Document:

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                                                                    EXHIBIT 10.1

           AMENDED AND RESTATED STANDBY EQUITY DISTRIBUTION AGREEMENT

      THIS STANDBY EQUITY DISTRIBUTION AGREEMENT (the "Agreement") is entered
into as of April 8, 2005 between CORNELL CAPITAL PARTNERS, LP, a Delaware
limited partnership (the "Investor"), and U.S. HELICOPTER CORPORATION, a
corporation organized and existing under the laws of the State of Delaware (the
"Company").

      WHEREAS, on or about August 4, 2004, the parties entered into that certain
Standby Equity Distribution Agreement, Registration Rights Agreement, Escrow
Agreement and Placement Agent Agreement. This Agreement shall supercede the
Standby Equity Distribution Agreement dated August 4, 2004. All other documents
entered into by the parties on August 4, 2004 as they pertain to the Standby
Equity Distribution Agreement shall remain in full force and effect.

      WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase from the
Company up to Eleven Million Dollars ($11,000,000) of the Company's common
stock, par value $0.001 per share (the "Common Stock"); and

      WHEREAS, such investments will be made in reliance upon the provisions of
Regulation D ("Regulation D") of the Securities Act of 1933, as amended, and the
regulations promulgated thereunder (the "Securities Act"), and or upon such
other exemption from the registration requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder;
and

      WHEREAS, the Company has engaged Newbridge Securities to act as the
Company's exclusive placement agent in connection with the sale of the Company's
Common Stock to the Investor hereunder pursuant to the Placement Agent Agreement
dated August 4, 2004 by and among the Company, the Placement Agent and the
Investor (the "Placement Agent Agreement").

      NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I.
                               CERTAIN DEFINITIONS

      Section 1.1. "Advance" shall mean the portion of the Commitment Amount
requested by the Company in the Advance Notice.

      Section 1.2. "Advance Date" shall mean the date the David Gonzalez
Attorney Trust Account is in receipt of the funds from the Investor and David
Gonzalez, Esq., is in possession of free trading shares from the Company and
therefore an Advance by the Investor to the Company can be made and David
Gonzalez, Esq. can release the free trading shares to the Investor. The Advance
Date shall be one (1) Trading Day after the applicable Pricing Period.

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      Section 1.3. "Advance Notice" shall mean a written notice to the Investor
setting forth the Advance amount that the Company requests from the Investor and
the Advance Date.

      Section 1.4. "Advance Notice Date" shall mean each date the Company
delivers to the Investor an Advance Notice requiring the Investor to advance
funds to the Company, subject to the terms of this Agreement. No Advance Notice
Date shall be less than five (5) Trading Days after the prior Advance Notice
Date.

      Section 1.5. "Bid Price" shall mean, on any date, the closing bid price
(as reported by Bloomberg L.P.) of the Common Stock on the Principal Market or
if the Common Stock is not traded on a Principal Market, the highest reported
bid price for the Common Stock, as furnished by the National Association of
Securities Dealers, Inc.

      Section 1.6. "Closing" shall mean one of the closings of a purchase and
sale of Common Stock pursuant to Section 2.3.

      Section 1.7. "Commitment Amount" shall mean the aggregate amount of Eleven
Million Dollars ($11,000,000), which the Investor has agreed to provide to the
Company in order to purchase the Company's Common Stock pursuant to the terms
and conditions of this Agreement.

      Section 1.8. "Commitment Period" shall mean the period commencing on the
earlier to occur of (i) the Effective Date, or (ii) such earlier date as the
Company and the Investor may mutually agree in writing, and expiring on the
earliest to occur of (x) the date on which the Investor shall have made payment
of Advances pursuant to this Agreement in the aggregate amount of Eleven Million
Dollars ($11,000,000), (y) the date this Agreement is terminated pursuant to
Section 2.5, or (z) the date occurring twenty-four (24) months after the
Effective Date.

      Section 1.9. "Common Stock" shall mean the Company's common stock, par
value $0.001 per share.

      Section 1.10. "Condition Satisfaction Date" shall have the meaning set
forth in Section 7.2.

      Section 1.11. "Damages" shall mean any loss, claim, damage, liability,
costs and expenses (including, without limitation, reasonable attorney's fees
and disbursements and costs and expenses of expert witnesses and investigation).

      Section 1.12. "Effective Date" shall mean the date on which the SEC first
declares effective a Registration Statement registering the resale of the
Registrable Securities as set forth in Section 7.2(b).

      Section 1.13. "Escrow Agreement" shall mean the escrow agreement among the
Company, the Investor, and David Gonzalez, Esq. dated August 4, 2004.

      Section 1.14. "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

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      Section 1.15. "Material Adverse Effect" shall mean any condition,
circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to enter into and perform any of its obligations
under this Agreement or the Registration Rights Agreement in any material
respect.

      Section 1.16. "Market Price" shall mean the lowest VWAP of the Common
Stock during the Pricing Period.

      Section 1.17. "Maximum Advance Amount" shall be Three Hundred Thousand
Dollars ($300,000) per Advance, provided that the aggregate amount of all
Advances in any thirty (30) day period shall not exceed One Million Two Hundred
Thousand Dollars ($1,200,000).

      Section 1.18 "NASD" shall mean the National Association of Securities
Dealers, Inc.

      Section 1.19 "Person" shall mean an individual, a corporation, a
partnership, an association, a trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

      Section 1.20 "Placement Agent" shall mean Newbridge Securities, a
registered broker-dealer.

      Section 1.21 "Pricing Period" shall mean the five (5) consecutive Trading
Days after the Advance Notice Date.

      Section 1.22 "Principal Market" shall mean the Nasdaq National Market, the
Nasdaq SmallCap Market, the American Stock Exchange, the OTC Bulletin Board or
the New York Stock Exchange, whichever is at the time the principal trading
exchange or market for the Common Stock.

      Section 1.23 "Purchase Price" shall be set at ninety nine percent (99%) of
the Market Price during the Pricing Period.

      Section 1.24 "Registrable Securities" shall mean the shares of Common
Stock to be issued hereunder (i) in respect of which the Registration Statement
has not been declared effective by the SEC, (ii) which have not been sold under
circumstances meeting all of the applicable conditions of Rule 144 (or any
similar provision then in force) under the Securities Act ("Rule 144") or (iii)
which have not been otherwise transferred to a holder who may trade such shares
without restriction under the Securities Act, and the Company has delivered a
new certificate or other evidence of ownership for such securities not bearing a
restrictive legend.

      Section 1.25 "Registration Rights Agreement" shall mean the Registration
Rights Agreement dated August 4, 2004, regarding the filing of the Registration
Statement for the resale of the Registrable Securities, entered into between the
Company and the Investor.

      Section 1.26 "Registration Statement" shall mean a registration statement
on Form S-1 or SB-2 (if use of such form is then available to the Company
pursuant to the rules of the SEC and, if not, on such other form promulgated by
the SEC for which the Company then qualifies and which counsel for the Company
shall deem appropriate, and which form shall be available

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for the resale of the Registrable Securities to be registered there under in
accordance with the provisions of this Agreement and the Registration Rights
Agreement, and in accordance with the intended method of distribution of such
securities), for the registration of the resale by the Investor of the
Registrable Securities under the Securities Act.

      Section 1.27 "Regulation D" shall have the meaning set forth in the
recitals of this Agreement.

      Section 1.28 "SEC" shall mean the Securities and Exchange Commission.

      Section 1.29 "Securities Act" shall have the meaning set forth in the
recitals of this Agreement.

      Section 1.30 "SEC Documents" shall mean Annual Reports on Form 10-KSB,
Quarterly Reports on Form 10-QSB, Current Reports on Form 8-K and Proxy
Statements of the Company as supplemented to the date hereof, filed by the
Company for a period of at least twelve (12) months immediately preceding the
date hereof or the Advance Date, as the case may be, until such time as the
Company no longer has an obligation to maintain the effectiveness of a
Registration Statement as set forth in the Registration Rights Agreement.

      Section 1.31 "Trading Day" shall mean any day during which the New York
Stock Exchange shall be open for business.

      Section 1.32 "VWAP" shall mean the volume weighted average price of the
Company's common stock as quoted by Bloomberg, LP.

                                   ARTICLE II.
                                    ADVANCES

      Section 2.1. Investments.

            (a) Advances. Upon the terms and conditions set forth herein
(including, without limitation, the provisions of Article VII hereof), on any
Advance Notice Date the Company may request an Advance by the Investor by the
delivery of an Advance Notice. The number of shares of Common Stock that the
Investor shall receive for each Advance shall be determined by dividing the
amount of the Advance by the Purchase Price. No fractional shares shall be
issued. Fractional shares shall be rounded to the next higher whole number of
shares. The aggregate maximum amount of all Advances that the Investor shall be
obligated to make under this Agreement shall not exceed the Commitment Amount.

      Section 2.2. Mechanics.

            (a) Advance Notice. At any time during the Commitment Period, the
Company may deliver an Advance Notice to the Investor, subject to the conditions
set forth in Section 7.2; provided, however, the amount for each Advance as
designated by the Company in the applicable Advance Notice shall not be more
than the Maximum Advance Amount. The aggregate amount of the Advances pursuant
to this Agreement shall not exceed the Commitment Amount. The Company
acknowledges that the Investor may sell shares of the Company's

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Common Stock corresponding with a particular Advance Notice on the day the
Advance Notice is received by the Investor. There will be a minimum of seven (7)
Trading Days between each Advance Notice Date.

            (b) Date of Delivery of Advance Notice. An Advance Notice shall be
deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by the Investor if such notice is received prior to 12:00 noon Eastern Time, or
(ii) the immediately succeeding Trading Day if it is received by facsimile or
otherwise after 12:00 noon Eastern Time on a Trading Day or at any time on a day
which is not a Trading Day. No Advance Notice may be deemed delivered on a day
that is not a Trading Day.

            (c)

      Section 2.3. Closings. On each Advance Date, which shall be one (1)
Trading Day after an applicable Pricing Period, (i) the Company shall deliver to
David Gonzalez, Esq. (the "Escrow Agent"), shares of the Company's Common Stock,
representing the amount of the Advance by the Investor pursuant to Section 2.1
herein, registered in the name of the Investor which shall be delivered to the
Investor, or otherwise in accordance with the Escrow Agreement and (ii) the
Investor shall deliver to the Escrow Agent the amount of the Advance specified
in the Advance Notice by wire transfer of immediately available funds which
shall then be delivered by Escrow Agent to the Company by wire transfer of
immediately available funds, or otherwise in accordance with the Escrow
Agreement. In addition, on or prior to the Advance Date, each of the Company and
the Investor shall deliver to the other through the Investor's Counsel all
documents, instruments and writings required to be delivered by either of them
pursuant to this Agreement in order to implement and effect the transactions
contemplated herein. Payment of funds to the Company and delivery of the
Company's Common Stock to the Investor shall occur in accordance with the
conditions set forth above and those contained in the Escrow Agreement;
provided, however, that to the extent the Company has not paid the fees,
expenses, and disbursements described in Section 12.4, the amount of such fees,
expenses, and disbursements may be deducted by the Investor (and shall be paid
to the relevant party) from the amount of the Advance with no reduction in the
amount of shares of the Company's Common Stock to be delivered on such Advance
Date.

      Section 2.4. Termination of Investment. The obligation of the Investor to
make an Advance to the Company pursuant to this Agreement shall terminate
permanently (including with respect to an Advance Date that has not yet
occurred) in the event that (i) there shall occur any stop order or suspension
of the effectiveness of the Registration Statement for an aggregate of fifty
(50) Trading Days, other than due to the acts of the Investor, during the
Commitment Period, and (ii) the Company shall at any time fail materially to
comply with the requirements of Article VI and such failure is not cured within
thirty (30) days after receipt of written notice from the Investor, provided,
however, that this termination provision shall not apply to any period
commencing upon the filing of a post-effective amendment to such Registration
Statement and ending upon the date on which such post effective amendment is
declared effective by the SEC.

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      Section 2.5. Agreement to Advance Funds.

                  The Investor agrees to advance the amount specified in the
Advance Notice to the Company after the completion of each of the following
conditions and the other conditions set forth in this Agreement:

                  (a) the execution and delivery by the Company, and the
Investor, of this Agreement, and the Exhibits hereto;

                  (b) the Escrow Agent shall have received the shares of Common
Stock applicable to the Advance in accordance with Section 2.3. Such shares
shall be free of restrictive legends.

                  (ii) the Company's Common Stock shall have been authorized for
quotation on the Principal Market.

                  (iv) the Company's Registration Statement with respect to the
resale of the Registrable Securities in accordance with the terms of the
Registration Rights Agreement shall have been declared effective by the SEC;

                  (v) the Company shall have obtained all material permits and
qualifications required by any applicable state for the offer and sale of the
Registrable Securities, or shall have the availability of exemptions therefrom.
The sale and issuance of the Registrable Securities shall be legally permitted
by all laws and regulations to which the Company is subject;

                  (vi) the Company shall have filed with the Commission in a
timely manner all reports, notices and other documents required of a "reporting
company" under the Exchange Act and applicable Commission regulations;

                  (vii) the fees as set forth in Section 12.4 below shall have
been paid or can be withheld as provided in Section 2.3;

                  (viii) the conditions set forth in Section 7.2 shall have been
satisfied;

                  (ix) the Company shall have provided to the Investor an
auditor letter from its independent certified public accountant in a form
acceptable to the Investor; and

                  (ix) the Company's transfer agent shall be DWAC eligible.

      Section 2.6. Lock Up Period.

                  (i) During the Commitment Period, the Company shall not issue
or sell, without the prior written consent of the Investor, (a) any Common Stock
or Preferred Stock without consideration or for a consideration per share less
than the Bid Price on the date of issuance or (b) issue or sell any warrant,
option, right, contract, call, or other security or instrument granting the
holder thereof the right to acquire Common Stock without consideration or for a
consideration per share less than the Bid Price on the date of issuance. With
respect to

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issuances of capital stock or securities convertible or exercisable into capital
stock prior to the date the Company's Common Stock is authorized for quotation
on the Principal Market, no such issuances (or with respect to convertible or
exercisable securities the conversion or exercise price) shall be without
consideration or for a consideration per share less that the fair value per
share of the Company's Common Stock as determined in good faith by a majority of
the Company's independent directors.

                  (ii) On the date hereof, the Company shall obtain from each
officer and director a lock-up agreement, as defined below, in the form annexed
hereto as Schedule 2.6 agreeing during the Commitment Period to only sell in
compliance with the volume limitation of Rule 144.

      Section 2.7. Hardship. In the event the Investor sells shares of the
Company's Common Stock after receipt of an Advance Notice and the Company fails
to perform its obligations as mandated in Section 2.3, and specifically the
Company fails to deliver to the Escrow Agent on the Advance Date the shares of
Common Stock corresponding to the applicable Advance, the Company acknowledges
that the Investor shall suffer financial hardship and therefore shall be liable
for any and all losses, commissions, fees, or financial hardship caused to the
Investor.

                                  ARTICLE III.
                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

      Investor hereby represents and warrants to, and agrees with, the Company
that the following are true and as of the date hereof and as of each Advance
Date:

      Section 3.1. Organization and Authorization. The Investor is duly
incorporated or organized and validly existing in the jurisdiction of its
incorporation or organization and has all requisite power and authority to
purchase and hold the securities issuable hereunder. The decision to invest and
the execution and delivery of this Agreement by such Investor, the performance
by such Investor of its obligations hereunder and the consummation by such
Investor of the transactions contemplated hereby have been duly authorized and
requires no other proceedings on the part of the Investor. The undersigned has
the right, power and authority to execute and deliver this Agreement and all
other instruments (including, without limitations, the Registration Rights
Agreement), on behalf of the Investor. This Agreement has been duly executed and
delivered by the Investor and, assuming the execution and delivery hereof and
acceptance thereof by the Company, will constitute the legal, valid and binding
obligation of the Investor, enforceable against the Investor in accordance with
its terms.

      Section 3.2. Evaluation of Risks. The Investor has such knowledge and
experience in financial tax and business matters as to be capable of evaluating
the merits and risks of, and bearing the economic risks entailed by, an
investment in the Company and of protecting its interests in connection with
this transaction. It recognizes that its investment in the Company involves a
high degree of risk.

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      Section 3.3. No Legal Advice From the Company. The Investor acknowledges
that prior to execution and delivery of this Agreement, it had the opportunity
to review this Agreement and the transactions contemplated by this Agreement
with his or its own legal counsel and investment and tax advisors. The Investor
is relying solely on such counsel and advisors and not on any statements or
representations of the Company or any of its representatives or agents for
legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

      Section 3.4. Investment Purpose. The securities are being purchased by the
Investor for its own account, for investment and without any view to the
distribution, assignment or resale to others or fractionalization in whole or in
part. The Investor agrees not to assign or in any way transfer the Investor's
rights to the securities or any interest therein and acknowledges that the
Company will not recognize any purported assignment or transfer except in
accordance with applicable Federal and state securities laws. No other person
has or will have a direct or indirect beneficial interest in the securities. The
Investor agrees not to sell, hypothecate or otherwise transfer the Investor's
securities unless the securities are registered under Federal and applicable
state securities laws or unless, in the opinion of counsel satisfactory to the
Company, an exemption from such laws is available.

      Section 3.5. Accredited Investor. The Investor is an "Accredited Investor"
as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act.

      Section 3.6. Information. The Investor and its advisors (and its counsel),
if any, have been furnished with all materials relating to the business,
finances and operations of the Company and information it deemed material to
making an informed investment decision. The Investor and its advisors, if any,
have been afforded the opportunity to ask questions of the Company and its
management. Neither such inquiries nor any other due diligence investigations
conducted by such Investor or its advisors, if any, or its representatives shall
modify, amend or affect the Investor's right to rely on the Company's
representations and warranties contained in this Agreement. The Investor
understands that its investment involves a high degree of risk. The Investor is
in a position regarding the Company, which, based upon employment, family
relationship or economic bargaining power, enabled and enables such Investor to
obtain information from the Company in order to evaluate the merits and risks of
this investment. The Investor has sought such accounting, legal and tax advice,
as it has considered necessary to make an informed investment decision with
respect to this transaction.

      Section 3.7. Receipt of Documents. The Investor and its counsel have
received and read in their entirety: (i) this Agreement and the Exhibits annexed
hereto; (ii) all due diligence and other information necessary to verify the
accuracy and completeness of such representations, warranties and covenants; and
(iii) answers to all questions the Investor submitted to the Company regarding
an investment in the Company; and the Investor has relied on the information
contained therein and has not been furnished any other documents, literature,
memorandum or prospectus.

      Section 3.8. Registration Rights Agreement and Escrow Agreement. The
parties have entered into the Registration Rights Agreement and the Escrow
Agreement, each dated the date hereof.

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      Section 3.9. No General Solicitation. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
the shares of Common Stock offered hereby.

      Section 3.10. Not an Affiliate. The Investor is not an officer, director
or a person that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with the Company or any
"Affiliate" of the Company (as that term is defined in Rule 405 of the
Securities Act). Neither the Investor nor its Affiliates has an open short
position in the Common Stock of the Company, and the Investor agrees that it
will not, and that it will cause its Affiliates not to, engage in any short
sales of or hedging transactions with respect to the Common Stock, provided that
the Company acknowledges and agrees that upon receipt of an Advance Notice the
Investor will sell the Shares to be issued to the Investor pursuant to the
Advance Notice, even if the Shares have not been delivered to the Investor.

      Section 3.11. Trading Activities. The Investor's trading activities with
respect to the Company's Common Stock shall be in compliance with all applicable
federal and state securities laws, rules and regulations and the rules and
regulations of the Principal Market on which the Company's Common Stock is
listed or traded. Neither the Investor nor its affiliates has an open short
position in the Common Stock of the Company and, except as set forth below, the
Investor shall not and will cause its affiliates not to engage in any short sale
as defined in any applicable SEC or National Association of Securities Dealers
rules on any hedging transactions with respect to the Common Stock. Without
limiting the foregoing, the Investor agrees not to engage in any naked short
transactions in excess of the amount of shares owned (or an offsetting long
position) during the Commitment Period. The Investor shall be entitled to sell
the Common Stock it will receive pursuant to an Addendum Notice during the
applicable Pricing Period.

      Section 3.12. No Buyer makes any representation or warranty regarding the
Company's ability to successfully become a public company or to have any
registration statement filed by the Company pursuant to the Registration Rights
Agreement or otherwise declared effective by the SEC. The Company has the sole
obligation to make any and all such filings as may be necessary to become a
public company and to have any registration statement declared effective by the
SEC.

      Section 3.13. The Company acknowledges that the Buyer is relying on the
representations and warranties made by the Company hereunder and that such
representations and warranties are a material inducement to the Buyer purchasing
the Convertible Debentures. The Company further acknowledges that without such
representations and warranties of the Company made hereunder, the Buyer would
not enter into this Agreement.

      Section 3.14. Investor will use good-faith efforts to attempt to maintain
its beneficial ownership of the outstanding Common Stock of the Company at or
below nine and nine-tenths' percent (9.9%), absent the occurrence of an Event of
Default.

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                                   ARTICLE IV.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      Except as stated below or on the Disclosure Schedule (the "Disclosure
Schedule") attached hereto as Exhibit "B," the Company hereby represents and
warrants to, and covenants with, the Investor that the following are true and
correct as of the date hereof:

      Section 4.1. Organization and Qualification. The Company is duly
incorporated or organized and validly existing in the jurisdiction of its
incorporation or organization and has all requisite power and authority
corporate power to own its properties and to carry on its business as now being
conducted. The Company has no subsidiary entities as of the date hereof. The
Company will within 30 days after the first Closing (as detailed in the
Securities Purchase Agreement) become duly qualified as a foreign corporation to
do business in good standing in every jurisdiction in which the nature of the
business conducted by it makes such qualification necessary, except to the
extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect on the Company and its subsidiaries taken as a whole.

      Section 4.2. Authorization, Enforcement, Compliance with Other
Instruments. (i) The Company has the requisite corporate power and authority to
enter into and perform this Agreement, the Registration Rights Agreement, the
Escrow Agreement, the Placement Agent Agreement and any related agreements, in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
this Agreement, the Registration Rights Agreement, the Escrow Agreement, the
Placement Agent Agreement and any related agreements by the Company and the
consummation by it of the transactions contemplated hereby and thereby, have
been duly authorized by the Company's Board of Directors and no further consent
or authorization is required by the Company, its Board of Directors or its
stockholders, (iii) this Agreement, the Registration Rights Agreement, the
Escrow Agreement, the Placement Agent Agreement and any related agreements have
been duly executed and delivered by the Company, and (iv) this Agreement, the
Registration Rights Agreement, the Escrow Agreement, the Placement Agent
Agreement and assuming the execution and delivery thereof and acceptance by the
Investor and any related agreements constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

      Section 4.3. Capitalization. As of the date hereof, and immediately prior
to the execution of this Agreement, the authorized capital stock of the Company
consists of 100,000,000 shares of stock, of which (i) 95,000,000 shares are
designated as Common Stock, of which 21,300,000 shares of Common Stock are
outstanding, and (ii) has 5,000,000 Shares of Preferred Stock of which none is
outstanding. All of such outstanding shares have been validly issued and are
fully paid and nonassessable. Except as disclosed in the Disclosure Schedule,
and immediately preceding the Closing, no shares of Common Stock are subject to
preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company. Except as disclosed in the Disclosure
Schedule, as of the date hereof, (i) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company or

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any of its subsidiaries, or contracts, commitments, understandings or
arrangements by which the Company or any of its subsidiaries is or may become
bound to issue additional shares of capital stock of the Company or any of its
subsidiaries or options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
subsidiaries, (ii) there are no outstanding debt securities (iii) there are no
outstanding registration statements and (iv) there are no agreements or
arrangements under which the Company or any of its subsidiaries is obligated to
register the sale of any of their securities under the Securities Act (except
pursuant to the Registration Rights Agreement). There are no securities or
instruments containing anti-dilution or similar provisions that will be
triggered by this Agreement or any related agreement or the consummation of the
transactions described herein or therein. The Company has furnished to the
Investor true and correct copies of the Company's Certificate of Incorporation,
as amended and as in effect on the date hereof (the "Certificate of
Incorporation"), and the Company's By-laws, as in effect on the date hereof (the
"By-laws"), and the terms of all securities convertible into or exercisable for
Common Stock and the material rights of the holders thereof in respect thereto.

      Section 4.4. No Conflict. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby will not (i) result in a violation of the Certificate of
Incorporation or any certificate of designations of any outstanding series of
preferred stock of the Company or By-laws or (ii) materially conflict with or
constitute a material default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or result
in a material violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and the rules and
regulations of the Principal Market on which the Common Stock is quoted)
applicable to the Company or any of its subsidiaries or by which any material
property or asset of the Company or any of its subsidiaries is bound or affected
and which would cause a Material Adverse Effect. Except as disclosed in the
Disclosure Schedule, neither the Company nor its subsidiaries is in violation of
any term of or in default under its Certificate of Incorporation or By-laws or
their organizational charter or by-laws, respectively, or material violation of
any material contract, agreement, mortgage, indebtedness, indenture, instrument,
judgment, decree or order or any statute, rule or regulation applicable to the
Company or its subsidiaries. The business of the Company and its subsidiaries is
not being conducted in material violation of any material law, ordinance,
regulation of any governmental entity. Except as specifically contemplated by
this Agreement and as required under the Securities Act and any applicable state
securities laws, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under or contemplated by this Agreement or the Registration Rights
Agreement in accordance with the terms hereof or thereof. Except as disclosed in
the Disclosure Schedule, all consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The
Company and its subsidiaries are unaware of any fact or circumstance which might
give rise to any of the foregoing.

      Section 4.5. Financial Statements. The Company has supplied the Buyer with
the Company's unaudited balance sheet as of June 30, 2004 and unaudited income
statement for the

                                      11
<PAGE>

period from inception through and including June 30, 2004 (the "Financial
Statements"). The Financial Statements are accompanied by a letter from the
Company's Chief Executive Officer confirming that the Financial Statements are
true, correct, and complete to the best of his knowledge. The Financial
Statements are subject to adjustments, footnote disclosure, and the like
consistent with year-end audit procedures.

      Section 4.6. No Default. Except as disclosed in the Disclosure Schedule,
the Company is not in material default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any
indenture, mortgage, deed of trust or other material instrument or agreement to
which it is a party or by which it is or its property is bound and neither the
execution, nor the delivery by the Company, nor the performance by the Company
of its obligations under this Agreement or any of the exhibits or attachments
hereto will conflict with or result in the breach or violation of any of the
terms or provisions of, or constitute a default or result in the creation or
imposition of any lien or charge on any assets or properties of the Company
under its Certificate of Incorporation, By-Laws, any material indenture,
mortgage, deed of trust or other material agreement applicable to the Company or
instrument to which the Company is a party or by which it is bound, or any
statute, or any decree, judgment, order, rules or regulation of any court or
governmental agency or body having jurisdiction over the Company or its
properties, in each case which default, lien or charge is likely to cause a
Material Adverse Effect on the Company's business or financial condition.

      Section 4.7. Absence of Events of Default. Except for matters described in
the Disclosure Schedule and/or this Agreement, no Event of Default, as defined
in the respective agreement to which the Company is a party, and no event which,
with the giving of notice or the passage of time or both, would become an Event
of Default (as so defined), has occurred and is continuing, which would have a
Material Adverse Effect on the Company's business, properties, prospects,
financial condition or results of operations.

      Section 4.8. Intellectual Property Rights. The Company owns or possesses,
or is currently seeking to develop, adequate rights or licenses to use all
material trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to
conduct their respective businesses as now conducted. The Company does not have
any knowledge of any infringement by the Company or its subsidiaries of
trademark, trade name rights, patents, patent rights, copyrights, inventions,
licenses, service names, service marks, service mark registrations, trade secret
or other similar rights of others, and, to the knowledge of the Company, there
is no claim, action or proceeding being made or brought against, or to the
Company's knowledge, being threatened against, the Company regarding trademark,
trade name, patents, patent rights, invention, copyright, license, service
names, service marks, service mark registrations, trade secret or other
infringement; and the Company is unaware of any facts or circumstances which
might give rise to any of the foregoing.

      Section 4.9. Employee Relations. The Company is not involved in any labor
dispute nor, to the knowledge of the Company or any of its subsidiaries, is any
such dispute threatened. None of the Company's employees is a member of a union
and the Company and its subsidiaries believe that their relations with their
employees are good.

                                      12
<PAGE>

      Section 4.10. [Reserved]

      Section 4.11. [Reserved]

      Section 4.12. [Reserved]

      Section 4.13. [Reserved]

      Section 4.14. [Reserved]

      Section 4.15. No Material Adverse Breaches, etc. Except as set forth in
the Disclosure Schedule, neither the Company nor any of its subsidiaries is
subject to any charter, corporate or other legal restriction, or any judgment,
decree, order, rule or regulation which in the judgment of the Company's
officers has or is expected in the future to have a Material Adverse Effect on
the business, properties, operations, financial condition, results of operations
or prospects of the Company or its subsidiaries. Except as set forth in the
Disclosure Schedule, neither the Company nor any of its subsidiaries is in
breach of any contract or agreement which breach, in the judgment of the
Company's officers, has or is expected to have a Material Adverse Effect on the
business, properties, operations, financial condition, results of operations or
prospects of the Company or its subsidiaries.

      Section 4.16. Absence of Litigation. Except as set forth in the Disclosure
Schedule, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization
or body pending against or affecting the Company, the Common Stock or any of the
Company's subsidiaries, wherein an unfavorable decision, ruling or finding would
(i) have a Material Adverse Effect on the transactions contemplated hereby (ii)
adversely affect the validity or enforceability of, or the authority or ability
of the Company to perform its obligations under, this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the
Disclosure Schedule, have a Material Adverse Effect on the business, operations,
properties, financial condition or results of operation of the Company and its
subsidiaries taken as a whole.

      Section 4.17. Subsidiaries. Except as disclosed in the Disclosure
Schedule, the Company does not presently own or control, directly or indirectly,
any interest in any other corporation, partnership, association or other
business entity.

      Section 4.18. Tax Status. Except as disclosed in the Disclosure Schedule,
the Company and each of its subsidiaries has made or filed all federal and state
income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject and (unless and only to the extent that the
Company and each of its subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) 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,
except those being contested in good faith and has set aside on its books
provision 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 the Company know of no basis
for any such claim.

                                      13
<PAGE>

      Section 4.19. Certain Transactions. Except as set forth in the Disclosure
Schedule, none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company (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 or such employee or, to the knowledge
of the Company, any corporation, partnership, trust or other entity in which any
officer, director, or any such employee has a substantial interest or is an
officer, director, trustee or partner.

      Section 4.20. Fees and Rights of First Refusal. The Company is not
obligated to offer the securities offered hereunder on a right of first refusal
basis or otherwise to any third parties including, but not limited to, current
or former shareholders of the Company, underwriters, brokers, agents or other
third parties.

      Section 4.21. Use of Proceeds. The Company represents that the net
proceeds from this offering will be used for general corporate purposes.
However, in no event shall the net proceeds from this offering be used by the
Company for the payment (or loaned to any such person for the payment) of any
judgment, or other liability, incurred by any executive officer, officer,
director or employee of the Company, except for any liability owed to such
person for services rendered, or if any judgment or other liability is incurred
by such person originating from services rendered to the Company, or the Company
has indemnified such person from liability.

      Section 4.22. Further Representation and Warranties of the Company. For so
long as any securities issuable hereunder held by the Investor remain
outstanding, the Company acknowledges, represents, warrants and agrees that it
will maintain the listing of its Common Stock on the Principal Market

      Section 4.23. Opinion of Counsel. Investor shall receive an opinion letter
from counsel acceptable to the Investor on the date hereof.

      Section 4.24. Opinion of Counsel. The Company will obtain for the
Investor, at the Company's expense, any and all opinions of counsel which may be
reasonably required in order to sell the securities issuable hereunder without
restriction.

      Section 4.25. Dilution. The Company is aware and acknowledges that
issuance of shares of the Company's Common Stock could cause dilution to
existing shareholders and could significantly increase the outstanding number of
shares of Common Stock.

      Section 4.26. As of the execution of this Agreement, the Company (i)
neither owns nor leases any real property or facilities; (ii) is not party to
any contract or policy of insurance covering its business operations, personnel,
employees, liability or any facilities, except Directors and Officers coverage
to become effective promptly after the First Closing; and (iii) has not
obtained, and to the best of its knowledge is not required to obtain, any
regulatory materials, certificates, authorizations or permits for its present
status.

                                      14
<PAGE>

                                   ARTICLE V.
                                 INDEMNIFICATION

      Section 5.1. Indemnification.

            a) In consideration of the Investor's execution and delivery of this
Agreement, and in addition to all of the Company's other obligations under this
Agreement, the Company shall defend, protect, indemnify and hold harmless the
Investor, and all of its officers, directors, partners, attorneys, employees and
agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Investor
Indemnitees") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Investor Indemnitee is a
party to the action for which indemnification hereunder is sought), and
including reasonable attorneys' fees and disbursements (the "Indemnified
Liabilities"), incurred by the Investor Indemnitees or any of them as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement or the
Registration Rights Agreement or any other certificate, instrument or document
contemplated hereby or thereby, (b) any breach of any covenant, agreement or
obligation of the Company contained in this Agreement or the Registration Rights
Agreement or any other certificate, instrument or document contemplated hereby
or thereby, or (c) any cause of action, suit or claim brought or made against
such Investor Indemnitee arising out of or resulting from the execution,
delivery, performance or enforcement of this Agreement or any other instrument,
document or agreement executed pursuant hereto by any of the Investor
Indemnitees. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law. This indemnification shall not apply to any
Indemnified Liabilities arising out of the willful or reckless actions or
inactions of any Investor Indemnitee.

            b) In consideration of the Company's execution and delivery of this
Agreement, and in addition to all of the Investor's other obligations under this
Agreement, the Investor shall defend, protect, indemnify and hold harmless the
Company and all of its officers, directors, shareholders, attorneys, employees
and agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Company
Indemnitees") from and against any and all Indemnified Liabilities incurred by
the Company Indemnitees or any of them as a result of, or arising out of, or
relating to (a) any misrepresentation or breach of any representation or
warranty made by the Investor in this Agreement, the Registration Rights
Agreement, or any instrument or document contemplated hereby or thereby executed
by the Investor, (b) any breach of any covenant, agreement or obligation of the
Investor(s) contained in this Agreement, the Registration Rights Agreement or
any other certificate, instrument or document contemplated hereby or thereby
executed by the Investor, or (c) any cause of action, suit or claim brought or
made against such Company Indemnitee based on misrepresentations or due to a
breach by the Investor and arising out of or resulting from the execution,
delivery, performance or enforcement of this Agreement or any other instrument,
document or agreement executed pursuant hereto by any of the Company

                                      15
<PAGE>

Indemnitees. To the extent that the foregoing undertaking by the Investor may be
unenforceable for any reason, the Investor shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law. This indemnification shall not apply to any
Indemnified Liabilities arising out of the willful or reckless actions or
inactions of any Company Indemnitee.

            (c) The obligations of the parties to indemnify or make contribution
under this Section 5.1 shall survive termination.

                                   ARTICLE VI.
                            COVENANTS OF THE COMPANY

      Section 6.1. Registration Rights. The Company shall cause the Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof.

      Section 6.2. Listing of Common Stock. The Company shall obtain and
maintain the Common Stock's authorization for quotation on the National
Association of Securities Dealers Inc.'s Over the Counter Bulletin Board.

      Section 6.3. Exchange Act Registration. The Company will cause its Common
Stock to be registered under Section 12(g) of the Exchange Act, will file in a
timely manner all reports and other documents required of it as a reporting
company under the Exchange Act and will not take any action or file any document
(whether or not permitted by Exchange Act or the rules thereunder) to terminate
or suspend such registration or to terminate or suspend its reporting and filing
obligations under said Exchange Act.

      Section 6.4. Transfer Agent Instructions. Upon effectiveness of the
Registration Statement the Company shall deliver instructions to its transfer
agent to issue shares of Common Stock to the Investor free of restrictive
legends on or before each Advance Date

      Section 6.5. Corporate Existence. The Company will take all steps
necessary to preserve and continue the corporate existence of the Company.

      Section 6.6. Notice of Certain Events Affecting Registration; Suspension
of Right to Make an Advance. The Company will immediately notify the Investor
upon its becoming aware of the occurrence of any of the following events in
respect of a registration statement or related prospectus relating to an
offering of Registrable Securities: (i) receipt of any request for additional
information by the SEC or any other Federal or state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to the registration statement or related prospectus; (ii) the
issuance by the SEC or any other Federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in

                                      16
<PAGE>

the Registration Statement or related prospectus of any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related
prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate; and the Company
will promptly make available to the Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to the Investor any
Advance Notice during the continuation of any of the foregoing events.

      Section 6.7. Restriction on Sale of Capital Stock. During the Commitment
Period the Company shall not issue or sell, without the prior written consent of
the Investor not to be unreasonably withheld, (i) any Common Stock or Preferred
Stock without consideration or for a consideration per share less than the bid
price of the Common Stock determined immediately prior to its issuance, (ii)
issue or sell any Preferred Stock warrant, option, right, contract, call, or
other security or instrument granting the holder thereof the right to acquire
Common Stock without consideration or for a consideration per share less than
such Common Stock's Bid Price determined immediately prior to its issuance, or
(iii) file any registration statement on Form S-8, except to register securities
to be issued under the Company's 2004 Stock Incentive Plan. So long as at least
$100,000 principal amount of the Convertible Debentures remain outstanding, the
Company covenants that it shall not make any amendments, modifications or other
changes to the 2004 Stock Incentive Plan as in existence on the date hereof,
including, without limitation, increasing the number of shares of capital stock
available for issuance thereunder.

      Section 6.8. Consolidation; Merger. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all the assets of the Company to
another entity (a "Consolidation Event") unless the resulting successor or
acquiring entity (if not the Company) assumes by written instrument the
obligation to deliver to the Investor such shares of stock and/or securities as
the Investor is entitled to receive pursuant to this Agreement.

      Section 6.9. Issuance of the Company's Common Stock. The sale of the
shares of Common Stock shall be made in accordance with the provisions and
requirements of Regulation D and any applicable state securities law.

                                  ARTICLE VII.
                CONDITIONS FOR ADVANCE AND CONDITIONS TO CLOSING

      Section 7.1. Conditions Precedent to the Obligations of the Company. The
obligation hereunder of the Company to issue and sell the shares of Common Stock
to the Investor incident to each Closing is subject to the satisfaction, or
waiver by the Company, at or before each such Closing, of each of the conditions
set forth below.

                                      17
<PAGE>

            (a) Accuracy of the Investor's Representations and Warranties. The
representations and warranties of the Investor shall be true and correct in all
material respects.

            (b) Performance by the Investor. The Investor shall have performed,
satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement and the Registration Rights Agreement to
be performed, satisfied or complied with by the Investor at or prior to such
Closing.

      Section 7.2. Conditions Precedent to the Right of the Company to Deliver
an Advance Notice and the Obligation of the Investor to Purchase Shares of
Common Stock. The right of the Company to deliver an Advance Notice and the
obligation of the Investor hereunder to acquire and pay for shares of the
Company's Common Stock incident to a Closing is subject to the fulfillment by
the Company, on (i) the date of delivery of such Advance Notice and (ii) the
applicable Advance Date (each a "Condition Satisfaction Date"), of each of the
following conditions:

            (a) Listing of the Company's Common Stock. The Company's Common
Stock shall have been authorized for quotation on the National Association of
Securities Dealers Inc.'s Over the Counter Bulletin Board.

            (b) Registration of the Common Stock with the SEC. The Company shall
have filed with the SEC a Registration Statement with respect to the resale of
the Registrable Securities in accordance with the terms of the Registration
Rights Agreement. As set forth in the Registration Rights Agreement, the
Registration Statement shall have previously become effective and shall remain
effective on each Condition Satisfaction Date and (i) neither the Company nor
the Investor shall have received notice that the SEC has issued or intends to
issue a stop order with respect to the Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of the Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and the Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such action),
and (ii) no other suspension of the use or withdrawal of the effectiveness of
the Registration Statement or related prospectus shall exist. The Registration
Statement must have been declared effective by the SEC prior to the first
Advance Notice Date.

            (c) Authority. The Company shall have obtained all permits and
qualifications required by any applicable state in accordance with the
Registration Rights Agreement for the offer and sale of the shares of Common
Stock, or shall have the availability of exemptions therefrom. The sale and
issuance of the shares of Common Stock shall be legally permitted by all laws
and regulations to which the Company is subject.

            (d) Fundamental Changes. There shall not exist any fundamental
changes to the information set forth in the Registration Statement which would
require the Company to file a post-effective amendment to the Registration
Statement.

            (e) Performance by the Company. The Company shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement (including, without limitation, the
conditions specified in Section 2.5

                                      18
<PAGE>

hereof) and the Registration Rights Agreement to be performed, satisfied or
complied with by the Company at or prior to each Condition Satisfaction Date.

            (f) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction that
prohibits or directly and adversely affects any of the transactions contemplated
by this Agreement, and no proceeding shall have been commenced that may have the
effect of prohibiting or adversely affecting any of the transactions
contemplated by this Agreement.

            (g) No Suspension of Trading in or Delisting of Common Stock. The
trading of the Common Stock has commenced on the Principal Market and has not
been suspended by the SEC or the Principal Market. The issuance of shares of
Common Stock with respect to the applicable Closing, if any, shall not violate
the shareholder approval requirements of the Principal Market (if any). The
Company shall not have received any notice threatening the continued listing of
the Common Stock on the Principal Market.

            (h) Maximum Advance Amount. The amount of any Advance requested by
the Company shall not exceed the Maximum Advance Amount. In addition, in no
event shall the number of shares issuable to the Investor pursuant to an Advance
cause the aggregate number of shares of Common Stock beneficially owned by the
Investor and its affiliates to exceednine and 9/10 percent (9.9%) of the then
outstanding Common Stock of the Company. For purposes of this section,
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act.

            (i) No Knowledge. The Company has no knowledge of any event which
would be more likely than not to have the effect of causing such Registration
Statement to be suspended or otherwise ineffective.

            (j) Other. On each Condition Satisfaction Date, the Investor shall
have received the certificate executed by an officer of the Company in the form
of Exhibit A attached hereto.

                                  ARTICLE VIII.
         DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION

      Section 8.1. Due Diligence Review. Prior to the filing of the Registration
Statement the Company shall make available for inspection and review by the
Investor, advisors to and representatives of the Investor, any underwriter
participating in any disposition of the Registrable Securities on behalf of the
Investor pursuant to the Registration Statement, any such registration statement
or amendment or supplement thereto or any blue sky, NASD or other filing, all
financial and other records, all SEC Documents and other filings with the SEC,
and all other corporate documents and properties of the Company as may be
reasonably necessary for the purpose of such review, and cause the Company's
officers, directors and employees to supply all such information reasonably
requested by the Investor or any such representative, advisor or underwriter in
connection with such Registration Statement (including, without limitation, in
response to all questions and other inquiries reasonably made or submitted by
any of them), prior

                                      19
<PAGE>

to and from time to time after the filing and effectiveness of the Registration
Statement for the sole purpose of enabling the Investor and such
representatives, advisors and underwriters and their respective accountants and
attorneys to conduct initial and ongoing due diligence with respect to the
Company and the accuracy of the Registration Statement.

      Section 8.2. Non-Disclosure of Non-Public Information.

            (a) The Company shall not disclose non-public information to the
Investor, advisors to or representatives of the Investor unless prior to
disclosure of such information the Company identifies such information as being
non-public information and provides the Investor, such advisors and
representatives with the opportunity to accept or refuse to accept such
non-public information for review. The Company may, as a condition to disclosing
any non-public information hereunder, require the Investor's advisors and
representatives to enter into a confidentiality agreement in form reasonably
satisfactory to the Company and the Investor.

            (b) Nothing herein shall require the Company to disclose non-public
information to the Investor or its advisors or representatives, and the Company
represents that it does not disseminate non-public information to any investors
who purchase stock in the Company in a public offering, to money managers or to
securities analysts, provided, however, that notwithstanding anything herein to
the contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any
event or the existence of any circumstance (without any obligation to disclose
the specific event or circumstance) of which it becomes aware, constituting
non-public information (whether or not requested of the Company specifically or
generally during the course of due diligence by such persons or entities),
which, if not disclosed in the prospectus included in the Registration Statement
would cause such prospectus to include a material misstatement or to omit a
material fact required to be stated therein in order to make the statements,
therein, in light of the circumstances in which they were made, not misleading.
Nothing contained in this Section 8.2 shall be construed to mean that such
persons or entities other than the Investor (without the written consent of the
Investor prior to disclosure of such information) may not obtain non-public
information in the course of conducting due diligence in accordance with the
terms of this Agreement and nothing herein shall prevent any such persons or
entities from notifying the Company of their opinion that based on such due
diligence by such persons or entities, that the Registration Statement contains
an untrue statement of material fact or omits a material fact required to be
stated in the Registration Statement or necessary to make the statements
contained therein, in light of the circumstances in which they were made, not
misleading.

                                   ARTICLE IX.
                           CHOICE OF LAW/JURISDICTION

      Section 9.1. Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New Jersey without
regard to the principles of conflict of laws. The parties further agree that any
action between them shall be heard exclusively in Hudson County, New Jersey, and
expressly consent to the jurisdiction and venue of the Superior Court of New
Jersey, sitting in Hudson County, New Jersey and the United States District
Court of New Jersey, sitting in Newark, New Jersey, for the adjudication of any
civil action asserted pursuant to this paragraph.

                                      20
<PAGE>

                                   ARTICLE X.
                             ASSIGNMENT/TERMINATION

      Section 10.1. Assignment. Neither this Agreement nor any rights of the
Company hereunder may be assigned to any other Person.

      Section 10.2. Termination. The obligations of the Investor to make
Advances under Article II hereof shall terminate twenty-four (24) months after
the Effective Date.

                                   ARTICLE XI.
                                     NOTICES

      Section 11.1. Notices. Any notices, consents, waivers, or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile,
provided a copy is mailed by U.S. certified mail, return receipt requested;
(iii) three (3) days after being sent by U.S. certified mail, return receipt
requested, or (iv) one (1) day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications
shall be:

If to the Company, to:        U.S. Helicopter Corporation
                              Downtown Manhattan Heliport
                              Pier 6, East River
                              New York, NY 10004
                              Attention: John G. Murphy
                              Telephone: (212) 248-2002
                              Facsimile: (212) 248-0940

With a copy to:               Gallagher, Briody & Butler
                              Princeton Forrestal Village
                              155 Village Blvd., Suite 201
                              Attention: Thomas P. Gallagher, Esq.
                              Telephone: (609) 452-6000
                              Facsimile: (609) 452-0090

If to the Investor(s):        Cornell Capital Partners, LP
                              101 Hudson Street - Suite 3700
                              Jersey City, NJ 07302
                              Attention: Mark Angelo
                                         Portfolio Manager
                              Telephone: (201) 985-8300
                              Facsimile: (201) 985-8266

                                      21
<PAGE>

With a copy to:               Cornell Capital Partners, LP
                              101 Hudson Street - Suite 3700
                              Jersey City, NJ 07302
                              Attention: Troy J. Rillo, Esq.
                                         Senior Vice-President
                              Telephone: (201) 985-8300
                              Facsimile: (201) 985-8266

Each party shall provide five (5) days' prior written notice to the other party
of any change in address or facsimile number.

                                  ARTICLE XII.
                                  MISCELLANEOUS

      Section 12.1. Counterparts. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. In the event any signature page is
delivered by facsimile transmission, the party using such means of delivery
shall cause four (4) additional original executed signature pages to be
physically delivered to the other party within five (5) days of the execution
and delivery hereof, though failure to deliver such copies shall not affect the
validity of this Agreement.

      Section 12.2. Entire Agreement; Amendments. This Agreement supersedes all
other prior oral or written agreements between the Investor, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of
this Agreement may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

      Section 12.3. Reporting Entity for the Common Stock. The reporting entity
relied upon for the determination of the trading price or trading volume of the
Common Stock on any given Trading Day for the purposes of this Agreement shall
be Bloomberg, L.P. or any successor thereto. The written mutual consent of the
Investor and the Company shall be required to employ any other reporting entity.

      Section 12.4. Fees and Expenses. The Company hereby agrees to pay the
following fees:

            (a) Legal Fees. Except as provided in Section 12.4(b), each of the
parties shall pay its own fees and expenses (including the fees of any
attorneys, accountants, appraisers or others engaged by such party) in
connection with this Agreement and the transactions contemplated hereby. In
addition, on each advance date, the Company will pay to Yorkville Advisors
Management, LLC a structuring fee of Five Hundred Dollars ($500).

                                      22
<PAGE>

            (b) Structuring Fees.The Company shall pay the Investor the fee of
Ten Thousand Dollars ($10,000), which has been previously paid out of the gross
proceeds of the First Closing as such terms are defined in the Securities
Purchase Agreement dated August 4, 2004. This fee shall be deemed fully earned
on the date hereof.

            (c) Commitment Fees.

                  (i) On each Advance Date the Company shall pay to the
Investor, directly from the gross proceeds held in escrow, an amount equal to
five percent (5%) of the gross proceeds of each Advance. The Company hereby
agrees that if such payment, as is described above, is not made by the Company
on the Advance Date, such payment will be made at the direction of the Investor
as outlined and mandated by Section 2.3 of this Agreement.

                  (ii) The Company shall pay the Investor a commitment fee by
the issuance of shares of Common Stock equal to Nine percent (9%) of the
outstanding shares of Common Stock of the Company, calculated on a fully-diluted
basis (the "Investor's Shares"), which has been paid. For purposes of this
provision only, the phrase "outstanding shares of Common Stock of the Company on
a fully-diluted basis" shall mean the actual issued and outstanding shares of
Common Stock of the Company, plus all securities convertible or exercisable into
shares of the Company's Common Stock, including, without limitation, all shares
reserved for issuance under the 2004 Stock Incentive Plan. The Investor shall
not sell any Common Stock granted under this Agreement during the first three
(3) Months following effective registration with the SEC (the "Investor's
Lock-Down Period"). Thereafter, the Investor may sell up to twenty five percent
(25%) of its shares in any three (3) month period commencing after the
Investor's Lock-Down Period. In the event that the Company's then market
capitalization shall exceed Twenty Five Million Dollars ($25,000,000) during the
Investor's Lock-Down Period, the Investor shall not have any restrictions
detailed above.

                  (iii) Fully Earned. The Investor's Shares shall be deemed
fully earned as of the date hereof.

                  (iv) Registration Rights. The Investor's Shares will have
"piggy-back" registration rights.

      Section 12.5. Brokerage. Each of the parties hereto represents that it has
had no dealings in connection with this transaction with any finder or broker
who will demand payment of any fee or commission from the other party. The
Company on the one hand, and the Investor, on the other hand, agree to indemnify
the other against and hold the other harmless from any and all liabilities to
any person claiming brokerage commissions or finder's fees on account of
services purported to have been rendered on behalf of the indemnifying party in
connection with this Agreement or the transactions contemplated hereby.

                                      23
<PAGE>

      Section 12.6. Confidentiality. If for any reason the transactions
contemplated by this Agreement are not consummated, each of the parties hereto
shall keep confidential any information obtained from any other party (except
information publicly available or in such party's domain prior to the date
hereof, and except as required by court order) and shall promptly return to the
other parties all schedules, documents, instruments, work papers or other
written information without retaining copies thereof, previously furnished by it
as a result of this Agreement or in connection herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      24
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Standby Equity
Distribution Agreement to be executed by the undersigned, thereunto duly
authorized, as of the date first set forth above.

                                        COMPANY:
                                        U.S. HELICOPTER CORPORATION

                                        By: /s/ John G. Murphy
                                           -------------------
                                        Name: John G. Murphy
                                        Title: President & CEO

                                        INVESTOR:
                                        CORNELL CAPITAL PARTNERS, LP

                                        BY: YORKVILLE ADVISORS, LLC
                                        ITS: GENERAL PARTNER

                                        By: /s/ Mark Angelo
                                           ----------------
                                        Name: Mark Angelo
                                        Title: Portfolio Manager

                                      25
<PAGE>

                                    EXHIBIT A

                      ADVANCE NOTICE/COMPLIANCE CERTIFICATE

                           U.S. HELICOPTER CORPORATION

      The undersigned, John G. Murphy hereby certifies, with respect to the sale
of shares of Common Stock of U.S. Helicopter Corporation (the "Company"),
issuable in connection with this Advance Notice and Compliance Certificate dated
___________________ (the "Notice"), delivered pursuant to the Standby Equity
Distribution Agreement (the "Agreement"), as follows:

      1. The undersigned is the duly elected President and CEO of the Company.

      2. There are no fundamental changes to the information set forth in the
Registration Statement which would require the Company to file a post effective
amendment to the Registration Statement.

      3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company on or prior to the Advance Date
related to the Notice and has complied in all material respects with all
obligations and conditions contained in the Agreement.

      4. The Advance requested is _____________________.

      The undersigned has executed this Certificate this ____ day of
_________________.

                                        U.S. HELICOPTER CORPORATION

                                        By:_______________________________
                                        Name: John G. Murphy
                                        Title: President & CEO

                                   EXHIBIT A-1

<PAGE>

                                    EXHIBIT B

                              DISCLOSURE STATEMENT

                                   EXHIBIT B-1

<PAGE>

                                  SCHEDULED 2.6

                           U.S. HELICOPTER CORPORATION

      The undersigned hereby agrees that for a period commencing on the date
hereof and expiring on the termination of the Commitment Period as defined in
the Standby Equity Distribution Agreement dated April __, 2005 between U.S.
Helicopter Corporation (the "Company") and Cornell Capital Partners, LP (the
"Investor") (the "Lock-up Period"), he, she or it will not, directly or
indirectly, without the prior written consent of the Investor, issue, offer,
agree or offer to sell, sell, grant an option for the purchase or sale of,
transfer, pledge, assign, hypothecate, distribute or otherwise encumber or
dispose of except pursuant to Rule 144 of the General Rules and Regulations
under the Securities Act of 1933, any securities of the Company, including
common stock or options, rights, warrants or other securities underlying,
convertible into, exchangeable or exercisable for or evidencing any right to
purchase or subscribe for any common stock (whether or not beneficially owned by
the undersigned), or any beneficial interest therein (collectively, the
"Securities").

      In order to enable the aforesaid covenants to be enforced, the undersigned
hereby consents to the placing of legends and/or stop-transfer orders with the
transfer agent of the Company's securities with respect to any of the Securities
registered in the name of the undersigned or beneficially owned by the
undersigned, and the undersigned hereby confirms the undersigned's investment in
the Company.

Dated:   _______________, 2005

                                      Signature

                                      __________________________________________
                                      Address:__________________________________
                                      City, State, Zip Code:____________________

                                      __________________________________________
                                      Print Social Security Number
                                      or Taxpayer I.D. Number

                                 SCHEDULE 2.6-1<PAGE>

                                                                    EXHIBIT 10.6

THIS SECURED DEBENTURE, AND THE SECURITIES INTO WHICH IT IS CONVERTIBLE
(COLLECTIVELY, THE "SECURITIES"), HAVE NOT BEEN REGISTERED WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE. THE SECURITIES ARE BEING OFFERED PURSUANT TO A SAFE HARBOR FROM
REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). THE SECURITIES ARE "RESTRICTED" AND MAY NOT BE OFFERED OR
SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION
D OR PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
ACT AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH
INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE
AVAILABLE. FURTHER HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE MADE
EXCEPT IN COMPLIANCE WITH THE ACT.

                     AMENDED AND RESTATED SECURED DEBENTURE

                           U.S. HELICOPTER CORPORATION

                        5% SECURED CONVERTIBLE DEBENTURE

                                DUE APRIL 8, 2007

No. CCP-003                                                          $1,335,424

      This Amended and Restated Secured Debenture issued on April 8, 2005 (the
"Debenture") replaces those two (2) secured convertible debentures (the "Prior
Debentures") previously issued by U.S. Helicopter Corporation, a Delaware
corporation (the "Company"), to Cornell Capital Partners L.P. (together with its
permitted successors and assigns, the "Holder"). The first debenture was issued
on August 4, 2004 in the principal amount of One Million Dollars ($1,000,000)
and the second debenture was issued on February 24, 2005 in the principal amount
of Three Hundred Thousand Dollars ($300,000), both issued pursuant to the
Securities Purchase Agreement by and between the Company and the Holder dated
August 4, 2004. This Debenture reflects all amounts of principal and interest on
the Prior Debentures through the date hereof. All of the terms, rights,
obligations, covenants, warranties, and representations of the parties pursuant
to the Securities Purchase Agreement, Investor Registration Rights Agreement,
Security Agreement, Irrevocable Transfer Agent Instructions, or the Escrow
Agreement, each of which as they pertain to the Prior Debentures (collectively,
the "Prior Debenture Agreements") all of which are dated August 4, 2004, shall
remain in full force and effect except as and to the extent stated herein.
Notwithstanding the foregoing, to the extent that the terms of this Debenture
contradict or are inconsistent with the terms of any of the Prior Debenture
Agreements, the terms

<PAGE>

of this Debenture shall control. This Debenture is issued pursuant to exemptions
from registration under the Securities Act of 1933, as amended.

                                   ARTICLE I.

      SECTION 1.01 PRINCIPAL AND INTEREST. For value received, on April 8, 2007,
subject to Section 1.02 and Section 1.09 hereof, the Company hereby promises to
pay to the order of the Holder in lawful money of the United States of America
and in immediately available funds the principal sum of One Million Three
Hundred Thirty Five Thousand Four Hundred Twenty Four Dollars ($1,335,424),
together with interest on the unpaid principal of this Debenture at the rate of
five percent (5%) per year (computed on the basis of a 365-day year and the
actual days elapsed) from the date of this Debenture until paid.

      SECTION 1.02 PAYMENTS OF PRINCIPAL AND INTEREST. The Company shall make
monthly payments of principal and interest commencing on January 1, 2006, and
with monthly payments being due and payable on the first (1st) trading day of
each succeeding month thereafter until all amounts due hereunder have been paid
in full. The amount of each payment shall be Two Hundred Thousand Dollars
($200,000), which shall be applied first to costs, accrued interest and
redemption premium and then principal. Notwithstanding the foregoing, earlier
payments shall be made by the Company until January 1, 2006 in accordance with
Section 1.09 hereof.

      SECTION 1.03 OPTIONAL CONVERSION. The Holder is entitled, at its option,
to convert, and sell the Conversion Shares (as defined below) on the same day
pursuant to an effective registration statement, at any time and from time to
time, until payment in full of this Debenture, up to ten percent (10%) (the
"Contractual Limit") of the principal amount of the Debenture, plus accrued
interest, into shares (the "Conversion Shares") of the Company's common stock,
par value $.001 per share ("Common Stock"), at the price (the "Conversion
Price") equal to Twenty Cents $(0.20) per share. In no event shall the Holder be
entitled to convert this Debenture for a number of shares of Common Stock in
excess of that number of shares of Common Stock which, upon giving effect to
such conversion, would cause the aggregate number of shares of Common Stock
beneficially owned by the Holder and its affiliates to exceed nine and
ninety-nine hundredths percent (9.99%) of the outstanding shares of the Common
Stock following such conversion (which provision may be waived by the Investor
by written notice from the Investor to the Company, which notice shall be
effective 61 days after the date of such notice). No fraction of shares or scrip
representing fractions of shares will be issued on conversion, but the number of
shares issuable shall be rounded up to the nearest whole share. To convert this
Debenture, the Holder hereof shall deliver written notice thereof, substantially
in the form of Exhibit "A" to this Debenture, with appropriate insertions (the
"Conversion Notice"), to the Company at its address as set forth herein. The
date upon which the conversion shall be effective (the "Conversion Date") shall
be deemed to be the date set forth in the Conversion Notice.

      SECTION 1.04 RESERVATION OF COMMON STOCK. The Company shall reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of this Debenture, such number of
shares of Common Stock as shall from time to time be sufficient to effect such
conversion, based upon the Conversion Price. If at

                                       2
<PAGE>

any time the Company does not have a sufficient number of Conversion Shares
authorized and available, then the Company shall call and hold a special meeting
of its stockholders within sixty (60) days of that time for the sole purpose of
increasing the number of authorized shares of Common Stock.

      SECTION 1.05 RIGHT OF REDEMPTION. The Company at its option shall have the
right to redeem, with fifteen (15) days advance written notice (the "Redemption
Notice"), a portion or all of the amounts outstanding under the Debenture. The
Holder shall have the right to convert an amount up to ten percent (10%) of the
amount noted in the Redemption Notice; provided that such amount does not exceed
the ten percent (10%) conversion limitation noted in Section 1.03 above, during
the period between the Redemption Notice and the actual redemption date. In the
event that Holder's conversion of 10% of the amount noted in the Redemption
Notice would result in an overall conversion of greater than 10% of the
principal amount of the Debenture, then Holder's right of redemption pursuant to
this Section 1.05 shall be reduced accordingly.

      In the event the Holder has previously delivered a Notice of Conversion,
the Company shall have three (3) Trading Days from such Notice of Conversion to
submit to the Holder a Redemption Notice, which Redemption Notice if received by
the Holder within such three (3) day period shall apply to the portion of the
Debenture that was subject to the Notice of Conversion. The Company shall
consummate the redemption set forth in the Redemption Notice and pay the
redemption amount to the Holder within fifteen days (15) days of the date of
such Redemption Notice. The redemption amount shall be equal to one hundred
twenty percent (120%) of the amount redeemed plus accrued interest.

      If the Company fails to consummate a redemption and pay the redemption
amount within the applicable fifteen (15) day period specified above, then the
Company shall pay to the Holder liquidated damages (and not a penalty) of 2% of
the amount converted by the Holder.

      SECTION 1.06 REGISTRATION RIGHTS. The Company is obligated to register the
resale of the Conversion Shares under the Securities Act of 1933, as amended,
pursuant to the terms of a Registration Rights Agreement dated August 4, 2004
between the Company and the Holder (the "Investor Registration Rights
Agreement").

      SECTION 1.07 INTEREST PAYMENTS. Accrued interest shall be paid at the time
of maturity or conversion to the person in whose name this Debenture is
registered. At the time such interest is payable, the Company, in its sole
discretion, may elect to pay interest in cash (via wire transfer or certified
funds) or in the form of Common Stock. Notwithstanding the foregoing, in the
event of default, as described in Article III Section 3.01 hereunder, the Holder
may elect that the interest be paid in cash (via wire transfer or certified
funds) or in the form of Common Stock. If paid in the form of Common Stock, the
amount of stock to be issued will be calculated as follows: the value of the
stock shall be the Closing Bid Price on: (i) the date the interest payment is
due; or (ii) if the interest payment is not made when due, the date the interest
payment is made. A number of shares of Common Stock with a value equal to the
amount of interest due shall be issued. No fractional shares will be issued;
therefore, in the event that the value of the Common Stock per share does not
equal the total interest due, the Company will pay the balance in cash.

                                       3
<PAGE>

      SECTION 1.08 PAYING AGENT AND REGISTRAR. Initially, the Company will act
as paying agent and registrar. The Company may change any paying agent,
registrar, or Company-registrar by giving the Holder not less than ten (10)
business days' written notice of its election to do so, specifying the name,
address, telephone number and facsimile number of the paying agent or registrar.
The Company may act in any such capacity.

      SECTION 1.09 MANDATORY PREPAYMENT. The Company shall be obligated until
January 1, 2006 to remit to Holder an amount equal to ten percent (10%) of the
gross proceeds received pursuant to an advance requested by the Company under
the Standby Equity Distribution Agreement between the Company and Holder dated
August 4, 2004, as amended (the "SEDA"), as such requests are made by the
Company from time to time pursuant to the SEDA. Any such amounts shall be
applied to the amounts owed hereunder in accordance with Section 1.02 hereof.

      SECTION 1.10 SECURED NATURE OF DEBENTURE. This Debenture is secured by
certain assets and property of the Company, as more fully described in the
Security Agreement dated August 4, 2004.

                                  ARTICLE II.

      SECTION 2.01 AMENDMENTS AND WAIVER OF DEFAULT. The Debenture may not be
amended without the consent of the Holder. Notwithstanding the above, without
the consent of the Holder, the Debenture may be amended to cure any ambiguity,
defect or inconsistency, to provide for assumption of the Company obligations to
the Holder or to make any change that does not adversely affect the rights of
the Holder.

                                  ARTICLE III.

      SECTION 3.01 EVENTS OF DEFAULT. An Event of Default is defined as follows:
(a) failure by the Company to pay amounts due hereunder, when due, including,
without limitation, any principal, interest, redemption amount or liquidated
damages; (b) failure by the Company to comply with the terms of the Irrevocable
Transfer Agent Instructions; (c) failure by the Company's transfer agent to
issue freely tradeable Common Stock to the Holder within five (5) days of the
Company's receipt of the attached Notice of Conversion from Holder; (d) failure
by the Company for ten (10) days after notice to it to comply with any of its
other agreements in the Debenture; (e) events of bankruptcy or insolvency; (f) a
breach by the Company of its obligations under the Securities Purchase
Agreement, the Escrow Agreement, the Investor Registration Rights Agreement or
any other agreement entered into on August 4, 2004 between the Company and the
Holder which is not cured by the Company within ten (10) days after receipt of
written notice thereof. Upon the occurrence of an Event of Default, the Holder
may, in its sole discretion, accelerate full repayment of all debentures
outstanding and accrued interest thereon and may, notwithstanding any
limitations contained in this Debenture and/or the Securities Purchase Agreement
dated August 4, 2004 between the Company and Cornell Capital Partners, L.P. (the
"Securities Purchase Agreement"), convert (without regard to the Contractual
Limit specified in Section 1.03 hereof or otherwise) all amounts due hereunder
into shares of Common Stock pursuant to Section 1.03 herein and sell or transfer
any such shares without any contractual restriction whatsoever.

                                       4
<PAGE>

      SECTION 3.02 FAILURE TO ISSUE UNRESTRICTED COMMON STOCK. As indicated in
Article III Section 3.01, a breach by the Company of its obligations under the
Investor Registration Rights Agreement shall be deemed an Event of Default,
which if not cured within ten (10) days, shall entitle the Holder to accelerate
full repayment of all debentures outstanding and accrued interest thereon or,
notwithstanding any limitations contained in this Debenture and/or the
Securities Purchase Agreement, to convert all debentures outstanding and accrued
interest thereon into shares of Common Stock pursuant to Section 1.03 herein.
The Company acknowledges that failure to honor a Notice of Conversion shall
cause irreparable harm to the Holder.

                                  ARTICLE IV.

      SECTION 4.01 RIGHTS AND TERMS OF CONVERSION. This Debenture, in whole or
in part, may be converted at any time following the date of closing into shares
of Common Stock at a price equal to the Conversion Price as described in Section
1.02 above.

      SECTION 4.02 RE-ISSUANCE OF DEBENTURE. When the Holder elects to convert a
part of the Debenture, then the Company shall reissue a new Debenture in the
same form as this Debenture to reflect the new unconverted principal amount.

                                   ARTICLE V.

      SECTION 5.01 ADJUSTMENT OF CONVERSION PRICE UPON SUBDIVISION OR
COMBINATION OF COMMON STOCK. If the Company at any time after the date of
issuance of this Debenture subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, any Conversion Price in effect
immediately prior to such subdivision will be proportionately reduced. If the
Company at any time after the date of issuance of this Debenture combines (by
combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, any
Conversion Price in effect immediately prior to such combination will be
proportionately increased. Any adjustment under this Section 5.01 shall become
effective at the close of business on the date the subdivision or combination
becomes effective.

      SECTION 5.02 CONSENT OF HOLDER TO SELL CAPITAL STOCK OR GRANT SECURITY
INTERESTS. Except for the Standby Equity Distribution Agreement dated August 4,
2004 between the Company and Cornell Capital Partners, LP. so long as at least
$100,000 of the principal of this Note remains unpaid and unconverted, the
Company shall not, without the prior consent of the Holder, issue or sell (i)any
Common Stock or Preferred Stock without consideration or for a consideration per
share less than its fair market value determined immediately prior to its
issuance, (ii)issue or sell any Preferred Stock, warrant, option, right,
contract, call, or other security or instrument granting the holder thereof the
right to acquire Common Stock without consideration or for a consideration per
share less than such Common Stock's fair market value determined immediately
prior to its issuance, (iii) enter into any security instrument granting the
holder a security interest in any of the assets of the Company (provided that
the Company may enter into security agreements with a third party (the "Third
Party") relating to the purchase, lease, and/or financing of equipment and the
Holder will subordinate the priority of Holder's lien to the lien of such Third
Party specific to the equipment so purchased, leased and/or financed), or

                                       5
<PAGE>

(iv) file any registration statement on Form S-8 except for securities covered
by the Company's 2004 Stock Incentive Plan.

                                  ARTICLE VI.

      SECTION 6.01 NOTICE. Notices regarding this Debenture shall be sent to the
parties at the following addresses, unless a party notifies the other parties,
in writing, of a change of address:

If to the Company, to:        U.S. Helicopter Corporation.
                              Downtown Manhattan Heliport
                              Pier 6, East River
                              New York, New York 10004
                              Attention: John G. Murphy
                                         President & CEO
                              Telephone: (212) 248-2002
                              Facsimile: (212) 248-0940

With a copy to:               Gallagher, Briody & Butler
                              Princeton Forrestal Village
                              155 Village Boulevard, Suite 201
                              Princeton, NJ 08540
                              Attention: Thomas P. Gallagher, Esq.
                              Telephone: (609) 452-6000
                              Facsimile: (609) 452-0090

If to the Holder:             Cornell Capital Partners, LP
                              101 Hudson Street, Suite 3700
                              Jersey City, NJ 07303
                              Telephone: (201) 985-8300
                              Facsimile: (201) 985-8266

With a copy to:               Cornell Capital Partners, LP
                              101 Hudson Street - Suite 3700
                              Jersey City, NJ 07302
                              Attention: Troy J. Rillo, Esq.
                                         Senior Vice-President
                              Telephone: (201) 985-8300
                              Facsimile: (201) 985-8266

      SECTION 6.02 GOVERNING LAW. This Debenture shall be deemed to be made
under and shall be construed in accordance with the laws of the State of New
Jersey without giving effect to the principals of conflict of laws thereof. Each
of the parties consents to the exclusive jurisdiction of the U.S. District Court
sitting in the District of the State of New Jersey or the state courts of the
State of New Jersey sitting in Hudson County, New Jersey in connection with

                                       6
<PAGE>

any dispute arising under this Debenture and hereby waives, to the maximum
extent permitted by law, any objection, including any objection based on forum
non conveniens to the bringing of any such proceeding in such jurisdictions.

      SECTION 6.03 SEVERABILITY. The invalidity of any of the provisions of this
Debenture shall not invalidate or otherwise affect any of the other provisions
of this Debenture, which shall remain in full force and effect.

      SECTION 6.04 ENTIRE AGREEMENT AND AMENDMENTS. This Debenture represents
the entire agreement between the parties hereto with respect to the subject
matter hereof and there are no representations, warranties or commitments,
except as set forth herein. This Debenture may be amended only by an instrument
in writing executed by the parties hereto.

      SECTION 6.05 COUNTERPARTS. This Debenture may be executed in multiple
counterparts, each of which shall be an original, but all of which shall be
deemed to constitute on instrument.

      IN WITNESS WHEREOF, with the intent to be legally bound hereby, the
Company as executed this Debenture as of the date first written above.

                                      U.S. HELICOPTER CORPORATION

                                      By: /s/  John G. Murphy
                                         --------------------
                                      Name: John G. Murphy
                                      Title: President & Chief Executive Officer

                                       7
<PAGE>

                                   EXHIBIT "A"

                              NOTICE OF CONVERSION

        (TO BE EXECUTED BY THE HOLDER IN ORDER TO CONVERT THE DEBENTURE)

TO:

      The undersigned hereby irrevocably elects to convert
$___________________________________ of the principal amount of the above
Debenture into Shares of Common Stock of U.S. Helicopter, Inc., according to the
conditions stated therein, as of the Conversion Date written below.

CONVERSION DATE:                _____________________________________________

APPLICABLE CONVERSION PRICE:    _____________________________________________

SIGNATURE:                      _____________________________________________

NAME:                           _____________________________________________

ADDRESS:                        _____________________________________________

AMOUNT TO BE CONVERTED:         $____________________________________________

AMOUNT OF DEBENTURE
UNCONVERTED:                    $____________________________________________

CONVERSION PRICE PER SHARE:     $____________________________________________

NUMBER OF SHARES OF COMMON
STOCK TO BE ISSUED:             _____________________________________________

PLEASE ISSUE THE SHARES OF
COMMON STOCK IN THE FOLLOWING
NAME AND TO THE FOLLOWING
ADDRESS:                        _____________________________________________

ISSUE TO:                       _____________________________________________

AUTHORIZED SIGNATURE:           _____________________________________________

NAME:                           _____________________________________________

TITLE:                          _____________________________________________

PHONE NUMBER:                   _____________________________________________

BROKER DTC PARTICIPANT CODE:    _____________________________________________

ACCOUNT NUMBER:                 _____________________________________________

                                       A-1

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