Document:

Warrant Agreement

THIS
CONVERTIBLE PROMISSORY NOTE, INCLUDING ANY SECURITIES THAT MAY BE ACQUIRED
PURSUANT TO THIS CONVERTIBLE PROMISSORY NOTE, IS SUBJECT TO A HOLDING PERIOD. IN
ADDITION, ANY SECURITIES ACQUIRED PURUSANT TO THIS CONVERTIBLE PROMISSORY NOTE
MAY NOT BE TRADED IN BRITISH COLUMBIA, CANADA, EXCEPT AS OTHERWISE MAY BE
PERMITTED BY THE SECURITIES ACT OF BRITISH COLUMBIA. THE SECURITIES THAT MAY BE
ACQUIRED PURSUANT TO THIS PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE
SECURITIES LAWS OF ANY OTHER STATE OR JURISDICTION.  THIS CONVERTIBLE
PROMISSORY NOTE AND SUCH OTHER SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A REGISTRATION
STATEMENT AND LISTING APPLICATION IN EFFECT WITH RESPECT TO THIS CONVERTIBLE
PROMISSORY NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER
APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION AND LISTING NOT REQUIRED PURSUANT TO A VALID EXEMPTION
THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LAW OF ANY
STATE OR OTHER JURISDICTION.

 

CONVERTIBLE
PROMISSORY NOTE 

FOR
VALUE RECEIVED, the
undersigned, Low Carb Centre, Inc., Low Carb Bakery, Inc., and McNabb and
Associates, Inc., all British Columbia corporations (collectively hereinafter
referred to as the “Company”), hereby unconditionally promises to pay to the
order of ___________________________________, an individual (the “Holder” or
“Noteholder”), the principal sum amount of $______________, (the “Principal”),
along with any interest due and payable as set forth herein in Section 2 and
otherwise described in this Convertible Promissory Note (the “Note”).

This Note
has been entered into pursuant to the terms of an agreement between the Company
and the Holder, dated even date herewith (the “Subscription Agreement”),
incorporated herein by reference. As such, this Note shall be governed by the
terms of said Subscription Agreement. The following terms shall apply to this
Note:

  1.            
General. 
The Company is contemplating a transaction with Global Golf Holdings, Inc., a
Delaware corporation, under which GGLF and
the Company shall enter into an Asset Purchase Agreement (hereinafter referred
to as “APA”, which is attached to the Subscription Agreement as Exhibit E and
incorporated by reference herein) whereunder GGLF shall purchase
and acquire all of
the assets, stock, investments or similar positive interests of value currently
held by the Company, including the Notes described herein (the “Proposed
Transaction”). 

(a) Closing. As used
herein, the words “Close,” “Closing,” “Closes,” and “Closed” shall have the same
meaning and effect as set forth in Section 2.1 of the Subscription Agreement
(which is attached hereto as Exhibit C).

 

(b)
 Execution
of the APA. The
Company and GGLF contemplate executing the APA on or before September 15, 2004
(the actual date the APA is executed shall hereinafter be referred to as the
“Date of Execution”). Upon the execution of the APA, in accordance with the
terms of the Escrow Agreement (attached to the Subscription Agreement as Exhibit
D and incorporated by reference herein), the Escrow Agent shall release to the
Company all Purchase Price related to the purchase of Notes.

(c) Closing
of the Proposed Transaction.
Subsequent to the Date of Execution, the Company shall have 90 calendar days
(the “Closing Period”) from the date thereof to Close the Proposed Transaction
in accordance with the terms of the APA. Should the Proposed Transaction Close,
the Notes shall be converted into post-Proposed Transaction GGLF common shares
in accordance with Section
2 of this
Note and the terms and conditions of the Subscription Agreement.

 

(d) Effect
of Not Closing the Proposed Transaction. If the
Proposed Transaction is not Closed on or before the end of the Closing Period,
the Notes shall be converted into common shares of the Company in accordance
with Section
3 of this
Note and the terms
and conditions of the Subscription Agreement, unless
otherwise cancelled in accordance with Section 1(e), below. 

(e)
  Election
to Satisfy Note. The
Company shall retain the right to remit the full Purchase Price and any interest
accrued thereon to each Noteholder in full satisfaction of any obligation due
and owing under the Note to the Noteholder. The Company shall inform each
Noteholder of its election to remit payment of the Note and shall have ten (10)
days from the date the Note becomes due to remit such payment to each
Noteholder. 

 

2.            Post
Transaction Shares.
 Should
the Company and GGLF Close the Proposed Transaction prior to the expiration of
the Closing Period, each Note
shall be convertible as follows: 

(a)
 Note
Conversion. On the
ninetieth day following the Date of Execution (hereinafter referred to as the
“Closing Date”), if and only if the Proposed Transaction Closes during the
Closing Period, the post Proposed Transaction Company shall convert the
Principal tendered hereunder, along with any and all payable interest, into
common shares of GGLF's $0.001 par value stock in accordance with the following
terms: (i) the Holder’s principal shall be converted into common shares (“Common
Shares”) of GGLF at a rate of $0.125 per Common Share; and (ii) the Holder shall
further receive a 25% Warrant entitling said Holder to purchase additional
Common Shares of GGLF at $0.15 per share as set forth in Section 3(d) below.
(The total number of GGLF Common Shares, including the 25% Warrant, received by
the Holder subsequent to the Closing shall hereinafter be referred to as “Post
Transaction Shares.”) 

(b)
 Interest. 
Interest on the outstanding portion of Principal of this Note shall accrue
(“Accrued Interest”) at a rate of twelve percent (12%) per annum (the “Interest
Conversion Rate”) beginning upon the Date of Execution.  All computations
of interest shall be made on the basis of a 365-day year for actual days
elapsed.  Such interest shall be paid in full as of the Maturity Date of
this Note.

(c)
 Interest
Conversion. 
The Company, on the Closing Date, shall cause the Accrued Interest to be added
to the Principal prior to conversion of the Principal into Common Shares of the
Company as provided in Section
2(e) of this
Note. 

(d)
  Warrant. Should
the Proposed Transaction Close during the Closing Period, the Holder shall
receive a warrant (substantially in the form attached hereto as Exhibit A (the
“Warrant”)) to purchase a number of post-Proposed Transaction GGLF common shares
equal to twenty-five percent (25%) of the number of common shares issued upon
conversion of the Note (see Section 2(e) below) on the Closing Date. The Holder
shall have the right to purchase said additional shares as existing by and under
the terms of the Warrant at an exercise price of fifteen ($0.15) cents per
share.

(e) Note
Conversion Rate; Conversion Price. 
The number of shares of Common Stock to which Holder shall be entitled, upon
such conversion, shall be equal to the product of dividing the Principal amount,
plus the Accrued Interest, outstanding under this Note on the Closing Date
(hereinafter referred to as “x”) by 0.125 (“Note Conversion Rate” or
“y”). 

  

(f)  Mechanics
of Conversion. 
Upon the occurrence of the event specified in Section
4 herein,
this Note shall be converted into Common Shares automatically and without any
further action by Holder on the Closing Date; provided, however, that the
Company shall not be obligated to issue a certificate or certificates evidencing
the shares of Common Stock issuable upon such conversion of this Note
(“Conversion Shares”) unless the original of this Note is delivered to the
Company, or Holder notifies the Company in writing that such original of this
Note has been lost, stolen or destroyed, and Holder executes an agreement
satisfactory to the Company to, among other things, indemnify the Company from
any loss incurred by the Company in connection with such original of this
Note.  Upon surrender by Holder to the Company of the original of this Note
at the office of the Company, there shall be issued and delivered to Holder
promptly at such office and in Holder’s name as shown on the original of this
Note, a certificate or certificates for the applicable number of Conversion
Shares on the date on which such automatic conversion is deemed to have
occurred.

 

(g)  Conversion
Calculations: No Fractional Shares.
Conversion calculations pursuant to this Section
2 shall be
rounded to the nearest whole share of Common Stock, and the Company upon
conversion of this Note shall issue no fractional shares. Conversion
of this Note shall be deemed payment in full of this Note and this Note shall
thereupon be cancelled.

3.
 Alternate
Conversion Method of this Note.
Should
the Company and GGLF not Close
the Proposed Transaction prior to the expiration of the Closing Period,
each Note
shall be converted into common shares of the Company (“Failed Transaction
Shares”) in the following manner: 

(a)
 Note
Conversion. As set
forth in the Subscription Agreement, if on the Closing Date the Company has not
Closed the Proposed Transaction, the Principal of this Note, along with the
Accrued Interest, shall be converted into shares of the Company or Failed
Transaction Shares. 

(b)
 Alternate
Note Conversion Rate. The
alternate conversion method shall be determined by converting all of the Notes
including any and all interest payable on the Notes, into a number of Failed
Transaction Shares that would equal 90% of the post-Closing Date issued and
outstanding Company Shares. These Failed Transaction Shares shall be distributed
on a pro-rata basis to each Holder based on a Holder’s percentage ownership of
the total gross amount of Notes issued.

(i)
 Example: If (A)
prior to the issuance of any Notes there was 100 common shares of Company common
stock issued and outstanding; and (B) the Proposed Transaction did not Close by
the Maturity Date; and (C) 900 common shares would equate to 90% of the then
issued and outstanding (post-issuance) Company common shares; and (D) USD
$400,000 was the total amount received by the Company from the purchase of the
Notes; and (E) the Noteholder in this example purchased $100,000 in Notes (or
25% of all of the Notes issued), then the Noteholder in this example would
convert the entire Note and any and all interest due and payable into 25% of the
900 common shares or 225 common shares. In this case, that Noteholder would own
22.5% of the Company’s common shares. 

4.
 Miscellaneous.

(a)
 Merger,
Sale of Assets, etc. If the
Company at any time shall consolidate with or merge into or sell or convey all
or substantially all its assets to any other corporation, this Note, as to the
unpaid principal portion thereof and accrued interest thereon, shall thereafter
be deemed to evidence the right to purchase such number and kind of shares or
other securities and property as would have been issuable or distributable on
account of such consolidation, merger, sale or conveyance, upon or with respect
to the securities subject to the conversion or purchase right immediately prior
to such consolidation, merger, sale or conveyance. The foregoing provision shall
similarly apply to successive transactions of a similar nature by any such
successor or purchaser. Without limiting the generality of the foregoing, the
anti-dilution provisions of this Section shall apply to such securities of such
successor or purchaser after any such consolidation, merger, sale or
conveyance.

(b)
 Reclassification,
etc. If the
Company at any time shall, by reclassification or otherwise, change the Common
Stock into the same or a different number of securities of any class or classes,
this Note, as to the unpaid principal portion thereof and accrued interest
thereon, shall thereafter be deemed to evidence the right to purchase an
adjusted number of such securities and kind of securities as would have been
issuable as the result of such change with respect to the Common Stock
immediately prior to such reclassification or other change.

(c)
 Stock
Splits, Combinations and Dividends. If the
shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the Common Stock
in shares of Common Stock, the Conversion Price shall be proportionately reduced
in case of subdivision of shares or stock dividend or proportionately increased
in the case of combination of shares, in each such case by the ratio which the
total number of shares of Common Stock outstanding immediately after such event
bears to the total number of shares of Common Stock outstanding immediately
prior to such event.

(d)
 During
the period the conversion right exists, the Company will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of Common Stock upon the full conversion of this Note. The
Company represents that upon issuance, such shares will be duly and validly
issued, fully paid and non-assessable. The Company agrees that its issuance of
this Note shall constitute full authority to its officers, agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary certificates for shares of Common Stock upon
the conversion of this Note.

5.           Subordination. 
The indebtedness evidenced hereby is subordinate in right of payment to all
existing and future bank indebtedness, including lease and equipment finance
obligations.  The indebtedness represented hereby is senior in right of
payment to all classes and series of the Company’s capital stock.  The
indebtedness represented hereby is pari passu with any and all convertible debt
securities issued by the Company.

 

6.           Redemption. 
This Note may be redeemed by the Company by payment of the entire Principal and
Accrued Interest outstanding under this Note. The Company must provide notice to
Holder not less than thirty (30) days prior to effecting such redemption. 
During the period from providing of such notice to Holder and the Company
effecting the redemption, the Company may cancel such redemption by providing
notice of such cancellation to Holder. Any redemption in the case of the
Proposed Transaction Closing, shall not effect or limit the Noteholder’s
respective rights to the Warrants discussed herein.

 

7.         Representations
and Warranties of the Company. The
Company represents and warrants to Holder as follows:

 

(a)          
The execution and delivery by the Company of this Note (i) are within the
Company’s corporate power and authority, and (ii) have been duly authorized by
all necessary corporate action.

 

(b)          
This Note is a legally binding obligation of the Company, enforceable against
the Company in accordance with the terms hereof, except to the extent that (i)
such enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and (ii) the availability of the remedy of specific
performance or in injunctive or other equitable relief is subject to the
discretion of the court before which any proceeding therefore may be
brought.

 

8.
 Representations,
Warranties and Covenants of Holder.
Investor represents and warrants to Company as of the date hereof as
follows:

(a)
 Investment
Intent: Authority. This
Agreement is made with Holder in reliance upon Holder's representation to
Company, evidenced by Holder's execution of this Agreement, that Holder is
acquiring the Notes and the Warrant for investment for Holder's own account, not
as nominee or agent, for investment and not with a view to, or for resale in
connection with, any distribution or public offering thereof within the meaning
of the Securities Act of 1933, as amended, (the "Securities Act"). Holder has
the full right, power, authority and capacity to enter into and perform this
Agreement and the Agreement will constitute a valid and binding obligation upon
Investor, except as the same may be limited by bankruptcy, insolvency,
moratorium, and other laws of general application affecting the enforcement of
creditors' rights.

(b)
 Securities
Not Registered. Holder
understands and acknowledges that the offering of the Securities pursuant to
this Agreement will not be registered under the Securities Act on the grounds
that the offering and sale of securities contemplated by this Agreement are
exempt from registration under the Securities Act, and that Company's reliance
upon such exemptions is predicated upon Holder's representations set forth in
this Agreement. Holder acknowledges and understands that resale of the
Securities may be restricted indefinitely unless the Securities are subsequently
registered under the Securities Act or an exemption from such registration and
such qualification is available. Holder acknowledges that Company is under no
obligation to effect any registration with respect to the Securities or to file
for or comply with any exemption from registration.

(c)
 Lock-Up
And Transfer Restrictions. Holder
covenants that in no event will it sell, transfer or otherwise dispose of any of
the Securities prior to the second anniversary of the Closing Date. After the
second anniversary of the Closing Date, Holder covenants that in no event will
it sell, transfer or otherwise dispose of any of the Securities other than in
conjunction with an effective registration statement for the Securities under
the Securities Act or pursuant to an exemption therefrom, or in compliance with
Rule 144 promulgated under the Securities Act or to a person related to or an
entity affiliated with said Investor and other than in compliance with the
applicable securities regulation laws of any state.

(d)
 Knowledge
And Experience. Holder
(i) has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of Holder's prospective investment in
the Securities; (ii) has the ability to bear the economic risks of Holder's
prospective investment; (iii) has had all questions which have been asked by
Holder satisfactorily answered by Company; and (iv) has not been offered the
Securities by any form of advertisement, article, notice or other communication
published in any newspaper, magazine, or similar media or broadcast over
television or radio, or any seminar or meeting whose attendees have been invited
by any such media. Holder represents and warrants that it is an "accredited
investor" within the meaning of Rule 501 of Regulation D of the Securities
Act.

 

9.
 Use of
Proceeds. 
The proceeds received by the Company under this Note shall be used by the
Company for working capital or other general corporate purposes. Prior to
Closing the Proposed Transaction, not less than $200,000 of Purchase Price
monies raised shall be used to relieve the Company of various debts and
liabilities. Subsequent to the Close of the Proposed Transaction any monies
raised from the sale of GGLF debt or equity shall only be used to for debts
incurred by GGLF only subsequent to the Closing and shall not be used for the
relief, satisfaction or discharge of any pre-Closing LCC liabilities.

10.
 Event
of Default. The
occurrence of any of the following events of default ("Event of Default") shall,
at the option of the Holder hereof, make all sums of principal and interest then
remaining unpaid hereon and all other amounts payable hereunder immediately due
and payable, upon demand, without presentment, or grace period, all of which
hereby are expressly waived, except as set forth below:

(a) Failure
to Pay Principal or Interest. The
Company fails to pay the Principal, Accrued Interest or other sum due under the
terms and conditions of this Note as of the Maturity Date, and such failure
continues for a period of ten (10) days after the Maturity Date. 

(b) Breach
of Covenant. The
Company breaches any material covenant or other term or condition of this Note
in any material respect and such breach, if subject to cure, continues for a
period of ten (10) days after written notice to the Company from the
Holder.

(c) Breach
of Representations and Warranties. Any
material representation or warranty of the Company made herein or in any
agreement, statement or certificate given in writing pursuant hereto or in
connection therewith shall be false or misleading in any material respect as of
the date made and the Maturity Date.

(d) Receiver
or Trustee. The
Company shall make an assignment for the benefit of creditors, or apply for or
consent to the appointment of a receiver or trustee for it or for a substantial
part of its property or business; or such a receiver or trustee shall otherwise
be appointed.

(e) Judgments. Any
money judgment, writ or similar final process shall be entered or filed against
Company or any of its property or other assets for more than $50,000, and shall
remain unvacated, unbonded or unstayed for a period of forty-five (45)
days.

(f) Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings or relief under any bankruptcy law or any law for the relief of
debtors shall be instituted by or against the Company and if instituted against
Company are not dismissed within 45 days of initiation.

(g) Failure
to Deliver Common Stock or Replacement Note.
Company's failure to timely deliver Common Stock to the Holder pursuant to and
in the form required by this Note, or if required a replacement
Note.

11.          
No
Waiver in Certain Circumstances. 
No course of dealing of Holder nor any failure or delay by Holder to exercise
any right, power or privilege under this Note shall operate as a waiver
hereunder and any single or partial exercise of any such right, power or
privilege shall not preclude any later exercise thereof or any exercise of any
other right, power or privilege hereunder.

 

12.          
Certain
Waivers by the Company. 
Except as expressly provided otherwise in this Note, the Company and every
endorser or guarantor, if any, of this Note waive presentment, demand, notice,
protest and all other demands and notices in connection with the delivery,
acceptance, performance, default or enforcement of this Note, and assent to any
extension or postponement of the time of payment or any other indulgence, to any
substitution, exchange or release of collateral available to Holder, if any, and
to the addition or release of any other party or person primarily or secondarily
liable.

 

13.          
No
Unlawful Interest. 
Notwithstanding anything herein to the contrary, payment of any interest or
other amount hereunder shall not be required if such payment would be unlawful.
In any such event, this Note shall automatically be deemed amended so that
interest charges and all other payments required hereunder, individually and in
the aggregate, shall be equal to but not greater than the maximum permitted by
law.

 

14.          No
modification, rescission, waiver, forbearance, release or amendment of any
provision of this Note shall be made, except by a written agreement duly
executed by the Company and Holder. Holder may not assign this Note without
the prior written consent of the Company.  The Company and Holder each
hereby submits to personal jurisdiction in the State of Delaware consents to the
jurisdiction of any competent state or federal district court sitting in the
State of Delaware, and waives any and all rights to raise lack of personal
jurisdiction as a defense in any action, suit or proceeding in connection with
this Note or any related matter.  

 

[SIGNATURE
PAGE FOLLOWS]

IN
WITNESS WHEREOF, the
undersigned have caused this Convertible Promissory Note to be executed and
delivered by a duly authorized officer as of the date first above
written.

LOW
CARB CENTRE, INC.     SUBSCRIBER

_____________________________   _____________________________ 

By:
Tammy-Lynn McNabb    By:

Its:
President        

PURCHASE
PRICE OF SUBSCRIBER NOTE

LOW
CARB CENTRE BAKERY, INC.   $__________________________
(U.S. Dollars). 

_____________________________   ADDRESS
OF SUBSCRIBER 

By:
Tammy-Lynn McNabb       

Its:
President       

MCNABB
AND ASSOCIATES, INC.    _______________________________________         Street
Address

_____________________________   _______________________________________

By:
Tammy-Lynn McNabb    

Its:
President 

_______________________________________

GLOBAL
GOLF HOLDINGS, INC.   City,
State/Province, Country, Postal Code    

READ AND
APPROVED, 

_____________________________

By: Ford
Sinclair

Its:
Chief
Executive Officer

EXHIBIT
A

COMMON
STOCK PURCHASE WARRANT

GLOBAL
GOLF HOLDINGS, INC. 

A
Delaware corporation

THIS
CERTIFIES THAT, upon the closing of an Asset Purchase Agreement by and among Low
Carb Centre, Inc., Low Carb Bakery, Inc. and McNabb and Associates, Inc., and
Global Golf Holdings, Inc. (the “Asset Purchase”) for value received in
anticipation of the Asset Purchase, ___________________ (the “Holder”), as
registered owner of this Common Stock Purchase Warrant (“Warrant”), is entitled
to, at any time at or before the Expiration Date (as defined below), but not
thereafter, to subscribe for, purchase and receive __________ common shares of
the fully paid and nonassessable shares of common stock (the “Common Stock”), of
Global Golf Holdings, Inc., a Delaware corporation (the “Company”), at $.15 per
share (the “Exercise Price”), upon presentation and surrender of this Warrant
and upon payment by cashier’s check or wire transfer of the Exercise Price for
such Common Stock to the Company at the principal office of the Company;
provided, however, that upon the occurrence of any of the events specified in
the Statement of Rights of Warrant Holder, a copy of which is attached as Annex
1 hereto, and by this reference made a part hereof, the rights granted by this
Warrant shall be adjusted as therein specified.

Upon
exercise of this Warrant, the form of election must be duly executed and the
instructions for registration of the Shares acquired by such exercise must be
completed. 

The term
Expiration Date means the earliest of (i) the 36th Month
anniversary of the date hereof, (ii) immediately prior to the sale of all or
substantially all of the Company’s assets, or (iii) immediately prior to a
merger or consolidation in which securities possessing more than 50% of the
total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such transaction; provided, that the Company
shall give notice to the Holder at least 10 days prior to the events set forth
in clauses (i), (ii) and (iii) above. 

If the
subscription rights represented hereby are not exercised at or before the
Expiration Date, this Warrant shall become void, and all rights represented
hereby shall cease and expire.

This
Warrant may be exercised in accordance with its terms in whole or in part. In
the event of the exercise or assignment hereof in part only, the Company shall
cause to be delivered to the Holder a new Warrant of like tenor to this Warrant
in the name of the Holder, evidencing the right of the Holder to purchase the
number of Shares purchasable hereunder as to which this Warrant has not been
exercised or assigned.

In no
event shall this Warrant (or the Shares issuable, upon full or partial exercise
hereof) be offered or sold except in conformity with the Securities Act of 1933;
as amended.

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
authorized officer this _________________, 2004.

Global
Golf Holdings, Inc.

By:_______________________________________

   Ford
Sinclair, C.E.O.

EXHIBIT
A

Form
to be used to exercise Warrant:

TO: Global
Golf Holdings, Inc. DATE:______

The
Undersigned hereby elects, irrevocably, to exercise the Warrant and to purchase
________ shares of Common Stock of the Company, and hereby makes payment by
cashier’s check of $________________ (at $____) in payment of the Exercise Price
pursuant thereto. Please issue the Shares as to which this Warrant is exercised
in the name of:

__________________________________

(Name)

__________________________________

(Address)

__________________________________

(Taxpayer
Number)

and if
said number of Warrants exercised shall not be all the Warrants evidenced by the
within Warrant Certificate, issue a new Warrant Certificate for the remaining
balance of Warrants to the undersigned at the address stated below.

Name of
Holder:______________________________________________

(Please
Print)

Signature:___________________________________________________

____________________________________________________

(Address)

NOTICE: The
signature to exercise must correspond with the name as written upon the face of
the Warrant in every particular without alteration or enlargement or any change
whatsoever.

EXHIBIT
A

Form
to be used to transfer Warrants:

TO:  Global
Golf Holdings, Inc. 

DATE:  ___________________________

For value
received, _______________________ hereby sells, assigns and transfers unto
__________________________ (Tax ID No._____________________) the attached
Warrant, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint the Secretary of the Company attorney, to
transfer said Warrant Certificate on the books of the company, with full power
of substitution in the premises.

Name of
Holder:____________________________________________

(Please
Print)

Signature:_________________________________________________

__________________________________________________

(Address)

NOTICE: The
signature to transfer must correspond with the name as written upon the face of
the Warrant in every particular without alteration or enlargement or any change
whatsoever.

EXHIBIT
A

ANNEX
1 TO GLOBAL GOLF HOLDINGS, INC.

COMMON
STOCK PURCHASE WARRANT

STATEMENT
OF RIGHTS OF WARRANT HOLDER

1. Exercise
of Warrant. This
Warrant may be exercised in whole or in part at any time at or before the
Expiration Date (as defined in the Warrant), by presentation and surrender
hereof to the Company, with the Exercise Form annexed hereto duly executed and
accompanied by payment by cashier’s check or wire transfer of the Exercise Price
for the number of shares specified in such form, together with all federal and
state taxes applicable upon such exercise. If this Warrant should be exercised
in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the right of the
Holder to purchase the balance of the shares purchasable hereunder. Upon receipt
by the Company of this Warrant and the Exercise Price at the office or agency of
the Company, in proper form for exercise, the Holder shall be deemed to be the
holder of record of the common stock issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such common stock shall not then be
actually delivered to the Holder.

2. Rights
of the Holder. The
Holder shall not, by virtue hereof, be entitled to any rights of a member in the
Company, either at law or equity, and the rights of the Holder are limited to
those expressed in the Warrant and are not enforceable against the Company
except to the extent set forth herein.

3. Adjustment
in Number of Shares.

(A) Adjustment
for Reclassifications. In case
at any time or from time to time after December 14, 2004 (“Issue Date”) the
holders of the Common Stock of the Company (or any shares or other securities at
the time receivable upon the exercise of this Warrant) shall have received, or,
on or after the record date fixed for the determination of eligible members,
shall have become entitled to receive, without payment therefore, other or
additional shares or other securities or property (other than cash) by way of
share-split, spinoff, reclassification, combination of shares or similar
corporate rearrangement (exclusive of any dividend of its or any subsidiary’s
shares), then and in each such case, the Holder of this Warrant, upon the
exercise hereof as provided in Section 1, shall be entitled to receive the
amount of securities and property which such Holder would hold on the date of
such exercise if on the Issue Date he had been the holder of record of the
number of common stock shares of the Company called for on the face of this
Warrant and had thereafter, during the period from the Issue Date, to and
including the date of such exercise, retained such shares and/or all other or
additional securities and property receivable by him as aforesaid during such
period, giving effect to all adjustments called for during such period. In the
event of a declaration of a dividend payable in shares of any equity security of
a subsidiary of the Company, then the Company may cause to be issued a warrant
to purchase shares of the subsidiary (“Springing Warrant”) in an amount equal to
such amount of the subsidiary’s securities to which the Holder would have been
entitled, but conditioned upon the exercise of this warrant as a prerequisite to
receiving the shares issuable pursuant to the Springing Warrant.

(B)  Adjustment
for Reorganization, Consolidation, Merger. In case
of any reorganization of the Company (or any other company the securities of
which are at the time receivable on the exercise of this Warrant) after the
Issue Date, or in case, after such date, the Company (or any such other company)
shall consolidate with or merge into another company or convey all, or
substantially all, of its assets to another company, then and in each such case
the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at
any time after the consummation of such reorganization, consolidation, merger or
conveyance, shall be entitled to receive, in lieu of the securities and property
receivable upon the exercise of this Warrant prior to such consummation, the
securities or property to which such Holder would be entitled had the Holder
exercised this Warrant immediately prior thereto, all subject to further
adjustment as provided herein; in each such case, the terms of this Warrant
shall be applicable to the shares or other securities or property receivable
upon the exercise of this Warrant after such consummation.

4. Notices
to Warrant Holders. So long
as this Warrant shall be outstanding and unexercised (i) if the Company shall
take any action which would trigger an adjustment (as set forth in Section 3),
then, in any such case, the Company shall cause to be delivered to the Holder,
at least ten (10) days prior to the date specified in (x) or (y) below, as the
case may be, a notice containing a brief description of the proposed action and
stating the date on which (x) a record is to be taken for the purpose of such
dividend, distribution or rights, or (y) such reclassification, reorganization,
consolidation, merger, conveyance; lease, dissolution, liquidation or winding up
is to take place and the date, if any, is to be fixed, as of which the holders
of Common Stock of record shall be entitled to exchange their common stock for
securities or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

5. Officer’s
Certificate.
Whenever the number of common stock issuable upon exercise of this Warrant or
the Exercise Price shall be adjusted as required by the provisions hereof, the
Company shall forthwith file in the custody of its Secretary or an Assistant
Secretary at its principal office, and with its stock transfer agent, if any, an
officer’s certificate showing the adjusted number of common stock or Exercise
Price determined as herein provided and setting forth in reasonable detail the
facts requiring such adjustment. Each such officer’s certificate shall be made
available at all reasonable times for inspection by the Holder and the Company
shall, forthwith after each such adjustment, deliver a copy of such certificate
to the Holder. Such certificate shall be conclusive as to the correctness of
such adjustment.

6. Restrictions
on Transfer. The
Holder of this Warrant, by acceptance thereof; agrees that, absent an effective
notification under Regulation A or registration statement, in either case under
the Securities Act of 1933 (the “Act”), covering the disposition of this Warrant
or the Common Stock issued or issuable upon exercise hereof, such Holder will
not sell or transfer any or all of this Warrant or such Common Stock without
first providing the Company with an opinion of counsel reasonably satisfactory
to the Company to the effect that such sale or transfer will be exempt from the
registration and prospectus delivery requirements of the Act. Such Holder agrees
that the Company may issue instructions to its transfer agent to place, or may
itself place, a “stop order” on transfers with respect to the Warrant and Common
Stock and that the certificates evidencing the Warrant and Common Stock which
will be delivered to such Holder by the Company shall bear substantially the
following legend:

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ISSUED IN RELIANCE UPON AN
EXEMPTION FROM THE REQUIREMENTS FOR SUCH REGISTRATION FOR NONPUBLIC OFFERINGS.
ACCORDINGLY, THE SALE, TRANSFER. PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF
THE SECURITIES EVIDENCED HEREBY OR ANY PORTION THEREOF OR INTEREST THEREIN MAY
NOT BE ACCOMPLISHED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
THAT ACT OR AN OPINION OF COUNSEL TO THE HOLDER OF THE SECURITIES (UNLESS THE
COMPANY DETERMINES IN ITS SOLE DISCRETION TO USE ITS OWN COUNSEL), WITH ANY SUCH
COUNSEL AND OPINION OF COUNSEL TO BE REASONABLY ACCEPTABLE TO THE ISSUER, TO THE
EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

Each
Holder of this Warrant, at the time all or a portion of such Warrant is
exercised, agrees to make such written representations to the Company as counsel
for the Company may reasonably request, in order that the Company may be
reasonably satisfied that such exercise of the Warrant and consequent issuance
of Common Stock will not violate the registration and prospectus delivery
requirements of the Act, or other applicable state securities laws.

7.
 Piggyback
Registration Rights. If, at
any time after the Issue Date and expiring on the Expiration Date, the Company
proposes to register any of its securities under the Act either for its own
account or for the account of others, in connection with the public offering of
such equity securities solely for cash, on a registration form that would also
permit the registration of the common stock issuable upon exercise of this
Warrant (“Warrant Shares”), the Company shall promptly give the Holder written
notice of such proposal. Within thirty (30) days after the notice is given, the
Holder shall give notice as to the number of Warrant Shares, if any, which have
vested and which the Holder requests be registered simultaneously with such
registration by the Company. The Company shall use its best efforts to include
such Warrant Shares in such registration statement (or in a separate
registration statement concurrently filed) which the Holder requests to be so
included and to cause such registration statement to become effective with
respect to such shares in accordance with the registration procedures set forth
in Section 8 hereof. If the underwriter believes that the total amount of
securities sought to be registered by the Holder and any other holder of similar
rights exceeds the amount of securities that the underwriter deems advisable to
include in the offering, only the pro rata number of Warrant Shares requested by
the Holder with all other holders of common stock requesting registration
pursuant to piggyback registration rights, if any, shall be so registerable.
Notwithstanding the foregoing, if at any time after giving written notice of its
intention to register equity securities and before the effectiveness of the
registration statement filed in connection with such registration, the Company
determines for any reason either not to effect such registration or to delay
such registration, the Company may, at its election, by delivery of written
notice to the Holder, (i) in the case of a determination not to effect
registration, relieve itself of its obligation to register the Warrant Shares
under this Section 7 in connection with such registration, or (ii) in the case
of a determination to delay registration, delay the registration of the Warrant
Shares under this Section 7 for the same period as the delay in the registration
of such other equity securities. Each Holder of Warrant Shares requesting
inclusion in a registration pursuant to this Section 7 may, at any time before
the effective date of the registration statement relating to such registration,
revoke such request by delivering written notice of such revocation to the
Company (which notice shall be effective only upon receipt by the Company);
provided,
however, that if the Company, in consultation with its financial and legal
advisors, determines that such revocation would require a recirculation of the
prospectus contained in the registration statement, then such Holder of Warrant
Shares shall have no right to revoke said request.

8.
 Expenses
and Procedures.

(A) Expenses
of Registration. All
registration expenses (exclusive of underwriting discounts and commissions)
shall be borne by the Company; provided, however, that if a Holder revokes a
registration request pursuant to the last sentence of Section 7, the
registration expenses in connection with such revoked registration shall be
borne by such Holder. Each Holder of Warrant Shares shall bear all underwriting
discounts, selling commissions, sales concessions and similar expenses
applicable to the sale of the Warrant Shares sold by such Holder.

(B) Registration
Procedures. In the
case of the registration, qualification or compliance effected by the Company
pursuant to Section 7 hereof, the Company will keep the Holders of Warrant
Shares advised as to the initiation of registration, qualification and
compliance and as to the completion thereof. At its expense, the Company will
furnish such number of prospectuses and other documents incident thereto as the
holders or underwriters from time to time may reasonably request.

(C) Information. The
Company may require each seller of Warrant Shares as to which any registration
is being effected to furnish such information regarding the distribution of such
Warrant Shares as the Company may from time to time reasonably request and the
Company may exclude from such registration the Warrant Shares of any seller who
unreasonably fails to furnish such information after receiving such
request.

(D) Blue
Sky. The
Company will, as expeditiously as possible, use its best efforts to register or
qualify the Warrant Shares covered by a registration statement at the expense of
the Company in such jurisdictions as the holders of such Warrant Shares or, in
the case of an underwritten public offering, the managing underwriter shall
reasonably request at the expense of the Holders of the Warrant Shares being
registered provided that the Company shall not be required in connection with
any such registration or qualification or as a condition thereto to qualify to
do business in any jurisdiction where it is not so qualified or to take any
action which would subject it to taxation or service of process in any
jurisdiction where it is not otherwise subject to such taxation or service of
process.

(E) Notification
of Material Events. The
Company will, as expeditiously as possible, immediately notify each holder of
Warrant Shares under a registration statement, at any time when a prospectus
relating thereto is required to be delivered under the Act, of the happening of
any event as a result of which the prospectus contained in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing and, as expeditiously as possible, amend or supplement such
prospectus to eliminate the untrue statement or the omission.

9. Indemnification.

(A) Indemnification
by Company. The
Company shall, without limitation as to time, indemnify and hold harmless, to
the full extent permitted by law, each holder of Warrant Shares, its officers,
directors, agents and employees, each person who controls such holder (within
the meaning of Section 15 of the Act or Section 20 of the Securities Exchange
Act of 1934, as amended, hereinafter the “Exchange Act”), and the officers,
directors, agents or employees of any such controlling person, from and against
all losses, claims, damages, liabilities, costs (including, without limitation,
all reasonable attorneys’ fees) and expenses (collectively “Losses”), as
incurred, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any registration statement, prospectus
or preliminary prospectus or any amendment or supplement thereto, or arising out
of or based upon any omission or alleged omission of 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 (in the case of any prospectus) not
misleading, except insofar as the same are based solely upon information
furnished to the Company by such holder for use therein; provided, however, that
the Company shall not be liable in any such case to the extent that any such
Loss arises out of or is based upon an untrue statement or alleged untrue
statement or omission made in any preliminary prospectus or prospectus if (i)
such holder failed to send or deliver a copy of the prospectus or prospectus
supplement with or prior to the delivery of written confirmation of the sale of
Warrant Shares and (ii) the prospectus or prospectus supplement would have
corrected such untrue statement or omission. If requested, the Company shall
also indemnify underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, their
officers, directors, agents and employees and each person who controls such
persons (within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders of Warrant Shares. It is agreed that the
indemnity agreement contained in this Section 9(A) shall not apply to amounts
paid in settlement of any such Loss if such settlement is effected without the
consent of the Company (which consent has not been unreasonably
withheld).

(B) Indemnification
by Holder of Warrant Shares. In
connection with any registration statement in which a holder of Warrant Shares
is participating, such holder of Warrant Shares shall furnish to the Company in
writing such information as the Company may reasonably request for use in
connection with any registration statement or prospectus. Such holder hereby
agrees to indemnify and hold harmless, to the full extent permitted by law, the
Company, and its officers, directors, agents and employees, each person who
controls the Company (within the meaning of Section 15 of the Act or Section 20
of the Exchange Act), and the officers, directors, agents or employees of any
such controlling person, from and against all losses, as incurred, arising out
of or based upon any untrue statements or alleged untrue statement of material
fact contained in any registration statement, prospectus or preliminary
prospectus, or arising out of or based upon any omission of 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 (in the case of any
prospectus) not misleading, to the extent, but only to the extent, that such
untrue statement or omission is contained in any information so furnished in
writing by such holder to the Company for use in such registration statement,
prospectus or preliminary prospectus. The Company shall be entitled to receive
indemnities from accountants, underwriters, selling brokers, dealer managers and
similar securities industry professionals participating in the distribution to
the same extent as provided above with respect to information so furnished by
such persons specifically for inclusion in any registration statement,
prospectus or preliminary prospectus, provided, that the failure of the Company
to obtain any such indemnity shall not relieve the Company of any of its
obligations hereunder. Notwithstanding any provision of this Section 9 to the
contrary, the liability of a holder of Warrant Shares under this Section 9 shall
not exceed the purchase price received by such Holder for the Warrant Shares
sold pursuant to a registration statement or prospectus.

(C) Conduct
of Indemnification Proceedings. If any
action or proceeding (including any governmental investigation or inquiry) shall
be brought or any claim shall be asserted against any person entitled to
indemnity hereunder (an “indemnified party”), such indemnified party shall
promptly notify the party from which such indemnity is sought (the “indemnifying
party”) in writing, and the indemnifying party shall assume the defense thereof
including the employment of counsel reasonably satisfactory to the indemnified
party and the payment of all fees
and expenses incurred in connection with the defense thereof. All such fees and
expenses (including any fees and expenses incurred in connection with
investigation or preparing to defend such action or proceeding) shall be paid to
the indemnified party, as incurred, within twenty (20) days of written notice
thereof to the indemnifying party; provided, however, that if, in accordance
with this Section 9, the indemnifying party is not liable to the indemnified
party, such fees and expenses shall be returned promptly to the indemnifying
party. Any such indemnified party shall have the right to employ separate
counsel in any such action, claim or proceeding and to participate in the
defense thereof, but the fees and expenses of such counsel shall be the expense
of such indemnified party unless (a) the indemnifying party has agreed to pay
such fees and expenses, (b) the indemnifying party shall have failed promptly to
assume the defense of such action, claim or proceeding and to employ counsel
reasonably satisfactory to the indemnified party in any such action, claim or
proceeding, or (c) the named parties to any such action, claim or proceeding
(including any impleaded parties) include both such indemnified party and the
indemnifying party, and such indemnified party shall have been advised by
counsel that there may be one or more legal defenses available to it which are
different from or additional to those available to the indemnifying party (in
which case, if such indemnified party notifies the indemnifying party in writing
that it elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of
such action, claim or proceeding on behalf of such indemnified party, it being
understood, however, that the indemnifying party shall not, in connection with
any one such action, claim or proceeding or separate but substantially similar
or related actions, claims or proceedings in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the reasonable
fees and expenses of more than one separate firm of attorneys (together with
appropriate local counsel) at any time for all such indemnified parties, unless
in the opinion of counsel for such indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties
with respect to such action, claim or proceeding, in which event the
indemnifying party shall be obligated to pay the fees and expenses of such
additional counsel or counsels). No indemnifying party will consent to entry of
any judgment or enter into any settlement which does not include as an
unconditional term thereof the release of such indemnified party from all
liability in respect to such claim or litigation without the written consent
(which consent will not be unreasonably withheld) of the indemnified party. No
indemnified party shall consent to entry of any judgment or enter into any
settlement without the written consent (which consent will not be unreasonably
withheld) of the indemnifying party from which indemnify or contribution is
sought.

(D) Contribution. If the
indemnification provided for in this Section 9 is unavailable to an indemnified
party under Section 9(A) or 9(B) hereof (other than by reason of exceptions
provided in those Sections) in respect of any Losses, then each applicable
indemnifying party in lieu of indemnifying such indemnified party shall
contribute to the amount paid or payable by such indemnified party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the indemnifying party and indemnified party in connection with the
actions, statements or omissions which resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such indemnifying
party and the indemnified party shall be determined by reference to, among other
things, whether any action in question, including any untrue statement or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by
such indemnifying party or indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 9(C), any legal or other fees or expenses reasonably incurred by such
party in connection with any action, suit, claim, investigation or
proceeding.

The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 9(D) were determined by pro rata allocation or by any
other method of allocation which does not take into account the equitable
considerations referred to in the immediately preceding paragraph. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

10. Loss
or Mutilation. Upon
receipt by the Company of evidence satisfactory to it (in the exercise of
reasonable discretion) of the ownership of and the loss, theft, destruction or
mutilation of any Warrant and (in the case of loss, theft or destruction) of
indemnity satisfactory to it (in the exercise of reasonable discretion), and (in
the case of mutilation) upon surrender and cancellation thereof, the Company
will execute and deliver in lieu thereof a new Warrant of like
tenor.

11. Reservation
of Shares. The
Company shall at all times reserve and keep available for issue upon the
exercise of Warrants such number of its authorized but unissued common stock as
will be sufficient to permit the exercise in full of all outstanding
Warrants.

12. Notices. All
notices and other communications from the Company to the Holder of this Warrant
shall be mailed by first class registered or certified mail, postage prepaid, to
the address furnished to the Company in writing by the last Holder of this
Warrant who shall have furnished an address to the Company in
writing.

13. Change;
Waiver. Neither
this Warrant nor any term hereof may be changed, waived, discharged or
terminated orally but only by an instrument in writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought.

14. Law
Governing. This
Warrant shall be construed and enforced in accordance with and governed by the
laws of the State of Delaware.

DATED: ______________,
2004

Global
Golf Holdings, Inc.

A
Delaware corporation

By:________________________________________

Ford
Sinclair, C.E.O.Separation Agreement Brennan

Exhibit 10.1

 

Southern
Union Company

One
PEI Center

Wilkes-Barre,
PA 18711

July 1,
2005

John E.
Brennan

39
O’Connors Lane

Old
Tappan, NJ 07675

Dear Mr.
Brennan:

 

This will
confirm the agreement (the “Agreement”) that has been reached with you in
connection with your separation of employment from Southern
Union Company (the “Company”). 

 

	1.  	
      You
      hereby confirm that your last day of employment with the Company
      was
      June 1, 2005. Moreover, this is to confirm your prior resignation from
      your position as Vice-Chairman of the Board of Directors of the Company,
      effective March 30, 2005, and Corporate Secretary, effective May 9, 2005.
      To the extent that you presently hold any other positions as officer or
      director of the Company or any of its subsidiaries, divisions, joint
      ventures or other affiliates, you hereby resign such positions, effective
      immediately, and
      agree that you shall take such further actions as may be necessary or
      desirable to effectuate the foregoing.

 

	2.  	
      In
      consideration of your obligations set forth in this Agreement, including,
      but not limited to your consent to the General Release set forth in
      paragraph 8 below, the Company and you have agreed as
    follows:

 

	(a)  	
      In
      the event that you elect to receive continuation coverage in the Company’s
      medical and dental plans pursuant to the provisions of the Consolidated
      Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the
      Company agrees to reimburse you for the cost of such continuation coverage
      for a period of eighteen (18) months following the last day of the month
      in which your employment
      ceases with the Company (i.e.,
      through December 31, 2006). In the event that you obtain medical and/or
      dental benefits or coverage from another employer during this 18-month
      period, you agree to report any such benefits or coverage to the Company
      and the Company’s reimbursement obligation shall cease. Following December
      31, 2006, any further continuation of coverage pursuant to COBRA shall be
      at your own expense. Except as set forth herein, continuation coverage
      shall in all respects be subject to the requirements, conditions and
      limitations of COBRA and of the medical and dental plans of the Company,
      which may be amended from time to time.

 

	(b)  	
      The
      Company agrees to pay you for any unused vacation time that has accrued as
      of June
      1, 2005,
      and the
      Company agrees to reimburse you for any legitimate unreimbursed business
      expenses incurred by you prior to June 1, 2005 following your
      submission of proper documentation of such expenses to the Company.
      

 

	(c)  	
      The
      Company agrees to engage you as a consultant, and you agree to accept such
      engagement, to perform services as the Company may reasonably request with
      respect to operation of the Company’s business, for
      a period of two (2) years commencing June 2, 2005, to and including June
      1, 2007 (the
      “Consulting Period”). As
      compensation for your services as a consultant during the Consulting
      Period, you shall be paid at the rate of $37,500 per month, in arrears;
      provided,
      however,
      that the foregoing payments for consulting services shall cease if and to
      the extent that you obtain other employment with, or otherwise provide
      services as a consultant to, any business, entity, or individual during
      the Consulting Period other than “Permitted Services” (as defined below).
      For purposes of this Agreement, “Permitted Services” shall mean your
      provision of services to (1) an educational, not-for-profit or charitable
      organization, (2) a governmental organization that does not have any
      regulatory or oversight function with respect to the Company or any of its
      subsidiaries or affiliates or (3) a company that (i) is not publicly
      traded or listed on a national securities exchange or quoted on the
      automated quotation system of the National Association of Securities
      Dealers and (ii) which does not compete in any way, directly or
      indirectly, with any businesses of the Company or any of its subsidiaries
      or affiliates, and provided
      that
      your provision of such services does not adversely affect your
      availability to provide consulting services to the Company as required
      herein. You agree to promptly notify the Company in writing upon securing
      any other employment or consultancy engagements (whether or not they
      involve Permitted Services), and the Company shall have the right to stop
      any payment not yet due and recoup payments already made in the event that
      you fail to notify the Company of other employment or consultancy
      engagements as provided herein. The Company acknowledges that from time to
      time you may have personal commitments (e.g., travel, vacation) during the
      Consulting Period and the Company agrees to work with you to accommodate
      any such commitments in scheduling or otherwise requesting your consulting
      services.

 

	(d)  	
      Nothing
      herein shall be construed to constitute an employer/employee relationship
      during the Consulting Period, or to authorize you to act as an agent on
      behalf of the Company, at any time following June
      1, 2005 without the express written consent of the Company.
      Your relationship with the Company during the Consulting Period shall only
      be that of an independent contractor, and you shall not receive or be
      entitled to any unemployment, disability, workers’ compensation or medical
      insurance or any other employee benefits (including but not limited to
      vacation) as a result of your performing consulting services for the
      Company pursuant to this Agreement. You
      shall be entitled to reimbursement, upon receipt by the Company of
      suitable documentation, for reasonable and necessary travel and other
      expenses which you may incur during the Consulting Period at the specific
      request of the Company and as approved by the Company, in accordance with
      its policies and procedures established from time to
  time.

 

	3.  	
      You
      acknowledge that the payments and benefits referred to in paragraph 2
      above are in lieu of and in full satisfaction of any amounts that might
      otherwise be payable under any contract, plan, policy or practice, past or
      present, of the Company, or any of its subsidiaries and affiliates,
      including but not limited to the Southern Union Company Severance Plan,
      the Southern Union Company Severance Pay Plan and the Southern Union
      Company Corporate Reorganization Plan. You shall not be eligible to
      receive benefits under any employee benefit plans or compensation
      arrangements of the Company, or any of its subsidiaries or affiliates,
      subsequent to June 1, 2005, with the exception of (a) your right to elect
      COBRA continuation coverage as described above, and (b) any vested
      benefits you may have, as of June 1, 2005, in the Southern Union Savings
      Plan, the Southern Union Company Supplemental Deferred Compensation Plan,
      the Employees’ Retirement Plan of Southern Union Company Pennsylvania
      Division, the Southern Union Company ProvEnergy Pension Plan for
      Non-Bargaining Unit Employees, the Southern Union Company Retirement
      Income Plan, the Southern Union Company Employee Stock Purchase Plan
      and/or the Southern Union Company Executive Deferred Stock
      Plan.

 

	4.  	
      You
      hereby relinquish and convey to the Company any
      and all rights and interests you have or may have with respect to options
      to purchase shares of stock of the Company or any of its subsidiaries or
      affiliates including but not limited to with respect to the Southern Union
      1992 Long Term Stock Incentive Plan or the Southern Union Company 2003
      Stock and Incentive Plan (the “Option Plans”), as amended or restated from
      time to time, and acknowledge and agree that such options shall be
      forfeited as
      of June
      1, 2005; provided,
      however,
      that during the period commencing at the close of business on June 1, 2005
      and ending December 1, 2006, you may exercise any such options that have
      vested on or prior to June 1, 2005 in accordance with the terms of the
      Option Plans. Any vested options that have not been exercised prior to the
      end of such eighteen month
      period shall thereafter expire and be forfeited in accordance with the
      terms of the Option Plans. Nothing contained in this paragraph 4 shall be
      deemed to amend the terms of the Option Plans or any applicable notices of
      stock option awards or agreements.

 

	5.  	
      You
      agree that in the course of your employment with the Company you have had
      access, and during the Consulting Period you may have access, to
      confidential and proprietary information (“Confidential Information”)
      relating to the Company, its subsidiaries and affiliates, and their
      respective businesses, clients, finances, operations, strategic or other
      plans, employees, trade practices, trade secrets, know how or other
      matters that are not publicly known outside the Company, which are
      integral to the operations and success of the Company, and that such
      Confidential Information has been disclosed or will be disclosed to you in
      confidence and only for the use of the Company. You hereby represent and
      warrant that you have not disclosed any such Confidential Information to
      date to anyone other than your counsel and that your counsel has not
      disclosed any such Confidential Information to any third party. You
      further understand and agree that (a) you will keep such Confidential
      Information confidential at all times during and after your employment
      with the Company, (b) you will not make use of such Confidential
      Information on your own behalf, or on behalf of any third party, and (c)
      you have returned or will return to the Company any and all copies,
      duplicates, reproductions or excerpts of such Confidential Information
      within your possession, custody or control on or before June 1, 2005 (or,
      to the extent provided to you during the Consulting Period, on or before
      expiration of the Consulting Period). You further agree to keep the terms
      of this Agreement confidential and not to disclose the Agreement or the
      terms thereof to any person, except (a) to your immediate family and as
      may be required for obtaining legal or tax advice; (b) for the filing of
      income tax returns or required financial disclosures; or (c) as may be
      required by law or in any proceeding to enforce this Agreement. In the
      case of any disclosure to immediate family or a legal or tax advisor, you
      shall require any person receiving such information to maintain its
      confidentiality. 

 

	6.  	
      All
      documents (electronic, paper or otherwise), records (electronic, paper or
      otherwise), materials, software, equipment, and other physical property,
      and all copies of the foregoing, whether or not otherwise containing
      Confidential Information, that have come into your possession or been
      produced by you in connection with your employment (“Property”), have been
      and remain the sole property of the Company or its subsidiaries or
      affiliates, as applicable. You agree that you have returned all such
      Property to the Company (or, to the extent that you have not, that you
      will do so promptly).

 

	7.  	
      You
      agree not to make, or knowingly cause to be made, any statement or
      communication, written or oral, with the intention of disparaging or
      otherwise impugning the business or management of the Company or any of
      its subsidiaries or affiliates, or any of their respective officers,
      directors, agents, representatives or employees. You further agree not to
      make, or knowingly cause to be made, any statement or communication,
      written or oral, with the intention of damaging the business or reputation
      of the Company or any of its subsidiaries or affiliates, or the personal
      or business reputations of any of their respective officers, directors,
      agents, representatives or employees, or of interfering with, impairing or
      disrupting the normal operations of the Company or any of its subsidiaries
      or affiliates. The Company agrees that it will not knowingly permit its
      senior officers and directors to make,
      or knowingly cause to be made, any statement or communication, written or
      oral, with the intention of disparaging or otherwise impugning you, your
      business or your reputation. 

 

	8.  	
      You,
      your heirs, successors, and assigns, hereby knowingly and voluntarily
      remise, release and forever discharge the Company and its subsidiaries and
      affiliates, together with all of their respective current and former
      officers, directors, agents, representatives and employees, and each of
      their predecessors, successors and assigns (collectively, the
      "Releasees"), from any and all debts, demands, actions, causes of actions,
      accounts, covenants, contracts, agreements, claims, damages, omissions,
      promises, and any and all claims and liabilities whatsoever, of every name
      and nature, known or unknown, suspected or unsuspected, both in law and
      equity (“Claims”), which you ever had, now have, or may hereafter claim to
      have against the Releasees by reason of any matter, cause or thing
      whatsoever arising from the beginning of time to the time you sign this
      Agreement (the "General Release"). This General Release of Claims shall
      apply to any Claim of any type, including, without limitation, any and all
      Claims of any type that you may have arising under the common law, under
      Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991,
      the Age Discrimination in Employment Act of 1967, the Older Workers
      Benefit Protection Act, the Americans With Disabilities Act of 1990, the
      Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the
      Worker Adjustment Retraining and Notification Act, the Employee Retirement
      Income Security Act of 1974, the Sarbanes-Oxley Act of 2002,
      or the
      New York State and City Human Rights laws, each as amended, and any other
      federal, state or local statutes, regulations, ordinances or common
      law,
      or under any plan, program, policy, agreement, contract, understanding or
      promise, written or oral, formal or informal, between any of the Releasees
      and you, including but not limited to the Southern Union Company Severance
      Plan, the Southern Union Company Severance Pay Plan, the Southern Union
      Company Corporate Reorganization Plan, any Claim for bonus or incentive
      compensation, attorneys’ fees, costs, and/or any other fringe benefit of
      the Company or any of the other Releasees, and shall further apply,
      without limitation, to any and all Claims in connection with, related to
      or arising out of your employment, or the termination of your employment,
      with the Company, and all Claims for alleged tortious, defamatory or
      fraudulent conduct; provided,
      however,
      that nothing contained in this Agreement shall (i) impair any vested
      benefits you may have, as of June 1, 2005, in the Southern Union Savings
      Plan, the Southern Union Company Supplemental Deferred Compensation Plan,
      the Employees’ Retirement Plan of Southern Union Company Pennsylvania
      Division, the Southern Union Company ProvEnergy Pension Plan for
      Non-Bargaining Unit Employees, the Southern Union Company Retirement
      Income Plan, the Southern Union Company Employee Stock Purchase Plan
      and/or the Southern Union Company Executive Deferred Stock
      Plan;
      (ii) impair your continuing rights to indemnification by the Company, if
      any, to the same extent currently available to you pursuant to the
      Company’s by-laws and other organizational documents, any insurance
      policies maintained by or on behalf of the Company, or under applicable
      law for actions taken or omissions made as an employee or director of the
      Company; or (iii) be construed to prohibit you from bringing appropriate
      proceedings to enforce this Agreement. You hereby represent and warrant
      that you have not filed or caused to be filed any complaints, charges or
      lawsuits against the Company or any of the other Releasees, and that no
      such complaints, charges or lawsuits are pending. By signing this General
      Release, you further represent that you will not be entitled to any
      personal recovery in any action or proceeding that may be commenced on
      your behalf arising out of the matters released hereby. 

 

	9.  	
      You
      hereby represent and warrant that you are not aware of any illegal or
      unlawful actions or omissions by any current or former officer, director,
      employee, agent, attorney, consultant or representative of the Company
      (including yourself) through the date of the execution of this Agreement
      that were (individually or collectively) in any way knowingly or
      intentionally harmful or detrimental to the Company, its business and/or
      its shareholders, including, without limitation, violations of any laws,
      regulations or accounting policies or principles, the taking of
      unreasonable tax positions, or the furnishing of inaccurate statements,
      invoices or other reports to any person or
entity.

 

	10.  	
      During
      and after the termination of your employment, you agree to cooperate fully
      with the Company and its subsidiaries and affiliates concerning reasonable
      requests for information about the business of the Company or its
      subsidiaries or affiliates or your involvement and participation therein;
      the defense or prosecution of any claims or actions now in existence or
      which may be brought in the future against or on behalf of the Company or
      its subsidiaries or affiliates which relate to events or occurrences that
      transpired while you were employed by the Company; and in connection with
      any investigation or review by any federal, state or local regulatory,
      quasi-regulatory or self-governing authority (including, without
      limitation, the Securities and Exchange Commission) as any such
      investigation or review relates to events or occurrences that transpired
      while you were employed by the Company. Your full cooperation shall
      include, but not be limited to, being available to meet and speak with
      officers or employees of the Company and/or its counsel at reasonable
      times and locations, executing accurate and truthful documents and taking
      such other actions as may reasonably be requested by the Company and/or
      its counsel to effectuate the foregoing. In requesting such services
      following expiration of the Consulting Period, the Company will consider
      other commitments that you may have at the time of the request and agrees
      to work with you to accommodate any such commitments. The Company further
      agrees to reimburse you for any reasonable, out-of-pocket travel, hotel
      and meal expenses incurred in connection with your performance of
      obligations pursuant to this paragraph for which you have obtained prior,
      written approval from the Company.

 

	11.  	
      Nothing
      in this Agreement is intended to or shall preclude you from providing
      truthful testimony on any non-privileged subject matter in response to a
      valid subpoena, court order, regulatory request or other judicial,
      administrative or legal process or otherwise as required by law, in which
      event you shall notify the Company in writing as promptly as practicable
      after receiving any such request of the anticipated testimony and at least
      ten (10) business days prior to providing such testimony (or, if such
      notice is not possible under the circumstances, with as much prior notice
      as is possible) so that the Company may seek a protective order or other
      appropriate remedy, and you agree to cooperate with the Company in any
      effort the Company undertakes to obtain a protective order or other
      remedy. If such a protective order or other remedy is not obtained, or the
      Company waives compliance with this Agreement, you shall furnish only that
      portion of such subject matter that is legally required and shall exercise
      all reasonable efforts to obtain reliable assurance that confidential
      treatment will be accorded to the subject matter to be
      disclosed.

 

	12.  	
      The
      Company advises you to consult with an attorney of your choosing prior to
      signing this Agreement. You understand and agree that you have the right
      and have been given the opportunity to review this Agreement and,
      specifically, the General Release in paragraph 8 above, with an attorney.
      You also understand and agree that the Company is under no obligation to
      offer you the payments and benefits set forth in paragraph 2 above and
      that you are under no obligation to consent to the General Release. You
      acknowledge and agree that the payments and benefits offered by the
      Company and set forth in paragraph 2 above are sufficient consideration to
      require you to abide with your obligations under this Agreement, including
      but not limited to the General Release. You represent that you have read
      this Agreement, including the General Release set forth in paragraph 8
      above, and understand its terms and that you enter into this Agreement
      freely, voluntarily, and without coercion.

 

	13.  	
      You
      acknowledge and represent that you have been given at least twenty-one
      (21) days during which to review and consider the provisions of this
      Agreement and, specifically, the General Release set forth in paragraph 8
      above, although you may sign and return it sooner if you so desire. You
      further acknowledge and represent that you have been advised by the
      Company that you have the right to revoke this Agreement for a period of
      seven (7) days after signing it. You acknowledge and agree that, if you
      wish to revoke this Agreement, you must do so in a writing, signed by you
      and received by the Company no later than 5:00 p.m. Eastern Time on the
      seventh (7th) day of the revocation period. If no such revocation occurs,
      the General Release and this Agreement shall become effective on the
      eighth (8th) day following your execution of this Agreement. You further
      acknowledge and agree that, in the event that you revoke this Agreement,
      it shall have no force or effect, and you shall have no right to receive
      any of the payments or benefits provided for
hereunder.

 

	14.  	
      It
      is the desire and intent of the parties that the provisions of this
      Agreement shall be enforced to the fullest extent permissible under the
      laws and public policies applied in each jurisdiction in which enforcement
      is sought. In the event that any one or more of the provisions of this
      Agreement shall be held to be invalid, illegal or unenforceable, the
      validity, legality and enforceability of the remaining provisions shall
      not in any way be affected or impaired thereby. Moreover, if any one or
      more of the provisions contained in this Agreement shall be held to be
      excessively broad as to duration, scope, activity or subject, such
      provisions shall be construed by limiting or reducing them so as to be
      enforceable to the maximum extent compatible with applicable
      law.

 

	15.  	
      No
      waiver by either party of any breach by the other party of any condition
      or provision of this Agreement to be performed by such other party shall
      be deemed a waiver of any other provision or condition at the time or at
      any prior or subsequent time. This Agreement and the provisions contained
      in it shall not be construed or interpreted for or against either party
      because that party drafted or caused that party's legal representative to
      draft any of its provisions.

 

	16.  	
      The
      terms described in this Agreement set forth the entire agreement and
      understanding of the parties and supersede all prior agreements,
      arrangements and understandings, written or oral, between the
      parties. You
      acknowledge and agree that you are not relying on any representations or
      promises by any representative of the Company concerning the meaning or
      any aspect of this Agreement. This Agreement may not be altered or
      modified other than in writing signed by you and an authorized
      representative of the Company, and shall be governed by and construed and
      enforced in accordance with the laws of the State of New York, without
      reference to its choice of law rules.

 

	17.  	
      The
      Company’s offer to you of this Agreement is not, and shall not be
      construed as, any admission of liability or of any improper conduct on the
      part of the Company or any of the other Releasees, all of which the
      Company specifically denies.

 

	18.  	
      This
      Agreement may be executed in counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument.

 

	19.  	
      Any
      notice, demand or other communication which is required or permitted by
      this Agreement to be given or made by a party hereto shall be in writing
      to the following addresses:

 

	(a)  	
      to
      the Company at:

 

Southern
Union Company

c/o
Monica M. Gaudiosi, Esq.

5444
Westheimer

Houston,
Texas 77056

	(b)  	
      to
      you at the address listed above;

or at
such other address as any party may from time to time advise the other party by
notice in writing.

8

If the
above sets forth our agreement as you understand it and consent to it, please so
signify by executing the enclosed copy of this letter and return it to me at the
address listed above.

 

Very
truly yours,

Southern
Union Company

/s/
Thomas F. Karam

By: Thomas F.
Karam

Title: President
& COO

Agreed to
and Accepted:

/s/
John E. Brennan

John E.
Brennan

Dated:
July 1, 2005

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