Document:

Exhibit 10.1

     

    PROMULGATED
      BY THE TEXAS REAL ESTATE COMMISSION (TREC)

    

    UNIMPROVED
      PROPERTY CONTRACT

    Notice:
      Not For Use For Condominium Transactions

    

    1.PARTIES: 
      Cutting  Edge Custom Homes, Inc

    (Seller)
      agrees to sell and convey to : Mesa Bulders, Inc 

    (Buyer)
      and Buyer agrees to buy from Seller the Property described below.

    

    2.PROPERTY:
      Lot  
      1-5, 11-15,
      Block
 
      1 Hillcraft ,
        
      Addition,

    City
      of Fort Worth,   
      County,

    Texas,
      known as Terben Ct.

     

    (address/zip
      code), or as described on attached exhibit together with all rights, privileges
      and appurtenances pertaining thereto, including but not limited to: water
      rights, claims, permits, strips and gores, easements, and cooperative or
      association memberships (the Property).

    

    3.SALES
      PRICE:

    A.Cash
      portion of Sales Price payable by Buyer at closing $
      TED

    B.Sum
      of
      all financing described below $TED

    C.Sales
      Price (Sum of A and B) $219,000.00

    

    4. FINANCING:
      The
      portion of Sales Price not payable in cash will be paid as follows: (Check
      applicable boxes below)

    q A. THIRD
      PARTY FINANCING: One or more third party mortgage loans in the total amount
      of
      $TEDØ.
      If the
      Property does not satisfy the lenders’ underwriting requirements for the
      loan(s), this contract will terminate and the earnest money will be refunded
      to
      Buyer. (Check one box only)

    q (1) This
      contract is subject to Buyer being approved for the financing described in
      the
      attached Third Party Financing Condition Addendum.

    q (2) This
      contract is not subject to Buyer being approved for financing.

    q B. ASSUMPTION:
      The assumption of the unpaid principal balance of one or more promissory notes
      described in the attached TREC Loan Assumption Addendum.

    q C. SELLER
      FINANCING: A promissory note from Buyer to Seller of $  ,

    bearing
       
       %
      interest per annum, secured by vendor’s and deed of trust liens, and containing
      the terms and conditions described in the attached TREC Seller Financing
      Addendum. If an owner policy of title insurance is furnished, Buyer shall
      furnish Seller with a mortgagee policy of title insurance.

    

    5. EARNEST
      MONEY:
      Upon
      execution of this contract by both parties, Buyer shall deposit

    $Øas
      earnest money
      with __________________________________________________________________________________________________as
      escrow
      agent, at _____________(address).Buyer
      shall deposit additional earnest money of $ 
       
      with
      escrow agent within                         
      days
      after the effective date of this contract. If Buyer fails to deposit the earnest
      money as required by this contract, Buyer will be in default.

    

    6. TITLE
      POLICY AND SURVEY:

    A. TITLE
      POLICY: Seller shall furnish to Buyer at q
      Seller’s
q
      Buyer’s
      expense an owner policy of title insurance (Title Policy) issued by    

    (Title
      Company) in the amount of the Sales Price, dated at or after closing, insuring
      Buyer against loss under the provisions of the Title Policy, subject to the
      promulgated exclusions (including existing building and zoning ordinances)
      and
      the following exceptions:

    
      	 	
              (1)

            	
              Restrictive
                covenants common to the platted subdivision in which the Property
                is
                located.

            

    

    
      	 	
              (2)

            	
              The
                standard printed exception for standby fees, taxes and
                assessments.

            

    

    
      	 	
              (3)

            	
              Liens
                created as part of the financing described in Paragraph
                4.

            

    

    
      	 	
              (4)

            	
              Utility
                easements created by the dedication deed or plat of the subdivision
                in
                which the Property is located.

            

    

    
      	 	
              (5)

            	
              Reservations
                or exceptions otherwise permitted by this contract or as may be approved
                by Buyer in writing.

            

    

    
      	 	
              (6)

            	
              The
                standard printed exception as to marital
                rights.

            

    

    
      	 	
              (7)

            	
              The
                standard printed exception as to waters, tidelands, beaches, streams,
                and
                related matters.

            

    

    
      	 	
              (8)

            	
              The
                standard printed exception as to discrepancies, conflicts, shortages
                in
                area or boundary lines, encroachments or protrusions, or overlapping
                improvements. Buyer, at Buyer’s expense, may have the exception amended to
                read, “shortages in area”.

            

    

    
    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              B.

            	
              COMMITMENT:
                Within 20 days after the Title Company receives a copy of this contract,
                Seller shall furnish to Buyer a commitment for title insurance
                (Commitment) and, at Buyer’s expense, legible copies of restrictive
                covenants and documents evidencing exceptions in the Commitment (Exception
                Documents) other than the standard printed exceptions. Seller authorizes
                the Title Company to mail or hand deliver the Commitment and Exception
                Documents to Buyer at Buyer’s address shown in Paragraph 21. If the
                Commitment and Exception Documents are not delivered to Buyer within
                the
                specified time, the time for delivery will be automatically extended
                up to
                15 days or the Closing Date, whichever is
                earlier.

            

    

    
      	 	
              C.

            	
              SURVEY:
                The survey must be made by a registered professional land surveyor
                acceptable to the Title Company and any lender. (Check one box
                only)

            

    

    q (1) Within
       
       
      days
      after the effective date of this contract, Seller, at Seller’s expense, shall
      furnish a new survey to Buyer.

    q (2) Within
       
       
      days
      after the effective date of this contract, Buyer, at Buyer’s expense, shall
      obtain a new survey.

    q (3) Within
       
       
      days
      after the effective date of this contract, Seller shall furnish Seller’s
      existing survey of the Property to Buyer and the Title Company, along with
      Seller’s affidavit acceptable to the Title Company for approval of the survey.
      If the survey is not approved by the Title Company or Buyer’s lender, a new
      survey will be obtained at q
      Seller’s
q
      Buyer’s
      expense no later than 3 days prior to the Closing Date.

     

    
      	 	
              D.

            	OBJECTIONS: Within  
               
              days after Buyer receives the Commitment, Exception Documents and the
              survey, Buyer may object in writing to (i) defects, exceptions, or
              encumbrances to title: disclosed on the survey other than items 6A(1)
              through (7) above; disclosed in the Commitment other than items 6A(1)
              through (8) above; (ii) any portion of the Property lying in the 100
              year
              flood plain as shown on the current Federal Emergency Management Agency
              map; or (iii) any exceptions which prohibit the following use or
              activity: _______________________________________________________________________________________________________________

      
        	 	
                C.

              	Buyer’s failure to object within the time allowed will
                constitute a waiver of Buyer’s right to object; except that the
                requirements in Schedule C of the Commitment are not waived. Seller
                shall
                cure the timely objections of Buyer or any third party lender within
                15
                days after Seller receives the objections and the Closing Date will
                be
                extended as necessary. If objections are not cured within such 15
                day
                period, this contract will terminate and the earnest money will be
                refunded to Buyer unless Buyer waives the
                objections.

        	 	E. 	TITLE
                NOTICES: 

      

    

     

    
      	 	
              (1)

            	
              ABSTRACT
                OR TITLE POLICY: Broker advised Buyer to have an abstract of title
                covering the Property examined by an attorney of Buyer’s selection, or
                Buyer should be furnished with or obtain a Title Policy. If a Title
                Policy
                is furnished, the Commitment should be promptly reviewed by an attorney
                of
                Buyer’s choice due to the time limitations on Buyer’s right to
                object.

            

    

    
      	 	
              (2)

            	
              MANDATORY
                OWNERS’ ASSOCIATION MEMBERSHIP: The Property q
                is
                q
                is
                not subject to mandatory membership in an owners’ association. If the
                Property is subject to mandatory membership in an owners’ association,
                Seller notifies Buyer under §5.012, Texas Property Code, that, as a
                purchaser of property in the residential community in which the Property
                is located, you are obligated to be a member of the owners’ association.
                Restrictive covenants governing the use and occupancy of the Property
                and
                a dedicatory instrument governing the establishment, maintenance,
                and
                operation of this residential community have been or will be recorded
                in
                the Real Property Records of the county in which the Property is
                located.
                Copies of the restrictive covenants and dedicatory instrument may
                be
                obtained from the county clerk. You are obligated to pay assessments
                to
                the owners’ association. The amount of the assessments is subject to
                change. Your failure to pay the assessments could result in a lien
                on and
                the foreclosure of the Property.

            

    

    
      	 	
              (3)

            	
              STATUTORY
                TAX DISTRICTS: If the Property is situated in a utility or other
                statutorily created district providing water, sewer, drainage, or
                flood
                control facilities and services, Chapter 49, Texas Water Code requires
                Seller to deliver and Buyer to sign the statutory notice relating
                to the
                tax rate, bonded indebtedness, or standby fee of the district prior
                to
                final execution of this contract.

            

    

    
      	 	
              (4)

            	
              TIDE
                WATERS: If the Property abuts the tidally influenced waters of the
                state,
                §33.135, Texas Natural Resources Code, requires a notice regarding
                coastal
                area property to be included in the contract. An addendum containing
                the
                notice promulgated by TREC or required by the parties must be
                used.

            

    

    
      	 	
              (5)

            	
              ANNEXATION:
                If the Property is located outside the limits of a municipality,
                Seller
                notifies Buyer under §5.011, Texas Property Code, that the Property may
                now or later be included in the extraterritorial jurisdiction of
                a
                municipality and may now or later be subject to annexation by the
                municipality. Each municipality maintains a map that depicts its
                boundaries and extraterritorial jurisdiction. To determine if the
                Property
                is located within a municipality’s extraterritorial jurisdiction or is
                likely to be located within a municipality’s extraterritorial
                jurisdiction, contact all municipalities located in the general proximity
                of the Property for further
                information.

            

    

    
      	 	
              (6)

            	
              UNIMPROVED
                PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE
                PROVIDER: If the Property is located in a certificated service area
                of a
                utility service provider and the Property does not receive water
                or sewer
                service from the utility service provider on the date the Property
                is
                transferred, §13.257, Texas Water Code, requires a notice regarding the
                cost of providing water or sewer services to the Property. An addendum
                containing the notice promulgated by TREC or required by the parties
                must
                be used.

            

    

    
      	 	
              (7)

            	
              TEXAS
                AGRICULTURAL DEVELOPMENT DISTRICT: The Property q
                is
                q
                is
                not located in a Texas Agricultural Development
                District.

            

    

    

    7. PROPERTY
      CONDITION:

    
      	 	
              A.

            	
              INSPECTIONS,
                ACCESS AND UTILITIES: Buyer may have the Property inspected by inspectors
                selected by Buyer and licensed by TREC or otherwise permitted by
                law to
                make inspections. Seller shall permit Buyer and Buyer’s agents access to
                the Property at reasonable times. Seller shall pay for turning on
                existing
                utilities.

            

    

    
      	 	 	
              NOTICE:
                Buyer should determine the availability of utilities to the Property
                suitable to satisfy Buyer’s needs.

            

      	 	B. 	
              ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts
                the
                Property in its present condition; provided Seller, at Seller’s expense,
                shall complete the following:_______

              ___________________________________________________________________________________________________________________________________

            

    

     

    
      	 	
              C.

            	
              COMPLETION
                OF REPAIRS: Unless otherwise agreed in writing, Seller shall complete
                all
                agreed repairs prior to the Closing Date. All required permits must
                be
                obtained, and repairs must be performed by persons who are licensed
                or
                otherwise permitted by law to provide such repairs. At Buyer’s election,
                any transferable warranties received by Seller with respect to the
                repairs
                will be transferred to Buyer at Buyer’s expense. If Seller fails to
                complete any agreed repairs prior to the Closing Date, Buyer may
                do so and
                receive reimbursement from Seller at Closing. The Closing Date will
                be
                extended up to 15 days, if necessary, to complete
                repairs.

            

    

    
      	 	
              D.

            	
              ENVIRONMENTAL
                MATTERS: Buyer is advised that the presence of wetlands, toxic substances,
                including asbestos and wastes or other environmental hazards, or
                the
                presence of a threatened or endangered species or its habitat may
                affect
                Buyer’s intended use of the Property. If Buyer is concerned about these
                matters, an addendum promulgated by TREC or required by the parties
                should
                be used.

            

    

    
      	 	
              E.

            	
              SELLER’S
                DISCLOSURES: Except as otherwise disclosed in this contract, Seller
                has no
                knowledge of the following:

            

    

    
      	 	
              (1)

            	
              any
                flooding of the Property which has had a material adverse effect
                on the
                use of the property;

            

    

    
      	 	
              (2)

            	
              any
                pending or threatened litigation, condemnation, or special assessment
                affecting the Property;

            

    

    
      	 	
              (3)

            	
              any
                environmental hazards or conditions which materially affect the
                Property;

            

    

    
      	 	
              (4)

            	
              any
                dumpsite, landfill, or underground tanks or containers now or previously
                located on the Property;

            

    

    
      	 	
              (5)

            	
              any
                wetlands, as defined by federal or state law or regulation, affecting
                the
                Property; or

            

    

    
      	 	
              (6)

            	
              any
                threatened or endangered species or their habitat affecting the
                Property.

            

    

    

    8. BROKERS’
      FEES:
      All
      obligations of the parties for payment of brokers’ fees are contained in
      separate written agreements.

    

    9. CLOSING:

    
      	 	
              A.

            	
              The
                closing of the sale will be on or before  
                 ,
                20 
                 ,
                or within 7 days after objections to matters disclosed in the Commitment
                or by the survey have been cured, whichever date is later (Closing
                Date).
                If either party fails to close the sale by the Closing Date, the
                non-defaulting party may exercise the remedies contained in Paragraph
                15.

            

    

    
      	 	
              B.

            	
              At
                closing:

            

    

    
    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (1)

            	
              Seller
                shall execute and deliver a general warranty deed conveying title
                to the
                Property to Buyer and showing no additional exceptions to those permitted
                in Paragraph 6 and furnish tax statements or certificates showing
                no
                delinquent taxes on the Property.

            

    

    
      	 	
              (2)

            	
              Buyer
                shall pay the Sales Price in good funds acceptable to the escrow
                agent.

            

    

    
      	 	
              (3)

            	
              Seller
                and Buyer shall execute and deliver any notices, statements, certificates,
                affidavits, releases, loan documents and other documents required
                of them
                by this contract, the Commitment or law necessary for the closing
                of the
                sale and the issuance of the title
                Policy.

            

    

    
      	 	
              C.

            	
              Unless
                expressly prohibited by written agreement, Seller may continue to
                show the
                Property and receive, negotiate and accept back up
                offers.

            

    

    
      	 	
              D.

            	
              All
                covenants, representations and warranties in this contract survive
                closing.

            

    

    

    10. POSSESSION:
      Seller
      shall deliver possession of the Property to Buyer upon closing and
      funding.

    

    11. SPECIAL
      PROVISIONS:
      (Insert
      only factual statements and business details applicable to the sale. TREC rules
      prohibit licensees from adding factual statements or business details for which
      a contract addendum or other form has been promulgated by TREC for mandatory
      use.)

     

    12. SETTLEMENT
      AND OTHER EXPENSES: 

    
      	 	
              A.

            	
              The
                following expenses must be paid at or prior to
                closing:

            

    

    
      	 	
              (1)

            	
              Expenses
                payable by Seller (Seller’s
                Expenses):

            

    

    (a)Releases
      of existing liens, including prepayment penalties and recording fees; release
      of
      Seller’s loan liability; tax statements or certificates; preparation of deed;
      one-half of escrow fee; and other expenses payable by Seller under this
      contract.

    (b)Seller
      shall also pay an amount not to exceed $ 
       
      to be
      applied to Buyer’s Expenses.

    
      	 	
              (2)

            	
              Expenses
                payable by Buyer (Buyer’s
                Expenses):

            

    

    (a)  
      Loan
      origination, discount, buy-down, and commitment fees (Loan Fees).

    (b)  
      Appraisal
      fees; loan application fees; credit reports; preparation of loan documents;
      interest on the notes from date of disbursement to one month prior to dates
      of
      first monthly payments; recording fees; copies of easements and restrictions;
      mortgagee title policy with endorsements required by lender; loan-related
      inspection fees; photos, amortization schedules, one-half of escrow fee;
      transfer fees for cooperative or association membership for utility services;
      all prepaid items, including required premiums for flood and hazard insurance,
      reserve deposits for insurance, ad valorem taxes and special governmental
      assessments; final compliance inspection; courier fee, repair inspection,
      underwriting fee and wire transfer, expenses incident to any loan, and other
      expenses payable by Buyer under this contract.

    
      	 	
              B.

            	
              Buyer
                shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding
                Fee,
                or FHA Mortgage Insurance Premium (MIP) as required by the
                lender.

            

    

    
      	 	
              C.

            	
              If
                any expense exceeds an amount expressly stated in this contract for
                such
                expense to be paid by a party, that party may terminate this contract
                unless the other party agrees to pay such excess. Buyer may not pay
                charges and fees expressly prohibited by FHA, VA, Texas Veteran’s Housing
                Assistance Program or other governmental loan program
                regulations.

            

    

    

    13. PRORATIONS
      AND ROLLBACK TAXES:

    
      	 	
              A.

            	
              PRORATIONS:
                Taxes for the current year, interest, maintenance fees, assessments,
                dues
                and rents will be prorated through the Closing Date. If taxes for
                the
                current year vary from the amount prorated at closing, the parties
                shall
                adjust the prorations when tax statements for the current year are
                available. If taxes are not paid at or prior to closing, Buyer shall
                pay
                taxes for the current year.

            

    

    
      	 	
              B.

            	
              ROLLBACK
                TAXES: If this sale or Buyer’s use of the Property after closing results
                in the assessment of additional taxes, penalties or interest (Assessments)
                for periods prior to closing, the Assessments will be the obligation
                of
                Buyer. If Seller’s change in use of the Property prior to closing or
                denial of a special use valuation on the Property claimed by Seller
                results in Assessments for periods prior to closing, the Assessments
                will
                be the obligation of Seller. Obligations imposed by this paragraph
                will
                survive closing.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14. CASUALTY
      LOSS:
      If any
      part of the Property is damaged or destroyed by fire or other casualty after
      the
      effective date of this contract, Seller shall restore the Property to its
      previous condition as soon as reasonably possible, but in any event by the
      Closing Date. If Seller fails to do so due to factors beyond Seller’s control,
      Buyer may (a) terminate this contract and the earnest money will be refunded
      to
      Buyer (b) extend the time for performance up to 15 days and the Closing Date
      will be extended as necessary or (c) accept the Property in its damaged
      condition with an assignment of insurance proceeds and receive credit from
      Seller at closing in the amount of the deductible under the insurance policy.
      Seller’s obligations under this paragraph are independent of any obligations of
      Seller under Paragraph 7.

    

    15. DEFAULT:
      If Buyer
      fails to comply with this contract, Buyer will be in default, and Seller may
      (a)
      enforce specific performance, seek such other relief as may be provided by
      law,
      or both, or (b) terminate this contract and receive the earnest money as
      liquidated damages, thereby releasing both parties from this contract. If,
      due
      to factors beyond Seller’s control, Seller fails within the time allowed to make
      any non-casualty repairs or deliver the Commitment, or survey, if required
      of
      Seller, Buyer may (a) extend the time for performance up to 15 days and the
      Closing Date will be extended as necessary or (b) terminate this contract as
      the
      sole remedy and receive the earnest money. If Seller fails to comply with this
      contract for any other reason, Seller will be in default and Buyer may (a)
      enforce specific performance, seek such other relief as may be provided by
      law,
      or both, or (b) terminate this contract and receive the earnest money, thereby
      releasing both parties from this contract.

    

    16. MEDIATION:
      It is
      the policy of the State of Texas to encourage resolution of disputes through
      alternative dispute resolution procedures such as mediation. Any dispute between
      Seller and Buyer related to this contract which is not resolved through informal
      discussion q
      will
q
      will not
      be submitted to a mutually acceptable mediation service or provider. The parties
      to the mediation shall bear the mediation costs equally. This paragraph does
      not
      preclude a party from seeking equitable relief from a court of competent
      jurisdiction.

    

    17. ATTORNEY’S
      FEES:
      The
      prevailing party in any legal proceeding related to this contract is entitled
      to
      recover reasonable attorney’s fees and all costs of such proceeding incurred by
      the prevailing party.

    

    18. ESCROW:
      The
      escrow agent is not (a) a party to this contract and does not have liability
      for
      the performance or nonperformance of any party to this contract, (b) liable
      for
      interest on the earnest money and (c) liable for the loss of any earnest money
      caused by the failure of any financial institution in which the earnest money
      has been deposited unless the financial institution is acting as escrow agent.
      At closing, the earnest money must be applied first to any cash down payment,
      then to Buyer’s Expenses and any excess refunded to Buyer. If both parties make
      written demand for the earnest money, escrow agent may require payment of unpaid
      expenses incurred on behalf of the parties and a written release of liability
      of
      escrow agent from all parties. If one party makes written demand for the earnest
      money, escrow agent shall give notice of the demand by providing to the other
      party a copy of the demand. If escrow agent does not receive written objection
      to the demand from the other party within 30 days after notice to the other
      party, escrow agent may disburse the earnest money to the party making demand
      reduced by the amount of unpaid expenses incurred on behalf of the party
      receiving the earnest money and escrow agent may pay the same to the creditors.
      If escrow agent complies with the provisions of this paragraph, each party
      hereby releases escrow agent from all adverse claims related to the disbursal
      of
      the earnest money. Escrow agent’s notice to the other party will be effective
      when deposited in the U. S. Mail, postage prepaid, certified mail, return
      receipt requested, addressed to the other party at such party’s address shown
      below. Notice of objection to the demand will be deemed effective upon receipt
      by escrow agent.

    

    19. REPRESENTATIONS:
      Seller
      represents that as of the Closing Date (a) there will be no liens, assessments,
      or security interests against the Property which will not be satisfied out
      of
      the sales proceeds unless securing payment of any loans assumed by Buyer and
      (b)
      assumed loans will not be in default. If any representation of Seller in this
      contract is untrue on the Closing Date, Buyer may terminate this contract and
      the earnest money will be refunded to Buyer.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    20. FEDERAL
      TAX REQUIREMENTS:
      If
      Seller is a “foreign person,” as defined by applicable law, or if Seller fails
      to deliver an affidavit to Buyer that Seller is not a “foreign person,” then
      Buyer shall withhold from the sales proceeds an amount sufficient to comply
      with
      applicable tax law and deliver the same to the Internal Revenue Service together
      with appropriate tax forms. Internal Revenue Service regulations require filing
      written reports if currency in excess of specified amounts is received in the
      transaction.

    

    21. NOTICES:
      All
      notices from one party to the other must be in writing and are effective when
      mailed to, hand-delivered at, or transmitted by facsimile as
      follows:

    

     

     

    
      	To Buyer at: 	To Seller
              at: 
	 	 
	405
              Arport Fwy, #5 	Cutting
              Edge- Custom Home, Inc 
	Bedfort,
              Texas 16021 	P.O.
              Box 1501 
	 	Keller,
              Lx 76744 
	Telephone:
              (817) 909- 5154 	Telephone:
              (817) 980-0562 
	Facsmile:
              (__)_______________ 	Facsmile:
              (812) 281-3719

    

    

     

    22. AGREEMENT
      OF PARTIES:
      This
      contract contains the entire agreement of the parties and cannot be changed
      except by their written agreement. Addenda which are a part of this contract
      are
      (check all applicable boxes):

    

    
       

      
        	
                q Third
                  Party Financing Condition Addendum

              	
                q Addendum
                  for Coastal Area Property

              
	 	 
	
                q Seller
                  Financing Addendum

              	
                q Addendum
                  for Property Located Seaward of the Gulf Intracoastal 

              
	 	Waterway
	
                q Loan
                  Assumption Addendum 

              	 
	 	 
	
                q Addendum
                  for Property Subject to Mandatory Membership in an Owners’
                  Association

              	
                q Addendum
                  for Release of Liability on Assumption of FHA, VA, or Conventional
                  Loan
                  Restoration of Seller’s Entitlement for VA Guaranteed
                  Loan

              
	 	 
	
                q Addendum
                  for Sale of Other Property by Buyer 

              	
                q Addendum
                  for Unimproved Property Located in a Certificated Service Area
                  of a
                  Utility Service Provider
 
	 	 
	q Environmental
                Assessment, Threatened or Endangered Species and Wetlands
                Addendum 	q Addendum
                for “Back-Up Contract”
	 	 
	q Other
                (list):_______________________________________________ 	 
	___________________________________________________ 	 

      

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    23. TERMINATION
      OPTION: This paragraph will be a part of this contract ONLY if both blanks
      are
      filled in and Buyer has paid the Option Fee.
      Buyer
      has paid Seller $ 
       
      (Option
      Fee) for the unrestricted right to terminate this contract by giving notice
      of
      termination to Seller within  
       
      days
      after the effective date of this contract. If Buyer gives notice of termination
      within the time specified, the Option Fee will not be refunded, however, any
      earnest money will be refunded to Buyer. The Option Fee q
      will
q
      will not
      be credited to the Sales Price at closing. For the purposes of this paragraph,
      time is of the essence; strict compliance with the time for performance stated
      herein is required.

    

    24. CONSULT
      AN ATTORNEY:
      Real
      estate licensees cannot give legal advice. READ THIS CONTRACT CAREFULLY. If
      you
      do not understand the effect of this contract, consult an attorney BEFORE
      signing.

    
       

      
        	
                Buyer’s

                Attorney is: 

              	
                Buyer’s Seller’s

                Attorney
                  is:

              
	 	 
	 	 
	 	 
	 	 
	Telephone:
                (__)_______________	Telephone:
                (__)_______________
	Facsmile:
                (__)_______________ 	Facsmile:
                (__)_______________

      

      

       

    

    

    

    EXECUTED
      the  
       
      day of  
       ,
      20 
       
      (EFFECTIVE DATE). (BROKER: FILL IN THE DATE OF FINAL
      ACCEPTANCE.)

     

    
      

      
        	__________________________________________________________ 	__________________________________________________________ 
	Buyer 	Seller 

      

       

    

    

    

    
      	__________________________________________________________ 	__________________________________________________________ 
	Buyer 	Seller 

    

    

    

    The
      form
      of this contract has been approved by the Texas Real Estate Commission. TREC
      forms are intended for use only by trained real estate licensees. No
      representation is made as to the legal validity or adequacy of any provision
      in
      any specific transactions. It is not suitable for complex transactions. Texas
      Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732
      or
      (512) 459-6544 (http://www.trec.state.tx.us) TREC NO. 9-5. This form replaces
      TREC NO. 9-4.SETTLEMENT
      AGREEMENT AND RELEASE

    

    This
      Settlement Agreement and Release (“Agreement”) is entered into as of December
      31, 2005, by and between AMERICANA DISTRIBUTION, INC., a Colorado corporation,
      ("Americana"); ACTION MEDIA GROUP, LLC, a California limited liability company
      ("Action Media"); and JOSEPH D. AGLIOZZO, BENJAMIN L. PADNOS (“Padnos”) and
      PETER C. OCAMPO, individuals ("collectively referred to as the
“Members").

     

    WHEREAS,
      Americana, Action Media and the Members entered into that certain Asset Purchase
      Agreement dated April 19, 2004 and the Amendment thereto dated March 25, 2005
      (the Asset Purchase Agreement and Addendum shall be referred to as the
“Agreement”) whereby Americana acquired all of the assets (as defined in the
      Agreement) of Action Media in consideration for the issuance of a total of
      8,000,000 Americana shares to the Members and a Consulting Agreement of $37,500
      paid to with Benjamin L. Padnos.

    

    WHEREAS,
      the parties to the Agreement have mutually determined to terminate the
      Agreement.

    

    WHEREAS,
      in order to settle all claims known or unknown between them, the parties have
      agreed to settle and compromise all claims between them on the terms set forth
      herein.

    

    NOW,
      THEREFORE, in
      consideration of the promises, covenants and releases set forth below, the
      parties do hereby promise, covenant and agree as follows:

    

    1.  
      The
      parties acknowledge that the consideration tendered and received herein, the
      promises, undertakings, representations and releases made or given, and the
      execution of this Agreement are in compromise and settlement of disputed claims.
      The parties are willing to perform their obligations hereunder for the purpose
      of resolving their differences. Nothing herein is intended, and nothing herein
      shall be construed, as an admission of fault or liability on the part of any
      party hereto.

    

    2.  Americana,
      Action Media and the Members agree that the Agreement is hereby terminated
      effective immediately and, other than as set forth in this Agreement, there
      shall be no further obligations by any of the parties to another party.

    

    3.  The
      Members agree to return to Americana treasury all unsold shares, from the
      8,000,000 shares of Americana common stock issued pursuant to the Agreement.
      The
      Members shall be entitled to keep any proceeds generated from sales of any
      portion of the 8,000,000 shares. Furthermore, Benjamin Padnos shall be entitled
      to keep the Consulting Fees paid pursuant to the Agreement.

    

    4.  Americana
      shall transfer all of the assets received from Action Media pursuant to the
      Agreement to Benjamin L. Padnos or another entity as designated by the Members.
      Included in this transfer are: all source code used to power the action sports
      DVD rental service, Coreflix, ownership of the Coreflix brand, the URL
“Coreflix.com”, the entire library of DVD inventory for the Coreflix service,
      all mailing envelopes and other items related to the day-to-day operations
      of
      the Coreflix service, and all hardware and equipment including any computers,
      and other items. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.  Americana
      agrees to assist and cooperate with Action Media with regard to the transfer
      of
      all assets described in Section 4, including transfer of source code to Padnos’
server hosted with Zerolag Communications in El Segundo, California.

    

    6.  The
      Members agree to assist and cooperate with the Company with regard to any
      reasonable due diligence request or any other corporate matter that requires
      information from them with regard to Americana’s previous ownership of the
      Assets. 

    

    7.  The
      parties acknowledge that, in the course of their prior business relationship,
      they have exchanged certain information with one another. The parties agree
      that
      each party is free to use, for any purpose whatsoever, any and all information
      disclosed to him/it by any other party.

    

    8.  Action
      Media and its Members shall have no liability for any unpaid taxes or any other
      claims by customers of Coreflix during the period from April 19, 2004 through
      the execution of this transaction. This includes sales tax, customer claims,
      including credit card charge-backs, any unpaid invoices for inventory, etc.
      Upon
      execution of this Agreement, Action Media and its Members acquire no
      liabilities.

    

    9.  Americana
      and its officers, directors, shareholders, employees, trustees, agents,
      attorneys, representatives, heirs, beneficiaries, successors and assigns, and
      all other parties acting or purporting to act for or on behalf of Americana,
      jointly and severally, hereby agrees to defend, indemnify and hold harmless
      Action Media and the Members, and each of them, and their heirs, joint
      venturers, partners, affiliates, parent corporations, subsidiaries, officers,
      directors, agents, employees, shareholders, legal counsel, predecessors,
      successors and assigns, from and against any and all liabilities,
      responsibilities, damages, claims, causes of action, judgments, costs and
      expenses, including without limitation attorneys’ fees and expert witness fees,
      in connection with any claim related to the Agreement. 

    

    10.  Except
      as
      to those duties and obligations set forth herein, Americana, its officers,
      directors, shareholders, employees, trustees, agents, attorneys,
      representatives, heirs, beneficiaries, successors and assigns, and all other
      parties acting or purporting to act for or on behalf of Americana, hereby
      unconditionally release and forever discharge Action Media and the Members,
      and
      each of them, and each of their heirs, joint venturers, partners, affiliates,
      parent corporations, subsidiaries, officers, directors, agents, employees,
      shareholders, legal counsel, predecessors, successors and assigns, of and from
      any and all manner of actions, causes, causes of action, claims, liabilities,
      suits, threats, contracts, controversies, torts, agreements, promises, damages,
      judgments, execution of claims, and demands whatsoever in law or in equity,
      known or unknown, suspected or unsuspected, which Americana, and each of them,
      ever had, now has or may hereafter have against Action Media and the Members,
      by
      reason of any matter, cause or thing, whatsoever, including, without limitation,
      any claims for unknown damages or injuries, or unknown consequences or
      complications of known damages or injuries.

    

    11.  Action
      Media and the Members, their officers, directors, shareholders, employees,
      trustees, agents, attorneys, representatives, heirs, beneficiaries, successors
      and assigns, and all other parties acting or purporting to act for or on behalf
      of the Action Media and the Members jointly and severally, hereby agrees to
      defend, indemnify and hold harmless Americana, and its joint venturers,
      partners, affiliates, parent corporations, subsidiaries, officers, directors,
      agents, employees, shareholders, legal counsel, predecessors, successors and
      assigns, from and against any and all liabilities, responsibilities, damages,
      claims, causes of action, judgments, costs and expenses, including without
      limitation attorneys’ fees and expert witness fees, in connection with any claim
      related to the Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.  Except
      as
      to those duties and obligations set forth herein, Action Media and the Members,
      their officers, directors, shareholders, employees, trustees, agents, attorneys,
      representatives, heirs, beneficiaries, successors and assigns, and all other
      parties acting or purporting to act for or on behalf of Americana and each
      of
      them, hereby unconditionally release and forever discharge Americana and its
      joint venturers, partners, affiliates, parent corporations, subsidiaries,
      officers, directors, agents, employees, shareholders, legal counsel,
      predecessors, successors and assigns, of and from any and all manner of actions,
      causes, causes of action, claims, liabilities, suits, threats, contracts,
      controversies, torts, agreements, promises, damages, judgments, execution of
      claims, and demands whatsoever in law or in equity, known or unknown, suspected
      or unsuspected, which Action Media and the Members, and each of them, ever
      had,
      now has or may hereafter have against Americana, by reason of any matter, cause
      or thing, whatsoever, including, without limitation, any claims for unknown
      damages or injuries, or unknown consequences or complications of known damages
      or injuries. 

    

    13.  Americana
      represents and warrants to Action Media and the Members that the individual(s)
      signing this Agreement has been duly authorized to sign the Agreement on behalf
      of Americana, and Americana further represents and warrants that, upon
      execution, this Agreement shall be valid, legally binding and enforceable
      against Americana in accordance with its terms. 

    

    14.  Action
      Media and the Members each represent and warrant to Americana that the
      individual(s) signing this Agreement have been duly authorized to sign this
      Agreement on behalf of the respective entities, and Action Media and the Members
      further represent and warrant that, upon execution, this Agreement shall be
      valid, legally binding and enforceable against each of the Action Media and
      the
      Members in accordance with its terms. 

    

    15.  This
      Agreement shall be construed and interpreted as a whole and in accordance with
      its fair meaning, and without regard to, or taking into account, any presumption
      or other rule of law requiring construction or interpretation against the party
      preparing this Agreement or any part hereof. 

    

    16.  The
      parties shall each bear their own expenses, legal costs and attorneys’ fees
      incurred in connection with the negotiation and execution of this
      Agreement.

    

    17.  This
      Agreement contains the entire agreement and understanding of the parties
      concerning the subject matter hereof. All prior and contemporaneous agreements,
      representations, negotiations, and understandings of the parties, oral or
      written, are merged herein and/or expressly declared void and are superseded
      by
      this Agreement. The parties warrant that no representations have been made
      to or
      relied upon by any party to induce the execution of this Agreement except as
      set
      forth herein.

    

    18.  This
      Agreement, its application and interpretation, and all rights and obligations
      of
      the parties hereunder shall be governed by and construed exclusively in
      accordance with the laws of the State of Colorado, excluding any choice of
      law
      rules which would apply the laws of another jurisdiction.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19.  Any
      disputes regarding this Agreement shall be exclusively resolved in the state
      or
      federal courts, as applicable, located in Colorado. Each party consents to
      the
      exclusive jurisdiction of such courts and agrees not to bring any action under
      this Agreement except in Colorado.

    

    20.  This
      Agreement may not be altered, modified or amended, except in writing signed
      by
      the party to be bound.

    

    21.  The
      parties shall make, execute and deliver all such documents and perform all
      such
      acts from time to time, prior to and following the consummation of this
      Agreement, to carry out the full intent and purpose of this
      Agreement.

    

    22.  The
      parties hereto each represent and warrant that they have read this Agreement,
      understand its terms, have authority to enter into this Agreement, and intend
      to
      be legally bound thereby. 

     

    23.  The
      parties hereto each represent and warrant that they have been given an
      opportunity to consult with an attorney regarding this settlement and the terms
      of this Agreement.

    

    24.  This
      Agreement may be executed in multiple counterparts, each of which shall be
      an
      original, and all of which shall constitute one and the same
      agreement.

    

    25.  This
      Agreement shall be effective only when it has been fully executed and delivered
      by all of the parties hereto.

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on this day
      of
      February , 2006.

    

    AMERICANA
      Distribution INC. 

    

    By:_____________________________

    Its
      _____________________________

    

    ACTION
      MEDIA GROUP, INC. 

    

    By:_____________________________

    Its
      _____________________________

    

    

    By:______________________________      By:___________________________ 

    JOSEPH
      D.
      AGLIOZZO        BENJAMIN
      L. PADNOS

    

    

    By:______________________________   

    PETER
      C.
      OCAMPO

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