Document:

Unassociated Document

    

      THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES
        LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
        PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
        WITH RESPECT THERETO IS EFFECTIVE UNDER TIE 1933 ACT AND ANY APPLICABLE STATE
        SECURITIES LAWS, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
        THE
        1933 ACT.

       

      SPEEDEMISSIONS,
        INC.

       

      COMMON
        STOCK PURCHASE WARRANT

       

      Number
        of
        Shares: 2,850,000

       

      Original
        Issue Date: June 30, 2005

       

      Exercise
        Price per Share: $0.06

       

      Speedemissions,
        Inc., a company organized and existing under the laws of the State of Florida
        (the “Company”), hereby certifies that, for value received, Prospect Financial
        Advisors, LLC, or its registered assigns (the “Warrant
        Holder”),
        is
        entitled, subject to the terms set forth below, to purchase from the Company
        up
        to 2,850,000 Million shares (as adjusted from time to time as provided in
        Section 6, the “Warrant
        Shares”)
        of
        common stock, $0.001 par value (the “Common
        Stock”),
        of
        the Company at a price of $0.06 per Warrant Share (as adjusted from time
        to time
        as provided in Section 6, the “Exercise
        Price”),
        at
        any time and from time to time from and after the date hereof, and subject
        to
        the following terms and conditions:

       

      1. Registration
        of Warrant. The
        Company shall register this Warrant upon records to be maintained by the
        Company
        for that purpose (the “Warrant
        Register”),
        in
        the name of the record Warrant Holder hereof from time to time. The Company
        may
        deem and treat the registered Warrant Holder of this Warrant as the absolute
        owner hereof for the purpose of any exercise hereof or any distribution to
        the
        Warrant Holder, and for all other purposes, and the Company shall not be
        affected by notice to the contrary.

       

      2. Investment
        Representation. The
        Warrant Holder by accepting this Warrant represents that the Warrant Holder
        is
        acquiring this Warrant for its own account or the account of an affiliate
        for
        investment purposes and not with the view to any offering or distribution
        and
        that the Warrant Holder will not sell or otherwise dispose of this Warrant
        or
        the underlying Warrant Shares in violation of applicable securities laws.
        The
        Warrant Holder acknowledges that the certificates representing any Warrant
        Shares will bear a legend indicating that they have not been registered under
        the United States Securities Act of 1933, as amended (the “1933
        Act”)
        and
        may not be sold by the Warrant Holder except pursuant to an effective
        registration statement or pursuant to an exemption from registration
        requirements of the 1933 Act and in accordance with federal and state securities
        laws. If this Warrant was acquired by the Warrant Holder pursuant to the
        exemption from the registration requirements of the 1933 Act afforded by
        Regulation S thereunder, the Warrant Holder acknowledges and covenants that
        this
        Warrant may not be exercised by or on behalf of a Person during the one year
        distribution compliance period (as defined in Regulation S) following the
        date
        hereof. “Person”
        means
        an individual, partnership, firm, limited liability company, trust, joint
        venture, association, corporation, or any other legal entity.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3. Validity
        of Warrant and Issue of Shares. The
        Company represents and warrants that this Warrant has been duly authorized
        and
        validly issued and warrants and agrees that all of Common Stock that may
        be
        issued upon the exercise of the rights represented by this Warrant will,
        when
        issued upon such exercise, be duly authorized, validly issued, fully paid
        and
        nonassessable and free from all taxes, liens and charges with respect to
        the
        issue thereof. The Company further warrants and agrees that during the period
        within which the rights represented by this Warrant may be exercised, following
        the effectiveness of an amendment to its articles of incorporation to increase
        its authorized common stock, the Company will at all times have authorized
        and
        reserved a sufficient number of Common Stock to provide for the exercise
        of the
        rights represented by this Warrant. 

       

      4. Registration
        of Transfers and Exchange of Warrants.

       

      a. Subject
        to compliance with the legend set forth on the face of this Warrant, the
        Company
        shall register the transfer of any portion of this Warrant in the Warrant
        Register, upon surrender of this Warrant with the Form of Assignment attached
        hereto duly completed and signed, to the Company at the office specified
        in or
        pursuant to Section 11. Upon any such registration or transfer, a new warrant
        to
        purchase Common Stock, in substantially the form of this Warrant (any such
        new
        warrant, a “New
        Warrant”),
        evidencing the portion of this Warrant so transferred shall be issued to
        the
        transferee and a New Warrant evidencing the remaining portion of this Warrant
        not so transferred, if any, shall be issued to the transferring Warrant Holder.
        The acceptance of the New Warrant by the transferee thereof shall be deemed
        the
        acceptance of such transferee of all of the rights and obligations of a Warrant
        Holder of a Warrant.

       

      b. This
        Warrant is exchangeable, upon the surrender hereof by the Warrant Holder
        to the
        office of the Company specified in or pursuant to Section 11 for one or more
        New
        Warrants, evidencing in the aggregate the right to purchase the number of
        Warrant Shares which may then be purchased hereunder. Any such New Warrant
        will
        be dated the date of such exchange.

       

      5. Exercise
        of Warrants.

       

      a. Upon
        surrender of this Warrant with the Form of Election to Purchase attached
        hereto
        duly completed and signed to the Company, at its address set forth in Section
        11, and upon payment and delivery of the Exercise Price per Warrant Share
        multiplied by the number of Warrant Shares that the Warrant Holder intends
        to
        purchase hereunder, in lawful money of the United States of America, in cash
        or
        by certified or official bank check or checks, to the Company, all as specified
        by the Warrant Holder in the Form of Election to Purchase, the Company shall
        promptly (but in no event later than 7 business days after the Date of Exercise
        (as defined herein)) issue or cause to be issued and cause to be delivered
        to or
        upon the written order of the Warrant Holder and in such name or names as
        the
        Warrant Holder may designate (subject to the restrictions on transfer described
        in the legend set forth on the face of this Warrant), a certificate for the
        Warrant Shares issuable upon such exercise, with such restrictive legend
        as
        required by the 1933 Act. Any person so designated by the Warrant Holder
        to
        receive Warrant Shares shall be deemed to have become holder of record of
        such
        Warrant Shares as of the Date of Exercise of this Warrant.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      b. A
“Date
        of Exercise” means the date on which the Company shall have received (i) this
        Warrant (or any New Warrant, as applicable), with the Form of Election to
        Purchase attached hereto (or attached to such New Warrant) appropriately
        completed and duly signed, and (ii) payment of the Exercise Price for the
        number
        of Warrant Shares so indicated by the Warrant Holder to be
        purchased.

       

      c. This
        Warrant shall be exercisable at any time and from time to time for such number
        of Warrant Shares as is indicated in the attached Form of Election To Purchase.
        If less than all of the Warrant Shares which may be purchased under this
        Warrant
        are exercised at any time, the Company shall issue or cause to be issued,
        at its
        expense, a New Warrant evidencing the right to purchase the remaining number
        of
        Warrant Shares for which no exercise has been evidenced by this
        Warrant.

       

      d. i)
        Notwithstanding anything contained herein to the contrary, the holder of
        this
        Warrant may, at its election exercised in its sole discretion, exercise this
        Warrant in whole or in part and, in lieu of making the cash payment otherwise
        contemplated to be made to the Company upon such exercise in payment of the
        Aggregate Exercise Price, elect instead to receive upon such exercise the
“Net
        Number” of shares of Common Stock determined according to the following formula
        (a “Cashless Exercise”):

       

      Net
        Number = (A x (B - C))/B

       

      
        	 	
                (B)

              	
                For
                  purposes of the foregoing formula:

              

      

       

      A=
        the
        total number shares with respect to which this Warrant is then being
        exercised.

       

      B=
        the
        last reported sale price (as reported by Bloomberg) of the Common Stock on
        the
        trading day immediately preceding the date of the Exercise Notice.

       

      C=
        the
        Warrant Exercise Price then in effect at the time of such exercise.

       

      e. The
        holder of this Warrant agrees not to elect a Cashless Exercise for a period
        of
        six (6) months.

       

      6. Adjustment
        of Exercise Price and Number of Shares. The
        character of the shares of stock or other securities at the time issuable
        upon
        exercise of this Warrant and the Exercise Price therefore, are subject to
        adjustment upon the occurrence of the following events, and all such adjustments
        shall be cumulative:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      a. Adjustment
        for Stock Splits, Stock Dividends, Recapitalizations, Etc. The
        Exercise Price of this Warrant and the number of shares of Common Stock or
        other
        securities at the time issuable upon exercise of this Warrant shall be
        appropriately adjusted to reflect any stock dividend, stock split, combination
        of shares, reclassification, recapitalization or other similar event affecting
        the number of outstanding shares of stock or securities.

       

      b. Adjustment
        for Reorganization, Consolidation, Merger, Etc. In
        case
        of any consolidation or merger of the Company with or into any other
        corporation, entity or person, or any other corporate reorganization, in
        which
        the Company shall not be the continuing or surviving entity of such
        consolidation, merger or reorganization (any such transaction being hereinafter
        referred to as a “Reorganization”),
        then,
        in each case, the holder of this Warrant, on exercise hereof at any time
        after
        the consummation or effective date of such Reorganization (the “Effective
        Date”),
        shall
        receive, in lieu of the shares of stock or other securities at any time issuable
        upon the exercise of the Warrant issuable on such exercise prior to the
        Effective Date, the stock and other securities and property (including cash)
        to
        which such holder would have been entitled upon the Effective Date if such
        holder had exercised this Warrant immediately prior thereto (all subject
        to
        further adjustment as provided in this Warrant).

       

      c. Certificate
        as to Adjustments. In
        case
        of any adjustment or readjustment in the price or kind of securities issuable
        on
        the exercise of this Warrant, the Company will promptly give written notice
        thereof to the holder of this Warrant in the form of a certificate, certified
        and confirmed by the Board of Directors of the Company, setting forth such
        adjustment or readjustment and showing in reasonable detail the facts upon
        which
        such adjustment or readjustment is based.

       

      7. Fractional
        Shares. The
        Company shall not be required to issue or cause to be issued fractional Warrant
        Shares on the exercise of this Warrant. The number of full Warrant Shares
        that
        shall be issuable upon the exercise of this Warrant shall be computed on
        the
        basis of the aggregate number of Warrants Shares purchasable on exercise
        of this
        Warrant so presented. If any fraction of a Warrant Share would, except for
        the
        provisions of this Section 7, be issuable on the exercise of this Warrant,
        the
        Company shall, at its option, (i) pay an amount in cash equal to the Exercise
        Price multiplied by such fraction or (ii) round the number of Warrant Shares
        issuable, up to the next whole number.

       

      8. Sale
        or Merger of the Company. In
        the
        event of a sale of all or substantially all of the assets of the Company
        or the
        merger or consolidation of the Company in a transaction in which the Company
        is
        not the surviving entity, the 4.99% restriction will immediately be released
        and
        the Warrant Holder will have the right to exercise the warrants concurrent
        with
        the sale.

       

      9. Notice
        of Intent to Sell or Merge the Company. The
        Company will give Warrant Holder fifteen (15) business days notice before
        the
        event of a sale of all or substantially all of the assets of the Company
        or the
        merger or consolidation of the Company in a transaction in which the Company
        is
        not the surviving entity

       

      10. Issuance
        of Substitute Warrant. In
        the
        event of a merger, consolidation, recapitalization or reorganization of the
        Company or a reclassification of Company shares of stock, which results in
        an
        adjustment to the number of shares subject to this Warrant and/or the Exercise
        Price hereunder, the Company agrees to issue to the Warrant Holder a substitute
        Warrant reflecting the adjusted number of shares and/or Exercise Price upon
        the
        surrender of this Warrant to the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      11. Notice.
        All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed to have been given (i) on the date they are delivered if delivered
        in
        person; (ii) on the date initially received if delivered by facsimile
        transmission followed by registered or certified mail confirmation; (iii)
        on the
        date delivered by an overnight courier service; or (iv) on the third business
        day after it is mailed by registered or certified mail, return receipt requested
        with postage and other fees prepaid as follows:

       

      If
        to the
        Company:

       

      Speedemissions,
        Inc.

      
      

      134
        Sennia Road Suite B2 

      Tyrone,
        GA 30290

      Facsimile
        (770) 486-6022

      Attention:
        Richard A Parlontieri

       

      With
        a
        copy to:

       

      The
        Lebrecht Group, APLC

      22342
        Avenida Empresa, Suite 220 

      Rancho
        Santa Margarita, CA 92688

      Facsimile
        (949) 635-1244

      Attn:
        Brian A. Lebrecht, Esq.

       

      If
        to the
        Warrant Holder:

       

      Prospect
        Financial Advisors, LLC

      11355
        W.
        Olympic Blvd

      Suite
        220

      Los
        Angeles, CA 90065

      Facsimile
        (310) 479-7736

      Attn:
        Scott E. Wendelin

      

      12. Registration
        Rights

       

      a. If
        at any
        time the Company shall determine to register any of its securities under
        the
        Securities Act either for its own account or the account of a security holder
        or
        holders, other than a registration relating solely to employee benefit plans,
        then Company will:

       

      (A) promptly
        give to the Warrant Holder a written notice thereof; and

       

      (B) include
        in such registration (and any related qualification under blue sky laws or
        other
        compliance), except as set forth in Section l2(b) below, and in any underwriting
        involved therein, all of the Warrant Shares specified in a written request
        or
        requests made by Warrant Holder and received by the Company within ten (10)
        days
        after the written notice from the Company described in clause (A) above is
        mailed or delivered by the Company. Such written request may specify all
        or a
        part of the Warrant Shares.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      b. If
        the
        registration of which the Company gives notice to Warrant Holder is for a
        registered public offering involving an underwriting, the Company shall so
        advise Warrant Holder as a part of the written notice given pursuant to Section
        12(a)(A). In such event, the right of Warrant Holder to registration pursuant
        to
        Section 12(a) shall be conditioned upon Holder’s participation in the inclusion
        of all or any part of the Warrant Shares specified in Warrant Holder’s notice in
        the underwriting to the extent provided herein. Warrant Holder shall (together
        with the Company and the other holders of securities of the Company who have
        registration rights to participate therein distributing their shares in such
        underwriting) enter into an underwriting agreement in customary form the
        representative of the underwriter or underwrites selected by the
        Company.

       

      Notwithstanding
        any other provision of Sections 12(a) or (b), if the representative of the
        underwriters advises the Company in writing that marketing factors require
        a
        limitation on the number of shares to be underwritten, the representative
        may
        (subject to the limitations set forth below) exclude all of the Warrant Shares
        from, or limit the number of Warrant Shares to be included in, the registration
        and underwriting. The Company shall so advise Warrant Holder and other holders
        of securities requesting registration, and the number of shares that are
        entitled to be included in the registration and underwriting shall be allocated
        first to the Company for securities being sold for its account and thereafter
        the number of shares that are entitled to be included in the registration
        shall
        be allocated among Warrant Holder and other holders requesting inclusion
        of
        shares on a pro rata basis. If Warrant Holder and any person does not agree
        to
        the terms of any such underwriting, Warrant Holder and any other such person
        shall be excluded therefrom by written notice from the Company or the
        underwriter. Any Warrant Shares or other securities excluded or withdrawn
        from
        such underwriting shall also be withdrawn from such registration.

       

      c. As
        used
        herein, “Registration
        Expenses”
        shall
        mean all expenses incurred by the Company in complying with this Section
        12,
        including, without limitation, all registration, qualification and filing
        fees;
        printing expenses; fees and disbursements of counsel for the Company (and
        the
        fees and disbursements of counsel for the Company in its capacity as counsel
        to
        Warrant Holder and other holders hereunder; if Company counsel does not make
        itself available for this purpose, the Company will pay the reasonable fees
        and
        disbursements of one counsel for Warrant Holder and other holders as mutually
        agreed upon by all such holders) and of the Company’s independent accounting
        firm; blue sky fees and expenses; and the expense of any special audits incident
        to or required by any such registration (but excluding the compensation of
        regular employees of the Company which shall be paid in any event by the
        Company). All Registration Expenses in connection with any registration pursuant
        to Section 13(a) hereof shall be borne by the Company.

       

      d. The
        rights conferred upon Warrant Holder under this Section 12 may be assigned
        by
        Holder to any permitted transferee of the Warrant Shares.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      13. Miscellaneous.

       

      a. This
        Warrant shall be binding on and inure to the benefit of the parties hereto
        and
        their respective successors and permitted assigns. This Warrant may be amended
        only by a writing signed by the Company and the Warrant Holder.

       

      b. Nothing
        in this Warrant shall be construed to give to any person or corporation other
        than the Company and the Warrant Holder any legal or equitable right, remedy
        or
        cause of action under this Warrant; this Warrant shall be for the sole and
        exclusive benefit of the Company and the Warrant Holder.

       

      c. This
        Warrant shall be governed by, construed and enforced in accordance with the
        internal laws of the State of New York without regard to the principles of
        conflicts of law thereof.

       

      d. The
        headings herein are for convenience only, do not constitute a part of this
        Warrant and shall not be deemed to limit or affect any of the provisions
        hereof.

       

      e. In
        case
        any one or more of the provisions of this Warrant shall be invalid or
        unenforceable in any respect, the validity and enforceablilty of the remaining
        terms and provisions of this Warrant shall not in any way be affected or
        impaired thereby and the parties will attempt in good faith to agree upon
        a
        valid and enforceable provision which shall be a commercially reasonably
        substitute therefore, and upon so agreeing, shall incorporate such substitute
        provision in this Warrant.

       

      f. The
        Warrant Holder shall not, by virtue hereof, be entitled to any voting or
        other
        rights of a shareholder of the Company, either at law or equity, and the
        rights
        of the Warrant Holder are limited to those expressed in this
        Warrant.

       

      [SIGNATURES
        ON FOLLOWING PAGE]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
        by the
        authorized officer as of the date first above stated.

       

      SPEEDEMISSIONS,
        INC., a Florida corporation

       

       

      By:
        /s/ Richard A.
        Parlontieri                          
         

      Name:
        Richard A. Parlontieri

      Its:
        President

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF ELECTION TO PURCHASE

       

      (To
        be
        executed by the Warrant Holder to exercise the right to purchase shares of
        Common Stock under the foregoing Warrant)

       

      To:
        SPEEDEMISSIONS, INC.:

       

      In
        accordance with the Warrant enclosed with this Form of Election to Purchase,
        the
        undersigned hereby irrevocably elects to purchase _________ shares of Common
        Stock (“Common Stock”), $0.001 par value, of Speedemissions, Inc., and encloses
        the warrant and $____ for each Warrant Share being purchased or an aggregate
        of
        $ _____________ in cash or certified or official bank check or checks, which
        sum
        represents the aggregate Exercise Price (as defined in the Warrant) together
        with any applicable taxes payable by the undersigned pursuant to the
        Warrant.

       

      The
        undersigned requests that certificates for the shares of Common Stock issuable
        upon this exercise be issued in the name of: 

       

      __________________________________

      __________________________________

      __________________________________

      (Please
        print name and address)

       

      __________________________________

      (Please
        insert Social Security or Tax Identification Number)

       

      If
        the
        number of shares of Common Stock issuable upon this exercise shall not be
        all of
        the shares of Common Stock which the undersigned is entitled to purchase
        in
        accordance with the enclosed Warrant, the undersigned requests that a New
        Warrant (as defined in the Warrant) evidencing the right to purchase the
        shares
        of Common Stock not issuable pursuant to the exercise evidenced hereby be
        issued
        in the name of and delivered to:

       

      __________________________________

      __________________________________

      __________________________________

      (Please
        print name and address)

       

      Dated:
        _______                                                                  
        Name
        of
        Warrant Holder: 

       

      (Print)
        __________________________________

       

      (By:)
        ___________________________________

       

      (Name:)
        _________________________________

       

      (Title:)
        __________________________________

       

      Signature
        must conform in all respects to name of Warrant Holder as specified on the
        face
        of the WarrantUnassociated Document

    

      STOCK
        PURCHASE AGREEMENT

      

      

      This
        STOCK PURCHASE AGREEMENT (the "Agreement")
        is
        made and entered into as of 9:00 a.m. on June 30, 2005 (the "Effective
        Time"),
        by
        and between SPEEDEMISSIONS, INC., a Florida corporation maintaining an address
        at 1029 Peachtree Parkway North, Suite 310, Peachtree City, Georgia 30269
        (the
        "Purchaser"),and
        Mr. Sticker, Inc. a company organized and existing under the laws of the
        State
        of Texas, maintaining business offices, at, 1203 Missions Hills Drive, College
        Station, Texas 77845 (the "Company")
        and
        David E. Smith, Barbara Smith and Grant Smith (collectively, the "Shareholder")
        (hereinafter the Company and Shareholder are sometimes referred to, and
        collectively as the ("Company
        Parties").

       

      BACKGROUND
        INFORMATION

       

      Company
        is in the business of providing vehicle emissions testing and vehicle
        safety services
        (the "Business"),
        and
        the Shareholder is the owner of all of the capital stock in Company. This
        Agreement sets forth the terms and conditions upon which Purchaser is acquiring
        Company from Company Parties and Company Parties are selling and delivering
        Company to Purchaser.

      

      OPERATIVE
        PROVISIONS

      

      In
        consideration of the mutual covenants and conditions hereinafter set forth,
        and
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, Company Parties and Purchaser hereby mutually agree
        as
        follows:

      

      1. SALE
        AND TRANSFER OF SHARES; CLOSING.

      

      1.1. Upon
        the
        terms and subject to the conditions set forth in this Agreement, at the Closing
        (hereinafter defined), Shareholder shall sell, convey, assign, transfer and
        deliver to Purchaser, and Purchaser shall purchase and acquire from Shareholder,
        all of the outstanding shares of Company (the "Shares") which represent all
        of
        the issued and outstanding capital stock of Company 

      

      1.2. Excluded
        Assets.
        Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere
        in this Agreement, the following assets of Company (collectively, the
        "Excluded
        Assets")
        are
        not part of the sale and purchase contemplated hereunder, are excluded from
        the
        Assets and shall remain the property of Shareholder after the Effective
        Time.

      

      1.2.1 2001
        - 3⁄4
        ton Dodge Ram 2500 diesel w/4-wheel drive

      1.2.2 2003
        - 3⁄4
        ton Dodge Ram 2500 diesel w/4-wheel drive

      1.2.3 The
        real
        property and improvements located at:

              
        15113
        Welcome Lane, Houston, Harris County, Texas 77014

      1.2.4 The
        real
        property and improvements located at:

              
        2690 FM 1960, Houston, Harris County, Texas 77073

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.3. Consideration.
        The
        consideration for the Shares (the "Purchase
        Price")
        will
        be Three Million One Hundred Thousand and no/100 U.S. Dollars ($3,100,000.00)
        to
        be paid immediately after closing of this transaction with funds being sent
        to
        Shareholder via bank wire transfer.

      

      1.4. Liabilities.
        At the
        Closing, Purchaser shall assume and agree to discharge only the obligations
        of
        Company, as hereinafter defined (the "Assumed
        Liabilities").
        Except for the Assumed Liabilities, Purchaser shall not assume any Liabilities
        of the Shareholder; and Company shall pay, perform and discharge all of such
        Liabilities in accordance with their terms. For purposes of this Agreement,
        the
        term "Liabilities"
        means
        any existing , obligation, debt, account payable, lease obligation, contract,
        agreement, duty or commitment of Company or Shareholder of any kind, character
        or description, whether known or unknown, absolute or contingent, accrued
        or
        unaccrued, disputed or undisputed, liquidated or unliquidated, secured or
        unsecured, joint or several, due or to become due, vested or unvested,
        executory, determined, determinable or otherwise, and whether or not the
        same is
        required to be accrued on the financial statements of the Shareholder.

      

      1.5. Closing.
        The
        closing (the "Closing")
        of the
        transactions contemplated by this Agreement (the "Contemplated
        Transactions")
        shall
        take place contemporaneously with the execution of this Agreement in the
        offices
        of the Purchaser. At
        the
        Closing the parties shall deliver the following documents:

      

      1.5.1 Selling
        Parties' Deliveries at the Closing.
        The
        Shareholder shall deliver to Purchaser at the Closing the following
        items:

      

      
        	 	
                (i)

              	
                All
                  certificates representing the Shares, duly endorsed in blank as
                  assigned
                  to Purchaser;

              

      

      

      
        	 	
                (ii)

              	
                The
                  Company's corporate minute book and all company records, books,
                  and
                  materials;

              

      

      

      
        	 	
                (iii)

              	
                A
                  copy of the resolutions duly adopted by Company's Board of Director
                  and
                  Shareholder authorizing the execution, delivery, and performance
                  of this
                  Agreement and the consummation of the Contemplated Transactions,
                  certified
                  by an officer of Company;

              

      

      

      
        	 	
                (iv)

              	
                Unaudited
                  financial statements and management reports for year end 2004 and
                  financial period subsequent to June 1, 2005 and prior to the Effective
                  Time;

              

      

      

      
        	 	
                (v)

              	
                The
                  Certificate of the Secretary of the Company certifying as true
                  and correct
                  a copy of the Articles of Incorporation and bylaws, and all amendments
                  thereto, of the Company, dated as of the date of
                  Closing;

              

      

      

      
        	 	
                (vi)

              	
                A
                  certified copy of the Articles of Incorporation of the Company
                  and a
                  certificate of good standing as to the Company, issued not more
                  than
                  fifteen (15) days prior to the Closing by the Secretary of State
                  of the
                  State of Texas;

              

      

      
 

      
        
          
          

        

        
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                (vii)

              	
                The
                  written resignations of all directors and officers of the Company
                  effective as of the Closing;

              

      

      

      
        	 	
                (viii)

              	
                Signature
                  cards for all bank and investment accounts of the Company removing
                  the
                  current signatories and adding the signatories specified by
                  Purchaser;

              

      

      

      
        	 	
                (ix)

              	
                All
                  other documents or instruments required by this Agreement or reasonably
                  required by Purchaser's counsel to consummate the Contemplated
                  Transactions.

              

      

      

      1.5.2 Purchaser's
        Deliveries at the Closing.
        Purchaser shall deliver to Company Parties at the Closing, the following
        items:

      

      
        	 	
                (i)

              	
                A
                  copy of the resolutions duly adopted by the Board of Directors
                  of
                  Purchaser authorizing the execution, delivery, and performance
                  of this
                  Agreement and the consummation of the Contemplated Transactions,
                  certified
                  by an officer of Purchaser; and

              

      

      

      
        	 	
                (ii)

              	
                All
                  other documents or instruments required by this Agreement or reasonably
                  required by Purchaser's counsel to consummate the Contemplated
                  Transactions.

              

      

      

      2. REPRESENTATIONS
        AND WARRANTIES OF THE SHAREHOLDER.
        The
        Shareholder, jointly and severally, represent and warrant to Purchaser as
        follows, which representations and warranties shall survive the consummation
        of
        the Contemplated Transactions:

      

      2.1. Organization;
        Power; Authority.
        Company
        is a corporation duly organized, validly existing, and in good standing under
        the laws of the State of Texas, with full power and authority to carry
        on
        the Business as now being conducted and to own, operate and lease (as the
        case
        may be) the Assets
        and to
        perform all of its obligations. Company
        has the corporate power and authority to sell, assign, transfer, convey and
        deliver to Purchaser the Assets as contemplated by this Agreement, and the
        execution, delivery and performance of this Agreement and the Contemplated
        Transactions have been properly and duly authorized by Company. Shareholder
        has
        the authority to enter into this Agreement and consummate the Contemplated
        Transactions. This Agreement and all other agreements executed in connection
        with the Contemplated Transactions constitute, or will constitute upon
        execution, the legal, valid and binding obligations of Company and Shareholder,
        enforceable in accordance with their respective terms.

      

      
        
          
          

        

        
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      2.2. No
        Conflict or Violation;
        Approvals.
        The
        execution, delivery and performance of this Agreement and the Contemplated
        Transactions will not (a) violate or conflict with Company's articles of
        incorporation or by-laws; (b) cause a breach of, or a default under, or create
        any right for any party to accelerate, terminate, modify or require notice
        under
        or cancel, any contract, permit, authorization or concession that Company
        or the
        Shareholder is a party or by which any of the Assets are bound; (c) violate
        by
        Company or Shareholder any law, rule, regulation, constitution, injunction,
        judgment, order, decree, ruling or other restriction of any government,
        government agency or court; or (d) impose any encumbrance, restriction or
        charge
        on the Business or on any of the Assets. No consent, approval or authorization
        of, or declaration, filing or registration with, any authority, or any other
        person or entity, is required to be made or obtained by Company or Shareholder
        in connection with the execution, delivery and performance of the Agreement
        and
        the Contemplated Transactions, except
        as
        have been received by Company or Shareholder prior to the Closing.

      

      2.3. Capitalization.
        The
        Shares represent 100% of the outstanding capital stock of Company, and are
        owned
        by Shareholder free and clear of all Liens (as defined below). No other person
        has a contract right, whether by issuance, sale, transfer, or otherwise to
        any
        capital stock of Company. Company has no subsidiaries.

      

      2.4. Financial
        Statements.
        Company
        will have delivered to the Purchaser complete and correct copies of unaudited
        financial statements of Company for the two month period ended May 31, 2005
        (the
        "Financial
        Statements").
        The
        Financial Statements were prepared in accordance with GAAP consistently applied
        throughout the periods indicated; are consistent with the books and records
        of
        the Business; and present fairly the financial condition and results of
        operations of the Business as of the date thereof and the period then ended.
        There has not been any substantive change in the assets, liabilities, financial
        condition or operations of Company from that reflected in the Financial
        Statement for the period ending May 31, 2005 (the "Current
        Financial Statement"),
        Except to the extent reflected or reserved against or noted in the Current
        Financial Statement, Company had, as of the date thereof, no material
        liabilities or obligations of any nature, whether accrued, absolute, contingent
        or otherwise, including without limitation tax liabilities, whether incurred
        in
        respect to or measured by Company's income for any period prior to the date
        of
        such Current Financial Statement, or arising out of transactions entered
        into,
        or any set of facts existing prior thereto. There exists no basis for the
        assertion against Company or the Business as of the date hereof or as of
        the
        date of the Current Financial Statement, of any material liability of any
        nature
        or in any amount not fully reflected or reserved against or noted in the
        Current
        Financial Statement.

      

      2.5. Title.
        Company's
        assets, real, personal or mixed, tangible and intangible, of every kind and
        description, wherever located as specifically are set forth on Exhibit
        A
        (the
        "Assets"),
        but
        excluding the Excluded Assets. Company
        has good and marketable title to all of the Assets, free and clear of all
        liens,
        assignments, security interests, claims, mortgages, encumbrances or charges
        of
        any kind or nature ("Liens").
        As of
        the Effective Time, Purchaser shall acquire good and marketable title to
        all of
        the Assets free and clear of all Liens. The Assets constitute all of the
        assets
        (tangible and intangible, and including, but not limited to, all intellectual
        property assets) reasonably necessary to operate the Business in the manner
        presently operated by Company and
        each of
        the Assets and the Premises, disclosed in Schedule
        2.5,
        is in
        good operating condition and repair, normal wear and tear excepted. Without
        limitation the Assets include all of Company's right, title, and interest
        in and
        to the following (in each case except for the Excluded Assets), wherever
        located:

      

      
        
          
          

        

        
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      2.5.1 All
        of
Company's
        emissions testing, oil change and safety inspection equipment (collectively,
        the "Equipment"),
        including, without limitation, the Equipment disclosed in Schedule
        2.5.1.

      

      2.5.2 All
        inventories of the Company and all goods and supplies, in each case to the
        extent used directly or indirectly in or otherwise relating primarily to
        the
        Business (the "Inventory").
        All
        items included in the Inventory consist of a quality and quantity usable
        and,
        with respect to finished goods, saleable, in the ordinary course of business
        of
        Company except for obsolete items and items of below-standard quality, all
        of
        which have been written off or written down to net realizable value in the
        Financial Statements, as the case may be.

      

      2.6 Material
        Contracts.
        Company
        is not a party to any contract under which Company paid (a)
        $10,000 or more during the 12 month period ending May 31, 2005, (b) received
        $10,000 or more during the 12 month period ending May 31, 2005, or (c) would,
        absent this Agreement and the Contemplated Transactions, reasonably expect
        to
        pay or receive $10,000 or more for the 12 month period immediately following
        the
        Effective Time.
        The
Company
        Parties' are not subject to any contract: (i) that contains covenants limiting
        the freedom of Company Parties' nor the Shareholder to compete in any line
        of
        business in any geographic area; (ii) that requires Company Parties' to share
        any profits, or requires any payments or other distributions based on profits,
        revenues or cash flows; (iii) pursuant to which third parties have been provided
        with products that can be returned to Company in the event they are not sold
        and
        which could involve products valued at $10,000 or more (invoice price) in
        the
        aggregate; or (iv) that has had or, assuming that Purchaser complies with
        its
        obligations there under, may in the future have a material adverse effect
        upon
        the business, earnings, financial condition, or prospects of
        Purchaser.

      

      2.7 Litigation.
        There
        are no claims, actions, suits, proceedings or investigations pending or,
        to the
        knowledge of the Company Parties', threatened against or affecting the Company
        or Company's assets of the operation of the Business before any foreign,
        federal, state, local or other governmental authority or agency.

      

      2.8 Compliance
        with Laws.
        The
        operations of the Company, the Business and the Assets conform to the
        requirements of all applicable laws, rules, orders, ordinances, decrees and
        regulations of all governmental agencies, whether national, state or local,
        having jurisdiction there-over, and no material claim alleging nonconformity
        or
        noncompliance with respect to such matters has been made or threatened against
        Company and/or the Assets or, to the Company Parties knowledge, may in the
        foreseeable future be made by any such agency.

      

      2.9 Employee
        Benefit Plans.
        Company
        has no formal or informal health, dental, vision, life, retirement, profit
        sharing, deferred compensation, pension, stock options, sick leave or sick
        time
        employee benefit plans in effect.

      

      2.10 Employee
        Matters.

      

      2.10.1 List
        of Personnel.
        Schedule
        2.10.1
        contains
        a true and complete list of the names and current compensation levels of
        all
        active employees involved in the Business. Since March 31, 2005 there has
        been
        no increase in the compensation of the employees of Company.

      

      
        
          
          

        

        
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      2.10.2 Employee
        Relations.
        There
        is no labor strike, dispute, slowdown, stoppage, or similar activity pending
        or,
        to the knowledge of the Shareholder, threatened against Company pertaining
        to
        the Business or the employees involved in the Business. There are no charges,
        investigations, administrative proceedings, or formal complaints of
        discrimination (including discrimination based upon sex, age, marital status,
        race, national origin, sexual preference, handicap or veteran status) pending
        or, to the knowledge of the Shareholder, threatened before the Equal Employment
        Opportunity Commission or any federal, state, or local agency or court against
        Company or the Shareholder pertaining to the Business or the employees of
        the
        Business, and, to the knowledge of the Shareholder, no basis for any such
        charge, investigation, administrative proceeding, or complaint
        exists.

      

      2.10.3 No
        Liabilities or Obligations.
        Except
        as reflected on the Financial Statements, Company has no liabilities or
        obligations to any beneficiaries, governmental authorities, or any other
        parties
        arising out of or relating to any employee claims.

      

      2.10.4 Worker's
        Compensation Insurance Coverage and Claims. Company
        has in full force and effect worker's compensation coverage in each jurisdiction
        in which Company is required to maintain such coverage by applicable state
        law.
        Company has paid or accrued all workers' compensation premiums required to
        be
        paid in each jurisdiction in which Company is required to maintain such coverage
        by applicable state law.

      

      2.11 Taxes.
        The
        Company Parties have filed, as of the effective time all required tax returns
        in
        connection with the operation of the Company and the operation of the Business.
        All tax returns filed by Company or the Shareholder in connection with the
        Assets and the operation of the Business are true, correct, and complete.
        The
        Company Parties have, as of the effective time paid, or made provision for
        the
        payment of, all taxes that have or may have become due pursuant to tax returns
        that are or were required to be filed by Company or the Shareholder in
        connection with the Assets and the operation of the Business, or pursuant
        to any
        assessment received by Company or the Shareholder. There exists no proposed
        tax
        assessment against Company or Shareholder of the Company in connection with
        the
        Assets and the operation of the Business. All taxes that Company or the
        Shareholder is required to withhold or collect in connection with the operation
        of the Assets and the Business have been duly withheld or collected and,
        to the
        extent required, have been paid to the proper governmental body or other
        person.

      

      2.12 Environmental
        Matters.
        The
        Company does not currently, nor has ever operated any business at any currently
        leased or owned premises related to hazardous substances such as petroleum,
        petroleum by-products, and any other chemicals, materials, substances or
        wastes
        which are currently defined or regulated as "hazardous" substances, hazardous
        materials, hazardous wastes, toxic pollutants, toxic air pollutants or
        contaminants. Therefore, to the best of the Shareholder's
        knowledge, there are no material environmental matters.

      

      
        
          
          

        

        
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      2.13 Broker's
        or Finder's Fees.
        Neither
        of the Company
        Parties has incurred, nor will either of them incur, directly or indirectly,
        any
        liability for brokerage or finders' fees or any similar charges in connection
        with this Agreement or the Contemplated Transactions.

      

      2.14 Material
        Misstatements or Omissions.
        No
        representations or warranties by the Company Parties in this Agreement, nor
        any
        document, exhibit, statement, certificate or schedule furnished to Purchaser
        pursuant hereto, contains, or with respect to other documents to be delivered
        by
        the Company Parties at Closing, will contain any untrue statement of a material
        fact, or omits to state any material fact necessary to make the statements
        or
        facts contained therein not misleading.

      

      2.15 Information;
        Suitability.
        The
Shareholder,
        along
        with their advisors, have such knowledge and experience in financial and
        business matters that the Shareholder
        are
        capable of evaluating the merits and risks of the Purchase Price consideration
        and the Contemplated Transactions, and the Shareholder
        have
        sought such accounting, legal and tax advice as the Shareholder
        has
        considered necessary to make an informed decision with respect to the
        Contemplated Transactions and have determined that the Purchase Price
        Consideration and other terms and conditions of the Contemplated Transaction
        are
        fair and reasonable to the Shareholder.

      

      2.16 Intention.
        The
Shareholder
        has
        not
        entered into this Agreement or agreed to complete the Contemplated Transactions
        with the actual intent to hinder, delay, or defraud any creditor of the Company
        Parties.

      

      2.17 Value
        of Assets.
        The
Shareholder
        has
        received reasonably equivalent value in exchange for the obligations to be
        undertaken pursuant to the Contemplated Transactions. Giving effect to the
        Contemplated Transactions, the fair market value of the Company's assets
        exceeds
        the Company's' total liabilities, whether accrued, absolute, contingent or
        otherwise. Giving effect to the Contemplated Transactions, the fair market
        value
        of the assets of the Company exceeds total liabilities, whether accrued,
        absolute, contingent or otherwise. The Company's assets do not and, immediately
        following the Contemplated Transactions, will not, constitute unreasonably
        small
        capital to carry out the Company's business as conducted or as proposed to
        be
        conducted. The assets of the shareholders or equity owners of the Company
        do not
        and, immediately following the Contemplated Transactions, will not, constitute
        unreasonably small capital to carry out the business of the shareholder of
        the
        Company as conducted or as proposed to be conducted.

      

      2.18 No
        Bankruptcy.
        No
        petition in bankruptcy has been filed against either the Company or the
        Shareholder or any affiliate of either of them during the last seven years,
        and
        neither the Company, the Shareholder nor any affiliate of either of them
        in the
        last seven years has ever made an assignment for the benefit of creditors
        or
        taken advantage of any insolvency act for the benefit of debtors. Neither
        the
        Company Parties nor any affiliate of the Company Parties is contemplating
        the
        filing of a petition under any state or federal bankruptcy or insolvency
        laws.
        None of the Company Parties has any knowledge of any person contemplating
        the
        filing of any such petition against it or an affiliate of the Company
        Parties.

      

      
        
          
          

        

        
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      3. REPRESENTATIONS
        AND WARRANTIES OF PURCHASER.
        Purchaser represents and warrants to Shareholder as follows:

      

      3.1 Organization
        and Power.
        Purchaser is a duly organized and validly existing Florida corporation.
        Purchaser has the power and authority to carry on its business as now being
        conducted and to own, operate and lease its properties in the places where
        such
        business is now conducted and where such properties are now owned, leased
        or
        operated.

      

      3.2 Authorization.
        The
        execution, delivery and performance of this Agreement by Purchaser and the
        consummation of the Contemplated Transactions by the Purchaser have been
        duly
        authorized by the Purchaser. This Agreement constitutes the legal, valid
        and
        binding obligation of Purchaser, enforceable in accordance with its
        terms.

      

      3.3 Broker's
        or Finder's Fees.
        Purchaser
        has not incurred, nor will it incur, directly or

      indirectly,
        any liability for brokerage or finders' fees or any similar charges in
        connection with this Agreement or the Contemplated Transactions.

      

      4. COVENANTS.

      

      4.1 Non-Compete
        Agreement.
        The
        Shareholder severally, covenants and agrees that for a period of two years
        following the Effective Time, the Shareholder shall not individually or through
        any other Person or Affiliate of the Shareholder, engage directly or indirectly
        in any Competitive Business anywhere in the Restricted Territory, whether
        such
        engagement be as an employer, officer, director, owner, investor, employee,
        partner, consultant or other participant in any Competitive Business. For
        purposes of this Agreement, "Person"
        shall
        mean a corporation, partnership, trust, limited liability company, association,
        or other business entity or an individual. "Affiliate"
        shall
        mean another Person controlled by, controlling, or under common control with
        the
Shareholder.
        "Competitive
        Business"
        means
        any
        business that is similar to the Business.
        "Restricted
        Territory"
        shall
        mean the 5 county Houston trade area for emissions testing and safety
        inspections as defined by the Texas Department of Public Safety ,which is
        where
        Company's facilities and employees and the majority of the Company's customers
        are located. The Company Parties acknowledge and agree that, given the nature
        of
        Company's business, the restrictions set forth in this Section 4 are necessary
        and reasonable in terms of the activities restricted, as well as the geographic
        and temporal scope of such restrictions. The Shareholder
        further
        acknowledge and agree that if any of the provisions of this Section 4 shall
        ever
        be deemed to exceed the time, activity, geographic, or other limitations
        permitted by applicable law, then such provisions shall be and hereby are
        reformed to the maximum time, activity, geographic, or other limitations
        permitted by applicable law. The provisions of Paragraph 4.1 shall continue
        in
        effect so long as the Purchaser continues to operate the state inspection
        business as defined by the Texas Department of Public Safety, on the real
        property described herein in paragraphs 1.2.3 and 1.2.4. In the event Purchaser
        ceases to operate said business within a period of two (2) years after close,
        of
        this transaction, this provision is no longer effective.

      

      
        
          
          

        

        
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      4.2 Non-Solicitation.
        For a
        period of two years following the Effective Time (a) the Shareholder
        shall
        not
        individually or through any other Person or Affiliate of the Shareholder,
        solicit
        for employment or hire any employee of the Purchaser without the prior written
        consent of the Purchaser, or (b) solicit Competitive Business from any entity
        who was an active or prospective customer of the Purchaser during the first
        two
        years following the Effective Time. In the event Purchaser discontinues
        operations of a state inspections business as defined by the Texas Department
        of
        Public Safety on the real property described in paragraphs 1.2.3 and 1.2.4,
        within a period of two (2) years after close of this transaction, this provision
        is no longer effective.

      

      4.3 Confidentiality.
        The
Shareholder
        shall
        not
        divulge or appropriate for its or their own use any Trade Secrets of the
        Purchaser or the Company, during or after the Effective Time, for as long
        as the
        information remains a Trade Secret, and shall not make any unauthorized
        disclosure of Confidential Information about the Purchaser or Company for
        a
        period of three years after the Effective Time. Notwithstanding the foregoing,
        (a) the Shareholder
        may
        make
        any copies of, distribute, or use any such Confidential Information as necessary
        to prepare for the completion of the Contemplated Transactions, and (b) the
        Shareholder
        may
        disclose Confidential Information and Trade Secrets to the extent disclosure
        is
        mandated by the legal requirements of the Shareholder
        and
        to
        professional advisors, directors, and senior executives as reasonably necessary.
        This Agreement may also be disclosed to third parties if reasonably necessary
        to
        secure consents or approvals to consummate the Contemplated Transactions.
        "Trade
        Secrets"
        shall
        mean any information of the Company or Purchaser (including but not limited
        to
        technical or non-technical data, a formula, a pattern, a compilation, a program,
        a device, a method, a technique, a drawing, a process, financial data, financial
        plans, product plans, or a list or actual or potential customers or suppliers)
        which derives economic value, actual or potential, from not being generally
        known to, and not being readily ascertainable by proper means by, other persons
        who can obtain economic value from its disclosure or use, and is the subject
        of
        efforts that are reasonable under the circumstances to maintain its secrecy.
        For
        purposes of this Agreement, "Confidential
        Information"
        means
        any valuable, non-public, competitively sensitive information (other than
        Trade
        Secrets) concerning the Company or the Purchaser's financial position, results
        of operations, annual and long-range business plans, product or service plans,
        marketing plans and methods, training, educational and administrative manuals,
        client lists and employee lists obtained by the Shareholder
        during
        their employment with or ownership of the Company; provided, however, that
        Confidential Information shall not include information to the extent that
        it is
        or becomes publicly known or generally utilized (other than because of the
        unauthorized disclosure of such information by the Shareholder
        or
        their
        affiliates) by others engaged in the same business or activities in which
        the
        Company or Purchaser utilized, developed or otherwise acquired such information.
        This provision is deemed not effective in the event Purchaser discontinues
        operations of a state inspections business as defined by the Texas Department
        of
        Public safety at the real property defined in paragraphs 1.2.3 and 1.2.4,
        within
        a period of two (2) years after the close of this transaction.

      

      4.4 Cooperation.
        The
Shareholder,
        on the
        one hand, and Purchaser, on the other hand, shall cooperate fully with each
        other and their respective employees, legal counsel, accountants and other
        representatives and advisers in connection with the steps required to be
        taken
        as part of their respective obligations under this Agreement; and shall,
        at any
        time and from time to time after the Effective Time, upon the request of
        the
        other, do, execute, acknowledge and deliver, or will cause to be done, executed,
        acknowledged and delivered, all such further acts, deeds, assignments,
        transfers, conveyances, powers of attorney, receipts, acknowledgments,
        acceptances and assurances as may be reasonably required to satisfy and perform
        the obligations of such party hereunder, and to allow Purchaser to operate
        the
        Business after Closing in substantially the same the manner in which it was
        operated before the Closing. Without limiting the foregoing, the Shareholder
        agrees
        to
        work with Purchaser on a full-time basis for a period of up to 90 days following
        the Closing at no cost to assist with the transition of the Business to
        Purchaser, and the Shareholder agrees to work with Purchaser following this
        90
        day period on a consulting basis as reasonably agreed to by the Purchaser
        and
        the Shareholder.

      

      
        
          
          

        

        
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      4.5 Funds
        Received After Closing.
        Any and
        all funds received by Company after the Closing in respect of the Business,
        other than amounts received in respect of the Excluded Assets, shall be remitted
        to the Purchaser immediately upon receipt. Any and all funds received by
        the
        Purchaser after Closing in respect of the Excluded Assets shall be remitted
        to
        the Shareholder immediately upon receipt.

      

      4.6 Emissions
        Testing Equipment.
        For a
        period of two (2) years following the Effective Time, Shareholder shall not
        directly or indirectly, use any operational emission analyzers or dynamometers
        in the conduct of any business within the Restricted Territory. The restrictive
        provisions in paragraphs 4.1, 4.2 and 4.3 are deemed non-enforceable as per
        the
        stipulations in above noted paragraphs.

      

      4.7 Liabilities.
        All
        liabilities with respect to the operation of the Business not otherwise provided
        for herein which are paid or become payable after the Closing (hereinafter
        defined) shall be allocated between Purchaser and Company according to the
        accounting period to which they relate. Items relating to a time prior to
        the
        Effective Time shall be paid by Company and those relating to a time thereafter
        shall be paid by Purchaser. Obligations for taxes, rent, utilities, telephone
        service and other items which relate to a period prior to and after the
        Effective Time, will be prorated as of the Effective Time between Purchaser
        and
        Company.

      

      4.8 Certain
        Employment Related Matters.
        Prior
        to the Closing, Purchaser will meet with Jason Cobb to finalize an arrangement
        to maintain his employment. Purchaser will retain all employees as of day
        of
        close. All employees are employed by the Purchaser on an "at-will" basis
        and may
        be terminated at any time with our without cause.

      

      4.9 Tax
        Matters.

      

      4.9.1 The
        Shareholder shall pay all taxes of whatsoever kind or nature imposed by the
        United States or by any state, municipality, subdivision or instrumentality
        of
        the United States or by any other tax authority (including all applicable
        penalties and interest, "Taxes") arising from or relating to the Contemplated
        Transactions if any, due as a result of the purchase, sale or transfer of
        the
        Shares in accordance herewith whether imposed by law on the Shareholder.
        Shareholder shall indemnify, reimburse and hold harmless the Purchaser in
        respect of the liability for payment of or failure to pay any such Taxes
        or the
        filing of or failure to file any reports required in connection
        therewith.

      

      4.9.2 Shareholder
        on the one hand, and Purchaser, on the other hand, agree to furnish or cause
        to
        be furnished to each other, upon request, such information and assistance
        (including access to books and records) relating to Company and the Purchaser
        as
        is reasonably necessary for the preparation of any return, claim for refund
        or
        audit, and the prosecution or defense of any claim, suit or proceeding relating
        to any proposed adjustment. 

      

      
        
          
          

        

        
          -
            10
            -

          
            

          

        

        
          
          

        

      

       

      5. INDEMNIFICATION.

      

      5.1 Survival
        of Representations.
        Each
        representation, warranty, covenant and agreement made by any party within
        this
        Agreement or pursuant hereto shall survive the Closing forever. All statements
        contained herein and in any certificate, schedule, list and other document
        described pursuant hereto or in connection with the transactions contemplated
        hereby shall be deemed representations and warranties within the meaning
        of this
        Section.

      

      5.2 Indemnification
        of Purchaser.
        The
        Shareholder, jointly and severally, shall indemnify and hold harmless Purchaser
        against and in respect of all demands, claims, actions, liabilities, damages,
        losses, judgments, assessments, costs and expenses (including without limitation
        interest, penalties and attorney fees) (individually a "Claim"
        and
        collectively the "Claims")
        asserted against, resulting to, imposed upon or incurred by Purchaser, directly
        or indirectly, and arising out of or resulting from (a) a breach of any
        representation, warranty, covenant or agreement made or to be performed by
        the
        Shareholder under this Agreement, (b) any requirement that Purchaser satisfy
        or
        perform any Liability of Company or the Shareholder that is not an Assumed
        Liability, (c) any fraud or willful misconduct by the Shareholder in connection
        with this Agreement or the Contemplated Transactions.

      

      5.3 Notification.
        Purchaser if seeking indemnification hereunder shall hereinafter be referred
        to
        as the "Indemnified
        Party"
        and the
        Shareholder shall hereinafter be referred to as the "Indemnifying
        Parties".
        The
        Indemnified Party shall, upon becoming aware or being put on notice of the
        existence of a Claim with respect to which the Indemnifying Parties may be
        entitled to indemnification pursuant to this Section 5, promptly notify the
        Indemnifying Parties in writing of such matter. The failure of the Indemnified
        Party to notify the Indemnifying Parties of any Claim with respect to which
        the
        Indemnified Party may be entitled to indemnification hereunder will not relieve
        the Indemnifying Parties of any liability that it may have to the Indemnified
        Party except to the extent the Indemnifying Parties are materially prejudiced
        thereby; provided, that the Indemnified Party shall be deemed to have notified
        the Indemnifying Party by giving written notice of any such Claim to the
        Shareholder.

      

      5.4 Settlement
        and Defense of Claims.
        Except
        as hereinafter provided, upon receiving notice thereof in accordance with
        the
        provisions of Section 5.3 hereof, the Indemnifying Parties shall have the
        right
        to settle at its own cost and expense all Claims which are susceptible of
        being
        settled or defended, and to defend, through counsel of its own choosing and
        at
        its own cost and expense, any third party action which may be brought in
        connection therewith; provided, that the Indemnifying Parties shall be required
        to keep the Indemnified Party fully and currently informed of all settlement
        negotiations and of the progress of any litigation; and provided further
        that
        the Indemnified Party shall have the right to fully participate in the defense
        or settlement of any Claim at its own expense, except for its reasonable
        attorneys fees which shall be paid by the Indemnifying Parties, if a third
        legal
        counsel chosen by the legal counsel of the Indemnified Party determines that:
        (a) there are or may be legal defenses available to such Indemnified Party
        that
        are different from or additional to those available to Indemnifying Parties
        and
        which could not be adequately advanced by counsel chosen by the Indemnified
        Party, or (b) a conflict or potential conflict exists between Indemnifying
        Parties and such Indemnified Party that would make such separate representation
        advisable. The Indemnifying Parties shall not, without the prior written
        consent
        of the Indemnified Party, which consent shall not unreasonably be withheld,
        settle or compromise or consent to the entry of any judgment in any pending
        or
        the threatened claim, action or proceeding to which such Indemnified Party
        is a
        party.

      

      
        
          
          

        

        
          -
            11
            -

          
            

          

        

        
          
          

        

      

       

      5.5 Cooperation
        of Indemnified Party.
        The
        Indemnified Party shall cooperate with the Indemnifying Parties in connection
        with the settlement or defense of any Claim. In addition, except as hereinafter
        provided, the Indemnified Party shall not pay or voluntarily permit the
        determination of any Claim while the Indemnifying Party is negotiating the
        settlement thereof or litigating the Claim, except with the prior written
        consent of the Indemnifying Party.

      

      5.6 Assumption
        by Indemnified Party.
        Notwithstanding anything contained herein to the contrary, the Indemnified
        Party
        may, by releasing the Indemnifying Party from liability to him or it with
        respect to such Claim, take over and assume the settlement and defense of
        any
        Claim.

      

      5.7 Purchaser
        Indemnification.
        In no
        event shall the Purchaser have any liability whatsoever to the Company Parties
        in connection with Section 5 of this Agreement or otherwise.

      

      6. General
        Provisions.

      

      6.1 Expenses.
        Each
        party shall pay its own legal, accounting and other expenses.

      

      6.2 Headings.
        Headings are for convenience and are not admissible as to
        construction.

      

      6.3 Notices.
        All
        notices or other communications required or permitted to be given pursuant
        to
        this Agreement shall be in writing and shall be considered as properly given
        or
        made if hand delivered, mailed from within the United States by certified
        or
        registered mail, or sent by overnight courier or delivery service or facsimile
        transmission to the applicable address appearing in the preamble to this
        Agreement, or to such other address as either party may have designated by
        like
        notice forwarded to the other party hereto. All notices, except notices of
        change of address, shall be deemed given three business days after they have
        been mailed by certified of registered mail, one business day if they have
        been
        mailed by overnight courier or delivery service, or immediately if they have
        been hand delivered or faxed, and notices of change of address shall be deemed
        given when received. Notice shall be sent to the following addresses, unless
        otherwise changed as set forth herein:

      

      If
        to
        Shareholder:     David
        E.
        Smith

                         ______________________    

                              
        ______________________    

      

       

      
        
          
          

        

        
          -
            12
            -

          
            

          

        

        
          
          

        

      

       

      If
        to
        Purchaser:                               
        Speedemissions,
        Inc.

                                                                
        Attn: Rich Parlontieri

                                                                
        1029
        Peachtree Parkway, Suite 310

                                                                
        Peachtree
        City, Georgia 30269

      

      6.4 Severability.
        Every
        provision of this Agreement is intended to be severable. If any term or
        provision hereof is illegal or invalid for any reason whatever, such illegality
        or invalidity shall not affect the validity of the remainder of this
        Agreement.

      

      6.5 Application
        of Law.
        This
        Agreement, and the application or interpretation thereof, shall be governed
        exclusively by its terms and by the laws of the State of Texas.

      

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

      

      6.7 Arbitration.
        Any
        controversy or claim arising out of or relating to this Agreement or any
        related
        agreement shall be settled by arbitration in accordance with the following
        provisions:

      

      6.7.1 The
        agreement of the parties to arbitrate covers all disputes of every kind relating
        to or arising out of this Agreement or any of the Contemplated Transactions.
        Disputes include actions for breach of contract with respect to this Agreement,
        as well as any claim based upon tort or any other causes of action relating
        to
        the Contemplated Transactions, such as claims based upon an allegation of
        fraud
        or misrepresentation and claims based upon a federal or state statute. In
        addition, the arbitrators selected according to procedures set forth below
        shall
        determine the arbitrability of any matter brought to them, and their decision
        shall be final and binding on the parties, and judgment upon the award may
        be
        entered in any court of competent jurisdiction in the United States. The
        forum
        for the arbitration shall be Houston, Texas and the governing law for the
        arbitration shall be the law of the State of Texas, without reference to
        its
        conflicts of laws provisions. There shall be three arbitrators, unless the
        parties are able to agree on a single arbitrator. In the absence of such
        agreement within 10 days after the initiation of an arbitration proceeding,
        Shareholder shall select one arbitrator and Purchaser shall select one
        arbitrator, and those two arbitrators shall then select, within 10 days,
        a third
        arbitrator. If those two arbitrators are unable to select a third arbitrator
        within such 10 day period, a third arbitrator shall be appointed by the
        commercial panel of the American Arbitration Association. The decision in
        writing of at least two of the three arbitrators shall be final and binding
        upon
        the parties. Each party shall bear its own fees and expenses with respect
        to the
        arbitration and any proceeding related thereto and the parties shall share
        equally the fees and expenses of the American Arbitration Association and
        the
        arbitrators.

      

      6.7.2 The
        arbitration shall be administered by the American Arbitration Association.
        The
        rules of arbitration shall be the Commercial Arbitration Rules of the American
        Arbitration Association, as modified by any other instructions that the parties
        may agree upon at the time, except that each party shall have the right to
        conduct discovery in any manner and to the extent authorized by the Federal
        Rules of Civil Procedure as interpreted by the federal courts. If there is
        any
        conflict between those rules and the provisions of this section, the provisions
        of this section shall prevail.

      

      
        
          
          

        

        
          -
            13
            -

          
            

          

        

        
          
          

        

      

       

      6.7.3 The
        arbitrators shall be bound by and shall strictly enforce the terms of this
        Agreement and may not limit, expand or otherwise modify its terms. The
        arbitrators shall not have power to award damages in connection with any
        dispute
        in excess of actual compensatory damages and shall not multiply actual damages
        or award consequential or punitive damages.

      

      6.8 No
        Third-Party Beneficiaries.
        Nothing
        expressed or referred to in this Agreement will be construed to give any
        person
        or entity other than the parties to this Agreement any legal or equitable
        right,
        remedy or claim under or with respect to this Agreement or any provision
        of this
        Agreement.

      

      6.9 Legal
        Fees and Costs.
        If a
        legal action is initiated by any party to this Agreement against another,
        arising out of or relating to the alleged performance or non-performance
        of any
        right or obligation established hereunder, or any dispute concerning the
        same,
        each party shall
        pay
        its own legal
        fees and
        costs.

      

      6.10 Binding
        Agreements; Non Assignability.
        Each of
        the provisions and agreements herein contained shall be binding upon and
        inure
        to the benefit of the personal representatives, heirs, devisees and successors
        of the respective parties hereto; but none of the rights or obligations
        attaching to either party hereunder shall be assignable, unless specifically
        noted.

      

      6.11 Entire
        Agreement; Waiver.
        This
        Agreement of the parties hereto with respect to the subject matter hereof,
        and
        no amendment, waiver, modification or alteration of the terms hereof shall
        be
        binding unless the same be in writing, dated subsequent to the date hereof
        and
        duly approved and executed by each party. No failure or delay by any party
        in
        exercising any right, power or privilege hereunder shall operate as a waiver
        thereof, nor shall any single or partial exercise thereof preclude any other
        or
        further exercise thereof of the exercise of any other right, power or privilege.
        The rights and remedies herein shall be cumulative and not exclusive of any
        right or remedies provided by law.

      

      IN
        WITNESS WHEREOF,
        the
        parties have executed this Agreement effective as of the day and year first
        above written.

      

      

      
        	"PURCHASER"	"COMPANY"
	 	 
	SPEEDEMISSIONS, INC.	MR. STICKER, INC.
	 	 
	 	 
	By: /s/ Rich Parlontieri	/s/
                David E. Smith
	
                
                  

                

                Rich
                  Parlontieri, President/CEO

              	
                
David
                E. Smith, President

      

       

      
        
          
          

        

        
          -
            14
            -

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 
	 	"SHAREHOLDER"
	 
 	 
 	 
 
	 	By:  	/s/
                Grant Smith 
	 	
                
Grant
                Smith

      

       

      
         

        
          	 	 	 
	 	"SHAREHOLDER"
	 
 	 
 	 
 
	 	By:  	/s/
                  Barbara Smith 
	 	
                  
Barbara
                  Smith

        

         

         

        
           

          
            	 	 	 
	 	"SHAREHOLDER"
	 
 	 
 	 
 
	 	By:  	/s/
                    David E. Smith 
	 	
                    
David
                    E. Smith

          

           

           

        

      

      
        
          
          

        

        
          -
            15
            -

          
            

          

        

        
          
          

        

      

      LIST
        OF SCHEDULES

      

      

      
        
          	Schedule 1.2	
                  Excluded
                    Assets

                	(enclosed)
	 	 	 
	Schedule 2.5	Premises	(received and on
                  file)
	 	 	 
	Schedule 2.5.1	Equipment	(received and on
                  file)
	 	 	 
	Schedule 2.10.1	Personnel	(received and on
                  file)

        

      

        

      
        
          
          

        

        
          -
            16
            -

          
            

          

        

        
          
          

        

      

      SCHEDULE
        1.2

      

      EXCLUDED
        ASSETS

      

      

      
        	1.2.1	
                3⁄4
                  ton Dodge Ram diesel w/4-wheel drive - VIN 3B7KF23621G206615 /
                  Texas
                  License No. 4WGR59

              

      

      

      
        	1.2.2	
                3⁄4
                  ton Dodge Ram diesel w/4-wheel drive - VIN 3DFKVU28683G734179 /
                  Texas
                  License No. 7YRK72

              

      

      

      
        
          	1.2.3	
                  Property
                    located at 15113 Welcome Lane, Houston, Texas
                    77014

                

        

        
          	 	 

        

        
          	 	
                  Property
                    is 0.33554 acres of a 3.14896 tract of land in the H. Simmins
                    Survey,
                    A.645 of Harris
                    County

                

        

      

       

      
        
          	1.2.4	
                  Property
                    located at 2690 FM 1960, Houston, Texas
                    77073

                

        

        
          	 	 

        

        
          	 	
                  Property
                    is 0.4782 acres of land out of the T.B. unrestricted Reserve
                    ("A")
                    jurisdiction of Harris
                    County

                

        

      

      

       

      
        
          
          

        

        
          -
            17
            -

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