Document:

Prepared and filed by St Ives Financial

Exhibit 10.2

2002 STOCK OPTION PLAN

OF

TAKE-TWO INTERACTIVE SOFTWARE, INC.

(As Amended in June 2002, April 2003, June 2004 AND June 2005 and as adjusted for a 3-for-2 stock split in April 2005)

1.      Purpose

     Take-Two Interactive Software, Inc. (the “Company”) desires to attract and retain the best available talent and encourage the highest level of performance in order to continue to serve the best interests of the Company, and its stockholders.  By affording key personnel and other persons who are expected to contribute to the success of the Company the opportunity to acquire proprietary interests in the Company and by providing them incentives to put forth maximum efforts for the success of the Company, the 2002 Stock Option Plan of the Company (the “2002 Plan”) is expected to contribute to the attainment of those objectives.

     The word “Subsidiary” or “Subsidiaries” , as used herein, shall have the meaning set forth in Section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor thereto.

     The word “Parent” as used herein, shall have the meaning set forth in Section 424(e) of the Code, or any successor thereto. 

2.      Scope and Duration

     Options under the 2002 Plan may be granted in the form of incentive stock options (“Incentive Options”) as provided in Section 422 of the Code, or in the form of nonqualified stock options (“Non-Qualified Options”).  (Unless otherwise indicated, references in the 2002 Plan to “options” include Incentive Options and Non-Qualified Options.)  The maximum aggregate number of shares as to which options may be granted from time to time under the 2002 Plan is 11,000,000 shares of the common stock of the Company (“Common Stock”), which shares may be, in whole or in part, authorized but unissued shares or shares reacquired by the Company.  The maximum number of shares with respect to
which options may be granted under the 2002 Plan to any individual employee of the Company or a subsidiary of the Company during the term of the 2002 Plan is 500,000.  If an option shall expire, terminate or be surrendered for cancellation for any reason without having been exercised in full, the shares represented by the option or portion thereof not so exercised shall (unless the 2002 Plan shall have been terminated) become available for subsequent option grants under the 2002 Plan.  As provided in Paragraph 13 hereof, the 2002 Plan shall become effective on April 25, 2002, and unless terminated sooner pursuant to Paragraph 14 hereof, the 2002 Plan shall terminate on April 24, 2012, and no option shall be granted hereunder after that date.

3.      Administration

     The 2002 Plan shall be administered by the Board of Directors of the Company, or, at their discretion, by a committee which is appointed by the Board of Directors to perform such function (the “Committee”).  The Committee shall consist solely of at least two members of the Board of Directors, each of whom shall serve at the pleasure of the Board of Directors and shall be a “Non-Employee Director” as defined in Rule l6b-3 pursuant to the Securities Exchange Act of 1934 (the “Act”) or any successor rule and, if practicable, shall be “outside directors” as defined in Section 162(m) of the Code.  Vacancies occurring in the membership of the Committee shall be filled by appointment
by the Board of Directors.

     The Board of Directors or the Committee, as the case may be, shall have plenary authority in its sole discretion, subject to and not inconsistent with the express provisions of the 2002 Plan, to grant options, to determine the purchase price of the Common Stock covered by each option, the term of each option, the persons to whom, and the time or times at which, options shall be granted and the number of shares to be covered by each option; to designate options as Incentive Options or Non-Qualified Options; to interpret the 2002 Plan; to prescribe, amend and rescind rules and regulations relating to the 2002 Plan; to determine the terms and provisions of the option agreements (which need not be identical) entered into
in connection with options under the 2002 Plan; and to make all other determinations deemed necessary or advisable for the administration of the 2002 Plan.  The Board of Directors or the Committee, as the case may be, may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and the Board of Directors or the Committee, as the case may be, or any person to whom it has delegated duties as aforesaid may employ or engage one or more persons to render advice with respect to any responsibility the Board of Directors or the Committee, as the case may be, or such person may have under the 2002 Plan.

 

 
4.      Eligibility; Factors to be Considered in Granting Options

     Incentive Options shall be limited to persons who are employees of the Company or its present and future Subsidiaries or, if applicable, its present and future Parent and at the date of grant of any option are in the employ of the Company or its present and future Subsidiaries or Parent.  In determining the employees to whom Incentive Options shall be granted and the number of shares to be covered by each Incentive Option, the Board of Directors or the Committee, as the case may be, shall take into account the nature of employees' duties, their present and potential contributions to the success of the Company and such other factors as it shall deem relevant in connection with accomplishing the purposes of the 2002
Plan.  An employee who has been granted an option or options under the 2002 Plan may be granted an additional option or options, subject, in the case of Incentive Options, to such limitations as may be imposed by the Code on such options.  Except as provided below, a Non-Qualified Option may be granted to any person, including, but not limited to, employees, independent agents, consultants, attorneys and advisors, who the Board of Directors or the Committee, as the case may be, believes has contributed, or will contribute, to the success of the Company.

5.      Option Price

     The purchase price of the Common Stock covered by each option shall be determined by the Board of Directors or the Committee, as the case may be, and shall not be less than 100% of the Fair Market Value (as defined in Paragraph 15 hereof) of a share of the Common Stock on the date on which the option is granted.  Such price shall be subject to adjustment as provided in Paragraph 12 hereof.  The Board of Directors or the Committee, as the case may be, shall determine the date on which an option is granted; in the absence of such a determination, the date on which the Board of Directors or the Committee, as the case may be, adopts a resolution granting an option shall be considered the date on which such option is
granted.

6.      Term of Options

     The term of each option shall be not more than 10 years from the date of grant, as the Board of Directors or the Committee, as the case may be, shall determine, subject to earlier termination as provided in Paragraphs 10 and 11 hereof.

7.      Exercise of Options

     (a)      Subject to the provisions of the 2002 Plan, options granted under the 2002 Plan shall become exercisable as determined by the Board of Directors or Committee, as the case may be.  In its sole discretion, the Board of Directors or the Committee, as the case may be, may, in any case or cases, prescribe that options granted under the 2002 Plan become exercisable in installments or provide that an option may be exercisable in full immediately upon the date of its grant or at a later date.  The Board of Directors or the Committee, as the case may be, may, in its sole discretion, also provide that an option granted pursuant to the 2002 Plan shall immediately become exercisable in full upon
the happening of any of the following events or such other events as the Board of Directors or the Committee, as the case may be, determines: (i) a “change in control” of the Company as hereafter defined; or (ii) with respect to an employee, on his 65th birthday.  In the event of a question or controversy as to whether or not any of the events hereinabove described has taken place, a determination by the Board of Directors or the Committee, as the case may be, that such event has or has not occurred shall be conclusive and binding upon the Company and participants in the 2002 Plan.

 

 
     (b)      For purposes of the 2002 Plan, a “change in control of the Company” shall
      be deemed to occur, unless previously consented to in writing by the optionee
      or any person entitled to act under Paragraph 11 hereof, upon (i) the actual
      acquisition or the execution of an agreement to acquire 50% or more of
    the voting securities of the Company by any person or entity not affiliated
    with
      the grantee, or any person entitled to act under Paragraph 11 hereof (other
      than pursuant to a bona fide underwriting agreement relating to a public
      distribution of securities of the Company), (ii) the commencement of a
    tender or exchange offer for more than 50% of the voting securities of the
    Company
      by any person or entity not affiliated with the grantee, or any persons
    entitled to act under Paragraph 11 hereof, (iii) the commencement of a proxy
    contest
      against the management for the election of a majority of the Board of Directors
      of the Company if the group conducting the proxy contest owns, has or gains
      the power to vote at least 50% of the voting securities of the Company,
    (iv) a vote by the Board of Directors to merge, consolidate, sell all or
    substantially
      all of the assets of the Company to any person or entity not affiliated
    with the grantee, or any persons entitled to act under Paragraph 11 hereof,
    or
      (v) the election of directors constituting a majority of the Board of Directors
      who have not been nominated or approved by the Company; provided, however,
    for purposes of the 2002 Plan, it shall not be deemed a change in control
      of the Company if such person or entity acquires 50% or more of the voting
      securities
      of the Company (A) as a result of a combination of the Company or a wholly-owned
      subsidiary of Company with another entity owned or controlled by such persons
      or entity (whether effected by a merger, sale of assets or exchange of
      stock or otherwise) (the “Combination”) and (B) after completion
      of the Combination and for a continuous period of not less than twelve
      (12) months
      thereafter (I) executive officers of the Company (as designated in the
      Company's most recent Annual Report on Form 10-K or its most recent Proxy
      Statement
      filed with the Securities and Exchange Commission with respect to its Annual
      Meeting of Stockholders) immediately prior to the Combination constitute
      not less than 50% of the executive officers of the Company after the Combination
      or (II) the members of the Board of Directors of Company immediately prior
      to the Combination constitute not less than 50% of the membership of the
      Board of Directors of the Company after the Combination. For purposes of
      calculating the executive officers of the Company after the Combination,
      those executive officers who are terminated by the Company for cause or
      who terminate their employment without good reason, as determined by the
      Board
      of Directors or Committee shall be excluded from the calculation entirely.

     (c)      Any option at any time granted under the 2002 Plan may contain a provision to the effect that the optionee (or any persons entitled to act under Paragraph 11 hereof) may, at any time at which Fair Market Value is in excess of the exercise price and prior to exercising the option, in whole or in part, request that the Company purchase all or any portion of the option as shall then be exercisable at a price equal to the difference between (i) an amount equal to the option price multiplied by the number of shares subject to that portion of the option in respect of which such request shall be made and (ii) an amount equal to such number of shares multiplied by the fair market value of
the Company's Common Stock (within the meaning of Section 422 of the Code and the treasury regulations promulgated thereunder) on the date of purchase.  The Company shall have no obligation to make any purchase pursuant to such request, but if it elects to do so, such portion of the option as to which the request is made shall be surrendered to the Company.  The purchase price for the portion of the option to be so surrendered shall be paid by the Company, less any applicable withholding tax obligations imposed upon the Company by reason of the purchase, at the election of the Board of Directors or the Committee, as the case may be, either in cash or in shares of Common Stock (valued as of the date and in the manner provided in clause (ii) above), or in any combination of cash and Common
Stock, which may consist, in whole or in part, of shares of authorized but unissued Common Stock or shares of Common Stock held in the Company's treasury.  No fractional share of Common Stock shall be issued or transferred and any fractional share shall be disregarded.  Shares covered by that portion of any option purchased by the Company pursuant hereto and surrendered to the Company shall not be available for the granting of further options under the 2002 Plan.  All determinations to be made by the Company hereunder shall be made by the Board of Directors or the Committee, as the case may be.

          Any option granted under the 2002 Plan may also contain a provision to the effect that the payment of the exercise price may be made by delivery to the Company by the optionee of an executed exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the shares sold or margined and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price.

     (d)      An option may be exercised, at any time or from time to time (subject, in the case of Incentive Options, to such restrictions as may be imposed by the Code), as to any or all full shares as to which the option has become exercisable until the expiration of the period set forth in Paragraph 6 hereof, by the delivery to the Company, at its principal place of business, of (i) written notice of exercise in the form specified by the Board of Directors or the Committee, as the case may be, specifying the number of shares of Common Stock with respect to which the option is being exercised and signed by the person exercising the option as provided herein, (ii) payment of the purchase price;
and (iii) in the case of Non-Qualified Options, payment in cash of all withholding tax obligations imposed on the Company by reason of the exercise of the option.  Upon acceptance of such notice, receipt of payment in full, and receipt of payment of all withholding tax obligations, the Company shall cause to be issued a certificate representing the shares of Common Stock purchased.  In the event the person exercising the option delivers the items specified in (i) and (ii) of this Subsection (d), but not the item specified in (iii) hereof, if applicable, the option shall still be considered exercised upon acceptance by the Company for the full number of shares of Common Stock specified in the notice of exercise but the actual number of shares issued shall be reduced by the smallest number
of whole shares of Common Stock which, when multiplied by the Fair Market Value of the Common Stock as of the date the option is exercised, is sufficient to satisfy the required amount of withholding tax.

 
     (e)      If the payment of the purchase price is to be made in cash, the cash purchase price of the shares as to which an option is exercised shall be paid in full at the time of exercise. Payment shall be made in cash, which may be paid by check or other instrument acceptable to the Company; in addition, subject to compliance with applicable laws and regulations and such conditions as the Board of Directors or the Committee, as the case may be, may impose, the Board of Directors or the Committee, as the case may be, in its sole discretion, may on a case-by-case basis elect to accept payment in shares of Common Stock of the Company which are already owned by the option holder and have been
owned by the option holder for at least six months (or such other period as the Board or Committee, as the case may be, determines), valued at the Fair Market Value thereof (as defined in Paragraph 15 hereof) on the date of exercise; provided, however, that with respect to Incentive Options, no such discretion may be exercised unless the option agreement permits the payment of the purchase price in that manner.

     (f)      Except as provided in Paragraphs 10 and 11 hereof, no option granted to an employee may be exercised at any time by such employee unless such employee is then an employee of the Company or a Subsidiary or Parent.

8.      Incentive Options

     (a)      With respect to Incentive Options granted, the aggregate Fair Market Value (determined in accordance with the provisions of Paragraph 15 hereof at the time the Incentive Option is granted) of the Common Stock or any other stock of the Company or its current or future Subsidiaries or Parent with respect to which incentive stock options, as defined in Section 422 of the Code, are exercisable for the first time by any employee during any calendar year (under all incentive stock option plans of the Company and its parent and subsidiary corporations, as those terms are defined in Section 424 of the Code) shall not exceed $100,000.

     (b)      No Incentive Option may be awarded to any employee who immediately prior to the date of the granting of such Incentive Option owns more than 10% of the combined voting power of all classes of stock of the Company or any of its Subsidiaries unless the exercise price under the Incentive Option is at least 110% of the Fair Market Value of the Common Stock on the date of grant and the option expires within 5 years from the date of grant.

     (c)      In the event of amendments to the Code or applicable regulations relating to Incentive Options subsequent to the date hereof, the Company may amend the provisions of the 2002 Plan, and the Company and the employees holding options may agree to amend outstanding option agreements, to conform to such amendments.

9.      Non-Transferability of Options

     Except as may be otherwise provided by the Board or Committee at or after the date of grant with respect to a Non-Qualified Option, options granted under the 2002 Plan shall not be transferable otherwise than by will or the laws of descent and distribution, and options may be exercised during the lifetime of the optionee only by the optionee.  No transfer of an option by the optionee by will or by the laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and a copy of the will and such other evidence as the Company may deem necessary to establish the validity of the transfer and the acceptance by the transferor or transferees
of the terms and conditions of such option.

 
 

10.      Termination of Employment

     In the event that the employment of an employee to whom an option has been granted under the 2002 Plan shall be terminated (except as set forth below or in Paragraph 11 hereof), such option may be, subject to the provisions of the 2002 Plan, exercised (to the extent that the employee was entitled to do so at the termination of his employment) at any time within ninety (90) days after such termination (or such longer or shorter period as may be determined by the Board or Committee, as the case may be, at or at any time after the date of grant of the option), but not later than the date on which the option terminates; provided, however, that any option which is held by an employee whose employment is terminated for
cause or voluntarily without the consent of the Company (for purposes of the 2002 Plan termination due to retirement at or after age 65 shall be deemed to be with the consent of the Company)  shall, to the extent not theretofore exercised, automatically terminate as of the date of termination of employment.  As used herein, “cause” shall mean conduct amounting to fraud, dishonesty, negligence, or engaging in competition or solicitations in competition with the Company and breaches of any applicable employment agreement between the Company or any Subsidiary or Parent and the optionee.  Options granted to employees under the 2002 Plan shall not be affected by any change of duties or position so long as the holder continues to be a regular employee of the Company or any of its
current or future Subsidiaries.  Any option agreement or any rules and regulations relating to the 2002 Plan may contain such provisions as the Board of Directors or the Committee, as the case may be, shall approve with reference to the determination of the date employment terminates and the effect of leaves of absence. The Board of Directors, or Committee, as the case may be, shall, in its sole discretion, determine for purposes of the 2002 Plan whether the Company has consented to the departure of an employee who voluntarily leaves the employ of the Company.

     Notwithstanding the foregoing, the Board of Directors or Committee, as the case may be, either at or any time after the date of grant of an option, may, in its discretion, provide for longer or shorter periods than the ninety (90) day period specified above during which an option held by an employee may be exercised by the employee after the employee ceases to be employed by the Company or a Subsidiary or Parent. Any such determination shall be based upon such factors as the Board of Directors or the Committee, as the case may be, shall determine, provided, however, that no such discretion shall be exercised with respect to an employee whose employment with the Company or Subsidiary or Parent has been terminated for
cause.

11.      Death or Disability of Employee

     If an employee to whom an option has been granted under the 2002 Plan shall die while employed by the Company or a Subsidiary or Parent or within ninety (90) days (or such longer or shorter period as the Board of Directors, or the Committee, as the case may be, shall determine at or any time after the date of grant of the option) after the termination of such employment (other than termination for cause or voluntary termination without the consent of the Company), such option may be exercised, to the extent exercisable by the employee on the date of death, by a legatee or legatees of the employee under the employee's last will, or by the employee's personal representative or distributees, at any time within one year
after the date of the employee's death, but not later than the date on which the option terminates.  In the event that the employment of an employee to whom an option has been granted under the 2002 Plan shall be terminated as the result of a disability (the determination of which shall be made by the Board of Directors or Committee, as the case may be), such option may be exercised, to the extent exercisable by the employee on the date of such termination, at any time within one year after the date of such termination, but not later than the date on which the option terminates.

     Notwithstanding the foregoing, the Board of Directors, or Committee, as the case may be, either at or at any time after the date of grant of an option, may, in its discretion, provide for longer or shorter periods than the one year period specified above in which an option held by an employee who ceases to be employed by the Company as a result of death or disability may be exercised. Any such determination shall be based upon such factors as the Board or the Committee, as the case may be, shall determine, provided, however, that no such discretion shall be exercised with respect to an employee who dies after the employee's employment with the Company or Parent or Subsidiary has been terminated for cause.

12.      Adjustments Upon Changes in Capitalization, Etc.

     Notwithstanding any other provision of the 2002 Plan, the Board of Directors or the Committee, as the case may be, may, at any time, make or provide for such adjustments to the 2002 Plan, to the number and class of shares issuable thereunder or to any outstanding options as it shall deem appropriate to prevent dilution or enlargement of rights, including adjustments in the event of changes in the outstanding Common Stock by reason of stock dividends, split-ups, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, liquidations and the like.  In the event of any offer to holders of Common Stock generally relating to the acquisition of their shares, the Board of
Directors or the Committee, as the case may be, may make such adjustment as it deems equitable in respect of outstanding options and rights, including in its sole discretion revision of outstanding options and rights so that they may be exercisable for the consideration payable in the acquisition transaction.  Any such determination by the Board of Directors or the Committee, as the case may be, shall be conclusive and binding upon the Company and the participants in the 2002 Plan.  Any fractional shares resulting from such adjustments shall be eliminated.

 
 

13.      Effective Date

     The 2002 Plan shall become effective on April 25, 2002, the date of adoption by the Board of Directors of the Company, subject to approval by the stockholders of the Company on or before April 24, 2003.

14.      Termination and Amendment

     The Board of Directors of the Company may suspend, terminate, modify or amend the 2002 Plan, provided that any amendment that would increase the aggregate number of shares which may be issued under the 2002 Plan, materially modify the requirements as to eligibility for participation in the 2002 Plan or increase the benefits under the Plan, shall be subject to the approval of the Company's stockholders, except that any such increase or modification that may result from adjustments authorized by Paragraph 12 hereof does not require such approval.  No suspension, termination, modification or amendment of the 2002 Plan may, without the consent of the person to whom an option shall theretofore have been granted, adversely
affect the rights of such person under such option.

15.      Miscellaneous

     As said term is used in the 2002 Plan, the “Fair Market Value” of a share of Common Stock on any day means:  (a) if the principal market for the Common Stock is a national securities exchange or the National Association of Securities Dealers Automated Quotations System (“NASDAQ), the closing sales price of the Common Stock on such day as reported by such exchange or market system, or on a consolidated tape reflecting transactions on such exchange or market system, or (b) if the principal market for the Common Stock is not a national securities exchange and the Common Stock is not quoted on NASDAQ, the mean between the highest bid and lowest asked prices for the Common Stock on such day as reported by
the National Quotation Bureau, Inc.; provided that if clauses (a) and (b) of this paragraph are both inapplicable, or if no trades have been made or no quotes are available for such day, the Fair Market Value of the Common Stock shall be determined by the Board of Directors or the Committee, as the case may be, and shall be conclusive as to the Fair Market Value of the Common Stock.

     In the event the Company is the subject of an acquisition, merger or consolidation or similar transaction where the Company is not the surviving entity, the Board or Committee, as the case may be, may in its sole discretion, but shall not be required to, request that as a condition of the transaction the surviving entity assume the obligations of the Company with respect to the options then outstanding under the 2002 Plan.  

     The Board of Directors or the Committee, as the case may be, may require, as a condition to the exercise of any options granted under the 2002 Plan, that to the extent required at the time of exercise, (i) the shares of Common Stock reserved for purposes of the 2002 Plan shall be duly listed, upon official notice of issuance, upon stock exchange(s) on which the Common Stock is listed, (ii) a Registration Statement under the Securities Act of 1933, as amended, with respect to such shares shall be effective, and/or (iii) the person exercising such option deliver to the Company such documents, agreements and investment and other representations as the Board of Directors or the Committee, as the case may be, shall
determine to be in the best interests of the Company.

     During the term of the 2002 Plan, the Board of Directors or the Committee, as the case may be, in its sole discretion, may offer one or more option holders the opportunity to surrender any or all unexpired options for cancellation or replacement.  If any options are so surrendered, the Board of Directors or the Committee, as the case may be, may then grant new Non-Qualified or Incentive Options to such holders for the same or different numbers of shares at higher or the same exercise prices than the surrendered options.  Such new options may have a different term and shall be subject to the provisions of the 2002 Plan the same as any other option.

 
 

     Anything herein to the contrary notwithstanding, the Board of Directors or the Committee, as the case may be, may, in its sole discretion, impose more restrictive conditions on the exercise of an option granted pursuant to the 2002 Plan, including the ability of an option holder to exercise an option after cessation of employment; however, any and all such conditions shall be specified in the option agreement limiting and defining such option. The Board of Directors or the Committee, as the case may be, may also amend the terms of any option previously granted under the 2002 Plan, provided that the terms of any such amended option are not inconsistent with any provisions of the 2002 Plan and that no such amendment
shall adversely affect the rights of the person to whom the option has been granted without the consent of such person or, if applicable, the permitted transferee of such optionee or any person entitled to act under Paragraph 11 hereof. 

     Nothing in the 2002 Plan or in any option granted pursuant to the 2002 Plan shall confer upon any employee any right to continue in the employ of the Company or any of its Subsidiaries or parent or affiliated companies or interfere in any way with the right of the Company or any such Subsidiary or parent or affiliated companies to terminate such employment at any time.

16.      Compliance with SEC Regulations

     It is the Company's intent that the 2002 Plan comply in all respects with Rule 16b-3 of the Act or any successor rule and any regulations promulgated thereunder.  If any provision of the 2002 Plan is later found not to be in compliance with said Rule, the provisions shall be deemed null and void.<PAGE>

                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                               PURCHASE AGREEMENT

                                     BETWEEN

                     ALTERNATIVE CONSTRUCTION COMPANY, INC.
                             A FLORIDA CORPORATION,

                                       AND

                   ALTERNATIVE CONSTRUCTION TECHNOLOGIES CORP.
                             A TENNESSEE CORPORATION

                                     DATED:

                                DECEMBER 15, 2004

<PAGE>

                                TABLE OF CONTENTS

1.   Definitions...............................................................1

2.   Purchase and Sale of Business.............................................4

     2.1      Purchase and Sale................................................4
     2.2      Purchased Assets.................................................4
     2.3      Excluded Assets..................................................4
     2.4      Assumption of Certain Liabilities................................5
     2.5      Excluded Liabilities.............................................5

3.   Purchase Price and Payment................................................5

     3.1      Purchase Price...................................................5
     3.2      Tax and Accounting Consequences..................................6
     3.3      Price Reduction Upon Certain Events..............................6

4.   Pre-Closing Matters.......................................................6

     4.1      Operation of Purchased Assets....................................6
     4.2      Consents.........................................................7
     4.3      Notification of Certain Events...................................7
     4.4      Access to Information............................................8
     4.5      Public Announcements.............................................8

5.   Conditions to Closing.....................................................8

     5.1      Transferor's Conditions..........................................8
     5.2      Acquiror's Conditions............................................9

6.   Closing..................................................................10

     6.1      Time and Place of Closing.......................................10
     6.2      Closing Deliveries..............................................10
     6.3      Closing Cost....................................................11
     6.4      Possession......................................................11
     6.5      Bridge Loan.....................................................11

7.   Representations and Warranties...........................................11

     7.1      Transferor's Representations and Warranties.....................11
     7.2      Acquiror's Representations and Warranties.......................19

                                       i

<PAGE>

8.   Additional Covenants.....................................................20

     8.1      Covenants by Each Party.........................................20
     8.2      Indemnification.................................................20
     8.3      Retention of and Access to Books and Records....................21

9.   Termination..............................................................21

     9.1     Termination Events...............................................21
     9.2     Effect of Termination............................................21

10.  Default; Remedies........................................................21

     10.1     Time of Essence.................................................21
     10.2     Remedies........................................................21

11.  Survival of Representations and Warranties; Escrow.......................22

     11.1     Survival of Representations and Warranties......................22
     11.2     Stockholder Escrow Arrangements.................................22

12.  Escrow Agent's Duties....................................................26

13.  Limitation on Liability..................................................27

14.  Construction and Interpretation..........................................27

15.  Miscellaneous Provisions.................................................28

     15.1     Survival of Covenants...........................................28
     15.2     Expenses........................................................28
     15.3     Binding Effect..................................................28
     15.4     Assignment......................................................28
     15.5     Notices.........................................................28
     15.6     Waiver..........................................................29
     15.7     Amendment.......................................................29
     15.8     Severability....................................................29
     15.9     Integration.....................................................29
     15.10    Governing Law...................................................29
     15.11    Arbitration.....................................................30
     15.12    Execution.......................................................30
     15.13    Waiver of Conflicts.............................................30
     15.14    Incorporation of Recitals, Exhibits, and Schedules..............30
     15.15    Further Assurances..............................................30
     15.16    No Third Party Beneficiaries....................................30
     15.17    Bulk Sales......................................................30

                                       ii
<PAGE>

                               PURCHASE AGREEMENT

         THIS PURCHASE AGREEMENT (this "Agreement") is made and entered into
this 14th day of December with effect as of January 15, 2005 (the "Effective
Date") by and between Alternative Construction Technologies Corp., a Tennessee
corporation ("Transferor") and Alternative Construction Company, Inc., a Florida
corporation ("ACC" or "Acquiror").

                                    RECITALS

         A. Transferor is in the business of producing, marketing and
distributing proprietary wall panels for the construction industry (the
"Business").

         B. Transferor wishes to sell to Acquiror certain assets as described in
Section 2.2 associated with Transferor's Business and Acquiror wishes to
purchase such assets from Transferor, in each case on the terms and conditions
set forth in this Agreement (this term and all other capitalized terms used
herein having the respective meanings set forth in this Agreement).

                                   AGREEMENTS

         In consideration of the foregoing, the mutual covenants of the parties
set forth in this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, agree as follows:

         1. Definitions. As used in this Agreement, the following terms have the
respective meanings set forth below:

            "Agreement" shall mean this Purchase Agreement.

            "Acquiror" shall have the meaning set forth in the preamble to this
Agreement.

            "Acquiror's Knowledge" shall mean that any of the officers or
directors of Acquiror are actually aware of a particular fact or other matter.

            "Assumed Liabilities" shall have the meaning set forth in Section
2.4.

            "Best Efforts" shall mean the efforts that a prudent Person who
wishes to achieve a result would use in similar circumstances to achieve such
result as expeditiously as reasonably possible.

            "Bill of Sale" shall mean the document described in Section
6.2.1(a).

            "Books and Records" shall mean all books and records of Transferor
that are necessary to conduct the Business, the ownership, use, and operation of
the Purchased Assets, or the payment or performance of the Assumed Liabilities,
including any such records maintained on computer and all related computer
software.

                                       1
<PAGE>

            "Breach" shall mean any material inaccuracy in or material breach
of, or any material failure to perform or comply with, any representation,
warranty, covenant, obligation, or other provision of this Agreement or any
document delivered pursuant to this Agreement.

            "Business" shall have the meaning set forth in the Recitals.

            "Business Day" shall mean any day other than a Saturday, Sunday, or
other day on which commercial banks in Seattle, Washington are authorized or
required by applicable Legal Requirements to be closed.

            "Closing" shall mean the closing of this transaction, at which the
events set forth in Section 6.2 shall occur.

            "Closing Date" shall mean the date on which the Closing occurs.

            "Preferred Stock" shall have the meaning set forth in Section 3.1.

            "Consent" shall mean any approval, consent, ratification, waiver, or
other authorization, including any Governmental Authorization.

            "Contract" shall mean any agreement, contract, lease, obligation,
promise, or understanding, whether written or oral and whether express or
implied, that is legally binding.

            "Damages" shall have the meaning set forth in Section 8.2.

            "Effective Date" shall have the meaning set forth in the preamble to
this Agreement.

            "Excluded Assets" shall have the meaning set forth in Section 2.3.

            "Governmental Authority" shall mean any national, federal, state,
provincial, county, municipal, or local government, foreign or domestic, or the
government of any political subdivision of the any of the foregoing, or any
entity, authority, agency, ministry, or other similar body exercising executive,
legislative, judicial, regulatory, or administrative authority or functions of
or pertaining to the government, including any quasi-governmental entity
established to perform any such functions.

            "Governmental Authorization" shall mean any Consent, license,
permit, waiver, or other authorization issued, granted, given, or otherwise made
available by or under the authority of any Governmental Authority or pursuant to
any Legal Requirement.

            "Intellectual Property" shall mean (a) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent applications, and patent
disclosures, together with all reissuances, continuations,
continuations-in-part, revisions, extensions, and reexaminations thereof, (b)
all trademarks, service marks, trade dress, logos, trade names, and corporate
names, together with all translations, adaptation, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith, (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in
connection therewith, (d) all mask works and all applications, registrations,
and renewals in connection therewith, (e) all trade secrets and confidential
business information (including ideas, research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications, customer and supplier lists,
pricing and cost information, and business and marketing plans and proposals),
(f) all computer software (including data and related documentation) and (g) all
other proprietary rights.

                                       2
<PAGE>

            "Legal Requirement" shall mean any federal, state, local, municipal,
foreign, international, multinational, or other administrative Order,
constitution, law, ordinance, principle of common law, regulation, rule,
statute, or treaty.

            "Lien" shall mean a monetary encumbrance against a Purchased Asset.

            "Ordinary Course of Business" shall mean any action taken by a
Person if, and only if, such action is consistent with the past practices of
such Person and is taken in the ordinary course of the normal day-to-day
operations of such Person.

            "Organizational Documents" shall mean (i) the articles or
certificate of incorporation and the bylaws of a corporation, (ii) the
partnership agreement and any statement of partnership of a general partnership,
(iii) the limited partnership agreement and certificate of limited partnership
of a limited partnership, (iv) any charter, operating agreement, or similar
document adopted or filed in connection with the creation, formation, or
organization of a Person, and (v) any amendment to any of the foregoing.

            "Patents" shall mean those patents used in the Business and listed
on Exhibit A hereto.

            "Permitted Encumbrances" shall mean those encumbrances incurred in
the ordinary course of business or otherwise in existence as of the Closing
Date.

            "Person" shall mean an individual, partnership, corporation, limited
liability company, joint stock company, trust, unincorporated organization or
association, joint venture, or other organization, whether or not a legal
entity, or a Governmental Authority.

            "Possession Date" shall mean 12:01 a.m., on the day following the
Closing Date.

            "Proceeding" shall mean any action, arbitration, audit, hearing,
litigation, or suit (whether civil, criminal, administrative, investigative, or
informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Authority, arbitrator, or mediator.

            "Purchase Price" shall have the meaning set forth in Section 3.1.

            "Purchased Assets" shall have the meaning set forth in Section 2.2.

            "Release Agreement" shall mean the Agreement described in Section
8.1.1.

                                       3
<PAGE>

            "Representative" shall mean, with respect to a particular Person,
any director, officer, employee, agent, consultant, advisor, or other
representative of or to such Person, including such Person's attorneys,
accountants, and financial advisors.

            "Transferor" shall have the meaning set forth in the preamble to
this Agreement.

            "Transferor Shareholders" shall have the meaning set forth in
Section 3.2.

            "Transferor's Knowledge" shall mean that any of the officers or
directors of Transferor are actually aware of a particular fact or other matter.

            "Tax" shall mean any tax (including any income tax, capital gains
tax, value-added tax, sales tax, excise tax, property tax, gift tax, or estate
tax), levy, assessment, tariff, duty (including any customs duty), deficiency,
or other fee, and any related charge or amount (including any fine, penalty,
interest, or addition to tax), imposed, assessed, or collected by or under the
authority of any Governmental Authority or payable pursuant to any tax-sharing
agreement or other Contract relating to the sharing or payment of any such tax,
levy, assessment, tariff, duty, deficiency, or fee

         2. Purchase and Sale of Assets.

            2.1 Purchase and Sale. Transferor agrees to transfer and sell the
Business to Acquiror, and Acquiror agrees to acquire the Busines from
Transferor, in each case for the price and on the terms and conditions set forth
in this Agreement. Upon payment of the Purchase Price as described in Section 3
hereof and the satisfaction of the other terms of this Agreement, Transferor
shall sell, transfer, assign and deliver all assets constituting the Business to
Acquiror on the Closing Date free and clear of any and all liens, encumbrances,
security interests or obligations, except for Permitted Encumbrances.

            2.2 Purchased Assets. The assets to be sold by Transferor to
Acquiror pursuant to this Agreement (the "Purchased Assets") shall be all of
Transferor's assets used in and constituting the Business, with the exception of
the Excluded Assets described in Section 2.3.

            2.3 Excluded Assets. All assets of Transferor not specifically
included in the Purchased Assets (the "Excluded Assets") shall not be acquired
by Acquiror pursuant to this Agreement.

            2.4 Assumption of Certain Liabilities. Acquiror shall at Closing
assume certain liabilities of Transferor described on Exhibit B (the "Assumed
Liabilities"), but excluding any other liabilities of Transferor whatsoever.

            2.5 Excluded Liabilities. Acquiror shall not assume any of the
liabilities of Transferor not identified in Section 2.4 above. Without limiting
the generality of the foregoing, Acquiror shall not assume any liabilities:

                (a) attributable to any of the Excluded Assets;

                                       4
<PAGE>

                (b) liabilities for any income, gain, profit or similar Tax
            arising out of or resulting from the sale, conveyance, transfer,
            assignment and delivery of the Purchased Assets provided for in this
            Agreement;

                (c) all Taxes imposed on or with respect to the Business for all
            Pre-Closing Periods;

                (d) liabilities for any sales, exercise, transfer or other tax
            on or arising out of the sale, conveyance, transfer, assignment or
            delivery of the Purchased Assets;

                (e) liabilities and obligations pursuant to any agreements
            relating to the employment of any individual in connection with
            Transferor's business, including, but not limited to liabilities for
            any option, warrant, bonus, performance, golden parachute,
            consulting, or similar liability;

                (f) liabilities and obligations (whether fixed or contingent)
            with respect to the Employee Benefit Plans; and

                (g) all liabilities and obligations arising out of the Excluded
            Assets.

                (h) liability for any contract not assigned to Acquiror;

                (i) liability for any employee or stockholder loan;

                (j) liability for any pending lawsuits, including those listed
            on Schedule 7.1.15; and

                (k) liability for Transferor's costs, fees, and expenses of this
            transaction.

         3. Purchase Price and Payment.

            3.1 Purchase Price. In consideration of (i) the sale, transfer and
conveyance to Acquiror of the Business, Acquiror shall, at the Closing, transfer
to Transferor Five Hundred Thousand Dollars ($500,000.00) and Seven Hundred
Fifty Thousand (750,000) shares of ACC Series B Preferred Stock (the "Preferred
Stock") to be issued by Acquiror (the "Shares") and as more fully described on
Exhibit E hereto. The number of Shares to be transferred to Transferor shall be
appropriately adjusted to reflect the effect of any stock split, reverse split,
stock dividend, reorganization, recapitalization or other like change with
respect to Transferor's Preferred Stock occurring after the Effective Date and
prior to Closing, so as to provide Transferor the same economic effect as
contemplated by this Agreement prior to such stock split, reverse split, stock
dividend, reorganization, recapitalization, or like change. The consideration
described in this Section 3.1 is herein referred to as the "Purchase Price."

            3.2 Tax and Accounting Consequences. As a result of the transfer of
the Shares to Transferor, in accordance with the terms and conditions set forth
in this Agreement, there may be certain Tax and accounting consequences to the
shareholders of the Transferor (the "Transferor Shareholders"), who will be the
ultimate recipients of the Shares.

                                       5
<PAGE>

ACQUIROR MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, NOR ARE ANY
INTENDED OR SHOULD ANY BE INFERRED, REGARDING THE ECONOMIC RETURN OR THE TAX
CONSEQUENCES TO THE TRANSFEROR SHAREHOLDERS WHO WILL ACQUIRE THE SHARES.
ACQUIROR, THEREFORE, RECOMMENDS THAT THE TRANSFEROR SHAREHOLDERS CONSULT THEIR
OWN ATTORNEYS, ACCOUNTANTS AND FINANCIAL ADVISORS ABOUT THE LEGAL AND TAX
CONSEQUENCES AND THE FINANCIAL RISKS AND MERITS OF RECEIVING THE SHARES.

            3.3 Price Reduction Upon Certain Events. In the event of any damage,
loss, destruction or condemnation of any of the assets constituting the Business
(excluding damage or destruction caused by Acquiror or any of its affiliates),
or any taking of any of the assets constituting the Business by eminent domain,
between the Effective Date and the Closing Date, Acquiror shall have the right,
by notice given to Transferor within ten (10) days of such event (but in any
case prior to the Closing Date), to terminate this Agreement. If Acquiror does
not elect to terminate this Agreement, the Purchase Price shall be reduced by an
amount equal to the resulting reduction in the value of the Purchased Assets,
which shall be attributed to the Transferor whose respective Purchased Assets
were so damaged, lost, destroyed or condemned. Transferor shall be entitled to
retain any insurance proceeds or condemnation awards paid or payable on account
of such damage or destruction or such taking. Transferor and Acquiror agree to
negotiate in good faith regarding the reduction in value resulting from any
damage to or destruction or condemnation of the Purchased Assets.

         4. Pre-Closing Matters.

            4.1 Operation of Business. Between the Effective Date and the
Closing Date, Transferor shall:

                4.1.1 Continue to conduct the Business and operate and maintain
the assets used in the Business in the Ordinary Course of Business;

                4.1.2 Not sell, lease, or otherwise transfer or dispose of any
assets used in the Business, or any interest therein, other than transfers and
dispositions made in the Ordinary Course of Business or transfers and
dispositions otherwise authorized by its President;

                4.1.3 Not permit or allow any assets used in thee Business to
become subject to any additional Lien (other than Permitted Encumbrances);

                4.1.4 Maintain the levels of Inventories and supplies in the
Business at customary levels; and

                4.1.5 Use its Best Efforts to maintain the relations and
goodwill with suppliers, customers, and others having business relationships
with Transferor in connection with the Business.

                                       6
<PAGE>

            4.2 Consents.

                4.2.1 Acquiror and Transferor shall use their respective Best
Efforts, each at its own expense, to obtain all such Consents as soon as
practicable after the Effective Date required to transfer to Business to
Acquiror. In the event any such Consent is not obtained by the Closing Date,
Transferor agrees to continue to use its Best Efforts thereafter, in cooperation
with Acquiror, to obtain such Consent as soon as practicable.

                4.2.2 Acquiror shall provide all cooperation reasonably
requested by Transferor in connection with obtaining the Consents, including the
provision of any information relating to Acquiror that may be requested by the
Person from whom any such Consent is required.

            4.3 Notification of Certain Events.

                4.3.1 By Transferor. Between the Effective Date and the Closing
Date, Transferor shall give prompt notice to Acquiror in the event Transferor
becomes aware of (i) any fact or condition that causes or constitutes a Breach
of any representation or warranty of Transferor set forth herein as of the
Effective Date, (ii) any fact or condition that would cause or constitute a
Breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition, (iii) the occurrence of any Breach of any covenant of Transferor in
this Agreement, or (iv) the occurrence of any event that Transferor believes
will make the satisfaction of any of the conditions set forth in Section 5
impossible or unlikely. In the event that any fact or condition of the type
described in the foregoing clause (i) or (ii) would have required any change in
any of the Schedules or Exhibits to this Agreement if such fact or condition had
occurred or been known as of the Effective Date, Transferor shall promptly
deliver to Acquiror a supplement to such Schedule or Exhibit specifying the
necessary change.

                4.3.2 By Acquiror. Between the Effective Date and the Closing
Date, Acquiror shall give prompt notice to Transferor in the event Acquiror
becomes aware of (i) any fact or condition that causes or constitutes a Breach
of any representation or warranty of Acquiror set forth herein as of the
Effective Date, (ii) any fact or condition that would cause or constitute a
Breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition, (iii) the occurrence of any Breach of any covenant of Acquiror in
this Agreement, or (iv) the occurrence of any event that Acquiror believes will
make the satisfaction of any of the conditions set forth in Section 5 impossible
or unlikely. In the event that any fact or condition of the type described in
the foregoing clause (i) or (ii) would have required any change in any of the
Schedules or Exhibits to this Agreement if such fact or condition had occurred
or been known as of the Effective Date, Acquiror shall promptly deliver to
Transferor a supplement to such Schedule or Exhibit specifying the necessary
change.

                4.3.3 No Effect on Remedies. The delivery of a notice or
supplement pursuant to Sections 4.3.1 and 4.3.2 shall have no effect on the
remedies of any party hereunder.

                                       7
<PAGE>

            4.4 Access to Information. Between the Effective Date and the
Closing Date, Transferor shall, upon reasonable notice from Acquiror, (i) give
Acquiror and its representatives access (during normal business hours), in a
manner so as not to interfere with Transferor's normal operations and subject to
reasonable restrictions imposed by any such representative, to all key employees
employed in the Business and to all the Books and Records relating thereto, and
(ii) cause its representatives to make available to Acquiror for the purpose of
making copies thereof such financial and operating data and other information
with respect to the Business as Acquiror may reasonably request.

            4.5 Public Announcements. Except as otherwise required by applicable
Legal Requirements, any public announcement or similar publicity with respect to
this Agreement or this transaction shall be issued, if at all, only with such
contents, at such time and in such manner as the parties may agree. If a party
believes that it is required by applicable Legal Requirements to make any such
public announcement, it shall first provide to the other party the content of
the proposed announcement, the reasons such announcement is required to be made,
and the time and place that the announcement will be made.

         5. Conditions to Closing.

            5.1 Transferor's Conditions. Transferor's obligation to close this
transaction shall be subject to and contingent upon the satisfaction (or waiver
by Transferor in writing in its sole discretion) of each of the following
conditions:

                5.1.1 All representations and warranties of Acquiror set forth
in this Agreement and each such representation and warranty shall have been
accurate in all respects as of the Effective Date and shall be accurate in all
respects as of the Closing Date, as if made on the Closing Date.

                5.1.2 (i) All of the covenants and obligations that Acquiror is
obligated to perform or comply with pursuant to this Agreement prior to or at
the Closing and each such covenant and obligation (considered individually)
shall have been performed and complied with in all respects; and (ii) Acquiror
shall have made the deliveries of documents required to be made pursuant to
Section 6.2.2; provided, however, that with respect to the covenants and
obligations described in this Section 5.1.2, a failure of the foregoing
condition shall not be deemed to have occurred unless (a) Transferor has given
Acquiror notice specifying the nature of any Breach of such covenants or
obligations in reasonable detail, and (b) either (y) Acquiror has failed to cure
such Breach within ten (10) business days after such notice is given, or (z) if
such Breach cannot be cured solely by the payment of money and cannot reasonably
be cured within ten (10) business days despite the exercise of Best Efforts,
Acquiror has failed to commence curative action within ten (10) Business Days
after such notice is given or thereafter fails to complete the cure of such
Breach as soon as practicable.

            5.2 Acquiror's Conditions. Acquiror's obligation to close this
transaction shall be subject to and contingent upon the satisfaction (or waiver
by Acquiror in its sole discretion) of each of the following conditions:

                                       8
<PAGE>

                5.2.1 All representations and warranties of Transferor set forth
in this Agreement shall have been accurate as of the Effective Date and shall be
accurate as of the Closing Date, as if made on the Closing Date.

                5.2.2 All of the covenants and obligations that Transferor are
obligated to perform or comply with pursuant to this Agreement prior to or at
the Closing shall have been performed and complied with; and (ii) Transferor
shall have made the deliveries of documents required to be made pursuant to
Section 6.2.1.

                5.2.3 To the extent, if any, that Acquiror is required to obtain
any Governmental Authorizations that relate to the Business or the ownership,
use, and operation of the assets used in the Business, Acquiror shall have
obtained such Governmental Authorizations and such Governmental Authorizations
shall be in full force and effect as of the Closing Date or subject to issuance
to Acquiror upon consummation of this transaction.

                5.2.4 As of the Closing Date, there shall not be in effect any
legal requirement or any injunction or other order that prohibits the transfer
of any portion of the Purchased Assets by Transferor to Acquiror.

                5.2.5 Between the Effective Date and the Closing Date, there
shall have been no damage to or destruction of any of the assets used in the
Business (excluding damage or destruction (i) caused by Acquiror or any of its
affiliates; or (ii) that does not have a material adverse effect on the
Businesses), nor any taking of any material portion of the assets used in the
Business by eminent domain.

                5.2.6 Since the Effective Date, there shall not have been
commenced or threatened against Acquiror or Transferor or any related person of
Acquiror or Transferor any proceeding (i) seeking damages or other relief in
connection with, any aspect of this transaction, or (ii) that could reasonably
be expected to have the effect of preventing this transaction or making this
transaction illegal.

                5.2.7 Transferor shall have executed a Release Agreement, on
terms and conditions acceptable to Acquiror.

                5.2.8 Transferor shall have executed all documents necessary to
transfer and assign any of the Transferor's Intellectual Property which is being
transferred pursuant to this Agreement.

                5.2.9 The Shareholders of Transferor shall have approved the
transaction.

                5.2.10 The Closing of the Acquisition by Acquiror of Quality
Metal Systems, LLC ("QMC") and the transfer of the patents to Acquiror shall
have occurred simultaneously with the Closing of this transaction.

                                       9
<PAGE>

         6. Closing.

            6.1 Time and Place of Closing. The Closing shall take place at the
offices of QMC or at such other location as the parties may mutually agree.
Subject to the provisions of Section 7, the Closing shall take place commencing
at 2:00 p.m. (Eastern Standard Time) on January 15, 2005, unless Transferor, in
its sole discretion, determines that shareholder approval of the transactions
contemplated by this Agreement is necessary or desirable, in which case Closing
shall take place on January 15, 2005 or, in either case, on such other date as
is mutually acceptable to the parties.

            6.2 Closing Deliveries.

                6.2.1 At the Closing, Transferor shall deliver, or cause to be
delivered, to Acquiror:

                (a) A fully executed Bill of Sale and Assignment and Assumption
            in the form of Exhibit C to this Agreement (the "Bill of Sale")
            conveying to Acquiror all personal property to be acquired by
            Acquiror pursuant to this Agreement and providing for (i) the
            assignment to Acquiror of the contract rights, and all other
            intangible personal property included in the assets used in the
            Business and (ii) Acquiror's assumption of the Assumed Liabilities;

                (b) A Certificate of an officer of Transferor (i) certifying to
            the attached resolutions of the board of directors and shareholders,
            if the board of directors deems it necessary, of Transferor
            authorizing this transaction, and (ii) attesting to the incumbency
            of the authorized officers of Transferor executing this Agreement
            and the Transferor's closing documents;

                (c) A duly authorized and executed Release Agreement required by
            Section 8.1.1;

                (d) A Certificate of an authorized officer of the Transferor
            certifying as to the accuracy of the Transferor's representations
            and warranties under Section 7.1;

                (e) All Consents necessary to permit Transferor to transfer the
            Purchased Assets to Acquiror; and

                (f) All necessary documents to transfer and assign any
            Intellectual Property which is being transferred pursuant to this
            Agreement; and

                (g) all of the books and records of Transferor.

                6.2.2 At the Closing, Acquiror shall deliver, or cause to be
delivered, to Transferor:

                (a) A counterpart copy of the Bill of Sale, executed by
            Acquiror;

                                       10
<PAGE>

                (b) A Certificate of an authorized officer of Acquiror (i)
            certifying attached resolutions of the boards of directors and
            shareholders of Acquiror authorizing this transaction, and (ii)
            attesting to the incumbency of the authorized officer of Acquiror
            executing this Agreement and the Acquiror's closing documents;

                (c) A duly authorized and executed Release Agreement as required
            by Section 8.1.1;

                (d) A Certificate of an authorized officer of the Acquiror
            certifying as to the accuracy of the Acquiror's representations and
            warranties under Section 7.2;

                (e) A Certificate of an authorized officer of the Acquiror
            certifying the number of shares that Transferor shall be entitled to
            in accordance with the terms and conditions of this Agreement; and

                (f) A counterpart copy of necessary documents to transfer and
            assign any Intellectual Property which is being transferred pursuant
            to this Agreement.

            6.3 Closing Costs. Transferor and Acquiror shall each pay one-half
(1/2) of the following costs associated with the Closing: (i) recording fees
with respect to the assignment of any Intellectual Property and (ii) all sales
and excise taxes due in connection with this transaction.

            6.4 Possession. Acquiror shall be entitled to possession of the
Purchased Assets on the Possession Date as that term is defined in Section 1.

         7. Representations and Warranties.

            7.1 Transferor's Representations and Warranties. Transferor
represents and warrants to Acquiror as follows:

                7.1.1 Organization and Good Standing. Transferor is a
corporation, duly formed, validly existing and in good standing under the laws
of the State of Tennessee. Transferor has the corporate power to own its
properties and to carry on its business as now being conducted. Transferor is
duly qualified to do business and is in good standing as a foreign corporation
in each jurisdiction in which the failure to be so qualified would have a
material adverse effect on the business, assets (including intangible assets),
prospects, financial condition or results of operations of Transferor
(hereinafter referred to as a "MATERIAL ADVERSE EFFECT"). Transferor has
delivered a true and correct copy of its Articles of Incorporation and By-laws,
each as amended to date, to Acquiror.

                7.1.2 Title to Assets. Transferor has good and marketable title
to the assets used in the Business, free and clear of all mortgages, pledges,
liens, encumbrances, security interests, equities, charges and restrictions of
any nature whatsoever, except such Permitted Encumbrances, as that term is
defined in Section 1. By virtue of the deliveries made at the Closing, Acquiror
will obtain good and marketable title to the Purchased Assets, free and clear of
all liens, mortgages, pledges, encumbrances, security interests, equities,
charges and restrictions of any nature whatsoever, except any Permitted
Encumbrances.

                                       11
<PAGE>

                7.1.3 Authority; No Conflict.

                (a) This Agreement constitutes the legal, valid, and binding
            obligation of Transferor, enforceable against Transferor in
            accordance with its terms. Upon its execution and delivery by
            Transferor at the Closing, the Transferor's closing documents will
            constitute the legal, valid, and binding obligations of Transferor,
            enforceable against Transferor in accordance with its respective
            terms. Transferor has full corporate power, authority, and capacity
            to execute and deliver this Agreement and Transferor's closing
            documents and to perform its obligations hereunder and thereunder.
            Without limiting the generality of the foregoing, the Boards of
            Directors, and shareholders, if the Boards of Directors deems it
            necessary, of Transferor has approved this Agreement and the
            transactions contemplated hereby.

                (b) Neither the execution and delivery of this Agreement, nor
            the performance of any of Transferor's obligations hereunder, nor
            the consummation of the transactions contemplated by this Agreement
            will, directly or indirectly (with or without notice, lapse of time,
            or both), (i) contravene, conflict with or result in a violation of
            any provision of Transferor's Organizational Documents or any
            resolution adopted by the Boards of Directors or shareholders of
            Transferor; (ii) contravene, conflict with, or result in a violation
            of, or give any Governmental Authority or other person the right to
            challenge this transaction or to exercise any remedy or obtain any
            relief under, any legal requirement or any order to which Transferor
            or any of the assets used in the Business is subject; (iii)
            contravene, conflict with, or result in a violation of any of the
            terms or requirements of any governmental authorization; (iv)
            contravene, conflict with, or result in a violation or breach of any
            provision of, or give any person the right to declare a default or
            exercise any remedy under, or to accelerate the maturity or
            performance of, or to cancel, terminate, or modify, any Contract; or
            (v) result in the imposition or creation of any lien upon or with
            respect to any of the assets used in the Business; except, in the
            case of clauses (i), (ii) and (iii) above, for contraventions,
            conflicts or violations which do not have a material adverse effect
            on the ability of Transferor

                (c) to consummate the transactions contemplated hereby.

                (d) Transferor represents and warrants that it is not and will
            not be required to give any notice to, make any filing with, or
            obtain any material Consent from any person in connection with the
            execution and delivery of this Agreement, the performance of its
            obligations hereunder, or the consummation of this transaction,
            other than the Consents described on Schedule 4.2.1. except, for
            Consents, the failure of which to obtain would not have a material
            adverse effect on the ability of the Transferor to consummate the
            transactions contemplated hereby.

                                       12
<PAGE>

                7.1.4 Books and Records. The Books and Records are complete and
correct in all material respects and have been maintained in accordance with
sound business practices.

                7.1.5 Possession of Assets. The assets used in the Business are
assets of the Transferor as of the Effective Date and are in Transferor's
possession as of the Effective Date, and that Transferor has all requisite title
or license to convey the Purchased Assets to Acquiror as contemplated by the
Agreement.

                7.1.6 No Material Adverse Changes. There have been no material
adverse changes to the Business, operations or financial condition other than as
disclosed to Acquiror.

                7.1.7 Certain Proceedings. No proceeding is pending or, to
Transferor's Knowledge, has been threatened against Transferor that challenges,
or could reasonably be expected to have the effect of preventing, making
illegal, or otherwise materially interfering with, this transaction.

                7.1.8 Transferor Financial Statements. (a) Transferor has
heretofore furnished Acquiror with financial statements in respect of the
Business for the fiscal years ending June 30, 2004, 2003, and 2002 (the
"Financial Statements"), (b) The Financial Statements were prepared in
accordance with generally accepted accounting terms as utilized in the United
States, consistently applied, and accurately present the financial condition of
the Transferor for the periods presented.

                7.1.9 To the Knowledge of Transferor, since June 30, 2004, (i)
there has been no material adverse change in the Condition of the Business, (ii)
the Business has, in all material respects, been conducted in the ordinary
course of business consistent with past practice, (iii) there has not been any
material obligation or liability (contingent or otherwise) incurred by
Transferor with respect to the Business other than obligations and liabilities
incurred in the ordinary course of business, (iv) there has not been any
purchase, sale or other disposition, or any agreement or other arrangement, oral
or written, for the purchase, sale or other disposition, of any properties or
assets having a value in excess of $5,000 in any case other than in the ordinary
course of business, and (v) none of the assets of Transferor have been used to
reduce liabilities which are not being assumed by Acquiror.

                7.1.10 No Undisclosed Liabilities. Except as set forth on the
Balance Sheet, included in the Financial Statements, Transferor does not have
any liability, indebtedness, obligation, expense, claim, deficiency, guaranty or
endorsement of any type, in excess of $5,000 individually or $10,000 in the
aggregate, whether accrued, absolute, contingent, matured, unmatured or other
(whether or not required to be reflected in financial statements in accordance
with generally accepted accounting principles).

                7.1.11 Tax and Other Returns and Reports.

                (a) Definition of Taxes. For the purposes of this Agreement,
            "TAX" or, collectively, "TAXES," shall have the meaning set forth in
            Article 1 hereof.

                                       13
<PAGE>

                (b) Tax Returns And Audits. Except as set forth in

         Schedule 7.1.11:

                (i) Transferor as of the Closing Date will have prepared and
            filed all required federal, state, local and foreign returns,
            estimates, information statements and reports ("RETURNS") relating
            to any and all Taxes concerning or attributable to Transferor, its
            operations and the Business and such Returns will be true and
            correct in all material respects and will have been completed in
            accordance with applicable law in all material respects.

                (ii) Transferor as of the Closing Date: (A) will have paid or
            accrued all material Taxes it is required to pay or accrue and (B)
            will have withheld with respect to its employees all federal and
            state income taxes, FICA, FUTA and other Taxes required to be
            withheld.

                (iii) Transferor has not been adjudicated delinquent by any Tax
            Authority in the payment of any Tax nor is there any Tax deficiency
            outstanding, proposed or assessed against Transferor, nor has
            Transferor executed any waiver of any statute of limitations on or
            extending the period for the assessment or collection of any Tax.

                (iv) No audit or other examination of any Return of Transferor
            is presently in progress, nor has Transferor been notified of any
            request for such an audit or other examination.

                (v) Transferor does not have any material liabilities for unpaid
            federal, state, local and foreign Taxes which have not been accrued
            or reserved against on the current Balance Sheet, whether asserted
            or unasserted, contingent or otherwise, and Transferor has no
            knowledge of any basis for the assertion of any such liability
            attributable to Transferor, its assets or operations.

                (vi) Transferor has provided to Acquiror copies of all federal
            and state income and all state sales and use Tax Returns filed for
            fiscal years 2001, 2002, 2003 and 2004.

                (vii) There are (and as of immediately following the Closing
            there will be) no liens, pledges, charges, claims, security
            interests or other encumbrances of any sort ("LIENS") on the assets
            of Transferor relating to or attributable to Taxes.

                (viii) Transferor has no knowledge of any basis for the
            assertion of any claim relating or attributable to Taxes, which if
            adversely determined, would result in any Lien on the assets of
            Transferor.

                (ix) None of Transferor's assets are treated as "tax- exempt use
            property" within the meaning of Section 168(h) of the Code.

                                       14
<PAGE>

                (x) As of the Closing Date, Transferor will not be a party to
            any contract, agreement, plan or arrangement, including but not
            limited to the provisions of this Agreement, covering any employee
            or former employee of Transferor that could obligate Transferor to
            pay any amount that would not be deductible pursuant to Section 280G
            of the Code.

                (xi) Transferor has not filed any consent agreement under
            Section 341(f) of the Code nor agreed to have Section 341 (f)(2) of
            the Code apply to any disposition of a subsection (f) asset (as
            defined in Section 341(f)(4) of the Code) owned by Transferor.

                (xii) Transferor is not a party to a tax sharing or allocation
            agreement nor does Transferor owe any amount under any such
            agreement.

                (xiii) Transferor is not, and has not been at any time, a
            "United States real property holding corporation" within the meaning
            of Section 897(c)(2) of the Code.

                (xiv) Transferor's tax basis in its assets for purposes of
            determining its future amortization, depreciation and other federal
            income tax deductions is accurately reflected on Transferor's tax
            books and records in all material respects.

                7.1.12 Agreements, Contracts And Commitments. Except as set
forth on Schedule 7.1.12, Transferor does not have, is not a party to nor is it
bound by:

                (i) any collective bargaining agreements,

                (ii) any agreements or arrangements that contain any severance
            pay or post-employment liabilities or obligations,

                (iii) any bonus, deferred compensation, pension, profit sharing
            or retirement plans, or any other employee benefit plans or
            arrangements,

                (iv) any employment or consulting agreement, contract or
            commitment with an employee or individual consultant or salesperson
            or consulting or sales agreement, contract or commitment with a firm
            or other organization,

                (v) any agreement or plan, including, without limitation, any
            stock option plan, stock appreciation rights plan or stock purchase
            plan, any of the benefits of which will be increased, or the vesting
            of benefits of which will be accelerated, by the occurrence of any
            of the transactions contemplated by this Agreement or the value of
            any of the benefits of which will be calculated on the basis of any
            of the transactions contemplated by this Agreement,

                (vi) any fidelity or surety bond or completion bond,

                                       15
<PAGE>

                (vii) any lease of personal property having a value individually
            in excess of $5,000,

                (viii) any agreement of indemnification or guaranty,

                (ix) any agreement, contract or commitment containing any
            covenant limiting the freedom of Transferor to engage in any line of
            business or to compete with any person,

                (x) any agreement, contract or commitment relating to capital
            expenditures and involving future payments in excess of $5,000,

                (xi) any agreement, contract or commitment relating to the
            disposition or acquisition of material assets or any interest in any
            business enterprise outside the ordinary course of the Business,

                (xii) any mortgages, indentures, loans or credit agreements,
            security agreements or other agreements or instruments relating to
            the borrowing of money or extension of credit, including guaranties
            referred to in clause (viii) hereof,

                (xiii) any purchase order or contract for the purchase of raw
            materials involving $10,000 or more other than purchases in the
            ordinary course of business,

                (xiv) any construction contracts,

                (xv) any distribution, joint marketing or development agreement,
            or

                (xvi) any other agreement, contract or commitment that involves
            $5,000 or more and is not cancelable without penalty within thirty
            (30) days.

                (xvii) Except for such alleged breaches, violations and
            defaults, and events that would constitute a breach, violation or
            default with the lapse of time, giving of notice, or both, all as
            noted in Schedule 7.1.12, Transferor has not breached, violated or
            defaulted under, or received notice that it has breached, violated
            or defaulted under, any of the terms or conditions of any agreement,
            contract or commitment to which it is a party or by which it is
            bound and which are required to be set forth in Schedule 7.1.12 (any
            such agreement, contract or commitment, a "CONTRACT") except for
            breaches, violations or defaults that will not have a Material
            Adverse Effect. Each agreement, contract or commitment set forth in
            any of Transferor Schedules is in full force and effect and, except
            as otherwise disclosed in Schedule 3.12(b), is not subject to any
            default thereunder of which Transferor has knowledge by any party
            obligated to Transferor pursuant thereto.

                7.1.13 Interested Party Transactions. Except as set forth on
Schedule 7.1.13, to the knowledge of Transferor, no director, officer or
stockholder of Transferor (nor to the knowledge of Transferor any ancestor,
sibling, descendant or spouse of any of such persons, or any trust, partnership
or corporation in which any of such persons has an interest), has, directly or
indirectly, (i) a direct interest in any entity which finished or sold, or
finishes or sells, services or products that Transferor finishes or sells, or
proposes to finish or sell, or (ii) a direct interest in any entity that
purchases from or sells or finishes to, Transferor, any goods or services or
(iii) a beneficial interest in any contract or agreement set forth in Schedule
7.1.15; PROVIDED, that ownership of no more than one percent (1%) of the
outstanding voting stock of a publicly traded corporation shall not be deemed an
"interest in any entity" for purposes of this Section 3.13.

                                       16
<PAGE>

                7.1.14 Governmental Authorization. Schedule 3.14 accurately
lists each material consent, license, permit, grant or other authorization
issued to Transferor by a governmental entity (i) pursuant to which Transferor
currently operates or holds any interest in any of its properties or (ii) which
is required for the operation of its business or the holding of any such
interest (herein collectively called "TRANSFEROR AUTHORIZATIONS"), which
Transferor Authorizations are in full force and effect and constitute all
Transferor Authorizations required to permit Transferor to operate or conduct
its business substantially as it is currently and has been conducted or hold any
interest in its properties or assets.

                7.1.15 Litigation. Except as set forth in Schedule 7.1.15, there
is no action, suit, claim or proceeding of any nature pending or, to the
knowledge of Transferor, threatened against Transferor, its properties or any of
its officers or directors in their capacity as such, nor, to the knowledge of
Transferor, is there any basis therefore. Except as set forth in Schedule
7.1.15, there is no investigation pending or to the knowledge of Transferor,
threatened against Transferor, its properties or any of its officers or
directors (nor, to the Knowledge of Transferor, is there any basis therefore) by
or before any governmental entity. Schedule 7.1.15 sets forth, with respect to
any pending or threatened action, suit, proceeding or investigation, the forum,
the parties thereto, the subject matter thereof and the amount of damages
claimed or other remedy requested. Except as set forth in Schedule 7.1.15, no
governmental entity has at any time challenged or questioned the legal right of
Transferor to manufacture, offer or sell any of its products in the present
manner or style thereof. Neither Transferor nor any of the Purchased Assets is
subject to any material order, writ, injunction, judgment or decree of any court
or other governmental agency or authority.

                7.1.16 Accounts Receivable. There are no Accounts Receivable
except as shown on the Financial Statements.

                7.1.17 Minute Books. The minutes of corporate proceedings and
consents of Transferor and Subsidiary made available to counsel for Acquiror are
the only minute books of Transferor and Subsidiaries and contain a reasonably
accurate summary of the meetings of directors (or committees thereof) referred
to therein.

                7.1.18 Environmental Matters.

                (a) Hazardous Material. No underground storage tanks and no
            amount of any substance that has been designated by any Governmental
            Entity or by applicable federal, state or local law to be
            radioactive, toxic, hazardous or otherwise a danger to health or the
            environment, including, without limitation, PCBs, asbestos,
            petroleum, urea-formaldehyde and all substances listed as hazardous
            substances pursuant to the Comprehensive Environmental Response,
            Compensation, and Liability Act of 1980, as amended, or defined as a
            hazardous waste pursuant to the United States Resource Conservation
            and Recovery Act of 1976, as amended, and the regulations
            promulgated pursuant to said laws, (a "HAZARDOUS MATERIAL"), but
            excluding office and janitorial supplies or similar items, are
            present in any material quantities, as a result of the deliberate
            actions of Transferor, or, to Transferor's knowledge, as a result of
            any actions of any third party or otherwise, in, on or under any
            property, including the land and the improvements, ground water and
            surface water thereof, that Transferor has at any time owned,
            operated, occupied or leased, except for such presence as will not
            have a Material Adverse Effect.

                                       17
<PAGE>

                (b) Hazardous Materials Activities. Transferor has not
            transported, stored, used, manufactured, disposed of, released or
            exposed its employees or others to Hazardous Materials in violation
            of any law in effect on or before the Closing Date, nor has
            Transferor disposed of, transported, sold, or manufactured any
            product containing a Hazardous Material (collectively "HAZARDOUS
            MATERIALS ACTIVITIES") in violation of any rule, regulation, treaty
            or statute promulgated by any Governmental Entity in effect prior to
            or as of the date hereof to prohibit, regulate or control Hazardous
            Materials or any Hazardous Material Activity, except for such
            Hazardous Material Activity as would not have a Material Adverse
            Effect.

                (c) Permits. Transferor currently holds all environmental
            approvals, permits, licenses, clearances and consents (the
            "ENVIRONMENTAL PERMITS") necessary for the conduct of Transferor's
            Hazardous Material Activities and other businesses of Transferor as
            such activities and businesses are currently being conducted.

                (d) Environmental Liabilities. No material action, proceeding,
            revocation proceeding, amendment procedure, writ, injunction or
            claim is pending, or to Transferor's knowledge, threatened
            concerning any Environmental Permit, Hazardous Material or any
            Hazardous Materials Activity of Transferor. Transferor is not aware
            of any fact or circumstance which could involve Transferor in any
            material environmental litigation or impose upon Transferor any
            material environmental liability.

                (e) Capital Expenditures. Transferor is not aware of any
            material capital expenditures which are required in order for it to
            comply with Environmental Laws.

            7.2 Acquiror's Representations and Warranties. Acquiror represents
and warrants to Transferor as follows:

                7.2.1 Organization and Good Standing. Acquiror is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Florida.

                                       18
<PAGE>

                7.2.2 Authority; No Conflict.

                ( ) This Agreement constitutes the legal, valid, and binding
            obligation of Acquiror, enforceable against Acquiror in accordance
            with its terms. Upon their execution and delivery by Acquiror at the
            Closing, the Acquiror's closing documents will constitute the legal,
            valid, and binding obligations of Acquiror, enforceable against
            Acquiror in accordance with their respective terms. Acquiror has
            full corporate power, authority, and capacity to execute and deliver
            this Agreement and the Acquiror's closing documents and to perform
            its obligations hereunder and thereunder. Without limiting the
            generality of the foregoing, the Board of Directors of the Acquiror
            has approved this Agreement and the transactions contemplated
            hereby.

                (a) Neither the execution and delivery of this Agreement, nor
            the performance of any of Acquiror's obligations hereunder, nor the
            consummation of this transaction will, directly or indirectly (with
            or without notice, lapse of time, or both), (i) contravene, conflict
            with, or result in a violation of any provision of Acquiror's
            Organizational Documents or any resolution adopted by the Board of
            Directors or the shareholders of Acquiror; or (ii) give any Person
            the right to prevent or otherwise interfere with this transaction
            pursuant to any legal requirement or order to which Acquiror is
            subject or any Contract to which Acquiror is a party or by which it
            or any of its assets is bound.

                7.2.3 Certain Proceedings. No proceeding is pending or, to
Acquiror's Knowledge, has been threatened against Acquiror that challenges, or
could reasonably be expected to have the effect of preventing, making illegal,
or otherwise materially interfering with, this transaction.

                7.2.4 Title to Shares. The Shares are duly authorized and, when
issued, upon the consummation of the transactions set forth herein, Transferor
will own the Shares free and clear of all liens and encumbrances whatsoever.

         8. Additional Covenants.

            8.1 Covenants by Each Party.

                8.1.1 Release of Acquiror and Transferor. At Closing, Acquiror
and Transferor shall enter into a release agreement (the "Release Agreement") in
the form of Exhibit D attached hereto.

                8.1.2 Cooperation. Each of the parties hereto shall cooperate
with the other parties in every reasonable way in carrying out the transactions
contemplated herein, and in delivering all documents and instruments deemed
reasonably necessary or useful by counsel for each party hereto.

                8.1.3 Expenses. Except as otherwise provided in this Agreement,
all costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such costs
or expenses.

                                       19
<PAGE>

                8.1.4 Further Assurances. From time to time after the Closing,
Transferor will, at its own expense, execute and deliver, or cause to be
executed and delivered, such documents to Acquiror as Acquiror may reasonably
request in order more effectively to vest in Acquiror good title to the
Purchased Assets and otherwise to consummate the transactions contemplated by
this Agreement, and from time to time after the Closing, Acquiror will, at its
own expense, execute and deliver such documents to Transferor as Transferor may
reasonably request in order more effectively to consummate the assumption of the
Assumed Liabilities by Acquiror and otherwise to consummate the transactions
contemplated by this Agreement.

            8.2 Indemnification.

                8.2.1 By Acquiror. In the event the Acquiror (i) breaches or is
deemed to have breached any of the representations and warranties contained in
this Agreement or (ii) fails to perform or comply with any of the covenants and
agreements set forth in this Agreement, then the Acquiror shall hold harmless,
indemnify and defend Transferor, and each of its directors, officers,
shareholders, attorneys, representatives and agents, from and against any
Damages incurred or paid by Transferor to the extent such Damages arise or
result from a breach by the Acquiror of any such representations and warranties
or a violation of any covenant in this Agreement.

                8.2.2 By Transferor. In the event Transferor (i) breaches or is
deemed to have breached any of the representations and warranties contained in
this Agreement or (ii) fails to perform or comply with any of the covenants and
agreements set forth in this Agreement, Transferor shall hold harmless,
indemnify and defend Acquiror, and each of its directors, officers,
shareholders, attorneys, representatives and agents, from and against any
Damages incurred or paid by the acquirer to the extent such Damages arise or
result from a breach by Transferor of any such representations or warranties or
a violation of any covenant in this Agreement. For purposes of this Section 8.2,
"Damages" shall mean any and all costs, losses, damages, liabilities, demands,
claims, suits, actions, judgments, causes of action, assessments or expenses,
including interest, penalties, fines and attorneys' fees and expenses incident
thereto, incurred in connection with any claim for indemnification arising out
of this Agreement, and any and all amounts paid in settlement of any such claim.

            8.3 Retention of and Access to Books and Records. Transferor agree
to retain the Books and Records for a period of five (5) years after the Closing
Date and to make them available to Acquiror for the purpose of making copies
thereof at Acquiror's expense of.

         9. Termination.

            9.1 Termination Events. Except as otherwise provided for, this
Agreement may, by notice given prior to or at the Closing (which notice shall
specify the grounds for termination), be terminated by mutual written agreement
of both Transferor and Acquiror.

            9.2 Effect of Termination. Each party's right of termination under
Section 9.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination shall not constitute an
election of remedies. If this Agreement is terminated pursuant to Section 9.1,
all further obligations of the parties under this Agreement shall thereupon
terminate, except that Sections 10 and 12 shall survive; provided, however, that
if this Agreement is terminated by a party because of a material Breach of this
Agreement by any of the parties or because one or more of the conditions to the
terminating party's obligations under this Agreement is not satisfied as a
result of any party's failure to comply with its obligations under this
Agreement, the terminating party's right to pursue all legal remedies shall
survive such termination unimpaired.

                                       20
<PAGE>

         10. Default; Remedies.

            10.1 Time of Essence. Time is of the essence of the parties'
obligations under this Agreement.

            10.2 Remedies. If any party fails to perform its obligations under
this Agreement, the other party shall be entitled to pursue all remedies
available at law or in equity, including, in the case of a failure to consummate
this transaction following satisfaction (or waiver) of the conditions set forth
in Section 6.1 or 6.2, as applicable, the remedy of specific performance;
provided, however, that except with respect to a failure to close this
transaction as provided herein, a party shall not be in default hereunder unless
(i) the non-Breaching party has given the Breaching party notice specifying the
nature of the Breach in reasonable detail, and (ii) the Breaching party either
(a) has failed to cure such Breach within ten (10) Business Days after such
notice is given, or (b) if such Breach cannot be cured solely by the payment of
money and cannot reasonably be cured within ten (10) Business Days despite the
exercise of Best Efforts, has failed to commence curative action within ten (10)
Business Days after such notice is given or thereafter fails to complete the
cure of such Breach as soon as practicable.

         11. Survival of Representations and Warranties; Escrow

            11.1 Survival Of Representations And Warranties. The representations
and warranties in this Agreement or in any instrument delivered pursuant to this
Agreement shall survive the Closing and continue until December 31, 2007.

            11.2 Stockholder Escrow Arrangements.

                (a) Escrow Funds. At the Closing, 25% of the Acquiror's
            Preferred Stock to be issued to Transferor ("Escrow Amount") will be
            deposited into an escrow account with Thomas Amon, Esq. (the "ESCROW
            AGENT"), such deposit to constitute an escrow fund (the "ESCROW
            FUND"). The terms upon which the Escrow Agent will serve in such
            capacity shall be as provided in an Escrow Agreement to be mutually
            agreed upon by Acquiror and Transferor, and which will be consistent
            with the provisions of Section 8.2 and Article 11 (the "ESCROW
            AGREEMENT"). The Escrow Fund is to be governed by the terms set
            forth in the Escrow Agreement and maintained at Acquiror's sole cost
            and expense (the "STOCKHOLDER ESCROW").

                (b) Purpose. The Escrow Fund shall be available to compensate
            Transferor and its affiliates for any claim, loss, expense,
            liability or other damage, including reasonable attorneys' fees, to
            the extent of the amount of such claim, loss, expense, liability or
            other damage (collectively "LOSSES") that Acquiror or any of its
            affiliates has incurred or reasonably anticipates incurring (in the
            case of an extension of the Stockholder Escrow period pursuant to
            Section 11.2(c)) by reason of the breach by Transferor of any
            representation, warranty, covenant or agreement of Transferor
            contained herein, including the indemnities provided for in Section
            8.2 hereof and the covenants contained in Section 8.1 hereof. Losses
            shall not include amounts recovered from insurance. Acquiror shall
            undertake commercially reasonable efforts to claim and collect
            insurance to which it is entitled with respect to any Losses.

                                       21
<PAGE>

                (c) Termination And Distribution Of Escrow Fund. The Escrow
            shall terminate on December 31, 2005; PROVIDED HOWEVER, that such
            portion of the Stockholder Escrow, which, in the reasonable judgment
            of Acquiror, subject to the objection of the Transferor and the
            subsequent arbitration of the matter in the manner provided in
            Section 11.2(i) hereof, is necessary to satisfy any identified but
            unsatisfied Losses specified in any Officer's Certificate
            theretofore delivered to the Escrow Agent prior to termination of
            the Stockholder Escrow, shall remain in the Stockholder Escrow (and
            the Stockholder Escrow shall remain in existence) until the earlier
            of (i) the expiration of the statute of limitations applicable to
            such claims or (ii) the resolution of such claims. As soon as all
            such claims have been resolved or the statute of limitations has
            expired, the Escrow Agent shall deliver to the appropriate security
            holders of Transferor the remaining portion of the Stockholder
            Escrow not required to satisfy such claims. Deliveries of Escrow
            Amounts to the Transferor's stockholders pursuant to this Section
            11.2(c) shall be made according to each stockholder's Proportionate
            Escrow Interest as certified to the Escrow Agent by the Transferor
            Stockholder Agent.

                (d) Protection Of Escrow Fund. The Escrow Agent shall hold and
            safeguard the Escrow Funds during their existence, shall treat such
            fund as a trust fund in accordance with the terms of this Agreement
            and not as the property of Acquiror and shall hold and dispose of
            the Escrow Funds only in accordance with the terms hereof.

                (e) Claims Upon Escrow Fund. In the event Acquiror incurs or
            becomes aware of any Losses or potential Losses for which it is
            entitled to indemnity under Article 8.2 and this Article 11, it
            shall deliver to the Escrow Agent and the Transferor Stockholder
            Agent a certificate signed by any officer of Acquiror (an "OFFICER'S
            CERTIFICATE"): (A) stating that Acquiror has (i) incurred or (ii)
            for purposes of extending the Escrow pursuant to Section 11.2(c)
            above, reasonably anticipates that it will have to incur Losses, (B)
            specifying in reasonable detail the individual items of Losses
            included in the amount so stated, the date each such item was paid
            or properly incurred, or the basis for such anticipated liability,
            and either the nature of the misrepresentation, breach of warranty
            or claim or the litigation matter to which such item is related.
            Upon the receipt of a certificate pursuant to clause (A)(i) above
            and after compliance with the provisions of Sections 11.2(f), (g)
            and (h) hereof, and if there is no written objection by Transferor
            as further provided in subsection (g) hereof, the Escrow Agent shall
            deliver to Acquiror out of the Escrow Fund, as promptly as
            practicable, such amounts held in the Escrow Fund equal to such
            Losses incurred. In determining the number of shares of Acquiror
            Common Stock to be paid out by the Escrow Agent pursuant to this
            Article V, such shares shall be valued by the Escrow Agent at the
            value of $1.00 per share.

                                       22
<PAGE>

                (f) Acquiror shall not be entitled to receive any disbursement
            or cause any amount to be retained in Escrow with respect to any
            Losses arising in respect of any individual occurrence or
            circumstance unless the aggregate amount of all Losses shall exceed
            $10,000; provided that in the event the aggregate amount of such
            Losses of Acquiror shall exceed $10,000, then Acquiror shall be
            entitled to recover from the Escrow Fund only Losses in excess of
            $10,000.

                (g) Objections To Claims. At the time of delivery of any
            Officer's Certificate to the Escrow Agent, a duplicate copy of such
            certificate shall be delivered to the Transferor Stockholder Agent
            (as defined in Section 11.2(i)). The Escrow Agent shall make no
            delivery to Acquiror of any amounts out of the Escrow Fund, pursuant
            to Section 11.2(e)(A)(i) hereof, unless and until the Escrow Agent
            shall have received written authorization from the Transferor
            Stockholder Agent to make such delivery or unless the claim shall
            have been resolved pursuant to Section 11.2(h). If the Transferor
            Stockholder Agent shall object to the claim made in the Officer's
            Certificate, the Transferor Stockholder Agent shall do so in a
            written statement to such effect delivered to the Escrow Agent. The
            Transferor Stockholder Agent shall approve or object to any such
            claim within a reasonable time after actual receipt of the Officer's
            Certificate.

                (h) Resolution Of Conflicts; Arbitration.

                    (i) In case the Transferor shall so object in writing to any
                claim or claims made in any Officer's Certificate, the
                Transferor and Acquiror shall attempt in good faith to agree
                upon the rights of the respective parties with respect to each
                of such claims. If the Transferor and Acquiror should so agree,
                a memorandum setting forth such agreement shall be prepared and
                signed by both parties and shall be furnished to the Escrow
                Agent. The Escrow Agent shall be entitled to rely on any such
                memorandum and distribute amounts from the Escrow Funds in
                accordance with the terms thereof.

                    (ii) If no such agreement can be reached after good faith
                negotiation, the matter shall be arbitrated before the American
                Arbitration Association. Either Acquiror or the Transferor may
                demand arbitration of the matter unless the amount of the damage
                or loss is at issue in pending litigation with a third party, in
                which event arbitration shall not be commenced until such amount
                is ascertained upon the conclusion of such litigation or both
                parties agree to arbitration, and in either such event the
                matter shall be settled by binding arbitration conducted by
                three arbitrators. Acquiror and the Transferor shall each select
                one arbitrator, and the two arbitrators so selected shall select
                a third arbitrator. The arbitrators shall set a limited time
                period and establish procedures designed to reduce the cost and
                time for discovery while allowing the parties an opportunity,
                adequate in the sole judgment of the arbitrators, to discover
                relevant information from the opposing parties about the subject
                matter of the dispute. The arbitrators shall rule upon motions
                to compel or limit discovery and shall have the authority to
                impose sanctions, including attorneys' fees and costs, to the
                same extent as a court of competent law or equity, should the
                arbitrators determine that discovery was sought without
                substantial justification or that discovery was refused or
                objected to without substantial justification. The decision of
                the arbitrators as to the validity and amount of any claim in
                such Officer's Certificate shall be binding and conclusive upon
                the parties to this Agreement, and notwithstanding anything in
                this Section 11.2(h); the Escrow Agent shall be entitled to act
                in accordance with such decision and make or withhold payments
                out of the Escrow Fund in accordance therewith. Such decision
                shall be written and shall be supported by written findings of
                fact and conclusions of law, which shall set forth the award,
                decree or order of the arbitrators.

                                       23
<PAGE>

                    (iii) Judgment upon any award rendered by the arbitrators
                may be entered in any court having jurisdiction. Any such
                arbitration shall be held at the discretion of Acquiror in
                Naples or Tampa Florida, under the rules then in effect of the
                American Arbitration Association.

                (i) Agent Of Transferor's Stockholders; Power Of Attorney.

                    (i) Upon execution and delivery of this Agreement, without
                further act of any stockholder of Transferor, Paul Janssens
                shall be appointed as agent and attorney-in-fact (the
                "TRANSFEROR STOCKHOLDER AGENT") for each stockholder of
                Transferor on whose behalf any Acquiror Common Stock was
                deposited into the Escrow Fund for and on behalf of stockholders
                of Transferor, to give and receive notices and communications,
                to authorize delivery to Acquiror of Acquiror Common Stock from
                the Escrow Fund in satisfaction of claims by Acquiror, to object
                to such deliveries, to agree to, negotiate, enter into
                settlements and compromises of, and demand arbitration and
                comply with orders of courts and awards of arbitrators with
                respect to such claims, and to take all actions necessary or
                appropriate in the judgment of the Transferor Stockholder Agent
                for the accomplishment of the foregoing. Such agency may be
                changed by the stockholders of Transferor from time to time upon
                not less than thirty (30) days prior written notice to Acquiror;
                provided that the Transferor Stockholder Agent may not be
                removed unless holders of a two-thirds interest of the Escrow
                Funds agree to such removal and to the identity of the
                substituted agent. No bond shall be required of the Transferor
                Stockholder Agent, and the Transferor Stockholder Agent shall
                not receive compensation for his services. Notices or
                communications to or from the Transferor Stockholder Agent shall
                constitute notice to or from each of the stockholders of
                Transferor.

                                       24
<PAGE>

                    (ii) The Transferor Stockholder Agent shall not be liable
                for any act done or omitted hereunder as Agent while acting in
                good faith and in the exercise of reasonable judgment. The
                stockholders of Transferor on whose behalf the amounts were
                contributed to the Escrow Funds shall severally indemnify the
                Transferor Stockholder Agent and hold the Transferor Stockholder
                Agent harmless against any loss, liability or expense incurred
                without negligence or bad faith on the part of the Transferor
                Stockholder Agent and arising out of or in connection with the
                acceptance or administration of the Transferor Stockholder
                Agent's duties hereunder, including the reasonable fees and
                expenses of any legal counsel retained by the Transferor
                Stockholder Agent.

                (j) Actions Of The Transferor's Stockholder Agent. A decision,
            act, consent or instruction of the Transferor Stockholder Agent
            shall constitute a decision of all the stockholders for whom a
            portion of the amounts otherwise issuable to them are deposited in
            the Escrow Funds and shall be final, binding and conclusive upon
            each of such stockholders, and the Escrow Agent and Acquiror may
            rely upon any such decision, act, consent or instruction of the
            Transferor's Stockholder Agent as being the decision, act, consent
            or instruction of each and every such stockholder of Transferor. The
            Escrow Agent and Acquiror are hereby relieved from any liability to
            any person for any acts done by them in accordance with such
            decision, act, consent or instruction of the Transferor Stockholder
            Agent.

                (k) Third-Party Claims. If during The Escrow Period, a
            third-party asserts a claim which gives rise to a claim to The
            Escrow supported by an Officer's Certificate, Acquiror shall have
            the right in its sole discretion to defend and to settle such
            third-party claim, provided, however, that any counsel retained to
            defend a third-party claim to be satisfied from the Escrow Fund
            shall be reasonably acceptable to the Transferor Stockholder Agent
            and Acquiror shall not settle any such third party claim without the
            prior consent of the Transferor Stockholder Agent, which consent
            shall not be unreasonably withheld.

         12. Escrow Agent's Duties.

                (a) The Escrow Agent shall be obligated only for the performance
            of such duties as are specifically set forth herein, and as set
            forth in any additional written escrow instructions which the Escrow
            Agent may receive after the date of this Agreement which are signed
            by an officer of Acquiror and the Transferor Stockholder Agent, and
            may rely and shall be protected in relying or refraining from acting
            on any instrument reasonably believed to be genuine and to have been
            signed or presented by the proper party or parties. The Escrow Agent
            shall not be liable for any act done or omitted hereunder as Escrow
            Agent while acting in good faith and in the exercise of reasonable
            judgment, and any act done or omitted pursuant to the advice of
            counsel shall be conclusive evidence of such good faith

                                       25
<PAGE>

                (b) The Escrow Agent is hereby expressly authorized to disregard
            any and all warnings given by any of the parties hereto or by any
            other person, excepting only orders or process of courts of law, and
            is hereby expressly authorized to comply with and obey orders,
            judgments or decrees of any court. In case the Escrow Agent obeys or
            complies with any such order, judgment or decree of any court, the
            Escrow Agent shall not be liable to any of the parties hereto or to
            any other person by reason of such compliance, notwithstanding any
            such order, judgment or decree being subsequently reversed,
            modified, annulled, set aside, vacated or found to have been entered
            without jurisdiction.

                (c) The Escrow Agent shall not be liable in any respect on
            account of the rights of the parties executing or delivering or
            purporting to execute or deliver this Agreement or any documents or
            papers deposited or called for hereunder.

                (d) The Escrow Agent shall not be liable for the expiration of
            any rights under any statute of limitations with respect to this
            Agreement or any documents deposited with the Escrow Agent.

                (e) The Escrow Agent may resign at any time upon giving at least
            thirty (30) days written notice to Acquiror and the Transferor
            Stockholder Agent to this Agreement; PROVIDED, HOWEVER, that no such
            resignation shall become effective until the appointment of a
            successor escrow agent which shall be accomplished as follows:
            Acquiror and the Transferor Stockholder Agent shall use their best
            efforts to mutually agree upon a successor agent within thirty (30)
            days after receiving such notice. If the parties fail to agree upon
            a successor escrow agent within such time, Acquiror shall have the
            right to appoint a successor escrow agent. The successor escrow
            agent selected in the preceding manner shall execute and deliver an
            instrument accepting such appointment and it shall thereupon be
            deemed the Escrow Agent hereunder and it shall without further acts
            be vested with all the estates, properties, rights, powers, and
            duties of the predecessor Escrow Agent as if originally named as
            Escrow Agent. Thereafter, the predecessor Escrow Agent shall be
            discharged from any further duties and liabilities under this
            Agreement.

         13. Limitation On Liability. Notwithstanding any other provision of
this Agreement to the contrary, absent fraud or bad faith, the liability of
Transferor with respect to any claim for a breach of any representation,
warranty, covenant or agreement contained in this Agreement shall be limited to
the assets of the Escrow Fund, and no Principal Stockholder shall have any
liability to Acquiror or arising from any breach after the termination of the
Escrow other than with respect to claims made prior to such termination under
Section 11.2(c) (and liability with such claims shall be limited to the amount
held in the Escrow as a result thereof).

                                       26
<PAGE>

         14. Construction and Interpretation..

             14.1 The headings or titles of the sections of this Agreement are
intended for ease of reference only and shall have no effect whatsoever on the
construction or interpretation of any provision of this Agreement. References
herein to sections are to sections of this Agreement unless otherwise specified.

             14.2 Meanings of defined terms used in this Agreement are equally
applicable to singular and plural forms of the defined terms. The masculine
gender shall also include the feminine and neutral genders and vice versa.

             14.3 As used herein, (i) the term "party" refers to a party to this
Agreement, unless otherwise specified, (ii) the terms "hereof," "herein,"
"hereunder," and similar terms refer to this Agreement as a whole and not to any
particular provision of this Agreement, (iii) the term "this transaction" refers
to the transaction contemplated by this Agreement, (iv) the term "including" is
not limiting and means "including without limitation," (v) the term "documents"
includes all instruments, documents, agreements, certificates, indentures,
notices, and other writings, however evidenced, and (vi) the term "property"
includes any kind of property or asset, real, personal, or mixed, tangible or
intangible.

             14.4 In the event any period of time specified in this Agreement
ends on a day other than a Business Day, such period shall be extended to the
next following Business Day. In the computation of periods of time from a
specified date to a later specified date, the word "from" means "from and
including," the words "to" and "until" each mean "to but excluding," and the
word "through" means "to and including."

             14.5 This Agreement is the product of arm's length negotiations
among, and has been reviewed by counsel to the parties and is the product of all
the parties. Accordingly, this Agreement shall not be construed for or against
any party by reason of the authorship or alleged authorship of any provision
hereof.

         15. Miscellaneous Provisions.

             15.1 Survival of Covenants. Each covenant or agreement of the
parties set forth in this Agreement which by its terms expressly provides for
performance after the Closing Date shall survive the Closing and be fully
enforceable thereafter.

             15.2 Expenses. Except as otherwise provided, each party shall bear
its own expenses incurred in connection with the preparation, execution, and
performance of this Agreement and this transaction, including all fees and
expenses of its own Representatives or any other similar payment in connection
with this transaction.

             15.3 Binding Effect. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties and, subject to the
restrictions on assignment set forth herein, their respective successors and
assigns.

                                       27
<PAGE>

             15.4 Assignment. Neither party shall assign any of its rights or
obligations under this Agreement without the prior written consent of the other
party. No assignment of this Agreement shall release the assigning party from
its obligations under this Agreement.

             15.5 Notices. All notices under this Agreement shall be in writing.
Notices may be (i) delivered personally, (ii) transmitted by facsimile, (iii)
delivered by a recognized national overnight delivery service, or (iv) mailed by
certified United States mail, postage prepaid and return receipt requested.
Notices to any party shall be directed to its address set forth below, or to
such other or additional address as any party may specify by notice to the other
party. Any notice delivered in accordance with this Section 13.5 shall be deemed
given when actually received or, if earlier, (a) in the case of any notice
transmitted by facsimile, on the date on which the transmitting party receives
confirmation of receipt by facsimile transmission, telephone, or otherwise, if
sent during the recipient's normal business hours or, if not, on the next
Business Day, (b) in the case of any notice delivered by a recognized national
overnight delivery service, on the next Business Day after delivery to the
service or, if different, on the day designated for delivery, or (c) in the case
of any notice mailed by certified U.S. mail, two (2) Business Days after deposit
therein.

       If to TRANSFEROR:                  Alternative Construction Technologies
                                          Corp.
                                          992 Winterberry Drive
                                          Marco Island, FL 34145
                                          Attn: Paul Janssens

       With a copy to:                            ___________, Esq.
                                                  _________________
                                                  _________________
                                                  __________________

       If to ACQUIROR:                    Alternative Construction Company, Inc.
                                          1900 S. Harbor City Blvd.
                                          Suite 315
                                          Melbourne, FL 32955

       With a copy to:                    Thomas Amon, Esq.
                                          500 Fifth Avenue
                                          Suite 1650
                                          New York, NY 10110

             15.6 Waiver. Any party's failure to exercise any right or remedy
under this Agreement, delay in exercising any such right or remedy, or partial
exercise of any such right or remedy shall not constitute a waiver of that or
any other right or remedy hereunder. A waiver of any Breach of any provision of
this Agreement shall not constitute a waiver of any succeeding Breach of such
provision or a waiver of such provision itself. No waiver of any provision of
this Agreement shall be binding on a party unless it is set forth in writing and
signed by such party.

                                       28
<PAGE>

             15.7 Amendment. This Agreement may not be modified or amended
except by the written agreement of the parties.

             15.8 Severability. If any provision of this Agreement is held
invalid, illegal, or unenforceable, then (i) such provision shall be enforceable
to the fullest extent permitted by applicable law, and (ii) the validity and
enforceability of the other provisions of this Agreement shall not be affected
and all such provisions shall remain in full force and effect.

             15.9 Integration. This Agreement, including the Exhibits and
Schedules hereto, contains the entire agreement and understanding of the parties
with respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements with respect thereto. The parties acknowledge and
agree that there are no agreements or representations relating to the subject
matter of this Agreement, either written or oral, express or implied, that are
not set forth in this Agreement, in the Exhibits and Schedules to this
Agreement.

             15.10 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida (without regard to
the principles thereof relating to conflicts of laws).

             15.11 Arbitration. All disputes or claims arising out of or
relating to this Agreement, or the breach hereof, including disputes as to the
validity and/or enforceability of this Agreement or any portion thereof, and any
claims for indemnification under the provisions of this Agreement, shall be
resolved by binding arbitration conducted in Sarasota, Florida. Any arbitration
pursuant to this Section 12.11 shall be conducted, upon the request of any
party, before a single arbitrator selected by the parties or, failing agreement
on the choice of an arbitrator within thirty (30) days of service of written
demand for arbitration, by an arbitrator designated by the Presiding Judge of
the Superior Court for Collier County, Florida. The arbitrator shall be a
practicing attorney licensed to practice in one or more of the fifty (50)
states, with substantial experience in commercial and/or commercial litigation
matters, who has been in active practice for at least ten (10) years. Such
arbitration shall be conducted in accordance with the laws of the State of
Florida and pursuant to the commercial arbitration rules of the American
Arbitration Association (although not under the auspices of the American
Arbitration Association) and such of the federal rules of civil procedure as the
arbitrator may determine. The arbitration shall be conducted within forty-five
(45) days of the selection of the arbitrator and the arbitrator shall render his
or her decision within twenty (20) days after conclusion of the arbitration. The
prevailing party in the arbitration shall be entitled as a part of the
arbitration award to the costs and expenses (including reasonable attorneys'
fees and the fees of the arbitrator) of investigating, preparing, and pursuing
or defending the arbitration claim as such costs and expenses are awarded by the
arbitrator. The duty to arbitrate shall survive a termination or cancellation of
this Agreement and shall be specifically enforceable under applicable federal
law and the prevailing arbitration law of the State of Florida. The decision of
the arbitrator shall be final and binding upon the parties and enforceable in
any court of competent jurisdiction.

             15.12 Execution. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one and the same agreement.
Each party may rely upon the signature of each other party on this Agreement
that is transmitted by facsimile as constituting a duly authorized, irrevocable,
actual, current delivery of this Agreement with the original ink signature of
the transmitting party.

                                       29
<PAGE>

             15.13 Waiver of Conflicts The parties acknowledge that certain of
the principals of QMC may have independent agreements with ACC providing for
their employment after the Closing. The terms and conditions of these agreements
have been negotiated in good faith and at arms-length. Any conflict of interest,
whether real or implied resulting from these prior agreements are deemed by the
parties hereto to be waived.

             15.14 Incorporation of Recitals, Exhibits, and Schedules. The
Recitals to this Agreement and all Exhibits and Schedules to this Agreement are
incorporated herein by this reference.

             15.15 Further Assurances. Each party agrees to execute and deliver
such additional documents and instruments as may reasonably be required to
effect this transaction fully, so long as the terms thereof are consistent with
the terms of this Agreement.

             15.16 No Third Party Beneficiaries. This Agreement is made and
entered into for the sole protection and legal benefit of Transferor and
Acquiror, and, subject to the restrictions on assignment set forth herein, their
respective successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement.

             15.17 Bulk Sales Acquiror hereby waives compliance by transferor
with the provisions of any applicable bulk sales law (including the applicable
sections of the Uniform Commercial Code of any state, and transferor hereby
agrees to indemnify and hold Acquiror harmless for any liability, cost and
expenses resulting from any such non-compliance.

                                       30
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.

         TRANSFEROR:       ALTERNATIVE CONSTRUCTION TECHNOLOGIES CORP.
                           A Tennessee corporation

                           By:____________________________________________

                           Name: _________________________________________

                           Its:____________________________________________

                  ACC:     ALTERNATIVE CONSTRUCTION COMPANY, INC,
                           a Florida corporation

                           By:______________________________________________

                           Name: ___________________________________________

                           Its: ______________________________________________

                                       31
<PAGE>

                                     EXHIBIT A
                                     ---------

The following are the assets used in the Business:

                                     PATENTS
                                     -------

U.S PATENT NO.                     DATE ISSUED                  INVENTORS
--------------                     -----------                  ---------

6,438,906                        August 27, 2002            Komaorowski, Nadia,
                                                            Deming, Joey
5,373,678                        December 20, 1994          Francis J. Hesser,
                                                            Al Demopolis
5,827,458                        October 27, 1998           James A. Meadows

                               ACCOUNTS RECEIVABLE
                               -------------------

                   Towell                           $86,780.86
                   Wolfe                              1,054.21
                   Wilshire                          41,329.94
                   Lacher                             1,809.26
                   Crown                              8,024.17
                   Daedalus                          11,073.29
                   Bell                              19,377.94
                   Swanson                           15,339.82
                   Aih                               30,990.55
                   Watson                            18,629.50
                   Tara                              49,677.40

                                  FIXED ASSETS
                                  ------------

ITEMS                            COST       ACCUM DEPREC          BOOK VALUE
-----                            ----       ------------          ----------

Furniture/Fixtures           10,597.09          9,392.90            1,204.19
Computer Equipment           37,678.47         36,070.93            1,245.34
Machinery Equipment         170,696.77        101,588.54           69,108.23
Building Upgrades            31,693.79         11,976.10           19,717.69

                                       1
<PAGE>

                                    EXHIBIT B
                                    ---------

                               ASSUMED LIABILITIES
                               -------------------

         The only assumed liabilities of Transferor pursuant to the terms and
conditions of this Agreement shall be:

         Invoice from Linden Industries, Inc., Invoice #6083, dated October 5,
2004 in the amount of $234,956.68. This invoice is for final payment and
installation of the following:

                  One (1) Pentane Bulk Storage System and Penta-Meter Pentane
                  Metering Machine Per Confirmation of Order No. 2818-1.

                                       1

<PAGE>

                                    EXHIBIT C
                                    ---------

                                  BILL OF SALE

                                       AND

                            ASSIGNMENT AND ASSUMPTION

         This Bill of Sale and Assignment and Assumption Agreement (this "Bill
of Sale"), dated as of January 15, 2005 (the "Effective Date") by and between
Alternative Construction Technologies Corp., a Florida corporation
("Transferor"), and Alternative Construction Company, Inc., a Florida
corporation ("ACC" or "Acquiror").

                                    RECITALS:
                                    ---------

         A. TRANSFEROR and ACC entered into that certain Purchase Agreement,
December 14, 2004 (the "Agreement"), which provides, on the terms and conditions
set forth therein, for the transfer by Transferor and purchase by Acquiror of
the Business of Transferor as set forth in the Agreement. Capitalized terms used
herein without definition shall have the meanings ascribed to them in the
Agreement.

         B. The assets being sold by Transferor and purchased by Acquiror
include, but are not limited to, all of Transferor's tangible and intangible
property used in the Business (the "Purchased Assets") as set forth in the
Agreement.

         C. Acquiror desires to obtain all right, title and interest in and to
any and all of the Purchased Assets.

         D. This Bill of Sale is being executed and delivered in order to effect
the transfer of the Purchased Assets to Acquiror, as provided in the Agreement.

         NOW THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Transferor agree as follows:

         1. Assignment. Transferor hereby sells, grants, conveys, bargains,
transfers, assigns and delivers to Acquiror, and to Acquiror's successors and
assigns, all of Transferor's rights, titles and interests, legal and equitable,
throughout the world, in and to the Purchased Assets, to have and to hold the
same forever. This is a transfer and conveyance by Transferor to Acquiror of
good and marketable title to the Purchased Assets, free and clear of all
encumbrances except as provided in the Agreement or on the Schedules thereto.
Subject to the conditions and limitations contained in the Agreement, Transferor
hereby covenants and agrees to warrant and defend title to the Purchased Assets
against any and all claims whatsoever to the extent represented and warranted to
in the Agreement.

                                       2
<PAGE>

         2. Assumption. Acquiror, in consideration of the assignment, hereby
assumes and undertakes to discharge, as appropriate in accordance with their
terms, all of the Assumed Liabilities except as otherwise set forth in the
Agreement. Except as provided for in this Paragraph 2, Acquiror is not hereby
assuming, and the Acquiror shall not assume or otherwise be obligated to pay,
perform, satisfy or discharge, any liabilities or obligations of Transferor or
the Business.

         3. Further Assurances. Transferor agrees that it will, at Acquiror's
request at any time and from time to time after the date hereof and without
further consideration, do, execute, acknowledge and deliver or will cause to be
done, executed, acknowledged and delivered all such further acts, deeds,
assignments, transfers, conveyances, powers of attorney and other instruments
and assurances as may be considered by Acquiror, its successors and assigns, to
be necessary or proper to better effect the sale, conveyance, transfer,
assignment, assurance, confirmation and delivery of ownership of the Purchased
Assets to Acquiror, or to aid and assist in collecting and reducing to the
possession of Acquiror, any and all Purchased Assets.

         4. Amendment or Termination; Successors and Assigns. This Bill of Sale
may not be amended or terminated except by a written instrument duly signed by
each of the parties hereto. This Bill of Sale shall inure to the benefit of, and
be binding upon, each of the parties hereto and their respective successors and
assigns.

         5. No Third Parties. Nothing in this Bill of Sale, expressed or
implied, is intended or shall be construed to confer upon or give to any person,
firm or corporation other than Acquiror and Transferor, their successors and
assigns, any remedy or claim under or by reason of this instrument or any term,
covenant or condition hereof, and all of the terms, covenants, conditions,
promises and agreements contained in this instrument shall be for the sole and
exclusive benefit of the Acquiror and Transferor, their successors and assigns.

         6. Construction. This Bill of Sale, being further documentation of a
portion of the conveyances, transfers and assignments provided for in and by the
Agreement, neither supersedes, amends, or modifies any of the terms or
provisions of the Agreement nor does it expand upon or limit the rights,
obligations or warranties of the parties under the Agreement. In the event of a
conflict or ambiguity between the provisions of this Bill of Sale and the
Agreement, the provisions of the Agreement will be controlling.

         7. Governing Law. The rights and obligations of the parties under this
Bill of Sale will be construed under and governed by the internal laws of the
State of Florida (regardless of its or any other jurisdiction's conflict-of-law
provisions).

         8. Counterparts. This Bill of Sale may be executed by facsimile in one
or more counterparts and by facsimile, each of which shall be deemed an original
and all of which taken together shall constitute one and the same instrument.

                                       3
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Bill of Sale as of
the Effective Date.

              TRANSFEROR:                ALTERNATIVE CONSTRUCTION
                                         TECHNOLOGIES CORP.
                                         a Tennessee corporation

                                         By:      __________________________

                                         Name: __________________________

                                         Its:     __________________________

              ACQUIROR:                  ALTERNATIVE CONSTRUCTION
                                         COMPANY, INC.
                                         a Florida corporation

                                         By:      ____________________________

                                         Name: ____________________________

                                         Its:     ____________________________

                                       4
<PAGE>

                                    EXHIBIT D
                                    ---------

                            MUTUAL RELEASE AGREEMENT

         This Mutual Release Agreement (this "Release Agreement"), dated as of
January 15, 2004 (the "Effective Date"), by and between Alternative Construction
Technologies, Corp., a Tennessee corporation ("Transferor") and Alternative
Construction Company, Inc., a Delaware corporation ("ACC or Acquiror").

                                    RECITALS

         WHEREAS, Transferor and ACC are parties to that certain Purchase
Agreement, dated December 14, 2004 (the "Purchase Agreement"), and this Release
Agreement is that certain Release Agreement as that term is defined in the Asset
Purchase Agreement; and

         WHEREAS, Transferor and ACC now wish to enter into this Release
Agreement with respect to the consummation of the Purchase Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained in this Agreement, the receipt and sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

         1. Definitions. Any capitalized term used in this Release Agreement
without definition shall have the meaning given to such term in the Purchase
Agreement.

         2. Release by Transferor. Transferor hereby fully, forever,
irrevocably, and unconditionally releases and discharges ACC, including, as
applicable, all past and present officers, directors, stockholders, affiliates
(including, but not limited to, parent, subsidiary and affiliated corporations),
agents, employees, representatives, lawyers, administrators, spouses, and all
persons acting by, through, under, or in concert with them, from any and all
claims, damages or other sums, including attorneys' fees and costs, which
Transferor may have against them, or any of them, which could have arisen out of
any act or omission occurring from the beginning of time to the effective date
of this Agreement, whether now known or unknown, and whether asserted or
unasserted.

         3. Release by Aquiror. Aquiror hereby fully, forever, irrevocably, and
unconditionally releases and discharges Transferor, including, as applicable,
all past and present officers, directors, stockholders, affiliates (including,
but not limited to, parent, subsidiary and affiliated corporations), agents,
employees, representatives, lawyers, administrators, spouses, and all persons
acting by, through, under, or in concert with them, from any and all claims,
damages or other sums, including attorneys' fees and costs, which Aquiror may
have against them, or any of them, which could have arisen out of any act or
omission occurring from the beginning of time to the effective date of this
Agreement, whether now known or unknown, and whether asserted or unasserted.

                                       1
<PAGE>

         4. Miscellaneous.

            4.1 Severability. The invalidity of all or any part of this Release
Agreement shall not render invalid the remainder of this Release Agreement. In
the event a court of competent jurisdiction should decline to enforce any
provision of this Release Agreement, such provision shall be reformed to the
extent necessary in the judgment of such court to make such provision
enforceable to the maximum extent that the court shall find enforceable.

            4.2 Notices. Any notice hereunder shall be sufficient if in writing
and telefaxed to the party or sent by certified mail, return receipt requested
and addressed as follows:

            If to TRANSFEROR         ALTERNATIVE CONSTRUCTION TECHNOLOGIES CORP.
                                     992 Winterberry Drive
                                     Marco Island, FL 34155
                                     Attn: Paul Janssens

            With a copy to:          __________, Esq.
                                     ______________
                                     ______________
                                     ______________

            If to ACC:               Alternative Construction Company, Inc.
                                     1900 S. Harbor City Blvd.
                                     Suite 315
                                     Melbourne, FL 32955

            With a copy to:          Thomas Amon, Esq.
                                     770 Lexington Avenue
                                     6th Floor
                                     New York, NY 10021

            4.3 Governing Law. This Agreement is made and shall be construed and
performed in accordance with the laws of the State of Florida.

            4.4 Waiver of Agreement. Any term or condition of this Release
Agreement may be waived at any time by the party that is entitled to the benefit
thereof, but no such waiver shall be effective unless set forth in a written
instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Release
Agreement, in any one or more instance, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Release Agreement on
any future occasion. All remedies, either under this Release Agreement, by law
or otherwise, will be cumulative and not alternative.

                                       2
<PAGE>

            4.5 Headings. The headings of the sections of this Release Agreement
are for convenience and reference only and are not to be used to interpret or
define the provisions hereof.

            4.6 Counterparts. This Release Agreement may be executed by
facsimile and in two (2) or more counterparts, each of which shall be deemed an
original and all of which shall constitute one (1) instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       3

<PAGE>

         IN WITNESS WHEREOF, each of the parties has caused this Release
Agreement to be executed as of the Effective Date.

                  TRANSFEROR:          ALTERNATIVE CONSTRUCTION
                                       TECHNOLOGIES CORP.
                                       A Tennessee corporation

                                       By:      __________________________

                                       Name: __________________________

                                       Its:     __________________________

                  ACC:                 ALTERNATIVE CONSTRUCTION
                                       COMPANY, INC.
                                       a Florida corporation

                                       By:      ____________________________

                                       Name: ____________________________

                                       Its:     ____________________________

                                       4

<PAGE>

                                    EXHIBIT E
                                    ---------

                        TERMS OF SERIES B PREFERRED STOCK
                        ---------------------------------

Section 1.   Designation and Amount. The shares of such series shall be
             designated as "Series B Preferred Stock" and the number of shares
             constituting such series shall be five million (5,000,000). Such
             number of shares may be increased or decreased by resolution of the
             Board of Directors; provided, however, that no decrease shall
             reduce the number of shares of Series B Preferred -------- -------
             Stock to a number less than the number of shares then outstanding
             plus the number of shares reserved for issuance upon the exercise
             of outstanding options, rights or warrants or upon the conversion
             of any outstanding securities issued by the Corporation convertible
             into Series B Preferred Stock.

Section 2.   Voting Rights.

             (A) The shares of Series B Preferred Stock shall be entitled to
             that number of votes equal to the largest whole number of shares of
             Common Stock into which the shares of Series B Preferred Stock may
             be converted at the time of such vote.

             (B) Except as otherwise provided herein, by law, or in any other
             Certificate of Designation creating a series of preferred stock or
             any similar stock, the holders of shares of Series B Preferred
             Stock, the holders of shares of Common Stock and any other capital
             stock of the Corporation having general voting rights shall vote
             together as one class on all matters submitted to a vote of
             stockholders of the Corporation.

             (C) Except as set forth herein, or as otherwise provided by law,
             holders of Series B Preferred Stock shall have no special voting
             rights and their consent shall not be required (except to the
             extent they are entitled to vote with holders of Common Stock as
             set forth herein) for taking any corporate action.

Section 3.   Conversion

             (A) Optional Conversion. Except when automatically converted
             pursuant to Section 3(B) or when liquidated pursuant to Section 4,
             the shares of Series B Preferred Stock upon issuance shall be
             convertible at the option of the stockholder into shares of Common
             Stock. Each share of the Series B Preferred Stock shall initially
             be convertible into one share of Common Stock (the "Conversion
             Ratio"). Upon conversion pursuant to this Section 3(A), any accrued
             but unpaid cash dividends, on the shares of Series B Preferred
             Stock being converted will be paid by the Corporation out of
             lawfully available funds or an equivalent value, based on the then
             fair market value of the Corporation, or additional shares of
             Common Stock with the choice between cash or additional shares of
             Common Stock being at the discretion of the converting stockholder,
             which choice shall be set forth in such converting stockholder's
             notice of conversion. If the Corporation and the converting
             stockholder cannot agree upon the fair market value of the
             Corporation then the converting stockholder shall receive any
             accrued but unpaid cash dividends on the shares of Series B
             Preferred Stock being converted in cash.

                                       5
<PAGE>

             (B) Automatic Conversion. The shares of Series B Preferred Stock
             shall be automatically converted into shares of Common Stock upon
             (i) a registration of any class of equity securities of the
             Corporation with the U.S. Securities and Exchange Commission or
             (ii) the approval of the holders of at least sixty-six and
             two-thirds percent (66 2/3%) of the outstanding shares of Series B
             Preferred Stock. Any accrued but unpaid cash dividends, on the
             shares of Series B Preferred Stock being converted shall be paid
             similarly as in Section 3(A).

Section 4.   Liquidation, Dissolution or Winding Up.

             (A) Upon any liquidation (voluntary or otherwise), dissolution or
             winding up of the Corporation, no distribution shall be made to the
             holders of shares of stock ranking junior (either as to dividends
             or upon liquidation, dissolution or winding up) to the Series B
             Preferred Stock unless, prior thereto, the holders of shares of
             Series B Preferred Stock shall have received $_______ per share,
             (the "Series B Liquidation Preference"). Following the payment of
             the full amount of the Series B Liquidation Preference, no
             additional distributions shall be made to the holders of shares of
             Series B Preferred Stock unless, prior thereto, the holders of
             shares of Common Stock shall have received the Common Adjustment,
             as defined by the Certificate of Designation, Preferences, and
             Rights of Series A Preferred Stock of the Corporation. Following
             the payment of the full amount of the Series B Liquidation
             Preference and the Common Adjustment in respect of all outstanding
             shares of Series A Preferred Stock and Common Stock, respectively,
             holders of Series B Preferred Stock shall receive their ratable and
             proportionate share of the remaining assets to be distributed on an
             as if converted basis.

             (B) In the event, however, that there are not sufficient assets
             available to permit payment in full of the Series B Liquidation
             Preference and the liquidation preferences of all other series of
             preferred stock, if any, which rank on a parity with the Series B
             Preferred Stock, then such remaining assets shall be distributed
             ratably to the holders of such parity shares in proportion to their
             respective liquidation preferences.

             (C) Neither the consolidation, merger or other business combination
             of the Corporation with or into any other entity, or the sale,
             lease, exchange or conveyance of all or any part of the property,
             assets or business of the Corporation shall be deemed to be a
             liquidation, dissolution or winding up of the Corporation for
             purposes of this Section 4.

Section 5.   Consolidation, Merger, etc. In the event the Corporation shall
             enter into any consolidation, merger, combination or other
             transaction in which the shares of Common Stock are exchanged for
             or changed into other stock or securities, cash and/or any other
             property, then in any event the shares of Series B Preferred Stock
             shall at the same time be similarly exchanged or changed in an
             amount per share equal to the Conversion Ratio times the aggregate
             amount of stock, securities, cash and/or any other property
             (payable in kind), as the case may be, into which or for which each
             share of Common Stock is changed or exchanged.

                                       6
<PAGE>

Section 6.   Adjustment of Conversion Ratio The Conversion Ratio shall be
             adjusted for any pro rata non-cash distributions to holders of
             shares of Common Stock, including without limitation, stock
             dividends, stock splits and securities issued in a
             recapitalization. In such event the Conversion Ratio shall be
             adjusted by multiplying the Conversion Ratio by a fraction the
             numerator of which is the number of shares of Common Stock
             outstanding immediately after such event and the denominator of
             which is the number of shares of Common Stock that were outstanding
             immediately prior to such event.

Section 7.   No Redemption. The shares of Series B Preferred Stock shall not be
             redeemable.

Section 8.   Priority. The Series B Preferred Stock shall rank senior to the
             Corporation's Common Stock, and junior to the Series A Preferred
             Share and all other series of the Corporation's preferred stock, as
             to the payment of dividends and the distribution of assets unless
             the terms of any such series shall provide otherwise.

Section 9.   Amendment. The Certificate of Incorporation of the Corporation
             shall not be further amended in any manner which would materially
             alter or change the powers, preferences or special rights of the
             Series B Preferred Stock so as to affect them adversely without the
             affirmative vote of the holders of at least sixty-six and
             two-thirds percent (66 2/3%) of the outstanding shares of Series B
             Preferred Stock, voting together as a single class.

Section 10.  Fractional Shares. Series B Preferred Stock may be issued in
             fractions of a share which shall entitle the holder, in proportion
             to such holder's fractional shares, to exercise voting rights,
             receive dividends, participate in distributions and to have the
             benefit of all other rights of holders of Series B Preferred Stock.

                                       7
<PAGE>

                                 SCHEDULE 4.2.1
                                 --------------

                                    CONSENTS
                                    --------

                  [INSERT AGREEMENTS WHICH ARE BEING ASSIGNED]

                                       1

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