Document:

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                                                                    Exhibit 10.1

                            STOCK PURCHASE AGREEMENT

        THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made as of this 6th
day of November, 2001, by and among Restoration Hardware, Inc., a Delaware
corporation (the "Company"), and the investors named in the attached Schedule I
(each an "Investor" and collectively, the "Investors").

        WHEREAS, the Company desires to issue and sell to the Investors,
severally and not jointly, and the Investors desire to acquire, severally and
not jointly, from the Company shares (the "Shares") of the Company's common
stock, par value $0.0001 per share ("Common Stock"), for the consideration
specified in Schedule I hereto (the "Purchase Price"), subject to the terms
herein; and

        WHEREAS, the Company and the Investors desire to set forth certain
matters to which they have agreed relating to the Shares.

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained in this Agreement, the parties agree as follows:

                                    ARTICLE I

                           ISSUANCE OF SHARES; CLOSING

        SECTION 1.1 Authorization of Shares. Subject to the terms and conditions
of this Agreement, the Company has authorized the issuance of the Shares
pursuant to this Agreement.

        SECTION 1.2 Purchase and Sale of Shares. Subject to the terms and
conditions of this Agreement and in reliance upon the representations and
warranties of the Company contained herein, each Investor agrees to purchase
from the Company, and the Company agrees to sell to such Investor, on the
Closing Date (as hereinafter defined) the aggregate number of Shares set forth
opposite such Investor's name on Schedule I. The Purchase Price for the Shares
shall be $3.90 per Share.

        SECTION 1.3 Closing; Delivery of the Shares at Closing. The completion
of the purchase and sale of the Shares (the "Closing") shall occur at 1 p.m.
local time at the offices of Morrison & Foerster LLP, 425 Market Street, San
Francisco, CA 94105, on the date of this Agreement, or at such other location,
date and time as may be mutually agreed upon by the Company and the Investors
purchasing a majority of the Shares (such date being referred to herein as the
"Closing Date"). At the Closing, the Company shall deliver to each Investor one
or more stock certificates representing the number of Shares set forth opposite
such Investor's name on Schedule I hereto, each such certificate to be
registered in the name of such Investor or, if so indicated on Schedule I
hereto, in the name of a nominee designated by such Investor.

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        The Company's obligation to issue the Shares to each Investor shall be
subject to the following conditions, any one or more of which may be waived by
the Company: (a) receipt by the Company of a certified or official bank check or
wire transfer of funds in the full amount of the purchase price for the Shares
being purchased hereunder by such Investor at or prior to the Closing Date; (b)
the accuracy of the representations and warranties made by such Investor as of
the date hereof and on the Closing Date and the fulfillment of those
undertakings of such Investor to be fulfilled prior to the Closing; and (c) the
Company shall have obtained any and all consents and waivers necessary for
consummation of the transactions contemplated by this Agreement, except for the
failure to receive consents and waivers, which in the aggregate, would not have
a material adverse effect on the Company, taken as a whole.

        Each Investor's obligation to purchase the Shares shall be subject to
the following conditions, any one or more of which may be waived by such
Investor: (a) the accuracy of the representations and warranties of the Company
as of the date hereof and on the Closing Date; and (b) the Investors shall have
received an opinion of Morrison & Foerster LLP, counsel for the Company,
substantially in the form of Exhibit A hereto.

                                   ARTICLE II

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

        The Company hereby represents and warrants to each Investor that, except
as set forth in the Schedule of Exceptions, dated as of the date hereof (the
"Schedule of Exceptions"), attached to this Agreement as Exhibit B (which
Schedule of Exceptions shall be deemed to be representations and warranties to
the Investors and which Schedule of Exceptions shall expressly identify the
specific representation and warranty in this Article II to which such exception
pertains), the statements in this Article II are all true and correct:

        SECTION 2.1 Organization and Standing of the Company. The Company is a
corporation duly organized, validly existing and in good standing under, and by
virtue of, the laws of the State of Delaware, and the Company has all requisite
corporate power and authority to own its properties and assets and to carry on
its business as now conducted.

        SECTION 2.2 Capitalization.

        (a)     Authorized. The Company's authorized capital stock consists of a
total of 60,000,000 shares of Common Stock, $0.0001 par value per share, and a
total of 5,000,000 shares of preferred stock of the Company, $0.0001 par value
per share ("Preferred Stock"), of which 28,037 shares of Preferred Stock are
designated as Series A Preferred Stock and 21,217 shares are designated as
Series B Preferred Stock.

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        (b)     Issued and Outstanding. As of October 31, 2001, of the
authorized shares of Common Stock, 23,867,698 shares of Common Stock were issued
and outstanding. Of the authorized shares of Preferred Stock, 15,000 shares of
Series A Preferred Stock are issued and outstanding. All such outstanding shares
are validly issued, fully paid and non-assessable.

        (c)     Options, Warrants, Reserved Shares. The Company has reserved
14,018,500 shares of its Common Stock for possible issuance upon the conversion
of the issued and outstanding shares of Series A Preferred Stock. Except for (a)
the conversion privileges of the Series A Preferred Stock and (b) as of October
31, 2001, outstanding options to purchase or commitments to issue 3,540,970,
shares of Common Stock, warrants for 550,000 shares of Common Stock pursuant to
existing credit agreements and an additional 1,742,445 shares of Common Stock
reserved for issuance, either directly or through options to employees,
directors, agents and consultants to the Company, there are not outstanding any
options, warrants, rights (including conversion or preemptive rights) or
agreements for the purchase or acquisition from the Company of any shares of its
capital stock.

        SECTION 2.3 Validity of this Agreement. All corporate action on the part
of the Company, its officers and its directors necessary for the authorization,
execution and delivery of, and the performance of all obligations of the Company
under this Agreement and the authorization, issuance, reservation for issuance
and delivery of all of the Shares being sold under this Agreement has been taken
or will be taken prior to the Closing. This Agreement is a valid and binding
obligation of the Company enforceable in accordance with its terms, subject, as
to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors' rights generally and to
general equitable principles. The execution and delivery by the Company of this
Agreement and the performance by the Company of its obligations hereunder and
the issuance, sale, and delivery of the Shares, will not (i) conflict with, or
result in any breach of any of the terms of, or constitute a default under, the
charter documents or bylaws of the Company, or (ii) result in the creation of
any lien, charge or encumbrance upon any of the Company's properties or assets,
nor conflict with, result in a breach of, constitute a default under, result in
the acceleration of, create in any party the right to accelerate, terminate,
modify or cancel or require any notice under any agreement, instrument, covenant
or other restriction or arrangement to which the Company is a party or by which
it or any of its properties or assets is bound, except where such lien, charge,
encumbrance, conflict, breach or default would not have a material adverse
effect on the business, financial condition, properties, operations or results
of operations of the Company.

        SECTION 2.4 Governmental Consent, etc. No consents, approvals, orders,
authorizations or registrations, qualifications, designations, declarations or
filings with any foreign, federal, state or local governmental authority on the
part of the Company (collectively, "Governmental Consents") are required in
connection with the consummation of the transactions contemplated herein or
performance of the Company's obligations hereunder, and all Governmental
Consents shall have been obtained prior to and be effective as of the Closing.

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        SECTION 2.5 Valid Issuance of Shares. The Shares, when issued, sold and
delivered in accordance with the terms of this Agreement, will be duly
authorized and validly issued, fully paid and nonassessable.

        SECTION 2.6 SEC Documents. The Common Stock of the Company is registered
pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the Securities
and Exchange Commission (the "SEC") pursuant to the reporting requirements of
the Exchange Act, including material filed pursuant to Section 13(a) or 15(d),
in addition to one or more registration statements and amendments thereto
heretofore filed by the Company with the SEC (all of the foregoing, including
filings incorporated by reference therein, being referred to herein as the "SEC
Documents"). The Company has delivered or made available to the Investors
(including via EDGAR) true and complete copies of all SEC Documents (including,
without limitation, proxy information and solicitation materials and
registration statements) filed with the SEC since April 14, 1998. As of their
respective dates, the SEC Documents complied in all material respects with the
requirements of the Securities Act of 1933, as amended (the "Securities Act"),
or the Exchange Act, as applicable, and the rules and regulations of the SEC
promulgated thereunder and other federal, state and local laws, rules and
regulations applicable to such SEC Documents, and none of the SEC Documents
contained any untrue statement of a material fact or omitted to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC
Documents comply as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC or other
applicable rules and regulations with respect thereto.

        SECTION 2.7 Securities Laws. All notices, filings, registrations or
qualifications under state securities or "blue sky" laws, which are required in
connection with the offer, issuance, sale and delivery of the Shares pursuant to
this Agreement, have been, or will be, completed by the Company.

        SECTION 2.8 Compliance. The Company is not in any violation, breach,
default, modification or termination of any term of its charter documents or its
bylaws or any provision of any foreign or domestic state or federal judgment,
decree, order, statute, rule or regulation applicable to or binding upon it,
which such violation, breach, default, modification or termination, individually
or in the aggregate, would have a material adverse effect on the business,
financial condition, properties, operations or results of operations of the
Company.

        SECTION 2.9 Nasdaq Compliance. The Company's Common Stock is registered
pursuant to Section 12(g) of the Exchange Act and listed on The Nasdaq Stock
Market ("Nasdaq"), and the Company has not been contacted by the National
Association of Securities Dealers, Inc. ("NASD"), either orally or in writing,
concerning potential delisting of the Common Stock from the NASDAQ National
Market System.

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                                   ARTICLE III

                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                                OF THE INVESTORS

        Each Investor, severally and not jointly, hereby acknowledges,
represents, warrants and agrees as follows:

        SECTION 3.1 Investor Representations. The Investor represents and
warrants to, and covenants with, the Company that: (i) the Investor is an
"accredited investor" as defined in Regulation D under the Securities Act and
the Investor is also knowledgeable, sophisticated and experienced in making, and
is qualified to make, decisions with respect to investments in shares presenting
an investment decision like that involved in the purchase of the Shares,
including investments in comparable companies, and has requested, received,
reviewed and considered all information it deemed relevant in making an informed
decision to purchase the Shares; (ii) the Investor is acquiring the number of
Shares set forth on Schedule I hereto in the ordinary course of its business and
for its own account for investment only and with no present intention of
distributing any of such Shares or entering into any arrangement or
understanding with any other persons regarding the distribution of such Shares;
(iii) the Investor will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of) any of the Shares except in compliance
with the Securities Act, applicable state securities laws and the respective
rules and regulations promulgated thereunder; and (iv) the Investor has, in
connection with its decision to purchase the number of Shares set forth on
Schedule I hereto, relied only upon the representations and warranties of the
Company contained herein. Subject to Article IV herein, the Investor understands
that its acquisition of the Shares has not been registered under the Securities
Act or registered or qualified under any state securities law in reliance on
specific exemptions therefrom, which exemptions may depend upon, among other
things, the bona fide nature of the Investor's investment intent as expressed
herein.

        SECTION 3.2 Compliance With Securities Laws. The Investor hereby
covenants with the Company not to make any sale of the Shares without complying
with the provisions of this Agreement, and without effectively causing the
prospectus delivery requirement under the Securities Act to be satisfied (unless
the Investor is selling such Shares in a transaction not subject to the
prospectus delivery requirements), and the Investor acknowledges that the
certificates evidencing the Shares will be imprinted with a legend that
prohibits their transfer except in accordance therewith.

        SECTION 3.3 Authority of Investor; Validity of this Agreement. The
Investor further represents and warrants to, and covenants with, the Company
that (i) the Investor has full right, power, authority and capacity to enter
into this Agreement and to consummate the transactions contemplated hereby and
has taken all necessary action to authorize the execution, delivery and
performance of this Agreement, and (ii) this Agreement constitutes a valid and
binding obligation of the Investor enforceable against the Investor in
accordance with its terms, subject,

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as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors' rights generally and to
general equitable principles. The execution and delivery by the Investor of this
Agreement and the performance by the Investor of its obligations hereunder and
the purchase of the Investor's Shares will not conflict with, or result in any
breach of any of the terms of, or constitute a default under, where applicable,
the internal fund restrictions of the Investor's fund(s) or the governing
documents of such fund(s).

        SECTION 3.4 Investment Decision by Investor. The Investor understands
that nothing in this Agreement or any other materials presented to the Investor
in connection with the purchase and sale of the Shares constitutes legal, tax or
investment advice. The Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of the Shares.

                                   ARTICLE IV

                               REGISTRATION RIGHTS

        SECTION 4.1 Registration of Shares.

                (a)     In order to cause the Shares then held by each Investor
to be registered under the Securities Act so as to permit the sale thereof as
set forth in this Section 4.1, the Company shall use its reasonable best
efforts, within fifteen days after the Closing Date, to (but in no event later
than thirty (30) days after the Closing Date) (i) prepare and file with the SEC
a registration statement on Form S-3 (or successor form) under the Securities
Act, or (ii) include such Shares then held by each Investor in an existing
registration statement on Form S-3 on file with the SEC (the registration
statement described in items (i) and (ii), the "Registration Statement");
provided, however, that each Investor shall provide all such information and
materials and take all such action as may be required or reasonably requested in
order to permit the Company to comply with all applicable requirements of the
Securities Act, the Exchange Act, the NASD and Nasdaq and to obtain any desired
acceleration of the effective date of the Registration Statement, such provision
of information and materials to be a condition precedent to the obligations of
the Company pursuant to this Section 4.1 to register the Shares held by such
Investor. The offerings made by the Investors participating pursuant to the
Registration Statement shall not be underwritten.

                (b)     Subject to Section 4.2 hereof, the Company shall: (i)
prepare and file with the SEC, or amend, as applicable, the Registration
Statement in accordance with Section 4.1 hereof with respect to the Shares and
shall use its reasonable best efforts to cause the Registration Statement to
become effective within sixty (60) days after the Registration Statement is
filed with the SEC or amended, as applicable, and to keep the Registration
Statement effective until the sooner to occur of (A) the date on which all the
Shares included within the Registration Statement have been sold, (B) the date
on which all Investors, respectively, may sell in compliance with any applicable
volume limitations under Rule 144 all

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of their Shares within a three month period under Rule 144 of the Securities
Act, or (C) the second anniversary of the Closing Date; (ii) prepare and file
with the SEC such amendments to the Registration Statement and amendments or
supplements to the prospectuses used in connection therewith as may be necessary
to comply with the provisions of the Securities Act with respect to the sale or
other disposition of the Shares registered by the Registration Statement; (iii)
furnish to each Investor such number of copies of any prospectuses (including
any preliminary prospectus and any amended, combined or supplemented prospectus)
in conformity with the requirements of the Securities Act, and such other
documents, as each Investor may reasonably request in order to effect the
offering and sale of the Shares to be offered and sold, but only while the
Company shall be required under the provisions hereof to cause the Registration
Statement to remain effective; (iv) use its reasonable best efforts to register
or qualify the Shares covered by the Registration Statement under the securities
or blue sky laws of such jurisdictions as each Investor shall reasonably request
(provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such jurisdiction where it has not been qualified),
and do any and all other acts or things which may be necessary or advisable to
enable each Investor to consummate the public sale or other disposition of the
Shares in such jurisdictions; (v) notify each Investor, promptly after it shall
receive notice thereof, of the date and time the Registration Statement and each
post-effective amendment to such Registration Statement becomes effective or a
supplement to any prospectus forming a part of such Registration Statement has
been filed; and (vi) promptly reissue, or promptly authorize and instruct its
transfer agent to reissue, unlegended certificates at the request of any
Investor thereof upon such Investor's delivery of original certificates
representing the Shares tendered for sale pursuant to the effective Registration
Statement, and to promptly respond to any broker's inquiries made of the Company
in connection with such sales, in each case with a view to reasonably assisting
the Investor to complete such sale during such period of effectiveness.

        SECTION 4.2 Transfer of Shares; Delayed Filing; Suspension.

                (a)     Each Investor agrees that it will not effect any
disposition of the Shares or its right to purchase the Shares that would
constitute a sale within the meaning of the Securities Act except as
contemplated in the Registration Statement referred to in Section 4.1 or under
Rule 144 of the Securities Act, and that it will promptly notify the Company of
any changes in the information set forth in the Registration Statement regarding
the Investor or its plan of distribution of the Shares. Following effectiveness
of the Registration Statement, the Company may require each Investor
participating in the Registration Statement to furnish to the Company such
information regarding the Investor and the distribution of the Shares by such
Investor as the Company may from time to time reasonably require for inclusion
in the Registration Statement, and the Company may exclude from such
Registration Statement the Shares of any Investor that fails to furnish such
information.

                (b)     Notwithstanding the Company's obligation to file or
amend the Registration Statement under Section 4.1 hereof, if the Company shall
furnish to the Investors a certificate signed by the President or Chief
Executive Officer of the Company stating that, in the

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good faith judgment of the Company, it would be detrimental to the Company and
its stockholders for the Registration Statement to be filed or amended at such
time and it is therefore essential to defer the filing or amendment of the
Registration Statement, the Company shall have the right to defer such filing or
amendment for a period of not more than thirty (30) days beyond the date
specified under Section 4.1(a) above. In addition and notwithstanding anything
to the contrary set forth in this Agreement, the Company may restrict
disposition of the Shares under the Registration Statement filed pursuant to
Section 4.1 hereof, and each Investor will not be able to dispose of such
Shares, if the Company shall have delivered a notice in writing to such Investor
stating that a delay in the disposition of the Shares is necessary because the
Company, in its reasonable judgment, has determined in good faith that such
sales would require public disclosure by the Company of material nonpublic
information that is not included in the Registration Statement and that
immediate disclosure of such information would be detrimental to the Company. In
no event shall the Company, without the prior written consent of an Investor,
disclose to such Investor any of the facts or circumstances regarding the
material nonpublic information giving rise to either the delay in filing or
amending the Registration Statement or the restriction in disposition of such
Shares. In the event of the delivery of any such notice by the Company, the
Company shall use its reasonable best efforts to amend the Registration
Statement and/or amend or supplement the related prospectus if necessary and to
take all other actions necessary to allow the proposed sale to take place as
promptly as possible, subject, however, to the right of the Company to delay
further sales of the Shares until the conditions or circumstances referred to
above have ceased to exist or have been disclosed. Such right to delay sales of
the Shares (i) shall not be exercised by the Company more than twice in any
twelve (12) month period and (ii) shall not exceed ninety (90) days in the
aggregate (and no longer than forty-five (45) days as to any single delay) in
any twelve (12) month period.

        SECTION 4.3 Expenses. All of the out-of-pocket expenses incurred by the
Company in complying with its obligations under this Article IV in connection
with the registration of the Shares, including, without limitation, all SEC,
Nasdaq and blue sky registration and filing fees, printing expenses, transfer
agents' and registrars' fees, and the reasonable fees and disbursements of the
Company's outside counsel and independent accountants shall be paid by the
Company. The Company shall not be responsible to pay any legal fees for any
Investor or any selling expenses of any Investor (including, without limitation,
any broker's fees or commissions, including underwriter commissions).

        SECTION 4.4 Indemnification. In the event of any offering registered
pursuant to this Article IV:

                (a)     The Company agrees to indemnify and hold harmless each
Investor whose Shares are included in the Registration Statement, each of its
officers, directors and partners and each person controlling such Investor
within the meaning of Section 15 of the Securities Act, from and against any
losses, claims, damages or liabilities to which such Investor, or any such
officer, director, partner or controlling person may become subject (under the
Securities Act or otherwise) insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon, any untrue statement of a material

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fact contained in the Registration Statement or any omission to state therein a
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances in which they are made, not misleading, and the
Company will reimburse each such Investor and each of its officers, directors
and partners and each person controlling such Investor, as the case may be, for
any reasonable legal and any other expenses reasonably incurred in connection
with investigating, preparing or defending any such loss, claim, damage or
liability; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of
or is based upon (i) any untrue statement or omission, made in reliance upon and
in conformity with written information furnished to the Company by or on behalf
of such Investor specifically for use in the preparation of the Registration
Statement, (ii) the failure of such Investor to comply with the covenants and
agreements applicable to such Investor contained in Sections 3.2 or 4.2 hereof
(timely delivery by such Investor of the most recent prospectus provided to such
Investor by the Company shall not constitute such a failure) or (iii) any untrue
statement or omission made in any prospectus and corrected in an amended
prospectus that was delivered to such Investor on a timely basis.

                (b)     Each Investor whose Shares are included in the
Registration Statement agrees to indemnify and hold harmless the Company, each
of its officers and directors and each person controlling the Company within the
meaning of Section 15 of the Securities Act from and against any losses, claims,
damages or liabilities to which the Company, or any such officer, director or
controlling person may become subject (under the Securities Act or otherwise),
in so far as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of, or are based upon, (i) the failure
by such Investor to comply with the covenants and agreements applicable to such
Investor contained in Section 3.2 or 4.2 hereof respecting the sale of the
Shares (timely delivery by such Investor of the most recent prospectus provided
to such Investor by the Company shall not constitute such a failure) or (ii) any
untrue statement of a material fact contained in the Registration Statement or
any omission to state therein a fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances in which they are
made, not misleading if such untrue statement or omission was made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of such Investor specifically for use in the preparation of the
Registration Statement, and such Investor will reimburse the Company and each of
its officers, directors or controlling persons, as the case may be, for any
reasonable legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such loss, claim, damage or liability;
provided, however, that any indemnification obligations of such Investor
pursuant to this Agreement shall be limited, in the aggregate, to the aggregate
net proceeds received by such Investor as a result of the sale of its Shares
under the Registration Statement.

                (c)     Promptly after receipt by any indemnified person of a
notice of a claim or the beginning of any action in respect of which indemnity
is to be sought against an indemnifying person pursuant to this Section 4.4,
such indemnified person shall notify the indemnifying person in writing of such
claim or of the commencement of such action, but the omission to so notify the
indemnifying person will not relieve it from any liability which it may

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have to any indemnified person under this Section 4.4 (except to the extent that
such omission materially and adversely affects the indemnifying person's ability
to defend such action) or from any liability otherwise than under this Section
4.4. Subject to the provisions hereinafter stated, in case any such action shall
be brought against an indemnified person, the indemnifying person shall be
entitled to participate therein, and, to the extent that it shall elect by
written notice delivered to the indemnified person promptly after receiving the
aforesaid notice from such indemnified person, shall be entitled to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified
person. After notice from the indemnifying person to such indemnified person of
its election to assume the defense thereof, such indemnifying person shall not
be liable to such indemnified person for any legal expenses subsequently
incurred by such indemnified person in connection with the defense thereof,
provided, however, that if there exists or shall exist a conflict of interest
that would make it inappropriate, in the opinion of counsel to the indemnified
person, for the same counsel to represent both the indemnified person and such
indemnifying person or any affiliate or associate thereof, the indemnified
person shall be entitled to retain its own counsel at the expense of such
indemnifying person; provided, further, that no indemnifying person shall be
responsible for the fees and expenses of more than one separate counsel
(together with appropriate local counsel) for all indemnified persons. In no
event shall any indemnifying person be liable in respect of any amounts paid in
settlement of any action unless the indemnifying person shall have approved the
terms of such settlement; provided that such consent shall not be unreasonably
withheld. No indemnifying person shall, without the prior written consent of the
indemnified person, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified person is or could have been a
party and indemnification could have been sought hereunder by such indemnified
person, unless such settlement includes an unconditional release of such
indemnified person from all liability on claims that are the subject matter of
such proceeding.

                (d)     If the indemnification provided for in this Section 4.4
is unavailable to or insufficient to hold harmless an indemnified person under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) referred to therein,
then each indemnifying person shall contribute to the amount paid or payable by
such indemnified person as a result of such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) in such proportion as
is appropriate to reflect the relative fault of the Company on the one hand and
the Investors on the other in connection with the statements or omissions or
other matters which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, in the case of an untrue statement or omission, whether the untrue
statement or omission relates to information supplied by the Company on the one
hand or an Investor on the other and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The Company and the Investors agree that it would not be
just and equitable if contribution pursuant to this subsection (d) were
determined by pro rata allocation (even if the Investors were treated as one
entity for such purpose) or by any other method of allocation which does not
take into account the equitable considerations referred to above in this
subsection (d). The amount paid or payable by an indemnified person as a result
of the losses,

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claims, damages or liabilities (or actions in respect thereof) referred to above
in this subsection (d) shall be deemed to include any reasonable legal or other
expenses reasonably incurred by such indemnified person in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), no Investor shall be required to contribute
any amount in excess of the amount by which the net amount received by such
Investor from the sale of the Shares to which such loss relates exceeds the
amount of any damages which such Investor has otherwise been required to pay by
reason of such untrue statement or omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

                (e)     The parties to this Agreement hereby acknowledge that
they are sophisticated business persons who were represented by counsel during
the negotiations regarding the provisions hereof, including, without limitation,
the provisions of this Section 4.4, and are fully informed regarding said
provisions. They further acknowledge that the provisions of this Section 4.4
fairly allocate the risks in light of the ability of the parties to investigate
the Company and its business in order to assure that adequate disclosure is made
in the Registration Statement as required by the Securities Act and the Exchange
Act.

        SECTION 4.5 Termination of Conditions and Obligations. The conditions
precedent imposed by Article III or this Article IV upon the transferability of
the Shares shall cease and terminate as to any particular number of the Shares
when such Shares shall have been sold or otherwise disposed of in accordance
with the intended method of disposition set forth in the Registration Statement
covering such Shares or at such time as an opinion of counsel satisfactory to
the Company shall have been rendered to the effect that such conditions are not
necessary in order to comply with the Securities Act.

        SECTION 4.6 Listing. The Company shall take the necessary steps to
comply in all material respects with the requirements of Nasdaq with respect to
the issuance of the Shares and the listing thereof.

                                    ARTICLE V

                          SURVIVAL AND INDEMNIFICATION

        SECTION 5.1 Survival. Notwithstanding any examination made by or on
behalf of any party hereto, the knowledge of any party or the acceptance by any
party of any certificate or opinion, each representation and warranty contained
herein shall survive the Closing and shall be fully effective and enforceable
for one year after the Closing, and each covenant contained herein shall survive
the Closing and shall be fully effective and enforceable.

                                       11
<PAGE>
        SECTION 5.2 Indemnification.

                (a)     The Company shall indemnify each Investor, its
stockholders, partners, officers, directors, employees, agents and
representatives against any damages, claims, losses, liabilities and expenses
(including reasonable counsel fees and expenses) which may be suffered or
incurred by any of them as a result of a breach of any representation, warranty
or covenant made by the Company in this Agreement.

                (b)     Each Investor agrees to indemnify the Company and its
stockholders, officers, directors, employees, agents and representatives against
any damages, claims, losses, liabilities and expenses (including reasonable
counsel fees and other expenses) which may be suffered or incurred by it as a
result of any breach of any representation, warranty, or covenant made by such
Investor in this Agreement; provided, however, that any indemnification
obligations of such Investor pursuant to this Agreement shall be limited, in the
aggregate, to the net proceeds received by such Investor as a result of the sale
of its Shares under the Registration Statement.

                (c)     In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to this Section 5.2, such person (the
"indemnified party") shall promptly notify the person against whom such
indemnity may be sought (the "indemnifying party") in writing of the occurrence
of the facts and circumstances giving rise to such claim. The failure of any
person to deliver the notice required by this Section 5.2(c) shall not in any
way affect the indemnifying party's indemnification obligations hereunder except
and only to the extent that the indemnifying party is actually prejudiced
thereby. In case any such proceeding shall be brought against any indemnified
party and it shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate therein and, to the
extent that it shall, jointly with any other indemnifying party similarly
notified, assume the defense thereof, with counsel satisfactory to such
indemnified party and shall pay as incurred the fees and expenses of such
counsel related to such proceeding. In any such proceeding, any indemnified
party shall have the right to retain its own counsel or pay its own expenses.
Notwithstanding the foregoing, the indemnifying party shall pay as incurred the
fees and expenses of the counsel retained by the indemnified party in the event
(i) the indemnifying party and the indemnified party shall have mutually agreed
to the retention of such counsel or (ii) the named parties to any such
proceedings (including any impleaded parties) include both the indemnifying
party and the indemnified party and representations of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them. The indemnifying party shall not be liable for any settlement of
any proceeding effected without its written consent (which shall not be
unreasonably withheld) but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such
settlement or judgment.

                                       12
<PAGE>
                                   ARTICLE VI

                                  MISCELLANEOUS

        SECTION 6.1 Notices. All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party's address set forth below or to such other address as a party
may designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) made by telex, telecopy or facsimile transmission, (iii) sent by overnight
courier, or (iv) sent by registered mail, return receipt requested, postage
prepaid.

        If to an Investor:          The address specified for such Investor on
                                    Schedule I.

        If to the Company:          Restoration Hardware, Inc.
                                    15 Koch Road, Suite J
                                    Corte Madera, CA  94925
                                    Attention:  Gary Friedman
                                    Facsimile:  (415) 927-9133

        With a copy to:             Morrison & Foerster LLP
                                    425 Market Street
                                    San Francisco, CA  94105
                                    Attention:  Gavin Grover, Esq.
                                    Facsimile:  (415) 268-7522

All notices, requests, consents and other communications hereunder shall be
deemed to have been given together (i) if by hand, at the time of the delivery
thereof to the receiving party at the address of such party set forth above;
(ii) if by telex, telecopy or facsimile transmission, one (1) day after the time
that receipt thereof has been acknowledged by electronic confirmation or
otherwise; (iii) if sent by overnight courier, on the next business day
following the day such notice is delivered to the courier service; or (iv) if
sent by registered mail, on the fifth business day following the day such
mailing is made.

        SECTION 6.2 Entire Agreement. This Agreement, including schedules and
exhibits, or other documents referred to herein or that specifically indicate
that they were delivered to the Investors in connection with this Agreement,
embodies the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and supersedes all prior oral or written
agreements and understandings relating to the subject matter hereof (other than
the non-disclosure and confidentiality agreements, if any, between the Company
and the Investors signed in anticipation of an equity financing in the Company).
No statement, representation, warranty, covenant or agreement of any kind not
expressly set forth in this Agreement shall affect, or be used to interpret,
change or restrict, the express terms and provisions of this Agreement.

        SECTION 6.3 Amendments. The terms and provisions of the Agreement may be
modified, amended or waived, or consent for the departure therefrom granted,
only by written consent of the Company and the Investors holding at least fifty
percent (50%) of the Shares then

                                       13
<PAGE>
held by all Investors. No such waiver or consent shall be deemed to be an
agreement, whether or not similar. Each such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

        SECTION 6.4 Assignment. The rights and obligations under this Agreement
may not be assigned by any party hereto without the prior written consent of the
Company and the Investors holding in the aggregate at least fifty percent (50%)
of the Shares then held by all Investors, which consent shall not be
unreasonably withheld, except that an Investor may transfer its rights and
obligations to an "affiliate" (as such term is defined under Rule 144 of the
Securities Act) of such Investor, provided that any such transferee agrees in
writing to assume all of the obligations and liabilities of its transferor
hereunder and agrees itself to be bound hereby all in accordance with and
pursuant to a duly executed written instrument in form reasonably satisfactory
to the Company.

        SECTION 6.5 Benefit. All statements, representations, warranties,
covenants and agreements in this Agreement shall be binding on the parties
hereto and shall inure to the benefit of the respective successors and permitted
assigns of each party hereto. Nothing in this Agreement shall be construed to
create any rights or obligations except among the parties hereto, and no person
or entity shall be regarded as a third-party beneficiary of this Agreement.

        SECTION 6.6 Governing Law. This Agreement and the rights and obligations
of the parties hereunder shall be construed in accordance with and governed by
the internal laws of the State of California (as permitted by Section 1646.5 of
the California Civil Code, or any similar successor provision) without giving
effect to any choice of law rule that would cause the application of the laws of
any jurisdiction other than the internal laws of the State of California to the
rights and duties of the parties.

        SECTION 6.7 Severability. In the event that any court of competent
jurisdiction shall determine that any provision, or any portion thereof,
contained in this Agreement shall be unreasonable or unenforceable in any
respect, then such provision shall be deemed limited to the extent that such
court deems it reasonable and enforceable, and as so limited shall remain in
full force and effect. In the event that such court shall deem any such
provision, or portion thereof, wholly unenforceable, the remaining provisions of
this Agreement shall nevertheless remain in full force and effect.

        SECTION 6.8 Headings and Captions. The headings and captions of the
various subdivisions of this Agreement are for convenience of reference only and
shall in no way modify, or affect the meaning or constructions of any of, the
terms or provisions hereof.

        SECTION 6.9 No Waiver of Rights, Powers and Remedies. No failure or
delay by a party hereto in exercising any right, power or remedy under this
Agreement, and no course of dealing between the parties hereto, shall operate as
a waiver of any such right, power or remedy of the party. No single or partial
exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power

                                       14
<PAGE>
or remedy, shall preclude such party from other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. The election of any
remedy by a party hereto shall not constitute a waiver of the right of such
party to pursue other available remedies. No notice to or demand on a party not
expressly required under this Agreement shall entitle the party receiving such
notice or demand to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the party giving such
notice or demand to any other or further action in any circumstances without
such notice or demand.

        SECTION 6.10 Expenses. Except as provided in Section 4.3, Section 4.4 or
Section 5.2, each of the parties shall pay its own fees and expenses (including
the fees of any attorneys, accountants, appraisers or others engaged by such
party) in connection with this Agreement and the transactions contemplated
hereby whether or not the transactions contemplated hereby are consummated.

        SECTION 6.11 Brokers. Except as set forth in Section 6.11 of the
Schedule of Exceptions, each of the parties hereto represents and warrants to
the other that no broker, finder or other financial consultant has acted on its
behalf in connection with this Agreement or the transactions contemplated hereby
in such a way as to create any liability on the other. Each of the parties
hereto agrees to indemnify and save the other harmless from any claim or demand
for commission, or for other compensation, by any broker, finder, financial
consultant or similar agent claiming to have been employed by or on behalf of
such party and to bear the cost of legal expenses incurred in defending against
any such claim.

        SECTION 6.12 Public Announcements. The Company, on the one hand, and the
Investors, on the other hand, agree to consult promptly with each other prior to
issuing any press release or otherwise making any public statement with respect
to this Agreement or the transactions contemplated hereby, agree to provide to
the other party for review a copy of any such press release or statement, and
shall not issue any such press release or make any such public statement prior
to such consultation and review, unless required by applicable law or any
disclosure obligations of the SEC or Nasdaq.

        SECTION 6.13 Counterparts. This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

        SECTION 6.14 Further Assistance. In case at any time after the Closing
any further action is necessary or desirable to carry out the purposes of this
Agreement, the Company and each Investor will take such further action as the
other party may reasonably request, all at the sole cost and expense of the
requesting party (unless the requesting party is entitled to indemnification
under Article IV or V).

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>
         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                             RESTORATION HARDWARE, INC.

                             By:          /s/ Gary G. Friedman
                                  ---------------------------------------------
                                  Name:     Gary G. Friedman
                                  Title:    Chief Executive Officer

                             [INVESTOR]

                             By:
                                  ---------------------------------------------
                                  Name:
                                  Title:

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                             RESTORATION HARDWARE, INC.

                             By:
                                  ---------------------------------------------
                                  Name:     Gary G. Friedman
                                  Title:    Chief Executive Officer

                             Reservoir Capital Partners, L.P.
                             By: Reservoir Capital Group, L.L.C, GP

                             By: /s/ Gregg Zeitlin
                                  ---------------------------------------------
                                  Name: Gregg Zeitlin
                                  Title: Managing Director

                             Reservoir Capital Master Fund, L.P.
                             By: Reservoir Capital Group, L.L.C, GP

                             By:  /s/ Gregg Zeitlin
                                  ---------------------------------------------
                                  Name: Gregg Zeitlin
                                  Title: Managing Director

                             Reservoir Capital Associates, L.P.
                             By: Reservoir Capital Group, L.L.C, GP

                             By: /s/ Gregg Zeitlin
                                 ---------------------------------------------
                                 Name: Gregg Zeitlin
                                 Title: Managing Director

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                             RESTORATION HARDWARE, INC.

                             By:
                                  ---------------------------------------------
                                  Name:     Gary G. Friedman
                                  Title:    Chief Executive Officer

                             AMERICAN FUNDS INSURANCE SERIES, GLOBAL SMALL
                             CAPITALIZATION FUND, BY CAPITAL RESEARCH AND
                             MANAGEMENT COMPANY, ITS INVESTMENT ADVISER

                             By: /s/ Michael Downer
                                 ---------------------------------------------
                                 Name: Michael J. Downer
                                 Title: Vice President and Secretary

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                             RESTORATION HARDWARE, INC.

                             By:
                                  ---------------------------------------------
                                  Name:     Gary G. Friedman
                                  Title:    Chief Executive Officer

                             BARON SMALL CAP FUND, A SERIES OF BARON ASSET FUND
                             By BAMCO, Inc. as Investment Advisor

                             By: /s/ Linda S. Martinson
                                 ----------------------------------------------
                                 Name: Linda S. Martinson
                                 Title: Vice President and General Counsel

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                             RESTORATION HARDWARE, INC.

                             By:
                             --------------------------------------------------
                                Name: Gary G. Friedman
                                Title: Chief Executive Officer

                             [INVESTOR]

                             By: /s/ James Schainuck
                             --------------------------------------------------
                                 Name: James Schainuck

                                 Title: Managing Principal, Jewel Investments
                                        authorized signature  for Straus Asset
                                        Management
                                   For: Straus Partners, LP
                                        Straus-GEPT, LP
                                        The Jewel Fund, L.P.
                                        The Jewel QP Fund, L.P.

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  WHITTIER VENTURES, LLC

                               By:         /s/ David A. Dahl
                                    ____________________________________________
                                    Name:  David A. Dahl
                                    Title: Vice President

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               Sanford J. Colen & Jean N. Colen,
                               TTEES of The Colen Trust

                               By:         /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Trustee

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               Peter W. Branagh & Ramona Y. Branagh,
                               TTEES for The Branagh Revocable Trust

                               By:          /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           Authorized Investment Advisor

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Pollat, Evans & Co. Inc.

                               By:          /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           Authorized Investment Advisor

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Zaxis Equity Neutral, L.P.

                               By:          /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Zaxis Offshore Limited

                               By:         /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           Authorized Investment Advisor

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR] Zaxis Partners, L.P.

                               By:         /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Permal U.S. Opportunities

                               By:         /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           Authorized Investment Advisor

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Alfanar U.S. Capital Value

                               By:         /s/ Sanford J. Colen
                                    ____________________________________________
                                    Name:  Sanford J. Colen
                                    Title: Manager, Apex Capital, LLC
                                           Authorized Investment Advisor

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               Willow Creek Offshore

                               By:          /s/ Aaron Braun
                                    ____________________________________________
                                    Name:  Aaron Braun, Managing Member
                                    Title: Trading Advisor - WC Capital
                                           Management, LLC

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               Willow Creek Capital Partners, L.P.

                               By:         /s/ Aaron Braun
                                    ____________________________________________
                                    Name:  Aaron Braun
                                    Title: General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               By:         /s/ William L. Edwards
                                    ____________________________________________
                                    Name:  William L. Edwards
                                    Title: President, Palo Alto Investors

                               For and on behalf of:

                               1.   William H. Draper, III RT
                               2.   Fred M. Gibbons
                               3.   Micro Cap Partners, LP
                               4.   Micro-Mousse Partners, LP
                               5.   Paul C. Edwards
                               6.   UBTI Free, LP
                               7.   William C. Edwards RT

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]

                               By:         /s/ Michael Weisberg, Sr. Mang. Dir.
                                    ____________________________________________
                                    Name:  Michael Weisberg
                                    Title: Senior Managing Director
                                    Signing on Behalf of Crestwood Capital
                                    Partners, Crestwood Capital Partners II and
                                    Bridgewood Capital Partners.
                                    ____________________________________________

<TABLE>
<CAPTION>
                                         # shs               $ Amount
<S>                                      <C>                <C>
CRESTWOOD CAPITAL PARTNERS               135,000            $ 526,500
CRESTWOOD CAPITAL PARTNERS II             15,000               58,500
BRIDGEWOOD CAPITAL PARTNERS               17,500               68,250
CRESTWOOD CAPITAL INTERNATIONAL, LTD.     82,500              321,750
                                         --------           ---------
                                         250,000            $ 975,000
</TABLE>

                                       /s/ Robert J. Miller
                                    ____________________________________________
                                           Director
                               Signing on behalf of Crestwood Capital
                               International, LTD.
                               Robert J. Miller

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Hocky Capital Q.P. L.P.

                               By:         /s/ Allison Sachs
                                    ____________________________________________
                                    Name:
                                    Title: General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR] Hocky Capital L.P.

                               By:         /s/ Allison Sachs
                                    ____________________________________________
                                    Name:
                                    Title: General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  Cragswood LTD.

                               By:         /s/ Allison Sachs
                                    ____________________________________________
                                    Name:
                                    Title: General Partner

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  CATALYST PARTNERS, L.P.

                               By:         /s/ Allison Rosen
                                    ____________________________________________
                                    Name:  Allison Rosen
                                    Title: Managing Member

                                           Grover Capital Advisors LLC
                                           (sole G.P.of Catalyst Partners, L.P.)

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Company and the Investors have executed this
Stock Purchase Agreement as of the day and year first above written.

                               RESTORATION HARDWARE, INC.

                               By:
                                    ____________________________________________
                                    Name:  Gary G. Friedman
                                    Title: Chief Executive Officer

                               [INVESTOR]  CATALYST INTERNATIONAL, Ltd.

                               By:         /s/ Allison Rosen
                                    ____________________________________________
                                    Name:  Allison Rosen
                                    Title: Managing Member
                                           ELY Capital Advisors LLC
                                           (Investment Advisor to
                                               Catalyst International, Ltd.)

                                       16

<PAGE>

                         LIST OF SCHEDULES AND EXHIBITS

Schedule I:                List of Investors

Exhibit A:                 Opinion of Morrison & Foerster LLP
Exhibit B:                 Schedule of Exceptions

<PAGE>

<TABLE>
<CAPTION>
                                                     SCHEDULE I

                                                      Investors

Name and Address of Investors                    Aggregate Number of Shares      Aggregate Purchase Price
-----------------------------                    --------------------------      ------------------------
<S>                                              <C>                             <C>
RESERVOIR CAPITAL PARTNERS, L.P.                          219,052                  $854,302.80
650 Madison Avenue, 26th Floor
New York, NY 10022

RESERVOIR CAPITAL MASTER FUND, L.P.                        36,820                  $143,598.00
650 Madison Avenue, 26th Floor
New York, NY 10022

RESERVOIR CAPITAL ASSOCIATES, L.P.                            538                    $2,098.20
650 Madison Avenue, 26th Floor
New York, NY 10022

AMERICAN FUNDS INSURANCE SERIES,                          282,051                $1,099,998.90
GLOBAL SMALL CAPITALIZATION FUND
c/o Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071
Attn:  Michael J. Downer

BARON SMALL CAP FUND                                      700,000                $2,730,000.00
767 Fifth Avenue, 49th Floor
New York, NY 10153

THE JEWEL FUND, L.P.                                      114,000                  $444,600.00
c/o Jewel Investments, LLC
605 Third Avenue, 19th Floor
New York, NY 10158

THE JEWEL QP FUND, L.P.                                    78,210                  $305,019.00
c/o Jewel Investments, LLC
605 Third Avenue, 19th Floor
New York, NY 10158
</TABLE>
                                      I-1
<PAGE>

<TABLE>
<CAPTION>

<S>                                                      <C>                    <C>
STRAUS PARTNERS L.P.                                       47,600                  $185,640.00
c/o Straus Asset Management
605 Third Avenue, 19th Floor
New York, NY 10158

STRAUS-SPELMAN, L.P.                                        1,900                    $7,410.00
c/o Straus Asset Management
605 Third Avenue, 19th Floor
New York, NY 10158

STRAUS-GEPT, L.P.                                          14,700                   $57,330.00
c/o Straus Asset Management
605 Third Avenue, 19th Floor
New York, NY 10158

WHITTIER VENTURES, LLC                                    128,205                  $499,999.50
1601 Huntington Drive
South Pasadena, CA 91030

PERMAL U.S. OPPORTUNITIES                                 190,000                  $741,000.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

ZAXIS OFFSHORE LIMITED                                    358,500                $1,398,150.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

ALFANAR U.S. CAPITAL VALUE                                 55,000                  $214,500.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

ZAXIS PARTNERS, L.P.                                       42,000                  $163,800.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

ZAXIS EQUITY NEUTRAL, L.P.                                 30,500                  $118,950.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963
</TABLE>
                                      I-2

<PAGE>

<TABLE>
<CAPTION>

<S>                                                      <C>                    <C>
SANFORD J. COLEN & JEAN N. COLEN, TTEES OF THE             16,000                   $62,400.00
COLEN TRUST
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

POLLAT, EVANS & CO. INC                                     4,000                   $15,600.00
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

PETER W. BRANAGH & RAMONA Y. BRANAGH, TTEES                 4,000                   $15,600.00
FOR THE BRANAGH REVOCABLE TRUST
c/o Apex Capital, LLC
4 Orinda Way, Suite 240B
Orinda, CA 94963

WILLOW CREEK OFFSHORE                                     350,000                $1,365,000.00
17 East Sir Francis Drake Blvd
Larkspur, CA 94939

WILLOW CREEK CAPITAL PARTNERS, L.P.                       150,000                  $585,000.00
17 East Sir Francis Drake Blvd
Larkspur, CA 94939

WILLIAM H. DRAPER, III RT                                  18,600                   $72,540.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

FRED M. GIBBONS                                            35,000                  $136,500.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

MICRO CAP PARTNERS, LP                                    599,502                $2,338,057.80
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301
</TABLE>
                                      I-3

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>                     <C>
MICRO-MOUSSE PARTNERS, LP                                  64,500                  $251,550.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

PAUL C. EDWARDS                                            27,300                  $106,470.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

UBTI FREE, LP                                              60,000                  $234,000.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

WILLIAM C. EDWARDS RT                                     109,200                  $425,880.00
c/o Palo Alto Investors
470 University Avenue
Palo Alto, CA 94301

CRESTWOOD CAPITAL PARTNERS                                135,000                  $526,500.00
c/o ING Furman Selz Asset Management LLC
230 Park Avenue
New York, NY 10169

CRESTWOOD CAPITAL PARTNERS II                              15,000                   $58,500.00
c/o ING Furman Selz Asset Management LLC
230 Park Avenue
New York, NY 10169

BRIDGEWOOD CAPITAL PARTNERS                                17,500                   $68,250.00
c/o ING Furman Selz Asset Management LLC
230 Park Avenue
New York, NY 10169

CRESTWOOD CAPITAL INTERNATIONAL, LTD                       82,500                  $321,750.00
c/o ING Furman Selz Asset Management LLC
230 Park Avenue
New York, NY 10169

</TABLE>
                                      I-4

<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>                    <C>
HOCKEY CAPITAL, L.P.                                       71,200                  $277,680.00
100 South Bedford Road, 2nd Floor
Mt. Kisco, NY 10549

HOCKEY CAPITAL QP, L.P.                                    71,300                  $278,070.00
100 South Bedford Road, 2nd Floor
Mt. Kisco, NY 10549

CRAGSWOOD LTD.                                              7,500                   $29,250.00
100 South Bedford Road, 2nd Floor
Mt. Kisco, NY 10549

CATALYST PARTNERS, L.P.                                   340,000                $1,326,000.00
350 Park Avenue, 11th Floor
New York, NY 10022
(until 11/16/01)

767 Third Avenue, 15th Floor
New York, NY 10017
(as of 11/19/01)

CATALYST INTERNATIONAL, LTD.                               10,000                   $39,000.00
350 Park Avenue, 11th Floor
New York, NY 10022
(until 11/16/01)

767 Third Avenue, 15th Floor
New York, NY 10017
(as of 11/19/01)

                        Total:                          4,487,178               $17,499,994.20
</TABLE>

                                      I-5EX-10.1

                      AGREEMENT AND PLAN OF REORGANIZATION

      This Agreement and Plan of Reorganization (herein, together with all
Exhibits, "Agreement") is entered in to as of November 1, 2001 by and between
Universal Services & Acquisitions, Inc., a Colorado corporation ("USV") and
Universal Medical Alliance, a Nevada corporation ("UMA").

      This Agreement sets forth the terms and conditions upon which UMA will
merge with and into USV (the "Merger"), pursuant to an Agreement and Plan of
Merger (the "Merger Agreement") in substantially the form attached hereto as
Exhibit A, which provides, among other things, for the conversion and exchange
of 100% of all issued and outstanding shares of common stock of UMA ("UMA
Shares") into 90% of the issued and outstanding shares of voting $.001 par value
common stock of USV ("USV Common Stock").

      In consideration of the mutual promises and covenants contained herein,
UMA and USV agree as follows:

                                    ARTICLE I
                                   Definitions

      As used in this Agreement, the following terms (whether used in singular
or plural forms) shall have the following meanings:

      "UMA Shareholders" shall mean all shareholders of UMA as of the date of
closing.

      "UMA Shares" shall mean the Shares of the Common Stock of UMA to be
exchanged for shares of USV common stock to the UMA Shareholders.

      "Closing Date" shall mean the date upon which the reorganization shall
have occurred in accordance with the terms and conditions set forth herein.

      "Contract" means any written contract, mortgage, deed of trust, bond,
indenture, lease, license, note, franchise, certificate, option, warrant, right,
or other instrument, document or agreement, and any oral obligation, right or
agreement.

      "Controlled Group" means all trades or businesses (whether or not
incorporated) under common control that, together with UMA, are treated as a
single employer under Section 414(b) or 414(c) of the Code or Section 4001 of
ERISA.

                                       1
<PAGE>

      "GAAP" means generally accepted accounting principles, as the term is
defined by the American Institute of Certified Public Accountants under the
first standard of reporting under its generally accepted accounting standards.

      "Knowledge" of UMA of or with respect to any matter means that any of the
executive officers, directors or managers of UMA has, or after due inquiry and
investigation would have, actual awareness or knowledge of such matter, and
"Knowledge" of USV of or with respect to any matter means that any of the
executive officers, directors, or senior managers of USV has, or after due
inquiry and investigation would have, actual awareness or knowledge of such
matter.

      "Legal Requirements" means applicable common law and any statute,
ordinance, code or other law, rule regulation, order, technical or other
standard requirement, judgment or procedure enacted, adopted, promulgated,
applied or followed by any governmental authority, including judgments.

      "Lien" means any security agreement, financing statement filed with any
governmental authority, conditional sale statement filed with any governmental
authority, conditional sale or other title retention agreement, any lease
consignment or bailment given for purposes of security, any lien, mortgage,
indenture, pledge, option, encumbrance, adverse interest, constructive trust or
other trust, claim, attachment, exception to or defect in title or other
ownership interest (including but not limited to reservations, rights of entry,
possibilities of reverter, encroachments, casement, rights of way, restrictive
covenants leases and licenses) of any kind, which otherwise constitutes an
interest in or claim against property, whether arising pursuant to any Legal
Requirement, Contract or otherwise.

      "Reorganization" shall mean the acquisition by USV of the UMA Shares in
exchange for the USV Shares as further defined herein.

      "USV Shares" shall mean the Shares of the Common Stock of USV to be issued
to the UMA Shareholders.

                                    ARTICLE 2
                                     Merger

      Section 2.1 Plan and Agreement of Reorganization. A plan of reorganization
is hereby adopted to as follows:

            A. Subject to the terms and conditions hereinafter set

                                       2
<PAGE>

forth, on the Closing Date, and in the manner hereinafter provided, (i) the UMA
Shareholders shall exchange the UMA Shares for the USV Shares in the amounts set
forth herein; UMA shall cease to exist and USV shall be the surviving
corporation.

            B. USV and UMA, respectively, shall take, or cause to be taken, such
action as may be necessary or appropriate in order to effectuate the
transactions contemplated hereby. Such action shall include, but not be limited
to, the filing of Articles of Merger with the Colorado Secretary of State and
the Nevada Secretary of State. In the event that after the Closing Date, any
further action is necessary or desirable to carry out the purposes of this
Agreement and to vest USV or the UMA Shareholders with full title to the
securities to be exchanged hereby, the officers and directors of USV or the UMA
Shareholders, as the case may be, shall take all such necessary action.

      Section 2.2 Effective Date of the Reorganization for Accounting Purposes.
The transactions contemplated by this Agreement shall be effective as of a
mutually agreeable date for accounting purposes and for all other purposes to
the extent permissible by law.

      Section 2.3 Consideration and Basis of Exchange of Shares. The manner and
basis of exchanging the UMA Shares for the Common Shares of USV shall be as
follows:

            A. On the Closing Date, the UMA Shareholders shall deliver to USV
certificates aggregating 100% of the issued and outstanding UMA Shares, duly
endorsed in favor of USV with signatures guaranteed; the UMA Shareholders shall
be issued, in exchange for the UMA Shares held of record on the Closing Date,
USV Shares representing 90% of the then-issued and outstanding shares of common
stock of USV. The UMA Shareholders and USV agree that the UMA Shares and the USV
Shares exchanged hereby shall be "restricted securities" as that term is defined
in Rule 144 under the Securities Act of 1933, as amended (the "1933 Act") and
all certificates issued under this Agreement shall bear an appropriate legend to
such effect. UMA will have received the necessary approval of its shareholders
to this transaction.

            B. On or before the Closing Date, USV shall change its name to
"Universal Medical Alliance Corp.", a Colorado corporation and approve a
twenty-two-to-one reverse stock split such that the number of shares issued and
outstanding immediately prior to the Closing shall be 1,000,000, before the
issuance of the shares to the UMA Shareholders.

                                       3
<PAGE>

            C. UMA shall pay the sum of $400,000 to Stein's Holdings, Inc.
("Stein's"), the majority shareholder of USV, as a finder's fee in arranging for
this transaction. $60,000 of said fee shall be paid immediately and used to pay
USV's currently outstanding accounts payable with the remaining $340,000 due and
payable 90 days after USV is listed for trading on the OTC Bulletin Board. In
the event that USV does not become listed on the OTC Bulletin Board on or before
December 31, 2001, taking into account the necessity to file a Form 8-K with
audited financial statements and pro forma financial statement as well as
preparing and filing a Form 15c2-11 with the National Association of Securities
Dealers, Inc., all of which must occur before USV can be listed on the OTC
Bulletin Board, then Stein's will return the $60,000 payment. Until such time as
the entire $400,000 fee is paid, the new Board of USV will agree to not issue
any shares of common or preferred stock in USV without the consent of Stein's
with the exception of those certain shares that the parties hereto have
previously discussed, the total of which is disclosed in Exhibit 2.3.

            D. USV will appoint the following persons as directors, to replace
its current directors: Philip A. Kramer, Peter S. Muffoletto, and Troy A.
Budgen. Mr. Kramer shall be appointed President and Peter S. Muffoletto will be
appointed Secretary and Treasurer.

            Section 2.4 Closing. Closing of this Agreement shall be held at a
date to be mutually agreed upon by the parties at the offices of USV, or such
other place as the parties may mutually agree. The parties shall exchange such
other documents and take such other actions as may be necessary or appropriate
for completing the transactions contemplated by the Agreement.

            Section 2.5 Mechanics for Closing Merger. Upon the approval of the
UMA Shareholders, the executed Articles of Merger shall be filed with the
Colorado and Nevada Secretaries of State.

            Section 2.6 Further Assurances. At or after Closing, UMA, at the
request of USV, shall promptly execute and deliver, or cause to be delivered, to
USV all such documents and instruments, in form and substance satisfactory to
USV, as USV reasonably may request in order to carry out or evidence the terms
of this Agreement.

                                       4
<PAGE>

                                    ARTICLE 3
                      Representations and Warranties of UMA

      UMA represents and warrants to USV, as of the date of this Agreement and
as of the Closing, as follows:

      Section 3.1 Organization and Qualification of UMA. UMA is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Nevada. UMA has full corporate power and authority to conduct its
business as now conducted and to own or lease and operate the assets and
property now owned or leased or operated by it. UMA is qualified to transact
business in those jurisdictions wherein its business requires such action.

      Section 3.2 Authority. UMA has all requisite corporate power and authority
to execute, deliver and perform this Agreement. The execution, delivery and
performance of this Agreement by UMA has been duly and validly executed and
delivered by UMA, and is a valid and binding obligation of UMA, enforceable
against UMA in accordance with its terms.

      Section 3.3 Ownership and Shareholders of UMA. The shareholders set forth
on Exhibit 3.3 own the UMA Shares shown thereon, beneficially and of record,
free and clear of all liens. The UMA Shares are not subject to, or bound or
affected by, any proxies, voting agreements, or other restrictions on the
incidents or ownership hereof. There are not, and will not at Closing, be more
than 30 shareholders of UMA.

      Section 3.4 Subsidiaries. UMA has no subsidiaries.

      Section 3.5 No Conflicts; Required Consent. The execution, delivery, and
performance by UMA of this Agreement will not: (i) conflict with or violate any
provision of the articles or certificate of incorporation of UMA; (ii) violate
any Legal Requirements; (iii) result in the creation or imposition of any Lien
against or upon the UMA Shares or any of the assets or properties owned or
leased by UMA; or (iv) require any consent, approval, or authorization of, or
filing of any certificate, notice, application, report or other document with,
any governmental authority or other person.

      Section 3.6 Litigation. There is no litigation pending or, to UMA's
knowledge, threatened, by or before any governmental authority or private
arbitration tribunal, against UMA or its operations, except as described in
Exhibit 3.6 attached hereto and incorporated herein by this reference, nor, to
UMA's knowledge, is

                                       5
<PAGE>

there any basis for any such litigation.

      Section 3.7 Compliance with Applicable Legal Requirements. Conduct by UMA
of its activities as currently conducted does not violate or infringe any Legal
Requirements currently in effect, or, to the knowledge of UMA, proposed to
become effective; and UMA has received no notice of any violation by UMA,
proposed to become effective; and UMA has received no notice of any violation by
UMA of any Legal Requirements applicable to UMA or its activities as currently
conducted; and UMA knows of no basis for the allegation of any such violation.

      Section 3.8 Financial Statements. UMA will deliver to USV the audited
balance sheet and statements of operations of UMA as of September 30, 2001,
which are currently being prepared. The financial statements will be prepared in
accordance with United States GAAP and present fairly the financial position of
UMA as of the dates indicated and the results of operations of UMA for the
period ended September 30, 2001.

      Section 3.9 Liabilities. UMA has no liabilities or obligations, whether
absolute, accrued, contingent, or otherwise, that are not reflected in the
Balance Sheet or non-delinquent obligations for ordinary and recurring expenses,
including expenses occurring in the ordinary course of business of UMA since the
date of the Balance Sheet. Attached as Exhibit 3.9 is a list of all accounts
payable of UMA.

      Section 3.10 Tax Returns and Payments. UMA has filed all federal, state,
local and foreign tax returns required to be filed, and has timely paid all
taxes, including all federal and state payroll taxes, that have become due and
payable, whether or not so shown on any such tax returns. UMA has not received
any notice of, nor does UMA have any knowledge of, any deficiency or assessment
of proposed knowledge of, any deficiency or assessment of proposed deficiency or
assessment from any taxing governmental authority. There are no tax audits
pending with respect to UMA, and there are no outstanding agreements or waivers
by or with respect to UMA, that extend the statutory period of limitations
applicable to any federal, state, local or foreign tax returns for any period.

      Section 3.11 Absence of Certain Changes or Events. Since the date of
Balance Sheet there has not occurred:

      (a) any material and adverse change in the financial condition or
operations of UMA;

                                       6
<PAGE>

      (b) any damage, destruction or loss to or of any of the material assets of
properties owned or leased by UMA;

      (c) the creation or attachment of any Lien against the Common Stock of
UMA;

      (d) any waiver, release, discharge, transfer, or cancellation by UMA of
any rights or claims of material value;

      (e) any issuance by UMA of any securities, or any merger or consolidation
of UMA with any other Person, or any acquisition by UMA of the business of any
other Person;

      (f) any incurrence, assumption or guarantee by UMA of any indebtedness or
liability;

      (g) any declaration, setting aside or payment by UMA of any dividends on,
or any other distribution with respect to, any capital stock of UMA or any
repurchase, redemption, or other acquisition of any capital stock of UMA;

      (h) (A) any payment of any bonus, profit sharing, pension or similar
payment or arrangement or special compensation to any employee of UMA, except in
the ordinary course of the administration of UMA, or (B) any increase in the
compensation payable to any employee of UMA; or

      (i) the entry by UMA into any Contract to do any of the foregoing.

      Section 3.12 Material UMA Contracts. As of the date of this Plan of
Reorganization, UMA does not have, except as discussed in Exhibit 3.12, (i)
contracts evidence or evidencing or relating to any liabilities or obligations
of UMA, whether absolute, accrued, contingent or otherwise, or granting any
Person a Lien or against any properties or assets owned or leased by UMA; (ii)
joint venture or partnership Contracts between UMA and any other person; (iii)
Contracts limiting the freedom of UMA to engage in or to complete in any
activity, or to use or disclose any information in its possession; (iv) any
guarantees of indebtedness for any other entity; and (v) any other Contracts to
which UMA is a party or by which it or the assets or properties owned or leased
by it are bound or affected that are not set forth on other Exhibits hereto,
which in aggregate contemplate payments to or by UMA exceeding $5,000 in any
twelve-month period (collectively herein as the "Material UMA Contract"). UMA
has delivered to USV true and complete copies of each of the Material UMA
Contracts, including

                                       7
<PAGE>

any amendments thereto (or, in the case or oral Material UMA Contracts, a
memorandum of such contract) and all Material UMA Contracts are valid, in full
force and effect and enforceable in accordance with its terms against the
parties thereto other than UMA, and UMA has fulfilled when due, or has taken all
action necessary to enable it to fulfill when due all of its obligations
thereunder; (ii) there has not occurred any default (without regard to lapse of
time, the giving notice, or the election of any person other then UMA, or any
combination thereof) by UMA, nor, to the knowledge of UMA, has there occurred
any default (without regard to lapse of time, the giving of notice, or the
election of UMA, or any combination thereof) by any other person, under any of
the Material UMA Contracts; and (iii) neither UMA nor, to the knowledge of UMA,
any other person is in arrears in the performance or satisfaction of its
obligation under any of the Material UMA Contracts, and no waiver has been
granted by any of the parties thereto.

      Section 3.13 Real Property. As of the date of this Plan of Reorganization,
UMA does not own any real property.

      Section 3.14 Employees. As of the date of this Plan of Reorganization, UMA
has no employees.

      Section 3.15 Books and Records. All of the books, records and accounts of
UMA are in all material respects true and complete, are maintained in accordance
with good business practice and all applicable Legal Requirements, accurately
present and reflect in all material respects all of the transactions therein
described, and are reflected accurately in the Financial Statements. UMA will
deliver to USV true and complete copies of all the minutes and meetings and all
other corporate actions of the officers, directors and shareholders of UMA since
the date of its incorporation.

      Section 3.16 Certain Interests. None of UMA or its officers or directors,
directly or indirectly is, or owns any interest in, or controls, or is an
employee, officer or director or partner of or participant in, or consultant to,
any person which is a competitor, supplier or customer of UMA with the exception
of their relationship with Invinity Systems Corporation, which relationships
have previously been disclosed to USV and its affiliates.

      Section 3.17 Bank Accounts. Exhibit 3.17 sets forth all bank accounts,
brokerage accounts, and safe deposit boxes of any kind maintained by UMA and, in
each case, identifies the persons that are authorized signatories for, or which
are authorized to have access to, each of them.

                                       8
<PAGE>

      Section 3.18 Changes in Circumstances. UMA has no knowledge of (i) any
current or future condition or state of facts of circumstances which could
reasonably be expected to result in a material and adverse change in the
financial condition of operations of UMA, or (ii) any Legal Requirements
currently in effect from which UMA currently is, or any currently proposed Legal
Requirements from which UMA would be, except by reason of any "grandfather"
clauses of provisions contained therein, but which would be applicable to USV
following closing.

      Section 3.19 Accuracy of Information. None of the written information and
documents which have been or will be furnished by UMA or any representatives of
UMA to USV or any of the representatives of USV in connection with the
transactions contemplated by this Agreement contains or will contain, as the
case may be, any untrue statement of a material fact, or omits or will omit to
state a material fact necessary in order to make the statements therein not
misleading in light of the circumstances in which made. To the knowledge of UMA,
UMA has disclosed to USV as the purchaser of UMA Interests all material
information relating to UMA and its activities as currently conducted.

      Section 3.20 Investment. UMA is acquiring USV Common Stock for investment
purposes, and not with a view to distribution or resale thereof in violation of
applicable securities Legal Requirements.

      Section 3.21 Compliance with ERISA. UMA does not maintain or contribute to
any Plan other than as set forth in Schedule 3.21. UMA and each member of the
Controlled Group have fulfilled their obligations under the minimum funding
standards of ERISA and the Code with respect to each Plan and are in compliance
in all material respects with the applicable provisions of ERISA and the Code,
and have not incurred any liability to the PBGC or a Plan under Title IV of
ERISA; and no "prohibited transaction" or "reportable event" (as such terms are
defined in ERISA) has occurred with respect to any Plan.

      Section 3.22 Environmental Matters.

            (a) UMA has obtained all permits, licenses and other authorizations
which are required under all Environmental Laws, except to the extent failure to
have any such permit, license or authorization would not have a material adverse
effect on the business, financial condition or operations of UMA. UMA is in
compliance with the terms and conditions of all such permits, licenses and
authorizations, and is also in compliance with all other limitations,
restrictions, conditions, standards,

                                       9
<PAGE>

prohibitions, requirements, obligations, schedules and timetables contained in
any applicable Environmental Law or in any regulation, code, plan, order,
decree, judgment, injunction, notice or demand letter issued, entered,
promulgated or approved thereunder, except to the extent failure to comply would
not have a material adverse effect on the business, financial condition or
operations of UMA.

            (b) No notice, notification, demand, request for information,
citation, summons or order has been issued, no complaint has been filed, no
penalty has been assessed and no investigation or review is pending or
threatened by any governmental or other entity with respect to any alleged
failure by UMA or any of its Subsidiaries to have any permit, license or
authorization required in connection with the conduct of its business or with
respect to any Environmental Laws, including, without limitation, Environmental
Laws relating to the generation, treatment storage, recycling, transportation,
disposal or release of any Hazardous Materials.

            (c) To the best of UMA's knowledge, no material oral or written
notification of a release of a Hazardous Material has been filed by or on behalf
of UMA and no property now or previously owned, leased or used by UMA is listed
or proposed for listing on the National Priorities List under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, or
on any similar state list of sites requiring investigation or clean-up.

            (d) There are no liens or encumbrances arising under or pursuant to
any Environmental Laws on any of the real property or properties owned, leased
or used by UMA and no governmental actions have been taken or are in process
which could subject any of such properties to such liens or encumbrances or, as
a result of which UMA would be required to place any notice or restriction
relating to the presence of Hazardous Materials at any property owned by it in
any deed to such property.

            (e) Neither UMA nor, to the best knowledge of UMA, any previous
owner, tenant, occupant or user of any property owned, leased or used by UMA has
(i) engaged in or permitted any operations or activities upon or any use or
occupancy of such property, or any portion thereof, for the purpose of or in any
way involving the handling, manufacture, treatment, storage, use, generation,
release, discharge, refining, dumping or disposal (whether legal or illegal,
accidental or intentional) of any Hazardous Materials on, under, in or about
such property, except in compliance with all Environmental Laws, or (ii)
transported any

                                       10
<PAGE>

Hazardous Materials to, from or across such property except in compliance with
all Environmental Laws; nor to the best knowledge of UMA have any Hazardous
Materials migrated from other properties upon, about or beneath such property,
nor, to the best knowledge of UMA, are any Hazardous Materials presently
constructed, deposited, stored or otherwise located on, under, in or about such
property except in compliance with all Environmental Laws.

      Section 3.24 Franchises, Patents, Copyrights, Etc. Schedule 3.24 sets
forth an accurate and complete list of all franchises, patents, copyrights,
trademarks, trade names, trademark registrations, service names, service marks,
licenses, formulas and applications therefor owned by UMA or used or required by
UMA in the operation of its business, title to each of which is, except as set
forth in Schedule 3.24 hereto, held by UMA free and clear of all adverse claims,
liens, security agreements, restrictions or other encumbrances. Except as set
forth in Schedule 3.24, UMA owns or possesses adequate (and will use its best
efforts to obtain as expediently as possible any additional) licenses or other
rights to use all patents, trademarks, trade names, service marks, trade secrets
or other intangible property rights and know-how necessary to entitle UMA to
conduct its business as presently being conducted. There is no infringement
action, lawsuit, claim or complaint which asserts that UMA's operations violate
or infringe the rights or the trade names, trademarks, trademark registrations,
service names, service marks or copyrights of others with respect to any
apparatus or method of UMA or any adversely held trademarks, trade names,
trademark registrations, service names, service marks or copyrights, and UMA is
not in any way making use of any confidential information or trade secrets of
any person, except with the consent of such person. Except as set forth in
Schedule 3.24, UMA has taken reasonable steps to protect its proprietary
information (except disclosure of source codes pursuant to licensing agreements)
and is the lawful owner of the proprietary information free and clear of any
claim of any third party. UMA's proprietary rights are adequate for the conduct
of its business substantially as now conducted without known conflict with any
rights of others.

      Section 3.25 No Materially Adverse Contracts, Etc. UMA is not subject to
any charter, corporate or other legal restriction, or any judgment, decree,
order, rule or regulation that has or is expected in the future to have a
materially adverse effect on the business, assets or financial condition of UMA.
UMA is not a party to any contract or agreement that has or is expected, in the
judgment of UMA's officers, to have any materially adverse effect on the
business of UMA.

                                       11
<PAGE>

      Section 3.26 Compliance With Other Instruments, Laws, Etc. UMA is not in
violation of any provision of its certificate of incorporation, by-laws, or any
agreement or instrument to which it may be subject or by which it or any of its
properties may be bound, or any decree, order, judgment, statute, license, rule
or regulation, in any of the foregoing cases in a manner that could result in
the imposition of substantial penalties or materially and adversely affect the
financial condition, properties or business of UMA.

      Section 3.27 Absence of UCC Financing Statements, Etc. There is no
financing statement, security agreement, chattel mortgage, real estate mortgage
or other document filed or recorded with any filing records, registry, or other
public office, that purports to cover, affect or give notice of any present or
possible future lien on, or security interest in, any Collateral or rights
thereunder.

      Section 3.28 Certain Transactions. Except as set forth in Schedule 3.28,
none of the officers, trustees, directors, or employees of UMA is presently a
party to any transaction with UMA, including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, trustee, director or such employee or, to the knowledge
of UMA, any corporation, partnership, trust or other entity in which any
officer, trustee, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

      Section 3.29 Capitalization. UMA's authorized capital stock consists
solely of 10,000,000 shares of Common Stock, $0.001 par value per share, of
which 10,000,000 fully diluted shares are issued and outstanding and no shares
are reserved for issuance upon the exercise or conversion of warrants, options
and other rights to purchase or otherwise obtain (by exchange or otherwise)
shares of Common Stock. All outstanding shares of Common Stock have been duly
authorized, are validly issued, fully paid and nonassessable. Each UMA
Shareholder shall receive one (1) share of USV for each share of UMA held at
Closing.

      Section 3.30 Fees/Commissions. Except as set forth in Schedule 3.30
hereto, UMA has not agreed to pay any finder's fee, commission, origination fee
or other fee or charge to any Person with respect to the transactions
contemplated hereunder.

      Section 3.31 Employees. UMA has no current labor problems

                                       12
<PAGE>

or disputes which have resulted in, or are reasonably believed by UMA could
have, a material adverse effect on the operations, properties or financial
condition of UMA.

      Section 3.32 Solvency. As of the date hereof, UMA (i) has capital
sufficient to carry on its business and transactions and all business and
transactions in which it is about to engage and is able to pay its debts as they
mature, (ii) owns property having a value, both at fair valuation and at present
fair saleable value, greater than the amount required to pay its probable
liabilities (including contingencies), and (iii) does not believe that it will
incur debts or liabilities beyond its ability to pay such debts or liabilities
as they mature.

      Section 3.33 Other Representations and Warranties. All representations,
warranties, and covenants made by UMA in connection with this transaction are
true and correct in all material respects, and do not omit to state a material
fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading.

                                    ARTICLE 4
                      REPRESENTATIONS AND WARRANTIES OF USV

      USV represents and warrants to UMA, as of the date of this Agreement and
as of Closing, as follows:

      Section 4.1 Organization and Qualification of USV. USV is a corporation
duly organized, validly existing, and in good standing under the laws of the
State of Colorado, and has all requisite corporate power and authority to own
and lease the properties and assets it currently owns and leases and to conduct
its activities as currently conducted. USV is duly qualified to do business as a
foreign corporation in all jurisdictions in which the ownership or leasing of
the properties and assets owned or leased by it or the nature of its activities
makes such qualification necessary.

      Section 4.2 Authority. USV has all requisite corporation and authority to
execute, deliver and perform this Agreement. The execution, delivery, and
performance of this Agreement by USV have been duly and validly authorized by
all necessary action on the part of USV. This Agreement has been duly and
validly executed and delivered by USV and is the valid and binding obligation of
USV, enforceable against USV in accordance with its terms.

      Section 4.3 No Conflicts; Required Consents. The execution, delivery and
performance by USV of this Agreement does not and will

                                       13
<PAGE>

not: (i) conflict with or violate any provisions of the articles of certificate
of incorporation or bylaws of USV; (ii) violate any provisions of any Legal
Requirements; or (iii) conflict with, violate result in a breach of, constitute
a default under (without regard to requirements of notice, lapse of time, or
elections of other persons, or any combination thereof) or accelerate or permit
the acceleration of the performance required by, and Contract or Lien to which
USV is a party or by which USV or the assets or properties owned or leased by it
are bound or affected; or (iv) require any consent, approval or authorization,
report or other document with, any Governmental Authority or other person.

      Section 4.4 Validity and Ownership of USV Common Stock. The USV Common
Stock received by the members of UMA at Closing will be validly issued and
outstanding, duly paid and nonassessable. The USV Common Stock will not be
subject to, nor bound or affected by, any proxies, voting agreements, or other
restrictions on the ownership thereof.

      Section 4.5 Ownership and Number of Shares of USV Common Stock. The
shareholders' list attached hereto as Exhibit 4.5 accurately reflects the
currently issued and outstanding shares of USV Common Stock currently
outstanding. After a reverse stock split of twenty-two-to-one which will be
approved prior to Closing, there are not, and will not at Closing, be more than
1,000,000 issued and outstanding shares of USV Common Stock.

      Section 4.6 Subsidiaries. USV does not control or hold direct or indirect
equity interest in, or hold rights to control or acquire direct or indirect
equity interests in, any corporation.

      Section 4.7 Capitalization of USV. The authorized capital stock of USV
consists of 100,000,000 duly authorized shares of common stock $.001 per share
par value, of which 100,000,000 are validly issued and outstanding, fully paid
and nonassessable. Prior to Closing, USV will approve a twenty-two-to-one
reverse stock split, reducing the number of issued and outstanding shares to
1,000,000 at Closing. There are 40,000,000 duly authorized shares of preferred
stock, par value $.001, of which none has been issued. There are no other
authorized or outstanding subscriptions, options, convertible securities,
warrants, calls or other rights or any kind issued or granted by, or binding
upon, USV to purchase or otherwise acquire any securities of or equity interest
in USV.

      Section 4.8 Litigation. There is no litigation pending or, to USV's
knowledge, threatened, by or before any governmental authority or private
arbitration tribunal, against USV or its

                                       14
<PAGE>

operations, nor, to USV's knowledge, is there any basis for any such litigation.

      Section 4.9 Resignation of Directors and Officers. USV shall have
delivered to UMA the resignation of certain officers of USV such that after the
Closing, the officers and directors of USV shall be as follows:

      Philip Kramer, Director, President
      Peter S. Muffoletto, Director, Secretary and Treasurer
      Tory A. Budgen, Director

      Section 4.10 Liabilities. Except as disclosed in Exhibit 4.10, USV has no
liabilities or obligations, whether absolute, accrued, contingent, or otherwise
that have not been disclosed to UMA.

      Section 4.11 Tax Returns and Payments. Except as disclosed in Schedule
4.11, USV has filed all federal, state, local and foreign tax returns required
to be filed, and has timely paid all taxes that have become due and payable,
whether or not so shown on any such tax returns. USV has not received any notice
of, nor does USV have any knowledge of, any deficiency or assessment of proposed
knowledge of, any deficiency or assessment of proposed deficiency or assessment
from any taxing governmental authority. There are no tax audits pending with
respect to USV, and there are no outstanding agreements or waivers by or with
respect to USV, that extend the statutory period of limitations applicable to
any federal, state, local or foreign tax returns for any period. USV makes no
representation or warranty concerning whether or not its net operating loss
carryforwards will be available for use by UMA following this transaction.

      Section 4.12 Books and Records. All of the books, records and accounts of
USV are in all material respects true and complete, are maintained in accordance
with good business practice and all applicable Legal Requirements, accurately
present and reflect in all material respects all of the transactions therein
described, and are reflected accurately in the Financial Statements. USV has
previously delivered to UMA the complete stock record book of USV and true and
complete copies of all the minutes and meetings and all other corporate actions
of the stockholders, Board of Directors and committees of the Board of Directors
of USV since the date of its incorporation.

      Section 4.13 Accuracy of Information. None of the written information and
documents which have been or will be furnished by

                                       15
<PAGE>

USV or any representatives of USV to UMA or any of the representatives of UMA in
connection with the transactions contemplated by this Agreement contains or will
contain, as the case may be, any untrue statement of a material fact, or omits
or will omit to state a material fact necessary in order to make the statements
therein not misleading in light of the circumstances in which made. To the
knowledge of USV, USV has disclosed to UMA as the purchaser of USV common stock
all material information relating to USV and its activities.

                                    ARTICLE 5
                            Covenants of UMA and USV

      Section 5.1 Affirmative Covenants of UMA. Except as USV may otherwise
consent in writing, between the date of this Agreement and Closing, UMA shall:

      (a) conduct its business only in the usual, regular and ordinary course
and in accordance with past practices;

      (b) (1) duly comply with all applicable Legal Requirements; (2) perform
all of its obligations under all UMA Contacts without default; and (3) maintain
its books, records, and accounts on a basis consistent with past practices;

      (c) (1) give to USV, its counsel, accountants and other representatives
reasonable access during normal business hours to the premises of UMA, all of
the assets and properties owned or leased by UMA, UMA's books and records, and
UMA's personnel; (2) furnish to USV and such representatives all such additional
documents (certified by an officer of UMA, if requested), financial information
and other information as UMA may from time to time reasonably request and (3)
cause UMA's accountants to permit USV and its accountants to examine the records
and working papers pertaining to UMA's financial statements' provided that no
investigation by USV of its representatives will affect or limit the scope of
any of the representations and warranties of UMA herein or in any other related
document;

      (d) use of best efforts to obtain in writing as promptly as possible all
approvals and consents required to be obtained by UMA in order to consummate the
transactions contemplated hereby and deliver to USV copies, satisfactory in form
and substance to USV, of such approvals and consents;

      (e) promptly deliver to USV true and complete copies of all monthly and
quarterly financial statements of UMA and any reports

                                       16
<PAGE>

with respect to the activities of UMA which are prepared by or for UMA at any
time from the date hereof until Closing; and

      (f) promptly notify USV of any circumstances, event or action, by UMA or
otherwise, (A) which, if known at the date of this Agreement, would have been
required to be disclosed in or pursuant to this Agreement, or (B) the existence,
occurrence or taking of which would result in any of the representations and
warranties of UMA in this Agreement or in any Transaction Documents not being
true and correct in all material respects.

      Section 5.2 Negative Covenants of UMA. Except as USV may otherwise consent
in writing, between the date of this Agreement and Closing, UMA shall not:

      (a) change the character of its business;

      (b) incur any liability or obligation or enter into any Contract except,
in each case, in the ordinary course of business consistent with prior practices
and not prohibited by any other provision hereof;

      (c) incur, assume or guarantee any indebtedness or liability in respect of
borrowed money;

      (d) make any capital expenditure or commitment for capital expenditure
exceeding $5,000 for a single project or $10,000 for all projects, whether or
not in the ordinary course of business, or waive, lease, discharge, transfer or
cancel any rights or claims of material value with the exception that following
the launch of the new business on or about October 1, 2001, it is anticipated
that UMA, shall enter into employment agreement, lease and sublease agreements,
and expend other such sums necessary for UMA to commence operations, and those
agreements are excluded from this section;

      (e) modify, terminate, or abrogate any Material UMA Contact other than in
the ordinary course of business, or waive, lease, discharge, transfer or cancel
any rights or claims of material value;

      (f) create or permit the creation or attachment of any Lien against any of
the assets or properties owned or leased by it;

      (g) except as otherwise required by this Agreement, prepay any material
liabilities or obligations;

                                       17
<PAGE>

      (h) issue any securities, or merge or consolidate with any other person or
acquire any of the securities, partnership or joint venture interests, or
business of any other person;

      (i) declare, set aside or pay any dividends on, or make any other
distribution with respect to, any of its capital stock, or repurchase, redeem,
or otherwise acquire any of its capital stock; and

      (j) enter into any transaction or permit the taking of any action that
would result in any of the representations and warranties in this Agreement not
being true and correct in all material respects at Closing.

      Section 5.3 Covenants of USV. Except as UMA may otherwise agree in
writing, between the date of this Agreement and Closing, USV shall:

      (a) use it best efforts to obtain in writing as promptly as possible all
approvals and consents required to be obtained by USV in order to consummate the
transaction contemplated hereby and deliver to UMA copies, satisfactory in form
and substance to UMA, of such approvals and consents;

      (b) promptly notify UMA of any circumstance, event or action, by USV or
otherwise, (i) which, if known at the date of this Agreement, would have been
required to be disclosed in or pursuant to this Agreement, or (ii) the
existence, occurrence or taking of which would result in any of the
representations and warranties of UA in this Agreement or in any Transaction
Document not being true and correct in all material respects;

      (c) undertake all other actions necessary to put into force and effect
this Agreement.

      Section 5.4 Joint Undertakings. Each of USV and UMA shall cooperate and
exercise commercially reasonable efforts to facilitate the consummation of the
transactions contemplated by this Agreement so as to permit Closing to take
place on the date provided herein and to raise the satisfaction of conditions to
Closing set forth in Article 6. Both parties hereto agree that they will use
their best efforts to cause a Form 8-K to be filed with the Securities and
Exchange Commission concerning this transaction which Form 8-K will require
audited financial statements for UMA and pro forma financial information for the
companies as merged.

                                       18
<PAGE>

      Section 5.5 Confidentiality.

      (a) Any non-public information that USV may obtain from UMA in connection
with this Agreement, including but not limited to information concerning trade
secrets, licenses, research projects, costs, profits, markets, sales, customer
lists, strategies, plans for future development and any other information of a
similar nature, shall be deemed confidential and, unless and until Closing shall
occur, USV shall not disclose any such information to any third party (other
than its directors, officers and employees and persons whose knowledge thereof
is necessary to facilitate the consummation of the transactions contemplated
hereby) or use such information to the detriment of UMA; provided that (i) USV
may use and disclose any such information once it has been publicly disclosed
(other than by USV in breach of its obligations under this Section) or which
rightfully has come into the possession of USV (other than from UMA) and (ii) to
the extent that USV may become complied by Legal Requirements to disclose any of
such information, USV may disclose such information if it shall have used all
reasonable efforts, and shall have afforded UMA the opportunity to obtain an
appropriate protective order, or other satisfactory assurance of confidential
treatment for the protective order, or other satisfactory assurance of
confidential treatment, for the information compelling to be disclosed. In the
event of termination of this Agreement, USV shall use all reasonable efforts to
cause to be delivered to UMA, and retain no copies of, any documents, work
papers and other materials obtained by USV or on its behalf from UMA, whether so
obtained before or after the execution hereof.

      (b) Any non-public information that UMA may obtain from USV in connection
with this Agreement, including but not limited to information concerning trade
secrets, licenses, research projects, costs, profits, markets, sales, customer
lists, strategies, plans for future development and any other information of a
similar nature, shall be deemed confidential and, unless and until Closing shall
occur, UMA shall not disclose any such information to any third party (other
than its directors, officers and employees, and persons whose knowledge thereof
is necessary to facilitate the consummation of the transactions contemplated
hereby) or use such information to the detriment of USV; provided that (i) UMA
may use and disclose any such information once it has been publicly disclosed
(other than by UMA in breach of obligations under this Section) or which
rightfully has come into the possession of UMA (other than from USV) and (ii) to
the extent that UMA may become complied by Legal Requirements to disclose any of
such information, UMA may disclose such information if it shall have used all

                                       19
<PAGE>

reasonable efforts, and shall have afforded USV the opportunity, to obtain an
appropriate protective order, or other satisfactory assurance of confidential
treatment, for the information compelled to be disclosed. In the event of
termination of this Agreement, UMA shall use all reasonable efforts to cause to
be delivered to USV, and retain no copies of, any documents, work papers and
other materials obtained by UMA or on its behalf from USV, whether so obtained
before or after the execution hereof.

      Section 5.6 Publicity. USV and UMA shall each consult with and obtain the
consent of the other before issuing any press release or making any other public
disclosure concerning this Agreement or the transactions contemplated hereby
unless, in the reasonable judgment of the disclosing party, a release or
disclosure is required to discharge its disclosure obligations under applicable
legal requirements, in which case it shall in good faith consult with the other
party about the form, content and timing of such release or disclosure prior to
its release of disclosure.

                                    ARTICLE 6
                              Conditions Precedent

      Section 6.1 Conditions to UMA's Obligations. The obligations of UMA to
consummate the transactions contemplated by this Agreement are subject to the
following conditions:

      (a) Accuracy of Representations. The representations of USV in this
Agreement or in any Transaction Document shall be true and accurate in all
material respects at and as of Closing with the same effect as if made at and as
of Closing, except as affected by the transactions contemplated hereby.

      (b) Performance of Agreements. USV shall have performed all obligations
and agreements and complied with all covenants in this Agreement to be performed
and complied with by it at or before Closing.

      (c) Officers's Certificate. UMA shall have received a certificate executed
by an executive officer of USV, dated as of Closing, reasonably satisfactory in
form and substance to UMA certifying that the conditions stated in subparagraphs
(a) and (b) of this Section have been satisfied.

      (d) Legal Proceedings. There shall be no Legal Requirement, and no
judgment shall have been entered and not vacated by any

                                       20
<PAGE>

governmental authority of competent jurisdiction and no litigation shall be
pending which restrains, makes illegal or prohibits consummation of the
transactions contemplated hereby.

      (e) Consents. UMA shall have obtained evidence, in form and substance
satisfactory to it, that there have been obtained all consents, approvals and
authorizations required by this Agreement.

      (f) Legal Matters Satisfactory to UMA's Counsel. All actions, proceedings,
instruments and documents required to carry out the transactions contemplated by
this Agreement or incidental thereto and all related matters shall be reasonably
satisfactory to and approved by UMA's counsel, and such counsel shall have been
furnished with such certified copies of actions and proceedings and such other
instruments and documents as it shall have reasonably requested.

      (g) Opinion of Counsel Concerning Organization and Transaction. UMA shall
have received from counsel for USV a favorable opinion addressed to UMA and
dated as of the Closing Date, satisfactory in form and content to UMA,
concerning the organization and this transaction.

      Section 6.2 Conditions to USV's Obligations. The obligations of USV to
consummate the transactions contemplated by this Agreement are subject to the
following conditions:

      (a) Accuracy of Representations. The representations of UMA in this
Agreement or in any Transaction Document shall be true and accurate (in all
material respects) at and as of Closing with the same effect as if they were
made at and as of Closing, except as afforded by the transactions contemplated
hereby.

      (b) Performance of Agreements. UMA shall have performed all obligations
and agreements and complied with all covenants in this Agreement or in any
Transaction Document to which it is a party to be performed and complied with by
it at or before closing.

      (c) Officers's Certificate. USV shall have received a certificate executed
by an executive officer of UMA, dated as of Closing, reasonably satisfactory in
form and substance to USV, certifying that the conditions stated in
subparagraphs (a) and (b) of this Section have been satisfied.

      (d) Legal Proceedings. There shall be no Legal Requirement, and no
judgment shall have been entered and not created by any

                                       21
<PAGE>

governmental authority of competent jurisdiction and no litigation shall be
pending which restrains, makes illegal or prohibits consummation of the
transactions contemplated hereby.

      (e) Consents. USV shall have obtained evidence, in form and substance
satisfactory to it, that there have been obtained all consents, approvals and
authorizations required by this Agreement.

      (f) Legal Matters Satisfactory to USV's Counsel. All actions, proceedings,
instruments and documents required to carry out the transactions contemplated by
this Agreement or incidental thereto and all related legal matters shall be
reasonably satisfactory to and approved by USV's counsel, and such counsel shall
have been furnished with such copies of actions and proceedings and such other
instruments and documents as it shall have reasonably requested.

      (g) Opinion of Counsel Concerning Organization and Transaction. USV shall
have received from counsel for UMA a favorable opinion addressed to USV and
dated as of the Closing Date, satisfactory in form and content to USV,
concerning the organization and this transaction.

                                    ARTICLE 7
                                 Indemnification

      Section 7.1 Indemnification by UMA Shareholders. From and after Closing,
the UMA Shareholders set forth in Exhibit 7, who together with their
subsidiaries, other corporate affiliates, and immediate families, are all the
holders of UMA Shares ("UMA Shareholders") all jointly and severally indemnify
and hold harmless USV, its officers, directors, employees, agents and
representatives and any person claiming by or through any of them, from and
against any and all losses and related expenses arising out of or resulting
from:

      (a) any representations and warranties of UMA in this Agreement not being
true and accurate when made or when required by this Agreement to be true and
accurate; or

      (b) any failure by UMA to perform any of its covenants, agreements or
obligations in this Agreement.

      Section 7.2 Indemnification by USV. From and after the Closing, USV shall
indemnify and hold harmless UMA, its officers, directors, agents and
representatives, and any person claiming by

                                       22
<PAGE>

or through any of them as the case my be, from and against any and all losses
and related expenses arising out of or resulting from:

      (a) any representations and warranties of USV in this Agreement not being
true and accurate when made or when required by this Agreement to be true and
accurate; or

      (b) any failure by USV to perform any of its covenants, agreements or
obligations in this Agreement.

      (c) all undisclosed abilities and obligations relating to, or arising out
of activities of USV during periods prior to Closing.

      Section 7.3 Indemnification Against Third Party Claims. Promptly after
receipt entitled to indemnification hereunder (the "Indemnitee") of written
notice of the assertion of any claim or the commencement of any Litigation with
respect to any matter referred to Sections 7.1 or 7.2, the Indemnitee shall give
written notice thereof to the party from whom indemnification is sought pursuant
hereto (the "Indemnitor") and thereafter shall keep the Indemnitor reasonably
informed with respect thereto, may provided that failure of the Indemnitee to
give the Indemnitor notice as provided herein shall not relieve the Indemnitor
of its obligations hereunder. In case any litigation is brought against any
Indemnitee, the Indemnitor shall be entitled to participate in (and at the
request of the Indemnitee shall assume) the defense thereof with counsel
satisfactory to Indemnitee at the Indemnitor's expense. If the Indemnitor, at
the Indemnitee's request, shall assume the defense of any settlement shall
include as an unconditional term thereof the giving by the claimant or the
plaintiff of a release of the Indemnitee, satisfactory to the Indemnitee, from
all liability with respect to such litigation.

      Section 7.4 Time and Manner of Certain Claims. The representations and
warranties of USV and the Principal Shareholders in this Agreement shall survive
Closing; provided, however, that neither USV nor the Members shall have any
liability under Section 7.1 or 7.2, respectively, unless a claim is asserted by
the party seeking indemnification thereunder by written notice to the party from
whom indemnification is sought within three years after Closing, and such party
commences litigation seeking such indemnification within 180 days following the
date of such notice.

      Section 7.5 Effect of de minimus Damage on Indemnity by Principal
Shareholders. The Members shall have no indemnity obligations under this Article
7 unless aggregate amount payable by them under this Article 7 is in excess of
$10,000.

                                       23
<PAGE>

      Section 7.6 Tax Effect. In calculating amount payable to an Indemnitee
hereunder (i) the amount of the indemnified losses shall be reduced by the
amount of any reduction in the Indemnitee's liability for taxes resulting from
the facts or occurrence giving rise to the indemnified losses; and (ii) the
amount of the indemnified losses shall be grossed up by the amount of any
increase in liability for taxes resulting from indemnification with respect
thereto.

                                    ARTICLE 8
                                   Termination

      Section 8.1 Termination Events. This Agreement may be terminated and the
transactions contemplated hereby may be abandoned:

      (a) at any time, by the mutual agreement of USV and UMA.

      (b) by either USV and UMA, if the other is in material breach or default
of its respective covenants, agreements or other obligations hereunder or if any
of its representations and warranties herein are not true and accurate in all
material respects when made or when otherwise required by this Agreement to be
true and accurate.

      (c) by either USV or UMA upon written notice to the other, if the
transaction contemplated by this Agreement is not consummated on or prior to
January 31, 2002, for any reason other than material breach or default by such
party of its respective representations, warranties, covenants, agreements or
other obligations hereunder.

      Section 8.2 Effect of Termination. If this Agreement shall be terminated,
all obligations of the parties hereunder shall terminate, except for the
obligations set forth in section 5.5, 5.6 and 9.3.

                                    ARTICLE 9
                                  Miscellaneous

      Section 9.1 Expenses. Each party shall pay its own expenses incurred as a
result of this transaction.

      Section 9.2 Waiver and Modifications. Any of the provisions of this
Agreement may be waived at any time by the party entitled to the benefit
thereof, upon the authority of the Board of Directors of such party. Any of the
provisions of this Agreement

                                       24
<PAGE>

(including the exhibits and the Agreement of Merger) may be modified at any time
prior to and after the vote of the UMA Shareholders by agreement in writing
approved by the Board of Directors of each party and executed in the same manner
(but necessarily by the same persons) as this Agreement, provided that such
modification, after the last vote of the UMA Shareholders shall not be allowed,
if in the judgment of the Board of Directors of UMA, it affects materially and
adversely the benefits of UMA's Shareholders under this Agreement of Merger. To
the extent permitted by law, the powers of the Board of Directors may be
delegated by the Board of the Executive Committee of such Board or by such Board
(or by the Executive Committee to the extent any matter has been delegated to
such Committee by the Board) to any officer or officers of such party, and any
notices, consents or other action referred to in this Agreement may be given or
taken by any officer so authorized.

      Section 9.3 Finders and commissions. USV and UMA each represents and
warrants that no broker or finder is entitled to any brokerage or finder's fee
or other commission based on agreements, arrangements or understandings made by
it with respect to the transactions contemplated by this Agreement or by the
Agreement of Merger, other than set forth in Exhibit 9.3.

      Section 9.4 Notices. Any notice request, instruction or other documents to
be given hereunder or under the Agreement of Merger by any part to another shall
be in writing and delivered personally or sent by registered or certified mail,
postage prepaid,

      if to USV, addressed to:

      Universal Services & Acquisitions, Inc.
      21800 Oxnard Street Suite 440
      Woodland Hills CA 91367

      with a copy to:

      Claudia J. Zaman, Esq.
      Claudia J. Zaman Attorney At Law
      21800 Oxnard Street Suite 440
      Woodland Hills CA 91367

      if to UMA, addressed to:

      Philip Kramer, President
      Universal Medical Alliance
      23901 Calabasas Road Suite 1078

                                       25
<PAGE>

      Calabasas CA 91302

      Section 9.5 Abandonment. At any time before the effective Date, this
Merger Agreement may be terminated and the merger may be abandoned by the Board
of Directors of USV or UMA or both, notwithstanding approval of this Agreement
by the UMA Shareholders or the USV Shareholders or both.

      Section 9.6 Entire Agreement. This Agreement and Plan of Merger represents
the entire agreement between the parties. Any and all oral or written agreements
concerning this merger shall be deemed null and void.

      Section 9.6 Governing Law. This Agreement shall be governed by, construed,
and enforced in accordance with the laws of the State of California.

      Section 9.7 Counterparts. In order to facilitate the filing and recording
of this Merger Agreement, the same may be executed in any number of
counterparts, each of which shall be deemed to be an original.

      IN WITNESS WHEREOF, USV and UMA, by their duly authorized officers, have
executed and delivered this Agreement effective as of the date first above
written.

                                        UNIVERSAL SERVICES & ACQUISITIONS, INC.

                                        By: /s/ Charles Smith
                                           -------------------------------------
                                           Charles Smith, CEO

                                        UNIVERSAL MEDICAL ALLIANCE

                                        By: /s/ Philip Kramer
                                           -------------------------------------
                                           Philip Kramer, President

                                       26

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