity and Grantor
shall not sell, assign, transfer, convey to or authorize any person or entity
any right, title or interest in and to the Picture or any part thereof or in and
to the dramatic or literary material upon which the Picture is based, which is
adverse to or in derogation of the Rights granted to LGF; (i) there is no
litigation, arbitration, claim, demand, or investigation pending or threatened
with respect to the Picture, or the literary, dramatic or musical material upon
which the Picture is based or which is contained therein, or concerning the
physical properties thereof, (j) Grantor
has secured, or by the Delivery Date will have secured, and shall for the
duration of this Agreement maintain, all clearances (including, without
limitation, all music rights and music clearances) which are necessary for LGF
to use and enjoy the Rights granted to LGF in and to the Picture throughout the
Territory for the duration of the Term and that no supplemental or additional
use payments shall be required with respect to the exploitation of the Picture
(or any portion or element thereof, mchxbrig, without limitation, the music
contained therein) and/or any use or exploitation of any advertising or
promotion of the Picture which contains the music as embodied in the Picture
(including both "m-contexf' and "out-of-context" uses thereof); and (k) Grantor
is in all respects in compliance with the requirements of the Child Protection
and Obscenity Enforcement Act of 1988, as amended by the Child Protection
Restoration and Penalties Enhancement Act of 1990, and all rules and regulations
promulgated thereunder (collectively, the "CPOEA") and mat the Picture is in all
respects in compliance with the requirements of the CPOEA, and does not contain
any material that would require Grantor to comply with the recordkeeping
requirements of the CPOEA.

       

      11.  Indemnities:

       

      a.   
Grantor shall indemnify, defend and hold harmless LGF, its parent, subsidiaries,
affiliates,
assignees, licensees, sublicensees, distributors, sub-distributors and dealers,
and the directors,
officers, agents, consultants and representatives of the foregoing (the "LGF
Indemnitees"),
from all claims, costs, liabilities, obligations, judgments or damages
(including reasonable
attorneys' fees), arising out of or for the purpose of avoiding any suit, claim,
proceeding
or demand or the settlement thereof, which may be brought against any of the LGF
Indemnitees
by reason of the actual or proposed production of the Picture, or the use or
disposition
of rights granted herein, or in connection with the breach or alleged breach of
any of the
warranties, representations or obligations made by Grantor, unless resulting
from a breach of this
Agreement by LGF.

       

      
        
          
          

        

        
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      b.     LGF shall indemnify, defend and hold harmless
Grantor, its parent, subsidiaries, affiliates,
assignees, and the directors, officers, agents, consultants and representatives
of the foregoing
(the "Grantor mdemnitees"),
from all claims, costs, liabilities, obligations, judgments or
damages (including reasonable attorneys' fees but excluding lost profits and
consequential damages)
arising out of or for the purpose of avoiding any suit, claim, proceeding
or demand or the settlement thereof, which may be brought against any of the
Grantor mdemrirtees by reason of the distribution, advertising or promotion of
the Picture, or in connection with the breach or alleged breach of any of the
warranties, representations or obligations made by LGF, except to the extent mat
LGF is required to be indemnified by Grantor in accordance with paragraph 11(a)
hereinabove.

       

      c.    
The parties hereto shall meaningfully consult with each other with respect to
the defense, institution or settlement of litigation in connection with the
rights granted hereunder and LGFs exploitation thereof during the Term and in
the Territory.

       

      12.     
Reporting
Periods: Following exploitation by LGF of the rights granted herein, customary
reporting shall be rendered to Grantor quarterly for two (2) years, then
annually. Statements and accountings shall be delivered within ninety (90) days
of each reporting period. In the event that no payments are due Grantor
hereunder for a period of two (2) consecutive years, then LGF shall have no
obligation to render any reporting hereunder until such time as payments are
owed to Grantor hereunder.

       

      13.     
Audit
Rights: Grantor shall have the right to have a certified public accountant of
its choice audit LGFs books and records with respect to the Picture(s) once per
year (and only once with respect to any particular records and/or statements) at
Grantor's sole cost and expense; such audit shall take place in LGFs principal
place of business and shall not unreasonably interfere with LGFs course of
business. Said audit shall be conducted at LGFs principal place of business
during normal business hours. Grantor shall give LGF ten (10) business days
prior written notice of its intent to conduct such audit All notices, statements
and payments made pursuant to the Agreement shall be deemed valid and shall not
be subject to dispute or audit unless disputed within twelve (12) months after
first issued.

       

      14.     
Assignment
LGF may grant, assign or sublicense tins Agreement or any of its rights or
obligations herein to any third party. Grantor shall not assign tins Agreement
or any of their rights or obligations herein, except that after Delivery of the
Picture is accepted by LGF Grantor shall have the right to assign its right to
receive payment on a single occasion in bulk. Any purported assignment in
violation of tins Agreement shall be null and void.

       

      15.     
No
Third Parry Beneficiaries: Nothing contained in tins Agreement shall be
construed so as to create any
third party beneficiary hereunder. In this regard, nothing under tins Agreement
shall
entitle any third party to any remedies against LGF, at law, in equity,
or otherwise, including, without limitation, any additional audit rights or the
right to seek or obtain injunctive relief against LGFs distribution of the
Picture.

       

      16.      Default If Grantor defaults
(or breaches a material representation and warranty), which
default remains uncured
for fifteen (15) business days following
Grantor's receipt of LGFs written notice
to
Grantor thereof, LGF shall be entitled to terminate this Agreement m the event
that Grantor fails to fully Deliver the
Delivery Materials set forth in the Delivery Schedule, which failure is not
timely,
LGF may create such Delivery Materials, the reasonable, actual, out-of-pocket
cost of which shall be recoupable by LGF, in LGFs sole discretion, as (i) a
Distribution Expense, and/or (n)
from any other monies (e.g. Grantor's Participation, bonuses, etc.) which
are then due and owing to Grantor. LGFs rights and remedies shall be cumulative,
and none ofthem shall be exclusive of any other allowed by law. If LGF defaults,
Grantor shall not be entitled to terminate or rescind this Agreement, nor to
obtain mjunctive relief with respect to the exercise by LGF of the rights
granted hereunder, Grantor's sole remedy shall be an action at law for
damages.

       

      
        
          
          

        

        
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      17.     
Governing Law; Jurisdiction: This Agreement shall be construed and interpreted
pursuant to the Laws of the State of California as it applies to contracts
entered into and performed wholly within California or, if appropriate,
the federal laws of the United States of America Any dispute regarding the
validity, construction, terms or performance of mis Agreement or any other
matter in connection therewith shall be submitted to binding arbitration before
the JAMS in Los Angeles, California in accordance with the following
provisions:

       

      a.   
If the parties cannot agree upon a single arbitrator, each party shall select
one arbitrator
who has experience in the motion picture industry and both arbitrators so
selected shall select
a third arbitrator.

       

      b.   
The third arbitrator shall adjudicate the dispute applying the laws of the state
of California
as it applies to contracts entered into and wholly performed within California
or, if appropriate,
the federal laws of the United States of America

       

      c.   
The arbitrator shall issue a written opinion specifying the basis for their
award and
the types of damages awarded.

       

      d.   
There shall be a court reporter record made of the arbitration hearing and said
record
shall be the official transcript of the proceedings.

       

      e.   
Witness
lists, production of documents and subpoenas in the arbitration shall be m
accordance
with Section 1280 et seq. of the California Code of Civil Procedure, except that
the fifteen
(15) day periods set forth in subsections (a)(2)(A)
and (B) of Section 1282.2 shall
be deemed
to be periods of five (5) business days. If the dispute pertains to Delivery,
there shall be made
available to the arbitrator all relevant materials submitted by LGF or Grantor
which purport
to constitute completion and delivery of the Picture. The parties shall
participate in an exchange
of information before the hearing. If any such discovery is not voluntarily
exchanged among
the parties, the party desiring such discovery may apply to the arbitrator at
the outset of the
arbitration for particular discovery requests. The arbitrator may deny only such
discovery as is
unreasonable or is intended to unduly delay the prompt conclusion of the
arbitration.

       

      f
..   The decision of the arbitrator (or the maj ority of the
arbitrators, if applicable) shall be binding upon the parties, shall constitute
a full and final adjudication of the controversy. The parties shall each be
responsible for paying fifty percent (50%) of all the arbitrator's and court
reporter's fees (mduduig, without limitation, the cost of the arbitration). A
judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof.

       

       

      
        
          
          

        

        
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      This
Agreement (inclusive of Schedule "A", Exhibit "A" and Exhibit "C"),
when executed, is legally binding unless and until superseded by a more
formal agreement incorporating the terms set forth above as well as additional
provisions, which when and if executed, shall replace this Agreement.
Capitalized terms used herein and not otherwise defined shall have the same
meaning as in LGF's standard long-form agreement, subject to good faith
negotiations in accordance with LGF's standard business practices. All items not
addressed above shall be negotiated in good faith pursuant to rffevailing
industry customs and standards and LGFs standard business
practices.

      
         

        AGREED AND ACCEPTED
BY:

         

        
        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	LIONS GATE FILMS, INC.	 	 	LUX DIGITAL PICTURES GMBH	 
	
                                                Missing
      Graphic Reference

                                              	 	 	
                                                Missing
      Graphic Reference

                                              	 
	
                                                Signature

                                              	 	 	
                                                Signature

                                              	 
	
                                                 

                                              	 	 	
                                                 

                                              	 
	Peter
      Block	 	 	Ingo
      Jucht	 
	PRINT
      NAME	 	 	PRINT
      NAME	 
	 	 	 	 	 
	President
      of Acquisitions	 	 	Operating
      Manager	 
	TITLE	 	 	TITLE	 
	 	 	 	 	 
	10/26/06	 	 	12.10.2006	 
	DATE	 	 	DATE	 

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

      

       

      
        
          
          

        

        
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      Schedule
"A"

       

      The
Rights

       

      All
rights in and to the Picture and the Screenplay (hereof, exclusively, in the
Territory under copyright and otherwise, but expressly excluding the Reserved
Rights (as that term is defined in the Agreement) in and to the Picture. Without
limiting the generality of the foregoing, LGF is hereby granted the sole and
exclusive right to produce and distribute the Picture in all languages in all
media (other man the Theatrical media and the other Reserved Rights as set forth
herein), whether now known or hereafter devised including, but not limited to
Home Video Rights (including, without limitation, rental, sell-thru (including,
but not limited to, Electronic Sell-Thru, including, but not limited to,
Download-to-Own and Download-to-Bum), Video-On-D em and, and other
pay-per-transaction methods of distribution), Non-Theatrical (including, without
limitation, airlines, ships, hotels, oil rigs, educational institutions, and
military bases and embassies), Television (including, without limitation,
advertising supported programming, premium programming, network television, ad
hoc network television, television syndication, closed circuit, and Pay-Per-View
by all methods of delivery, now known or hereafter devised, whether re-uplinked
or otherwise, including without limitation, terrestrial, digital terrestrial,
Satellite, Cable, MMDS, MDS, DBS, DDT, DIVA, DIVX, SMATV, MATV, ADSL, LPTV,
CATV, and other telecommunication systems), by any and all methods of
distribution, whether now known or hereafter devised, including, without
limitation, fiberoptics and Internet Delivery Mechanisms, without limiting the
foregoing, LGF is hereby granted the exclusive right to exploit the Picture in
all manner and style including, without limitation, the right to sell, rent,
give-away, exhibit, advertise and promote the Picture in all media, whether now
known or hereafter devised. Without limiting the generality of the foregoing
grant, LGF is hereby granted all elements with respect to the Picture, including
the title and characters, and including the exclusive right to edit, delete,
modify, disguise, create, develop, adapt, produce, distribute, exhibit,
broadcast, and exploit the Picture, subject to those editing restrictions set
forth in paragraph 8 of the Agreement Without limiting the generality of the
foregoing grant, LGF is hereby granted the right to exploit and/or license, in
any and all media, all footage, (rims and outtakesof and from the Picture as may
be available, and any portions thereof in any manner and style as LGF shall
determine in its sole discretion, including, without limitation, the right to
use such footage, trims and outtakes in connection with the creation of other
motion pictures and/or other audiovisual works, and to license such footage,
trims and outtakes as "stock footage" as that term is commonly understood in the
entertainment industry (collectively, the "Clip Rights")- In the event that LGF
is required to receive access to the footage, trims and outtakes of the Picture
pursuant to the Delivery Schedule (as opposed to physical delivery), then prior
to Grantor destroying or electing not to store any footage from the Pictures and
any trims and outtakes from the Pictures, Grantor shall notify LGF in writing
and LGF may elect to store such footage, trims and outtakes at LGF' s cost If
LGF does so elect to store such footage, trims and outtakes, Grantor shall have
access to all such material. Grantor shall pay for the laboratory charges and
duplication costs which Grantor incurs in this regard.

       

      Capitalized
terms utilized herein and not otherwise defined shall have the same meaning as
in LGF's Standard Terms and Conditions, which shall be negotiated in good faith
in accordance with LGF's standard business practices.

       

      
        
          
          

        

        
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        SHOWCASE
ENTERTAINMENT, INC.

        Warner
Center, 21800 Oxnard Street, Suite 150

        Woodland
Hills, California  91367

        

        September
15, 2006

        

        Mr. Tom
Coleman

        Lux
Digital Pictures GmbH

        Seestr.
13

        13353
Berlin, Germany

        

        Dear
Tom:

        

        The following sets forth the material terms of the agreement between Lux
Digital Pictures GmbH ("Producer") and Showcase Entertainment, Inc. ("Showcase")
pursuant to which Showcase is hereby appointed to be the exclusive foreign sales
agent in connection with NIGHT OF THE LIVING DEAD 3D (the “Picture”):

        

        1.    
TERM:  Five (5) years automatically extending an additional five (5)
years provided Showcase has received gross sales revenues equal to or exceeding
$1,500,000. Showcase can grant rights to its licensees for up to fifteen (15)
years (except for twenty (20) years for the German speaking territories,
Australia/New Zealand and the Italian speaking territories).

         

        2.    
RIGHTS & TERRITORY: The world excluding the U.S. and Canada, in all media,
excluding only merchandising, publishing and soundtrack rights. All agreements
shall be entered into “as agent for” the Producer.

        3.    
DISTRIBUTION FEE (computed on gross revenues received): 10% of the first
$1,000,000 of gross revenues; 12.5% on gross revenues collected in excess of
$1,000,000 but less than $2,000,000 and; 15% on gross revenues collected in
excess of $2,000,000.

         

        4.    
RECOUPABLE DISTRIBUTION EXPENSES: (a) the total sum of $35,000.00 for Showcase’s
attendance at the film and television markets, chargeable: $11,666.00 for each
of the Picture’s first three film markets (e.g., AFM, Berlin and
Cannes).  Showcase will also be exploiting the Picture at MIPCOM,
MIPTV, NATPE and any other markets that it attends at no charge; and (b) All
other expenses shall be advanced by Showcase and must be approved in writing by
Producer (eg. art, trailer, screenings, screeners, and ads).

         

        5.    
DELIVERY REQUIREMENTS:  Producer will timely deliver to Showcase
within three (3) months (or give Showcase lab access, as applicable) all
technically correct film and television elements and appropriate documentation
and publicity materials as are necessary for Showcase to make delivery of the
Picture to all of its licensees in accordance with standard industry
practice.

        

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

        
          Tom
Coleman

          September
15, 2006

          Page  of 
2 of 4

           

           

        

        6.    
ACCOUNTINGS, SEPARATE BANK ACCOUNT and AUDIT RIGHTS: Accountings will be monthly
during the first year, quarterly during the second year and bi- annually
thereafter.  Showcase shall establish a separate bank account or open
an escrow account for the Picture into which all gross revenues shall be
deposited and dispersed per this Agreement.  Producer shall have the
right to audit Showcase’s records in connection with the Picture 30 days prior
written notice, at Producer’s sole cost and expense, no more frequently than
once per year with no statement to be audited more than once.

        

        7.    
RESOLUTION OF DISPUTES:  By final, binding and non-appealable
arbitration in accordance with the rules and procedures of IFTA. Producer’s
rights in the event of any breach or purported breach by Showcase shall be
limited to an action at law for damages.  There shall be a mutual
indemnity and a 30 day cure provision for any purported breach.

        

        8.    
MINIMUMS: Producer and Showcase do hereby  mutually approve the
Schedule of Minimums, attached hereto as Schedule “A” and made a part hereof,
pursuant to which Showcase shall not have the right to accept any offer for
rights  which does not equal or exceed the minimum aggregate amount
set forth in the Schedule for all rights in a particular territory without
Producer’s written approval.  The Minimums are not guaranteed, but are
set forth solely to prohibit Showcase from licensing any particular medium for a
minimum guarantee amount lower than those presently desired by Producer.

        

        9.    
PACKAGING:  Showcase shall not “package” the Picture (ie. Showcase
shall not require a buyer to take other pictures along with the
Picture).  It is acknowledged that Showcase may sell more than one
movie, including the Picture, to the same licensee.

         

        10.  
REPS AND WARRANTIES: Producer shall provide representations and warranties in
accordance with standard industry practice including but not limited to the
following:

        

        (a)  
Showcase and its licensees shall have the right to use the names and likenesses
of all cast & crew in connection with the Picture and ads regarding the
Picture.

        

        (b)  
Producer has and will at all times have the sole right, title and interest in
and to the Picture free and clear from any liens (other than SAG) and/or other
claims; the Picture and the use of the title will not infringe on or violate any
rights of any person, corporation and/or other entity; Producer has the right to
enter into this Agreement and to grant the rights granted to Showcase hereunder;
and Showcase's exercise of its rights under this Agreement shall not infringe on
the rights of any person, corporation and/or other entity.

        

        Showcase
hereby represents and warrants that it is a Corporation in good standing and it
shall use its best, reasonable efforts to market, sell and otherwise exploit the
Picture, including obtaining so called “theatrical deals” whenever
possible, in accordance with its best business practices and shall endeavor to
achieve maximum sales and results on behalf of the Producer, in full
consultation therewith.

        
 

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

        
          Tom
Coleman

          September
15, 2006

          Page  of  3
of 4

           

          
          

        

        11.   
TERMINATION. This Agreement may be terminated upon the mutual agreement of the
parties or upon the declared insolvency or dissolution of Showcase.

        

        All
signatories to this Agreement hereby acknowledge and agree that they have read
this Agreement and have been given the opportunity to consult legal
representation prior to execution of same. This Agreement may not be modified or
waived except by a writing signed on behalf of the party to be
charged.

         

        
          
            	Very truly
      yours,  	Accepted and
      Agreed:
	Showcase
      Entertainment, Inc. 	Lux Digital Pictures
      GmbH
	 	 
	
                    By:  An
      Authorized Signer  

                  	By: An Authorized
      Signer

          

        

        
        

        
           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            Tom
Coleman

          

          September
15, 2006

          Page  of  4
of 4

        

        "NIGHT OF
THE LIVING DEAD - 3D" - SCHEDULE OF ASKING PRICES AND MINIMUM
PRICES

         

        EXHIBIT
"A"

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	 
      	
                                                                          ASKING

                                                                        	
                                                                          MINIMUMS

                                                                        	
                                                                          
                                                                            MINIMUMS

                                                                          

                                                                        	
                                                                          
                                                                            MINIMUMS

                                                                          

                                                                        	
                                                                          
                                                                            MINIMUMS

                                                                          

                                                                        
	
                                                                          TERRITORY

                                                                        	
                                                                          PRICES

                                                                        	
                                                                          THEATRICAL

                                                                        	
                                                                          VIDEO

                                                                        	
                                                                          TELEVISION

                                                                        	
                                                                          ALL
      RIGHTS

                                                                        
	
                                                                          ARGENTINA/URU/'PAR

                                                                        	 $40.000	 $15,000	 $7,000	 	
                                                                          $22.000 

                                                                        
	
                                                                          AUSTRALIA/NZ

                                                                        	
                                                                          125.000

                                                                        	
                                                                          75.000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          95,000

                                                                        
	
                                                                          ASIA
      (PAY TELEVISION)

                                                                        	
                                                                          25,000

                                                                        	 
      	 
      	
                                                                          12,000

                                                                        	
                                                                          12,000

                                                                        
	
                                                                          BANGLADESH

                                                                        	
                                                                          15,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          9,000

                                                                        
	
                                                                          BENELUX

                                                                        	
                                                                          75,000

                                                                        	
                                                                          30,000

                                                                        	
                                                                          7.500

                                                                        	
                                                                          7,500

                                                                        	
                                                                          45,000

                                                                        
	
                                                                          BRAZIL

                                                                        	
                                                                          75,000

                                                                        	
                                                                          30,000

                                                                        	
                                                                          15,000

                                                                        	 
      	
                                                                          45,000

                                                                        
	
                                                                          BULGARIA

                                                                        	
                                                                          10,000 

                                                                        	2,000 	2,000	
                                                                           1,000

                                                                        	5,000 
	
                                                                          CANADA
      (ENGLISH)

                                                                        	
                                                                          150,000

                                                                        	
                                                                          75.000

                                                                        	
                                                                          15,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          100,000

                                                                        
	
                                                                          CHILE

                                                                        	  8,000	
                                                                          2,500

                                                                        	
                                                                          1,000

                                                                        	 	
                                                                          3,500 

                                                                        
	
                                                                          CHINA

                                                                        	
                                                                          50,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          30,000

                                                                        
	  COLUMBIA	
                                                                          15,000

                                                                        	  7,500	
                                                                          2,500 

                                                                        	 	
                                                                          10,000 

                                                                        
	
                                                                          CROATIA/SLOVANIA

                                                                        	
                                                                          10,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          3,000

                                                                        
	
                                                                          CZECHOSLOVAKIA

                                                                        	
                                                                          10,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          5,000

                                                                        
	
                                                                          DOMINICAN
      REPUBLIC

                                                                        	
                                                                          8,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          500

                                                                        	 
      	
                                                                          1,500

                                                                        
	
                                                                          EAST
      AFRICA

                                                                        	
                                                                          25,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          5.000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          19,000

                                                                        
	
                                                                          ECUADOR/PERU/BOLIV1A

                                                                        	
                                                                          15,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          3,000

                                                                        	 
      	
                                                                          8,000

                                                                        
	
                                                                          ENGLAND/UK

                                                                        	
                                                                          200,000

                                                                        	
                                                                          50,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          20,000

                                                                        	
                                                                          80,000

                                                                        
	
                                                                          FRANCE

                                                                        	
                                                                          250,000

                                                                        	
                                                                          50,000

                                                                        	
                                                                          Straight
      dist

                                                                        	
                                                                          20,000

                                                                        	
                                                                          90,000

                                                                        
	
                                                                          FRENCH
      CANADA

                                                                        	
                                                                          35,000

                                                                        	
                                                                          15,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          30,000

                                                                        
	
                                                                          GERMANY/
      AUSTRIA

                                                                        	
                                                                          300,000

                                                                        	
                                                                          100,000

                                                                        	
                                                                          25,000

                                                                        	
                                                                          75,000

                                                                        	
                                                                          200,000

                                                                        
	
                                                                          GREECE

                                                                        	
                                                                          20.000

                                                                        	
                                                                          7,000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          13,000

                                                                        
	
                                                                          HONG
      KONG

                                                                        	
                                                                          30,000

                                                                        	
                                                                          8,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          12,000

                                                                        
	
                                                                          HUNGARY

                                                                        	
                                                                          10,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          4,000

                                                                        
	
                                                                          INDIA

                                                                        	75,000 	15,000	
                                                                          10,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          35,000 

                                                                        
	
                                                                          INDONESIA

                                                                        	
                                                                          35.000 

                                                                        	
                                                                          12,000 

                                                                        	2,000 	
                                                                          2,000

                                                                        	
                                                                          16,000 

                                                                        
	
                                                                          ISRAEL

                                                                        	
                                                                          15,000

                                                                        	
                                                                          7,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          10,000

                                                                        
	
                                                                          ITALY

                                                                        	
                                                                          300,000

                                                                        	
                                                                          100,000

                                                                        	
                                                                          20.000

                                                                        	
                                                                          30,000

                                                                        	
                                                                          150,000

                                                                        
	
                                                                          JAPAN

                                                                        	
                                                                          400,000

                                                                        	
                                                                          150.000

                                                                        	
                                                                          25,000

                                                                        	
                                                                          50,000

                                                                        	
                                                                          225,000

                                                                        
	
                                                                          KOREA

                                                                        	
                                                                          150,000

                                                                        	
                                                                          50.000

                                                                        	
                                                                          20.000

                                                                        	
                                                                          20,000

                                                                        	
                                                                          90,000

                                                                        
	
                                                                          LATIN
      AMERICAN TV

                                                                        	
                                                                          50,000

                                                                        	 
      	 
      	
                                                                          25,000

                                                                        	
                                                                          25,000

                                                                        
	
                                                                          MALAYSIA

                                                                        	
                                                                          10,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          5,000

                                                                        
	
                                                                          MEXICO/
      CENTRAL AMER

                                                                        	
                                                                          30,000

                                                                        	
                                                                          15,000

                                                                        	
                                                                          4.000

                                                                        	 
      	
                                                                          19,000

                                                                        
	
                                                                          MIDDLE
      EAST

                                                                        	
                                                                          15,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          5,000

                                                                        
	
                                                                          PAKISTAN

                                                                        	
                                                                          25,000

                                                                        	
                                                                          7,500

                                                                        	
                                                                           
      5,000

                                                                        	
                                                                          2,500

                                                                        	
                                                                          15,000

                                                                        
	
                                                                          PHILIPPINES

                                                                        	
                                                                          35,000

                                                                        	
                                                                          7,500

                                                                        	
                                                                          7,500

                                                                        	
                                                                          5,000

                                                                        	
                                                                          20,000

                                                                        
	
                                                                          POLAND

                                                                        	
                                                                          25,000

                                                                        	
                                                                          7,500

                                                                        	
                                                                          4,000

                                                                        	
                                                                          3,500

                                                                        	
                                                                          15,000

                                                                        
	
                                                                          PORTUGAL

                                                                        	
                                                                          20.000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          3,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          10,000

                                                                        
	
                                                                          ROMANIA

                                                                        	
                                                                          15,000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          l,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          7,000

                                                                        
	
                                                                          RUSSIA

                                                                        	
                                                                          125,000

                                                                        	
                                                                          50,000

                                                                        	
                                                                          10.000

                                                                        	
                                                                          15,000

                                                                        	
                                                                          75,000

                                                                        
	
                                                                          Scandinavia

                                                                        	
                                                                          NORDISK
      STRAIGHT DISTRIBUTION DEAL

                                                                        	 
      	 
      
	
                                                                          SINGAPORE

                                                                        	
                                                                          10,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          5,000

                                                                        
	
                                                                          SOUTH
      AFRICA

                                                                        	
                                                                          NU
      METRO STRAIGHT  DISTRIBUTION
      DEAL

                                                                        	 
      	 
      
	
                                                                          SPAIN

                                                                        	
                                                                          250,000

                                                                        	
                                                                          75,000

                                                                        	
                                                                          20,000

                                                                        	
                                                                          30,000

                                                                        	
                                                                          125,000

                                                                        
	
                                                                          SRI
      LANKA

                                                                        	
                                                                          8,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          2.000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          6,000

                                                                        
	
                                                                          TAIWAN

                                                                        	
                                                                          30,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          19,000

                                                                        
	
                                                                          THAILAND

                                                                        	
                                                                          15,000

                                                                        	
                                                                          2,000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          7,000

                                                                        
	
                                                                          TURKEY

                                                                        	
                                                                          15,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          1,000

                                                                        	
                                                                          4,000

                                                                        	
                                                                          10,000

                                                                        
	
                                                                          venezuela

                                                                        	
                                                                          15,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          2,000

                                                                        	 
      	
                                                                          7,000

                                                                        
	
                                                                          WEST
      AFRICA

                                                                        	
                                                                          25,000

                                                                        	
                                                                          10,000

                                                                        	
                                                                          5,000

                                                                        	
                                                                          4.000

                                                                        	
                                                                          19,000

                                                                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                          TOTAL
      (excluding USA)

                                                                        	
                                                                          $3,194,000 

                                                                        	
                                                                          $1,048,500

                                                                        	
                                                                          $294,000

                                                                        	
                                                                          $399,500

                                                                        	
                                                                          1,742,000

                                                                        
	
                                                                           

                                                                          Where
      Pay tv and Free TV are sold separately in any temtory,  the minimum
      price for each of Pay TV and Free TV shall
      be deemed to be 50%
      of the applicable price set forth in the "MINIMUMS TELEVISION"
      column.

                                                                        

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

        
          
             

          

          
            21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]