Document:

EXHIBIT 10.1

SHARE EXCHANGE AND REORGANIZATION AGREEMENT,  dated as of December 15, 2004 (the
"AGREEMENT"),  between NORTH SHORE CAPITAL IV, INC., a Colorado corporation with
offices located at 2209 Pershing  Avenue,  Sheboygan,  Wisconsin 53083 (together
with  its  successor  in  interest  as  a  result  of  the  Reincorporation,  as
hereinafter  defined,  "NSC");  and GRIDLINE  COMMUNICATIONS  CORP.,  a Delaware
corporation  with offices located at 14090 Southwest  Freeway,  Suite 300, Sugar
Land,  Texas 77478  ("GRIDLINE"),  and THE BENEFICIAL  STOCKHOLDERS  OF GRIDLINE
IDENTIFIED IN SCHEDULE A HERETO (the "GRIDLINE SHAREHOLDERS").

                                  INTRODUCTION

        NSC  desires to acquire  all of the  issued  and  outstanding  shares of
Gridline capital stock (the "GRIDLINE  CAPITAL STOCK") solely in exchange for an
aggregate of 47,600,000 shares of authorized,  but theretofore unissued,  shares
of common  stock,  par value $0.001 per share (the "NSC COMMON  STOCK"),  of the
newly formed  Delaware  corporation  that is the  successor in interest to North
Shore  Capital  IV,  Inc.,  a  Colorado   corporation,   giving  effect  to  the
Reincorporation  (as defined  below),  representing  approximately  95.5% of the
fully diluted  outstanding NSC Common Stock giving effect to such issuance,  but
without  giving  effect to the issuance of NSC Common Stock upon the exercise or
conversion of certain options,  warrants and convertible securities described on
SCHEDULE B hereto.  The  Gridline  Shareholders  desire to exchange all of their
beneficially  owned  shares of Gridline  Capital  Stock solely for shares of NSC
Common Stock in the amount set forth herein.

        Prior  to the  date  hereof,  the  respective  boards  of  directors  or
analogous  governing  body of each of NSC and  Gridline  have,  and the Gridline
Shareholders  have,  approved and adopted this Agreement and it is the intent of
the parties hereto that the transactions contemplated hereby be structured so as
to qualify as a tax-free  exchange  under  Subchapter C of the Internal  Revenue
Code of 1986, as amended (the "CODE"), and the provisions of this Agreement will
be interpreted in a manner consistent with this intent.

        NOW,   THEREFORE,   in   consideration   of  the   premises  and  mutual
representations,  warranties and covenants herein contained,  the parties hereby
agree as follows:

                                    ARTICLE I

                       ACQUISITION AND EXCHANGE OF SHARES

       SECTION  1.01    THE AGREEMENT.  The parties hereto hereby agree that NSC
shall acquire all of the issued and outstanding shares of Gridline Capital Stock
solely in exchange for an  aggregate of  47,600,000  shares of  authorized,  but
theretofore unissued,  shares of NSC Common Stock. The parties hereto agree that
at  the  closing  of  the  transactions  contemplated  by  this  Agreement  (the
"CLOSING"):

                (i)     Gridline  will become a  wholly-owned  subsidiary of NSC
        subject to the conditions and provisions of Section 1.03 hereof;

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                (ii)    North Shore  Capital IV, Inc.,  a Colorada  corporation,
        shall  reincorporate  in the State of Delaware (the  "REINCORPORATION"),
        and  shall  change  its  name  in  connection   therewith  to  "Gridline
        Communications   Corp.  and  cause  its   certificate  and  articles  of
        incorporation  to be in the form of  EXHIBIT  A  hereto  and  cause  its
        by-laws to be in the form of EXHIBIT B hereto; and

                (iii)   NSC shall  assume  each option  (each a "GRIDLINE  STOCK
        OPTION") and each warrant (each a "GRIDLINE WARRANT") outstanding at the
        as of the  Closing  by  executing  and  delivering  to  such  holder  an
        assumption,  which  assumption  shall  read  as  set  forth  in  EXHIBIT
        1.01(iii) hereto,  incorporated in, and made a part of this Agreement by
        this reference  thereto,  and NSC shall be substituted for Gridline with
        respect to each  Gridline  Stock Option or Gridline  Warrant so assumed,
        and thereafter,  until any event that affects the exercise  price,  each
        Gridline Stock Option and Gridline  Warrant  assumed by NSC as aforesaid
        shall represent an option to purchase, instead of Gridline Common Stock,
        the number of whole shares of NSC Common Stock (after  disregarding  all
        fractions)  which  equals the number of shares of Gridline  Common Stock
        subject  to such  option  immediately  prior to the  Closing  divided by
        2.03151261  and the price per share of NSC  Common  Stock at which  such
        option  shall be  exercisable  shall  (until any event that  affects the
        exercise  price) be an amount (to the next  higher  whole cent) equal to
        the option price per share of Gridline Common Stock immediately prior to
        the Closing  multiplied by 2.03151261.  Except as aforesaid,  the period
        during which,  and the terms upon which,  each Gridline Stock Option and
        Gridline Warrant may be exercised shall remain unchanged.

        SECTION 1.02    EXCHANGE OF SHARES.

        (a)     At the  Closing,  NSC  will  cause  to be  issued  and  held for
delivery to the Gridline  Shareholders or their  designees,  stock  certificates
representing an aggregate of 47,600,000 shares of NSC Common Stock, representing
95.5% of the fully  diluted  outstanding  NSC Common Stock giving effect to such
issuance,  in exchange for all of the issued and outstanding  shares of Gridline
Capital Stock, which shares will be delivered to NSC at the Closing.

        (b)     The  shares  of  NSC  Common  Stock  to be  issued  pursuant  to
paragraph (a) of this Section 1.02 will be authorized,  but theretofore unissued
shares of NSC Common Stock,  and will be issued to the Gridline  Shareholders or
as directed thereby as set forth in SCHEDULE 1.02(b) hereof.

        (c)     All shares of NSC Common Stock to be issued  hereunder  shall be
deemed "RESTRICTED SECURITIES" as defined in paragraph (a) of Rule 144 under the
Securities  Act of 1933,  as amended (the  "SECURITIES  ACT"),  and the Gridline
Shareholders  will  represent in writing that they are acquiring said shares for
investment  purposes only and without the intent to make a further  distribution
of such  shares.  All shares of NSC Common Stock to be issued under the terms of
this Agreement  shall be issued  pursuant to an exemption from the  registration
requirements of the Securities Act, under Section 4(2) of the Securities Act and
the rules and regulations promulgated thereunder.  Certificates representing the
shares of NSC  Common  Stock to be issued  hereunder  shall  bear a  restrictive
legend in substantially the following form:

                                      -2-
<PAGE>

                THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
                AND MAY NOT BE  OFFERED  FOR SALE,  SOLD,  OR  OTHERWISE
                DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE  REGISTRATION
                PROVISIONS OF SUCH ACT OR PURSUANT TO AN EXEMPTION  FROM
                SUCH REGISTRATION PROVISIONS,  THE AVAILABILITY OF WHICH
                IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

        (d)     All shares of NSC Common Stock to be issued pursuant to Gridline
Stock Options and Gridline Warrants shall be deemed  "RESTRICTED  SECURITIES" as
defined in paragraph (a) of Rule 144 under the Securities Act. All shares of NSC
Common  Stock to be issued  under,  and  pursuant  to, the terms of the Gridline
Stock Options and the Gridline Warrants shall be issued pursuant to an exemption
from the registration  requirements of the Securities Act, under Section 4(2) of
the  Securities  Act and  the  rules  and  regulations  promulgated  thereunder.
Certificates  representing the shares of NSC Common Stock to be issued hereunder
shall bear a restrictive  legend in substantially  the form set forth in Section
1.02(c).

        SECTION 1.03    CLOSING.  The Closing will take place at a date and time
(the "CLOSING DATE") and place to be mutually agreed upon by the parties hereto,
and will be subject to the  provisions of Article IV of this  Agreement.  At the
Closing:

        (a)     Gridline  will  deliver  to  NSC  stock  certificates  or  other
evidences  representing  all of the issued and  outstanding  shares of  Gridline
Capital Stock,  duly endorsed,  so as to make NSC the holder  thereof,  free and
clear of all liens, claims and other encumbrances;

        (b)     (i)     NSC  will  deliver  to,  or at  the  direction  of,  the
        Gridline Shareholders, in accordance with SCHEDULE 1.02(b) hereof, stock
        certificates  representing  an  aggregate  of  47,600,000  shares of NSC
        Common Stock, which certificates will bear a standard restrictive legend
        in the form customarily used with restricted securities and as set forth
        in Section 1.02(c) above and which shares shall represent  approximately
        95.5% of the  outstanding NSC Common Stock giving effect to the issuance
        thereof;

                (ii)    Upon the  exercise  of the  Gridline  Stock  Options and
        Gridline  Warrants  in  accordance  with the terms  thereof  and against
        payment of the exercise price therein specified,  Gridline shall deliver
        to the holder of such Gridline Stock Options and/or  Gridline  Warrants,
        as applicable, exercising such securities, certificates representing the
        number  of  shares  of  NSC  Common  Stock  determined  pursuant  to the
        Assumption   Agreement,   which   certificates   will  bear  a  standard
        restrictive   legend  in  the  form  customarily  used  with  restricted
        securities and as set forth in Section 1.02(c) above.

        (c)     NSC will  deliver  an  Officer's  Certificate  as  described  in
Sections 4.02(a) and 4.02(b) hereof, dated the Closing Date, certifying that all
representations,  warranties,  covenants, and conditions set forth herein by NSC
are true and correct as of, or have been fully  performed  and complied with by,
the Closing Date; and

                                      -3-
<PAGE>

        (d)     Gridline will deliver an Officer's  Certificate  as described in
Sections 4.01(a) and 4.01(b) hereof, dated the Closing Date, certifying that all
representations,  warranties,  covenants  and  conditions  set  forth  herein by
Gridline are true and correct as of, or have been fully  performed  and complied
with by, the Closing Date.

        SECTION 1.04    APPROVAL BY BOARD OF DIRECTORS.  In anticipation of this
Agreement, NSC has taken all necessary and requisite corporate and other action,
including  without  limitation,  actions of the Board of  Directors  in order to
approve  this  Agreement  and  all  transactions   contemplated  hereby  and  in
connection herewith, including, without limitation, the Reincorporation.

        SECTION 1.05    CONSUMMATION  OF  TRANSACTION.  If at  the  Closing,  no
condition  exists  which  would  permit  any of the  parties to  terminate  this
Agreement,  or a  condition  then  exists and the party  entitled  to  terminate
because of that  condition  elects not to do so,  then the  transactions  herein
contemplated  shall be consummated  upon such date, and then and thereupon,  NSC
will file any additional  necessary documents that may be required by the States
of Colorado and Delaware, the United States of America, or otherwise.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

        SECTION 2.01    REPRESENTATIONS   AND  WARRANTIES  OF  NSC.  NSC  hereby
represents  and  warrants  to,  and  agrees  with,  Gridline  and  the  Gridline
Shareholders as follows:

        (a)     ORGANIZATION  AND  QUALIFICATION.  Other  than as set  forth  in
Section A of the disclosure letter, of even date herewith,  from NSC to Gridline
and  the  Gridline  Shareholders  (the  "NSC  DISCLOSURE  LETTER"),  NSC  has no
subsidiaries  or  affiliated  corporation  or owns  any  interest  in any  other
enterprise  (whether  or  not  such  enterprise  is  a  corporation).  NSC  is a
corporation  duly organized,  validly  existing,  and in good standing under the
laws of the State of Colorado,  with all requisite power and authority,  and all
necessary consents,  authorizations,  approvals, orders, licenses, certificates,
and permits of and from, and declarations and filings with, all federal,  state,
local, and other governmental authorities and all courts and other tribunals, to
own,  lease,  license,  and use its  properties  and  assets and to carry on the
businesses  in  which  it  is  now  engaged  and  the  businesses  in  which  it
contemplates  engaging.  Commencing  upon the  Reincorporation,  NSC  shall be a
corporation  duly organized,  validly  existing,  and in good standing under the
laws of the State of Delaware,  with all requisite power and authority,  and all
necessary consents,  authorizations,  approvals, orders, licenses, certificates,
and permits of and from, and declarations and filings with, all federal,  state,
local, and other governmental authorities and all courts and other tribunals, to
own,  lease,  license,  and use its  properties  and  assets and to carry on the
businesses  in  which  it  is  now  engaged  and  the  businesses  in  which  it
contemplates  engaging.  Other  than  as set  forth  in  Section  A of  the  NSC
DISCLOSURE  LETTER, NSC is duly qualified to transact the businesses in which it
is  engaged  and  is  in  good  standing  as  a  foreign  corporation  in  every
jurisdiction in which its ownership,  leasing,  licensing, or use of property or
assets or the conduct of its businesses makes such qualification necessary.

                                      -4-
<PAGE>

        (b)     CAPITALIZATION.  The authorized capital stock of NSC consists of
50,000,000   shares  of  NSC  Common  Stock,  of  which  2,247,500   shares  are
outstanding,  and  10,000,000  shares of  non-cumulative  convertible  preferred
stock,  par  value  $0.002  per  share,  no  shares  of which  are  outstanding.
Commencing upon the  Reincorporation  and not giving effect to the Closing,  the
authorized  capital  stock of NSC shall  consist  of  230,000,000  shares of NSC
Common Stock,  of which 2,247,500  shares shall be  outstanding,  and 20,000,000
shares of "blank check"  preferred  stock, par value $0.001 per share, no shares
of which shall then be outstanding.  Prior to Closing,  NSC  shareholders  shall
approve  and  caused  to  become  effective  the  Reincorporation.  Each of such
outstanding  shares of NSC Common Stock is validly  authorized,  validly issued,
fully paid, and  nonassessable,  has not been issued and is not owned or held in
violation  of any  preemptive  or  similar  right of  stockholders.  There is no
commitment,  plan, or arrangement to issue, and no outstanding option,  warrant,
or other right calling for the issuance of, any share of capital stock of NSC or
any  security  or  other  instrument   convertible  into,  exercisable  for,  or
exchangeable for capital stock of NSC. There is outstanding no security or other
instrument  convertible  into, or exchangeable or exercisable for, capital stock
of NSC.

        (c)     FINANCIAL  CONDITION.  NSC has  filed  with  the  United  States
Securities  and Exchange (the "SEC") true and correct  copies of the  following:
audited balance sheets of NSC as of December 31, 2001, 2002, and 2003; unaudited
balance  sheets of NSC as of September 30, 2003;  audited  statements of income,
statements of stockholders'  equity, and statements of cash flows of NSC for the
years ended December 31, 2001,  2002, and 2003; and the unaudited  statements of
income,  statements of stockholders' equity, and statements of cash flows of NSC
for the nine months  ended  September  30, 2003.  Each such balance  sheet shall
present fairly the financial condition,  assets, liabilities,  and stockholders'
equity of NSC as of its  respective  date;  each such  statement  of income  and
statement of stockholders' equity shall present fairly the results of operations
of NSC for the period  indicated;  and each such  statement  of cash flows shall
present  fairly the  information  purported to be shown  therein.  The financial
statements  referred  to in this  Section  2.01(c)  will have been  prepared  in
accordance with generally  accepted  accounting  principles in the United States
consistently  applied throughout the periods involved and shall be in accordance
with the books and records of NSC. The financial  statements referred to in this
Section 2.01(c) contain all certifications and statements  required by the SEC's
Order,  dated June 27,  2002,  pursuant to Section  21(a)(1) of the Exchange Act
(File No.  4-460),  Rule 13a-14 or 15d-14 under the  Exchange  Act, or 18 U.S.C.
Section  1350  (Sections  302 and 906 of the  Sarbanes-Oxley  Act of 2002)  with
respect to the report relating thereto. Since September 30, 2004:

                (i)     There has at no time been a material  adverse  change in
        the financial condition, results of operations,  businesses, properties,
        assets, liabilities, or future prospects of NSC.

                (ii)    NSC has not authorized,  declared, paid, or effected any
        dividend or liquidating or other  distribution in respect of its capital
        stock  or  any  direct  or  indirect  redemption,   purchase,  or  other
        acquisition of any stock of NSC.

                (iii)   The operations and businesses of NSC have been conducted
        in all respects only in the ordinary course,  except as described in the
        filings  made and to be made by NSC with the SEC and except as otherwise
        described herein.

                                      -5-
<PAGE>

There is no fact  known to NSC  which  materially  adversely  affects  or in the
future (as far as NSC can reasonably  foresee) may materially  adversely  affect
the financial condition, results of operations,  businesses, properties, assets,
liabilities,  or future prospects of NSC; provided,  however, that NSC expresses
no opinion as to political or economic matters of general applicability. NSC has
made known,  or caused to be made known, to the accountants or auditors who have
prepared,   reviewed,  or  audited  the  aforementioned  consolidated  financial
statements  all  material  facts  and  circumstances   which  could  affect  the
preparation, presentation, accuracy, or completeness thereof.

        (d)     TAX AND  OTHER  LIABILITIES.  NSC does  not  have  any  material
liability of any nature, accrued or contingent,  including,  without limitation,
liabilities for federal, state, local, or foreign taxes and penalties, interest,
and additions to tax ("TAXES"), and liabilities to customers or suppliers, other
than the following:

                (i)     Liabilities  for which full  provision  has been made on
        the balance sheet and the notes  thereto (the "LAST NSC BALANCE  SHEET")
        as of September 30, 2004 (the "LAST NSC BALANCE SHEET DATE") referred to
        in Section 2.01(c); and

                (ii)    Other  liabilities  arising  since the Last NSC  Balance
        Sheet  Date and prior to  Closing  in the  ordinary  course of  business
        (which  shall  not  include  liabilities  to  customers  on  account  of
        defective  products or  services)  which are not  inconsistent  with the
        representations  and  warranties  of NSC or any other  provision of this
        Agreement.

Without  limiting  the  generality  of  the  foregoing,  the  amounts  set up as
provisions  for  Taxes on the Last NSC  Balance  Sheet  are  sufficient  for all
accrued and unpaid  Taxes of NSC,  whether or not due and payable and whether or
not disputed, under tax laws, as in effect on the Last NSC Balance Sheet Date or
now in  effect,  for the period  ended on such date and for all  fiscal  periods
prior thereto. The execution, delivery, and performance of this Agreement by NSC
will not cause any Taxes to be payable  (other  than those that may  possibly be
payable by the Gridline  Shareholders  as a result of the  contribution of their
shares  of  Gridline  Capital  Stock  to NSC) or  cause  any  lien,  charge,  or
encumbrance  to secure any Taxes to be created  either  immediately  or upon the
nonpayment  of any Taxes other than on the  properties or assets of the Gridline
Shareholders.  The  Internal  Revenue  Service  has  audited  and settled or the
statute of  limitations  has run upon all federal  income tax returns of NSC for
all taxable years up to and including the taxable year ended  December 31, 1997.
NSC has filed all federal,  state, local, and foreign tax returns required to be
filed by it; has delivered to the Gridline  Shareholders a true and correct copy
of each such  return  which was  filed in the past six  years;  has paid (or has
established on the Last NSC Balance Sheet a reserve for) all Taxes, assessments,
and other governmental  charges payable or remittable by it or levied upon it or
its properties, assets, income, or franchises which are due and payable; and has
delivered to the Gridline  Shareholders a true and correct copy of any report as
to  adjustments  received  by it from any taxing  authority  during the past six
years and a statement as to any  litigation,  governmental  or other  proceeding
(formal or informal), or investigation pending,  threatened, or in prospect with
respect to any such report or the subject matter of such report.

        (e)     LITIGATION  AND CLAIMS.  Except as described in Section G of the
NSC DISCLOSURE LETTER, there is no litigation,  arbitration, claim, governmental
or other proceeding  (formal or

                                      -6-
<PAGE>

informal),  or  investigation  pending  or,  to the  best  of  NSC's  knowledge,
threatened,  or in prospect (or any basis therefor known to NSC) with respect to
NSC or any of its businesses,  properties, or assets. NSC is not affected by any
present or threatened  strike or other labor disturbance nor to the knowledge of
NSC, is any union  attempting  to represent  any  employee of NSC as  collective
bargaining agent. NSC is not in violation of, or in default with respect to, any
law, rule,  regulation,  order,  judgment,  or decree which violation or default
would have a material  adverse  effect on NSC;  nor is NSC  required to take any
action in order to avoid such violation or default.

        (f)     PROPERTIES.

                (i)     NSC owns no real  property.  NSC has  good  title to all
personal  properties  and assets  material to NSC and used in its  businesses or
owned by it (except real and other  properties and assets material to NSC as are
held  pursuant  to leases or  licenses  described  in  Section B or C of the NSC
DISCLOSURE LETTER), free and clear of all liens, mortgages,  security interests,
pledges,  charges,  and encumbrances  (except such as are listed in Section D of
the NSC DISCLOSURE LETTER).

                (ii)    Set forth in Section B of the NSC DISCLOSURE LETTER is a
true and  complete  list of all tangible  properties  and assets owned by NSC or
leased or licensed by NSC from or to a third party (including  inventory but not
including  Intangibles  (as  hereinafter  defined)),  and with  respect  to such
properties  and assets  leased or  licensed by NSC from or to a third  party,  a
description of such lease or license.  All such properties and assets (including
Intangibles)  owned by NSC are  reflected on the Last NSC Balance  Sheet (except
for acquisitions  subsequent to the Last NSC Balance Sheet Date and prior to the
Closing  Date,  which are either  noted in Section B or C of the NSC  DISCLOSURE
LETTER or are  approved in writing by  Gridline).  All tangible  properties  and
assets owned by NSC or leased or licensed by NSC from or to a third party are in
good and  usable  condition  (reasonable  wear and tear  which is not such as to
affect adversely the operation of the businesses of NSC excepted).

                (iii)   To the best of NSC's knowledge,  no real property leased
or  licensed  by NSC from or to a third  party lies in an area which is, or will
be, subject to zoning,  use, or building code restrictions which would prohibit,
and, to the best of NSC's  knowledge,  no state of facts relating to the actions
or inaction of another  person or entity or his or its  ownership,  leasing,  or
licensing  of any real or  personal  property  exists or will exist  which would
prevent, the continued effective  ownership,  leasing, or licensing of such real
property  in the  businesses  in which NSC is now engaged or the  businesses  in
which it contemplates engaging.

                (iv)    The properties  and assets  (including  Intangibles  (as
hereinafter  defined))  owned by NSC (other than those leased or licensed by NSC
to a third party) or leased or licensed by NSC from a third party constitute all
such  properties  and assets  which are  necessary to the  businesses  of NSC as
presently conducted.

                (v)     NSC  has  not  caused  or   permitted   its   businesses
properties,  or assets to be used to generate,  manufacture,  refine, transport,
treat, store,  handle,  dispose of, transfer,  produce, or process any Hazardous
Substance  (as such  term is  defined  in this  Section  2.01(f)(v))  except  in
compliance with all applicable laws, rules, regulations,  orders, judgments, and
decrees, and has not caused or permitted the Release (as such term is defined in
this Section 2.01(f)(v)) of any

                                      -7-
<PAGE>

Hazardous  Substance  on or off  the  site of any  property  of  NSC.  The  term
"HAZARDOUS  SUBSTANCE"  shall mean any hazardous  waste, as defined by 42 U.S.C.
ss.6903(5),  any hazardous substance, as defined by 42 U.S.C.  ss.9601(14),  any
pollutant or  contaminant,  as defined by 42 U.S.C.  ss.9601(33),  and all toxic
substances,  hazardous materials,  or other chemical substances regulated by any
other law,  rule, or regulation.  The term "RELEASE"  shall have the meaning set
forth in 42 U.S.C. ss.9601(22).

        (g)     CONTRACTS AND OTHER INSTRUMENTS. Section D of the NSC DISCLOSURE
LETTER contains a true and correct  statement of the information  required to be
contained therein regarding material contracts, agreements, instruments, leases,
licenses, arrangements, or understandings with respect to NSC. NSC has furnished
to the Gridline  Shareholders  (i) the  certificate of  incorporation  (or other
charter document) and by-laws of NSC and all amendments thereto, as presently in
effect  and as  shall  be in  effect  upon  the  Reincorporation,  and  (ii) the
following:  (A) true and correct copies of all material  contracts,  agreements,
and instruments  referred to in Section D of the NSC DISCLOSURE LETTER; (B) true
and correct copies of all material leases and licenses  referred to in Section B
or C of the NSC  DISCLOSURE  LETTER  hereto;  and (C) true and  correct  written
descriptions of all material supply,  distribution,  agency, financing, or other
arrangements  or  understandings  referred  to  in  Section  B or C of  the  NSC
DISCLOSURE  LETTER.  To the best of  NSC's  knowledge,  neither  NSC nor (to the
knowledge  of NSC) any other  party to any such  material  contract,  agreement,
instrument, lease, or license is now or expects in the future to be in violation
or breach of, or in default with respect to complying  with,  any term  thereof,
and each such material contract, agreement,  instrument, lease, or license is in
full force and is (to the best of NSC's  knowledge in the case of third parties)
the legal,  valid, and binding obligation of the parties thereto and (subject to
applicable bankruptcy,  insolvency,  and other laws affecting the enforceability
of creditors' rights generally) is enforceable as to them in accordance with its
respective terms. Each such material supply, distribution, agency, financing, or
other  arrangement or  understanding  is a valid and  continuing  arrangement or
understanding;  neither  NSC nor any  other  party  to any such  arrangement  or
understanding  has given notice of termination or taken any action  inconsistent
with the continuance of such  arrangement or  understanding;  and the execution,
delivery,  and  performance  of this  Agreement  will  not  prejudice  any  such
arrangement or  understanding  in any way. NSC enjoys  peaceful and  undisturbed
possession  under all material  leases and licenses under which it is operating.
NSC is not party to, or bound by, any contract,  agreement,  instrument,  lease,
license,  arrangement,  or  understanding,  or subject  to any  charter or other
restriction, which has had or (to the knowledge of NSC) may in the future have a
material  adverse  effect on the  financial  condition,  results of  operations,
businesses, properties, assets, liabilities, or future prospects of NSC. NSC has
not  engaged  within  the last five years in, is not  engaging  in, and does not
intend to engage in any  transaction  with, and has not had within the last five
years,  does not now have,  and does not intend to have any  material  contract,
agreement,  instrument,  lease, license, arrangement, or understanding with, any
stockholder  of NSC,  any  director,  officer,  or  employee  of NSC (except for
employment  agreements  listed in  Section D of the NSC  DISCLOSURE  LETTER  and
employment  and  compensation  arrangements  described  in  Section E of the NSC
DISCLOSURE  LETTER),  any relative or affiliate of any  stockholder of NSC or of
any such director,  officer, or employee, or any other corporation or enterprise
in which any stockholder of NSC, any such director, officer, or employee, or any
such relative or affiliate  then had or now has a 5% or greater equity or voting
or other  substantial  interest,  other than those  listed and so  specified  in
Section D of the NSC  DISCLOSURE  LETTER.  The stock ledgers and stock  transfer
books relating to all issuances and transfers of stock

                                      -8-
<PAGE>

by  NSC  and  the  minute  book  records  of  NSC  and  all  proceedings  of the
stockholders and the Board of Directors and committees  thereof of NSC since its
incorporation   made   available   to  counsel  to  Gridline  and  the  Gridline
Shareholders  are the original stock ledgers and stock transfer books and minute
book records of NSC or exact copies  thereof.  NSC is not in violation or breach
of, or in default with respect to, any term of its certificate of  incorporation
(or other charter  document) or by-laws or its its certificate of  incorporation
(or other charter document) or by-laws commencing upon the Reincorporation.

        (h)     EMPLOYEES.

                (i)     NSC  does not  have,  or  contribute  to,  any  pension,
profit-sharing,  option,  other  incentive  plan,  or any other type of Employee
Benefit  Plan (as  defined in Section  3(3) of the  Employee  Retirement  Income
Security  Act of  1974,  as  amended  ("ERISA")),  or has any  obligation  to or
customary  arrangement  with  employees  for  bonuses,  incentive  compensation,
vacations,  severance  pay,  sick pay,  sick leave,  insurance,  service  award,
relocation,  disability,  tuition  refund,  or other  benefits,  whether oral or
written,  except as set forth in Section E of the NSC DISCLOSURE LETTER. NSC has
furnished to Gridline and the Gridline Shareholders: (A) true and correct copies
of all documents evidencing plans,  obligations,  or arrangements referred to in
Section E of the NSC DISCLOSURE  LETTER (or true and correct written  summaries,
so initialed,  of such plans,  obligations,  or  arrangements  to the extent not
evidenced  by  documents)  and true and correct  copies,  so  initialed,  of all
documents evidencing trusts, summary plan descriptions,  and any other summaries
or  descriptions  relating  to any such plans;  (B) the two most  recent  annual
reports (Form  5500's),  if any,  including  all schedules  thereto and the most
recent  annual and  periodic  accounting  of related plan assets with respect to
each Employee  Benefit Plan; (C) the two most recent  actuarial  valuations with
respect to each Pension  Plan (as defined in Section  3(2) of ERISA)  subject to
Title IV of ERISA;  and (D) the most recent  determination  letter issued by the
Internal Revenue Service with respect to each Pension Plan.

                (ii)    If  any  Employee   Benefit  Plan  of  NSC  were  to  be
terminated on the day prior to Closing Date, (A) no liability  under Title IV of
ERISA  would be incurred by NSC or  Gridline  and (B) all Accrued  Benefits  (as
defined  in this  Section  2.01(h)(ii))  to such day prior to the  Closing  Date
(whether or not vested) would be fully funded in accordance with the assumptions
contained  in  the  regulations  of the  Pension  Benefit  Guaranty  Corporation
governing the funding of terminated  defined benefit plans. For purposes hereof,
"ACCRUED BENEFITS" shall include the value of disability,  pre-retirement, death
benefits,  and all  supplements,  subsidized,  ancillary,  and optional forms of
benefits.  All Accrued  Liabilities (for contributions or otherwise) (as defined
in this  Section  2.01(h)(ii))  of NSC as of the Closing  Date to each  Employee
Benefit Plan and with respect to each  obligation  to, or customary  arrangement
with, employees for bonuses, incentive compensation,  vacations,  severance pay,
sick pay, sick leave, insurance, service award, relocation,  disability, tuition
refund,  or other benefits,  whether oral or written,  have been paid or accrued
for all periods  ending prior to the Closing Date and no payment to any Employee
Benefit Plan or with respect to any such  obligation  or  arrangement  since the
Last NSC Balance Sheet Date has been disproportionately  large compared to prior
payments.  For purposes hereof,  "ACCRUED  LIABILITIES" shall include a pro rata
contribution  to  each  Employee  Benefit  Plan  or with  respect  to each  such
obligation or  arrangement  for that portion of a plan year or other  applicable
period which commences  prior to, and ends after,  the Closing Date, and Accrued
Liabilities for any portion of a

                                      -9-
<PAGE>

plan year or other  applicable  period shall be  determined by  multiplying  the
liability  for the entire such year or period by a fraction,  the  numerator  of
which is the number of days  preceding  the Closing  Date in such year or period
and the  denominator  of which is the number of days in such year or period,  as
the case may be.

                (iii)   There  has  been  no  violation  of  the  reporting  and
disclosure  requirements  imposed  either  under  ERISA or the Code for  which a
penalty has been or may be imposed with respect to any Employee  Benefit Plan of
NSC. There has been no breach of fiduciary duty or  responsibility  with respect
to any Employee  Benefit Plan of NSC. No Employee Benefit Plan of NSC or related
trust has any liability of any nature, accrued or contingent,  including without
limitation  liabilities for Taxes, other than for routine payments to be made in
due course to participants and  beneficiaries,  except as set forth in Section E
of the NSC DISCLOSURE  LETTER.  NSC does not have any formal plan or commitment,
whether or not legally binding,  to create any additional or modify any existing
Employee Benefit Plan or benefit obligation or arrangement  described in Section
2.01(h)(i)).  Each  Employee  Benefit  Plan of NSC which is a group  health plan
within the meaning of Section  5000(b)(1) of the Code is and has been maintained
in full  compliance  with the  applicable  requirements  of Section 4980B of the
Code. Other than the health care  continuation  requirements of Section 4980B of
the Code,  NSC does not have any obligation to provide  post-retirement  medical
benefits or life insurance coverage or any deferred compensation benefits to any
present  or  former  employees.  There  is no  litigation,  arbitration,  claim,
governmental or other proceeding (formal or informal), or investigation pending,
threatened,  or (to the best of  NSC's  knowledge)  in  prospect  (or any  basis
therefor  known to NSC) with  respect  to any  Employee  Benefit  Plan of NSC or
related trust or with respect to any  fiduciary,  administrator,  or sponsor (in
its capacity as such) of any Employee  Benefit Plan. No Employee Benefit Plan of
NSC or related trust and no such  obligation or  arrangement is in violation of,
or in default with respect to, any law, rule, regulation, order, judgment, which
violation or default would have a material  adverse effect thereon or decree nor
is NSC, any Employee  Benefit Plan of NSC, or any related trust required to take
any  action  in order to avoid  any such  violation  or  default.  No event  has
occurred,  or is (to the best of NSC's knowledge)  threatened or about to occur,
which would constitute a prohibited transaction under Section 406 of ERISA.

                (iv)    Each Pension Plan  maintained  for the  employees of NSC
has been qualified, from its inception, under Section 401(a) of the Code and any
related  trust has been an exempt trust for such period under Section 501 of the
Code.  Each  Pension Plan has been  operated in  accordance  with its terms.  No
Pension Plan which is subject to Title IV of ERISA has an  accumulated or waived
funding   deficiency  within  the  meaning  of  Section  412  of  the  Code.  No
investigation or review by the Internal Revenue Service is currently  pending or
(to the knowledge of NSC) is contemplated in which the Internal  Revenue Service
has asserted or may assert that any Pension Plan is not qualified  under Section
401(a) of the Code or that any related  trust is not exempt under Section 501 of
the Code.  Neither  NSC,  nor any  organization  to which NSC is a successor  or
parent corporation, within the meaning of Section 4069(b) of ERISA, has divested
itself of any entity  maintaining  or with an  obligation  to  contribute to any
Pension Plan which had an "AMOUNT OF UNFUNDED  BENEFIT  LIABILITIES," as defined
in Section 4001(a)(18) of ERISA, at the time of such divestiture.  No assessment
of any federal  taxes with respect to any Employee  Benefit Plan of NSC has been
made or (to the  knowledge of NSC) is  contemplated  against NSC, or any related
trust of any Pension Plan of NSC, and nothing has occurred which would result in
the assessment of

                                      -10-
<PAGE>

unrelated  business  taxable  income under the Code with respect to any Employee
Benefit  Plan of NSC.  Form 5500's have been  timely  filed with  respect to all
Pension  Plans of NSC.  No event has  occurred or (to the  knowledge  of NSC) is
threatened  or about to occur which would  constitute a reportable  event within
the meaning of Section 4043(b) of ERISA. No notice of termination has been filed
by the plan  administrator  pursuant  to Section  4041 of ERISA or issued by the
Pension  Benefit  Guaranty  Corporation  pursuant to Section  4042 of ERISA with
respect to any Pension Plan of NSC.

                (v)     NSC  does  not  currently   contribute   to,  and  since
September 16, 1980 has not effectuated  either a complete or partial  withdrawal
from,  any  multiemployer  Pension  Plan within the meaning of Section  3(37) of
ERISA.

                (vi)    Section E of the NSC DISCLOSURE  LETTER  contains a true
and correct  statement of the names,  relationship  with NSC,  present  rates of
compensation  (whether  in the form of salary,  bonuses,  commissions,  or other
supplemental  compensation now or hereafter payable), and aggregate compensation
for the fiscal year ended  December 31, 2003 of (A) each director,  officer,  or
other  employee of NSC whose  aggregate  compensation  for the fiscal year ended
December 31, 2003 exceeded US$25,000 or whose aggregate  compensation  presently
exceeds the rate of US$25,000  per annum and (B) all sales agents,  dealers,  or
distributors  of NSC. Since  [December 31, 2003, NSC has not changed the rate of
compensation of any of its directors,  officers,  employees, agents, dealers, or
distributors,  nor  has  any  Employee  Benefit  Plan  or  program  of NSC  been
instituted  or amended to increase  benefits  thereunder.  There is no contract,
agreement,  plan,  arrangement,  or  understanding  covering  any  person  that,
individually or collectively,  could give rise to the payment of any amount that
would not be deductible by NSC by reason of Section 280G of the Code.

                (vii)   NSC has not, since at least December 31, 2003,  extended
or  maintained  credit,  arranged  for the  extension  of credit,  or renewed an
extension  of credit,  in the form of a personal  loan to or for any director or
executive officer (or equivalent thereof) thereof.

        (i)     PATENTS,  TRADEMARKS,  ET  CETERA.  NSC  does  not  own or  have
pending, and is not licensed or otherwise permitted to use, any material patent,
patent application,  trademark, trademark application,  service mark, copyright,
copyright application,  franchise,  trade secret, computer program (in object or
source code or otherwise),  or other intangible property or asset (collectively,
"INTANGIBLES"),  other  than as  described  in  Section C of the NSC  DISCLOSURE
LETTER.  Each  Intangible  is  validly  issued  and is  currently  in force  and
uncontested  in all  jurisdictions  in which it is used or in which  such use is
contemplated. Section C of the NSC DISCLOSURE LETTER contains a true and correct
listing of: (i) all  Intangibles  which are owned  (either in whole or in part),
used by, or licensed to NSC or which otherwise  relate to the businesses of NSC,
and  a  description  of  each  such  Intangible   which  identifies  its  owner,
registrant, or applicant; (ii) all contracts,  agreements,  instruments, leases,
and licenses and  identification  of all parties thereto under which NSC owns or
uses any Intangible (whether or not under license from third parties),  together
with the  identification  of the owner,  registrant,  or  applicant of each such
Intangible; (iii) all contracts,  agreements,  instruments, leases, and licenses
and  identification  of all parties  thereto under which NSC grants the right to
use any  Intangible;  (iv) all validity,  infringement,  right-to-use,  or other
opinions of counsel  (whether  in-house or outside)  which concern the validity,
infringement, or enforceability of any Intangible owned or controlled by a party
other than NSC which relates to the

                                      -11-
<PAGE>

businesses,  properties,  or assets of NSC.  Except as specified in Section C of
the NSC  DISCLOSURE  LETTER,  to the  knowledge  of NSC: (v) NSC is the sole and
exclusive  owner or licensee of, and (other than those  exclusively  licensed by
NSC to a third party) has the right to use, all Intangibles;  (vi) no Intangible
is subject to any order,  judgment,  decree,  contract,  agreement,  instrument,
lease,  or license  restricting  the scope of the use thereof;  (vii) during the
last five years, NSC has not been charged with, and has not charged others with,
unfair  competition,   infringement  of  any  Intangible,  or  wrongful  use  of
confidential information,  trade secrets, or secret processes; and (viii) NSC is
not using any patentable invention,  confidential information,  trade secret, or
secret process of others.  There is no right under any  Intangible  necessary to
the businesses of NSC as presently  conducted or as it contemplates  conducting,
except  such as are so  designated  in Section C of the NSC  DISCLOSURE  LETTER.
Except as  described  in  Section C of the NSC  DISCLOSURE  LETTER,  NSC has not
infringed,  is not  infringing,  and has not received  notice of infringement in
respect of the Intangibles or asserted  Intangibles of others,  nor has NSC been
advised  by  counsel  or  others  that  it is  infringing  or may  infringe  the
Intangibles  or asserted  Intangibles  of others if any  currently  contemplated
business  activity  is  effectuated.  To  the  knowledge  of  NSC,  there  is no
infringement  by  others of  Intangibles  of NSC.  As far as NSC can  reasonably
foresee,  there is no  Intangible  or  asserted  Intangible  of others  that may
materially  adversely  affect the financial  condition,  results of  operations,
businesses,  properties,  assets,  liabilities,  or future prospects of NSC. All
material contracts, agreements,  instruments, leases, and licenses pertaining to
Intangibles  to  which  NSC is a  party,  or to  which  any  of its  businesses,
properties,  or assets are subject,  are in compliance in all material  respects
with all laws, rules, regulations, orders, judgments, and decrees binding on NSC
or to which any of its businesses,  properties,  or assets are subject.  NSC did
not register any trademark,  tradename or service mark,  design, or name used by
NSC to identify its products,  businesses, or services.  Neither any stockholder
of NSC, any director,  officer, or employee of NSC, any relative or affiliate of
any stockholder of NSC, any such director,  officer, or employee,  nor any other
corporation  or enterprise in which any  stockholder  of NSC, any such director,
officer,  or employee,  or any such relative or affiliate had or now has a 5% or
greater equity or voting or other substantial interest, possesses any Intangible
which relates to the businesses of NSC.

        (j)     QUESTIONABLE PAYMENTS.  Neither NSC, nor any director,  officer,
agent,  employee,  or other person associated with, or acting on behalf of, NSC,
nor any stockholder of NSC has, directly or indirectly: used any corporate funds
for unlawful  contributions,  gifts,  entertainment,  or other unlawful expenses
relating to political activity; made any unlawful payment to foreign or domestic
government officials or employees or to foreign or domestic political parties or
campaigns from corporate  funds;  violated any provision of the Foreign  Corrupt
Practices Act of 1977, as amended; or made any bribe, rebate, payoff,  influence
payment, kickback, or other unlawful payment.

        (k)     AUTHORITY. NSC has all requisite power and authority to execute,
deliver,  and perform  this  Agreement  and to effect the  Reincorporation.  All
necessary  corporate  proceedings  of NSC have been duly taken to authorize  the
execution,  delivery,  and performance of this Agreement and the effectuation of
the Reincorporation thereby. This Agreement has been duly authorized,  executed,
and delivered by NSC,  constitutes the legal,  valid, and binding  obligation of
NSC,  and is  enforceable  as to NSC in  accordance  with its  terms.  Except as
otherwise  set forth in this  Agreement,  no consent,  authorization,  approval,
order,  license,  certificate,  or permit of or from, or  declaration  or filing
with, any federal, state, local, or other governmental authority or any court or

                                      -12-
<PAGE>

other tribunal is required by NSC for the execution, delivery, or performance of
this Agreement or the effectuation of the  Reincorporation by NSC. No consent of
any party to any  material  contract,  agreement,  instrument,  lease,  license,
arrangement,  or understanding to which NSC is a party, or to which it or any of
its  businesses,  properties,  or  assets  are  subject,  is  required  for  the
execution,  delivery,  or performance  of this Agreement or the  Reincorporation
(except such consents  referred to in Section D of the NSC  DISCLOSURE  LETTER);
and  the  execution,  delivery,  and  performance  of  this  Agreement  and  the
effectuation  of the  Reincorporation  will not (if the consents  referred to in
Section  D of the NSC  DISCLOSURE  LETTER  are  obtained  prior to the  Closing)
violate, result in a breach of, conflict with, or (with or without the giving of
notice or the passage of time or both)  entitle any party to terminate or call a
default under, entitle any party to receive rights or privileges that such party
was not entitled to receive before this Agreement was executed  under, or create
any obligation on the part of NSC to which it was not subject immediately before
this  Agreement  was  executed  or  the  Reincorporation  was  effectuated,   as
applicable,   under,  any  term  of  any  such  material  contract,   agreement,
instrument, lease, license, arrangement, or understanding,  or violate or result
in a breach of any term of the  certificate of  incorporation  (or other charter
document) (as currently in effect or as in effect upon the  Reincorporation)  or
by-laws (as currently in effect or as in effect upon the Reincorporation)of NSC,
or (if the  provisions of this  Agreement are  satisfied)  violate,  result in a
breach of, or conflict  with any law,  rule,  regulation,  order,  judgment,  or
decree binding on NSC or to which any of its businesses,  properties,  or assets
are subject,  which violation or breach would have a material  adverse effect on
NSC. Neither NSC, nor any of its officers,  directors,  employees, or agents has
employed any broker or finder or incurred any liability for any fee, commission,
or other compensation  payable by any person on account of alleged employment as
a broker or finder, or alleged performance of services as a broker or finder, in
connection  with  or  as  a  result  of  this  Agreement  or  the   transactions
contemplated hereby and in connection herewith,  including,  without limitation,
the Reincorporation.

        (l)     STATUS OF SHARES OF NSC COMMON STOCK TO BE ISSUED.

                (i)     Assuming  without   investigation  that  the  shares  of
        Gridline  Capital  Stock  outstanding  on the  Closing  Date are validly
        authorized, validly issued, fully paid, and nonassessable, the shares of
        NSC Common  Stock to be issued  pursuant to Section  1.02(a)  hereof are
        validly  authorized  and,  when the such shares of NSC Common Stock have
        been duly delivered pursuant to the terms of this Agreement, such shares
        of  NSC  Common  Stock  will  be  validly   issued,   fully  paid,   and
        nonassessable and will not have been issued,  owned or held in violation
        of any preemptive or similar right of stockholder.

                (ii)    The shares of NSC Common Stock to be issued  pursuant to
        the to terms of such Gridline  Stock  Options and Gridline  Warrants are
        validly  authorized  and, when such shares of NSC Common Stock have been
        duly  delivered  pursuant to, and in accordance  with,  the terms of the
        Gridline Stock Options and the Gridline  Warrants against payment of the
        exercise price specified  therein,  such shares of NSC Common Stock will
        be validly issued,  fully paid, and nonassessable and will not have been
        issued, owned or held in violation of any preemptive or similar right of
        stockholder.

        (m)     INSURANCE.  All  policies  of fire and other  insurance  against
casualty  and other  losses and public  liability  insurance  carried by NSC are
described in Section F of the NSC DISCLOSURE LETTER (including the risks covered
and limits of such policies) and are in full force and effect. All

                                      -13-
<PAGE>

premiums  in  respect  of such  policies  for which  premium  notices  have been
received have been paid in full as the same become due and payable.  NSC has not
failed to give any notice or present any claim under any insurance policy in due
and timely fashion.  There are no actual claims or claims  threatened in writing
against NSC which could come within the scope of such  coverage nor are any such
policies  currently  threatened  with  cancellation.  There  are no  outstanding
requirements or  recommendations  by any insurance  company that issued a policy
with respect to any of the respective assets,  the businesses,  or operations of
NSC or by any  Board of Fire  Underwriters  or  other  body  exercising  similar
functions or by any governmental authority requiring or recommending any repairs
or other  work to be done on, or with  respect  to,  any of the assets of NSC or
requiring or  recommending  any  equipment or  facilities to be installed on any
premises from which the businesses of NSC is conducted or in connection with any
of the  respective  assets  thereof.  NSC does not  have  any  knowledge  of any
material proposed increase in applicable insurance rates or of any conditions or
circumstances  applicable  to the  businesses  thereof that might result in such
increases.   No  such  policy  is  terminable  by  virtue  of  the  transactions
contemplated by this Agreement.

        (o)     TRADING MATTERS. At the date hereof and at the Closing Date:

                (i)     the NSC Common Stock is eligible to be traded and quoted
in the over-the-counter market known as the "pink sheet market" (the "OTC");

                (ii)    NSC has and shall have performed or satisfied all of its
undertakings to, and of its obligations and requirements with, the SEC;

                (iv)    NSC has not,  and shall not have taken any  action  that
would preclude, or otherwise  jeopardize,  the inclusion of the NSC Common Stock
for quotation on the OTC or the OTC Bulletin Board.

        (p)     REORGANIZATION.

                (i)     NSC has not taken and has not  agreed to take any action
(other than actions  contemplated by this  Agreement)  that could  reasonably be
expected  to  prevent  the  transactions  contemplated  by this  Agreement  from
constituting a "reorganization"  under section 368(a)(1)(B) of the Code or as an
acquisition  of in excess of 80% of the stock of a  corporation  in exchange for
property under Section 351 of the Code. NSC is not aware of any agreement,  plan
or  other  circumstance  that  could  reasonably  be  expected  to  prevent  the
transactions contemplated by this Agreement from so qualifying.

                (ii)    NSC has no plan or intention to reacquire, and, to NSC's
knowledge,  no person related to NSC within the meaning of Treasury  Regulations
Section 1.368-1 has a plan or intention to acquire,  any of the NSC Common Stock
pursuant to Section 1.02(a) hereof.

        (q)     COMPLETENESS OF DISCLOSURE. No representation or warranty by NSC
in this Agreement  contains or, and at the Closing Date will contain,  an untrue
statement of material fact or omits or, at the Closing Date,  will omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements made not misleading.

                                      -14-
<PAGE>

        (r)     PERIODIC REPORTING.

                (i)     The NSC Common Stock has been  registered  under Section
12 of the Securities  Exchange Act of 1934, as amended (the "EXCHANGE  ACT") and
NSC is  subject  to the  periodic  reporting  requirements  of Section 13 of the
Exchange  Act.  NSC  has  heretofore  provided  to  Gridline  and  the  Gridline
Shareholders  true,  complete,   and  correct  copies  of  all  forms,  reports,
schedules,  statements, and other documents required to be filed by it under the
Exchange Act since at least April 18, 2000 as such  documents  have been amended
since the time of the  filing  thereof  (the "NSC SEC  DOCUMENTS").  The NSC SEC
Documents, including, without limitation, any financial statements and schedules
included therein, at the time filed or, if subsequently  amended, as so amended,
(i) did not  contain  any untrue  statement  of a material  fact  required to be
stated  therein  or  necessary  in  order  to make the  statements  therein  not
misleading and (ii) complied in all respects with the applicable requirements of
the  Exchange  Act and the  applicable  rules and  regulations  thereunder.  The
financial statements included in the NSC SEC Documents complied when filed as to
form in all material respects with applicable  accounting  requirements and with
the published rules and regulations of the SEC with respect  thereto,  have been
prepared in accordance  with  generally  accepted  accounting  principles in the
United States, applied on a consistent basis during the periods involved (except
as may be indicated in the notes thereto or, in the case of unaudited  financial
statements,  as permitted by the rules and  regulations of the  Commission)  and
fairly present,  subject in the case of the unaudited financial  statements,  to
customary year end audit  adjustments,  the financial  position of NSC as at the
dates thereof and the results of its operations and cash flows.

                (ii)    The Company maintains disclosure controls and procedures
required by Rule 13a-15 or 15d-15  under the  Exchange  Act;  such  controls and
procedures are effective to ensure that all material information  concerning the
Company and its  subsidiaries is made known on a timely basis to the individuals
responsible for the preparation of the Company's  filings with the SEC and other
public  disclosure  documents.  NSC has  delivered  to  Gridline  copies of, all
written  descriptions  of,  and  all  policies,   manuals  and  other  documents
promulgating,  such disclosure controls and procedures. To NSC's knowledge, each
director and executive  officer thereof has filed with the SEC on a timely basis
all  statements  required by Section 16(a) of the Exchange Act and the rules and
regulations  thereunder  since  April  18,  2000.  As used in the  this  Section
2.01(r),  the term "file"  shall be broadly  construed  to include any manner in
which a document  or  information  is  furnished,  supplied  or  otherwise  made
available to the SEC.

                (iii)   The Chief  Executive  Officer  and the  Chief  Financial
Officer of NSC have  signed,  and the  Company  has  furnished  to the SEC,  all
certifications  required by Sections  302 and 906 of the  Sarbanes-Oxley  Act of
2002; such certifications contain no qualifications or exceptions to the matters
certified  therein and have not been modified or withdrawn;  and neither NSC nor
any of its officers has received notice from any governmental entity questioning
or  challenging  the  accuracy,  completeness,  form  or  manner  of  filing  or
submission of such certifications.

                (iv)    NSC has  heretofore has provided  Gridline  complete and
correct copies of all certifications filed with the SEC pursuant to Sections 302
and 906 of  Sarbanes-Oxley  Act of 2002 and  hereby  reaffirms,  represents  and
warrants to Gridline the matters and statements made in such  certificates.

                                      -15-
<PAGE>

        (s)     COMPLIANCE WITH LAW AND GOVERNMENT REGULATIONS.

                (i)     NSC is in compliance  with,  and is not in violation of,
applicable  federal,  state,  local or foreign  statutes,  laws and  regulations
(including without  limitation,  any applicable  building,  zoning or other law,
ordinance  or  regulation)  affecting  its  properties  or the  operation of its
business. NSC is not subject to any order, decree, judgment or other sanction of
any court, administrative agency or other tribunal.

                (ii)    Each of NSC,  its  directors  and its  senior  financial
officers has consulted  with NSC's  independent  auditors and with NSC's outside
counsel  with respect to, and (to the extent  applicable  to NSC) is familiar in
all material  respects with all of the  requirements of,  Sarbanes-Oxley  Act of
2002.  NSC is in compliance  with the provisions of such act applicable to it as
of the date hereof and has  implemented  such programs and has taken  reasonable
steps,  upon the  advice of NSC's  independent  auditors  and  outside  counsel,
respectively,  to ensure  NSC's future  compliance  (not later than the relevant
statutory and regulatory  deadlines  therefore)  with all provisions of such act
which shall become applicable thereto after the date hereof.

        (t)     LEGAL  PROCEEDINGS  AND  HISTORY.  NSC hereby  represents  that,
unless otherwise  disclosed herein or in Section G of the NSC DISCLOSURE LETTER,
no officer, director or affiliate of NSC, has been, within the five years ending
on the Closing Date, a party to any bankruptcy  petition  against such person or
against  any  business  of which such  person  was  affiliated;  convicted  in a
criminal  proceeding  or subject  to a pending  criminal  proceeding  (excluding
traffic violations and other minor offenses);  subject to any order, judgment or
decree,  not  subsequently  reversed,  suspended  or  vacated,  of any  court of
competent   jurisdiction,   permanently  or  temporarily   enjoining,   barring,
suspending  or otherwise  limiting  their  involvement  in any type of business,
securities or banking activities;  or found by a court of competent jurisdiction
in a civil action,  by the SEC or the Commodity  Futures  Trading  Commission to
have violated a federal or state securities or commodities law, and the judgment
has not been reversed, suspended or vacated.

        SECTION 2.02    REPRESENTATIONS  AND  WARRANTIES  OF GRIDLINE.  Gridline
hereby represents and warrants to, and agrees with, NSC:

        (a)     ORGANIZATION AND  QUALIFICATION.  Gridline owns no subsidiary or
affiliate  corporation or owns any interest in any other enterprise  (whether or
not such enterprise is a corporation).  Section A of the letter, dated even date
herewith,  from Gridline to NSC (the "GRIDLINE  DISCLOSURE  LETTER"),  correctly
sets  forth as to  Gridline  its  place  of  incorporation,  principal  place of
business,  jurisdictions  in  which  it is  qualified  to do  business,  and the
businesses  which it presently  conducts and which it  contemplates  conducting.
Gridline is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Delaware, with all requisite power and authority,
and  all  necessary  consents,  authorizations,   approvals,  orders,  licenses,
certificates,  and permits of and from, and  declarations  and filings with, all
federal,  state,  local, and other  governmental  authorities and all courts and
other tribunals,  to own, lease,  license, and use its properties and assets and
to carry on the  businesses  in which it is now  engaged and the  businesses  in
which it  contemplates  engaging.  Gridline is duly  qualified  to transact  the
businesses  in which it is engaged.  Gridline  is in good  standing as a foreign
corporation in every jurisdiction in which its ownership, leasing, licensing, or
use  of  property  or  assets  or  the  conduct  of its  businesses  makes  such
qualification necessary.

                                      -16-
<PAGE>

         (b)  CAPITALIZATION.  The authorized capital stock of Gridline consists
of 250,000,000 shares of capital stock, divided into 20,000,000 shares of "blank
check"  preferred  stock,  par value  $0.0001 per share,  no shares of which are
outstanding, and 230,000,000 shares of Common Stock, par value $0.0001 per share
, of which 96,700,000 shares are issued and outstanding. Each of the outstanding
shares of Gridline Capital Stock is validly  authorized,  validly issued,  fully
paid,  and  nonassessable,  has not  been  issued  and is not  owned  or held in
violation of any preemptive right of  stockholders,  and is owned by the persons
or entities set forth in Section A of the GRIDLINE  DISCLOSURE  LETTER,  in each
case  free  and  clear  of all  liens,  security  interests,  pledges,  charges,
encumbrances,  stockholders'  agreements,  and voting  trusts.  Except for those
certain  options,  warrants and convertible  securities  described on SCHEDULE B
hereto, there is no outstanding security or other instrument convertible into or
exercisable  or  exchangeable  for  Gridline  Capital  Stock,  and  there  is no
commitment,  plan, or arrangement to issue, and no outstanding option,  warrant,
or other right calling for the issuance of, any share of Gridline  Capital Stock
or any  security  or other  instrument  convertible  into,  exercisable  for, or
exchangeable for Gridline Capital Stock.

        (c)     FINANCIAL  CONDITION.  Gridline  has  delivered  to NSC true and
correct  copies of the  following:  audited  balance  sheets of  Gridline  as of
September  30,  2004;  and  audited  statements  of  operations,  statements  of
stockholders'  equity,  and  statements of cash flows of Gridline for the period
from the date of  inception  through  September  30, 2004.  Such  balance  sheet
presents fairly the financial condition,  assets, liabilities, and stockholders'
equity of Gridline as of its date; such statement of operations and statement of
stockholders'  equity  presents fairly the results of operations of Gridline for
the period  indicated;  and such  statement  of cash flows  presents  fairly the
information  purported to be shown therein. The financial statements referred to
in this Section 2.02(c) have been prepared in accordance with generally accepted
accounting  principles in the United States consistently  applied throughout the
periods  involved and are in accordance  with the books and records of Gridline.
The  financial  statements  referred  to in this  Section  2.02(c)  contain  all
certifications and statements  required,  if any, by the SEC's Order, dated June
27, 2002,  pursuant to Section  21(a)(1) of the  Exchange Act (File No.  4-460),
Rule 13a-14 or 15d-14 under the Exchange Act, or 18 U.S.C. Section 1350 (Section
906 of the  Sarbanes-Oxley  Act of 2002) with  respect  to the  report  relating
thereto. Since September 30, 2004:

                (i)     There has at no time been a material  adverse  change in
        the financial condition,  results of operations,  business,  properties,
        assets, liabilities, or future prospects of Gridline.

                (ii)    Gridline has not authorized, declared, paid, or effected
        any  dividend or  liquidating  or other  distribution  in respect of its
        capital stock or any direct or indirect redemption,  purchase,  or other
        acquisition of any stock of Gridline.

                (iii)   The  operations  and  businesses  of Gridline  have been
        conducted in all respects  only in the ordinary  course,  except for the
        transactions contemplated hereby and in connection herewith.

                (iv)    There has been no accepted  purchase order or quotation,
        arrangement,  or  understanding  for  future  sale  of the  products  or
        services of Gridline that Gridline expects will not be profitable.

                                      -17-
<PAGE>

                (v)     Gridline has not suffered an extraordinary loss (whether
        or not covered by insurance) or waived any right of substantial value.

There is no fact known to Gridline which materially  adversely affects or in the
future (as far as Gridline  can  reasonably  foresee) may  materially  adversely
affect the financial  condition,  results of operations,  business,  properties,
assets,  liabilities,  or future prospects of Gridline;  provided, however, that
Gridline  expresses no opinion as to  political  or economic  matters of general
applicability.  Gridline  has made  known,  or caused to be made  known,  to the
accountants   or  auditors  who  have   prepared,   reviewed,   or  audited  the
aforementioned   consolidated   financial  statements  all  material  facts  and
circumstances  which could  affect the  preparation,  presentation,  accuracy or
completeness  thereof.  The  statement  of  operations  of Gridline for the year
ending December 31, 2004 shall be prepared in accordance with generally accepted
accounting  principles in the United States consistently  applied throughout the
periods involved,  and shall contain all certifications and statements required,
if any, by the SEC's Order, dated June 27, 2002, pursuant to Section 21(a)(1) of
the Exchange Act (File No. 4-460), Rule 13a-14 or 15d-14 under the Exchange Act,
or 18 U.S.C.  Section 1350  (Sections 302 and 906 of the  Sarbanes-Oxley  Act of
2002) with respect to the report relating thereto.

        (d)     TAX AND OTHER  LIABILITIES.  Gridline does not have any material
liability of any nature, accrued or contingent,  including,  without limitation,
liabilities for Taxes, and liabilities to customers or suppliers, other than the
following:

                (i)     Liabilities  for which full  provision  has been made on
        the balance  sheet and the notes  thereto  (the "LAST  GRIDLINE  BALANCE
        SHEET") as of  September  30,  2004 (the "LAST  GRIDLINE  BALANCE  SHEET
        DATE") referred to in Section 2.02(c); and

                (ii)    Other  liabilities   arising  since  the  Last  Gridline
        Balance Sheet Date and prior to the Closing Date in the ordinary  course
        of business (which shall not include liabilities to customers on account
        of  defective   products  or  services)  or  in   connection   with  the
        transactions contemplated hereby or in connection herewith which are not
        inconsistent with the  representations and warranties of Gridline or any
        other provision of this Agreement.

Without  limiting  the  generality  of  the  foregoing,  the  amounts  set up as
provisions  for Taxes on the Last Gridline  Balance Sheet are sufficient for all
accrued and unpaid Taxes of Gridline, whether or not due and payable and whether
or not disputed, under tax laws, as in effect on the Last Gridline Balance Sheet
Date or now in  effect,  for the  period  ended on such date and for all  fiscal
periods  prior  thereto.  The  execution,  delivery,  and  performance  of  this
Agreement by Gridline  will not cause any Taxes to be payable  other than by the
stockholders of Gridline or cause any lien, charge, or encumbrance to secure any
Taxes to be created either immediately or upon the nonpayment of any Taxes other
than on the properties or assets of the  stockholders of Gridline.  Gridline has
not been  required to file any tax returns by any  overseas tax  authorities  or
required to pay any taxes,  assessments,  and other governmental charges payable
or  remittable by it or levied upon it or its  properties,  assets,  income,  or
franchises which are due and payable. Gridline is not subject to any litigation,
governmental or other proceeding (formal or informal), or investigation pending,
threatened, or in prospect with respect to any such report or the subject matter
of such report.

                                      -18-
<PAGE>

        (e)     LITIGATION AND CLAIMS. Except as described in Section H GRIDLINE
DISCLOSURE LETTER, there is no litigation,  arbitration,  claim, governmental or
other proceeding (formal or informal), or investigation pending, threatened, or,
to the best of Gridline's knowledge, in prospect (or any basis therefor known to
Gridline),  with respect to Gridline or any of its  businesses,  properties,  or
assets.  Gridline is not affected by any present or  threatened  strike or other
labor  disturbance  nor to the knowledge of Gridline is any union  attempting to
represent any employee of Gridline as collective  bargaining agent.  Gridline is
not in violation of, or in default with respect to, any law,  rule,  regulation,
order,  judgment,  or decree which  violation  or default  would have a material
adverse  effect upon  Gridline;  nor is Gridline  required to take any action in
order to avoid such violation or default.

        (f)     PROPERTIES.

                (i)     Gridline does not own any legal or equitable interest in
any real  property.  Gridline has good title to all other  properties and assets
material to Gridline, used in its business or owned by it (except real and other
properties  and assets as are held  pursuant to leases or licenses  described in
Section B or C of the GRIDLINE DISCLOSURE LETTER),  free and clear of all liens,
mortgages,  security interests,  pledges, charges, and encumbrances (except such
as are listed in Section D of the GRIDLINE DISCLOSURE LETTER).

                (ii)    All accounts and notes receivable  reflected on the Last
Gridline  Balance Sheet, or arising since the Last Gridline  Balance Sheet Date,
have been collected,  or are and will be good and  collectible,  in each case at
the aggregate  recorded  amounts  thereof  without  right of recourse,  defense,
deduction, return of goods, counterclaim,  offset, or set off on the part of the
obligor, and, if not collected,  can reasonably be anticipated to be paid within
180 days of the date incurred.

                (iii)   All  production  in progress  of Gridline is usable,  in
current  production  and  marketable,  on a normal  basis in the  existing  film
production business of Gridline.

                (iv)    Attached as Section B of the GRIDLINE  DISCLOSURE LETTER
is a true and complete list of the classes of all tangible properties and assets
owned by Gridline  or leased or  licensed  by Gridline  from or to a third party
(including  inventory  but not  including  Intangibles,  as  defined  in Section
2.02(i)),  and with respect to such  properties and assets leased or licensed by
Gridline from or to a third party, a description  of such lease or license.  All
such  properties  and  assets  (including  Intangibles)  owned by  Gridline  are
reflected on the Last Gridline Balance Sheet (except for acquisitions subsequent
to the Last Gridline  Balance Sheet Date and prior to the Closing Date which are
either noted in Section B or C of the GRIDLINE DISCLOSURE LETTER or are approved
in writing by NSC). All real and other  tangible  properties and assets owned by
Gridline or leased or licensed by Gridline  from or to a third party are in good
and usable  condition  (reasonable  wear and tear which is not such as to affect
adversely the operation of the business of Gridline excepted).

                (v)     To the best of  Gridline's  knowledge,  no real property
owned by Gridline  or leased or  licensed  by Gridline  from or to a third party
lies in an area which is, or will be,  subject to zoning,  use, or building code
restrictions which would prohibit,  and, to the best of Gridline's knowledge, no
state of facts  relating to the actions or inaction of another  person or entity
or his or its ownership,  leasing, or licensing of any real or personal property
exists or will exist which would

                                      -19-
<PAGE>

prevent, the continued effective  ownership,  leasing, or licensing of such real
property in the businesses in which Gridline is now engaged or the businesses in
which it contemplates engaging.

                (vi)    The properties and assets (including  Intangibles) owned
by Gridline  (other than those  leased or licensed by Gridline to a third party)
or leased  or  licensed  by  Gridline  from a third  party  constitute  all such
properties  and assets  which are  necessary  to the  business  of  Gridline  as
presently conducted or as it contemplates conducting.

                (vii)   Gridline  has not  caused or  permitted  its  businesses
properties,  or assets to be used to generate,  manufacture,  refine, transport,
treat, store,  handle,  dispose of, transfer,  produce, or process any Hazardous
Substance (as such term is defined in Section  2.01(f)(v))  except in compliance
with all applicable laws, rules,  regulations,  orders,  judgments, and decrees,
and has not caused or permitted  the Release (as such term is defined in Section
2.01(f)(v))  of any  Hazardous  Substance  on or off the site of any property of
Gridline.

        (g)     CONTRACTS  AND  OTHER  INSTRUMENTS.  Section  D of the  GRIDLINE
DISCLOSURE  LETTER  contains a true and  correct  statement  of the  information
required to be  contained  therein  regarding  material  contracts,  agreements,
instruments,  leases, licenses,  arrangements, or understandings with respect to
Gridline.  Gridline has furnished to NSC: (i) the  certificate of  incorporation
and by-laws of Gridline (or, in each case, the comparable charter documents,  if
any, under applicable law) and all amendments  thereto,  as presently in effect,
certified by the Secretary or an  authorized  signatory of Gridline and (ii) the
following:  (A) true and correct copies of all material  contracts,  agreements,
and instruments  referred to in Section D of the GRIDLINE DISCLOSURE LETTER; (B)
true and  correct  copies of all  material  leases and  licenses  referred to in
Section  B or C of the  GRIDLINE  DISCLOSURE  LETTER;  and (C) true and  correct
written descriptions of all material supply, distribution, agency, financing, or
other  arrangements or  understandings  referred to in Section D of the GRIDLINE
DISCLOSURE LETTER.  Except as set forth in Section D of the GRIDLINE  DISCLOSURE
LETTER,  Gridline is not party to any  employment  agreement  with any  employee
thereof.  To the best of  Gridline's  knowledge,  none of  Gridline or any other
party to any such contract,  agreement,  instrument, lease, or license is now or
expects  in the  future to be in  violation  or breach  of, or in  default  with
respect to complying  with, any term thereof,  and each such material  contract,
agreement, instrument, lease, or license is in full force and is (to the best of
Gridline's knowledge in the case of third parties) the legal, valid, and binding
obligation  of the  parties  thereto  and  (subject  to  applicable  bankruptcy,
insolvency,  and other laws affecting the  enforceability  of creditors'  rights
generally) is  enforceable  as to them in accordance  with its terms.  Each such
material  supply,  distribution,  agency,  financing,  or other  arrangement  or
understanding is a valid and continuing  arrangement or  understanding;  none of
Gridline or any other party to any such arrangement or  understanding  has given
notice of termination or taken any action  inconsistent  with the continuance of
such arrangement or understanding;  and the execution, delivery, and performance
of this Agreement will not prejudice any such  arrangement or  understanding  in
any way.  Gridline enjoys peaceful and undisturbed  possession  under all leases
and licenses  under which it is operating.  Gridline is not party to or bound by
any  contract,   agreement,   instrument,   lease,  license,   arrangement,   or
understanding, or subject to any charter or other restriction, which has had or,
to the best of Gridline's  knowledge,  may in the future have a material adverse
effect  on  the  financial   condition,   results  of  operations,   businesses,
properties,  assets, liabilities, or future prospects of Gridline and, following
the consummation of the transactions  contemplated hereby, NSC. Gridline has not
engaged within the

                                      -20-
<PAGE>

last five years in, is  engaging  in, or  intends  to engage in any  transaction
with,  or has had within the last five  years,  now has,  or intends to have any
contract,  agreement,  instrument, lease, license, arrangement, or understanding
with,  any  stockholder  of  Gridline,  any  director,  officer,  or employee of
Gridline (except for employment  agreements  listed in Section D of the GRIDLINE
DISCLOSURE  LETTER and employment  and  compensation  arrangements  described in
Section E of the GRIDLINE DISCLOSURE  LETTER),  any relative or affiliate of any
stockholder of Gridline,  any such director,  officer, or employee, or any other
corporation  or  enterprise  in which  any  stockholder  of  Gridline,  any such
director,  officer,  or employee,  or any such relative or affiliate then had or
now has a 5% or greater equity or voting or other  substantial  interest,  other
than those  listed and so  specified  in  Section D of the  GRIDLINE  DISCLOSURE
LETTER.  The stock ledgers and stock  transfer books and the minute book records
of Gridline relating to all issuances and transfers of stock by Gridline and all
proceedings  of the  stockholders  and the  Board of  Directors  and  committees
thereof  of  Gridline  since its  incorporation  made  available  to NSC are the
original  stock  ledgers and stock  transfer  books and minute  book  records of
Gridline or exact copies thereof.  Gridline is not in violation or breach of, or
in default  with respect to, any term of its  certificate  of  incorporation  or
by-laws (or the comparable charter document, if any, under applicable law).

        (h)     EMPLOYEES.

                (i)     Gridline does not have,  or contribute  to, any pension,
profit-sharing,  option,  other  incentive  plan,  or any other type of Employee
Benefit Plan or has any  obligation to or customary  arrangement  with employees
for bonuses,  incentive compensation,  vacations,  severance pay, sick pay, sick
leave,  insurance,  service award,  relocation,  disability,  tuition refund, or
other benefits, whether oral or written, except as set forth in Section E of the
GRIDLINE  DISCLOSURE  LETTER.  Gridline  has  furnished  to NSC true and correct
copies, of all documents evidencing plans, obligations, or arrangements referred
to in Section E of the GRIDLINE  DISCLOSURE  LETTER (or true and correct written
summaries  of  such  plans,  obligations,  or  arrangements  to the  extent  not
evidenced  by  documents)  and true and correct  copies,  so  initialed,  of all
documents evidencing trusts, summary plan descriptions,  and any other summaries
or descriptions relating to any such plans.

                (ii)    Section E of the GRIDLINE  DISCLOSURE  LETTER contains a
true and correct  statement of the names,  relationship  with Gridline,  present
rates of compensation (whether in the form of salary, bonuses,  commissions,  or
other supplemental compensation now or hereafter payable), and aggregate rate of
compensation  for the fiscal year ended  December 31, 2004 of (A) each director,
officer,  or other employee of Gridline whose aggregate rate of compensation for
the fiscal year ended December 31, 2004 will exceed US$25,000 or whose aggregate
rate of compensation  presently  exceeds the rate of US$25,000 per annum and (B)
all sales agents,  dealers,  or  distributors  of Gridline.  Since September 30,
2004, Gridline has not changed the rate of compensation of any of its directors,
officers,  employees,  agents,  dealers,  or distributors,  nor has any Employee
Benefit  Plan or program of  Gridline  been  instituted  or amended to  increase
benefits thereunder.

        (i)     PATENTS,  TRADEMARKS,  ET CETERA.  Gridline does not own or have
pending,  and is not  licensed  or  otherwise  permitted  to use,  any  material
Intangible,  other than as  described  in Section C of the  GRIDLINE  DISCLOSURE
LETTER.  Each  Intangible  is  validly  issued  and is  currently  in force  and
uncontested  in all  jurisdictions  in which it is used or in which  such use is
contemplated.  Section C of the GRIDLINE  DISCLOSURE  LETTER contains a true and
correct listing of: (i) all Intangibles which

                                      -21-
<PAGE>

are owned  (either in whole or in part),  used by, or  licensed  to  Gridline or
which otherwise relate to the businesses of Gridline,  and a description of each
such Intangible which identifies its owner, registrant,  or applicant;  (ii) all
contracts,  agreements,  instruments, leases, and licenses and identification of
all parties thereto under which Gridline owns or uses any Intangible (whether or
not under license from third parties),  together with the  identification of the
owner,  registrant,  or applicant of each such Intangible;  (iii) all contracts,
agreements,  instruments, leases, and licenses and identification of all parties
thereto under which Gridline  grants the right to use any  Intangible;  and (iv)
all validity, infringement,  right-to-use, or other opinions of counsel (whether
in-house or outside) which concern the validity, infringement, or enforceability
of any  Intangible  owned or  controlled  by a party other than  Gridline  which
relates  to the  businesses,  properties,  or  assets  of  Gridline.  Except  as
specified in Section C of the GRIDLINE  DISCLOSURE  LETTER:  (v) Gridline is the
sole and  exclusive  owner or  licensee  of, and (other  than those  licensed by
Gridline  to a third  party)  has the  right to use,  all  Intangibles;  (vi) no
Intangible  is subject  to any order,  judgment,  decree,  contract,  agreement,
instrument,  lease, or license  restricting the scope of the use thereof;  (vii)
during the last five years,  Gridline  has not been  charged  with,  and has not
charged others with,  unfair  competition,  infringement of any  Intangible,  or
wrongful use of confidential  information,  trade secrets,  or secret processes;
and  (viii)  Gridline  is  not  using  any  patentable  invention,  confidential
information,  trade secret, or secret process of others. There is no right under
any Intangible necessary to the businesses of Gridline as presently conducted or
as it contemplates conducting,  except such as are so designated in Section C of
the GRIDLINE DISCLOSURE LETTER.  Gridline has not infringed,  is not infringing,
and has not received  notice of  infringement  in respect of the  Intangibles or
asserted  Intangibles  of others,  nor has  Gridline  been advised by counsel or
others  that it is  infringing  or may  infringe  the  Intangibles  or  asserted
Intangibles  of  others  if any  currently  contemplated  business  activity  is
effectuated. To the knowledge of Gridline, there is no infringement by others of
Intangibles of Gridline. As far as Gridline can foresee,  there is no Intangible
or  asserted  Intangible  of others  that may  materially  adversely  affect the
financial  condition,  results of operations,  businesses,  properties,  assets,
liabilities,  or  future  prospects  of  Gridline.  All  contracts,  agreements,
instruments, leases, and licenses pertaining to Intangibles to which Gridline is
a party, or to which any of its businesses,  properties,  or assets are subject,
are in compliance with all laws,  rules,  regulations,  orders,  judgments,  and
decrees  binding on Gridline or to which any of its businesses,  properties,  or
assets are  subject.  There is no  trademark,  tradename or service mark used by
Gridline to  identify,  respectively,  its  products,  businesses,  or services.
Neither  the  Gridline  Shareholders,  any  director,  officer,  or  employee of
Gridline,  any relative or affiliate  of the Gridline  Shareholders  or any such
director, officer, or employee, nor any other corporation or enterprise in which
the Gridline Shareholders,  any such director, officer, or employee, or any such
relative or affiliate  had or now has a 5% or greater  equity or voting or other
substantial  interest,  possesses any Intangible which relates to the businesses
of Gridline.

        (j)     QUESTIONABLE  PAYMENTS.  Neither  Gridline,  nor  any  director,
officer,  agent,  employee, or other person associated with, or acting on behalf
of, Gridline, nor the Gridline Shareholders,  has, directly or indirectly:  used
any corporate funds for unlawful contributions,  gifts, entertainment,  or other
unlawful expenses relating to political  activity;  made any unlawful payment to
foreign or domestic government  officials or employees or to foreign or domestic
political  parties or campaigns from corporate funds;  violated any provision of
the  Foreign  Corrupt  Practices  Act of 1977,  as  amended;  or made any bribe,
rebate, payoff, influence payment, kickback, or other unlawful payment.

                                      -22-
<PAGE>

        (k)     AUTHORITY.  Gridline has all  requisite  power and  authority to
execute,   deliver,   and  perform  this  Agreement.   All  necessary  corporate
proceedings  of  Gridline  have  been duly  taken to  authorize  the  execution,
delivery, and performance of this Agreement by Gridline. This Agreement has been
duly  authorized,  executed,  and delivered by Gridline,  constitutes the legal,
valid, and binding obligation of Gridline,  and is enforceable as to Gridline in
accordance with its terms.  Except as otherwise set forth in this Agreement,  no
consent,  authorization,  approval, order, license, certificate, or permit of or
from,  or  declaration  or filing with,  any  federal,  state,  local,  or other
governmental  authority  or any court or other  tribunal is required by Gridline
for the execution,  delivery,  or performance of this Agreement by Gridline.  No
consent of any party to any material  contract,  agreement,  instrument,  lease,
license, arrangement, or understanding to which Gridline is a party, or to which
its or any of its businesses, properties, or assets are subject, is required for
the execution,  delivery, or performance of this Agreement (except such consents
referred to in Section D of the GRIDLINE DISCLOSURE LETTER);  and the execution,
delivery,  and performance of this Agreement will not (if the consents  referred
to in Section D of the  GRIDLINE  DISCLOSURE  LETTER are  obtained  prior to the
Closing) violate,  result in a breach of, conflict with, or (with or without the
giving of notice or the passage of time or both)  entitle any party to terminate
or call a default under,  entitle any party to receive rights or privileges that
such party was not entitled to receive  immediately  before this  Agreement  was
executed under, or create any obligation on the part of Gridline or NSC to which
it was not subject  immediately  before this Agreement was executed  under,  any
term of any such  material  contract,  agreement,  instrument,  lease,  license,
arrangement,  or understanding,  or violate or result in a breach of any term of
the  certificate  of  incorporation  or by-laws of Gridline  (or the  comparable
charter documents,  if any, under applicable law), or (if the provisions of this
Agreement are  satisfied)  violate,  result in a breach of, or conflict with any
law,  rule,  regulation,  order,  judgment,  or decree binding on Gridline or to
which any of its businesses,  properties,  or assets are subject.  Except as set
forth in Section F of the GRIDLINE  DISCLOSURE LETTER,  neither Gridline nor any
of its  officers,  directors,  employees,  or agents has  employed any broker or
finder or incurred any liability for any fee, commission,  or other compensation
payable by any person on account of alleged employment as a broker or finder, or
alleged  performance of services as a broker or finder, in connection with or as
a result of this Agreement or the other transactions  contemplated hereby and in
connection herewith.

        (l)     INSURANCE.  All  policies  of fire and other  insurance  against
casualty and other losses and public liability insurance carried by Gridline are
described in Section H of the GRIDLINE  DISCLOSURE  LETTER  (including the risks
covered and limits of such  policies)  and are in full force and effect.  A full
and complete  copy of each such  insurance  policy has been provided to NSC, and
such policies are summarized in Section G of the GRIDLINE DISCLOSURE LETTER. All
premiums  in  respect  of such  policies  for which  premium  notices  have been
received  have been paid in full as the same  become due and  payable.  Gridline
have not  failed to give any  notice or present  any claim  under any  insurance
policy  in due  and  timely  fashion.  There  are no  actual  claims  or  claims
threatened in writing against Gridline which could come within the scope of such
coverage nor are any such policies currently threatened with cancellation. There
are no outstanding requirements or recommendations by any insurance company that
issued a policy with respect to any of the respective assets, the businesses, or
operations  of  Gridline  or by any  Board of Fire  Underwriters  or other  body
exercising  similar  functions  or by any  governmental  authority  requiring or
recommending any repairs or other work to be done on, or with respect to, any of
the respective  assets of Gridline or requiring or recommending any equipment or
facilities to be installed on any

                                      -23-
<PAGE>

premises  from which the  respective  businesses  of Gridline is conducted or in
connection with any of the respective assets thereof. Gridline does not have any
knowledge of any material proposed increase in applicable  insurance rates or of
any conditions or circumstances  applicable to the respective businesses thereof
that might result in such  increases.  No such policy is terminable by virtue of
the transactions contemplated by this Agreement.

        (m)     BUSINESS  CONDUCTED  IN NO  OTHER  NAME.  Subject  to  the  next
sentence,  all  business of  Gridline  has been  conducted  in its and for their
benefit and there are no parties  related or affiliated  with  Gridline,  either
directly or  indirectly,  which are  competing  for the  business  of  Gridline.
Gridline  conducts  business in the  following  name:  "Gridline  Communications
Corp." and, previously, under the name "Halocom, Inc."

        (n)     CUSTOMERS  AND  SUPPLIERS.  There  has  been no  termination  or
cancellation of any relationship between Gridline and any material supplier,  or
any  customer or group of customers  which,  individually  or in the  aggregate,
represented  more than five (5%) percent of the gross revenues of Gridline taken
as a whole during the period from July 1, 2004 (inception) through September 30,
20034,  nor is there  any  reason  to  believe  that any  such  terminations  or
cancellations of such magnitudes are pending or threatened.

        (o)     COMPLETENESS  OF DISCLOSURE.  No  representation  or warranty by
Gridline in this  Agreement  contains,  or at the Closing Date will contain,  an
untrue  statement of material  fact or omits or at the Closing Date will omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements made not misleading.

        (p)     COMPLIANCE WITH LAW AND GOVERNMENT  REGULATIONS.  Gridline is in
compliance in all material respects with, and is not in violation of, applicable
local or foreign statutes,  laws and regulations  (including without limitation,
any applicable building, zoning or other law, ordinance or regulation) affecting
its properties or the operation of its business.  Gridline is not subject to any
order, decree, judgment or other sanction of any court, administrative agency or
other tribunal.

        SECTION 2.03    REPRESENTATIONS   AND   WARRANTIES   OF   THE   GRIDLINE
SHAREHOLDERS.  The Gridline  Shareholders hereby represents and warrants to, and
agrees with, NSC as follows:

        (a)     REPRESENTATIONS AND WARRANTIES OF GRIDLINE.  To the knowledge of
the Gridline  Shareholders,  the  representations and warranties of Gridline set
forth in Section  2.02  hereof are true and  correct in all  material  respects.
Nothing has come to the attention of the Gridline  Shareholders  that would lead
the  Gridline  Shareholders  to believe that any  representation  or warranty of
Gridline set forth on Section 2.02 hereof is untrue or incorrect in any material
respect.

        (b)     AUTHORITY.  Gridline  and the  Gridline  Shareholders  have each
approved this Agreement and duly  authorized the execution and delivery  hereof.
The  Gridline   Shareholders  are  individuals  residing  in  the  jurisdictions
indicated  in  SCHEDULE A hereto  with full power and  authority  under the laws
thereof to execute,  deliver,  and perform this  Agreement and the  transactions
contemplated hereby and in connection herewith.  The Gridline  Shareholders have
reached the age of majority under applicable law.

                                      -24-
<PAGE>

        (c)     OWNERSHIP OF SHARES. The Gridline  Shareholders own beneficially
all of the shares of Gridline Capital Stock. The Gridline Shareholders have full
power and  authority to transfer  such shares of Gridline  Capital  Stock to NSC
under, pursuant to, and in accordance with, this Agreement,  and such shares are
free and clear of any liens,  charges,  mortgages,  pledges or encumbrances  and
such shares are not subject to any claims as to the  ownership  thereof,  or any
rights,  powers or interest  therein,  by any third party and are not subject to
any preemptive or similar rights of stockholders.

        (d)     INVESTMENT REPRESENTATIONS AND COVENANTS.

                (i)     The  Gridline  Shareholders   represent  that  they  are
acquiring  the  shares of NSC  Common  Stock to be issued  pursuant  to  Section
1.02(a)  hereof for their own  accounts and for  investment  only and not with a
view to  distribution  or resale  thereof  within the  meaning of such phrase as
defined under the Securities Act. The Gridline Shareholders shall not dispose of
any  part  or all of  such  shares  of NSC  Common  Stock  in  violation  of the
provisions of the Securities Act and the rules and regulations promulgated under
the Securities Act by the SEC and all applicable  provisions of state securities
laws and regulations.

                (ii)    The certificate or certificates  representing the shares
of NSC Common Stock shall bear a legend in  substantially  the form set forth in
Section 1.02(c) hereof.

                (iii)   The Gridline  Shareholders  acknowledge  being  informed
that the shares of NSC Common  Stock to be issued  pursuant  to Section  1.02(a)
hereof shall be  unregistered,  shall be  "RESTRICTED  SECURITIES" as defined in
paragraph  (a)  of  Rule  144  under  the  Securities  Act,  and  must  be  held
indefinitely  unless (a) they are  subsequently  registered under the Securities
Act, or (b) an  exemption  from such  registration  is  available.  The Gridline
Shareholders  further  acknowledge  that  NSC does  not  have an  obligation  to
currently register such securities for the account of Gridline Shareholders.

                (iv)    The  Gridline  Shareholders  acknowledge  that they have
been  afforded  access to all  material  information  which they have  requested
relevant to their  decision to acquire the shares of NSC Common Stock and to ask
questions of NSC's management and that, except as set forth herein,  neither NSC
nor anyone acting on behalf of NSC has made any representations or warranties to
the Gridline  Shareholders  which have induced,  persuaded,  or  stimulated  the
Gridline Shareholders to acquire such shares of NSC Common Stock.

                (v)     Either  alone,   or  together   with  their   investment
advisor(s),  the Gridline  Shareholders  have the  knowledge  and  experience in
financial and business  matters to be capable of evaluating the merits and risks
of the  prospective  investment  in the  shares  of NSC  Common  Stock,  and the
Gridline  Shareholders  are and  will be able to bear the  economic  risk of the
investment in such shares of NSC Common Stock.

                                      -25-
<PAGE>

                                   ARTICLE III

COVENANTS

        SECTION 3.01    COVENANTS OF NSC. NSC covenants  and agrees that,  after
the date  hereof  and  through  the  earlier  of the  Closing or the date of the
termination of this Agreement pursuant to Article IV hereof (the earlier of such
times, the "RELEASE TIME"),  unless Gridline will otherwise  approve in writing,
which approval will not be unreasonably withheld:

        (a)     Until the release time, except as otherwise  provided herein, no
amendment shall be made in the certificate of  incorporation  or by-laws (or, in
each case, the comparable  charter  documents,  if any, under applicable law, of
NSC).

        (b)     Until the Release Time, no share of capital stock of NSC, option
or warrant for any such share, right to subscribe to or purchase any such share,
or security  convertible  into, or  exchangeable  or  exercisable  for, any such
share,  shall be issued or sold by NSC, otherwise than as contemplated by, or in
connection with, this Agreement.

        (c)     Until the Release  Time,  no dividend  or  liquidating  or other
distribution or stock split shall be authorized,  declared, paid, or effected by
NSC in respect of the outstanding  shares of Gridline  Capital Stock.  Until the
Release Time, no direct or indirect redemption,  purchase,  or other acquisition
shall be made by NSC of shares of NSC Capital Stock.

        (d)     Until the Release  Time,  except in the  ordinary  course of its
business,  NSC shall not borrow money,  guarantee the borrowing of money, engage
in any  transaction,  or enter into any agreement  other than in connection with
the transactions contemplated hereby or in connection herewith.

        (e)     Until the Release Time, NSC will afford the officers, directors,
employees,   counsel,  agents,  investment  bankers,   accountants,   and  other
representatives  of Gridline and the Gridline  Shareholders free and full access
to the plants,  properties,  books,  and records of NSC. NSC will permit them to
make extracts  from and copies of such books and records,  and will from time to
time  furnish  Gridline  and the  Gridline  Shareholders  with  such  additional
financial  and  operating  data  and  other  information  as  to  the  financial
condition, results of operations,  businesses,  properties, assets, liabilities,
or future prospects of NSC as Gridline or the Gridline Shareholders from time to
time may  request.  Until the  Release  Time,  NSC will  cause  the  independent
certified  public  accountants  of  NSC  to  make  available  to  Gridline,  its
independent  certified public accountants,  and the Gridline  Shareholders,  the
work papers relating to the audits of NSC referred to in Section 2.01(c) of this
Agreement.

        (f)     Until the Release Time, NSC will conduct its affairs, so that on
the Closing Date, no  representation  or warranty of NSC will be inaccurate,  no
covenant  or  agreement  of NSC  will  be  breached,  and no  condition  in this
Agreement will remain  unfulfilled by reason of the actions or omissions of NSC.
Except as otherwise consented to by Gridline in writing, until the Release Time,
NSC will conduct its affairs in all respects only in the ordinary course.

        (g)     Until the Release Time, NSC will immediately  advise Gridline in
a detailed  written  notice of any material fact or occurrence or any pending or
threatened material occurrence of which

                                      -26-
<PAGE>

it  obtains  knowledge  and  which  (if  existing  and  known at the date of the
execution  of this  Agreement)  would  have  been  required  to be set  forth or
disclosed  in or pursuant to this  Agreement  or in the NSC  DISCLOSURE  LETTER,
which (if existing and known at any time prior to or at the Closing)  would make
the  performance  by  any  party  of a  covenant  contained  in  this  Agreement
impossible  or make  such  performance  materially  more  difficult  than in the
absence of such fact or occurrence,  or which (if existing and known at the time
of the Closing)  would cause a condition to any party's  obligations  under this
Agreement not to be fully satisfied.

        (h)     NSC shall use its commercially reasonable efforts to insure that
all  confidential  information  which  NSC or any  of its  officers,  directors,
employees,  counsel, agents,  investment bankers, or accountants may now possess
or may hereafter create or obtain relating to the financial  condition,  results
of operations,  businesses, properties, assets, liabilities, or future prospects
of Gridline,  any affiliate of Gridline, or any customer or supplier of Gridline
or any such affiliate shall not be published,  disclosed,  or made accessible by
any of them to any other person or entity  without the prior written  consent of
Gridline,  which written consent shall not be unreasonably  withheld;  provided,
however,  that the  restrictions  of this  sentence  shall  not apply (i) as may
otherwise  be  required  by law,  (ii) as may be  necessary  or  appropriate  in
connection with the  enforcement of this  Agreement,  or (iii) to the extent the
information shall have otherwise become publicly available. NSC shall, and shall
cause all other such persons and  entities to,  deliver to Gridline all tangible
evidence of the confidential  information relating to Gridline, any affiliate of
Gridline,  or (insofar as such  confidential  information was provided by, or on
behalf of, Gridline, or any such affiliate of Gridline) any customer or supplier
of any of them or any such affiliate to which the  restrictions of the foregoing
sentence apply immediately  after the termination of this Agreement  pursuant to
Article IV or V hereof.

        (i)     Before NSC releases any information concerning this Agreement or
any of the other  transactions  contemplated  hereby or in  connection  herewith
which is intended for or may result in public  dissemination  thereof, NSC shall
cooperate with Gridline,  shall furnish drafts of all documents or proposed oral
statements to Gridline for comment,  and shall not release any such  information
without the written consent of Gridline.  Nothing contained herein shall prevent
NSC from releasing any information if required to do so by law.

        (j)     NSC shall not make any agreement or reach any  understanding not
approved  in writing by  Gridline  as a condition  for  obtaining  any  consent,
authorization, approval, order, license, certificate, or permit required for the
consummation of the transactions contemplated by this Agreement.

        (k)     NSC shall  promptly  prepare all required or, in the  reasonable
opinion of the parties  hereto,  appropriate  Periodic  Reports (as  hereinafter
defined)  and  other  regulatory  filings  relating  to this  Agreement  and the
transactions  contemplated  hereby and in  connection  herewith,  as well as all
Periodic  Reports which NSC is required to file,  but has not  heretofore  filed
(such deliquent Periodic Reports,  "DELIQUENT PERIODIC REPORTS"). NSC shall file
with the SEC all Deliquent  Periodic  Reports  within 15 days following the date
hereof.  NSC  shall  furnish  or cause to be  furnished,  for  inclusion  in the
Periodic Reports,  such information about NSC, and NSC's security holders as may
be required or as may be reasonably requested by Gridline, and shall continue to
furnish or cause to be furnished  such  information as is necessary to keep such
information correct and complete in all material respect until the Release Time.
NSC represents and warrants that the

                                      -27-
<PAGE>

information that it has furnished to date,  taken as a whole,  does not now, and
will not at any time prior to the Release Time, (i) contain an untrue  statement
of a material  fact or (ii) omit to state a material  fact required to be stated
therein or necessary to make the statements therein not false or misleading. NSC
represents and warrants that all information  heretofore  filed thereby with the
SEC does not now,  and will not at any time prior to the Release  Time,  and the
Deliquent  Periodic  Reports  will not,  when filed with the SEC and at any time
prior to the Release Time,  (iii) contain an untrue statement of a material fact
or (iv) omit to state a material fact required to be stated therein or necessary
to make the  statements  therein  not false or  misleading.  NSC shall  take any
action  required  to be taken  by it  under  state  "blue-sky,"  securities,  or
take-over  laws in connection  with the issuance of NSC Common Stock pursuant to
the transactions  contemplated  hereby and in connection  herewith.  The filings
made by NSC  within  the past six years  with the SEC were,  if filed  under the
Exchange Act, prepared in accordance with the then existing  requirements of the
Exchange Act and the rules and  regulations  thereunder  and, if filed under the
Securities Act,  prepared in accordance  with the then existing  requirements of
the Securities Act and the rules and regulations  thereunder.  Such filings when
filed,  and the  press  releases  and  other  public  statements  NSC  has  made
subsequent to the last such filing when  considered  together with such filings,
did not at the time of filing or issuance of the press  releases or other public
statements,  as the case may be,  and (with  respect to the press  releases  and
other public statements,  when considered together with such filings) do not now
(i)  contain  an untrue  statement  of a  material  fact or (ii) omit to state a
material fact required to be stated  therein or necessary to make the statements
therein not false or misleading.

        (l)     Prior   to   the   Release   Time,    shall   not   affect   any
recapitalization, stock split, reverse stock split, or stock dividend of the NSC
Common Stock or any other security of NSC, otherwise than as contemplated by, or
in connection with, this Agreement.

                (a)     NSC shall  timely  prepare and file any  declaration  or
filing  necessary to comply with any transfer tax statutes that require any such
filing before the Closing.

                (b)     Until the  Release  Time,  NSC shall not,  and shall not
authorize or permit any officer, director,  employee, counsel, agent, investment
banker,  accountant,  or other representative of NSC, directly or indirectly, to
contemplate  or enter  into  any  transaction  the  effect  of  which  may be to
prohibit,  restrict, or delay the consummation of the transactions  contemplated
by this Agreement or impair the contemplated benefits to Gridline's stockholders
of the transactions contemplated by this Agreement.

                (c)     (i)     Following the  consummation of the  transactions
contemplated  hereby and in  connection  herewith,  NSC will cause  Gridline  to
continue its historic  business or to use a  significant  portion of  Gridline's
historic  business  assets in a  business,  in each case  within the  meaning of
section 1.368-1(d) of the Treasury Regulations, assuming that the assets of, and
the business  conducted by, Gridline at the Closing Date  constitute  Gridline's
historic business assets and historic business, respectively.

                        (ii)    Following the  consummation of the  transactions
contemplated hereby and in connection herewith,  NSC will not permit Gridline to
issue  additional  shares  that would  result in NSC losing  control of Gridline
within the meaning of section 368(c) of the Code.

                                      -28-
<PAGE>

        (d)     If required,  NSC shall use COMMERCIALLY  REASONABLE  efforts to
file  with  the  National  Association  of  Securities  Dealers,  Inc.,  or  its
affiliates, all information required by Rule 15c2-11 under the Exchange Act.

        (n)     NSC shall effect the Reincorporation prior to the Closing.

        (o)     Effective  immediately following the Closing, each member of the
Board of Directors  and each  officer of NSC shall tender his or her  respective
resignation  therefrom  and shall appoint up to five  individuals  designated by
Gridline as the sole directors of NSC.

        (p)     On or prior to the Closing  Date,  NSC shall deliver to Gridline
and the Gridline  Shareholders  the completed an updated NSC DISCLOSURE  LETTER,
dated as of the Closing Date,  which letter shall be correct and complete in all
material respects.

        SECTION 3.02    COVENANTS OF  GRIDLINE.  Gridline  covenants  and agrees
that,  after the date  hereof and  through  the  Release  Time,  unless NSC will
otherwise approve in writing, which approval will not be unreasonably withheld:

        (a)     Until  the  Release  Time,  no  amendment  will  be  made in the
certificate  of  incorporation  or by-laws  (or,  in each case,  the  comparable
charter  documents,  if any, under applicable law) of Gridline,  except for such
amendment to the certificate of  incorporation of Gridline as may be required to
allow NSC to change its to "Gridline  Communications  Corp." in connection  with
the Reorganization.

        (b)     Until the  Release  Time,  no share of Gridline  Capital  Stock,
option or warrant for any such share, right to subscribe to or purchase any such
share, or security  convertible  into, or  exchangeable or exercisable  for, any
such share, shall be issued or sold by Gridline,  otherwise than as contemplated
by, or in  connection  with,  this  Agreement.  Notwithstanding  the  foregoing,
Gridline shall be entitled to grant the incentive stock options and nonqualified
stock options to employees, consultants, and non-employee directors set forth in
SCHEDULE  3.02(b),  and Gridline shall be authorized to issue and deliver its 8%
Convertible  Notes Due September  10, 2004,  as required from time to time,  for
working capital and general corporate purposes.

        (c)     Until the Release  Time,  no dividend  or  liquidating  or other
distribution or stock split shall be authorized,  declared, paid, or effected by
Gridline in respect of the outstanding  shares of Gridline Capital Stock.  Until
the  Release  Time,  no  direct  or  indirect  redemption,  purchase,  or  other
acquisition shall be made by Gridline of shares of Gridline Capital Stock.

        (d)     Until the Release  Time,  except in the  ordinary  course of its
business,  Gridline  shall not borrow  money,  guarantee the borrowing of money,
engage in any  transaction,  or enter into any material  agreement other than in
connection with the transactions  contemplated  hereby or in connection herewith
or otherwise  pursuant to any  currently  outstanding  credit line of Gridline);
provided  that  Gridline  shall  be  authorized  to  issue  and  deliver  its 8%
Convertible  Notes Due September  10, 2004,  as required from time to time,  for
working capital and general corporate purposes.  For purposes of this Agreement,
references  to  "MATERIAL",  as well as  correlative  terms  (E.G.,  MATERIALLY,
MATERIALITY,  etc.), shall be deemed to refer to amounts of US$50,000 or more or
effects or consequences of US$50,000 or more.

                                      -29-
<PAGE>

        (e)     Until the  Release  Time,  Gridline  will  afford the  officers,
directors,  employees,  counsel, agents,  investment bankers,  accountants,  and
other representatives of NSC and lenders, investors, and prospective lenders and
investors free and full access to the plants, properties,  books, and records of
Gridline,  will permit them to make  extracts  from and copies of such books and
records,  and will from time to time furnish NSC with such additional  financial
and operating data and other information as to the financial condition,  results
of operations,  businesses, properties, assets, liabilities, or future prospects
of  Gridline  as NSC from  time to time may  request.  Until the  Release  Time,
Gridline will cause the independent  certified public accountants of Gridline to
make available to NSC and its independent  certified public accountants the work
papers relating to the audits of Gridline referred to in Section 2.02(c) of this
Agreement.

        (f)     Until the Release  Time,  Gridline  will  conduct its affairs so
that  at the  Closing,  no  representation  or  warranty  of  Gridline  will  be
inaccurate in any material respect, no covenant or agreement of Gridline will be
breached,  and no condition in this Agreement will remain  unfulfilled by reason
of the actions or omissions of Gridline. Except as otherwise consented to by NSC
in  writing,  until  the  Release  Time,  Gridline  will  use  its  commercially
reasonable  efforts to preserve the business  operations of Gridline intact,  to
keep available the services of its present personnel,  to preserve in full force
and  effect  the   contracts,   agreements,   instruments,   leases,   licenses,
arrangements,  and understandings of Gridline,  and to preserve the good will of
its suppliers, customers, and others having business relations with any of them.
Until the Release  Time,  Gridline will conduct its affairs in all respects only
in the ordinary  course,  other than in connection  with the matters  referenced
herein.

        (g)     Until the Release Time,  Gridline will immediately advise NSC in
a detailed  written  notice of any material fact or occurrence or any pending or
threatened  material  occurrence  of which it  obtains  knowledge  and which (if
existing and known at the date of the  execution of this  Agreement)  would have
been  required to be set forth or disclosed in or pursuant to this  Agreement or
the GRIDLINE  DISCLOSURE LETTER,  which (if existing and known at any time prior
to or at the  Closing)  would  make the  performance  by any party of a covenant
contained in this Agreement impossible or make such performance  materially more
difficult than in the absence of such fact or occurrence,  or which (if existing
and known at the time of the  Closing)  would cause a  condition  to any party's
obligations under this Agreement not to be fully satisfied.

        (h)     Gridline shall use its commercially reasonable efforts to insure
that  all  confidential  information  which  Gridline  or any of its  respective
officers,   directors,   employees,  counsel,  agents,  investment  bankers,  or
accountants  may now possess or may hereafter  create or obtain  relating to the
financial  condition,  results of operations,  businesses,  properties,  assets,
liabilities,  or future prospects of NSC, any affiliate thereof, or any customer
or supplier thereof or of any such affiliate shall not be published,  disclosed,
or made  accessible  by any of them to any other person or entity at any time or
used by any of them  except  in the  ordinary  course  of  business  and for the
benefit of Gridline;  provided,  however, that the restrictions of this sentence
shall not apply (A) after this Agreement is terminated pursuant to Article IV or
V hereof or  otherwise,  (B) as may  otherwise be required by law, (C) as may be
necessary or appropriate in connection  with the  enforcement of this Agreement,
or (D) to the  extent  the  information  shall have  otherwise  become  publicly
available.

                                      -30-
<PAGE>

        (i)     Before  Gridline   releases  any  information   concerning  this
Agreement or any of the  transactions  contemplated  by this Agreement  which is
intended for, or may result in, public  dissemination  thereof,  Gridline  shall
cooperate  with NSC,  shall  furnish  drafts of all  documents or proposed  oral
statements  to NSC for  comment,  and shall  not  release  any such  information
without the written  consent of NSC,  which  consent  shall not be  unreasonably
withheld.  Nothing  contained  herein shall prevent  Gridline from releasing any
information if required to do so by law.

        (j)     Gridline shall not make any agreement or reach any understanding
not  approved  in writing  by NSC as a  condition  for  obtaining  any  consent,
authorization, approval, order, license, certificate, or permit required for the
consummation of the transactions contemplated by this Agreement.

        (k)     Gridline shall furnish, or cause to be furnished,  for inclusion
in the periodic and other reports of NSC on Forms 8-K, 10-QSB, 10-KSB, 14A, 14C,
14F-1,  or  otherwise  (such  periodic  and  other  reports,  together  with all
financial statements, exhibits, amendments, and supplements thereto, in the form
filed  by NSC  with  the SEC  being  hereinafter  referred  to as the  "PERIODIC
REPORTS"),  to be filed  pursuant to the  Exchange  Act in  connection  with the
transactions  contemplated by this Agreement,  or for inclusion in NSC's filings
under state  "blue-sky,"  securities,  or take-over laws, such information about
Gridline or the Gridline Shareholders as may be required or as may be reasonably
requested  by NSC, and shall  continue to furnish or cause to be furnished  such
information as is necessary to keep such information correct and complete in all
material respect until the Release Time.  Gridline  represents and warrants that
the information that it has furnished to date,  taken as a whole,  does not now,
and will not at any time  prior to the  Release  Time,  (i)  contain  an  untrue
statement of a material  fact or (ii) omit to state a material  fact required to
be stated  therein or  necessary  to make the  statements  therein  not false or
misleading.

        (l)     Gridline shall timely prepare and file any declaration or filing
necessary to comply with any transfer tax statutes  that require any such filing
before the Closing.

        (m)     On or prior  to the  Closing  Date,  Gridline  and the  Gridline
Shareholders shall deliver to NSC Shareholders the completed an updated GRIDLINE
DISCLOSURE  LETTER,  dated as of the Closing Date, which letter shall be correct
and complete in all material respects.

        SECTION 3.03    COVENANTS  OF THE  GRIDLINE  SHAREHOLDERS.  The Gridline
Shareholders  covenant  and agree  that,  after the date  hereof and through the
Release Time, unless NSC will otherwise approve in writing,  which approval will
not be unreasonably withheld, as follows:

        (a)     The  Gridline  Shareholders  will  use  commercially  reasonable
efforts to cause Gridline to perform each covenant thereof set forth herein on a
timely basis.

        (b)     Until the earlier of the Release Time, the Gridline Shareholders
shall take no action the result of which shall be to cause  Gridline to make any
amendment in the certificate of  incorporation or by-laws (or, in each case, the
comparable charter documents, if any, under applicable law) thereof.

        (c)     Before  the  Gridline   Shareholders   release  any  information
concerning  this  Agreement  or any of the  transactions  contemplated  by  this
Agreement which is intended for, or may result in, public dissemination thereof,
the Gridline  Shareholders shall cooperate with NSC,

                                      -31-
<PAGE>

shall furnish  drafts of all  documents or proposed  oral  statements to NSC for
comment,  and shall not release any such information without the written consent
of NSC,  which consent shall not be  unreasonably  withheld.  Nothing  contained
herein shall prevent the Gridline Shareholders from releasing any information if
required to do so by law.

        (d)     The  Gridline   Shareholders  shall  furnish,  or  cause  to  be
furnished,  for  inclusion in the Periodic  Reports to be filed  pursuant to the
Exchange Act in connection with the transactions contemplated by this Agreement,
or for  inclusion  in NSC's  filings  under  state  "blue-sky,"  securities,  or
take-over laws, such information about Gridline or the Gridline  Shareholders as
may be required or as may be reasonably  requested by NSC, and shall continue to
furnish or cause to be furnished  such  information as is necessary to keep such
information correct and complete in all material respect until the Release Time.

                                   ARTICLE IV

                     CONDITIONS; ABANDONMENT AND TERMINATION

        SECTION 4.01    RIGHT OF NSC TO ABANDON.  NSC's Board of Directors shall
have the right to abandon or terminate  this  Agreement if any of the  following
conditions shall not be true or shall not have occurred,  as the case may be, as
of the specified date or dates:

        (a)     All  representations and warranties of Gridline and the Gridline
Shareholders  contained in this  Agreement  shall be accurate  when made and, in
addition,   shall  be  accurate   as  of  the   Closing   Date  as  though  such
representations  and  warranties  were then made in exactly the same language by
Gridline  or  the  Gridline  Shareholders,  as  applicable,  and  regardless  of
knowledge or lack  thereof on the part of Gridline or the Gridline  Shareholders
(as applicable) or changes beyond its control;  as of the Closing Date, Gridline
and the  Gridline  Shareholders  shall  have  performed  and  complied  with all
covenants and agreements  and satisfied all conditions  required to be performed
and complied  with by it at or before the Closing  Date,  respectively,  by this
Agreement;  and NSC shall have  received  a  certificate  executed  by the chief
executive  officer and the chief financial  officer of Gridline and the Gridline
Shareholders, dated the Closing Date, to that effect.

        (b)     NSC  shall  have  received  at  the  Closing  Date  certificates
executed  by the chief  executive  officer  and the chief  financial  officer of
Gridline and by the Gridline  Shareholders  as of such dates, to the effect that
they have  carefully  examined the Periodic  Reports,  including the  Delinquent
Periodic Reports,  and any amendment or supplement thereto,  and, to the best of
their  knowledge,  (i) neither the Periodic  Reports,  the  Delinquent  Periodic
Reports,  nor any  amendment  or  supplement  thereto  (A)  contains  an  untrue
statement of a material  fact or (B) omits to state a material  fact required to
be stated  therein or  necessary  to make the  statements  therein  not false or
misleading, provided in each case that such untrue statement or omission relates
to information  furnished by or on behalf of, or pertaining to,  Gridline or the
Gridline  security holder,  (ii) since the date hereof, no event with respect to
Gridline or the Gridline security holder has occurred which should have been set
forth in an amendment to any Periodic Report or any Deliquent  Periodic  Report,
or a supplement to any Periodic  Report or Delinquent  Periodic Report which has
not been set forth in such an amendment or  supplement,  and (iii) any contract,
agreement, instrument, lease, or license regarding Gridline required to be filed
as an exhibit to any Periodic Report or any

                                      -32-
<PAGE>

Deliqunet  Periodic  Report  has been filed with the SEC as an exhibit to or has
been incorporated as an exhibit by reference into such Periodic Report.

        (c)     Gridline and the Gridline  Shareholders  shall have delivered to
NSC at or prior to the Closing Date such other documents (including certificates
of officers of Gridline) as NSC may reasonably request in order to enable NSC to
determine  whether the conditions to their obligations under this Agreement have
been met and otherwise to carry out the provisions of this Agreement.

        (d)     All actions, proceedings, instruments, and documents required by
Gridline and the Gridline Shareholders to carry out this Agreement or incidental
thereto and all other related  legal matters shall be subject to the  reasonable
approval of counsel to NSC, and Gridline  and the  Gridline  Shareholders  shall
have furnished  such counsel such documents as such counsel may have  reasonably
requested for the purpose of enabling them to pass upon such matters.

        (e)     At the Closing,  there shall not be pending any legal proceeding
relating to, or seeking to prohibit or otherwise  challenge the consummation of,
the  transactions  contemplated  by this  Agreement,  or to  obtain  substantial
damages with respect thereto.

        (f)     There shall not have been any action  taken,  or any law,  rule,
regulation, order, judgment, or decree proposed, promulgated,  enacted, entered,
enforced,  or  deemed  applicable  to  the  transactions  contemplated  by  this
Agreement by any federal,  state,  local, or other governmental  authority or by
any court or other  tribunal,  including the entry of a preliminary or permanent
injunction,  which, in the reasonable  judgment of NSC, (i) makes this Agreement
or any of the transactions  contemplated by this Agreement illegal, (ii) results
in a delay in the  ability of  Gridline or NSC to  consummate  the  transactions
contemplated  by this  Agreement  beyond  January 31, 2005,  (iii)  requires the
divestiture  by NSC of a material  portion of the  business  of either NSC or of
Gridline, (iv) imposes material limitations on the ability of NSC effectively to
exercise  full rights of ownership of shares of Gridline  including the right to
vote such shares on all matters properly presented to the Gridline Shareholders,
or  (v)  otherwise   prohibits,   restricts,   or  delays  consummation  of  the
transactions contemplated by this Agreement or impairs the contemplated benefits
to NSC of this Agreement or any of the other  transactions  contemplated by this
Agreement.

        (g)     The parties to this Agreement shall have obtained at or prior to
the Closing Date all required  unconditional written approvals to this Agreement
and to the  execution,  delivery,  and  performance of this Agreement by each of
them of  relevant  governmental  authorities  having  jurisdiction  over  NSC or
Gridline or the subject matter of this Agreement.

        (h)     The parties to this Agreement shall have obtained at or prior to
the Closing Date all consents  required for the consummation of the transactions
contemplated  by this Agreement from any unrelated  third party to any contract,
agreement,  instrument,  lease, license,  arrangement, or understanding to which
any of them is a  party,  or to  which  any of them or any of  their  respective
businesses, properties, or assets are subject.

                                      -33-
<PAGE>

        (i)     There  shall not have been any  material  adverse  change in the
condition (financial or otherwise),  operations,  business, assets, liabilities,
earnings or prospects of Gridline since the date hereof.

        (j)     NSC shall  conduct a due  diligence  review of Gridline  and the
Gridline Shareholders,  including,  without limitation, a review of the GRIDLINE
DISCLOSURE  LETTER and the documents  referenced  therein delivered prior to the
Closing Date, and shall be reasonably satisfied with the result of such review.

        (k)     Gridline  shall enter into an  agreement,  substantially  in the
form of EXHIBIT  4.01(k),  with Gerard Werner  pursuant to which such individual
shall agree to assist NSC in the  preparation  of financial  statements  and tax
returns of NSC during the period  commencing on the Closing Date and terminating
on the date six months thereafter.

        SECTION 4.02    RIGHT  OF  GRIDLINE  AND THE  GRIDLINE  SHAREHOLDERS  TO
ABANDON. By the election of the Gridline Shareholders, the Gridline Shareholders
or, otherwise,  Gridline's Board of Directors shall have the right to abandon or
terminate this Agreement if any of the following conditions shall not be true or
shall not have occurred, as the case may be, as of the specified date or dates:

        (a)     All  representations  and  warranties  of NSC  contained in this
Agreement shall be accurate when made and, in addition,  shall be accurate as of
the Closing Date as though such representations and warranties were then made in
exactly the same language by NSC and  regardless of knowledge or lack thereof on
the part of NSC or changes beyond its control; as of the Closing Date, NSC shall
have  performed and complied with all covenants and agreements and satisfied all
conditions  required to be performed  and complied with by them at or before the
Closing Date by this  Agreement;  and Gridline shall have received  certificates
executed by the chief executive  officer and the chief financial officer of NSC,
dated the Closing Date, to that effect.

        (b)     Gridline  shall  have  received  at  the  Closing,  certificates
executed by the chief executive  officer and the chief financial officer of NSC,
dated as of such dates,  to the effect  that they have  carefully  examined  the
Periodic  Reports and the  Delinquent  Periodic  Reports,  and any  amendment or
supplement  thereto,  and,  to the  best of their  knowledge,  (i)  neither  any
Periodic  Report  or any  Delinquent  Periodic  Report,  nor  any  amendment  or
supplement  thereto (A) contains an untrue  statement of a material  fact or (B)
omits to state a material  fact  required to be stated  therein or  necessary to
make the statements therein not false or misleading,  provided in each case that
such untrue  statement  or omission  relates to  information  furnished by or on
behalf of, or pertaining to, NSC or any NSC security holder, (ii) since the date
of the filing of any Periodic  Report or Delinquent  Periodic  Report,  no event
with  respect to NSC or any NSC security  holder has occurred  which should have
been set  forth in an  amendment  or a  supplement  to such  Periodic  Report or
Delinquent  Periodic Report which has not been set forth in such an amendment or
supplement,  and (iii) any contract,  agreement,  instrument,  lease, or license
regarding  NSC required to be filed as an exhibit to any Periodic  Report or any
Delinquent  Periodic  Report  has  been  filed  as an  exhibit  to or  has  been
incorporated  as an exhibit by reference into such Periodic Report or Delinquent
Periodic Report.

                                      -34-
<PAGE>

        (c)     NSC  shall  have   delivered   to  Gridline   and  the  Gridline
Shareholders  at or  prior  to  the  Closing  such  other  documents  (including
certificates of officers of NSC) as Gridline and the Gridline  Shareholders  may
reasonably request in order to enable Gridline and the Gridline  Shareholders to
determine  whether the conditions to NSC's obligations under this Agreement have
been met and otherwise to carry out the provisions of this Agreement.

        (d)     All actions, proceedings, instruments, and documents required by
NSC to carry out this  Agreement  or  incidental  thereto and all other  related
legal matters shall be subject to the reasonable approval of counsel to Gridline
and the  Gridline  Shareholders,  and NSC  shall  have  furnished  thereto  such
documents  as such  counsel  may have  reasonably  requested  for the purpose of
enabling them to pass upon such matters.

        (e)     At the  Closing  Date,  there  shall  not be  pending  any legal
proceeding  relating  to, or seeking to  prohibit  or  otherwise  challenge  the
consummation of, the transactions  contemplated by this Agreement,  or to obtain
substantial damages with respect thereto.

        (f)     There shall not have been any action  taken,  or any law,  rule,
regulation, order, judgment, or decree proposed, promulgated,  enacted, entered,
enforced,  or  deemed  applicable  to  the  transactions  contemplated  by  this
Agreement by any federal,  state,  local, or other governmental  authority or by
any court or other  tribunal,  including the entry of a preliminary or permanent
injunction,  which,  in the  reasonable  judgment  of  Gridline,  (i) makes this
Agreement or any of the  transactions  contemplated  by this Agreement  illegal,
(ii)  results in a delay in the  ability of Gridline  or NSC to  consummate  the
transactions  contemplated  by this  Agreement  beyond  January 31, 2005,  (iii)
requires the  divestiture  by Gridline of a material  portion of the business of
either NSC or of Gridline,  (iv) imposes material  limitations on the ability of
NSC  effectively  to  exercise  full rights of  ownership  of shares of Gridline
including the right to vote such shares on all matters properly presented to the
Gridline  Shareholders,  or  (v)  otherwise  prohibits,   restricts,  or  delays
consummation of the  transactions  contemplated by this Agreement or impairs the
contemplated  benefits  to  Gridline  and  the  Gridline  Shareholders  of  this
Agreement or any of the other transactions contemplated by this Agreement.

        (g)     The parties to this Agreement shall have obtained at or prior to
the Closing Date all unconditional  required written approvals to this Agreement
and to the  execution,  delivery,  and  performance of this Agreement by each of
them of  relevant  governmental  authorities  having  jurisdiction  over  NSC or
Gridline or the subject matter of this Agreement.

        (h)     At or  prior  to the  Closing  Date,  NSC  shall  have  made all
filings,  and  taken  all  actions,  necessary  to  comply  with  all  reporting
requirements   under  federal  and  state  securities  laws  (including  without
limitation, applicable "blue-sky" laws with regard to the issuance of NSC Common
Stock as contemplated  by this Agreement)  other than the filing of Form D up to
15 days following the Closing. Without limiting the generality of the foregoing,
any prescribed periods within which a "blue sky" or securities law administrator
may  disallow  NSC's  notice of  reliance  on an  exemption  from  such  state's
requirements, shall have elapsed at or prior to the Closing Date.

        (i)     The parties to this Agreement shall have obtained at or prior to
the Closing Date all consents  required for the consummation of the transactions
contemplated  by this Agreement from any unrelated  third party to any contract,
agreement, instrument, lease, license,

                                      -35-
<PAGE>

arrangement,  or  understanding to which any of them is a party, or to which any
of them  or any of  their  respective  businesses,  properties,  or  assets  are
subject.

        (j)     Gridline  and the  Gridline  Shareholders  shall  conduct  a due
diligence  review of NSC,  including,  without  limitation,  a review of the NSC
Disclosure  Letter and the documents  referenced  therein delivered prior to the
Closing  Date,  and same  shall be  satisfactory  in the  reasonable  opinion of
Gridline and the Gridline Shareholders.

        (k)     At  the  Closing   Date,   NSC  shall  have  no  assets  and  no
liabilities,   determined  in  accordance  with  generally  accepted  accounting
principles in effect in the United  States  applied on a basis  consistent  with
that of the financial statements of NSC hereinabove referenced.

        (l)     At or prior to the Closing Date,  the officers,  directors,  and
holders of 5% or more of the outstanding NSC Common Stock  immediately  prior to
such date shall have  executed and  delivered to Gridline an agreement  mutually
acceptable  in form and  substance to each of such person or entity,  on the one
hand, and Gridline,  on the other hand, providing for restrictions on resale and
a "leak-out" of securities following the Closing Date.

        SECTION 4.03    OPTIONAL  ABANDONMENT.  In addition to the provisions of
Section  4.01 and Section  4.02 above,  the  transactions  contemplated  by this
Agreement   may  be   abandoned   or   terminated   at  or  before  the  Closing
notwithstanding  adoption and approval of this  Agreement  and the  transactions
contemplated hereby by the stockholders of the parties hereto:

        (a)     by  mutual  agreement  of the  Boards  of  Directors  of NSC and
Gridline;

        (b)     at the option of NSC's Board of Directors or Gridline's Board of
Directors,  if the Closing Date shall not have occurred on or before January 31,
2005;

        (c)     at the option of NSC's Board of Directors,  if facts exist which
render  impossible  compliance  with one or more of the  conditions set forth in
Section 4.01 and such are not waived by NSC; and

        (d)     at  the  option  of  Gridline's  Board  of  Directors  or by the
election of the Gridline  Shareholders  if facts exist which  render  impossible
compliance with one or more of the conditions set forth in Section 4.02 and such
are not waived by Gridline.

        SECTION 4.04    EFFECT OF ABANDONMENT.  If the transactions contemplated
by this  Agreement  are  abandoned or terminated as provided for in this Article
IV,  except for  Sections  3.01(h),  3.02(h),  and 4.03,  this  Agreement  shall
forthwith become wholly void and of no further force or effect without liability
on the part of either  party to this  Agreement  or on the part of any  officer,
director,  controlling person (if any), employee, counsel, agent, or stockholder
thereof; provided,  however, that nothing in this Section 4.04 shall release NSC
or Gridline or any officer,  director,  controlling  person (if any),  employee,
counsel,  agent, or stockholder  thereof from liability for a willful failure to
carry out its respective obligations under this Agreement.

                                      -36-
<PAGE>

                                    ARTICLE V

                                  MISCELLANEOUS

        SECTION 5.01    EXPENSES.  Whether or not the transactions  contemplated
in this Agreement are consummated, all costs and expenses incurred in connection
with this Agreement and the transactions  contemplated  hereby,  will be paid by
the party incurring such expense or as otherwise agreed to herein.

        SECTION 5.02    BROKERS  AND  FINDERS.   Each  of  the  parties   hereto
represents,  as to itself, that no agent,  broker,  investment banker or firm or
person is or will be  entitled  to any  broker's  or  finder's  fee or any other
commission  or  similar  fee  in  connection   with  any  of  the   transactions
contemplated by this Agreement.

        SECTION 5.03    NECESSARY  ACTIONS.  Subject to the terms and conditions
herein provided, each of the parties hereto agrees to use all reasonable efforts
to take,  or cause to be taken,  all action and to do, or cause to be done,  all
things  necessary,  proper or advisable under applicable laws and regulations to
consummate and make effective the  transactions  contemplated by this Agreement.
In the event at any time after the Closing,  any further  action is necessary or
desirable  to carry out the  purposes of this  Agreement,  the proper  executive
officers  and/or  directors  of NSC or  Gridline,  as the  case  may be,  or the
relevant  Gridline  Shareholders  or  Gridline  Shareholders  will take all such
necessary action.

        SECTION 5.04    EXTENSION  OF TIME;  WAIVERS.  At any time  prior to the
Closing Date:

        (a)     NSC may (i)  extend the time for the  performance  of any of the
obligations or other acts of Gridline or any Gridline  Shareholders  or Gridline
Shareholders,  (ii) waive any inaccuracies in the representations and warranties
of Gridline or any Gridline Shareholders or Gridline Shareholders,  or contained
herein or in any document  delivered pursuant hereto by Gridline or any Gridline
Shareholders or Gridline  Shareholders,  and (iii) waive  compliance with any of
the agreements or conditions contained herein to be performed by Gridline or any
Gridline Shareholders or Gridline Shareholders. Any agreement on the part of NSC
to any  such  extension  or  waiver  will  be  valid  only  if set  forth  in an
instrument, in writing, signed on behalf of NSC.

        (b)     Gridline  and  the  Gridline  Shareholders  (by  action  of  the
Gridline  Shareholders),  may (i) extend the time for the  performance of any of
the  obligations  or other  acts of NSC,  (ii)  waive  any  inaccuracies  in the
representations  and  warranties  of NSC  contained  herein  or in any  document
delivered  pursuant  hereto by NSC and (iii)  waive  compliance  with any of the
agreements or conditions  contained herein to be performed by NSC. Any agreement
on the part of Gridline  and to any such  extension or waiver will be valid only
if set forth in an instrument, in writing, signed on behalf of Gridline.

        SECTION 5.05    NOTICES.  Any notice or other communication  required or
permitted  to be given  hereunder  shall be in  writing  and  shall be mailed by
certified mail, return receipt requested or by the most nearly comparable method
if mailed  from or to a  location  outside  of the  United  States or by Federal
Express,  Express  Mail,  or similar  overnight  delivery or courier  service or

                                      -37-
<PAGE>

delivered  (in  person or by  telecopy,  telex,  or  similar  telecommunications
equipment)  against  receipt  to the  party  to  which  it is to be given at the
address of such party set forth in the introductory  paragraph to this Agreement
(or to such  other  address  as the party  shall  have  furnished  in writing in
accordance  with the provisions of this Section  5.05).  Any notice to NSC or to
Gridline shall be addressed to the attention of the Corporate Secretary.  A copy
of any  and all  notices  to  Gridline  or any  Gridline  Shareholder  shall  be
delivered  in  accordance  with this  section to Thompson & Knight LLP, 333 Clay
Street, Suite 3300, Houston, Texas 77002-4499 Attention:  Robert J. Viguet, Jr.,
and Reitler  Brown & Rosenblatt  LLC,  800 Third  Avenue,  21st Floor,  New York
10022,  Attention:  Robert Steven Brown, Esq. Any notice or other  communication
given by certified mail (or by such comparable  method) shall be deemed given at
the time of  certification  thereof  (or  comparable  act),  except for a notice
changing a party's  address  which  will be deemed  given at the time of receipt
thereof. Any notice given by other means permitted by this Section 5.05 shall be
deemed given at the time of receipt thereof.

        SECTION 5.06    PARTIES IN INTEREST.  This  Agreement  will inure to the
benefit of and be binding upon the parties hereto and the respective  successors
and assigns.  Nothing in this  Agreement is intended to confer,  expressly or by
implication,  upon any other person any rights or remedies under or by reason of
this Agreement.

        SECTION 5.07    COUNTERPART.  This  Agreement  may be executed in one or
more  counterparts,  each of which will be deemed an original  and all  together
will  constitute  one  document.  The  delivery  by  facsimile  of  an  executed
counterpart of this Agreement will be deemed to be an original and will have the
full force and effect of an original executed copy.

        SECTION 5.08    SEVERABILITY.  The  provisions of this Agreement will be
deemed severable and the invalidity or  unenforceability of any provision hereof
will not affect the validity or  enforceability  of any of the other  provisions
hereof. If any provisions of this Agreement,  or the application  thereof to any
person or any circumstance, is illegal, invalid or unenforceable, (a) a suitable
and equitable  provision will be substituted  therefor in order to carry out, so
far as may be valid and  enforceable,  the intent and purpose of such invalid or
unenforceable  provision,  and  (b) the  remainder  of  this  Agreement  and the
application  of such  provision to other  persons or  circumstances  will not be
affected by such  invalidity or  unenforceability,  nor will such  invalidity or
unenforceability affect the validity or enforceability of such provision, or the
application thereof, in any other jurisdiction.

        SECTION 5.09    HEADINGS.  The Article and Section headings are provided
herein for  convenience  of reference  only and do not constitute a part of this
Agreement  and  will not be  deemed  to limit  or  otherwise  affect  any of the
provisions hereof.

        SECTION 5.10    GOVERNING LAW.

        (a)     This  Agreement will be deemed to be made in and in all respects
will be interpreted, construed and governed by and in accordance with the law of
the State of Texas, without regard to the conflict of law principles thereof.

                                      -38-
<PAGE>

        (b)     EACH  OF THE  PARTIES  HEREBY  IRREVOCABLY  AND  UNCONDITIONALLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF
THE  FEDERAL  COURTS  SITTING  IN THE  STATE  OF NEW  YORK  IN  ALL  ACTIONS  OR
PROCEEDINGS  ARISING OUT OF OR RELATING TO THIS  AGREEMENT.  EACH OF THE PARTIES
AGREES  THAT ALL  ACTIONS OR  PROCEEDINGS  ARISING  OUT OF OR  RELATING  TO THIS
AGREEMENT  MUST BE  LITIGATED  EXCLUSIVELY  IN ANY SUCH  STATE OR, TO THE EXTENT
PERMITTED  BY LAW,  FEDERAL  COURT THAT SITS IN THE  COUNTY OF HARRIS,  STATE OF
TEXAS, AND ACCORDINGLY, EACH PARTY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR  HEREAFTER  HAVE  TO THE  LAYING  OF THE  VENUE  OF ANY  SUCH  ACTION  OR
PROCEEDING IN ANY SUCH COURT. EACH PARTY FURTHER IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS IN THE MANNER  PROVIDED FOR NOTICES IN SECTION 5.05.  NOTHING IN THIS
AGREEMENT OR ANY OTHER  TRANSACTION  DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY
TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

        (c)     EACH  PARTY  WAIVES  ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING  DIRECTLY OR INDIRECTLY  ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT,  TORT OR ANY OTHER THEORY).  EACH OF THE PARTIES (1) CERTIFIES THAT NO
REPRESENTATIVE,  AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,  SEEK
TO  ENFORCE  THE  FOREGOING  WAIVER AND (2)  ACKNOWLEDGES  THAT IT AND THE OTHER
PARTIES  HERETO HAVE BEEN INDUCED TO ENTER INTO THIS  AGREEMENT  BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.10(c).

        SECTION 5.11    SURVIVAL OF REPRESENTATIONS  AND WARRANTIES.  All terms,
conditions, representations and warranties set forth in this Agreement or in any
instrument,  certificate,  opinion,  or other writing  providing for in it, will
survive  the Closing  and the  delivery of the shares of NSC Common  Stock to be
issued  hereunder  at the  Closing  for a  period  of one  year  after  Closing,
regardless  of any  investigation  made by or on  behalf  of any of the  parties
hereto.

        SECTION 5.12    ASSIGNABILITY.  This Agreement will not be assignable by
operation of law or otherwise and any attempted  assignment of this Agreement in
violation of this subsection will be void ab initio.

        SECTION 5.13    AMENDMENT.  This  Agreement  may  be  amended  with  the
approval of the Gridline Shareholders and the boards of directors of each of NSC
and  Gridline  at any  time.  This  Agreement  may not be  amended  except by an
instrument, in writing, signed on behalf of each of the parties hereto.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      -39-
<PAGE>

        IN WITNESS WHEREOF,  the parties hereto have executed and delivered this
Agreement  in a manner  legally  binding  upon them as of the date  first  above
written.

                                        NORTH SHORE CAPITAL IV, INC.

                                        BY     /s/ Gerard Werner
                                          -----------------------------------
                                            NAME:  GERARD WERNER
                                            TITLE: PRESIDENT

ATTEST:

   /s/ Gerard Werner
-----------------------------------
NAME:  GERARD WERNER
TITLE: SECRETARY

                                        GRIDLINE COMMUNICATIONS CORP.

                                        BY        /s/ Blaize Kaduru
                                          -----------------------------------
                                             NAME:
                                             TITLE:

ATTEST:

   /s/ Blaize Kaduru
-----------------------------------
NAME:  BLAIZE KADURU
TITLE: SECRETARY

                                        GRIDLINE SHAREHOLDERS:

                                        AVENTURA HOLDING, INC.

                                        BY      /s/ Jukka Tolonen
                                          -----------------------------------
                                             NAME:
                                             TITLE:

         SIGNATURE PAGE TO SHARE EXCHANGE AND REORGANIZATION AGREEMENT

<PAGE>

                                        B2NK INVESTMENTS LLC

                                        BY      /s/ W. Randal Miller
                                          -----------------------------------
                                             NAME:  W. RANDAL MILLER
                                             TITLE: MEMBER

                                                 /s/ Adam Berlew
                                        -------------------------------------
                                        NAME:  ADAM BERLEW

                                                 /s/ George Boitano
                                        -------------------------------------
                                        NAME:  GEORGE BOITANO

                                        BOTIMOR CAPITAL LLC

                                        BY      /s/ Robert Yashus
                                          -----------------------------------
                                             NAME:  ROBERT YASHUS
                                             TITLE: MANAGER

                                        ENERGY GENERATION CORP.

                                        BY      /s/ Phillip P. Gennarelli
                                          -----------------------------------
                                             NAME:  PHILLIP P. GENNARELLI
                                             TITLE: PRESIDENT

                                        GOLDSTEIN & FAUCETT

                                        BY      /s/ Edward Colostein
                                          -----------------------------------
                                             NAME:  EDWARD COLOSTEIN
                                             TITLE: PARTNER

                                                 /s/ Richard W. Hunt
                                        -------------------------------------
                                        NAME:  RICHARD W. HUNT

         SIGNATURE PAGE TO SHARE EXCHANGE AND REORGANIZATION AGREEMENT

<PAGE>

                                               /s/ William R. Hunt
                                        -------------------------------------
                                        NAME:  WILLIAM R. HUNT

                                               /s/ Sonja M. Hunt
                                        -------------------------------------
                                        NAME:  SONJA M. HUNT

                                        iGate INCORPORATED

                                        BY      /s/ Vernon L. Jackson
                                        -------------------------------------
                                             NAME:  VERNON L. JACKSON
                                             TITLE: CHAIRMAN AND CEO

                                               /s/ Jamila E. Jefferson
                                        -------------------------------------
                                        NAME:  JAMILA E. JEFFERSON

                                               /s/ Blaize N. Kaduru
                                        -------------------------------------
                                        NAME:  BLAIZE N. KADURU

                                        SERENGETI GROUP LP

                                        BY BENELUX INVESTMENT HOLDINGS LTD.,
                                        ITS GENERAL PARTNER

                                        BY      /s/ Hywel Jones
                                        -------------------------------------
                                             NAME:  HYWEL JONES
                                             TITLE: DIRECTOR, BENELUX INVESTMENT
                                                    HOLDINGS LTD.

                                               /s/ Ray Marz
                                        -------------------------------------
                                        NAME:  RAY MARZ

                                               /s/ Stanford Milnes
                                        -------------------------------------
                                        NAME:  STANFORD MILNES

         SIGNATURE PAGE TO SHARE EXCHANGE AND REORGANIZATION AGREEMENT
<PAGE>

                                        NATIONAL FINANCIAL SERVICES GROUP

                                        BY     /s/ Richard W. Hunt
                                        -------------------------------------
                                             NAME:  RICHARD W. HUNT
                                             TITLE:  PRESIDENT

                                               /s/ Herbert Orji
                                        -------------------------------------
                                        NAME:  HERBERT ORJI

                                               /s/ Richard Pattin
                                        -------------------------------------
                                        NAME:  RICHARD PATTIN

                                               /s/ Matthew Prebeg
                                        -------------------------------------
                                        NAME:  MATTHEW PREBEG

                                               /s/ Steven Smith
                                        -------------------------------------
                                        NAME:  STEVEN SMITH

                                               /s/ B.K. Son
                                        -------------------------------------
                                        NAME:  B.K. SON

                                               /s/ Eric Sunsvold
                                        -------------------------------------
                                        NAME:  ERIC SUNSVOLD

                                               /s/ Jukka Tolonen
                                        -------------------------------------
                                        NAME:  JUKKA TOLONEN

                                               /s/ Helena Wahala
                                        -------------------------------------
                                        NAME:  HELENA WAHALA

         SIGNATURE PAGE TO SHARE EXCHANGE AND REORGANIZATION AGREEMENT
<PAGE>

                                               /s/ Duncan E. Wine
                                        -------------------------------------
                                        NAME:  DUNCAN E. WINE
                                        HALOCOM LP

                                        BY LOGO SHIPPING LTD.,
                                           ITS GENERAL PARTNER

                                        BY     /s/ Hywel Jones
                                        -------------------------------------
                                             NAME:  HYWEL JONES
                                             TITLE: DIRECTOR, LOGO SHIPPING LTD.

                                               /s/ Mark Witt
                                        -------------------------------------
                                        NAME:  MARK WITT

                                        WSS INVESTMENTS LLC

                                        BY      /s/ Michael Straus
                                        -------------------------------------
                                             NAME:  MICHAEL STRAUS
                                             TITLE: MEMBER

                                               /s/ Miguel Zarraga
                                        -------------------------------------
                                        NAME:  MIGUEL ZARRAGA

                                               /s/ Pertti Luhanto
                                        -------------------------------------
                                        NAME:  PERTTI LUHANTO

                                        AVERCAP, OY

                                        BY      /s/ Pertti Luhanto
                                        -------------------------------------
                                             NAME:  PERTTI LUHANTO
                                             TITLE: PRESIDENT

         SIGNATURE PAGE TO SHARE EXCHANGE AND REORGANIZATION AGREEMENT
<PAGE>

<TABLE>
<CAPTION>
                                                                                            SCHEDULE A

DATE                 LAST NAME           FIRST NAME              AMOUNT          SHARES             COMMENTS
<C>            <C>                    <C>                        <C>             <C>          <C>

               Aventura Holding,
  7/1/2004     Inc.                                                100.00         1,000,000
07/01/2004     B2NK Investments LLC                                700.00         7,000,000
07/01/2004     Berlew                 Adam                          50.00           500,000
07/01/2004     Boitano                George                        50.00           500,000
07/01/2004     Botimor Capital LLC                                 500.00         5,000,000
               Energy Generation
10/08/2004     Corp.                                               100.00         1,000,000
07/01/2004     Faucett                Goldstein          & W.       50.00           500,000
10/04/2004     Hunt                   Richard                       10.00           100,000
                                      William R &
10/04/2004     Hunt                   Sonja M.                      10.00           100,000
07/01/2004     iGate Incorporated                                2,100.00        21,000,000
11/08/2004     Jefferson              Jamila Blaize      E.        100.00         1,000,000
07/01/2004     Kaduru                 NOMINEE                    2,100.00        21,000,000
07/01/2004     Marz                   Ray                           10.00           100,000
07/01/2004     Milnes                 Stanford                     250.00         2,500,000
10/28/2004     National Finacial Services Group                      2.50            25,000
07/01/2004     Orji                   Herbert                      100.00         1,000,000
07/01/2004     Pattin                 Richard                      110.00         1,100,000
07/01/2004     Prebeg                 Matthew                       50.00           500,000
07/01/2004     Smith                  Steven                        50.00           500,000
07/01/2005     Son                    B.                 K.         50.00           500,000
07/01/2004     Sunsvold               Eric                          20.00           200,000
                                                                                              Transferred 2,000,000
07/01/2004     Tolonen                Jukka                        400.00         2,000,000                12.03.04

                                                                                              Transferred 2,000,000
07/01/2004     Wahala                 Helena  Duncan               350.00         1,500,000                12.03.04
07/01/2004     Wine                   NOMINEE            E.      2,100.00        21,000,000
11/02/2004     Witt                   Mark                          50.00           500,000
07/01/2004     WSS Investments LLC                                 250.00         2,500,000
10/28/2004     Zarraga                Miquel             D.          7.50            75,000
                                                                     ----
12/03/2004     Luhanto                Pertti                                      2,000,000
12/03/2004     Avercap, Oy                                                        2,000,000
                                                                 --------------------------
                                                                 9,670.00        96,700,000
</TABLE>

                                      A-1
<PAGE>

                   [REMAINING SCHEDULES AND EXHIBITS OMITTED]EXHIBIT 10.2

                 SOLUTION(S) & PRODUCT(S) DEVELOPMENT AGREEMENT

              THIS AGREEMENT is made this ___ day of July, 2004 ("Effective
Date") by and between HALOCOM INC. A DELAWARE CORPORATION WITH ITS PRINCIPAL
PLACE OF BUSINESS AT 14505 TORREY CHASE BLVD., SUITE 400A, HOUSTON, TEXAS 77014
(HaloCom), and iGate Inc., an Indiana corporation with its principal place of
business at 4350 Brownsboro Road, Suite 110, Louisville, KY 40207 ("iGate").

              WHEREAS, iGate has agreed to develop a Technical Solution and
Product Package, also known as "the Packages" of high-speed data transport over
power lines for both low voltage system, and medium voltage system respectfully;
and

              WHEREAS, HaloCom intends to use the iGate Technical Solution and
Product Package of high-speed data transport over power lines in its business
operations, as defined herein;

              NOW THEREFORE, in consideration of the mutual covenants and
conditions set forth below, the parties hereto agree as follows:

1.     DEFINITIONS.

              The following terms shall have the indicated meanings:

       1.1.   "AFFILIATE" of a party shall mean any person, partnership,
              corporation or other business entity that, directly or indirectly,
              owns or controls, is under common ownership or control with, or is
              owned or controlled by such party, including any entity in which
              such party owns more than twenty percent (20%) of the equity or
              voting securities.

       1.2.   "CONFIDENTIAL INFORMATION" shall mean all ideas and information of
              any kind which relate to the disclosing party's technology,
              know-how, technical data, products, software, works of authorship,
              assets, operations, contractual relationships, plans or any other
              aspects of its business which are disclosed or made available by
              either party hereto to the other pursuant to the provisions
              hereof, and which are identified or marked as confidential or
              proprietary by the disclosing party, or if disclosed orally, which
              are reduced to a written listing or summary marked as confidential
              or proprietary by the disclosing party within two (2) weeks of
              such oral disclosure. Without limiting the generality of the
              foregoing, HaloCom acknowledges that information relating to or
              comprising the Licensed Products or the Documentation, or
              disclosed to HaloCom by iGate pursuant to Article 3 hereof, shall
              be the Confidential Information of iGate.

       1.3.   "TECHNICAL SOLUTION AND PRODUCT PACKAGE" or "the Packages" shall
              mean all patents, drawings, parts lists, firmware, engineering
              changes notices, design notes and all such data needed to
              implement the solution and service(s) to be delivered

<PAGE>

              by the product(s). This iGate technology and solution shall
              include all local area network for simultaneous, bi-directional
              transmission of video bandwidth signals technology owned by iGate,
              whether patented or unpatented, including but not limited to the
              inventions set forth in U.S. patent Nos. 5,537,142 and 6,240,554.

       1.4    "APPLICATION OF PRODUCT" means HoloCom's deployment of the Package
              for its own service or its customer's service execution.

       1.5    "CONTRACT TERM" shall have the meaning set forth in Section 8.1
              herein.

       1.6    "TERRITORY" means that the geographical territory covered by this
              agreement is global, which is all countries, including the United
              States of America.

       1.7    "iGate TECHNOLOGY" means all technologies and know-how including
              but not limited to hardware and software which are used for the
              Package. All information and ideas presented to HaloCom with or
              without documentation.

       1.8    "HALOCOM TECHNOLOGY" means all knowledge, findings and know-how
              generated through field application of the Package or its own
              business execution using the Package by HaloCom, which is not yet
              materialized or patented by iGate. However, Any technology which
              is common sense or general practice of the industry shall not be
              HaloCom's technology.

2.     RIGHTS TO BE GRANTED

       2.1.   GRANT FROM iGate. On the terms and subject to the conditions set
              forth herein, iGate hereby grants to HaloCom a non-exclusive right
              to use, market, sell, install, maintain and repair the Technical
              Solution and Product Package of Power Lines Communication.

       2.2.   CERTAIN LICENSE LIMITATIONS

              2.2.1. HaloCom shall not have the right, directly or indirectly,
                     to sublicense any or all rights hereunder without the prior
                     written consent of iGate.

3.     DELIVERY OF THE TECHNICAL SOLUTION AND PRODUCT PACKAGE AND GENERAL
       CO-OPERATION.

       3.1.   DELIVERY OF THE PACKAGE. As soon as practicable after the
              Effective Date, but in any event within thirty (30) days
              thereafter, iGate shall begin to create deliverables according to
              the contents and schedule as outlined in Appendix 1.

                                       2
<PAGE>

              Nonetheless, iGate shall keep rights to change and modify any
              technical specifications shown in Appendix 1 during its
              development process. These changes and modification shall be
              informed to HaloCom in timely manner.

3.2.   TECHNICAL ASSISTANCE

       3.2.1  iGate hereby agrees to provide technical assistance on a
              commercially reasonable basis, upon the request of HaloCom, the
              scope and duration of such request to be provided in writing to
              iGate. To the extent that iGate seeks compensation for such
              assistance, the parties shall agree on a value for such assistance
              and on the payment terms.

3.3    TRAINING

       3.3.1  As part of this product development agreement, iGate will provide
              training and information for HaloCom's assigned work-force so that
              the latter can have an understanding of its services/products,
              applications, and other relevant procedures of the Power Line
              Communications Technology developed by iGate for HaloCom. The
              management of each party will each have the sole discretion to
              determine the numbers, levels of skills of its personnel assigned
              to HaloCom's program as stipulated in this agreement, and the type
              of support resources it will make available. Expenses for training
              program will be borne by the party incurring the expense unless
              otherwise agreed.

3.4    PROMOTION

       3.4.1  iGate will provide support for HaloCom in its seminars, open
              houses, public relations, events, press releases, testimonials,
              demonstrations, trade shows, conventions, and conferences efforts
              when appropriate. The content of all promotional
              materials/activities by HaloCom will be subject to advance written
              approval by iGate, insofar as their content to technology is
              concerned.

3.5    INSTALLATION AND MAINTENANCE OF PRODUCTS

              iGate will help with HaloCom's installation and maintenance for
              products sold as a result of activities associated with this
              product and development agreement at iGate's standard prices, if
              requested by HaloCom.

3.6    DEMO AND TRIAL EQUIPMENT

       3.6.1  iGate will provide the products to HaloCom or its prospective
              customers be used temporarily in customer demonstrations and pilot
              programs as part of its support process. These products will only
              be available after completion of the final product development.

                                       3
<PAGE>

       3.7    COLLATERAL MATERIALS

              3.7.1  iGate will provide to HaloCom reasonable quantities of
                     collateral materials, at no cost and as identified and
                     agreed to by both party, as part of the customer support
                     process.

4.     FEE AND OTHER TERMS

       4.1.   FEE. In partial consideration for the efforts to create the
              Technical Solution and Product Package herein by iGate, HaloCom
              agrees to pay to iGate a Fee as outlined in Appendix 2.

       4.2.   CO-BRANDING. All products and systems within the Technical
              Solution and Product Package, when delivered, shall bear on their
              exterior an insignia provided to HaloCom by iGate.

5.     REPRESENTATIONS.

       5.1.   REPRESENTATION OF iGate. iGate hereby represents and warrants to
              HaloCom as follows:

              5.1.1  iGate is a corporation duly organized, validly existing and
                     in good standing under the laws of the jurisdiction of its
                     organization and has all requisite power and authority to
                     enter into this Agreement, to perform its obligations
                     hereunder, and to consummate the transactions contemplated
                     hereby.

              5.1.2  iGate has taken all corporate action necessary to authorize
                     its execution and delivery of this Agreement, its
                     performance of its obligations hereunder, and its
                     consummation of the transactions contemplated hereby. This
                     Agreement constitutes a valid and binding obligation of
                     iGate, enforceable in accordance with its terms, subject to
                     bankruptcy, reorganization, insolvency, moratorium, and
                     similar laws affecting creditors' rights generally and to
                     general principles of equity.

              5.1.3  The execution and delivery by iGate of this Agreement, its
                     consummation of the transactions contemplated hereby, and
                     its compliance with the provisions hereof, will not (i)
                     violate or conflict with its Certificate of Incorporation
                     or By-Laws (ii) violate, conflict with, or give rise to any
                     right of termination, cancellation, or acceleration under
                     any agreement, lease, security, license, permit, or
                     instrument to which iGate or any of its subsidiaries is a
                     party, (iii) violate or conflict with any laws, rules, or
                     regulations, or (iv) require any consent, approval or other
                     action of, notice to, or filing with any entity or person
                     (governmental or private).

              5.1.4  There are no claims, judgments or settlements to be paid by
                     iGate or pending claims or litigation relating to the
                     Licensed Technology and Solution Package or the
                     Documentation.

                                       4
<PAGE>

              5.1.5  iGate has legal right, power and authority to enter into
                     this Agreement and to grant all of the right, title and
                     interest in and to the Technical Solution and Product
                     Package and the Documentation granted herein, and has no
                     other outstanding agreements or obligations inconsistent
                     with the terms and provisions of this Agreement.

              5.1.6  iGate will provide to HaloCom the intellectual property to
                     any and all updates to the Technical Solution and Product
                     Package as may be delivered during the term of this
                     Agreement and at no additional charge to HaloCom.

              5.1.7  EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION, iGate HEREBY
                     DISCLAIMS ALL EXPRESS OR IMPLIED REPRESENTATIONS AND
                     WARRANTIES INCLUDING BUT NOT LIMITED TO (A) ANY IMPLIED
                     WARRANTY OF MERCHANT ABILITY OR FITNESS FOR A PARTICULAR
                     PURPOSE, (B) ANY WARRANTY THAT HALOCOM'S RIGHTS IN THE
                     TECHNICAL SOLUTION AND PRODUCT PACKAGE OR PATENTS ARE VALID
                     AND ENFORCEABLE, AND (C) ANY WARRANTY AS TO
                     NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
                     RIGHTS.

       5.2.   REPRESENTATIONS OF HALOCOM. HaloCom hereby represents and warrants
              to iGate as follows:

              5.2.1  HaloCom is a corporation duly organized, validly existing
                     and in good standing under the laws of the jurisdiction of
                     its organization and has all requisite power and authority
                     to enter into this Agreement, to perform its obligations
                     hereunder, and to consummate the transactions contemplated
                     hereby.

              5.2.2  HaloCom has taken all corporate action necessary to
                     authorize its execution and delivery of this Agreement, its
                     performance of its obligations hereunder, and its
                     consummation of the transactions contemplated hereby. This
                     Agreement constitutes a valid, binding obligation of
                     HaloCom, enforceable in accordance with its terms, subject
                     to bankruptcy, reorganization, insolvency, moratorium, and
                     similar laws affecting creditors' rights generally and to
                     general principles of equity.

              5.2.3  The execution and delivery by HaloCom of this Agreement,
                     its consummation of the transactions contemplated hereby,
                     and its compliance with the provisions hereof, will not (i)
                     violate or conflict with its Certificate of Incorporation
                     or By-laws, (ii) violate, conflict with, or give rise to
                     any right of termination, cancellation, or acceleration
                     under any agreement, lease, security, license, permit, or
                     instrument to which HaloCom is a party, (iii) violate or
                     conflict with any laws, rules, or regulations, or (iv)
                     require any consent, approval or other action of, notice
                     to, or filing with any entity or person (governmental or
                     private).

                                       5
<PAGE>

6.     CONFIDENTIAL INFORMATION/ACKNOWLEDGEMENT OF OWNERSHIP RIGHTS.

       6.1    Ownership

              6.1.1  HaloCom expressly acknowledges that iGate is the sole and
                     exclusive owner of the Technical Solution and Product
                     Package. Nothing in this agreement shall constitute the
                     grant of a general license from iGate to use the Technical
                     Solution and Product Package. HaloCom expressly covenants
                     that it will not knowingly take any action, or omit to take
                     any action, that impairs, infringes, injures, degrades or
                     lessens in value of the Package. HaloCom also expressly
                     covenants that it will not seek registration of any of the
                     Package in its own name or in the name of any affiliate,
                     and agrees that it will not at any time challenge, contest,
                     or call into question the registration, validity, or
                     enforceability of the Package.

              6.1.2  iGate agrees that HaloCom shall be the owner of the
                     specific agreed upon "HaloCom technology" developed as
                     defined in section 1.8 under this agreement. HaloCom also
                     expressly covenants that it will not seek registration of
                     any other application without written agreement from iGate.

       6.2    CONFIDENTIALITY OBLIGATION. Each party shall hold in confidence
              any Confidential Information disclosed by the other or otherwise
              obtained by such party as a result of activities contemplated by
              this Agreement, and each party shall protect the confidentiality
              thereof with the same degree of care that it exercises with
              respect to its own information of a like nature, but in no event
              less than reasonable care. Access to Confidential Information must
              be restricted to the receiving party's employees or agents, who,
              in each case, need to have access to carry out a permitted use and
              are bound in writing to maintain the confidentiality of such
              Confidential Information. The Confidential Information, and all
              copies of part or all thereof, shall be and remain the exclusive
              property of the disclosing party, and the receiving party shall
              acquire only such rights as are expressly set forth under the
              terms and conditions of this Agreement and only for so long as
              such rights are in effect.

              6.2.1  EXCEPTIONS. Notwithstanding any provisions contained herein
                     concerning nondisclosure and non-use of the Confidential
                     Information, the obligations shall not apply to any portion
                     of the Confidential Information which the receiving party
                     can demonstrate by legally sufficient evidence:

                     6.2.1.1 now or hereafter, through no act or failure to act
                             on the part of the receiving party, becomes
                             generally known or available;

                                       6
<PAGE>

                     6.2.1.2 is known to the receiving party at the time of
                             receiving such Confidential Information without an
                             obligation of Confidentiality;

                     6.2.1.3 is hereafter furnished to the receiving party by a
                             third party as a matter of right without
                             restriction on disclosure;

                     6.2.1.4 is independently developed by the receiving party
                             without use of any Confidential Information
                             received from the other; or

                     6.2.1.5 is disclosed in response to a valid order of a
                             court or other governmental body or any political
                             subdivision thereof; provided, however, that the
                             party making the disclosure pursuant to such an
                             order shall promptly give notice to the other party
                             and make a reasonable effort to obtain a protective
                             order requiring that Confidential Information so
                             disclosed by used only for the purposes for which
                             the order was issued.

7      INDEMNIFICATION.

       7.1    INDEMNIFICATION. iGate indemnifies HaloCom for any patent,
              copyright or trade secret infringement. iGate will defend at its
              expense and indemnify HaloCom with respect to any action brought
              against HaloCom to the extent that it is based on a breach of the
              foregoing warranty, and iGate will pay any costs and damages
              finally awarded against HaloCom, or any settlement finally paid
              with the consent of iGate (which consent shall not be unreasonably
              withheld) by HaloCom and reimburse HaloCom for attorney's fees
              reasonably incurred in connection therewith, provided HaloCom
              notifies iGate promptly in writing of such claim and allows iGate
              to fully control the defense of such claim.

              7.1.1  Should the Technical Solution and Product Package or any
                     portion thereof become, or in iGate's opinion be likely to
                     become the subject of any claim of infringement, iGate
                     shall, at HaloCom option:

                     7.1.1.1 produce for HaloCom the right to continue
                             exercising its rights hereunder with respect to the
                             Technical Solution and Product Package

                     7.1.1.2 replace or modify the Technical Solution and
                             Product Package to make it noninfringing, or

       7.2    In the event of any patent, copyright or trade secret infringement
              on the Technical Solution and Product Package by a third-party in
              conjunction with the sale, manufacture or use of units in the
              Technical Solution and Product Package, or any sublicense granted
              under this Agreement, HaloCom agrees to indemnify iGate for any
              actual and consequential damages resulting from such infringement
              and to reimburse iGate for attorney's fees reasonably incurred in
              connection therewith.

                                       7
<PAGE>

              7.2.1  If HaloCom becomes aware of any such violation or suspected
                     violation described above, HaloCom shall notify iGate of
                     such event in sufficient detail and present iGate with a
                     course of action to abate such violation. If such violation
                     is not cured by the course of actions taken by HaloCom,
                     iGate shall have the right to terminate this Agreement
                     pursuant to Section 8.2.

       7.3    LIMITATIONS. Subject to the representations by iGate in Section 5,
              iGate shall not be liable for any incidental, indirect, special,
              punitive, exemplary or consequential damages of any kind
              whatsoever relating to, resulting form, arising out of, or
              connected with the Technical Solution and Product Package, or this
              Agreement, whether in contract or tort (including negligence) even
              if iGate has been advised of or is or should be aware of the
              possibility of such damages. In no event shall iGate's liability
              to HaloCom exceed the actual amount of sums paid to iGate under
              the Agreement.

8      TERMINATION.

       8.1    CONTRACT TERM. This Agreement shall continue in full force and
              effect from the Effective Date until otherwise terminated by
              mutual agreement of the parties hereto or pursuant to Section 8.2
              below ("Contract Term").

       8.2    TERMINATION BY EITHER PARTY. Notwithstanding anything herein to
              the contrary, each party shall have the right, in addition and
              without prejudice to any other rights or remedies, to terminate
              this Agreement if:

              8.2.1  the other party fails to pay any sum of money when due
                     hereunder or commits any material breach of the terms
                     hereof, which, in the case of a breach capable of remedy,
                     shall not have been remedied within ten (10) days in the
                     case of non-payment, or thirty (30) days in the event of
                     any other breach, of the receipt by the party in default of
                     notice specifying the breach and requiring its remedy; or

              8.2.2  the other party (1) has filed a petition in bankruptcy or
                     insolvency; (2) any adjudication that the other party is
                     bankrupt or insolvent; (3) filing of any petition or answer
                     seeking reorganization, readjustment or arrangement of its
                     business under any law relating to bankruptcy or
                     insolvency; (4) the appointment of a receiver for all or
                     substantially all of the property of the other party; (5)
                     the making of any assignment for the benefit of creditors;
                     (6) the  institution of any proceedings for the liquidation
                     or winding up of  business  or for the  termination  of its
                     corporate charter.

              8.2.3  either party shall have the right to terminate this
                     agreement without cause after 24 months of the effective
                     date of the agreement.

                                       8
<PAGE>

       8.3    EFFECT OF TERMINATION. Notwithstanding anything herein to the
              contrary, upon the termination of this Agreement, the provisions
              of Article 6 shall survive such termination and continue in full
              force and effect.

9      MISCELLANEOUS.

       9.1    GOVERNING LAW. This Agreement shall be governed by and construed
              in accordance with the laws of the State of Kentucky without
              reference to its choice of law principles. Any dispute arising
              hereunder or concerning any transaction contemplated hereby shall
              be resolved by submission to arbitration as provided by Laws of
              Washington, D.C. and not by a lawsuit or other court proceedings.
              In the event that either party hereto shall institute any action
              to enforce any rights hereunder in the courts, the prevailing
              party in such an action shall be entitled, in addition to relief
              awarded by the court, to attorney's fees and litigation expenses
              as the court may award. The only choice and venue of jurisdiction
              by which an action may be brought in the court of law in the State
              of Kentucky. Any dispute arising hereunder or concerning any
              transaction contemplated hereby that cannot be resolved by
              arbitration, will be proceed to be resolved in a state or federal
              court located in such State, and each of the parties hereby agrees
              to submit itself to the exclusive jurisdiction and venue of such
              courts for such purposes, in this case, the State of Kentucky.

       9.2    ATTORNEYS' FEES. In the event of any legal action to enforce the
              terms and conditions of this Agreement, the prevailing party in
              any such action shall be entitled to its costs and expenses,
              including reasonably attorneys' fees, expended in enforcing its
              rights hereunder.

       9.3    EXPENSES. Both HaloCom and iGate are under no obligation or
              requirement to reimburse each other any expenses relating to the
              development, marketing or sale of the The Packages. Any costs and
              expenses incurred by iGate and the HaloCom will their sole
              responsibility.

       9.4    PRODUCT(S) DEVELOPMENT WARRANTIES. iGate warrants that the product
              development process shown in Appendix 1, for both low voltage and
              medium voltage systems respectfully, for all categories of
              hardware, and software as part of the OEM Packages, will be
              achieved within the time line allotted, and will be free from
              defects in materials, fitness for a particular purpose, and
              workmanship under trial and normal use for a period of six months
              from the date of sale to the end-user. HaloCom shall not pass this
              warranty to the end-user. The exclusive remedy for the HaloCom for
              the breach of the foregoing warranties will be to seek to have
              iGate bring the completion the development of the OEM Packages, or
              refund to a larger extent the development fee, stipulated in
              Appendix 2, less expenses incurred by iGate for the project
              development.

       9.5    NO JOINT VENTURE. This agreement is not intended to create, nor
              will it be construed as, a joint venture, association,
              partnership, franchise or other form of business or relationship.
              Neither party will have or hold itself out as having any

                                       9
<PAGE>

              right or power or authority to assume, create, or incur any
              expense, liability, expressed or implied, on behalf of the other
              party, except as expressly provided herein.

       9.6    FORCE MAJEURE. The failure of any party hereunder to perform any
              obligation otherwise due (except for the payment of monies due
              hereunder) as a result of governmental action, law, order or
              regulation, or as a result of war, terrorism, act of public enemy,
              strike or other labor disturbance, fire, flood, act of God or
              other causes of like kind beyond the reasonable control of such
              party, shall be excused for so long as said cause exists to the
              extent such failure is caused by such event.

       9.7    NOTICES. Any notices or other communications required or permitted
              hereunder shall be sufficiently given, if delivered by hand, or
              sent by certified mail, return receipt requested and
              postage-prepaid, address as follows:

                     If to HaloCom:     HaloComcom, Inc.
                                        14505 Torrey Chase Blvd., #400A
                                        Houston, Texas 77014.
                                        Attn: Blaize Kaduru, President/CEO.

                     If to iGate:       iGate, Inc.
                                        433 Hackensack Ave, 4F
                                        Hackensack, NJ 07601
                                        Attn: B.K. Son, President & COO

       9.8    SEVERABILITY. If any term or provision of this Agreement is found
              to be invalid under any applicable statute or rule of law by a
              court of competent jurisdiction then, that provision
              notwithstanding, this Agreement shall remain in full force and
              effect and such provision shall be deleted unless such a deletion
              would frustrate the intent of the parties with respect to any
              material aspect of the relationship established hereby, in which
              case this Agreement shall terminate, with the consequences set
              forth in Section 8.2.

       9.9    ARBITRATION. Any and all disputes or controversies arising out of
              or relating to this Agreement which cannot be resolved by the
              parties shall be exclusively and definitively resolved by
              arbitration in Washington, D.C. or via teleconference originating
              anywhere within the United States mutually agreeable to both
              parties. In no event shall the arbitrator(s) of any arbitration
              conducted under this Section 9.6 be empowered to disregard the
              intent of the provisions of this Agreement in

                                       10
<PAGE>

              rendering a decision in such arbitration and any such decision
              shall be set forth in writing and include the reasons and the
              analysis in support of such decision. The arbitration award shall
              be final and binding on all parties and judgment upon any such
              decision may be entered in any court of competent jurisdiction.
              The arbitrator(s) shall be entitled to assess attorneys' fees and
              apportion arbitration costs in any arbitration decision.

       9.10   ASSIGNMENT. This Agreement is not assignable, whether in
              conjunction with a change in ownership, or the sale or transfer of
              the whole or any part of a Party's business or assets, either
              voluntarily, or by operation of law, or otherwise, without the
              prior written consent of the other party. Such consent shall not
              be unreasonably withheld.

       9.11   ENTIRE AGREEMENT. This Agreement constitutes the entire
              understanding between the parties with respect to the subject
              matter hereof and supersedes all other negotiations, discussions
              and memoranda, and any other letter or agreements relating to such
              subject matter. This Agreement may not be amended, changes or
              modified, except by a writing executed by the parties or their
              respective permitted successors and assigns.

       9.12   WAIVER. Any party to this Agreement may, by written notice to the
              other party, waive any provision of this Agreement, the benefit of
              which runs to the party executing the waiver. The waiver by any
              party hereto of a breach of any provision of this Agreement shall
              not operate or be construed as a waiver of any subsequent same or
              different breach.

       9.13   HEADINGS. Headings and other titles to articles and section of
              this Agreement are solely for the convenience of reference and in
              no way define or limit the scope or substance of any provision of
              this Agreement.

       9.14   PUBLICITY. Neither iGate nor HaloCom shall disclose the existence
              of this Agreement, unless any proposed publication is approved in
              writing by both parties prior to release.

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

HaloComCom, INCORPORATED                iGATE, INCORPORATED

By: /s/ Blaize N. Kaduru
  -----------------------------------
Name:  Blaize N. Kaduru
Title: President/CEO

                                        By: /s/ Vernon L. Jackson
                                           -----------------------------
                                        Name:  Vernon L. Jackson
                                        Title: Chairman & CEO

Date: 7/16/04                           Date: 7/23/04
     --------------------------------        ----------------------------

                                       11
<PAGE>

APPENDIX 1. CONTENTS AND SCHEDULE

Hardware and Target Specifications (Preliminary)

1.     LOW VOLTAGE SYSTEM

                               [GRAPHIC OMITTED]

--------------------------------------- ----------------------------------------
Product ID (Temporary)                  iBPL Gateway Router (iBGR)
--------------------------------------- ----------------------------------------
Description                             Support up to 16~25 CPEs. (Optional
                                        consideration: modular extendable
                                        function)

                                        Mountable to power pole nearby a
                                        transformer, distribution panel of multi
                                        dwelling unit and other applicable site
                                        VoIP ready (with optional VoIP
                                        equipment)

                                        -Connection to the local backbone
--------------------------------------- ----------------------------------------

                                       12
<PAGE>

--------------------------------------- ----------------------------------------
Target Specification                    Data rate: 14Mbps~25Mbps

                                        Reach: Up to 2,000 feet~2,500 feet

                                        -DMT (Discrete Multi Tone) Modulation,
                                        Adaptive bit loading for each sub
                                        channel

                                        Multiple Access: CSMA/CA

                                        -5~ 10 repeaters support
--------------------------------------- ----------------------------------------

--------------------------------------- ----------------------------------------
Product ID (Temporary)                       iBPL CPE
--------------------------------------- ----------------------------------------
Description                             Instant access to the Internet and/ or
                                        to home network by power outlet Each
                                        with individual encryption key Packet
                                        based data communication Ready for value
                                        added service including VoIP, Video
                                        conferencing, VOD and Security
                                        monitoring.

                                        -Support standard hub and router

--------------------------------------- ----------------------------------------
Target Specification                    Max. data rate: 14Mbps~25Mbps

                                        Practical average data rate: 2Mbps~4Mbps

                                        Reach: Up to 2,000 feet~2,500 feet

                                        Channel specific adaptive bit loading

                                        Forward error correction: Convolution
                                        and RS codes with Interleave

                                        -Individual encryption

                                        -USB

                                        -Plug & Play with Windows(R)

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

--------------------------------------- ----------------------------------------
        PRODUCT ID (TEMPORARY)          iBPL Signal Repeater
--------------------------------------- ----------------------------------------
Description                             Relay frames between iBPL router and CPE

                                        Automatic detection of existing iBPL
                                        device

                                        - Easy and simple installation

--------------------------------------- ----------------------------------------
Target Specification                    Data rate: 14Mbps~25Mbps

                                        Reach: Up to 2,000 feet~2,500 feet 5~10
                                        repeaters per iBPL router

                                        Channel specific adaptive bit loading

                                        Forward error correction: Convolution
                                        and RS codes with Interleave

                                        - Support other repeaters at the level
                                        below

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

                                       13
<PAGE>

--------------------------------------- ----------------------------------------
Configuration                           [GRAPHIC OMITTED]

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

--------------------------------------- ----------------------------------------
        PRODUCT ID (TEMPORARY)          iBPL Low Voltage Coupler
--------------------------------------- ----------------------------------------
Description                             Inject BPL signals into 110V power line

                                        Support 4 subscribers per each

                                        - Extendable

--------------------------------------- ----------------------------------------
Target Specification                    - to be determined

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

--------------------------------------- ----------------------------------------
       PRODUCT ID (TEMPORARY)           iBPL Low Voltage Network Management
                                        Server and Software

--------------------------------------- ----------------------------------------
Description

                                        Monitoring and management of network

                                        Basic remote operation (Power reset)

                                        SNMP and/or MIB II compatible

                                        - Subscriber registration and activity
                                        monitoring

--------------------------------------- ----------------------------------------
Target Specification                    - TBD
--------------------------------------- ----------------------------------------

                                       14
<PAGE>

2.     MID. VOLTAGE SYSTEM

                               [GRAPHIC OMITTED]

* UNTIL THE COMPLETION OF MID. VOLTAGE SYSTEM, IGATE WILL PROVIDE AN ALTERNATIVE
   SOLUTION WITH ITS LONG RANGE SWITCH (MODEL: IB4244) FOR CONNECTIONS WITHIN
                          2.7 MILES IN EACH DIRECTION.

                       MID. VOLTAGE SYSTEM CONFIGURATION

--------------------------------------- ----------------------------------------
         PRODUCT ID (TEMPORARY)         iBPL Mid. Voltage Bridge
--------------------------------------- ----------------------------------------
Description                             Inject broadband signals into 22kV power
                                        line

                                        Support local iBPL Gateway Router

                                        -Insulation resistance

--------------------------------------- ----------------------------------------
Target Specification                    TBD
Configuration
--------------------------------------- ----------------------------------------

--------------------------------------- ----------------------------------------
         PRODUCT ID (TEMPORARY)         iBPL Mid. Voltage Signal Repeater

--------------------------------------- ----------------------------------------
Description                             Relay frames between iBPL Mid Voltage
--------------------------------------- ----------------------------------------

                                       15
<PAGE>

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

                                        Bridge and the Bridge Slave via 22kV
                                        power line

                                        Automatic detection of existing iBPL
                                        device

                                        Easy and simple installation

                                        - Pass the broadband to iBPL Gateway
                                        Router

--------------------------------------- ----------------------------------------
Target Specification                    TBD
Configuration
--------------------------------------- ----------------------------------------

--------------------------------------- ----------------------------------------
         PRODUCT ID (TEMPORARY)         iBPL Mid. Voltage Bridge Slave
--------------------------------------- ----------------------------------------
Description                             Get broadband signal from iBPL Mid
                                        Voltage Bridge or the Repeater.

                                        - Pass the broadband to iBPL Gateway
                                        Router

--------------------------------------- ----------------------------------------
Target Specification
Configuration                           TBD
--------------------------------------- ----------------------------------------

--------------------------------------- ----------------------------------------
         PRODUCT ID (TEMPORARY)         iBPL Mid. Voltage Coupler
--------------------------------------- ----------------------------------------
Description                             Inject BPL signals into 22kV power line

                                        Safe against dielectric breakdown

                                        Multiple bonded ceramic structure

                                        -Insulation resistance

--------------------------------------- ----------------------------------------
Target Specification                    Frequency: 1MHz ~ 30MHz
Configuration
                                        Signal loss: less than 3dB

                                        Rating: 22.9kV

                                        - Drain coil inductance: 1mH, M-class
--------------------------------------- ----------------------------------------

                                       16
<PAGE>

APPENDIX 2. FEE AND PAYMENT SCHEDULE

------------------------------------ -------------- ----------------------------
Low Voltage System                          8/1/04                 $   200,000
                                     -------------- ----------------------------
                                            9/1/04                 $   200,000
                                     -------------- ----------------------------
                                           10/1/04                 $   150,000
                                     -------------- ----------------------------
                                           11/1/04                 $   150,000
------------------------------------ -------------- ----------------------------
Sub Total (Low Voltage System)                                     $   700,000
------------------------------------ -------------- ----------------------------

------------------------------------ -------------- ----------------------------
Mid Voltage System**                        2/1/05                 $   100,000
                                     -------------- ----------------------------
*Built on Low Voltage System                3/1/05                 $   100,000
                                     -------------- ----------------------------
                                            4/1/05                 $   100,000
                                     -------------- ----------------------------
                                            5/1/05                 $   100,000
                                     -------------- ----------------------------
                                            6/1/05                 $   100,000
------------------------------------ -------------- ----------------------------
Sub Total (Mid Voltage System)                                     $   500,000
------------------------------------ -------------- ----------------------------
** Optional

                               [GRAPHIC OMITTED]

                                       17

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