Document:

STOCK
      PURCHASE AGREEMENT

    

    THIS
      STOCK PURCHASE AGREEMENT (this “Agreement”)
      is
      made and entered into as of April 24, 2008, by and among TERMINUS, INC., a
      Nevada corporation (the “Purchaser”),
      THE
      BLACKHAWK FUND, a Nevada corporation (the “Company”),
      and
      Palomar Enterprises, Inc., a Nevada corporation (the “Seller”).
      Capitalized terms used in this Agreement without definition shall have the
      meanings set forth or referenced in Article
      VIII.

    

    WITNESSETH:

    

    WHEREAS,
      the Seller is the beneficial and record owner of 10,000,000 shares of Series
      C
      Preferred Stock, par value $0.001 per share (collectively, the “Shares”);

    

    WHEREAS,
      the Purchaser desires to purchase from the Seller, and the Seller desire to
      sell
      to the Purchaser, all of the Shares, upon the terms and subject to the
      conditions set forth in this Agreement;

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto agree as
      follows:

    

    ARTICLE
      I

    

    PURCHASE
      AND SALE OF SHARES

    

    1.1 Agreement
      to Purchase and Sell.
      Upon
      the terms and subject to the conditions set forth herein, the Seller agrees
      to
      sell to the Purchaser, and the Purchaser agrees to purchase from the Seller,
      at
      the Closing, all of the Shares owned by the Seller, free and clear of all
      Liens.

    

    1.2 Purchase
      Price.
      The
      aggregate purchase price (the “Purchase
      Price”)
      for
      the Shares shall be THREE HUNDRED SIXTY THREE THOUSAND DOLLARS
      ($363,000).

    

    1.3 Payment
      of the Purchase Price.
      The
      Purchase Price shall be paid by a certified or back check made payable to the
      Seller, or by wire transfer pursuant to instructions provided by the Seller,
      at
      the Closing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

      

    ARTICLE
      II

    

    REPRESENTATIONS
      AND WARRANTEES

    

    2.1 Representations
      and Warranties concerning the Company.
      The
      Seller and the Company, jointly and severally, hereby represent and warrant
      to
      the Purchaser as follows:

    

    (a) Authority.
      The
      Company has all necessary power and authority to enter into and deliver this
      Agreement and each of the other agreements, certificates, instruments and
      documents contemplated hereby (collectively, the “Ancillary
      Documents”)
      to
      which it is a party, to carry out its obligations hereunder and under any
      Ancillary Document and to consummate the transactions contemplated hereby and
      by
      the Ancillary Documents. All actions, authorizations and consents required
      by
      Law for the execution, delivery and performance by the Company of this Agreement
      and each Ancillary Document to which it is a party, and the consummation of
      the
      transactions contemplated hereby and thereby, have been properly taken or
      obtained, including without limitation, the approval of this Agreement and
      the
      transactions contemplated by it by the Board of Directors of the
      Company.

    

    (b) Execution
      and Delivery.
      This
      Agreement has been, and each Ancillary Document to which the Company is a party
      will be at the Closing, duly authorized, executed, and delivered by the Company
      and constitutes a legal, valid, and binding obligation of the Company,
      enforceable against the Company in accordance with their respective terms and
      conditions, except as enforceability thereof may be limited by applicable
      bankruptcy, reorganization, insolvency or other similar laws affecting or
      relating to creditors’ rights generally or by general principles of
      equity.

    

    (c) No
      Conflicts.
      The
      execution, delivery and performance by the Company of this Agreement and each
      Ancillary Document to which it is a party, and the consummation of the
      transactions contemplated hereby and thereby, do not and will not violate,
      conflict with or result in a breach of any term, condition or provision of,
      or
      require the consent of any Person under, or result in the creation of or right
      to create any Lien upon any of the assets of the Company under, (i) any Laws
      to
      which the Company or any of its assets are subject, (ii) any permit, judgment,
      order, writ, injunction, decree or award of any Governmental Authority to which
      the Company or any of its assets are subject, (iii) the certificate or
      articles of incorporation or bylaws of the Company, or (iv) any license,
      indenture, promissory note, bond, credit or loan agreement, lease, agreement,
      commitment or other instrument or document to which the Company is a party
      or by
      which the Company or any of its assets are bound. 

    

    (d) Governmental
      Consents.
      No
      consent, approval, order or authorization of, or registration, declaration
      or
      filing with, any Governmental Authority, is required to be obtained by the
      Company in connection with or as a result of the execution and delivery of
      this
      Agreement or any of the Ancillary Documents, or the performance of its
      obligations hereunder and thereunder.

     

    (e) Organization,
      Standing and Qualification.
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the Laws of the jurisdiction of its organization. The Company has all
      requisite power and authority to own, lease, and operate its properties and
      to
      carry on its business as now being conducted, to use its name and is duly
      qualified, licensed, or authorized to do business and in good standing, in
      each
      jurisdiction where the nature of the activities conducted by it or the character
      of the properties owned, leased or operated by it require such qualification,
      licensing or authorization. Each such jurisdiction is identified on Schedule
      2.1(e).
      The
      Company’s corporate minute books reflect all resolutions approved and other
      actions taken by its shareholders or Board of Directors and any committees
      thereof since the date of its incorporation. The Seller or the Company have
      previously delivered to the Purchaser true, correct, and complete copies of
      the
      Certificates of Incorporation and Bylaws of the Company, each as currently
      in
      effect (collectively, the “Organization
      Documents”).

     

    
      
         

      

      
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    (f) Capitalization.
      The
      authorized capital stock of the Company consists solely of 4,000,000,000 shares
      of common stock, par value $0.001 per share (the “Common Stock”), of
      which
      562,293,791 shares are issued and outstanding, 150,000,000
      shares of Class B common stock, par value $0.001 per share (the “Class B Common
      Stock”), of which 30,000,000, and
      50,000,000 shares of preferred stock, $0.001 par value, of which no shares
      are
      issued and outstanding as Series A Preferred Stock, 10,000,000 shares are issued
      and outstanding as Series B Preferred Stock, and 10,000,000 shares are issued
      and outstanding as Series C Preferred Stock. As
      of the
      date hereof, each person owns of record such number, class, and series of
      capital stock as is set forth opposite such person’s name on Schedule
      2.1(f).
      All of
      the issued and outstanding shares of capital stock of the Company are duly
      authorized, validly issued, fully paid, non-assessable, and were issued in
      compliance with all federal and state securities laws. No shares of Common
      Stock
      are held in treasury. Except as disclosed in Schedule
      2.1(f),
      there
      are no outstanding subscriptions, options, warrants, calls, contracts, demands,
      commitments, convertible or exchangeable securities, profits interests,
      conversion rights, preemptive rights, rights of first refusal or other rights,
      agreements, arrangements or commitments of any nature whatsoever under which
      the
      Company is or may become obligated to issue, redeem, assign or transfer any
      shares of capital stock or purchase or make payment in respect of any shares
      of
      capital stock of the Company now or previously outstanding, and there are no
      outstanding or authorized stock appreciation, phantom stock or similar rights
      with respect to or any shares of its capital stock. There
      are
      no stockholders agreements, voting agreements, or other similar agreements
      with
      respect to the Company’s capital stock to which the Company is a party or, to
      the knowledge of the Company, between or among any of the Company’s
      stockholders.

    

    (g) No
      Subsidiaries or Other Equity Interests.
      The
      Company does not, nor has it ever at any time since its organization, had a
      direct or indirect Subsidiary or owned, directly or indirectly, any equity,
      investment or other equity interest, or any right (contingent or otherwise)
      to
      acquire the same, in any other Person.

    

    (h) Reporting
      Company.
      The
      Company is a publicly-held company subject to reporting obligations pursuant
      to
      Section 13 of the Exchange Act, and
      its
      Common Stock is registered pursuant to Section 12(g) of the Exchange Act.

    

    (i) Listing.
      The
      Common Stock is quoted on the OTC Bulletin Board. The Company has not received
      any oral or written notice that its common stock is not eligible nor will become
      ineligible for quotation on the OTC Bulletin Board nor that its common stock
      does not meet all requirements for the continuation of such quotation. The
      Company satisfies all the requirements for the continued quotation of its common
      stock on the OTC Bulletin Board.

     

    
      
         

      

      
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    (j) SEC
      Documents; Financial Statements.
      The
      Company has filed all SEC Documents required to be filed by it under the
      Securities Laws, including pursuant to Section 13(a) or 15(d) of the Exchange
      Act, and for the twelve months preceding the date hereof, such SEC Documents
      have filed on a timely basis or the Company has received a valid extension
      of
      such time of filing and has filed any such SEC Documents prior to the expiration
      of any such extension. Except as may have been corrected or supplemented in
      a
      subsequent SEC Document, as of their respective dates, the SEC Documents
      complied in all material respects with the requirements of the Exchange Act
      and
      the rules and regulations of the SEC promulgated thereunder, and none of the
      SEC
      Documents, when filed, contained any untrue statement of a material fact or
      omitted to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading. Except as may have been corrected or
      supplemented in a subsequent SEC Document, the financial statements of the
      Company included in the SEC Documents (the “Financial
      Statements”)
      comply
      in all material respects with applicable accounting requirements and the rules
      and regulations of the SEC with respect thereto as in effect at the time of
      filing. Except as may have been corrected or supplemented in a subsequent SEC
      Document, the Financial Statements have been prepared in accordance with United
      States generally accepted accounting principles applied on a consistent basis
      during the periods involved (“GAAP”), except as may be otherwise specified in
      such Financial Statements or the notes thereto, or, in the case of unaudited
      financial statements, as permitted by Item 310(b) of Regulation S-B promulgated
      under the Securities Act and the Exchange Act, and fairly present in all
      material respects the financial position of the Company and its consolidated
      subsidiaries as of and for the dates thereof and the results of operations
      and
      cash flows for the periods then ended, subject, in the case of unaudited
      statements, to normal, year-end audit adjustments and the lack of footnotes.
      The
      Company has not received any letters of comment from the Staff of the SEC which
      have not been satisfactorily resolved as of the date hereof.

    

    (k) Material
      Changes.
      Since
      the date of the latest balance sheet included within the SEC Documents, except
      as specifically disclosed in Schedule
      2.1(k),
      (i)
      there has been no event, occurrence or development that has had or that could
      reasonably be expected to result in a Material Adverse Effect, (ii) the Company
      has not incurred any Liabilities (contingent or otherwise), (iii) the Company
      has not materially altered its method of accounting or the identity of its
      auditors, (iv) the Company has not declared or made any dividend or distribution
      of cash or other property to its stockholders or purchased, redeemed or made
      any
      agreements to purchase or redeem any shares of its capital stock, and (v) the
      Company has not issued any equity securities. The Company does not have pending
      before the SEC any request for confidential treatment of
      information.

    

    (l) Internal
      Control Over Financial Reporting.
      The
      Company and its subsidiaries maintain a system of internal control over
      financial reporting sufficient to provide reasonable assurance that (i)
      transactions are executed in accordance with management’s general or specific
      authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with generally accepted
      accounting principles and to maintain asset accountability, (iii) access to
      assets is permitted only in accordance with management’s general or specific
      authorization, and (iv) the recorded accountability for assets is compared
      with
      the existing assets at reasonable intervals and appropriate action is taken
      with
      respect to any differences. The
      Company has established disclosure controls and procedures (as defined in
      Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such
      disclosure controls and procedures to ensure that material information relating
      to the Company, including its subsidiaries, is made known to the certifying
      officers by others within those entities, particularly during the period in
      which the Company’s most recently filed periodic report under the Exchange Act,
      as the case may be, is being prepared. The Company’s certifying officers have
      evaluated the effectiveness of the Company’s controls and procedures as of the
      date prior to the filing date of the most recently filed periodic report under
      the Exchange Act (such date, the “Evaluation
      Date”).
      The
      Company presented in its most recently filed periodic report under the Exchange
      Act the conclusions of the certifying officers about the effectiveness of the
      disclosure controls and procedures based on their evaluations as of the
      Evaluation Date. Since the Evaluation Date, there have been no significant
      changes in the Company’s internal controls (as such term is defined in Item
      307(b) of Regulation S-K under the Exchange Act) or, to the knowledge of the
      Company, in other factors that could significantly affect the Company’s internal
      controls. The
      Company has no “off-balance sheet arrangements” (as defined in Item 303(a)(4) of
      Regulation S-K promulgated by the SEC).

     

    
      
         

      

      
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    (m) Sarbanes-Oxley
      Act.
      The
      Company is in compliance with applicable requirements of the Sarbanes-Oxley
      Act
      of 2002 and applicable rules and regulations promulgated by the SEC
      thereunder in effect as of the date of this Agreement, except where such
      noncompliance could not be reasonably expected to have, individually or in
      the aggregate, a Material Adverse Effect.

    

    (n) Absence
      of Undisclosed Liabilities.
      Except
      to the extent adequately reflected on or reserved against in the Financial
      Statements and except for recurring Liabilities incurred in the ordinary course
      of business consistent with recent past practice, as of December 31, 2007 (the
      “Balance
      Sheet Date”),
      the
      Company had no direct or indirect Liabilities for any period prior to such
      date
      or arising out of transactions entered into or any set of facts existing prior
      thereto. Since the Balance Sheet Date, the Company has not incurred any
      Liabilities except as set disclosed on Schedule
      2.1(n).

    

    (o) Ordinary
      Course.
      Since
      the Balance Sheet Date, except as otherwise disclosed on Schedule 2.1(o),
      the
      Company has operated its business in the ordinary course consistent with past
      practice and there has not occurred:

    

    (i) any
      change in the condition (financial or otherwise), properties, assets,
      liabilities, business, prospects, operations or results of operations that
      has
      had or could reasonably be expected to have a Material Adverse Effect on the
      Company;

    

    (ii) any
      amendments or changes in any of its Organization Documents;

    

    (iii) any
      issuance or sale of any shares of or interests in, or rights of any kind to
      acquire any shares of or interests in, or receipt of any payment based on the
      value of, its capital stock or any securities convertible or exchangeable into
      shares of its capital stock (including, without limitation, any stock options,
      phantom stock or stock appreciation rights) or any adjustment, split,
      combination or reclassification of its capital stock, or any declaration or
      payment of any dividend or any distribution on, or any redemption, purchase,
      retirement or other acquisition, directly or indirectly, of any shares of its
      capital stock or any securities or obligations convertible into or exchangeable
      for any shares of its capital stock;

     

    
      
         

      

      
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    (iv) any
      investment of a capital nature on its own account;

    

    (v) any
      entering into, amendment of, modification in, relinquishment, termination or
      non-renewal by the Company of any contract, lease, transaction, commitment
      or
      other right or obligation, except for purchase and sale commitments entered
      into
      in the ordinary course of business consistent with recent past
      practice;

    

    (vi) any
      waiver, forfeiture or failure to assert any rights of a material value or made,
      whether directly or indirectly, any payment of any material Liability before
      the
      same came due in accordance with its terms;

    

    (vii) any
      material damage, destruction or loss of the Company’s assets or properties,
      whether covered by insurance or not;

    

    (viii) any
      payment of (or any making of oral or written commitments or representations
      to
      pay) any bonus, increased salary or special remuneration to any director,
      officer, employee or consultant or any entry into or alterations of the terms
      of
      any employment, consulting or severance agreement with any such person; any
      payment of any severance or termination pay (other than payments made in
      accordance with existing plans or agreements); any grant of stock option or
      issuance of any restricted stock; any entry into or modification of any
      agreement or Employee Benefit Plan (except as required by law) or any similar
      agreement;

    

    (ix) any
      modification of any term of benefits payable under any Employee Benefit
      Plan;

    

    (x) (A)
      any
      creation, incurrence or assumption of any Liability for borrowed money except
      those Liabilities incurred in the ordinary course of business consistent with
      recent past practice, (B) issuance or sale of any securities convertible into
      or
      exchangeable for debt securities of the Company; or (C) issuance or sale of
      options or other rights to acquire from the Company, directly or indirectly,
      debt securities of the Company or any securities convertible into or
      exchangeable for any such debt securities;

    

    (xi) any
      material change in the amounts or scope of coverage of insurance
      policies;

    

    (xii) any
      merger or consolidation with any other Person, acquisition of any capital stock
      or other securities of any other Person, or acquisition of all or a significant
      portion of the assets of any other Person, or acquisition of any assets or
      properties from any Seller or its affiliate or family member;

     

    
      
         

      

      
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    (xiii) any
      assumption or guarantee of any Liability or responsibility (whether primarily,
      secondarily, contingently or otherwise) for the obligations of any other
      Person;

    

    (xiv) any
      loan,
      advance (including, without limitation, any loan or advance to any stockholder,
      officer, director or employee of such Company) or capital contribution to,
      or
      investment in, any Person;

    

    (xv) any
      sale,
      transfer or lease to others of, any grant, creation or assumption of Liens
      against, or otherwise disposed of, any of its material assets, whether tangible
      or intangible;

    

    (xvi) any

      lapse, failure to take any actions to protect, or any adverse change in respect
      of any of its Proprietary Rights;

    

    (xvii) any
      consummation of any other transaction that is not in the Company’s ordinary
      course of business consistent with recent past practice;

    

    (xviii) any
      collection of the Company’s accounts receivable, or any payment of the Company’s
      accounts payable, in each case that is not in the Company’s ordinary course of
      business consistent with recent past practice; or

    

    (xix) any
      agreement or commitment, in writing or otherwise, to take any of the actions
      described in the foregoing subclauses (i) through (xviii).

    

    (p) Title
      to Assets.
      Except
      as disclosed on Schedule 2.1(p),
      the
      Company has good and marketable title to all of the tangible and intangible
      assets owned by it, free and clear of any Liens, and none of such assets are
      owned by any Person other than the Company. The Company owns, leases, licenses
      or otherwise has the contractual right to use all of the assets used in or
      necessary for the conduct of its business as currently conducted. The Company
      has delivered to the Purchaser a schedule of the fixed assets of the Company
      dated within thirty (30) days prior to the date hereof. All personal property
      owned or leased by the Company, taken as a whole, is in good repair and is
      operational and usable in the operation of the Company, subject to ordinary
      wear
      and tear.

    

    (q) Receivables
      and Payables.
      Except
      as disclosed on Schedule 2.1(q),
      (i) the accounts and notes receivable reflected on the Financial Statements
      or arising since the Balance Sheet Date (collectively, the “Receivables”),
      are
      bona fide, represent valid obligations to the Company, and have arisen or were
      acquired in the ordinary course of business and in a manner consistent with
      recent past practice and with the Company’s regular credit practices;
      (ii) the Company’s provision for doubtful accounts reflected on its
      Financial Statements or reserved on its books since the Balance Sheet Date
      has
      been determined in accordance with the generally accepted accounting principles
      consistently applied; (iii) the Receivables have been collected or are
      collectible in full, net of any allowance for uncollectibles recorded on the
      Financial Statements or properly reserved on its books since the Balance Sheet
      Date, in a manner consistent with past practice in the ordinary course of
      business and without resort to litigation; (iv) none of the Receivables is
      or will at the Closing Date be subject to any defense, counterclaim or setoff;
      (v) since the Balance Sheet Date, the Company has not canceled, reduced,
      discounted, credited or rebated or agreed to cancel, reduce, discount, credit
      or
      rebate, in whole or in part, any Receivables; and (vi) there has been no
      material adverse change since the Balance Sheet Date in the amounts of
      Receivables or the allowances with respect thereto, or accounts payable of
      the
      Company, from those reflected in the balance sheet of the Company as of such
      date. The Company has provided to the Purchaser a schedule of aged Receivables
      and payables for the Company as of a date which is within three (3) business
      days of the date hereof.

     

    
      
         

      

      
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    (r) Real
      Property.

    

    (i) Schedule 2.1(r)
      sets
      forth a true and complete list of all real property owned, leased, or otherwise
      used by the Company, identifying whether it is owned or leased, and if leased,
      the lessor or other owner thereof (the “Real
      Property”).
      Except as set forth on Schedule
      2.1(r),
      the
      Company does not now own, and has never owned, any real property.

     

    (ii) There
      is
      not existing or proposed as a matter of public record or, to the Knowledge
      of
      the Company, presently contemplated, any condemnation or similar action, or
      zoning action or proceeding, with respect to any portion of the Real Property.
      None of the existing buildings and improvements which in part comprise the
      Real
      Property fails to comply fully with all size, height, set back, use and other
      zoning restrictions and regulations applicable thereto, including, without
      limitation, the parking space requirements of all applicable zoning ordinances
      and regulations. The Company or its landlord has obtained all licenses, permits,
      approvals, certificates, and other authorizations required by applicable Laws
      for the use and occupancy of the Real Property as it is currently being
      utilized. None of the Real Property is subject to any encumbrance, easement,
      right-of-way, building or use restriction, exception, variance, reservation,
      limitation or other Liens which might in any material respect interfere with
      or
      impair the continued use thereof as currently utilized or proposed to be
      utilized by the Company.

    

    (s) Proprietary
      Rights.

    

    (i) The
      Company owns or possesses licenses or other rights to use all trademarks, trade
      and business names, internet domain names, service marks, service names,
      copyrights, customer lists, trade secrets and inventions (whether or not
      patentable) (collectively, “Proprietary
      Rights”)
      that
      are necessary to the conduct of the Company’s business as currently conducted or
      anticipated.

    

    (ii) Schedule 2.1(s)(ii)
      sets
      forth a true and complete list of all trademarks, trade names, service marks,
      service names, internet domain names, copyrights and patents included in the
      Proprietary Rights of the Company (identifying which are owned and which are
      licensed), including all United States, state and foreign registrations or
      applications for registration thereof and all agreements relating thereto.
      All
      filing, registration, maintenance or similar fees payable in connection with
      each registration (or application therefor) of Proprietary Rights set forth
      on
Schedule
      2.1(s)(ii)
      have
      been paid and each such registration is valid and in full force and
      effect.

     

    
      
         

      

      
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    (iii) Except
      as
      disclosed in Schedule
      2.1(s)(iii),
      the
      Company is not required to pay any royalty, license fee or similar compensation
      in connection with the conduct of its business as currently
      conducted.

    

    (iv) The
      Company has not interfered with, infringed upon, misappropriated or otherwise
      come into conflict with the Proprietary Rights of any other Person or committed
      any acts of unfair competition and no claims have been asserted by any Person
      alleging such interference, infringement, misappropriation, conflict or act
      of
      unfair competition.

    

    (v) To
      the
      Knowledge of the Company, no Person is infringing upon its Proprietary
      Rights.

    

    (vi) There
      are
      no Proprietary Rights developed by any shareholder, director, officer,
      consultant or employee of the Company that are used in the Company’s business
      and that have not been transferred to, or are not owned free and clear of any
      Liens by, the Company. 

    

    (t) Material
      Agreements.
      Schedule 2.1(t)(1)
      sets
      forth a true and complete list, and the Seller has provided to the Purchaser
      complete copies (including all amendments and extensions thereof and all waivers
      thereunder) or, if oral, an accurate and complete description, of each of the
      following, whether written or oral, to which the Company is a party or is
      otherwise bound (each, a “Material
      Agreement”):
      

    

    (i) all
      loan
      agreements, indentures, mortgages, notes, installment obligations, capital
      leases or other agreements or instruments relating to the borrowing of money
      (or
      guarantees thereof); 

    

    (ii) all
      continuing contracts or commitments for the future purchase, sale or manufacture
      of products, materials, supplies, equipment or services requiring payment to
      or
      from the Company;

    

    (iii) all
      contracts with any Governmental Authority; 

    

    (iv) all
      leases, subleases or any other agreements or arrangements under which the
      Company has the right or license to use any personal property, whether tangible
      or intangible, owned or licensed by another Person; 

    

    (v) all
      agreements or arrangements under which any other Person has the right or license
      to use any real property or personal property, whether tangible or intangible,
      owned, leased or licensed by the Company; 

    

    (vi) all
      contracts or understandings which by their terms restrict the ability of the
      Company to conduct its business or to otherwise compete, including as to manner
      or place;

     

    
      
         

      

      
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    (vii) all
      joint
      venture or similar agreements or understandings;

    

    (viii) lease
      and
      other agreements pertaining to the Real Property;

    

    (ix) all
      collective bargaining, employment, severance, consulting, nondisclosure or
      confidentiality agreements, and agreements requiring a charge of control or
      parachute payments, or any other type of contract or understanding with any
      officer, employee or consultant, other than pursuant to Employee Benefit Plans,
      which is not immediately terminable by the Company without cost or other
      liability to the Company; 

    

    (x) all
      agreements with sales agents or representatives, wholesalers, distributors
      and
      dealers;

    

    (xi) all
      agreements concerning any Hazardous Materials; and

    

    (xii) all
      other
      agreements, without regard to monetary amount, to which the Company has been
      a
      party since January 1, 2007. 

    

    Except
      as
      disclosed on Schedule
      2.1(t)(2),
      the
      Company is not, and to the Knowledge of the Company, any other party thereto
      is
      not, in default under any Material Agreement and no event has occurred or is
      reasonably expected to occur which (after notice or lapse of time or both)
      would
      become a breach or default under, or would otherwise permit modification,
      cancellation, acceleration, or termination of, any Material Agreement or would
      result in the creation of or right to obtain any Lien upon, or any Person
      obtaining any right to acquire, any assets, rights or interests of the Company.
      Except as disclosed on Schedule 2.1(t)(3):
      (i) each Material Agreement is in full force and effect and is a valid and
      binding obligation of the Company, and, to the Knowledge of the Company, the
      other parties thereto; (ii) there are no unresolved disputes with respect
      to any Material Agreement; and (iii) the Company has no reasonable basis to
      believe that any party to a Material Agreement intends either to modify, cancel
      or terminate such Material Agreement. 

    

    (u) Litigation.
      Except
      as disclosed on Schedule 2.1(u),
      there
      is no claim, legal action, suit, arbitration, investigation or other
      proceeding pending, or to the Knowledge of the Company, threatened against
      or
      relating to the Company or its assets. Neither the Company nor any of its assets
      are subject to any outstanding judgment, order, writ, injunction or decree
      of
      any Governmental Authority. There is currently no investigation or review by
      any
      Governmental Authority with respect to the Company pending or, to the Knowledge
      of the Company, threatened, nor has any Governmental Authority notified the
      Company of its intention to conduct the same.

    

    (v) Compliance
      with Laws.
      The
      Company has all licenses, permits, and other authorizations from all applicable
      Governmental Authorities necessary or desirable for the conduct of its business
      as currently conducted or as currently expected to be conducted following the
      Closing Date. Schedule 2.1(v)
      hereto
      sets forth a true and complete list of all such licenses, permits and other
      authorizations obtained by the Company, each of which is in full force and
      effect and no violations thereunder have been recorded. The Company is in
      compliance, and has complied, with all Laws applicable to it and has not
      received any notice of any violation thereof. 

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (w) Environmental
      Matters.
      Except
      as disclosed in Schedule
      2.1(w):
      

    

    (i) During
      the period that the Company has owned, leased, or operated any properties or
      facilities, neither it nor any other Person has disposed, released, or
      participated in or authorized the release or threatened release of Hazardous
      Materials on, from or under such properties or facilities. There is not now
      nor
      has there ever been any presence, disposal, release or threatened release of
      Hazardous Materials on, from or under any of such properties or facilities,
      which may have occurred prior to the Company having taken possession of any
      of
      such properties or facilities. For the purposes of this Agreement, the terms
      “disposal,” “release,” and “threatened release” shall have the definitions
      assigned thereto by the Comprehensive Environmental Response Compensation and
      Liability Act of 1980, 42 U. S.C. § 9601 et seq., as amended (“CERCLA”).
      

    

    (ii) The
      operations of the Company and properties that the Company owns, leases, or
      operates, are in compliance with Environmental Law. During the time that the
      Company has owned, leased or operated its properties and facilities, neither
      the
      Company nor any other Person has used, generated, manufactured or stored on,
      under or about such properties or facilities or transported or arranged for
      disposal to or from such properties or facilities, any Hazardous Materials
      which
      may be considered a violation of applicable Environmental Law.

    

    (iii) During
      the time that the Company has owned, leased or operated its properties and
      facilities, there has been no litigation or proceeding brought or, to the
      Knowledge the Company, threatened against the Company by, or any settlement
      reached the Company with, any Persons alleging the presence, disposal, release
      or threatened release of any Hazardous Materials, on from or under any of such
      properties or facilities.

    

    (iv) There
      are
      no facts, circumstances or conditions relating to the properties and facilities
      owned, leased or operated by the Company which could give rise to a claim under
      any Environmental Law or to any material Environmental Costs and Liabilities.
      

    

    (x) Related
      Party Transactions.
      Except
      as disclosed on Schedule 2.1(x),
      since
      January 1, 2005, no Related Party has been directly or indirectly a party
      to any contract or other arrangement (whether written or oral) with the Company
      providing for services (other than as an employee of the Company), products,
      goods or supplies, rental of real or personal property, or otherwise requiring
      payments from or to the Company. For purposes hereof, the term “Related
      Party”
shall
      mean any Seller or a director or officer of the Company or any member of his
      or
      her family or any corporation, partnership, limited liability company, other
      business entity or trust in which he or she or any member of his or her family
      has greater than a ten percent (10%) interest, or of which he or she or any
      member of his or her family is an officer, director, general partner, member
      or
      trustee.

    

    (y) Insurance.
      Schedule 2.1(y)(l)
      sets
      forth a list of the Company’s insurance policies (including property, casualty,
      liability (general, professional and directors and officers) and workers’
compensation), listing for each policy the identity of the insurance carrier,
      the policy period, the limits and retentions and any special exclusions. Except
      as set forth on Schedule 2.1(y)(2),
      such
      insurance coverage and coverage amounts are customary for the business engaged
      in by the Company. Such policies are currently in full force and effect, all
      premiums have been paid in full with respect thereto and the Company has not
      received any notice of termination or modification from the insurance carriers.
      All of the Company’s assets are insured, pursuant to the insurance policies
      described in Schedule 2.1(y)(1),with
      respect to loss due to general liability, fire and other risks in accordance
      with good industry practice and consistent with claims historically incurred.
      Schedule 2.1(y)(l)
      also
      sets forth a true and complete description of any self-insurance arrangement
      by
      or affecting the Company, including any reserves established thereunder, if
      any.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (z) Taxes.

    

    (i) The
      Company has timely filed with the appropriate taxing authorities all returns
      and
      reports in respect of Taxes (“Returns”)
      required to be filed by it (taking into account any extension of time to file
      granted to or on the account of the Company). The information on such Returns
      is
      complete and accurate in all material respects. The Company has paid on a timely
      basis all Taxes (whether or not shown on any Return) due and payable. There
      are
      no Liens for Taxes (other than for current Taxes not yet due and payable) upon
      the assets of the Company. As used in this Section
      2.1(z),
      the
      Company shall mean, individually and collectively, (i) the Company and (ii)
      any
      individual, trust, corporation, partnership or other entity as to which the
      Company may be liable for Taxes incurred by such individual or entity as a
      transferee or pursuant to any provision of federal, state, local or foreign
      law
      or regulation.

     

    (ii) No
      unpaid
      (or unreserved in accordance with generally accepted accounting principles
      applied on a consistent basis) deficiencies for Taxes have been claimed,
      proposed or assessed by any taxing authority or other Governmental Authority
      with respect to the Company for any Pre-Closing Period and, to the best
      knowledge of the Company or the Seller, there are no pending audits,
      investigations or claims for or relating to any liability in respect of
      Taxes of the Company, nor has the Company been notified of any request for
      such
      an audit, investigation or claim. The Company has not requested any extension
      of
      time within which to file any currently unfiled returns in respect of any Taxes
      and no extension of a statute of limitations relating to any Taxes is in effect
      with respect to the Company.

     

     

    (iii) (1)
      The
      Company has made or will make provision for all Taxes payable by it with respect
      to any Pre-Closing Period which are not payable prior to the Closing Date; (2)
      the provisions for Taxes with respect to the Company for the Pre-Closing Period
      are adequate to cover all Taxes with respect to such period; (3) the
      Company has withheld and paid all Taxes required to have been withheld and
      paid
      in connection with amounts paid or owing to any employee, independent
      contractor, creditor, shareholder or other third party; (4) all material
      elections with respect to Taxes made by or, to the Knowledge of the Company,
      affecting the Company as of the date hereof are set forth in Schedule
      2.1(z)(iii)(4);
      (5) the
      Company is not a “consenting corporation” under Section 341(f) of the
Code,
      or any
      corresponding provision of state, local or foreign law; (6) there are no
      private letter rulings in respect of any Tax pending between the Company and
      any
      taxing authority; (7) the Company has never been a member of an affiliated
      group
      within the meaning of Section 1504 of the Code, or filed or been included in
      a
      combined, consolidated or unitary return of any Person other than the Company;
      (8) the Company is not liable for Taxes of any other Person, or is
      currently under any contractual obligation to indemnify any Person with respect
      to Taxes, or is a party to any tax sharing agreement or any other agreement
      providing for payments by the Company with respect to Taxes; (9) the
      Company is not, and has not been, a real property holding corporation (as
      defined in Section 897(c)(2) of the Code) during the applicable period specified
      in Section 897(c)(1)(A)(ii) of the Code; (10) the Company is not a person
      other than a United States person within the meaning of the Code; (11) the
      Company is not a party to any joint venture, partnership, or other arrangement
      or contract which could be treated as a partnership for federal income tax
      purposes; (12) the Company has not entered into any sale leaseback or any
      leveraged lease transaction that fails to satisfy the requirements of Revenue
      Procedure 75-21 (or similar provisions of foreign law); (13) the Company has
      not
      agreed and is not required, as a result of a change in method of accounting
      or
      otherwise, to include any adjustment under Section 481 of the Code (or any
      corresponding provision of state, local or foreign law) in taxable income;
      (14)
      the Company is not a party to any agreement, contract, arrangement or plan
      that
      would result (taking into account the transactions contemplated by this
      Agreement), separately or in the aggregate, in the payment of any “excess
      parachute payments” within the meaning of Section 280G of the Code; (15) the
      Company has never been a Subchapter S corporation (as defined in Section
      1361(a)(1) of the Code); (16) Schedule
      2.1(z)(iii)(16)
      contains
      a list of all jurisdictions to which any Tax is properly payable by the Company;
      (17) the Company is not a personal holding company within the meaning of Section
      542 of the Code; (18) the Company has not made an election and is not required
      to treat any of its assets as owned by another Person for federal income tax
      purposes or as tax-exempt bond financed property or tax-exempt use property
      within the meaning of Section 168 of the Code (or any corresponding provision
      of
      state, local or foreign law).

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (aa) Employee
      Benefit Plans.

    

    (i) Schedule 2.1(aa)(i)
      lists
      all Employee Benefit Plans which have been maintained or contributed to by
      the
      Company or to which the Company has been obligated to contribute. Except as
      set
      forth on Schedule 2.1(aa)(ii),
      neither
      the Company nor any of its ERISA Affiliates (as defined below), maintains or
      has
      maintained, contributed to or been obligated to contribute to a Pension Plan
      subject to Title IV of ERISA or Section 412 of the Code. Except as set
      forth on Schedule
      2.1(aa)(iii),
      each
      Pension Plan and Welfare Plan disclosed on Schedule 2.1(a)(i)
      has been
      maintained in compliance with its terms and all material provisions of ERISA
      and
      the Code, applicable thereto (including rules and regulations
      thereunder).

    

    (ii) The
      Company has delivered or made available to Purchaser prior to the date hereof
      complete and correct copies of (a) any employment agreements and any procedures
      and policies relating to the employment of employees of the Company and the
      use
      of temporary employees and independent contractors by the Company (including
      summaries of any procedures and policies that are unwritten), (b) plan
      instruments and amendments thereto for all Employee Benefit Plans and related
      trust agreements, insurance and other contracts, summary plan descriptions,
      summaries of material modifications and material communications distributed
      to
      the participants of each Employee Benefit Plan (and written summaries of any
      unwritten Employee Benefit Plans, modifications to Employee Benefit Plans and
      employee communications), (c) to the extent annual reports on Form 5500 are
      required with respect to any Employee Benefit Plan, the three most recent annual
      reports and attached schedules for each Employee Benefit Plan as to which such
      report is required to be filed, (d) where applicable, the most recent (A)
      opinion, notification and determination letters, (B) actuarial valuation
      reports, and (C) nondiscrimination tests performed under the Code (including
      401(k) and 401(m) tests) for each Employee Benefit Plan, (e) all material
      communications received from or sent to the Internal Revenue Service or the
      Department of Labor (including a written description of any oral communication),
      and (f) any Forms 5330 required to be filed by the Company or any Affiliate,
      whether related to an Employee Benefit Plan or otherwise.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    (iii) Each
      Pension Plan identified in Schedule 2.1(aa)(i)
      hereto
      which is intended to be “qualified” within the meaning of Section 401(a) of
      the Code has been determined by the Internal Revenue Service (the “IRS”)
      to be
      so qualified as of the date of the determination letter set forth on
Schedule 2.1(aa)(iii),
      and the
      Company is not aware of any fact which would indicate that the qualified status
      of each such Pension Plan or the tax exempt status of each trust created
      thereunder has been adversely affected. None of the Pension Plans identified
      in
Schedule 2.1(aa)(i)
      hereto
      are currently the subject of an audit or other investigation by the IRS, the
      Department of Labor, the Pension Benefit Guaranty Corporation (the “PBGC”)
      or any
      other Governmental Authority nor are any the subject of any law suits,
      complaints, claims or legal proceedings of any kind.

    

    (iv) No
      “prohibited transaction,” as such term is defined in Section 406 of ERISA,
      has occurred with respect to any Pension Plan or Welfare Plan identified in
      Schedule 2.1(aa)(i)
      hereto
      which has resulted or may result in Liability to the Company or any of the
      ERISA
      Affiliates. No breach of fiduciary responsibility under Part 4 of Title I of
      ERISA has occurred which has resulted or may result in Liability to the Company
      such Pension Plan or Welfare Plan. Except as disclosed on Schedule
      2.1(aa)(iv),
      no
      ERISA Affiliate has incurred any material Liability for any penalty or Tax,
      nor,
      to the Knowledge of the Company, does any fact exist which would subject the
      Company to any penalty or Tax under Sections 4971, 4972, 4975, 4976, 4977,
      4978,
      4979, 4980, 4980B, 4980D, 5000 of the Code or Section 502 of ERISA with respect
      to any such Pension Plan or Welfare Plan.

    

    (v) Except
      as
      disclosed in Schedule
      2.1(aa)(v),
      each
      Welfare Plan identified thereon has, to the extent applicable, at all times
      been
      in compliance with the provisions of Section 4980B of the Code and Parts 6
      and 7
      of Title I of ERISA. Except as disclosed on Schedule 2.1(aa)(v)
      and
      except as described in the immediately preceding sentence, none of the Welfare
      Plans provides or promises post-retirement health or life benefits to current
      employees or retirees of the Company or its ERISA Affiliates.

    

    (vi) Except
      as
      disclosed on Schedule 2.1(aa)(vi),
      all
      contributions required to be paid under the terms of each Employee Benefit
      Plan
      identified in Schedule 2.1(aa)(i)
      hereto
      have been made. As of and including the Closing Date, the Company shall have
      made all contributions required to be made by it up to and including the Closing
      Date with respect to each Employee Benefit Plan, or adequate accruals therefor
      will have been provided for and will be reflected on an unaudited balance sheet
      of the Company provided to Purchaser by the Company.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    (vii) Except
      as
      disclosed in Schedule
      2.1(aa)(vii)
      and in
      subsection (ix) below, no Pension Plan identified in Schedule 2.1(aa)(i)
      hereto
      or trust created thereunder has been terminated or partially terminated by
      the
      Company and the Company has no knowledge of any events which would cause a
      voluntary or involuntary termination of any such Pension Plan.

    

    (viii) Neither
      the Company nor any of its ERISA Affiliates has maintained or contributed to,
      been obligated or required to contribute to, or withdrawn in a partial or
      complete withdrawal from, a “Multiemployer Plan,” as such term is defined in
      Section 4001(a)(3) of ERISA.

    

    (ix) With
      respect to each Pension Plan identified in Schedule 2.1(aa)(i)
      subject
      to Title IV of ERISA (A) neither the Company nor any ERISA Affiliate has
      withdrawn from any such Plan during a plan year in which it was a “substantial
      employer” (within the meaning of Section 4001 (a)(2) of ERISA),
      (B) neither the Company nor any ERISA Affiliate has filed a notice of
      intent to terminate any such Pension Plan or adopted any amendment to treat
      any
      such Pension Plan as terminated, (C) the PBGC has not instituted
      proceedings to terminate any such Pension Plan, and no other event or condition
      has occurred which might constitute grounds under Section 4042 of ERISA for
      the termination of, or the appointment of a trustee to administer, any such
      Pension Plan, (D) no accumulated funding deficiency, whether or not waived,
      exists with respect to any such Pension Plan and no condition has occurred
      or
      exists which by the passage of time would be expected to result in an
      accumulated funding deficiency as of the last day of the current plan year
      of
      any such Pension Plan, (E) all required premium payments to the PBGC have
      been paid when due, (F) no reportable event (as described in
      Section 4043 of ERISA) for which the notice requirements to the PBGC have
      not been waived, has occurred with respect to any such Pension Plan, (G) no
      amendment with respect to which security is required under Section 307 of
      ERISA has been made or is reasonably expected to be made to any Pension Plan,
      and (H) as of the last day of the most recent prior plan year, the market
      value of assets under each such Pension Plan subject to the minimum funding
      standards equaled or exceeded the present value of benefit liabilities
      thereunder as determined in accordance with the actuarial valuation assumptions
      set forth in such Pension Plan.

    

    (x) Except
      as
      required by law or by the terms of an Employee Benefit Plan, the Company has
      not
      proposed or agreed to any changes to any Employee Benefit Plan that would cause
      an increase in benefits under any such Employee Benefit Plan (or the creation
      of
      new benefits or plans) nor to change any employee coverage which would cause
      an
      increase in the expense of maintaining any such Employee Benefit
      Plan.

    

    (xi) No
      Employee Benefit Plan provides benefits or payments based on or measured by
      the
      value of an equity security of or interest in the Company or any ERISA
      Affiliate.

    

    (xii) Except
      as
      disclosed on Schedule
      2.1(aa)(ii),
      no
      Employee Benefit Plan is a plan, agreement or arrangement providing for
      benefits, in the nature of severance benefits, and the Company does not have
      outstanding any liabilities with respect to any severance benefits available
      under any Employee Benefit Plan.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    (bb) Employee
      Matters.

    

    (i) The
      Company has provided to the Purchaser lists all current employees of the Company
      and their hourly rates of compensation or base salaries (as applicable), the
      date of last increase in such compensation or salaries, and all other
      compensation paid to such employees. To the Knowledge of the Company, no
      employee of the Company has any plans to terminate employment with the Company.
      The Company has complied with all Laws relating to the hiring of employees
      and
      the employment of labor, including provisions thereof relating to wages, hours,
      equal opportunity, collective bargaining and the withholding and payment of
      social security and other Taxes.

    

    (ii) Except
      as
      set forth on Schedule 2.1(bb):
      (A) the Company is not delinquent in payments to any of its employees for
      any wages, salaries, commissions, bonuses or other direct compensation for
      any
      services performed by them to date or amounts required to be reimbursed to
      such
      employees and, upon termination of the employment of any such employees, neither
      the Purchaser nor the Company will by reason of any event, fact or circumstance
      occurring or existing prior to the Closing be liable to any of such employees
      for severance pay or any other payments; (B) there is no unfair labor
      practice complaint against the Company pending before the National Labor
      Relations Board or any other Governmental Authority; (C) there is no labor
      strike, material dispute, slowdown or stoppage actually pending or, to the
      Knowledge of the Company, threatened against the Company; (D) the Company
      has not experienced any significant deterioration in its relationship with
      its
      employees; and (E) no labor union currently represents the employees of the
      Company and, to the Knowledge of the Company, no labor union has taken any
      action with respect to organizing the employees of the Company.

    

    (iii) Except
      for payment of the Purchase Price to the Seller, neither the execution and
      delivery of this Agreement nor the consummation of the transactions contemplated
      hereby will: (A) result in any payment (including, without limitation,
      severance, unemployment compensation, golden parachute, bonus or otherwise)
      becoming due to any director or employee of the Company, under any Employee
      Benefit Plan or otherwise; (B) increase any compensation or benefits payable
      under any Employee Benefit Plan or otherwise; or (C) result in the acceleration
      of the time of payment or vesting of any such compensation benefits. No Employee
      Benefit Plan or other arrangement provides benefits or payments contingent
      upon,
      triggered by or increased as a result of a change in the ownership or effective
      control of the Company.

    

    (cc) Bank
      Accounts and Powers of Attorney.
      Schedule 2.1(cc)
      sets
      forth a true and complete list of (i) each bank, broker, or other financial
      institution in or with which the Company has a depository account, investment
      or
      brokerage account, checking account, trust account, escrow account or safe
      deposit box; (ii) all account numbers for such accounts; and (iii) the
      names of all Persons who are authorized signatories on such accounts or who
      otherwise have access thereto. Except as set forth on Schedule 2.1(cc),
      the
      Company has not granted any general or special powers of attorney to act on
      its
      behalf.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    (dd) Brokerage
      Fees.
      The
      Company has not engaged or authorized any broker, investment banker or other
      Person to act on its behalf, directly or indirectly, as a broker or finder
      who
      might be entitled to a fee, commission or other remuneration in connection
      with
      the transactions contemplated by this Agreement.

    

    (ee) Inventory.
      The
      inventory of the Company (including that reflected on the Financial Statements)
      is in merchantable condition, and suitable and usable or salable in the ordinary
      course of business for the purposes for which it was intended, and has been
      reflected on the Financial Statements and carried on the books of account of
      the
      Company in accordance with GAAP applied on a consistent basis. Without limiting
      the generality of the foregoing, such inventory does not include any obsolete
      or
      defective materials or any excess stock items, except as have been reserved
      against as reflected on the Financial Statements or the books of the Company.
      The reserves created by the Company to cover returns have been calculated and
      carried on the books of account of the Company in accordance with GAAP applied
      on a consistent basis.

    

    (ff) Restrictions
      on Business Activities.
      There
      is no agreement, judgment, injunction, order, or decree binding upon the Company
      or any Seller or, to the Knowledge of the Company, any employee of the Company,
      that has or could reasonably be expected to have the effect of prohibiting
      or
      materially impairing any business practice of the Company or the conduct of
      business by the Company as currently conducted or as currently expected to
      be
      conducted by the Company following the Closing.

    

    (gg) Books
      and Records.
      All
      accounts, books, ledgers and official and other records prepared and kept by
      the
      Company are true, complete, and accurate in all material respects and have
      been
      kept in accordance with sound business practices.

    

    (hh) Trade
      Relations.
      Schedule
      2.1(hh)
      sets
      forth the top ten (10) customers and top ten (10) suppliers of the Company
      for
      the year ended December 31, 2007. The Company has not received any written
      or
      oral notice from any material customers of the Company, or any material
      suppliers to the Company, that such customer or supplier intends to terminate,
      cancel or limit or adversely modify or change its business relationship with
      the
      Company. To the Knowledge of the Company, no such termination, cancellation
      or
      limitations or any adverse modification or change will arise as a result of
      the
      execution, delivery, or performance of this Agreement or any Ancillary Documents
      to which the Company is a party.

    

    (ii) Investment
      Company.
      The
      Company is not, and is not an Affiliate of, an “investment company” within the
      meaning of the Investment Company Act of 1940, as amended.

    

    (jj) Application
      of Takeover Protections.
      The
      Company and its Board of Directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s Certificate of
      Incorporation (or similar charter documents) or the laws of its state of
      incorporation that is or could become applicable to the Purchaser as a result
      of
      the Purchaser and the Company fulfilling their obligations or exercising their
      rights under this Agreement and the Ancillary
      Documents,
      including without limitation as a result of the Company’s issuance of the
      Securities and the Purchaser’s ownership of the Shares.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    (kk) No
      Market Manipulation.
      The
      Company and its Affiliates have not taken, and will not take, directly or
      indirectly, any action designed to, or that might reasonably be expected to,
      cause or result in stabilization or manipulation of the price of the Common
      Stock to
      facilitate the sale or resale of the Common Stock or affect the price at which
      the Common Stock may be issued or resold, provided, however, that this provision
      shall not prevent the Company from engaging in investor relations/public
      relations activities consistent with past practices.

     

    (ll) No
      Disagreements with Accountants and Lawyers.
      There
      are no disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between the Company and the accountants and lawyers
      formerly or presently employed by the Company, including but not limited to
      disputes or conflicts over payment owed to such accountants and
      lawyers.

    

    (mm) DTC
      Status.
      The
      Company’s transfer agent is a participant in and the Common Stock is eligible
      for transfer pursuant to the Depository Trust Company Automated Securities
      Transfer Program. The name, address, telephone number, fax number, contact
      person and email address of the Company transfer agent is set forth on
Schedule
      2.1(mm)
      hereto.

    

    (nn) Disclosure.
      No
      representation or warranty made by the Company in this Agreement, nor any
      information contained in any Ancillary Document to be delivered by the Company
      or the Seller pursuant hereto, or any information relating to the Company
      provided or made available to the Purchaser in connection with the transactions
      contemplated hereby, contains any untrue statement of a material fact, or omits
      or will omit to state a material fact necessary to make the statements or facts
      contained herein or therein not misleading in any material respect in light
      of
      the circumstances under which they were made.

     

    2.2 Representations
      and Warranties of the Seller.
      The
      Seller hereby represents and warrants to the Purchaser as follows:

    

    (a) Authority.
      The
      Seller has all necessary power or legal capacity and authority to enter into
      and
      deliver this Agreement and each of the Ancillary Documents to which the Seller
      is a party, to carry out the Seller’s obligations hereunder and under such
      Ancillary Document and to consummate the transactions contemplated hereby and
      by
      such Ancillary Documents. All actions, authorizations, and consents required
      by
      Law for the execution, delivery, and performance by the Seller of this Agreement
      and each Ancillary Document to which the Seller is a party, and the consummation
      of the transactions contemplated hereby and thereby, have been properly taken
      or
      obtained.

    

    (b) Execution
      and Delivery.
      This
      Agreement has been, and each Ancillary Document to which it is a party will
      be
      at the Closing, duly authorized, executed, and delivered by the Seller and
      constitutes, or will constitute at the Closing, a legal, valid and binding
      obligation of the Seller, enforceable against the Seller in accordance with
      their respective terms and conditions, except as enforceability thereof may
      be
      limited by applicable bankruptcy, reorganization, insolvency, or other similar
      laws affecting or relating to creditors’ rights generally or by general
      principles of equity.

     

    
      
         

      

      
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    (c) No
      Conflicts.
      The
      execution, delivery and performance by the Seller of this Agreement and each
      Ancillary Document to which it is a party, and the consummation of the
      transactions contemplated hereby and thereby, do not and will not violate,
      conflict with or result in a breach of any term, condition or provision of,
      or
      require the consent of any Person under, or result in the creation of or right
      to create any Lien upon any of the assets of the Seller under, (i) any Laws
      to
      which the Seller or any of its assets are subject, (ii) any permit, judgment,
      order, writ, injunction, decree, or award of any Governmental Authority to
      which
      the Seller or any of its assets are subject, (iii) the certificate of
      formation or incorporation or the operating agreement or bylaws of the Seller
      (or their equivalent), or (iv) any license, indenture, promissory note, bond,
      credit or loan agreement, lease, agreement, commitment or other instrument
      or
      document to which the Seller is a party or by which the Seller or any of its
      assets are bound. 

    

    (d) Governmental
      Consents.
      No
      consent, approval, order or authorization of, or registration, declaration
      or
      filing with, any Governmental Authority, is required to be obtained by the
      Seller in connection with or as a result of the execution and delivery of this
      Agreement or any of the Ancillary Documents, or the performance of the Seller’s
      obligations hereunder or thereunder.

     

    (e) Organization,
      Standing, and Qualification.
      The
      Seller is a corporation duly organized, validly existing, and in good standing
      under the Laws of the jurisdiction of its organization. The Seller has all
      requisite power and authority to own, lease, and operate its properties and
      to
      carry on its business as now being conducted. 

    

    (f) Ownership.
      The
      Seller owns, beneficially and of record, free and clear of any Liens, such
      number, class, and series of Shares as set forth on Schedule
      2.2(f).
      At the
      Closing, upon delivery of and payment for such Shares as provided in this
      Agreement, all of the Shares owned by the Seller shall be transferred to the
      Purchaser, and the Purchaser shall have good and valid title to the Shares,
      free
      and clear of any Liens. There are no outstanding subscriptions, options,
      warrants, calls, contracts, demands, commitments, convertible or exchangeable
      securities, profits interests, conversion rights, preemptive rights, rights
      of
      first refusal or other rights, agreements, arrangements or commitments of any
      nature whatsoever under which the Seller is or may become obligated to sell,
      assign, or transfer any shares of capital stock of the Company owned by the
      Seller.

    

    (g) Brokerage
      Fees.
      The
      Seller has not engaged or authorized any broker, investment banker, or other
      Person to act on its behalf, directly or indirectly, as a broker or finder
      who
      might be entitled to a fee, commission, or other remuneration in connection
      with
      the transactions contemplated by this Agreement.

    

    2.3 Representations
      and Warranties of the Purchaser.
      The
      Purchaser hereby represents and warrants to the Sellers as follows:

    

    (a) Authority.
      The
      Purchaser has all necessary power and authority to enter into and deliver this
      Agreement and each of the Ancillary Documents to which it is a party, to carry
      out its obligations hereunder and thereunder, and to consummate the transactions
      contemplated hereby and by the Ancillary Documents. All actions, authorizations,
      and consents required by Law for the execution, delivery, and performance by
      the
      Purchaser of this Agreement and each Ancillary Document to which it is a party,
      and the consummation of the transactions contemplated hereby and thereby, have
      been, or prior to the Closing will have been, properly taken or
      obtained.

     

    
      
         

      

      
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    (b) Execution
      and Delivery.
      This
      Agreement has been, and each Ancillary Document to which the Purchaser is a
      party will be at the Closing, duly authorized, executed and delivered by the
      Purchaser and constitutes a legal, valid, and binding obligation of the
      Purchaser, enforceable against the Purchaser in accordance with its terms and
      conditions, except as enforceability thereof may be limited by applicable
      bankruptcy, reorganization, insolvency or other similar laws affecting or
      relating to creditors’ rights generally or by general principles of
      equity.

    

    (c) No
      Conflicts.
      The
      execution, delivery, and performance by the Purchaser of this Agreement and
      each
      Ancillary Document to which it is a party, and the consummation of the
      transactions contemplated hereby and thereby, do not and will not violate,
      conflict with or result in a breach of any term, condition or provision of,
      or
      require the consent of any Person under, or result in the creation of or right
      to create any Lien upon any of the assets of the Purchaser under, (i) any Laws
      to which the Purchaser or any of its assets are subject, (ii) any judgment,
      order, writ, injunction, decree or award of any Governmental Authority to which
      the Purchaser or any of its assets are subject, (iii) the Certificate of
      Incorporation or Bylaws of the Purchaser, or (iv) any license, indenture,
      promissory note, bond, credit or loan agreement, lease, agreement, commitment
      or
      other instrument or document to which the Purchaser is a party or by which
      any
      of its assets are bound, except where, in the case of clause (iv), such
      violation, conflict, breach, etc. would not, individually or in the aggregate,
      have a Material Adverse Effect on the Purchaser. 

    

    (d) Governmental
      Consents.
      No
      consent, approval, order or authorization of, or registration, declaration
      or
      filing with, any Governmental Authority, is required to be obtained by the
      Purchaser in connection with or as a result of the execution and delivery of
      this Agreement or any of the Ancillary Documents, or the performance of its
      obligations thereunder.

    

    (e) Organization,
      Standing and Qualification.
      The
      Purchaser is a corporation duly incorporated, validly existing, and in good
      standing under the Laws of the State of Nevada. The Purchaser has all requisite
      power and authority to own, lease, and operate its properties and to carry
      on
      its business as now being conducted. 

    

    (f) Brokerage
      Fees.
      The
      Purchaser has not engaged or authorized any broker, investment banker, or other
      Person to act on its behalf, directly or indirectly, as a broker or finder
      who
      might be entitled to a fee, commission, or other remuneration in connection
      with
      the transactions contemplated by this Agreement.

     

    
      
         

      

      
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    ARTICLE
      III

    

    CERTAIN
      COVENANTS

    

    3.1 Conduct
      of Business Pending the Closing.
      The
      Company hereby covenants and agrees that, prior to the Closing, except as
      contemplated by this Agreement or as set forth in Schedule 3.1,
      it
      shall (and each of the Sellers hereby covenants and agrees to cause the Company
      to comply with the provisions of this Section 3.1):

    

    (a) conduct
      its business in the usual, regular and ordinary course consistent with recent
      past practice and use its commercially reasonable efforts to take, or refrain
      from taking, as the case may be, any action which would cause the
      representations and warranties made in Section 2.1,
      including, without limitation, Section 2.1(o),
      to
      become untrue or inaccurate; and

    

    (b) use
      its
      commercially reasonable efforts to maintain and preserve its business
      organization and relationships with its customers, vendors, suppliers and others
      having business dealings with it and retain the services of its officers and
      employees.

    

    3.2 No
      Solicitation.
      The
      Company shall not, and the Seller shall not, directly or indirectly (through
      their respective Affiliates, employees, agents or representatives), initiate
      contact with, solicit, encourage, respond to or participate in any way in
      discussions or negotiations with, or provide any information or assistance
      to,
      or take any other action intended or designed to facilitate the efforts of
      (including without limitation, the execution of any letter of intent, term
      sheet
      or definitive agreement), any Person other than the Purchaser concerning any
      acquisition of equity interests in the Company or any significant portion of
      the
      assets of the Company (including by merger or other similar transaction). The
      Company or the Seller shall promptly notify the Purchaser if they are contacted
      or approached in respect of any such transaction, as well as the material terms
      of the proposed transaction and the identity of the contacting party.

    

    3.3 Reasonable
      Efforts; Assurances.
      Upon
      the terms and subject to the conditions of this Agreement, each of the parties
      hereto shall use all reasonable efforts to take or cause to be taken all action,
      and to do or cause to be done, and to assist and cooperate with the other
      parties in doing, all things necessary, proper or advisable to consummate and
      make effective as promptly as practicable the transactions contemplated by
      this
      Agreement, including using commercially reasonable efforts to (a) obtain
      all consents or approvals required or desirable in connection with the
      transactions contemplated hereby, (b) effect promptly all necessary or
      appropriate registrations or filings with any Governmental Authorities, and
      (c) fulfill or cause the fulfillment of the conditions to Closing set forth
      in Article
      IV.
      The
      parties shall use their respective reasonable efforts to consummate the
      transactions contemplated by this Agreement on or before April 30, 2008, and
      agree to act in good faith with respect to the consummation of such
      transactions. In case at any time after the Closing Date any further action
      is
      reasonably necessary or desirable to carry out the purposes of this Agreement,
      each of the parties hereto shall take such further action without additional
      consideration.

     

    
      
         

      

      
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    3.4 Access
      and Information.

    

    (a) Prior
      to
      the Closing, the Company shall afford to the Purchaser and its accountants,
      counsel, and other representatives full access upon reasonable prior notice
      and
      during normal business hours to all of the Company’s properties, books,
      accounts, records, contracts, and personnel and, during such period, the Company
      shall, and shall cause its accountants, counsel, and other representatives
      to,
      furnish promptly to the Purchaser and its representatives all information
      concerning the Company’s business, properties and personnel as the Purchaser or
      its representatives may reasonably request; provided,
      however,
      that
      such investigation shall be conducted in a manner so as to minimize any
      unreasonable disruptions to the operations of the business and, consistent
      with
      the confidential nature of the transaction, the Purchaser shall not contact
      any
      customers or employees of the Company without the prior consent of the Company.
      

    

    (b) From
      time
      to time for a period of three (3) years after the Closing, the Purchaser shall
      afford, and shall cause the Company to afford, upon reasonable prior notice
      and
      during normal business hours of the Company, to the Seller and its accountants,
      counsel, and other representatives access to the books, records, and personnel
      of the Company with respect to matters relating to the operations of the Company
      prior to the Closing Date to the extent that they have a legitimate business
      purpose for the same (e.g., for Tax purposes or for purposes of defending
      claims) and provided that such access does not unreasonably interfere with
      the
      operations of the Company.

    

    3.5 Notification
      of Certain Matters.
      The
      Company and Purchaser shall promptly notify each other in writing:

    

    (a) if,
      subsequent to the date of this Agreement and prior to the Closing Date, either
      of them becomes aware of the occurrence of any event or the existence of any
      fact that would render any of the representations and warranties made by it
      (and, in case of the Company, made by the Seller) in Sections 2.1,
      2.2
      or
2.3,
      as the
      case may be, if made on or as of the date of such event or the Closing Date,
      inaccurate or untrue (other than with respect to representations and warranties
      made as of a specified date); 

    

    (b) of
      any
      breach by either of them of any of its (and, in case of the Company, the
      Seller’s) covenant or agreement contained in this Agreement;

    

    (c) of
      any
      notice or other communication from any third party alleging that the consent
      of
      such third party is or may be required in connection with the transactions
      contemplated by this Agreement; 

    

    (d) of
      any
      notice or other communication from any Governmental Authority in connection
      with
      or relating to the transactions contemplated hereby; or 

    

    (e) if
      the
      Company or the Seller become aware of any material deterioration in the
      relationship with any customer, supplier, or employee of the
      Company.

     

    
      
         

      

      
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    3.6 Public
      Announcements.
      No
      party will issue or make or cause the publication of, any press release or
      other
      public announcement with respect to this Agreement or the transactions
      contemplated hereby without the prior written consent of the other parties
      hereto; provided,
      however,
      that
      nothing herein will prohibit any party from issuing, making, or causing the
      publication of any such press release or public announcement to the extent
      that
      such party is advised by its legal counsel that such action is required by
      Law,
      in which case the party making such determination will use reasonable efforts
      to
      allow the other parties reasonable time to review and comment on such release
      or
      announcement in advance. For the purposes of this Section, the Company shall
      be
      entitled to give such prior written consent on behalf of the
      Seller.

    

    3.7 Transfer
      Taxes.
      The
      Seller shall pay all transfer taxes, if any, payable in connection with the
      consummations of the transactions contemplated by this Agreement.

    

    3.8 Further
      Assurances; Cooperation.
      Each
      party hereto will, before, at, and after the Closing, execute and deliver such
      instruments and take such other actions as the other party or parties, as the
      case may be, may reasonably require in order to carry out the intent of this
      Agreement. Without limiting the generality of the foregoing, at any time after
      the Closing, at the request of the Company or the Purchaser, and without further
      consideration, the Seller (a) will execute and deliver such instruments of
      sale,
      transfer, conveyance, assignment and confirmation and take such action as the
      Company or the Purchaser may reasonably deem necessary or desirable in order
      to
      more effectively transfer, convey and assign to the Purchaser, and to confirm
      the Purchaser’s title to, the Shares, and (b) will execute such documents, take
      such action, and provide such assistance (and shall cause its agents and
      representatives to provide such assistance) as the Company or the Purchaser
      may
      reasonably deem necessary or desirable in order to prepare and file any future
      SEC Documents that the Company seeks to file with the SEC under the Securities
      Act or the Exchange Act.

    

    ARTICLE
      IV

    

    CONDITIONS
      TO CLOSING

    

    4.1 Conditions
      to Obligation of the Seller.
      The
      obligation of the Seller to consummate the transactions contemplated hereby
      shall be subject to the satisfaction on or prior to the Closing of the following
      conditions (any of which may be waived on behalf of the Seller in writing by
      the
      Company):

    

    (a) the
      Purchaser shall have performed and complied with all obligations and agreements
      required to be performed and complied with by it hereunder on or prior to the
      Closing;

    

    (b) the
      representations and warranties of the Purchaser contained in this Agreement
      shall be true and correct as of the Closing Date as if made as of such date
      (other than those representations and warranties that address matters only
      as of
      a particular date or only with respect to a specific period of time, which
      need
      only be true and correct as of such date or with respect to such
      period);

     

    
      
         

      

      
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    (c) there
      shall be no order, decree, or ruling by any Governmental Authority nor any
      action, suit, claim or proceeding by or before any Governmental Authority shall
      be pending, which seeks to restrain, prevent or materially delay or restructure
      the transactions contemplated hereby or by any Ancillary Document, or which
      otherwise questions the validity or legality of any such
      transactions;

    

    (d) there
      shall be no statute, rules, regulation, or order enacted, entered, or enforced
      or deemed applicable to the transactions contemplated hereby which would
      prohibit or, render illegal the transactions contemplated by this Agreement
      or
      the Ancillary Documents; 

    

    (e) each
      of
      the documents to be delivered by the Purchaser pursuant to Section 5.3
      shall
      have been so delivered by the Purchaser at the Closing.

    

    4.2 Conditions
      to Obligation of the Purchaser.
      The
      obligation of the Purchaser to consummate the transactions contemplated hereby
      shall be subject to the satisfaction on or prior to the Closing of the following
      conditions (any of which may be waived in writing by the
      Purchaser):

    

    (a) the
      Seller and the Company shall have performed or complied with all obligations
      and
      agreements required to be performed or complied with by any of them hereunder
      on
      or prior to the Closing (including, without limitation, those specified in
      Section
      5.2);

    

    (b) the
      representations and warranties of the Seller and the Company contained in this
      Agreement shall be true and correct as of the Closing Date as if made as of
      such
      date (other than those representations and warranties that address matters
      only
      as of a particular date or only with respect to a specific period of time,
      which
      need only be true and correct as of such date or with respect to such
      period);

    

    (c) there
      shall be no order, decree, or ruling by any Governmental Authority nor any
      action, suit, claim, or proceeding by or before any Governmental Authority
      shall
      be pending, which seeks to restrain, prevent, or materially delay or restructure
      the transactions contemplated hereby or any Ancillary Document, or which
      otherwise questions the validity or legality of any such
      transactions;

    

    (d) there
      shall be no statute, rules, regulation, or order enacted, entered, or enforced
      or deemed applicable to the transactions contemplated hereby which would
      prohibit or render illegal the transactions contemplated by this Agreement
      or
      the Ancillary Documents;

    

    (e) the
      Company and the Seller shall have obtained on terms and conditions satisfactory
      to the Purchaser all consents and approvals of third parties (including
      Governmental Authorities) that are required (i) for the consummation of the
      transactions contemplated hereby or any Ancillary Document, or (ii) in
      order to prevent a breach of, a default under or a termination, material change
      in the terms or conditions or material modification of, any Material Agreement
      as a result of the consummation of the transactions contemplated hereby;

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    (f) the
      Company and the Seller shall have delivered evidence
      satisfactory to the Purchaser that all Liabilities of the Company have been
      satisfied, compromised, or otherwise extinguished as of the Closing;
      and

    

    (g) each
      of
      the documents to be delivered by Sellers or the Company pursuant to Section 5.2
      shall
      have been so delivered by Sellers or the Company at the Closing.

    

    ARTICLE
      V

    

    CLOSING

    

    5.1 Closing.
      The
      closing of the transactions contemplated hereby (the “Closing”)
      shall
      take place at the offices of Indeglia & Carney, 1900 Main Street, Suite 125,
      Irvine, California 92614, as soon as practicable but in no event later than
      10:00 a.m., Pacific time, on the third (3rd) Business Day after the date on
      which each of the conditions set forth in Sections 4.1
      and
4.2
      have
      been satisfied or waived by the party or parties entitled to the benefit of
      such
      conditions, or at such other place, at such other time or on such other date
      as
      the parties may mutually agree. The date on which the closing actually occurs
      is
      referred to herein as the “Closing
      Date”.

    

    5.2 Deliveries
      by the Seller and the Company.
      Subject
      to the terms and conditions hereof, the Seller and the Company shall deliver
      the
      following to the Purchaser at or before the Closing:

    

    (a) certificates,
      duly endorsed for transfer or accompanied by a duly executed blank stock power,
      in
      either
      case with medallion signature guarantees,
      and with
      evidence of payment of any applicable stamp or transfer taxes, representing
      all
      of the Shares;

    

    (b) certified
      resolutions of the Seller’s board of directors authorizing the transactions
      contemplated by this Agreement and the endorsement and negotiation of the
      certificates representing all of the Shares;

    

    (c) the
      corporate minute book of the Company, including the articles of incorporation,
      as amended, the bylaws, as amended, all minutes of the stockholders, board
      of
      directors, and committees thereof, and the corporate seal;

    

    (d) all
      stock
      ledgers for all series of preferred stock of the Company;

    

    (e) a
      certified list of common stockholders from the Company’s transfer agent, dated
      as of the date of Closing;

    

    (f) all
      accounting books and records for the Company commencing January 1, 2001 through
      the present;

    

    (g) all
      SEC
      EDGAR codes for the Company;

     

    
      
         

      

      
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    (h) resolutions
      of the board of directors appointing Frank Marshik as a director of the Company,
      effective as of the Closing;

    

    (i) resignations
      of all officers and directors of the Company, effective [as of the
      Closing];

    

    (j) a
      letter
      of instruction to the Company’s transfer agent signed by Steven Bonenberger on
      behalf of the Company advising the transfer agent of the change of officers
      and
      directors contemplated by this Agreement;

    

    (k) a
      letter
      to the Company’s current certifying accountants signed by Steven Bonenberger on
      behalf of the Company advising the certifying accountants of the change of
      officers and directors contemplated by this Agreement;

    

    (l) evidence
      satisfactory to the Purchaser that all Liabilities of the Company have been
      satisfied, compromised, or otherwise extinguished as of the
      Closing;

    

    (m) evidence
      that the Company and/or the Seller have obtained on terms and conditions
      reasonably satisfactory to the Purchaser all consents and approvals of third
      parties (including Governmental Authorities) that are required (i) for the
      consummation of the transactions contemplated hereby or (ii) in order to prevent
      a material breach of, a default under or a termination, material change in
      the
      terms or conditions or material modification of, any Material Agreement as
      a
      result of the consummation of the transaction contemplated hereby;
      and

    

    (n) certificates
      of the Company and the Seller, in form and substance reasonably satisfactory
      to
      the Purchaser, dated the Closing Date, certifying compliance with the conditions
      set forth in Sections 4.2(a)
      and
4.2(b).

     

    5.3 Actions
      or Deliveries by the Purchaser.
      Subject
      to the terms and conditions hereof, the Purchaser shall deliver the following
      to
      the Seller at or before the Closing:

    

    (a) the
      Purchase Price in accordance with Section
      1.3;
      and

    

    (b) a
      certificate of the Purchaser, in form and substance reasonably satisfactory
      to
      the Seller, dated the Closing Date and signed by the President of the Purchaser
      evidencing compliance with the conditions set forth in Sections
      4.1(a)
      and
4.1(b).

    

    5.4 Other
      Documents.
      The
      parties agree to execute and deliver on or before the Closing all other
      documents that are reasonably necessary or desirable in order to consummate
      the
      transactions contemplated hereby and to carry out the intent of this
      Agreement.

    

    5.5 Expenses.
      Except
      as otherwise specifically provided herein, the Seller and the Company, on one
      hand, and the Purchaser, on the other hand, shall pay their own expenses,
      including, but not limited to, attorneys’, accountants’, financial advisors’ and
      brokers’ or finders’ fees, incurred in connection with the transactions
      contemplated hereby (“Expenses”).
      It is
      the express intention of the parties that the Seller shall personally be
      responsible for all Expenses incurred by the Company, its Affiliates, or their
      respective agents in connection with the transactions contemplated hereby.
      

     

    
      
         

      

      
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    ARTICLE
      VI

    

    TERMINATION

    

    6.1 Termination.
      This
      Agreement may be terminated at any time prior to the Closing:

    

    (a) by
      mutual
      consent of the Purchaser and the Seller;

    

    (b) by
      either
      the Purchaser or the Seller if the Closing shall not have been consummated
      on or
      before April 30, 2008 (provided that the terminating party is not otherwise
      in
      material breach of its obligations under this Agreement), which date may be
      extended by written agreement of the Purchaser and the Seller; or

    

    (c) by
      either
      the Purchaser or the Seller, if a permanent injunction or other order by any
      Federal or state court which would make illegal or otherwise restrain or
      prohibit the consummation of the transactions contemplated hereby shall have
      been issued and shall have become final and non-appealable.

    

    6.2 Effect
      of Termination.
      In the
      event of the termination of this Agreement in accordance with this Article
      VI,
      this
      Agreement shall thereafter become void and there shall be no liability on the
      part of any party hereto or their respective directors, officers, stockholders
      or agents, except that any such termination shall be without prejudice to the
      rights of any party hereto arising out of any breach by any other party of
      this
      Agreement.

    

    ARTICLE
      VII

    

    INDEMNIFICATION

    

    7.1 Survival;
      Indemnity.
      The
      representations, warranties, covenants, and agreements of the parties contained
      in this Agreement, and the indemnification rights set forth in this Article
      VII,
      shall
      survive the Closing. Notwithstanding the foregoing, the representations and
      warranties of the parties shall only so survive until the third anniversary
      of
      the Closing Date; provided,
      however,
      that
      the representations and warranties contained in (A) Section 2.1(a),
      (b), (e)
      (but
      only with respect to due organization) or (f)
      shall
      survive in perpetuity, and (B) Section
      2.1(w), (z), or (aa)
      shall
      survive until sixty (60) days after the expiration of the applicable statute
      of
      limitations (the period from the Closing Date to such applicable date is
      hereinafter referred to as the “Survival
      Period”).
      Nothing contained in the foregoing sentence shall prevent recovery under this
      Article after the expiration of the Survival Period so long as the party making
      a claim or seeking recovery complies with the provisions of clause (x) and
      (y)
      of the following sentence. No party shall have any claim or right of recovery
      for any breach of a representation, warranty, covenant, or agreement unless
      (x)
      written notice is given in good faith by that party to the other party of the
      representation, warranty, covenant, or agreement pursuant to which the claim
      is
      made or right of recovery is sought setting forth in reasonable detail the
      basis
      for the purported breach of the representation, warranty, covenant, or
      agreement, the amount or nature of the claim being made, if then ascertainable,
      and the general basis therefor and (y) such notice is given prior to the
      expiration of the Survival Period. 

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    7.2 General
      Indemnification by the Seller and the Company.
      The
      Seller and the Company, jointly and severally, agree to indemnify the Purchaser
      and its officers, directors, shareholders, employees, Affiliates, attorneys,
      accountants and agents (the “Purchaser
      Parties”),
      and
      hold them harmless from and against any and all damages, losses, liabilities,
      costs, and expenses (including, without limitation, reasonable expenses of
      investigation and reasonable attorneys’ fees and expenses in connection with any
      action, suit or proceeding) (collectively, “Purchaser
      Damages”)
      incurred or suffered by the Purchaser Parties as a result of any breach or
      inaccuracy of any representation, warranty, covenant, or agreement of the Seller
      or the Company contained in this Agreement, or any certificate delivered by
      the
      Seller or the Company pursuant to this Agreement. 

     

    7.3 Indemnification
      by Purchaser.
      The
      Purchaser agrees to indemnify the Seller from and after the Closing and to
      hold
      the Seller and its officers, directors, stockholders, employees, Affiliates,
      attorneys, accountants and agents (the “Seller
      Parties”)
      harmless from and against any and all damages, losses, liabilities, costs,
      and
      expenses (including, without limitation, reasonable expenses of investigation
      and reasonable attorneys ‘ fees and expenses in connection with any action, suit
      or proceeding) (collectively, “Seller
      Damages”)
      incurred or suffered by the Seller Parties arising out of any breach of any
      representation, warranty, covenant or agreement of the Purchaser. 

    

    7.4 Indemnification
      Procedures

    

    (a) Notification
      of Claims.
      Upon
      any party (the “Indemnified
      Party”)
      becoming aware of a fact, condition, or event that constitutes a basis for
      a
      claim for Purchaser Damages or Seller Damages, as the case may be, in respect
      thereof against the other party (the “Indemnifying
      Party”)
      under
Section 7.2
      or
7.3,
      if such
      a claim is to be made, the Indemnified Party will with reasonable promptness
      and
      specificity notify the Indemnifying Party or Parties in writing of such fact,
      condition or event. The failure to notify the Indemnifying Party or Parties
      under this Section
      7.4
      shall
      not relieve any Indemnifying Party of any liability that it may have to the
      Indemnified Party except to the extent that such failure to notify shall have
      resulted in a waiver of any lawful and valid affirmative defense to any
      third-party claim or otherwise materially prejudices the Indemnifying Party
      or
      Parties in connection with the administration or defense of such third-party
      claim.

    

    (b) Third-Party
      Claims.

    

    (i) Upon
      receipt by the Indemnifying Party or Parties of any notice of claim for
      indemnification hereunder arising from a third-party claim, the Indemnifying
      Party or Parties shall assume the administration and defense of such third-party
      claim with counsel that is reasonably satisfactory to the Indemnified Party
      and
      shall proceed with the administration and defense of such third-party claim
      diligently and in good faith; provided,
      however,
      that
      any Indemnifying Party shall be entitled to assume the administration and
      defense of such third-party claim only if it agrees in writing with the
      Indemnified Party that it is obligated to indemnify the Indemnified Party
      pursuant to this Article with respect to such third-party claim; and
provided,
      further
      that no
      Indemnifying Party shall be entitled to assume the administration and defense
      of
      any third-party claim that (A) seeks an injunction or other equitable relief
      that might materially and adversely affect any Indemnified Party, or (B)
      involves any criminal action or any claim that could reasonably be expected
      to
      result in a criminal action against any Indemnified Party. Each parties’ counsel
      in connection with this transaction shall be deemed to be reasonably
      satisfactory to the other party for purposes of this Section
      7.4(b)(i).
      The
      Indemnified Party shall be fully consulted by the Indemnifying Party or Parties
      and shall have the right to participate, at its own expense, in the
      investigation, administration and defense of such third-party claim. Any party
      hereto receiving notice of any proposed settlement of any such third-party
      claim
      shall promptly provide a copy of such notice to the other parties hereto. The
      Indemnifying Party or Parties shall not have the right to settle or compromise
      any third-party claim for which indemnification is being sought hereunder
      without the consent of the Indemnified Party unless as a result of such
      settlement or compromise the Indemnified Party is fully discharged and released
      from any and all liability with respect to such third-party claim. The
      Indemnified Party shall make available to the Indemnifying Party or Parties
      and
      its counsel all books, records, documents and other information relating to
      any
      third-party claim for which indemnification is sought hereunder, and the parties
      to this Agreement shall render to each other reasonable assistance in the
      defense of any such third-party claim.

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

    (ii) Notwithstanding
      any other provision of this Agreement, if the Indemnified Party is not entitled
      to defend a third-party claim under Section
      7.4(b)(i),
      the
      Indemnified Party shall have the absolute right, at its election (to be
      exercised in its sole discretion by written notice to the Indemnifying Party
      or
      Parties) to assume from the Indemnifying Party or Parties the administration
      and
      defense of any such third-party claim against the Indemnified Party with counsel
      that is reasonably satisfactory to the Indemnifying Party. In such event, the
      Indemnified Party shall proceed with the administration and defense of such
      third-party claim(s) diligently and in good faith, and the Indemnifying Party
      shall be fully consulted by the Indemnified Party or Parties and shall have
      the
      right to participate, at its own expense, in the investigation, administration
      and defense of such third-party claim. The Indemnifying Party or Parties shall
      be responsible for the costs and expenses of the administration and defense
      of
      such claim(s) incurred prior to the Indemnified Party or Parties’ assumption of
      the administration and defense of such claim(s) and shall not be responsible
      for
      costs and expenses incurred after such assumption, and the Indemnifying Party
      shall have the right to participate in, but not control, the defense of such
      claim(s) at the sole cost and expense of the Indemnifying Party.

     

    ARTICLE
      VIII

    

    DEFINITIONS

    

    8.1 Certain
      Definitions.
      For
      purposes of this Agreement, the following terms and phrases shall have the
      following meanings:

    

    “Affiliate”
shall
      have the meaning ascribed to it in Rule 405 promulgated under the Securities
      Act.

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

    “Business
      Day”
shall
      mean any Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on
      which banking institutions in the State of New York are authorized by law,
      regulation or executive order to close.

    

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

    

    “Employee
      Benefit Plan”
shall
      mean any “employee benefit plan” as defined in Section 3(3) of ERISA and any
      other plan, policy, program, practice, agreement, understanding or arrangement
      (whether written or unwritten) providing compensation or other benefits to
      any
      current or former director, officer, employee or consultant (or to any dependent
      or beneficiary thereof), of the Company or any ERISA Affiliate, which are now,
      or were within the past six years, maintained by the Company or any ERISA
      Affiliate, or under which the Company or any ERISA Affiliate has or could have
      any obligation or liability, whether actual or contingent (and including,
      without limitation, any liability arising out of an indemnification, guarantee,
      hold harmless or similar agreement), including, without limitation, all
      incentive, bonus, deferred compensation, vacation, holiday, cafeteria, medical,
      disability, stock purchase, stock option, stock appreciation, phantom stock,
      restricted stock or other stock-based compensation plans, policies, programs,
      practices or arrangements. 

    

    “Environmental
      Law”
shall
      mean any federal, state, local or foreign law (including any common law),
      statute, code, ordinance, rule, regulation or other requirement relating to
      the
      environment, natural resources or public or employee health and safety, and
      includes, but not limited to, CERCLA, the Hazardous Materials Transportation
      Act, 49 U.S.C. § 1801 et seq., as amended, the Resource Conservation and
      Recovery Act, 42 U.S.C. § 6901 et seq., as amended, the Clean Water Act, 33
      U.S.C. § 2601 et seq., as amended, the Clean Air Act, 42 U.S.C. § 7401 et seq.,
      as amended, the Toxic Substances Control Act, 15 U.S.C. § 6901 et seq., as
      amended, the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C.
§ 136
      et seq., as amended, the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq., as
      amended, the New York Navigation Law, as amended, and the Occupational Safety
      and Health Act, 29 U.S.C. § 6901 et seq., as amended.

    

    “Environmental
      Costs and Liabilities”
shall
      mean any and all losses, liabilities, obligations, damages, fines, penalties,
      judgments, actions, claims, costs and expenses (including, without limitation,
      fees, disbursements and expenses of legal counsel, experts, engineers and
      consultants and the costs of investigation and feasibility studies and remedial
      activities) arising from or under any Environmental Law or order or contract
      with any Governmental Authority or any other Person.

    

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

    

    “ERISA
      Affiliate”
shall
      mean any entity that, together with the Company, is or was treated as a single
      employer under Section 414(b), (c) or (m) of the Code.

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    

    “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

    

    “GAAP”
shall
      mean generally accepted accounting principles as in effect in the United
      States.

    

    “Governmental
      Authority”
shall
      mean any court, administrative agency or commission or other governmental
      authority or instrumentality, domestic or foreign.

    

    “Hazardous
      Materials”
shall
      mean any petroleum or petroleum products, radioactive materials,
      asbestos-containing materials, radon gas, PCBs and any other hazardous or toxic
      substance, material or waste which is or becomes prior to the Closing regulated
      under, or defined as a “hazardous substance,” “pollutant,” “contaminant,”
“hazardous waste,” “toxic chemical,” “hazardous materials,” “toxic substance” or
“hazardous chemical” under any Environmental Law.

    

    “Knowledge
      of the Company”
shall
      mean the actual knowledge of Steven Bonenberger and Brent Fouch, upon due
      inquiry.

    

    “Laws”
shall
      mean all applicable statutes, rules, regulations, ordinances, orders, writs,
      injunctions, judgements, decrees, awards or restrictions of any governmental
      entity.

    

    “Liabilities”
shall
      mean any liability or obligation, including without limitation, any direct
      or
      indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency,
      cost, expense, obligation or responsibility, whether known or unknown, fixed
      or
      unfixed, choate or inchoate, liquidated or unliquidated, secured or
      unsecured.

    

    “Liens”
shall
      mean any security interest, mortgage, lien, charge, claims, option and
      encumbrance.

    

    “Material
      Adverse Effect”
used
      in
      connection with a party shall mean any event, change or effect that is or is
      reasonably likely to become materially adverse to the condition (financial
      or
      otherwise), properties, assets, liabilities, businesses, operations, results
      of
      operations or prospects of such party and its subsidiaries, if any, on a
      consolidated basis.

    

    “Pension
      Plan”
shall
      mean any qualified or non-qualified Employee Pension Benefit Plan (including,
      any Multiemployer Plan), as such term is defined in Section 3(2) of
      ERISA.

    

    “Person”
shall
      mean any individual, firm, corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, joint stock company, governmental
      entity of any kind.

    

    “Pre-Closing
      Period”
shall
      mean all taxable periods ending on or before the Closing Date and the portion
      ending on or before the Closing Date of any taxable period that includes (but
      does not end on) the Closing Date. 

    

    “SEC”
shall
      mean the United States Securities and Exchange Commission.

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    “SEC
      Documents”
shall
      mean all reports and registration statements filed, or required to be filed,
      by
      the Company pursuant to the Securities Laws.

    

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

    

    “Securities
      Laws”
shall
      mean the Securities Act; the Exchange Act; the Investment Company Act of 1940,
      as amended; the Investment Advisers Act of 1940, as amended; the Trust Indenture
      Act of 1939, as amended; and the rules and regulations of the SEC promulgated
      thereunder.

    

    “Subsidiary”
shall
      mean, as to any Person, any corporation, partnership, limited liability company
      or other entity which securities or other ownership interests having ordinary
      voting power to elect a majority of the board of directors, the general managers
      or other persons performing similar functions, are at the time directly or
      indirectly owned by such Person; unless otherwise specified, “Subsidiary” means
      a Subsidiary of the Company.

    

    “Taxes”
shall
      mean taxes, fees, levies, duties, tariffs, imposts, and governmental impositions
      or charges of any kind in the nature of (or similar to) taxes, payable to any
      federal, state, local or foreign taxing authority, including (without
      limitation) (i) income, franchise, profits, gross receipts, ad
      valorem,
      net
      worth, value added, sales, use, service, real or personal property, special
      assessments, capital stock, license, payroll, withholding, employment, social
      security, workers’ compensation, unemployment compensation, utility, severance,
      production, excise, stamp, occupation, premiums, windfall profits, transfer
      and
      gains taxes, and (ii) interest, penalties, additional taxes and additions to
      tax
      imposed with respect thereto. 

    

    “Welfare
      Plan”
shall
      mean any Employee Welfare Benefit Plan, as such term is defined in Section
      3(1)
      of ERISA.

    

    8.2 Other
      Defined Terms.
      Each of
      the following terms have the meaning assigned to it in the Section
      indicated:

    

      
        	
                Term

              	 	
                Section

              
	
                Agreement

              	 	
                First
                  Paragraph

              
	
                Ancillary
                  Documents

              	 	
                2.1(a)

              
	
                Balance
                  Sheet Date

              	 	
                2.1(n)

              
	
                CERCLA

              	 	
                2.1(r)

              
	
                Closing

              	 	
                5.1

              
	
                Closing
                  Date

              	 	
                5.1

              
	
                Company

              	 	
                First
                  Paragraph

              
	
                Evaluation
                  Date

              	 	
                2.1(l)

              
	
                Expenses

              	 	
                5.5

              
	
                Financial
                  Statements

              	 	
                2.1(j)

              
	
                Indemnified
                  Party

              	 	
                7.4(a)

              
	
                Indemnified
                  Plans

              	 	
                7.2(b)

              
	
                Indemnifying
                  Party

              	 	
                7.4(a)

              
	
                IRS

              	 	
                2.1(v)

              

      

       

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

       

      
        	
                Material
                  Agreements

              	 	
                2.1(o)

              
	
                Organizational
                  Documents

              	 	
                2.1(e)

              
	
                PBGC

              	 	
                2.1(v)

              
	
                Proprietary
                  Rights

              	 	
                2.1(n)

              
	
                Purchase
                  Price

              	 	
                1.2

              
	
                Purchaser

              	 	
                First
                  Paragraph

              
	
                Purchaser
                  Damages

              	 	
                7.2

              
	
                Purchaser
                  Parties

              	 	
                7.2

              
	
                Real
                  Property

              	 	
                2.1(n)

              
	
                Receivables

              	 	
                2.1(l)

              
	
                Related
                  Party

              	 	
                2.1(s)

              
	
                Seller

              	 	
                First
                  Paragraph

              
	
                Seller
                  Damages

              	 	
                7.3

              
	
                Seller
                  Parties

              	 	
                7.3

              
	
                Shares

              	 	
                Recitals

              
	
                Survival
                  Period

              	 	
                7.1

              
	
                Tax
                  Returns

              	 	
                2.1(u)

              

      

    

     

    ARTICLE
      IX

    

    MISCELLANEOUS

    

    9.1 Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if delivered personally (including delivery
      by
      courier service), transmitted by telecopy or mailed by registered or certified
      mail, postage prepaid, return receipt requested, or sent by a nationally
      recognized overnight courier service, as follows:

    

    
      	
            	(a)	
              If
                to the Purchaser, to:

            

    

    

    Terminus,
      Inc.

    c/o
      Indeglia & Carney

    1900
      Main
      Street, Suite 125

    Irvine,
      CA 92614

    Telecopy:
      (949) 851-5940

    

    
      	
            	(b)	
              If
                to the Company or the Seller, to:

            

    

    

    Before
      the Closing:

    

    The
      Blackhawk Fund

    120
      Birmingham Drive, Suite 120-C

    Cardiff,
      CA 92007

    Telecopy:____________________

    

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    After
      the
      Closing:

    

    Palomar
      Enterprises, Inc.

    120
      Birmingham Drive, Suite 120-C

    Cardiff,
      CA 92007

    Telecopy:____________________

    

    or
      to
      such other address as the Person to whom notice is to be given may have
      previously furnished to the other parties in writing in accordance herewith.
      Notice shall be deemed given on the date received (or, if receipt thereof is
      refused, on the date of such refusal).

    

    9.2 Amendments
      and Waivers.
      This
      Agreement may not be amended, modified, or supplemented except by written
      agreement of the parties hereto. No waiver by any party of any non-compliance,
      default, misrepresentation or breach of warranty or covenant hereunder, whether
      intentional or not, shall be deemed to extend to any prior or subsequent
      non-compliance, default, misrepresentation or breach of warranty or covenant
      hereunder or affect in any way any rights arising by virtue of any prior or
      subsequent such occurrence.

    

    9.3 Interpretation.
      The
      headings preceding the text of Articles and Sections included in this Agreement
      and the headings to Exhibits and Schedules attached to this Agreement are for
      convenience only and shall not be deemed part of this Agreement or be given
      any
      effect in interpreting this Agreement. The use of the masculine, feminine or
      neuter gender herein shall not limit any provision of this Agreement. The use
      of
      the terms “including” or “include” shall in all cases herein mean “including,
      without limitation” or “include, without limitation,” respectively. References
      to any “Article,” “Section,” “Exhibit,” or “Schedule” shall refer to an Article
      or Section of, or an Exhibit or Schedule to, this Agreement. In any case where
      the concept of materiality is applied more than once to qualify any provision
      of
      this Agreement (whether by cross-referencing or incorporation or otherwise),
      such provision shall be interpreted as if only one, but the broadest one, of
      such materiality qualification applied to it. Any due diligence review, audit,
      or other investigation or inquiry undertaken or performed by or on behalf of
      a
      party shall not limit, qualify, modify or amend the representations, warranties,
      or covenants of, or indemnities made by any other party pursuant to this
      Agreement, irrespective of the knowledge and information received (or which
      should have been received) therefrom by the investigating party and consummation
      of the transactions contemplated herein by a party shall not be deemed a waiver
      of a breach of or inaccuracy in any representation, warranty, or covenant or
      of
      any other party’s rights and remedies with regard thereto.

    

    9.4 Assignment;
      Binding Upon Successors and Assigns.
      None of
      the parties hereto may assign or delegate any of its rights or obligations
      hereunder without the prior written consent of the other parties hereto. This
      Agreement will be binding upon and inure to the benefit of the parties hereto
      and their respective successors, heirs, legatees, distributes, and
      assigns.

    

    9.5 Parties
      in Interest.
      This
      Agreement shall be binding upon and inure solely to the benefit of the parties
      hereto and their respective successors, permitted assigns and legal
      representatives, and nothing in this Agreement, express or implied, is intended
      to confer upon any other Person any rights or remedies of any nature.

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    9.6 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to constitute an original and shall become effective when one or more
      counterparts have been signed by each party hereto and delivered to the other
      parties.

    

    9.7 Governing
      Law; Venue; Jurisdiction.
      The
      laws of the State of California (irrespective of its choice of law principles)
      will govern the validity of this Agreement, the construction of its terms and
      the interpretation and enforcement of the rights and duties of the parties
      hereto. This Agreement shall be enforceable in any court of competent
      jurisdiction. In furtherance of and not in limitation of the foregoing, the
      parties hereto (i) agree and consent to the personal jurisdiction and venue
      of the state and Federal courts sitting in Orange County, California in any
      action or proceeding arising out of or connected in any way with this Agreement,
      (ii) irrevocably waive, to the fullest extent permitted by law, any claim
      that any such proceeding brought in such a court has been brought in an
      inconvenient forum, and (iii) agree that service of process in any such
      action or proceeding will be sufficient if sent by certified mail, return
      receipt requested, to applicable address set forth above, and that such service
      shall constitute “personal service,” and further agree to the invocation of said
      jurisdiction by service of process in any other manner authorized by
      law.

    

    9.8 Severability.
      If any
      term or provision of this Agreement shall, to any extent, be held by a court
      of
      competent jurisdiction to be invalid or unenforceable, the remainder of this
      Agreement or the application of such term or provision to Persons or
      circumstances other than those as to which it has been held invalid or
      unenforceable, shall not be affected thereby and this Agreement shall be deemed
      severable and shall be enforced otherwise to the full extent permitted by
      law.

    

    9.9 Entire
      Agreement.
      This
      Agreement (including the Schedules and Exhibits referred to herein and which
      form a part hereof) and the Ancillary Documents constitute the entire agreement
      among the parties hereto and supersedes all prior agreements and understandings,
      oral and written, among the parties hereto with respect to the subject matter
      hereof except for a confidentiality agreement by and among the parties hereto,
      if any.

    

    9.10 Schedules
      and Exhibits.
      The
      Schedules and Exhibits attached hereto are incorporated herein and made a part
      hereof for all purposes.

    

    

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, this Stock Purchase Agreement has been duly executed and
      delivered by the parties hereto on the date first above written.

     

    
      	 	 	 
	 	
              PURCHASER:

              
                TERMINUS,
                  INC.

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Frank Marshik  
	 	
              

              Name:
                Frank Marshik

              Title:
                President

            

    

    
      	 	 	 
	 	
              COMPANY:

              THE
                BLACKHAWK FUND

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Steven Bonenberger
	 	
              
Name:
              Steven Bonenberger 
	 	Title:
              President

    

    
      	 	 	 
	 	
              SELLER:

              PALOMAR
                ENTERPRISES, INC. 

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Steven Bonenberger  
	 	
              
Name:
              Steven Bonenberger
	 	
              Title:
                President

            

    

     

    
      
         

      

      
        36SUBSCRIPTION
      AGREEMENT

    

    THIS
      SUBSCRIPTION AGREEMENT
      (this
      "Agreement"),
      dated
      as of April 24, 2008, by and among Terminus, Inc., a Nevada corporation
      ("Terminus"),
      The
      Blackhawk Fund, a Nevada corporation ("Blackhawk",
      together with Terminus, the "Issuers"),
      and
      the subscriber identified on the signature page hereto (the "Subscriber").

     

    WHEREAS,
      the
      Issuers and the Subscriber are executing and delivering this Agreement in
      reliance upon an exemption from securities registration afforded by the
      provisions of Section 4(2), Section 4(6) and/or Regulation D ("Regulation
      D")
      as
      promulgated by the United States Securities and Exchange Commission (the
      "Commission")
      under
      the Securities Act of 1933, as amended (the "1933
      Act");

     

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Issuers shall issue and sell to the Subscriber, as provided herein,
      and the Subscriber shall purchase up to (i) Five Hundred Fifty Thousand Dollars
      ($550,000) (the "Purchase
      Price")
      of
      principal amount of promissory notes of the Issuers ("Note"
      or
      "Notes"),
      a
      form of which is annexed hereto as Exhibit A and (ii) Five Hundred Thousand
      (500,000) shares of Blackhawk Series A Preferred Stock, par value $0.00 1 per
      share (the "Blackhawk
      Series A Shares"),
      convertible into shares (the "Conversion
      Shares")
      of
      Blackhawk Common Stock at the per share conversion price set forth in the
      Blackhawk Series A Certificate of Designation, a form of which is attached
      hereto as Exhibit B. The Notes, the Blackhawk Series A Shares and the Conversion
      Shares are collectively referred to herein as the "Securities";

     

    WHEREAS,
      concurrent with the Closing Date (as defined in Section 2 below) Terminus will
      purchase 10,000,000 shares of Blackhawk Series C Preferred Stock, par value
      $0.00 1 per share (the "Blackhawk
      Series C Shares");

     

    WHEREAS,
      to
      secure payment for the Notes, concurrent with the Closing Date, Terminus will
      pledge the Blackhawk Series C Shares to Subscriber (the "Pledged
      Shares")
      pursuant to a share pledge agreement substantially in the form attached hereto
      as Exhibit C (the "Pledge
      Agreement")

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and other agreements contained in this
      Agreement the Issuers and the Subscriber hereby agree as follows:

     

    1. Conditions
      To Closing.
      Subject
      to the satisfaction or waiver of the terms and conditions of this Agreement,
      on
      the Closing Date, the Subscriber shall purchase and the Issuers shall sell
      to
      the Subscriber a Note in the principal amount designated on the signature page
      hereto. The aggregate amount of the Notes to be purchased by the Subscriber
      on
      the Closing Date shall, in the aggregate, be equal to the Purchase
      Price.

     

    2. Closing
      Date.
      The
      "Closing
      Date"
      shall
      be the date that subscriber funds representing the net amount due the Issuers
      from the Purchase Price is transmitted by wire transfer or otherwise to or
      for
      the benefit of the Issuers. The consummation of the transactions contemplated
      herein for the Closing shall take place at the offices of Indeglia & Carney,
      P.C., 1900 Main Street, Suite 125, Irvine, CA 92614, upon the satisfaction
      of
      all conditions to Closing set forth in this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Subscriber’s
      Representations and Warranties.
      The
      Subscriber hereby represents and warrants to and agrees with the Issuers
      that:

     

    (a) Organization
      and Standing of the Subscriber.
      The
      Subscriber is a corporation, partnership or other entity duly incorporated
      or
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization.

     

    (b) Authorization
      and Power.
      The
      Subscriber has the requisite power and authority to enter into and perform
      this
      Agreement and to purchase the Notes and the Blackhawk Series A Shares being
      sold
      to it hereunder. The execution, delivery and performance of this Agreement
      by
      the Subscriber and the consummation by it of the transactions contemplated
      hereby and thereby have been duly authorized by all necessary corporate or
      partnership action, and no further consent or authorization of the Subscriber
      or
      its Board of Directors, stockholders, partners, members, as the case may be,
      is
      required. This Agreement has been duly authorized, executed and delivered by
      the
      Subscriber and constitutes, or shall constitute when executed and delivered,
      a
      valid and binding obligation of the Subscriber enforceable against the
      Subscriber in accordance with the terms thereof subject to bankruptcy,
      insolvency, fraudulent transfer, reorganization, moratorium and similar laws
      of
      general applicability relating to or affecting creditors’ rights generally and
      to general principles of equity.

     

    (c) No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and the consummation
      by
      the Subscriber of the transactions contemplated hereby or relating hereto do
      not
      and will not (i) result in a violation of the Subscriber’s charter documents or
      bylaws or other organizational documents or (ii) conflict with, or constitute
      a
      default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of any agreement, indenture or instrument or
      obligation to which the Subscriber is a party or by which its properties or
      assets are bound, or result in a violation of any law, rule, or regulation,
      or
      any order, judgment or decree of any court or governmental agency applicable
      to
      the Subscriber or its properties (except for such conflicts, defaults and
      violations as would not, individually or in the aggregate, have a material
      adverse effect on the Subscriber). The Subscriber is not required to obtain
      any
      consent, authorization or order of, or make any filing or registration with,
      any
      court or governmental agency in order for it to execute, deliver or perform
      any
      of its obligations under this Agreement or to purchase the Notes or the
      Blackhawk Series A Shares in accordance with the terms hereof, provided that
      for
      purposes of the representation made in this sentence, the Subscriber is assuming
      and relying upon the accuracy of the relevant representations and agreements
      of
      the Issuers herein.

     

    (d) Information
      on Issuers.
      The
      Subscriber has received and had the opportunity to review all documents and
      any
      other information requested from the Issuers, has been given full and complete
      access to information regarding the Issuers, and has utilized such access to
      the
      Subscriber’s satisfaction for the purpose of obtaining such information
      regarding the Issuers as the Subscriber has reasonably requested; and,
      particularly, the Subscriber has been given reasonable opportunity to ask
      questions of, and receive answers from, representatives of the Issuers
      concerning the terms and conditions of the offering of the Notes and to obtain
      any additional information, to the extent reasonably available.

     

    (e) Information
      on Subscriber.
      The
      Subscriber is an "accredited investor", as such term is defined in Regulation
      D
      promulgated by the Commission under the 1933 Act, is experienced in investments
      and business matters, has made investments of a speculative nature and has
      purchased securities of United States publicly-owned companies in private
      placements in the past and, with its representatives, has such knowledge and
      experience in financial, tax and other business matters as to enable the
      Subscriber to utilize the information made available by the Issuers to evaluate
      the merits and risks of and to make an informed investment decision with respect
      to the proposed purchase. The Subscriber has the authority and is duly and
      legally qualified to purchase and own the Securities. The Subscriber is able
      to
      bear the risk of such investment for an indefinite period and to afford a
      complete loss thereof. The information set forth on the signature page hereto
      regarding the Subscriber is accurate.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (f) Purchase
      of Securities.
      On the
      Closing Date, the Subscriber will purchase the Notes and the Blackhawk Series
      A
      Shares as principal for its own account for investment only and not with a
      view
      toward, or for resale in connection with, the public sale or any distribution
      thereof.

     

    (g) Compliance
      with Securities Act.
      The
      Subscriber understands and agrees that the Securities have not been registered
      under the 1933 Act or any applicable state securities laws, by reason of their
      issuance in a transaction that does not require registration under the 1933
      Act
      (based in part on the accuracy of the representations and warranties of
      Subscriber contained herein), and that such Securities must be held indefinitely
      unless a subsequent disposition is registered under the 1933 Act or any
      applicable state securities laws or is exempt from such
      registration.

     

    (h) Note
      Legend.
      The
      Note shall bear the following legend:

     

    "THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
      THIS
      NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
      OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUERS THAT SUCH REGISTRATION
      IS NOT REQUIRED."

     

    (i) Blackhawk
      Series A Shares Legend.
      The
      Blackhawk Series A Shares shall bear the following legend:

     

    "THE
      SHARES REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF COMMON STOCK ISSUABLE
      UPON CONVERSION THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED. THESE SHARES, AND THE SHARES OF COMMON STOCK ISSUABLE UPON
      CONVERSION HEREOF MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SHARES REPRESENTED
      BY THIS CERTIFICATE OR THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION
      OF
      THESE SHARES UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
      TO
      THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED."

     

    (j) Conversion
      Shares Legend.
      The
      Conversion Shares shall bear the following legend:

     

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

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (k) Communication
      of Offer.
      The
      offer to sell the Notes and the Blackhawk Series A Shares was directly
      communicated to the Subscriber by the Issuers. At no time was the Subscriber
      presented with or solicited by any leaflet, newspaper or magazine article,
      radio
      or television advertisement, or any other form of general advertising or
      solicited or invited to attend a promotional meeting otherwise than in
      connection and concurrently with such communicated offer.

     

    (l) [Intentionally
      omitted].

     

    (m) Restricted
      Securities.
      Subscriber understands that the Securities have not been registered under the
      1933 Act and the Subscriber will not sell, offer to sell, assign, pledge,
      hypothecate or otherwise transfer any of the Notes unless pursuant to an
      effective registration statement under the 1933 Act. Notwithstanding anything
      to
      the contrary contained in this Agreement, the Subscriber may transfer (without
      restriction and without the need for an opinion of counsel) the Securities
      to
      its Affiliates (as defined below) provided that each such Affiliate is an
      "accredited investor" under Regulation D and such Affiliate agrees to be bound
      by the terms and conditions of this Agreement. For the purposes of this
      Agreement, an "Affiliate"
      of any
      person or entity means any other person or entity directly or indirectly
      controlling, controlled by or under direct or indirect common control with
      such
      person or entity. For purposes of this definition, "control" means the power
      to
      direct the management and policies of such person or firm, directly or
      indirectly, whether through the ownership of voting securities, by contract
      or
      otherwise.

     

    (n) No
      Governmental Review.
      The
      Subscriber understands that no United States federal or state agency or any
      other governmental or state agency has passed on or made recommendations or
      endorsement of the Securities or the suitability of the investment in the Notes
      nor have such authorities passed upon or endorsed the merits of the offering
      of
      the Notes.

     

    (o) Correctness
      of Representations.
      The
      Subscriber represents as to the Subscriber that the foregoing representations
      and warranties are true and correct as of the date hereof.

     

    4. Issuers
      Representations and Warranties.
      Each
      Issuer represents and warrants to and agrees with the Subscriber, on a joint
      and
      several basis, that except as otherwise qualified in the Transaction
      Documents:

     

    (a) Due
      Incorporation.
      Issuer
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the jurisdiction of its incorporation and has the requisite corporate
      power to own its properties and to carry on its business. Issuer is duly
      qualified as a foreign corporation to do business and is in good standing in
      each jurisdiction where the nature of the business conducted or property owned
      by it makes such qualification necessary, other than those jurisdictions in
      which the failure to so qualify would not have a Material Adverse Effect. For
      purpose of this Agreement, a "Material
      Adverse Effect"
      shall
      mean a material adverse effect on the financial condition, results of
      operations, properties or business of the Issuers taken as a whole.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (b) Outstanding
      Stock.
      All
      issued and outstanding shares of capital stock of each Issuer has been duly
      authorized and validly issued and are fully paid and nonassessable and, with
      respect to Terminus, to its knowledge, have been issued in compliance with
      all
      federal and applicable state securities laws.

     

    (c) Authority;
      Enforceability.
      This
      Agreement, the Notes, the Blackhawk Series A Shares and any other agreements
      delivered together with this Agreement or in connection herewith (collectively
      "Transaction
      Documents")
      have
      been duly authorized, executed and delivered by each Issuer, as applicable,
      and
      are valid and binding agreements enforceable in accordance with their terms,
      subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
      moratorium and similar laws of general applicability relating to or affecting
      creditors’ rights generally and to general principles of equity. Issuer has full
      corporate power and authority necessary to enter into and deliver the
      Transaction Documents and to perform its obligations thereunder.

     

    (d) Additional
      Issuances; Voting.
      There
      are no outstanding agreements or preemptive or similar rights affecting
      Blackhawk’s common stock or equity and no outstanding rights, warrants or
      options to acquire, or instruments convertible into or exchangeable for, or
      agreements or understandings with respect to the sale or issuance of any shares
      of common stock or equity of Blackhawk except as described on Schedule 4(d).
      The
      common stock of Blackhawk on a fully diluted basis outstanding as of the last
      trading day preceding the Closing Date is set forth on Schedule 4(d). Holders
      of
      the Series C Preferred Stock hold 0%, on a fully diluted basis, of the
      outstanding common stock of Blackhawk and 62.4% of all votes entitled to be
      cast
      in any matter requiring or permitting a vote of stockholders. 

     

    (e) Consents.
      No
      consent, approval, authorization or order of any court, governmental agency
      or
      body or arbitrator having jurisdiction over Issuer, nor either Issuer’s
      shareholders is required for the execution by the Issuers of the Transaction
      Documents and compliance and performance by Issuer of its obligations under
      the
      Transaction Documents, including, without limitation, the issuance and sale
      of
      the Securities.

     

    (f) No
      Violation or Conflict.
      Assuming the representations and warranties of the Subscriber in Section 3
      are
      true and correct, neither the issuance and sale of the Securities nor the
      performance of Issuer’s obligations under this Agreement and all other
      agreements entered into by the Issuers relating thereto by the Issuers will
      violate, conflict with, result in a breach of, or constitute a default (or
      an
      event which with the giving of notice or the lapse of time or both would be
      reasonably likely to constitute a default in any material respect) of a material
      nature under (A) the articles or certificate of incorporation, charter or bylaws
      of Issuer, (B) any decree, judgment, order, law, treaty, rule, regulation or
      determination applicable to the Issuers of any court, governmental agency or
      body, or arbitrator having jurisdiction over Issuer or over the properties
      or
      assets of Issuer or any of its Affiliates, or (C) the terms of any bond,
      debenture, note or any other evidence of indebtedness, or any agreement, stock
      option or other similar plan, indenture, lease, mortgage, deed of trust or
      other
      instrument to which the Issuers or any of its Affiliates is a party, by which
      Issuer or any of its Affiliates is bound, or to which any of the properties
      of
      Issuer or any of its Affiliates is subject, except, in the case of (C), the
      violation, conflict, breach, or default of which would not have a Material
      Adverse Effect and which would not serve as a basis for any rescission of the
      issuance of the Securities.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (g) The
      Securities.
      The
      Securities, and any other securities issuable upon conversion or exercise
      thereof, upon issuance:

     

    (i) are,
      or
      will be, free and clear of any security interests, liens, claims or other
      encumbrances, subject to restrictions upon transfer under the 1933 Act and
      any
      applicable state securities laws;

     

    (ii) have
      been
      duly and validly authorized;

     

    (iii) will
      not
      have been issued or sold in violation of any preemptive or other similar rights
      of the holders of any securities of the Issuers; and

     

    (iv) will
      not
      result in a violation of Section 5 under the 1933 Act.

     

    (h) Litigation.
      There
      is no pending or, to the best knowledge of the Issuers, threatened action,
      suit,
      proceeding or investigation before any court, governmental agency or body,
      or
      arbitrator having jurisdiction over the Issuers that would affect the execution
      by Issuer or the performance by the Issuers of its obligations under the
      Transaction Documents.

     

    (i) Defaults.
      Issuer
      is not in violation of its articles of incorporation or bylaws. Issuer is (i)
      not in default under or in violation of any other material agreement or
      instrument to which it is a party or by which it or any of its properties are
      bound or affected, which default or violation would have a Material Adverse
      Effect, (ii) not in default with respect to any order of any court, arbitrator
      or governmental body or subject to or party to any order of any court or
      governmental authority arising out of any action, suit or proceeding under
      any
      statute or other law respecting antitrust, monopoly, restraint of trade, unfair
      competition or similar matters, or (iii) not in violation of any statute, rule
      or regulation of any governmental authority which violation would have a
      Material Adverse Effect.

     

    (j) No
      General Solicitation.
      Neither
      Issuer, nor to its knowledge, any person acting on its or their behalf, has
      engaged in any form of general solicitation or general advertising (within
      the
      meaning of Regulation D under the 1933 Act) in connection with the offer or
      sale
      of the Securities.

     

    (k) Capitalization.
      The
      authorized and outstanding capital stock of Blackhawk as of the date of this
      Agreement and the Closing Date (not including the Securities) are set forth
      on
      Schedule 4(d). Except as set forth on Schedule 4(d), there are no options,
      warrants, or rights to subscribe to, securities, rights or obligations
      convertible into or exchangeable for or giving any right to subscribe for any
      shares of capital stock of the Issuers. All of the outstanding shares of Common
      Stock of Issuer have been duly and validly authorized and issued and are fully
      paid and nonassessable.

     

    5. Regulation
      D Offering.
      The
      offer and issuance of the Securities to the Subscriber is being made pursuant
      to
      the exemption from the registration provisions of the 1933 Act afforded by
      Section 4(2) or Section 4(6) of the 1933 Act and/or Rule 506 of Regulation
      D
      promulgated thereunder. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    6. Resignations.
      Simultaneously with the execution and delivery of this Agreement, Blackhawk
      shall cause to be executed and delivered to the Subscriber undated Certificates
      of Resignation signed by each of the Directors of Blackhawk which the Subscriber
      may date and deliver upon an Event of Default under the Note. 

     

    7. Amendment
      to Series C Preferred Stock.
      The
      Issuers shall cause the Certificate of Designation of the Series C Preferred
      Stock to be amended as set forth in Exhibit D hereto.

     

    8. Special
      Stockholder Meeting.
      Blackhawk will, upon the occurrence of an Event of Default under, and
      as defined in, the Note, notwithstanding any provisions in the charter
      documents, bylaws or other organizational documents of Blackhawk to the
      contrary,  take or cause to be taken all necessary actions
      to call a special meeting of the stockholders of Blackhawk promptly
      upon the demand of the Subscriber for the transaction of such business
      as the Subscriber may set forth in a written notice to Blackhawk
      delivered to Blackhawk after the occurrence of an Event of Default. 
In order to effect the foregoing, Blackhawk hereby grants an irrevocable power
      of attorney, coupled with an interest, to the Subscriber, its officers and
      directors, to execute and deliver such notices and filings and to take such
      other actions necessary to duly call such special meeting.

     

    9. Miscellaneous.

     

    (a) Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Issuers, to: (A) Terminus, Inc., 152
      East
      John Street, Carson City, Nevada, 89706, Attention: Frank Marshik, with a copy
      by telecopier only to: Indeglia & Carney, P.C., 1900 Main Street, Suite 125,
      Irvine, CA 92614, Attention: Marc A. Indeglia, Esq., telecopier number: (949)
      851-5940, (B) The Blackhawk Fund, 1802 N. Carson Street, Suite 212, Carson
      City,
      NV 89701, Attention: Frank Marshik, and (ii) if to the Subscriber, to: the
      one
      or more addresses and telecopier numbers indicated on the signature pages
      hereto.

     

    (b) Entire
      Agreement; Assignment.
      This
      Agreement and other documents delivered in connection herewith represent the
      entire agreement between the parties hereto with respect to the subject matter
      hereof and may be amended only by a writing executed by both parties. Neither
      the Issuers nor the Subscriber have relied on any representations not contained
      or referred to in this Agreement and the documents delivered herewith. No right
      or obligation of the Issuers shall be assigned without prior notice to and
      the
      written consent of the Subscriber.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (c) Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

     

    (d) Law
      Governing this Agreement.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to conflicts of laws principles that would
      result in the application of the substantive laws of another jurisdiction.
      Any
      action brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the Supreme Court of
      New
      York, New York County, or in the United States District Court for the Southern
      District of New York. The
      parties and the individuals executing this Agreement and other agreements
      referred to herein or delivered in connection herewith on behalf of the Issuers
      agree to submit to the jurisdiction of such courts and waive trial by
      jury.
      The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney’s fees and costs. In the event that any provision of this
      Agreement or any other 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 any
      agreement.

     

    (e) Specific
      Enforcement, Consent to Jurisdiction.
      The
      Issuers and Subscriber acknowledge and agree that irreparable damage would
      occur
      in the event that any of the provisions of this Agreement were not performed
      in
      accordance with their specific terms or were otherwise breached. It is
      accordingly agreed that the parties shall be entitled to one or more preliminary
      and final injunctions to prevent or cure breaches of the provisions of this
      Agreement and to enforce specifically the terms and provisions hereof, this
      being in addition to any other remedy to which any of them may be entitled
      by
      law or equity. Subject to Section 7(d) hereof, each of the Issuers, Subscriber
      and any signator hereto in his personal capacity hereby waives, and agrees
      not
      to assert in any such suit, action or proceeding, any claim that it is not
      personally subject to the jurisdiction in New York of such court, that the
      suit,
      action or proceeding is brought in an inconvenient forum or that the venue
      of
      the suit, action or proceeding is improper. Nothing in this Section shall affect
      or limit any right to serve process in any other manner permitted by
      law.

     

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    SIGNATURE
      PAGE TO SUBSCRIPTION AGREEMENT (A)

    

    Please
      acknowledge your acceptance of the foregoing Subscription Agreement by signing
      and returning a copy to the undersigned whereupon it shall become a binding
      agreement between us.

     

    
      	 	 	 
	 	
              ISSUERS:

              
                TERMINUS,
                  INC.

                a
                  Nevada corporation

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Frank Marshik 
	 	
              
Name:
              Frank Marshik
	 	
              Title:
                President 

            
	 	
              Dated:
                April 24, 2008

            

    

    
      	 	 	 
	 	
              THE
                BLACKHAWK FUND

              a
                Nevada corporation

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Frank Marshik 
	 	
              

              Name:
                Frank Marshik

            
	 	
              Title:
                President

            
	 	
              Dated:
                April 24, 2008

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              SUBSCRIBER

            	 	
              NOTE
                PRINCIAL

            
	
              PROFESSIONAL
                OFFSHORE OPPORTUNITY FUND, LTD.

               

              /s/
                Gregg Goldberg
                
                

              (Signature)

               

              By:
                Gregg Goldberg, Manager

            	 	
              $550,000.00

            

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    LIST
      OF EXHIBITS AND SCHEDULES

    
      

      
        	
                Exhibit
                  A

              	
                Form
                  of Note

              
	 	 
	
                Exhibit
                  B

              	
                Blackhawk
                  Series A Certificate of Designation

              
	 	 
	
                Exhibit
                  C

              	
                Pledge
                  Agreement

              
	 	 
	
                Exhibit
                  D

              	
                Amendment
                  to Blackhawk Series C Certificate of
                  Designation

              

      

    

     

    Schedule
      4(d) Additional
      Issuances / Capitalization

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Schedule
      4(d)

    

    Capitalization:

    

    The
      Blackhawk Fund

    

    4,000,000,000
      shares of Common Stock authorized, 562,293,791 of which are issued and
      outstanding 150,000,000 shares of Class B Common Stock authorized, 30,000,000
      of
      which are issued and outstanding 20,000,000 shares of Series A Preferred Stock
      authorized, none of which are outstanding 10,000,000 shares of Series B
      Preferred Stock authorized, 10,000,000 of which are issued and outstanding
      20,000,000 shares of Series C Preferred Stock authorized, 10,000,000 of which
      are issued and outstanding

    

    Voting
      Rights:

    

    Common
      Stock entitled to one vote per share on all matters submitted to shareholder
      vote.

    Class
      B
      Common Stock entitled to one vote per share on all matters submitted to
      shareholder vote. Series A Preferred Stock have no voting rights.

    Series
      B
      Preferred Stock entitled to one (1) vote per share

    Series
      C
      Preferred Stock entitled to one hundred (100) votes per share.

    

    Conversion
      Rights:

    

    Series
      A
      Preferred Stock are convertible as set forth in Exhibit B.

    Series
      B
      Preferred Stock is convertible at the rate of 200 to 1. 

    Series
      C
      Preferred Stock is not convertible.

     

    
      
         

      

      
        12

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