Document:

Exhibit 10.5 - Contribution Agreement

Exhibit 10.5

	
CONTRIBUTION AGREEMENT

            This Contribution Agreement (this “Agreement”) is dated July 14, 2004, between Riverbend Telecom, Inc., a Nevada corporation
(“Riverbend”), Riverbend Holdings, Inc., a Colorado corporation that is a subsidiary of Riverbend (“RiverbendSpin”), Leon Nowalsky, an individual (“Nowalsky”) and solely for purposes of his obligations under Section 4 and Section
13(b) hereof, and all of the equity owners (the “United Members”) of United Check Services, L.L.C., a Louisiana limited liability company (“United”).

            WHEREAS, Riverbend desires to acquire control of United by having the United Members contribute their membership interests in United to Riverbend (the
“Contribution”); and

            WHEREAS, in order to induce the United Members to make the Contribution, Riverbend has agreed to issue to the United Members common stock of Riverbend
(“Common Stock”) that, in aggregate, will equal approximately 88.2116% of the issued and outstanding shares of capital stock of Riverbend immediately after the Contribution and, in conjunction therewith, the parties have agreed to indemnify each other
against certain liabilities.

            NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

            1.   Transfer of Membership Interests.  On the date of the Contribution Closing (as defined below), the United Members will convey,
assign, transfer and contribute to Riverbend any and all right, title and interest in any and all equity interests in United held by the United Members (the “Membership Interests”).  The Membership Interests shall include those described in
Exhibit A.

            2.   Distribution of United Stock.  On the date of the Contribution Closing and upon the consummation and completion of the
Contribution, Riverbend will issue to the United Members an aggregate of 15,315,000 shares of Common Stock, or such other number of shares of Common Stock such that immediately after the Contribution the United Members hold 88.2116% of all outstanding shares of
Common Stock of Riverbend (the “Contribution Consideration”); provided, that the shares of Common Stock constituting the Contribution Consideration shall be subject to federal and state securities law restrictions.  Accordingly, all shares of Common
Stock constituting the Contribution Consideration will be “restricted” shares and may only be sold pursuant to Rule 144 of the Securities Act of 1933 (the “Act”) or other available exemption from registration or pursuant to an effective
registration statement.

            3.   Closing.   The closing of the Contribution (the “Contribution Closing”) will be at 10:00 A.M. on the sooner of July
30, 2004 or the approval of this Agreement by the Riverbend shareholders as is provided under Section 9(d) (the “Closing Date”) at the offices of Riverbend or such other time and place mutually agreed to by the parties hereto. The Contribution shall be
effective as 11:59 P.M. on the Closing Date (the “Effective Time”).  At the Contribution Closing, the following deliveries shall take place:

                        (a)   The United Members will deliver to Riverbend a Bill of Sale and
Assignment assigning the Membership Interests to Riverbend.

                        (b)   The United Members will deliver to Riverbend any certificates, if
any, that evidence the ownership of the Membership Interests, which certificates shall be properly endorsed for transfer, and any other documents that Riverbend reasonably deems necessary to effect the transfer of the Membership Interests to Riverbend.

                        (c)   Riverbend shall deliver to each of the United Members a stock
certificate that evidences the issuance to such United Member of the number of shares of Common Stock set forth opposite of such United Member’s name on Exhibit B.  The number of shares of Common Stock set forth opposite of a United Member’s
name shall be an amount equal to such United Member’s proportionate share of the Common Stock to be issued as a result of the Contribution, with each such proportionate share to be determined by and among the United Members.  The obligation of Riverbend to
issue such Common Stock to the United Members shall be conditioned upon receipt by Riverbend of a written confirmation and agreement of the United Members to the proportionate shares of the Common Stock to be issued to each such United Member as evidenced and set
forth on Exhibit B.

            4.   Representations and Warranties of Nowalsky, Riverbend and RiverbendSpin.  Nowalsky, Riverbend and RiverbendSpin, jointly and
severally, hereby represent and warrant to the United Members as of the date of this Agreement and as of the Effective Time of the Contribution Closing, as follows.

                        (a)   Corporate Status.  Riverbend is duly incorporated
under the laws of the State of Nevada and is in good standing under the laws of such state. Riverbend has taken all requisite corporation action to authorize the transactions provided for herein.  RiverbendSpin is duly incorporated under the laws of the State of
Colorado and is in good standing under the laws of such state. RiverbendSpin has taken all requisite corporation action to authorize the transactions provided for herein.

                        (b)   Capitalization.  Immediately prior to the
Contribution, Riverbend will have an authorized capitalization of 75,000,000 shares of Common Stock, of which 2,046,667 shares will be outstanding immediately prior to the Contribution.  No other shares of capital stock of Riverbend will be authorized, issued or
outstanding at such time.  All of the outstanding shares of Common Stock will be duly authorized, validly issued, fully paid and non-assessable.

                        (c)   Enforceability.  This Agreement and all other
agreements entered into pursuant hereto shall be fully enforceable against Riverbend and RiverbendSpin subject to the availability of equitable remedies.

                        (d)   Assets and Liabilities.  Immediately prior to the
Contribution, Riverbend will have no assets or liabilities other than its corporate charter.

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                        (e)   Securities Filings.  Riverbend has timely (or within
approved extensions) filed all reports required with the Securities and Exchange Commission under the Securities and Exchange Act of 1934 and has made all such reports available to United.

                        (f)   Absence of Undisclosed Liabilities. Riverbend has no
known liabilities or obligations and, to the knowledge of Riverbend, there is no reasonable basis for any assertion against Riverbend of any such liability or obligation.  For the purposes of this Agreement, the phrase “liabilities or obligations”
shall include any direct or indirect indebtedness, claim, loss, damage, deficiency, cost, expense, obligation, guarantee, or responsibility, whether accrued, absolute or contingent, or known or unknown.

                        (g)   Taxes.  Riverbend has timely filed (or requests for
extensions have been timely filed and any such extensions either are pending or have been granted and have not expired) all federal, state and local (and, if applicable, foreign) tax and informational returns required by applicable law to be filed by it (including,
without limitation, estimated tax returns, income tax returns, information returns, and withholding and employment tax returns) and Riverbend and/or RiverbendSpin (whichever is appropriate) has paid, or where payment is not required to have been made, has set up an
adequate reserve or accrual for the payment of, all taxes required to be paid by it in respect of the periods covered by such returns and, as of the Effective Time, will have paid, or where payment is not required to have been made, will have set up an adequate
reserve or accrual for the payment of, all taxes required to be paid by it for any subsequent periods ending on or prior to the Effective Time.  All federal, state and local (and, if applicable, foreign) tax and informational returns filed by Riverbend are
complete and accurate.  Riverbend is not delinquent in the payment of any tax, assessment or governmental charge.  No deficiencies for any tax, assessment or governmental charge have been proposed, asserted or assessed (tentatively or otherwise) against
Riverbend that have not been settled and paid.  There are currently no agreements in effect with respect to Riverbend to extend the period of limitations for the assessment or collection of any tax.  No audit examination or deficiency or refund litigation
with respect to such returns is pending.  Riverbend is in compliance with, and its records contain all information and documents (including properly completed IRS Forms W-9) necessary to comply with, all applicable information reporting and tax withholding
requirements under federal, state, and local tax laws, and such records identify with specificity all accounts subject to backup withholding under Section 3406 of the Internal Revenue Code of 1986, as amended (the “Code”).  Except
as set forth on the Disclosure Schedule, Riverbend has not:  (i) been a partner in a partnership or an owner of an interest in an entity treated as a partnership for federal income tax purposes; (ii) executed or filed with the Internal Revenue Service any
consent to have the provisions of Code Section 341(f) apply to it; (iii) been subject to Code Section 999; or (iv) been a party to any agreement relating to the sharing, allocation or payment of, or indemnity for, taxes.  Riverbend has furnished or
otherwise made available to the United Members true and complete copies of all tax returns and all written communications relating to any such tax returns or to any deficiency or claim proposed and/or asserted, irrespective of the outcome of such matter, but only to
the extent such items relate to tax years (i) which are subject to an audit, investigation, examination or other proceeding, or (ii) with respect to which the statute of limitations has not expired.

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                        (h)   Environmental Matters.  Riverbend has, at all times,
been in compliance with all Environmental Laws.  Riverbend has not received any communication alleging that Riverbend is not in such compliance and, to the knowledge of Riverbend, there are no present circumstances that would prevent or interfere with the
continuation of such compliance.  There are no pending Environmental Claims, Riverbend has not received notice of any pending Environmental Claims and, to the knowledge of Riverbend, there are no conditions or facts existing that might reasonably be expected to
result in legal, administrative, arbitral or other proceedings asserting Environmental Claims or other claims, causes of action or governmental investigations of any nature seeking to impose, or that could result in the imposition of, any liability arising under any
Environmental Laws upon: (A) Riverbend; or (B) any person or entity whose liability for any Environmental Claim Riverbend has or may have retained or assumed, either contractually or by operation of law.  Riverbend is not subject to any agreement, order,
judgment, decree or memorandum by or with any court, governmental authority, regulatory agency or third party imposing any liability under any Environmental Laws.  There are no past or present actions, activities, circumstances, conditions, events or incidents
that could reasonably form the basis of any claim or action or governmental investigation that could result in the imposition of any liability arising under any Environmental Laws, against Riverbend or against any person or entity whose liability for any such claim
Riverbend has or may have retained or assumed, either contractually or by operation of law.

                        (i)   Employee Benefit Plans.  Riverbend does not contribute
to, maintain or sponsor any Plan, as defined below.  For purposes of this Agreement, the term “Plan” shall mean a plan, arrangement, agreement or program that is: (A) a profit-sharing, deferred compensation, bonus, stock option, stock purchase,
pension, retainer, consulting, retirement, severance, welfare or incentive plan, agreement or arrangement, whether or not funded and whether or not terminated; (B) an employment agreement; (C) a personnel policy or fringe benefit plan, policy, program or arrangement
providing for benefits or perquisites to current or former employees, officers, directors or agents, whether or not funded, and whether or not terminated, including, without limitation, benefits relating to automobiles, clubs, vacation, child care, parenting,
sabbatical, sick leave, severance, medical, dental, hospitalization, life insurance and other types of insurance; or (D) any other employee benefit plan as defined in Section 3(3) of Employee Retirement Income Security Act of 1974 (“ERISA”), whether or
not funded and whether or not terminated.  Riverbend does not contribute to, nor does it have an obligation to contribute to or otherwise have any liability or potential liability with respect to: (A) any multi-employer plan as defined in ERISA Section 3(37);
(B) any plan of the type described in ERISA Sections 4063 and 4064 or in Code Section 413 (and regulations promulgated thereunder); or (C) any plan that provides health, life insurance, accident or other “welfare-type” benefits to current or future
retirees or former employees or directors, their spouses or dependents, other than in accordance with Code Section 4980B or applicable state continuation coverage law.  No underfunded “defined benefit plan” (as such term is defined in ERISA Section
3(35)) has been, during the five years preceding the Closing Date, transferred out of the controlled group of corporations (within the meaning of Code Sections 414(b), (c), (m) and (o)) of which Riverbend is a member or was a member during such five-year
period.

                        (j)   Certain Contracts.  Other than this Agreement,
Riverbend is not a party to, is bound or affected by, or receives benefits under any agreement, arrangement or commitment,

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written or oral, the default of which would have a Material Adverse Effect (as defined in Section 9(f)) or that cannot be terminated within less than 30 days after the Closing Date by Riverbend (without payment of any penalty
or cost).

                        (k)   Legal Proceedings.  There are no actions, suits,
claims, governmental investigations or proceedings instituted, pending or, to the knowledge of Riverbend, threatened against Riverbend or against any asset, interest, Plan or right of Riverbend.  There are no actions, suits or proceedings instituted, pending or,
to the knowledge of Riverbend, threatened against any present or former director or officer of Riverbend that would reasonably be expected to give rise to a claim against Riverbend for indemnification.  There are no actual or, to the knowledge of Riverbend,
threatened actions, suits or proceedings that present a claim to restrain or prohibit the transactions contemplated herein.  There are no obligations or liabilities of any nature, whether or not accrued, contingent or otherwise, including without limitation
those relating to environmental and occupational safety and health matters, or any other facts or circumstances that could, to the knowledge of Riverbend, result in any claims against, or obligations or liabilities of, Riverbend.  Riverbend has no off-balance
sheet liability or obligation, fixed or contingent.

                        (l)   Compliance with Laws; Filings.  Riverbend is in
compliance with all statutes and regulations, and, when it actively conducted a business, it obtained and maintained and was in compliance with all permits, licenses, deposits, and registrations applicable to the conduct of such business, and Riverbend
has not received notification that has not lapsed, been withdrawn or abandoned by any agency or department of federal, state or local government: (A) asserting a violation or possible violation of any such statute or regulation; (B) threatening to revoke any permit,
license, registration, or other government authorization; or (C) restricting or in any way limiting its operations.  Riverbend is not subject to any regulatory or supervisory cease and desist order, agreement, directive, memorandum of understanding or
commitment, and has not received any communication requesting that it enter into any of the foregoing.

                        (m)   Brokers and Finders.  Neither Riverbend nor any of its
officers, managers, directors or employees, has employed any broker, finder or financial advisor or incurred any liability for any fees or commissions in connection with the transactions contemplated herein, except for any obligation for investment banking services,
the nature and extent of which has been disclosed, and except for usual and customary fees to accountants and lawyers.

                        (n)   Minute Books.  The minute books and/or record books of
Riverbend contain accurate records of all meetings and other corporate actions of their respective shareholders and directors, and the signatures contained therein are the true signatures of the persons whose signatures they purport to be.

                        (o)   Related Party Transactions.  Riverbend has disclosed
all existing transactions existing as of the date of the Contribution Closing, to which Riverbend is a party with any director or executive officer of Riverbend or any person, corporation, or enterprise controlling, controlled by or under common control with any of
the foregoing.  All such transactions, investments and loans are on terms no less favorable to Riverbend than could be obtained from unrelated parties.  Riverbend has not, directly or indirectly, extended or

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maintained credit, arranged for the extension of credit or renewed an extension of credit in the form of a personal loan to or for any director or executive officer (or equivalent thereof) of Riverbend in violation of Section
402 of the Sarbanes-Oxley Act of 2002.

                        (p)   Labor Relations.  Riverbend is not the subject of any
claim or allegation that it has committed an unfair labor practice (within the meaning of the National Labor Relations Act or comparable state law) or seeking to compel it to bargain with any labor organization as to wages or conditions of employment, nor is
Riverbend a party to any collective bargaining agreement.  There is no strike or other labor dispute involving Riverbend, pending or threatened, or to the best knowledge of Riverbend, is there any activity involving any employees of Riverbend seeking to certify
a collective bargaining unit or engaging in any other organization activity.

            5.   Representations and Warranties of the United Members.  Except as specifically and expressly set forth in a disclosure
memorandum (the “United Disclosure Memorandum”) to be provided by the United Members to Riverbend no less than 10 days prior to the Effective Time of the Contribution, each of the United Members, jointly and severally, represents and warrants to Riverbend
and RiverbendSpin, as of the date of this Agreement and as of the Effective Time of the Contribution, as follows.

                        (a)   Entity Status.  United is a limited liability company
duly formed and existing in good standing under the laws of the State of Louisiana. United is required to be qualified to do business in only those states of the United States and foreign jurisdictions disclosed in the United Disclosure Memorandum, and the United
Disclosure Memorandum identifies whether United is qualified in each such jurisdiction.

                        (b)   Membership Interests.  The outstanding equity
interests in United consist of only the Membership Interests listed on Exhibit A.  No other equity interests in United have been issued and there are no rights, options or other agreements to purchase or acquire equity interests in United.

                        (c)   Ownership of Subsidiaries.  United has no subsidiaries.

                        (d)   Authorized and Effective Agreement.  This
Agreement constitutes the legal, valid and binding obligation of the United Members, and is enforceable against the United Members in accordance with its terms, subject to: (A) bankruptcy, fraudulent transfer, insolvency, moratorium, reorganization, conservatorship,
receivership, or other similar laws from time to time in effect relating to or affecting the enforcement of the rights of creditors generally; and (B) general principles of equity (whether applied in a court of law or in equity).

                        (e)   Assets and Liabilities.  The assets and liabilities of
United are as set forth on Exhibit C and Exhibit D, respectively.  United has no other assets or liabilities.

                        (f)   Financial Statements.  The Financial Statements (as
defined below) of United are attached as Exhibit E.  The “Financial Statements” means the audited balance sheet of United as of December 31, 2003, the audited statement of income, members’ equity and cash

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flows for the fiscal years ending December 31, 2003, the unaudited balance sheet of United as of March 31, 2004, and the unaudited statement of income, members’ equity and cash flows for the fiscal periods ending March
31, 2004, including all notes thereto, collectively.  The Financial Statements fairly present or will fairly present, as applicable, in all material respects, the financial position of United as of the dates indicated and the statements of income and changes in
members’ equity and statements of cash flows for the periods then ended in conformity with GAAP applied on a consistent basis.  No statement, certificate, instrument or other writing furnished or to be furnished hereunder by United to Riverbend contains or
will contain any untrue statement of a material fact or will omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

                        (g)   Minute Books.  The minute books and/or record
books of United contain accurate records of all meetings and other corporate actions of their respective members and managers, and the signatures contained therein are the true signatures of the persons whose signatures they purport to be.

                        (h)   Adverse Change.  Since March 31, 2004, United
has not incurred any liability, whether accrued, absolute or contingent, except as disclosed in the most recent Financial Statements, or entered into any transactions with affiliates, in each case other than in the ordinary course of business consistent with past
practices, nor has there been any event or circumstance that caused or is reasonably likely to cause an adverse change in the assets, business, operations, business prospects or financial or other condition of United.

                        (i)   Absence of Undisclosed Liabilities.  All
liabilities (including without limitation contingent liabilities and any off-balance sheet loans, financings, liabilities or indebtedness) of United that are disclosed in the most recent Financial Statements of United are normally recurring business obligations
incurred in the ordinary course of its business since the date of the most recent Financial Statements.

                        (j)   Leases, Etc.  All leases, permits and licenses
pursuant to which United, as lessee or licensee, leases or licenses rights to real or personal property are valid and enforceable in accordance with their respective terms, and United is not in default under any of the terms thereof, nor to the knowledge of the
United Members has any event occurred which, with the passage of time or giving of notice, or both, would constitute such a default.

                        (k)   Equipment, Etc.  All operating equipment of United is
in good operating condition, ordinary wear and tear excepted, is suitable for immediate use in the ordinary course of the respective business of United, is free from defects (latent and patent), is merchantable and is of a quality and quantity presently usable in the
ordinary course of the business of United.

                        (l)   Environmental Matters.  United has, at all
times, been in compliance with all Environmental Laws.  United has not received any communication alleging that United is not in such compliance and, to the knowledge of the United Members, there are no present circumstances that would prevent or interfere with
the continuation of such compliance.  There are no pending Environmental Claims, United has not received notice of any pending Environmental Claims and, to the knowledge of the United Members, there are no conditions or

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facts existing that might reasonably be expected to result in legal, administrative, arbitral or other proceedings asserting Environmental Claims or other claims, causes of action or governmental investigations of any nature
seeking to impose, or that could result in the imposition of, any liability arising under any Environmental Laws upon: (A) United or the United Members; (B) any person or entity whose liability for any Environmental Claim United has or may have retained or assumed,
either contractually or by operation of law; (C) any real or personal property owned or leased by United, or any real or personal property which United has or is judged to have managed or supervised or participated in the management of; or (D) any real or personal
property in which United holds a security interest securing a loan recorded on the books of United.  United is not subject to any agreement, order, judgment, decree or memorandum by or with any court, governmental authority, regulatory agency or third party
imposing any liability under any Environmental Laws.  There are no past or present actions, activities, circumstances, conditions, events or incidents that could reasonably form the basis of any claim or action or governmental investigation that could result in
the imposition of any liability arising under any Environmental Laws, against United or against any person or entity whose liability for any such claim United has or may have retained or assumed, either contractually or by operation of law.

                        (m)   Insurance.  The United Disclosure Memorandum
contains a true and complete list of all policies of insurance to which United is a party or under which United, or any director or officer of United, is or has been covered at any time within the three years preceding the date of this Agreement.  All such
policies of insurance listed or described in the United Disclosure Memorandum: (A) are valid, outstanding and enforceable; (B) are issued by an insurer that is financially sound and reputable; (C) taken together, provide adequate insurance coverage for the assets and
the operations of United for all risk to which United is normally exposed; (D) are sufficient for compliance with all leases and contracts; (E) will continue in full force and effect following consummation of the transactions contemplated by this Agreement; and (F)
do not provide for any retrospective premium adjustment or other experienced-based liability on the part of United.  United has paid all premiums due and has otherwise performed all obligations under each policy to which United is a party or that provides
coverage to United or to a director or officer of United, and United has given notice to the insurers of all claims that may be insured under each policy to which United is a party or that provides coverage to United or a director or officer of United.

                        (n)   Tax Matters.  United has timely filed (or
requests for extensions have been timely filed and any such extensions either are pending or have been granted and have not expired) all federal, state and local (and, if applicable, foreign) tax and informational returns required by applicable law to be filed by
them (including, without limitation, estimated tax returns, income tax returns, information returns, and withholding and employment tax returns) and United and/or the United Members (whichever is appropriate) have paid, or where payment is not required to have been
made, have set up an adequate reserve or accrual for the payment of, all taxes required to be paid by them as a result of the business operations of United for the periods covered by such returns and, as of the Effective Time, will have paid, or where payment is not
required to have been made, will have set up an adequate reserve or accrual for the payment of, all taxes required to be paid by them as a result of the business operations of United for any subsequent periods ending on or prior to the Effective Time.  All
federal, state and local (and, if applicable, foreign) tax and informational returns filed by United are complete and

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accurate.  Neither United nor any United Member is delinquent in the payment of any tax, assessment or governmental charge.  No deficiencies for any tax, assessment or governmental charge have been proposed, asserted
or assessed (tentatively or otherwise) against United or any United Member that have not been settled and paid.  There are currently no agreements in effect with respect to United or any United Member to extend the period of limitations for the assessment or
collection of any tax.  No audit examination or deficiency or refund litigation with respect to such returns is pending.  United is in compliance with, and its records contain all information and documents (including properly completed IRS Forms W-9)
necessary to comply with, all applicable information reporting and tax withholding requirements under federal, state, and local tax laws, and such records identify with specificity all accounts subject to backup withholding under Code Section 3406.  United has
not made any payments, is not obligated to make any payments, and is not a party to any contract that could obligate it to make any payments that would be disallowed as a deduction under Code Section 280G or Code Section 162(m).

                        (o)   Compensation.  The United Members have disclosed a
complete and correct list of the name, age, position, rate of compensation and any incentive compensation arrangements, bonuses or commissions or fringe or other benefits, whether payable in cash or in kind, of each director, officer or member of United and each
other person (in each case other than as an employee) to whom United pays or provides, or has an obligation, agreement (written or unwritten), policy or practice of paying or providing, retirement, health, welfare or other benefits of any kind or description
whatsoever.

                        (p)   Employee Benefit Plans.  The United Members have
disclosed an accurate and complete list of all Plans, as defined below, contributed to, maintained or sponsored by United, to which United is obligated to contribute or has any liability or potential liability, whether direct or indirect, including all Plans
contributed to, maintained or sponsored by each member of the controlled group of corporations, within the meaning of Code Sections 414(b), 414(c), 414(m) and 414(o), of which United is a member.  For purposes of this Agreement, the term “Plan” shall
mean a plan, arrangement, agreement or program described in the foregoing provisions of this Section that is: (A) a profit-sharing, deferred compensation, bonus, stock option, stock purchase, pension, retainer, consulting, retirement, severance, welfare or incentive
plan, agreement or arrangement, whether or not funded and whether or not terminated; (B) an employment agreement; (C) a personnel policy or fringe benefit plan, policy, program or arrangement providing for benefits or perquisites to current or former employees,
officers, directors or agents, whether or not funded, and whether or not terminated, including, without limitation, benefits relating to automobiles, clubs, vacation, child care, parenting, sabbatical, sick leave, severance, medical, dental, hospitalization, life
insurance and other types of insurance; or (D) any other employee benefit plan as defined in Section 3(3) of Employee Retirement Income Security Act of 1974 (“ERISA”), whether or not funded and whether or not terminated.  United does not contribute
to, nor does it have an obligation to contribute to or otherwise have any liability or potential liability with respect to: (A) any multi-employer plan as defined in ERISA Section 3(37); (B) any plan of the type described in ERISA Sections 4063 and 4064 or in Code
Section 413 (and regulations promulgated thereunder); or (C) any plan which provides health, life insurance, accident or other “welfare-type” benefits to current or future retirees or former employees or directors, their spouses or dependents, other than
in accordance with Code Section

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4980B or applicable state continuation coverage law.  None of the Plans obligates United to pay separation, severance, termination or similar-type benefits solely as a result of any transaction contemplated by this
Agreement or solely as a result of a “change in control,” as such term is used in Code Section 280G (and regulations promulgated thereunder).  Each Plan, and all related trusts, insurance contracts and funds, has been maintained, funded and
administered in compliance in all respects with its own terms and in compliance in all respects with all applicable laws and regulations, including but not limited to ERISA and the Code.  No actions, suits, claims, complaints, charges, proceedings, hearings,
examinations, investigations, audits or demands with respect to the Plans (other than routine claims for benefits) are pending or threatened, and there are no facts which could give rise to or be expected to give rise to any actions, suits, claims, complaints,
charges, proceedings, hearings, examinations, investigations, audits or demands.  No Plan that is subject to the funding requirements of Code Section 412 or ERISA Section 302 has incurred any “accumulated funding deficiency” as such term is defined
in such Sections of ERISA and the Code, whether or not waived, and each Plan has always fully met the funding standards required under Title I of ERISA and Code Section 412.  None of the assets of United is the subject of any lien arising under ERISA Section
302(f) or Code Section 412(n), United has not been required to post any security pursuant to ERISA Section 307 or Code Section 401(a)(29), and there are no facts which could be expected to give rise to such lien or such posting of security.  No event has
occurred and no condition exists that would subject United to any tax under Code Sections 4971, 4972, 4976, 4977 or 4979 or to a fine or penalty under ERISA Section 502(c).  Each Plan that is intended to be qualified under Code Section 401(a), and each trust (if
any) forming a part thereof, has received a favorable determination letter from the IRS as to the qualification under the Code of such Plan and the tax exempt status of such related trust, and nothing has occurred since the date of such determination letter that
could adversely affect the qualification of such Plan or the tax exempt status of such related trust.  No underfunded “defined benefit plan” (as such term is defined in ERISA Section 3(35)) has been, during the five years preceding the Closing Date,
transferred out of the controlled group of corporations (within the meaning of Code Sections 414(b), (c), (m) and (o)) of which United is a member or was a member during such five-year period.  As of December 31, 2003, the fair market value of the assets of each
Plan that is a tax qualified defined benefit plan equaled or exceeded, and as of the Closing Date will equal or exceed, the present value of all vested and nonvested liabilities thereunder determined in accordance with reasonable actuarial methods, factors and
assumptions applicable to a defined benefit plan on an ongoing basis.  With respect to each Plan that is subject to the funding requirements of Code Section 412 and ERISA Section 302, all required contributions for all periods ending prior to or as of the
Closing Date (including periods from the first day of the then-current plan year to the Closing Date and including all quarterly contributions required in accordance with Code Section 412(m)) shall have been made.  With respect to each other Plan, all required
payments, premiums, contributions, reimbursements or accruals for all periods ending prior to or as of the Closing Date shall have been made.  No tax qualified Plan has any unfunded liabilities.  No prohibited transaction (which shall mean any transaction
prohibited by ERISA Section 406 and not exempt under ERISA Section 408 or Code Section 4975, whether by statutory, class or individual exemption) has occurred with respect to any Plan which would result in the imposition, directly or indirectly, of any excise tax,
penalty or other liability under Code Section 4975 or ERISA Section 409 or 502(i).  Neither United nor, to the knowledge of the United Members, any United Member, any trustee, administrator or other fiduciary of any Plan, or any agent of any of the foregoing has
engaged in any transaction or

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acted or failed to act in a manner that could subject United to any liability for breach of fiduciary duty under ERISA or any other applicable law.  With respect to each Plan, all reports and information required to be
filed with any government agency or distributed to Plan participants and their beneficiaries have been duly and timely filed or distributed.  United has been and is presently in compliance with all of the requirements of Code Section 4980B.  Neither the
consideration nor implementation of the transactions contemplated under this Agreement will increase: (A) United’s obligation to make contributions or any other payments to fund benefits accrued under the Plans as of the date of this Agreement; or (B) the
benefits accrued or payable with respect to any participant under the Plans.  With respect to each Plan, the United Members have disclosed or made available to Riverbend, true, complete and correct copies of: (A) all documents pursuant to which the Plans are
maintained, funded and administered, including summary plan descriptions; (B) the three most recent annual reports (Form 5500 series) filed with the IRS (with attachments); (C) the three most recent actuarial reports, if any; (D) the three most recent financial
statements; (E) all governmental filings for the last three years, including, without limitation, excise tax returns and reportable events filings; and (F) all governmental rulings, determinations, and opinions (and pending requests for governmental rulings,
determinations, and opinions) during the past three years.  Each of the Plans as applied to United may be amended or terminated at any time by action of United’s managers, in each case subject to the terms of the Plan and compliance with applicable laws
and regulations (and limited, in the case of multiemployer plans, to termination of the participation of United thereunder).

                        (q)   Certain Contracts.  United is not a party to,
is bound or affected by, or receives benefits under: (A) any agreement, arrangement or commitment, written or oral, the default of which would have a Material Adverse Effect (as defined in Section 9(f)), whether or not made in the ordinary course of business, or any
agreement restricting its business activities, including, without limitation, agreements or memoranda of understanding with regulatory authorities; (B) any agreement, indenture or other instrument, written or oral, relating to the borrowing of money by United, or the
guarantee by United of any such obligation, that cannot be terminated within less than 30 days after the Closing Date by United (without payment of any penalty or cost); (C) any agreement, arrangement or commitment, written or oral, relating to the employment of a
consultant, independent contractor or agent, or the employment, election or retention in office of any present or former director or officer, which cannot be terminated within less than 30 days after the Closing Date by United (without payment of any penalty or
cost), or that provides benefits which are contingent, or the application of which is altered, upon the occurrence of a transaction involving United of the nature contemplated by this Agreement; or (D) any agreement or plan, written or oral, any of the benefits of
which will be increased, or the vesting of the benefits of which will be accelerated, by the occurrence of any of the transactions contemplated by this Agreement or the value of any of the benefits of which will be calculated on the basis of any of the transactions
contemplated by this Agreement.  Each matter disclosed pursuant to this Section is in full force and effect as of the date hereof.  United is not in default under any agreement, commitment, arrangement, lease, insurance policy, or other instrument, whether
entered into in the ordinary course of business or otherwise and whether written or oral, and there has not occurred any event that, with the lapse of time or giving of notice or both, would constitute such a default.  There are no renegotiations or attempts to
renegotiate, or outstanding rights to renegotiate any material amounts paid or payable to United under any contract and United has received no demands for such renegotiation.

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                        (r)   Legal Proceedings.  There are no actions,
suits, claims, governmental investigations or proceedings instituted, pending or, to the knowledge of the United Members, threatened against United or against any asset, interest, Plan or right of United, or, to the knowledge of the United Members, against any
officer, director or employee of any of them in their capacity as such.  There are no actions, suits or proceedings instituted, pending or, to the knowledge of the United Members, threatened against any present or former director or officer of United that would
reasonably be expected to give rise to a claim against United for indemnification.  There are no actual or, to the knowledge of the United Members, threatened actions, suits or proceedings that present a claim to restrain or prohibit the transactions
contemplated herein.  There are no obligations or liabilities of any nature, whether or not accrued, contingent or otherwise and whether or not required to be disclosed in the Financial Statements of United, including without limitation those relating to
environmental and occupational safety and health matters, or any other facts or circumstances that could, to the knowledge of the United Members, result in any claims against, or obligations or liabilities of, United.  United has no off-balance sheet liability
or obligation, fixed or contingent.

                        (s)   Compliance with Laws; Filings.  United is in
compliance with all statutes and regulations, and has obtained and maintained and is in compliance with all permits, licenses, deposits and registrations applicable to the conduct of its business, and United has not received notification that has not lapsed, been
withdrawn or abandoned by any agency or department of federal, state or local government: (A) asserting a violation or possible violation of any such statute or regulation; (B) threatening to revoke any permit, license, registration, or other government
authorization; or (C) restricting or in any way limiting its operations.  United is not subject to any regulatory or supervisory cease and desist order, agreement, directive, memorandum of understanding or commitment, and none of them has received any
communication requesting that it enter into any of the foregoing.

                        (t)   Brokers and Finders.  Neither United nor any of
its officers, managers, directors or employees, has employed any broker, finder or financial advisor or incurred any liability for any fees or commissions in connection with the transactions contemplated herein, except for any obligation for investment banking
services, the nature and extent of which has been disclosed, and except for usual and customary fees to accountants and lawyers.

                        (u)   Related Party Transactions.  The United Members
have disclosed all existing transactions existing as of the date hereof, to which United is a party with any director, executive officer or United Member or any person, corporation, or enterprise controlling, controlled by or under common control with any of the
foregoing.  All such transactions, investments and loans are on terms no less favorable to United than could be obtained from unrelated parties.  United has not, directly or indirectly, extended or maintained credit, arranged for the extension of credit or
renewed an extension of credit in the form of a personal loan to or for any director or executive officer (or equivalent thereof) of United in violation of Section 402 of the Sarbanes-Oxley Act of 2002.

                        (v)   Labor Relations.  United is not the subject of any claim or allegation that
it has committed an unfair labor practice (within the meaning of the National Labor Relations Act

12

or comparable state law) or seeking to compel it to bargain with any labor organization as to wages or conditions of employment, nor is United a party to any collective bargaining agreement.  There is no strike or other
labor dispute involving United, pending or threatened, or to the best knowledge of United, is there any activity involving any employees of United seeking to certify a collective bargaining unit or engaging in any other organization activity.

                        (w)   Encumbrances.  Upon the consummation of such
transactions, title to the Membership Interests shall be transferred to Riverbend, free and clear of any liens, encumbrances, claims or defects of title.

            6.   Taxes.  The United Members shall be responsible for any taxes attributable to the transactions described herein, including,
without limitation, taxes attributable to the Contribution and the issuance by Riverbend of the Common Stock to the United Members, but excluding any taxes generated by the constructive distribution of assets from Riverbend to its shareholders that will be deemed to
occur immediately before the Contribution.

            7.   Covenants of United Prior to Closing.

                        (a)   Access and Cooperation; Due Diligence.  Between the
date of this Agreement and the Closing Date, the United Members will cause United to afford the officers and authorized representatives of Riverbend access to all of the sites, properties, books and records of United and will furnish Riverbend such additional
financial and operating data and other information as to the business of United as Riverbend may from time to time reasonably request.  The United Members will cause United to cooperate with Riverbend and its representatives and counsel in the preparation of any
documents or other material that may be required in connection with any documents or materials required by this Agreement or necessary to complete the transactions contemplated hereunder.

                        (b)   Conduct of Business Pending Closing.  Between the date
of this Agreement and the Contribution Closing, the United Members will cause United to:

                                   
(i)   Carry on its business in substantially the same manner as it has heretofore and not introduce any material new method of management, operation or accounting;

                                   
(ii)   Perform in all material respects all of its obligations under agreements relating to or affecting its respective assets, properties or rights;

                                   
(iii)   Use all reasonable efforts to keep in full force and effect present insurance policies or other comparable insurance coverage;

                                   
(iv)   Use its reasonable efforts to maintain and preserve its business organization intact, retain its present key employees and maintain its relationships with suppliers, customers and others having business relations with it;

13

                                   
(v)   Maintain compliance with all material permits, laws, rules and regulations, deposit requirements, consent orders, and all other orders of applicable courts, regulatory agencies and similar governmental authorities;

                                   
(vi)   Maintain present debt and lease instruments and not enter into new or amended debt or lease instruments, without the knowledge and consent of Riverbend (which consent shall not be unreasonably withheld); and

                                   
(vii)   Maintain or reduce present salaries and commission levels for all officers, directors, employees and agents.

                        (c)   Prohibited Activities.  Between the date hereof and
the Closing Date, the United Members will cause United not to do, perform or engage in, without the prior written consent of Riverbend, any of the following (the “Prohibited Activities”):

                                   
(i)   Change its organizational documents;

                                   
(ii)   Issue any securities, options, warrants or membership interests of any kind;

                                   
(iii)   Declare or pay any dividend, or make any distribution in respect of its securities or purchase, redeem or otherwise acquire or retire for value any of its securities;

                                   
(iv)   Enter into any contract or commitment or incur or agree to incur any liability or make any capital expenditures, except if it is in the normal course of business (consistent with past practice) and involves an amount not in excess of
$10,000;

                                   
(v)   Create, assume or permit to exist any mortgage, pledge or other lien or encumbrance upon any assets or properties whether now owned or hereafter acquired;

                                   
(vi)   Sell, assign, lease or otherwise transfer or dispose of any property or equipment except in the normal course of business;

                                   
(vii)   Negotiate for the acquisition of any business or the start-up of any new business;

                                   
(viii)   Merge or consolidate or agree to merge or consolidate with or into any other corporation;

                                   
(ix)   Waive any material rights or claims of United, provided that United may negotiate and adjust bills in the course of good faith disputes with customers in a manner consistent with past practice; or

                                   
(x)   Enter into any other transaction outside the ordinary course of its business or prohibited hereunder.

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                        (d)   No Shop.  Neither the United Members, nor United, nor
any agent, officer or manager of any of the foregoing will, during the period commencing on the date of this Agreement and ending with the earlier to occur of the Closing Date or the termination of this Agreement in accordance with its terms, directly or indirectly
(i) solicit or initiate the submission of proposals or offers from any person for, (ii) participate in any discussions pertaining to, or (iii) furnish any information to any person other than Riverbend or their authorized agents relating to, any
acquisition or purchase of all or a material amount of the assets of, or any equity interest in, United or a merger, consolidation or business combination of United.

                        (e)   Notification of Certain Matters.  The United Members
shall give prompt notice to Riverbend of: (i) the occurrence or non-occurrence of any event the occurrence or non-occurrence of which would be likely to cause any representation or warranty of United contained herein to be untrue or inaccurate in any material respect
at or prior to the Contribution Closing; and (ii) any material failure of the United Members or of United to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by such person hereunder.

            8.   Covenants of Riverbend Prior to Closing.

                        (a)   Access and Cooperation; Due Diligence.  Between the
date of this Agreement and the Closing Date, Riverbend will afford the authorized representatives of the United Members or of United access to the books and records of Riverbend and will furnish the United Members such additional information as is reasonably
necessary to verify the information set forth on Exhibit C.  Riverbend will cooperate with United, its representatives, auditors and counsel in the preparation of any documents or other material which may be required in connection with any documents or
materials required by this Agreement or necessary to complete the transactions contemplated hereunder.

                        (b)   Conduct of Business Pending Closing.  Between the date
of the Spin-Off (as defined in Section 11 below) and the Contribution Closing, Riverbend will:

                                   
(i)   Carry on no business;

                                   
(ii)   Use its reasonable efforts to maintain and preserve its business organization intact and retain its reporting status under the Securities and Exchange Act of 1934; and

                                   
(iii)   Maintain compliance with all material permits, laws, rules and regulations, consent orders, and all other orders of applicable courts, regulatory agencies and similar governmental authorities.

                        (c)   Prohibited Activities.  Other than in connection with
the Spin-Off, between the date of the Spin-Off and the Closing Date, Riverbend will not, without the prior written consent of the United Members, engage in any of the following (the “Prohibited Activities”):

15

                                   
(i)   Issue any securities, options, warrants, calls, conversion rights or commitments relating to its securities of any kind;

                                   
(ii)   Purchase, redeem or otherwise acquire or retire for value any shares of its stock;

                                   
(iii)   Enter into any contract or commitment or incur or agree to incur any liability or make any capital expenditures;

                                   
(iv)   Create, assume or permit to exist any mortgage, pledge or other lien or encumbrance upon any assets or properties whether now owned or hereafter acquired; or

                                   
(v)   Merge or consolidate or agree to merge or consolidate with or into any other corporation.

                        (d)   No Shop.  Neither Riverbend nor any agent, officer,
director, trustee or any representative of any of the foregoing will, during the period commencing on the date of this Agreement and ending with the earlier to occur of the Closing Date or the termination of this Agreement in accordance with its terms, directly or
indirectly (i) solicit or initiate the submission of proposals or offers from any person for, (ii) participate in any discussions pertaining to, or (iii) furnish any information to any person other than United or its authorized agents relating to, any
acquisition or purchase of all or a material amount of the assets of, or a majority equity interest in, Riverbend or a merger, consolidation or business combination of Riverbend.

                        (e)   Notification of Certain Matters.  Riverbend shall give
prompt notice to United and the United Members of: (i) the occurrence or non-occurrence of any event the occurrence or non-occurrence of which would be likely to cause any representation or warranty of Riverbend contained herein to be untrue or inaccurate in any
material respect at or prior to the Contribution Closing; or (ii) any material failure of Riverbend to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by such person hereunder.

            9.   Conditions Precedent to Obligations of Riverbend.  The obligations of Riverbend with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver on or prior to the Closing Date of all of the following conditions.

                        (a)   Representations and Warranties; Performance of
Obligations.  All representations and warranties of the United Members contained in this Agreement shall be true and correct in all material respects as of the Effective Time as though such representations and warranties had been made as of that time; all
the terms, covenants and conditions of this Agreement to be complied with and performed by the United Members on or before the Closing Date shall have been duly complied with and performed in all material respects; and certificates to the foregoing effect dated the
Closing Date, and signed by United and the United Members, as the case may be, shall have been delivered to Riverbend.

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                        (b)   Satisfaction.  All actions, proceedings, instruments
and documents required to carry out this Agreement or incidental hereto and all other related legal matters shall be reasonably satisfactory to Riverbend and its counsel.

                        (c)   No Litigation.  No action or proceeding before a court
or any other governmental agency or body shall have been instituted or threatened to restrain or prohibit the transactions contemplated hereunder and no governmental agency or body shall have taken any other action or made any request of United or the United Members
as a result of which Riverbend deems it inadvisable to proceed with the transactions hereunder.

                        (d)   Consents and Approvals.  The shareholders of Riverbend
shall have approved this Agreement.  All necessary consent of and filings with any governmental authority or agency relating to the consummation of the transaction contemplated herein shall have been obtained and made and no action or proceeding shall have been
instituted or threatened to restrain or prohibit the transactions hereunder and no governmental agency or body shall have taken any other action or made any request of United or the United Members as a result of which Riverbend deems it inadvisable to proceed with
the transactions hereunder.

                        (e)   Good Standing Certificates.  United shall have
delivered to Riverbend a certificate, dated as of a date no later than ten days prior to the Closing Date, duly issued by the Secretary of State of Louisiana that United is in good standing and that all state franchise and/or income tax and informational returns and
taxes for each for all periods prior to the Contribution Closing have been filed and paid.

                        (f)   No Material Adverse Change.  No event or circumstance
shall have occurred with respect to United that would constitute a Material Adverse Effect.  For purposes of this Agreement, “Material Adverse Effect” means any fact, event, change, development or effect that, individually or when taken together with
any other facts, events, changes, developments or effects, is or could reasonably be expected to be materially adverse to any of the business, operations, results of operations, condition (financial or otherwise), prospects, assets or liabilities of the entity with
respect to which the Material Adverse Effect may have occurred.

                        (g)   Officer’s Certificate.  Riverbend shall have
received a certificate or certificates, dated the Closing Date and signed by the managers of United, certifying the truth and correctness of attached copies of its organization documents (including amendments thereto).

            10.   Conditions Precedent to Obligations of the United Members.  The obligations of the United Members with respect to actions to
be taken on the Closing Date are subject to the satisfaction or waiver on or prior to the Closing Date of all of the following conditions.

                        (a)   Representations and Warranties; Performance of
Obligations.  All the representations and warranties of Riverbend contained in this Agreement shall be true and correct in all material respects as of the Effective Time with the same effect as though such representations and warranties had been made on and
as of that time; all the terms, covenants and conditions of this Agreement to be complied with and performed by Riverbend on or before the

17

Closing Date shall have been duly complied with and performed in all material respects; and certificates to the foregoing effect dated the Closing Date, and signed by Riverbend shall have been delivered to the United
Members.

                        (b)   Satisfaction.  All actions, proceedings, instruments
and documents required to carry out this Agreement or incidental hereto and all other related legal matters shall be reasonably satisfactory to the United Members and their counsel.

                        (c)   No Litigation.  No action or proceeding before a court or
any other governmental agency or body shall have been instituted or threatened to restrain or prohibit the transactions hereunder and no governmental agency or body shall have taken any other action or made any request of Riverbend as a result of which the United
Members deem it inadvisable to proceed with the transactions hereunder.

                        (d)   Consents and Approvals.  The shareholders of Riverbend
shall have approved this Agreement.  All necessary consent of and filings with any governmental authority or agency relating to the consummation of the transaction contemplated herein shall have been obtained and made and no action or proceeding shall have been
instituted or threatened to restrain or prohibit the transactions hereunder and no governmental agency or body shall have taken any other action or made any request of Riverbend as a result of which the United Members deem it inadvisable to proceed with the
transactions hereunder.

                        (e)   Good Standing Certificates.  Riverbend shall have
delivered to the United Members a certificate, dated as of the date no later than 10 days prior to the Closing Date, duly issued by the Secretary of State of Nevada that Riverbend is in good standing.

                        (f)   No Material Adverse Change.  No event or circumstance
shall have occurred with respect to Riverbend that would constitute a Material Adverse Effect.

                        (g)   Officer’s Certificate.  The United Members shall
have received a certificate or certificates, dated the Closing Date and signed by the President of Riverbend, certifying the truth and correctness of attached copies of Riverbend’s Articles of Incorporation (including amendments thereto), and Bylaws (including
amendments thereto).

            11.   Additional Agreements.

                        (a)   The Spin-Off.  After the execution of this Agreement,
Riverbend shall act promptly to effect the spin-off of all of its existing assets and liabilities to RiverbendSpin, which will temporarily be a subsidiary of Riverbend, and to distribute the capital stock of RiverbendSpin to the shareholders of Riverbend (the
“Spin-Off”), so that the Spin-Off is completed prior to the Contribution Closing.  Prior to completion of the Spin-Off, Riverbend shall have completed and filed with the Securities and Exchange Commission (“SEC”) a registration statement
on Form 10 pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, and the SEC shall have approved such Form 10.

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                        (b)   Employment Agreement.  Prior to the Contribution
Closing, Walter Reid Green, Jr. will enter into an employment agreement with Riverbend for a one-year period that commences on the Contribution Closing and a letter agreement providing Mr. Green with the right to receive, after the Contribution Closing, an option to
purchase 312,000 shares of common stock in Riverbend issued pursuant to and in accordance with the terms of an incentive stock option plan.  Mr. Green shall have executed an employment agreement substantially similar to the form attached hereto as Exhibit
F.

                        (c)   Reasonable Best Efforts.  Subject to the terms and
conditions of this Agreement, each party will use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate the transactions
contemplated by this Agreement as soon as practicable after the date hereof.  Riverbend will take, in accordance with applicable law and its Articles of Incorporation and Bylaws, all action necessary to convene a meeting of its shareholders to consider and vote
upon the adoption of this Agreement and the transactions contemplated herein.  The United Members shall cooperate with Riverbend to convene such meeting and to hold a vote upon the adoption of this Agreement and the transactions contemplated herein by providing
such information about United and its plans with respect to Riverbend after the Contribution as may be reasonably requested by Riverbend.

                        (d)   Further Assurances.  Subject to the terms and
conditions of this Agreement, each of the parties hereto agrees to use all reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, common, proper or advisable under applicable legal requirements, to
consummate and make effective the transactions contemplated by this Agreement.  If at any time after the Contribution Closing any further action is necessary or desirable to carry out the purposes of this Agreement, Riverbend and the United Members, as the case
may be, shall take or cause to be taken all such necessary or convenient action and execute, and deliver and file, or cause to be executed, delivered and filed, all necessary or convenient documentation.

                        (e)   Taxes.  RiverbendSpin and the shareholders of
RiverbendSpin (other than Riverbend) shall be solely responsible for the payment of all tax liability incurred as a result of or arising from the Spin-Off, including the deemed distribution of property from Riverbend to its shareholders that is deemed to occur
immediately before the Contribution.  Except as noted in the prior sentence, each other party hereto shall be solely responsible for the payment of all of such party’s tax liability incurred as a result of or arising from the Contribution.

            12.   Termination of this Agreement.

                        (a)   Termination.  This Agreement may be terminated at any
time prior to the Closing Date solely:

                                   
(i)   By mutual consent of the United Members and Riverbend;

                                   
(ii)   By the United Members, on the one hand, or by Riverbend, on the other hand, if the transactions contemplated by this Agreement to take place at the Contribution

19

Closing shall not have been consummated by December 31, 2004, unless the failure of such transactions to be consummated is due to the failure of the party seeking to terminate this Agreement to perform any of its obligations
under this Agreement to the extent required to be performed by it prior to or on the Closing Date; or

                                   
(iii)   By the United Members, on the one hand, or by Riverbend, on the other hand, if a material breach of the representations or a material breach or default shall be made by the other party in the observance or in the due and timely performance of
any of the covenants or agreements contained herein, and the curing of such default shall not have been made on or before the Closing Date or by the United Members, if the conditions set forth in Section 10 hereof have not been satisfied or waived as of the Closing
Date, or by Riverbend, if the conditions set forth in Section 9 hereof have not been satisfied or waived as of the Closing Date.

                        (b)   Liabilities in Event of Termination.  Termination of
this Agreement will in no way limit any obligation or liability of any party based on or arising from a breach or default by such party with respect to any of its representations, warranties, covenants or agreements contained in this Agreement or in the schedules or
exhibits delivered by such party, including, but not limited to, legal and audit costs and out of pocket expenses.  In the event of termination by United, United shall reimburse Riverbend for all accountable legal and accounting expenses incurred by Riverbend in
connection with this Agreement and the Spin-Off.

            13.   Indemnification.

                        (a)   Indemnification by the United Members.  The United
Members agree, jointly and severally, to indemnify and hold harmless Riverbend (in the event the Contribution is not consummated) and RiverbendSpin (in the event the Contribution is consummated) and their respective officers, directors, agents and representatives
against any and all losses, claims, damages, liabilities, costs and expenses (including but not limited to, attorneys’ fees and other expenses of investigation and defense of any claims or actions), directly or indirectly resulting from, relating to or arising
out of: (i) any breach by the United Members of any covenant, agreement, warranty or representation contained in this Agreement, (ii) any misstatement by the United Members of a material fact contained in this Agreement or in any of the documents executed in
connection with the transactions contemplated by this Agreement; or (iii) the omission by the United Members to state any fact necessary to make the statements contained in this Agreement or in any of the documents executed in connection with the transactions
contemplated by this Agreement not misleading.  Notwithstanding the above, no claim for indemnification shall be made against the United Members until Riverbend or RiverbendSpin (whichever is applicable) and their respective officers, directors, agents and
representatives have suffered adverse consequences pursuant to this Section 13(a) in excess of $10,000, in which case a claim for indemnification may be made for all adverse consequences suffered by Riverbend or RiverbendSpin (and not just such portion of such claim
as may exceed $10,000).

                        (b)   Indemnification by Riverbend.  Riverbend and/or
Nowalsky (in the event that the Spin-Off is not consummated) or RiverbendSpin and/or Nowalsky (in the event that the Spin-Off is consummated) agree to indemnify and hold harmless the United Members against

20

any and all losses, claims, damages, liabilities, costs and expenses (including but not limited to, attorneys’ fees and other expenses of investigation and defense of any claims or actions) directly or indirectly
resulting from, relating to or arising out of: (i) any breach by Riverbend or RiverbendSpin of any covenant, agreement, warranty or representation of Riverbend and RiverbendSpin contained in this Agreement, (ii) any misstatement by Riverbend or RiverbendSpin of
a material fact contained in this Agreement or in any of the documents executed in connection with the transactions contemplated by this Agreement; or (iii) the omission by Riverbend or RiverbendSpin to state any fact necessary to make the statements contained in
this Agreement or in any of the documents executed in connection with the transactions contemplated by this Agreement not misleading.  Notwithstanding the above, no claim for indemnification (other than for tax liabilities resulting from the Spin-Off) shall be
made against Riverbend, RiverbendSpin, and/or Nowalsky (whichever is applicable) until the United Members have suffered adverse consequences pursuant to this Section 13(b) in excess of $10,000, in which case a claim for indemnification may be made for all adverse
consequences suffered by the United Members (and not just such portion of such claim as may exceed $10,000).

                        (c)   Indemnification Notice.  Should any party (the
“Indemnified Party”) suffer any loss, damage or expense for which another party (the “Indemnifying Party”) is obligated to indemnify and hold such Indemnified Party harmless pursuant to this Section 13, the following shall apply.  If an
Indemnified Party intends to exercise its right to indemnification provided in this Section 13, such Indemnified Party shall notify each Indemnifying Party in writing of such Indemnified Party’s intention to do so and the facts or circumstances giving rise to
the claim (the “Indemnification Claim”).  An Indemnification Claim, at the option of the Indemnified Party, may be asserted as soon as any situation, event or occurrence has been noticed by the Indemnified Party regardless of whether actual harm has
been suffered or out-of-pocket expenses incurred.  During the period of 15 days after notice by the Indemnified Party, each Indemnifying Party shall be entitled to cure the defect or situation giving rise to the Indemnification Claim to the satisfaction of the
Indemnified Party.  If the Indemnifying Parties are unwilling or unable to cure the defect or situation giving rise to the Indemnification Claim during the 15-day period, the Indemnified Party shall thereafter be entitled to indemnification as provided in this
Section 13.

                        (d)   Matters Involving Third Parties.  If any third party
shall notify any Indemnified Party with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against any Indemnifying Party under this Section 13, then the Indemnified Party shall promptly notify each
Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying
Party thereby is prejudiced.  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 15 days after the Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party will indemnify the Indemnified Party from any adverse consequences the Indemnified Party may suffer resulting
from or caused by the Third Party Claim; (ii) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the

21

financial resources to defend against the Third Party Claim and fulfill its indemnification obligations hereunder; and (iii) the Indemnifying Party conducts the defense of the Third Party Claim actively and diligently. 
The Indemnifying Party shall 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 Indemnified Party, which consent shall not be withheld unreasonably.

            14.   Post-Closing Covenants. Following Closing:

                        (a)   Riverbend, RiverbendSpin and the United Members shall cooperate
with respect to the corporate records relating to United’s business, including billing records, tax records, accounting records and other materials that may be necessary for future tax audits, other audits or other legal compliance matters.  Each party
will preserve and maintain such records as may be customary in the industry or consistent with government record retention policies.   Each party will allow the other access to such records and will cooperate in providing information and otherwise assist in
responding to any legitimate business needs of the other.

                        (b)   The United Members shall:

                                   
(i)   Cause final state and federal income tax and informational returns to be prepared and filed for United (as it existed for federal income tax purposes immediately prior to the Contribution) reflecting the income and loss of United for
United’s short taxable year ending on the date of the Contribution Closing; and

                                   
(ii)   Cause a person who was an officer of United prior to the Contribution to sign such final income tax returns and other returns on behalf of United.

                        (c)   RiverbendSpin shall:

                                   
(i)   Determine the amount of any distributions for federal income tax purposes that are deemed to be made to the shareholders of Riverbend during the taxable year that ends immediately prior to the Contribution (including any distribution deemed to be
made by Riverbend to its shareholders of the value of its corporate charter);

                                   
(ii)   Prepare and distribute to the shareholders of Riverbend forms 1099 and other required information returns reflecting the deemed distributions made to such shareholders for such taxable year; and

                                   
(iii)   Prepare and cause form 966 to be filed with the Internal Revenue Service in connection with any deemed dissolution of Riverbend resulting from the Contribution.

            15.   Miscellaneous.

                        (a)   Complete Agreement. This Agreement sets forth the entire
Agreement of the parties hereto with respect to the subject matter hereof and all prior agreements and understandings are specifically superseded.

22

                        (b)   Survival of Agreement. This Agreement and all terms,
warranties and provisions hereof will survive the Contribution Closing.

                        (c)   Successors and Assigns. This Agreement will be binding upon
the parties hereto and their respective successors and assigns.

                        (d)   Arbitration. Any dispute arising in connection with this
Agreement shall be resolved by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association as then in effect.  The arbitrators shall be instructed to award, in addition to damages or other remedies, attorneys’
fees and costs of arbitration in favor of the prevailing party.

                        (e)   Specific Enforcement; Legal Fees. The parties acknowledge
that a breach of the provisions of this Agreement is likely to result in irreparable and unreasonable harm to the other party, and that injunctive relief, as well as damages, would be appropriate. In the event action is brought to enforce or construe any provisions
of this Agreement, the prevailing party shall be entitled to collect reasonable attorneys’ fees and costs from the other party hereto.

                        (f)   Applicable Law. This Agreement shall be construed in
accordance with the internal law of the State of Louisiana without giving effect to principles of conflicts of law. Any judicial action relating to this Agreement shall be brought only in the state or federal courts located in the State of Louisiana and the parties
hereby, consent to the exclusive jurisdiction and venue of such courts.

	
[The remainder of this page has been intentionally left blank.]

	
[Signature page to follow.]

23

            IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth above.

	
RIVERBEND:

	
                        

	
RIVERBEND TELECOM, INC.,

 a Nevada corporation

	
                        

	
                        

	
By:       /s/ LEON NOWALSKY                    

	
Leon Nowalsky, President

	
                        

	
RIVERBENDSPIN:

	
                        

	
RIVERBEND HOLDINGS, INC.,

 a Colorado corporation

	
                        

	
                        

	
By:       /s/ LEON NOWALSKY                    

	
Leon Nowalsky, President

	
                        

	
NOWALSKY:

	
                        

	
                        

	
/s/ LEON
NOWALSKY                                

	
Leon Nowalsky

	
                        

	
UNITED MEMBERS:

	
                        

	
                        

	
/s/ JEFFREY C. SWANK                              

	
Jeffrey C. Swank

	
                        

	
                        

	
/s/ PAUL J.
SHOVLAIN                                

	
Paul J. Shovlain

24<PAGE>
EXHIBIT 4.1

                          SECURITIES PURCHASE AGREEMENT

         THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of July 12, 2004, by and between ISLAND PACIFIC, INC., a
Delaware corporation (the "Company"), and Laurus Master Fund, Ltd., a Cayman
Islands company (the "Purchaser").

                                    RECITALS

         WHEREAS, the Company has authorized the sale to the Purchaser of a
Convertible Term Note in the aggregate principal amount of Seven Million Dollars
($7,000,000) (the "Note"), which Note is convertible into shares of the
Company's common stock, $0.0001 par value per share (the "Common Stock") at an
initial fixed conversion price of $0.56 per share of Common Stock ("Fixed
Conversion Price");

         WHEREAS, the Company wishes to issue a warrant to the Purchaser to
purchase up to 3,750,000 shares of the Company's Common Stock (subject to
adjustment as set forth therein) in connection with Purchaser's purchase of the
Note;

         WHEREAS, Purchaser desires to purchase the Note and the Warrant (as
defined in Section 2) on the terms and conditions set forth herein; and

         WHEREAS, the Company desires to issue and sell the Note and Warrant to
Purchaser on the terms and conditions set forth herein.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises, representations, warranties and covenants hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1. AGREEMENT TO SELL AND PURCHASE. Pursuant to the terms and conditions
set forth in this Agreement, on the Closing Date (as defined in Section 3), the
Company agrees to sell to the Purchaser, and the Purchaser hereby agrees to
purchase from the Company, a Note in the aggregate principal amount of
$7,000,000 convertible in accordance with the terms thereof into shares of the
Company's Common Stock in accordance with the terms of the Note and this
Agreement. The Note purchased on the Closing Date shall be known as the
"Offering." A form of the Note is annexed hereto as Exhibit A. The Note will
mature on the Maturity Date (as defined in the Note). Collectively, the Note and
Warrant and Common Stock issuable in payment of the Note, upon conversion of the
Note and upon exercise of the Warrant are referred to as the "Securities."

         2. FEES AND WARRANT. On the Closing Date:

             (a) The Company will issue and deliver to the Purchaser a Warrant
to purchase up to 3,750,000 shares of Common Stock in connection with the
Offering (the "Warrant") pursuant to Section 1 hereof. The Warrant must be
delivered on the Closing Date. A form of Warrant is annexed hereto as Exhibit B.
All the representations, covenants, warranties, undertakings, and
indemnification, and other rights made or granted to or for the benefit of the
Purchaser by the Company are hereby also made and granted in respect of the

                                       1
<PAGE>

Warrant and shares of the Company's Common Stock issuable upon exercise of the
Warrant (the "Warrant Shares"); provided however, that all such representations
and warranties are made as of the Closing Date and the Company makes no
undertaking to advise the Purchaser of any changes to the representations and
warranties after the Closing Date.

             (b) Subject to the terms of Section 2(d) below, the Company shall
pay to Laurus Capital Management, LLC, the manager of the Purchaser, a closing
payment in an amount equal to five and one-half percent (5.50%) of the aggregate
principal amount of the Note. The foregoing fee is referred to herein as the
"Closing Payment."

             (c) The Company shall reimburse the Purchaser for its reasonable
expenses (including legal fees and expenses) incurred in connection with the
preparation and negotiation of this Agreement and the Related Agreements (as
hereinafter defined), and expenses incurred in connection with the Purchaser's
due diligence review of the Company and its Subsidiaries (as defined in Section
6.8) and all related matters. Amounts required to be paid under this Section
2(c) will be paid on the Closing Date and shall be $39,500 for such expenses
referred to in this Section 2(c).

             (d) The Closing Payment and the expenses referred to in the
preceding clause (c) (net of deposits previously paid by the Company) shall be
paid at closing out of funds held pursuant to a Funds Escrow Agreement of even
date herewith among the Company, Purchaser, and an Escrow Agent (the "Funds
Escrow Agreement") and a disbursement letter (the "Disbursement Letter").

         3. CLOSING, DELIVERY AND PAYMENT.

             3.1. CLOSING. Subject to the terms and conditions herein, the
closing of the transactions contemplated hereby (the "Closing"), shall take
place on the date hereof, at such time or place as the Company and Purchaser may
mutually agree (such date is hereinafter referred to as the "Closing Date").

             3.2. DELIVERY. Pursuant to the Funds Escrow Agreement in the form
attached hereto as Exhibit D, at the Closing on the Closing Date, the Company
will deliver to the Purchaser, among other things, a Note in the form attached
as Exhibit A representing the aggregate principal amount of $7,000,000 and a
Warrant in the form attached as Exhibit B in the Purchaser's name representing
3,750,000 Warrant Shares and the Purchaser will deliver to the Company, among
other things, the amounts set forth in the Disbursement Letter by certified
funds or wire transfer.

         4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to the Purchaser as follows (which representations and
warranties are supplemented by the Company's filings under the Securities
Exchange Act of 1934 (collectively, the "Exchange Act Filings"), copies of which
have been provided to the Purchaser):

             4.1. ORGANIZATION, GOOD STANDING AND QUALIFICATION. Each of the
Company and each of its Subsidiaries is a corporation, partnership or limited
liability company, as the case may be, duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization. Each of the
Company and each of its Subsidiaries has the corporate power and authority to
own and operate its properties and assets, to execute and deliver (i) this
Agreement, (ii) the Note and the Warrant to be issued in connection with this

                                       2
<PAGE>

Agreement, (iii) the Master Security Agreement dated as of the date hereof
between the Company, certain Subsidiaries of the Company and the Purchaser (as
amended, modified or supplemented from time to time, the "Master Security
Agreement"), (iv) the Registration Rights Agreement relating to the Securities
dated as of the date hereof between the Company and the Purchaser, (v) the
Subsidiary Guaranty dated as of the date hereof made by certain Subsidiaries of
the Company (as amended, modified or supplemented from time to time, the
"Subsidiary Guaranty"), (vi) the Stock Pledge Agreement dated as of the date
hereof among the Company, certain Subsidiaries of the Company and the Purchaser
(as amended, modified or supplemented from time to time, the "Stock Pledge
Agreement"), (vii) the Escrow Agreement dated as of the date hereof among the
Company, the Purchaser and the escrow agent referred to therein and (viii) all
other agreements related to this Agreement and the Note and referred to herein
(the preceding clauses (ii) through (viii), collectively, the "Related
Agreements"), to issue and sell the Note and the shares of Common Stock issuable
upon conversion of the Note (the "Note Shares"), to issue and sell the Warrant
and the Warrant Shares, and to carry out the provisions of this Agreement and
the Related Agreements and to carry on its business as presently conducted. Each
of the Company and each of its Subsidiaries is duly qualified and is authorized
to do business and is in good standing as a foreign corporation, partnership or
limited liability company, as the case may be, in all jurisdictions in which the
nature of its activities and of its properties (both owned and leased) makes
such qualification necessary, except for those jurisdictions in which failure to
do so has not, or could not reasonably be expected to have, individually or in
the aggregate, a material adverse effect on the business, assets, liabilities,
condition (financial or otherwise), properties, operations or prospects of the
Company and it Subsidiaries, taken individually and as a whole (a "Material
Adverse Effect").

             4.2. SUBSIDIARIES. Each direct and indirect Subsidiary of the
Company, the direct owner of such Subsidiary and its percentage ownership
thereof, is set forth on Schedule 4.2. For the purpose of this Agreement, a
"Subsidiary" of any person or entity means (i) a corporation or other entity
whose shares of stock or other ownership interests having ordinary voting power
(other than stock or other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the directors of such
corporation, or other persons or entities performing similar functions for such
person or entity, are owned, directly or indirectly, by such person or entity or
(ii) a corporation or other entity in which such person or entity owns, directly
or indirectly, more than 50% of the equity interests at such time.

             4.3. CAPITALIZATION; VOTING RIGHTS.

             (a) The authorized capital stock of the Company, as of the date
hereof consists of 100,000,000 shares of common stock par value $0.0001 of which
53,974,532 are issued and outstanding and 5,000,000 shares of preferred stock
par value $0.0001, of which 141,000 are designated as Series A Preferred Stock,
all of which are issued and outstanding and 2,517,233 shares are designated as
Series B Preferred Stock, all of which are issued and outstanding. The
authorized capital stock of each Subsidiary of the Company is set forth on
Schedule 4.3.

             (b) Except as disclosed on Schedule 4.3, other than: (i) the shares
reserved for issuance under the Company's stock option plans; and (ii) shares
which may be granted pursuant to this Agreement and the Related Agreements,
there are no outstanding options, warrants, rights (including conversion or
preemptive rights and rights of first refusal), proxy or stockholder agreements,
or arrangements or agreements of any kind for the purchase or acquisition from
the Company of any of its securities. Except as disclosed on Schedule 4.3,

                                       3
<PAGE>

neither the offer, issuance or sale of any of the Note or the Warrant, or the
issuance of any of the Note Shares or Warrant Shares, nor the consummation of
any transaction contemplated hereby will result in a change in the price or
number of any securities of the Company outstanding, under anti-dilution or
other similar provisions contained in or affecting any such securities.

             (c) All issued and outstanding shares of the Company's Common
Stock: (i) have been duly authorized and validly issued and are fully paid and
nonassessable; and (ii) were issued by the Company in compliance with all
applicable state and federal laws concerning the issuance of securities.

             (d) The rights, preferences, privileges and restrictions of the
shares of the Common Stock are as stated in the Company's Certificate of
Incorporation (the "Charter") and pursuant to applicable law. The Note Shares
and Warrant Shares will be duly and validly reserved for issuance as soon as
practicable after the Company files an amendment to its Charter increasing the
number of shares of Common Stock the Company is authorized to issue (the
"Charter Amendment") but in no event later than August 23, 2004 (the "Charter
Amendment Date"). When issued in compliance with the provisions of this
Agreement and the Company's Charter, the Securities will be validly issued,
fully paid and nonassessable, and will be free of any liens or encumbrances;
provided, however, that the Securities may be subject to restrictions on
transfer under state and/or federal securities laws as set forth herein or as
otherwise required by such laws at the time a transfer is proposed.

             4.4. AUTHORIZATION; BINDING OBLIGATIONS. All corporate, partnership
or limited liability company, as the case may be, action on the part of the
Company and each of its Subsidiaries (including the respective officers and
directors) necessary for the authorization of this Agreement and the Related
Agreements, the performance of all obligations of the Company and its
Subsidiaries hereunder and under the other Related Agreements at the Closing
and, the authorization, sale, issuance and delivery of the Note and Warrant has
been taken or will be taken prior to the Closing. This Agreement and the Related
Agreements, when executed and delivered and to the extent it is a party thereto,
will be valid and binding obligations of each of the Company and each of its
Subsidiaries, enforceable against each such person in accordance with their
terms, except:

             (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application affecting
enforcement of creditors' rights; and

             (b) general principles of equity that restrict the availability of
equitable or legal remedies.

The sale of the Note and the subsequent conversion of the Note into Note Shares
are not and will not be subject to any preemptive rights or rights of first
refusal that have not been properly waived or complied with. The issuance of the
Warrant and the subsequent exercise of the Warrant for Warrant Shares are not
and will not be subject to any preemptive rights or rights of first refusal that
have not been properly waived or complied with.

             4.5. LIABILITIES. Neither the Company nor any of its Subsidiaries
has any material contingent liabilities, except current liabilities incurred in
the ordinary course of business and liabilities disclosed in any Exchange Act
Filings.

                                       4
<PAGE>

             4.6. AGREEMENTS; ACTION. Except as set forth on Schedule 4.6 or as
disclosed in any Exchange Act Filings:

             (a) there are no agreements, understandings, instruments,
contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company or any of its Subsidiaries is a party or by which it is bound which
may involve: (i) obligations (contingent or otherwise) of, or payments to, the
Company in excess of $50,000 (other than obligations of, or payments to, the
Company arising from purchase or sale agreements entered into in the ordinary
course of business); or (ii) the transfer or license of any patent, copyright,
trade secret or other proprietary right to or from the Company (other than
licenses arising from the purchase of "off the shelf" or other standard
products); or (iii) provisions restricting the development, manufacture or
distribution of the Company's products or services; or (iv) indemnification by
the Company with respect to infringements of proprietary rights.

             (b) Since March 31, 2004, neither the Company nor any of its
Subsidiaries has: (i) declared or paid any dividends, or authorized or made any
distribution upon or with respect to any class or series of its capital stock;
(ii) incurred any indebtedness for money borrowed or any other liabilities
(other than ordinary course obligations) individually in excess of $50,000 or,
in the case of indebtedness and/or liabilities individually less than $50,000,
in excess of $100,000 in the aggregate; (iii) made any loans or advances to any
person not in excess, individually or in the aggregate, of $100,000, other than
ordinary course advances for travel expenses; or (iv) sold, exchanged or
otherwise disposed of any of its assets or rights, other than the sale of its
inventory in the ordinary course of business.

             (c) For the purposes of subsections (a) and (b) above, all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person or entity (including persons
or entities the Company has reason to believe are affiliated therewith) shall be
aggregated for the purpose of meeting the individual minimum dollar amounts of
such subsections.

             4.7. OBLIGATIONS TO RELATED PARTIES. Except as set forth on
Schedule 4.7, there are no obligations of the Company or any of its Subsidiaries
to officers, directors, stockholders or employees of the Company or any of its
Subsidiaries other than:

             (a) for payment of salary for services rendered and for bonus
payments;

             (b) reimbursement for reasonable expenses incurred on behalf of the
Company and its Subsidiaries;

             (c) for other standard employee benefits made generally available
to all employees (including stock option agreements outstanding under any stock
option plan approved by the Board of Directors of the Company); and

             (d) obligations listed in the Company's financial statements or
disclosed in any of its Exchange Act Filings.

Except as described above or set forth on Schedule 4.7, none of the officers,
directors or, to the best of the Company's knowledge, key employees or
stockholders of the Company or any members of their immediate families, are
indebted to the Company, individually or in the aggregate, in excess of $50,000
or have any direct or indirect ownership interest in any firm or corporation

                                       5
<PAGE>

with which the Company is affiliated or with which the Company has a business
relationship, or any firm or corporation which competes with the Company, other
than passive investments in publicly traded companies (representing less than
one percent (1%) of such company) which may compete with the Company. Except as
described above, no officer, director or stockholder, or any member of their
immediate families, is, directly or indirectly, interested in any material
contract with the Company and no agreements, understandings or proposed
transactions are contemplated between the Company and any such person. Except as
set forth on Schedule 4.7, the Company is not a guarantor or indemnitor of any
indebtedness of any other person, firm or corporation.

             4.8. CHANGES. Since March 31, 2004, except as disclosed in any
Exchange Act Filing or in any Schedule to this Agreement or to any of the
Related Agreements, there has not been:

             (a) any change in the business, assets, liabilities, condition
(financial or otherwise), properties, operations or prospects of the Company or
any of its Subsidiaries, which individually or in the aggregate has had, or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect;

             (b) any resignation or termination of any officer, key employee or
group of employees of the Company or any of its Subsidiaries;

             (c) any material change, except in the ordinary course of business,
in the contingent obligations of the Company or any of its Subsidiaries by way
of guaranty, endorsement, indemnity, warranty or otherwise;

             (d) any damage, destruction or loss, whether or not covered by
insurance, has had, or could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect;

             (e) any waiver by the Company or any of its Subsidiaries of a
valuable right or of a material debt owed to it;

             (f) any direct or indirect loans made by the Company or any of its
Subsidiaries to any stockholder, employee, officer or director of the Company or
any of its Subsidiaries, other than advances made in the ordinary course of
business;

             (g) any material change in any compensation arrangement or
agreement with any employee, officer, director or stockholder of the Company or
any of its Subsidiaries;

             (h) any declaration or payment of any dividend or other
distribution of the assets of the Company or any of its Subsidiaries;

             (i) any labor organization activity related to the Company or any
of its Subsidiaries;

             (j) any debt, obligation or liability incurred, assumed or
guaranteed by the Company or any of its Subsidiaries, except those for
immaterial amounts and for current liabilities incurred in the ordinary course
of business;

                                       6
<PAGE>

             (k) any sale, assignment or transfer of any patents, trademarks,
copyrights, trade secrets or other intangible assets owned by the Company or any
of its Subsidiaries;

             (l) any change in any material agreement to which the Company or
any of its Subsidiaries is a party or by which either the Company or any of its
Subsidiaries is bound which either individually or in the aggregate has had, or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect;

             (m) any other event or condition of any character that, either
individually or in the aggregate, has had, or could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect; or

             (n) any arrangement or commitment by the Company or any of its
Subsidiaries to do any of the acts described in subsection (a) through (m)
above.

             4.9. TITLE TO PROPERTIES AND ASSETS; LIENS, ETC. Except as set
forth on Schedule 4.9, each of the Company and each of its Subsidiaries has good
and marketable title to its properties and assets, and good title to its
leasehold estates, in each case subject to no mortgage, pledge, lien, lease,
encumbrance or charge, other than:

             (a) those resulting from taxes which have not yet become
delinquent;

             (b) minor liens and encumbrances which do not materially detract
from the value of the property subject thereto or materially impair the
operations of the Company or any of its Subsidiaries; and

             (c) those that have otherwise arisen in the ordinary course of
business.

All facilities, machinery, equipment, fixtures, vehicles and other properties
owned, leased or used by the Company and its Subsidiaries are in good operating
condition and repair and are reasonably fit and usable for the purposes for
which they are being used. Except as set forth on Schedule 4.9, the Company and
its Subsidiaries are in compliance with all material terms of each lease to
which it is a party or is otherwise bound except where such failure to be in
compliance, either individually or in the aggregate has had, or could reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect.

                                       7
<PAGE>

             4.10. INTELLECTUAL PROPERTY.

             (a) Each of the Company and each of its Subsidiaries owns or
possesses sufficient legal rights to all patents, trademarks, service marks,
trade names, copyrights, trade secrets, licenses, information and other
proprietary rights and processes necessary for its business as now conducted and
to the Company's knowledge, as presently proposed to be conducted (the
"Intellectual Property"), without any known infringement of the rights of
others. There are no outstanding options, licenses or agreements of any kind
relating to the foregoing proprietary rights, nor is the Company or any of its
Subsidiaries bound by or a party to any options, licenses or agreements of any
kind with respect to the patents, trademarks, service marks, trade names,
copyrights, trade secrets, licenses, information and other proprietary rights
and processes of any other person or entity other than such licenses or
agreements arising from the purchase of "off the shelf" or standard products.

             (b) Neither the Company nor any of its Subsidiaries has received
any communications alleging that the Company or any of its Subsidiaries has
violated any of the patents, trademarks, service marks, trade names, copyrights
or trade secrets or other proprietary rights of any other person or entity, nor
is the Company or any of its Subsidiaries aware of any basis therefor.

             (c) The Company does not believe it is or will be necessary to
utilize any inventions, trade secrets or proprietary information of any of its
employees made prior to their employment by the Company or any of its
Subsidiaries, except for inventions, trade secrets or proprietary information
that have been rightfully assigned to the Company or any of its Subsidiaries.

             4.11. COMPLIANCE WITH OTHER INSTRUMENTS. Neither the Company nor
any of its Subsidiaries is in violation or default of (x) any material term of
its Charter or Bylaws, or (y) of any provision of any indebtedness, mortgage,
indenture, contract, agreement or instrument to which it is party or by which it
is bound or of any judgment, decree, order or writ, which violation or default,
in the case of this clause (y), has had, or could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect. The
execution, delivery and performance of and compliance with this Agreement and
the Related Agreements to which it is a party, and the issuance and sale of the
Note by the Company and the other Securities by the Company each pursuant hereto
and thereto, will not, with or without the passage of time or giving of notice,
result in any such material violation, or be in conflict with or constitute a
default under any such term or provision, or result in the creation of any
mortgage, pledge, lien, encumbrance or charge upon any of the properties or
assets of the Company or any of its Subsidiaries or the suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or
approval applicable to the Company, its business or operations or any of its
assets or properties.

             4.12. LITIGATION. Except as set forth on Schedule 4.12 hereto,
there is no action, suit, proceeding or investigation pending or, to the
Company's knowledge, currently threatened against the Company or any of its
Subsidiaries that prevents the Company or any of its Subsidiaries from entering
into this Agreement or the other Related Agreements, or from consummating the
transactions contemplated hereby or thereby, or which has had, or could
reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect or any change in the current equity ownership of the
Company or any of its Subsidiaries, nor is the Company aware that there is any
basis to assert any of the foregoing. Neither the Company nor any of its

                                       8
<PAGE>

Subsidiaries is a party or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company or any of its Subsidiaries currently pending or which the Company or any
of its Subsidiaries intends to initiate.

             4.13. TAX RETURNS AND PAYMENTS. Each of the Company and each of its
Subsidiaries has timely filed all tax returns (federal, state and local)
required to be filed by it. All taxes shown to be due and payable on such
returns, any assessments imposed, and all other taxes due and payable by the
Company or any of its Subsidiaries on or before the Closing, have been paid or
will be paid prior to the time they become delinquent. Except as set forth on
Schedule 4.13, neither the Company nor any of its Subsidiaries has been advised:

             (a) that any of its returns, federal, state or other, have been or
are being audited as of the date hereof; or

             (b) of any deficiency in assessment or proposed judgment to its
federal, state or other taxes.

The Company has no knowledge of any liability of any tax to be imposed upon its
properties or assets as of the date of this Agreement that is not adequately
provided for.

             4.14. EMPLOYEES. Except as set forth on Schedule 4.14, neither the
Company nor any of its Subsidiaries has any collective bargaining agreements
with any of its employees. There is no labor union organizing activity pending
or, to the Company's knowledge, threatened with respect to the Company or any of
its Subsidiaries. Except as disclosed in the Exchange Act Filings or on Schedule
4.14, neither the Company nor any of its Subsidiaries is a party to or bound by
any currently effective employment contract, deferred compensation arrangement,
bonus plan, incentive plan, profit sharing plan, retirement agreement or other
employee compensation plan or agreement. To the Company's knowledge, no employee
of the Company or any of its Subsidiaries, nor any consultant with whom the
Company or any of its Subsidiaries has contracted, is in violation of any term
of any employment contract, proprietary information agreement or any other
agreement relating to the right of any such individual to be employed by, or to
contract with, the Company or any of its Subsidiaries because of the nature of
the business to be conducted by the Company or any of its Subsidiaries; and to
the Company's knowledge the continued employment by the Company or any of its
Subsidiaries of its present employees, and the performance of the Company's and
its Subsidiaries' contracts with its independent contractors, will not result in
any such violation. Neither the Company nor any of its Subsidiaries is aware
that any of its employees is obligated under any contract (including licenses,
covenants or commitments of any nature) or other agreement, or subject to any
judgment, decree or order of any court or administrative agency, that would
interfere with their duties to the Company or any of its Subsidiaries. Neither
the Company nor any of its Subsidiaries has received any notice alleging that
any such violation has occurred. Except for employees who have a current
effective employment agreement with the Company or any of its Subsidiaries, no
employee of the Company or any of its Subsidiaries has been granted the right to
continued employment by the Company or any of its Subsidiaries or to any
material compensation following termination of employment with the Company or
any of its Subsidiaries. Except as set forth on Schedule 4.14, the Company is
not aware that any officer, key employee or group of employees intends to
terminate his, her or their employment with the Company or any of its
Subsidiaries, nor does the Company or any of its Subsidiaries have a present
intention to terminate the employment of any officer, key employee or group of
employees.

                                       9
<PAGE>

             4.15. REGISTRATION RIGHTS AND VOTING RIGHTS. Except as set forth on
Schedule 4.15 and except as disclosed in Exchange Act Filings, neither the
Company nor any of its Subsidiaries is presently under any obligation, and
neither the Company nor any of its Subsidiaries has granted any rights, to
register any of the Company's or its Subsidiaries' presently outstanding
securities or any of its securities that may hereafter be issued. Except as set
forth on Schedule 4.15 and except as disclosed in Exchange Act Filings, to the
Company's knowledge, no stockholder of the Company or any of its Subsidiaries
has entered into any agreement with respect to the voting of equity securities
of the Company or any of its Subsidiaries.

             4.16. COMPLIANCE WITH LAWS; PERMITS. Neither the Company nor any of
its Subsidiaries is in violation of any applicable statute, rule, regulation,
order or restriction of any domestic or foreign government or any
instrumentality or agency thereof in respect of the conduct of its business or
the ownership of its properties which has had, or could reasonably be expected
to have, either individually or in the aggregate, a Material Adverse Effect. No
governmental orders, permissions, consents, approvals or authorizations are
required to be obtained and no registrations or declarations are required to be
filed in connection with the execution and delivery of this Agreement or any
other Related Agreement and the issuance of any of the Securities, except such
as has been duly and validly obtained or filed, or with respect to any filings
that must be made after the Closing, as will be filed in a timely manner. Each
of the Company and its Subsidiaries has all material franchises, permits,
licenses and any similar authority necessary for the conduct of its business as
now being conducted by it, the lack of which could, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

             4.17. ENVIRONMENTAL AND SAFETY LAWS. Neither the Company nor any of
its Subsidiaries is in violation of any applicable statute, law or regulation
relating to the environment or occupational health and safety, and to its
knowledge, no material expenditures are or will be required in order to comply
with any such existing statute, law or regulation except for such violations
that individually, or in the aggregate, have had, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.
Except as set forth on Schedule 4.17, no Hazardous Materials (as defined below)
are used or have been used, stored, or disposed of by the Company or any of its
Subsidiaries or, to the Company's knowledge, by any other person or entity on
any property owned, leased or used by the Company or any of its Subsidiaries.
For the purposes of the preceding sentence, "Hazardous Materials" shall mean:

             (a) materials which are listed or otherwise defined as "hazardous"
or "toxic" under any applicable local, state, federal and/or foreign laws and
regulations that govern the existence and/or remedy of contamination on
property, the protection of the environment from contamination, the control of
hazardous wastes, or other activities involving hazardous substances, including
building materials; or

             (b) any petroleum products or nuclear materials.

             4.18. VALID OFFERING. Assuming the accuracy of the representations
and warranties of the Purchaser contained in this Agreement, the offer, sale and
issuance of the Securities will be exempt from the registration requirements of
the Securities Act of 1933, as amended (the "Securities Act"), and will have
been registered or qualified (or are exempt from registration and qualification)
under the registration, permit or qualification requirements of all applicable
state securities laws.

                                       10
<PAGE>

             4.19. FULL DISCLOSURE. Each of the Company and each of its
Subsidiaries has provided the Purchaser with its SEC Reports (below) which
contain all information requested by the Purchaser in connection with its
decision to purchase the Note and Warrant, including all information the Company
and its Subsidiaries believe is reasonably necessary to make such investment
decision. Neither this Agreement, the Related Agreements, the exhibits and
schedules hereto and thereto nor any other document delivered by the Company or
any of its Subsidiaries to Purchaser or its attorneys or agents in connection
herewith or therewith or with the transactions contemplated hereby or thereby,
as qualified by the statements of the Company in its SEC Reports, contain any
untrue statement of a material fact nor omit to state a material fact necessary
in order to make the statements contained herein or therein, in light of the
circumstances in which they are made, not misleading. Any financial projections
and other estimates provided to the Purchaser by the Company or any of its
Subsidiaries were based on the Company's and its Subsidiaries' experience in the
industry and on assumptions of fact and opinion as to future events which the
Company or any of its Subsidiaries, at the date of the issuance of such
projections or estimates, believed to be reasonable.

             4.20. INSURANCE. Each of the Company and each of its Subsidiaries
has general commercial, product liability, fire and casualty insurance policies
with coverages which the Company believes are customary for companies similarly
situated to the Company and its Subsidiaries in the same or similar business.

             4.21. SEC REPORTS. Except as set forth on Schedule 4.21, the
Company has filed all proxy statements, reports and other documents required to
be filed by it under the Securities Exchange Act 1934, as amended (the "Exchange
Act"). The Company has furnished the Purchaser with copies of: (i) its Annual
Reports on Form 10-K for its fiscal years ended March 31, 2004; (ii) its
quarterly reports on Form 10-Q for the fiscal quarters ended June 30, 2003,
September 30, 2003 and December 31, 2003 and (iii) its reports on Form 8-K which
have been filed during the fiscal year 2005 to date (collectively, the "SEC
Reports"). Except as set forth on Schedule 4.21, each SEC Report was, at the
time of its filing, in substantial compliance with the requirements of its
respective form and none of the SEC Reports, nor the financial statements (and
the notes thereto) included in the SEC Reports, as of their respective filing
dates, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

             4.22. LISTING. The Company's Common Stock is listed for trading on
the American Stock Exchange ("AMEX") and satisfies all requirements for the
continuation of such listing. The Company has not received any notice that its
Common Stock will be delisted from AMEX or that its Common Stock does not meet
all requirements for such continued listing.

             4.23. NO INTEGRATED OFFERING. Neither the Company, nor any of its
Subsidiaries or affiliates, nor to the Company's knowledge any person acting on
its or their behalf, has directly or indirectly made any offers or sales of any
security or solicited any offers to buy any security under circumstances that
would cause the offering of the Securities pursuant to this Agreement or any of
the Related Agreements to be integrated with prior offerings by the Company for
purposes of the Securities Act which would prevent the Company from selling the
Securities pursuant to Rule 506 under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or Subsidiaries take any action or steps that would cause the
offering of the Securities to be integrated with other offerings.

                                       11
<PAGE>

             4.24. STOP TRANSFER. The Securities are restricted securities as of
the date of this Agreement. Neither the Company nor any of its Subsidiaries will
issue any stop transfer order or other order impeding the sale and delivery of
any of the Securities at such time as the Securities are registered for public
sale or an exemption from registration is available, except as required by state
and federal securities laws.

             4.25. DILUTION. The Company specifically acknowledges that its
obligation to issue the shares of Common Stock upon conversion of the Note and
exercise of the Warrant is binding upon the Company and enforceable regardless
of the dilution such issuance may have on the ownership interests of other
shareholders of the Company.

             4.26. PATRIOT ACT. The Company certifies that, to the best of
Company's knowledge, neither the Company nor any of its Subsidiaries has been
designated, and is not owned or controlled, by a "suspected terrorist" as
defined in Executive Order 13224. The Company hereby acknowledges that the
Purchaser seeks to comply with all applicable laws concerning money laundering
and related activities. In furtherance of those efforts, the Company hereby
represents, warrants and agrees that: (i) none of the cash or property that the
Company or any of its Subsidiaries will pay or will contribute to the Purchaser
has been or shall be derived from, or related to, any activity that is deemed
criminal under United States law; and (ii) no contribution or payment by the
Company or any of its Subsidiaries to the Purchaser, to the extent that they are
within the Company's and/or its Subsidiaries' control shall cause the Purchaser
to be in violation of the United States Bank Secrecy Act, the United States
International Money Laundering Control Act of 1986 or the United States
International Money Laundering Abatement and Anti-Terrorist Financing Act of
2001. The Company shall promptly notify the Purchaser if any of these
representations ceases to be true and accurate regarding the Company or any of
its Subsidiaries. The Company agrees to provide the Purchaser any additional
information regarding the Company or any of its Subsidiaries that the Purchaser
reasonably deems necessary or convenient to ensure compliance with all
applicable laws concerning money laundering and similar activities. The Company
understands and agrees that if at any time it is discovered that any of the
foregoing representations are incorrect, or if otherwise required by applicable
law or regulation related to money laundering similar activities, the Purchaser
may undertake appropriate actions to ensure compliance with applicable law or
regulation, including but not limited to segregation and/or redemption of the
Purchaser's investment in the Company. The Company further understands that the
Purchaser may release confidential information about the Company and its
Subsidiaries and, if applicable, any underlying beneficial owners, to proper
authorities if and as required by applicable law .

         5. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
hereby represents and warrants to the Company as follows (such representations
and warranties do not lessen or obviate the representations and warranties of
the Company set forth in this Agreement):

             5.1. NO SHORTING. The Purchaser nor any of its affiliates and
investment partners has not, will not and will not cause nor permit any person
or entity, directly or indirectly, to engage in Short Sales (as defined below),
sales against the box or similar transactions with respect to the Company's
Common Stock as long as the Note is outstanding. For purposes of this Agreement,
a "Short Sale" by the Purchaser shall mean a sale of Common Stock by the
Purchaser that is marked as a short sale and that is made at a time when there
is no equivalent offsetting long position in Common Stock held by the Purchaser.
For purposes of determining whether there is an equivalent offsetting long
position in Common Stock held by the Purchaser, shares underlying the Note that
have not yet been issued upon conversion of the Note and shares underlying the
Warrant that have not yet been issued upon exercise of the Warrant shall not be
deemed to be held long by the Purchaser.

                                       12
<PAGE>

             5.2. REQUISITE POWER AND AUTHORITY. The Purchaser has all necessary
power and authority under all applicable provisions of law to execute and
deliver this Agreement and the Related Agreements and to carry out their
provisions. All corporate action on Purchaser's part required for the lawful
execution and delivery of this Agreement and the Related Agreements have been or
will be effectively taken prior to the Closing. Upon their execution and
delivery, this Agreement and the Related Agreements will be valid and binding
obligations of Purchaser, enforceable in accordance with their terms, except:

             (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application affecting
enforcement of creditors' rights; and

             (b) as limited by general principles of equity that restrict the
availability of equitable and legal remedies.

             5.3. INVESTMENT REPRESENTATIONS. Purchaser understands that the
Securities are being offered and sold pursuant to an exemption from registration
contained in the Securities Act based in part upon Purchaser's representations
contained in the Agreement, including, without limitation, that the Purchaser is
an "accredited investor" within the meaning of Regulation D under the Securities
Act of 1933, as amended (the "Securities Act"). The Purchaser confirms that it
has received or has had full access to all the information it considers
necessary or appropriate to make an informed investment decision with respect to
the Note and the Warrant to be purchased by it under this Agreement and the Note
Shares and the Warrant Shares acquired by it upon the conversion of the Note and
the exercise of the Warrant, respectively. The Purchaser further confirms that
it has had an opportunity to ask questions and receive answers from the Company
regarding the Company's and its Subsidiaries' business, management and financial
affairs and the terms and conditions of the Offering, the Note, the Warrant and
the Securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or
expense) necessary to verify any information furnished to the Purchaser or to
which the Purchaser had access.

             5.4. PURCHASER BEARS ECONOMIC RISK. The Purchaser has substantial
experience in evaluating and investing in private placement transactions of
securities in companies similar to the Company so that it is capable of
evaluating the merits and risks of its investment in the Company and has the
capacity to protect its own interests. The Purchaser must bear the economic risk
of this investment until the Securities are sold pursuant to: (i) an effective
registration statement under the Securities Act; or (ii) an exemption from
registration is available with respect to such sale.

             5.5. ACQUISITION FOR OWN ACCOUNT. The Purchaser is acquiring the
Note and Warrant and the Note Shares and the Warrant Shares for the Purchaser's
own account for investment only, and not as a nominee or agent and not with a
view towards or for resale in connection with their distribution.

                                       13
<PAGE>

             5.6. PURCHASER CAN PROTECT ITS INTEREST. The Purchaser represents
that by reason of its, or of its management's, business and financial
experience, the Purchaser has the capacity to evaluate the merits and risks of
its investment in the Note, the Warrant and the Securities and to protect its
own interests in connection with the transactions contemplated in this Agreement
and the Related Agreements. Further, Purchaser is aware of no publication of any
advertisement in connection with the transactions contemplated in the Agreement
or the Related Agreements.

             5.7. ACCREDITED INVESTOR. Purchaser represents that it is an
accredited investor within the meaning of Regulation D under the Securities Act.

             5.8. LEGENDS.

(a) The Note shall bear substantially the following legend:

         "THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE
         HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
         OR ANY APPLICABLE, STATE SECURITIES LAWS. THIS NOTE AND THE COMMON
         STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED
         FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SHARES UNDER SAID ACT
         AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
         REASONABLY SATISFACTORY TO ISLAND PACIFIC, INC. THAT SUCH REGISTRATION
         IS NOT REQUIRED."

             (b) The Note Shares and the Warrant Shares, if not issued by DWAC
system (as hereinafter defined), shall bear a legend which shall be in
substantially the following form until such shares are covered by an effective
registration statement filed with the SEC:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
         SECURITIES LAWS. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE,
         PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH SECURITIES ACT AND APPLICABLE STATE LAWS OR AN
         OPINION OF COUNSEL REASONABLY SATISFACTORY TO ISLAND PACIFIC, INC. THAT
         SUCH REGISTRATION IS NOT REQUIRED."

             (c) The Warrant shall bear substantially the following legend:

         "THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS
         WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE
         COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
         OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
         EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE UNDERLYING
         SHARES OF COMMON STOCK UNDER SAID ACT AND APPLICABLE STATE SECURITIES
         LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ISLAND
         PACIFIC, INC. THAT SUCH REGISTRATION IS NOT REQUIRED."

                                       14
<PAGE>

         6. COVENANTS OF THE COMPANY. The Company covenants and agrees with the
Purchaser as follows:

             6.1. STOP-ORDERS. The Company will advise the Purchaser, promptly
after it receives notice of issuance by the Securities and Exchange Commission
(the "SEC"), any state securities commission or any other regulatory authority
of any stop order or of any order preventing or suspending any offering of any
securities of the Company, or of the suspension of the qualification of the
Common Stock of the Company for offering or sale in any jurisdiction, or the
initiation of any proceeding for any such purpose.

             6.2. LISTING. The Company shall as promptly as practicable after
the filing of the Charter Amendment, but in no event later August 23, 2004,
secure the listing of the shares of Common Stock issuable upon conversion of the
Note and upon the exercise of the Warrant on the AMEX Market (the "Principal
Market") upon which shares of Common Stock are listed (subject to official
notice of issuance) and shall maintain such listing so long as any other shares
of Common Stock shall be so listed. The Company will maintain the listing of its
Common Stock on the Principal Market, and will comply in all material respects
with the Company's reporting, filing and other obligations under the bylaws or
rules of the National Association of Securities Dealers ("NASD") and such
exchanges, as applicable.

             6.3. MARKET REGULATIONS. The Company shall notify the SEC, NASD and
applicable state authorities, in accordance with their requirements, of the
transactions contemplated by this Agreement, and shall take all other necessary
action and proceedings as may be required and permitted by applicable law, rule
and regulation, for the legal and valid issuance of the Securities to the
Purchaser and promptly provide copies thereof to the Purchaser.

             6.4. REPORTING REQUIREMENTS. The Company will timely file with the
SEC all reports required to be filed pursuant to the Exchange Act and refrain
from terminating its status as an issuer required by the Exchange Act to file
reports thereunder even if the Exchange Act or the rules or regulations
thereunder would permit such termination.

             6.5. USE OF FUNDS. The Company agrees that it will use the proceeds
of the sale of the Note and the Warrant for general working capital purposes and
to repay that certain note between the Company and Silicon Valley National Bank
dated June 2, 2004 and that certain convertible debenture dated March 15, 2004
between the Company and Omicron Master Trust.

             6.6. ACCESS TO FACILITIES. Each of the Company and each of its
Subsidiaries will permit any representatives designated by the Purchaser (or any
successor of the Purchaser), upon reasonable notice and during normal business
hours, at such person's expense and accompanied by a representative of the
Company, to:

             (a) visit and inspect any of the properties of the Company or any
of its Subsidiaries;

                                       15
<PAGE>

             (b) examine the corporate and financial records of the Company or
any of its Subsidiaries (unless such examination is not permitted by federal,
state or local law or by contract) and make copies thereof or extracts
therefrom; and

             (c) discuss the affairs, finances and accounts of the Company or
any of its Subsidiaries with the directors, officers and independent accountants
of the Company or any of its Subsidiaries.

Notwithstanding the foregoing, neither the Company nor any of its Subsidiaries
will provide any material, non-public information to the Purchaser unless the
Purchaser signs a confidentiality agreement and otherwise complies with
Regulation FD, under the federal securities laws.

             6.7. TAXES. Each of the Company and each of its Subsidiaries will
promptly pay and discharge, or cause to be paid and discharged, when due and
payable, all lawful taxes, assessments and governmental charges or levies
imposed upon the income, profits, property or business of the Company and its
Subsidiaries; provided, however, that any such tax, assessment, charge or levy
need not be paid if the validity thereof shall currently be contested in good
faith by appropriate proceedings and if the Company and/or such Subsidiary shall
have set aside on its books adequate reserves with respect thereto, and
provided, further, that the Company and its Subsidiaries will pay all such
taxes, assessments, charges or levies forthwith upon the commencement of
proceedings to foreclose any lien which may have attached as security therefor.

             6.8. INSURANCE. Each of the Company and its Subsidiaries will keep
its assets which are of an insurable character insured by financially sound and
reputable insurers against loss or damage by fire, explosion and other risks
customarily insured against by companies in similar business similarly situated
as the Company and its Subsidiaries; and the Company and its Subsidiaries will
maintain, with financially sound and reputable insurers, insurance against other
hazards and risks and liability to persons and property to the extent and in the
manner which the Company reasonably believes is customary for companies in
similar business similarly situated as the Company and its Subsidiaries and to
the extent available on commercially reasonable terms. The Company, and each of
its Subsidiaries will jointly and severally bear the full risk of loss from any
loss of any nature whatsoever with respect to the assets pledged to the
Purchaser as security for its obligations hereunder and under the Related
Agreements. At the Company's and each of its Subsidiaries' joint and several
cost and expense in amounts and with carriers reasonably acceptable to
Purchaser, the Company and each of its Subsidiaries shall (i) keep all its
insurable properties and properties in which it has an interest insured against
the hazards of fire, flood, sprinkler leakage, those hazards covered by extended
coverage insurance and such other hazards, and for such amounts, as is customary
in the case of companies engaged in businesses similar to the Company's or the
respective Subsidiary's including business interruption insurance; (ii) maintain
a bond in such amounts as is customary in the case of companies engaged in
businesses similar to the Company's or the respective Subsidiary's insuring
against larceny, embezzlement or other criminal misappropriation of insured's
officers and employees who may either singly or jointly with others at any time
have access to the assets or funds of the Company or any of its Subsidiaries
either directly or through governmental authority to draw upon such funds or to
direct generally the disposition of such assets; (iii) maintain public and
product liability insurance against claims for personal injury, death or
property damage suffered by others; (iv) maintain all such worker's compensation
or similar insurance as may be required under the laws of any state or
jurisdiction in which the Company or the respective Subsidiary is engaged in
business; and (v) furnish Purchaser with (x) copies of all policies and evidence

                                       16
<PAGE>

of the maintenance of such policies at least thirty (30) days before any
expiration date, (y) policy endorsements to its Liability Insurance issued by
Chubb (policy # 3578-26-61 NBO), which covers General Liability and Employee
Benefits Errors or Omissions and its Commercial Excess and Umbrella Insurance
issued by Chubb (policy #7979-84-13) naming Purchaser as "co-insured" or
"additional insured" and appropriate loss payable endorsements in form and
substance satisfactory to Purchaser, naming Purchaser as loss payee, and (z)
evidence that as to Purchaser the insurance coverage shall not be impaired or
invalidated by any act or neglect of the Company or any Subsidiary and the
insurer will provide Purchaser with at least thirty (30) days notice prior to
cancellation. The Company and each Subsidiary shall instruct the insurance
carriers that in the event of any loss thereunder, the carriers shall make
payment for such loss to the Company and/or the Subsidiary and Purchaser
jointly. In the event that as of the date of receipt of each loss recovery upon
any such insurance, the Purchaser has not declared an event of default with
respect to this Agreement or any of the Related Agreements, then the Company
and/or such Subsidiary shall be permitted to direct the application of such loss
recovery proceeds toward investment in property, plant and equipment that would
comprise "Collateral" secured by Purchaser's security interest pursuant to its
security agreement, with any surplus funds, upon an Event of Default which has
occurred and is continuing beyond any applicable grace period, to be applied
toward payment of the obligations of the Company to Purchaser. In the event that
Purchaser has properly declared an event of default with respect to this
Agreement or any of the Related Agreements, then all loss recoveries received by
Purchaser upon any such insurance thereafter may be applied to the obligations
of the Company hereunder and under the Related Agreements, in such order as the
Purchaser may determine. Any surplus (following satisfaction of all Company
obligations to Purchaser) shall be paid by Purchaser to the Company or applied
as may be otherwise required by law. Any deficiency thereon shall be paid by the
Company or the Subsidiary, as applicable, to Purchaser, on demand.

             6.9. INTELLECTUAL PROPERTY. Each of the Company and each of its
Subsidiaries shall maintain in full force and effect its existence, rights and
franchises and all licenses and other rights to use Intellectual Property owned
or possessed by it and reasonably deemed to be necessary to the conduct of its
business.

             6.10. PROPERTIES. Each of the Company and each of its Subsidiaries
will keep its properties in good repair, working order and condition, reasonable
wear and tear excepted, and from time to time make all needful and proper
repairs, renewals, replacements, additions and improvements thereto; and each of
the Company and each of its Subsidiaries will at all times comply with each
provision of all leases to which it is a party or under which it occupies
property if the breach of such provision could, either individually or in the
aggregate, reasonably be expected tohave a Material Adverse Effect.

             6.11. CONFIDENTIALITY. The Company agrees that it will not
disclose, and will not include in any public announcement, the name of the
Purchaser, unless expressly agreed to by the Purchaser or unless and until such
disclosure is required by law or applicable regulation, and then only to the
extent of such requirement. Notwithstanding the foregoing, the Company may
disclose Purchaser's identity and the terms of this Agreement to its current and
prospective debt and equity financing sources.

                                       17
<PAGE>

             6.12. REQUIRED APPROVALS. For so long as twenty-five percent (25%)
of the principal amount of the Note is outstanding, the Company, without the
prior written consent of the Purchaser, shall not, and shall not permit any of
its Subsidiaries to:

             (a) directly or indirectly declare or pay any dividends, other than
dividends paid to the Company or any of its wholly-owned Subsidiaries or
dividends payable on the Company's Series A Preferred Stock and Series B
Preferred Stock (each as issued and outstanding on the date hereof) pursuant to
the Company's Charter or any related certificate of designation filed with the
Delaware Secretary of State;

             (b) liquidate, dissolve or effect a material reorganization (it
being understood that in no event shall the Company dissolve, liquidate or merge
with any other person or entity (unless the Company is the surviving entity);

             (c) become subject to (including, without limitation, by way of
amendment to or modification of) any agreement or instrument which by its terms
would (under any circumstances) restrict the Company's or any of its
Subsidiaries right to perform the provisions of this Agreement, any Related
Agreement or any of the agreements contemplated hereby or thereby;

             (d) materially alter or change the scope of the business of the
Company and its Subsidiaries taken as a whole;

             (e) (i) create, incur, assume or suffer to exist any indebtedness
(exclusive of trade debt and debt incurred to finance the purchase of equipment
(not in excess of ten percent (10%) per annum of the fair market value of the
Company's assets) whether secured or unsecured other than (x) the Company's
indebtedness to the Purchaser, (y) indebtedness set forth on Schedule 6.12(e)
attached hereto and made a part hereof and any refinancings or replacements
thereof on terms no less favorable to the Purchaser than the indebtedness being
refinanced or replaced, and (z) any debt incurred in connection with the
purchase of assets in the ordinary course of business, or any refinancings or
replacements thereof on terms no less favorable to the Purchaser than the
indebtedness being refinanced or replaced; (ii) cancel any debt owing to it in
excess of $50,000 in the aggregate during any 12 month period; (iii) assume,
guarantee, endorse or otherwise become directly or contingently liable in
connection with any obligations of any other Person, except the endorsement of
negotiable instruments by the Company for deposit or collection or similar
transactions in the ordinary course of business or guarantees of indebtedness
otherwise permitted to be outstanding pursuant to this clause (e); and

             (f) create or acquire any Subsidiary after the date hereof unless
(i) such Subsidiary is controlled by the Company and (ii) such Subsidiary
becomes party to the Master Security Agreement, the Stock Pledge Agreement and
the Subsidiary Guaranty (either by executing a counterpart thereof or an
assumption or joinder agreement in respect thereof) and, to the extent
reasonably required by the Purchaser, satisfies each condition of this Agreement
and the Related Agreements as if such Subsidiary were a Subsidiary on the
Closing Date.

                                       18
<PAGE>

             6.13. REISSUANCE OF SECURITIES. The Company agrees to reissue
certificates representing the Securities without the legends set forth in
Section 5.8 above at such time as:

             (a) the holder thereof is permitted to dispose of such Securities
pursuant to Rule 144(k) under the Securities Act; or

             (b) upon resale subject to an effective registration statement
after such Securities are registered under the Securities Act.

The Company agrees to cooperate with the Purchaser in connection with all
resales pursuant to Rule 144(d) and Rule 144(k) and provide legal opinions
necessary to allow such resales provided the Company and its counsel receive
reasonably requested representations from the selling Purchaser and broker, if
any.

             6.14. OPINION

             On the Closing Date, the Company will deliver to the Purchaser an
opinion acceptable to the Purchaser in substantially the form set forth on
Exhibit C from the Company's external legal counsel. The Company will provide,
at the Company's expense, such other legal opinions in the future as are deemed
reasonably necessary by the Purchaser (and acceptable to the Purchaser) in
connection with the conversion of the Note and exercise of the Warrant.

             6.15. MARGIN STOCK. The Company will not permit any of the proceeds
of the Note or the Warrant to be used directly or indirectly to "purchase" or
"carry" "margin stock" or to repay indebtedness incurred to "purchase" or
"carry" "margin stock" within the respective meanings of each of the quoted
terms under Regulation U of the Board of Governors of the Federal Reserve System
as now and from time to time hereafter in effect.

             6.16. LOCK-BOX ACCOUNTS. Within thirty (30) days of the Closing
Date, the Company will establish a lock-box account with each of Silicon Valley
National Bank and California Bank & Trust to hold all of the cash, cash
equivalents, accounts, deposit accounts or other holdings of the Company and all
of its Subsidiaries (the "Lock-box Accounts"). The Company shall enter into
Deposit Account Control Agreements with the Purchaser to secure the Purchaser's
security interest in the Lock-box Accounts and that provides the Purchaser can
assume control of the Lock-box accounts in the event of a material uncured
default by Company under this Agreement or any related agreement.

         7. COVENANTS OF THE PURCHASER. The Purchaser covenants and agrees with
the Company as follows:

             7.1. CONFIDENTIALITY. The Purchaser agrees that it will not
disclose, and will not include in any public announcement, the name of the
Company, unless expressly agreed to by the Company or unless and until such
disclosure is required by law or applicable regulation, and then only to the
extent of such requirement.

                                       19
<PAGE>

             7.2. NO SHORTING

             The Purchaser agrees that it will not and will not cause nor permit
any person or entity, directly or indirectly, to engage in "Short Sales",
hedging transactions, sales against the box or similar transaction with respect
to the Company's Common Stock as long as the Note is outstanding.

             7.3. NON-PUBLIC INFORMATION. The Purchaser agrees not to effect any
sales in the shares of the Company's Common Stock while in possession of
material, non-public information regarding the Company if such sales would
violate applicable securities law.

         8. COVENANTS OF THE COMPANY AND PURCHASER REGARDING INDEMNIFICATION.

             8.1. COMPANY INDEMNIFICATION. The Company agrees to indemnify, hold
harmless, reimburse and defend the Purchaser, each of the Purchaser's officers,
directors, agents, affiliates, control persons, and principal shareholders,
against any claim, cost, expense, liability, obligation, loss or damage
(including reasonable legal fees) of any nature, incurred by or imposed upon the
Purchaser which results, arises out of or is based upon: (i) any
misrepresentation by the Company or any of its Subsidiaries or breach of any
warranty by the Company or any of its Subsidiaries in this Agreement, any other
Related Agreement or in any exhibits or schedules attached hereto or thereto; or
(ii) any breach or default in performance by Company or any of its Subsidiaries
of any covenant or undertaking to be performed by Company or any of its
Subsidiaries hereunder, under any other Related Agreement or any other agreement
entered into by the Company and/or any of its Subsidiaries and Purchaser
relating hereto or thereto.

             8.2. PURCHASER'S INDEMNIFICATION. Purchaser agrees to indemnify,
hold harmless, reimburse and defend the Company and each of the Company's
officers, directors, agents, affiliates, control persons and principal
shareholders, at all times against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature,
incurred by or imposed upon the Company which results, arises out of or is based
upon: (i) any misrepresentation by Purchaser or any of its Subsidiaries or
breach of any warranty by Purchaser or any of its Subsidiaries in this Agreement
or in any exhibits or schedules attached hereto or any Related Agreement; or
(ii) any breach or default in performance by Purchaser or any of its
Subsidiaries of any covenant or undertaking to be performed by Purchaser or any
of its Subsidiaries hereunder, under any Related Agreement or any other
agreement entered into by the Company and Purchaser and/or any of its
Subsidiaries relating hereto.

         9. REGISTRATION RIGHTS.

             9.1. REGISTRATION RIGHTS GRANTED. The Company hereby grants
registration rights to the Purchaser pursuant to a Registration Rights Agreement
dated as of even date herewith between the Company and the Purchaser.

             9.2. OFFERING RESTRICTIONS. Except as previously disclosed in the
SEC Reports or in the Exchange Act Filings, or stock or stock options granted to
employees or directors of the Company (these exceptions hereinafter referred to
as the "Excepted Issuances"), neither the Company nor any of its Subsidiaries
will issue any securities with a continuously variable/floating conversion
feature which are or could be (by conversion or registration) free-trading
securities (i.e. common stock subject to a registration statement) prior to the
full repayment or conversion of the Note (together with all accrued and unpaid
interest and fees related thereto) (the "Exclusion Period").

                                       20
<PAGE>

         10. MISCELLANEOUS.

             10.1. GOVERNING LAW. THIS AGREEMENT AND EACH RELATED AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT
BY EITHER PARTY AGAINST THE OTHER CONCERNING THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT AND EACH RELATED AGREEMENT SHALL BE BROUGHT ONLY IN THE STATE
COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK.
BOTH PARTIES AND THE INDIVIDUALS EXECUTING THIS AGREEMENT AND THE RELATED
AGREEMENTS ON BEHALF OF THE COMPANY AGREE TO SUBMIT TO THE JURISDICTION OF SUCH
COURTS AND WAIVE TRIAL BY JURY. IN THE EVENT THAT ANY PROVISION OF THIS
AGREEMENT OR ANY RELATED AGREEMENT DELIVERED IN CONNECTION HEREWITH IS INVALID
OR UNENFORCEABLE UNDER ANY APPLICABLE STATUTE OR RULE OF LAW, THEN SUCH
PROVISION SHALL BE DEEMED INOPERATIVE TO THE EXTENT THAT IT MAY CONFLICT
THEREWITH AND SHALL BE DEEMED MODIFIED TO CONFORM WITH SUCH STATUTE OR RULE OF
LAW. ANY SUCH PROVISION WHICH MAY PROVE INVALID OR UNENFORCEABLE UNDER ANY LAW
SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF ANY OTHER PROVISION OF THIS
AGREEMENT OR ANY RELATED AGREEMENT.

             10.2. KNOWLEDGE OF THE COMPANY. For the purposes of this Agreement,
the Company shall only be deemed to have "knowledge" of a particular fact or
other matter, if an executive officer of the Company is actually aware of such
fact or matter, or a reasonably prudent individual operating in the capacity of
an executive officer of the Company could be expected to discover or otherwise
become aware of such fact or matter in the ordinary course of fulfilling the
responsibilities of an executive officer.

             10.3. SURVIVAL. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by the Purchaser and
the closing of the transactions contemplated hereby to the extent provided
therein. All statements as to factual matters contained in any certificate or
other instrument delivered by or on behalf of the Company pursuant hereto in
connection with the transactions contemplated hereby shall be deemed to be
representations and warranties by the Company hereunder solely as of the date of
such certificate or instrument.

             10.4. SUCCESSORS. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, heirs, executors and administrators of the parties hereto and shall
inure to the benefit of and be enforceable by each person who shall be a holder
of the Securities from time to time, other than the holders of Common Stock
which has been sold by the Purchaser pursuant to Rule 144 or an effective
registration statement. Purchaser may not assign its rights hereunder to a
competitor of the Company.

             10.5. ENTIRE AGREEMENT. This Agreement, the Related Agreements, the
exhibits and schedules hereto and thereto and the other documents delivered
pursuant hereto constitute the full and entire understanding and agreement
between the parties with regard to the subjects hereof and no party shall be
liable or bound to any other in any manner by any representations, warranties,
covenants and agreements except as specifically set forth herein and therein.

                                       21
<PAGE>

             10.6. SEVERABILITY. In case any provision of the Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

             10.7. AMENDMENT AND WAIVER.

             (a) This Agreement may be amended or modified only upon the written
consent of the Company and the Purchaser.

             (b) The obligations of the Company and the rights of the Purchaser
under this Agreement may be waived only with the written consent of the
Purchaser.

             (c) The obligations of the Purchaser and the rights of the Company
under this Agreement may be waived only with the written consent of the Company.

             10.8. DELAYS OR OMISSIONS. It is agreed that no delay or omission
to exercise any right, power or remedy accruing to any party, upon any breach,
default or noncompliance by another party under this Agreement or the Related
Agreements, shall impair any such right, power or remedy, nor shall it be
construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of or in any similar breach, default or noncompliance
thereafter occurring. All remedies, either under this Agreement or the Related
Agreements, by law or otherwise afforded to any party, shall be cumulative and
not alternative.

             10.9. NOTICES. All notices required or permitted hereunder shall be
in writing and shall be deemed effectively given:

             (a) upon personal delivery to the party to be notified;

             (b) when sent by confirmed facsimile if sent during normal business
hours of the recipient, if not, then on the next business day;

             (c) three (3) business days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or

             (d) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of
receipt.

All communications shall be sent as follows:

       IF TO THE COMPANY, TO:      Island Pacific, Inc.
                                   19800 MacArthur Boulevard
                                   Suite 1200
                                   Irvine, California 92612

                                   Attention: Chief Financial Officer
                                   Facsimile: 858-450-9736

                                       22
<PAGE>

       WITH A COPY TO:             Solomon Ward Seidenwurm & Smith, LLP
                                   401 B Street
                                   Suite 1200
                                   San Diego, CA 92101

                                   Attention: Harry J. Proctor, Esq.
                                   Facsimile: (619) 231-4755

       IF TO THE PURCHASER, TO:    Laurus Master Fund, Ltd.
                                   c/o Ironshore Corporate Services ltd.
                                   P.O. Box 1234 G.T.
                                   Queensgate House, South Church Street
                                   Grand Cayman, Cayman Islands
                                   Facsimile: 345-949-9877

       WITH A COPY TO:             John E. Tucker, Esq.
                                   825 Third Avenue 14th Floor
                                   New York, NY 10022
                                   Facsimile: 212-541-4434

or at such other address as the Company or the Purchaser may designate by
written notice to the other parties hereto given in accordance herewith.

             10.10. ATTORNEYS' FEES. In the event that any suit or action is
instituted to enforce any provision in this Agreement, the prevailing party in
such dispute shall be entitled to recover from the losing party all fees, costs
and expenses of enforcing any right of such prevailing party under or with
respect to this Agreement, including, without limitation, such reasonable fees
and expenses of attorneys and accountants, which shall include, without
limitation, all fees, costs and expenses of appeals.

             10.11. TITLES AND SUBTITLES. The titles of the sections and
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

             10.12. FACSIMILE SIGNATURES; COUNTERPARTS. This Agreement may be
executed by facsimile signatures and in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument.

             10.13. BROKER'S FEES. Except as set forth on Schedule 11.12 hereof,
each party hereto represents and warrants that no agent, broker, investment
banker, person or firm acting on behalf of or under the authority of such party
hereto is or will be entitled to any broker's or finder's fee or any other
commission directly or indirectly in connection with the transactions
contemplated herein. Each party hereto further agrees to indemnify each other
party for any claims, losses or expenses incurred by such other party as a
result of the representation in this Section 11.12 being untrue.

             10.14. CONSTRUCTION. Each party acknowledges that its legal counsel
participated in the preparation of this Agreement and the Related Agreements
and, therefore, stipulates that the rule of construction that ambiguities are to
be resolved against the drafting party shall not be applied in the
interpretation of this Agreement to favor any party against the other.

             [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       23
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed the SECURITIES
PURCHASE AGREEMENT as of the date set forth in the first paragraph hereof.

COMPANY:                                     PURCHASER:

ISLAND PACIFIC, INC.                         LAURUS MASTER FUND, LTD.

By:__________________________________        By:________________________________
Name:________________________________        Name:______________________________
Title:_______________________________        Title:_____________________________

                                       24
<PAGE>

                                    EXHIBIT A

                            FORM OF CONVERTIBLE NOTE

                                      A-1
<PAGE>

                                    EXHIBIT B

                                 FORM OF WARRANT

                                      B-1
<PAGE>

                                    EXHIBIT C

                                 FORM OF OPINION

                                      C-1
<PAGE>

                                    EXHIBIT D

                            FORM OF ESCROW AGREEMENT

                                      D-1

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