Document:

ex10-2.htm

     

    
      

      

    

    
 

    Exhibit
10.2

    

     

    PROMISSORY
NOTE

    

    $50,000,000 June
18, 2009

    

    

    FOR VALUE
RECEIVED, AMERICA FIRST TAX EXEMPT INVESTORS, L.P., a publicly traded Delaware
limited partnership (“Borrower”), hereby
promises to pay to the order of BANK OF AMERICA, N.A., a national banking
association (together with any and all of its successors and assigns and/or any
other holder of this Note, “Lender”), without
offset, in immediately available funds in lawful money of the United States of
America, at DC9-909-02-02, 1801 K Street NW, 2nd Floor,
Washington, DC 20006, the principal sum of Fifty Million and No/100 Dollars
($50,000,000) (or the unpaid balance of all principal advanced against this
Note, if that amount is less), together with interest on the unpaid principal
balance of this Note from day to day outstanding as hereinafter
provided.

    

    Section
1.                   Payment Schedule and
Maturity Date.

    

    (a)         Interest
Payments.  Prior to maturity, accrued and unpaid interest shall
be due and payable in arrears on the fifth (5th) day of
each month commencing on July 5, 2009.  Borrower shall use the
interest payments made with respect to the underlying Bonds (as defined in the
Loan Agreement) to pay interest coming due under this Note; provided, however,
that Borrower’s obligation to make monthly interest payments is absolute, and
Borrower shall not be relieved of such obligation if interest payments are not
received by the Collateral Agent (as defined in the Loan Agreement) with respect
to the Bonds.  Subject to the terms and conditions of the Loan
Agreement and Borrower’s payment obligations under this Note, Borrower may use
interest payments made with respect to the underlying Bonds that are in excess
of the interest coming due under this Note for any other uses that Borrower may
elect.

    

    (b)         Principal
Payments.  Prior to maturity, Borrower shall make principal
payments on the fifth (5th) day of
each October, January, April and July, commencing on October 5, 2009, in the
amounts set forth on Schedule 1(b)
attached hereto and incorporated herein, which amounts are intended to equal the
aggregate amount of sinking fund payments received by the Collateral Agent
during the preceding quarter with respect to certain of the underlying
Bonds.

    

    (c)         Maturity.  The
entire principal balance of this Note then unpaid, together with all accrued and
unpaid interest and all other amounts payable hereunder and under the other Loan
Documents (as hereinafter defined), shall be due and payable in full on June 30,
2010 (the “Maturity
Date”), the final maturity of this Note.

    

    Section
1A                      Extension
Option.  Lender shall grant a request by Borrower to extend the
Maturity Date of this Note to December 31, 2010 (the “Extended Maturity
Date”), upon and subject to the following terms and
conditions:

    

    (a)           Unless
otherwise agreed by Lender in writing:

    

    (i)           Borrower
shall request the extension, if at all, by written notice to the Lender not more
than ninety (90) days, and not less than forty-five (45) days, prior to the
Maturity Date.

    

    (ii)           At
the time of the request, and at the time of the extension, there shall not exist
any Event of Default, nor any condition or state of facts which after notice
and/or lapse of time would constitute an Event of Default.

    

    (iii)           Current
financial statements (dated not earlier than thirty (30) days prior to the
request for extension) regarding the Borrower, the General Partner, the Project
Owners (as defined in the Loan Agreement) and the Projects (as defined in the
Loan Agreement) and all other financial statements and other information as may
be required under the Loan Agreement, shall have been submitted to the Lender
within 15 Business Days of the request for extension, and there shall not have
occurred, in the reasonable opinion of the Lender, any material adverse change
in the business or financial condition of the Borrower or its General
Partner.

    

    (iv)           Whether
or not the extension becomes effective, Borrower shall pay all out-of-pocket
costs and expenses incurred by Lender in connection with the proposed extension
(pre- and post-closing), including appraisal fees, environmental audit and
reasonable attorneys’ fees actually incurred by Lender; all such costs and
expenses incurred up to the time of Lender’s written agreement to the extension
shall be due and payable prior to Lender’s execution of that agreement (or if
the proposed extension does not become effective, then upon demand by Lender),
and any future failure to pay such amounts shall constitute a default under the
Loan Documents.

    

    (v)           The
Loan-to-Value Ratio of the Bond Portfolio, determined by Lender in accordance
with the provisions of the Loan Agreement, shall be not greater than 75% at the
time of the extension.

    

    (vi)           At
the time of the request and the time of the extension, the Projects shall then
be performing in accordance with pro forma operating statements provided to
Lender by Borrower, and the Bond Portfolio shall then satisfy a Debt Service
Coverage Ratio of 1.1 to 1.0, determined by Lender in accordance with the
provisions of the Loan Agreement, or the Borrower may then deposit additional
cash collateral with the Lender to cause the Bond Portfolio to be compliance
with the Debt Service Coverage Ratio, as determined by the Lender in accordance
with the Loan Agreement or may rescind the request for extension (in which case
the Loan will mature on the Maturity Date).

    

    (vii)              Without
limiting the requirements of subsection (iv) above, Borrower shall pay an
extension fee to the Lender in an amount equal to fifty (50) basis points of the
then-outstanding principal balance of this Note.

    

    If all of
the foregoing conditions are not satisfied strictly in accordance with their
terms, the extension shall not be or become effective.

    

    (b)           All
terms and conditions of the Loan Documents shall continue to apply to the
extended term except to the extent that the definition of “Maturity Date” shall
mean the “Extended Maturity Date”.

    

    Section
2.                   Security; Loan
Documents.  The security for this Note includes the Loan and
Security Agreement of even date herewith (as the same may from time to time be
amended, restated, modified or supplemented, the “Loan Agreement”) by
and among Borrower, Lender and Deutsche Bank Trust Company Americas, as
Collateral Agent, pursuant to which, among other things, Borrower has pledged
all of its rights, title and interest in and to the Bonds and related collateral
to the Lender.  This Note, the Loan Agreement and all other documents
now or hereafter securing, guaranteeing or executed in connection with the loan
evidenced by this Note (the “Loan”), as the same
may from time to time be amended, restated, modified or supplemented, are herein
sometimes called individually a “Loan Document” and
together the “Loan
Documents.”

    

    Section
3.                   Interest
Rate.

    

    (a)         BBA LIBOR Daily Floating
Rate.  The unpaid principal balance of this Note from day to
day outstanding which is not past due, shall bear interest at a fluctuating rate
of interest per annum equal to the BBA LIBOR Daily Floating Rate for that day
plus three hundred ninety (390) basis points per annum (the “Note
Rate”).  The “BBA LIBOR Daily Floating
Rate” shall mean a fluctuating rate of interest per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as selected by Lender from time to time) as determined
for each Business Day at approximately 11:00 a.m. London time two (2) London
Banking Days prior to the date in question, for U.S. Dollar deposits (for
delivery on the first day of such interest period) with a one month term, as
adjusted from time to time in Lender’s sole discretion for reserve requirements,
deposit insurance assessment rates and other regulatory costs.  A
“London Banking
Day” is a day on which banks in London are open for business and dealing
in offshore dollars.  Interest shall be computed for the actual number
of days which have elapsed, on the basis of a 360-day year.

    

    (b)           Alternative
Rates.  Lender may notify Borrower if the BBA LIBOR Daily
Floating Rate is not available for any reason, or if Lender determines that no
adequate basis exists for determining the BBA LIBOR Daily Floating Rate, or that
the BBA LIBOR Daily Floating Rate will not adequately and fairly reflect the
cost to Lender of funding the Loan, or that any applicable Law or regulation or
compliance therewith by Lender prohibits or restricts or makes impossible the
charging of interest based on the BBA LIBOR Daily Floating Rate.  If
Lender so notifies Borrower, then interest shall accrue and be payable on the
unpaid principal balance of this Note at a fluctuating rate of interest equal to
the Prime Rate of Lender plus one hundred (100) basis points per annum, from the
date of such notification by Lender until Lender notifies Borrower that the
circumstances giving rise to such suspension no longer exist, or until the
Maturity Date of this Note (whether by acceleration, declaration, extension or
otherwise), whichever is earlier to occur.  The term “Prime Rate” means, on
any day, the rate of interest per annum then most recently established by Lender
as its “prime rate.”  Any such rate is a general reference rate of
interest, may not be related to any other rate, and may not be the lowest or
best rate actually charged by Lender to any customer or a favored rate and may
not correspond with future increases or decreases in interest rates charged by
other lenders or market rates in general, and Lender may make various business
or other loans at rates of interest having no relationship to such
rate.  Any change in the Prime Rate shall take effect at the opening
of business on the day specified in the public announcement of a change in
Lender’s Prime Rate.  If Lender (including any subsequent holder of
this Note) ceases to exist or to establish or publish a prime rate from which
the Prime Rate is then determined, the applicable variable rate from which the
Prime Rate is determined thereafter shall be instead the prime rate reported in
The Wall Street
Journal (or the average prime rate if a high and a low prime rate are
therein reported), and the Prime Rate shall change without notice with each
change in such prime rate as of the date such change is reported.

    

    (c)           Past Due
Rate.  If any amount payable by Borrower under any Loan
Document is not paid when due (without regard to any applicable grace periods),
such amount shall thereafter bear interest at the Past Due Rate (as defined
below) to the fullest extent permitted by applicable Law.  Accrued and
unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable on demand, at a fluctuating rate per annum (the “Past Due Rate”) equal
to the Note Rate plus four hundred (400) basis points.

    

    Section
4                      Prepayment.  Borrower
may prepay the principal balance of this Note, in full at any time or in part
from time to time, without fee, premium or penalty, provided that: (a) Lender
shall have actually received from Borrower 30 days prior written notice of (i)
Borrower’s intent to prepay, (ii) the amount of principal which will be prepaid
(the “Prepaid
Principal”), and (iii) the date on which the prepayment will be made; (b)
subject to Section 3.10 of the Loan Agreement, each prepayment shall be in the
amount of $1,000 or a larger integral multiple of $1,000 (unless the prepayment
retires the outstanding balance of this Note in full); and (c) each prepayment
shall be in the amount of 100% of the Prepaid Principal, plus accrued unpaid
interest thereon to the date of prepayment, plus any other sums which have
become due to Lender under the Loan Documents on or before the date of
prepayment but have not been paid.  The provisions of this Section 4
shall not be construed to limit Borrower’s obligations under Section 3.10 of the
Loan Agreement.

    

    Section
5.                   Late
Charges.  If Borrower shall fail to make any payment under the
terms of this Note (other than the payment due at maturity) within fifteen (15)
days after the date such payment is due, Borrower shall pay to Lender on demand
a late charge equal to four percent (4%) of the amount of such
payment.  Such fifteen (15) day period shall not be construed as in
any way extending the due date of any payment.  The late charge is
imposed for the purpose of defraying the expenses of Lender incident to handling
such delinquent payment.  This charge shall be in addition to, and not
in lieu of, any other amount that Lender may be entitled to receive or action
that Lender may be authorized to take as a result of such late
payment.

    

    Section
6.                   Certain Provisions Regarding
Payments.  Subject to Section 3.10 of the Loan Agreement, all
payments made under this Note shall be applied, to the extent thereof, to late
charges, to accrued but unpaid interest, to unpaid principal, and to any other
sums due and unpaid to Lender under the Loan Documents, in such manner and order
as Lender may elect in its sole discretion, any instructions from Borrower or
anyone else to the contrary notwithstanding.  Remittances shall be
made without offset, demand, counterclaim, deduction, or recoupment (each of
which is hereby waived) and shall be accepted subject to the condition that any
check or draft may be handled for collection in accordance with the practice of
the collecting bank or banks.  Acceptance by Lender of any payment in
an amount less than the amount then due on any indebtedness shall be deemed an
acceptance on account only, notwithstanding any notation on or accompanying such
partial payment to the contrary, and shall not in any way (a) waive or excuse
the existence of an Event of Default (as hereinafter defined), (b) waive, impair
or extinguish any right or remedy available to Lender hereunder or under the
other Loan Documents, or (c) waive the requirement of punctual payment and
performance or constitute a novation in any respect.  Payments
received after 2:00 p.m. shall be deemed to be received on, and shall be posted
as of, the following Business Day.  Whenever any payment under this
Note or any other Loan Document falls due on a day which is not a Business Day,
such payment may be made on the next succeeding Business Day.

    

    Section
7.                   Events of
Default.  The occurrence of any one or more of the following
shall constitute an “Event of Default”
under this Note:

    

    (a)         Borrower
fails to pay within ten (10) Business Days of when due and payable any amounts
payable by Borrower to Lender under the terms of this Note.

    

    (b)         Any
other covenant, agreement or condition in this Note is not fully and timely
performed, observed or kept in any material respects, subject to any applicable
grace or cure period.

    

    (c)         An
Event of Default (as therein defined) occurs under any of the Loan Documents
other than this Note (subject to any applicable grace or cure
period).

    

    Section
8.                   Remedies.  Upon
the occurrence of an Event of Default, Lender may at any time thereafter
exercise any one or more of the following rights, powers and
remedies:

    

    (a)         Lender
may accelerate the Maturity Date and declare the unpaid principal balance and
accrued but unpaid interest on this Note, and all other amounts payable
hereunder and under the other Loan Documents, at once due and payable, and upon
such declaration the same shall at once be due and payable.

    

    (b)         Lender
may set off the amount due against any and all accounts, credits, money,
securities or other property now or hereafter on deposit with, held by or in the
possession of Lender to the credit or for the account of Borrower, without
notice to or the consent of Borrower.

    

    (c)         Lender
may exercise, and may direct the Collateral Agent to exercise, any of its or
their other rights, powers and remedies under the Loan Documents or at law or in
equity.

    

    Section
9.                   Remedies
Cumulative.  All of the rights and remedies of Lender and the
Collateral Agent under this Note and the other Loan Documents are cumulative of
each other and of any and all other rights at law or in equity, and the exercise
by Lender and/or the Collateral Agent of any one or more of such rights and
remedies shall not preclude the simultaneous or later exercise by Lender and/or
the Collateral Agent of any or all such other rights and remedies.  No
single or partial exercise of any right or remedy shall exhaust it or preclude
any other or further exercise thereof, and every right and remedy may be
exercised at any time and from time to time.  No failure by Lender or
the Collateral Agent to exercise, nor delay in exercising, any right or remedy
shall operate as a waiver of such right or remedy or as a waiver of any Event of
Default.

    

    Section
10.                      Costs and Expenses of
Enforcement.  Borrower agrees to pay to Lender on demand all
costs and expenses incurred by Lender and/or the Collateral Agent in seeking to
collect this Note or to enforce any of Lender’s rights and remedies under the
Loan Documents, including court costs and reasonable attorneys’ fees and
expenses, whether or not suit is filed hereon, or whether in connection with
bankruptcy, insolvency or appeal.

    

    Section
11.                      Service of
Process.  Borrower hereby irrevocably designates and appoints
Thomas McLeay, 1004 Farnam Street, Suite 400, Omaha, Nebraska 68102, as
Borrower’s authorized agent to accept and acknowledge on Borrower’s behalf
service of any and all process that may be served in any suit, action, or
proceeding instituted in connection with this Note in any state or federal court
sitting in the State of Maryland.  If such agent shall cease so to
act, Borrower shall irrevocably designate and appoint without delay another such
agent in the State of Maryland satisfactory to Lender and shall promptly deliver
to Lender evidence in writing of such agent’s acceptance of such appointment and
its agreement that such appointment shall be irrevocable.

    

    Borrower
hereby consents to process being served in any suit, action, or proceeding
instituted in connection with this Note by (a) the mailing of a copy thereof by
certified mail, postage prepaid, return receipt requested, to Borrower and (b)
serving a copy thereof upon the agent hereinabove designated and appointed by
Borrower as Borrower’s agent for service of process.  Borrower
irrevocably agrees that such service shall be deemed to be service of process
upon Borrower in any such suit, action, or proceeding.  Nothing in
this Note shall affect the right of Lender to serve process in any manner
otherwise permitted by law and nothing in this Note will limit the right of
Lender otherwise to bring proceedings against Borrower in the courts of any
jurisdiction or jurisdictions, subject to any provision or agreement for
arbitration or dispute resolution set forth in the Loan Agreement.

    

    Section
12.                      Heirs, Successors and
Assigns.  The terms of this Note and of the other Loan
Documents shall bind and inure to the benefit of the heirs, devisees,
representatives, successors and assigns of the parties.  The foregoing
sentence shall not be construed to permit Borrower to assign the Loan except as
otherwise permitted under the Loan Documents.

    

    Section
13.                      General
Provisions.  Time is of the essence with respect to Borrower’s
obligations under this Note.  If more than one person or entity
executes this Note as Borrower, all of said parties shall be jointly and
severally liable for payment of the indebtedness evidenced
hereby.  Borrower and each party executing this Note as Borrower
hereby severally (a) waive demand, presentment for payment, notice of dishonor
and of nonpayment, protest, notice of protest, notice of intent to accelerate,
notice of acceleration and all other notices (except any notices which are
specifically required by this Note or any other Loan Document), filing of suit
and diligence in collecting this Note or enforcing any of the security herefor;
(b) agree to any substitution, subordination, exchange or release of any such
security or the release of any party primarily or secondarily liable hereon; (c)
agree that neither the Lender nor the Collateral Agent shall be required first
to institute suit or exhaust its remedies hereon against Borrower or others
liable or to become liable hereon or to perfect or enforce its rights against
them or any security herefor; (d) consent to any extensions or postponements of
time of payment of this Note for any period or periods of time and to any
partial payments, before or after maturity, and to any other indulgences with
respect hereto, without notice thereof to any of them; and (e) submit (and waive
all rights to object) to non-exclusive personal jurisdiction of any state or
federal court sitting in the State of Maryland for the enforcement of any and
all obligations under this Note and the other Loan Documents; (f) waive the
benefit of all homestead and similar exemptions as to this Note; (g) agree that
their liability under this Note shall not be affected or impaired by any
determination that any title, security interest or lien taken by Lender to
secure this Note is invalid or unperfected; and (h) hereby subordinate to the
Loan and the Loan Documents any and all rights against each other obligor
hereunder, if any, and any security for the payment of this Note, whether by
subrogation, agreement or otherwise, until this Note is paid in
full.  A determination that any provision of this Note is
unenforceable or invalid shall not affect the enforceability or validity of any
other provision and the determination that the application of any provision of
this Note to any person or circumstance is illegal or unenforceable shall not
affect the enforceability or validity of such provision as it may apply to other
persons or circumstances.  This Note may not be amended except in a
writing specifically intended for such purpose and executed by the party against
whom enforcement of the amendment is sought.  Captions and headings in
this Note are for convenience only and shall be disregarded in construing
it.  This Note and its validity, enforcement and interpretation shall
be governed by the laws of the State of Maryland (without regard to any
principles of conflicts of laws) and applicable United States federal
law.  Whenever a time of day is referred to herein, unless otherwise
specified such time shall be the local time of the place where payment of this
Note is to be made.  The term “Business Day” shall
mean a day on which Lender is open for the conduct of substantially all of its
banking business at its office in the city in which this Note is payable
(excluding Saturdays and Sundays).  Capitalized terms used herein
without definition shall have the meanings ascribed to such terms in the Loan
Agreement.  The words “include” and “including” shall be interpreted
as if followed by the words “without limitation.”

    

    Section
14.                      Notices.  Any
notice, request, or demand to or upon Borrower or Lender shall be deemed to have
been properly given or made when delivered in accordance with the terms of the
Loan Agreement regarding notices.

    

    Section
15.                      No
Usury.  It is expressly stipulated and agreed to be the intent
of Borrower and Lender at all times to comply with applicable state law or
applicable United States federal law (to the extent that it permits Lender to
contract for, charge, take, reserve, or receive a greater amount of interest
than under state law) and that this Section shall control every other covenant
and agreement in this Note and the other Loan Documents.  If
applicable state or federal law should at any time be judicially interpreted so
as to render usurious any amount called for under this Note or under any of the
other Loan Documents, or contracted for, charged, taken, reserved, or received
with respect to the Loan, or if Lender’s exercise of the option to accelerate
the Maturity Date or Extended Maturity Date, if applicable, or if any prepayment
by Borrower results in Borrower having paid any interest in excess of that
permitted by applicable law, then it is Lender’s express intent that all excess
amounts theretofore collected by Lender shall be credited on the principal
balance of this Note and all other indebtedness secured by the Loan Agreement,
and the provisions of this Note and the other Loan Documents shall immediately
be deemed reformed and the amounts thereafter collectible hereunder and
thereunder reduced, without the necessity of the execution of any new documents,
so as to comply with the applicable law, but so as to permit the recovery of the
fullest amount otherwise called for hereunder or thereunder.  All sums
paid or agreed to be paid to Lender for the use or forbearance of the Loan
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term of the Loan.

    

    

    [Signature
Follows on Next Page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, Borrower has duly
executed this Note under seal as of the date first above written.

    

    BORROWER:

    

    AMERICA
FIRST TAX EXEMPT INVESTORS, L.P.,

    a
Delaware limited partnership

    

    By:           America
First Capital Associates
Limited                                                                           Partnership
Two,

    a
Delaware limited partnership,

    its
General Partner

    

    
      	
               
      

            	
              By:

            	
              The
      Burlington Capital Group LLC,

            

    

     

    
      	
               
      

            	
              a
      Delaware limited liability company,

            

    

     

    
      	
               
      

            	
              its
      General Partner

            

    

     

    By: /s/
Michael J. Draper
_____________________________ [SEAL]

     

    Michael
J. Draper

    Chief
Financial Officer

     

    

    STATE OF
Nebraska, COUNTY OF Douglas, TO WIT:

    

    I HEREBY CERTIFY, that on this 15th day
of June, 2009, before me, the undersigned Notary Public of said State,
personally appeared Michael J. Draper, who acknowledged himself to be the Chief
Financial Officer of The Burlington Capital Group LLC, a Delaware limited
liability company, the general partner of America First Capital Associates
Limited Partnership Two, a Delaware limited partnership, the general partner of
America First Tax Exempt Investors, L.P., a Delaware limited partnership, known
to me (or satisfactorily proven) to be the person whose name is subscribed to
the within instrument, and acknowledged that he executed the same for the
purposes therein contained as the duly authorized Chief Financial Officer of
said limited liability company, as general partner of said limited partnership
by signing the name of the limited liability company by himself as Chief
Financial Officer.

    

    WITNESS my hand and Notarial
Seal.

    

    /s/ Michelle N. Leas

    _______________________[SEAL]

    Notary Public

    

    

    My
Commission Expires: 3/12/2013

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
1(b)

    

    (Quarterly
Principal Payments)

    

    
      	
              Payment Date

            	
              Payment Amount

            
	
              October
      5, 2009

            	
              $136,667.00

            
	
              January
      5, 2010

            	
              $154,333.00

            
	
              April
      5, 2010

            	
              $220,000.00

            
	
              July
      5, 2010, if applicable

            	
              $192,000.00

            
	
              October
      5, 2010, if applicable

            	
              $180,000.00team_8k-ex10x6.htm

    Exhibit
10.6

    

    

    AMENDED
AND RESTATED

    STOCK
PURCHASE AGREEMENT

    

    

    among

    

    

    TEAM
Nation Holdings, Inc., a Nevada corporation ("Buyer")

    

    

    and

    

    

    David
Kayton, an individual ("Seller")

    

    

    and

    

    

    First
Southwestern Title Company of California, a

    California
corporation ("Company")

    

    

    

    

    

    

    Dated:
June 15, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    AMENDED
AND RESTATED STOCK PURCHASE AGREEMENT

    

    THIS
AMENDED AND RESTATED STOCK PURCHASE AGREEMENT (the "Agreement"), dated as of
June 2, 2008 (the "Effective Date"), is made by and among TEAM Nation Holdings,
Inc., a Nevada corporation ("Buyer") and David Kayton, an individual ("Seller"),
the owner of a total of two hundred thirty eight and seventy-five one/hundredths
(238.75) shares, which represents approximately ninety-five and fifty
one/hundredths percent (95.5%) of the outstanding and issued shares of First
Southwestern Title Company of California, a California corporation (the
"Company", of which Buyer is acquiring two hundred twelve and fifty
one/hundredths (212.50) shares (the “Stock”), which represents eighty-five
percent (85%) of the total outstanding and issued shares of the
Company.

    

    BACKGROUND
STATEMENT/RECITALS

    

    The
Seller holds and owns, or as of a date that is at least thirty (30) days prior
to the Closing Date, as herein defined, will hold and own the Stock, free and
clear of all liens, encumbrances, charges, assessments and adverse claims of any
kind whatsoever other than Permitted Encumbrances.  The Seller desires
to sell and transfer, and the Buyer desires to purchase and acquire, the Stock
for the consideration, and upon the terms and subject to the conditions set
forth in this Agreement and the related documents to be executed and delivered
in connection herewith (the "Transaction").

    

    This
Agreement supersedes and replaces in its entirety that certain Stock Purchase
Agreement dated June 2, 2008 (the “Original Agreement”), by and between Buyer
and Seller, such that, after the date hereof, the Original Agreement shall have
no further force of effect.

    

    TERMS OF
AGREEMENT

    

    NOW,
THEREFORE, in consideration of the mutual covenants, promises and undertakings
set forth in this Agreement, the parties, intending to be legally bound, hereby
agree as follows:

    

    ARTICLE
I.

    DEFINITIONS

    

    Section 1.1 Definitions. The following terms shall
have the indicated meanings unless the context requires otherwise:

    

    "Business Day" means any day
other than a day, which is a Saturday, Sunday or banking holiday in the State of
California.

    

    "Code" means the Internal
Revenue Code of 1986, as amended.

     

     

    1

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Common Stock" means the
common stock, no par value per share, of the Company.

    

    "Company" means First
Southwestern Title Company of California, a California corporation.

    

    "Company Stock" means all of
the issued and outstanding Common Stock and any other issued and outstanding
securities of the Company.

    

    "Employee" means any Person
employed by the Company in its business and set forth on the Schedule to Section 3.1(n)
hereto.

    

    "ERISA" means the Employee
Retirement Income Security Act of 1974, as amended.

    

    "GAAP" means generally
accepted United States accounting principles, as in effect on the date hereof,
applied on a basis consistent with prior periods.

    

    "Governmental Authority" means
any foreign, United States federal, state or local government, political
subdivision or governmental or regulatory authority, agency, board, bureau,
commission, instrumentality or court or quasi-governmental
authority.

    

    "Interim Financial Statements"
means monthly balance sheets and income statements for the Company
prepared in accordance with GAAP, without footnotes, consistently applied by the
Company with respect to prior periods, furnished by the Seller to the Buyer
within ten (10) Business Days after the close of each calendar month after the
date of this Agreement and prior to Closing.

    

    "Knowledge" means the actual
knowledge of David Kayton and any other fact or circumstance that has come to
the attention of David Kayton.

    

    "Permitted Encumbrances" means
applicable laws, rules and regulations, including applicable federal and state
securities laws and those promulgated by the California Department of
Insurance.

    

    "Person" means an individual,
corporation, partnership, Limited Liability Company, joint venture, trust, or
unincorporated organization, or any Governmental Authority.

    

    “Side Letter” means any letter
executed mutually by the parties amending or explaining a term or condition
herein provided or adding a term or condition to the agreement as described in
section 9.7 and shown in Exhibit E attached hereto and
incorporated by reference.

     

     

    2

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Tax or Taxes" means any tax
imposed by a Governmental Authority, including net income, alternative or add-on
minimum tax, gross income, gross receipts, sales, use, ad valorem, franchise,
capital, paid up capital, profits, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, property, environmental or
windfall profit tax, custom, duty, transfer, documentary or other tax,
governmental fee or other like assessment or charge of any kind whatsoever, any
information reporting or back-up withholding obligation, liability or penalty,
together with any interest or any penalty, addition to tax or additional amount
imposed by any Governmental Authority responsible for the imposition of any such
tax.

    

    "Tax Returns" means all
returns, reports, declarations, claims for refund, information returns or
statements required to be filed with respect to Taxes.

    

    "TEAM Advances, Notes and Guarantees"
means those advances to Company and Seller made pursuant to section 2.10
and 2.11 of the Original Agreement for operations and earnings advances at the
discretion of Buyer, along with the notes and guarantees described therein
securing the Buyer’s advances to Company and Seller, all as shown on Exhibit B attached hereto and
made a part hereof.

    

    ARTICLE
II.

    PURCHASE OF
STOCK

    

    Section 2.1 Agreement
to Purchase and Sell.  Upon the terms and
subject to the conditions set forth in this Agreement and upon the
representations and warranties made herein by each of the parties to the other,
on the Closing Date (as defined in Section 2.5), the Seller shall sell, grant,
convey, assign, transfer and deliver to the Buyer, and the Buyer shall purchase
and acquire from the Seller, the Stock, free of all liens, encumbrances,
charges, assessments and adverse claims ("Encumbrances") of any kind whatsoever
other than the Permitted Encumbrances.  The Stock constitutes
eighty-five percent (85%) of the issued and outstanding shares of Common Stock
of the Company.  Seller, as an individual, owns the balance of the
Common Stock of the Company.

     

     

    3

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 2.2 Purchase
Price.  
Upon the terms and subject to the conditions set forth in this Agreement,
in reliance upon the representations, warranties, covenants and agreements of
the Seller contained herein, and in exchange for the Buyer, the Buyer agrees to
deliver to the Seller the sum of One Dollar ($1.00) plus the assumption of
certain debts and obligations, as provided for herein, and as set forth on Exhibit A, attached hereto
(the "Company Liabilities") (collectively, the "Purchase Price").    In
that regard, Seller and Company agree and represent and warrant as an additional
condition to Buyer's obligations to Close, that the Company Liabilities shall
not exceed the gross aggregate sum of One Million, Two Hundred Thousand
Dollars ($1,200,000.00) and shall constitute primarily "trade payables"
and "vendor payables and claims" and shall not include any debts, obligations,
leases, mortgages, obligations or notes to any existing or prior shareholders,
officers or directors, including but not limited to David Kayton, Mrs. Sandra B.
Kayton, Mr. Mark Dilbeck, Re/Max Realtors or any entity related or associated
with the Company, person or entity related thereto, except as specifically
agreed to by Buyer, in writing, prior to the Closing Date.  Further,
Seller and Company agree and represent and warrant as an additional condition to
Buyer's obligations to Close that, during the Due Diligence Period described in
Section 2.9 below, the Buyer shall have the right to enter into mitigation,
negotiation, and settlement discussions directly with the owners of the Company
Liabilities in order to enter into manageable workout arrangements, principal
and debt reductions, and settlements(the “Negotiated Company
Liabilities”), which shall be reflected by a Side Letter and described in
Section 9.7 and shown on Exhibit E and incorporated
herein at Closing.  Seller and Company agree and represent and warrant
as an additional condition to Buyer's obligations to Close that the Negotiated Company Liabilities
shall not exceed the gross aggregate sum of Five Hundred Thousand Dollars
($500,000.00) at the  Closing. The Company Liabilities and
Negotiated Company Liabilities specifically exclude the TEAM Advances, Note and
Guarantees described in Section 2.3, which shall remain obligations of Company
post-Closing.

     

     

    Section 2.3 TEAM
Advances, Notes and Guarantees.

    Upon the
terms and subject to the conditions set forth in the Original Agreement, the
Buyer made advances to the Company and the Seller, secured by Notes and
Guarantees by Company and Seller, and the stock of Seller in Company, all as
described in section 2.10 and 2.11 of the Original Agreement and as described on
Exhibit B attached
hereto and made a part hereof (collectively, the TEAM Advances, Notes and
Guarantees”).  As of the effective date hereof, the total obligation
to TEAM is Six Hundred Seventy Seven Thousand Six Hundred and Seventy Five
Dollars ($667,675.00).  Concurrently with the execution of this
Agreement, the TEAM Advances, Notes and Guarantees shall be amended to reflect
the current obligations of the Company, as guaranteed by the Seller, to the
Buyer as of the date hereof (the “Amended TEAM Advances, Notes and Guarantees”),
and shall remain an obligation of the Company and the Seller after the
Closing.  The Amended TEAM Advances, Notes and Guarantees shall be
evidenced by a Promissory Notes, in the form attached hereto as Exhibit B1 (the "Amended
Promissory Notes"), executed by the Company, in favor of Buyer, or its
affiliate, shall bear interest at the rate of six percent (6%) per annum, from
the date of the advance and be payable on demand by the holder or, if no demand,
one-year from the Effective Date of this Agreement.  The obligations
of the Amended Promissory Notes shall be guaranteed by Seller, individually,
pursuant to the Amended Guarantees, a copy of which are attached hereto as Exhibit B2 and incorporated
herein by this reference.  In addition, the obligations of the Amended
Promissory Notes shall be secured by Seller's Common Stock and ownership
interest in the Company and shall be secured by Seller's remaining Stock
Interest in the Company post-Closing.

    

     

    4

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 2.4 Payment
of Purchase Price.   On the
Closing Date the Buyer shall pay to Seller cash in the amount of One Dollar ($1)
and shall assume responsibility for the payment, assumption, settlement or
workout arrangement of the Negotiated Company Liabilities.

    

    Section 2.5  Closing.  
The Closing of the purchase and sale of the Stock and the other transactions
contemplated by this Agreement (the "Closing") shall take place at the offices
of TEAM Nation Holdings, Inc., 790 E. Colorado Boulevard, 4th Floor,
Pasadena, CA 91101, at 10:OO a.m. on the third Business Day after the expiration
of the Due Diligence Period, or at such other time or place as the Buyer and
Seller may agree. The time and date of the Closing is herein called the "Closing
Date."

    

    Section 2.6 Delivery
of Company Stock Certificates by the Seller.  On the Closing
Date, the Seller shall deliver to the Buyer all certificates representing
eighty-five percent (85%) of the Seller's outstanding and issued Stock, all free
and clear of all Encumbrances of any kind whatsoever other than Permitted
Encumbrances, such certificates to be accompanied by stock powers properly
executed to Buyer in blank.

    

    Section 2.7 Delivery
of Lease Agreement.  As of the date hereof there are no leases
to be delivered.  Any leases entered into prior to the Closing shall
be submitted for review within five (5) days of execution.

    

    Section
2.8  Company
Lease of Equipment.  [Intentionally Left Blank.  Any
lease agreements to be dealt with where transfer of ownership is an event of
default?]

    

    Section 2.9  Due
Diligence.  From the date of
the execution of this Agreement until the later to occur of (a) ninety (90) days
from the Effective Date, and (b) sixty (60) calendar days after receipt of
approval of the Transaction from all required regulatory agencies, including the
California Department of Insurance (the "Due Diligence Period"), Buyer shall
have the right to conduct its due diligence of the operations and status of the
Company, including all books and records in connection
therewith.  During the Due Diligence Period, the Company and Seller
shall provide Buyer and its authorized representatives, including its attorneys,
accountants and other business advisors, access to the premises, properties,
agreements, books and records and corporate governance documents, and shall
cause the officers and employees of Seller to furnish any and all data and
information pertaining to the business of the Company to Buyer.

     

     

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    Section 2.10  Operations
Prior to Closing Date and Discretionary Operation Advance.  From and after
the effective Date, and continuing through the earlier of (a) the Termination
Date of the Agreement or (b) the Closing Date, and subject to the Management
Agreement dated  October 24, 2007, by and among Seller, the Company
and Buyer, on mutually agreeable terms and conditions, Buyer, or an entity
affiliated with Buyer, may in the sole discretion of Buyer or its applicable
affiliate, advance an amount not to exceed Fifty Thousand Dollars
($50,000.00) per month as and for approved operational expenses incurred
and to be incurred by the Company (the "Discretionary Operational
Advance").  The Discretionary Operational Advance is optional at the
sole option of Buyer, or its affiliate, without any obligation on the part of
Buyer, or its affiliate whatsoever.  All or any portion of the
Discretionary Operational Advance may be paid by Buyer, or its affiliate
directly to third party vendors or creditors, for the benefit of the
Company.  The Discretionary Operational Advance, if any, shall be
evidenced by a Promissory Note, in the form attached hereto as Exhibit B (the "Operational
Promissory Note"), executed by the Company, in favor of Buyer, or its affiliate,
shall bear interest at the rate of six percent (6%) per annum, from the date of
the advance and be payable on demand by the holder or, if no demand, one-year
from the Effective Date.  The obligations of the Operational
Promissory Note shall be guaranteed by Seller, individually, pursuant to the
Operational Guaranty, a copy of which is attached hereto as Exhibit C and incorporated
herein by this reference.  In addition, the obligations of the
Promissory Note shall be secured by In addition, the Discretionary Operational
Advance shall be secured by Seller's remaining Stock Interest in the Company
post-Closing.

     

    ARTICLE
III.

    REPRESENTATIONS AND
WARRANTIES

    

    Section 3.1 Representations
and Warranties of the Seller.   The Seller
hereby represents and warrants to the Buyer as follows:

     

    (a)           Ownership
of all Company Stock.  The owners of all of the issued and
outstanding shares of the Common Stock in the Company, are as
follows:

    

    Name                                                                                     Number
of Shares

    

    David
Kayton                                                                                          
238.75

    Truman
G.
Sipes                                                                                     
5.625

    Frederick
Evans                                                                                 
    
5.625

     

    Totals                                     
 250.00

    

    

          The
Seller has not pledged, encumbered, hypothecated or otherwise granted or
assigned any interest in, or otherwise restricted the transfer of, any of his
shares of the Company Stock.  Upon transfer of the Stock by the
Seller, the Buyer will, as a result, receive good and valid title to the Stock,
free and clear of all Encumbrances of any kind whatsoever other than Permitted
Encumbrances.

     

    6

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)           Capitalization
and Company Stock. 
The authorized capital stock of the Company consists entirely of two
hundred and fifty shares of common capital stock no par value. The issued and
outstanding shares of Common Stock have been validly issued and are fully paid,
non-assessable, and free of any preemptive rights, whether statutory or
otherwise.  There are no outstanding or authorized subscriptions,
options, warrants, calls, rights, commitments or any other agreements or
arrangements of any character obligating the Company to issue or acquire any
additional shares of capital stock or any other securities convertible into or
evidencing the right to subscribe for any shares of capital stock or to convert
any presently existing obligations or securities into capital
stock.

    

    (c)           Due
Organization, Good Standing and Power.  The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of California.  The Company has the requisite corporate power
and authority to carry on its business as such business is now being
conducted.  The Company is not qualified to do business as a foreign
corporation in any jurisdiction, and the properties owned, leased or operated by
the Company or the business conducted by it do not make such qualification
necessary, except where the failure to be so qualified would not be reasonably
likely to have a material adverse effect on the financial condition, properties,
results of operations or business of the Company (a "Material Adverse
Effect").  The Seller has delivered or made available to the Buyer a
complete and correct copy of the Company's Articles of Incorporation and Bylaws
as in effect on the date of this Agreement.  The Company does not
have, and never has had, any subsidiaries, and the Company does not own, either
directly or indirectly, any shares of capital stock of any other
Person.

    

    (d)           Authority. 
The execution, delivery and performance of this Agreement and all of the other
agreements, instruments or documents contemplated hereby to which the Company or
a Seller is a party (collectively, the "Transaction Documents"), and the
consummation of the transactions contemplated hereby and thereby have been duly
executed and delivered by all necessary corporate action on the part of the
Company and all other necessary action on the part of the
Seller.  This Agreement and the Transaction Documents have been duly
authorized by the Company, and this Agreement and each of the Transaction
Documents to which the Company and a Seller is a party will be, on or before the
Closing Date, duly executed and delivered, and each will be the legal and valid
obligation of the Company and the Seller, to the extent each is a party hereto
or thereto, enforceable in accordance with its terms, except as may be limited
by applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally, and subject to general principles of equity (whether in law or in
equity) and public policy applicable to securities law.  Seller has
delivered to the Buyer, true and complete copies, certified by the Secretary of
the Company, of the resolution or resolutions, which have been adopted by the
Company's Board of Directors, authorizing the transactions contemplated
hereunder.

     

    7

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)           No
Approvals or Notices Required; No Conflict. Except as described in Schedule to Section 3.1(e) to
this Agreement, the execution, delivery and performance of this Agreement and
the Transaction Documents by the Company and the Seller, to the extent each is a
party hereto or thereto, and the consummation of the transactions contemplated
hereby and thereby:

    

    (i)           do
not and will not violate (with or without the giving of notice or lapse of time
or both) any judgment, ruling, order, writ, injunction, or statute, rule or
regulation applicable to the Company or a Seller;

    

    (ii)          do
not and will not require any consent, approval, waiver, filing, registration,
qualification or notice under any provision of law applicable to the Company or
a Seller other than the prior written approval of the Insurance Commissioner of
the State of California; and

    

    (iii)         do
not and will not (A) conflict with, result in the material breach of any
provision of, result in the termination of, or constitute a default (or an event
that, with notice or lapse of time or both, would constitute a default) under;
(B) result in the acceleration of (or give any Person the right to accelerate)
the performance of any obligation of the Company or a Seller under; or (C)
result in the creation of any Encumbrance (except Permitted Encumbrances) upon
any properties, assets or business of the Company or a Seller pursuant to, the
Articles of Incorporation or Bylaws of the Company, or any indenture, mortgage,
deed of trust, lease, or licensing agreement, or any other material contract,
instrument or other agreement to which the Company or a Seller is a party or by
which the assets or properties of any of them are bound or encumbered, the
result of which would reasonably be expected to have a Material Adverse
Effect.

     

     

    8

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)           Tax
Matters. Except
as set forth in Schedule to
Section 3.1(f), with respect to Tax
matters:

    

    (i)           The
Company has filed all Tax Returns required to be filed and, in respect of any
period ending prior to the Closing Date, shall have paid all Taxes required to
be paid prior to the Closing Date.  To the Knowledge of the Seller,
the Company will not have any liability for any such Taxes in excess of the
amounts so paid, and the Company is not delinquent in the payment of any Tax,
assessment or governmental charge, and the Company has not requested any
extension of time within which to file any Tax Return in respect of any fiscal
year that has not since been filed. No deficiencies for any Tax, assessment or
governmental charge have been proposed, asserted or assessed (tentatively or
definitely) by any Governmental Authority against the Company that would not be
covered by existing reserves, and no requests for waivers of the time to assess
any such Tax are pending.  The foregoing shall exclude any unpaid
taxes that has been disclosed to, and accepted by, Buyer prior to the Closing
Date, and set forth in the Schedule of Liabilities, Exhibit D, attached
hereto.

    

    (ii)         True,
correct and complete copies of all Tax Returns and other filings of the Company,
which have been filed on or before the Closing Date with respect to the
Company's 2006, 2007 and 2008 fiscal years, and all financial records necessary
to prepare Tax Returns for the Company subsequent to the Closing Date have been
made available to the Buyer on or before the Closing Date.  There is
no proposed amendment of any Tax Return of the Company that has been filed, is
required to be filed or will be filed for taxable periods ending on or before or
including the Closing Date.

    

    (iii)         To
the Knowledge of the Seller, the Company's Tax Returns are not currently being
audited by the Internal Revenue Service or any other Governmental Authority,
state or federal, other than the periodic review of the Tax Returns conducted by
the California Department of Insurance, if any.

    

    (iv)        The
Company has not waived any statute of limitations in respect of Taxes or agreed
to any extension of time with respect to a Tax assessment or
deficiency.

    

    (v)         No
power of attorney has been granted by the Company with respect to any Tax matter
that is currently in force.

    

    (vi)        The
Company has not made any payments nor is it obligated to make any payments that
under certain circumstances that could reasonably be expected to obligate it to
make any payments that will not be deductible under internal Revenue Code
Section 280G.

    

    (vii)       The
Company is not a party to any Tax sharing, Tax indemnity, or Tax allocation
agreements.

     

    9

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (viii)     
The Company has withheld or collected and will withhold or collect from the
payment made to each of its Employees the amount of all Taxes (including, but
not limited to, federal incomes taxes, Federal Insurance Contribution Act taxes
and state and local income and wage taxes) required to be withheld or collected
therefrom and has paid and will pay the same to the proper Tax receiving
officers.

    

    (g)           Legal
Proceedings. Except
as otherwise disclosed on Schedule to Section 3.1(g),
there is not pending (nor has there been pending within the two (2) years prior
to the date hereof) any legal, administrative, governmental or other claim,
action, suit, or proceeding or governmental investigation to which the Company
or a Seller is a party or against the Company or a Seller or the Company's
properties. Except as otherwise disclosed on Schedule to Section 3.1(g), to
the Knowledge of the Seller, there is no threatened legal, administrative,
governmental or other claim, action, suit, or proceeding or governmental
investigation to which the Company or Seller is a party or against or relating
to the Company or a Seller or the Company's properties or rights, that, if
adversely determined, would reasonably be expected to have, either singly or in
the aggregate, a Material Adverse Effect.  The Company is not in
violation of any term of any judgment, ruling, writ, decree, injunction or order
outstanding against it.

    

    (h)           Insurance.  The
Schedule to Section
3.1(h) sets forth a list of all insurance policies maintained by the
Company as of the date hereof.  The Company presently maintains and,
since at least two (2) years prior to the date hereof, has maintained, with
financially sound and reputable insurance companies, casualty and liability
insurance policies providing coverage of the types and in amounts adequate
against such risks as would be customary for the Company engaged in a similar
business in the localities in which the Company operates, and covering all of
the material assets, properties and operations of the Company.  Such
insurance policies are outstanding and in force and are listed in this
Agreement.  Except as set forth in Schedule to Section 3.1(h), there are no claims
pending under any such policy, nor has any such claim been denied in the past
two (2) years.

    

    (i)           Labor
Relations. There is
no union or collective bargaining organizational activity occurring among the
Employees of the Company.

    

    (j)           Conduct
of Business in Compliance with Legal and other Regulatory
Requirements.  The Company has complied
with and owns its assets in accordance with, and its business has been operated
in compliance with, all federal, state and local laws, rules, ordinances,
regulations and orders applicable to it, including without limitation, all
Occupational Safety and Health Act, Federal Labor Standards Act ("FLSA"), ERISA,
the Americans with Disabilities Act, CERCLA, the Real Estate Settlement
Procedures Act and all applicable laws and related rules and regulations of all
United States jurisdictions affecting labor union activities, civil rights or
employment, except where the failure to comply with any of the foregoing may
have, either singly or in the aggregate, a Material Adverse
Effect.  The Company has all material licenses, permits and
qualifications necessary to conduct its business as presently being
conducted.  During the two (2) years prior to the Closing Date, the
Company has not had any material license or qualification to conduct business in
any jurisdiction revoked or suspended or been involved in a proceeding to revoke
or suspend such license or qualification, nor has any investigation been
conducted, or to the Knowledge of the Seller, is pending with a view to
revocation or suspension of any such license.

     

    10

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (k)           Absence
of Certain Changes or Events. Except as set forth on Schedule to Section 3.1(k)
attached hereto, since January 31, 2008, the Company has
not:

    

    (i)          suffered
any Material Adverse Effect;

    

    (ii)         made
any individual capital expenditure or entered into any single commitment greater
than Twenty Five Thousand
Dollars ($25,000.00) (except as disclosed in the Schedule to Section 3.1(k)] or any transaction or
commitment material to the Company's business, taken as a whole, other than (A)
in the ordinary course of business consistent with past practices or (B) those
contemplated by this Agreement;

    

    (iii)         declared
any dividend or made any payment or other distribution in respect of its capital
stock to the Seller or any other Person, other than those made in the ordinary
course of business and as otherwise permitted under the terms of this
Agreement;

    

    (iv)       
purchased, issued, redeemed, sold, or otherwise acquired or disposed of any
shares of Company Stock, or granted any options, warrants or other rights to
purchase or convert any obligation into any shares of the capital stock or into
any securities of the Company;

    

    (v)          incurred,
assumed or guaranteed or entered into any commitment in respect of any
indebtedness for borrowed money greater than Twenty Five Thousand Dollars
($25,000.00) in the aggregate or materially changed any of the terms of
any indebtedness in an aggregate amount greater than Twenty Five Thousand Dollars
($25,000.00), or assigned, mortgaged, pledged or otherwise subjected to
any other Encumbrance other than Permitted Encumbrances any property, business
or assets tangible or intangible, held in connection with the Company's
business;

    

    (vi)        introduced
any material change with respect to the manner of conducting its business or
with respect to its method of accounting;

    

    (vii)       made
any material increase in the compensation payable or to become payable by it to
its officers or Employees or adopted any increase in any bonus, insurance,
pension or other employee benefit plan, payment or arrangement made to, for or
with such officers or Employees, except increases occurring in the ordinary
course of business;

     

     

    11

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (viii)    
received any notice of termination of any contract, lease or other agreement or
suffered any damages, destruction or loss (whether or not covered by insurance)
which, in any case or in the aggregate, may reasonably be expected to have a
Material Adverse Effect;

    

    (ix)         transferred
or granted any rights or licenses under, or entered into any settlement
regarding the breach or infringement of, any intellectual property, or modified
any existing rights with respect thereto;

    

    (x)         amended
its Articles of Incorporation or Bylaws;

    

    (xi)         purchased
any securities of any Person or any assets material in amount or constituting a
business, or been party to any merger, consolidation or other business
combination or entered into any obligation relating to any such purchase;
or

     

    (xii)        made
any prepayment of any accounts payable, delayed payment of any trade payables or
made any other cash payments other than in the ordinary course of business
consistent with past practices or as otherwise contemplated pursuant to the
terms of this Agreement.

    

    (l)           Employee
Benefit Plans.

    

    (i)           The
Schedule to Section
3.1(l) lists all plans, programs, agreements, commitments or arrangements
maintained by or on behalf of the Company or any other Person that provide
benefits or compensation to or for the benefit of any Employee or former
employees of the Company (the "Plan" or "Plans").  Only Employees and
former employees of the Company and their families participate in the
Plans.

    

    (ii)          Each
Plan (and each related trust, insurance contract or fund) complies in form and
in operation in all material respects with the applicable requirements of ERISA,
the Code and other applicable laws.  All required reports and
descriptions (including form 5500 Annual Reports, Summary Annual Reports and
Summary Plan Descriptions) have been filed or distributed appropriately with
respect to each such Plan.

    

    (iii)        With
respect to each Plan: (A) no litigation or administrative or other proceeding is
pending or, to the Knowledge of the Seller, threatened; (B) the Company has made
or accrued all payments and/or contributions required, or reasonably expected to
be required, to be made under the provisions of the Plans or by law with respect
to any period prior to the Closing Date; (C) each such Plan is fully funded in
an amount sufficient to pay all liabilities accrued and claims incurred up to
the Closing Date or, to the extent any Plan is not fully funded, paid-up
insurance has been obtained by the Company.

     

    12

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv)        Except
as required by federal or state law, neither the Company nor any of the Plans
has any obligation to provide, or liability for, health care, life insurance or
other benefits after termination of employment.

    

    (v)         The
consummation of the transactions contemplated by this Agreement will not entitle
any Employee of the Company to severance pay nor will it accelerate the time of
payment, vesting or increase the amount of any compensation due to any Employee
of the Company.

    

    (vi)        No
former employees of the Company are entitled to coverage under the Company's
Plans pursuant to COBRA except as set forth in the Schedule to Section
3.1(l).

    

    (vii)       The
Company's policy with respect to vacation, sick leave and/or paid time off is
described on the Schedule to
Section 3.1(l).

    

    (m)           No
Brokers. No
broker, finder, investment bank or similar agent is entitled to any brokerage,
finder's or other similar fee, compensation or reimbursement of expenses in
connection with the transactions contemplated by this Agreement based upon
agreements or arrangements made by or on behalf of (or the conduct of) the
Company or any of the Seller.

    

    (n)           Employees,
Directors, Officers.
The Schedule to Section
3.1(n) to this Agreement sets forth the names, employment capacities, and
pay scales or salaries of (i) all of the Employees, directors and officers of
the Company; and (ii) all consultants, other than legal counsel, of the Company
who have received in the last two (2) years more than Twenty-five Thousand Dollars
($25,000) in any one year in compensation from any of
them.  For each Employee, the Schedule to Section 3.1(n)
further identifies the Company's liability to such Employee for any accrued
vacation, sick leave or paid time off.  The Schedule to Section 3.1(n)
identifies any agreement or understanding, which obligates the Company to pay
any compensation or provide any material benefit, now or in the future, to any
such Person.  The Company is not bound by any written employment
agreements or arrangements except for those disclosed on the Schedule to Section
3.1(n).

    

    (o)        
 Non-Competition
Agreements. Other
than described in Schedule to
Section 3.1(o) to this Agreement, no officer or Employee of the Company
has entered into any agreement containing any prohibition or restriction of
competition or solicitation of customers with any Person which is now in
effect.

     

     

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    (p)        
Bank
Accounts. The
Schedule to Section 3.1(p)
to this Agreement sets forth with respect to the Company (i) a true and
complete list of each bank, trust company or other financial institution in
which the Company has an account or safe deposit box, the name and account
numbers for each account, and a list of Persons authorized to draw upon or have
access to each account or safe deposit box; and (ii) the names of all Persons to
whom credit cards have been issued which may be used to charge to or for the
account of the Company.  Each escrow account, bank account or similar
account for the deposit of cash or securities maintained or utilized by the
Company (i) is wholly owned by the Company; (ii) is reconciled to its bank
statements on a monthly basis; and (iii) to the extent such accounts of the
Company in the aggregate hold monies or securities in an escrow or trust
capacity, contains in the aggregate a balance sufficient to meet in the
aggregate all escrow and trust obligations of the Company to which such monies
or securities relate.  The bank accounts of the Company, including but
not limited to escrow accounts have been properly maintained in accordance with
all applicable laws, rules and regulations, including but not limited to those
promulgated by the California Department of Insurance. The records of the
Company regarding the Company's escrow accounts have been accurately and
currently maintained and adequately identify by customer, amount and purpose all
amounts held by the Company in escrow or safekeeping.  All amounts
held by the Company in escrow or safekeeping are held pursuant to written
agreements, true and complete copies of which have been delivered to the
Buyer.

    

    (q)         
No
Conflicts of Interest.
 
Except as set forth in the Schedule to Section 3.1(q), no
officer, director or Employee of the Company now has or within the past two (2)
years has had, either directly or indirectly: (i) any equity or other interest
in any Person that furnishes or sells, or furnished or sold, or purchases or
purchased goods or services from the Company, or (ii) a beneficial interest in
any agreement to which the Company is or was obligated or bound or to which any
of its assets is or was subject.

    

    (r)           Disclosure.  No representation or
warranty by the Seller in this Agreement, in the Schedules attached hereto, or
in any certificate furnished to the Buyer pursuant hereto, contains any untrue
statement of a material fact, or omits to state a material fact necessary to
make the statements herein or therein not misleading in any material
respect.

    

    (s)           Books and
Records. 
The books and records of the Company provided to the Buyer are true,
accurate and complete and reflect the assets and liabilities of the Company in
all material respects.

    

    (t)           Financial
Statements. 
All financial statements furnished by the Seller to the Buyer, including
but not limited to the Interim Financial Statements, present fairly the
financial position of the Company as of the date thereof, and the included
income statements each present fairly the results of the operations of the
Company for the period which they purport to cover, all in accordance with GAAP,
applied consistently with the same accounting basis used for prior
periods.

     

     

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    (u)           Work in
Process; Policy Backlog.  The Schedule to Section 3.1(u)
identifies the work in process and/or policy backlog of the Company as of the
date hereof.

    

    (v)           Leases. Each lease for each Business
premises of the Company is listed on the Schedule to Section 3.1(v),
together with the lessor, lease date, lease expiry date, rental rate, percentage
of common area charges, and any options to purchase or renew.  True
copies of each such lease, together with all amendments thereto, have been
furnished or made available to the Buyer.  Except for the leases
disclosed on the Schedule to
Section 3.1(v), the Company does not have any interest, leasehold, fee or
otherwise in any real property.

    

    (w)           Personal
Property. 
The Schedule to Section
3.1(w) sets forth the items of personal property owned by the Company
having an individual value in excess of Ten Thousand and Dollars
($10,000).  The Company has good and defensible title to all
personal property which it purports to own including, but not limited to, that
property reflected in the Schedule to Section
3.1(w).  No item of personal property owned by the Company is
subject to any Encumbrance except as specifically set forth on the Schedule to Section 3.1(w).
All of the rights of the Company in tangible personal property will be
enforceable by the Company after the Closing without the consent or agreement of
any other party except consents any agreements listed in the Schedule to Section
3.1(w).

    

    (x)           Leased Equipment.  
The Schedule to Section
3.1(x) sets forth the date and the lessor of each item of personal
property leased by the Company. Except as set out in the Schedule to Section 3.1(x),
the Company does not lease any of its personal property. All leases set forth in
the Schedule to Section
3.1(x) are legally valid and binding and in full force and effect, and
there are no defaults thereunder. All of the leases will be enforceable by the
Company after the Closing without the consent or agreement of any other party
except consents and agreements listed in the Schedule to Section
3.1(x).

    

    (y)           Defaults
under Agreements.
The Company is not, and is not alleged to be, materially in default
under, or in breach of any term or provision of any contract, agreement, lease,
license, commitment, instrument or obligation.  To the Knowledge of
the Seller, no other party to any contract, agreement, lease, license,
commitment, instrument or obligation to which the Company is a party is in
default thereunder or in breach of any term or provision thereof.  To
the Knowledge of the Seller, there exists no condition or event, which, after
notice or lapse of time or both, would constitute a default by any party to any
contract, agreement, lease, license, commitment, instrument or
obligation.

     

     

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    Section 3.2 Representations
and Warranties of the Buyer.  The Buyer represents
and warrants to the Seller as follows:

    

    (a)           Legal
Right and Capacity.
Buyer has the full legal right and capacity to execute and deliver, and
to perform the obligations under, this Agreement and each Transaction Document
to which it is a party.

    

    (b)           Enforceability.  This Agreement and the
Transaction Documents to which Buyer is a party will be, on or before the
Closing Date, duly executed and delivered, and each will be the legal and valid
obligation of such Buyer, enforceable in accordance with its terms, except as
may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally, and subject to general principles of equity
(whether in law or in equity) and public policy applicable to securities
law.

    

    (c)           Governmental
Authorization. 
The execution, delivery and performance by Buyer of this Agreement and
all Transaction Documents to which such Buyer is a party, require no action by
or in respect of, or filing with, any Governmental Authority, other than as set
forth in Schedule to Section
3.2(c) to the Agreement and except where the failure to take any such
action or make any such filing could not be reasonably expected to hinder or
delay in any material respect the consummation of the transactions contemplated
by this Agreement.

    

    (d)         
 Non-Contravention. The execution, delivery and
performance by Buyer of this Agreement and all Transaction Documents to which
such Buyer is a party, do not and will not (i) assuming compliance with the
requirements referred to in Section 3.2(c), violate any applicable law or (ii)
conflict with, violate or result in any default under any mortgage, indenture,
agreement or other instrument to which such Buyer is a party or by which such
Buyer or any of his or her properties is bound.  Subject to the
receipt of all consents and approvals contemplated by this Agreement, neither
the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby nor the fulfillment of and compliance with the
terms and provision hereof will violate any judicial or administrative order,
writ, award, judgment, injunction or decree currently in effect and by a Buyer
is bound.  No consent of any third party to any indenture or any
material agreement or other material instrument to a Buyer is a party is
required in connection with the Closing of the transactions described
herein.

    

    (e)           Securities Representation.
Buyer is acquiring the Company Stock for investment purposes only, for
such Buyer's own account, without a view to the resale, transfer, or
distribution thereof.

    

    (f)           No Brokers. No Buyer has
employed any broker, investment banker or finder or incurred any liability for
any brokerage fees, commissions or finders' fees in connection with the
transactions contemplated hereby.

     

     

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    (g)           Litigation.  There is no
action, suit, investigation or proceeding pending against, or to the knowledge
of Buyer, threatened against, such Buyer before any arbitrator or Governmental
Authority which in any manner challenges or seeks to prevent, alter or
materially delay the transactions contemplated by this Agreement.

    

    (h)           Absence
of Buyer Created Encumbrances. No Buyer has attempted to
create or caused to be created any Encumbrances on the Common
Stock.

    

    ARTICLE
IV.

    CONDITIONS
PRECEDENT

    

    Section 4.1 Conditions
Precedent to Obligation of the Buyer. The obligation of the Buyer
to consummate the transactions contemplated hereby is subject to the
satisfaction, at or prior to the Closing Date, of each of the conditions stated
in this Section 4.1, any or all of which may be waived in whole or in part by
the Buyer, to the extent permitted by applicable law.

    

    (a)          
Accuracy
of Representations and Warranties. All representations and
warranties of the Seller contained herein shall be true and correct in all
material respects as though made on and as of the Closing Date, except to the
extent that such representations and warranties speak as of a certain date, in
which case such representations and warranties shall have been true and correct
as of such date.

    

    (b)           Performance
of Agreements.
The Company and the Seller shall have performed, or complied with, in all
material respects all covenants, obligations and agreements contained in this
Agreement to be performed, or complied with, by them prior to or at the Closing
Date, and all other agreements to be executed and delivered by the Seller hereby
shall have been executed and delivered.

    

    (c)           Seller's Certificate. The
Buyer shall have received a certificate signed by Seller (the "Seller's Certificate"), that is to the effect that
the conditions specified in paragraphs (a) and (b) above have been
fulfilled.

    

    (d)           Receipt
of Licenses, Permits and Consents. The
Buyer shall have obtained, and maintained in full force and effect, such
licenses, permits, consents, approvals, authorizations, qualifications and
orders of Governmental Authorities as are necessary for consummation of the
transactions contemplated by this Agreement, including, but not limited to the
written consent of the California Insurance Commissioner for the sale and
transfer of the Company Stock.

    

    (e)           Litigation. There shall not be in effect
any injunction, writ or temporary restraining order or any order of any nature
issued by a court or other Governmental Authority of competent jurisdiction
directing that any material transaction provided for herein not be consummated
as herein provided. There shall not have been issued by a court or other
Governmental Authority of competent jurisdiction a judgment against the Company
or the Seller that has or would have, either singly or in the aggregate, a
Material Adverse Effect.

     

     

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    (f)           Absence
of Certain Events or Conditions. No event shall have
occurred, and no condition shall exist on the Closing Date, of any character
which has a Material Adverse Effect.

    

    (g)           Laws,
Regulations.
Except for the California Insurance Commissioner pending rate regulation
proposals, no law, regulation or decree applying to the title insurance business
shall have been promulgated, adopted or become effective, the enforcement of
which would have a Material Adverse Effect.

    

    (h)           Governmental
Approvals. All
governmental agencies, department, bureaus, commissions and similar bodies, the
consent, authorization or approval of which is necessary under any applicable
law, rule, order or regulation for the consummation by the Seller or the Company
of the transactions contemplated by this Agreement and the operation of the
business of the Company by the Buyer shall have consented to, authorized,
permitted or approved such transactions including without limitation the
approval of the California Department of Insurance.

    

    (i)           Consent
of Lenders, Lessors and Other Third Parties. The Buyer and the Company
shall have received all requisite consents and approvals of all lenders, lessors
and other third parties (other than underwriters having contracts or
understanding with the Company) whose consent or approval is required in order
for the Seller to consummate the transactions contemplated by this Agreement,
including without limitation, those set forth on the Schedule to Section 3.1(e)
attached hereto.

    

    (j)           Closing
Deliveries. The
Buyer shall have received on or prior to the Closing such documents, instruments
or certificates as the Buyer may reasonably request including, without
limitation:

    

    (i)           the
stock certificates representing the Stock duly endorsed in accordance with
Section 2.6 of this Agreement;

    

    (ii)          a
certificate of the Secretary of the Company attesting to the incumbency of the
Company's officers, the authenticity of the resolutions authorizing the
transactions contemplated by this Agreement, and the authenticity and continuing
validity of the charter documents delivered or made available pursuant to this
Agreement;

    

    (iii)         the
complete original corporate minute book and stock record book of the Company and
all corporate seals;

     

     

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    (iv)        executed
assignments transferring all right, title and interest to any intellectual
property or other proprietary rights as may be required as a result of the
transactions contemplated by this Agreement; and

    

    (v)           resignations
from the following directors and officers of the Company:

    David Kayton,
CEO         

    

    Section 4.2 Conditions
Precedent to the Obligation of the Seller.  The obligation of
the Seller to consummate the transactions contemplated hereby is subject to the
satisfaction, at or prior to the Closing Date, of each of the conditions stated
in this Section 4.2, any or all of which may be waived in whole or in part by
the Seller, to the extent permitted by applicable law.

    

    (a)           Accuracy of Representations and
Warranties. All representations and warranties of the Buyer contained
herein shall be true and correct in all material respects as of the Closing
Date, except as otherwise contemplated by this Agreement.

    

    (b)           Performance
of Agreements.
The Buyer shall have performed in all material respects all obligations
and agreements contained in this Agreement to be performed by them prior to or
at the Closing Date.

    

    (c)           Buyer's
Certificate. The
Seller shall have received a certificate of the Buyer, dated the Closing Date,
signed by Buyer, to the effect that the conditions specified in paragraphs (a)
and (b) above have been fulfilled (the "Buyer's Certificate").

    

    (d)           Litigation. There shall not be in effect
any injunction, writ or temporary restraining order or any order of any nature
issued by a court or other Governmental Authority of competent jurisdiction
directing that any material transaction provided for herein not be consummated
as herein provided.  There shall not have been issued by a court or
other Governmental Authority of competent jurisdiction a judgment against the
Buyer that has or would have, either singly or in the aggregate, a material
adverse effect on the transactions contemplated hereby.

    

    (e)       
 Governmental
Approvals. All
governmental agencies, department, bureaus, commissions and similar bodies, the
consent, authorization or approval of which is necessary under any applicable
law, rule, order or regulation for the consummation of the transactions
contemplated by this Agreement and the operation of the business of the Company
by the Buyer shall have consented to, authorized, permitted or approved such
transactions including without limitation the approval of the California
Department of Insurance.

     

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    (f)           Consent
of Lenders, Lessors and Other Third Parties. The Seller and the Company
shall have received the consents and approvals of all lenders, lessors and other
third parties (other than underwriters having contracts or understanding with
the Company) whose consent or approval is required in order for the Seller to
consummate the transactions contemplated by this Agreement, including without
limitation, those set forth on Schedule to Section 3.1(e)
attached hereto.

    

    (g)           Closing
Deliveries. The
Seller shall have received at or prior to the Closing such documents,
instruments or certificates as the Seller or his counsel may reasonably request
in writing delivered to the Buyer at least two (2) Business Days prior to the
Closing, including, without limitation, the amount of One Dollar
($1.00).

    

    Section 4.3 Effect of
Waiver of Covenant.  If a party hereto
does not perform a covenant hereunder, such other party may elect to require the
transactions contemplated hereby to be consummated without limiting or otherwise
affecting its right to seek any remedies it may have against the party in breach
of a covenant or that failed to satisfy the condition precedent.

    

    ARTICLE
V.

    COVENANTS

    

    Section 5.1 Consummation
of the Transaction.  Each of the
parties hereto agrees to use his or its respective reasonable best efforts to
take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated by this
Agreement.  Without limiting the generality of the foregoing,
concurrently with the Closing, the Buyer's agree to contribute to the capital of
the Company such amounts as may be determined by the California Department of
Insurance as a condition of its approval of the transaction contemplated by this
Agreement.

    

    Section 5.2 Public
Announcements.  The parties agree
to consult with each other and obtain the other party's prior written approval
before issuing any press release or making any public statement (including
employee communications) with respect to this Agreement or the transactions
contemplated hereby and shall not issue any such press release or make any such
public statement prior to such consultation and approval.

    

    Section 5.3 Conduct
of the Company's Business.  From the date
hereof until the Closing Date, the Seller will cause the conduct the business of
the Company to be in the ordinary course consistent with past practice and will
use commercially reasonable best efforts to preserve intact the business
organizations and relationships with respect to such
business.  Without limiting the generality of the foregoing, the
Seller shall:

     

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    (a)           not
do anything that could reasonably be expected to give rise to a Material Adverse
Effect; and

    

    (b)           not
issue or sell, or contract to issue or sell, any Company Stock or any rights to
acquire Company Stock.

    

    Section 5.4 Notices
of Certain Events.  From the date
hereof until the Closing Date, each party will:

    

    (a)           promptly
notify the other party of any written notice or other communication from any
Person alleging that the consent of such Person is or may be required in
connection with the transactions contemplated by this Agreement;

    

    (b)           promptly
notify the other parties of any written notice or other communication from any
Governmental Authority with respect to the transactions contemplated by this
Agreement; and

    

    (c)           promptly
notify the other parties of the occurrence of any event or development that,
individually or in the aggregate, has had or would reasonably be expected to
have a Material Adverse Effect;

     

    and the
Seller will promptly notify the Buyer of any change in circumstances requiring a
revision of any Schedule attached to this Agreement.

    

    Section 5.5 Confidentiality.  Prior to the
Closing Date and after any termination of this Agreement, the Buyer shall hold,
and shall use their reasonable best efforts to cause their respective
accountants, counsel, consultants, advisors and agents to hold, in confidence,
unless compelled to disclose by judicial or administrative process or by other
requirements of law (in which case the Buyer shall give the Seller prior written
notice of the intended disclosure promptly after becoming aware of such
disclosure requirement and prior to the actual disclosure so that the Seller may
seek a protective order or other appropriate remedy), all documents and
information concerning the business of the Company or which the Seller furnished
to the Buyer in connection with the transactions contemplated by this Agreement,
except to the extent that such information can be shown to have been (i)
previously known on a non-confidential basis by a Buyer, (ii) in the public
domain through no fault of a Buyer or (iii) later lawfully acquired by a Buyer
from sources other than the Company or a Seller; provided that the Buyer may
disclose such information to their accountants, counsel, consultants, advisors
and agents in connection with the transactions contemplated in this Agreement so
long as such Persons are informed by the Buyer of the confidential nature of
such information and agree to treat such information
confidentially.  If this Agreement is terminated, the Buyer shall, and
shall use their reasonable best efforts to cause their accountants, counsel,
consultants, advisors and agents to, destroy or deliver to the Seller, upon
request, all documents and other materials, and all copies thereof, obtained by
the Buyer or on its behalf from the Company or the Seller in connection with
this Agreement.

     

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    Section
5.6 Covenant Not to
Compete.

    

    (a)           In
consideration of payment of the Purchase Price, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, for
seven (7) years following Closing, David Kayton will not:

    

    (i)           within
the counties of Orange and Los Angeles of the State of California, other than on
behalf of the Company, engage directly or indirectly in the title insurance
business or in the title agency business, as employee, officer, director,
consultant, principal, agent, trustee or through the agency of any Person;
nor

    

    (ii)        
be the owner of or hold options to purchase, directly or indirectly, more than
one percent (1%) of the outstanding capital stock of any corporation, or be an
officer, consultant, director or employee of any corporation, or a member,
employee or consultant of any partnership or an owner or employee of any other
business which maintains a title insurance or title agency business within the
counties of Orange and Los Angeles of the State of California.

    

    (b)           In
addition to any other remedy that the Company may have for violation of this
Section 5.6, Company may seek an injunction against violation of this Section
5.6 in any court of competent jurisdiction, including but not limited to any
state or federal court having jurisdiction in Orange County,
California.  Any court interpreting this Agreement shall presume that
Company will be irreparably harmed by any violation of the terms of this Section
5.6 and such court shall be entitled to grant injunctive relief, including but
not limited to a temporary restraining order, against any such
violation.  If any court should find that any provision of this
Agreement is overbroad as to scope or time, such court may enforce this
Agreement within such time or scope that such court deems reasonable, taking
into consideration all of the circumstances giving rise to this
Agreement.

    

    Section 5.7 Transaction
Expenses. Except
to the extent specifically otherwise provided herein, subject to Section 2.4,
the Company shall pay, at or prior to Closing, all financial, advisory, legal
and accounting fees and expenses incurred by the Seller or the Company or any of
their affiliates in connection with the transactions contemplated by this
Agreement.  Except to the extent specifically otherwise provided
herein, the Buyer shall bear all financial, advisory, legal, accounting and
other fees and expenses incurred by the Buyer in connection with the
transactions contemplated by this Agreement.

    

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    ARTICLE
VI.

    TAX
MATTERS

    

    Section 6.1 Tax
Returns. The
Seller, at his expense, shall prepare or cause to be prepared and file or cause
to be filed when due all Tax Returns that are required to be filed by or with
respect to the Company for taxable years or periods ending before the Closing
Date and shall pay any Taxes due in respect of such taxable periods (including
any Taxes due as a result of any audit, examination or other proceeding), and
the Buyer shall prepare or cause to be prepared and file or cause to be filed
when due all Tax Returns that are required to be filed by or with respect to the
Company for taxable years or periods ending on or after the Closing Date and
shall remit any Taxes due in respect of such taxable periods (including any
Taxes due as a result of any audit, examination or other
proceeding).  Except as otherwise provided, the Seller shall not amend
any Tax Return for taxable years or periods ending before the Closing Date
without the prior written approval of the Buyer, which consent shall not be
unreasonably withheld or delayed if the Seller indemnifies the Buyer against any
Loss (as defined in Section 7.1), including Taxes, resulting
therefrom.

    

    Section
6.2 Assistance and
Cooperation.  [Intentionally Left Blank.]

    

    ARTICLE
VII.

    SURVIVAL OF
REPRESENTATIONS,

    WARRANTIES AND
INDEMNIFICATION

    

    Section 7.1 Indemnification
by the Seller.  The Seller shall
indemnify and hold the Buyer and its respective successors and assigns harmless
from and against all losses, claims or damages (including attorneys' fees and
costs associated with the investigation and resolution thereof) all losses
incurred by reason of or which result from (i) any breach of any representation,
warranty or certification of the Seller in this Agreement or in any Schedule or
Exhibit attached hereto as of the Closing Date; and (ii) any losses resulting
from a Seller's or the Company's failure to perform any covenant or other
provision of this Agreement to be performed by the Seller or the Company, as the
case may be.

    

    Section 7.2 Survival
of Seller's Representations and Warranties.  Notwithstanding
any investigation by the Buyer, its attorneys or any of its agents or
representatives.

    

    Section
7.3 Indemnification by
the Buyer.  [Intentionally Left Blank.]

    

    Section
7.4 Survival of
Representations and Warranties by the Buyer.  [Intentionally
Left Blank.]

     

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    Section 7.5 Assertion
of Indemnification Claim.  A party seeking
indemnification, as the case may be (an "Indemnified Party"), shall give notice
to the other (an "Indemnifying Party") as soon as possible after the lndemnified
Party has actual knowledge of any claim as to which indemnification may be
sought and the amount thereof, if known, and supply any other information in the
possession of the Indemnified Party regarding such claim, and will permit the
lndemnifying Party (at its expense) to assume the defense of any third party
claim and any litigation resulting therefrom, provided that counsel for the
Indemnifying Party who shall conduct the defense of such claim or litigation
shall be reasonably satisfactory to the Indemnified Party, and provided further
that the omission by the lndemnified Party to give notice as provided herein
will not relieve the Indemnifying Party of its indemnification obligations
hereunder except to the extent that the omission results in a failure of actual
notice to the lndemnifying Party and the lndemnifying Party is materially
damaged as a result of the failure to give notice in a timely manner. Failure by
the lndemnifying Party to notify the lndemnified Party of its election to defend
any such claim, action or proceeding within a reasonable time, but in no event
more than thirty (30) days after notice thereof shall have been given to the
lndemnifying Party, shall be deemed a waiver by the lndemnifying Party of its
right to defend such claim, action or proceeding; provided, however, that the
Indemnifying party shall not be deemed to have waived its right to contest and
defend against any claim of the lndemnified Party for indemnification hereunder
based upon or arising out of such claim, action or proceeding. The Indemnifying
Party may settle or compromise any third party claim or litigation only with the
consent of the lndemnified Party, which consent may not be unreasonably
withheld, delayed or conditioned.  The Indemnified Party shall have
the right at all times to participate in the defense, settlement, negotiations
or litigation relating to any third party. claim or demand at its own
expense.  In the event that the lndemnifying Party does not assume the
defense of any matter which is the proper subject of indemnification as above
provided, then the Indemnified Party shall have the right to defend any such
third party claim or demand, and will be entitled to settle any such claim or
demand in its discretion, all at the expense of the Indemnifying
Party.  In any event, the Indemnified Party will cooperate in the
defense of any such action at the expense of the Indemnifying Party and the
records of each party shall be available to the other with respect to such
defense.

    

    Section
7.6 Indemnification
Threshold and Maximum. [Intentionally Left Blank.]

    

    Section
7.7 Exclusive
Remedy. [Intentionally Left Blank.]

    

    ARTICLE
VIII.

    TERMINATION

    

    Section 8.1 Grounds for Termination.
This Agreement may be terminated at any time prior to the
Closing:

     

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    (a)           by
written notice from Buyer to Seller at any time prior to the Closing Date or by
mutual agreement of the Seller and Buyer;

    

    (b)           by
either Seller or Buyer if consummation of the transactions contemplated by this
Agreement would violate any non-appealable final order, decree or judgment of
any Governmental Authority having competent jurisdiction;

    

    (c)           by
the Seller if the transaction contemplated by this Agreement is not approved by
the California Department of Insurance;

    

    (d)           by
the Buyer if the Closing has not occurred on or before May 31,
2010;

    

    (e)           by
Seller, if the Buyer has committed a material breach of any provision of this
Agreement that has not been cured within ten (10) days of written notice of such
material breach; or

    

    (f)           by
the Buyer if a Seller has committed a material breach of any provision of this
Agreement that has not been cured within ten (10) days of written notice of such
material breach.

    

    Section 8.2 Effect of
Termination. If this Agreement is terminated as permitted by Section 8.1,
such termination shall be without liability of either party (or any stockholder,
director, officer, employee, agent, consultant or representative of such party);
provided that if such termination shall result from the willful failure of
either party to fulfill a condition to the performance of the obligations of the
other party, failure to perform a covenant of this Agreement or breach by either
party to this Agreement of any representation or warranty or agreement contained
herein, such party shall be fully liable for any and all losses incurred or
suffered by the other party as a result of such failure or breach.

    

    ARTICLE
IX.

    MISCELLANEOUS

    

    Section 9.1 Assurance of Further
Action. From time to time, and without further consideration from the
Buyer, but at the Buyer's expense, the Seller shall execute and deliver, or
cause to be executed and delivered, to the Buyer such further instruments of
sale, assignment, transfer and delivery and take such other action as the Buyer
may reasonably request in order to more effectively sell, assign, transfer and
deliver and reduce to the possession of the Buyer any and all of the Company
Stock and consummate the transactions contemplated hereby.

    

    Section 9.2 Mediation. Either party shall have the
right to request non-binding mediation of any claim or controversy arising out
of or relating to this Agreement or any breach thereof, and the other party
shall agree to such mediation.  The party moving for mediation shall
select a mediator, and if the other party disapproves of such choice in writing
within ten (10) Business Days of such selection, then the nonmoving party shall
nominate a mediator and the two (2) shall choose a third, who shall mediate the
proceeding.  The venue for such mediation shall be Orange County,
California.  Only individuals who are retired judges, lawyers engaged
fulltime in the practice of law or who are otherwise licensed as mediators in
the State of California shall be selected as a mediator.

     

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    Section 9.3 Updates.  Prior to Closing,
all Schedules listed in this Agreement may be modified or updated upon
initiation of either party.  Notwithstanding the foregoing, any
modification or update to any Schedule made by either the Buyer or the Seller
prior to the Closing that will not or reasonably could not be expected to have a
Material Adverse Effect shall be disregarded and have no effect for the purpose
of determining whether the conditions to Closing set forth in this Agreement
have been met.  No written modification or update of a Schedule prior
to the Closing Date shall cure any breach of any representation or warranty made
by a party.

    

    Section 9.4 Fees and
Expenses.  Each of the
parties hereto shall pay his or its own fees and expenses incident to the
negotiation, preparation and execution of this Agreement, including attorneys'
and accountants' fees; provided, however, that the Buyer, and not the Seller,
shall be responsible for all fees and expenses incident to the application,
submission and approval of the transactions contemplated by this Agreement by
the California Department of Insurance.

    

    Section 9.5 Notices. All notices, requests and
other communications to either party hereunder shall be in writing (including
facsimile transmission) and shall be given by registered or certified mail
(postage prepaid, return receipt requested) or personally delivered to the
address provided below or sent by facsimile transmission to the facsimile number
provided below (with verification thereof by the sender) or electronically by
email to the email address provided below (provided that receipt is verified or
acknowledged by the recipient):

    

    

    

    If for
Seller:                            David
Kayton

    790 E. Colorado Blvd., Suite
400

    Pasadena, California
91101

    Telephone: (305) 531-0300

    Facsimile: (305) 531-0310

    Email: __________________

    

    with a copy
to:                      David
Kayton

    2128 N. Ray
Road                                                      

    Miami Beach, FL 33140

    Telephone: (305) 531-0300

    Facsimile: (305) 531-0310

    Email: __________________

     

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              If
      for Buyer:

            	
              TEAM
      Nation Holdings, Inc., a Nevada
corporation

            

    

    4667 MacArthur Boulevard, Suite
150

    Newport Beach,
CA  92618

    Attention: Dennis Duffy or Janis
Okerlund

    Telephone: (949) 729-3900

    Facsimile: (949) 608-3599

    Email:  Janis@teamnationholdings.com

    

    with a
copy
to:                                                      with
a copy
to:                                           

    

    

    Telephone: (___) ________

    Facsimile: (___) ________

    Email: __________________

     

    

    

    If for
Company:                                                    First
Southwestern Title Company

    790 E. Colorado Blvd., Ste.
400

    Pasadena,
CA  91101

    Attention:  David
Kayton

    Telephone: (305) 531-0300

    Facsimile: (305) 531-0310

    Email: __________________

    

    All such
notices, requests and other communications shall be deemed received on the date
of receipt by the recipient thereof if received prior to 5:00 p.m. in the place
of receipt and such day is a Business Day. Otherwise, any such notice, request
or communication shall be deemed not to have been received until the next
succeeding Business Day in the place of receipt.

    

    Section 9.6 Entire
Agreement; Third Party Beneficiaries. This Agreement and the
Transaction Documents between the Buyer and the Seller contemplated hereby
constitute the entire agreement between the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter of this
Agreement.  The Exhibits and Schedules hereto are an integral part
hereof and are incorporated by reference herein for all purposes. No
representation, inducement, promise, understanding, condition or warranty not
set forth herein has been made or relied upon by either party
hereto.  Neither this Agreement nor any provision hereof shall confer
upon any Person other than the parties hereto any rights or remedies
hereunder.

    

    Section  9.7  Amendments,
Side Letters.  Any and all Amendments to this Agreement shall
be evidenced by an Amended Stock Purchase Agreement fully executed by the
parties, or by a mutually executed Side Letter which shall be shown on Exhibit E to this Agreement
and is incorporated by reference herein for all purposes.  All Side
Letters executed pursuant to the Original Agreement are declared null and void
and are not a part of this Agreement.

    

    27

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 9.8 Successors
and Assigns. The
provisions of this Agreement shall be binding upon and be for the benefit of
each of the parties hereto and its or his successors and assigns; provided that
no party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the prior written consent of each other
party hereto except that either party may transfer or assign, in whole or from
time to time in part, to one or more of its affiliates, its rights under this
Agreement, but no such transfer or assignment shall relieve the transferred
party of its obligations hereunder.

    

    Section 9.9 Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, and all of which together shall be deemed to be one and the same
instrument.

    

    Section 9.10 Applicable
Law. To the
extent permitted by law, this Agreement and the legal relations between the
parties hereto shall be governed by and construed in accordance with the
internal laws of the State of California.

    

    Section 9.11 Construction. The captions or headings in
this Agreement are for convenience of reference only and in no way define, limit
or describe the scope or intent of any provisions or Sections of this Agreement.
All references in this Agreement to particular Articles or Sections are
references to the Articles or Sections of this Agreement, unless some other
references are clearly indicated. All accounting terms not specifically defined
in this Agreement shall be construed in accordance with GAAP.  In this
Agreement, unless the context otherwise requires, (i) words describing the
singular number shall include the plural and vice versa, (ii) words denoting any
gender shall include all genders, and (iii) the word "including" shall mean "including
without limitation."

    

    Section 9.12 Confidentiality.  Buyer, Seller and
the Company agree to keep the Transaction, and the terms thereof, confidential
and not disclose to anyone, other than the officers, directors, shareholders,
attorneys, accountants and business consultants on a "need to know" basis and
only after advising the recipient that the information and/or documentation is
"confidential" and also other than to the California Department of Insurance or
such other regulatory agency as may be necessary to obtain the approval for the
Transaction.

    

    

    [Signature Pages
Follow]

     

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    SIGNATURE
PAGE TO STOCK PURCHASE AGREEMENT

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

     

     

    
      
        	 BUYER:	

                TEAM
      Nation Holdings, Inc., a Nevada corporation

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Dennis
      R. Duffy	 
	 	Name:	Dennis
      R. Duffy    	 
	 	Title: 	CEO	 
	 	 	 	 

      

    

    
      
        	 SELLER:	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ David
      Kayton	 
	 	 	David
      Kayton	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
        	 COMPANY:	

                First
      Southwestern Title Company of California, a California
      corporation

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ David
      Kayton	 
	 	 	David
      Kayton	 
	 	 	Chief
      Executive Officer	 
	 	 	 	 

      

    

    
 

     

     

     

    29

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIST
OF SCHEDULES AND EXHIBITS

    

    

    Schedule
to Section 3.1(e)

    Schedule
to Section 3.1(f)

    Schedule
to Section 3.1(g)

    Schedule
to Section 3.1(h)

    Schedule
to Section 3.1(k)

    Schedule
to Section 3.1(l)

    Schedule
to Section 3.1(n)

    Schedule
to Section 3.1(o)

    Schedule
to Section 3.1(p)

    Schedule
to Section 3.1(q)

    Schedule
to Section 3.1(u)

    Schedule
to Section 3.1(v)

    Schedule
to Section 3.1(w)

    Schedule
to Section 3.1(x)

    Schedule
to Section 3.2(c)

    

    
      	
              Exhibit
      A 

            	
              Company
      Liabilities

            

    

    
      	
              Exhibit
      A1 

            	
              Negotiated
      Company Liabilities

            

    

    
      	
              Exhibit
      B 

            	
              TEAM
      Advances, Notes and Guarantees

            

    

    
      	
              Exhibit
      B1 

            	
              Amended
      Promissory Notes

            

    

    
      	
              Exhibit
      B2 

            	
              Amended
      Guarantees

            

    

    
      	
              Exhibit
      B 

            	
              Discretionary
      Promissory Note

            

    

    
      	
              Exhibit
      C 

            	
              Operational
      Guaranty

            

    

    
      	
              Exhibit
      D 

            	
              Schedule
      of Liabilities

            

    

    
      	
              Exhibit
      E 

            	
              Schedule
      of Side Letters Incorporated by
Reference

            

    

    

    

    

    

    

    

    30

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    

    

    

    

    Exhibit
“E”

    

    Schedule of Side Letters
Incorporated by Reference

    

    1.         
That Certain Side Letter dated ________________ executed by Dennis R. Duffy and
David Kayton, identifying the Negotiated Company Liabilities, a true and correct
copy of which is attached hereto.

     

     

     

     

     

     

     

    31

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