Document:

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                                                                 EXHIBIT (10)(s)

                        THE REYNOLDS AND REYNOLDS COMPANY
                          SUPPLEMENTAL RETIREMENT PLAN

                          (October 1, 2002 Restatement)

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                        THE REYNOLDS AND REYNOLDS COMPANY
                          SUPPLEMENTAL RETIREMENT PLAN

The Reynolds and Reynolds Company (the "COMPANY") established The Reynolds and
Reynolds Company Supplemental Retirement Plan (the "PLAN") effective October 1,
1978. The Plan has been amended from time to time.

In addition to the Plan, the Company previously provided non-qualified deferred
compensation benefits to eligible employees pursuant to a salary continuation
program for officers, the terms of which were set forth in individual agreements
between those employees and the Company (collectively, the "OFFICERS SALARY
CONTINUATION PLAN").

The Company now desires to amend and restate the Plan, and combine it with the
Officers Salary Continuation Plan. As such, the benefits provided under this
restated Plan replace those previously provided under the Plan and the Officers
Salary Continuation Plan.

THEREFORE, effective as of October 1, 2002, the Plan is amended and restated, as
set forth below. The provisions of this amended and restated Plan shall apply
only to covered employees (including officers) who retire, die, or terminate
employment with the Company and all Related Companies on or after that date.

      1. DEFINITIONS. Unless a different meaning clearly is required by the
context, for purposes of the Plan, words and phrases defined in this document
shall have the meanings indicated, and all other words and phrases used as
capitalized defined terms shall have the meanings given them in The Reynolds and
Reynolds Company Retirement Plan, as in effect at the time the meaning is to be
determined (the "QUALIFIED PENSION PLAN").

As used in this Plan, the terms set forth below shall have the following
meanings:

      (a)   "BOARD" shall mean the Compensation Committee appointed by the board
            of directors of the Company, as constituted from time to time, or
            any other individual member or committee of that board to which it
            has delegated authority with respect to the Plan.

      (b)   "CHANGE IN CONTROL" shall mean the occurrence of any of the
            following:

            (i)     Any "person" as such term is used in Sections 13(d) and
                    14(d) of the Securities Exchange Act of 1934, as amended
                    (the "EXCHANGE ACT") (other than Richard H. Grant, Jr., his
                    children or his grandchildren, Reynolds, any trustee or
                    other fiduciary holding securities under an employee benefit
                    plan of Reynolds or any company owned, directly or
                    indirectly, by the shareholders of Reynolds in substantially
                    the same proportions as their ownership of stock of
                    Reynolds), who is or becomes the "beneficial owner" (as
                    defined in Rule 13d-3 under the

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                    Exchange Act), directly or indirectly, of securities of
                    Reynolds representing twenty percent (20%) or more of the
                    combined voting power of Reynolds' then outstanding
                    securities;

            (ii)    during any period of two (2) consecutive years (not
                    including any period prior to the effective date of this
                    restatement of the Plan), individuals who at the beginning
                    of such period constitute the Board, and any new director
                    (other than a director designated by a person who has
                    entered into an agreement with Reynolds to effect a
                    transaction described in clause (i), (iii) or (iv) of this
                    Section) whose election by Reynolds' shareholders was
                    approved by a vote of at least two-thirds (2/3) of the
                    directors at the beginning of the period or whose election
                    or nomination for election was previously so approved cease
                    for any reason to constitute at least a majority thereof;

            (iii)   the consummation of a merger or consolidation of Reynolds or
                    any direct or indirect subsidiary of Reynolds with any other
                    corporation, other than (1) a merger or consolidation which
                    would result in the voting securities of Reynolds
                    outstanding immediately prior to such merger or
                    consolidation continuing to represent (either by remaining
                    outstanding or by being converted into voting securities of
                    the surviving entity or any parent thereof) more than fifty
                    percent (50%) of the combined voting power of the voting
                    securities of Reynolds or such surviving entity or parent
                    thereof outstanding immediately after such merger or
                    consolidation or (2) a merger or consolidation effected to
                    implement a recapitalization of Reynolds (or similar
                    transaction) in which no "person" (as hereinabove defined)
                    is or becomes the beneficial owner, directly or indirectly,
                    of securities of Reynolds (not including in the securities
                    beneficially owned by such person any securities acquired
                    directly from Reynolds or its affiliates other than in
                    connection with the securities acquired directly from
                    Reynolds or its affiliates other than in connection with the
                    acquisition by Reynolds or its affiliates of a business)
                    representing twenty percent (20%) or more of the combined
                    voting power of Reynolds' then outstanding securities; or

            (iv)    the shareholders of Reynolds approve a plan of liquidation,
                    dissolution or winding up of Reynolds or an agreement for
                    the sale or disposition by Reynolds of all or substantially
                    all of Reynolds' assets.

      (c)   "CLAIMANT" means a Participant, or any beneficiary of a Participant,
            as determined under the provisions of this Plan, as amended from
            time to time.

      (d)   "CODE" means the Internal Revenue Code of 1986, as amended from time
            to time. Reference to a section of the Code shall include the then
            current

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            section of the Code, and any comparable section or sections of any
            future legislation that amends, supplements, or supersedes that
            section.

      (e)   "DISABILITY" and/or "DISABLED" means any of the following conditions
            which first occur after the date an associate becomes a Participant:

            (i)   the total and irrevocable loss by a Participant of:

                  (A)      sight of both eyes;

                  (B)      the use of both hands or both feet;

                  (C)      the use of one hand and one foot;

                  regardless of whether the Participant is able to perform the
                  duties of, or is working at, any occupation;

                                       OR

            (ii)  the inability of a Participant to perform all of the
                  substantial and material duties of his regular occupation as a
                  result of an injury or sickness. If a disability described in
                  the preceding part of this clause (ii) continues for a period
                  of sixty (60) months, then for purposes of this clause (ii),
                  disability means the inability of a Participant to perform all
                  of the substantial and material duties of any occupation for
                  which he is reasonably qualified by education, training or
                  experience.

      (f)   "ERISA" means the Employee Retirement Income Security Act of 1974,
            as amended from time to time.

      (g)   "GOOD REASON" means the occurrence of any of the following events:
            (i) Reynolds reduces a Participant's base salary below the amount of
            such base salary in effect immediately preceding a Change in Control
            without the Participant's written consent; (ii) Reynolds fails to
            continue to provide a Participant with fringe benefits (including
            bonuses, vacation, health and disability insurance, etc.) at least
            equivalent to those of other similarly situated associates employed
            by Reynolds; (iii) the Participant is required by Reynolds to
            perform duties or services which differ significantly from those
            performed by him prior to the Change in Control, or which are not
            ordinarily and generally performed by a similarly situated executive
            of a corporation; or (iv) the nature of the duties or services which
            Reynolds requires a Participant to perform necessitates absence
            overnight from his place of residence, because of travel involving
            the business affairs of Reynolds, for more than ninety (90) days
            during any period of six (6) consecutive months.

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      (h)   "PARTICIPANT" means an associate of Reynolds or a Related Company
            who:

            (i)   is a member of a "select group of management or highly
                  compensated employees", as that phrase is defined for purposes
                  of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA,

            (ii)  has been notified by the Committee of his or her eligibility
                  to participate in the Plan,

            (iii) has furnished (within a reasonable time established by the
                  Committee) such applications, consents, proofs of date of
                  birth, elections, beneficiary designations and other documents
                  and information as the Committee reasonably shall require,

                                       AND

            (iv)  has been designated an eligible officer by the Chief Human
                  Resources Officer of Reynolds ("CHRO"),

                                       OR

            (v)   has been designated by the Board as eligible to participate in
                  the Plan

            Provided, however, that the Board may at any time designate any
            associate or group of associates (including officers and active
            Participants) as being ineligible to participate (or to continue to
            participate) in the Plan.

            Upon becoming a Participant, each associate shall be deemed
            conclusively, for all purposes, to have assented to and to be bound
            by the terms and provisions of the Plan.

      (i)   "PAYMENT DATE" means, with respect to any Participant, the first to
            occur of the following:

            (i)   the date the Participant dies, but only if he satisfied the
                  Service Requirement at the time of his death; or

            (ii)  the date the Participant terminates employment with Reynolds
                  after attaining age fifty-five (55), but only if he has
                  satisfied the Service Requirement as of his termination date
                  and, with respect to Part 2 of his Aggregate Non-qualified
                  Deferred Compensation Benefit (as defined in Section 2,
                  below), he has satisfied the requirements for Early or Normal
                  Retirement under the Qualified Pension Plan; or

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            (iii) the date, after the termination of his employment with
                  Reynolds, on which the Participant attains age fifty-five
                  (55), but only if the Participant has satisfied the Service
                  Requirement as of the date he attains age fifty-five (55) and,
                  with respect to Part 2 of his Aggregate Non-qualified Deferred
                  Compensation Benefit (as defined in Section 2, below), he has
                  satisfied the requirements for Early Retirement under the
                  Qualified Pension Plan; or

            (iv)  the date the Participant satisfies the requirements for Normal
                  Retirement (as defined in the Qualified Pension Plan), but,
                  with respect to Part 1 of his Aggregate Non-qualified Deferred
                  Compensation Benefit (as defined in Section 2), only if the
                  Participant has satisfied the Service Requirement as of that
                  date.

            The following provisions relate only to Part 1 of the Aggregate
            Non-qualified Deferred Compensation Benefit (as defined in Section
            2), and are in addition to the dates described in (i) through (iv),
            next above.

            (v)   the date the Participant dies, but only if:

                  (A)      he was employed by Reynolds on that date; or

                  (B)      he previously terminated employment with Reynolds
                           because he was Disabled, and he remained continuously
                           Disabled until his death.

            (vi)  the date the Participant terminates employment with Reynolds
                  after attaining age fifty-five (55), but only if the
                  Participant is Disabled as of his termination date.

            (vii) the date, after the termination of his employment with
                  Reynolds, on which the Participant attains age fifty-five
                  (55), but only if he was Disabled when his employment by
                  Reynolds terminated, and he remained Disabled continuously
                  until he attained age fifty-five (55).

      (j)   "PLAN YEAR" means each twelve-month period commencing on October 1
            and ending on September 30.

      (k)   "RELATED COMPANY(IES)" means any corporation which is a member of
            the same controlled group of corporations, within the meaning of
            Section 1563(a) of the Code, determined without regard to sections
            1563(a)(4) and l563(e)(3) (C) of the Code, with the Company, and
            other entity designated by the company as a Related Company.

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      (l)   "SERVICE REQUIREMENT" means at least three (3) years of employment
            as an eligible officer, and:

            (i)   with respect to Part 1 of a Participant's benefit (as defined
                  in clause 2(a)(i), below), either:

                  (A)      the completion by the Participant of at least fifteen
                           (15) years of employment by the Company or a Related
                           Company, whether or not continuous, taking into
                           account employment before and after he becomes a Plan
                           Participant, OR

                  1)       for Participants who retire from the Company or a
                           Related Company on or after attaining age sixty-five
                           (65) and prior to completing fifteen (15) years of
                           service with the Company or a Related Company,
                           service with the Company and Related Companies
                           sufficient to entitle the Participant to a Normal
                           Retirement benefit under the Qualified Pension Plan;

            (ii)  with respect to Part 2 of a Participant's benefit (as defined
                  in clause 2(a)(ii), below), either:

                  (A)      service with the Company and Related Companies
                           sufficient to entitle the Participant to an Early
                           Retirement or Normal Retirement benefit under the
                           Qualified Pension Plan, or

                  (B)      five (5) Years of Service (as defined in the
                           Qualified Pension Plan) as an officer of the Company
                           as of the date of his termination of employment.

                  A Participant shall be considered employed by Reynolds during
                  an authorized leave of absence, as described in Section 12,
                  below.

      (m)   "TERMINATION FOR CAUSE" means a termination of a Participant's
            employment whenever occasioned by (i) the willful and continued
            failure by a Participant to substantially perform duties with
            Reynolds (other than any such failure resulting from incapacity due
            to physical or mental illness) after a written demand for
            substantial performance is delivered to the Participant by the
            Board, which demand specifically identifies the manner in which the
            Board believes the Participant has not substantially performed the
            Participant's duties, or (ii) the willful engaging by a Participant
            in conduct which is demonstrably and materially injurious to
            Reynolds or its subsidiaries, monetarily or otherwise. For purposes
            of this definition, no act, or failure to act, on a Participant's
            part shall be deemed "willful" unless done, or omitted

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            to be done, by Participant not in good faith and without reasonable
            belief that Participant's act, or failure to act, was in the best
            interest of Reynolds.

      2. DEFERRED COMPENSATION PAYMENTS. Benefit payments shall begin on the
relevant Payment Date, provided that the Participant or Beneficiary, as
appropriate, has properly completed and returned to the Committee or its
delegate all required payment forms.

      (a)   AMOUNT OF PAYMENT. An amount, expressed as a annual single-life
            annuity payable at Participant's retirement from Reynolds or a
            Related Company on or after his Normal or Early Retirement Date
            (both as defined in the Qualified Pension Plan)) equal to the sum
            of:

            PART 1:     six and one half percent (6.5%) of his Final Average
                        Pay, as defined in the Qualified Pension Plan, reduced
                        by four tenths of one percent (.4%) per month for each
                        month by which the first payment precedes the date the
                        Participant attains age sixty (60), and increased by
                        four tenths of one percent (.4%) per month for each
                        month by which the first payment follows the date the
                        Participant attains age sixty (60), or

                        for a Participant described in paragraph 1(l)(i)(B),
                        above, six and one half percent (6.5%) of his Final
                        Average Pay, as defined in the Qualified Pension Plan,
                        multiplied by a fraction, the numerator of which is his
                        months of service with Company and Related Companies,
                        determined as of the date he retires from the Company or
                        a Related Company, and the denominator of which is one
                        hundred eighty (180),

                                       and

            PART 2:     the difference between Participant's actual Qualified
                        Pension Plan benefit and the Qualified Pension Plan
                        benefit Participant would have received if it had been
                        calculated without regard to Code Sections 401(a)(17)
                        and 415.

            To receive payment of Part 1 or Part 2, the Participant must satisfy
            service and other Plan requirements applicable to that part of the
            benefit. At any Payment Date, the AACCRUED SUPPLEMENTAL PENSION
            BENEFIT@ of a Participant is the portion, if any, of Part 1 and Part
            2 for which the

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            Participant has satisfied all of the conditions for payment.

      (b)   FORM OF PAYMENT.

            (i)   NORMAL FORM OF PAYMENT. Unless the Participant elects
                  otherwise under Section 2(b)(ii), or the Committee decides
                  otherwise pursuant to Section 2(b)(iv), the Participant shall
                  receive payment as follows:

                  (A)      An initial payment equal to the Lump Sum Amount (as
                           defined in 2(b)(iii), below); plus

                  (B)      A life annuity which is actuarially equivalent to the
                           difference, if any, between:

                           (1)      the present value of the Accrued
                                    Supplemental Pension Benefit; and

                           (2)      the Lump Sum Amount;

                  The present value referred to in 2(b)(i)(B)(1) shall be
                  determined based on the actuarial assumptions set forth in
                  2(b)(iii)(2), below.

            (ii)  WAIVER OF RIGHT TO LUMP SUM. The Participant may elect not to
                  receive the lump sum payment described in 2(b)(i)(A), and to
                  have his entire Accrued Supplemental Pension Benefit paid as a
                  single-life annuity. Any such election must be made at least
                  twelve (12) months prior to his Payment Date, in writing, on a
                  form acceptable to the CHRO, and, to be effective, must be
                  received timely by the office of the CHRO.

            (iii) The LUMP SUM AMOUNT shall be determined as follows:

                  (A)      First, subtract:

                           (1)      the annual single life annuity payable to
                                    the Participant from the Qualified Pension
                                    Plan (the "QUALIFIED PLAN BENEFIT");

                                      FROM

                           (2)      an amount equal to $75,000 increased for
                                    inflation by one fourth of one percent
                                    (.25%) for each month of employment after
                                    October 1, 1999.

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                  One (1) day of employment during a month is sufficient to earn
                  the inflation adjustment for that month. No adjustment for
                  inflation will be made after the month of termination,
                  however.

                  The result of subtracting the Participant's Qualified Plan
                  Benefit from the Annual Amount, as determined above, is the
                  amount of a hypothetical, annual, single-life annuity payable
                  for the life of the Participant. The amount of this
                  hypothetical annuity is referred to below as the ATARGET
                  BENEFIT@.

                  (B)      Next, convert the lesser of the Target Benefit and
                           the Accrued Supplemental Pension Benefit to a lump
                           sum, using the following actuarial assumptions:

                           (1)      Fifty-four percent (54%) of the sum of: (1)
                                    the discount rate used in preparing the
                                    Financial Accounting Standard 87 report for
                                    the Pension Plan for Reynolds' fiscal year
                                    in which the lump sum distribution is paid;
                                    and (2) two percent (2%).

                           (2)      The length of the payment is twenty and
                                    five-tenths (20.5) years increased by
                                    six-tenths (.6) of a year for each year (or
                                    portion thereof) that the Payment Date
                                    precedes age sixty-two (62) or decreased by
                                    six-tenths (.6) of a year for each year (or
                                    portion thereof) that the Payment Date
                                    follows age sixty-two (62).

                           (3)      The annual annuity amount is payable in
                                    equal monthly installments, as of the first
                                    day of each month.

                  (C)      The result of the calculations described in (B), next
                           above, is the Lump Sum Amount.

            (iv)  OTHER PAYMENT OPTIONS. Any part of the Aggregate Non-qualified
                  benefit which otherwise would be paid as a life annuity may,
                  at the option of the Committee and after appropriate
                  adjustment for actuarial equivalence, be paid in the same form
                  as elected by Participant under the Qualified Pension Plan.

            (v)   CASH-OUTS. Notwithstanding the preceding provisions of this
                  Section 2, if, as of his Payment Date, the present value of a
                  Participant's Accrued Supplemental Pension Benefit is equal to
                  or less than ten thousand dollars ($10,000), the Committee may
                  distribute it in a lump

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                  sum payment. Any such distribution will fully discharge the
                  Plan's liability to the Participant and his Beneficiary.

            (vi)  ACTUARIAL EQUIVALENCE. Except as expressly provided in this
                  Plan, actuarial equivalence calculations shall be determined
                  using the actuarial assumptions and methods used in
                  calculating Qualified Pension Plan benefits, determined as of
                  the date of the calculation.

            (vii) FICA TAX ADJUSTMENTS. The law generally requires that
                  Participants pay their share of certain employment taxes on
                  Plan benefits at the time Plan benefits become definitely
                  determinable. Under certain circumstances, those taxes become
                  due before Plan benefits are payable. Any contrary Plan
                  provision notwithstanding, if any Participant fails to pay his
                  share of any such taxes when they become due, the Committee is
                  authorized to make the payment on his behalf, and to make an
                  appropriate actuarial reduction in his benefit to reflect the
                  payment of taxes on his behalf.

      (c)   DEATH BENEFITS. If a Participant dies after payments have begun
            under this Plan, and before receiving all of the payments to which
            he is entitled under this Plan, the beneficiary designated under
            Section 3 shall receive the balance of the payments, in the same
            form and at the same time as they would have been paid to
            Participant.

            If Participant dies while this Plan is in effect, and before
            payments have begun under this Plan, the beneficiary designated
            under Section 3 shall receive an amount determined as follows:

            (i)   If a Participant:

                  (A)      dies while employed by the Company,

                  (B)      has satisfied the Service Requirement on his date of
                           death, or

                  (C)      previously terminated employment with the Company
                           because he was Disabled, and he remained continuously
                           Disabled until his death,

                  then PART 1 OF THE ACCRUED SUPPLEMENTAL PENSION BENEFIT shall
                  be paid to the beneficiary or beneficiaries in accordance with
                  2(b)(i), but taking into account only Part 1 of the Accrued
                  Supplemental Pension Benefit. If there are multiple surviving
                  beneficiaries, the death benefit will be divided between or
                  among them:

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                  (D)      as specified on the beneficiary designation, or

                  (E)      if the beneficiary designation does not specify how
                           the benefit is to be divided, as the Committee shall
                           determine, based on rules and procedures it
                           establishes.

            (ii)  If and only if the Participant satisfied the Service
                  Requirement as of his date of death, PART 2 OF THE ACCRUED
                  SUPPLEMENTAL PENSION BENEFIT shall be paid as follows.

                  (A)      If the Participant is married at the time of his
                           death and his spouse survives him, his spouse shall
                           be entitled to a life annuity, determined as though
                           the Participant had separated from service on his
                           date of death, survived until the earliest retirement
                           age provided for in the Plan, retired, and elected
                           payment of Part 2 of his Accrued Supplemental Pension
                           Benefit as an immediate joint and fifty percent (50%)
                           survivor annuity on the day before his death.

                  (B)      If the Participant is not survived by a spouse, then
                           his beneficiary or beneficiaries shall be entitled to
                           a monthly benefit, payable for a period of sixty (60)
                           months, equal to fifty percent (50%) of the monthly
                           benefit which would have been payable to the
                           Participant if he had terminated employment on his
                           date of death, survived to his Qualified Pension Plan
                           Normal Retirement Date, and elected payment of Part 2
                           of his Accrued Supplemental Pension Benefit in the
                           form of a single-life annuity, with payments
                           beginning on his Qualified Pension Plan Normal
                           Retirement Date.

                           Any such death benefit payments shall begin as of the
                           first day of the month next following the
                           Participant's date of death. If there are multiple
                           surviving Beneficiaries, the death benefit will be
                           divided between or among them:

                           (1)      as specified on the Beneficiary designation,
                                    or

                           (2)      if the Beneficiary designation does not
                                    specify how the benefit is to be divided, as
                                    the Committee shall determine, based on
                                    rules and procedures it establishes.

      (d)   LIMITATION ON DEATH BENEFITS. Notwithstanding any contrary provision
            of the Plan, no payment shall be made under this Plan by reason of
            the death of

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            Participant as a result of suicide which occurs within two (2) years
            of the date of the associate becomes a Plan Participant. The
            provisions of the preceding sentence shall apply whether or not
            Participant is sane at the time the suicide occurs.

      (e)   DIVISION OF BENEFIT RESULTING FROM DIVORCE. A Participant may have
            his accrued benefit divided by order of a court of competent
            jurisdiction in a divorce or child support proceeding, subject to
            the following rules and limitations. The Participant is responsible
            for advising the Company and the Committee of any such order. Any
            such division shall be based on the benefit determined as of the
            date specified in the order. The amount of benefits paid to a
            Participant will be reduced to reflect any amounts payable to
            another party under such an order. Unless authorized by the
            Committee, in its sole discretion, no payment shall be made under
            any such order before the earliest date on which the Participant is
            entitled to payment of his or her accrued Plan benefit. No such
            order shall require the Plan to provide any type or form of benefit,
            or any payment or other option, not otherwise provided under the
            Plan.

      3. DESIGNATING A BENEFICIARY. Subject to the provisions of this Section,
each Participant may, from time to time, designate a beneficiary or
beneficiaries to receive any payments under this Plan which remain due and
payable at the time of his death. A Participant must designate each beneficiary
on a written beneficiary designation form, which must be received by the
Committee or the CHRO prior to his death. A Participant may change his
designated beneficiary or beneficiaries by submitting an appropriately
completed, written beneficiary designation form to the Committee or the CHRO
prior to his death.

If Participant fails properly to designate a beneficiary, any payment otherwise
due and payable under this Plan will be made to Participant's surviving spouse,
if any, and otherwise to one or more Beneficiaries (in such proportions as the
Committee decides) selected by the Committee, who shall be either:

      (a)   one or more of the Participant's relatives by blood, adoption or
            marriage; or

      (b)   the estate of the last to die of the Participant and his
            Beneficiary.

      4. LOSS OF ELIGIBILITY/TRANSFER TO AN INELIGIBLE GROUP. Notwithstanding
any contrary Plan provision, a Participant shall cease to accrue Plan benefits
as of the first date on which the Participant:

      (a)   ceases to be a member of a "select group of management or highly
            compensated employees", as that phrase is defined for purposes of
            Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA,

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      (b)   is demoted or reclassified, so that he remains employed by Reynolds,
            but is no longer eligible to continue to accrue Plan benefits, or

      (c)   is no longer eligible to participate as the result of an action by
            the Board.

The Accrued Supplemental Pension Benefit of any such Participant shall be
determined as of the date he ceased accruing benefits. In order to be eligible
for payments under this Plan, the Participant must satisfy all applicable
Service Requirements or qualify for the payment under Section 9.

      5. ADMINISTRATION. The authority to control and manage the operation and
administration of the benefits provided pursuant to this Plan is vested in a
Committee which has the rights, duties and obligations set forth in this Section
5.

This Plan, and any related documents, shall be retained by the CHRO on behalf of
the Committee, and made available for examination by the Committee upon
reasonable request.

      (a)   MEMBERSHIP AND MANNER OF ACTING. The Committee shall consist of
            three (3) or more persons selected by the Board of Directors of
            Reynolds or by any committee or member of the Board of Directors of
            Reynolds to whom authority to appoint the Committee has been
            delegated. The Committee shall act by the concurrence of a majority
            of its then members by meeting or by writing without a meeting. The
            Committee, by unanimous written consent, may authorize any one of
            its members to execute any document, instrument or direction on its
            behalf. A written statement by a majority of the Committee members
            or by an authorized Committee member shall be conclusive in favor of
            any person reasonably acting in reliance on it.

      (b)   RIGHTS, POWERS AND DUTIES. The Committee shall have such authority
            as may be necessary to discharge its responsibilities, including the
            following powers, rights and duties:

            (i)   to interpret and construe, in its sole discretion, in a
                  nondiscriminatory manner, the provisions of this Plan, as
                  amended from time to time, and to adopt such rules of
                  procedure and regulations as are consistent with those
                  provisions and as it deems necessary and proper;

            (ii)  to determine, in its sole discretion, in a nondiscriminatory
                  manner, all questions relating to the eligibility, benefits
                  and other rights of all persons under this Plan;

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            (iii) to direct all payments and distributions required or permitted
                  under this Plan;

            (iv)  to maintain and keep adequate records concerning its
                  proceedings and acts in such form and detail as the Committee
                  may decide;

            (v)   except as otherwise expressly provided in this Plan, to
                  establish actuarial assumptions and procedures for determining
                  actuarial equivalence and for any other purpose required to
                  implement this Plan; and

            (vi)  to delegate its powers and duties to others as it sees fit.

      (c)   APPLICATION OF RULES. The Committee shall apply all rules of
            procedure and regulations adopted by it in a uniform and
            non-discriminatory manner. Any act of the Committee based on an
            interpretation of this Plan which is made in good faith shall be
            binding and conclusive upon all persons or entities claiming under
            it.

      (d)   REMUNERATION AND EXPENSES. No remuneration shall be paid to any
            Committee member as such. The reasonable expenses of a Committee
            member incurred in the performance of a Committee function shall be
            reimbursed by Reynolds, however.

      (e)   RESIGNATION OR REMOVAL OF COMMITTEE MEMBER AND APPOINTMENT OF
            SUCCESSOR. A Committee member may resign at any time by advance
            written notice to the other Committee members. Reynolds, acting
            through the Board, may remove a Committee member by giving advance
            notice to him and the other Committee members. Reynolds, acting
            through the Board, may fill any vacancy in the membership of the
            Committee and shall give prompt notice thereof to the other
            Committee members.

      (f)   RELIANCE ON INFORMATION PROVIDED BY REYNOLDS. The Committee may rely
            on any oral or written statement made by an authorized
            representative of Reynolds. If the Committee so requests, the
            Reynolds shall certify any such statement.

      (g)   INDEMNIFICATION. Reynolds shall indemnify the Committee, each of its
            members and any employee or director of Reynolds to whom authority
            or responsibility have been delegated under this Section 5
            (collectively, the "INDEMNIFIED GROUP") with respect to any
            liability actually and reasonably incurred (including reasonable
            attorneys fees, expenses, judgments, fines and amounts paid in
            settlement) in connection with any threatened or

                                                                              14

<PAGE>

            pending action, suit or other proceeding relating to any act or
            failure to act in connection with the discharge of their
            responsibilities, but only if:

            (i)   the member of the Indemnified Group acted (or failed to act)
                  in good faith and based on a reasonable belief that the
                  conduct was consistent with the best interest of the Plan; and

            (ii)  with respect to any criminal action or proceeding, they had no
                  reasonable cause to believe that their conduct was unlawful.

      (h)   NOTICES. Any notice or document required to be filed with any person
            under this Plan will be properly filed if delivered or mailed by
            registered mail, postage prepaid, to such person, in care of
            Reynolds, at the address where it maintains its corporate
            headquarters, or at such other place as Reynolds designate from time
            to time in a written notice to Participants. Any notice required
            under the Plan may be waived by the person entitled to notice.

      6. GENERAL CLAIM PROCEDURES. If a Claimant fails to receive a payment to
which he believes he is entitled under this Plan, he may file a written claim
for the payment with the CHRO.

If the claim is wholly or partially denied, written notice of the denial will be
furnished to the Claimant within a reasonable time after the claim is filed.
Each notice denying a claim shall include the following information:

      (a)   the reason or reasons the claim was denied;

      (b)   a specific reference to the provision of the Plan upon which the
            denial is based;

      (c)   a description of any additional material or information necessary
            for the Claimant to perfect the claim; and

      (d)   an explanation of the claim appeal procedures described in Section
            7, below.

      7. APPEAL PROCEDURES. Subject to the requirements of the Section, a
Claimant may appeal the denial of a claim. Appeals must be filed in writing with
the Committee not later than sixty (60) days after the Claimant receives written
notice that the claim has been denied. As a part of the appeal process, the
Claimant may review pertinent documents, submit written comments and request
that a hearing be held to consider the appeal.

The decision to hold a hearing to consider the appeal shall be within the sole
discretion of the Committee, whether or not the Claimant requests a hearing.

                                                                              15

<PAGE>

Except as provided below, each appeal will be decided not later than sixty (60)
days after the Committee receives the written appeal. If, however, special
circumstances require an extension of time for deciding an appeal, a decision
shall be rendered within a reasonable period of time, but not later than one
hundred twenty (120) days after the Committee receives the written appeal and
any additional information submitted by the Claimant in accordance with this
Section.

Appeal decisions shall be written and shall include the specific reason(s) for
the decision and the specific reference(s) to the pertinent provisions of this
Plan on which the decision is based.

      8. SOURCE OF PAYMENTS. All payments under this Plan shall be made solely
from the general assets of Reynolds. No such assets shall be segregated or
placed in trust to secure the performance of the obligations of Reynolds under
this Plan.

Reynolds may, however, in its sole discretion, purchase one or more policies of
insurance with respect to Participant, the proceeds of which may, but need not,
be used by Reynolds to satisfy part or all of its obligations under this Plan.
Reynolds will be the owner of any such policy. Neither Participant nor any other
person or entity claiming through Participant shall have any rights with respect
to any such policy or to the proceeds of any such policy. As a condition of
receiving any benefits under this Plan, Participant, on behalf of himself and
any person or entity claiming through him, agrees to cooperate with Reynolds in
obtaining any insurance policy that Reynolds chooses to purchase with respect to
Participant by submitting to such physical examinations, completing such forms,
and making such records available as may be required from time to time.

The rights under this Plan of Participant and any person or entity claiming
through him shall be solely those of an unsecured, general creditor of Reynolds.
No insurance policy or other asset of Reynolds shall be held by Reynolds for or
on behalf of Participant, or any other person, or constitute security for the
performance of any obligations of Reynolds under this Plan.

      9. SPECIAL PAYMENT PROVISIONS RELATING TO CHANGE IN CONTROL.
Notwithstanding any other provision of this Plan to the contrary, if within
twenty-four (24) months following a Change in Control of Reynolds a
Participant's employment is terminated by Reynolds (other than a "Termination
for Cause" (as defined above)), or a Participant terminates his employment for
Good Reason, and Participant has attained at least one year of service as an
eligible officer of Reynolds (as determined by the CHRO) as of the date of such
Change in Control, the Participant shall be entitled to a lump sum payment equal
to the present value of the benefit he would have received pursuant to Section 2
of the Plan as if the requirements of the Participant's Payment Date had been
satisfied, multiplied by the lesser of one (1), or a fraction:

      (a)   the numerator of which is the sum of:

                                                                              16

<PAGE>

            (i)   the Participant's whole and fractional years of service with
                  Reynolds as of such date of termination, and

            (ii)  the number of whole and fractional years during which the
                  Participant receives severance benefits pursuant to any
                  employment or severance agreement entered into with Reynolds,
                  and

      (b)   the denominator of which is fifteen (15).

If a Participant has commenced receiving benefits under Section 2 of the Plan as
of the date of such Change in Control, the Participant shall be entitled to
receive a lump sum payment equal to the present value of the remaining payments
he would have been entitled to receive pursuant to Section 2. For purposes of
the preceding sentence, the present value of the payments made pursuant to
Section 2 shall be calculated using the interest rate applied by the Pension
Benefit Guaranty Corporation in valuing lump sum distributions that is in effect
on the date of the Participant's termination of employment or the date of the
Change in Control, whichever applies.

      10. INDEPENDENCE OF AGREEMENT. Except as otherwise expressly provided,
this Plan is independent of, and in addition to, any other employment agreement,
employee benefit plan or agreement, or other right that a Participant may have
as a result of his employment by Reynolds. This Plan is not a contract of
employment between any Participant and Reynolds. No provision of this Plan shall
be construed to limit or restrict:

      (a)   the right of Reynolds to discharge any Participant, with or without
            cause; or

      (b)   the right of any Participant to terminate his employment with
            Reynolds.

      11. ACCELERATION OF PAYMENTS. Reynolds reserves the right to accelerate
the payment of any benefits payable under this Plan without the consent of a
Participant, his estate, his designated beneficiaries, or any other person
claiming through the Participant.

      12. LEAVES OF ABSENCE. Reynolds may, in its sole discretion, permit a
Participant to take one or more leaves of absence. No such leave of absence
shall exceed one year, however. For purposes of the Plan, including the
provisions relating to the Service Requirement, a Participant will be considered
employed by Reynolds during an authorized leave of absence.

      13. LEGAL EFFECT. Neither Reynolds nor the Committee makes any
representations or warranties, express or implied, or assumes any responsibility
concerning the legal, tax, or other implications or effects of this Plan.
Reynolds may take all actions required by law with respect to any payments due
under this Plan, or any other

                                                                              17

<PAGE>

compensation or benefits due to any Participant, including withholding of tax
from such payments, compensation or benefits.

      14. FACILITY OF PAYMENT. If, for any reason, the identity or legal
capacity of any person to whom payments are to be made under this Plan is in
doubt, Reynolds may withhold payment until instructed by a final order of a
court of competent jurisdiction. If a Participant or any designated beneficiary
of a Participant is declared legally incompetent, Reynolds may make payment of
any amounts due under this Plan to the person legally charged with his or her
care. Any payment made by Reynolds in good faith shall fully discharge Reynolds
from its obligation with respect to that payment.

      15. ASSIGNMENT OF RIGHTS. Except as expressly permitted by this Plan:

(a)   neither a Participant nor anyone claiming through him may sell, assign,
      transfer or pledge the right to receive any payments to which he is or may
      become entitled under this Plan, and

(b)   benefit payments shall not be subject to the claims of creditors of any
      Participant or anyone claiming through him, or to any legal, equitable, or
      other proceeding or process for the enforcement of such claims.

      16. CORPORATE REORGANIZATION. Reynolds shall not merge or consolidate with
any other entity unless and until such other entity expressly assumes the
obligations of Reynolds under this Plan.

      17. SECTION HEADINGS. The Section headings used in this Plan are for
convenience of reference only, and shall not be considered in construing this
Plan.

      18. AMENDMENT AND TERMINATION. Notwithstanding any contrary Plan
provision:

      (a)   the Company reserves the right at any time, by action of the Board,
            to amend or terminate this Plan; provided, however, that no such
            amendment or termination shall reduce the benefit payable to any
            Participant whose employment with the Company and all related
            Companies terminated under circumstances entitling him or his
            Beneficiary to a Plan benefit prior to the amendment or termination
            date; and

      (b)   if the Plan is terminated, the Committee may elect, in its sole
            discretion, to pay any benefit then payable under the Plan in the
            form of a single lump-sum payment of actuarially equivalent value.

      19. SPECIAL PROVISIONS RELATING TO INDIVIDUAL PARTICIPANTS. Special
provisions relating to individual Participants may from time to time be added to
the

                                                                              18

<PAGE>

Plan by a schedule which shall be attached to and become a part of this Plan. To
the extent that any such schedule conflicts with any other Plan provision, the
terms of the schedule shall control.

      20. MISCONDUCT. If the Committee determines, based upon evidence
satisfactory to it, that any Participant:

      (a)   has engaged in misconduct involving dishonesty which results in
            financial loss to the Company or a Related Company or malicious
            destruction of the property of the Company or a Related Company, or

      (b)   has been convicted of a felony committed and arising out of his
            employment by the Company or a Related Company,

                                       AND

      (c)   as a result of conduct describe in (a) or (b), above, the
            Participant's employment with the Company or a Related Company has
            been terminated,

the Participant, and any person claiming through the Participant, shall forfeit
all rights to any Plan benefits. Any such determination by the Committee shall
be final and conclusive.

      21. NON-COMPETITION PROVISION. If the Committee determines that a
Participant:

      (a)   is employed by a competitor of the Company or a Related Company, or

      (b)   is engaged, directly or indirectly, in competition with or in an
            occupation detrimental to the interests of the Company or a Related
            Company,

                                       AND

      (c)   if, after due notice, the Participant continues such activity,

the Committee shall suspend payments to or on behalf of the Participant, and the
Participant, and any person claiming through the Participant, shall forfeit all
rights to any Plan benefit. Any such determination shall be based on evidence
satisfactory to the Committee and shall be final. Any written statement of an
elected officer of the Company that employment with another employer is not in
competition with the Company or a Related Company or detrimental to their
respective interests, shall be conclusive and binding, except as applied to a
claim by the officer making the statement.

                                                                              19

<PAGE>

      22. BINDING EFFECT. Except as otherwise provided in Section 15, this Plan
shall be binding upon Participant and his heirs, executors, administrators,
assigns and upon anyone claiming through him, and upon Reynolds and its
successors and assigns.

      23. GOVERNING LAW. The laws of the State of Ohio shall, to the extent not
preempted by applicable Federal law, govern the construction of this Plan.

      24. SEVERABILITY. If any provision of the Plan is held invalid or
unenforceable by a court of competent jurisdiction, the determination of
invalidity or unenforceability of that provision shall not affect any other Plan
provision, and the Plan shall be construed and enforced as if the invalid or
unenforceable provision had not been included.

      25. EFFECT ON INDIVIDUAL SALARY CONTINUATION AGREEMENTS. The Company
previously provided non-qualified deferred compensation benefits to eligible
employees pursuant to individual agreements which, collectively, comprised the
Officers Salary Continuation Plan. The benefits provided under this Plan replace
those previously provided under the Officers Salary Continuation Plan. By
accepting any payment provided pursuant to this Plan, the recipient irrevocably
waives, on his own behalf and on behalf of each of his beneficiaries, any right
to payment under any individual agreement comprising a part of the Officers
Salary Continuation Plan. Notwithstanding any contrary Plan provision, the
Company reserves the right to require that any person, as a condition to
receiving any Plan benefit, execute such documents as it reasonably shall
request waiving any rights he or she may have pursuant to any individual
agreement comprising a part of the Officers Salary Continuation Plan.

TO EVIDENCE THE TERMS OF THIS PLAN, Reynolds, by a duly authorized officer, has
executed this document on the day and year first above written.

                                               THE REYNOLDS AND REYNOLDS COMPANY

                                               By:
                                                  ------------------------------
                                                  Timothy Bailey
                                                  VP Corporate Human Resources

                                                                              20

<PAGE>

                                   SCHEDULE I
             SPECIAL PROVISIONS RELATING TO INDIVIDUAL PARTICIPANTS
                 WITH WHOM THE COMPANY HAS EMPLOYMENT AGREEMENTS

This Schedule I is a part of The Reynolds and Reynolds Company Supplemental
Retirement Plan (the "PLAN") and specifies special provisions applicable to one
or more individual Participants with whom the Company has employment agreements.
To the extent that any such employment agreement provides for Plan benefits
greater than those provided under the regular Plan provisions, the provisions of
the employment agreement shall govern the Plan benefits provided with respect to
that Participant. If the regular Plan provisions provide benefits greater than
those required under any such employment agreement, the regular Plan provisions
shall govern the benefits provided with respect to that Participant.
Notwithstanding any contrary provision of the Plan, including this Schedule,
there shall be no duplication of benefits provided with respect to a Participant
under the regular Plan provisions and the Plan benefits specified in his or her
employment agreement.

Section I - Special Provisions Which Apply To TERRY D. CARDER

      The special provisions relating to Mr. Carder are set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 6th day of November,
      1984 by and between The Reynolds and Reynolds Company and Terry D. Carder,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

Section II - Special Provisions Which Apply To BUDD L. TIPPLE

      The special provisions relating to Mr. Tipple are set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 1st day of January,
      1985 by and between The Reynolds and Reynolds Company and Budd L. Tipple,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

Section III - Special Provisions Which Apply To GEORGE D. MOLINSKY

      The special provisions relating to Mr. Molinsky set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 1st day of January,
      1985 by and between The Reynolds and Reynolds Company and George D.
      Molinsky, which is on file with the Secretary of the Company and which may
      be amended from time-to-time.

Section IV - Special Provisions Which Apply To WAYNE C. JIRA

      The special provisions relating to Mr. Jira are set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 1st day of January,
      1985 by and

                                                                              21

<PAGE>

      between The Reynolds and Reynolds Company and Wayne C. Jira, which is on
      file with the Secretary of the Company and which may be amended from
      time-to-time.

Section V - Special Provisions Which Apply To ROBERT C. NEVIN

      The special provisions relating to Mr. Nevin are set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 1st day of October,
      1986 by and between The Reynolds and Reynolds Company and Robert C. Nevin,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

Section VI - Special Provisions Which Apply To DAVID R. HOLMES

      The special provisions relating to Mr. Holmes are set forth in the
      EMPLOYMENT AGREEMENT made and entered into as of the 1st day of January,
      1985 by and between The Reynolds and Reynolds Company and David R. Holmes,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

                                                                              22

<PAGE>

                                   SCHEDULE II
             SPECIAL PROVISIONS RELATING TO INDIVIDUAL PARTICIPANTS
            WITH WHOM THE COMPANY DOES NOT HAVE EMPLOYMENT AGREEMENTS

This Schedule II is a part of The Reynolds and Reynolds Company Supplemental
Retirement Plan (the "PLAN") and specifies special provisions that apply to one
or more individual Participants with whom the Company does not have employment
agreements.

Section I - Special Provisions Which Apply To EUGENE WEFLER

      Eugene Wefler, who retired from the Company's employ on December 1, 1986
      under circumstances not entitling him to any benefit under the Plan, shall
      receive a Pension under the Plan of Four Hundred Dollars ($400.00) per
      month payable monthly (as of the first day of each calendar month) for his
      lifetime only. Such Pension shall be subject to all generally applicable
      provisions of the Plan; provided, however, that for purposes of Section
      18, Eugene Wefler shall be treated as having terminated employment under
      circumstances entitling him to a Pension under the Plan.

Section II - Special Provisions Which Apply To LEE C. LEWIS

      Lee C. Lewis shall be entitled to receive "Social Security bridge"
      payments under the Plan of Seven Hundred Twenty-Two Dollars and Forty
      Cents ($722.40) per month, payable monthly beginning December 1, 1987 and
      ending with the final payment on November 1, 1994. Such payments shall be
      subject to all generally applicable provisions of the Plan; provided,
      however, that for purposes of Section 18, Lee C. Lewis shall be treated
      with respect to such payments as having terminated employment under
      circumstances entitling him to a Pension under the Plan.

Section III - Special Provisions Which Apply To RODNEY D. BROWN

      Rodney D. Brown shall be entitled to benefits under the Plan as set forth
      in the Settlement Agreement made and entered into as of the 9th day of
      August, 1990 by and between The Reynolds and Reynolds Company and Rodney
      D. Brown, which is on file with the Secretary of the Company and which may
      be amended from time-to-time.

                                                                              23

<PAGE>

Section IV - Special Provisions Which Apply To ROBERT COPENHEFER

      Robert Copenhefer shall be entitled to retire under the Plan as of January
      1, 1991 and receive a pension under the Plan of Two Thousand Eight Hundred
      Seventy Nine-Dollars and Ninety Cents ($2,879.90) per month payable
      monthly (as of the first day of each calendar month) for his lifetime
      only. Such pension shall be subject to all generally applicable provisions
      of the Plan, including any generally applicable right to elect an
      alternate form of payment under the Plan as then in effect; provided,
      however, that for purposes of Section 18, Robert Copenhefer shall be
      treated as having terminated employment under circumstances entitling him
      to a Pension under the Plan.

Agreement effective as of December, 1990

                                                                              24

<PAGE>

                                  SCHEDULE III
             SPECIAL PROVISIONS RELATING TO INDIVIDUAL PARTICIPANTS
                 WITH WHOM THE COMPANY HAS RETIREMENT AGREEMENTS

This Schedule III is a part of The Reynolds and Reynolds Company Supplemental
Retirement Plan (the "PLAN") and specifies special provisions that apply to one
or more individual Participants with whom the Company has retirement agreements.
The provisions of each such Participant's retirement agreement shall govern the
amount and form of benefits provided under the Plan with respect to that
Participant, and no benefits shall be payable under the regular Plan provisions
with respect to that Participant. However, be subject to all generally
applicable provisions of the Plan, except that such benefits shall not be
subject to Section 20 and Section 21, that for purposes of Section 18, each such
Participant shall be treated with respect to such benefits as having terminated
employment under circumstances entitling him to a Pension under the Plan, and
that Section 8 shall not restrict the establishment of the trust contemplated by
such retirement agreements.

Section I - Special Provisions Which Apply To LEWIS CLEMMER

      The special provisions relating to Mr. Clemmer are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Lewis Clemmer, which
      is on file with the Secretary of the Company and which may be amended from
      time-to-time.

Section II - Special Provisions Which Apply To JOE CRIST

      The special provisions relating to Mr. Crist are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Joe Crist, which is
      on file with the Secretary of the Company and which may be amended from
      time-to-time.

Section III - Special Provisions Which Apply To ROBERT E. GORDON

      The special provisions relating to Mr. Gordon are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Robert E. Gordon,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

Section IV - Special Provisions Which Apply To C. EUGENE HAYDEN

      The special provisions relating to Mr. Hayden are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and C. Eugene Hayden,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

                                                                              25

<PAGE>

Section V - Special Provisions Which Apply To RALPH JOHNSON

      The special provisions relating to Mr. Johnson are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Ralph Johnson, which
      is on file with the Secretary of the Company and which may be amended from
      time-to-time.

Section VI - Special Provisions Which Apply To FRANK LABOSCO

      The special provisions relating to Mr. Labosco are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Frank Labosco, which
      is on file with the Secretary of the Company and which may be amended from
      time-to-time.

Section VII - Special Provisions Which Apply To WILLIAM R. NEWCOMB

      The special provisions relating to Mr. Newcomb are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and William R. Newcomb,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

Section VIII - Special Provisions Which Apply To ISAAC E. PATRICK

      The special provisions relating to Mr. Patrick are set forth in the
      Retirement Agreement made and entered into as of the 1st day of July, 1987
      by and between The Reynolds and Reynolds Company and Isaac E. Patrick,
      which is on file with the Secretary of the Company and which may be
      amended from time-to-time.

                                                                              26

<PAGE>

                                  SCHEDULE IV:
                   SPECIAL PROVISIONS RELATING TO INDIVIDUALS
                 WITH WHOM THE COMPANY HAS RETIREMENT AGREEMENTS

This Schedule IV is a part of The Reynolds and Reynolds Company Supplemental
Retirement Plan (the "PLAN") and specifies special provisions applicable only to
David Holmes, Lloyd Waterhouse and Dale Medford (the "ELIGIBLE GROUP") regarding
payment of certain benefits in the form of an optional lump sum.

SECOND OPTIONAL LUMP SUM PAYMENT

By written notice received by the Chief Human Resources Officer of the
Corporation at least twelve (12) months prior to becoming eligible for payment
of Plan benefits, any member of the Eligible Group may elect to receive payment
as follows:

      (A)   An initial payment equal to the Lump Sum Amount (as defined below);
            plus

      (B)   A single-life annuity, which has a present value which is
            actuarially equivalent to the difference, if any, between:

            (i)   the present value of the Participant's Plan benefit (reduced
                  actuarially to reflect any amounts payable as a lump sum
                  pursuant to paragraph 2(B)(i)(a) of the Plan), if paid as a
                  single life annuity for the life of the Participant (the
                  "ADJUSTED PLAN BENEFIT"); and

            (ii)  the Lump Sum Amount;

            payable according to the generally applicable Plan provisions. Any
            present values shall be determined based on the actuarial
            assumptions set forth below.

      (C)   The LUMP SUM AMOUNT shall be determined as follows:

            (i)   First, determine the applicable Target Safety Net Amount from
                  the table in Schedule V. Next, increase the Target Safety Net
                  Amount for each month of employment after October 1, 2000 by
                  one-twelfth (1/12) of an inflation assumption which shall be
                  equal to the greater of:

                  (1)      three percent (3%); or

                  (2)      the inflation assumption used for purposes of
                           Financial Accounting Standard 87 to project the
                           maximum compensation and benefits

                                                                              27

<PAGE>

                           limits for that fiscal year for the Qualified Pension
                           Plan, reduced by one and one-half percent (1.5%).

                  One (1) day of employment during a month is sufficient to earn
                  the inflation adjustment for that month. No adjustment for
                  inflation will be made after the month of termination,
                  however.

                  The result is the amount of a hypothetical, annual,
                  single-life annuity payable for the life of the Participant.
                  The amount of this hypothetical annuity is referred to below
                  as the "SUPPLEMENTAL PLAN TARGET BENEFIT".

            (ii)  Next, convert the lesser of the Supplemental Plan Target
                  Benefit and the Adjusted Plan Benefit to a lump sum, using the
                  following actuarial assumptions:

                  (1)      An interest rate equal to the sum of: (a) the
                           discount rate used in preparing the Financial
                           Accounting Standard 87 report for the Qualified
                           Pension Plan for the Company's fiscal year in which
                           the lump sum distribution is paid; and (b) two
                           percent (2%).

                  (2)      The length of the payment is twenty and five-tenths
                           (20.5) years increased by six-tenths (.6) of a year
                           for each year (or portion thereof) that the payment
                           date precedes age sixty-two (62) or decreased by
                           six-tenths (.6) of a year for each year (or portion
                           thereof) that the payment date follows age sixty-two
                           (62).

                  (3)      The annual annuity amount is payable in equal monthly
                           installments, as of the first day of each month.

            (iii) The result of the calculations described in (ii), next above,
                  is the Lump Sum Amount.

                                                                              28

<PAGE>

                                   SCHEDULE V
                    GRANDFATHERED PAYMENT AMOUNTS AND OPTIONS
  FOR CERTAIN INDIVIDUALS COVERED BY INDIVIDUAL SALARY CONTINUATION AGREEMENTS
                  PRIOR TO THE OCTOBER 1, 2002 PLAN RESTATEMENT

Prior to October 1, 2002, the individuals listed below (the "PROTECTED GROUP")
participated in the Officers Salary Continuation Plan pursuant to individual
agreements which provided:

      (a)   a benefit expressed as a multiple of annual compensation, payable in
            ten annual installments (the "OLD SALARY CONTINUATION BENEFIT"), and

      (b)   a different method of determining the dollar amount used in the
            calculation described in 2(b)(iii)(A)(2) (the "TARGET SAFETY NET
            AMOUNT").

Effective October 1, 2002, the Salary Continuation Benefit was replaced by Part
1 of the benefit described in clause 2(a)(i) of the Plan (the "NEW BENEFIT"),
and a uniform dollar amount established for purposes of the calculation
described in 2(b)(iii)(A)(2) (the "NEW DOLLAR AMOUNT").

Notwithstanding any contrary Plan provision, the Protected Group shall retain
the right to elect to receive the Old Salary Continuation Benefit in lieu of the
New Benefit, and to have the Lump Sum Amount in 2(b)(iii) calculated using the
Old Salary Continuation Benefit and the Target Safety Net Amount. Any such
elections shall be made in accordance with procedures similar to those
applicable to the election described in 2(b)(ii), as established by the
Committee.

For purposes of the preceding calculations, annual compensation, the applicable
multiple and the Target Safety Net Amount shall be determined based on the
following table.

<TABLE>
<CAPTION>
                                                           Target Safety Net Amount
       Name                         Multiple               in Thousands                 Annual Salary
------------------                  ---------             -------------------------    ---------------
<S>                                 <C>                   <C>                          <C>
Almoney, Jeffery                       1.0                           75                  248,000.07

Alten, Jim                             1.0                           75                  251,200.36

Bailey, Tim                            1.5                           75                  296,000.22

Behm, Mike                             1.0                           75                  196,800.03
Berry, Michael                         1.0                           75

Bolka, Ed                              1.0                           75                  267,200.13
</TABLE>

                                                                              29

<PAGE>
<TABLE>
<S>                                 <C>                  <C>                           <C>
Boyer, Rick                         1.0                   75                           220,800.36

Brown, Mark                         1.5                  100                           305,600.26

Collins, Scott                      1.0                   75                           256,000.16

Corrao, Bill                        1.0                   75                           264,000.00

Delong, Steve                       1.0                   75                           243,200.26

Dittman, Dan                        1.5                  100                           328,000.00

Dutch, Dave                         1.0                   75                           288,000.00

Falknor, Debra                      1.0                   75                           232,000.10

Gapinski, Mike                      1.0                   75                           272,000.36

Gerhard, Stephen                    1.0                   75                           256,000.10

Grassman, Raymond                   1.0                   75                           208,000.00

Guthrie, Paul                       1.0                   75                           225,600.13

Hangen, Steve                       1.0                   75                           248,000.03

Harvey, Randy                       1.0                   75                           360,000.00

Kirwan, Jerry                       1.0                   75                           190,400.29

Medford, Dale                       2.0                  250                           520,000.00

Mulcaney, Teri                      1.0                   75                           176,000.03

Rollins, David (Mick)               1.0                   75                           220,800.32

Shave, John                         1.0                   75                           240,000.39

Suttmiller, Tom                     1.5                  100                           324,800.32

Swann, Richard                      1.0                   75                           208,000.00

Urs, Anil                           1.0                   75                           187,200.00
</TABLE>

                                                                              30

<PAGE>

<TABLE>
<S>                                 <C>                  <C>                         <C>
Ventura, Doug                       1.5                   75                           320,000.10

Von Pusch, Rick                     1.0                   75                           176,000.03

Wall, Carolyn                       1.0                   75                           184,000.13

Waterhouse, Lloyd                   2.0                  250                         1,069,668.32

Wells, Kevin                        1.0                   75                           193,600.16

West, Gillis                        1.0                   75                           232,000.22

Wrona, Rick                         1.0                   75                           248,000.00
</TABLE>

                                                                              31EXHIBIT 10.19

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES, OR
DELIVERY OF AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER OF THESE SECURITIES THAT SUCH REGISTRATION IS NOT REQUIRED.

                            COLLEGE PARTNERSHIP INC.

                     10% SECURED CONVERTIBLE PROMISSORY NOTE

                                                                  US $250,000.00

     THIS PROMISSORY NOTE (this "Note") is made as of this 15th day of June,
2004, by College Partnership Inc., a corporation incorporated under the laws of
Nevada ("Maker"), in favor of DCOFI Master LDC or its assigns ("Payee").

                                    RECITALS

     WHEREAS, Maker requires the financing provided pursuant to this Note and
certain other similar notes issued concurrently herewith for an aggregate
collective principal amount of $500,000 (collectively, the "Bridge Notes"), for
working capital and general corporate purposes, including investor and public
relations funding.

     WHEREAS, in order to secure the payment obligation of the Maker hereunder,
the Maker and the Payee simultaneously herewith are executing and delivering a
Security Agreement dated as of the date hereof (the "Security Agreement").

                                 NOTE AGREEMENT

     NOW, THEREFORE, for and in consideration of the mutual agreements herein
contained, and for and in consideration of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Maker and Payee hereby covenant and agree as set forth below.

     FOR VALUED RECEIVED, Maker hereby promises to pay to the order of Payee,
the principal sum of TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000.00), or
such lesser amount as may from time to time be otherwise owing from Maker to
Payee under this Note, together with interest on the principal amount from time
to time outstanding hereunder accrued from the date hereof at the rate and in
the manner set forth below. All payments of principal or interest or both shall
be paid as set forth below, and each such payment shall be made in lawful money
of the United States of America.

     This Note is subject to the following terms and conditions:

     1. Payments of Principal and Interest.

          (a) Repayment. Unless otherwise repaid or converted as provided
herein, the entire unpaid principal balance of this Note, together with all
accrued but unpaid interest thereon, shall be due and payable in full on June
15, 2005 (the "Maturity Date"). Payee's conversion rights shall be extinguished
upon payment in full of all principal and accrued interest and all other amounts
due hereunder on or after the Maturity Date. Interest shall accrue and be
payable in arrears on a quarterly basis on September 15,2004, December 15,2004,
March 15,2005 and the Maturity Date (each an "Interest Payment Date").

          (b) Late Fee Upon Failure To Repay. If Maker fails to repay this Note
on or prior to the Maturity Date or such earlier date resulting from the
acceleration of the date upon which the principal amount of this Note shall be
payable in accordance with the terms of this Note (due to an Event of Default or
otherwise), the interest rate on the outstanding principle amount, accrued and
unpaid interest and all other amounts due hereunder shall increase to a rate of
20% per annum, until all amounts owing on this Note are repaid in full.

          (c) Optional Prepayment. Maker shall be entitled, at its option, to
prepay all, but not less than all, of the outstanding principal amount,
interest, late fees, penalties and all other amounts due hereunder; provided,
however Maker shall give the Payee not less than ten (10) days prior written
notice of such prepayment; provided, further however, that Payee shall have the
right but not the obligation during such ten (10) day notice period to convert
the entire outstanding principal balance of this Note, together with all accrued
but unpaid interest due hereunder into shares of capital stock of the Maker
pursuant to the terms of Section 3 hereof.

          (d) Manner of Payment. Maker shall make payment in accordance with the
terms of this Note no later than 5:30 p.m. (New York City time) on the date when
due, in immediately available funds. Each payment of principal and of interest
shall be paid by Maker without setoff or counterclaim to Payee at Payee's
address set forth in Section 15, or to such other location or accounts within
the United States as Payee may specify in writing to Maker from time to time, in
immediately available funds.

          (e) Cancellation. After all amounts owed on this Note have been paid
in full and/or all amounts due under this Note has been converted in full into
common stock $.001 par value of the Maker ("Common Stock") !is provided in
Section 3, this Note will be surrendered to Maker for cancellation and will not
be reissued.

     2. Interest Rate. This Note will bear interest at the rate of ten percent
(10%) per year, compounded monthly from the date hereof to and including the
date of payment or conversion of this Note. Interest on this Note shall be
calculated on the basis of actual days elapsed and a 360-day year of twelve
3D-day months.

     3. Conversion into Equity of Maker.

          (a) Conversion. The holder of this Note shall have the right at its
sole election: (i) at any time (including without limitation during the notice
periods set forth in Section l(c) and Section 4 hereof) to convert all, or a
portion, of the principal amount of this Note plus accrued interest thereon,
late fees and other amounts due hereunder or (ii) on an Interest Payment Date,
to convert all accrued interest, in each case into shares of Common Stock at the
price of $0.50 per share of Common Stock (subject to proportional adjustments
for stock splits, stock dividends and the like). Upon such conversion, Payee
shall receive the same rights as an other holders of Common Stock in Maker and
shall be treated for all purposes as the record holder of the shares of Common
Stock issued upon such conversion (the "Shares").

          (b) Mechanics and Effect of Conversion. Upon the conversion of the
principal amount as provided herein, in lieu of any fractional shares of Common
Stock to which Payee would otherwise be entitled, Maker shall pay cash equal to
such fraction multiplied by the last reported sale price of a share of Common
Stock on the Trading Market on which the Common Stock is then listed or quoted
for trading on the Trading Day prior to the date of conversion (or, if the
Common Stock is not then listed or quoted for trading on any Trading Market, the
fair market value of a share of Common Stock as determined by Maker in good
faith). Upon conversion of this Note in full pursuant to this Section 3, Payee
shall surrender this Note, duly endorsed, at the principal offices of Maker or
any transfer agent for Maker. Payee shall also execute and deliver any ancillary
agreements as may be required or reasonably requested to effect the conversion
of this Note. Maker shall pay any and all issue and other taxes that may be
payable in respect of any issue or delivery of Shares pursuant to this Section
3.. As used in this Section 3(b ), the term "Trading Market" means the following
markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question: the OTC Bulletin Board, the American Stock Exchange,
the New York Stock Exchange, the Nasdaq National Market or the Nasdaq SmallCap
Market, and the term "Trading Day" means (i) a day on which the Common Stock is
traded on a Trading Market, or (ii) if the Common Stock is not quoted on a
Trading Market, a day on which the Common Stock is quoted in the over the
counter market as reported by the National Quotation Bureau Incorporated (or any
similar organization or agency succeeding to its functions of reporting price);
provided, that in the event that the Common Stock is not listed or quoted as set
forth in clauses (i) and (ii) hereof, then Trading Day shall mean a business
day.

          (c) Reservation of Shares. Maker shall at all times reserve and keep
available out of its authorized equity securities, solely for the purposes of
issuance upon the conversion of this Note as herein provided, such -number of
Shares as shall then be issuable upon the full conversion of this Note. Maker
covenants that it shall cause all Shares which shall be so issued to be duly and
validly issued and fully paid and nonassessable and free from an taxes, liens
and charges with respect to the issuance thereof, and, without limiting the
generality of the foregoing, Maker covenants that it will from time to time take
all such action as may be required to assure that the par value per share of the
equity securities will at all times be equal to or less than the conversion
price. Maker will take all such action as may be necessary to assure that all
such Shares may be so issued without violation of any applicable law or
regulation.

          (d) Rights Prior to Conversion. Payee shall have no equity interest in
Maker or any voting, dividend, liquidation or dissolution rights with respect to
any equity securities of Maker solely by reason of this Note. Furthermore, prior
to the conversion, as set forth in this Section 3, and the issuance and delivery
of a certificate or certificates evidencing the Shares purchased pursuant to the
conversion, Payee shall have no interest in, or any voting, dividend,
liquidation or dissolution rights with respect to any equity securities of
Maker.

          (e) Piggyback Registration Rights in Maker. If, at any time, there is
not an effective registration statement covering the resale all of the shares of
capital stock of the Maker issued pursuant to or in connection herewith
(including without limitation 250,000 shares of Common Stock issued as directed
by Duncan Capital LLC on or about the date of issuance of this Note)
(Collectively, the "Registrable Securities"), and Maker shall determine to
prepare and file with the Securities and Exchange Commission (the "Commission")
a registration statement relating to an offering for its own account or the
account of others under the Securities Act of 1933, as amended (the "Securities
Act"), of any of its equity securities (other than on Form S-4 or Form S-8 (each
as promulgated under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with stock option
or other employee benefit plans), then Maker shall send to Payee a written
notice of such determination and, if within ten (10) days after receipt by Payee
of such notice, Maker shall receive a request in writing from Payee, Maker shall
include in such registration statement all or any part of such Registrable
Securities Payee requests to be registered at no cost to Payee (other than
underwriting discounts, fees and commissions). Payee (or its designee(s)) shall
also be provided with such other rights, and Maker shall have such obligations,
as customarily accompany investor piggyback registration rights, including,
without limitation, the right of Payee to customary indemnification by Maker,
Maker's obligation to prepare and file with the Commission such amendments and
supplements to such registration statement as may be necessary to keep such
registration statement effective until the disposition of all securities covered
by such registration statement, the obligation of Maker to register and qualify
the securities covered by such registration statement under applicable state
securities and blue sky laws, ,the obligation of Maker to cause the securities
covered by such registration statement to be listed or quoted on the Trading
Market on which Maker's securities are then listed or quoted and the obligation
of Maker to cause to be provided customary legal opinions and comfort letters of
its independent certified accountants if requested in connection with a sale
pursuant to such registration statement). Notwithstanding the foregoing, if a
registration involves an underwritten offering, and the lead managing
underwriter shall advise Maker that the amount of securities to be included in
the offering exceeds the amount which can be sold in the offering, the number of
securities owned by Payee to be included in the offering shall be eliminated or
reduced as required by the managing underwriter.

          (f) Registration Right in Maker.

                    (i) No later than one hundred twenty (120) days following
          the date of issuance of this Note (assuming no registration statements
          have been filed as provided in Section 3(e) that already cover the
          resale of all of the Registrable Securities) (the "Filing Date"),
          Payee shall have the right to demand that Maker prepare and file with
          the Commission a registration statement (the "Registration Statement")
          covering the resale of all of the Registrable Securities not included
          in any another effective registration statement of the Company, which
          offering shall be made on a continuous basis pursuant to Rule 415
          under the Securities Act. The Registration Statement required
          hereunder shall be on Form SB-2 (except if Maker is not then eligible
          to register for resale the Registrable Securities on Form SB-2, in
          which case the Registration Statement shall be on another appropriate
          form in accordance herewith). Maker shall use its commercially
          reasonable efforts to cause the Registration Statement to be declared
          effective under the Securities Act as promptly as possible after the
          filing thereof and shall use its commercially reasonable efforts to
          keep the Registration Statement continuously effective under the
          Securities Act until the date when all Registrable Securities covered
          by the Registration Statement (a) have been sold pursuant to the
          Registration Statement or an exemption from the registration
          requirements of the Securities Act or (b) may be sold without any
          volume or other restrictions pursuant to Rule 144(k) (the
          "Effectiveness Period"). Payee (or its designee(s) shall also be
          provided with such other rights, and Maker shall have such
          obligations, as customarily accompany investor registration rights,
          including, without limitation, the right of Payee to customary
          indemnification by Maker, Maker's obligation to prepare and file with
          the Commission such amendments and supplements to such registration
          statement as may be necessary to keep such registration statement
          effective until the disposition of all securities covered by such
          registration statement, the obligation of Maker to register and
          qualify the securities covered by such registration statement under
          applicable state securities and blue sky laws, the obligation of Maker
          to cause the securities covered by such registration statement to be
          listed or quoted on the Trading Market on which Maker's securities are
          then listed or quoted and the obligation of Maker to cause to be
          provided customary legal opinions and comfort letters of its
          independent certified accountants if requested in connection with a
          sale pursuant to such registration statement).

                    (ii) Filing Default Liquidation Damages. If a Registration
          Statement is not filed on or prior to the Filing Date if required
          under Section 3(f)(i) hereof, then Maker shall pay to Payee an amount
          in cash, until the earlier of the date that the Registration Statement
          is filed and the Registrable Securities may be sold pursuant to Rule
          144(k), as liquidated damages and not as a penalty, (i) one (1%)
          percent of the aggregate principal amount of this Note for the first
          thirty (30) days (or a pro rata portion of one (1 %) percent for any
          part thereof) following Maker's failure to file, and (ii) an
          additional one (1 %) percent of the aggregate principal amount of this
          Note for each thirty (30) day period subsequent thereto (or a pro rata
          portion of one (1'%) percent for any part thereof), such payment(s) to
          be made in immediately available funds no later than five (5) days
          after the first date of each 30 day period (or any part thereof), as
          the case may be, during Maker's failure to file.

                    (iii) Effectiveness Default Liquidation Damages. In addition
          to any liquidated damages paid, accrued and/or to be paid pursuant to
          Section 3(f)(ii), if (1) the Registration Statement is not declared
          effective on or prior to one hundred and fifty (150) days following
          the issuance of the Note, or (2) if the Registration Statement has
          been declared effective and subsequent thereto is not effective (or
          otherwise does not permit the resale of the Registrable Securities
          covered thereby) for any period of time until the date Payee no longer
          owns any Registrable Securities (an "Effectiveness Default"), then
          Maker shall pay to Payee an amount in cash until the date the
          Registration Statement is declared effective (and permits the resale
          of the Registrable Securities covered thereby) (or if previously
          declared effective until the date the Registration Statement becomes
          effective (and otherwise permits the resale of the Registrable
          Securities covered thereby) again), as liquidated damages and not as a
          penalty, equal to (i) one (1 %) percent of the aggregate principal
          amount of this Note for the first thirty (30) days (or a pro rata
          portion of one (1 %) percent for any part thereof), and (ii) an
          additional one (1 %) percent of the principal amount of this Note for
          each thirty (30) day period subsequent thereto (or a pro rata portion
          of one (1 %) for any part thereof) until the earlier of such date (a)
          the Registration Statement is declared effective (or if previously
          declared effective until the date the Registration Statement becomes
          effective (and otherwise permits the resale of the Registrable
          Securities covered thereby) again), and (b) the Registrable Securities
          may be sold pursuant to Rule 144(k). Any such payment(s) shall be made
          in immediately available funds no later than five (5) days after the
          first day of each 30 day period of each such Effectiveness Default.

          (g) No Inconsistent Agreements. Maker agrees not to enter into any
other agreement providing which is inconsistent with the registration rights
provisions of this Note or contains registration rights provisions which are
senior to the registration rights granted in this Note.

     4. Mandatorv Repavment. Unless Payee chooses to convert this Note, Maker
shall repay the outstanding principal of this Note, all accrued and unpaid
interest and all penalties, damages and fees due hereunder or in connection
herewith upon the sooner of the Maturity Date or ten (10) days following written
notice to Payee that Maker has received proceeds of $1,000,000 or more,
resulting from:

          (a) the sale (in one or more transactions) of any asset(s) (a "Asset
Sale"); or

          (b) the consummation of equity or debt financings or series of
financings (a "Qualified Financing"); provided, however, that this Section 4(b)
shall not apply to any financings obtained from employees, officers,
shareholders, consultants (with whom the Maker has a current consulting
relationship), directors or affiliates of the Maker.

provided, further, however such proceeds shall not include any amounts received
by the Maker from a financing involving solely the Maker's accounts receivables
(the "Account Receivable Financing") or any other transaction with a financial
institution conducted in the ordinary course of the Maker's business and
consistent with past practice, provided, further however, in the case of the
occurrence of an event set forth in Section 4( a) or (b) hereof, the Payee shall
have the right but not the obligation during such ten (10) day notice period to
convert all or part of the entire outstanding principal balance of this Note,
together with all or part of the accrued but unpaid interest due hereunder into
shares of capital stock of the Maker pursuant to the terms of Section 3 hereof.

     5.Representations and Warranties

          (a) Dulv Incorporated. Maker and each of its subsidiaries, all of
which are set forth on Schedule 5(a) attached hereto (the "Subsidiaries"), is a
corporation duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation, with the requisite power and
authority to own, lease and operate its respective properties and conduct its
business as presently conducted or proposed to be conducted, and is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions where the ownership or leasing of its properties or the conduct of
its business requires such qualification, except where the failure to be so
qualified would not, individually or in the aggregate, have a Material Adverse
Effect (as defined below). Opposite the name of the Maker and the Subsidiaries
on Schedule 5(a) hereto is the jurisdiction of incorporation for the Maker and
each of its Subsidiaries and the jurisdiction(s) in which each such entity
maintains an office or material assets and/or is qualified to do business.

          (b) Corporate Power. The execution and delivery of this Note, the
Security Agreement and any other document or instrument executed in connection
herewith or therewith (the "Transaction Documents") are within Maker's powers
and have been duly authorized by all necessary corporate and, if required,
stockholder action. The Transaction Documents have been duly executed and
delivered by Maker and each constitutes a legal, valid and binding obligation of
Maker enforceable in accordance with its terms, except as may be limited by
applicable ban1cruptcy, insolvency, reorganization, moratorium and other similar
laws affecting the enforcement of creditors' rights generally and general equity
principles (whether considered in a proceeding in equity or at law).

          (c) Capitalization. The capitalization of the Company is as set forth
Schedule 5( c ) attached hereto. Except as set forth on Schedule 5( a) attached
hereto, the Company does not have any subsidiaries or own directly or indirectly
any of the capital stock or other equity or long-term debt securities of or have
any equity interest in any other person; all of the outstanding shares of
capital stock of the Company and the Subsidiaries have been duly authorized and
validly issued, are fully paid and nonassessable and were not issued in
violation of any preemptive or similar rights and are owned free and clear of
all liens, encumbrances, equities, and restrictions on transferability (other
than those imposed by the Securities Act and the state securities or "Blue Sky"
laws) or voting. All of the outstanding shares of capital stock of the
Subsidiaries are owned, directly or indirectly, by the Company. Except as set
forth on Schedule 5 ( c ) attached hereto, no options, warrants or other rights
to purchase from the Company or any Subsidiary, agreements or other obligations
of the Company or any Subsidiary to issue or other rights to convert any
obligation into, or exchange any securities for, shares of capital stock of or
ownership interests in the Company or any Subsidiary are outstanding. Except as
set forth on Schedule 5( c), there is no agreement, understanding or arrangement
among the Company or any Subsidiary and each of their respective stockholders or
any other person relating to the ownership or disposition of any capital stock
of the Company or any Subsidiary or the election of directors of the Company or
any Subsidiary or the governance of the Company's or any Subsidiary's affairs,
and, if any, such agreements, understandings and arrangements will not be
breached or violated as a result of the execution and delivery of, or the
consummation of the transactions contemplated by, the Transaction Documents.

          (d) No Consents. The execution and delivery of the Transaction
Documents and the issuance of the equity securities underlying such securities
(i) does not require any consent or approval of, registration or filing with, or
any other action by any governmental authority, (ii) will not violate any
applicable law or regulation applicable to Maker or any of its subsidiaries or
the articles of incorporation or bylaws of Maker or other agreement of Maker or
any of its subsidiaries or any order of any governmental authority applicable to
Maker or any of its subsidiaries, (iii) will not violate any agreement of Maker
or any of its subsidiaries or result in a default under any agreement or
instrument evidencing or governing any indebtedness of Maker or any of its
subsidiaries or assets of Maker or any of its subsidiaries or give rise to a
right thereunder to require any payment to be made by Maker, and (iv) will not
result in the creation or imposition of any lien on any asset of Maker or any of
its subsidiaries.

          (e) SEC Reports: Financial Statements: Sarbanes-Oxley Act Compliance.
Maker has filed all reports required to be filed by it under the Securities Act
and the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including pursuant to Section 13(a) or Section 15(d) of the Exchange Act, for
the three (3) years preceding the date hereof (or such shorter period as Maker
was required by law to file such material) (the foregoing materials, including
the exhibits thereto, being collectively referred to herein as the "SEC
Reports"). As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange
Act and the rules and regulations of the Commission promulgated thereunder, as
applicable, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. Other than (i)
comments received from the SEC prior to the filing of a SEC Report and
thereafter incorporated in such SEC Report to the SEC's satisfaction and (ii)
comments solicited by the Maker from the SEC and thereafter adequately
incorporated in the Maker's accounting practices and methods, the staff of the
Division of Corporation Finance of the Commission has never provided Maker with
any comments on any registration statement, report or other document filed with
the Commission under the Securities Act or the Exchange Act. The financial
statements of Maker included in the SEC Reports comply in all material respects
with applicable accounting requirements and the rules and regulations of the
Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved
("GAAP"), except as may be otherwise specified in such financial statements or
the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the
financial position of Maker and its consolidated subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments. Hein + Associates LLP, which have certified certain
financial statements of Maker and its consolidated subsidiaries included in the
SEC Reports, are independent public accountants as required by the Securities
Act, the Exchange Act and the respective rules and regulations of the Commission
thereunder and are registered and in good standing with the Public Company
Accounting Oversight Board in accordance with the Sarbanes-Oxley Act of 2002. To
the best of its knowledge, Maker is in compliance with all applicable
requirements of the Sarbanes-Oxley Act of 2002 and applicable rules and
regulations promulgated by the Commission thereunder in effect as of the date of
this Note. Maker does not have pending before the Commission any request for
confidential treatment of information.

          (f) Material Changes. Since January 31, 2004 (the date of the
financials included with the SEC Reports filed with the SEC on Form 10QSB on
April 2, 2004), (i) there has been no event, occurrence or development that has
had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) Maker has not incurred any material liabilities (contingent or otherwise)
other than (A) a Account Receivable Financing, (B) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past
practice and (C) liabilities not required to be reflected in Maker's financial
statements pursuant to GAAP or required to be disclosed in filings made with the
Commission, (iii) except as set forth in Schedule 5(f)(C)(iii) hereto, Maker has
not altered its method of accounting, (iv) Maker has not declared or made any
dividend or distribution of cash or other property to its holders of Common
Stock or purchased, redeemed or made any agreements to purchase or redeem any
shares of its capital stock and (v) except as set forth on Schedule 5(f)(C)(v)
hereto, Maker has not issued any equity securities to any officer, director or
affiliate, except pursuant to existing Company stock option plans. For purposes
herein, a "Material Adverse Effect" shall mean (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Documents, (ii) a
material adverse effect on the results of operations, assets, business or
financial condition or prospects of Maker and the Subsidiaries, taken as a
whole, or (iii) a material adverse effect on Maker's ability to perform in any
material respect on a timely basis its obligations under this Note.

          (g) Litigation. There is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of Maker,
threatened against or affecting Maker, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative
agency and/or regulatory authority (federal, state, county, local or foreign),
including, but not limited to, the Commission, any State Department of Education
and any State Attorney General (collectively, an "Action") which (i) adversely
affects or challenges or could adversely affect or challenge the legality,
validity or enforceability of any of the Transaction Documents or (ii) except as
set forth on Schedule 5(g)(ii), could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Neither
Maker nor any Subsidiary, nor, to the knowledge of Maker, any current director
or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There is not pending or, to the knowledge of Maker,
contemplated, any investigation by the Commission and/or other entity involving
Maker or any current directors or officers of Maker. The Commission has not
issued any stop order or other order suspending the effectiveness of any
registration statement filed by Maker or any Subsidiary under the Exchange Act
or the Securities Act.

          (h) Labor Relations. No material labor dispute exists or, to the
knowledge of Maker, is imminent with respect to any of the employees of Maker
which could reasonably be expected to result in a Material Adverse Effect.

          (i) Compliance. Neither Maker nor any Subsidiary (a) is in default
under or in violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a default by Maker
or any Subsidiary under), nor has Maker or any Subsidiary received notice of a
claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (b) is in violation of any order of any
court, arbitrator or governmental body, or (c) is or has been in violation of
any statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its
business, except in the case of clauses (a), (b) and (c) as would not result in
a Material Adverse Effect.

          (j) Regulatory Permits. Maker and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses, except where the failure to possess such permits would
not have or reasonably be expected to result in a Material Adverse Effect
("Material Permits"), and neither Maker nor any Subsidiary has received any
notice of proceedings relating to the revocation or modification of any Material
Permit.

          (k) Title to Assets. All property and assets owned by the Maker are
owned outright free and clear of mortgages, pledges, security interests, liens,
charges and other encumbrances, except for (i) liens for current taxes not yet
due, (ii) minor imperfections of title, if any, not material in amount and not
materially detracting from the value or impairing the use of the property
subject thereto or impairing the operations of the Maker or (iii) set forth on
Schedule 5(k) hereto.

          (1) Intellectual Property Rights.

                    (i) Maker and its Subsidiaries own, or possess adequate
          rights or licenses to use all trademarks, trademark applications,
          trade names, service marks, service mark registrations, service names,
          patents, patent applications, patent rights, copyrights, copyright
          applications, inventions, licenses, permits, approvals, governmental
          authorizations, know-how (including trade secrets and other unpatented
          and/or unpatentable proprietary and confidential information, systems
          or procedures) and other intellectual property rights (collectively,
          "Intellectual Property Rights") necessary to conduct their respective
          businesses as now conducted or proposed to be conducted. Maker's
          Intellectual Property Rights are valid and enforceable, and no
          registration relating thereto has lapsed, expired or been abandoned or
          cancelled or is the subject of cancellation or other adversarial
          proceedings, or is expected to expire or terminate within two years
          from the date of this Note, and all applications therefore are pending
          and in good standing. Maker and its Subsidiaries do not have any
          knowledge of any infringement by Maker or its Subsidiaries of
          Intellectual Property Rights of others, or of any such development of
          similar or identical trade secrets or technical information by others
          and no claim, action or proceeding has been made or brought against,
          or to Maker's knowledge, has been threatened against, Maker or its
          Subsidiaries regarding infringement of Intellectual Property Rights.
          All personnel, including employees, agents, consultants and
          contractors, who have contributed to or participated in the conception
          and development of Maker's Intellectual Property Rights have either
          (a) been a party to a "work for hire" arrangement or agreement with
          Maker or a Subsidiary, in accordance with federal or state law, that
          by its terms accords to Maker or a Subsidiary ownership of all
          tangible or intangible property thereby arising, or (b) have executed
          appropriate instruments of assignment in favor of Maker or a
          Subsidiary as assignee that by their terms validly convey to Maker or
          a Subsidiary complete and sole ownership of all tangible and
          intangible property thereby arising, and Maker and its Subsidiaries
          have taken other reasonable security measures to protect the secrecy,
          confidentiality and value of all of their Intellectual Property
          Rights.

                    (ii) Neither Maker nor any Subsidiary is in default under or
          in violation of (and no event has occurred that has not been waived
          that, with notice or lapse of time or both, would result in a default
          by Maker or any Subsidiary under), nor has Maker or any Subsidiary
          received notice of a claim that it is in default under or that it is
          in violation of, any license agreement, collaboration agreement,
          development agreement or similar agreement relating to their
          respective businesses.

          (m) Transactions With Affiliates and Employees. Except as set forth on
Schedule 5(m) hereto, none of the officers, directors, employees and/or
affiliates of Maker and the Subsidiaries are a party to any transaction with
Maker or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director employee or such affiliate or, to the knowledge of Maker, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee, partner or affiliate other than (a) for
payment of salary or consulting fees for services rendered, (b) reimbursement
for expenses incurred on behalf of Maker and (c) for other employee benefits,
including stock option agreements under any stock option plan of Maker, which in
the aggregate (for the total amount in (a), (b) and (c) combined) does not
exceed the amount of $5,000 for any officer, director, employee or affiliate. No
notes, debts or other indebtedness held by officers, directors, employees and/or
affiliates of Maker and the Subsidiaries are secured by a lien or security
interest on any of the assets or properties of the Maker or the Subsidiaries.

          (n) Disclosure Controls and Procedures: Internal Accounting Controls.
The management of Maker has (i) designed disclosure controls and procedures to
ensure that material information relating to Maker, including its Subsidiaries,
is made known to the management of Maker by others within those entities, and
(ii) has disclosed, based on its most recent evaluation, to Maker's outside
auditors and the audit committee of the Board of Directors (A) any significant
deficiencies in the design or operation of internal controls which could
adversely affect Maker's ability to record, process, summarize and report
financial data and have identified for Maker's outside auditors any material
weaknesses in internal controls and (B) any fraud, whether or not material, that
involves management or other employees who have a significant role in Maker's
internal controls. Maker and each of its Subsidiaries maintains a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management's general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences,
subject to the internal control weaknesses discussed in item 8A of Form 10~SB
for the year ended July 31,2003 and item 7 of Part II and item 3 of Part I of
Form 10-QSB for the periods ended October 31, 2003 and January 31, 2004,
respectively.

          (0) Listing and Maintenance Requirements. Maker is, and has no reason
to believe that it will not in the foreseeable future continue to be, in
compliance with all listing and maintenance requirements of the trading market
on which the Common Stock is traded.

          (P) Tax Status. Maker and each of its Subsidiaries has made or filed
all foreign, federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which it is subject (except Maker's
July 2002 and 2003 Federal and state income tax returns which have not yet been
finalized and filed by the Maker, but which will reflect losses and no taxes,
interest or penalties due), and has paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be
due on such returns, reports and declarations or to Maker's knowledge otherwise
due and payable, except those being contested in good faith and has set aside on
its books reserves in accordance with GAAP reasonably adequate for the payment
of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers
of Maker know of no basis for any such claim.

          (q) Right of First Refusal. Except for Duncan Capital LLC and the
other payees of the Bridge Notes, no person is a party to any agreement,
contract or understanding, written or oral entitling such party to (i) a right
of first refusal or (ii) purchase or otherwise receive any securities of Maker,
at any time, in each case with respect to offerings of securities by Maker.

          (r) Insurance. Each of Maker and its Subsidiaries maintain insurance
of the types and in the amounts deemed adequate for its business, including, but
not limited to, product liability insurance, insurance covering real and
personal property owned or leased by Maker and its subsidiaries against theft,
damage, destruction, acts of vandalism and all other risks customarily insured
against, all of which insurance is in full force and effect.

          (s) Environmental. Maker and each of its Subsidiaries is, to the best
of its knowledge, in compliance with all applicable published rules and
regulations (and applicable standards and requirements) of the United States
Environmental Protection Agency (the "EPA") and of any similar foreign or state
agency. There is no suit, claim, action or proceeding now pending before any
court, governmental agency or board, or other forum, nor is any of the same
threatened by any Person; and, there is no fact or circumstance actually known
to Maker which could reasonably be anticipated to be the basis for any such
suit, claim, action or proceeding, for (i) noncompliance by Maker with any
environmental law, rule, regulation or requirement, or (ii) relating to the
release or threatened release into the environment by Maker of any pollutant,
toxic or hazardous material, oil, or waste generated by Maker. Maker has not
released any Hazardous Materials (as hereinafter defined) at any site owned or
leased by Maker or shipped any Hazardous Materials for treatment, storage or
disposal at any other site of facility. For purposes of this Section 5(r),
"Hazardous Materials" shall mean and include any solid, hazardous or toxic
waste, substance or material as defined in the United States Resource
Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; the Toxic
Substances Control Act; the Comprehensive Environmental Response, Compensation
and Liability Act; applicable foreign and state laws for the protection of the
environment, and the regulations promulgated under any of the foregoing.

          (t) Conduct of Business. Since January 31,2004, Maker has not (a)
incurred any debts, obligations or liabilities, absolute, accrued, contingent or
otherwise, whether due or to become due that: (i) are not current liabilities
incurred in the usual and ordinary course of business or an Account Receivable
Financing or (ii) have a Material Adverse Effect, (b) made or suffered any
changes in its contingent obligations by way of guaranty, endorsement (other
than the endorsement of checks for deposit in the usual and ordinary course of
business), indemnity, warranty or otherwise, (c) discharged or satisfied any
liens other than those securing, or paid any obligation or liability other than,
current liabilities shown on the balance sheet dated as at January 31, 2004, and
forming part of the SEC Documents, and current liabilities incurred since
January 31,2004, in each case in the usual and ordinary course of business,
except as set forth on Schedule 5(t)(c), (d) mortgaged, pledged or subjected to
lien any of its assets, tangible or intangible (other than an Account Receivable
Transactions), (e) sold, transferred or leased any of its assets except in the
usual and ordinary course of business (other than Account Receivable
Transactions), (f) cancelled or compromised any debt or claim, or waived or
released any right, of material value, (g) suffered any physical damage,
destruction or loss (whether or not covered by insurance) adversely affecting
the properties or business of Maker, (h) entered into any transaction other than
in the usual and ordinary course of business except for this Note and the
related agreements referred to herein, (i) encountered any labor difficulties or
labor union organizing activities, (j) made or granted any wage or salary
increase or entered into any employment agreement, except for wage increases and
raises given in the ordinary course of business and consistent with past
practice, (k) issued or sold any shares of capital stock or other securities or
granted any options with respect thereto, or modified any equity security of
Maker, except as set forth on Schedule 5(t)(k) hereto, (1) except as set forth
on Schedule 5(t)(1) hereof, declared or paid any dividends on or made any other
distributions with respect to, or purchased or redeemed, any of its outstanding
equity securities, (m) suffered or experienced any change in, or condition
affecting, its condition (financial or otherwise), properties, assets,
liabilities, business operations or results of operations other than changes,
events or conditions in the usual and ordinary course of its business, having
(either by itself or in conjunction with all such other changes, events and
conditions) a Material Adverse Effect, (n) made any change in the accounting
principles, methods or practices followed by it or depreciation or amortization
policies or rates theretofore adopted, except as set forth on Schedule 5(t)(n),
or (o) entered into any agreement or otherwise obligated itself, to do any of
the foregoing.

          (u) Conversion Securities. The equity securities issuable upon
conversion of this Note, when issued in compliance with the provisions of this
Note (assuming the holder of this Note converts this Note into equity
securities), will be duly authorized and validly issued, fully paid and
nonassessable, and will be free of any liens or encumbrances created by Maker.

          (v) Registration. The execution, issuance or delivery of the
Transaction Documents or the issuance and sale of the securities of the Maker
issuable upon conversion of the Bridge Notes will be exempt from registration
under the Securities Act.

     6. Covenants. Until the earlier of the conversion of this Note into Common
Stock or other equity securities of Maker as provided herein or the payment of
full of the principal, interest, and any late fees or other payments under this
Note (or, in the case of paragraphs (d) through (k) below, until the later of
the date Payee no longer owns this Note or any Registrable Securities):

          (a) Maintaining Properties. Assets. Maker shall reasonably maintain in
good repair, working order and condition its properties and other assets, and
those of any Subsidiary, and from time to time make all reasonably necessary
repairs, renewals and replacements thereto.

          (b) No Transfer of Intellectual Property. Maker shall not, and shall
not permit any of its Subsidiaries, to transfer any of its Intellectual Property
Rights to any affiliate or third party without the written consent of Payee.

          (c) Liens. Maker shall not, and shall not permit any of its
Subsidiaries to, create, incur or suffer to exist any security interests, liens,
claims or encumbrances ("Liens") upon any of its or its Subsidiaries' assets or
properties, except for (i) Liens created by operation of law such as
materialmen's liens, mechanic's liens and other similar Liens; (ii) deposits,
pledges or Liens securing obligations incurred in respect of workers'
compensation, unemployment insurance or other forms of governmental insurance or
benefits; (iii) Liens imposed by any governmental authority for taxes,
assessments or charges not yet due or that are being contested in good faith by
appropriate proceedings with the establishment of adequate reserves on the
balance sheet of Maker; (iv) Liens arising from the Accounts Receivable
Financing or any other accounts receivable receiving financing whether now
existing (including, but not limited to, financing through Universal Service and
Monterey Capital) or hereinafter created (including, but not limited to IT Sims,
Inc.); and (v) Liens in existence as of the date hereof as set forth on Schedule
6( c) hereto (collectively, the "Permitted Liens").

          (d) Furnishing of Information.

                    (i) Maker covenants and agrees to timely file (or obtain
          extensions in respect thereof and file within the applicable grace
          period) all reports required to be filed by Maker after the date
          hereof pursuant to the Exchange Act. Until the later of the date Payee
          no longer owns this Note or any Registrable Securities, if Maker is
          not required to file reports pursuant to the Exchange Act, it will
          prepare and furnish to Payee and make publicly available in accordance
          with Rule 144( c) such inf9rmation as is required for Payee to sell
          its shares of Common Stock under Rule 144. Maker further covenants and
          agrees that it will take such further action as Payee may reasonably
          request, all to the extent required from time to time to enable such
          person to sell any shares of Common Stock without registration under
          the Securities Act within the limitation of the exemptions provided by
          Rule 144.

                    (ii) Immediately upon the occurrence of an Asset Sale or a
          Qualified Financing, the Maker shall deliver notice of such event to
          the Payee as provided for in Section 4 hereof.

          (e) Shareholders Rights Plan. No claim will be made or enforced by
Maker or any other person that Payee is an "Acquiring Person" under any
shareholders rights plan or similar plan or arrangement in effect or hereafter
adopted by Maker, or that Payee could be deemed to trigger the provisions of any
such plan or arrangement, by virtue of receiving Registrable Securities under
this Note or under any other agreement between Maker and Payee.

          (f) Use of Proceeds. Maker covenants and agrees that all of the net
proceeds that it receives from the sale of the Bridge Notes, although
distributed, allocated and expended by Maker in its sole discretion, shall be
used for working capital and general corporate purposes, including investor and
public relations funding.

          (g) Form D and Blue Sky. If required, Maker shall file a Form D with
respect to the issuance of the Bridge Notes (or the issuance of Common Stock or
other equity securities upon conversion of this Note) as required under
Regulation D under the Securities Act and, upon written request, provide a copy
thereof to Payee promptly after such filing. Maker shall take such action as
Maker shall reasonably determine is necessary in order to obtain an exemption
for or to qualify the Note for sale to Payee pursuant to this Note (or the
issuance of Common Stock or other equity securities upon conversion of this
Note) under applicable securities or "Blue Sky" laws of the states of the United
States, and shall provide evidence of any such action so taken to Payee promptly
after such filing.

          (h) Reservation of Common Stock. As of the date hereof, Maker has
reserved and Maker shall continue to reserve and keep available at all times,
free of preemptive rights, a sufficient number of shares of Common Stock for the
purpose of enabling Maker to issue the Shares upon conversion of this Note.

          (i) Listing of Common Stock. Maker hereby agrees to maintain the
listing and trading of the Common Stock on its current trading market, and to
file with the trading market to list the applicable shares of Common Stock
issuable in connection herewith on the trading market. Maker further agrees, if
Maker applies to have the Common Stock traded on any other trading market, it
will include in such application the shares of Common Stock issuable in
connection herewith and will take such other action as is necessary or desirable
in the opinion of Payee to cause such shares to be listed on such other trading
market as promptly as possible. Maker will take all action necessary to continue
the listing and trading of its Common Stock on its current trading market and
will comply in all material respects with Maker's reporting, filing and other
obligations under the bylaws or rules of the trading market.

          (j) Non-Public Information. Maker covenants and agrees that neither it
nor any other person acting on its behalf will provide Payee or its agents or
counsel with any information that Maker believes constitutes material non-public
information, and, in any event, Maker hereby agrees that Payee shall not have
any duty of confidentiality or any other obligation with respect to any such
information if any such disclosure occurs, subject to such Payee complying with
all applicable securities laws.

          (k) Reporting Obligations. Maker shall continue to file or furnish
pursuant to the Exchange Act or the Securities Act, and Maker shall use
commercially reasonable best efforts to maintain its status as an issuer
required to file such reports under the Exchange Act. In addition, Maker shall
take all actions necessary to continue to meet the "registrant eligibility"
requirements set forth in the general instructions to Form SB-2 or any successor
form thereto, to continue to be eligible to register the resale of the Shares
under the Securities Act on such Form.

          (1) Extraordinary Actions. Maker shall not nor shall it permit any
Subsidiary to: (i) make or approve any changes in accounting methods or policies
(other than as required by GAAP), (ii) other than the Accounts Receivable
Financing, incur any indebtedness for borrowed money, unless payment of such
indebtedness is subordinated to the payment of this Note pursuant to a
subordination agreement to be entered into which shall be satisfactory to Payee,
(iii) sell or otherwise transfer any material assets or rights of the Maker or a
Subsidiary or enter into any contract or agreement relating to the sale of
assets (other than with respect to the Accounts Receivable Financing), (iv)
enter into any contract, agreement or transaction with any officer, director,
stockholder or affiliate of the Maker or a Subsidiary other than ordinary course
transactions that are consistent with past practice and pursuant to arms length
terms, (v) directly or indirectly payor declare any dividend or make any
distribution upon, redeem, retire or repurchase or otherwise acquire, any shares
of capital stock or other securities of the Maker or a Subsidiary, (vi) acquire
or dispose (whether in a single transaction or series of transactions) any
business (or any material part of any business) or any shares or interests in
any subsidiary of Maker, (vii) enter into any partnership, joint venture or
merger with any other person or party, (viii) incur a capital expenditure in
excess of $25,000 or (ix) materially change the Maker's line of business as
currently conducted.

          (m) Termination of Certain UCCs. The Maker shall cause John J. Grace
and Janice A. Jones to file UCC-3 Termination Statements for all secured
indebtedness which list John J. Grace and/or Janice A. Jones as secured parties
and the Maker and/or the Subsidiaries as Debtor(s), including without limitation
UCC-3 (file number 20012009697) filed on February 6, 2001 listing John J. Grace
and Janice A. Jones as secured parties and College Bound Student Alliance Inc.
as the debtor.

          (n) Restriction on New Indebtedness. Neither the Maker nor any of the
Subsidiaries shall borrow any additional funds or incur any other additional
indebtedness with: (i) Highlands Premier Acceptance Corp. or any of its
affiliates or (ii) Jerome M. Lapin.

     7. Events of Default. The following are "Events of Default" hereunder:

          (a) any failure by Maker to pay when due all or any principal or
accrued interest hereunder;

          (b) any representation or warranty made by or on behalf of Maker in
this Note proves to have been incorrect, false or misleading in any material
respect on the date of which made;

          (c) any material failure by Maker to perform any covenant or agreement
under this Note and such failure shall remain uncured for a period of five (5)
days after receipt by Maker of written notice of such failure from Payee;

          (d) if Maker or any subsidiary of Maker shall (i) apply for or consent
to the appointment of a receiver, trustee, custodian or liquidator or any of its
property, (ii) admit in writing its inability to pay its debts as they mature,
(iii) make a general assignment for the benefit of creditors, (iv) be
adjudicated bankrupt or insolvent or be the subject of an order for relief under
Title 11 of the United States Bankruptcy Code, (v) file a voluntary petition in
bankruptcy or a petition for bankruptcy, reorganization, insolvency,
readjustment of debt, dissolution or liquidation, or an answer admitting the
material allegations of a petition filed against it in any proceeding under any
such law and such petition or proceeding shall remain undismissed or unstayed
for thirty (30) days, or (vi) take or permit to be taken any action in
furtherance of or for the purpose of effecting any of the foregoing;

          (e) any dissolution, liquidation or winding up of Maker or any
substantial portion of its business;

          (f) any cessation of operations by Maker or Maker is otherwise
generally unable to pay its debts as such debts become due (consistent with
Maker's usual ordinary course timing of payment);

          (g) the failure by Maker to maintain any material Intellectual
Property Rights, personal, real property or other assets which are necessary to
conduct its business (whether now or in the future);

          (h) the merger, consolidation or reorganization of Maker with or into
another corporation or person or entity (other than with or into a wholly-owned
subsidiary), or the sale of capital stock of Maker by Maker or the holders
thereof, in any case under circumstances in which the holders of a majority of
the voting power of the outstanding capital stock of Maker immediately prior to
such transaction shall own less than a majority in voting power of the
outstanding capital stock of Maker or the surviving or resulting corporation or
other entity, as the case may be, immediately following such transaction.

          (i) if a default with respect to payment of indebtedness of $25,000 or
more occurs under any other loan agreement, note or other instrument or evidence
of indebtedness of Maker or its subsidiaries and continues beyond any applicable
grace period therein provided (unless legitimate reason exists to dispute
payment and the Maker has challenged such payment and provides substantiating
documents to Payee); or

          (j) final, non-appealable judgments for the payment of money, which
judgments in the aggregate exceed $25,.000, shall be rendered against Maker or
its subsidiaries by a court of competent jurisdiction;

provided, however, that with respect to any Event of Default (other than under
Section 7(a) (with respect to payment of principal), 7(d) or 7(e), 1{h}), the
Maker may give the Payee written notice of any such event (within forty-eight
(48) hours of its occurrence) and, upon giving such notice, the Maker shall have
ten (10) business days to cure such Event of Default; in the event that Maker
fails to give written notice of the occurrence of such event, the Maker shall
have no opportunity to cure such default (unless separately consented to by
Payee).

     8. Remedies on Default. If any Event of Default shall occur and be
continuing, then the entire principal and all accrued interest under this Note
shall, at the option of Payee (except in the case of an Event of Default under
Section 7(d) or ~ above, in which event acceleration shall be automatic), become
immediately due and payable, without notice or demand (except for applicable
cure notices as required and set forth elsewhere in this Agreement).

     9. Seniority. The payment of this Note shall be senior to all obligations
of Maker, whether now existing or hereinafter incurred, other than those set
forth on Schedule 9(a) hereto.

     10. Use of Proceeds. Proceeds from this Note shall be used by Maker solely
for general working capital purposes.

     11. Certain Waivers. Except as otherwise expressly provided in this Note,
Maker hereby waives diligence, demand, presentment for payment, protest,
dishonor, nonpayment, default and notice of any and all of the foregoing.

     12. No Impairment. Maker will not, by amendment of its articles of
incorporation, bylaws, or through reorganization, consolidation, merger,
dissolution, sale of assets, or another voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of Payee against impairment.

     13. Amendments. This Note may not be changed orally, but only by an
agreement in writing and signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought.

     14. GOVERNING LAW: JURISDICTION: WAIVER OF JURY TRIAL. THIS NOTE SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK. MAKER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF
NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF
THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELAT.ING TO THIS NOTE, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR,
TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. NOTHING IN THIS NOTE OR
ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS NOTE TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. MAKER HEREBY WAIVES THE RIGHT TO
TRIAL BY JURY IN ANY ACTION OR PROCEEDING FOR THE ENFORCEMENT OR COLLECTION OF
THIS NOTE.

     15. Notices. All notices and communications shall be in writing and shall
be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

         If to Maker:              College Partnership Inc.
                                   333 South Allison Parkway Suite 100
                                   Lakewood Colorado 80226-3115
                                   Attn.: John Grace

         with a copy to:           David M Loev
                                   2777 Allen Parkway Suite 1000
                                   Houston, Texas 77019

         If to Payee:              Duncan Capital
                                   830 Third Avenue, 14th Floor
                                   New York, New York 10022

     16. Transaction and Enforcement Costs. In the event that Payee shall, after
the occurrence and during the continuance of an Event of Default (and provided
that Payee shall be permitted, at such time, to enforce its rights hereunder and
retain payments received hereunder), turn this Note over to an attorney for
collection, Maker shall further be obligated to Payee for Payee's reasonable
attorneys' fees and expenses incurred in connection with such collection as well
as any other reasonable costs incurred by Payee in connection with the
collection of all amounts due hereunder.

     17. Loss. Theft, Destruction or Mutilation of Note. Upon notice by Payee to
Maker of the loss, theft, destruction or mutilation of this Note, and upon
surrender and cancellation of this Note, if mutilated, Maker, as its expense,
will make and deliver a new note of like tenor, in lieu of this Note.

     18. Successors and Assigns. This Note and the obligations and rights of
Maker hereunder, shall be binding upon and inure to the benefit of Maker, the
holder of this Note, and their respective successors and assigns. This Note is
assignable by Payee to any other person or entity without the consent of Maker.

     19. Severability. In the event that any provision of this Note becomes or
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Note will continue in full force and effect without said provision
and the parties agree to replace such provision with a valid and enforceable
provision that will achieve, to the extent possible, the economic, business and
other purposes of such provisions; provided, however, that no such severability
will be effective against a party if it materially and adversely changes the
economic benefits of this Note to such party.

     20. Further Assurances. Maker and its agents shall each cooperate with
Payee and use (or cause its agents to use) its best efforts to promptly (i) take
or cause to be taken all necessary actions, and do or cause to be done all
things necessary, proper or advisable under this Note and applicable laws to
consummate and make effective all transactions contemplated by this Note as soon
as practicable following the request of Payee, and (ii) obtain all approvals
required to be obtained from any third party necessary, proper or advisable to
the transactions contemplated by this Note.

     21. Usury. Notwithstanding any provision to the contrary contained in this
Note, or any and all other instruments or documents executed in connection
herewith, Maker and Payee intend that the obligations evidenced by this Note
conform strictly to the applicable usury laws from time to time in force. If,
under any circumstances whatsoever, fulfillment of any provisions thereof or any
other document, at the time performance of such provisions shall be due, shall
involve transcending the limit of validity prescribed by law, then, ipso facto,
the obligation to be fulfilled shall be reduced to the limit of such validity.

     22. Indemnity. Maker hereby agrees to defend, indemnify and hold Payee
harmless from and against all claims, damages, investigations, judgments,
penalties, costs and expenses (including attorneys' fees and court costs now or
hereafter arising from the aforesaid enforcement of this clause) arising
directly or indirectly from Maker or third parties with whom the Maker has a
contractual relationship, from the use of the proceeds of this Note, or arising
directly or indirectly from the violation of any rule, regulation, statute or
law, whether such claims are asserted by any governmental entity or any other
person.

             [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

IN WITNESS WHEREOF, Maker has duly caused this Note to be signed on its behalf:
in its company name and by its duly authorized officer as of the date first set
forth above.

                                             COLLEGE PARTNERSHIP INC.
                                             By: John J. Grace
                                             Title: CFO
 Acknowledged by:

By:
      Name: Mark Eagle
      Title: COO

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