Document:

Asset Puchase Agreement

    
      
 

      

      

      

      ASSET
        PURCHASE AGREEMENT

      

      

      

      

      

      

      

      

      

      

      Between:

      

      

      SAMI
        SALABI

      

      

      And:

      

      

      THE
        TRADE SHOW MARKETING COMPANY LTD.

      
 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ASSET
        PURCHASE AGREEMENT

      

      

      

      THIS
        ASSET PURCHASE AGREEMENT
        is dated
        and made for reference as fully executed on this ___day of July, 2005 (the
        “Effective
        Date”).

      

      

      BETWEEN:

      SAMI
        SALABI,
        and/or
        corporate entities beneficially owned by Sami Salabi, having a mailing address
        at _______________________________

      (the
        “Vendor”);

      OF
        THE FIRST PART

      

      AND:

      

      , 

      THE
        TRADESHOW MARKETING COMPANY LTD.
        as a
        company duly incorporated under the laws of Nevada and having an address
        for
        notice and delivery located at ___________________________________,

      

      (the
        “Purchaser”);

      OF
        THE SECOND PART

      

      (the
        Vendor and the Purchaser being hereinafter singularly also referred to as
        a
“Party”
        and
        collectively referred to as the “Parties”
        as the
        context so requires).

      

      

      WHEREAS:

      

      A. The
        Vendor is the owner of two retail outlets (the “Outlets”) in or near Phoenix,
        Arizona, specifically located at Paradise Valley Mall and bearing license
        # E-16
        and Arrowhead Town Center bearing license # 2163, the Outlets containing
        certain
        business equipment, inventory, supplies, supply and contact lists, proprietary
        information, etc. (collectively, the “Assets”),
        a
        complete listing of such Assets of the Vendor being set forth in Schedule
“A”
        which is attached to this Agreement and which forms a material part
        hereof;

      

      B. The
        Purchaser is desirous of acquiring the Assets of the Vendor, and obtaining
        assignment of the leases at the Outlets.

      

      

      NOW
        THEREFORE THIS AGREEMENT WITNESSETH that,
        in
        consideration of the mutual covenants and provisos herein contained, THE
        PARTIES HERETO AGREE AS FOLLOWS:

       

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Article
        I

      SCHEDULES
        AND INTERPRETATION

      

      

      1.2  Schedules. For
        the
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires, the following shall represent the Schedules which
        are attached to this Agreement and which form a material part
        hereof:

      

       Schedule      Description

      

      Schedule
        “A”:   List
        of
        Assets being sold by the Vendor to the Purchaser

      Schedule
        “B”:   Assignment
        of Lease for Paradise Valley Mall outlet

      Schedule
        “C”:   Assignment
        of Lease for Arrowhead Town Center outlet

      

      

      1.3  Interpretation. For
        the
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires,:

      

      
        	 	
                (a)

              	
                the
                  words “herein”, “hereof” and “hereunder” and other words of similar import
                  refer to this Agreement as a whole and not to any particular Article,
                  section or other subdivision of this
                  Agreement;

              

      

      

      
        	 	
                (b)

              	
                the
                  headings are for convenience only and do not form a part of this
                  Agreement
                  nor are they intended to interpret, define or limit the scope or
                  extent of
                  this or any provision of this
                  Agreement;

              

      

      

      
        	 	
                (c)

              	
                any
                  reference to an entity shall include and shall be deemed to be
                  a reference
                  to any entity that is a permitted successor to such entity;
                  and

              

      

      

      
        	 	
                (d)

              	
                words
                  in the singular include the plural and words in the masculine gender
                  include the feminine and neuter genders, and vice
                  versa.

              

      

      

      

      Article
        2

      PURCHASE
        AND SALE OF ASSETS

      

      

      2.1  Purchase
        and Sale.
        The
        Purchaser hereby purchases, without condition, and the Vendor hereby sells,
        without condition, the Assets for the sum of $55,000 USD (the “Purchase Price”)
        of which $25,000 USD shall be payable in cash, and $30.000 USD shall be payable
        in the common shares of The Tradeshow Marketing Company Ltd. (the “Shares”). The
        Shares shall be issued to the Vendor and/or his assign at a deemed price
        of
        $1.00 per share. If however, the share price is below $1.00 per share at
        the end
        of twelve (12) months from the date of this Agreement, then the Purchaser
        shall
        issue additional shares to the Vendor to ensure that the Shares issued under
        this have an aggregate market value of at least $30.000 USD. 

      

      Article
        3

      DUE
        DILIGENCE

      

      

      3.1  Due
        Diligence Period.
        The
        Vendor shall allow the Purchaser a period of ___ days in which the Purchaser
        shall be afforded the opportunity to verify the following:

       

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
             

          

        

         

         

      

      
        	(a)  	
                The
                  form and general nature of the transaction in order to appropriately
                  address the Parties’ tax and securities
                  issues;

              

      

      

      
        	(b)  	
                 That
                  the retail locations and their inventories be free and clear of
                  any and
                  all liabilities, encumbrances, and creditor demands whatsoever,
                  and that
                  full and clear title can be delivered to The
                  Purchaser.

              

      

      

      
        	(c)  	
                That
                  the complete satisfactory due diligence, and that upon signing
                  of this
                  Agreement, that the Vendor allow the Purchaser or a representative
                  of the
                  Purchaser to examine and confirm all inventories, stock, book accounts,
                  records and any other such additional information as may be reasonably
                  requested by the Purchaser.; and

              

      

      

      
        	(d)  	
                That
                  the Parties successfully execute an assumption of lease agreement
                  for the
                  Outlets. 

              

      

      

      

      Article
        4

      REPRESENTATIONS,
        WARRANTIES AND COVENANTS BY THE VENDOR

      

      4.1  Representations,
        Warranties and Covenants by the Vendor.
        In
        order to induce the Purchaser to enter into and consummate this Agreement,
        the
        Vendor represents to and warrants to the Purchaser that, to the best of the
        informed knowledge, information and belief of the Vendor, after having made
        due
        inquiry:

      

      (a) the
        Vendor is duly incorporated under the laws of its jurisdiction of incorporation
        and is validly existing and in good standing with respect to all statutory
        filings required by the applicable corporate laws;

      

      (b) the
        Vendor is qualified to do business in those jurisdictions where it is necessary
        to fulfill its obligations under this Agreement and the Vendor has the full
        power and authority to enter into this Agreement and any agreement or instrument
        referred to or contemplated by this Agreement;

      

      
        	 	
                (c)

              	
                the
                  Vendor is the registered and beneficial owner of all interests
                  in the
                  Assets and has the requisite power, authority and capacity to own
                  and use
                  the Assets and the Vendor owns the right to develop and maintain
                  the
                  Assets;

              

      

      

      (d) the
        Vendor owns and possesses and has good and marketable title to and possession
        of
        all of the Assets free and clear of all actual or threatened liens, charges,
        options, encumbrances, voting agreements, voting trusts, demands, limitations
        and restrictions of any nature whatsoever;

      

      
        	 	
                (e)

              	
                no
                  person, firm or corporation has any written or oral agreement,
                  option,
                  understanding or commitment, or any right or privilege capable
                  of becoming
                  an agreement, for the purchase from the Vendor of any of the
                  Assets;

              

      

      

      
        	 	
                (f)

              	
                there
                  are no outstanding orders or directions relating to any matters
                  requiring
                  any work, repairs, construction or capital expenditures with respect
                  to
                  any of the Assets and the conduct of the operations related thereto,
                  nor
                  has the Vendor received any notice of
                  same;

              

      

       

       

       

      
        
          
          

        

        
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                (g)

              	
                there
                  is no adverse claim or challenge against or to the ownership of
                  or title
                  to any of the Assets or which may impede the development of any
                  of the
                  Assets, nor, to the best of the knowledge, information and belief
                  of the
                  Vendor, after having made due inquiry, is there any basis for any
                  potential claim or challenge, and, to the best of the knowledge,
                  information and belief of the Vendor, after having made due inquiry,
                  and
                  other than as provided for herein, no persons have any royalty,
                  net
                  profits or other interests whatsoever in revenues or sales from
                  any of the
                  Assets;

              

      

       

       

      
        	 	
                (h) 

              	
                there
                  are no actions, suits, proceedings or investigations (whether or
                  not
                  purportedly against or on behalf of the Vendor or the Assets),
                  pending or
                  threatened, which may affect, without limitation, the rights of
                  the Vendor
                  to transfer any of the Assets to the Purchaser at law or in equity,
                  or
                  before or by any federal, state, provincial, municipal or other
                  governmental department, commission, board, bureau, agency or
                  instrumentality, domestic or foreign, and, without limiting the
                  generality
                  of the foregoing, there are no claims or potential claims under
                  any
                  relevant family relations legislation or other equivalent legislation
                  affecting the Assets. In addition, the Vendor is not now aware
                  of any
                  existing ground on which any such action, suit or proceeding might
                  be
                  commenced with any reasonable likelihood of
                  success;

              

      

      

      
        	 	
                (i)

              	
                the
                  Vendor has not experienced, nor is the Vendor aware of, any occurrence
                  or
                  event which has had, or might reasonably be expected to have, a
                  materially
                  adverse affect on the Assets;

              

      

      

      
        	 	
                (j)

              	
                here
                  is not any proceeding, claim or, to the best of the knowledge,
                  information
                  and belief of the Vendor, after having made due inquiry, any investigation
                  by any federal, state or municipal taxation authority, or any matters
                  under discussion or dispute with such taxation authorities, in
                  respect of
                  taxes, governmental charges, assessments or reassessments in connection
                  with the Vendor or the Assets, and the Vendor is not aware of any
                  contingent tax liabilities or any grounds that could result in
                  an
                  assessment, reassessment, charge or potentially adverse determination
                  by
                  any federal, state or municipal taxation authority as against the
                  Vendor
                  or the Assets;

              

      

      

        
          	 	
                  (k)

                	
                  the
                    Vendor is not in breach of any provision or condition of, nor
                    has the
                    Vendor done or omitted to do anything that, with or without the
                    giving of
                    notice or lapse or both, would constitute a breach of any provision
                    or
                    condition of, or give rise to any right to terminate or cancel
                    or
                    accelerate the maturity of any payment under, any deed of trust,
                    contract,
                    certificate, consent, permit, license or other instrument to
                    which the
                    Vendor is a party, by which the Vendor is bound or from which
                    the Vendor
                    derives benefit, or any judgment, decree, order, rule or regulation
                    of any
                    Court or governmental authority to which the Vendor is subject,
                    or any
                    statute or regulation applicable to the Vendor, to an extent
                    that, in the
                    aggregate, has a material adverse affect on the Vendor or the
                    Assets;

                

        

         

      

      
        	 	
                (l)

              	
                the
                  Vendor is not required to obtain any authorizations, approvals,
                  or waivers
                  that may be necessary or desirable in connection with the transactions
                  contemplated in this Agreement;

              

      

      

      
        	 	
                (m)

              	
                the
                  Vendor has not committed to sell, license, distribute, option,
                  or
                  otherwise dispose of or grant any interest in all or any part of
                  the
                  Assets or agree to do or perform any act or enter into any transaction
                  or
                  negotiation which could reasonably be expected to interfere with
                  this
                  Agreement or which would render inaccurate any of the representations,
                  warranties or covenants set forth in this
                  Agreement;

              

      

      

      
        	 	
                (n)

              	
                the
                  execution and delivery of this Agreement and the agreements contemplated
                  hereby have been duly authorized by all necessary action, corporate
                  or
                  otherwise, or will have been so authorized at the relevant
                  time;

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                (o)

              	
                this
                  Agreement constitutes a legal, valid and binding obligation of
                  the Vendor
                  enforceable against it in accordance with its terms, except as
                  enforcement
                  may be limited by laws of general application affecting the rights
                  of
                  creditors;

              

      

       

      
        	 	
                (p)

              	
                no
                  proceedings are pending for, and the Vendor is unaware of, any
                  basis for
                  the institution of any proceedings leading to its respective dissolution
                  or winding up, or the placing of it in bankruptcy or subject to
                  any other
                  laws governing the affairs of insolvent
                  companies;

              

      

       

       

      
        
          	 	
                  (q)

                	
                  the
                    making of this Agreement and the completion of the transactions
                    contemplated hereby and the performance of and compliance with
                    the terms
                    hereof does not and will not:

                

        

         

         

        
          
             

            
              	 	 	(i) 	conflict with or result in a
                      breach of or
                      violate any of the terms, conditions or provisions of the Vendor’s
                      constating documents; 

            

             

            
              
                	 	 	(ii) 	conflict  with 
                        or result in a
                        breach of  or  violate any of  the  terms,
                        conditions
                        or provisions  of  any   law,
                        judgment, order,
                         injunction, decree, regulation or 
	
                      	 	 	
                        ruling conflict
                          with or result in a breach
                          of or violate any of the terms, conditions or provisions
                          of any law,
                          judgment, order, injunction, decree, regulation or ruling
                          of any court or
                          governmental authority, domestic or foreign, to which the
                          Vendor is
                          subject, or constitute or result in a default under any
                          agreement,
                          contract or commitment to which the Vendor is a
                          party;

                      

              

               

            

          

        

      

      
        
          	 	 	(iii) 	
                  give
                    to any party the right of termination,
                    cancellation or acceleration in or with respect to any agreement,
                    contract
                    or commitment to which the Vendor is a
                    party;

                

        

         

      

      
        
          	 	 	(iv) 	give to  any government or
                  governmental
                  authority, or any  municipality or any subdivision 
                  thereof,  including any governmental department, 
                  commission, 
	 	 	 	
                  bureau,
                    board or administration agency, any
                    right of termination, cancellation or suspension of, or constitute
                    a
                    breach of or result in a default under, any permit, license,
                    control or
                    authority issued to the Vendor which is necessary or desirable
                    in
                    connection with the conduct and operations of its respective
                    Business and
                    the ownership or leasing of its respective Assets or other assets;
                    or
 

        

         

        
          
            	 	 	(v) 	constitute  a  default
                    by,  or
                    any event  which, with the giving of notice or lapse of
                    time or
                    both,  might constitute  an  event of default,
                    under any
                    agreement,
	
                  	 	 	
                    contract,
                      indenture or
                      other  constitute a default by, or any event
                      which, with the
                      giving of notice or lapse of time or both, might constitute
                      an event of
                      default, under any agreement, contract, indenture or other
                      instrument of
                      the Vendor which would give any party to that agreement, contract,
                      indenture or other instrument the right to terminate, accelerate,
                      modify,
                      or effect any act which would materially negatively affect
                      the
                      Assets; 

                  

          

           

          
            

            
              	 	
                      (r)

                    	
                      the
                        Vendor is not aware of any fact or circumstance which has
                        not been
                        disclosed to the Purchaser which should be disclosed in order
                        to prevent
                        the representations, warranties and covenants contained in
                        this section
                        from being misleading or which would likely affect the decision
                        of the
                        Purchaser to enter into this Agreement;

                    

            

          

           

           

          
            

            
              	 	
                      (s)

                    	
                      neither
                        this Agreement nor any other document, certificate or statement
                        furnished
                        to the Purchaser by or on behalf of the Vendor in connection
                        with the
                        transactions contemplated hereby knowingly or negligently
                        contains any
                        untrue or incomplete statement of material fact or omits
                        to state a
                        material fact necessary in order to make the statements therein
                        not
                        misleading which would likely affect the decision of the
                        Purchaser to
                        enter into this Agreement; and

                    

            

             

            
              

              
                	 	
                        (t)

                      	
                        the
                          Vendor will employ good faith, due diligence, and best
                          efforts to perform
                          its obligations of this Agreement and will enter into such
                          additional or
                          collateral agreements as may be reasonably required by
                          the Purchaser to
                          effect and complete the objects and intent of this
                          Agreement.

                      

              

               

               

              
                
                  
                  

                

                
                  6

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

       

      4.2  Continuity
        of the Representations, Warranties and Covenants by the
        Vendor.
        The
        representations, warranties and covenants by the Vendor contained in this
        Article, or in any certificates or documents delivered pursuant to the
        provisions of this Agreement or in connection with the transactions contemplated
        hereby, will be true at and as of the Effective Date. Notwithstanding any
        investigations or inquiries made by the Purchaser or by the Purchaser’s
        professional advisors, or the waiver of any condition by the Purchaser, the
        representations, warranties and covenants of the Vendor contained in this
        Article shall continue in full force and effect for a period of twelve (12)
        months from the Effective Date; provided, however, that the Vendor shall
        not be
        responsible for the breach of any representation, warranty or covenant of
        the
        Vendor contained herein caused by any act or omission of the Purchaser. In
        the
        event that any of the representations, warranties or covenants of the Vendor
        are
        found by a Court of competent jurisdiction to be incorrect and such
        incorrectness results in any loss or damage sustained, directly or indirectly,
        by the Purchaser, then the Vendor will pay the amount of such loss or damage
        to
        the Purchaser within 30 calendar days of receiving notice of judgment therefor;
        provided that the Purchaser will not be entitled to make any claim unless
        the
        loss or damage suffered may exceed the amount of $10,000.

      

      

      Article
        5

      WARRANTIES,
        REPRESENTATIONS AND COVENANTS BY THE PURCHASER

      

      5.1  Warranties,
        Representations and Covenants by the Purchaser.
        In
        order to induce the Vendor to enter into and consummate this Agreement, the
        Purchaser hereby warrants to and represents to the Vendor that, to the best
        of
        the informed knowledge, information and belief of the Purchaser, after having
        made due inquiry:

      

      (a) the
        Purchaser is duly incorporated under the laws of its jurisdiction of
        incorporation and is validly existing and in good standing with respect to
        all
        statutory filings required by the applicable corporate laws;

      

      
        	 	
                (b)

              	
                the
                  execution and delivery of this Agreement and the agreements contemplated
                  hereby has been duly authorized by all necessary corporate action
                  on its
                  part;

              

      

      

      
        	 	
                (c)

              	
                there
                  are no consents, approvals or conditions precedent to the performance
                  of
                  this Agreement;

              

      

      

      
        	 	
                (d)

              	
                this
                  Agreement constitutes a legal, valid and binding obligation of
                  the
                  Purchaser enforceable against the Purchaser in accordance with
                  its terms,
                  except as enforcement may be limited by laws of general application
                  affecting the rights of creditors;

              

      

      

      
        	 	
                (e)

              	
                no
                  proceedings are pending for, and the Purchaser is unaware of, any
                  basis
                  for the institution of any proceedings leading to the dissolution
                  or
                  winding up of the Purchaser or the placing of the Purchaser in
                  bankruptcy
                  or subject to any other laws governing the affairs of insolvent
                  companies;

              

      

      

      
        	 	
                (f)

              	
                the
                  Purchaser is not in breach of any laws, ordinances, statutes, regulations,
                  by-laws, orders or decrees to which it is subject or which apply
                  to
                  it;

              

      

      

      
        	 	
                (g)

              	
                there
                  has been and there will be prepared and filed on a timely basis
                  all
                  federal and state income tax returns, elections and designations,
                  and all
                  other governmental returns, notices and reports of which the Purchaser
                  had, or ought reasonably to have had, knowledge required to be
                  or
                  reasonably capable of being filed with respect to the operations
                  of the
                  Purchaser, and no such returns, elections, designations, notices
                  or
                  reports contain or will contain any material misstatement or omit
                  any
                  material statement that should have been included, and each such
                  return,
                  election, designation, notice or report, including accompanying
                  schedules
                  and statements, is and will be true, correct and complete in all
                  material
                  respects;

              

      

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
 

      
        	 	
                (h)

              	
                the
                  making of this Agreement and the completion of the transactions
                  contemplated hereby and the performance of and compliance with
                  the terms
                  hereof does not and will not:

              

      

      

      
        	 	 	
                (i)

              	
                conflict
                  with or result in a breach of or violate any of the terms, conditions
                  or
                  provisions of the constating documents of the
                  Purchaser;

              

      

      

      
        	 	 	
                (ii)

              	
                conflict
                  with or result in a breach of or violate any of the terms, conditions
                  or
                  provisions of any law, judgment, order, injunction, decree, regulation
                  or
                  ruling of any Court or governmental authority, domestic or foreign,
                  to
                  which the Purchaser is subject, or constitute or result in a default
                  under
                  any agreement, contract or commitment to which the Purchaser is
                  a
                  party;

              

      

      

      
        	 	 	
                (iii)

              	
                give
                  to any party the right of termination, cancellation or acceleration
                  in or
                  with respect to any agreement, contract or commitment to which
                  the
                  Purchaser is a party;

              

      

      

      
        	 	 	
                (iv)

              	
                give
                  to any government or governmental authority, or any municipality
                  or any
                  subdivision thereof, including any governmental department, commission,
                  bureau, board or administration agency, any right of termination,
                  cancellation or suspension of, or constitute a breach of or result
                  in a
                  default under, any permit, license, control or authority issued
                  to the
                  Purchaser which is necessary or desirable in connection with the
                  conduct
                  and operations of its business and the ownership or leasing of
                  its
                  business assets; or

              

      

      

      
        	 	 	
                (v)

              	
                constitute
                  a default by the Purchaser, or any event which, with the giving
                  of notice
                  or lapse of time or both, might constitute an event of default,
                  under any
                  agreement, contract, indenture or other instrument relating to
                  any
                  indebtedness of the Purchaser which would give any party to that
                  agreement, contract, indenture or other instrument the right to
                  accelerate
                  the maturity for the payment of any amount payable under that agreement,
                  contract, indenture or other
                  instrument;

              

      

      

      
        	 	
                (i)

              	
                neither
                  this Agreement nor any other document, certificate or statement
                  furnished
                  to the Vendor by or on behalf of the Purchaser in connection with
                  the
                  transactions contemplated hereby knowingly or negligently contains
                  any
                  untrue or incomplete statement of material fact or omits to state
                  a
                  material fact necessary in order to make the statements therein
                  not
                  misleading; 

              

      

       

      
        
          	 	
                  (j)

                	
                  the
                    Purchaser is not aware of any fact or circumstance which has
                    not been
                    disclosed to the Vendor which should be disclosed in order to
                    prevent the
                    representations, warranties and covenants contained in this section
                    from
                    being misleading or which would likely affect the decision of
                    the Vendor
                    to enter into this Agreement;
                    and

                

        

        
          	 	
                  (k)

                	
                  
                    the
                      Purchaser will employ good faith, due diligence, and best efforts
                      to
                      perform its obligations of this Agreement and will enter into
                      such
                      additional or collateral agreements as may be reasonably required
                      to
                      effect and complete the objects and intent of this
                      Agreement.

                  

                

        

         

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

      

      5.2  Continuity
        of the Representations, Warranties and Covenants by the
        Purchaser.
        The
        representations, warranties and covenants of the Purchaser contained in this
        Article, or in any certificates or documents delivered pursuant to the
        provisions of this Agreement or in connection with the transactions contemplated
        hereby, will be true at and as of the Effective Date. Notwithstanding any
        investigations or inquiries made by the Vendor or by the Vendor’s respective
        professional advisors prior to the Effective Date, or the waiver of any
        condition by the Vendor, the representations, warranties and covenants of
        the
        Purchaser contained in this Article shall survive the Effective Date and
        shall
        continue in full force and effect for a period of twelve (12) months from
        the
        Effective Date; provided, however, that the Purchaser shall not be responsible
        for the breach of any representation, warranty or covenant of the Purchaser
        contained herein caused by any act or omission of the Vendor. In the event
        that
        any of the said representations, warranties or covenants are found by a Court
        of
        competent jurisdiction to be incorrect and such incorrectness results in
        any
        loss or damage sustained, directly or indirectly, by the Vendor, then the
        Purchaser will pay the amount of such loss or damage to the Vendor within
        30
        calendar days of receiving notice of judgment therefor; provided that the
        Vendor
        will not be entitled to make any claim unless the loss or damage suffered
        may
        exceed the amount of $10,000.

      

      

      

      Article
        6 

      ADDITIONAL
        TERMS

      

      

      6.1  Opinions,
        Reports and Advice of the Vendor.
        The
        Vendor hereby acknowledges and agrees that all written and oral opinions,
        reports, advice and materials provided by the Vendor to the Purchaser in
        connection with the Assets hereunder are intended solely for the Purchaser’s
        benefit and for the Purchaser’s use only, and that any such written and oral
        opinions, reports, advice and information are the exclusive property of the
        Purchaser. In this regard the Vendor hereby covenants and agrees that the
        Purchaser may utilize any such opinion, report, advice and materials for
        any
        other purpose whatsoever and, furthermore, may reproduce, disseminate, quote
        from and refer to, in whole or in part, at any time and in any manner, any
        such
        opinion, report, advice and materials in its sole and absolute
        discretion.

      

      6.2  Additional
        Documents and Acts by Vendor.
        The
        Vendor will also cause or deliver, or cause to be delivered, to the Purchaser,
        at the times stipulated, the following:

      

      
        	 	
                (a)

              	
                upon
                  the request of the Purchaser, all documentation as may be necessary
                  and as
                  may be required by counsel for the Purchaser, acting reasonably,
                  to ensure
                  that all of the Assets have been duly transferred, assigned and
                  are
                  registerable in the name of and for the benefit of the Purchaser
                  under
                  applicable corporate laws and including, without limitation, all
                  necessary
                  deeds, conveyances, bills of sale, assurances, transfers, contract
                  assignments, sales agreement assignments, development agreement
                  assignments, royalty assignments, license assignments, manufacturing
                  agreement assignments, supply agreement assignments, consents and
                  any
                  other documents necessary or reasonably required effectively to
                  transfer
                  all of the Assets and the business of the Assets to the Purchaser
                  with a
                  good and marketable title, free and clear of all mortgages, liens,
                  charges, pledges, claims, security interests or encumbrances
                  whatsoever;

              

      

      

      
        	 	
                (b)

              	
                within
                  10 days of the Effective Date, a certified copy of the resolutions
                  of the
                  directors and shareholders of the Vendor authorizing the transfer
                  by the
                  Vendor to the Purchaser of all of the Assets in accordance with
                  the terms
                  of this Agreement;

              

      

      

      
        	 	
                (c)

              	
                within
                  30 days of the Effective Date, all necessary consents and approvals
                  in
                  writing to the completion of the transactions contemplated herein
                  and
                  including, without limitation, approval from all Regulatory Authorities
                  having jurisdiction over the Vendor and the Assets or a certificate
                  of
                  counsel of the Vendor that no such consents are required;
                  and

              

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
 

      
        	 	
                (d)

              	
                within
                  30 days of the Effective Date all records, engineering specifications
                  and
                  reports, patents, books, and other documentation pertinent to the
                  Assets
                  and all molds, inventory, customer lists, supply contracts, manufacturing
                  contracts, and all and every part of such matters pertaining to
                  the
                  Assets.

              

      

      

      

      6.3  Additional
        Documents and Acts by Purchaser.
        The
        Purchaser will also cause or deliver, or cause to be delivered, to the Vendor
        or
        the Shareholders, as appropriate, at the times stipulated, the
        following:

      

      (a) within
        ___ days of the date of this Agreement, the Purchaser shall pay
        $____________________, and shall issue ______________________ shares into
        the
        name of ____________________________.

      

      

      6.4  Non-disclosure.
        The
        Parties hereto, for themselves, their officers, directors, shareholders,
        consultants, employees and agents, agree that they each will not disseminate
        or
        disclose, or knowingly allow, permit or cause others to disseminate or disclose
        to third parties who are not subject to express or implied covenants of
        confidentiality, without the other Parties’ express written consent, either: (i)
        the fact or existence of this Agreement or discussions and/or negotiations
        between them involving, inter
        alia,
        possible business transactions; (ii) the possible substance or content of
        those
        discussions; (iii) the possible terms and conditions of any proposed
        transaction; (iv) any statements or representations (whether verbal or written)
        made by either Party in the course of or in connection with those discussions;
        or (v) any written material generated by or on behalf of any Party and such
        contacts, other than such disclosure as may be required under applicable
        securities legislation or regulations, pursuant to any order of a Court or
        on a
“need to know” basis to each of the Parties’ respective professional
        advisors.

      

      

      6.5  Confidential
        Information.
        Each
        Party hereto acknowledges that any and all information which a Party may
        obtain
        from, or have disclosed to it, about the other Parties constitutes valuable
        trade secrets and proprietary confidential information of the other Parties
        (collectively, the “Confidential
        Information”).
        No
        such Confidential Information shall be published by any Party without the
        prior
        written consent of the other Parties hereto, however, such consent in respect
        of
        the reporting of factual data shall not be unreasonably withheld, and shall
        not
        be withheld in respect of information required to be publicly disclosed pursuant
        to applicable securities or corporation laws. Furthermore, each Party hereto
        undertakes not to disclose the Confidential Information to any third party
        without the prior written approval of the other Parties and to ensure that
        any
        third party to which the Confidential Information is disclosed shall execute
        an
        agreement and undertaking on the same terms as contained herein.

      

      6.6      Impact
        of Breach of Confidentiality.
        The
        Parties hereto acknowledge that the Confidential Information is important
        to the
        respective businesses of each of the Parties and that, in the event of
        disclosure of the Confidential Information, except as authorized hereunder,
        the
        damage to each of the Parties hereto, or to either of them, may be irreparable.
        For the purposes of the foregoing sections the Parties recognize and hereby
        agree that a breach by any of the Parties of any of the covenants therein
        contained would result in irreparable harm and significant damage to each
        of the
        other Parties that would not be adequately compensated for by monetary award.
        Accordingly, the Parties agree that in the event of any such breach, in addition
        to being entitled as a matter of right to apply to a Court of competent
        equitable jurisdiction for relief by way of restraining order, injunction,
        decree or otherwise as may be appropriate to ensure compliance with the
        provisions hereof, any such Party will also be liable to the other Parties,
        as
        liquidated damages, for an amount equal to the amount received and earned
        by
        such Party as a result of and with respect to any such breach. The Parties
        also
        acknowledge and agree that if any of the aforesaid restrictions, activities,
        obligations or periods are considered by a Court of competent jurisdiction
        as
        being unreasonable, the Parties agree that said Court shall have authority
        to
        limit such restrictions, activities or periods as the court deems proper
        in the
        circumstances. In addition, the Parties further acknowledge and agree that
        all
        restrictions or obligations in this Agreement are necessary and fundamental
        to
        the protection of the respective businesses of each of the Parties and are
        reasonable and valid, and all defenses to the strict enforcement thereof
        by
        either of the Parties are hereby waived by the other Parties.

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      6.7  Events.
        If any
        Party hereto is at any time prevented or delayed in complying with any
        provisions of this Agreement by reason of strikes, walk-outs, labour shortages,
        power shortages, fires, wars, acts of God, earthquakes, storms, floods,
        explosions, accidents, protests or demonstrations by environmental lobbyists
        or
        native rights groups, delays in transportation, breakdown of machinery,
        inability to obtain necessary materials in the open market, unavailability
        of
        equipment, governmental regulations restricting normal operations, shipping
        delays or any other reason or reasons beyond the control of that Party, then
        the
        time limited for the performance by that Party of its respective obligations
        hereunder shall be extended by a period of time equal in length to the period
        of
        each such prevention or delay.

      

      6.8  Notice.
        A Party
        shall, within seven calendar days, give notice to the other Party of each
        event
        of force
        majeure
        under
        section “14.1” hereinabove, and upon cessation of such event shall furnish the
        other Party with notice of that event together with particulars of the number
        of
        days by which the obligations of that Party hereunder have been extended
        by
        virtue of such event of force
        majeure
        and all
        preceding events of force
        majeure.

      

      

      6.9  Default.
        The
        Parties hereto agree that if any Party hereto is in default with respect
        to any
        of the provisions of this Agreement (herein called the “Defaulting
        Party”),
        the
        non-defaulting Party (herein called the “Non-Defaulting
        Party”)
        shall
        give notice to the Defaulting Party designating such default, and within
        10
        calendar days after its receipt of such notice, the Defaulting Party shall
        cure
        such default, or commence proceedings to cure such default and prosecute
        the
        same to completion without undue delay.

      

      

      6.10  Indemnification.
        The
        Parties hereto agree to indemnify and save harmless the other Party hereto,
        including its respective affiliates and their respective directors, officers,
        employees and agents (each such party being an “Indemnified
        Party”)
        from
        and against any and all losses, claims, actions, suits, proceedings, damages,
        liabilities or expenses of whatever nature or kind, including any investigation
        expenses incurred by any Indemnified Party, to which an Indemnified Party
        may
        become subject by reason of an act or inaction of the other Party.

      

      6.11  Claim
        of Indemnification.
        The
        Parties hereto agree to waive any right they might have of first requiring
        the
        Indemnified Party to proceed against or enforce any other right, power, remedy,
        security or claim payment from any other person before claiming this
        indemnity.

      

      6.12  Notice
        of Claim.
        In case
        any action is brought against an Indemnified Party in respect of which indemnity
        may be sought against any of the Parties hereto, the Indemnified Party will
        give
        the relevant Party hereto prompt written notice of any such action of which
        the
        Indemnified Party has knowledge and such Party will undertake the investigation
        and defense thereof on behalf of the Indemnified Party, including the prompt
        retaining of counsel acceptable to the Indemnified Party affected and the
        payment of all expenses. Failure by the Indemnified Party to so notify shall
        not
        relieve any Party hereto of such Party’s obligation of indemnification hereunder
        unless (and only to the extent that) such failure results in a forfeiture
        by any
        Party hereto of substantive rights or defenses.

      

      6.13  Settlement.
        No
        admission of liability and no settlement of any action shall be made without
        the
        consent of the Indemnified Party affected, such consent not to be unreasonably
        withheld.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      6.14  Legal
        Proceedings.
        Notwithstanding that the relevant Party hereto will undertake the investigation
        and defense of any action, an Indemnified Party will have the right to employ
        separate counsel in any such action and participate in the defense thereof,
        but
        the fees and expenses of such counsel will be at the expense of the Indemnified
        Party unless:

      

      
        	 	
                (a)

              	
                such
                  counsel has been authorized by the relevant Party
                  hereto;

              

      

      

      
        	 	
                (b)

              	
                the
                  relevant Party hereto has not assumed the defense of the action
                  within a
                  reasonable period of time after receiving notice of the
                  action;

              

      

      

      
        	 	
                (c)

              	
                the
                  named parties to any such action include that any Party hereto
                  and the
                  Indemnified Party shall have been advised by counsel that there
                  may be a
                  conflict of interest between any Party hereto and the Indemnified
                  Party;
                  or

              

      

      

      
        	 	
                (d)

              	
                there
                  are one or more legal defenses available to the Indemnified Party
                  which
                  are different from or in addition to those available to any Party
                  hereto.

              

      

      

      

      6.15  Notice.
        Each
        notice, demand or other communication required or permitted to be given under
        this Agreement shall be in writing and shall be sent by prepaid registered
        mail
        addressed to the Party entitled to receive the same, or delivered to such
        Party,
        at the address for such Party specified above. The date of receipt of such
        notice, demand or other communication shall be the date of delivery thereof
        if
        delivered, or, if given by registered mail as aforesaid, shall be deemed
        conclusively to be the third calendar day after the same shall have been
        so
        mailed, except in the case of interruption of postal services for any reason
        whatsoever, in which case the date of receipt shall be the date on which
        the
        notice, demand or other communication is actually received by the addressee.
        Either Party may at any time and from time to time notify the other Party
        in
        writing of a change of address and the new address to which notice shall
        be
        given to it thereafter until further change.

      

      

      Article
        7

      GENERAL
        PROVISIONS

      

      7.1  Entire
        Agreement.
        This
        Agreement constitutes the entire agreement to date between the Parties hereto
        and supersedes every previous agreement, communication, expectation,
        negotiation, representation or understanding, whether oral or written, express
        or implied, statutory or otherwise, between the Parties hereto with respect
        to
        the subject matter of this Agreement.

      

      7.2  Enurement.
        This
        Agreement will enure to the benefit of and will be binding upon the Parties
        hereto, their respective heirs, executors, administrators and
        assigns.

      

      7.3  Schedules.
        The
        Schedules to this Agreement are hereby incorporated by reference into this
        Agreement in its entirety.

      

      7.4  Time
        of the Essence.
        Time
        will be of the essence of this Agreement.

      

      7.5  Representation
        and Costs.
        It is
        hereby acknowledged by each of the Parties hereto that, as between the Parties
        hereto, John D. Briner Law Corporation, acts solely for the Purchaser, and
        that
        the Vendor has been advised to obtain independent legal advice with respect
        to
        their respective reviews and execution of this Agreement. In addition, it
        is
        hereby further acknowledged and agreed by the Parties hereto that each Party
        to
        this Agreement will bear and pay its own costs, legal and otherwise, in
        connection with its respective preparation, review and execution of this
        Agreement and, in particular, that the costs involved in the preparation
        of this
        Agreement, and all documentation necessarily incidental thereto, shall be
        at the
        cost of the Purchaser.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
7.6  Applicable
        Law.
        The
        situs of this Agreement is Phoenix, Arizona, and for all purposes this Agreement
        will be governed exclusively by and construed and enforced in accordance
        with
        the laws and Courts prevailing in the State of Arizona.

      

      7.7  Further
        Assurances.
        The
        Parties hereto hereby, jointly and severally, covenant and agree to forthwith,
        upon request, execute and deliver, or cause to be executed and delivered,
        such
        further and other deeds, documents, assurances and instructions as may be
        required by the Parties hereto or their respective counsel in order to carry
        out
        the true nature and intent of this Agreement.

      

      7.8  Currency.
        Unless
        otherwise stipulated, all payments required to be made pursuant to the
        provisions of this Agreement and all money amount references contained herein
        are in lawful currency of the U.S.A.

      

      7.9  Severability
        and Construction.
        Each
        Article, section, paragraph, term and provision of this Agreement, and any
        portion thereof, shall be considered severable, and if, for any reason, any
        portion of this Agreement is determined to be invalid, contrary to or in
        conflict with any applicable present or future law, rule or regulation in
        a
        final unappealable ruling issued by any court, agency or tribunal with valid
        jurisdiction in a proceeding to any of the Parties hereto is a party, that
        ruling shall not impair the operation of, or have any other effect upon,
        such
        other portions of this Agreement as may remain otherwise intelligible (all
        of
        which shall remain binding on the Parties and continue to be given full force
        and agreement as of the date upon which the ruling becomes final).

      

      7.10  Captions.
        The
        captions, section numbers and Article numbers appearing in this Agreement
        are
        inserted for convenience of reference only and shall in no way define, limit,
        construe or describe the scope or intent of this Agreement nor in any way
        affect
        this Agreement.

      

      7.11  Counterparts.
        This
        Agreement may be signed by the Parties hereto in as many counterparts as
        may be
        necessary and, if required, by facsimile, each of which so signed being deemed
        to be an original, and such counterparts together shall constitute one and
        the
        same instrument and notwithstanding the date of execution will be deemed
        to bear
        the Execution Date as set forth on the front page of this Agreement.

      

      7.12  Consents
        and Waivers.
        No
        consent or waiver expressed or implied by either Party hereto in respect
        of any
        breach or default by any other Party in the performance by such other of
        its
        obligations hereunder shall:

      

      
        	 	
                (a)

              	
                be
                  valid unless it is in writing and stated to be a consent or waiver
                  pursuant to this section;

              

      

      

      
        	 	
                (b)

              	
                be
                  relied upon as a consent to or waiver of any other breach or default
                  of
                  the same or any other obligation;

              

      

      

      
        	 	
                (c)

              	
                constitute
                  a general waiver under this Agreement;
                  or

              

      

      

      
        	 	
                (d)

              	
                eliminate
                  or modify the need for a specific consent or waiver pursuant to
                  this
                  section in any other or subsequent
                  instance.

              

      

       

       

      
 

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF
        each of
        the Parties hereto has set their respective hands and seals in the presence
        of
        their duly authorized signatories as of the Execution Date determined
        hereinabove.

                                
)

                                                                                        
        )

      SAMI
        SALABI                                               
        )

      

      

      

      

      The
        COMMON SEAL of    )

      THE
        TRADESHOW MARKETING ) 

      COMPANY
        LTD     )

      the
        Purchaser
        herein,                                                )

      was
        hereunto affixed in the presence of:  )   (C/S)

                                                                                         
         )

                                                                                          
        )

                                                                                          
        )

      Authorized
        Signatory                                            
          )

      

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        “A”

      

      

      THIS
        IS SCHEDULE “A”
        to the
        Asset Purchase Agreement dated the ___ day of _____________, 2005.

      

      

      

      

      The
        Assets

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      Schedule
        “B”:

      Assignment
        of Lease for Paradise Valley Mall outlet

       

       

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      Schedule
        “C”:

      Assignment
        of Lease for Arrowhead Town Center outlet

       

       

       

      17Exhibit 4.1

    
      
        
          
            

          

        

         

         

        Exhibit
          4.1

         

        REGISTRATION
          RIGHTS AGREEMENT

        THIS REGISTRATION RIGHTS AGREEMENT (the
          “Agreement”) is dated as of June __, 2006, by and among CNL REAL ESTATE
          GROUP, INC., a Florida corporation, FIVE ARROWS REALTY SECURITIES II L.L.C.,
          a
          Delaware limited liability company (“Five Arrows”), JAMES M. SENEFF, JR.,
          ROBERT A. BOURNE, C. BRIAN STRICKLAND, THOMAS J. HUTCHISON III, JOHN A.
          GRISWOLD, BARRY A. N. BLOOM and MARCEL VERBAAS (collectively, the
“Stockholders”), and CNL HOTELS & RESORTS, INC., a Maryland
          corporation (the “Company”).

        RECITALS

        WHEREAS, pursuant to an Amended and Restated
          Agreement and Plan of Merger among the Company, CNL Hotels & Resorts
          Acquisition, LLC, a Florida limited liability company all of the membership
          interests of which are owned by the Company (“CHPAC”), CNL Hospitality
          Properties Acquisition Corp., a Florida corporation, CNL Hospitality Corp.,
          a
          Florida corporation (the “Advisor”), CNL Financial Group, Inc., a Florida
          corporation, and the Stockholders, entered into as of April 3, 2006 (the
          “Merger Agreement”), the Stockholders received 3,600,000 shares of Common
          Stock (defined below) (the “Common Shares”), in exchange for all of the
          outstanding shares of capital stock of the Advisor;

        WHEREAS, in connection with the Merger
          Agreement, the Stockholders, other than Five Arrows, have each entered
          into a
          Lock-Up Agreement (defined below) dated the date hereof with the Company
          with
          respect to the shares of Common Stock;

        WHEREAS, the Company desires to grant
          to the
          Stockholders certain registration rights with respect to the Common Shares,
          subject to the terms and conditions contained herein and in the Lock-Up
          Agreement; and

        WHEREAS, the Company and the Stockholders
          desire to set forth the rights and obligations of the parties with respect
          to
          such registration rights.

        NOW, THEREFORE, in consideration of the
          premises and the mutual covenants and agreements herein contained and other
          good
          and valuable consideration, the receipt and sufficiency of which are hereby
          acknowledged, the parties hereby agree as follows:

        AGREEMENT

        1.                 
Certain Definitions.  As used in this Agreement,
          the
          following terms shall have the following meanings:

        “Common Shares” shall
          have the meaning set forth in the first paragraph of the Recitals.

                   
“Common Stock” shall mean
          common shares, $0.01 par value per share, of
          the Company.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                   
“Company” shall mean
          CNL Hotels & Resorts, Inc., a <?xml:namespace
          prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Maryland
          corporation.

                   
“Demand Registration
          Request” shall have the meaning set forth in Section
          4.1.

                   
“Demand Registration
          Rights” shall mean the rights of the Holders to
          request registration of their Registrable Securities in accordance with
          the
          provisions of Section 4.

                   
“Demanding Holders” shall have the meaning set
          forth in Section
          4.1.

                   
“Exchange Act” shall mean the Securities
          Exchange Act of 1934, as
          amended.

                   
“Filing Notice” shall have the meaning set
          forth in Section 3.1.

                   
“Holders” shall mean
          the Stockholders or any Permitted Transferee of a
          Stockholder, and, with respect to a Permitted Transferee, only if such
          Stockholder has granted rights under this Agreement to such Permitted
          Transferee; and “Holder” shall mean any one of them.

                   
“Listing” means the
          actual listing of the Company’s Common Shares on The
          New York Stock Exchange, Inc., any other national securities exchange or
          U.S.
          inter-dealer quotation system.

                   
“Lock-Up Agreement” means the
          letter agreement, dated as of the date
          hereof, by and between each of the Stockholders (other than FARS) and the
          Company, substantially in the form attached hereto as Annex I, whereby
          each of
          the Stockholders (other than FARS) has agreed to certain restrictions on
          the
          sale and transfer of the shares of Common Stock.

                   
“Merger” shall mean
          the merger of the Advisor with and into CHPAC, with
          CHPAC as the surviving entity in the merger, upon the terms and subject
          to the
          conditions of the Merger Agreement and in accordance with the Florida Business
          Corporation Act and the Florida Limited Liability Company Act.

                   
“Permitted Transferee” shall have the meaning set
          forth in Section
          2.

                   
“Piggyback Registration
          Rights” shall mean the rights of the Holders, in
          accordance with the provisions of Section 3, to have their Registrable
          Securities included in any Registration Statement filed by the Company
          with
          respect to the sale of Common Shares or filed by any other shareholders
          of the
          Company.

                   
“Prospectus” means the
          prospectus included in any Registration Statement,
          as amended or supplemented by any prospectus supplement with respect to
          the
          terms of the offering of any of the Registrable Securities covered by such
          Registration Statement and by all other amendments and supplements to the
          prospectus, including post-effective amendments and all material incorporated
          by
          reference in such prospectus.

                   
“Registrable Securities” means all
          of the Common Shares and shall include
          all shares of Common Stock received by the Holders with respect to the
          Common
          Shares pursuant to a stock split, stock dividend or distribution or other
          recapitalization of the Company.  For the purposes of this Agreement, such
          shares of Common Stock shall cease to be Registrable Securities on the
          Rule 144
          Eligibility Date or, if earlier, on such date on which (a) a Registration
          Statement covering such shares has been declared effective and such shares
          have
          been disposed of pursuant to such effective Registration Statement, or
          (b) all
          of the Registrable Securities are eligible for sale (other than pursuant
          to Rule
          904 of the Securities Act), in the opinion of counsel to the Company, in
          a
          single transaction or multiple transactions exempt from the registration
          and
          prospectus delivery requirements of the Securities Act, so that all transfer
          restrictions with respect to such shares and all restrictive legends with
          respect to the certificates evidencing such shares are or may be removed
          upon
          the consummation of such sale.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                   
“Registration Period” shall mean
          the period commencing on the date the
          Merger is effective and ending at the earlier of (i) such time as no Holder
          owns
          any Registrable Securities or (ii) the Rule 144 Eligibility Date, provided
          that
          nothing herein shall affect the Stockholders’ obligations to comply with the
          terms of the Lock-Up Agreement.

                   
“Registration Statement” means any
          registration statement filed by the
          Company under the Securities Act that covers any of the Registrable Securities,
          including the Prospectus, any amendments and supplements to such registration
          statement, including post-effective amendments, and all exhibits thereto
          and all
          material incorporated by reference in such registration statement.

                   
“Rule 144 Eligibility
          Date” means the three-month anniversary of the date
          on which all Common Shares issued by the Company to the Stockholders in
          the
          Merger and the other Common Shares defined as Registrable Securities herein
          first become permitted to be sold under Rule 144 of the Securities Act
          by each
          Holder within the volume limitations of Rule 144(e) of the Securities Act
          or
          without limitation pursuant to Rule 144(k) of the Securities Act.

                   
“SEC” shall mean
          the Securities and Exchange Commission.

                   
“Securities Act” shall mean
          the Securities Act of 1933, as amended.

                   
“Selling Holder
          Information” shall mean information either furnished in
          writing by or on behalf of a Selling Holder for use in the Registration
          Statement or Prospectus.

                   
“Selling Holders” when used
          with respect to a Registration Statement
          shall mean those Holders whose Registrable Securities are included in a
          Registration Statement pursuant to an exercise by such Holders of their
          Piggyback Registration Rights or their Demand Registration Rights.

                   
“Stockholders” shall have
          the meaning set forth in the Preamble
          hereof.

                   
“Underwriter(s)” shall mean
          any one or more investment banking or
          brokerage firms to or through which the Holders or the Company, as the
          case may
          be, may offer and sell Registrable Securities pursuant to a transaction
          requiring the filing of a Registration Statement under the Securities Act,
          including one or more of such firms who shall manage such public offering
          through such Underwriters and that are referred to herein as “Managing
          Underwriter(s).”

        2.                 
Permitted Transferees.

                   
2.1       Subject to
          Section 12.6, any
          Stockholder may transfer any of the Registrable Securities held by such
          Stockholder (i) to the spouse, siblings or issue or spouses of siblings
          or issue
          of such Stockholder, (ii) to a trust or custodial account for the sole
          benefit
          of such Stockholder or the spouse, siblings or issue or spouses of siblings
          or
          issue of such Stockholder, (iii) to a partnership, limited liability company
          or
          other entity, the majority and controlling equity owners of which are a
          Stockholder or the spouse, siblings or issue or spouses of siblings or
          issue of
          such Stockholder or any trust referred to in clause (ii) above, (iv) to
          the
          personal representative of a Stockholder upon the death of such Stockholder
          for
          the purposes of administration of such Stockholder’s estate or upon the
          incompetency of such Stockholder for the purposes of the protection and
          management of such Stockholder’s assets, but such personal representative may
          not transfer such Registrable Securities other than as permitted under
          this
          Agreement, (v) to a charitable foundation (subject to receipt by the Stockholder
          of written approval from the Company, such approval not to be unreasonably
          withheld), (vi) to the Company, or (vii) to any other Stockholder or to
          any of
          the transferees referred to in clause (i), (ii) or (iii) above for the
          benefit
          of such other Stockholder.

                   
2.2       Five Arrows
          shall be permitted to assign
          or otherwise transfer any of the Registrable Securities held by it, and
          any of
          its rights hereunder with respect to such Registrable Securities, to one
          or more
          persons, provided that such assignments or transfers are made in accordance
          with
          all agreements to which both the Company and Five Arrows are parties and
          the
          applicable provisions of Section 12.6 of this Agreement.

                   
2.3       Any person
          to whom a transfer of
          Registrable Securities is made pursuant to, or otherwise in accordance
          with,
          Section 2.1 or Section 2.2 of this Agreement shall be a “Permitted
          Transferee.”

        3.                 
Piggyback Registration Rights.

        3.1.           
If the Company proposes to file
          a registration statement under the
          Securities Act with respect to any proposed public offering of Common Stock
          by
          the Company or by any holders of Common Stock (i) prior to the Registration
          Period, and the Company reasonably expects such registration statement
          to be
          declared effective during the Registration Period, or (ii) during the
          Registration Period, the Company shall, not later than 30 days prior to
          the
          proposed date of filing of such registration statement with the SEC under
          the
          Securities Act, give written notice (a “Filing Notice”) of the proposed
          filing to each Holder, which notice shall describe in reasonable detail
          the
          proposed registration and distribution (including those jurisdictions where
          registration under the securities or blue sky laws is intended).  During
          the Registration Period, each Holder may elect, by written notice to the
          Company
          (which notice shall specify the aggregate number of Registrable Securities
          proposed to be offered and sold by such Holder pursuant to such Registration
          Statement, the identity of the proposed seller thereof, and a general
          description of the manner in which such person intends to offer and sell
          such
          Registrable Securities) given within 15 days after receipt of the Filing
          Notice
          from the Company, to have any or all of the Registrable Securities owned
          by such
          Holder included in such Registration Statement, and the Company shall include
          such Registrable Securities in such Registration Statement.  If the
          Managing Underwriter(s) or Underwriters (in the case of an underwritten
          registration) or the Company (in the case of a non-underwritten registration
          covering a primary offering by the Company) should reasonably object to
          the
          exercise of the Piggyback Registration Rights with respect to such Registration
          Statement, then in the discretion of the Company, either:

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        (a)               
the Registrable Securities of
          the Selling Holders shall
          nevertheless be included in such Registration Statement subject to the
          condition
          that the Selling Holders may not offer or sell their Registrable Securities
          included therein for a period of up to 90 days after the initial effective
          date
          of such Registration Statement, whereupon the Company shall be obligated
          to file
          one or more post-effective amendments to such Registration Statement to
          permit
          the lawful offer and sale of such Registrable Securities for a reasonable
          period
          thereafter beginning at the end of such lock-up period and continuing for
          such
          period, not exceeding 120 days, as may be necessary for the Selling Holders,
          Underwriters and selling agents to dispose of such Registrable Securities;
          or

        (b)              
if the Managing Underwriter(s)
          (in the case of an underwritten
          registration) or the Company (in the case of a non-underwritten registration
          covering a primary offering by the Company) should reasonably determine
          that the
          inclusion of such Registrable Securities, notwithstanding the provisions
          of the
          preceding clause (a), would adversely affect the offering contemplated
          in such
          Registration Statement, and based on such determination recommends including
          in
          such Registration Statement fewer or none of the Registrable Securities
          of the
          Holders, then (x) if the Managing Underwriter(s) or the Company, as applicable,
          recommends the inclusion of fewer Registrable Securities, the number of
          Registrable Securities of the Holders included in such Registration Statement
          shall be reduced pro-rata among such Holders (based upon the number of
          Registrable Securities requested to be included in the registration), or
          (y) if
          the Managing Underwriter(s) or the Company, as applicable, recommends the
          inclusion of none of such Registrable Securities, none of the Registrable
          Securities of the Holders shall be included in such Registration
          Statement.

        3.2.           
Unless otherwise required by
          law, rule or regulation, if
          Registrable Securities owned by Holders who have made the election provided
          in
          Section 3.1 are included in such Registration Statement, the Company shall
          bear
          and pay all fees, costs, and expenses incident to such inclusion, including,
          without limitation, registration fees, exchange listing fees and expenses,
          legal
          fees of Company counsel (including blue sky counsel), printing costs and
          costs
          of any regular audits or accounting fees.  Each Selling Holder shall pay
          all underwriting discounts and commissions with respect to its Registrable
          Securities included in the Registration Statement, as well as fees or
          disbursements of counsel, accountants or other advisors for the Selling
          Holder
          and all internal overhead and other expenses of the Selling Holder or transfer
          taxes.

        3.3.           
The rights of the Holders under
          this Section 3 are solely piggyback
          in nature, and nothing in this Section 3 shall prevent the Company from
          reversing a decision to file a Registration Statement or from withdrawing
          any
          such Registration Statement before it has become effective.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        3.4.           
The Holders shall have the right,
          at any time during the
          Registration Period, to exercise their Piggyback Registration Rights pursuant
          to
          the provisions of this Section 3 on any number of occasions that the Company
          shall determine to file a registration statement under the Securities
          Act.

        3.5.           
The Piggyback Registration Rights
          granted pursuant to this Section
          3 shall not apply to (a) a registration relating solely to employee stock
          option, purchase or other employee plans, (b) a registration related solely
          to a
          dividend or distribution reinvestment plan or (c) a registration on Form
          S-4 or
          Form S-8 or any successor Forms thereto.

        3.6.           
In the event that there is a
          reduction in the number of Registrable
          Securities to be included in a Registration Statement to which Holders
          have
          exercised Piggyback Registration Rights, the Company shall so advise all
          Holders
          participating that the number of Registrable Securities that may be included
          in
          the registration shall be reduced pro rata among such Holders (based on
          the
          number of Registrable Securities requested to be included in the registration);
          provided, however, that the percentage of the reduction of such
          Registrable Securities shall be no greater than the percentage reduction
          of
          securities of other selling securityholders who also have exercised piggyback
          registration rights pursuant to agreements other than this Agreement, as
          such
          percentage reductions shall be determined in the good faith judgment of
          the
          Company, which determination shall be based on the advice of the Managing
          Underwriter of the offering to the extent the offering is an underwritten
          offering.  If Holders have exercised Piggyback Registration Rights with
          respect to a Registration Statement which is being filed as a result of
          the
          exercise of demand registration rights by other securityholders, the
          securityholders exercising their demand registration rights shall have
          the
          right, in the event of any reduction of securities covered by such Registration
          Statement, to have all of their registrable securities included in such
          Registration Statement before inclusion of any Registrable Securities of
          Holders
          exercising their Piggyback Registration Rights.  Notwithstanding the
          foregoing, prior to any reduction of the number of Registrable Securities
          of
          Holders exercising Piggyback Registration Rights hereunder, the Company
          shall
          first exclude securities held by persons not having any contractual registration
          rights.

        3.7.           
The underwriter in any registration
          referred to in this Section 3
          shall be chosen by the Company in its sole discretion, except in the case
          of any
          registration made at the request of a third party holding demand registration
          rights, in which case the underwriter will be selected as provided in any
          agreement relating to such demand registration rights.

        4.                 
Demand Registration Rights.

        4.1.           
In addition to, and not in lieu
          of, the Piggyback Registration
          Rights set forth under Section 3, at any time after the Effective Time
          (as
          defined in the Merger Agreement) and during the Registration Period, any
          Holder
          may deliver to the Company a written request (a “Demand Registration
          Request”) that the Company register any or all of the Registrable Securities
          owned by such Demanding Holders (as hereinafter defined) (provided that
          the
          aggregate offering price of all such Registrable Securities actually included
          in
          the Demand Registration equals $10.0 million or more), and any other Holders
          that may elect to be included pursuant to Section 4.2, under the Securities
          Act
          and the state securities or blue sky laws of any jurisdiction designated
          by such
          Selling Holders (subject to Section 9), subject to the provisions of this
          Section 4.  The requisite Holders making such demand are sometimes referred
          to herein as the “Demanding Holders.”  The Company shall, as soon as
          practicable following the Demand Registration Request, prepare and file
          a
          Registration Statement (on the then appropriate form or, if more than one
          form
          is available, on the appropriate form selected by the Company) with the
          SEC
          under the Securities Act, covering such number of the Registrable Securities
          as
          the Selling Holders request to be included in such Registration Statement
          and to
          take all necessary steps to have such Registrable Securities qualified
          for sale
          under state securities or blue sky laws.  The Company shall use its
          commercially reasonable best efforts to file such Registration Statement
          no
          later than 90 days following the Demand Registration Request.  Further, the
          Company shall use its commercially reasonable efforts to have such Registration
          Statement declared effective (within the meaning of the Securities Act)
          by the
          SEC as soon as practicable thereafter and shall take all necessary action
          (including, if required, the filing of any supplements or post-effective
          amendments to such Registration Statement) to keep such Registration Statement
          effective to permit the lawful sale of such Registrable Securities included
          thereunder for the period set forth in Section 6, subject, however, to the
          further terms and conditions hereof.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        4.2.           
No later than 10 days after
          the receipt of the Demand Registration
          Request, the Company shall notify all Holders who have not joined in such
          request of the proposed filing, and such Holders may, if they desire to
          sell any
          Registrable Securities owned by them, by notice in writing to the Company
          given
          within 15 days after receipt of such notice from the Company, elect to
          have all
          or any portion of their Registrable Securities included in the Registration
          Statement.

        4.3.           
The Holders, in the aggregate,
          may only exercise the Demand
          Registration Rights granted pursuant to this Section 4 two times.  The
          Company shall only be required to file one Registration Statement (as
          distinguished from supplements or pre-effective or post-effective amendments
          thereto) in response to the exercise by the Demanding Holders of their
          Demand
          Registration Rights pursuant to the provisions of this Section 4.

        4.4.           
In the event that preparation
          of a Registration Statement is
          commenced by the Company in response to the exercise by the Demanding Holders
          of
          the Demand Registration Right, but such Registration Statement is not filed
          with
          the SEC, either at the request of the Company or at the request of the
          Demanding
          Holders, for any reason, the Demanding Holders shall not be deemed to have
          exercised a Demand Registration Right pursuant to this Section 4, except
          that,
          if such Registration Statement is not filed after the commencement of
          preparation thereof at the request of the Demanding Holders, then the Selling
          Holders whose Registrable Securities were proposed to be included therein
          shall
          be required to bear the fees, expenses and costs incurred in connection
          with the
          preparation thereof.

        4.5.           
In the event that any Registration
          Statement filed by the Company
          with the SEC pursuant to the provisions of this Section 4 is withdrawn
          prior to
          the completion of the sale or other disposition of the Registrable Securities
          included thereunder, then the following provisions, whichever are applicable,
          shall govern:

        (a)               
If such withdrawal is effected
          at the request of the Company for
          any reason other than the failure of all the Selling Holders to comply
          with
          their obligations hereunder with respect to such registration, then the
          filing
          thereof by the Company shall be excluded in determining whether the Holders
          have
          exercised their Demand Registration Rights hereunder with respect to the
          filing
          of such Registration Statement.

        (b)              
If such withdrawal is effected
          at the request of the Selling
          Holders, then the filing thereof by the Company shall be deemed an exercise
          of a
          Demand Registration Right with respect to the filing of such Registration
          Statement.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        4.6.           
The Company shall bear and pay
          all fees, costs and expenses
          incident to such Registration Statement and incident to keeping it effective
          and
          in compliance with all federal and state securities laws, rules, and regulations
          for the period set forth in Section 6 (including, without limitation,
          registration fees, blue sky qualification fees (subject to Section 9),
          exchange
          listing fees and expenses, legal fees of Company counsel (including blue
          sky
          counsel), printing costs, costs of any regular audits and accounting
          fees).  Each Selling Holder shall pay fees and disbursements of counsel,
          accountants and other advisors for the Selling Holder and any underwriting
          discounts and commissions with respect to its Registrable Securities and
          any
          internal, overhead and other expenses of the Selling Holders and transfer
          taxes.

        4.7.           
Whenever a decision or election
          is required to be made hereunder by
          the Demanding Holders or the Selling Holders, such decision or election
          shall be
          made by a vote of holders of a majority of the Registrable Securities owned
          by
          such Demanding Holders or Selling Holders, as the case may be.

        4.8.           
(a)        If the Managing
          Underwriter(s) in the case of an underwritten registration should reasonably
          determine that the inclusion of all Registrable Securities requested to
          be
          included in any Registration Statement would materially and adversely affect
          the
          offering contemplated in a Registration Statement, and based on such
          determination recommends inclusion in such Registration Statement of fewer
          or
          none of the Registrable Securities of the Holders, then (x) if the Managing
          Underwriter(s) recommends the inclusion of fewer Registrable Securities,
          the
          number of Registrable Securities of the Holders included in such Registration
          Statement shall be reduced pro-rata among such Holders (based upon the
          number of
          Registrable Securities requested to be included in the registration), or
          (y) if
          the Managing Underwriter(s) recommends the inclusion of none of such Registrable
          Securities, none of the Registrable Securities of the Holders shall be
          included
          in such Registration Statement (and the request for registration shall
          not count
          for purposes of Section 4.3).

        (b)              
In the event that there is a
          reduction in the number of Registrable
          Securities to be included in a Registration Statement to which Holders
          have
          exercised Demand Registration Rights, the Company shall so advise all Holders
          participating that the number of Registrable Securities that may be included
          in
          the registration shall be reduced pro rata among such Holders (based on
          the
          number of Registrable Securities requested to be included in the registration);
          provided, however, that the percentage of the reduction of such
          Registrable Securities shall be no greater than the percentage reduction
          of
          securities of other selling securityholders who also have exercised demand
          registration rights pursuant to agreements other than this Agreement, as
          such
          percentage reductions shall be determined in the good faith judgment of
          the
          Company based on the advice of the Managing Underwriter of the offering
          in the
          case of any underwritten offering.

        (c)               
In the event that there is a
          limitation on the number of securities
          which may be covered by such Registration Statement, the Selling Holders
          shall
          have the right, with respect to any such Registration Statement filed as
          a
          result of their Demand Registration Request, to include their Registrable
          Securities prior to the inclusion of the Company (in the case of any inclusion
          of shares of Common Stock for sale for its own account) and any other
          securityholder exercising piggyback registration rights.

        4.9       The
          Company shall have the right, with respect to any Registration Statement
          to be
          filed as a result of a Demand Registration Request, to determine whether
          such
          registration shall be underwritten or not and to select, subject to the
          consent
          of the Selling Holders (which consent shall not be unreasonably withheld),
          any
          such underwriter.

        5.                 
Information to be Furnished.  In the event any of
          the
          Registrable Securities are to be included in a Registration Statement under
          Sections 3 or 4, the Selling Holders and the Company shall furnish the
          following
          information and documents:

        5.1.           
The Selling Holders shall furnish
          to the Company all information
          required by the Securities Act to be furnished by sellers of securities
          for
          inclusion in the Registration Statement, together with all such other
          information which the Selling Holders have or can reasonably obtain and
          which
          may reasonably be required by the Company in order to have such Registration
          Statement become effective and such Registrable Securities qualified for
          sale
          under applicable state securities laws.

        5.2.           
The Company, before filing a
          Registration Statement, amendment or
          supplement thereto (including all exhibits), will furnish copies of such
          documents to legal counsel selected by the Selling Holders.  In addition,
          the Company shall make available for inspection by any Selling Holder or
          by any
          Underwriter, attorney or other agent of any Selling Holder or Underwriter
          all
          information reasonably requested by such persons.  All non-publicly
          available information provided to any Selling Holder, Underwriter or any
          attorney or agent of any Selling Holder or Underwriter shall be kept strictly
          confidential by such Selling Holder, Underwriter or attorney or agent of
          such
          Selling Holder or Underwriter so long as such information remains
          nonpublic.

        5.3.           
The Company shall promptly notify
          each Selling Holder and each
          Selling Holder shall promptly notify the Company, upon discovery by the
          Company
          or such Selling Holder, as the case may be, of the occurrence of any event
          which
          renders any Prospectus then being circulated among prospective purchasers
          misleading because such Prospectus contains an untrue statement of a material
          fact or omits to state a material fact necessary to make the statements
          made, in
          light of the circumstances in which they were made, not misleading, and
          the
          Company will amend or supplement the Prospectus so that it does not contain
          any
          material misstatements or omissions and deliver the number of copies of
          such
          amendments or supplements to each Selling Holder as each Selling Holder
          may
          reasonably request. Until such time as such Prospectus is so amended or
          supplemented, each Selling Holder shall cease use thereof.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        6.                 
Registration to Be Kept
          Effective.  In connection with
          any registration of Registrable Securities pursuant to this Agreement,
          the
          Company shall, at its expense, keep effective and maintain such registration
          and
          any related qualification of Registrable Securities under state securities
          laws
          for such period not exceeding 120 days or such shorter period as may be
          necessary for the Selling Holders, Underwriters and selling agents to dispose
          of
          such Registrable Securities, from time to time to amend or supplement the
          Prospectus used in connection therewith to the extent necessary to comply
          with
          applicable laws, and to furnish to such Selling Holders such number of
          copies of
          the Registration Statement, the Prospectus constituting a part thereof,
          and any
          amendment or supplement thereto as such Selling Holders may reasonably
          request
          in order to facilitate the disposition of the registered Registrable
          Securities.

        7.                 
Conditions to Company’s Obligations.  The obligations
          of the Company to cause the Registrable Securities owned by the Holders
          to be
          registered under the Securities Act are subject to each of the following
          limitations, conditions and qualifications:

        (a)               
The Company shall not be required
          to fulfill any registration
          obligations under this Agreement, including any obligation with respect
          to the
          Stockholders’ Piggyback Registration Rights or the Demand Registration Rights,
          until one hundred eighty (180) days after such time as there has been a
          Listing.

        (b)              
The Company shall be entitled
          to postpone for a reasonable period
          of time not to exceed four (4) months the filing of any Registration Statement
          otherwise required to be prepared and filed by it pursuant to Section 4,
          if, in
          the good faith opinion of the Company’s Board of Directors, the Company
          determines that such registration and offering would materially interfere
          with
          any proposal or plan to engage in any financing, acquisition, corporate
          reorganization or other material transaction involving the Company or any
          of its
          subsidiaries, and the Company promptly gives the Holders written notice
          including a general explanation of such determination; provided that the
          Company
          shall not delay such action pursuant to this sentence more that once in
          any
          12-month period.  If the Company shall so postpone the filing of a
          Registration Statement, the Selling Holders shall have the right to withdraw
          the
          Demand Registration Request by giving written notice to the Company within
          30
          days after receipt of the notice of postponement (and, in the event of
          such
          withdrawal, such Demand Registration Request shall not be counted for purposes
          of the Demand Registration Requests to which the Holders are entitled pursuant
          to Section 4.3).

        (c)               
The Company shall not be required
          to file any Registration
          Statement pursuant to this Agreement in connection with a Demand Registration
          Request made less than 90 days after the effective date of any Registration
          Statement filed by the Company (other than a registration filed on Form
          S-8 or
          any successor form thereto.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        (d)              
The Company may require, as
          a condition to fulfilling its
          obligations to register the Registrable Securities under Sections 3 or
          4, that
          the Selling Holders execute reasonable and customary indemnification agreements
          for the benefit of the Underwriters of the registration; provided,
however, a Selling Holder shall not be required to indemnify the
          Underwriters except with respect to Selling Holder information.

        (e)               
The Company shall not be required
          to fulfill any registration
          obligations under this Agreement, if the Company provides the Holders with
          an
          opinion of counsel reasonably acceptable to such Holders stating that the
          Holders are free to sell in the manner proposed by them all of the Registrable
          Securities that they desired to register without registering such Registrable
          Securities or such Registrable Securities can be sold under Rule 144 of
          the
          Securities Act, or otherwise without registration in the open market in
          compliance with the Securities Act.

        (f)                
The Company shall not be obligated
          to file any Registration
          Statement pursuant to this Agreement in connection with a Demand Registration
          Request at any time if the Company would be required to include financial
          statements audited as of any date other than the end of its fiscal year,
          unless
          the Selling Holder(s) agree to pay the cost of any such additional
          audit.

        8.                 
Exchange Listing.  In the event any Registrable
          Securities are included in a Registration Statement under Sections 3 or
          4, the
          Company will exercise commercially reasonable efforts to cause all such
          Registrable Securities to be listed on the New York Stock Exchange or listed
          on
          any other exchange(s) on which the shares of Common Stock are then listed
          or
          quoted in any U.S. inter-dealer quotation system in which the shares of
          Common
          Stock are then quoted.

        9.                 
Registration Under State
          Securities Laws.  The Company
          shall use its commercially reasonable efforts to register or qualify any
          Registrable Securities included in a Registration Statement pursuant to
          Sections
          3 or 4 under state “blue sky” or similar securities laws in such jurisdictions
          as the Selling Holders reasonably request and to take such other action
          as may
          be reasonably necessary to enable the Selling Holders to sell their shares
          of
          Registrable Securities in the jurisdictions where such registration or
          qualification was made, provided that the Company shall not be required
          to
          qualify to do business in any jurisdiction in which it is not so qualified
          or to
          execute a general consent to service of process in any jurisdiction in
          which it
          has not executed such a consent.

        10.             
Indemnification.

        10.1.        The Company shall indemnify
          and hold each Selling Holder, its partners,
          officers, directors and agents (including sales agents and Underwriters)
          and
          each person, if any, who controls (within the meaning of the Securities
          Act or
          the Exchange Act) the Selling Holder or any of the foregoing, harmless
          to the
          maximum extent permitted by law, from and against any loss, claim, liability,
          damage or expense (including reasonably documented attorneys’ fees and
          disbursements of only one firm of counsel selected by the Selling Holders)
          resulting from a claim that any Registration Statement, Prospectus or amendment
          thereof or supplement thereto, which includes Registrable Securities to
          be sold
          by such Selling Holder, contains an untrue statement of a material fact
          or omits
          to state a material fact necessary in order to make the statements made,
          in
          light of the circumstances under which they were made, not misleading,
          unless
          such claim is based upon Selling Holder Information or resulting from the
          Selling Holder’s failure to deliver a current Prospectus as required under the
          Securities Act; and each such Selling Holder will indemnify and hold harmless
          the Company, its directors, officers and agents and each person, if any,
          who
          controls (within the meaning of the Securities Act or the Exchange Act)
          the
          Company against any loss, claim, liability, damage or expense (including
          reasonably documented attorneys’ fees and disbursements) resulting from any such
          claim relating to Selling Holder Information.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        10.2.        Promptly after receipt by an
          indemnified party under this Section 10 of
          notice of the commencement of any action, such indemnified party shall,
          if a
          claim in respect thereof is to be made against the indemnifying party under
          this
          Section 10, notify the indemnifying party in writing of the commencement
          thereof; but the omission so to notify the indemnifying party shall not
          relieve
          it from any liability which it may have to any indemnified party under
          this
          Section 10 or otherwise to the extent such omission did not actually and
          materially prejudice the indemnifying party.  In case any such action is
          brought against any indemnified party, and it notifies the indemnifying
          party of
          the commencement thereof, the indemnifying party will be entitled to participate
          therein, and to the extent that it may elect by written notice delivered
          to the
          indemnified party promptly after receiving the aforesaid notice from such
          indemnified party, to assume the defense thereof, with counsel reasonably
          satisfactory to such indemnified party; provided, however, if the
          defendants in any such action include both the indemnified party and the
          indemnifying party and the indemnified party shall have reasonably concluded
          that there exists a conflict of interest between the indemnifying party
          and any
          indemnified party or that there may be legal defenses available to it and/or
          other indemnified parties which are different from or additional to, and
          inconsistent or in conflict with, those available to the indemnifying party,
          the
          indemnified party or parties shall have the right to select separate counsel
          to
          assert such legal defenses and to otherwise participate in the defense
          of such
          action on behalf of such indemnified party or parties.  Upon receipt of
          notice from the indemnifying party to such indemnified party of its election
          so
          to assume the defense of such action and approval by the indemnified party
          of
          counsel, the indemnifying party will not be liable to such indemnified
          party
          under this Section 10 for any legal or other expenses subsequently incurred
          by
          such indemnified party in connection with the defense thereof unless (i)
          the
          indemnified party shall have employed separate counsel in accordance with
          the
          proviso to the preceding sentence, (ii) the indemnifying party shall not
          have
          employed counsel reasonably satisfactory to the indemnified party to represent
          the indemnified party within a reasonable time after notice of commencement
          of
          action, or (iii) the indemnifying party has authorized the employment of
          counsel
          for the indemnified party at the expense of the indemnifying party; and
          except
          that, if clause (i) or (iii) is applicable, such liability shall be only
          in
          respect of the counsel referred to in such clause (i) or (iii).  No
          settlement of an action against any party under this Section 10 shall bind
          the
          other party unless such other party agrees in writing to the terms of such
          settlement (which agreement will not be unreasonably withheld).

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        10.3.        The obligation of the indemnifying
          party to indemnify the indemnified
          party under this Section 10 shall, in each case, be in addition to any
          liability
          which the indemnifying party may otherwise have hereunder or otherwise
          at law or
          in equity.

        10.4.        If the indemnification provided
          for in this Section 10 from the
          indemnifying party is applicable in accordance with its terms but for any
          reasons is held to be unavailable to an indemnified party hereunder in
          respect
          of any losses, claims, damages, liabilities or expenses referred to therein,
          then the indemnifying party, in lieu of indemnifying such indemnified party,
          shall contribute to the amount paid or payable by such indemnified party
          as a
          result of such losses, claims, damages, liabilities or expenses in such
          proportion as is appropriate to reflect the relative faults of the indemnifying
          party and indemnified party in connection with the actions which resulted
          in
          such losses, claims, damages, liabilities or expenses, as well as any other
          relevant equitable considerations.  The relative faults of such
          indemnifying party and indemnified party shall be determined by reference
          to,
          among other things, whether any action in question, including any untrue
          or
          alleged untrue statement of a material fact or omission or alleged omission
          to
          state a material fact, has been made by, or relates to information supplied
          by,
          such indemnifying party or indemnified party, and the parties’ relative intent,
          knowledge, access to information and opportunity to correct or prevent
          such
          action.  The amount paid or payable by a party as a result of the losses,
          claims, damages, liabilities and expenses referred to above shall be deemed
          to
          include, subject to the limitations set forth in Sections 10.1 and 10.2,
          any
          legal or other fees or expenses reasonably incurred by such party in connection
          with any investigation or proceeding

        The
          parties hereto agree that it would not be just and equitable if contribution
          pursuant to this Section 10.4 were determined by pro rata allocation or
          by any
          other method of allocation which does not take account of the equitable
          considerations referred to in the immediately preceding paragraph.  No
          person guilty of fraudulent misrepresentation (within the meaning of Section
          11(f) of the Securities Act) shall be entitled to contribution from any
          person.

        11.             
          Rule 144.  The Company covenants that it shall use its reasonable
          best efforts to file any reports required to be filed by it under the Exchange
          Act and the rules and regulations adopted by the SEC thereunder, and that
          it
          shall take such further action as any Holder of Registrable Securities
          may
          reasonably request, all to the extent required from time to time to enable
          such
          Holder to sell the Registrable Securities without registration under the
          Securities Act within the limitation of the exemptions provided by (a)
          Rule 144
          under the Securities Act, as such rule may be amended from time to time,
          or (b)
          any similar rule or regulation adopted by the SEC.  The Company shall, upon
          the request of any holder of Registrable Securities, deliver to such Holder
          a
          written statement as to whether it has complied with such
          requirements.

        12.             
Miscellaneous.

        12.1.        Amendments and Waivers.  Subject to Section 12.2,
          this
          Agreement may be modified or amended only by a writing signed by the Company
          and
          each of the Stockholders, and, to the extent a permitted transfer has occurred
          pursuant to Section 2, its Permitted Transferee.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        12.2.        Third Party Beneficiaries.  Subject to the next
          sentence of
          this Section 12.2, there shall be no third party beneficiaries of the rights
          and
          benefits of this Agreement, which rights and benefits shall accrue only
          to the
          benefit of the parties hereto.  Any Permitted Transferee shall be a third
          party beneficiary or intended beneficiary to the agreement made hereunder
          by a
          Stockholder so long as such transfer of rights under this Agreement to
          the
          Permitted Transferee is made in compliance with Section 12.6.

        12.3.        No Waiver.  No failure to exercise
          and no delay in
          exercising, on the Company’s or the Holders’ part, of any right, power or
          privilege hereunder shall operate as a waiver thereof; nor shall any single
          or
          partial exercise of any right, power or privilege hereunder preclude any
          other
          or further exercise thereof or the exercise of any other right, power or
          privilege.  The rights and remedies herein provided are cumulative and not
          exclusive of any rights or remedies provided by law.

        12.4.        Survival of Agreements.  All agreements, representations
          and
          warranties contained herein or made in writing by or on behalf of the Company
          in
          connection with the transactions contemplated hereby shall survive the
          execution
          and delivery of this Agreement.

        12.5.        Limitation of Registration
          Rights.  Nothing contained in this
          Agreement shall create any obligation on behalf of the Company to register
          under
          the Securities Act any securities which are not shares of Common
          Stock.

        12.6.        Binding Effect and Benefits.  This Agreement shall
          be binding
          upon and shall inure to the benefit of the Company and the Holders and
          their
          respective successors and permitted assigns.  Without limiting the
          generality of the foregoing, each Holder’s registration rights granted hereunder
          shall be transferable to and exercised by any Permitted Transferee of
          Registrable Securities; provided, however, that no Holder may
          transfer or assign this Agreement or any of its rights hereunder unless
          (a) such
          transfer or assignment is effected in accordance with applicable securities
          laws, (b) such transferee or assignee (other than the Company) agrees in
          writing
          to be bound by this Agreement and the Lock-Up Agreement (other than, with
          respect to the Lock-Up Agreement, Permitted Transferees of Five Arrows),
          and (c)
          the Company is given prior written notice by such Holder of such transfer
          or
          assignment, stating the name and address of the transferee or assignee,
          and
          identifying the Registrable Securities with respect to which such rights
          are
          being transferred or assigned.  

        12.7.        Entire Agreement.  This Agreement, together
          with the Lock-Up
          Agreement, constitute the full and entire understanding and agreement between
          the parties with regard to the subjects hereof and thereof and supersedes
          any
          prior understandings, agreements or representations by or among the parties,
          written or oral, to the extent they relate in any way to such subject
          matter.

        12.8.        Separability of Provisions.  In case any provision
          of this
          Agreement shall be invalid, illegal or unenforceable, the validity, legality
          and
          enforceability of the remaining provisions shall not in any way be affected
          or
          impaired thereby.

        12.9.        Notices.  All notices, requests,
          consents and other
          communications hereunder shall be in writing and shall be by telecopy,
          facsimile
          transmission (confirmed by U.S.  mail), telegraph, hand delivery or mailed
          by certified or registered mail postage prepaid, returned receipt requested,
          to
          the addresses set forth below or to such other address as any party may
          advise
          the other parties in a written notice given in accordance with this
          Section.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        If to the
          Company:        CNL Hotels & Resorts,
          Inc.

        CNL Center II at City Commons

        420 South Orange Avenue

        Orlando, FL  32801

        Attn.:  Thomas J. Hutchison
          III

         

        With
          a
          copy (which shall not constitute notice pursuant to this Section 12.9)
          to:

        Greenberg Traurig, LLP

        The MetLifeBuilding

        200 Park Avenue

        New York, NY  10166

        Attention:  Judith D. Fryer,
          Esq.

        Facsimile:  (212) 805-9330

         

        Hogan & Hartson
          L.L.P.

        555 Thirteenth Street,
          N.
          W.

        Washington, D. C. 
20004

        Attn:  J. Warren
          Gorrell, Jr., Esq.

        Facsimile:  (202)
          637-5910

         

        If to the
          Holders:           To the
          respective addresses set forth in the records of the Company

        Any notice, request
          or
          other communication so addressed and so mailed shall be deemed to have
          been
          given when duly delivered or sent.

        12.10.    Governing Law;
          Construction.  This Agreement shall be governed by and construed in
          accordance with the laws of the State of New York, without giving effect
          to the
          conflict of laws provisions thereof.  The descriptive headings of the
          several sections and subsections hereof are for convenience only and shall
          not
          control or affect the meaning of construction of any of the provisions
          hereof.

        12.11.    Counterparts.  This Agreement may be
          executed in any number
          of counterparts, each of which shall be deemed to be an original, but all
          of
          which together shall constitute a single original instrument.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN WITNESS WHEREOF,
          each
          of the parties hereto has duly executed and delivered this Registration
          Rights
          Agreement as of the day and year first above written.

        THE COMPANY:

        CNL HOTELS & RESORTS, INC.

        By: Greerson G.
          McMullen         
Title:
Senior Vice President, General Counsel and Corporate Secretary

        STOCKHOLDERS:

         

        CNL REAL ESTATE GROUP, INC.

         

        By: James M. Seneff,
          Jr.                                            

Title: Chief Executive
          Officer                                      

         

        FIVE ARROWS REALTY SECURITIES II
          L.L.C.

         

        By: Matthew W.
          Kaplan                                            

Title:
Manager                                                            

         

         

        James M. Seneff,
          Jr.                                                      

JAMES M. SENEFF, JR.

         

        Robert A.
          Bourne                                                          
ROBERT
          A. BOURNE

         

        C. Brian
          Stickland                                                        

C. BRIAN STRICKLAND

         

        Thomas J. Hutchison
          III                                                

THOMAS J. HUTCHISON III

         

        John A.
          Griswold                                                         

JOHN A. GRISWOLD

         

        Barry A. N.
          Bloom                                                       

BARRY A. N. BLOOM

         

        Marcel
          Verbaas                                                            

MARCEL VERBAAS

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      ANNEX I

      FORM
        OF LOCKUP LETTER

      CNL HOTELS & RESORTS, INC.

      Common Stock

      [Name
        of
        Stockholder]
_____________________
_____________________
_____________________
_____________________

      ___________,
        2006

      Dear
                                      
:

      This Lock‐Up Letter Agreement is being
        delivered to you pursuant to that certain Registration Rights Agreement (the
        “Registration Rights Agreement”) by and among CNL Real Estate Group,
        Inc., a Florida corporation, Five Arrows Realty Securities II L.L.C., a Delaware
        limited liability company, and James M. Seneff, Jr., Robert A. Bourne, C.
        Brian
        Strickland, Thomas J. Hutchison III, John A. Griswold, Barry A. N. Bloom
        and
        Marcel Verbaas (collectively, the “Stockholders”), and CNL Hotels &
Resorts, Inc., a Maryland corporation (the “Company”).  Capitalized
        terms used in this letter but not defined have the meanings assigned to such
        terms in the Registration Rights Agreement.

      1.                 
Lock-Up and Transfer Limitation.  The undersigned
        Stockholder shall not directly or indirectly Transfer (as defined in paragraph
        3
        of this letter agreement), contract or agree to Transfer or publicly announce
        any intention to Transfer any shares of Common Stock or any securities
        convertible into or exercisable or exchangeable for shares of Common Stock
        or
        warrants, options or other rights to purchase or otherwise acquire shares
        of
        Common Stock it may now or later own of record or beneficially (collectively,
        “Stockholder Shares”) at any time prior to the six (6) month anniversary
        of the date of the Registration Rights Agreement.  In addition, the
        undersigned Stockholder shall not directly or indirectly Transfer, contract
        or
        agree to Transfer or publicly announce any intention to Transfer any Stockholder
        Shares in excess of 50% of the total number of its Common Shares received
        under
        the Merger Agreement between such six (6) month anniversary and the one (1)
        year
        anniversary of the date of the Registration Rights Agreement.  The lock-up
        and transfer limitations described in this paragraph 1 are in addition to
        any
        other restrictions on transfer of the Stockholder Shares that may apply under
        the Registration Rights Agreement, the Pledge and Security Agreement entered
        into as of _________, 2006 between certain Stockholders, the Company and
        CNL
        Hotels & Resorts Acquisition, LLC (the “Pledge Agreement”), or this
        Lock-Up Letter Agreement.

      2.                 
General Holdback.  In addition to and not
        in lieu of
        the restrictions on Transfer of the Stockholder Shares set forth in paragraph
        1
        above, the undersigned Stockholder shall not, for a period of 14 days prior
        to
        and 90 days after the date of any final prospectus relating to an effective
        registration statement filed by the Company with the SEC (or such longer
        periods
        as the applicable underwriter or the Company may reasonably request)
        (collectively, the “Holdback Period”), directly or indirectly Transfer,
        contract or agree to Transfer or publicly announce any intention to Transfer
        any
        Stockholder Shares, any securities convertible into or exercisable or
        exchangeable for shares of Common Stock and any warrants or other rights
        to
        purchase or otherwise acquire shares of Common Stock.  The foregoing
        sentence shall not apply to (a) the registration of or sale of any Common
        Stock pursuant to a Registration Statement filed in accordance with the
        Registration Rights Agreement, (b) bona fide gifts of such securities,
provided that the recipient thereof agrees in writing with the
        underwriters or the Company, as applicable, to be bound by the terms of this
        letter agreement or (c) dispositions to any trust for the direct or
        indirect benefit of the undersigned Stockholder and/or the immediate family
        of
        the undersigned Stockholder, provided that the trustee agrees in writing
        with the Company to be bound by the terms of this letter agreement and otherwise
        if a permitted transferee of the subject securities.  If (i) the Company
        issues an earnings release or material news, or a material event relating
        to the
        Company occurs, during the last 17 days of the Holdback Period, or (ii) prior
        to
        the expiration of the Holdback Period, the Company announces that it will
        release earnings results during the 16-day period beginning on the last day
        of
        the Holdback Period, the restrictions imposed by this paragraph 2 shall continue
        to apply until the expiration of the 18-day period beginning on the issuance
        of
        the earnings release or the occurrence of the material news or material event;
        provided, however, that this sentence shall not apply if any
        research published or distributed by any underwriter of the Company would
        be
        compliant under Rule 139 of the Securities Act and the Company’s securities are
        actively traded as defined in Rule 101(c)(1) of Regulation M of the Exchange
        Act.  The Stockholders hereby authorize the Company during the term of this
        letter agreement to cause any transfer agent for the Stockholder Shares to
        decline to transfer, and to note stop transfer restrictions on the stock
        register and other records relating to, the Stockholder Shares for which
        the
        Stockholders are the record holders and, in the case of the Stockholder Shares
        for which the Stockholders are the beneficial but not the record holder,
        agrees
        during the term of this letter agreement to cause the record holder to cause
        the
        relevant transfer agent to decline to transfer, and to note stop transfer
        restrictions on the stock register and other records relating to, such
        Stockholder Shares, in each case if the Company reasonably determines in
        good
        faith that such Transfer would, if made, be inconsistent with paragraph 1
        of
        this letter agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.                 
Definition of Transfer.  For all purposes of this
        letter agreement, “Transfer” shall mean (i) any sale, offer to sell,
        transfer, assignment, exchange, redemption, hypothecation, grant of an option
        to
        purchase or acquire and any other disposition of any securities; (ii)
        establishing or increasing a put equivalent position or liquidating or
        decreasing a call equivalent position within the meaning of Section 16 of
        the Securities Exchange Act of 1934, as amended, and the rules and regulations
        promulgated thereunder, with respect to any securities; and (iii)  entering
        into any swap, derivative or other transaction or arrangement that transfers
        to
        another, in whole or in part, any economic consequences of ownership of any
        securities, whether any such transaction is to be settled by delivery of
        such
        securities or other securities, in cash or otherwise; provided,
however, that the term “Transfer” shall not mean any (a) Transfer
        to a Permitted Transferee in accordance with the terms of the Registration
        Rights Agreement or (b) bona fide pledge, assignment or grant of a security
        interest in any of the Stockholder Shares or any other bona fide pledge,
        assignment or grant of a security interest in any of the Stockholder
        Shares.

      4.                 
Authority.  The Stockholders hereby
        severally, but not
        jointly, represent and warrant that they have full power and authority to
        enter
        into this Agreement and will execute any additional documents necessary in
        connection with enforcement hereof.  

      5.                 
Term.   This letter agreement
        shall automatically
        expire and be of no further force and effect one (1) year after the date
        of the
        Registration Rights Agreement.

      6.                 
Counterparts.  This letter agreement
        may be executed in
        any number of counterparts, each of which shall be deemed to be an original,
        but
        all of which together shall constitute a single original
        instrument.

      7.                 
Incorporation of Miscellaneous
        Provisions of the Registration
        Rights Agreement.  The provisions of Sections 12.2, 12.3 and 12.6
        through 12.10 of the Registration Rights Agreement are hereby incorporated
        by
        reference into this letter agreement as if set forth at length
        herein.

      [SIGNATURE
        PAGE FOLLOWS]

      If the terms of this Lock-Up Letter Agreement
        reflect your understanding of our agreements with respect to its subject
        matter,
        please indicate your agreement and acceptance of the same by countersigning
        this
        letter agreement in the space below and returning the signed copy to the
        Company.

      Yours very truly,

CNL Hotels &
Resorts, Inc.

       

       

       

           
        By:                                                                  

Name: Greerson G. McMullen

      Title: Senior Vice
        President, General Counsel and Corporate Secretary

      Accepted and agreed as of the date
first
        written above:

       

       

      _________________________________

      [Stockholder]

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