Document:

Unassociated Document

MORTGAGE
LOAN PURCHASE AGREEMENT

 

THIS
MORTGAGE LOAN PURCHASE AGREEMENT dated as of May 27, 2005 by and between FIRST
HORIZON HOME LOAN CORPORATION, a Kansas corporation (the “Seller”), and FIRST
HORIZON ASSET SECURITIES INC. (the “Purchaser”). 

 

WHEREAS,
the Seller owns certain Mortgage Loans (as hereinafter defined) which Mortgage
Loans are more particularly listed and described in Schedule
A attached
hereto and made a part hereof.

 

WHEREAS,
the Seller and the Purchaser wish to set forth the terms pursuant to which the
Mortgage Loans, excluding the servicing rights thereto, are to be sold by the
Seller to the Purchaser.

 

WHEREAS,
the Seller will simultaneously transfer the servicing rights for the Mortgage
Loans to First Tennessee Mortgage Services, Inc. (“FTMSI”) pursuant to the
Servicing Rights Transfer and Subservicing Agreement (as hereinafter
defined).

 

WHEREAS,
the Purchaser will engage FTMSI to service the Mortgage Loans pursuant to the
Servicing Agreement (as hereinafter defined).

 

NOW,
THEREFORE, in consideration of the foregoing, other good and valuable
consideration, and the mutual terms and covenants contained herein, the parties
hereto agree as follows:

 

 

ARTICLE
I

Definitions

 

Agreement: This
Mortgage Loan Purchase Agreement, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with the terms
hereof.

 

Alternative
Title Product: Means
one of the following: (i) Lien Protection Insurance issued by Integrated Loan
Services or ATM Corporation of America, (ii) a Mortgage Lien Report issued by
EPN Solutions/ACRAnet, (iii) a Property Plus Report issued by Rapid Refinance
Service through SharperLending.com, or (iv) such other alternative title
insurance product that the Seller utilizes in connection with its then current
underwriting criteria.

 

Business
Day: Any day
other than (i) a Saturday or a Sunday, or (ii) a day on which banking
institutions in the City of Dallas, or the State of Texas or New York City is
located are authorized or obligated by law or executive order to be
closed.

 

Closing
Date: May 27,
2005

 

Code: The
Internal Revenue Code of 1986, including any successor or amendatory
provisions.

 

Cooperative
Corporation: The
entity that holds title (fee or an acceptable leasehold estate) to the real
property and improvements constituting the Cooperative Property and which
governs the Cooperative Property, which Cooperative Corporation must qualify as
a Cooperative Housing Corporation under Section 216 of the Code.

 

Coop
Shares: Shares
issued by a Cooperative Corporation.

 

Cooperative
Loan: Any
Mortgage Loan secured by Coop Shares and a Proprietary Lease.

 

Cooperative
Property: The
real property and improvements owned by the Cooperative Corporation, including
the allocation of individual dwelling units to the holders of the Coop Shares of
the Cooperative Corporation.

 

Cooperative
Unit: A
single family dwelling located in a Cooperative Property.

 

 

Custodian: First
Tennessee Bank National Association, and its successors and assigns, as
custodian under the Custodial Agreement dated as of May 27, 2005 by and among
The Bank of New York, as trustee, First Horizon Home Loan Corporation, as master
servicer, and the Custodian.

 

Cut-Off
Date: May 1,
2005.

 

Cut-off
Date Principal Balance: As to
any Mortgage Loan, the Stated Principal Balance thereof as of the close of
business on the Cut-off Date.

 

Debt
Service Reduction: With
respect to any Mortgage Loan, a reduction by a court of competent jurisdiction
in a proceeding under the Bankruptcy Code in the Scheduled Payment for such
Mortgage Loan which became final and non-appealable, except such a reduction
resulting from a Deficient Valuation or any reduction that results in a
permanent forgiveness of principal.

 

Deficient
Valuation: With
respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
of the Mortgaged Property in an amount less than the then-outstanding
indebtedness under the Mortgage Loan, or any reduction in the amount of
principal to be paid in connection with any Scheduled Payment that results in a
permanent forgiveness of principal, which valuation or reduction results from an
order of such court which is final and non-appealable in a proceeding under the
United States Bankruptcy Reform Act of 1978, as amended.

 

Delay
Delivery Mortgage Loans: The
Mortgage Loans for which all or a portion of a related Mortgage File is not
delivered to the Trustee or to the Custodian on its behalf on the Closing Date.
The number of Delay Delivery Mortgage Loans shall not exceed 25% of the
aggregate number of Mortgage Loans as of the Closing Date.

 

Deleted
Mortgage Loan: As
defined in Section 4.1(c) hereof.

 

Determination
Date: The
earlier of (i) the third Business Day after the 15th day of each month, and (ii)
the second Business Day prior to the 25th day of
each month, or if such 25th day is
not a Business Day, the next succeeding Business Day.

 

GAAP:
Generally accepted accounting principles as in effect from time to time in the
United States of America.

 

-2-

 

Insurance
Proceeds:
Proceeds paid by an insurer pursuant to any insurance policy, including all
riders and endorsements thereto in effect, including any replacement policy or
policies, in each case other than any amount included in such Insurance Proceeds
in respect of expenses covered by such insurance policy.

 

Liquidation
Proceeds:
Amounts, including Insurance Proceeds, received in connection with the partial
or complete liquidation of defaulted Mortgage Loans, whether through trustee’s
sale, foreclosure sale or otherwise or amounts received in connection with any
condemnation or partial release of a Mortgaged Property.

 

MERS:
Mortgage Electronic Registration Systems, Inc., a corporation organized and
existing under the laws of the State of Delaware, or any successor
thereto.

 

MERS
Mortgage Loan: Any
Mortgage Loan registered with MERS on the MERS System.

 

MERS®
System: The
system of recording transfers of mortgages electronically maintained by
MERS.

 

MIN: The
Mortgage Identification Number for any MERS Mortgage Loan.

 

MOM
Loan: Any
Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for the
originator of such Mortgage Loan and its successors and assigns.

 

Mortgage: The
mortgage, deed of trust or other instrument creating a first lien on the
property securing a Mortgage Note.

 

Mortgage
File: The
mortgage documents listed in Section 3.1 pertaining to a particular Mortgage
Loan and any additional documents required to be added to the Mortgage File
pursuant to this Agreement.

 

Mortgage
Loans: The
mortgage loans transferred, sold and conveyed by the Seller to the Purchaser,
pursuant to this Agreement.

 

Mortgage
Loan Purchase Price: With
respect to any Mortgage Loan required to be purchased by the Seller pursuant to
Section 4.1(c) hereof, an amount equal to the sum of (i) 100% of the unpaid
principal balance of the Mortgage Loan on the date of such purchase, and (ii)
accrued interest thereon at the applicable Mortgage Rate from the date through
which interest was last paid by the Mortgagor to the first day in the month in
which the Mortgage Loan Purchase Price is to be distributed to the Purchaser or
its designees.

 

Mortgage
Note: The
original executed note or other evidence of indebtedness evidencing the
indebtedness of a Mortgagor under a Mortgage Loan.

 

Mortgaged
Property: The
underlying property securing a Mortgage Loan, which, with respect to a
Cooperative Loan, is the related Coop Shares and Proprietary Lease.

 

Mortgagor: The
obligor(s) on a Mortgage Note.

 

-3-

 

Principal
Prepayment: Any
payment of principal by a Mortgagor on a Mortgage Loan that is received in
advance of its scheduled Due Date and is not accompanied by an amount
representing scheduled interest due on any date or dates in any month or months
subsequent to the month of prepayment.

 

Proprietary
Lease: With
respect to any Cooperative Unit, a lease or occupancy agreement between a
Cooperative Corporation and a holder of related Coop Shares.

 

Purchase
Price:
$442,579,782.11

 

Purchaser: First
Horizon Asset Securities Inc., in its capacity as purchaser of the Mortgage
Loans from the Seller pursuant to this Agreement.

 

Recognition
Agreement: With
respect to any Cooperative Loan, an agreement between the Cooperative
Corporation and the originator of such Mortgage Loan which establishes the
rights of such originator in the Cooperative Property.

 

Scheduled
Payment: The
scheduled monthly payment on a Mortgage Loan due on the first day of the month
allocable to principal and/or interest on such Mortgage Loan which, unless
otherwise specified herein, shall give effect to any related Debt Service
Reduction and any Deficient Valuation that affects the amount of the monthly
payment due on such Mortgage Loan.

 

Security
Agreement: The
security agreement with respect to a Cooperative Loan.

 

Seller: First
Horizon Home Loan Corporation, a Kansas corporation, and its successors and
assigns, in its capacity as seller of the Mortgage Loans.

 

Servicing
Agreement: The
servicing agreement, dated as of November 26, 2002 by and between First
Horizon Asset Securities Inc. and its assigns, as owner, and First Tennessee
Mortgage Services, Inc., as servicer.

 

Servicing
Rights Transfer and Subservicing Agreement: The
servicing rights transfer and subservicing agreement, dated as of November 26,
2002 by and between First Horizon Home Loan Corporation, as transferor and
subservicer, and First Tennessee Mortgage Services, Inc., as transferee and
servicer.

 

Stated
Principal Balance: As to
any Mortgage Loan, the unpaid principal balance of such Mortgage Loan as
specified in the amortization schedule at the time relating thereto (before any
adjustment to such amortization schedule by reason of any moratorium or similar
waiver or grace period) after giving effect to any previous partial Principal
Prepayments and Liquidation Proceeds allocable to principal (other than with
respect to any Liquidated Mortgage Loan) and to the payment of principal due on
such date and irrespective of any delinquency in payment by the related
Mortgagor.

 

Substitute
Mortgage Loan: A
Mortgage Loan substituted by the Seller for a Deleted Mortgage Loan which must,
on the date of such substitution, (i) have a Stated Principal Balance, after
deduction of the principal portion of the Scheduled Payment due in the month of
substitution, not in excess of, and not more than 10% less than the Stated
Principal Balance of the Deleted Mortgage Loan; (ii) have a Mortgage Rate not
lower than the Mortgage Rate of the Deleted Mortgage Loan; (iii) have a maximum
mortgage rate not more than 1% per annum higher or lower than the maximum
mortgage rate of the Deleted Mortgage Loan; (iv) have a minimum mortgage rate
specified in its related Mortgage Note not more than 1% per annum higher or
lower than the minimum mortgage rate of the Deleted Mortgage Loan; (v) have the
same mortgage index, reset period and periodic rate as the Deleted Mortgage Loan
and a gross margin not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan (vi) be accruing interest at a rate no lower than and not
more than 1% per annum higher than, that of the Deleted Mortgage Loan; (iv) have
a loan-to-value ratio no higher than that of the Deleted Mortgage Loan; (vii)
have a remaining term to maturity no greater than (and not more than one year
less than that of) the Deleted Mortgage Loan; (viii) not be a Cooperative Loan
unless the Deleted Mortgage Loan was a Cooperative Loan and (ix) comply with
each representation and warranty set forth in Schedule
B
hereto.

 

-4-

 

Trustee: The
Bank of New York and its successors and, if a successor trustee is appointed
hereunder, such successor.

 

ARTICLE
II

Purchase
and Sale

 

Section
2.1  Purchase
Price. In
consideration for the payment to it of the Purchase Price on the Closing Date,
pursuant to written instructions delivered by the Seller to the Purchaser on the
Closing Date, the Seller does hereby transfer, sell and convey to the Purchaser
on the Closing Date, but with effect from the Cut-off Date, (i) all right, title
and interest of the Seller in the Mortgage Loans, excluding the servicing rights
thereto, and all property securing such Mortgage Loans, including all interest
and principal received or receivable by the Seller with respect to the Mortgage
Loans on or after the Cut-off Date and all interest and principal payments on
the Mortgage Loans received on or prior to the Cut-off Date in respect of
installments of interest and principal due thereafter, but not including
payments of principal and interest due and payable on the Mortgage Loans on or
before the Cut-off Date, and (ii) all proceeds from the foregoing. Items (i) and
(ii) in the preceding sentence are herein referred to collectively as “Mortgage
Assets.”

 

Section
2.2  Timing. The
sale of the Mortgage Assets hereunder shall take place on the Closing
Date.

 

ARTICLE
III

Conveyance
and Delivery

 

Section
3.1  Delivery
of Mortgage Files. In
connection with the transfer and assignment set forth in Section 2.1 above, the
Seller has delivered or caused to be delivered to the Trustee or to the
Custodian on its behalf (or, in the case of the Delay Delivery Mortgage Loans,
will deliver or cause to be delivered to the Trustee or to the Custodian on its
behalf within thirty (30) days following the Closing Date) the following
documents or instruments with respect to each Mortgage Loan so assigned
(collectively, the “Mortgage Files”):

 

-5-

 

	(a)  	
      (1)  
      the
      original Mortgage Note endorsed by manual or facsimile signature in blank
      in the following form: “Pay to the order of ________________, without
      recourse,” with all intervening endorsements showing a complete chain of
      endorsement from the originator to the Person endorsing the Mortgage Note
      (each such endorsement being sufficient to transfer all right, title and
      interest of the party so endorsing, as noteholder or assignee thereof, in
      and to that Mortgage Note); or

 

			(2)  
      with respect to any Lost Mortgage Note, a lost note affidavit from the
      Seller stating that the original Mortgage Note was lost or destroyed,
      together with a copy of such Mortgage Note;

 

	(b)  	
      except
      as provided below and for each Mortgage Loan that is not a MERS Mortgage
      Loan, the original recorded Mortgage or a copy of such Mortgage certified
      by the Seller as being a true and complete copy of the Mortgage, and in
      the case of each MERS Mortgage Loan, the original Mortgage, noting the
      presence of the MIN of the Mortgage Loans and either language indicating
      that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan or
      if the Mortgage Loan was not a MOM Loan at origination, the original
      Mortgage and the assignment thereof to MERS, with evidence of recording
      indicated thereon, or a copy of the Mortgage certified by the public
      recording office in which such Mortgage has been
  recorded;

 

	(c)  	
      a
      duly executed assignment of the Mortgage in blank (which may be included
      in a blanket assignment or assignments), together with, except as provided
      below, all interim recorded assignments of such mortgage (each such
      assignment, when duly and validly completed, to be in recordable form and
      sufficient to effect the assignment of and transfer to the assignee
      thereof, under the Mortgage to which the assignment relates); provided
      that, if the related Mortgage has not been returned from the applicable
      public recording office, such assignment of the Mortgage may exclude the
      information to be provided by the recording
office;

 

	(d)  	
      the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any;

 

	(e)  	
      either
      the original or duplicate original title policy (including all riders
      thereto) with respect to the related Mortgaged Property, if available,
      provided that the title policy (including all riders thereto) will be
      delivered as soon as it becomes available, and if the title policy is not
      available, and to the extent required pursuant to the second paragraph
      below or otherwise in connection with the rating of the Certificates, a
      written commitment or interim binder or preliminary report of the title
      issued by the title insurance or escrow company with respect to the
      Mortgaged Property, or, in lieu thereof, an Alternative Title Product,
      and

 

	(f)  	
      in
      the case of a Cooperative Loan, the originals of the following documents
      or instruments:

 

-6-

 

(1)  The Coop
Shares, together with a stock power in blank;

 

(2)  The
executed Security Agreement;

 

(3)  The
executed Proprietary Lease;

 

(4)  The
executed Recognition Agreement;

 

(5)  The
executed UCC-1 financing statement with evidence of recording thereon which have
been filed in all places required to perfect the Seller’s interest in the Coop
Shares and the Proprietary Lease; and

 

(6)  Executed
UCC-3 financing statements or other appropriate UCC financing statements
required by state law, evidencing a complete and unbroken line from the
mortgagee to the Trustee with evidence of recording thereon (or in a form
suitable for recordation).

 

In the
event that in connection with any Mortgage Loan that is not a MERS Mortgage Loan
the Seller cannot deliver (i) the original recorded Mortgage or (ii) all interim
recorded assignments satisfying the requirements of clause (b) or (c)
above, respectively, concurrently with the execution and delivery hereof because
such document or documents have not been returned from the applicable public
recording office, the Seller shall promptly deliver or cause to be delivered to
the Trustee or the Custodian on its behalf such original Mortgage or such
interim assignment, as the case may be, with evidence of recording indicated
thereon upon receipt thereof from the public recording office, or a copy
thereof, certified, if appropriate, by the relevant recording office, but in no
event shall any such delivery of the original Mortgage and each such interim
assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date;
provided, however, in the event the Seller is unable to deliver or cause to be
delivered by such date each Mortgage and each such interim assignment by reason
of the fact that any such documents have not been returned by the appropriate
recording office, or, in the case of each such interim assignment, because the
related Mortgage has not been returned by the appropriate recording office, the
Seller shall deliver or cause to be delivered such documents to the Trustee or
the Custodian on its behalf as promptly as possible upon receipt thereof and, in
any event, within 720 days following the Closing Date; provided, further,
however, that the Seller shall not be required to provide an original or
duplicate lender’s title policy (together with all riders thereto) if the Seller
delivers an Alternative Title Product in lieu thereof. The Seller shall forward
or cause to be forwarded to the Trustee or the Custodian on its behalf (i) from
time to time additional original documents evidencing an assumption or
modification of a Mortgage Loan and (ii) any other documents required to be
delivered by the Seller to the Trustee. In the event that the original Mortgage
is not delivered and in connection with the payment in full of the related
Mortgage Loan and the public recording office requires the presentation of a
“lost instruments affidavit and indemnity” or any equivalent document, because
only a copy of the Mortgage can be delivered with the instrument of satisfaction
or reconveyance, the Seller shall execute and deliver or cause to be executed
and delivered such a document to the public recording office. In the case where
a public recording office retains the original recorded Mortgage or in the case
where a Mortgage is lost after recordation in a public recording office, the
Seller shall deliver or cause to be delivered to the Trustee or the Custodian on
its behalf a copy of such Mortgage certified by such public recording office to
be a true and complete copy of the original recorded Mortgage.

 

-7-

 

In
addition, in the event that in connection with any Mortgage Loan the Seller
cannot deliver or cause to be delivered the original or duplicate original
lender’s title policy (together with all riders thereto), satisfying the
requirements of clause (v) above, concurrently with the execution and delivery
hereof because the related Mortgage has not been returned from the applicable
public recording office, the Seller shall promptly deliver or cause to be
delivered to the Trustee or the Custodian on its behalf such original or
duplicate original lender’s title policy (together with all riders thereto) upon
receipt thereof from the applicable title insurer, but in no event shall any
such delivery of the original or duplicate original lender’s title policy be
made later than one year following the Closing Date; provided, however, in the
event the Seller is unable to deliver or cause to be delivered by such date the
original or duplicate original lender’s title policy (together with all riders
thereto) because the related Mortgage has not been returned by the appropriate
recording office, the Seller shall deliver or cause to be delivered such
documents to the Trustee or the Custodian on its behalf as promptly as possible
upon receipt thereof and, in any event, within 720 days following the Closing
Date. 

 

Notwithstanding
anything to the contrary in this Agreement, within thirty days after the Closing
Date, the Seller shall either (i) deliver or cause to be delivered to the
Trustee or the Custodian on its behalf the Mortgage File as required pursuant to
this Section 3.1 for each Delay Delivery Mortgage Loan or (ii) (A) substitute or
cause to be substituted a Substitute Mortgage Loan for the Delay Delivery
Mortgage Loan or (B) repurchase or cause to be repurchased the Delay Delivery
Mortgage Loan, which substitution or repurchase shall be accomplished in the
manner and subject to the conditions set forth in Section 4.1 (treating each
Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for purposes of such
Section 4.1), provided, however, that if the Seller fails to deliver a Mortgage
File for any Delay Delivery Mortgage Loan within the thirty-day period provided
in the prior sentence, the Seller shall use its best reasonable efforts to
effect or cause to be effected a substitution, rather than a repurchase of, such
Deleted Mortgage Loan and provided further that the cure period provided for in
Section 4.1 hereof shall not apply to the initial delivery of the Mortgage File
for such Delay Delivery Mortgage Loan, but rather the Seller shall have five (5)
Business Days to cure or cause to be cured such failure to deliver.

 

ARTICLE
IV

Representations
and Warranties

 

Section
4.1  Representations
and Warranties of the Seller. (a) The
Seller hereby represents and warrants to the Purchaser, as of the date of
execution and delivery hereof, that:

 

(1)  The
Seller is duly organized as a Kansas corporation and is validly existing and in
good standing under the laws of the State of Kansas and is duly authorized and
qualified to transact any and all business contemplated by this Agreement to be
conducted by the Seller in any state in which a Mortgaged Property is located or
is otherwise not required under applicable law to effect such qualification and,
in any event, is in compliance with the doing business laws of any such state,
to the extent necessary to ensure its ability to enforce each Mortgage Loan and
to perform any of its other obligations under this Agreement in accordance with
the terms thereof.

 

-8-

 

(2)  The
Seller has the full corporate power and authority to sell each Mortgage Loan,
and to execute, deliver and perform, and to enter into and consummate the
transactions contemplated by this Agreement and has duly authorized by all
necessary corporate action on the part of the Seller the execution, delivery and
performance of this Agreement; and this Agreement, assuming the due
authorization, execution and delivery thereof by the other parties thereto,
constitutes a legal, valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its terms, except that (a) the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors’ rights generally and
(b) the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of
the court before which any proceeding therefor may be brought.

 

(3)  The
execution and delivery of this Agreement by the Seller, the sale of the Mortgage
Loans by the Seller under this Agreement, the consummation of any other of the
transactions contemplated by this Agreement, and the fulfillment of or
compliance with the terms thereof are in the ordinary course of business of the
Seller and will not (a) result in a material breach of any term or provision of
the charter or by-laws of the Seller or (b) materially conflict with, result in
a material breach, violation or acceleration of, or result in a material default
under, the terms of any other material agreement or instrument to which the
Seller is a party or by which it may be bound, or (c) constitute a material
violation of any statute, order or regulation applicable to the Seller of any
court, regulatory body, administrative agency or governmental body having
jurisdiction over the Seller; and the Seller is not in breach or violation of
any material indenture or other material agreement or instrument, or in
violation of any statute, order or regulation of any court, regulatory body,
administrative agency or governmental body having jurisdiction over it which
breach or violation may materially impair the Seller’s ability to perform or
meet any of its obligations under this Agreement.

 

(4)  No
litigation is pending or, to the best of the Seller’s knowledge, threatened
against the Seller that would prohibit the execution or delivery of, or
performance under, this Agreement by the Seller.

 

(5)  The
Seller is a member
of MERS in good standing, and will comply in all material respects with the
rules and procedures of MERS in connection with the servicing of the MERS
Mortgage Loans for as long as such Mortgage Loans are registered with
MERS.

 

	(b)  	
      The
      Seller hereby makes the representations and warranties set forth in
      Schedule
      B
      hereto to the Purchaser, as of the Closing Date, or if so specified
      therein, as of the Cut-off Date.

 

-9-

 

	(c)  	
       Upon
      discovery by either of the parties hereto of a breach of a representation
      or warranty made pursuant to Schedule
      B
      hereto that materially and adversely affects the interests of the
      Purchaser in any Mortgage Loan, the party discovering such breach shall
      give prompt notice thereof to the other party. The Seller hereby covenants
      that within 90 days of the earlier of its discovery or its receipt of
      written notice from the Purchaser of a breach of any representation or
      warranty made pursuant to Schedule
      B
      hereto which materially and adversely affects the interests of the
      Purchaser in any Mortgage Loan, it shall cure such breach in all material
      respects, and if such breach is not so cured, shall, (i) if such 90-day
      period expires prior to the second anniversary of the Closing Date, remove
      such Mortgage Loan (a “Deleted Mortgage Loan”) from the pools of mortgages
      listed on Schedule
      B
      hereto and substitute in its place a Substitute Mortgage Loan, in the
      manner and subject to the conditions set forth in this Section; or (ii)
      repurchase the affected Mortgage Loan or Mortgage Loans from the Purchaser
      at the Mortgage Loan Purchase Price in the manner set forth below. With
      respect to the representations and warranties described in this Section
      which are made to the best of the Seller’s knowledge, if it is discovered
      by either the Seller or the Purchaser that the substance of such
      representation and warranty is inaccurate and such inaccuracy materially
      and adversely affects the value of the related Mortgage Loan or the
      interests of the Purchaser therein, notwithstanding the Seller’s lack of
      knowledge with respect to the substance of such representation or
      warranty, such inaccuracy shall be deemed a breach of the applicable
      representation or warranty.

 

With
respect to any Substitute Mortgage Loan or Loans, the Seller shall deliver to
the Trustee or to the Custodian on its behalf the Mortgage Note, the Mortgage,
the related assignment of the Mortgage, and such other documents and agreements
as are required by Section 3.1, with the Mortgage Note endorsed and the Mortgage
assigned as required by Section 3.1. No substitution is permitted to be made in
any calendar month after the Determination Date for such month. Scheduled
Payments due with respect to Substitute Mortgage Loans in the month of
substitution will be retained by the Seller. Upon such substitution, the
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to such Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to Schedule
B hereto
with respect to such Mortgage Loan. 

 

It is
understood and agreed that the obligation under this Agreement of the Seller to
cure, repurchase or replace any Mortgage Loan as to which a breach has occurred
and is continuing shall constitute the sole remedy against the Seller respecting
such breach available to the Purchaser on its behalf.

 

The
representations and warranties contained in this Agreement shall not be
construed as a warranty or guaranty by the Seller as to the future payments by
any Mortgagor.

 

It is
understood and agreed that the representations and warranties set forth in this
Section 4.1 shall survive the sale of the Mortgage Loans to the Purchaser
hereunder.

 

-10-

 

ARTICLE
V

Miscellaneous

 

Section
5.1  Transfer
Intended as Sale. It is
the express intent of the parties hereto that the conveyance of the Mortgage
Loans by the Seller to the Purchaser be, and be construed as, an absolute sale
thereof in accordance with GAAP and for regulatory purposes. It is, further, not
the intention of the parties that such conveyances be deemed a pledge thereof by
the Seller to the Purchaser. However, in the event that, notwithstanding the
intent of the parties, the Mortgage Loans are held to be the property of the
Seller or the Purchaser, respectively, or if for any other reason this Agreement
is held or deemed to create a security interest in such assets, then (i) this
Agreement shall be deemed to be a security agreement within the meaning of the
Uniform Commercial Code of the State of Texas and (ii) the conveyance of the
Mortgage Loans provided for in this Agreement shall be deemed to be an
assignment and a grant by the Seller to the Purchaser of a security interest in
all of the Mortgage Loans, whether now owned or hereafter
acquired.

 

The
Seller and the Purchaser shall, to the extent consistent with this Agreement,
take such actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans, such security
interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the term of the
Agreement. The Seller and the Purchaser shall arrange for filing any Uniform
Commercial Code continuation statements in connection with any security interest
granted hereby.

 

Section
5.2  Seller’s
Consent to Assignment. The
Seller hereby acknowledges the Purchaser’s right to assign, transfer and convey
all of the Purchaser’s rights under this Agreement to a third party and that the
representations and warranties made by the Seller to the Purchaser pursuant to
this Agreement will, in the case of such assignment, transfer and conveyance, be
for the benefit of such third party. The Seller hereby consents to such
assignment, transfer and conveyance.

 

Section
5.3  Specific
Performance. Either
party or its assignees may enforce specific performance of this
Agreement.

 

Section
5.4  Notices. All
notices, demands and requests that may be given or that are required to be given
hereunder shall be sent by United States certified mail, postage prepaid, return
receipt requested, to the parties at their respective addresses as
follows:

 

If
to

the
Purchaser:  4000
Horizon Way

Irving,
Texas 75063

Attn:
Larry P. Cole

If to the
Seller:     4000
Horizon Way

Irving,
Texas 75063

Attn:
Larry P. Cole

-11-

 

Section
5.5  Choice
of Law. This
Agreement shall be construed in accordance with and governed by the substantive
laws of the State of Texas applicable to agreements made and to be performed in
the State of Texas and the obligations, rights and remedies of the parties
hereto shall be determined in accordance with such laws. 

 

[remainder
of page intentionally left blank]

-12-

IN
WITNESS WHEREOF, the Purchaser and the Seller have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the
27th day of May, 2005.

 

	 	 	 
	 	FIRST HORIZON HOME LOAN
      CORPORATION, as Seller
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      Terry McCoy
	 	Executive Vice
  President

	
       

       
	 	 
	
       
	FIRST HORIZON ASSET
      SECURITIES INC., as Purchaser
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      Alfred
      Chang

	 	Vice
President

 

 

SCHEDULE
A

 

[BEGINS
ON NEXT PAGE]

 

[Available
Upon Request From Trustee]

 

SCHEDULE
B

 

Representations
and Warranties as to the Mortgage Loans

 

First
Horizon Home Loan Corporation (the “Seller”) hereby makes the representations
and warranties set forth in this Schedule
B on which
First Horizon Asset Securities Inc. (the “Purchaser”) relies in accepting the
Mortgage Loans. Such representations and warranties speak as of the execution
and delivery of the Mortgage Loan Purchase Agreement, dated as of May 27, 2005
(the “MLPA”), between First Horizon Home Loan Corporation, as seller, and the
Purchaser and as of the Closing Date, or if so specified herein, as of the
Cut-off Date or date of origination of the Mortgage Loans, but shall survive the
sale, transfer, and assignment of the Mortgage Loans to the Purchaser and any
subsequent sale, transfer and assignment by the Purchaser to a third party.
Capitalized terms used but not otherwise defined in this Schedule
B shall
have the meanings ascribed thereto in the MLPA or the Pooling and Servicing
Agreement, dated as of May 1, 2005, between First Horizon Asset Securities Inc.,
as depositor, First Horizon Home Loan Corporation, as master servicer, and The
Bank of New York, as trustee.

 

	(1)  	
      The
      information set forth on Schedule
      A to
      the MLPA, with respect to each Mortgage Loan is true and correct in all
      material respects as of the Closing Date.

 

	(2)  	
      Each
      Mortgage is a valid and enforceable first lien on the Mortgaged Property
      subject only to (a) the lien of nondelinquent current real property taxes
      and assessments and liens or interests arising under or as a result of any
      federal, state or local law, regulation or ordinance relating to hazardous
      wastes or hazardous substances and, if the related Mortgaged Property is a
      unit in a condominium project or Planned Unit Development, any lien for
      common charges permitted by statute or homeowner association fees, (b)
      covenants, conditions and restrictions, rights of way, easements and other
      matters of public record as of the date of recording of such Mortgage,
      such exceptions appearing of record being generally acceptable to mortgage
      lending institutions in the area wherein the related Mortgaged Property is
      located or specifically reflected in the appraisal made in connection with
      the origination of the related Mortgage Loan, and (c) other matters to
      which like properties are commonly subject which do not materially
      interfere with the benefits of the security intended to be provided by
      such Mortgage.

 

	(3)  	
      Immediately
      prior to the assignment of the Mortgage Loans to the Purchaser, the Seller
      had good title to, and was the sole owner of, each Mortgage Loan free and
      clear of any pledge, lien, encumbrance or security interest and had full
      right and authority, subject to no interest or participation of, or
      agreement with, any other party, to sell and assign the same pursuant to
      this Agreement.

 

	(4)  	
      As
      of the date of origination of each Mortgage Loan, there was no delinquent
      tax or assessment lien against the related Mortgaged
    Property.

 

B-1

 

	(5)  	
      There
      is no valid offset, defense or counterclaim to any Mortgage Note or
      Mortgage, including the obligation of the Mortgagor to pay the unpaid
      principal of or interest on such Mortgage
Note.

 

	(6)  	
      There
      are no mechanics’ liens or claims for work, labor or material affecting
      any Mortgaged Property which are or may be a lien prior to, or equal with,
      the lien of such Mortgage, except those which are insured against by the
      title insurance policy referred to in item (11)
below.

 

	(7)  	
      To
      the best of the Seller’s knowledge, no Mortgaged Property has been
      materially damaged by water, fire, earthquake, windstorm, flood, tornado
      or similar casualty (excluding casualty from the presence of hazardous
      wastes or hazardous substances, as to which the Seller makes no
      representation) so as to affect adversely the value of the related
      Mortgaged Property as security for such Mortgage Loan. With respect to the
      representations and warranties contained within this item (7) that are
      made to the knowledge or the best knowledge of the Seller or as to which
      the Seller has no knowledge, if it is discovered that the substance of any
      such representation and warranty is inaccurate and the inaccuracy
      materially and adversely affects the value of the related Mortgage Loan,
      or the interest therein of the Purchaser, then notwithstanding the
      Seller’s lack of knowledge with respect to the substance of such
      representation and warranty being inaccurate at the time the
      representation and warranty was made, such inaccuracy shall be deemed a
      breach of the applicable representation and warranty and the Seller shall
      take such action described in Section 4.1(c) of this Agreement in respect
      of such Mortgage Loan.

 

	(8)  	
      Each
      Mortgage Loan at origination complied in all material respects with
      applicable local, state and federal laws, including, without limitation,
      usury, equal credit opportunity, real estate settlement procedures,
      truth-in-lending and disclosure laws and specifically applicable predatory
      and abusive lending laws, or any noncompliance does not have a material
      adverse effect on the value of the related Mortgage
  Loan.

 

	(9)  	
      No
      Mortgage Loan is a “high cost loan” as defined by the specific applicable
      predatory and abusive lending laws.

 

	(10)  	
      Except
      as reflected in a written document contained in the related Mortgage File,
      the Seller has not modified the Mortgage in any material respect;
      satisfied, cancelled or subordinated such Mortgage in whole or in part;
      released the related Mortgaged Property in whole or in part from the lien
      of such Mortgage; or executed any instrument of release, cancellation,
      modification or satisfaction with respect
thereto.

 

	(11)  	
      A
      lender’s policy of title insurance together with a condominium endorsement
      and extended coverage endorsement, if applicable, in an amount at least
      equal to the Cut-off Date Principal Balance of each such Mortgage Loan or
      a commitment (binder) to issue the same was effective on the date of the
      origination of each Mortgage Loan, each such policy is valid and remains
      in full force and effect, or, in lieu thereof, an Alternative Title
      Product.

 

B-2

 

	(12)  	
      To
      the best of the Seller’s knowledge, all of the improvements which were
      included for the purpose of determining the appraised value of the
      Mortgaged Property lie wholly within the boundaries and building
      restriction lines of such property, and no improvements on adjoining
      properties encroach upon the Mortgaged Property, unless such failure to be
      wholly within such boundaries and restriction lines or such encroachment,
      as the case may be, does not have a material effect on the value of such
      Mortgaged Property.

 

	(13)  	
      To
      the best of the Seller’s knowledge, as of the date of origination of each
      Mortgage Loan, no improvement located on or being part of the Mortgaged
      Property is in violation of any applicable zoning law or regulation unless
      such violation would not have a material adverse effect on the value of
      the related Mortgaged Property. To the best of the Seller’s knowledge, all
      inspections, licenses and certificates required to be made or issued with
      respect to all occupied portions of the Mortgaged Property and, with
      respect to the use and occupancy of the same, including but not limited to
      certificates of occupancy and fire underwriting certificates, have been
      made or obtained from the appropriate authorities, unless the lack thereof
      would not have a material adverse effect on the value of such Mortgaged
      Property.

 

	(14)  	
      The
      Mortgage Note and the related Mortgage are genuine, and each is the legal,
      valid and binding obligation of the maker thereof, enforceable in
      accordance with its terms and under applicable
law.

 

	(15)  	
      The
      proceeds of the Mortgage Loans have been fully disbursed and there is no
      requirement for future advances thereunder.

 

	(16)  	
      The
      related Mortgage contains customary and enforceable provisions which
      render the rights and remedies of the holder thereof adequate for the
      realization against the Mortgaged Property of the benefits of the
      security, including, (i) in the case of a Mortgage designated as a deed of
      trust, by trustee’s sale, and (ii) otherwise by judicial
      foreclosure.

 

	(17)  	
      With
      respect to each Mortgage constituting a deed of trust, a trustee, duly
      qualified under applicable law to serve as such, has been properly
      designated and currently so serves and is named in such Mortgage, and no
      fees or expenses are or will become payable by the holder of the Mortgage
      to the trustee under the deed of trust, except in connection with a
      trustee’s sale after default by the
Mortgagor.

 

	(18)  	
      As
      of the Closing Date, the improvements upon each Mortgaged Property are
      covered by a valid and existing hazard insurance policy with a generally
      acceptable carrier that provides for fire and extended coverage and
      coverage for such other hazards as are customarily required by
      institutional single family mortgage lenders in the area where the
      Mortgaged Property is located, and the Seller has received no notice that
      any premiums due and payable thereon have not been paid; the Mortgage
      obligates the Mortgagor thereunder to maintain all such insurance
      including flood insurance at the Mortgagor’s cost and expense. Anything to
      the contrary in this item (18) notwithstanding, no breach of this item
      (18) shall be deemed to give rise to any obligation of the Seller to
      repurchase or substitute for such affected Mortgage Loan or Loans so long
      as the Seller maintains a blanket policy.

 

B-3

 

	(19)  	
      If
      at the time of origination of each Mortgage Loan, related the Mortgaged
      Property was in an area then identified in the Federal Register by the
      Federal Emergency Management Agency as having special flood hazards, a
      flood insurance policy in a form meeting the then-current requirements of
      the Flood Insurance Administration is in effect with respect to such
      Mortgaged Property with a generally acceptable
carrier.

 

	(20)  	
      To
      the best of the Seller’s knowledge, there is no proceeding pending or
      threatened for the total or partial condemnation of any Mortgaged
      Property, nor is such a proceeding currently
occurring.

 

	(21)  	
      To
      best of the Seller’s knowledge, there is no material event which, with the
      passage of time or with notice and the expiration of any grace or cure
      period, would constitute a material non-monetary default, breach,
      violation or event of acceleration under the Mortgage or the related
      Mortgage Note; and the Seller has not waived any material non-monetary
      default, breach, violation or event of
acceleration.

 

	(22)  	
      Any
      leasehold estate securing a Mortgage Loan has a stated term at least as
      long as the term of the related Mortgage
Loan.

 

	(23)  	
      Each
      Mortgage Loan was selected from among the outstanding adjustable-rate one-
      to four-family mortgage loans in the Seller’s portfolio at the Closing
      Date as to which the representations and warranties made with respect to
      the Mortgage Loans set forth in this Schedule
      B
      can be made. No such selection was made in a manner intended to adversely
      affect the interests of the
Certificateholders.

 

	(24)  	
      The
      Mortgage Loans provide for the full amortization of the amount financed
      over a series of monthly payments.

 

	(25)  	
      At
      origination, substantially all of the Mortgage Loans had stated terms to
      maturity of 30 years.

 

	(26)  	
      Scheduled
      monthly payments made by the Mortgagors on the Mortgage Loans either
      earlier or later than their Due Dates will not affect the amortization
      schedule or the relative application of the payments to principal and
      interest.

 

	(27)  	
      The
      Mortgage Loans may be prepaid at any time by the related Mortgagors
      without penalty.

 

B-4

 

	(28)  	
      Some
      of the Mortgage Loans are jumbo mortgage loans that have Stated Principal
      Balances at origination that exceed the then applicable limitations for
      purchase by Fannie Mae and Freddie Mac.

 

	(29)  	
      Each
      Mortgage Loan in Pool I and Pool II was originated on or after November
      11, 2004 and September 24, 2004,
respectively.

 

	(30)  	
      The
      latest stated maturity date of any Mortgage Loan in Pool I is June 1,
      2035, and the earliest is December 1, 2034. The latest stated maturity
      date of any Mortgage Loan in Pool II is June 1, 2035, and the earliest is
      October 1, 2034.

 

	(31)  	
      No
      Mortgage Loan was delinquent more than 30 days as of the Cut-off
      Date.

 

	(32)  	
      No
      Mortgage Loan had a Loan-to-Value Ratio at origination of more than 95%.
      Generally, each Mortgage Loan with a Loan-to-Value Ratio at origination of
      greater than 80% is covered by a Primary Insurance Policy issued by a
      mortgage insurance company that is acceptable to Fannie Mae or Freddie
      Mac.

 

	(33)  	
      Each
      Mortgage Loan constitutes a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code.

 

	(34)  	
      No
      Mortgage Loan is a “high cost loan” as defined by the specific applicable
      predatory and abusive lending laws. In addition, no Mortgage Loan is a
      “High Cost Loan” or a “Covered Loan”, as applicable (as such terms are
      defined in the then current Standard & Poor’s LEVELSâ
      Glossary which is now Version 5.6b Revised, Appendix E) and no Mortgage
      Loan originated on or after October 1, 2002 through March 6, 2003 is
      governed by the Georgia Fair Lending Act.

 

	(35)  	
      Appraisal
      form 1004 or form 2055 with an interior inspection for first lien mortgage
      loans has been obtained for all related mortgaged properties, other than
      condominiums, investment properties, two to four unit properties and
      exempt properties, for which appraisal form 1004 or form 2055 has not been
      obtained.

 

Appraisal
form 704, 2065 or 2055 with an exterior only inspection for junior lien
mortgages combined with first lien mortgages (including home equity lines of
credit) has been obtained for all related mortgaged properties, other than
condominiums, investment properties, two to four unit properties and exempt
properties, for which appraisal form 1004 or form 2055 has not been obtained.
Appraisal form 704, 2065 or 2055 with an exterior only inspection for all other
junior lien mortgages has been obtained for all related mortgaged properties,
other than those related mortgaged properties that qualify for an Automated
Valuation Model.

 

B-5EXHIBIT
10.1

AGREEMENT
AND PLAN OF REORGANIZATION

AMONG

RADIUM
VENTURES INC.,

RADIUM
VENTURES ACQUISITION, INC.

AND

INTERACTIVE
TELEVISION NETWORKS, INC.

 

 

TABLE OF CONTENTS

	
      1.

       
	
      Plan
      of Reorganization

       
	
      2

       

	
      2.

       
	
      Terms
      of Merger

       
	
      2

       

	
      3.

       
	
      Delivery
      of Shares

       
	
      3

       

	
      4.

       
	
      Representations
      of ITV

       
	
      4

       

	
      5.

       
	
      Representations
      of Radium, Radium Sub and the Founders

       
	
      5

       

	
      6.

       
	
      Closing

       
	
      11

       

	
      7.

       
	
      Actions
      Prior to Closing.

       
	
      11

       

	
      8.

       
	
      Conditions
      Precedent to the Obligations of ITV

       
	
      12

       

	
      9.

       
	
      Conditions
      Precedent to the Obligations of Radium and Radium Sub

       
	
      14

       

	
      10.

       
	
      Survival
      and Indemnification

       
	
      15

       

	
      11.

       
	
      Nature
      of Representations

       
	
      18

       

	
      12.

       
	
      Documents
      at Closing

       
	
      18

       

	
      13.

       
	
      Financial
      Advisory or Finder’s Fees

       
	
      19

       

	
      14.

       
	
      Post-Closing
      Covenants.

       
	
      20

       

	
      15.

       
	
      Miscellaneous.

       
	
      20

       

	
      Signature
      Page
	
       
	
      22

 

	
      Exhibit A
	
      -
	
      Articles
      of Merger (Nevada)

	
      Exhibit B
	
      -
	
      Investment
      Letter

	
      Exhibit C
	
      -
	
      Indemnification
      Waiver

	
      Exhibit
      D
	 	
      Stock
      Cancellation Agreement

 

 

This
Agreement and Plan of Reorganization (hereinafter the “Agreement”) is entered
into effective as of this 27th day of
May, 2005, by and among Radium Ventures Inc., a Nevada corporation (hereinafter
“Radium”); Radium Ventures Acquisition, Inc., a newly-formed Nevada corporation
(hereinafter “Radium Sub”); Shane Whittle and James Scott-Moncrieff, the
principal stockholders and founders of Radium (individually and collectively,
the “Founders”); and Interactive Television Networks, Inc., a Nevada corporation
formerly knows as XTV, Inc. (hereinafter “ITV”).

 

RECITALS

 

WHEREAS,
Radium desires to acquire ITV as a wholly-owned subsidiary and to issue shares
of Radium common stock $.001 par value (“Radium Common Stock”) to the
stockholders of ITV upon the terms and conditions set forth herein. Radium Sub
is a wholly-owned subsidiary corporation of Radium that shall be merged into
ITV, whereupon ITV shall be the surviving corporation of said merger and shall
become a wholly-owned subsidiary of Radium (Radium Sub and ITV are sometimes
collectively hereinafter referred to as the “Constituent
Corporations”).

 

WHEREAS,
the boards of directors of Radium and ITV, respectively, deem it advisable and
in the best interests of such corporations and their respective stockholders
that Radium Sub merge with and into ITV pursuant to this Agreement and the
Nevada Articles of Merger (in the form attached hereto as Exhibit “A”) and
pursuant to applicable provisions of law (such transaction hereafter referred to
as the “Merger”);

 

WHEREAS,
Radium Sub has an authorized capitalization consisting of 25,000,000 shares of
$.001 par value common stock, of which 1,000 shares shall be issued and
outstanding and owned by Radium as of the closing of the Merger;

 

WHEREAS,
Radium has an authorized capitalization consisting of 25,000,000 shares of
Radium Common Stock, of which, 2,632,450 shares are currently issued and
outstanding as of the date hereof;

 

WHEREAS,
750,000 shares of Radium Common Stock shall be cancelled prior to the closing of
the Merger, so that the total number of shares of Radium Common Stock issued and
outstanding immediately prior to the Merger shall be reduced to
1,882,450;

 

WHEREAS,
ITV has an authorized capitalization consisting of 30,000,000 shares of common
stock, $.001 par value (“ITV Common Stock”), of which, 33,333 shares are
currently issued and outstanding, as of the date hereof; and

 

WHEREAS,
the Founders currently are the principal shareholders of Radium and will benefit
from the transactions contemplated herein (directly or through the sale of some
or all of their shares in Radium to one or more third parties prior to or after
the closing of the Merger).

 

NOW
THEREFORE, for the mutual consideration set out herein, and other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1

 

AGREEMENT

 

1.  Plan
of Reorganization. The
parties to this Agreement do hereby agree that Radium Sub shall be merged with
and into ITV upon the terms and conditions set forth herein and in accordance
with the provisions of the Nevada Revised Statutes. It is the intention of the
parties hereto that this transaction qualify as a tax-free reorganization under
Section 368(a)(2)(E) of the Internal Revenue Code of 1986, as amended, and
related sections thereunder.

 

2.  Terms
of Merger. In
accordance with the provisions of this Agreement and the requirements of
applicable law, Radium Sub shall be merged with and into ITV as of the Effective
Date (the terms “Closing” and “Effective Date” are defined in Section 6
hereof). ITV shall be the surviving corporation (hereinafter sometimes the
“Surviving Corporation”) and the separate existence of Radium Sub shall cease
when the Merger shall become effective. Consummation of the Merger shall be upon
the following terms and subject to the conditions set forth herein:

 

(a)  Corporate
Existence.

 

(1)  Commencing
with the Effective Date, the Surviving Corporation shall continue its corporate
existence as a Nevada corporation and (i) it shall thereupon and thereafter
possess all rights, privileges, powers, franchises and property (real, personal
and mixed) of each of the Constituent Corporations; (ii) all debts due to
either of the Constituent Corporations, on whatever account, all causes of
action and all other things belonging to either of the Constituent Corporations
shall be taken and deemed to be transferred to and shall be vested in the
Surviving Corporation by virtue of the Merger without further act or deed; and
(iii) all rights of creditors and all liens, if any, upon any property of
any of the Constituent Corporations shall be preserved unimpaired, limited in
lien to the property affected by such liens immediately prior to the Effective
Date, and all debts, liabilities and duties of the Constituent Corporations
shall thenceforth attach to the Surviving Corporation.

 

(2)  At the
Effective Date, (i) the Articles of Incorporation and the By-laws of ITV,
as existing immediately prior to the Effective Date, shall be and remain the
Articles of Incorporation and By-Laws of the Surviving Corporation;
(ii) the members of the Board of Directors of the Surviving Corporation
holding office immediately prior to the Effective Date shall remain as the
members of the Board of Directors of the Surviving Corporation (if on or after
the Effective Date a vacancy exists on the Board of Directors of the Surviving
Corporation, such vacancy may thereafter be filled in a manner provided by
applicable law and the By-laws of the Surviving Corporation); and
(iii) until the Board of Directors of the Surviving Corporation shall
otherwise determine, all persons who hold offices of the Surviving Corporation
at the Effective Date shall continue to hold the same offices of the Surviving
Corporation.

 

(b)  Conversion
of Securities.

 

As of the
Effective Date and without any action on the part of Radium, Radium Sub, ITV or
the holders of any of the securities of any of these corporations, each of the
following shall occur:

 

2

 

(1)  Each
share of ITV Common Stock issued and outstanding immediately prior to the
Effective Date shall be converted into 663.53314 shares of Radium Common Stock.
Accordingly, the 33,333 outstanding shares of ITV Common Stock shall be
converted into a total of 22,117,550 shares of Radium Common Stock. All such
shares of ITV Common Stock shall no longer be outstanding and shall
automatically be canceled and shall cease to exist, and each certificate
previously evidencing any such shares shall thereafter represent the right to
receive, upon the surrender of such certificate in accordance with the
provisions of Section 3 hereof, certificates evidencing such number of
shares of Radium Common Stock, respectively, into which such shares of ITV
Common Stock were converted. The holders of such certificates previously
evidencing shares of ITV Common Stock outstanding immediately prior to the
Effective Date shall cease to have any rights with respect to such shares of ITV
Common Stock except as otherwise provided herein or by law;

 

(2)  Any
shares of ITV capital stock held in the treasury of ITV immediately prior to the
Effective Date shall automatically be canceled and extinguished without any
conversion thereof and no payment shall be made with respect
thereto;

 

(3)  Each
share of capital stock of Radium Sub issued and outstanding immediately prior to
the Effective Date shall remain in existence as one share of common stock of the
Surviving Corporation, which shall be owned by Radium;

 

(4)  The
1,882,450 shares of Radium Common Stock issued and outstanding immediately prior
to the Merger will remain outstanding after the Merger.

 

(c)  Other
Matters.

 

(1)  A vacancy
currently exists on the Board of Directors of Radium. Prior to the Closing, the
existing sole director of Radium shall nominate and elect one person designated
by ITV to fill the current vacancy on the Board of Directors of Radium, which
election shall become effective on the Effective Date immediately following the
effectiveness of the Merger. In addition, Radium shall nominate and appoint two
additional persons designated by ITV (the “ITV Directors”) to the Radium Board
of Directors, which election shall become effective on the later of (i)
Effective Date, or (ii) the tenth day following the later of the date of the
filing of the Information Statement with the Securities and Exchange Commission
or the date of mailing of an Information Statement under Rule 14f-1 (referred to
in Section 8(m) below) to Radium’s stockholders. At the time that the ITV
Directors take office, Mr. Shane Whittle, currently the sole director of Radium,
shall resign as a director.

 

(2)  Upon the
effectiveness of the Merger, Radium shall assume and will be bound by the
registration rights agreements previously entered into, or hereafter entered
into, between ITV and any of the stockholders of ITV.

 

(d)  Tax
Treatment. The
parties intend that the Merger will qualify as a reorganization (a
“reorganization”) under Section 368(a) of the Internal Revenue Code of
1986, as amended (the “Code”) and agree to report the Merger consistent with
that intent. Notwithstanding the foregoing, the parties agree and acknowledge
that neither Radium, Radium Sub, ITV nor any of the Founders has made any
representation, warranty or covenant regarding the status of the Merger as a
reorganization

 

3

 

3.  Delivery
of Shares. On or
as soon as practicable after the Effective Date, ITV will use reasonable efforts
to cause all holders of ITV Common Stock, to surrender to Radium’s transfer
agent for cancellation certificates representing their shares of ITV Common
Stock, against delivery of certificates representing the shares of Radium Common
Stock for which the ITV shares are to be converted in the Merger. Until
surrendered and exchanged as herein provided, each outstanding certificate
which, prior to the Effective Date, represented ITV Common Stock shall be deemed
for all corporate purposes to evidence ownership of the same number of shares of
Radium Common Stock into which the shares of ITV Common Stock represented by
such ITV certificate shall have been so converted.

 

4.  Representations
of ITV. ITV
hereby represents and warrants as follows, which warranties and representations
shall also be true as of the Effective Date:

 

(a)  As of the
date hereof, the total number of shares of ITV Common Stock issued and
outstanding is 33,333. The foregoing shares represent all of the shares of ITV
capital stock that will be issued and outstanding as of the Effective Date. Of
the 33,333 currently issued and outstanding shares, 2,083 are held in escrow and
are subject to forfeiture, which shares shall remain in escrow and shall
continue to be subject to forfeiture immediately after the Effective Date.

 

(b)  The ITV
Common Stock constitutes duly authorized, validly issued shares of capital stock
of ITV. All shares of ITV Common Stock are fully paid and
nonassessable.

 

(c)  The ITV
unaudited financial statements as of and for the years ended December 31, 2003
and December 31, 2004, and the unaudited financial statements for the
interim period ending March 31, 2005 (hereinafter referred to as the “ITV
Financial Statements”) fairly present the financial condition of ITV as of the
dates thereof and the results of its operations for the periods covered. Other
than as set forth in any schedule or Exhibit attached hereto, and except as may
otherwise be set forth or referenced herein, there are no material liabilities
or obligations, either fixed or contingent, not disclosed or referenced in the
ITV Financial Statements or in any exhibit thereto or notes thereto other than
contracts or obligations occurring in the ordinary course of business since
March 31, 2005; and no such contracts or obligations occurring in the ordinary
course of business constitute liens or other liabilities which materially alter
the financial condition of ITV as reflected in the ITV Financial Statements. ITV
has or will have at the Closing, good title to all assets shown on the ITV
Financial Statements subject only to dispositions and other transactions in the
ordinary course of business, the disclosures set forth therein and liens and
encumbrances of record. The ITV Financial Statements have been prepared in
accordance with generally accepted accounting principles (except as may be
indicated therein or in the notes thereto).

 

(d)  Since
March 31, 2005, there have not been any material adverse changes in the
financial position of ITV except changes arising in the ordinary course of
business, which changes will not materially and adversely affect the financial
position of ITV.

 

4

 

(e)  ITV is
not a party to any material pending litigation or, to the Knowledge of its
executive officers, any governmental investigation or proceeding, not reflected
in the ITV Financial Statements, and, to its Knowledge, no material litigation,
claims, assessments or any governmental proceedings are threatened against ITV.
As used in this Agreement, the term “Knowledge” shall mean, (i) with respect to
the Founders or any of the officers or either ITV, Radium or Radium Sub, the
actual knowledge of such person, the knowledge that such person would have
acquired upon diligent inquiry and the knowledge that is imputed to such person
by operation of applicable law; and (ii) with respect to ITV, Radium and Radium
Sub, the actual knowledge of each of its directors, executive officers and key
employees, the knowledge that each such person would have acquired upon diligent
inquiry and the knowledge that is imputed to each such person by operation of
applicable law.

 

(f)  ITV is in
good standing in its state of incorporation, and is in good standing and duly
qualified to do business in each state where required to be so qualified except
where the failure to so qualify would have no material negative impact on
ITV.

 

(g)  ITV has,
or by the Effective Date will have, filed all material tax, governmental and/or
related forms and reports (or extensions thereof) due or required to be filed in
the ordinary course of business and has (or will have) paid or made adequate
provisions for all taxes or assessments which have become due as of the
Effective Date.

 

(h)  ITV has
not materially breached any material agreement to which it is a party. ITV has
previously given Radium copies of or access to all material contracts,
commitments and/or agreements to which ITV is a party, including all contracts
covering relationships or dealings with related parties or
affiliates.

 

(i)  ITV has
no subsidiary corporations.

 

(j)  ITV has
made its corporate financial records, minute books, and other corporate
documents and records available for review to present management of
Radium.

 

(k)  ITV has
the corporate power to enter into this Agreement and to perform its obligations
hereunder. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby have been or will prior to the Closing and
the Effective Date be duly authorized by the Board of Directors of ITV and by
the stockholders of ITV. The execution of this Agreement does not materially
violate or breach any material agreement or contract to which ITV is a party,
and ITV, to the extent required, has (or will have by Closing) obtained all
necessary approvals or consents required by any agreement to which ITV is a
party. The execution and performance of this Agreement will not violate or
conflict with any provision of the Articles of Incorporation or Bylaws of
ITV.

 

(l)  All
written information regarding ITV which has been delivered by ITV to Radium for
use in connection with the Merger, is true and accurate in all material
respects.

 

5.  Representations
of Radium, Radium Sub and the Founders. Radium,
Radium Sub and the Founders hereby jointly and severally represent and warrant
as follows, each of which representations and warranties shall continue to be
true as of the Effective Date.

 

5

 

(a)  As of the
Effective Date, the shares of Radium Common Stock to be issued and delivered to
the ITV Stockholders hereunder and in connection herewith will, when so issued
and delivered, constitute duly authorized, validly and legally issued,
fully-paid, nonassessable shares of Radium capital stock, free of all liens and
encumbrances.

 

(b)  Radium
has the corporate power to enter into this Agreement and to perform its
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby (i) have been or will
prior to the Closing and the Effective Date be duly authorized by the respective
Boards of Directors of Radium and Radium Sub and by Radium as the sole
stockholder of Radium Sub, and (ii) do not have to be approved or
authorized by the stockholders of Radium. The execution and performance of this
Agreement will not constitute a material breach of any agreement, indenture,
mortgage, license or other instrument or document to which Radium or Radium Sub
is a party or to which it is otherwise subject and will not violate any
judgment, decree, order, writ, law, rule, statute, or regulation applicable to
Radium, Radium Sub or their properties. The execution and performance of this
Agreement will not violate or conflict with any provision of the Articles of
Incorporation or Bylaws of either Radium or Radium Sub.

 

(c)  Radium
has delivered, or will prior to the Closing deliver to ITV a true and complete
copy of its audited financial statements for the fiscal years ended
April 30, 2003, 2004 and 2005 (the “Radium Financial Statements”). The
Radium Financial Statements are complete, accurate and fairly present the
financial condition of Radium as of the dates thereof and the results of its
operations for the periods then ended. There are no material liabilities or
obligations either fixed or contingent not reflected therein. The Radium
Financial Statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis (except as may be indicated
therein) and fairly present the financial position of Radium as of the dates
thereof and the results of its operations and changes in financial position for
the periods then ended. Radium Sub has no financial statements because it was
recently formed solely for the purpose of effectuating the Merger and it has
been, is and will remain inactive except for purposes of the Merger, and it has
no assets, liabilities, contracts or obligations of any kind other than as
incurred in the ordinary course in connection with its incorporation in Nevada.
Radium has no subsidiaries or affiliates except for Radium Sub, and Radium Sub
has no subsidiaries or affiliates.

 

(d)  Since
April 30, 2005, there have not been any material adverse changes in the
financial condition of Radium. At the Closing, neither Radium nor Radium Sub
shall have any material assets and neither such corporation now has, nor shall
it have, any liabilities of any kind other than (i) those reflected in the
Radium Financial Statements and (ii) expenses and liabilities that have been
incurred or accrued since April 30, 2005 in the ordinary course of business
consistent with past practice. At the Closing, other than the obligation of
Radium to issue 50,000 shares of Radium Common Stock as set forth in Section 13
below, the total amount of all indebtedness and liabilities of Radium and Radium
Sub (whether reflected on audited financial statements of Radium for the fiscal
year ended April 30, 2005 or incurred thereafter), including the costs or
liabilities incurred in connection with the Merger, shall in no event exceed $
500.00 in the aggregate. 

 

6

 

(e)  Neither
Radium nor Radium Sub is a party to, or the subject of, any pending litigation,
claims, or governmental investigation or proceeding not reflected in the Radium
Financial Statements, and to the Knowledge of the Founders, Radium and Radium
Sub, there are no lawsuits, claims, assessments, investigations, or similar
matters, threatened or contemplated against or affecting Radium Sub, Radium, or
the management or properties of Radium or Radium Sub. 

 

(f)  Radium
and Radium Sub are each duly organized, validly existing and in good standing
under the laws of the jurisdiction of their incorporation; each has the
corporate power to own its property and to carry on its business as now being
conducted and is duly qualified to do business in any jurisdiction where so
required except where the failure to so qualify would have no material negative
impact. Neither corporation is required to be qualified to do business in any
state other than the state of Nevada and British Columbia, Canada.

 

(g)  Radium
and Radium Sub have filed all federal, state, county and local income, excise,
property and other tax, governmental and/or other returns, forms, filings, or
reports (in the United States and in Canada), which are due or required to be
filed by it prior to the date hereof and have paid or made adequate provision in
the Radium Financial Statements for the payment of all taxes, fees, or
assessments which have or may become due pursuant to such returns, filings or
reports or pursuant to any assessments received. Neither Radium nor Radium Sub
is delinquent or obligated for any tax, penalty, interest, delinquency or charge
and there are no tax liens or encumbrances applicable to either
corporation.

 

(h)  As of the
date of this Agreement, Radium’s authorized capital stock consists of 25,000,000
shares of Radium Common Stock, $.001 par value, of which 2,632,450 shares are
presently issued and outstanding. At the Closing, Radium shall have outstanding
1,882,450 shares of Radium Common Stock and no other shares of its capital
stock. The 1,000,000 shares of Radium Common Stock formerly issued to Paul Chow
have been properly cancelled and are no longer outstanding, and Mr. Chow has no
right or claim to any shares of capital stock of Radium. Radium Sub’s
capitalization consists solely of 25,000,000 authorized shares of $.001 par
value common stock (“Radium Sub’s Common Stock”), of which 1,000 shares are
outstanding, all of which are owned by Radium, free and clear of all liens,
claims and encumbrances. All outstanding shares of capital stock of Radium and
Radium Sub are, and shall be at Closing, validly issued, fully paid and
nonassessable. Except as set forth below in this Section 5(h), there are no
stock appreciation rights, options, warrants, calls, rights, commitments,
conversion privileges or preemptive or other rights or agreements outstanding to
purchase or otherwise acquire any of Radium’s authorized but unissued capital
stock or any securities or debt convertible into or exchangeable for shares of
Radium Common Stock or obligating Radium to grant, extend or enter into such
option, warrant, call, commitment, conversion privileges or preemptive or other
right or agreement. Subject to ITV’s prior written approval, Radium may enter
into agreements with one or more persons to become executive officers of Radium
following the Effective Date, which agreements may provide for the issuance of
additional shares of Radium Common Stock and/or options or warrants to purchase
Radium Common Stock to such executives. 

 

(i)  Radium
and Radium Sub have (and at the Closing they will have) disclosed in writing to
ITV all events, conditions and facts that materially affect, or could in the
future materially affect the business, financial conditions (including any
liabilities, contingent or otherwise) or results of operations of either Radium
or Radium Sub. 

 

7

 

(j)  The
financial records, minute books, and other documents and records of Radium and
Radium Sub have been made available to ITV prior to the Closing. The records and
documents of Radium and Radium Sub that have been delivered to ITV constitute
all of the records and documents of Radium and Radium Sub that the Founders are
aware of or that are in their possession or in the possession of Radium or
Radium Sub.

 

(k)  To its
Knowledge, neither Radium nor Radium Sub has breached, nor is there any pending,
or to the Knowledge of the Founders, any existing or threatened claim that
Radium or Radium Sub has breached, any of the terms or conditions of any
agreements, contracts, commitments or other documents to which it is a party or
by which it is, or its properties are bound. The execution and performance of
this Agreement will not violate any provisions of applicable law or any
agreement to which Radium or Radium Sub is subject. Each of Radium and Radium
Sub hereby represent and warrant that it is not a party to any material contract
or commitment other than such documents that are listed as exhibits to Radium’s
Annual Report on Form 10-KSB for the fiscal year ended April 30,
2005.

 

(l)  Other
than as described in Radium’s Annual Report on Form 10-KSB for the fiscal year
ended April 30, 2005, there are no agreements, understandings or arrangements
(written or oral) or existing relationships or dealings between Radium and the
Founders or with any related or controlling parties or affiliates of Radium.

 

(m)  Radium
has complied with all of the provisions relating to the issuance of shares, and
for the registration thereof, under the Securities Act of 1933, as amended (the
“Securities Act”), other applicable securities laws (including the securities
laws of Canada or other foreign jurisdiction, if applicable), and all applicable
U.S. blue sky laws in connection with any and all of its stock issuances. There
are no outstanding, pending or to its Knowledge threatened stop orders or other
actions or investigations relating thereto involving federal and state
securities laws (including the securities laws of Canada or other foreign
jurisdiction, if applicable). All issued and outstanding shares of Radium’s
equity and other securities were offered and sold in compliance with federal and
state securities laws (including the securities laws of Canada or other foreign
jurisdiction, if applicable). 

 

(n)  Radium
was organized for the purposes of, becoming a document editing company that
utilizes the Internet as its main distribution channel. Radium was not formed
for the purposes of engaging in a merger or acquisition with an unidentified
company and is not, nor has it ever been, a “blank-check company.” 

 

(o)  All
information regarding Radium set forth in any document or other communication,
disseminated to any former, existing or potential stockholders of Radium or to
the public or filed with the National Association of Securities Dealers (the
“NASD”), the U.S. Securities and Exchange Commission (the “SEC”), any U.S. state
securities regulators or authorities, or any securities regulators or
authorities of Canada, was at the time of such communication true, complete,
accurate in all material respects, not misleading, and was and is in full
compliance with all applicable securities laws and regulations.

 

8

 

(p)  Radium is
and has been in compliance with, and Radium has conducted any business
previously owned or operated by it in compliance with, all U.S. and Canadian
applicable laws, orders, rules and regulations of all governmental bodies and
agencies, including applicable securities laws and regulations and environmental
laws and regulations, except where such noncompliance has and will have, in the
aggregate, no material adverse effect. Radium has not received notice of any
noncompliance with the foregoing, nor is it aware of any claims or threatened
claims in connection therewith. Radium has never conducted any operations or
engaged in any business transactions whatsoever other than as set forth in the
reports Radium has previously filed with the SEC. 

 

(q)  Without
limiting the foregoing, (i) Radium and any other person or entity for whose
conduct Radium is legally held responsible are and have been in material
compliance with all applicable federal, state, regional, local laws, statutes,
ordinances, judgments, rulings and regulations relating to any matters of
pollution, protection of the environment, health or safety, or environmental
regulation or control, and (ii) neither Radium nor any other person for
whose conduct Radium is legally held responsible has manufactured, generated,
treated, stored, handled, processed, released, transported or disposed of any
hazardous substance on, under, from or at any of Radium’s properties or in
connection with Radium’s operations. 

 

(r)  Radium
has filed all required documents, reports and schedules with the SEC, the NASD
and any applicable state or regional securities regulators or authorities
(collectively, the “Radium SEC Documents”). As of their respective dates, the
Radium SEC Documents complied in all material respects with the requirements of
the Securities Act, the NASD rules and regulations and state and regional
securities laws and regulations, as the case may be, and, at the respective
times they were filed, none of the Radium SEC Documents contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial
statements (including, in each case, any notes thereto) of Radium included in
the Radium SEC Documents complied as to form and substance in all material
respects with applicable accounting requirements and the rules and regulations
of the SEC with respect thereto, were prepared in accordance with generally
accepted accounting principles (except as may be indicated therein or in the
notes thereto) applied on a consistent basis during the periods involved (except
as may be indicated therein or in the notes thereto) and fairly presented in all
material respects the financial position of Radium as of the respective dates
thereof and the results of its operations and its cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments and to any other adjustments described therein). 

 

(s)  Except as
and to the extent specifically disclosed in this Agreement and as may be
specifically disclosed or reserved against as to amount in the latest balance
sheet contained in the Radium Financial Statements, there is no basis for any
assertion against Radium of any material liabilities or obligations of any
nature, whether absolute, accrued, contingent or otherwise and whether due or to
become due, including, without limitation, any liability for taxes (including
e-commerce sales or other taxes), interest, penalties and other charges payable
with respect thereto. Neither the execution and delivery of this Agreement nor
the consummation of the transactions contemplated hereby will (a) result in
any payment (whether severance pay, unemployment compensation or otherwise)
becoming due from Radium to any person or entity, including without limitation
any employee, contractor, director, officer or affiliate or former employee,
director, officer or affiliate of Radium, (b) increase any benefits
otherwise payable to any person or entity, including without limitation any
employee, director, officer or affiliate or former employee, director, officer
or affiliate of Radium, or (c) result in the acceleration of the time of
payment or vesting of any such benefits.

 

9

 

(t)  No aspect
of Radium’s past or present business, operations or assets is of such a
character as would restrict or otherwise hinder or impair Radium from carrying
on the business of Radium as it is presently being conducted by
Radium.

 

(u)  Radium
currently has no employees, consultants or independent contractors other than
Shane Whittle, and Mr. Whittle is the sole director and executive officer of
Radium. Mr. Whittle is the sole director and executive officer of Radium Sub.
All consulting, employment and other agreements and arrangements between Radium
and its editors or “Scribes” have been validly terminated, and all such
agreements and arrangements previously did comply, and have at all times been in
full compliance, with all U.S. or Canadian employment or other applicable rules
and regulations. The termination of any existing employment with Mr. Whittle, or
termination of the other agreements with prior Radium employees, consultants or
independent contractors will not and did not subject Radium (or ITV after the
Merger) to any U.S. or Canadian workers’ compensation, unemployment compensation
and other government-mandated program or obligation or liability. No amounts are
due or owed to any previous or current Radium employee, consultant or
independent contractor. There are no oral or written employment agreements,
consulting agreements or other compensation agreements currently in effect
between Radium and any person. 

 

(v)  Radium
has no material contracts, commitments, arrangements, or understandings relating
to its business, operations, financial condition, prospects or otherwise. For
purposes of this Section 5, “material” means payment or performance of a
contract, commitment, arrangement or understanding, which is expected to involve
payments, individually or in the aggregate, in excess of $500.00.

 

(w)  There are
no outstanding lease commitments that cannot be terminated without penalty upon
thirty (30) days notice, or any purchase commitments, in each case of either
Radium or Radium Sub.

 

(x)  No
representation or warranty by Radium or Radium Sub contained in this Agreement
and no statement contained in any certificate, schedule or other communication
furnished pursuant to or in connection with the provisions hereof contains or
shall contain any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements therein not misleading.
There is no current or prior event or condition of any kind or character
pertaining to Radium that may reasonably be expected to have a material adverse
effect on Radium or its subsidiaries. Except as specifically indicated elsewhere
in this Agreement, all documents delivered by Radium in connection herewith have
been and will be complete originals, or exact copies thereof.

 

(y)  Assuming
all corporate consents and approvals have been obtained and assuming the
appropriate filings and mailings are made by Radium under the Securities Act,
the
Securities Exchange Act of 1934 (the “Exchange Act”), as
amended, with the SEC, and with the Secretary of State of the State of Nevada,
the execution and delivery by Radium of this Agreement and the closing documents
and the consummation by Radium of the transactions contemplated hereby do not
and will not (i) require the consent, approval or action of, or any filing
or notice to, any corporation, firm, person or other entity or any public,
governmental or judicial authority (except for such consents, approvals,
actions, filing or notices the failure of which to make or obtain will not in
the aggregate have a material adverse effect); or (ii) violate any order,
writ, injunction, decree, judgment, ruling, law, rule or regulation of any
federal, state, county, municipal, or foreign court or governmental authority
applicable to Radium, or its business or assets. Radium is not subject to, or a
party to, any mortgage, lien, lease, agreement, contract, instrument, order,
judgment or decree or any other material restriction of any kind or character
which would prevent, hinder or impair the continued operation of the business of
Radium (or to the Knowledge of Radium, the continued operation of the business
of ITV) after the Closing.

 

10

 

(z)  Radium
Common Stock is currently quoted for trading on the OTC Bulletin Board, and
Radium has received no notice that the Radium Common Stock is subject to being
delisted therefrom. Radium and the Founders are not aware of any fact or
condition that would make it unlikely that Radium could qualify to have its
Common Stock eligible to be quoted on the OTC Electronic Bulletin Board
following the Merger.

 

(aa)  Radium is
the registered owner of the URL “einscribe.com” (the “Domain Name”) and the
operator of the website located
at http://www.einscribe.com (the “Website”). Radium developed the contents
(including all text, pictures, graphics and video elements thereof) of the
Website, including all logos, banners, navigation bars, page layout, object
placement and user interface, and the software code with respect to the Website.
The Domain Name and the Website are herein collectively referred to as the
“Business Intellectual Property Rights”. Radium owns all right, title and
interest in and to the Business Intellectual Property Rights free and clear of
all liens, encumbrances or claims. There are no claims pending or, to the
Radium's knowledge, threatened, against Radium asserting the invalidity, misuse
or unenforceability of any of such Business Intellectual Property Rights, and,
to Radium's knowledge, there are no valid grounds for the same. The Business
Intellectual Property Rights do not infringe, violate or conflict with, any
rights of a third party. To Radium's knowledge, the conduct of the Radium's
business has not infringed or conflicted with and does not infringe or conflict
with any intellectual property rights of others. To Radium's knowledge, the
Business Intellectual Property Rights owned by or licensed to the Radium have
not been infringed or conflicted by others.

 

6.  Closing. The
Closing of the transactions contemplated herein shall take place on such date
(the “Closing”) as mutually determined by the parties hereto when all conditions
precedent have been met and all required documents have been delivered, which
Closing shall occur on or before June 3, 2005. The “Effective Date” of the
Merger shall be that date and time specified in the Articles of Merger as the
date on which the Merger shall become effective.

 

7.  Actions
Prior to Closing. 

 

(a)  Prior to
the Closing, ITV on the one hand, and Radium and Radium Sub on the other hand,
shall be entitled to make such investigations of the assets, properties,
business and operations of the other party, and to examine the books, records,
tax returns, financial statements and other materials of the other party as such
investigating party deems necessary in connection with this Agreement and the
transactions contemplated hereby. Any such investigation and examination shall
be conducted at reasonable times and under reasonable circumstances, and the
parties hereto shall cooperate fully therein. Until the Closing, and if the
Closing shall not occur, thereafter, each party shall keep confidential and
shall not use in any manner inconsistent with the transactions contemplated by
this Agreement, and shall not disclose, nor use for their own benefit, any
information or documents obtained from the other party concerning the assets,
properties, business and operations of such party, unless such information
(i) is readily ascertainable from public or published information,
(ii) is received from a third party not under any obligation to keep such
information confidential, or (iii) is required to be disclosed by any law
or order (in which case the disclosing party shall promptly provide notice
thereof to the other party in order to enable the other party to seek a
protective order or to otherwise prevent such disclosure). If this transaction
is not consummated for any reason, each party shall return to the other all such
confidential information, including notes and compilations thereof, promptly
after the date of such termination. The representations and warranties contained
in this Agreement shall not be affected or deemed waived by reason of the fact
that either party hereto discovered or should have discovered any representation
or warranty is or might be inaccurate in any respect.

 

11

 

(b)  Prior to
the Closing, ITV, Radium, Radium Sub, and the Founders agree not to issue any
statement or communications to the public or the press regarding the
transactions contemplated by this Agreement without the prior written consent of
the other parties. In the
event that Radium is required under federal securities law to either
(i) file any document with the SEC that discloses this Agreement or the
transactions contemplated hereby, or (ii) to make a public announcement
regarding this Agreement or the transactions contemplated hereby, Radium shall
provide ITV with a copy of the proposed disclosure no less than forty-eight (48)
hours before such disclosure is made and shall incorporate into such disclosure
any reasonable comments or changes that ITV may request.

 

(c)  Except as
contemplated by this Agreement, there shall be no stock dividend, stock split,
recapitalization, or exchange of shares with respect to or rights issued in
respect of Radium’s Common Stock after the date hereof and there shall be no
dividends or other distributions paid on Radium’s Common Stock after the date
hereof, in each case through and including the Effective Date. Radium and Radium
Sub shall conduct no business, prior to the Closing, other than in the ordinary
course of business or as may be necessary in order to consummate the
transactions contemplated hereby.

 

(d)  Prior to
the Closing, 750,000 shares of the currently issued and outstanding shares of
Radium Common Stock currently owned by the Founders shall be cancelled. In order
to effect the foregoing cancellation, each of the Founders hereby agrees to
return 375,000 of his shares of Radium Common Stock to Radium immediately prior
to the Closing, and hereby agrees that Radium may cancel those shares. The
Founders agree that they shall not be compensated by Radium or any other person
for the return and cancellation of the foregoing 750,000 shares.

 

12

 

(e)  Radium
shall timely file a Current Report on Form 8-K in connection with the execution
of this Agreement.

 

8.  Conditions
Precedent to the Obligations of ITV. All
obligations of ITV under this Agreement are subject to the fulfillment, prior to
or as of the Closing and/or the Effective Date, as indicated below, of each of
the following conditions:

 

(a)  The
representations and warranties by or on behalf of Radium, Radium Sub and the
Founders contained in this Agreement or in any certificate or document delivered
pursuant to the provisions hereof or in connection herewith shall be true at and
as of the Closing and Effective Date as though such representations and
warranties were made at and as of such time.

 

(b)  Radium
and Radium Sub shall have performed and complied with all covenants, agreements,
and conditions set forth or otherwise contemplated in, and shall have executed
and delivered all documents required by, this Agreement to be performed or
complied with or executed and delivered by them prior to or at the
Closing.

 

(c)  On or
before the Closing, the directors of Radium and Radium Sub, and Radium as sole
stockholder of Radium Sub, shall have approved in accordance with applicable
state corporation law the execution and delivery of this Agreement and the
consummation of the transactions contemplated herein.

 

(d)  On or
before the Closing Date, Radium and Radium Sub shall have delivered certified
copies of resolutions of the sole stockholder and director of Radium Sub and of
the directors of Radium approving and authorizing the execution, delivery and
performance of this Agreement and authorizing all of the necessary and proper
action to enable Radium and Radium Sub to comply with the terms of this
Agreement, including the election of ITV’s nominees to the Board of Directors of
Radium and all matters outlined or contemplated herein.

 

(e)  The
Merger shall be permitted by applicable state law and otherwise and Radium shall
have sufficient shares of its capital stock authorized to complete the Merger
and the transactions contemplated hereby.

 

(f)  At
Closing, all of the directors and officers of Radium shall have resigned in
writing from their positions as directors and officers of Radium effective upon
the election and appointment of the ITV nominees, and the directors of Radium
shall take such action as may be necessary or desirable regarding such election
and appointment of ITV nominees.

 

(g)  At the
Closing, all instruments and documents delivered by Radium or Radium Sub,
including to ITV Stockholders pursuant to the provisions hereof shall be
reasonably satisfactory to legal counsel for ITV.

 

(h)  The
capitalization of Radium and Radium Sub shall be the same as described in
Section 5(h).

 

(i)  The
shares of restricted Radium capital stock to be issued to ITV Stockholders at
Closing will be validly issued, nonassessable and fully paid under Nevada
corporation law and will be issued in a nonpublic offering in compliance with
all federal, state and applicable securities laws.

 

13

 

(j)  ITV shall
have received the advice of its tax advisor, to the extent it deems necessary,
that this transaction is a tax free reorganization as to ITV and all of the ITV
Stockholders.

 

(k)  ITV shall
have received all necessary and required approvals and consents from required
parties and from its stockholders.

 

(l)  At the
Closing, Radium and Radium Sub shall have delivered to ITV an opinion of
Radium’s legal counsel dated as of the Closing to the effect that:

 

(1)  Each of
Radium and Radium Sub is a corporation duly organized, validly existing and in
good standing under the laws of Nevada;

 

(2)  This
Agreement has been duly authorized, executed and delivered by Radium and Radium
Sub and is a valid and binding obligation of Radium and Radium Sub enforceable
in accordance with its terms;

 

(3)  The
Boards of Directors of each of Radium and Radium Sub have taken all corporate
action necessary for performance under this Agreement;

 

(4)  The
documents executed and delivered to ITV and ITV Stockholders hereunder are valid
and binding in accordance with their terms and vest in ITV Stockholders all
right, title and interest in and to the shares of Radium’s Common Stock to be
issued pursuant to Section 2 hereof, and the shares of Radium capital stock
when issued will be duly and validly issued, fully paid and nonassessable;

 

(5)  Radium
and Radium Sub each has the corporate power to execute, deliver and perform
under this Agreement; and 

 

(6)  Legal
counsel for Radium and Radium Sub is not aware of any liabilities, claims or
lawsuits involving Radium or Radium Sub.

 

(m)  Radium
shall have complied with the provisions of Rule 14f-1 of the Exchange Act, if
necessary, and have mailed to all of its stockholders the notice required by
that rule, which notice shall be mailed no less than three business days after
the execution of this Agreement.

 

(n)  Each
officer and director of Radium and Radium Sub shall have signed an
Indemnification Waiver letter, the form of which is attached hereto as Exhibit
“C”.

 

(o)  Each of
the Founders has signed a Stock Cancellation Agreement in the form attached
hereto as Exhibit “D,” and 750,000 shares of Radium Common Stock have been
returned to Radium’s transfer agent for cancellation.

 

14

 

(p)  The Form
10-KSB of Radium for its fiscal year ended April 30, 2005 shall have been filed
with the SEC.

 

(q)  ITV shall
have completed its due diligence review and investigation of the Form 10-KSB of
Radium for the fiscal year ended April 30, 2005, including the financial
statements contained therein, and such review and investigation shall be
satisfactory to ITV in its sole discretion.

 

9.  Conditions
Precedent to the Obligations of Radium and Radium Sub. All
obligations of Radium and Radium Sub under this Agreement are subject to the
fulfillment, prior to or at the Closing and/or the Effective Date, of each of
the following conditions:

 

(a)  The
representations and warranties by ITV contained in this Agreement or in any
certificate or document delivered pursuant to the provisions hereof shall be
true at and as of the Closing and the Effective Date as though such
representations and warranties were made at and as of such times.

 

(b)  ITV shall
have performed and complied with, in all material respects, all covenants,
agreements, and conditions required by this Agreement to be performed or
complied with by it prior to or at the Closing;

 

(c)  ITV shall
cause each holder of the ITV Common Stock outstanding at the Effective Date to
deliver to Radium, at or as soon as practicable after Closing, a letter commonly
known as an “Investment Letter,” in substantially the form attached hereto as
Exhibit “B”, which letter acknowledges that the shares of Radium Common
Stock issued in the Merger are being acquired by said stockholders for
investment purposes.

 

(d)  ITV shall
deliver an opinion of its legal counsel to the effect that:

 

(1)  ITV is a
corporation duly incorporated, validly existing and in good standing under the
laws of the state of its incorporation;

 

(2)  This
Agreement has been duly authorized, executed and delivered by ITV;

 

(3)  The Board
of Directors and stockholders of ITV have taken all corporate action necessary
for performance under this Agreement;

 

(4)  ITV has
the corporate power to execute, deliver and perform under this Agreement;
and

 

(5)  Legal
counsel for ITV is not aware of any liabilities, claims or lawsuits involving
ITV.

 

10.  Survival
and Indemnification. All
representations, warranties, covenants and agreements contained in this
Agreement, or in any schedule, certificate, document or statement delivered
pursuant hereto, shall survive (and not be affected in any respect by) the
Closing, any investigation
conducted by any party hereto and any information which any party may receive.
Notwithstanding the foregoing, the representations and warranties contained in
or made pursuant to this Agreement shall terminate on, and no claim or action
with respect thereto may be brought after, the third anniversary of the
Effective Date, except that the representations and warranties contained in
Section 5(g) of this Agreement shall survive indefinitely. The
representations and warranties which terminate on the third anniversary of the
Effective Date, and the liability of any party with respect thereto pursuant to
this Section 10, shall not terminate with respect to any claim, whether or
not fixed as to liability or liquidated as to amount, with respect to which the
appropriate party has been given written notice setting forth the facts upon
which the claim for indemnification is based prior to the third anniversary of
the Effective Date, as the case may be.

 

15

 

(a)  The
parties shall indemnify each other as set forth below:

 

(1)  From and
after the Closing and for a period of eighteen months following the Closing
Date, subject to the provisions of this Section 10, each of the Founders,
Radium and Radium Sub (individually and collectively, the “Radium Group”) shall
jointly and severally indemnify and hold harmless ITV and ITV’s past, present
and future officers, directors, stockholders, employees, attorneys, and agents
(and after the Closing, the Founders shall also indemnify Radium) (collectively,
the “ITV Indemnified Parties”) from and against any Losses (as defined below)
including, without limitation, any reasonable legal expenses to the extent
arising from, relating to or otherwise in respect of (i) any inaccuracy or
breach of any representation or warranty of the Radium Group contained in
Sections 5 or 13 of this Agreement (as of the date hereof, or as of the
Closing Date and Effective Date) or of any representation, warranty or statement
made in any schedule, certificate document or instrument delivered by the Radium
Group or any officer or any of them at or in connection with the Closing, in
each case without giving effect to any materiality qualification (including
qualifications indicating accuracy in all material respects), or (ii) the
breach by the Radium Group, of or failure by the Radium Group to perform any of
its covenants or agreements contained in this Agreement; provided, however, that
(A) no member of the Radium Group shall be responsible for any Losses with
respect to the matters referred to in clauses (i) or (ii) of this
Section 10(a), until the cumulative aggregate amount of all such Losses
exceeds $500.00, in which event the Radium Group shall then be liable for all
such cumulative aggregate Losses, including the first $500.00. Each member of
the Radium Group specifically acknowledges and agrees that any ITV Indemnified
Party may proceed against any member of the Radium Group under this
Section 10 without contemporaneously, or at any time, proceeding against
any other member of the Radium Group. As used herein, “Losses” shall mean any
and all demands, claims, complaints, actions or causes of action, suits,
proceedings, investigations, arbitrations, assessments, losses, damages,
payments, liabilities or obligations (including those arising out of any action,
such as any settlement or compromise thereof or judgment or award therein) and
any fees, costs and expenses related thereto (net of any directly related
insurance payments or recoveries received or to be received from third party
insurers), and the term “legal expenses” shall mean the fees, costs and expenses
of any kind incurred by any party indemnified herein and its counsel in
investigating, preparing for, defending against or providing evidence, producing
documents or taking other action with respect to any threatened or asserted
claim. 

 

(2)  From and
after the Closing and for a period of eighteen months following the Closing
Date, subject to the provisions of this Section 10, ITV shall indemnify and
hold harmless each member of the Radium Group (collectively, the “Radium Group
Indemnified Parties”) from and against any Losses (including, without
limitation, any reasonable legal expenses) to the extent arising from, relating
to or otherwise in respect of (i) the inaccuracy or breach of any
representation or warranty of ITV contained in Sections 4 or 13 of this
Agreement (as of the date hereof, or as of the Closing Date and Effective Date)
or of any representation, warranty or statement made in any schedule,
certificate document or instrument delivered by ITV or an officer of ITV at or
in connection with the Closing, in each case without giving effect to any
materiality qualification (including qualifications indicating accuracy in all
material respects), or (ii) the breach by ITV of or failure by ITV to
perform any of its covenants or agreements contained in this Agreement;
provided, however, that ITV shall not be responsible for any Losses with respect
to the matters until the cumulative aggregate amount of such Losses exceeds
$500.00, in which event ITV shall then be liable for all such cumulative
aggregate Losses, including the first $500.00.

 

16

 

(3)  In order
for an ITV Indemnified Party or Radium Group Indemnified Party (an “Indemnified
Party”) to be entitled to any indemnification provided for under this Agreement,
the Indemnified Party shall deliver notice of its claim for indemnification with
reasonable promptness after determining to make such claim, to the Radium Group
or any member thereof (in the case of any indemnification claim under
Section 10(a)(1)) or ITV (in the case of any indemnification claim under
Section 10(a)(2)). The failure by any Indemnified Party to notify the
Radium Group (or any member thereof) or ITV, as the case may be, shall not
relieve any relevant indemnifying party (each relevant member of the Radium
Group, or ITV, as the case may be, being referred to herein as an “Indemnifying
Party”) from any liability which he or it may have to such Indemnified Party
under this Agreement, except to the extent that such claim for indemnification
involves the claim of a third party against the Indemnified Party and the
Indemnifying Party shall have been actually prejudiced by such failure. If an
Indemnifying Party does not notify the Indemnified Party within 30 calendar days
following receipt by it of such notice that such Indemnifying Party disputes its
liability to the Indemnified Party under this Agreement, such claim specified by
the Indemnified Party in such notice shall be conclusively deemed a liability of
such Indemnifying Party under this Agreement and such Indemnifying Party shall
pay the amount of such liability to the Indemnified Party on demand or, in the
case of any notice in which the amount of the claim (or any portion thereof) is
estimated, on such later date when the amount of such claim (or such portion
thereof) becomes finally determined. If an Indemnifying Party has timely
disputed its liability with respect to such claim, as provided above, such
Indemnifying Party and the Indemnified Party shall proceed in good faith to
negotiate a resolution of such dispute and, if not resolved through
negotiations, such dispute shall be resolved by litigation in accordance with
the terms of this Agreement.

 

(4)  (i)If the
claim involves a third party claim (a “Third Party Claim”), then the
Indemnifying Party shall have the right, at its sole cost, expense and ultimate
liability regardless of the outcome, and through counsel of its choice (which
counsel shall be reasonably satisfactory to the Indemnified Party), to litigate,
defend, settle or otherwise attempt to resolve such Third Party Claim; provided,
however, that if in the Indemnified Party’s reasonable judgment a conflict of
interest may exist between the Indemnified Party and the Indemnifying Party with
respect to such Third Party Claim, then the Indemnified Party shall be entitled
to select counsel of its own choosing, reasonably satisfactory to the
Indemnifying Party, in which event the Indemnifying Party shall be obligated to
pay the fees and expenses of such counsel.

 

17

 

(ii) Notwithstanding
the preceding paragraph, if in the Indemnified Party’s reasonable judgment no
such conflict exists, the Indemnified Party may, but will not be obligated to,
participate at its own expense in a defense of such Third Party Claim by counsel
of its own choosing, but the Indemnifying Party shall be entitled to control the
defense unless (A) in the case where only money damages are sought, the
Indemnified Party has relieved the Indemnifying Party from liability with
respect to the particular matter or (B) in the case where equitable relief
is sought, the Indemnified Party elects to participate in and jointly control
the defense thereof.

 

(iii) Whenever
the Indemnifying Party controls the defense of a Third Party Claim, the
Indemnifying Party may only settle or compromise the matter subject to
indemnification without the consent of the Indemnified Party if such settlement
includes a complete release of all Indemnified Parties as to the matters in
dispute and relates solely to money damages. The Indemnified Party will not
unreasonably withhold consent to any settlement or compromise that requires its
consent.

 

(iv) In the
event the Indemnifying Party fails to timely defend, contest, or otherwise
protect the Indemnified Party against any such claim or suit, the Indemnified
Party may, but will not be obligated to, defend, contest, or otherwise protect
against the same, and make any compromise or settlement thereof, and in such
event, or in the case where the Indemnified Party jointly controls such claim or
suit, the Indemnified Party shall be entitled to recover its costs thereof from
the Indemnifying Party, including attorneys’ fees, disbursements and all amounts
paid as a result of such claim or suit or the compromise or settlement
thereof.

 

(v) The
Indemnified Party shall cooperate and provide such assistance as the
Indemnifying Party may reasonably request in connection with the defense of the
matter subject to indemnification and in connection with recovering from any
third parties amounts that the Indemnifying Party may pay or be required to pay
by way of indemnification hereunder.

 

(b)  The
amount of Losses for which indemnification is provided hereunder shall be
computed without regard to any insurance recovery related to such
losses.

 

11.  Nature
of Representations. All of
the parties hereto are executing and carrying out the provisions of this
Agreement in reliance solely on the representations, warranties and covenants
and agreements contained in this Agreement and the other documents delivered at
the Closing and not upon any representation, warranty,
agreement, promise or information, written or oral, made by the other party or
any other person other than as specifically set forth herein.

 

12.  Documents
at Closing. At the
Closing, the following documents shall be delivered:

 

(a)  ITV will
deliver, or will cause to be delivered, to Radium the following:

 

(1)   a
certificate executed by the President of ITV to the effect that all
representations and warranties made by ITV under this Agreement are true and
correct as of the Closing and as of the Effective Date, the same as though
originally given to Radium or Radium Sub on said date;

 

18

 

(2)  a
certificate from the state of ITV’s incorporation dated within five business
days of the Closing to the effect that ITV is in good standing under the laws of
said state;

 

(3)  Investment
Letters in the form attached hereto as Exhibit “B” executed by each ITV
Common Stockholder;

 

(4)  such
other instruments, documents and certificates, if any, as are required to be
delivered pursuant to the provisions of this Agreement;

 

(5)  executed
copy of the Articles of Merger for filing in Nevada;

 

(6)  certified
copies of resolutions adopted by the stockholders and directors of ITV
authorizing the Merger; 

 

(7)  all other
items, the delivery of which is a condition precedent to the obligations of
Radium and Radium Sub, as set forth herein; and

 

(8)  the legal
opinion required by Section 9(e) hereof.

 

(b)  Radium
and Radium Sub will deliver or cause to be delivered to ITV:

 

(1)  stock
certificates representing those securities of Radium to be issued as a part of
the Merger as described in Section 2 hereof;

 

(2)  a
certificate of the President of Radium and Radium Sub, respectively, to the
effect that all representations and warranties of Radium and Radium Sub made
under this Agreement are true and correct as of the Closing, the same as though
originally given to ITV on said date;

 

(3)  certified
copies of resolutions adopted by Radium’s and Radium Sub’s Board of Directors
and Radium Sub’s stockholder authorizing the Merger and all related
matters;

 

(4)  certificates
from the jurisdiction of incorporation of Radium and Radium Sub dated within
five business days of the Closing Date that each of said corporations is in good
standing under the laws of said state; 

 

(5)  executed
copy of the Articles of Merger for filing in Nevada;

 

(6)  opinion
of Radium’s counsel as described in Section 8(l) above;

 

(7)  such
other instruments and documents as are required to be delivered pursuant to the
provisions of this Agreement;

 

19

 

(8)  written
resignation of all of the officers and directors of Radium and Radium
Sub;

 

(9)  Stock
Cancellation Agreement, signed by each of the Founders; 

 

(10)  Indemnification
Waiver letter signed by the Founders; and

 

(11)  all other
items, the delivery of which is a condition precedent to the obligations of ITV,
as set forth in Section 8 hereof.

 

13.  Financial
Advisory or Finder’s Fees. The
Founders, Radium and Radium Sub, jointly and severally, represent and warrant to
ITV, and ITV represents and warrants to each of the Founders, Radium and Radium
Sub, that except as set forth below, none of them, or any party acting on their
behalf, has incurred any liabilities, either express or implied, to any
financial advisor, broker or finder or similar person in connection with this
Agreement or any of the transactions contemplated hereby. Radium
shall issue 50,000 shares of Radium Common Stock to Danilo Cacciamatta in
consideration for Mr. Cacciamatta’s financial advisory services rendered to
Radium in connection with negotiating and structuring the Merger, which shares
shall be issued immediately after the Closing.

 

14.  Post-Closing
Covenants.

 

(a)  Financial
Statements. After
the Closing, Radium shall timely file a current report on Form 8-K to
report the Merger. In addition, for a period of twelve (12) months following the
Closing, Radium shall use its commercially reasonable efforts to timely file all
reports and other documents required to be filed by Radium under the Securities
Exchange Act of 1934.

 

(b)  Confidentiality. The
Founders hereby agrees that, after the Closing, they shall not publicly disclose
any confidential information of either Radium, Radium Sub or ITV, and that they
shall not make any public statement or announcement regarding the Merger or the
business, financial condition, prospects or operations of Radium or ITV, without
the prior written consent of ITV.

 

15.  Miscellaneous.

 

(a)  Further
Assurances. At any
time, and from time to time, after the Effective Date, each party will execute
such additional instruments and take such action as may be reasonably requested
by the other party to confirm or perfect title to any property transferred
hereunder or otherwise to carry out the intent and purposes of this
Agreement.

 

(b)  Waiver. Any
failure on the part of any party hereto to comply with any of its obligations,
agreements or conditions hereunder may be waived in writing by the party (in its
sole discretion) to whom such compliance is owed.

 

(c)  Termination. This
Agreement and all obligations hereunder (other than those under
Section 15(l)) may be terminated (i) after June 10, 2005 at the
discretion of either party if the Closing has not occurred by June 10, 2005
(unless the Closing date is extended with the consent of both ITV and Radium)
for any reason other than the default hereunder by the terminating party, or
(ii) at any time by the non-breaching party if any of the representations
and warranties made herein by the other party have been materially
breached.

 

20

 

(d)  Amendment. This
Agreement may be amended only in writing as agreed to by all parties
hereto.

 

(e)  Notices. All
notices and other communications hereunder shall be in writing and shall be
deemed to have been given if delivered in person or sent by prepaid first class
registered or certified mail, return receipt requested to the last known address
of the noticed party.

 

(f)  Headings. The
section and subsection headings in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

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

 

(h)  Binding
Effect. This
Agreement shall be binding upon the parties hereto and inure to the benefit of
the parties, their respective heirs, administrators, executors, successors and
assigns.

 

(i)  Entire
Agreement. This
Agreement, and the attached Exhibits, is the entire agreement of the parties
covering everything agreed upon or understood in the transaction. There are no
oral promises, conditions, representations, understandings, interpretations or
terms of any kind as conditions or inducements to the execution hereof.

 

(j)  Time. Time is
of the essence.

 

(k)  Severability. If any
part of this Agreement is deemed to be unenforceable, the balance of the
Agreement shall remain in full force and effect.

 

(l)  Responsibility
and Costs. Whether
the Merger is consummated or not, all fees, expenses and out-of-pocket costs,
including, without limitation, fees and disbursements of counsel, financial
advisors and accountants, incurred by the parties hereto shall be borne solely
and entirely by the party that has incurred such costs and expenses, unless the
failure to consummate the Merger constitutes a breach of the terms hereof, in
which event the breaching party shall be responsible for all costs of all
parties hereto. The indemnification provisions of Section 10 shall not
apply in the event of the termination of this Agreement prior to the Closing as
a result of a breach hereof by either party.

 

(m)  Inapplicability
of Indemnification Provisions. The
provisions contained in Radium’s Articles of Incorporation and/or bylaws for
indemnifying officers and directors of that company shall not apply to the
representations and warranties made herein by the Founders or the other officers
of Radium.

 

21

 

(n)  Applicable
Law. This
Agreement shall be construed and governed by the internal laws of the State of
Nevada.

 

(o)  Jurisdiction
and Venue. Each
party hereto irrevocably consents to the jurisdiction and venue of the state or
federal courts located in Los Angeles County, State of California, in connection
with any action, suit, proceeding or claim to enforce the provisions of this
Agreement, to recover damages for breach of or default under this Agreement, or
otherwise arising under or by reason of this Agreement.

 

22

IN
WITNESS WHEREOF, the parties have executed this Agreement the day and year first
above written.

 

	
      RADIUM
      VENTURES INC.

       

      By:
      _________________________

      Shane
      Whittle,

      President
	
      RADIUM
      ACQUISTION VENTURES INC.

       

      By:
      _________________________

      Shane
      Whittle

      President

	
       

       

      THE
      FOUNDERS

       

      By:
      _________________________

      Shane
      Whittle

       

      By:
      _________________________

      James
      Scott-Moncrieff
	
       

       

      INTERACTIVE
      TELEVISION NETWORKS, INC.

       

      By:
      _________________________

      Michael
      Martinez, President

 

23

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