Document:

Unassociated Document

     

    
      

      

      For
        Immediate Release 

      

      COMPOSITE
        TECHNOLOGY’S CEO TO SPEAK IN WEBCAST AT MERRIMAN
        CURHAN FORD’S 4th ANNUAL INVESTOR SUMMIT CONFERENCE

      

      IRVINE,
        CA,
        September 17, 2007 - Composite
        Technology Corporation (CTC) (OTC Bulletin Board: CPTC)
        today
        announced that Benton Wilcoxon, its Chief Executive Officer, will present
        at the
        Merriman Curhan Ford & Co., 4th
        Annual
        Investor Summit Conference held today at the Mark Hopkins Hotel in San
        Francisco. The Company’s presentation is scheduled for 11:45 A.M. PST.

       

      Mr.
        Wilcoxon will discuss the Company's two business segments and the market
        opportunities for the Company’s key products. He will also discuss the Company's
        investment highlights. 

       

      The
        audio
        presentation will be web cast live at http://www.wsw.com/webcast/mcm7/cptc.ob along
        with presentation slides available for download. Following the live web cast,
        the presentation will be available on the Investor Relations section of the
        Composite Technology Corporation website at www.compositetechcorp.com.

      

      About
        Merriman Curhan Ford & Co:

       

      Merriman
        Curhan Ford & Co. is a securities broker-dealer and investment bank focused
        on fast-growing companies and growth-oriented institutional investors. It
        provides investment research, brokerage and trading services primarily to
        institutions, as well as advisory and investment banking services to corporate
        clients. Its mission is to become a leader in the researching, advising,
        financing and trading of fast-growing companies. Merriman Curhan Ford & Co.
        is registered with the Securities and Exchange Commission as a broker-dealer
        and
        is a member of the National Association of Securities Dealers, Inc. and SIPC.
        MCF Corporation is a financial services holding company that provides investment
        research, capital markets services, corporate and venture services, investment
        banking, asset management and primary research through its operating
        subsidiaries, Merriman Curhan Ford & Co., MCF Asset Management, LLC and
        Panel Intelligence, LLC. 

      

      About
        CTC:

       

      Composite
        Technology Corporation, based in Irvine, California, USA develops, manufactures
        and sells innovative high performance electrical transmission and renewable
        energy generation products through its subsidiaries:

       

      	·  	
              CTC
                Cable Corporation
                produces composite rod for use in its patented ACCC (aluminum conductor
                composite core) conductors, which are “high efficiency conductors” for use
                in electrical transmission grid systems. ACCC conductors demonstrate
                less
                electricity line losses when compared with conventional conductors.
                When
                deployed in place of conventional conductors on existing systems,
                the
                higher efficiency of ACCC conductors enable power generators to reduce
                the
                amount of power they must generate while still delivering the same
                power
                to the customers. They have also demonstrated significant savings
                in
                upgrade capital costs and operating expenses when substituted for
                other
                conductors. ACCC conductors enable grid operators to reduce blackouts
                and
                brownouts, providing a ‘reserve electrical capacity’ by operating at
                higher temperatures without significant thermal sag of the lines.
                ACCC
                conductors are an innovative economical solution for reconductoring
                power
                lines, constructing new lines and crossing large spans. ACCC composite
                rod
                is delivered to qualified conductor manufacturers worldwide for local
                ACCC
                conductor production and resale into local markets.

               

            

      	·  	
              DeWind
                Inc.,
                designs, produces, and sells the DeWind series of wind energy turbines
                including the new D8.2 model rated at 2 megawatts (MW) available
                in both
                50Hz and 60Hz; the D8 model rated at 2 MW available in 50Hz; and
                the D6
                model rated at 1.25 MW available in 50Hz. The new D8.2, which has
                been
                operating since early 2007 at Cuxhaven, Germany, utilizes the advanced
                WinDrive® hydrodynamic torque converter developed by Voith AG with a
                synchronous AC generator that is able to connect directly to the
                grid at
                high voltage without the use of power conversion electronics. During
                the
                3rd
                quarter of 2007, a 60Hz version will be installed at a site in the
                USA for
                certification. In late 2007, the first D8.2 turbines are to be assembled
                at TECO Westinghouse Motor Company in Texas, which will supply turbines
                for our North and South American
                customers.

            

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      For
        further information visit our website: www.compositetechcorp.com.
        Investor Relations Contact: James Carswell, +1-949-428-8500

      

      This
        press release may contain forward-looking statements, as defined in the
        Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for
        forward-looking statements provided to companies by the Reform Act does not
        apply to Composite Technology Corporation (Company). However, actual events
        or
        results may differ from the Company's expectations on a negative or positive
        basis and are subject to a number of known and unknown risks and uncertainties
        including, but not limited to, competition with larger companies, development
        of
        and demand for a new technology, risks associated with a startup company,
        the
        ability of the company to convert quotations and framework agreements into
        firm
        orders, our customers’ fulfillment of payment obligations under the respective
        supply agreement, our ability to deliver reliable turbines on a timely basis,
        general economic conditions, the availability of funds for capital expenditure
        by customers, availability of timely financing, cash flow, securing sufficient
        quantities of essential raw materials, timely delivery by suppliers, ability
        to
        produce the turbines and acquire its components, ability to maintain quality
        control, collection-related and currency risks from international transactions,
        the successful outcome of joint venture negotiations, or the Company's ability
        to manage growth. Other risk factors attributable to the Company's business
        may
        affect the actual results achieved by the Company including those that are
        found
        in the Company's Annual Report filed with the SEC on Form 10-K for fiscal
        year
        ended September 30, 2006 and subsequent Quarterly Reports on Form 10-Q and
        subsequent Current Reports filed on Form 8-K that will be included with or
        prior
        to the filing of the Company’s next Quarterly or Annual Report.

       

      

        2026
          McGaw Ave., Irvine, CA, 92614 T (949) 428-8500 F (949)
          428-8515Unassociated Document

     

    

    
      	
              DATED
                September 2007 

            
	
               

              Belgravia
                Entertainment
                International Limited

               

              John
                Faraday

               

              and

               

              ProElite,
                Inc.

               

            
	
              
                

              

               

              AGREEMENT

              relating
                to the sale and purchase of Mixed

              Martial
                Arts Promotions Limited and Mixed

              Martial
                Arts Productions Limited 

               

              
                

              

               

            
	
               

              HARBOTTLE
                & LEWIS LLP

              Hanover
                House

              14
                Hanover Square

              London
                W1S 1HP

            
	
               

              Ref:
                6/352/309754/6

               

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    

      
        	
                1.

              	
                Interpretation

              	
                1

              
	 	 	 
	
                2.

              	
                Agreement
                  for Sale and Purchase of the Shares

              	
                1

              
	 	 	 
	
                3.

              	
                Waiver

              	
                1

              
	 	 	 
	
                4.

              	
                Consideration

              	
                1

              
	 	 	 
	
                5.

              	
                Completion

              	
                2

              
	 	 	 
	
                6.

              	
                Payment
                  of the IT&S Loan and the AG Loan

              	
                3

              
	 	 	 
	
                7.

              	
                Indemnities

              	
                3

              
	 	 	 
	
                8.

              	
                Conduct
                  of Claims

              	
                3

              
	 	 	 
	
                9.

              	
                BEI
                  Contracts and Third Party Consents

              	
                3

              
	 	 	 
	
                10.

              	
                Warranties

              	
                4

              
	 	 	 
	
                11.

              	
                Consideration
                  Shares

              	
                5

              
	 	 	 
	
                12.

              	
                Set
                  Off

              	
                6

              
	 	 	 
	
                13.

              	
                Restrictive
                  Covenants

              	
                6

              
	 	 	 
	
                14.

              	
                CRC
                  Film

              	
                7

              
	 	 	 
	
                15.

              	
                Announcements

              	
                8

              
	 	 	 
	
                16.

              	
                Confidential
                  Information

              	
                8

              
	 	 	 
	
                17.

              	
                Notices

              	
                9

              
	 	 	 
	
                18.

              	
                Payments

              	
                10

              
	 	 	 
	
                19.

              	
                Entire
                  Agreement

              	
                10

              
	 	 	 
	
                20.

              	
                Variation

              	
                11

              
	 	 	 
	
                21.

              	
                Further
                  Assurances

              	
                11

              
	 	 	 
	
                22.

              	
                Assignment

              	
                11

              
	 	 	 
	
                23.

              	
                Joint
                  and several liability

              	
                11

              
	 	 	 
	
                24.

              	
                Contracts
                  (Rights of Third Parties) Act 1999

              	
                11

              
	 	 	 
	
                25.

              	
                Invalidity

              	
                12

              
	 	 	 
	
                26.

              	
                Remedies
                  and Waivers

              	
                12

              
	 	 	 
	
                27.

              	
                Counterparts

              	
                12

              
	 	 	 
	
                28.

              	
                Costs
                  and Expenses

              	
                12

              
	 	 	 

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                29.

              	
                Governing
                  Law, Jurisdiction and Service of Process

              	
                12

              
	 	 	 
	
                SCHEDULE
                  1 The Companies

              	
                13

              
	 	 	 
	
                SCHEDULE
                  2 BEI Contracts

              	
                15

              
	 	 	 
	
                SCHEDULE
                  3 Part 1: The Warranties

              	
                16

              
	 	 	 
	
                SCHEDULE
                  4 Terms and conditions of Consideration Shares

              	
                38

              
	 	 	 
	
                SCHEDULE
                  5 Completion Documents

              	
                39

              
	 	 	 
	
                SCHEDULE
                  6 Reference Accounts

              	
                43

              
	 	 	 
	
                SCHEDULE
                  7 Tax Covenant

              	
                44

              
	 	 	 
	
                1.

              	
                INTERPRETATION

              	
                44

              
	 	 	 
	
                2.

              	
                COVENANT
                  TO PAY

              	
                47

              
	 	 	 
	
                3.

              	
                EXCLUSIONS

              	
                48

              
	 	 	 
	
                4.

              	
                COSTS
                  AND EXPENSES

              	
                48

              
	 	 	 
	
                5.

              	
                WITHHOLDINGS/DEDUCTIONS
                  FROM COVENANT PAYMENTS

              	
                48

              
	 	 	 
	
                6.

              	
                TAX
                  ON COVENANT PAYMENTS

              	
                49

              
	 	 	 
	
                7.

              	
                NOTIFICATION
                  OF CLAIMS AND CONDUCT OF DISPUTES

              	
                49

              
	 	 	 
	
                8.

              	
                DUE
                  DATE OF PAYMENT AND INTEREST

              	
                49

              
	 	 	 
	
                9.

              	
                RECOVERY
                  FROM THIRD PARTIES

              	
                50

              
	 	 	 
	
                10.

              	
                SECONDARY
                  LIABILITIES

              	
                51

              
	 	 	 
	
                11.

              	
                MANAGEMENT
                  OF PRE-COMPLETION TAX AFFAIRS

              	
                51

              
	 	 	 
	
                12.

              	
                CONDUCT
                  OF OTHER TAX AFFAIRS

              	
                54

              
	 	 	 
	
                SCHEDULE
                  8 Definitions and Interpretation

              	
                55

              

      

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    THIS
      AGREEMENT is
      made
      by deed on
      the           day of
      September 2007

     

    BETWEEN:

     

    
      	(1)  	
              Belgravia
                Entertainment International Limited a
                company incorporated in the British Virgin Islands with registered
                number
                586204 and with a registered office at Akara Buildings, 24 De Castro
                Street, Road Town, Tortola, the British Virgin Islands (the “Seller”);
                

            

    

     

    
      	(2)  	
              John
                Faraday an
                individual with an address in the United Kingdom at 459, Anchor House,
                Riverside West, Smugglers Way, London. SW18 1EX (“JF”);
                and

            

    

     

    
      	(3)  	
              ProElite,
                Inc a
                company incorporated under the laws of the state of New Jersey and
                with a
                registered office at 12121 Wilshire Blvd. Ste 1001, Los Angeles,
                California, USA; (the “Purchaser”).

            

    

     

    BACKGROUND:
      

     

    
      	(A)  	
              The
                Seller is the holder of the entire issued share capital of: (i) Mixed
                Martial Arts Promotions Limited, a company incorporated in England
                and
                Wales with registered number 05098337 and with a registered office
                at
                Suite 4, 1st Floor, 4 Morie Street, London SW18 1SL (“MMAP”);
                and (ii) Mixed Martial Arts Productions Limited a company incorporated
                in
                England and Wales with registered number 05097799 and with a registered
                office at Suite 4, 1st Floor, 4 Morie Street, London SW18 1SL
                (“MMAD”)
                (together the “Companies”
                and each a “Company”)
                

            

    

     

    
      	(B)  	
              The
                Seller has agreed to sell, and the Purchaser has agreed to purchase
                the
                entire issued share capital of each of the Companies together with
                any
                Business Assets which may exist on the terms and conditions set out
                in
                this Agreement.

            

    

     

    IT
      IS AGREED: 

     

    
      	1.  	
              Interpretation

            

    

     

    In
      this
      Agreement, including the Background and Schedules, words and expressions which
      are defined shall have the meanings given in Schedule 8.

     

    
      	2.  	
              Agreement
                for Sale and
                Purchase of the Shares

            

    

     

    
      	2.1  	
              Subject
                to the terms and conditions of this Agreement, the Seller shall sell
                with
                full title guarantee and free from all Encumbrances, and the Purchaser
                will purchase, the Shares with all rights attaching to them at the
                date of
                this Agreement including the right to receive all distributions and
                dividends declared, paid or made in respect of the
                Shares.

            

    

     

    
      	2.2  	
              The
                Purchaser shall not be obliged to complete the purchase of the Shares
                unless the sale and purchase of all of the Shares is completed
                simultaneously.

            

    

     

    
      	3.  	
              Waiver

            

    

     

    
      	3.1  	
              The
                Seller waives all rights of pre-emption to which he is or might be
                entitled to under the respective articles of association of the Companies
                or otherwise in respect of the sale and purchase of any or all of
                the
                Shares pursuant to clause 2.1.

            

    

     

    
      	3.2  	
              Each
                of JF and the Seller hereby waive any and all claims which they may
                have
                against either of the Companies or against any officer, employee,
                agent or
                adviser of either of the Companies.

            

    

     

    
      	4.  	
              Consideration

            

    

     

    
      	4.1  	
              The
                total consideration (the “Consideration”)
                payable for the sale of the Shares shall be:

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              the
                payment by the Purchaser to the Seller of US$1,219,000 (one million
                two
                hundred and nineteen million US dollars) on Completion; (the
                “Initial
                Cash Consideration”);

            

    

     

    
      	(b)  	
              the
                issue of 500,000 Consideration Shares to the Seller within 30 Business
                Days of Completion (the “Share
                Consideration”);

            

    

     

    
      	(c)  	
              the
                payment by the Purchaser to the Seller of US$1,000,000 (one million
                US
                dollars) within 3 Business Days of the first anniversary of the Completion
                Date (the “Deferred
                Cash Consideration”);

            

    

     

    
      	5.  	
              Completion

            

    

     

    
      	5.1  	
              Completion
                shall take place immediately upon exchange of this Agreement at the
                offices of the Purchaser’s Solicitors (or such other place as the parties
                may agree) when all of the matters set out in Clause 5.2
                shall be effected.

            

    

     

    
      	5.2  	
              On
                or before Completion:

            

    

     

    
      	(a)  	
              each
                of the parties shall deliver to each other counterparts of this Agreement
                and the Disclosure Letter duly executed by
                them;

            

    

     

    
      	(b)  	
              MMAD
                and the Seller shall enter into the IP Assignment; 

            

    

     

    
      	(c)  	
              the
                relevant parties shall enter into the Deed of
                Release;

            

    

     

    
      	(d)  	
              the
                Seller shall deliver to the Purchaser any other documents to the
                extent
                necessary for the transfer of any Business
                Assets;

            

    

     

    
      	(e)  	
              the
                Seller shall deliver to the Purchaser those documents and other items
                specified in Schedule 5.

            

    

     

    
      	(f)  	
              subject
                to each of the Seller, DOD and AG complying with their obligations
                under
                the preceding provisions of this Clause 5.2,
                the Purchaser shall: 

            

    

     

    
      	(i)  	
              arrange
                for the sum of US$1,219,000 (one million two hundred and nineteen
                thousand
                US dollars) to be transferred telegraphically to the Seller’s Bank Account
                in immediately available funds;
                and

            

    

     

    
      	(ii)  	
              procure
                the repayment by MMAP of the IT&S Loan and the AG
                Loan.

            

    

     

    
      	5.3  	
              No
                party shall be obliged to complete this Agreement unless the other
                party
                has fulfilled all of its obligations under Clause 5.2.
                The Purchaser may in its absolute discretion waive any requirement
                contained in Clause 5.2(d)
                or
                5.2(e).

            

    

     

    
      	5.4  	
              If
                Completion does not proceed on the date of this Agreement because
                the
                Seller fails to fully discharge any of its obligations under
                Clause 5.2,
                the Purchaser may, by serving written notice on the other
                party:

            

    

     

    
      	(a)  	
              proceed
                to Completion so far as practicable (but without prejudice to any
                other
                rights which it or they may have under this Agreement);
                or

            

    

     

    
      	(b)  	
              postpone
                Completion to a date not less than 5 nor more than 20 Business Days
                after
                that date (in which case the provisions of this Clause shall also
                apply to
                Completion as so deferred).

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	5.5  	
              If
                Completion does not occur on or before the date agreed in
                Clause 5.4
                due to the failure of the Seller to comply with any of their obligations
                under Clause 5.2
                then the Purchaser may by serving written notice on the party in
                default,
                terminate this Agreement.

            

    

     

    
      	5.6  	
              As
                soon as reasonably practicable following Completion, the
                Seller shall procure that each of DOD and AG shall enter into the
                New
                Employment Agreements;

            

    

     

    
      	6.  	
              Payment
                of the IT&S Loan and the AG
                Loan

            

    

     

    
      	6.1  	
              At
                completion, the Purchaser shall procure that
                MMAP:

            

    

     

    
      	(a)  	
              pays
                to IT&S US$2,600,000 (two million six hundred thousand US dollars) as
                full repayment of the IT&S Loan;
                and

            

    

     

    
      	(b)  	
              pays
                to AG $181,000 (one hundred and eighty one thousand US dollars) as
                full
                repayment of the AG Loan,

            

    

    
       

      
        	
              	
                and
                  the Seller confirms that the IT&S Loan
                  and the AG Loan shall be fully discharged upon such payments being
                  made.

              

      

    

     

    
      	7.  	
              Indemnities

            

    

     

    
      	7.1  	
              the
                Seller will, at all times during the period between the Completion
                Date
                and the first anniversary of the Completion Date, indemnify and keep
                the
                Purchaser fully and effectively indemnified on demand against any
                and all
                loss (including diminution of the value of assets), damage, and liability
                (including Tax) and all costs, charges, interest, fines, damages,
                penalties and expenses incurred or incidental or relating to the
                same
                (including all costs and expenses of investigations and legal fees
                and
                expenses on a solicitor and own-client basis) whether or not reasonable,
                foreseeable, contemplated or avoidable and whether suffered by the
                Companies, the Purchaser or the Purchaser’s Group directly or indirectly
                relating to or in connection with:

            

    

     

    
      	(a)  	
              any
                document delivered to the Purchaser under Clause 5.2
                or
                Schedule 5
                being unauthorised, invalid or for any other reason ineffective for
                its
                purpose; and

            

    

     

    
      	(b)  	
              the
                Purchaser having to pay any income tax or national insurance contributions
                in respect of, by reference to or as a consequence of paying all
                or any
                part of the Consideration to the
                Seller.

            

    

     

    
      	8.  	
              Conduct
                of Claims

            

    

     

    If
      the
      Purchaser becomes aware of any claim or potential claim by a third party (a
      “third
      party claim”)
      after
      the Completion Date which is likely to result in a Claim being made, the
      Purchaser shall,
      as soon
      as reasonably practicable, give notice of such third party claim to the Seller
      and the Seller shall have the right to attempt to settle such third party claim
      for a period not exceeding fourteen days following receipt of such notice and
      in
      the event that the Seller has been unable to settle such third party claim
      within such period, the Purchaser shall have the right to conduct the defence
      of
      such third party claim and the Seller shall for these purposes indemnify and
      secure the Purchaser and the Companies on demand against all reasonable out
      of
      pocket costs and expenses including those of its legal advisers incurred in
      respect of the defence of such third party claim. Nothing in this clause shall
      have the effect of relieving the Purchaser from any common law duty to mitigate
      any loss or damage suffered by it.

     

    
      	9.  	
              BEI
                Contracts
                and Third Party Consents

            

    

     

    
      	9.1  	
              Subject
                to the terms of this Agreement (including the remaining provisions
                of this
                Clause 9),
                the Seller hereby assigns to the Purchaser with effect from the Effective
                Date the benefit of each of the BEI Contracts which are capable of
                assignment without the need for any third party consent.
                

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	9.2  	
              To
                the extent that any of the BEI Contracts are not assignable without
                the
                consent of another party or without an agreement of novation, this
                Agreement shall not constitute an assignment or an attempted assignment
                if
                such action would constitute a breach of the relevant BEI Contract.
                In the
                event that such consent to assignment or novation is required, the
                Seller
                and the Purchaser shall (at the Purchaser’s request) use all reasonable
                endeavours to obtain the consent or novation required as soon as
                reasonably practicable and upon any such consent being obtained,
                the
                relevant BEI Contract shall hereby be assigned to the
                Purchaser.

            

    

     

    
      	9.3  	
              Unless
                and until any such required consent to assignment or novation is
                forthcoming in respect of any BEI Contract and the relevant BEI Contract
                has otherwise been assigned or novated, the Seller shall remain liable
                under such BEI Contract as a contracting party (and will enforce
                at the
                Purchaser’s reasonable request any and all rights of the Seller against
                the other party to the Contract).

            

    

     

    
      	9.4  	
              If
                any required consent to assignment or novation is not obtained in
                respect
                of any BEI Contract, the Seller shall co-operate with the Purchaser
                in any
                reasonable arrangements designed to provide for the Purchaser all
                the
                benefits under any such BEI Contract, including enforcement of any
                and all
                rights of the Seller against the other party to the relevant BEI
                Contract
                arising out of the cancellation by such other party or
                otherwise.

            

    

     

    
      	9.5  	
              If
                any required consent to assignment or novation is not obtained or
                completed (as appropriate) in respect of any BEI Contract within
                3 months
                of Completion then the Purchaser may at any time elect to terminate
                any
                interest it may have in the relevant BEI Contract pursuant to this
                Agreement by serving written notice on the Seller in which case the
                obligations of the Purchaser in respect of that BEI Contract pursuant
                to
                this Clause 9
                shall terminate immediately.

            

    

     

    
      	10.  	
              Warranties

            

    

     

    
      	10.1  	
              The
                Seller warrants and represents and undertakes to the Purchaser for
                itself
                and its successors in title that each of the Warranties is true,
                accurate
                and complete in all respects and not misleading at the date of this
                Agreement.

            

    

     

    
      	10.2  	
              The
                Seller acknowledges that the Purchaser has entered into this Agreement
                in
                reliance upon the Warranties. Save as expressly otherwise provided,
                each
                of the Warranties shall be construed as a separate and independent
                warranty and, subject to the provisions of Clause 10.3,
                shall not be limited by reference to any other Warranty or by anything
                in
                this Agreement.

            

    

     

    
      	10.3  	
              Subject
                to Clause 10.8,
                the Warranties shall be qualified by matters Disclosed in the Disclosure
                Letter but shall otherwise be subject to no qualification
                whatsoever.

            

    

     

    
      	10.4  	
              The
                Seller shall not be liable for any Non-Tax Claim or any Tax Claim
                unless
                the Seller receives from the Purchaser written notice of the Non-Tax
                Claim
                or Tax Claim:

            

    

     

    
      	(a)  	
              on
                or before the first anniversary of the Completion Date in the event
                of a
                Non-Tax Claim; or

            

    

     

    
      	(b)  	
              on
                or before the seventh anniversary of the Completion Date in the event
                of a
                Tax Claim.

            

    

     

    
      	10.5  	
              Without
                restricting the rights of the Purchaser, or its ability to claim
                damages
                on any basis, the amount of any Claim may be determined as, and be
                deemed
                to be, and the Seller shall at all times indemnify and keep fully
                and
                effectively indemnified on demand the Purchaser
                against:

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              any
                and all loss (including diminution of the value of assets), damage
                or
                liabilities (including Taxes) and all costs, charges, interest, fines,
                penalties and expenses incurred or incidental or relating to the
                same
                (including all costs and expenses of investigations and legal fees
                and
                expenses) whether or not reasonable, foreseeable, contemplated or
                avoidable and suffered directly or indirectly and/or the amount of
                any
                depletion or diminution in the value of any assets of either of the
                Companies in each case suffered or incurred by the Purchaser, directly
                or
                indirectly as a result of, in connection with or in relation to the
                subject matter of such Claim;

            

    

     

    
      	(b)  	
              the
                amount by which any assets or liabilities of the Companies are
                respectively less or more than they would have been had the relevant
                statement in Schedule 3
                been true, accurate, complete and not
                misleading;

            

    

     

    
      	(c)  	
              the
                amount of any decrease in the value of the Companies and of any other
                loss
                or damage directly or indirectly suffered or incurred by the Purchaser
                in
                consequence of, or in relation to, the subject matter of such
                Claim.

            

    

     

    
      	10.6  	
              Where
                any of the Warranties are qualified by the expression “so far as the
                Seller is aware”, “to the Seller’s knowledge, information and belief”,
                “known to the Seller” or anything similar, such Warranty shall be deemed
                to be given to the best of the knowledge, information and belief
                of the
                Seller after making all due and careful enquiries and/or
                searches.

            

    

     

    
      	10.7  	
              Where
                any information or documents have been supplied by or on behalf of
                any
                employee of the Companies to the Seller, JF or their advisors in
                connection with the Warranties or any disclosures in the Disclosure
                Letter, the provisions of such information or documents shall not
                constitute a warranty, representation or guarantee as to the accuracy
                of
                the information or documents from the employee concerned to the Seller
                and
                JF and the Seller and JF hereby undertake to waive any and all claims
                which they might otherwise have against the employee concerned in
                respect
                of any Claims arising from the provision of such
                information.

            

    

     

    
      	10.8  	
              The
                Warranties will each remain in full force and effect beyond and
                notwithstanding Completion and are each made without prejudice to
                any of
                the others. No provision of this Agreement will limit the extent
                or
                application of any Warranty and no information relating to the Companies
                of which the Purchaser or any of its advisers has knowledge (actual
                or
                constructive) will prejudice any Claim or operate to reduce any amounts
                recoverable. Notwithstanding the above or any other provision of
                this
                Agreement the Warranties shall not be or be capable of being qualified
                or
                discharged by the Disclosure Letter or in any other way insofar as
                any
                Claim arises as a consequence of the fraud or wilful or negligent
                misconduct or concealment of the Seller.

            

    

     

    
      	10.9  	
              The
                amount of any successful Claim against the Seller under the Warranties
                shall to the extent permissible be deemed to constitute a reduction
                in the
                Consideration.

            

    

     

    
      	10.10  	
              The
                Seller each acknowledge that the IP Assignment and the other documents
                referred to in clause 5.2(d)
                are precautionary only and confirms that no such document prejudices
                or
                qualifies any of the Warranties in any manner
                whatsoever.

            

    

     

    
      	11.  	
              Consideration
                Shares

            

    

     

    The
      Seller represents, warrants and undertakes to the Purchaser that it will hold
      any Consideration Shares:

     

    
      	(a)  	
              for
                investment purposes only and not with a view to distribution; and
                

            

    

     

    
      	(b)  	
              according
                to the terms and conditions set out in Schedule 4
                of
                this Agreement.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	12.  	
              Set
                Off

            

    

     

    
      	12.1  	
              The
                Purchaser shall be entitled to set off or (pending the determination
                of
                the relevant amount) withhold any amounts payable by it to the Seller
                now
                or in the future against:

            

    

     

    
      	(a)  	
              the
                amount of any Claims or other claims by the Purchaser under or in
                respect
                of this Agreement; 

            

    

     

    
      	(b)  	
              any
                amount owed by the Seller pursuant to clauses 7.1
                and 10.5;
                and 

            

    

     

    
      	(c)  	
              any
                other sum due to the Purchaser by the Seller under the terms of this
                Agreement.

            

    

     

    
      	12.2  	
              To
                secure the Seller’s obligations under this Agreement, the Seller grants
                the Purchaser a priority security interest in the Consideration
                Shares.

            

    

     

    
      	13.  	
              Restrictive
                Covenants

            

    

     

    
      	13.1  	
              In
                order to assure to the Purchaser the full benefit of the goodwill
                and the
                Business, each of the Seller and JF hereby undertakes that it shall
                not,
                either alone or by its employees, agents or otherwise howsoever or
                in
                conjunction with or on behalf of or for any other person, or as a
                manager,
                agent, partner, director, consultant or employee of any other person,
                directly or indirectly do any of the following
                things:

            

    

     

    
      	(a)  	
              at
                any time after the date of this
                Agreement:

            

    

     

    
      	(i)  	
              disclose
                to any person or use themselves for any purpose any information concerning
                the Business, the Companies, accounts or finances of the Business
                or the
                Companies or any of their clients or customers’ transactions or affairs
                which may have come to their knowledge and each of the Seller and
                JF
                further agrees to use its best endeavours to prevent the publication
                and/or disclosure of the same; or 

            

    

     

    
      	(ii)  	
              use
                any Intellectual Property belonging to the Companies or used in connection
                with the Business including the words “Cage Rage“, “Cage Rage
                Championships” or “Cage Rage Contenders” or any other names or words
                similar to or likely to be confused with them or use any distinctive
                mark,
                style or logo used by the Business or the Companies whether by using
                such
                names as part of a corporate name, trade name, product name or otherwise;
                or

            

    

     

    
      	(iii)  	
              in
                the course of carrying on any trade or business, claim, represent
                or
                otherwise indicate any present association with the Business, the
                Companies, the Purchaser or for the purpose of obtaining or retaining
                any
                business or custom claim, represent or otherwise indicate any past
                association with the Business, the Companies or the Purchaser;
                or

            

    

     

    
      	(iv)  	
              do
                or say anything with the intention of harming the reputation of the
                Business, the Companies or the Purchaser or do anything which could
                be
                anticipated to lead to any person or undertaking ceasing to do business
                with the Business, the Companies or the Purchaser;
                or

            

    

     

    
      	(b)  	
              for
                a period of 3 years after the date of this Agreement:
                

            

    

     

    
      	(i)  	
              solicit,
                canvass, interfere with or endeavour to entice away from the Purchaser
                or
                Companies (or procure or assist any persons to do any of the foregoing)
                any Restricted Customer or Restricted Supplier or their business
                or custom
                with a view to providing goods, services and/or rights to that Restricted
                Customer or receiving goods, services and/or rights from that Restricted
                Supplier in competition with the Business, the Purchaser or the
                Companies;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              provide
                or offer to provide any goods, services and/or rights to or receive
                any
                goods, services and/or rights from or otherwise have any business
                dealings
                with any Restricted Customer or any Restricted Supplier in competition
                with the Business, the Purchaser or the Companies;
                

            

    

     

    
      	(iii)  	
              be
                engaged, concerned or interested in any capacity in any business
                concern
                anywhere in the world which competes with or is intended to compete
                with
                that part or parts of the Business, the Purchaser or the Companies;
                

            

    

     

    
      	(iv)  	
              in
                competition with the Business or the Purchaser or the Companies offer
                employment to or employ or offer or conclude any contract for services
                with, canvass or solicit the employment or engagement of or endeavour
                to
                entice away any Key Person; or 

            

    

     

    
      	(v)  	
              procure
                or assist any third party to offer, employ, engage or solicit or
                endeavour
                to entice away any Key Person (whether or not such person would commit
                any
                breach of their contract of employment or engagement) unless such
                Key
                Person had ceased to be employed or engaged by the Purchaser more
                than 3
                months previously.

            

    

     

    
      	13.2  	
              The
                restrictions contained in Clause 13.1
                (which are without prejudice to each other) are considered reasonable
                and
                necessary by the parties for the proper protection of the Companies
                and
                goodwill of the Business, but in the event that any such restriction
                shall
                be found to be void but would be valid if some part thereof were
                deleted
                or the period or area of application reduced such restriction shall
                apply
                with such modification as may be necessary to make it valid and
                effective.

            

    

     

    
      	13.3  	
              Without
                prejudice to any other rights or remedies that the Purchaser may
                have,
                each of the Seller and JF acknowledges and agrees that damages alone
                would
                not be an adequate remedy for any breach by the Seller or JF of the
                provisions of this Clause 13
                and that, accordingly, the Purchaser shall be entitled without proof
                of
                special damages to the remedies of injunction, specific performance
                and/or
                other equitable relief for any threatened or actual breach of the
                provisions of this Clause 13
                by
                the Seller or JF.

            

    

     

    
      	13.4  	
              Each
                of the obligations on the Seller and JF contained in the above provisions
                of this Clause 13
                constitutes an entirely separate and independent restriction on the
                Seller
                and JF notwithstanding that they may be contained in the same sub-clause,
                paragraph, sentence or phrase.

            

    

     

    
      	14.  	
              CRC
                Film

            

    

     

    
      	14.1  	
              The
                Seller is considering producing a feature length film for theatrical
                release and global distribution (the “Film”).
                The parties agree that, as soon as is reasonably practicable following
                Completion, they will negotiate in good faith a licence agreement
                (the
                “Film
                Licence”)
                permitting the Seller certain access to past Cage Rage fight footage
                and
                permitting the Seller to shoot film footage at up to a maximum of
                three
                future Cage Rage Championships solely for the purpose of promoting
                the
                Film and for use in the Film.

            

    

     

    
      	14.2  	
              The
                parties agree that the Film Licence will comprise the following
                terms:

            

    

     

    
      	(a)  	
              the
                Seller will be granted reasonable access to, and use of, past footage
                of
                Cage Rage Championship events strictly for the purposes of the Film
                only;

            

    

     

    
      	(b)  	
              subject
                to the Purchaser’s prior written approval, the Seller shall have the right
                to use the words “Cage Rage” in relation to the Film
                only;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              the
                Seller will covenant that principal photography of the Film will
                not
                commence prior to the script of the Film having been approved by
                the
                Purchaser (such approval, if given, to be given within 7 Business
                Days of
                receipt of the script by the Purchaser) and furthermore the Seller
                will
                obtain the Purchaser’s approval, which will not be unreasonably withheld,
                of any material changes to the script following commencement of principal
                photography; 

            

    

     

    
      	(d)  	
              the
                Seller covenants that it will not, and procures to covenant that
                any
                distributor will not do anything to portray the “Cage Rage” name in a
                negative fashion and will not do anything to harm the reputation
                of Cage
                Rage; and

            

    

     

    
      	(e)  	
              the
                Seller shall be granted the right to film agreed Cage Rage Championship
                fights for the purposes of the Film subject to agreeing to pay the
                prize
                money for such fights and securing, at its own expense, all necessary
                consents and clearances of participants and venues.
                

            

    

     

    
      	15.  	
              Announcements

            

    

     

    
      	15.1  	
              The
                Seller shall, as soon as reasonably practicable, if so requested
                by the
                Purchaser on or at any time after the Completion Date join with the
                Purchaser and the Parent Company in publishing a joint statement
                to be
                prepared by the Purchaser regarding the transfer of the Shares and
                the
                Business to the Purchaser and/or join with the Purchaser in sending
                a
                joint statement to be prepared by the Purchaser to such of the Business’s
                suppliers, customers, clients, licensors or licensees as the Purchaser
                may
                decide informing them of the transfer of the Business to the
                Purchaser.

            

    

     

    
      	15.2  	
              The
                Purchaser shall have the right to make any statement or communication
                to
                any third party regarding the subject matter of this Agreement or
                the
                transactions contemplated hereby, without the consent of any other
                party,
                to comply with applicable securities laws and the applicable rules
                of the
                OTCBB, NASD, quotation service or other securities market or
                exchange.

            

    

     

    
      	15.3  	
              Save
                in respect of any announcement in the agreed form, no announcement
                or
                press release concerning the subject matter of this Agreement or
                any
                ancillary matter shall be made by the Seller without the prior written
                approval of the Purchaser (unless the Seller is required by law or
                any
                regulatory or governmental body to make any such announcement, provided
                that the Seller gives the Purchaser prompt written notice of such
                requirement prior to such disclosure and provides the Purchaser with
                such
                assistance as necessary to obtain an injunction to prevent such
                disclosure).

            

    

     

    
      	16.  	
              Confidential
                Information

            

    

     

    
      	16.1  	
              Each
                of the Seller and JF undertakes to treat all Confidential Information
                as
                strictly confidential and:

            

    

     

    
      	(a)  	
              will
                take all reasonable steps to prevent its use and/or
                disclosure;

            

    

     

    
      	(b)  	
              will
                not itself make use of any Confidential Information belonging to
                and/or
                used by another party for a purpose other than the performance of
                its
                obligations under this Agreement;
                and

            

    

     

    
      	(c)  	
              will
                not disclose Confidential Information to any person (other than in
                accordance with Clause 16.2).

            

    

     

    
      	16.2  	
              The
                Seller or JF may disclose Confidential Information where such disclosure
                would otherwise be prohibited by this Clause 16
                if
                and to the extent:

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              required
                by law or any regulatory body or securities exchange, provided that
                the
                Seller or JF (as appropriate) gives the Purchaser prompt written
                notice of
                such requirement prior to such disclosure being made, and provides
                the
                Purchaser with such assistance as necessary to obtain an injunction
                to
                prevent such disclosure; 

            

    

     

    
      	(b)  	
              it
                can be shown by the Seller or JF (to the Purchaser’s reasonable
                satisfaction) to have been known by it before disclosure to it by
                the
                Seller; 

            

    

     

    
      	(c)  	
              it
                can be shown by the Seller or JF (to the Purchaser’s reasonable
                satisfaction) to have been subsequently lawfully disclosed to that
                party
                by a third party who did not impose any restrictions on its disclosure
                and
                did not obtain it (whether directly or indirectly) from the other
                party;
                or

            

    

     

    
      	(d)  	
              the
                information was or becomes in the public domain (other than by reason
                of a
                breach of this Clause 16
                by
                the Seller or JF); or

            

    

     

    
      	(e)  	
              it
                is disclosed to the professional advisers, auditors or bankers of
                the
                Seller or JF; or

            

    

     

    
      	(f)  	
              it
                is disclosed to the officers or employees of the Seller who are required
                to have such information in the execution of their duties to the
                Seller.

            

    

     

    
      	16.3  	
              Notwithstanding
                the termination of this Agreement for whatever reason, the obligations
                and
                restrictions in this Clause 16
                shall continue for an indefinite
                period.

            

    

     

    
      	17.  	
              Notices 

            

    

     

    
      	17.1  	
              Any
                notice or other communication given under this Agreement shall be
                in
                writing and shall be delivered personally or sent by first class
                post (or
                airmail if overseas) or by fax, to the person due to receive the
                notice or
                communication, at its address or fax number set out in
                Clause 17.2
                or
                such other address or fax number which may from time to time be notified
                by a person to the other parties in writing as being its usual address
                or
                fax number.

            

    

     

    
      	17.2  	
              The
                addresses and fax numbers of the Seller and the Purchaser for the
                purposes
                of this Agreement shall be:

            

    

     

    
      	(a)  	
              The
                Seller:

            

    

     

    
      	
            	Address:	
              459,
                Anchor House, Riverside West, Smugglers Way,

              London.
                SW18 1EX

            

    

    
      	
            	Fax
              Number:	
               00
                44 (0) 20 8871 1836

            

    

    
      	
            	For
              the attention of:	
               John
                Faraday

            

    

    

    
      	(b)  	
              The
                Purchaser:

            

    

     

    
      	
            	Address:	
              12121
                Wilshire Blvd., Los Angeles, California CA 90025
                

            

    

    
      	
            	Fax
              Number:	
              (00
                1) 310 571 0740

            

    

    
      	
            	For
              the attention of:	
              William
                Kelly

            

    

     

    With
      a
      copy to (which shall not constitute notice):

     

    
      	
            	Address:	
              1801
                Century Park East, Suite 1600, Los Angeles, CA 90067
                

            

    

    
      	
            	Fax
              Number:	
              (00
                1) 310 789 1490

            

    

    
      	
            	For
              the attention of:	
              David
                Ficksman

            

    

     

    
      	17.3  	
              A
                notice or other communication shall be deemed
                given:

            

    

     

    
      	(a)  	
              if
                delivered personally upon delivery at the address referred to in
                Clause 17.1;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              if
                sent by first class post (other than airmail) and posted in the same
                country as the address of the addressee, 2 Business Days after the
                date of
                posting;

            

    

     

    
      	(c)  	
              if
                sent by overnight courier from within the same country as that of
                the
                addressee’s address, the Business Day following the date it was
                sent;

            

    

     

    
      	(d)  	
              if
                sent by airmail, 5 Business Days after the date of posting;
                and

            

    

     

    
      	(e)  	
              if
                sent by fax, on receipt by the sender of a confirmation slip confirming
                that the fax has been transmitted in full to the
                addressee,

            

    

     

    provided
      that where delivery or transmission occurs after 18.00 on a Business Day or
      on a
      day which is not a Business Day, receipt shall be deemed to occur at 09.00
      on
      the next following Business Day.

     

    
      	17.4  	
              In
                proving the giving of notice, it shall be sufficient to prove that
                the
                envelope containing the notice was properly addressed to the relevant
                party and delivered either to that address or posted as first class
                post
                (or registered airmail if overseas) or faxed to the correct fax number
                of
                the relevant party.

            

    

     

    
      	18.  	
              Payments

            

    

     

    
      	18.1  	
              Any
                payment to be made to the Seller pursuant to this Agreement shall
                be made
                to the Seller’s Bank Account in immediately available funds by electronic
                transfer in US dollars on the due date for payment. Receipt of such
                sums
                in the Seller’s Bank Account shall be an effective discharge of the
                obligation of the Purchaser to pay such sums to the Seller and the
                Purchaser shall not be concerned to see the application or be answerable
                for loss or misapplication of such
                amount.

            

    

     

    
      	18.2  	
              Any
                payment to be made to the Purchaser pursuant to this Agreement shall
                be
                made to the Purchaser’s Bank Account in immediately available funds by
                electronic transfer in US dollars on the due date for payment. Receipt
                of
                such sums in the relevant bank account shall be an effective discharge
                of
                the obligation of the Seller to pay such sums to the Purchaser and
                the
                Seller shall not be concerned to see the application or be answerable
                for
                loss or misapplication of such
                amount.

            

    

     

    
      	18.3  	
              Payment
                of amounts owed by MMAP to IT&S pursuant to the IT&S Loan shall be
                made to the Seller’s Bank Account in
                immediately available funds by electronic transfer in US dollars
                on the
                due date for payment.
                Receipt
                of such sums in the Seller’s Bank Account shall be an effective discharge
                of the obligation of MMAP to pay such sums to IT&S and neither the
                Purchaser nor MMAP shall be concerned to see the application or be
                answerable for loss or misapplication of such
                amount.

            

    

     

    
      	18.4  	
              Payment
                of amounts owed by MMAP to AG pursuant to the AG Loan shall be made
                to the
                AG Account in
                immediately available funds by electronic transfer in US dollars
                on the
                due date for payment.
                Receipt
                of such sums in the AG Account shall be an effective discharge of
                the
                obligation of MMAP to pay such sums to AG and neither the Purchaser
                nor
                MMAP shall be concerned to see the application or be answerable for
                loss
                or misapplication of such amount.

            

    

     

    
      	19.  	
              Entire
                Agreement 

            

    

     

    This
      Agreement (together with the documents referred to herein) sets out the entire
      agreement and understanding between the parties and supersedes all prior
      agreements, understandings or arrangements (oral or written and in whatever
      form) in respect of its subject matter.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	20.  	
              Variation

            

    

     

    No
      purported variation of this Agreement shall be effective unless it is in writing
      and signed by or on behalf of each of the parties.

     

    
      	21.  	
              Further
                Assurances

            

    

     

    
      	21.1  	
              The
                Seller shall (and shall procure that any necessary third parties
                shall) do
                all such acts and execute all such documents as the Purchaser may
                from
                time to time request on or after the Completion Date in order to
                fully
                implement this Agreement, including, without limitation, to vest
                in and
                assure to the Purchaser all rights, title and interest in the Shares
                and
                the Business Assets and pending which shall hold such Shares and
                Business
                Assets on trust for the Purchaser absolutely.

            

    

     

    
      	21.2  	
              The
                Seller hereby irrevocably appoints the Purchaser to be the Seller’s
                attorney, in its name on its behalf to execute any documents or
                instruments, do any act and generally use its name for the purposes
                of
                giving to the Purchaser the full benefit of this Agreement or which
                may be
                necessary for transferring all rights, title and interest in and
                to the
                Business Assets to the Purchaser.

            

    

     

    
      	21.3  	
              By
                its execution of this Agreement the Seller irrevocably appoints the
                Purchaser to be its Attorney from and after Completion granting to
                the
                Purchaser full power on its behalf to exercise all voting and other
                related rights attaching to the Shares including in particular, but
                without prejudice to the foregoing generality,
                power:

            

    

     

    
      	(a)  	
              to
                execute a form of proxy in favour of such person or persons as the
                Purchaser may think fit to attend and vote as the Seller’s proxy at any
                general meeting of the members, or separate class meeting of any
                class of
                members, of the MMAP or MMAD in respect of such Shares in such manner
                as
                the Purchaser may decide;

            

    

     

    
      	(b)  	
              to
                consent to the convening and holding of any such meeting and the
                passing
                of the resolutions to be submitted at any such meeting on short
                notice;

            

    

     

    
      	(c)  	
              to
                settle the terms of such resolutions;
                and

            

    

     

    
      	(d)  	
              generally
                to procure that the Purchaser or its nominees are duly registered
                as the
                holders of all the Shares after
                Completion.

            

    

     

    
      	22.  	
              Assignment

            

    

     

    The
      Seller agrees that the benefit of this Agreement (including any causes of action
      arising in connection with it) is given to the Purchaser for itself and its
      successors in title and accordingly may be enforced by the Purchaser or by
      the
      beneficial owner for the time being of the Companies or the Business and that
      the Purchaser and its successors in title may assign the benefit of this
      Agreement without the prior approval of the Seller. Other than as provided
      in
      this Clause 22,
      the
      benefit of all or any part of this Agreement may not be assigned by any party
      without the prior written consent of the other parties.

     

    
      	23.  	
              Joint
                and several liability

            

    

     

    The
      liability of the Seller and JF under or in respect of this Agreement shall
      be
      joint and several. 

     

    
      	24.  	
              Contracts
                (Rights of Third Parties) Act
                1999

            

    

     

    Except
      as
      expressly provided in this Agreement the parties agree that the provisions
      of
      this Agreement are personal to them and are not intended to confer any rights
      of
      enforcement on any other third party and that the Contracts (Rights of Third
      Parties) Act 1999 shall not apply to this Agreement or to any of its
      terms.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	25.  	
              Invalidity

            

    

     

    If
      any
      provision of this Agreement is or becomes illegal, invalid or unenforceable
      in
      any respect under the law of any jurisdiction then the legality, validity and
      enforceability in that jurisdiction of the remaining provisions shall be
      unaffected and the legality, validity and enforceability in any other
      jurisdiction of that or any other provision shall be unaffected. 

     

    
      	26.  	
              Remedies
                and Waivers

            

    

     

    
      	26.1  	
              A
                failure to exercise or delay in exercising any right, remedy or power
                provided under this Agreement or by law does not constitute a waiver
                of
                the right, remedy or power or a waiver of any other right, remedy
                or
                power. No single or partial exercise of any right, remedy or power
                prevents any further exercise of it or the exercise of any other
                right,
                remedy or power. 

            

    

     

    
      	26.2  	
              Except
                where this Agreement provides otherwise, the rights, remedies and
                powers
                provided by this Agreement are cumulative and not exclusive of any
                rights,
                remedies or powers provided by law.

            

    

     

    
      	26.3  	
              Any
                waiver of a breach of any of the terms of this Agreement or of any
                default
                under this Agreement shall not be deemed a waiver of any other breach
                or
                default and shall not affect the other terms of this
                Agreement.

            

    

     

    
      	27.  	
              Counterparts

            

    

     

    This
      Agreement may be executed in any number of counterparts and by the parties
      on
      separate counterparts, but shall not be effective until each party has executed
      at least one counterpart. Each counterpart, when executed, shall be an original
      of this Agreement and all counterparts shall together constitute one
      instrument.

     

    
      	28.  	
              Costs
                and Expenses

            

    

     

    All
      costs
      and expenses incurred by or on behalf of the parties to this Agreement in
      connection with this Agreement or any of the documents to be executed pursuant
      to this Agreement will be borne solely by the party who incurs them (and, for
      the avoidance of doubt, any fees, charges, disbursements or other remuneration
      payable in respect of the Independent Accountant shall be borne as the
      Independent Accountant shall determine).

     

    
      	29.  	
              Governing
                Law, Jurisdiction
                and Service of Process

            

    

     

    
      	29.1  	
              This
                Agreement shall be governed by and construed in accordance with the
                laws
                of England and Wales. The parties irrevocably submit to the exclusive
                jurisdiction of the Courts of England and Wales in relation to any
                legal
                action or proceedings arising out of or in connection with this
                Agreement.

            

    

     

    
      	29.2  	
              The
                Seller shall at all times maintain an agent for service of process
                and any
                other documents in proceedings in England. Such agent shall be JF
                at 459,
                Anchor House, Riverside West, Smugglers Way, London. SW18 1EX and
                any
                claim form, judgment or other notice of legal process shall be
                sufficiently served on the Seller if delivered to such agent at its
                address for the time being.

            

    

     

    IN
      WITNESS of
      which
      this document has been executed and delivered as a deed on the day and year
      first before written.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 1  

    The
      Companies

    Mixed
      Martial Arts Productions Limited

    

    
      	
              Registered
                Number

               

            	
              05097799

               

            
	
              Date
                of Incorporation

               

            	
              7
                April 2004

               

            
	
              Place
                of Incorporation

               

            	
              England
                and Wales

               

            
	
              Former
                Name

               

            	
              None

               

            
	
              Registered
                Office

               

            	
              Suite
                4 1st
                Floor

              4
                Morie Street

              London

              SW18
                1SL

            
	
              Directors

               

            	
              AMB
                Management Services Ltd 

               

              Andrew
                Geer

               

              David
                O’Donnell

               

            
	
              Company
                Secretary

               

            	
              AMB
                Management Services Ltd

               

            
	
              Authorised
                Share Capital

               

            	
              £1,000
                divided into 1,000 shares of £1.00 each

               

            
	
              Issued
                Share Capital 

               

            	
              £1,000
                divided into 1,000 shares of £1.00 each

               

            
	
              Shareholders

               

            	
              Belgravia
                Entertainment International Ltd 

              999
                Ordinary Shares

               

              AMB
                Management Services Ltd (as nominee for the Seller)

              1
                Ordinary Share

            
	
              Accounting
                Reference Date

               

            	
              31
                December

            
	
              Auditors

               

            	
              None

            
	
              Outstanding
                Charges

               

            	
              None

            
	
              Subsidiaries

               

            	
              None

            

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Mixed
      Martial Arts Promotions Limited

     

    
      	
              Registered
                Number

               

            	
              05098337

               

            
	
              Date
                of Incorporation

               

            	
              7
                April 2004

               

            
	
              Former
                Name

               

            	
              None

               

            
	
              Registered
                Office

               

            	
              Suite
                4 1st
                Floor

              4
                Morie Street

              London

              SW18
                1SL

            
	
              Directors

               

            	
              AMB
                Management Services Ltd 

               

              Andrew
                Geer

               

              David
                O’Donnell

               

            
	
              Company
                Secretary

               

            	
              AMB
                Management Services Ltd

               

            
	
              Authorised
                Share Capital

               

            	
              £1,000
                divided into 1,000 shares of £1.00 each

               

            
	
              Issued
                Share Capital 

               

            	
              £1,000
                divided into 1,000 shares of £1.00 each

               

            
	
              Shareholders

               

            	
              Belgravia
                Entertainment International Ltd 

              999
                Ordinary Shares

               

              AMB
                Management Services Ltd (as nominee for the Seller)

              1
                Ordinary Share

            
	
              Accounting
                Reference Date

               

            	
              31
                December

            
	
              Auditors

               

            	
              None

            
	
              Outstanding
                Charges

               

            	
              None

            
	
              Subsidiaries

               

            	
              None

            

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 2

    BEI
      Contracts

     

    
      	 	
              Agreement

               

            	
              Parties

               

            	
              Object

               

            	
              Date

               

            
	
              1.

               

            	
              TFN
                Licence Agreement (DRAFT)

               

            	
              Belgravia
                Entertainment International Ltd (BVI) or its Nominees C/O AMB Management
                Services Ltd (1) The Fight Network (“TFN”) (2)

               

            	
              Draft
                contract relating to the programme “Cage Fighter” - granting TFN an
                exclusive licence to exploit the programme “Cage Fighter” throughout
                Canada and the United States.

               

            	
              Undated

               

            
	
              2.

               

            	
              Partnership
                & Shareholding Agreement

               

            	
              Belgravia
                Entertainment International Ltd (1) Mr Andrew Geer and Mr David O’Donnell
                trading in partnership as Elite Promotions (”EP”) (2)

               

            	
              Agreement
                to incorporate MMAP and transfer the business of EP to MMAP.

               

            	
              Signed
                and dated 29 March 2004

               

            
	
              3.

               

            	
              Shareholding
                and Funding Agreement

               

            	
              Mixed
                Martial Arts Promotions Limited (1) Integrated Technologies & Systems
                Ltd (2) Belgravia Entertainment International Ltd (3) Andrew Geer
                (4) and
                David O’Donnell (5)

               

            	
              Agreement
                to provide a loan facility to MMAP and to transfer ownership of brand
                names “Cage Rage” “Cage Rage Championship” and “Cage Rage Contenders”
                together with all rights and titles from MMAP to Belgravia Entertainment
                International Limited.

               

            	
              Signed
                and dated 15 August 2006

               

            

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 3

    Part
      1: The Warranties

     

    
      	1.  	
              Seller’s
                Capacity and Activities

            

    

     

    
      	1.1  	
              The
                Seller is duly incorporated and validly existing under the laws of
                its
                place of incorporation.

            

    

     

    
      	1.2  	
              The
                Seller has the legal right and full power and authority to enter
                into and
                carry out the provisions of this Agreement and any other documents
                or
                agreements to be executed by the Seller pursuant to or in connection
                with
                this Agreement. 

            

    

     

    
      	1.3  	
              The
                Seller has obtained all necessary authorisations and applicable
                governmental, statutory, regulatory or other consents (including,
                if
                required, from its shareholders), licences, waivers or exemptions
                required
                to empower it to enter into and carry out the provisions of this
                Agreement
                (copies of which are attached to the Disclosure
                Letter).

            

    

     

    
      	1.4  	
              The
                execution, delivery of and the performance by the Seller of its
                obligations under this Agreement and all other documents to be executed
                by
                the Seller pursuant to this Agreement will not result in:
                

            

    

     

    
      	(a)  	
              a
                breach of or give any third party a right to terminate or modify
                or result
                in the creation of any Encumbrance under any agreement, licence or
                other,
                instrument relating to the Business or the Companies;
                

            

    

     

    
      	(b)  	
              a
                breach of the articles of association, memorandum of association,
                by-laws
                or equivalent constitutive document of any of the Seller or either
                of the
                Companies; or

            

    

     

    
      	(c)  	
              a
                breach of any order, judgement or decree of any court, governmental
                agency
                or regulatory body to which the Seller is party or by which the Seller
                is
                bound and which is relevant to the Business or the Companies.
                

            

    

     

    
      	1.5  	
              This
                Agreement constitutes and imposes valid legal and binding obligations
                on
                the Seller and JF, fully enforceable in accordance with its
                terms.

            

    

     

    
      	1.6  	
              The
                Seller has at all times carried on the Business in all respects in
                accordance with any documents to which it is a party.
                

            

    

     

    
      	2.  	
              The
                Shares and the Companies

            

    

     

    
      	2.1  	
              The
                Seller is the sole legal and beneficial owner of, and entitled to
                sell
                with full title guarantee on the terms of this Agreement without
                the
                consent of any third party, the
                Shares.

            

    

     

    
      	2.2  	
              There
                is no Encumbrance on, over or affecting any of the Shares or any
                unissued
                shares, debentures or other securities of the Companies and there
                is no
                agreement or commitment to give or create any Encumbrance or negotiations
                which may lead to such an agreement or commitment.
                

            

    

     

    
      	2.3  	
              Other
                than pursuant to this Agreement, no person has been granted any option
                or
                other right to acquire the Shares or any unissued shares in the capital
                of
                either of the Companies nor has any person been granted any right
                (whether
                exercisable now or in the future and whether contingent or not),
                or
                claimed to have the right, to call for the issue, allotment, conversion,
                redemption, sale or transfer of any shares, debentures or other securities
                of either of the Companies and there are no facts known to the Seller
                which might give rise to any such
                claim.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	2.4  	
              Neither
                the Shares nor any of either of the Company’s assets have been the subject
                of a transaction at an undervalue within the meaning of Part IX or
                Part VI
                of the Insolvency Act 1986.

            

    

     

    
      	2.5  	
              Neither
                Company has received any notice or any application or notice of any
                intended application under the provisions of the Companies Act for
                the
                rectification of the register of members of the
                Company.

            

    

     

    
      	2.6  	
              Neither
                Company has exercised or purported to exercise or claim any lien
                over the
                Shares and no call on the Shares is outstanding
                and all
                the Shares are fully paid up.

            

    

     

    
      	2.7  	
              The
                Shares constitute the whole of the allotted and issued share capital
                of
                each of the Companies at the date of this Agreement, have been properly
                allotted and issued and are fully paid
                up.

            

    

     

    
      	2.8  	
              Neither
                Company has or has ever had any subsidiary or subsidiary undertaking
                and
                neither Company has, and nor has it agreed to acquire, any interest
                in any
                body corporate nor is it liable on any share or security which is
                not
                fully paid up or which carries any
                liability.

            

    

     

    
      	2.9  	
              The
                details of the Companies which are set out in Schedule 1
                are true, accurate and complete and not misleading and the Companies
                are
                duly incorporated and validly existing under the laws of their place
                of
                incorporation. 

            

    

     

    
      	2.10  	
              Neither
                Company has at any time given any financial assistance in connection
                with
                the purchase of shares as would fall within the provisions of Sections
                151
                to 157 of the Companies Act.

            

    

     

    
      	2.11  	
              Neither
                Company acts or carries on business in partnership with any other
                person
                nor is it a member of any partnership or other unincorporated association,
                joint venture or consortium or other profit or income sharing arrangement
                nor has it agreed to do any of the
                foregoing.

            

    

     

    
      	2.12  	
              No
                person is or has been a shadow director of either Company within
                the
                meaning of Section 741(2) of the Companies
                Act.

            

    

     

    
      	2.13  	
              Neither
                Company has any branch, agency or place, business or permanent
                establishment outside the United
                Kingdom.

            

    

     

    
      	2.14  	
              Neither
                Company uses on its letterhead, books or vehicles or otherwise carry
                on
                any business or activities under any name other than its full corporate
                name.

            

    

     

    
      	3.  	
              The
                Accounts

            

    

     

    
      	3.1  	
              The
                Accounts:

            

    

     

    
      	(a)  	
              have
                been prepared in accordance with the historical cost
                convention;

            

    

     

    
      	(b)  	
              give
                a true and fair view of the financial position of the Companies and
                of
                their respective profit or loss and cashflow for the period ending
                on the
                Accounts Date and properly reflect the financial position of the
                Companies
                as at the Accounts Date in all
                respects;

            

    

     

    
      	(c)  	
              comply
                with the requirements of the Companies Act and other relevant
                statutes;

            

    

     

    
      	(d)  	
              comply
                with current statements of standard accounting practice applicable
                to the
                Companies;

            

    

     

    
      	(e)  	
              are
                not affected by any extraordinary or non-recurring
                item;

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	(f)  	
              fully
                disclose all the assets and liabilities (including contingent,
                unquantified or disputed liabilities) of the Companies as at the
                Accounts
                Date;

            

    

     

    
      	(g)  	
              make
                full reserve against all assets, and fully provide for liabilities
                of the
                Companies and for all capital commitments of the Companies (whether
                or not
                quantified or disputed);

            

    

     

    
      	(h)  	
              fully
                provide (or disclose by way of note) for all contingent liabilities
                of the
                Companies at the Accounts Date;

            

    

     

    
      	(i)  	
              make
                adequate provision for depreciation of fixed assets, having regard
                to
                their original cost and estimated life;
                and

            

    

     

    
      	(j)  	
              have
                been prepared on a basis consistent with that used for the preparation
                of
                the accounts of the Companies for the preceding 3 financial
                years.

            

    

     

    
      	3.2  	
              The
                profit and losses of the Companies and the Business shown in the
                Accounts
                were not, affected by any extraordinary, exceptional, unusual or
                non-recurring income, capital gain or expenditure, or by any other
                factor
                known to the Seller rendering any such profit or loss for such period
                exceptionally high or low.

            

    

     

    
      	3.3  	
              The
                Reference Accounts give
                a true and fair view of the financial position of MMAP for the period
                ending on the Completion Date and properly reflect the financial
                position
                of MMAP as at the Completion Date in all respects. 

            

    

     

    
      	4.  	
              Events
                since the Accounts Date

            

    

     

    Since
      the
      Accounts Date:

     

    
      	4.1  	
              the
                Companies have carried on their business in the normal and usual
                course as
                regards its nature, extent and manner of carrying on their business
                so as
                to maintain such business as a going
                concern;

            

    

     

    
      	4.2  	
              neither
                the turnover nor the financial or trading position of the Companies
                has
                deteriorated;

            

    

     

    
      	4.3  	
              there
                has been no Material Adverse Change in the business, operation, assets,
                position (financial, trading or otherwise) profits or prospects of
                the
                Companies, taken as a whole or any event or circumstances that may
                result
                in such a Material Adverse Change; 

            

    

     

    
      	4.4  	
              neither
                of the Companies has borrowed or raised any money or taken any financial
                facility;

            

    

     

    
      	4.5  	
              the
                Seller has paid creditors relating to the Business and the Companies
                have
                paid their creditors in accordance with their respective credit terms
                and
                there are no amounts owing by the Seller in relation to the Business
                or
                the Companies which have been due for more than eight
                weeks;

            

    

     

    
      	4.6  	
              the
                trading prospects of the Companies or the Business have not been
                adversely
                affected as a result of any event or circumstance which has arisen
                since
                the Accounts Date;

            

    

     

    
      	4.7  	
              neither
                the Seller nor any of the Companies have done or omitted to do anything
                which might prejudicially affect the
                Goodwill;

            

    

     

    
      	4.8  	
              there
                has been no unusual change in the stock levels, current assets or
                liabilities of the Business or the Companies;

            

    

     

    
      	4.9  	
              none
                of the stock reflected in the Accounts has realised an amount less
                than
                the value that was placed on it in the
                Accounts;

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	4.10  	
              neither
                the Companies nor the Business have been adversely affected by the
                loss of
                or material reduction in orders from any customer or client or the
                loss of
                or material reduction in any source of supply or by any abnormal
                factor
                not affecting similar businesses to a like extent and, neither the
                Seller
                nor either of the Companies is aware of any facts which are likely
                to give
                rise to any such adverse effects;

            

    

     

    
      	4.11  	
              no
                changes have been made in the terms of employment, emoluments, benefits
                or
                conditions of service of any Employee or to benefits provided to
                any
                person engaged to any extent in the Business or the Companies (now
                or in
                the past) or any dependants of such person, or to the terms of any
                agreement or arrangement (whether written or unwritten and whether
                binding
                or not) with any trade union, employee representative or body of
                employees
                or their representative;

            

    

     

    
      	4.12  	
              the
                Companies have not acquired or disposed of, or agreed to acquire
                or
                dispose of, any asset other than trading stock in the ordinary and
                usual
                course of business, or assumed or incurred, or agreed to assume or
                incur,
                any capital commitment or liability (actual or
                contingent);

            

    

     

    
      	4.13  	
              no
                debtor of the Business or the Companies has been released by the
                Seller or
                the Companies on terms that it pays less than the book value of any
                debt
                and no debt has been written off or has proved to be irrecoverable
                to any
                extent, and there has been no change in the manner or time of the
                issue of
                invoices or the collection of
                debts;

            

    

     

    
      	4.14  	
              the
                Companies have not entered into any transaction or assumed or incurred
                any
                liabilities (including contingent liabilities) or made any payment
                not
                provided for in the Accounts otherwise than in the ordinary course
                of
                business; and

            

    

     

    
      	4.15  	
              neither
                the Business nor the Companies have been affected by the loss of
                any
                customer or client who accounted for 5 per cent. or more of the turnover
                of the Business or any source of supply which accounted for 5 per
                cent. or
                more of the goods, services or equipment supplied to the Business
                or the
                Companies or any abnormal factor not affecting similar businesses
                to a
                like extent and there are no facts or circumstances which are likely
                to
                give rise to any of the same. 

            

    

     

    
      	5.  	
              Insolvency
                

            

    

     

    
      	5.1  	
              No
                distress, execution or other process has been levied against the
                Seller or
                the Companies, nor any action taken to repossess any goods of the
                Business
                in the Seller’s or the Companies’
possession.

            

    

     

    
      	5.2  	
              No
                order has been made, petition presented or resolution passed for
                the
                winding-up of the Seller or the
                Companies.

            

    

     

    
      	5.3  	
              No
                receiver (including an administrative receiver), trustee or administrator
                has been appointed which relates to or would or might affect the
                Companies
                or the Business and the Seller is not aware of any circumstances
                likely to
                give rise to the appointment of any such receiver, trustee or
                administrator.

            

    

     

    
      	5.4  	
              No
                moratorium, composition, voluntary arrangement or other arrangement
                with
                creditors has been instituted or proposed by or in respect of the
                Seller
                or the Companies.

            

    

     

    
      	5.5  	
              Neither
                the Seller nor either of the Companies have been a party to any
                transaction with any third party or parties which relates to or would
                or
                might affect the Companies or the Business and which would, if any
                such
                third party went into liquidation or had a bankruptcy or administration
                order made in relation to it, constitute (in whole or in part) a
                transaction at an undervalue, preference or invalid floating charge,
                or
                otherwise would or might constitute any other transaction or transfer
                at
                an undervalue or involving an unauthorised reduction of
                capital.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	6.  	
              Ownership
                of assets

            

    

     

    
      	6.1  	
              The
                Companies have legal, beneficial and marketable title to all material
                assets of the Companies which are included in the Accounts or have
                otherwise been presented as being the property of the Companies or
                which
                were at the Accounting Date used or held by them and each Company
                retains
                such title to such assets free from any Encumbrance, hire or hire
                purchase
                agreement or leasing agreement or agreement for payment on deferred
                terms
                and all such assets are in the possession and control of the Companies
                and
                are sited within the United
                Kingdom.

            

    

     

    
      	6.2  	
              The
                Companies have legal, beneficial and marketable title to all material
                assets which have been acquired by the Companies since the Accounting
                Date
                and the same are in the possession and control of the Companies and
                sited
                within the United Kingdom and none is the subject of any Encumbrance
                nor
                has either Company created or agreed to create any Encumbrance or
                entered
                into any factoring arrangement, hire purchase, conditional sale or
                credit
                sale agreement which has not been Disclosed and in respect of any
                such
                Encumbrance, arrangement or agreement so Disclosed there has been
                no
                default by the Companies in the performance or observance of any
                of the
                provisions thereof.

            

    

     

    
      	6.3  	
              The
                assets of the Companies comprise all of the assets necessary for
                the
                continuation of the Business in the manner in which the Business
                is
                carried on at the Accounts Date and at
                Completion.

            

    

     

    
      	6.4  	
              The
                plant, machinery, equipment and vehicles used in connection with
                the
                Business:

            

    

     

    
      	(a)  	
              are
                in the possession and under the control of the
                Companies;

            

    

     

    
      	(b)  	
              are
                in a good state of repair and condition and satisfactory working
                order;

            

    

     

    
      	(c)  	
              have
                been regularly and properly maintained;
                and

            

    

     

    
      	(d)  	
              are
                adequate for and not surplus to the requirements of the
                Business.

            

    

     

    
      	7.  	
              Books
                and Records

            

    

     

    
      	7.1  	
              All
                the unaudited books and records of each of the Companies which are
                to be
                delivered to the Purchaser in accordance with this
                Agreement:

            

    

     

    
      	(a)  	
              are
                in the possession of the Companies;

            

    

     

    
      	(b)  	
              have
                been fully, properly and accurately kept and
                completed;

            

    

     

    
      	(c)  	
              do
                not contain any material inaccuracies or discrepancies of any kind;
                and

            

    

     

    
      	(d)  	
              give
                and reflect a true and fair view of the financial, contractual and
                trading
                position of the Companies and the Business and of its plant and machinery
                fixed and current assets and liabilities (actual and contingent),
                debtors
                and creditors and stock in trade and all other matters which would
                normally be expected to appear in
                them.

            

    

     

    
      	7.2  	
              Where
                any records of the Companies and the Business are kept on computer,
                the
                Seller:

            

    

     

    
      	(a)  	
              is
                the owner of all software and hardware necessary to enable it to
                access
                and use those records and does not share such software and/or hardware
                with any other person; and

            

    

     

    
      	(b)  	
              maintains
                adequate back-up and support in the event of any fault or failure
                of such
                computer software or hardware.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	8.  	
              Insurance

            

    

     

    
      	8.1  	
              Full
                details of all insurances and copies of all insurance policies relating
                to
                the Companies and the Business are contained in the Disclosure
                Letter.

            

    

     

    
      	8.2  	
              The
                insurance policies maintained by or on behalf of the Companies provide
                full indemnity cover against all losses and liabilities, including
                business interruption and other risks that are normally insured against
                by
                a person carrying on the same type of business as the
                Companies.

            

    

     

    
      	8.3  	
              All
                insurances relating to the Companies or the Business are currently
                in full
                force and effect and nothing has been done or omitted to be done
                which
                could make any policy of insurance void or voidable or whereby their
                renewal may be refused or their premiums likely to be
                increased.

            

    

     

    
      	8.4  	
              No
                insurance policies held by the Seller in respect of the Business
                or held
                by the Companies are subject to any special or unusual terms or
                restrictions or to the payment of any premium in excess of the normal
                rate. 

            

    

     

    
      	8.5  	
              There
                are no material outstanding claims under, or in respect of the validity
                of, any of the insurance policies held by the Seller in respect of
                the
                Business or the Companies and there are no circumstances likely to
                give
                rise to any claim under any of those policies.

            

    

     

    
      	9.  	
              Guarantees
                and Indemnities

            

    

     

    There
      is
      not now outstanding in respect of the Companies or the Business any guarantee
      or
      agreement for indemnity or for suretyship given by or for the
      Business.

     

    
      	10.  	
              Contracts

            

    

     

    
      	10.1  	
              All
                of the material contracts to which either of the Companies is a party
                have
                been Disclosed (the “Company
                Contracts”).

            

    

     

    
      	10.2  	
              Save
                with respect to the Seller being party to the BEI Contracts, the
                Seller
                has no involvement with the Business
                whatsoever.

            

    

     

    
      	10.3  	
              The
                BEI Contracts constitute all the contracts and other engagements
                whether
                written or oral referable to the Business to which the Seller is
                a party
                and true and complete copies of all of the Contracts have been Disclosed.
                Except for the BEI Contracts and the Company Contracts, there are
                no
                contracts, arrangements, licences or other commitments involving
                obligations or liabilities in respect of either of the Companies
                or the
                Business. 

            

    

     

    
      	10.4  	
              None
                of the BEI Contracts or the Company
                Contracts:

            

    

     

    
      	(a)  	
              is
                of an unusual, abnormal or onerous
                nature;

            

    

     

    
      	(b)  	
              is
                for a fixed term of more than six
                months;

            

    

     

    
      	(c)  	
              is
                incapable of performance in accordance with its terms within six
                months
                after the date on which it was entered into or
                undertaken;

            

    

     

    
      	(d)  	
              will
                be incapable of termination in accordance with its terms by the Purchaser
                on 60 days’ notice or less;

            

    

     

    
      	(e)  	
              would
                or might have been likely to result in a loss to the Seller on completion
                of performance if the Seller had not sold the
                Companies;

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	(f)  	
              is
                incapable of being readily fulfilled or performed by the Purchaser
                on time
                without undue or unusual expenditure of money or
                personnel;

            

    

     

    
      	(g)  	
              will
                involve payment by the Purchaser by reference to fluctuations in
                the index
                of retail prices or any other
                index;

            

    

     

    
      	(h)  	
              involves
                the supply of goods the aggregate sales value of which will represent
                in
                excess of 10 per cent. of the anticipated turnover of either of the
                Companies for the period of 12 months following
                Completion;

            

    

     

    
      	(i)  	
              were
                entered into in any way otherwise than in the ordinary course of
                business
                and on an arm’s length basis.

            

    

     

    
      	10.5  	
              The
                performance of this Agreement will not relieve any other party to
                any BEI
                Contract or Contract from its obligations or enable it to determine
                any of
                them.

            

    

     

    
      	10.6  	
              Neither
                the Seller nor any of the Companies
                is:

            

    

     

    
      	(a)  	
              in
                default under any of the Company Contracts or BEI Contracts or in
                respect
                of any other obligations or restrictions binding upon them in relation
                to
                the Business nor have they waived any rights or privileges under
                any of
                them;

            

    

     

    
      	(b)  	
              in
                default under any provisions existing by reason of membership of
                any
                association or body relating to the Business;
                or

            

    

     

    
      	(c)  	
              liable
                in respect of any representation or warranty (whether express or
                implied)
                or matter giving rise to a duty of care relating to the
                Business.

            

    

     

    
      	10.7  	
              There
                are no grounds for the invalidity of or for rescission, avoidance
                or
                repudiation of any of the BEI Contracts or the Company Contracts.
                No
                threat or claim of default under any of the BEI Contracts, Company
                Contracts, or any other agreement, instrument or arrangement to which
                the
                Companies or the Seller is a party relating to the Business has been
                made
                and is outstanding against the Seller, the Companies or the contracting
                party and there is nothing whereby any of the BEI Contracts, Company
                Contracts or any other such agreement, instrument or arrangement
                may be
                terminated or rescinded by any other party or whereby the terms may
                be
                worsened as against the Seller, the Purchaser or the Companies or
                whereby
                the Companies or the Business may be prejudiced as a result of anything
                done or omitted or permitted to be done by the Seller or the Companies.
                No
                notice of any intention to do any of the foregoing has been received
                or
                given by the Seller or the
                Companies.

            

    

     

    
      	10.8  	
              Neither
                the Seller nor either of the Companies has any knowledge of the invalidity
                of, or any grounds for termination, avoidance or repudiation of any
                of the
                BEI Contracts or the Company Contracts. No party to any of the BEI
                Contracts or the Company Contracts:

            

    

     

    
      	(a)  	
              has
                given notice of its intention to terminate, or has sought to repudiate
                or
                disclaim, such BEI Contracts or Company Contracts;
                or

            

    

     

    
      	(b)  	
              is
                in breach of the relevant BEI Contract or Company Contract and no
                matter
                exists which might give rise to such breach.

            

    

     

    
      	10.9  	
              No
                offer, tender or the like relating to the Business which is capable
                of
                being converted into an obligation of the Business or the Companies
                by an
                acceptance or other act of some other person firm or corporation
                is
                outstanding.

            

    

     

    
      	10.10  	
              Neither
                the Seller, the Companies nor any person connected to or associated
                with
                the Seller or the Companies has any direct or indirect interest in
                any
                business which has a close trading relationship with the Business
                or the
                Companies, or which is or is likely to become competitive with the
                Business or the Companies. 

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	10.11  	
              The
                Seller has obtained all necessary consents for the valid and binding
                assignment of the BEI Contracts to the Purchaser in accordance with
                the
                terms of this Agreement.

            

    

     

    
      	11.  	
              Power
                of Attorney

            

    

     

    
      	11.1  	
              There
                are no powers of attorney in force given by either of the
                Companies.

            

    

     

    
      	11.2  	
              No
                person, as agent or otherwise, is entitled or authorised to bind
                or commit
                either of the Companies to any obligation not in the ordinary course
                of
                either of the Companies’ business.

            

    

     

    
      	11.3  	
              The
                Disclosure Letter sets out details of all persons who have authority
                to
                bind either of the Companies in the ordinary course of
                business.

            

    

     

    
      	12.  	
              Disputes
                and Investigations

            

    

     

    
      	12.1  	
              Neither
                of the Companies nor any person for whom either Company is vicariously
                liable:

            

    

     

    
      	(a)  	
              is
                engaged in any litigation, administrative, mediation or arbitration
                proceedings or other proceedings or hearings before any statutory
                or
                governmental body, department, board or agency (except for debt collection
                in the normal course of business);
                or

            

    

     

    
      	(b)  	
              is
                the subject of any investigation, inquiry or enforcement proceedings
                by
                any governmental, administrative or regulatory
                body.

            

    

     

    
      	12.2  	
              No
                director of either of the Companies are, to the extent that it relates
                to
                the Business engaged in or subject to any of the matters mentioned
                in
                paragraph 12.3
                below.

            

    

     

    
      	12.3  	
              No
                such proceedings, investigation or inquiry as are mentioned in
                paragraph 12.1
                and 12.2
                above have been threatened or are pending and so far as the Seller
                is
                aware there are no circumstances likely to give rise to any such
                proceedings.

            

    

     

    
      	12.4  	
              Neither
                Company is affected by any existing or pending judgments or rulings
                and
                neither Company has given any undertakings arising from legal proceedings
                to a court, governmental agency, regulator or third party.

            

    

     

    
      	13.  	
              Agreements
                Concerning the Business

            

    

     

    
      	13.1  	
              There
                are not and have not at any time prior to Completion been any
                arrangements, contracts or and/or understandings (whether legally
                enforceable or not) between the Seller, the Companies or any person
                connected to the Seller or the Companies and relating to the management
                of
                the Business or the ownership or transfer of ownership or the letting
                of
                any of the assets belonging to the Companies or relating to the Business
                or the provision of finance, goods, services or any other facilities
                to or
                by the Seller or otherwise in any way relating to the Companies,
                the
                Business or any assets relating to the Business or owned by the
                Companies.

            

    

     

    
      	13.2  	
              Neither
                the Seller nor the Companies have been a party to any agency,
                distributorship, marketing, purchasing, manufacturing or licensing
                agreement or arrangement or any restrictive trading or other agreement
                or
                arrangement pursuant to which any part of the Business has been carried
                on
                or which in any way has restricted the Seller’s or the Companies’ freedom
                to carry on the whole or any part of the Business in any part of
                the world
                in such manner as the Seller or the Companies thought
                fit.

            

    

     

    
      	13.3  	
              Neither
                the Seller nor the Companies are, in connection with the Business,
                party
                to or liable for any guarantee, indemnity or other arrangement to
                secure
                or incur any financial or other obligation of any other
                person.

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	13.4  	
              Details
                of all arrangements pursuant to which the Companies and the Business
                makes
                sales on a “sale or return” basis are Disclosed together with details of
                the basis and frequency of “returns” customarily accepted by the Business.
                

            

    

     

    
      	14.  	
              Customers
                and Suppliers

            

    

     

    
      	14.1  	
              Neither
                more than 5 per cent. of the aggregate amount of all the purchases
                nor
                more than 5 per cent. of the aggregate amount of all the sales of
                the
                Companies are obtained or made from or to the same supplier or customer
                (including any person in any way connected with a supplier or customer)
                nor is any material source of supply to the Companies or any material
                outlet for the sales of the Companies at risk or likely to be at
                risk of
                failing.

            

    

     

    
      	14.2  	
              No
                supplier of the Business have, in the past three years, ceased or
                will (as
                a result of the acquisition of the Companies by the Purchaser or
                for any
                other reason) cease supplying and no supplier of the Business has
                expressed its intention to cease supplying the Business or may
                substantially reduce its supplies to the
                Business.

            

    

     

    
      	14.3  	
              No
                customer of the Business has in the past three years terminated or
                materially reduced or will (as a result of the acquisition of the
                Business
                by the Purchaser or for any other reason) terminate or materially
                reduce
                its relationship with the Business and no customer of the Business
                has
                expressed its intention to terminate or materially reduce its relationship
                with the Business.

            

    

     

    
      	15.  	
              Joint
                Ventures and Partnerships

            

    

     

    Neither
      the Seller nor the Companies:

     

    
      	15.1  	
              are
                and have been a party to any joint venture or consortium or any
                partnership arrangement or agreement or to any agreement or arrangement
                for sharing commissions or other income relating to the
                Business;

            

    

     

    
      	15.2  	
              conduct
                and have conducted any part of the Business through a branch agency
                or
                permanent establishment outside the United Kingdom;
                and

            

    

     

    
      	15.3  	
              is
                a member of any partnership, trade association, society or other
                group
                whether formal or informal and whether or not having a separate legal
                identity in connection with the Business and no such body is relevant
                to
                or has any material influence over the Companies or the Business
                as now
                carried on.

            

    

     

    
      	16.  	
              Defective
                Products and Service
                Liabilities

            

    

     

    
      	16.1  	
              Neither
                the Seller nor the Companies have manufactured or sold products or
                provided any services which were or are or will become in any respect
                faulty, defective or dangerous or which did not or do not comply
                in any
                respect with any warranties or representations expressly or impliedly
                made
                by the Seller or the Companies or with all applicable regulations,
                standards and requirements.

            

    

     

    
      	16.2  	
              The
                Seller and the Companies have at all times up to the date of this
                Agreement maintained adequate quality control and safety tests and
                procedures in respect of all products manufactured, produced and/or
                supplied by the Business or the Companies and such quality control
                and
                safety tests and procedures are sufficient for the purposes of identifying
                any potential harmful dangers or defects in such products.
                

            

    

     

    
      	16.3  	
              The
                Seller and the Companies have obtained all necessary third party
                authorisations and consents required to sell all products manufactured,
                produced and/or supplied by the Business and the Companies and where
                any
                written approvals or consents are required the Seller and the Companies
                have complete, accurate and up to date copies of the
                same.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	16.4  	
              Neither
                the Seller nor the Companies have accepted any liability or obligation
                to
                service, repair, maintain take back or otherwise do or not do anything
                in
                respect of any goods or products that would apply after the goods
                or
                products have been delivered by it.

            

    

     

    
      	16.5  	
              Neither
                the Seller nor the Companies have given any guarantee or warranty
                (other
                than any implied by law) or made any representation in respect of
                any
                product or services sold or supplied by the Business nor has it accepted
                any liability to service, maintain, repair or otherwise do or refrain
                from
                doing anything in relation to such goods or services after they have
                been
                sold or supplied by it except for those contained in the standard
                terms
                and conditions of trading of the Business, complete and accurate
                copies of
                which are Disclosed in the Disclosure
                Letter.

            

    

     

    
      	17.  	
              Intellectual
                Property Rights

            

    

     

    
      	17.1  	
              Full
                and complete details of all Intellectual Property Rights and copies
                of any
                licences and other agreements relating to them are Disclosed in the
                Disclosure Letter.

            

    

     

    
      	17.2  	
              The
                Companies are the sole beneficial owner, registered proprietor or
                licensee
                of all of the Intellectual Property Rights, free from any claims
                of any
                third party and the Purchaser will not be required to make any payment
                of
                any nature for or in connection with the acquisition or exploitation
                of
                such rights and the acquisition or exploitation of such rights by
                the
                Purchaser will not give rise to any claims by any third
                party.

            

    

     

    
      	17.3  	
              No
                Intellectual Property other than the Intellectual Property Rights
                is
                required in order to carry on the Business.

            

    

     

    
      	17.4  	
              Each
                of the Intellectual Property Rights is valid and enforceable and
                no act
                has been done or omission permitted whereby any of them has ceased
                or
                might cease to be valid and
                enforceable.

            

    

     

    
      	17.5  	
              All
                Intellectual Property Rights which are capable of registration have
                been
                registered or are the subject of an application for registration
                and is or
                will be when registered valid, binding and enforceable
                and:

            

    

     

    
      	(a)  	
              in
                the case of registrations, all renewal fees have been paid and renewals
                made by their due date and all such action necessary to preserve
                and
                maintain the registration has been
                taken;

            

    

     

    
      	(b)  	
              in
                the case of registrations contained in the Disclosure Letter each
                is
                presently used by the Companies and is in full force and effect and
                has
                not been abandoned;

            

    

     

    
      	(c)  	
              in
                the case of pending applications, there are no reasons why such
                applications should not proceed to grant;
                and

            

    

     

    
      	(d)  	
              none
                of the Intellectual Property Rights are subject to any use, claim,
                application or attack by any other
                person.

            

    

     

    
      	17.6  	
              No
                licences, registered user or other rights have been granted or agreed
                to
                be granted by the Seller or the Companies to any person in respect
                of any
                Intellectual Property Rights.

            

    

     

    
      	17.7  	
              No
                third parties have any right, title or interest in any of the Intellectual
                Property Rights.

            

    

     

    
      	17.8  	
              There
                has been no unauthorised use or infringement by any person of any
                Intellectual Property Rights at any time during the five year period
                prior
                to Completion.

            

    

     

    
      	17.9  	
              None
                of the processes employed or products or services dealt in by the
                Companies or the Business infringes any rights of any third party
                relating
                to any Intellectual Property or makes the Seller or the Companies
                liable
                to pay any fee or royalty and no claims have been made threatened
                or are
                pending in relation to any such intellectual
                property.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	17.10  	
              The
                Seller has good title to the benefits of the BEI Contracts and the
                Companies have good title to the benefits of Company Contracts to
                enable
                them to use the same and such BEI Contracts or Company Contracts
                are
                capable of assignment/transfer to the
                Purchaser.

            

    

     

    
      	18.  	
              Infringements

            

    

     

    
      	18.1  	
              Neither
                the Business or the Companies are likely to infringe any patent,
                registered design, trade mark, copyright or other Intellectual Property
                or
                industrial property right of any other person (or would not do so
                if the
                same were valid) or give rise to a liability to pay compensation
                pursuant
                to the Patents Act 1977 sections 40 and
                41.

            

    

     

    
      	18.2  	
              Neither
                the Seller nor the Companies require and have not been granted any
                licence
                in relation to any Intellectual Property other than the licences
                Disclosed
                in the Disclosure Letter.

            

    

     

    
      	18.3  	
              No
                right has been granted to any person to do anything which would or
                might
                otherwise infringe any of the Intellectual Property
                Rights.

            

    

     

    
      	19.  	
              The
                IT System

            

    

     

    
      	19.1  	
              The
                IT System:

            

    

     

    
      	(a)  	
              is
                in satisfactory operating order and fulfilling the purposes for which
                it
                was acquired or established in an efficient manner without material
                failures, downtime or errors;

            

    

     

    
      	(b)  	
              has
                adequate capacity for the present needs of the Business and the Companies
                and (taking into account the extent to which the computer systems
                are
                expandable) reasonably foreseeable future needs;
                

            

    

     

    
      	(c)  	
              on
                the date of this Agreement, has adequate security, back-up systems,
                duplication, hardware and software support and maintenance (including
                emergency cover) and trained personnel to ensure that breaches of
                security, errors and breakdowns are kept to a minimum and that the
                availability, confidentiality and integrity of data held or transmitted
                by
                the IT System are preserved;

            

    

     

    
      	(d)  	
              is
                under the sole control of the Companies, located at the Premises,
                not
                shared with or used by or on behalf of or accessible by any other
                person
                and is owned by the Companies; and

            

    

     

    
      	(e)  	
              complies
                with and is used in accordance with the Data Protection Legislation.
                

            

    

     

    
      	19.2  	
              The
                Companies have not suffered any major failures or bugs in or breakdowns
                of
                the IT System (including hardware and/or software) which have resulted
                in
                significant or repeated disruption or loss or interruption in or
                to its
                use and there is no fact or matter which may be expected to so disrupt
                or
                interrupt or affect the use of the IT System on the same basis as
                presently used following the acquisition by the Purchaser of the
                Shares
                and the Business pursuant to this Agreement.

            

    

     

    
      	19.3  	
              All
                software used on or stored or resident in the IT
                System:

            

    

     

    
      	(a)  	
              performs
                satisfactorily and without any apparent defect;

            

    

     

    
      	(b)  	
              is
                lawfully held and used and does not infringe the copyright or other
                Intellectual Property of any person and all copies held have been
                lawfully
                made; and

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              as
                to the copyright therein, in the case of software written or commissioned
                by the Seller, is owned exclusively by the Companies and no other
                person
                has rights therein or rights to use or copy the software or source
                codes,
                and complete written listings and written copies of the source codes
                for
                the software are held by the Companies.

            

    

     

    
      	19.4  	
              No
                person is in a position, by virtue of his rights in, knowledge of
                or
                access to the IT System or any part of it (including software) to
                prevent
                or impair the proper and efficient functioning of the IT System or
                to
                demand any payment in excess of any current licence fee or in excess
                of
                reasonable remuneration for services rendered, or to impose any onerous
                condition, in order to preserve the proper and efficient functioning
                of
                the IT System in the future. 

            

    

     

    
      	19.5  	
              The
                Companies have in force software maintenance agreements and support
                contracts with an independent specialist contractor, the terms of
                which
                are Disclosed, which cover all significant items of hardware and
                software
                used in the Business and there is no reason why those contracts will
                not
                be renewed by the other contracting party upon their expiry or termination
                upon terms substantially similar to those now applicable.
                

            

    

     

    
      	20.  	
              Disclosure
                of Trade Secrets

            

    

     

    Neither
      the Seller nor the Companies have (except in the ordinary and normal course
      of
      business) disclosed or permitted to be disclosed or undertaken or arranged
      to
      disclose to any person other than the Purchaser any of its
      Know-How.

     

    
      	21.  	
              Business
                Names

            

    

     

    
      	21.1  	
              Neither
                the Seller nor the Companies have at any time used in connection
                with the
                Business or carried on the Business under any name other than the
                Business
                Name.

            

    

     

    
      	22.  	
              Employees

            

    

     

    
      	22.1  	
              Particulars
                of the main terms and conditions of employment of each of the Employees
                (including, without limitation, the date of commencement of their
                continuous period of employment, all remuneration, incentives,
                commissions, bonuses, expenses, profit sharing arrangements and other
                payments, and other benefits whatsoever payable) and, where an employee
                has been continuously absent from work for more than one month, the
                reason
                for the absence are set out in the Disclosure Letter. None of such
                Employees has given or received notice terminating their
                employment.

            

    

     

    
      	22.2  	
              There
                are no contracts of service with Employees (whether or not in writing)
                which cannot be terminated by three months’ notice or less without giving
                rise to any claim for damages or compensation (other than a statutory
                redundancy payment or statutory compensation for unfair dismissal)
                and
                neither the Seller nor the Companies have given or received notice
                of
                resignation from any of the Employees and neither the Seller nor
                the
                Companies is aware of any employee who intends to give notice of
                resignation.

            

    

     

    
      	22.3  	
              Save
                as set out in the Disclosure
                Letter:

            

    

     

    
      	(a)  	
              no
                person is employed or engaged by the Companies or otherwise in the
                Business (whether under a contract of service or contract for
                services);

            

    

     

    
      	(b)  	
              there
                has been no offer of employment or engagement to work for the Companies
                or
                otherwise in the Business that has not yet been accepted, or that
                has been
                accepted but the relevant employment or engagement has not commenced
                is
                outstanding or capable of acceptance by any
                person;

            

    

     

    
      	(c)  	
              there
                are no terms and conditions of employment in place for any Employee
                other
                than the Companies’ written standard terms and conditions of employment, a
                copy of which is attached to the Disclosure
                Letter;

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              no
                Employee receives or is entitled (contingently or otherwise) to receive
                any bonus, commission, variable remuneration, insurance, benefit
                in kind,
                motor vehicle for private use or other reward other than wages or
                salary
                at a fixed rate; and

            

    

     

    
      	(e)  	
              no
                arrangement has been made with, or facility afforded to, or understanding
                reached with (whether or not such has been regarded by the Seller
                or
                either Company as part of the contract of employment) any
                Employee.

            

    

     

    
      	22.4  	
              Neither
                the Seller nor the Companies are obliged to increase the total annual
                remuneration payable to the Employees other than as set out in their
                terms
                and conditions of employment, copies of each of which are attached
                to the
                Disclosure Letter. Neither the Seller nor the Companies have offered
                or
                agreed to increase the present remuneration of, or altered or sought
                to
                alter the terms and conditions of employment of any of the Employees
                and
                no negotiations in relation to the same are current or likely to
                be
                requested by any Employee within a period of 6 months after
                Completion.

            

    

     

    
      	22.5  	
              There
                is no liability, outstanding or contingent or anticipated, to any
                Employee
                or former employee of the Companies or the Business (including in
                respect
                of any PAYE, national insurance and/or pension contributions) other
                than
                remuneration accrued for the current wage or salary period or for
                reimbursement of normal business expenses and no Employee or former
                employee of the Companies or the Business
                has:

            

    

     

    
      	(a)  	
              any
                claim, outstanding or contingent or anticipated, against the Seller,
                the
                Companies or the Business;

            

    

     

    
      	(b)  	
              a
                right to be indemnified by the Seller, the Companies or the Business
                arising out of an act or omission in the course of their employment
                or in
                relation to the termination of that employment on or before the date
                of
                this Agreement (whether under the Employment Rights Act 1996, Race
                Relations Act 1976, Equal Pay Act 1970, Sex Discrimination Act 1975,
                Sex
                Discrimination Act 1986, Disability Discrimination Act 1995, Working
                Time
                Regulations 1998, National Minimum Wage Act 1998 and the regulations
                made
                under such acts or regulations or any other act or
                otherwise),

            

    

     

    and,
      so
      far as the Seller is aware there are no facts that might give rise to the same.
      

     

    
      	22.6  	
              All
                amounts due for payment to Customs in respect of income tax deductible
                prior to Completion by virtue of the PAYE regulations for the time
                being
                in force and all national insurance contributions (both employer’s and
                employee’s) due in respect of the Employees have been duly paid and there
                is no outstanding undischarged Liability to pay to any governmental
                or
                regulatory authority in any jurisdiction and no contribution, taxation
                or
                other impost arising in connection with the employment or engagement
                of
                any person in the Business.

            

    

     

    
      	22.7  	
              In
                relation to each of the Employees, the Seller and the Companies
                have:

            

    

     

    
      	(a)  	
              complied
                with all obligations imposed on them by articles of the Treaty of
                Rome
                establishing the European Community, European Commission regulations
                and
                directives and all statutes and regulations relevant to the relations
                between them and the Employees;

            

    

     

    
      	(b)  	
              maintained
                up to date, adequate and suitable records regarding the service of
                each of
                the Employees;

            

    

     

    
      	(c)  	
              maintained
                up to date, adequate and suitable records for the purposes of the
                Working
                Time Regulations 1998 and have complied with all other obligations
                to its
                workers (as defined in section 2 of such regulations) under such
                regulations and there are no claims capable of, arising or pending
                or
                threatened by any Employee or former employee of the Business or
                the
                Health and Safety Executive or any local authority, the Environmental
                Health Department or any trade union or employee representative related
                to
                the Working Time Regulations;

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              complied
                with all collective agreements for the time being dealing with such
                relations or the conditions of service of the Employees;
                and

            

    

     

    
      	(e)  	
              complied
                with all relevant orders and awards made under any statute affecting
                the
                conditions of service of the
                Employees.

            

    

     

    
      	22.8  	
              No
                amounts due to or in respect of any of the Employees or any former
                employees of the Business or the Companies are in arrears or
                unpaid.

            

    

     

    
      	22.9  	
              No
                claim for unfair dismissal has been made against the Seller or the
                Companies by any former employee in the last 24
                months.

            

    

     

    
      	22.10  	
              No
                employment conditions of any Employee and nothing that has occurred
                prior
                to the date of this Agreement will give rise to any claim for sex
                discrimination or equal pay either under domestic or European law
                or for
                race discrimination.

            

    

     

    
      	22.11  	
              No
                trade union, works council, staff association or other body representing
                the Employees is recognised in any way for bargaining, information
                or
                consultation purposes and there are no agreements (whether legally
                binding
                or not) with any such representative body in relation to the Employees
                and
                there is no dispute with any such representative body pending, threatened,
                or expected.

            

    

     

    
      	22.12  	
              There
                is no plan, scheme, commitment, policy, custom or practice (whether
                legally binding or not) relating to redundancy affecting any of the
                Employees which is more generous than statutory redundancy requirements.
                

            

    

     

    
      	22.13  	
              There
                is no agreement or arrangement between the Seller or the Companies
                and any
                of the Employees with respect to their employment, their ceasing
                to be
                employed or their retirement which is not included in the written
                terms of
                their employment and there is no agreement, arrangement, scheme or
                obligation for the payment of any pensions, allowances, lump sums
                or other
                like benefits on redundancy on retirement or on death or during periods
                of
                sickness or disablement for the benefit of any of the Employees or
                former
                employees of the Business or for the benefit of dependants of such
                persons.

            

    

     

    
      	22.14  	
              All
                plans, schemes, commitments, policies, custom or practice for the
                provision of benefits to the Employees comply in all respects with
                all
                relevant statutes, regulations and other laws and all necessary consents
                in relation to the same have been obtained and all governmental filings
                in
                relation to the same have been
                made.

            

    

     

    
      	22.15  	
              All
                obligations under statute and otherwise concerning the health and
                safety
                at work of the Employees have been complied
                with.

            

    

     

    
      	22.16  	
              There
                is no litigation, arbitration or mediation or administrative or criminal
                proceedings capable of arising, pending, threatened or expected against
                the Seller, the Companies or the Business by any Employee or former
                employee of the Business or the Companies or third party in respect
                of any
                accident or injury.

            

    

     

    
      	22.17  	
              Save
                as Disclosed, neither the Seller nor either of the Companies is a
                party to
                any consultancy agreements or arrangements (including without limitation
                any arrangements for the provision of management or other services)
                or any
                similar agreement with any person nor to any contract for services
                to be
                provided in relation to the Business by any individual as a
                sub-contractor, outworker or
                otherwise.

            

    

     

    
      	22.18  	
              Neither
                the Seller nor the Companies have:

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              granted
                any loan or quasi-loan to, entered into any guarantee or credit
                transaction with; or

            

    

     

    
      	(b)  	
              provided
                any security in connection with any loan, quasi-loan or credit transaction
                with,

            

    

     

    any
      Employee or any person connected or associated with such a person. 

     

    
      	22.19  	
              Within
                the two years preceding Completion, the Business has not been the
                subject
                of a relevant transfer (as defined in the
                Regulations).

            

    

     

    
      	23.  	
              Pensions

            

    

     

    Neither
      the Seller nor either of the Companies has any outstanding or future liabilities
      whatsoever in connection with any retirement benefits or pension
      schemes.

     

    
      	24.  	
              Licences
                and Consents

            

    

     

    
      	24.1  	
              The
                Seller and the Companies have obtained all necessary licences,
                permissions, authorisations, approvals and consents from any person
                authority or body required for the proper carrying on of the Business
                and
                are not in breach of any of their terms and conditions. There is
                no
                investigation, enquiry or proceeding outstanding or anticipated which
                is
                likely to result in the suspension, cancellation, refusal, modification
                or
                revocation of any such licences, permissions, authorisations, approvals
                or
                consents.

            

    

     

    
      	24.2  	
              Complete
                and accurate details of all of the licences and consents are set
                out in
                the Disclosure Letter and the Seller knows of no reason why they
                should
                not be capable of being transferred to or obtained by the Purchaser
                without the need for any special arrangement or
                expense.

            

    

     

    
      	24.3  	
              All
                reports, returns and information required by law or as a condition
                of any
                such licence, consent, permission, authorisation or approval to be
                made or
                given to any person or authority in connection with the Business
                have been
                given to the appropriate person or
                authority.

            

    

     

    
      	25.  	
              Competition
                and Trade Regulation Law 

            

    

     

    
      	25.1  	
              There
                are no agreements, arrangements or understandings in force restricting
                the
                freedom of the Companies or the Business to provide and take services
                or
                to otherwise conduct its trade and business by such means and from
                and to
                such persons as it may from time to time think fit.
                

            

    

     

    
      	25.2  	
              The
                Seller is not nor has it ever been party to any agreement, arrangement,
                concerted practice or course of conduct in relation to the Companies
                or
                the Business which:

            

    

     

    
      	(a)  	
              is
                or was notifiable by virtue of the provisions of the Competition
                Act 1998
                (“1998
                Act”)
                or is or has been the subject of any inquiry, investigation or proceeding
                under the 1998 Act; 

            

    

     

    
      	(b)  	
              contravenes
                or has been the subject of any inquiry, investigation, reference
                or report
                or was notifiable under the Competition Act 1998, the Enterprise
                Act 2002
                or any secondary legislation made under such acts or has or is intended
                to
                have or is likely to have the effect of restricting, distorting or
                preventing competition in connection with the supply or securing
                of
                services in any part of the world;

            

    

     

    
      	(c)  	
              contravenes
                the provisions of the Trade Descriptions Acts 1968 or any secondary
                legislation made under it; 

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              infringes
                any other competition, anti-restrictive trade practice, anti-trust
                law or
                legislation applicable in the United Kingdom or elsewhere and not
                specifically mentioned in this Paragraph 25.2
                of
                this Schedule 3.

            

    

     

    
      	26.  	
              Data
                Protection

            

    

     

    
      	26.1  	
              The
                Seller and the Companies have complied in all respects with the provisions
                of the Data Protection Legislation as regards its use of information
                relating to or acquired in connection with the Business and has given
                relevant registrations and notifications to the UK Information
                Commissioner in order to collect and process any personal data and
                other
                information in its possession or control and has obtained all necessary
                consents required under the Data Protection Legislation in order
                to permit
                the Business to use all information held by
                it.

            

    

     

    
      	26.2  	
              The
                transfer of data as contemplated by the parties on Completion will
                not
                result in the Purchaser being in breach of the Data Protection
                Legislation.

            

    

     

    
      	27.  	
              Compliance
                with Laws, Litigation and
                Debts

            

    

     

    
      	27.1  	
              The
                Business has at all times been carried on and is being carried on
                so that
                there have been no breaches of any applicable laws, regulations and
                byelaws in each country in which it is carried on. The Companies
                have at
                all times conducted their business in accordance with all applicable
                laws
                and regulations.

            

    

     

    
      	27.2  	
              Neither
                the Seller, the Companies nor any person for whose acts or defaults
                the
                Seller or the Companies may be vicariously liable is engaged in any
                litigation or arbitration proceedings as plaintiff or defendant except
                for
                debt collection of sums not exceeding an aggregate of £1,000 and there are
                no such proceedings pending or threatened either by or against the
                Seller
                or the Companies affecting the Business and there are no facts or
                circumstances which are likely to give rise to any litigation or
                arbitration.

            

    

     

    
      	27.3  	
              Neither
                the Seller nor the Companies are subject to any order or judgement
                given
                by any court or governmental or other authority, department, board,
                body
                or agency and have not been a party to any undertaking or assurance
                given
                to any court or government or other authority, department, board,
                body or
                agency which is still in force, nor are there any facts or circumstances
                likely to give rise to them becoming subject to such an order or
                judgement
                or to be a party to any such undertaking or
                assurance.

            

    

     

    
      	27.4  	
              Neither
                the Seller nor the Companies are party to any factoring
                agreement.

            

    

     

    
      	28.  	
              Information,
                Research and Documents 

            

    

     

    
      	28.1  	
              There
                has been Disclosed in the Disclosure Letter all information and
                circumstances relating to the Companies and the Business which is
                or could
                on reasonable inquiry be known to the Seller and which:
                

            

    

     

    
      	(a)  	
              may
                be material for a buyer of the Shares and the Business to know;
                or

            

    

     

    
      	(b)  	
              might
                adversely affect the present or future value of the Companies and
                the
                Business; or 

            

    

     

    
      	(c)  	
              might
                affect the willingness of the Purchaser to purchase the Shares and
                the
                Business or to purchase it for the consideration or upon the terms
                set out
                in this Agreement. 

            

    

     

    
      	28.2  	
              All
                other written financial information supplied to the Purchaser by
                or on
                behalf of the Seller in relation to the Companies and the Business
                is
                accurate in all material respects.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Part
      2: Tax Warranties

     

    Definitions
      

     

    
      	
              1.1

            	
              Words
                used in this Part
                2, Schedule 7
                shall have the same meanings as they have for the purposes of the
                Tax
                Covenant and vice versa.

            

    

    

    
      	
              1.2

            	
              Clauses
                1.1 to 1.4
                of
                the Tax Covenant shall apply for the purposes of this Schedule 7
                Part
                2.

            

    

    

    
      	
              1.3

            	
              Each
                of the Tax Warranties in this Schedule shall (unless the context
                otherwise
                requires) apply in relation to both of the Companies as if references
                in
                the Tax Warranties in this Schedule to “the Company” shall include an
                additional reference to each of the Companies.

            

    

    
       

      
        	
                2. 

              	
                Information
                  and Returns

              

      

       

    

    
      
        	
                2.1

              	
                The
                  Company has made all returns, claims for relief, applications,
                  computations and assessments and supplied all information and given
                  all
                  notices to HMRC and any other Tax Authority as reasonably requested
                  or
                  required by law within any requisite period and all such returns,
                  claims
                  for relief, applications, computations and assessments and information
                  and
                  notices were and remain correct and accurate in all respects and
                  are not
                  the subject of any dispute and there are no facts or circumstances
                  likely
                  to give rise to or be the subject of any such
                  dispute.

              

      

    

     

    
      
        	2.2	
                No
                  action has been taken by the Company in respect of which any consent
                  or
                  clearance from HMRC and/or any other Tax Authority was required
                  except in
                  circumstances where such consent or clearance was validly obtained
                  and
                  where any conditions attaching thereto were met and will, immediately
                  following Completion, continue to be
                  met.

              

      

    

     

    
      
        	3.	
                Provision
                  for and Payment of
                  Tax

              

      

    

     

    
      
        
          	3.1	
                  The
                    Company has duly and punctually paid all Tax to the extent that
                    the same
                    ought to have been paid and it is not liable nor has it since
                    its
                    incorporation been liable to pay any penalty or interest in connection
                    therewith.

                

        

      

    

     

    
      
        	3.2	
                The
                  Company has maintained sufficient records to enable it to calculate
                  any
                  present or, so far as possible, future liability for Tax of the
                  Company or
                  its entitlement to any deduction, relief or repayment of
                  tax.

              

      

    

     

    
      
        	3.3	
                The
                  Company has made no election or arrangement for the payment of
                  Tax by
                  instalments under Section 280 of the
                  TCGA.

              

      

    

     

    
      
        	3.4	
                The
                  Company has not received any notice from any Tax Authority, which
                  required
                  or will or may require the Company to withhold Tax from any payment
                  made
                  since the incorporation of the Company or which will or may be
                  made after
                  the date of this Agreement.

              

      

    

     

    
      
        
          	3.5	
                  Theprovisions
                    or reserves for Tax in the Accounts (other than deferred tax)
                    are
                    sufficient (on the basis of the rates of Tax current at the date
                    of those
                    accounts) to cover all Tax for which the Company was at the Accounts
                    Date
                    or may after that date become or have become liable on or in
                    respect of or
                    by reference to any profits, gains or income (whether deemed
                    or actual)
                    for any period ended on or before the Accounts Date or in respect
                    of any
                    distribution or transaction made or entered into or deemed to
                    be made or
                    entered into on or before the Accounts
                    Date.

                

        

      

    

     

    
      	(d)  	
              no
                assessments to Tax made by any Tax Authority, or any determinations
                or
                directions made by any Tax Authority of or in relation to amounts
                of Tax
                or relevant to the calculation of tax, in each case in relation to
                the
                Company, are subject to appeal or are otherwise not
                final.

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              	4.	
                      Taxsince
                        Accounts
                        Date

                    

            

          

        

      

       

    

    Since
      the
      Accounts Date:

     

    
      	4.1.1  	
              the
                Company has not been involved in any transaction which has given
                or may
                give rise to a liability to Tax on the Company (or would have given
                or
                might give rise to such a liability but for the availability of any
                relief);

            

    

     

    
      	4.1.2  	
              no
                payment has been made by the Company which will not be deductible
                for the
                purposes of corporation Tax (or any corresponding Tax on profits
                in any
                relevant foreign jurisdiction), either in computing the profits of
                the
                Company or in computing the corporation Tax or corresponding Tax
                chargeable on it;

            

    

     

    
      	4.1.3  	
              no
                disposal has taken place or other event occurred which has or may
                have the
                effect of crystallising a liability to Tax which, if such disposal
                or
                event had been planned or predicted at the Accounts Date, should
                have been
                reflected in the provision for deferred Tax contained in the Accounts;
                and

            

    

     

    
      	4.1.4  	
              no
                event has occurred which has or may have the effect of prejudicing
                any
                relief taken into account in computing or eliminating the provision
                for
                deferred Tax contained in the
                Accounts.

            

    

     

    
      	5.	
              PAYE/National
                Insurance Contributions

            

    

     

    
      	
              5.1

            	
              The
                Company has properly operated the PAYE system deducting Tax as required
                by
                law from all payments to or treated as made to or benefits provided
                for
                employees, ex-employees or independent contractors of the Company
                (including, but without limitation, such payments within Chapter
                7 ITEPA
                2003) and duly accounted to HMRC for Tax so deducted and have complied
                in
                all material respects with their reporting obligations to HMRC in
                connection with any such payments made or benefits
                provided.

            

    

     

    
      	
              5.2

            	
              There
                has not been nor is there any indication that there will be a PAYE
                audit
                on the Company.

            

    

     

    
      	
              5.3

            	
              All
                national insurance contributions due and payable by the Company have
                been
                paid.

            

    

     

    
      	6.	
              Groups

            

    

     

    
      
        	6.1	
                The
                  disclosure letter gives full details of all claims made by the
                  Company to
                  group relief or surrendered to or by the Company to or by any member
                  of
                  the Retained Group which have not been finally agreed or otherwise
                  determined, or where the losses or other amounts to which the claim
                  relates have not been finally agreed or otherwise determined.
                  

              

      

    

    

    
      
        	6.2	
                The
                  disclosure letter gives full details of all consents to the surrender
                  of
                  group relief to any member of the Retained Group given or to be
                  given in
                  circumstances where such surrender has not become
                  final.

              

      

    

    

    
      	
              6.3

            	
              The
                Company has not received any payment in respect of a surrender of
                group
                relief or of surplus advance corporation Tax or of a Tax refund which
                could, in any circumstances, be due to be repaid to any
                company.

            

    

     

    
      	
              6.4

            	
              The
                Company is not, nor has in the last six years been, party to any
                Group
                Payment Arrangement, entered into pursuant to section 36 of the Finance
                Act 1998, whether as Participating Company or as a Nominated Company
                (as
                those terms are defined in the Group Payment
                Arrangement).

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      
        	6.5	
                The
                  Company has not, within the last six years made any election under
                  section
                  171A or 179A TCGA or paragraph 66 of Schedule 29 to the Finance
                  Act
                  2002.

              

      

    

    

    
      
        	7.	
                Close
                  Company

              

      

    

     

    
      
        	7.1	
                Since
                  its incorporation the Company has
                  not:

              

      

    

     

    7.1.1 made
      any
      transfers of value within Section 94 of the Inheritance Tax Act
      1984;

     

    7.1.2 been
      close investment-holding Company as defined in Section 13A of the Taxes Act
      or
      close company as defined in Section 414 of the Taxes Act; or

     

    7.1.3 done
      anything so as to give rise to an assessment or any charge to Tax under Section
      419 (as extended by Section 422) of the Taxes Act (loans to participators and
      associates);

     

    
      	
              7.2

            	
              The
                Company has not issued a relevant discounted security to which Paragraph
                18 of Schedule 9 to the Finance Act 1996 (Discounted securities of
                close
                company) may apply.

            

    

     

    
      	8.	
              Capital
                Assets

            

    

     

    
      	
              8.1

            	
              No
                balancing charge in respect of any capital allowances claimed or
                given
                would arise if all the assets of the Company were to be realised
                for a
                consideration equal to the amount of the book value thereof as shown
                or
                included in the Accounts.

            

    

     

    
      	
              8.2

            	
              All
                necessary conditions for all capital allowances (as defined in Section
                832(1) of the Taxes Act) claimed by the Company were at all material
                times
                satisfied and remain satisfied and the Company has not since its
                incorporation become liable for any balancing
                charge.

            

    

     

    
      	
              8.3

            	
              The
                Company has not since its incorporation been subject to any debt
                or
                security where the interest payable thereon fell or falls or could
                on its
                assignment fall to be treated as a distribution for Tax
                purposes.

            

    

     

    
      	
              8.4

            	
              No
                chargeable gain or profit (disregarding the effects of any indexation
                relief available) would arise if any asset of the Company (other
                than
                trading stock) were to be realised for a consideration equal to the
                amount
                of the book value thereof as shown or included in the
                Accounts.

            

    

     

    
      	
              8.5

            	
              The
                Company has not been involved in any scheme or affected by any
                arrangements whereby Section 30 TCGA (tax-free benefits) might be
                applicable in relation to any disposal by the Company since its
                incorporation or on any asset of the Company being disposed of after
                the
                date hereof.

            

    

     

    
      	
              8.6

            	
              The
                Company has not held at any time since its incorporation any asset
                where,
                on the disposal of that asset, the amounts deductible under Section
                38
                TCGA fall or would fall to be determined by reference to the application
                of Section 42 TCGA (part disposal of assets) to a previous
                transaction.

            

    

     

    
      	
              8.7

            	
              The
                Company has not since its incorporation disposed of any asset so
                that
                Section 17 TCGA (disposals and acquisitions treated as made at market
                value) might apply to increase the consideration deemed to be given
                on
                such disposal.

            

    

     

    
      	
              8.8

            	
              The
                Company has not since its incorporation held or had any interest
                in any
                asset where Section 17 TCGA might apply to reduce the consideration
                deemed
                to be given on the acquisition of that
                asset.

            

    

     

    
      	
              9.

            	
              Value
                shifting

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    No
      chargeable gain or allowable loss which might accrue on a disposal by the
      Company of any asset is likely to be adjusted in accordance with Sections 29-34
      TCGA (disposals and acquisition treated as made at market value).

     

    
      	10.	
              Transfer
                pricing

            

    

     

    The
      Company is not party to any transactions or arrangements to which the provisions
      of Section 770A or Schedule 28AA of the Taxes Act apply. 

     

    
      	
              11.

            	
              Transactions
                not at arm’s length

            

    

     

    The
      Company has not disposed of or acquired any asset in such circumstances that
      the
      provisions of Section 17 TCGA (disposals and acquisitions treated as made at
      market value) could apply nor given or agreed to give any consideration to
      which
      Section 128(2) TCGA (consideration given or received by holder) could apply
      and
      no allowable loss has accrued to the Company to which Section 18 TCGA
      (transactions between connected parties) will apply.

     

    
      	12.	
              Tax
                avoidance 

            

    

     

    
      	
              12.1

            	
              The
                Company has not engaged in or been party to any scheme or arrangement
                in
                respect of which the main (or one of the main) purpose or purposes
                is or
                was the avoidance of tax.

            

    

     

    
      	
              12.2

            	
              The
                Company has not been party to any preordained series of transactions
                containing one or more steps which have no commercial purpose other
                than
                avoiding, deferring or saving Tax or obtaining of a Tax
                advantage.

            

    

     

    
      	13.	
              Intangible
                assets 

            

    

     

    All
      intangible fixed assets (including goodwill) owned by the Company and treated
      for Tax purposes as assets falling within Schedule 29 FA 2002 (gains and losses
      of a company from intangible fixed assets) are disclosed.

     

    
      	14.	
              Distributions 

            

    

     

    No
      distribution within the meaning of Chapter II Part VI of the Taxes Act (matters
      which are distributions for the purposes of the corporation taxes act) has
      been
      made (or will be deemed to have been made) by the Company since its
      incorporation except dividends shown in the accounts of the Company and the
      Company is not under any obligation to make any such distribution.

     

    
      	15.	
              Employee
                share incentives

            

    

     

    
      	
              15.1

            	
              No
                person has been granted options in a scheme approved under Schedules
                3 or
                4 ITEPA or options which qualify as enterprise management incentives
                under
                Schedule 5 ITEPA or are participants in a share incentive plan approved
                under Schedule 2 ITEPA in each case by reason of employment with
                the
                Company.

            

    

     

    
      	
              15.2

            	
              No
                person has been granted a right to acquire shares or securities which
                may
                give rise to a liability in respect of income Tax or national insurance
                contributions or similar taxes in other jurisdictions on the Company
                upon
                the exercise of that right or upon the acquisition of those shares
                or
                securities.

            

    

     

    
      	
              15.3

            	
              No
                person has acquired an interest in shares which is only conditional
                within
                the meaning of Chapter 2, Part 7 ITEPA as originally enacted (conditional
                interest in shares) nor acquired shares which are convertible within
                the
                meaning of Chapter 3, Part 7 ITEPA as originally enacted (convertible
                shares) which may give rise to a liability in respect of income or
                national insurance contributions on the Company under those
                provisions.

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	
              15.4

            	
              No
                person has acquired any employment related securities in the Company
                (within the meaning of Section 421B ITEPA) to which Part 7 ITEPA
                applies.

            

    

     

    
      	
              16.

            	
              Value
                Added tax

            

    

     

    
      
        	16.1	
                For
                  the purposes of this paragraph 16 the expression “VAT legislation” shall
                  include the Value Added Tax Act 1994 and all other enactments in
                  relation
                  to value added Tax and all notices, provisions and conditions made
                  or
                  issued thereunder including the terms of any agreement reached
                  with HMRC
                  or any concession referred to in the Disclosure Letter.
                  

              

      

    

    

    
      
        	16.2	
                The
                  Company:

              

      

    

    

    
      	16.2.1  	
              is
                registered for the purposes of VAT, has been so registered at all
                times
                that it has been required to be registered by VAT legislation, and
                such
                registration is not subject to any conditions imposed by or agreed
                with
                HMRC;

            

    

    

    
      	16.2.2  	
              has
                complied fully with and observed in all material respects the terms
                of VAT
                legislation;

            

    

    

    
      	16.2.3  	
              has
                maintained and obtained at all times complete, correct and up-to-date
                records, invoices and other documents (as the case may be) appropriate
                or
                requisite for the purposes of VAT legislation and has preserved such
                records, invoices and other documents in such form and for such periods
                as
                are required by VAT legislation;

            

    

    

    
      	16.2.4  	
              obtains
                credit for all input Tax paid or suffered by
                it;

            

    

    

    
      	16.2.5  	
              is
                not and has not been treated as a member of a group for the purposes
                of
                VAT legislation; 

            

    

    

    
      	16.2.6  	
              is
                not required to make payments on account of value added Tax for which
                it
                may become liable in a prescribed accounting period pursuant to the
                Value
                Added Tax (Payments on Account) Order 1993;
                and

            

    

    

    
      	16.2.7  	
              is
                not and has not been subject under VAT legislation to any penalty
                liability notice, written warning of failure to comply, surcharge
                liability notice or requirement to give security as a condition of
                making
                taxable supplies.

            

    

     

    
      	16.3	
              All
                VAT, import duty and other taxes or charges payable by the Company
                upon
                the supply, acquisition, use or importation of goods or services,
                and all
                excise duties payable in respect of any assets (including trading
                stock)
                imported or owned by the Company, have been paid in
                full.

            

    

     

    
      	17.	
              Stamp
                Duty

            

    

     

    
      	
              17.1

            	
              All
                documents executed by the Company, which are necessary to establish
                the
                title of the Company to any asset, have been duly stamped and any
                applicable stamp duties charged in respect of such documents have
                been
                duly accounted for and paid and no such documents which are outside
                the
                United Kingdom would attract stamp duty if they were brought into
                the
                United Kingdom. 

            

    

     

    
      	
              17.2

            	
              The
                Company has complied in all respects with the provisions of Part
                IV
                Finance Act 1986 (stamp duty reserve tax) and with any regulations
                made
                under the same and the Company will not become liable to pay stamp
                duty
                reserve Tax by reference to any agreement which falls within the
                terms of
                Section 87(1) of that Act and is entered into after the incorporation
                of
                the Company.

            

    

     

    
      	18.	
              International

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    The
      Company is and has at all times been resident in the United Kingdom for Tax
      purposes and is not and has not at any time been treated as resident in any
      other jurisdiction for any Tax purpose (including any double taxation
      arrangement). The Company is not subject to Tax in any jurisdiction other than
      its place of incorporation by virtue of having a permanent establishment or
      other place of business in that jurisdiction.

     

    
      	19.	
              Duties

            

    

     

    All
      value
      added tax, import and other taxes or charges payable to any Tax Authority upon
      the importation of goods and all excise duties payable to any Tax Authority
      in
      respect of any asset (including trading stock) imported, owned or used by the
      Company have been paid in full.

     

    
      	20.	
              Withdrawal
                of Reliefs after
                Completion

            

    

     

    No
      relief
      has been claimed by and/or given to the Company, or taken into account in
      determining or eliminating any provision for Tax or deferred Tax in the
      Accounts, which could or might be effectively withdrawn, postponed, restricted
      or otherwise lost as a result of the sale of the Shares under this Agreement
      or
      any other event or circumstance occurring or arising at any time after the
      incorporation of the Company.

     

    
      	21.	
              Continuing
                Commitments

            

    

     

    All
      sums
      payable under any obligation incurred by the Company prior to Completion and
      which will continue to bind the Company after Completion have been and will
      continue to be deductible for the purposes of corporation Tax (or any
      corresponding Tax on profits in any relevant foreign jurisdiction), either
      in
      computing the profits of the Company or in computing the corporation Tax or
      corresponding Tax chargeable on it.

     

    
      	22.	
              Disputes,
                investigations

            

    

     

    The
      Company is not involved in any current dispute with any Tax Authority nor is
      it
      or has it in the last six years been the subject of any investigation, enquiry,
      audit or non-routine visit by any Tax Authority. So far as the Sellers are
      aware
      in relation to the Company there is no planned investigation, enquiry, audit
      or
      non-routine visit by any Tax Authority and there are no facts which might cause
      such an investigation, enquiry, audit or non-routine visit to be
      instituted.

     

    
      	23.	
              Penalties,
                interest

            

    

     

    Within
      the past six years, neither the Company nor any director or officer of any
      of
      the Company (in his capacity as such) has paid or become liable to pay, and
      there are no circumstances by reason of which it or they may become liable
      to
      pay to any Tax Authority, any penalty, fine, surcharge or interest in respect
      of
      Tax (including in respect of any failure to make any return, give any notice
      or
      supply any information to any relevant Tax Authority, or any failure to keep
      or
      preserve any records or to pay Tax on the due date for payment).

     

    
      
        	24.	
                Special
                  arrangements

              

      

    

     

    No
      Tax
      Authority has operated or agreed to operate any special arrangement (being
      an
      arrangement which is not based on relevant legislation or any published
      practice) in relation to the Company’s affairs.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 4

    Terms
      and
      conditions of Consideration Shares

     

    The
      parties to this Agreement agree that any Consideration Shares issued in
      accordance with the terms of this Agreement will be issued on the following
      terms:

     

    
      	1.  	
              During
                the period beginning on the date of this Agreement and ending on
                the date
                that is 18 months after the date the Company receives notification
                by the
                Securities and Exchange Commission that the registration statement
                required to be filed by the Company pursuant to that certain Registration
                Rights Agreement between the Company and the investors of the Company’s
                private placement offering on June 30, 2007 (the “Registration
                Statement”),
                will not be reviewed or is no longer subject to further review and
                comments (the “Lock-Up
                Period”),
                the Seller will not: (1) sell, transfer, assign, pledge or hypothecate
                any
                Consideration Shares (“Covered
                Securities”),
                unless it is to an individual, entity or charity that agrees to be
                subject
                to the terms and conditions of this Schedule or (2) subject the Covered
                Securities to any hedging, short sale, derivative, put, or call
                transactions that would result in the effective economic disposition
                of
                the Covered Securities by any person (the “Lock-Up”).

            

    

     

    
      	2.  	
              Notwithstanding
                paragraph 1 above:

            

    

     

    
      	(a)  	
              the
                Lock-Up shall not apply during the period that the sales price per
                share
                of common stock is at least $15.00, provided that such period is
                after the
                Registration Statement has been declared effective by the Securities
                and
                Exchange Commission and shares of the Company’s common stock is listed on
                the Nasdaq Stock Market or the American Stock Exchange;
                and

            

    

     

    
      	(b)  	
              the
                Lock-Up shall not apply in connection with transactions where the
                transferee agrees to be bound by the terms of this
                Schedule.

            

    

     

    
      	3.  	
              The
                obligations of Seller set out in this Schedule also apply to: (i)
                all
                Covered Securities that the Seller may receive as a stock dividend
                or
                other distribution on the Covered Securities; and (ii) all other
                securities of the Purchaser that the Seller may receive in a
                recapitalisation or similar transaction in exchange for Covered Securities
                acquired by the undersigned.

            

    

     

    
      	4.  	
              The
                Purchaser may enforce the priority security interest referred to
                in clause
                12.2
                of
                this Agreement by a arranging for a purchase or placing of the
                Consideration Shares. 

            

    

     

    
      	5.  	
              The
                Seller consents to the entry of stop transfer instructions with the
                Purchaser’s transfer agent and registrar against the transfer of the
                Covered Securities except in compliance with the preceding provisions
                of
                this Schedule. The Seller also consents to the placement of a legend
                on
                any and all stock certificates that evidence the Covered Securities
                which
                are the subject of this Schedule.

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 5

    Completion
      Documents

     

    At
      Completion, the Seller:

     

    
      	1.  	
              shall
                deliver to the Purchaser at the Premises (or such other place as
                may be
                agreed) such of the Business Assets as are capable of being transferred
                by
                delivery;

            

    

     

    
      	2.  	
              cause
                to be delivered or (if so requested by the Purchaser) made available
                to
                the Purchaser:

            

    

     

    
      	(a)  	
              the
                Business Information; 

            

    

     

    
      	(b)  	
              the
                originals (or where originals are not available, copies) of (i) all
                contracts to which either of the Companies is a party; and (ii) each
                of
                the BEI Contracts;

            

    

     

    
      	(c)  	
              all
                documents of title, certificates, deeds, licences, agreements and
                other
                documents held by the Seller relating to the Intellectual Property
                Rights;

            

    

     

    
      	(d)  	
              a
                duly executed Deed of Release; 

            

    

     

    
      	(e)  	
              a
                duly executed IP Assignment;

            

    

     

    
      	3.  	
              shall
                deliver to the Purchaser transfers of the Shares duly executed by
                the
                registered holder thereof in favour of the Purchaser together with
                the
                definitive certificates in respect thereof in the names of such registered
                holders (or where such certificates have been destroyed or lost,
                an
                indemnity in a form agreed by the
                Purchaser);

            

    

     

    
      	4.  	
              shall
                deliver to the Purchaser the original of any power of attorney under
                which
                this Agreement or any document referred to in this Agreement is executed
                on behalf of the Seller and such other evidence as the Purchaser
                may
                require of the authority of any person executing on behalf of the
                Seller;

            

    

     

    
      	5.  	
              shall
                deliver to the Purchaser such waivers, consents or documents which
                may be
                required by the Purchaser to vest in the Purchaser the full beneficial
                ownership of the Shares and enable the Purchaser to procure them
                to be
                registered in the name of the Purchaser or its
                nominees;

            

    

     

    
      	6.  	
              shall
                deliver to the Purchaser the certificate of incorporation, any certificate
                of incorporation on change of name, common seal (which failing a
                certificate in the Agreed Form from the Seller certifying that there
                is no
                common seal), statutory registers and minute and other record books
                (fully
                written up to the time immediately prior to Completion) and share
                certificate books of the Companies together with all unused forms
                of share
                certificates of the Companies;

            

    

     

    
      	7.  	
              shall
                deliver to the Purchaser a statement from each bank at which the
                Companies
                maintain an account of the amount standing to the credit or debit
                of all
                accounts of the Companies as at close of business on the last business
                day
                prior to the Completion Date together with the cash book balances
                of the
                Companies at Completion and statements reconciling such cash book
                balances
                and relevant cheque books with the balances on each such bank
                account;

            

    

     

    
      	8.  	
              shall
                deliver to the Purchaser copies of all bank mandates of the Companies;
                

            

    

     

    
      	9.  	
              shall
                deliver to the Purchaser a certified copy of a board resolution of
                the
                Purchaser authorising the execution of this Agreement by the Purchaser
                together with the performance of its obligations hereunder;
                and

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	10.  	
              shall
                deliver to the Purchaser a certified copy of a resignation letter
                in the
                Agreed Form from the company secretary of each Company and AG and
                DOD in
                respect of their respective positions as director of each of MMAP
                and
                MMAD.

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 6

    Reference
      Accounts

     

    
      	
              BALANCE
                SHEET MIXED MARTIAL ARTS PROMOTIONS LIMITED

            	 	 	 
	 	 	 	 	 
	
              EQUITY
                AND LIABILITIES

            	 	 	 
	
              Capital
                and Reserves

            	 	 	 
	 	 	 	 	 
	
              Share
                Capital

            	 	 	 	 
	 	
              Share
                Capital

            	
              1000

            	 	 
	 	
              Increased
                share capital 

            	
              205314.82

            	
              206314.82

            	 
	
              Retained
                Income

            	 	 	 
	 	
              Retained
                Income/(Loss)

            	
              -519718.28

            	 	 
	 	
              Net
                Profit/Loss this year

            	
              -1090942.85

            	
              -1610661.13

            	
              -1404346.31

            
	
              Shareholders
                Loan

            	 	 	 
	 	
              Loan
                - Integrated Technologies & Systems

            	
              1291717.14

            	 	 
	 	
              Loan
                - A Geer

            	
              89297.5

            	 	 
	 	
              Loan
                - Other

            	
              650

            	
              1381664.64

            	 
	 	 	 	 	 
	
              Minority
                Interest

            	 	 	 	 
	
              Non-current
                Liabilities

            	 	 	 
	 	 	 	 	 
	
              Long
                Term Liabilities

            	 	 	
              1381664.64

            
	 	 	 	 	 
	 	 	 	
              -22681.67

            	 
	
              Current
                Liabilities

            	 	 	 
	 	
              Provision
                for Bad Debts

            	 	
              80770.5

            	 
	 	
              Lloyds
                Bank Current Account

            	 	
              150626.68

            	 
	 	
              Accruals

            	 	
              37218.48

            	
              268615.66

            
	
              Total
                Equity and Liabilities

            	 	
              245933.99

            	 
	 	 	 	 	 
	
              ASSETS

            	 	 	 	 
	
              Non-current
                Assets

            	 	 	 
	 	 	 	 	 
	
              Fixed
                Assets

            	 	 	 	 
	 	
              Motor
                Vehicles - Net Value

            	
              22637.22

            	 	 
	 	
              Other
                Fixed Assets - Net Value

            	
              5000

            	
              27637.22

            	
              27637.22

            
	
              Current
                Assets

            	 	 	 	 
	 	
              Customer
                Control Account

            	 	
              82440.96

            	 
	 	
              Supplier
                Control Account

            	 	
              47218.48

            	 
	 	
              VAT
                Control Account

            	 	
              88637.33

            	
              218296.77

            
	
              Total
                Assets

            	 	 	
              245933.99

            	 

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
SCHEDULE 7

    Tax
      Covenant

     

    
      	1.  	
              INTERPRETATION

            

    

    

    
      	1.1  	
              In
                this Schedule, the following definitions shall have the following
                meanings:

            

    

    

    
      	
            	“Costs”	
              means
                obligations, liabilities, losses, damages, costs (including legal
                costs)
                and expenses (including Tax) in each case of any nature
                whatsoever;

            

    

    

    
      	
            	“Event”	
              includes
                (without limitation) the death or the winding up or dissolution of
                any
                person, and any act, transaction or omission whatsoever, and any
                reference
                to an event occurring on or before a particular date shall include
                events
                which for Tax purposes are deemed to have, or are treated or regarded
                as
                having, occurred on or before that
                date;

            

    

    

    
      	
            	“paymentfor
              group relief”  	
              means
                any payment in respect of the surrender of any loss or other relief
                (including without limitation any Tax, Tax refund or credit) or in
                respect
                of any reallocation of any gain, loss, disposal or other matter for
                any
                Tax purpose;

            

    

    

    
      	
            	“Purchaser’s
              Group”	
              means
                the Purchaser and any other company or companies which either are
                or
                become after Completion, or have within the six years ending at Completion
                been, treated as members of the same group as, or otherwise connected
                or
                associated in any way with, the Purchaser for any Tax
                purpose;

            

    

    

    
      	
            	“Purchaser’s
              relief”	
              means:

            

    

    
      

      
        	
              	(a)	
                any
                  relief arising to either Company in respect of an Event occurring
                  or
                  period ending on or before Completion which was taken into account
                  in
                  computing the provision for deferred Tax in the Accounts or the
                  Reference
                  Accounts and/or in eliminating such provision, or was included
                  as an asset
                  or otherwise taken into account in the Accounts or the Reference
                  Accounts;

              

      

       

    

    
      	
            	(b)	
              any
                relief arising to either Company in respect of an Event occurring
                or
                period ending after Completion or arising in the ordinary course
                of
                business to either Company in respect of an event occurring or period
                commencing after the Accounts Date;
                and

            

    

    

    
      	
            	(c)	
              any
                relief arising to any member of the Purchaser’s Group (other than the
                Companies);

            

    

    

    
      	
            	“relief”	
              includes,
                unless the context otherwise requires, any allowance, credit, deduction,
                exemption or set-off in respect of any Tax or relevant to the computation
                of any income, profits or gains for the purposes of any Tax, or any
                repayment of or saving of Tax (including any repayment supplement
                or
                interest in respect of Tax), and:

            

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                	(a)	
                  any
                    reference to the use or set off of relief shall be construed
                    accordingly
                    and shall include use or set off in part;
                    and

                

        

      

    

    

    
      
        	
              	(b)	
                any
                  reference to the loss of a relief shall include the absence, non-existence
                  or cancellation of any such relief, or to such relief being available
                  only
                  in a reduced amount;

              

      

    

    

    
      	
            	“Retained
              Group”	
              means
                the Seller and any other company or companies (other than the Companies)
                which either are or become after Completion, or have within the six
                years
                ending at Completion been, treated as members of the same group as,
                or
                otherwise connected or associated in any way with, the Seller for
                any Tax
                purpose;

            

    

    

    
      	
            	“Tax”	
              includes
                (without limitation) corporation tax, advance corporation tax, income
                tax
                (including income tax or amounts on account of income tax required
                to be
                deducted or withheld from or accounted for in respect of any payment),
                capital gains tax, inheritance tax, value added tax, national insurance
                contributions, capital duty, stamp duty, stamp duty reserve tax,
                stamp
                duty land tax, duties of customs and excise, petroleum revenue tax,
                rates,
                all taxes, duties or charges replaced by or replacing any of them,
                and all
                other taxes on gross or net income, profits or gains, distributions,
                receipts, sales, use, occupation, franchise, value added, and personal
                property, and all levies, imposts, duties, charges or withholdings
                in the
                nature of Taxation, and any payment whatsoever which the relevant
                person
                may be or become bound to make to any person as a result of the discharge
                by that person of any tax which the relevant person has failed to
                discharge, together with all penalties, charges and interest relating
                to
                any of the foregoing or to any late or incorrect return in respect
                of any
                of them, and regardless of whether any such taxes, levies, duties,
                imposts, charges, withholdings, penalties and interest are chargeable
                directly or primarily against or attributable directly or primarily
                to the
                relevant person or any other person and of whether any amount in
                respect
                of any of them is recoverable from any other
                person;

            

    

    

    
      	
            	“Tax
              Authority”	
              means
                any Taxing or other Authority (whether within or outside the United
                Kingdom) competent to impose any Tax
                Liability;

            

    

    

    
      	
            	“Tax
              Claim”	
              means:

            

    

    

    
      
        	
              	(a)	
                the
                  issue of any notice, demand, assessment, letter or other document
                  by or on
                  behalf of any Tax Authority or the imposition of any withholding
                  of or on
                  account of Tax; or

              

      

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	(b)	
                the
                  preparation or submission of any notice, return, assessment, letter
                  or
                  other document by the Purchaser, either Company or any other
                  person,

              

      

    

    

    from
      which it appears that a Tax Liability has been incurred by or will be imposed
      on
      either Company;

    

    
      	
            	“Tax
              Liability”	
              means
                both a liability of either Company to make or suffer an actual payment
                of
                Tax (or an amount in respect of Tax) and
                also:

            

    

    

    
      
        	
              	(a)	
                the
                  loss of any relief falling within paragraph (a) of the definition
                  of
                  Purchaser’s relief; and

              

      

    

    

    
      
        	
              	(b)	
                the
                  use or set off of any Purchaser’s relief in circumstances where, but for
                  such use or set off, either Company or would have had an actual
                  Tax
                  Liability in respect of which the Purchaser would have been able
                  to make a
                  claim against the Seller under this
                  Schedule,

              

      

    

    

    and,
      where paragraph (a) or (b) above applies, the amount that is to be treated
      for
      the purposes of this Schedule as a Tax Liability of the relevant Company shall
      be determined as follows:

    

    
      	
            	(i)	
              where
                the relief that is the subject of the loss or which is used or set
                off as
                mentioned in those paragraphs is a deduction from or offset against
                Tax,
                the Tax Liability shall be the amount of that relief so lost, used
                or set
                off;

            

    

     

    
      
        	
              	(ii)	
                where
                  the relief that is the subject of the loss or which is used or
                  set off as
                  mentioned in those paragraphs is a deduction from or offset against
                  income, profits or gains, the Tax Liability shall be, in the case
                  of a
                  relief which is used or set off, the amount of Tax saved thereby
                  and, in
                  the case of a relief which is lost, the amount of Tax which but
                  for such
                  loss would have been saved by virtue of the relief so lost, ignoring
                  for
                  this purpose the effect of reliefs (other than deductions in computing
                  profits for the purpose of Tax) arising in respect of an Event
                  occurring
                  or period ending after Completion;
                  and

              

      

    

    

    
      	
            	(iii)	
              where
                the relief that is the subject of the loss or setting off is a repayment
                of Tax, the Tax Liability shall be the amount of the repayment that
                would
                have been obtained but for the loss, use or setting
                off;

            

    

    

    
      	
            	“Taxes
              Act”	
              means
                the Income and Corporation Taxes Act
                1988.

            

    

    

    
      	1.2  	
              Any
                reference to income, profits or gains earned, accrued or received
                on or
                before a particular date or in respect of a particular period shall
                include income, profits or gains which for Tax purposes are deemed
                to have
                been or are treated or regarded as earned, accrued or received on
                or
                before that date or in respect of that
                period.

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    
      	1.3  	
              Any
                reference to an Event occurring on or before Completion shall be
                deemed to
                include a series or combination of Events the first of which occurred
                on
                or before Completion.

            

    

    

    
      	1.4  	
              Persons
                shall be treated as connected for the purposes of this Schedule if
                they
                are connected within the meaning of section 839 of the Taxes
                Act.

            

    

    

    
      	1.5  	
              Any
                stamp duty which is charged or chargeable on any document executed
                prior
                to Completion which is necessary to establish the title of either
                Company
                to any asset or in the enforcement or production of which either
                Company
                is interested shall be deemed, together with any interest, fines
                or
                penalties relating to such stamp duty, to be a liability of the relevant
                Company to make an actual payment of
                Tax.

            

    

    

    
      	1.6  	
              The
                rule known as the ejusdem
                generis
                rule shall not apply and
                accordingly:

            

    

     

    
      	(a)  	
              general
                words shall not be given a restrictive meaning by reason of the fact
                that
                they are preceded by words indicating a particular class of acts,
                matters
                or things; and

            

    

     

    
      	(b)  	
              general
                words shall not be given a restrictive meaning by reason of the fact
                that
                they are followed by particular examples intended to be embraced
                by the
                general words.

            

    

     

    
      	1.7  	
              In
                this Schedule, unless the context otherwise
                requires:

            

    

     

    
      	(a)  	
              references
                to persons include individuals, bodies corporate (wherever incorporated),
                unincorporated associations and
                partnerships;

            

    

    

    
      	(b)  	
              the
                headings are inserted for convenience only and do not affect the
                construction of this Schedule;

            

    

    

    
      	(c)  	
              references
                to one gender include all genders;

            

    

    

    
      	(d)  	
              any
                reference to an enactment or statutory provision is a reference to
                it as
                it may have been, or may from time to time be, amended, modified,
                consolidated or re-enacted;

            

    

    

    
      	(e)  	
              references
                to any English legal term for any action, remedy, method of judicial
                proceeding, legal document, legal status, court official or any other
                legal concept is, in respect of any jurisdiction other than England,
                deemed to include the legal concept or term which most nearly approximates
                in that jurisdiction to the English legal
                term.

            

    

    

    
      	1.8  	
              All
                payments made by the Seller to the Purchaser or by the Purchaser
                to the
                Seller under this Schedule, other than payments of interest, shall
                so far
                as possible be made by way of adjustment to the consideration for
                the sale
                of the Shares.

            

    

    

    
      	2.  	
              COVENANT
                TO PAY

            

    

    

    
      	2.1  	
              The
                Seller hereby covenants with the Purchaser (for itself and as trustee
                for
                its successors in title) to pay to the Purchaser an amount equivalent
                to:

            

    

     

    
      	(a)  	
              any
                Tax Liability arising in respect of, by reference to or in consequence
                of:

            

    

     

    
      	(i)  	
              any
                income, profits or gains earned, accrued or received on or before
                Completion; and

            

    

     

    
      	(ii)  	
              any
                Event which occurs or occurred on or before Completion;
                and

            

    

     

    
      	(iii)  	
              any
                Tax Liability which is properly attributable to any member of the
                Retained
                Group; and

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    
      	(iv)  	
              any
                liability to:

            

    

     

    
      	(A)  	
              make
                to any member of the Retained Group any payment for group relief;
                or

            

    

     

    
      	(B)  	
              repay
                to any member of the Retained Group the whole or any part of any
                payment
                for group relief previously
                received,

            

    

     

    in
      each
      case pursuant to any agreement or arrangement entered into by either Company
      on
      or before Completion; and

    

    
      	2.2  	
              any
                Costs reasonably and properly suffered or incurred by either Company
                as a
                result of, or in connection with, any claim being made against either
                Company in respect of or relating to Tax under the terms of any agreement
                for the sale and purchase of shares or a business or part of a business
                entered into by either Company prior to Completion; and
                

            

    

    

    
      	2.3  	
              any
                Tax Liability which comprises a liability to income tax or employee
                or
                employer’s national insurance contributions arising in respect of, by
                reference to or in consequence of the payment of the Consideration;
                and
                

            

    

    

    
      	2.4  	
              any
                Tax Liability arising in respect of, by reference to or in consequence
                of
                the Zuffa Claims.

            

    

     

    
      	3.  	
              EXCLUSIONS 

            

    

    

    The
      covenant contained in paragraph 2.1 shall not cover any Tax Liability to the
      extent that:

    

    
      	(a)  	
              specific
                provision in respect of that Tax Liability has been made in the Accounts,
                or the Tax Liability was paid or discharged before Completion;
                or

            

    

     

    
      	(b)  	
              the
                Tax Liability arises or is increased as a result only of any increase
                in
                rates of Tax which is announced and comes into force after Completion
                with
                retrospective effect or of any change in law which is announced and
                comes
                into force after Completion with retrospective effect;
                or

            

    

     

    
      	(c)  	
              the
                Tax Liability would not have arisen but for a voluntary transaction,
                action or omission carried out or effected by either Company at any
                time
                after Completion, except that this exclusion shall not apply where
                any
                such transaction, action or
                omission:

            

    

     

    
      	(i)  	
              is
                carried out or effected pursuant to a legally binding commitment
                created
                on or before Completion, or which for some other reason could not
                reasonably have been avoided;

            

    

    

    
      	(ii)  	
              is
                carried out or effected in the ordinary course of business;
                or

            

    

    

    
      	(iii)  	
              (without
                prejudice to paragraphs 3(c)(i) and 3(c)(ii)) is carried out in
                circumstances where the Purchaser did not know and (on the basis
                of the
                information actually supplied in writing by the Seller to the Purchaser
                prior to Completion) could not reasonably be expected to know it
                would or
                might give rise to the Tax Liability in
                question.

            

    

    

    
      	4.  	
              COSTS
                AND EXPENSES

            

    

    

    The
      covenant contained in this Schedule shall extend to all costs and expenses
      incurred by the Purchaser or the relevant Company in connection with a claim
      under this Schedule or in connection with the subject matter of any such claim,
      including in connection with any action taken as referred to in paragraph 7
      and
      any satisfaction or settlement of a Tax Liability in accordance with that
      paragraph. 

    

    
      	5.  	
              WITHHOLDINGS/DEDUCTIONS
                FROM COVENANT PAYMENTS

            

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    
      	5.1  	
              All
                sums payable by the Seller under this Schedule shall be paid without
                set-off or counterclaim. 

            

    

    

    
      	5.2  	
              All
                sums payable by the Seller under this Schedule shall be paid free
                and
                clear of all deductions or withholdings unless the deduction or
                withholding is required by law, in which event the Seller shall pay
                such
                additional amount as shall be required to ensure that the net amount
                received by the Purchaser under this Schedule will equal the full
                amount
                which would have been received by it had no such deduction or withholding
                been required to be made.

            

    

    

    
      	6.  	
              TAX
                ON COVENANT PAYMENTS

            

    

    

    
      	6.1  	
              If
                any Tax Authority brings into charge to Tax any sum paid to the Purchaser
                under this Schedule (including in circumstances where any relief
                is
                available in respect of such charge to Tax), then the Seller shall
                pay
                such additional amount as shall be required to ensure that the total
                amount paid, less the Tax chargeable on such amount (or that would
                be so
                chargeable but for such relief), is equal to the amount that would
                otherwise be payable under this
                Schedule.

            

    

    

    
      	6.2  	
              Paragraph
                6.1 shall apply in respect of any amount deducted or withheld as
                contemplated by paragraph 5.2 as it applies to sums paid to the Purchaser,
                save to the extent that in computing the Tax chargeable the Purchaser
                is
                able to obtain a credit for the amount deducted or
                withheld.

            

    

    

    
      	7.  	
              NOTIFICATION
                OF CLAIMS AND CONDUCT OF
                DISPUTES

            

    

    

    
      	7.1  	
              If
                the Purchaser becomes aware of any Tax Claim relevant for the purposes
                of
                this Schedule, the Purchaser shall give, or shall procure that notice
                of
                that Tax Claim is given, to the Seller as soon as reasonably practicable
                and shall conduct the defence of any such Tax Claim and the Seller
                shall
                for these purposes indemnify and secure the Purchaser and the Companies
                on
                demand against all reasonable out of pocket costs and expenses including
                those of its legal advisers incurred in respect of the defence of
                such Tax
                Claim.

            

    

    

    
      	7.2  	
              The
                Seller and JF acknowledge that they are already aware of the Zuffa
                Claims
                and that no notice is required
                to
                be given by the Purchaser pursuant to clause 7.1 in relation to the
                Zuffa
                Claims.

            

    

    

    
      	8.  	
              DUE
                DATE OF PAYMENT AND
                INTEREST

            

    

    

    
      	8.1  	
              Where
                a claim under this Schedule relates to a liability to make or suffer
                an
                actual payment or increased payment of Tax or an amount in respect
                thereof
                or where either Company is under a liability to make a payment of
                the type
                referred to in paragraph 2.3 above (in this paragraph referred to
                as a
                group relief payment), the Seller shall pay to the Purchaser the
                amount
                claimed under this Schedule in respect thereof on or before the date
                which
                is the later of the date ten Business Days after demand is made therefor
                under this Schedule and the fifth Business Day prior
                to:

            

    

    

    
      	(a)  	
              in
                the case of Tax in respect of which there is no provision for payment
                by
                instalments, the latest date on which the Tax in question can be
                paid to
                the relevant Tax Authority in order to avoid a liability to interest
                or
                penalties accruing;

            

    

    

    
      	(b)  	
              in
                the case of Tax in respect of which there is provision for payment
                by
                instalments, each date on which an instalment of such Tax becomes
                payable
                (and so that on each such date an appropriate proportion of the amount
                claimed shall be paid, such proportion to be notified by the Purchaser
                to
                the Seller at least five Business Days prior to each such date);
                or

            

    

    

    
      	(c)  	
              in
                the case of a group relief payment, the date on which that group
                relief
                payment is payable to the person demanding the
                same.

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    Provided
      that, if the date on which Tax to which this paragraph applies can be recovered
      is deferred following application to the appropriate authority and the Seller
      indemnifies and secures the Purchaser and the relevant Company to the
      Purchaser’s reasonable satisfaction in accordance with paragraph 7.1, the date
      for payment by the Seller shall be the earlier of the date on which the Tax
      becomes recoverable by the relevant Tax Authority (notwithstanding any initial
      deferral) and such date when the amount of Tax is finally and conclusively
      determined. For this purpose, an amount of Tax shall be deemed to be finally
      determined when, in respect of such amount, an agreement under section 54 of
      the
      Taxes Management Act 1970 or any legislative provision corresponding to that
      section is made, or a decision of a court or tribunal is given or any binding
      agreement or determination is made from which either no appeal lies or in
      respect of which no appeal is made within the prescribed time
      limit.

    

    
      	8.2  	
              Where
                a claim under this Schedule relates to the loss or set off of a repayment
                of Tax, the Seller shall pay to the Purchaser the amount claimed
                under
                this Schedule in respect thereof on or before the date which is the
                later
                of the date ten Business Days after demand is made therefor under
                this
                Schedule and the date when such repayment would have been due were
                it not
                for such loss or setting off.

            

    

    

    
      	8.3  	
              Where
                a claim under this Schedule relates to the loss, use or set off of
                any
                relief other than a repayment of Tax, the Seller shall pay to the
                Purchaser the amount claimed under this Schedule in respect thereof
                on or
                before the date which is the later of the date ten Business Days
                after
                demand is made therefor under this Schedule,
                and:

            

    

    

    
      	(a)  	
              in
                the case of a relief which is used or set off, the date or dates
                referred
                to in paragraph 8.1(a) or 8.1(b) that would have applied to the Tax
                saved
                by the use or set off of the relief if that Tax had been payable;
                or

            

    

    

    
      	(b)  	
              in
                the case of a relief which is lost, the date or dates referred to
                in
                paragraph 8.1(a) or 8.1(b) that apply to the Tax which but for such
                loss
                would have been saved by virtue of such relief, ignoring for this
                purpose
                the effect of reliefs (other than deductions in computing profits
                for the
                purposes of Tax) arising in respect of an Event occurring or period
                ending
                after Completion.

            

    

    

    
      	8.4  	
              Where
                a claim under this Schedule relates to Costs of the type referred
                to in
                paragraph 2.4 above, the Seller shall pay to the Purchaser the amount
                claimed under this Schedule in respect thereof on or before the date
                which
                is the later of the date ten Business Days after demand is made therefor
                under this Schedule and the fifth Business Day prior to the date
                when the
                relevant Company becomes liable to pay or incur such Costs under
                the
                relevant sale and purchase
                agreement.

            

    

    

    
      	8.5  	
              Paragraphs
                8.1, 8.2, 8.3 and 8.4 shall apply to any additional amount payable
                under
                paragraphs 4, 5 and 6 so that such amount shall be paid on the later
                of
                the date ten Business Days after demand is made therefor by or on
                behalf
                of the claimant and such other date or dates determined under paragraphs
                8.1, 8.2, 8.3 and 8.4 in relation to the Tax, relief or Costs to
                which the
                claim under paragraph 2 in respect of which such additional amount
                is due,
                relates.

            

    

    

    
      	8.6  	
              Any
                sum not paid by the Seller on the due date for payment specified
                in this
                paragraph 8 shall bear interest (which shall accrue from day to day
                after
                as well as before any judgment for the same) at the rate of 4 per
                cent.
                per annum over the base rate of Barclays Bank Plc. (or in the absence
                of
                such rate at such similar rate as the Purchaser shall select) from
                the due
                date to and including the day of actual payment of such sum, compounded
                quarterly. Such interest shall be paid on the demand of the
                Purchaser.

            

    

    

    
      	9.  	
              RECOVERY
                FROM THIRD PARTIES

            

    

    

    
      	9.1  	
              If
                any payment is made by the Seller under this Schedule in full discharge
                of
                a liability which arises under this Schedule in respect of a Tax
                Liability
                and the Purchaser or either Company subsequently receives from any
                person
                other than the Purchaser or the relevant Company or any person connected
                with any of them a payment or relief in respect of the Tax Liability
                in
                question (which payment or relief is received by virtue of a legal
                right),
                the Purchaser shall pay to the Seller an amount equal to the amount
                received or the amount that the Purchaser or the relevant Company
                will
                save by virtue of the receipt of the relief (less the amount of all
                costs
                and expenses in obtaining such payment or relief, and net of any
                Tax
                payable on the amount received) to the extent that the payment to
                the
                Seller does not exceed the payment originally made by the Seller
                (net of
                any Tax suffered thereon), and to the extent that the right to such
                payment or relief is not prejudiced
                thereby.

            

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    
      	9.2  	
              Where
                the Purchaser or the relevant Company receives a relief as referred
                to in
                paragraph 9.1, a payment shall not be made to the Seller before the
                date
                on which the Tax that would have been payable but for the relief
                would
                have become recoverable by the appropriate Tax Authority, and shall
                not be
                made to the extent that, but for the use of such relief, the relevant
                Company would have had an actual Tax Liability in respect of which
                the
                Purchaser would have been able to make a claim against the Seller
                under
                this Schedule.

            

    

    

    
      	10.  	
              SECONDARY
                LIABILITIES

            

    

    

    
      	10.1  	
              The
                Seller covenants with the Purchaser to pay to the Purchaser an amount
                equivalent to any Tax or any amount on account of Tax which the relevant
                Company, or any other member of the Purchaser’s Group, is required to pay
                as a result of a failure by any member of the Retained Group to discharge
                that Tax.

            

    

    

    
      	10.2  	
              The
                Purchaser covenants with the Seller to pay to the Seller an amount
                equivalent to any Tax or any amount on account of Tax which any member
                of
                the Retained Group is required to pay as a result of a failure by
                the
                relevant Company, or any other member of the Purchaser’s Group, to
                discharge that Tax.

            

    

    

    
      	10.3  	
              The
                covenants contained in paragraphs 10.1 and 10.2
                shall:

            

    

    

    
      	(a)  	
              extend
                to any costs incurred in connection with such Tax or a claim under
                paragraph 10.1 or 10.2 as the case may
                be

            

    

    

    
      	(b)  	
              (in
                the case of paragraph 10.2) not apply to Tax to the extent that the
                Purchaser could claim payment in respect of it under paragraph 2,
                except
                to the extent a payment has been made pursuant to paragraph 2 and
                the Tax
                to which it relates was not paid by the relevant
                Company;

            

    

    

    
      	(c)  	
              not
                apply to Tax to the extent it has been recovered under any relevant
                statutory provision (and the Purchaser or the Seller as the case
                may be
                shall procure that no such recovery is sought to the extent that
                payment
                is made hereunder); and

            

    

    

    
      	(d)  	
              not
                apply to Tax to the extent that a contribution is or has been made
                in
                respect of it pursuant to the group payment arrangement referred
                to in
                paragraph 11.13.

            

    

    

    
      	10.4  	
              Paragraph
                8 (due date for payment) shall apply to the covenants contained in
                paragraphs 10.1 and 10.2 as they apply to the covenants contained
                in
                paragraph 2, replacing references to the Seller by the Purchaser
                (and vice
                versa) where appropriate, and making any other necessary
                modifications.

            

    

    

    
      	11.  	
              MANAGEMENT
                OF PRE-COMPLETION TAX AFFAIRS 

            

    

     

    Interpretation

    

    
      	11.1  	
              In
                this paragraph 11 and in paragraph
                12:

            

    

    

    
      	
            	“accounting
              period”	
              means
                any period by reference to which any income, profits or gains, or
                any
                other amounts relevant for the purposes of Tax, are measured or
                determined;

            

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    
      	
            	“pre-Completion
              Tax affairs”	
              means
                the Tax affairs of each Company and for which the Seller is responsible
                under this paragraph 11;

            

    

    

    
      	
            	“Tax
              documents”	
              means
                the Tax returns, claims and other documents which the Seller is required
                to prepare on behalf of each Company under paragraph 11.2(a) and
                11.2(b);

            

    

    

    
      
        	
              	“Tax
                return”	
                means
                  any return required to be made to any Tax Authority of income,
                  profits or
                  gains or of any other amounts or information relevant for the purposes
                  of
                  Tax, including any related accounts, computations and attachments;
                  and

              

      

    

    

    
      	
            	“time
              limit”	
              means
                the latest date on which a Tax document can be executed or delivered
                to a
                relevant Tax Authority either without incurring interest or a penalty,
                or
                in order to ensure that such Tax document is
                effective.

            

    

    

    Rights
      and Obligations of the Seller

    

    
      	11.2  	
              Subject
                to and in accordance with the provisions of this paragraph the Seller
                or
                its duly authorised agents shall, in respect of all accounting periods
                ending on or before Completion, and at its own
                cost:

            

    

    

    
      	(a)  	
              prepare
                the Tax returns of each Company;

            

    

    

    
      	(b)  	
              (subject
                to paragraph 13) prepare on behalf of each Company all claims, elections,
                surrenders, disclaimers, notices and consents for the purposes of
                Tax;
                and

            

    

    

    
      	(c)  	
              (subject
                to paragraph 7) deal with all matters relating to Tax which concern
                or
                affect each Company, including the conduct of all negotiations and
                correspondence and the reaching of all agreements relating thereto
                or to
                any Tax documents.

            

    

    

    
      	11.3  	
              Except
                with the Purchaser’s written consent, the Seller shall not, and shall
                procure that its duly authorised agents do not, prepare any Tax document
                (or any similar document relating to the Tax affairs of the Seller
                or any
                company under its control) which comprises or includes a claim, election,
                surrender, disclaimer, notice or consent, or withdraw any such item
                unless
                the making, giving or withdrawal of it (as the case may be) either
                has
                been taken into account in preparing the Accounts and the Reference
                Accounts, or could not have any adverse effect on the liability to
                Tax of
                the relevant Company.

            

    

    

    
      	11.4  	
              The
                Seller or its duly authorised agents shall deliver all Tax documents
                to
                the Purchaser for authorisation, signing and submission to the relevant
                Tax Authority. If a time limit applies in relation to any Tax document,
                the Seller shall ensure that the Purchaser receives the Tax document
                no
                later than 10 Business Days before the expiry of the time
                limit.

            

    

    

    
      	11.5  	
              If
                the Seller or its duly authorised agent fails to deliver a Tax document
                to
                which a time limit applies to the Purchaser within the period specified
                in
                paragraph 11.4, and such Tax document is a Tax return or is otherwise
                material to the Tax position of the relevant
                Company:

            

    

    

    
      	(a)  	
              the
                Seller shall notify the Purchaser of such failure as soon as is
                practicable;

            

    

    

    
      	(b)  	
              the
                Purchaser shall be permitted to arrange for the preparation and submission
                of the Tax document (but shall not be liable for any failure to do so);
                and

            

    

    

    
      	(c)  	
              (for
                the avoidance of doubt) paragraph 2.1(c) shall apply in respect of
                such
                failure.

            

    

    

    
      	11.6  	
              The
                Seller shall procure that:

            

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              the
                Purchaser is kept fully informed of the progress of all matters relating
                to the pre-Completion Tax affairs;

            

    

    

    
      	(b)  	
              the
                Purchaser promptly receives copies of all written correspondence
                with any
                Tax Authority insofar as it is relevant to the pre-Completion Tax
                affairs;

            

    

    

    
      	(c)  	
              no
                Tax document is submitted to any Tax Authority which is not, so far
                as the
                Seller is aware, complete, true and accurate in all respects, and
                not
                misleading; and

            

    

    

    
      	(d)  	
              no
                Material Correspondence is submitted to, or any Material Agreement
                reached
                with, any Tax Authority without the prior approval of the Purchaser
                (such
                approval not to be unreasonably withheld or
                delayed).

            

    

    

    For
      the
      purposes of sub-paragraph 11.6(d) above, Material Correspondence and Material
      Agreements are Tax documents, other correspondence and agreements which the
      Seller considers or ought reasonably to consider may be of material importance
      to the Purchaser as regards either the future relationship with the Tax
      Authority concerned, or the future liability to Tax, of the Purchaser or the
      relevant Company.

    

    
      	11.7  	
              The
                Seller agrees to devote reasonable resources to dealing with
                pre-Completion Tax affairs, and shall use reasonable endeavours to
                ensure
                that they are finalised as soon as reasonably practicable. Following
                such
                date the Seller and its agents shall cease to be responsible for,
                or to
                have power or authority to deal with, pre-Completion Tax affairs
                on behalf
                of the Companies but shall pay to the Purchaser the amount of any
                reasonable costs and expenses thereafter incurred in conducting such
                affairs.

            

    

    

    Obligations
      of the Purchaser

    

    
      	11.8  	
              The
                Purchaser shall procure that:

            

    

    

    
      	(a)  	
              the
                Seller and its duly authorised agents are afforded such access (including
                the taking of copies) to the books, accounts and records of the Companies
                and such other assistance as it or they reasonably require to enable
                the
                Seller to discharge its obligations under paragraph 11.2 and to enable
                the
                Seller and any member of the Retained Group to comply with its own
                Tax
                obligations; and

            

    

    

    
      	(b)  	
              the
                Seller is sent a copy of any communication from any Tax Authority
                insofar
                as it relates to the pre-Completion Tax
                affairs.

            

    

    

    
      	11.9  	
              The
                Purchaser shall (subject to paragraph 11.10 below and to compliance
                by the
                Seller with the other provisions of this paragraph 11) be obliged
                to
                procure that each Company shall cause any Tax document delivered
                to it
                under paragraph 11.4 to be authorised, signed and submitted to the
                appropriate Tax Authority.

            

    

    

    Rights
      of the Purchaser

    

    
      	11.10  	
              The
                Purchaser shall be under no obligation to procure the authorisation,
                signing, or submission to a Tax Authority of any Tax document delivered
                to
                it under paragraph 11.4 which it considers in its reasonable opinion
                to be
                false, misleading, incomplete or inaccurate in any respect, but for
                the
                avoidance of doubt shall be under no obligation to make any enquiry
                as to
                the completeness or accuracy thereof and shall be entitled to rely
                entirely on the Seller and its
                agents.

            

    

    

    
      	11.11  	
              If
                the Purchaser considers in its reasonable opinion
                that:

            

    

    

    
      	(a)  	
              any
                Tax document prepared by or on behalf of the Seller pursuant to paragraph
                11.2 is false, misleading, incomplete or inaccurate in any material
                respect (otherwise than as a result of the non-disclosure of information
                by the Purchaser or either Company to the Seller);
                or

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              the
                way in which the Seller or its duly authorised agents are conducting
                or
                are proposing to conduct the pre-Completion Tax affairs is improper
                or
                negligent or is likely to:

            

    

    

    
      	(i)  	
              involve
                unreasonable delay in reaching agreement with a relevant Tax Authority;
                or

            

    

    

    
      	(ii)  	
              prejudice
                the future relationship with the Tax Authority of the Purchaser or
                either
                Company,

            

    

    

    then,
      without prejudice to any rights or remedies available to the Purchaser under
      this Schedule, the Purchaser shall be entitled to serve notice on the Seller
      terminating its authority to deal with pre-Completion Tax affairs, whereupon
      the
      provisions of paragraph 11.7 shall apply as if the date referred to in that
      paragraph had passed.

    

    
      	12.  	
              CONDUCT
                OF OTHER TAX AFFAIRS

            

    

    

    
      	12.1  	
              The
                Purchaser or its duly authorised agents shall have sole conduct of
                all Tax
                affairs of the Companies which are not pre-Completion Tax affairs
                and
                shall be entitled to deal with such Tax affairs in any way in which
                it, in
                its absolute discretion, considers
                fit.

            

    

    

    
      	12.2  	
              In
                respect of any accounting period commencing prior to Completion and
                ending
                after Completion (the “Straddle
                Period”)
                the Purchaser shall procure that the Tax returns of each Company
                shall be
                prepared on a basis which is consistent with the manner in which
                the Tax
                returns of each Company were prepared for all accounting periods
                ending
                prior to Completion.

            

    

    

    
      	12.3  	
              The
                Seller shall provide such assistance as the Purchaser shall reasonably
                request in preparing all Tax returns relating to the Straddle
                Period.

            

    

    

    
      
        
        

      

      
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    SCHEDULE 8

    Definitions
      and Interpretation

     

    
      	1.  	
              In
                this Agreement, including the Background and Schedules, the following
                words and expressions shall have the words and meanings given in
                Schedule

            

    

     

    
      	
              “Accounts”

               

            	
              means
                the audited annual accounts of the Companies for the financial year
                ended
                on the Accounts Date;

               

            
	
              “Accounts
                Date”

               

            	
              means
                31 December 2006;

               

            
	
              “AG”

               

            	
              means
                Andrew Geer of Gibbet Oak, Appledore Road, Tenterden, Kent. TN30
                7DH;

               

            
	
              “AG
                Account”

               

            	
              means
                the account in the names of A Geer and L Geer held at Barclays Bank
                plc
                with account number: 30048216 and sort code: 202542; 

               

            
	
              “AG
                Loan”

               

            	
              means
                an interest-free loan in the sum of £89,297.50 made by AG to MMAP and
                repayable on demand; 

               

            
	
              “BEI
                Contracts”

               

            	
              means
                all of the contracts relating to the Business to which the Seller
                is a
                party including, but not limited to, all those contracts listed in
                Schedule 2
                of
                this Agreement; 

               

            
	
              “Business” 

               

            	
              means
                the mixed martial arts business known as “Cage Rage” as carried on by the
                Companies at the Effective Date including, but not limited to: (a)
                recruiting and promoting fighters; (b) promoting and staging mixed
                martial
                arts fights; (c) branding and licensing mixed martial arts brands
                and
                logos; (d) licensing broadcast rights to mixed martial arts events;
                (e)
                advertising and sponsorship sales; and (f) merchandise sales, together
                with any of these activities which may be carried on by the
                Seller;

               

            
	
              “Business
                Assets”

               

            	
              means
                any assets, whether Intellectual Property or otherwise, relating
                to the
                Business and not owned by the Companies; 

               

            
	
              “Business
                Day”

               

            	
              means
                a day (other than a Saturday or Sunday) on which banks are open for
                business in the City of London;

               

            
	
              “Business
                Information”

               

            	
              means
                all information, Know-How, documentation, books and records (on whatever
                medium stored) relating (wholly or partly) to the Business and/or
                any
                products manufactured or sold or services rendered by the Business
                held by
                or under the control of the Seller or the Companies including all
                books of
                account, and accounting records, documents relating to the management,
                administration or financial affairs of the Business and the Companies
                (including any business plans or forecasts, information relating
                to future
                business development or planning information relating to any litigation
                or
                legal advice) payroll records, income records, tax records, stock
                and
                other records, correspondence, promotional materials, lists and other
                information relating to clients, customers, suppliers, licensors
                and
                licensees, documents relating to the sale or marketing of any products
                manufactured, produced, sold or licensed or services rendered by
                the
                Companies or the Business including all sales, marketing and promotional
                information or documents (including any targets, sales and/or market
                share
                statistics, market surveys and reports and research), technical or
                computer software and hardware manuals and other books and all other
                documents which relate to the Companies or the Business;

               

            

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    
      	
              “Business
                Name”

               

            	
              means
                any one of “Cage Rage”; “Cage Rage Championships”, “Cage Rage Contenders”,
                “Ultimate Fighter”, “Ultimate Fighting Championships” and
                “UFC”;

               

            
	
              “Claim”

               

            	
              means
                a claim by the Purchaser against the Seller for a breach of a
                Warranty;

               

            
	
              “Companies
                Act”

               

            	
              means
                the Companies Act 1985, as amended and the Companies Act
                2006;;

               

            
	
              “Completion”

               

            	
              means
                the completion of this agreement by the performance of the obligations
                set
                out in Clause 5.2
                and “Completed”
                shall be construed accordingly;

               

            
	
              “Completion
                Date”

               

            	
              means
                the date of Completion

               

            
	
              “Confidential
                Information”

               

            	
              means
                all information (whether oral or written) acquired by the Seller
                (whether
                before or after the date of this Agreement and whether directly or
                indirectly) which relates to the affairs or business of the Purchaser
                including all information relating to the affairs of MMAD, MMAP and
                the
                Business;

            
	
              “Consideration”

               

            	
              means
                the sum of (a) the Initial Consideration; (b) the Share Consideration;
                and
                (c) the Deferred Consideration;

               

            
	
              “Consideration
                Shares”

               

            	
              means
                the shares of US$0.0001 each in the Purchaser that are to be issued
                in
                accordance with clause 3
                of
                this Agreement as part of the Consideration and on the terms set
                out in
                Schedule 4;

               

            
	
              “Customs”

               

            	
              means
                HM Revenue and Customs; 

               

            
	
              “Databases”

               

            	
              means
                collections of data in machine readable form relating to the Business
                or
                the Employees including all databases relating to customers, suppliers,
                contributors, licensors and licensees and/or employees;

               

            
	
              “Data
                Protection Legislation”

               

            	
              means
                the Data Protection Act 1998 and the Data Protection Act 1984 (to
                the
                extent still in force) and any other applicable data protection
                legislation, regulations and guidance in force from time to time
                throughout the world as are relevant to the compiling and use of
                personal
                data including industry best practice from time to time;

               

            
	
              “Deed
                of Release”

               

            	
              means
                the deed of release dated on the same day as this Agreement and executed
                by IT&S, the Seller, AG, JF, MMAP and MMAD;

               

            
	
              “Disclosed”

               

            	
              means
                in respect of any fact, matter or circumstance fully and fairly disclosed
                to the Purchaser in the Disclosure Letter with sufficient explanation
                and
                detail to enable the Purchaser to identify clearly the nature, scope
                and
                full implications of the relevant fact, matter or circumstance being
                disclosed;

               

            

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    
      	
              “Disclosure
                Letter”

               

            	
              means
                the letter of today’s date in the agreed form from the Seller to the
                Purchaser (together with any attachments) disclosing
                information;

               

            
	
              “DOD”

               

            	
              means
                David O’Donnell of 126 Hartland Avenue, Sidcup, Kent DA15 7PA;
                

               

            
	
              “Domain
                Names”

               

            	
              means
                

               

              cagerage.com

              cagerage.co.uk

              cagerage.tv

              cagerageentertainment.co.uk

              cagerageentertainment.com

              cageragelimited.co.uk

              cageragelimited.com

              mmapromotions.com

              crc.tv
                

               

              and
                any other domain names used in connection with the Business;

               

            
	
              “Employees”

               

            	
              means
                Mohamed Anwar Peersaib, a temporary staff member;

               

            
	
              “Encumbrance”

               

            	
              means
                any claim, charge, mortgage, pledge, trust, security, lien, restriction
                on
                transfer, easement, option, equity, power of sale, hypothecation
                or other
                third party rights, retention of title, right of pre-emption, right
                of
                first refusal, any other security interest of any kind or restrictions
                on
                the creation of any of the foregoing;

               

            
	
              “Effective
                Date”

               

            	
              means
                21 April 2007; 

               

            
	
              “Goodwill” 

               

            	
              means
                the goodwill, custom and connection of the Seller in relation to
                the
                Business together with the exclusive right for the Purchaser and
                its
                successors and assigns to represent themselves as carrying on the
                Business
                in succession to the Seller and the exclusive right to use the Business
                Name and all other trade names associated with the Business;

               

            
	
              “HMRC”

               

            	
              means
                HM Revenue and Customs; 

               

            
	
              “Intellectual
                Property”

               

            	
              means
                any and all intellectual property rights or analogous intangible
                rights
                including all patents, patent applications, trade marks, service
                marks,
                business names, trade names, Domain Names, logos and get-up, emblems,
                registered designs, unregistered designs, copyrights (including copyright
                in any computer programs), rights relating to layout, design graphics,
                and
                text, rights relating to look and feel and formulas and rights to
                any
                underlying source code and object code, all database rights, software
                programmes and source codes, topography rights and other forms of
                intellectual or industrial property (whether or not registered or
                registerable and for the full period thereof and all extensions and
                renewals thereof and applications for registration of or otherwise
                in
                connection with the foregoing), Know-How, inventions, formulae,
                confidential or secret processes and information (in each case in
                any part
                of the world), unfair competition rights and rights to sue for passing
                off
                or past infringements, rights under licences, consents, order, statutes
                or
                otherwise in respect of any rights of the nature specified above
                and
                rights of the same or similar effect or nature as the foregoing in
                any
                jurisdiction;

               

            

    

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    
      	
              “Intellectual
                Property Rights”

               

            	
              means
                all Intellectual Property owned (legally or beneficially), used or
                licensed by the Companies or otherwise in relation to the Business,
                including, but not limited to the names and marks “Cage Rage”, “Cage Rage
                Championships” and “Cage Rage Contenders”;

               

            
	
              “IP
                Assignment”

               

            	
              means
                the assignment, in the Agreed Form, from the Seller to the Purchaser
                of
                certain Intellectual Property Rights relating to the
                Business;

               

            
	
              “IT
                System”

               

            	
              means
                all computer hardware (including network and telecommunications equipment)
                and software (including associated preparatory materials, user manuals
                and
                other related documentation) owned, used, leased or licensed by the
                Companies or by the Seller in relation to the Business;

               

            
	
              “IT&S”

               

            	
              means
                Integrated Technologies and Systems Limited, a company incorporated
                in the
                British Virgin Islands with registered number 203811 and with a registered
                office at Akara Building, 24 De Castro Street, Road Town, Tortola,
                British
                Virgin Islands;

               

            
	
              “IT&S
                Loan”

               

            	
              means
                an interest-free loan made by IT&S to MMAP in the sum of £1,291,717.14
                and repayable on demand;

               

            
	
              “Know-How”

               

            	
              means
                all information not publicly known which is owned and/or used by
                the
                Seller or the Companies in connection with the Business existing
                in any
                form (including paper, electronically stored data, magnetic media,
                film
                and microfilm);

               

            
	
              “Licences,
                Permissions and Permits”

               

            	
              means
                any and all licences, permissions and permits that are required for
                the
                carrying out of the Business;

               

            
	
              “Marketing
                Materials”

               

            	
              means
                all advertising, publishing, promotional and marketing materials
                relating
                to, used (or intended for use) by the Seller or its agent(s) in connection
                with the Business;

               

            
	
              “Material
                Adverse Change”

               

            	
              means
                any material adverse change in the business, operations, assets,
                position
                (financial, trading or otherwise), profits or prospects of the Companies
                or any event or circumstances that may result in such a material
                adverse
                change;

               

            
	
              “New
                Employment Agreements”

               

            	
              means
                the employment agreements in the agreed form to be entered into between
                MMAP and each of DOD and AG;

               

            
	
              “Non-Tax
                Claim”

               

            	
              means
                a Claim which is not a Tax Claim; 

               

            
	
              “Purchaser’s
                Bank Account”

               

            	
              means
                such account in the name of the Purchaser as may be notified by the
                Purchaser to the Seller from time to time;

               

            

    

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

    
      	
              “Purchaser’s
                Group”

               

            	
              means
                the Purchaser and any subsidiary, holding company or associate of
                the
                Purchaser;

               

            
	
              “Purchaser’s
                Solicitors”

               

            	
              means
                Harbottle & Lewis LLP of Hanover House, 14 Hanover Square, London W1S
                1HP;

               

            
	
              “Reference
                Accounts”

               

            	
              means
                the balance sheet of MMAP as at 31 August 2007 set out in Schedule 6
                of
                this Agreement;

               

            
	
              “Regulations” 

               

            	
              means
                the Transfer of Undertakings (Protection of Employment) Regulations
                2006,
                as amended;

               

            
	
              “Restricted
                Customer”

               

            	
              means
                any firm, company or other person who, during the period of 12 months
                ending on the Completion Date, was a client, customer of or in the
                habit
                of dealing with the Business or with whom the Business was involved
                in
                negotiations with a view to such firm, company or other person becoming
                a
                client or customer of the Business;

               

            
	
              “Restricted
                Supplier”

               

            	
              means
                any firm, company or other person who, during the period of 12 months
                ending on the Completion Date was a supplier or licensor of goods,
                services and/or rights to the Business or with whom the Business
                was
                involved in negotiations with a view to such firm, company or other
                person
                becoming a supplier or licensor of the Business;

               

            
	
              “Seller’s
                Bank Account

               

            	
              means
                the bank account in the name of Donald C Sider & Associates P.A., PE
                Trust Account with Sun Trust Bank, South Florida, N.A. 800 S. Federal
                Highway, Boca Raton, Florida 33486 with account number 0494002024235
                and
                routing and transit no.: 061000104;

               

            
	
              “Shares”

               

            	
              means
                the entire issued share capital of MMAP and MMAD at the date of this
                Agreement;

               

            
	
              “Tax” or
                “Taxation”

               

            	
              shall
                have the meaning given in the Tax Covenant;

               

            
	
              “Tax
                Authority”

               

            	
              shall
                have the meaning given in the Tax Covenant;

               

            
	
              “Tax
                Claim”

               

            	
              means
                a claim by the Purchaser against the Seller for a breach of the Tax
                Covenant or the Tax Warranties;

               

            
	
              “Tax
                Covenant”

               

            	
              means
                the covenant relating to Tax contained in Schedule 7
                and in the Agreed Form which will come into force at
                Completion;

               

            
	
              “Tax
                Warranties”

               

            	
              means
                the Warranties set out in Part 2 of Schedule 3
                and any other Warranty insofar as it relates to Tax and “Tax Warranty”
                means any one of them; and

               

            
	
              “Warranties”

               

            	
              means
                all of the warranties, representations and undertakings given by
                the
                Seller referred to in Clause 10
                and set out in Schedule 3
                (Parts 1 and 2) and “Warranty”
                means any one of them; and

            

    

     

    
      	2.  	
              In
                this Agreement, unless otherwise specified, references to:
                

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              any
                statute or statutory provision are to that statute or statutory provision
                as from time to time amended, extended, consolidated or re-enacted
                and any
                subordinate legislation made under it except insofar as any such
                amendment, consolidation or re-enactment made after the date of this
                Agreement would impose any increased or new liability on any
                party;

            

    

     

    
      	(b)  	
              a
                “person”
                includes any individual, company, firm, corporation, partnership,
                joint
                venture, association, institution or government (whether or not having
                a
                separate legal personality);

            

    

     

    
      	(c)  	
              a
                “party”
                means a party to this Agreement and shall include its assignees and
                successors in title if and as permitted in accordance with this
                Agreement;

            

    

     

    
      	(d)  	
              background,
                clauses and schedules are references to the background, clauses and
                schedules of this Agreement;

            

    

     

    
      	(e)  	
              one
                gender include all genders and references to the singular include
                the
                plural and vice versa; 

            

    

     

    
      	(f)  	
              a
                document are references to that document as from time to time varied
                or
                supplemented;

            

    

     

    
      	(g)  	
              a
                document in the “agreed
                form”
                are references to such document in the terms agreed by the parties
                and for
                the purposes of identification initialled by each party on or before
                the
                date of this Agreement;

            

    

     

    
      	(h)  	
              a
                “subsidiary”
                or “holding
                company”
                shall be construed in accordance with Section 736 of the Companies
                Act;

            

    

     

    
      	(i)  	
              a
                person being “connected”
                to another person shall be construed in accordance with Section 346
                of the
                Companies Act; 

            

    

     

    
      	(j)  	
              a
                person being an “associate”
                of another person shall be construed in accordance with Section 435
                of the
                Insolvency Act 1986; and

            

    

     

    
      	(k)  	
              “written”
                or “in
                writing”
                includes faxes but not email.

            

    

     

    
      	3.  	
              The
                headings in this Agreement are for guidance only and shall not affect
                its
                interpretation.

            

    

     

    
      	4.  	
              The
                use of the term “including”,
                or any similar expression shall be construed as illustrative and
                shall not
                limit the sense of the words preceding or following that
                term.

            

    

     

    
      	5.  	
              The
                Schedules form part of this Agreement and will be of full force and
                effect
                as though they were expressly set out in the body of this
                Agreement.

            

    

    

     

    
      	
              Executed
                and delivered as a Deed by

               

              duly
                authorised on behalf of 

              BELGRAVIA
                ENTERTAINMENT 

              INTERNATIONAL
                LIMITED

            	
              )

              )

              )

              )

              )

              )

              )

               

            	
               

            
	
              Authorised
                signatory

            
	
            

    

    

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    
      	
              Executed
                and delivered as a Deed by

              JOHN
                FARADAY 

               

            	
              )

              )

              )

              )

              )

              )

              )

            	
               

               

            
	
               

               

            
	
              Witnessed
                by:

               

            
	 	 	
              Name

               

            
	 	 	
               

              Address

               

               

            

    

    

     

    
      	
              Executed
                and delivered as a Deed by

               

              duly
                authorised on behalf of 

              PROELITE,
                INC. 

               

            	
              )

              )

              )

              )

              )

              )

              )

            	
               

               

            
	
              Director

               

            
	
              Director

               

            

    

    

    
      
        
        

      

      
        61

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]