Document:

exv10w5

 

Exhibit 10.5

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between STARWOOD HOTELS & RESORTS
WORLDWIDE, INC., a Maryland corporation (the “Company”), and BRUCE W. DUNCAN (“Executive”), and is
dated as of August 2, 2007.

     WHEREAS, the Company wishes to employ Executive, and Executive wishes to be employed by the
Company on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, the Company and Executive agree as follows:

ARTICLE 1:

EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. The Company agrees to employ Executive and Executive
agrees to be employed by the Company on an interim basis, beginning as of April 1, 2007 (the
“Effective Date”) and continuing for the period of time set forth in Article 2 of this Agreement,
subject to the terms and conditions of this Agreement.

     1.2 Position. From and after the Effective Date, the Company shall employ Executive
in the position of Chief Executive Officer, or in such other position as the parties mutually may
agree. The Executive acknowledges that his prospective employment will be subject to all policies
and practices of the Company as may currently exist or as may be curtailed, modified or implemented
from time to time. As Chief Executive Officer, Executive shall be the senior-most executive
officer of the Company, reporting directly to the Board, with the duties, responsibilities and
authority customarily associated with and consistent with such position

     1.3 Duties and Services. Executive agrees to serve in the position referred to in
paragraph 1.2 and to perform diligently and to the best of his abilities the duties and services
appertaining to such offices as well as such additional duties and services appropriate to such
offices which the parties mutually may agree upon from time to time.

     1.4 Executive Obligations. Executive shall devote his full business time, attention
and best efforts to the performance of his duties under this Agreement and shall not engage in any
other business activities except with the prior written approval of the Board; provided, however,
that Executive may engage in other activities that do not conflict with or interfere with the
performance of his duties and responsibilities hereunder, including, without limitation, (a)
investing his assets and funds, so long as the business of any such entity in which he shall make
his investments shall not be in direct competition with that of the Company (except that Executive
may invest in an entity in competition with the Company if its stock is listed for trading on a
national stock exchange or traded in the over-the-counter market and Executive’s holdings have an
original cost less than $5,000,000 and represent less than five percent of its outstanding stock)
and (b) being involved in educational, civic and charitable activities which do not unreasonably
interfere with the services to be rendered by Executive hereunder. It is acknowledged and agreed
that Executive may not serve during the Term (as defined in Section

 

 

2) as a director of any board of which he is not already a member without the prior written
approval of the Board; however, Executive may continue to serve on any board of which he was
already a member as of the Effective Date of this Agreement.

     1.5 Chicago Office. In addition to Executive’s office at the Company’s headquarters
in White Plains, New York (the “Company’s Headquarters Office”), the Company agrees to maintain an
office in the Chicago area (the “Chicago Office”), which office shall be in a location reasonably
acceptable to Executive. In addition to Executive, the Chicago Office shall be staffed with an
executive secretary to support Executive. Executive agrees and acknowledges that the headquarters
of the Company shall remain in White Plains, New York and that no corporate functions, other than
those related to Executive as provided herein, will be moved from the White Plains corporate
headquarters, except as may otherwise be approved by the Board.

ARTICLE 2:

TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated, the term of this Agreement shall commence on the
Effective Date and shall end on March 31, 2008 (the “Term”). It is understood and agreed that
Executive’s appointment is intended to be on an interim basis.

     2.2 Company’s Right to Terminate.

     (a) Notwithstanding the provisions of paragraph 2.1 and 4.1, the Company shall have the
right to terminate Executive’s employment under this Agreement at any time for any of the
following reasons:

     (i) upon Executive’s death;

     (ii) upon Executive’s becoming incapacitated for a period of at least 180 days
by accident, sickness or other circumstance which renders him mentally or physically
incapable of performing the essential functions of the duties and services required
of him hereunder, with or without reasonable accommodation, on a full-time basis
during such period;

     (iii) for Cause;

     (iv) without Cause, which shall include the Company’s appointment of a
successor Chief Executive Officer, in the sole discretion of the Board.

     (b) As used in this Agreement, the term “Cause” shall mean any one or more of the
following: (i) fraud, misappropriation, embezzlement, or sexual (or other forms of)
harassment in connection with Executive’s duties for the Company or any affiliate; (ii) the
Executive’s (a) intentional misconduct in connection with the Company’ business, (b) refusal
to follow the reasonable directions of the Company or (c) breach of the terms of this
Agreement, provided that the Company shall notify the Executive of the acts deemed to
constitute such intentional misconduct, refusal or breach in writing; (iii) a conviction or
plea of guilty or nolo contendere to a felony (other than one arising from the operation of
a motor vehicle that does not involve an accident involving injury to a third party); (iv)

 

 

engaging in an act of gross negligence in connection with the Company’s business (which
term shall not include good faith business judgments made in the normal course of the
Executive’s duties); or (v) the Executive’s failure to observe and comply with the Company’s
policies, codes and/or Executive’s covenants contained in this Agreement, including, but not
limited to, Executive’s confidentiality and non-solicitation obligations.

     2.3 Executive’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Executive shall have the right to terminate his employment under this Agreement as follows:

     (a) for “Good Reason”, which shall mean a reduction in the Executive’s Base Salary as
provided for under this Agreement, provided that Good Reason shall not include an act which
is cured by the Company within 30 days after receipt by the Company of written notice from
Executive identifying in reasonable detail the acts or failures allegedly constituting Good
Reason hereunder, provided further that if Executive does not deliver to the Company a
notice of termination within the sixty (60) day period after Executive has knowledge that an
event constituting Good Reason has occurred, such event will no longer constitute Good
Reason.

     (b) without Good Reason, in the sole discretion of Executive.

     2.4 Notice of Termination. If the Company or Executive desires to terminate
Executive’s employment hereunder at any time prior to expiration of the Term as provided above in
this Article 2, it or he shall do so by giving no less than 15 days written notice to the other
party that it or he has elected to terminate Executive’s employment hereunder and stating the
effective date (which shall not be December 31 of any year) and reason for such termination,
provided that no such action shall alter or amend any other provisions hereof or rights arising
hereunder. Upon any termination of Executive’s employment hereunder for whatever reason, Executive
shall, if and to the extent requested to do so by the Board, forthwith resign any and all positions
he may then be holding with the Company or any subsidiary of the Company other than his position on
the Board of Directors.

ARTICLE 3:

COMPENSATION AND BENEFITS

     3.1 Base Salary. Commencing on the Effective Date, during the period of this
Agreement, Executive shall receive an annual base salary (“Base Salary”) equal to $1,000,000
(partial years pro rated). Executive’s annual Base Salary shall be paid in equal installments in
accordance with the Company’s standard policy regarding payment of compensation to executives but
no less frequently than semi-monthly. Executive shall not be eligible to receive any compensation
for his services as a member of the Company’s Board of Directors during the Term of the Agreement.

     3.2 Annual Incentive Program, Restricted Stock Awards and Stock Option Grants.

     (a) Annual Incentive Plan. During the Term, Executive also shall be eligible
to receive cash incentive compensation (“Bonus”) as follows: Executive shall participate in
the Starwood Annual Incentive Plan (AIP) or, at the election of the Board’s

 

 

compensation committee, the Annual Incentive Plan for Certain Executives (AIPCE)
maintained by the Company for senior executive officers on and after the Effective Date. In
either case, Executive shall participate at a level which is not less than the maximum
participation level made available to any Company senior executive (determined without
regard to period of service or similar criteria that might otherwise be necessary to entitle
Executive to such level of participation); provided, however, that conditioned upon
attainment of target performance measure requirements based on one or more performance
measures set forth in the AIP, the target Bonus (“Target Bonus”) for each calendar year
during the Term for which Executive shall be eligible shall be $2,000,000 (partial years pro
rated). In the event that changes are made to any of the incentive plans, the changes will
apply to the Executive as they do other employees of the Company. The Executive
acknowledges and agrees that the AIP and AIPCE provide that a portion of the Executive’s
annual bonus will be deferred and payable in stock or stock units of the Company and that a
portion of the Executive’s annual Bonus will be deferred in accordance with the then current
practices of the Company and shall vest pursuant to plan provisions applicable to Directors.

The Executive and the Company agree that payment of the Executive’s 2007 bonus will be
delivered according to the regular annual incentive plan payout schedule and his bonus will
assume he was employed with the Company for the full year. An annual bonus shall not be
deemed earned by the Executive until the Company has determined his entitlement to such
bonus. The Executive acknowledges and agrees that, subject to Paragraph 4.1 below, under no
circumstances would the Company pay a pro-rata bonus upon departure.

     (b) Long Term Incentive Compensation. On May 24, 2007, the Company awarded
Executive, pursuant to the terms of the Company’s 2004 Long-Term Incentive Compensation Plan
(the “2004 LTIP”), 14,742 shares of restricted stock and 44,225 options to purchase shares
of common stock. The terms and conditions governing such awards are set forth in the award
agreements delivered to Executive.

     (c) Nothing in the foregoing provisions of this Paragraph 3.2 shall be deemed to
prevent the Board in its sole discretion from awarding any additional or other amounts of
cash, restricted stock units or options or other equity based awards in respect of any whole
or partial year during the Term.

     3.3 Vacation and Sick Leave. During each year of his employment, Executive shall be
entitled to vacation and sick leave benefits under the Company’s policies equal to the maximum
available to any Company senior executive, determined without regard to the period of service that
might otherwise be necessary to entitle Executive to such vacation or sick leave under standard
Company policy.

     3.4 Other Benefits.

     (a) Other Company Benefits. The Executive shall be eligible to participate in the
Company’s “StarShare” employee benefit programs and the Company 401(k) plan on the first day
of the month following 90 days of employment. The Executive and his eligible dependents will
be covered by these benefits as per the Executive’s coverage

 

 

elections. Following the termination of this Agreement by the Company without cause or
by the Executive for good reason, Executive shall be permitted to participate in the
Company’s retiree welfare benefit plans, as may be provided by the Company to other retired
executive employees from time to time pursuant to the terms and conditions of such welfare
benefit plans, as though he had satisfied any otherwise applicable eligibility provisions of
such plans.

     (b) Driver and Car Service. The Company will provide Executive the use of a driver and
car service in New York for business purposes.

     (c) Business and Entertainment Expenses. Subject to the Company’s standard policies
and procedures with respect to expense reimbursement as applied to its senior executive
employees generally, the Company shall reimburse Executive for, or pay on behalf of
Executive, reasonable and appropriate expenses incurred by Executive for business-related
purposes, including reasonable dues and fees to industry and professional organizations,
costs of entertainment and business development and business-related travel and to other
locations on Company business. The Executive shall be entitled to use first-class travel
accommodations for such business-related travel.

     (d) Company Aircraft. The Company shall make available to Executive a Company-owned or
leased private aircraft for business-related travel, including for travel to and from
Executive’s primary residence in Chicago, Illinois. The use by Executive of any Company
aircraft shall at all times be subject to Company policies and procedures and to the
availability of such aircraft.

     (e) Income Tax. The Company shall reimburse Executive for any additional personal
income tax liability, on a grossed-up basis, related to or resulting from payments to
Executive during the Term to the extent that in executing his duties under this Agreement,
Executive’s tax residency status is deemed changed, in accordance with applicable law, from
Illinois to New York (or Connecticut, if applicable).

     (f) Temporary Housing. The Company shall provide temporary housing in or around the
New York/Connecticut area during the Term, which may include accommodations at a hotel that
is owned, managed or franchised by the Company.

     3.5 Withholding. The Base Salary and all other payments, grants and awards to
Executive for his services to the Company shall be subject to all withholding and deductions
required by federal, state or other law (including those authorized by Executive but not otherwise
required by law), including but not limited to state, federal and local income taxes, unemployment
tax, Medicare and FICA, together with such deductions as Executive may from time to time
specifically authorize under any employee benefit program which may be adopted by the Company for
the benefit of its senior executives or Executive.

ARTICLE 4:

EFFECT OF TERMINATION ON COMPENSATION

     4.1 Severance Package.

 

 

     (a) In the event Executive’s employment under this Agreement is terminated either (A)
by the Company without Cause under Paragraph 2.2(a)(iv) or (B) by Executive for Good Reason
under Paragraph 2.3(a), then, subject to Paragraph 4.2, as and for a severance package the
Company shall provide to the Executive (i) Executive’s Base Salary through the date of
termination, (ii) provided that Executive has served as Chief Executive Officer of the
Company for at least three (3) months prior to his termination, a pro rated portion of
Executive’s Target Bonus through the date of termination, payable in accordance with, and
subject to, the terms of the applicable bonus plan and (iii) 50% of Executive’s then
unvested stock options and restricted stock shall immediately vest as of the date of
termination. The remaining 50% of Executive’s then unvested stock options and restricted
stock shall vest in accordance with the plan provisions applicable to Directors.

     (b) In the event Executive’s employment under this Agreement is terminated because of
the death or permanent disability of the Executive under Paragraph 2.2(a)(i) or 2.2(a)(ii),
then, subject to Paragraph 4.2, as and for a severance package the Company shall provide to
the Executive (i) Executive’s Base Salary through the date of termination, (ii) Executive’s
Base Salary for a period of three (3) months following the date of termination, (iii) a pro
rated portion of Executive’s then Target Bonus and (iv) all of Executive’s unvested
restricted stock and stock options shall immediately vest as of the date of termination.

     (c) In the event Executive’s employment under this Agreement is terminated by the
Company without Cause or by Executive for Good Reason within 12 months after a Change in
Control (as defined below), then, subject to Paragraph 4.2, as and for a severance package
the Company shall provide to the Executive (i) Executive’s Base Salary through the date of
termination, (ii) a lump sum payment equal to one times the sum of Executive’s (a) Base
Salary and (b) Target Bonus and (iii) all of Executive’s unvested restricted stock and stock
options shall immediately vest as of the date of termination.

     (d) As used in this Agreement, “Change in Control” means:

     (i) Any individual, entity or group (a “Person”), including any “person” within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Act”), is or becomes the beneficial owner within the meaning of
Rule 13d-3 promulgated under the Act (but without regard to any time period
specified in Rule 13d-3(d)(1)(i)), of 33-1/3 percent or more of either (i) then
outstanding shares of common stock, par value $.01 per share, of the Company
(“Common Stock”), the “Outstanding Shares”) or (ii) the combined voting power of
then outstanding securities of the Company entitled to vote generally in the
election of Directors (the “Outstanding Company Voting Securities”); excluding,
however, (A) any acquisition by the Company or (B) any acquisition by an employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company;

 

 

     (ii) Individuals who, as of the Effective Date, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of such
Board; provided that any individual who becomes a Director of the Company subsequent
to the Effective Date whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the Directors then
comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and
provided further, that any individual who was initially elected as a Director of the
Company as a result of an actual or threatened solicitation by a Person other than
the Board for the purpose of opposing a solicitation by any other Person with
respect to the election or removal of directors, or any other actual or threatened
solicitation of proxies or consents by or on behalf of any Person other than the
Board shall not be deemed a member of the Incumbent Board;

     (iii) Consummation by the Company of a reorganization, merger, or consolidation
or sale of all or substantially all of the assets of the Company (a “Corporate
Transaction”); excluding, however, a Corporate Transaction pursuant to which (1) all
or substantially all of the individuals or entities who are the beneficial owners,
respectively, of the Outstanding Shares and the Outstanding Company Voting
Securities immediately prior to such Corporate Transaction will beneficially own,
directly or indirectly, more than 66-2/3 percent of, respectively, the outstanding
            shares of common stock, and the combined voting power of the outstanding securities
of such corporation entitled to vote generally in the election of directors, as the
case may be, of the corporation resulting from such Corporate Transaction
(including, without limitation, a corporation which as a result of such transaction
owns the Company or all or substantially all of the Company’s assets either directly
or indirectly) in substantially the same proportions relative to each other as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding
Shares and the Outstanding Company Voting Securities, as the case may be, (2) no
Person (other than: the Company, any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company,
the corporation resulting from such Corporate Transaction, and any Person which
beneficially owned, immediately prior to such Corporate Transaction, directly or
indirectly, 33-1/3 percent or more of the Outstanding Shares or the Outstanding
Company Voting Securities, as the case may be) will beneficially own, directly or
indirectly, 33-1/3 percent or more of, respectively, the outstanding shares of
common stock of the corporation resulting from such Corporate Transaction or the
combined voting power of the outstanding securities of such corporation entitled to
vote generally in the election of directors and (3) individuals who were members of
the Incumbent Board will constitute at least a majority of the members of the board
of directors of the corporation resulting from such Corporate Transaction; or

     (iv) Approval by the stockholders of the Company of a plan of complete
liquidation or dissolution of the Company.

 

 

     4.2 Liquidated Damages. The parties agree that the above severance package shall be
Executive’s sole and exclusive monetary remedy under this Agreement by reason of termination of
Executive’s employment by the Company other than for Cause or by Executive for Good Reason, it
being agreed that as his actual damages under this Agreement would be difficult to measure or
quantify and would be impracticable to determine, such amount shall constitute liquidated damages
under this Agreement for Executive by reason of such termination by Executive or the Company. Any
such payments shall not be reduced or limited by amounts Executive might earn or be able to earn
from other employment or ventures. Notwithstanding the foregoing, upon any termination of
Executive’s employment and the Company’s payment to Executive of the amounts required to be paid
under Paragraph 4.1, Executive shall execute a release of claims arising out of Executive’s
employment with, and termination of employment from, the Company in the form attached hereto a
Exhibit 4.2 (adjusted as necessary to conform to then existing legal requirements); and all
payments and benefits provided under the above Paragraph 4.1 shall be subject to Executive’s
execution and non-revocation of such a release.

     4.3 Rights on Termination for Cause or Without Good Reason. No severance payments
shall be due or owing to Executive in the event that the Company shall fully terminate Executive’s
employment for Cause or Executive shall terminate his employment without Good Reason; provided,
however, that Executive shall be paid all accrued but unpaid Base Salary through the date of such
termination of employment.

     4.4 Certain Additional Payments by the Company. Notwithstanding anything to the
contrary in this Agreement, if any payment, distribution or provision of a benefit by the Company
to or for the benefit of Executive, whether paid or payable, distributed or distributable or
provided or to be provided pursuant to the terms of Section 4.1(c) of this Agreement (a “Payment”),
would be subject to an excise or other special additional tax that would not have been imposed
absent such Payment (including, without limitation, any excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended), or any interest or penalties with respect to such
excise or other additional tax (such excise or other additional tax, together with any such
interest or penalties, are hereinafter collectively referred to as the “Excise Tax”), the Company
shall pay to Executive an additional payment (a “Gross-up Payment”) in an amount such that after
payment by Executive of all taxes (including any interest or penalties imposed with respect to such
taxes), including any income taxes and Excise Taxes imposed on any Gross-up Payment, Executive
retains an amount of the Gross-up Payment (taking into account any similar gross-up payments to
Executive under any stock incentive or other benefit plan or program of the Company) equal to the
Excise Tax imposed upon the Payments. The Company and Executive shall make an initial
determination as to whether a Gross-up Payment is required and the amount of any such Gross-up
Payment. Executive shall notify the Company in writing of any claim by the Internal Revenue
Service which, if successful, would require the Company to make a Gross-up Payment (or a Gross-up
Payment in excess of that, if any, initially determined by the Company and Executive) within ten
business days after the receipt of such claim. The Company shall notify Executive in writing at
least ten business days prior to the due date of any response required with respect to such claim
if it plans to contest the claim. If the Company decides to contest such claim, Executive shall
cooperate fully with the Company in such action; provided, however, the Company shall bear and pay
directly or indirectly all costs and expenses (including additional interest and penalties)
incurred in connection with such action and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income tax,

 

 

including interest and penalties with respect thereto, imposed as a result of the Company’s
action. If Executive receives a refund of any amount paid by the Company with respect to such
claim, Executive shall promptly pay such refund to the Company. If the Company fails to timely
notify Executive whether it will contest such claim or the Company determines not to contest such
claim, then the Company shall immediately pay to Executive the portion of such claim, if any, which
it has not previously paid to Executive.

ARTICLE 5:

REPRESENTATIONS AND WARRANTIES; 

NON-COMPETE AND NON-SOLICITATION

     5.1 Representations and Warranties.

     (a) Representation and Warranty of Executive. Executive hereby represents and
warrants to the Company that he is not aware of any presently existing fact, circumstance or
event (including, but without limitation, any health condition or legal constraint) which is
not known to the Company which would preclude or restrict him from providing to the Company
the services contemplated by this Agreement, or which would give rise to any breach of any
term or provision hereof, or which could otherwise result in the termination of his
employment hereunder for Cause (as such term is herein defined).

     (b) Representation and Warranty of the Company. The Company hereby represents
and warrants to Executive that (i) it is not aware of any fact, circumstance or event which
is not known to Executive which would give rise to any breach of any term or provision of
this Agreement, or which would form the basis for any claim or allegation that Executive’s
employment hereunder could be terminated for Cause hereunder; and (ii) it has received all
authorizations and has taken all actions, necessary or appropriate for the due execution,
delivery and performance of this Agreement, and all options and restricted stock units
described in Article 3.

     5.2 Non-Compete and Non-Solicitation.

     (a) General. Executive acknowledges that in the course of Executive’s
employment with the Company the Executive will become familiar with trade secrets and other
confidential information concerning the Company and its subsidiaries and that Executive’s
services will be of special, unique and extraordinary value to the Company and its
subsidiaries.

     (b) Noncompetition. Executive agrees that during the period of Executive’s
employment with the Company and for a period of one year thereafter (the “Noncompetition
Period”), the Executive shall not, without the express written consent of the Board of
Directors of the Company, directly or indirectly, whether for his own account or for the
account of any other person or entity, engage, participate or make any financial investment
in, become employed by or render advisory services or otherwise assist in or be interested
in any capacity to any business (a “Competing Business”) in which Executive was involved or
had knowledge was being conducted or planned by the

 

 

Company or any of its subsidiaries, as of the termination of Executive’s employment, in
any geographic area in which the Company or any of its subsidiaries is then conducting such
business; provided, however, that after termination of employment nothing in this paragraph
5.2(b) shall prevent Executive from being employed as Chief Executive Officer of an
enterprise which is engaged in a Competing Business if such enterprise is not one of those
set forth in Exhibit 5.2.

     (c) Nonsolicitation. Executive further agrees that during the Noncompetition
Period, Executive shall not, without the express written consent of the Board of Directors
of the Company, directly or indirectly, whether for his own account or for the account of
any other person or entity, other than the Company, hire, employ, retain or solicit the
hire, employment or retention of any employee of the Company or its affiliates, or any
person who was such an employee at any time during the twelve (12) month period preceding
the Executive’s termination of employment with the Company or its affiliates, or otherwise
persuade, induce or encourage, or attempt to persuade, induce or encourage any such person
or consultant to the Company to terminate his, her or its relationship with the Company.

     (d) Exceptions. Nothing in this Paragraph 5.2 shall prohibit Executive from
being (i) a stockholder in a mutual fund or a diversified investment company; (ii) an owner
of not more than five percent of the outstanding stock of any class of a corporation whose
securities are publicly traded so long as Executive has no active participation in the
business of such corporation.; and (iii) an owner of any single asset hotels.

     (e) Reformation. If, at any time of enforcement of this Paragraph 5.2 the
Arbitrator (as defined in Paragraph 6.1(a)) holds that the restrictions stated herein are
unreasonable under circumstances then existing, the parties hereto agree that the maximum
period, scope or geographical area reasonable under such circumstances shall be substituted
for the stated period, scope or area and that the Arbitrator shall be allowed to revise the
restrictions contained herein to cover the maximum period, scope and area permitted by law.
This Agreement shall not authorize the Arbitrator to increase or broaden any of the
restrictions in this Paragraph 5.2.

     5.3 Confidentiality. Executive shall not, at any time during the Term or thereafter,
make use of or disclose, directly or indirectly, any (i) trade secret or other confidential or
secret information of the Company or of any of its subsidiaries or (ii) other technical, business,
proprietary or financial information of the Company or of any of its subsidiaries not available to
the public generally or to the competitors of the Company or to the competitors of any of its
subsidiaries (“Confidential Information”), except to the extent that such Confidential Information
(a) becomes a matter of public record or is published in a newspaper, magazine or other periodical
or on electronic or other media available to the general public, other than as a result of any act
or omission of Executive, (b) is required to be disclosed by any law, regulation or order of any
court or regulatory commission, department or agency, provided that Executive gives prompt notice
of such requirement to the Company to enable the Company to seek an appropriate protective order,
or (c) is required to be used or disclosed by Executive to perform properly Executive’s duties
under this Agreement. Promptly following the end of the Term, Executive shall surrender to the
Company all records, memoranda, notes, plans, reports,

 

 

computer tapes and software and other documents and data which constitute Confidential
Information which Executive may then possess or have under Executive’s control (together with all
copies thereof).

     5.4 Intellectual Property. Executive shall not, at any time, have or claim any right,
title or interest in any trade name, patent, trademark, copyright, trade secret, intellectual
property, methodologies, technologies or other similar rights relating to the Company’s business
(collectively, “Intellectual Property”) belonging to the Company or any of its affiliates and shall
not have or claim any right, title or interest in or to any material or matter of any kind prepared
for or used in connection with the business or promotion of the Company or any of its affiliates,
whether produced, prepared or published in whole or in part by Executive or by the Company or any
of its affiliates. All Intellectual Property that is conceived, devised, made, developed or
perfected by Executive, alone or with others, during Executive’s employment that is related in any
way to the Company’s or any of its affiliates’ business or is devised, made, developed or perfected
utilizing equipment or facilities of the Company or its affiliates shall be promptly disclosed to
the Board, are works for hire and become the sole, absolute and exclusive property of the Company.
If and to the extent that any of such Intellectual Property should be determined for any reason not
to be a work for hire, Executive hereby assigns to the Company all of Executive’s right, title and
interest in and to such Intellectual Property. At the reasonable request and expense of the
Company but without charge to the Company, whether during or at any time after Executive’s
employment with the Company, Executive shall cooperate fully with the Company and its affiliates in
the securing of any trade name, patent, trademark, copyright or intellectual property protection or
other similar rights in the United States and in foreign countries, including without limitation,
the execution and delivery of assignments, patent applications and other documents or papers.

     5.5 Enforcement. The parties hereto agree that the Company and its subsidiaries would
be damaged irreparably in the event that any provision of Paragraphs 5.2, 5.3 or 5.4 of this
Agreement were not performed in accordance with its terms or were otherwise breached and that money
damages would be an inadequate remedy for any such nonperformance or breach. Accordingly, the
Company and its successors and permitted assigns shall be entitled, in addition to other rights and
remedies existing in their favor, to seek an injunction or injunctions to prevent any breach or
threatened breach of any of such provisions and to enforce such provisions specifically (without
posting a bond or other security). Executive agrees that Executive will submit to the personal
jurisdiction of the courts of the State of New York in any action by the Company to enforce an
arbitration award against Executive or to obtain interim injunctive or other relief pending an
arbitration decision.

ARTICLE 6:

ARBITRATION

     6.1 Arbitration. In the event of any controversy, dispute or claim arising out of or
related to this Agreement or Executive’s employment by the Company, the parties shall negotiate in
good faith in an attempt to reach a mutually acceptable settlement of such dispute. If
negotiations in good faith do not result in a settlement of any such controversy, dispute or claim,
it shall, except as otherwise provided for herein be finally settled by expedited arbitration
conducted by a single arbitrator selected as hereinafter provided (the “Arbitrator”) in accordance

 

 

with the National Rules of the American Arbitration Association (“National Rules”), subject to
the following (the parties hereby agreeing that, notwithstanding the provisions of Rule 1 of the
National Rules, in the event that there is a conflict between the provisions of the National Rules
and the provisions of this Agreement, the provisions of this Agreement shall control):

     (a) The Arbitrator shall be determined from a list of names of five impartial
arbitrators each of whom shall be an attorney experienced in arbitration matters concerning
executive employment disputes, supplied by the AAA chosen by Executive and the Company each
in turn striking a name from the list until one name remains (with the Company being the
first to strike a name).

     (b) The expenses of the arbitration shall be borne by the Company; and the Company
shall bear its own legal fees and expenses and pay, at least monthly, all of Executive’s
legal fees and expenses incurred in connection with such arbitration, except that Executive
shall have to reimburse the Company for his legal fees and expenses if the arbitrator finds
that Executive brought an action in bad faith.

     (c) The Arbitrator shall determine whether and to what extent any party shall be
entitled to damages under this Agreement; provided that no party shall be entitled to
punitive or consequential damages (including, in the case of the Company, any claim for
alleged lost profits or other damages that would have been avoided had Executive remained an
employee), and each party waives all such rights, if any.

     (d) The Arbitrator shall not have the power to add to nor modify any of the terms or
conditions of this Agreement. The Arbitrator’s decision shall not go beyond what is
necessary for the interpretation and application of the provision(s) of this Agreement in
respect of the issue before the Arbitrator. The Arbitrator shall not substitute his or her
judgment for that of the parties in the exercise of rights granted or retained by this
Agreement. The Arbitrator’s award or other permitted remedy, if any, and the decision shall
be based upon the issue as drafted and submitted by the respective parties and the relevant
and competent evidence adduced at the hearing.

     (e) The Arbitrator shall have the authority to award any remedy or relief (including
provisional remedies and relief) that a court of competent jurisdiction could order or
grant. The Arbitrator’s written decision shall be rendered within sixty days of the closing
of the hearing. The decision reached by the Arbitrator shall be final and binding upon the
parties as to the matter in dispute. To the extent that the relief or remedy granted by the
Arbitrator is relief or remedy on which a court could enter judgment, a judgment upon the
award rendered by the Arbitrator shall be entered in any court having jurisdiction thereof
(unless in the case of an award of damages, the full amount of the award is paid within 10
days of its determination by the Arbitrator). Otherwise, the award shall be binding on the
parties in connection with their continuing performances of this Agreement and, in any
subsequent arbitral or judicial proceedings between the parties.

     (f) The arbitration shall take place in New York, New York.

 

 

     (g) The arbitration and all filing, testimony, documents and information relating to or
presented during the arbitration proceeding shall be disclosed exclusively for the purpose
of facilitating the arbitration process and in any court proceeding relating to the
arbitration, and for no other purpose, and shall be deemed to be information subject to the
confidentiality provisions of this Agreement.

     (h) The parties shall continue performing their respective obligations under this
Agreement notwithstanding the existence of a dispute while the dispute is being resolved
unless and until such obligations are terminated or expire in accordance with the provisions
hereof.

     (i) The parties may obtain a pre-hearing exchange of information including depositions,
interrogatories, production of documents, exchange of summaries of testimony or exchange of
statements of position, and the Arbitrator shall limit such disclosure to avoid unnecessary
burden to the parties and shall schedule promptly all discovery and other procedural steps
and otherwise assume case management initiative and control to effect an efficient and
expeditious resolution of the dispute. At any oral hearing of evidence in connection with an
arbitration proceeding, each party and its counsel shall have the right to examine its
witness and to cross-examine the witnesses of the other party. No testimony of any witness,
or any evidence, shall be introduced by affidavit, except as the parties otherwise agree in
writing.

     (j) Notwithstanding the dispute resolution procedures contained in this Paragraph 6.1,
either party may apply to any court sitting in the County, City and State of New York (i) to
enforce this agreement to arbitrate, (ii) to seek provisional injunctive relief so as to
maintain the status quo until the arbitration award is rendered or the dispute is otherwise
resolved, (iii) to confirm any arbitration award, or (iv) to challenge or vacate any final
judgment, award or decision of the Arbitrator that does not comport with the express
provisions of this Article 6.

ARTICLE 7:

MISCELLANEOUS

     7.1 Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to the Secretary of the Company at the Company’s
principal executive office, and if to Executive, to his address on the books of the Company (or to
such other address as the Company or Executive may give to the other in writing for purposes of
notice hereunder).

Copies of all notices given to Executive shall be sent to:

Mark S. Weisberg

Winston & Strawn LLP

35 W. Wacker Drive

Chicago, IL 60601-9703

Direct: 312-558-8070

Fax: 312-558-5700

 

 

Copies of all notices given to the Company shall be sent to:

Starwood Hotels & Resorts Worldwide, Inc.

1111 Westchester Avenue

White Plains, New York 10604

Attention: Chief Administrative Officer and General Counsel

Facsimile: (914) 640-8240

     All notices, requests or other communications required or permitted by this Agreement shall be
made in writing either (a) by personal delivery to the party entitled thereto, (b) by mailing via
certified mail, postage prepaid, return receipt requested, in the United States mails to the last
known address of the party entitled thereto, (c) by reputable overnight courier service, or (d) by
facsimile with confirmation or receipt. The notice, request or other communication shall be deemed
to be received upon actual receipt by the party entitled thereto; provided, however, that if a
notice, request or other communication is received after regular business hours, it shall be deemed
to be received on the next succeeding business day of the Company.

     7.2 Applicable Law. This contract is entered into under, and shall be governed for
all purposes by, the laws of the State of New York.

     7.3 No Waiver. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.

     7.4 Severability. If a court of competent jurisdiction determines that any provision
of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not affect the validity or enforceability of any other provision of this Agreement
and all other provisions shall remain in full force and effect.

     7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
Agreement.

     7.6 Headings. The paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.

     7.7 Gender and Plurals. Wherever the context so requires, the masculine gender
includes the feminine or neuter, and the singular number includes the plural and conversely.

     7.8 Successors. This Agreement shall be binding upon and inure to the benefit of the
Company and any successor of the Company, including without limitation any person, association or
entity which may hereafter acquire or succeed to all or substantially all of the business or assets
of the Company by any means whether direct or indirect, by purchase, merger,

 

 

consolidation, or otherwise. The Company shall require any such successor to the Company to
expressly assume, in writing, satisfaction in form and substance to Executive all of the Company’s
obligations to Executive hereunder and otherwise. Except as provided in the preceding sentences,
this Agreement and the rights and obligations of the parties hereunder are personal, and neither
this Agreement nor any right, benefit or obligation of either party hereto shall be subject to
voluntary or involuntary assignment, alienation or transfer, whether by operation of law or
otherwise, without the prior written consent of the other party.

     7.9 Entire Agreement. Any modification of this Agreement shall be effective only if
it is in writing and signed by the party to be charged.

     7.10 Deemed Resignations. Except as provided in the last sentence of this paragraph
with respect to service on the Company’s Board of Directors, any termination of Executive’s
employment shall constitute an automatic resignation of Executive as an officer of the Company and
each affiliate of the Company, and from the board of directors or any similar governing body of any
corporation, trust, limited liability company or other entity in which the Company or any affiliate
holds an equity interest and with respect to which board or similar governing body Executive serves
as the Company’s or such affiliate’s designee or other representative. Executive shall cooperate
with the Company and execute all such formal resignations and other documents as the Company may
reasonably request in furtherance of the foregoing. Notwithstanding the foregoing, upon any
termination of Executive’s employment hereunder (unless termination shall be for Cause), Executive
agrees to continue to serve on the Company’s Board of Directors, subject to the Company’s customary
procedures and requirements of Board membership, including nomination and election.

     7.11 Indemnification.

     (a) In addition to any additional benefits provided under applicable state law, as a
Director and officer of the company, Executive shall be entitled to the benefits of: (1)
those provisions of the Articles of Incorporation of the Company, as amended, and of the
by-laws of the Company as amended, which provide for indemnification of officers and
Directors of the Company (and no such provision shall be amended in any way to limit or
reduce the extent of indemnification available to Executive as an officer of the Company),
(ii) the Indemnification Agreement between the Company and Executive (the ‘Indemnification
Agreement”).

     (b) The rights of Executive under such indemnification obligations shall survive the
termination of this Agreement and be applicable for so long as Executive may be subject to
any claim, demand, liability, cost or expense, which the indemnification obligations
referred to in this Paragraph 7.11 are intended to protect and indemnify him against.

     (c) The Company shall, at no cost to Executive, use its reasonable best efforts to at
all times include Executive, during the term of Executive’s employment hereunder and for so
long thereafter as Executive may be subject to any such claim, as an insured under any
directors’ and officers’ liability insurance policy maintained by the Company,

 

 

which policy shall provide such coverage in such amounts as the Board shall deem
appropriate for coverage for all directors and officers of the Company.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
officer and Executive has signed this Agreement as of the day and year first above written.

	 	 	 	 	 
	 	 	STARWOOD HOTELS & RESORTS WORLDWIDE, INC., a Maryland corporation
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth S. Siegel
	 

	 	 	 	 
	 

	 	 	 	Name: Kenneth S. Siegel
	 

	 	 	 	Its: Chief Administrative Officer and General Counsel
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ Bruce W. Duncan
	 	 	 
	 	 	Bruce W. DuncanExhibit 10.1

    

    

    

    

    

      
        	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                
                  

                  ACQUISITION
                    AGREEMENT

                  

                  BETWEEN

                  

                  GLOBAL
                    REALTY DEVELOPMENT CORP.

                  

                  AND

                  

                  SMS
                    TEXT MEDIA, INC., et al.

                  

                  

                  

                  Dated
                    as of July 19, 2007

                

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

              

      

      

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    ACQUISITION
      AGREEMENT

    

    THIS
      ACQUISITION AGREEMENT
      (“Agreement”), dated as of July 19, 2007, is by and among Global Realty
      Development Corp.,
      a
      Delaware corporation (the “Buyer"), SMS Text Media, Inc., a
      Nevada
      corporation (the “Company”), and the undersigned stockholders of the Company
      (the “Selling Stockholders”). Collectively, the Company and Selling Stockholders
      are sometimes referred to as the “Sellers”.

    

    R
      E C I T A L S

    

    WHEREAS,
      subject
      to the terms and conditions of this Agreement and the other documents or
      instruments contemplated hereby: 

     

    A. The
      Sellers desire to sell and transfer to the Buyer and the Buyer desires to
      acquire from the Sellers 100% of the authorized, issued and outstanding capital
      stock of the Company (the “Seller Shares”). It is recognized that once Buyer
      owns 100% of the Seller Shares, it will own the Company and, through the
      Company, own and control 100% of the assets, real and personal, tangible and
      intangible, of the Company (the “Assets”);

    

    B. As
      consideration for the Seller Shares, the Buyer will pay to the Selling
      Stockholders cash and shares of stock in Buyer in accordance with the payment
      terms set forth below; it is recognized that inasmuch as payment will be made
      in
      stages, the Seller Shares will be delivered in escrow as more fully set forth
      below; and

    

    C. After
      the
      full completion of the transaction, and subject to the provisions of this
      Agreement, the Company is to be a 100% owned subsidiary of the
      Buyer.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants, agreements, representations and
      warranties contained in this Agreement, the parties hereto agree as
      follows:

    

    SECTION
      1

    SALE
      AND PURCHASE OF SELLER SHARES AND ASSETS

    

    1.1 Sale
      and Purchase, Payments and Escrow.
      On the
      terms and subject to the conditions of this Agreement, the Sellers shall sell,
      transfer and deliver to the Buyer, and the Buyer shall purchase, acquire and
      accept delivery of, the Seller Shares free and clear of any and all liens,
      mortgages, adverse claims, charges, security interests, encumbrances or other
      restrictions or limitations whatsoever, all in the manner set forth
      below:

    

    (a) (i) The
      purchase price for the Seller Shares is: (A) $3,000,000 in cash (“Cash”) to
      the Selling Stockholders; (B) 10,000,000 shares of common stock in Buyer
      (collectively, the “Buyer Shares”) to the Selling Stockholders (valued at $0.50
      per share, or $5,000,000 in the aggregate, for purposes of this Agreement)
      ((A)
      and (B) shall hereinafter be collectively referred to as the “Stockholder Fixed
      Payments”); (C) provision of a $1,500,000 line of credit to the Company at an
      interest rate of no greater than 12% per annum; and (D) contingent payments
      to Selling Stockholders from Company operations, as set forth
      below.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (ii) It
      is
      understood that Buyer is funding this acquisition of the Seller Shares along
      with other transactions, during the period from the Initial Closing Date
      (defined below) to the date which is ninety (90) days after the Initial Closing
      Date (the “Expiration Date”). It is recognized that Buyer shall make payments of
      Cash to the Selling Stockholders in installments and that Seller Shares shall
      be
      delivered to Buyer in proportionate installments as well, all as more
      particularly set forth below, and subject to the provisions set forth
      below.

    

    (iii) All
      Cash
      Payments and deliveries of Buyer Shares shall be made to the Selling
      Stockholders at the time(s) the same are made pursuant hereto. Each payment
      or
      delivery that Buyer shall make will be in equal payments to each Selling
      Stockholder. 

     

    (iv) The
      parties shall establish an escrow arrangement with Kennerly,
      Montgomery & Finley, P.C. (“Escrow Agent”), on terms satisfactory to
      Escrow Agent, to hold the Seller Shares in escrow (the “Escrow”) in accordance
      with the terms and provisions more fully set forth below. Although Escrow Agent
      shall be bound to honor the terms set forth below of the Escrow in connection
      with delivery of the Seller Shares to the Buyer, it is recognized and understood
      that its serving as Escrow Agent hereunder shall not prevent said law firm
      from
      representing the Company and Selling Stockholders in connection with the
      negotiation of this Agreement and/or any litigation which may arise as a result
      thereof, or from providing ongoing representation of the Company and the Selling
      Stockholders as to any and all matters of whatever nature from and after the
      execution of this Agreement, including but not limited to matters pertaining
      to
      the consummation of the transactions contemplated hereby, general representation
      of the Company as to its business operations, and representation of the Selling
      Stockholders and affiliates (including but not limited to MJD Films, Inc. and
      TFM Group, L.L.C.) as to their business matters and interests. 

    

    (b) On
      July
      __, 2007 (the “Initial Closing Date”), Buyer shall: (i) pay the sum of $530,000
      in Cash to the Selling Stockholders as the initial installment of the Cash
      portion of the purchase price for the Seller Shares; and (ii) deliver all of
      the
      Buyer Shares to the Selling Stockholders (collectively, these payments and
      deliveries shall be called the “Initial Payment”). Upon receipt of such Initial
      Payment, the Selling Stockholders shall deposit the Seller Shares in Escrow
      with
      Escrow Agent. Since the Initial Payment represents $5,530,000 of the Stockholder
      Fixed Payments of $8,000,000, or 69.125% of the Stockholder Fixed Payments,
      Escrow Agent shall deliver 69.125% of the Seller Shares to Buyer at the time
      of
      the Selling Stockholders’ receipt of the Initial Payment. 

    

    (c) The
      Initial Payment is to be made by Buyer from the first $1,000,000 of funding
      it
      receives. As and when Buyer receives the second $1,000,000 of funding it is
      to
      receive, it shall remit $580,000 of such funding amount to Selling Stockholders
      as an additional part of the Stockholder Fixed Payments. Upon the Selling
      Stockholders’ receipt of such $580,000 Cash payment, Escrow agent shall remit to
      Buyer an additional 7.25% of the Seller Shares. Notwithstanding the foregoing,
      it is further agreed that if Buyer receives the second $1,000,000 of funding
      it
      is to receive in stages, rather than one lump sum, it shall remit 58% of each
      such staged funding amount to Selling Stockholders to be applied to the payment
      due under this section. Upon Selling Stockholders’ receipt of any such staged
      payment, Escrow agent shall remit to Buyer a like proportionate amount of the
      7.25% Seller Shares remittance.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (d) As
      and
      when Buyer receives the third $1,000,000 of funding it is to receive, it shall
      remit $780,000 of such funding amount to Selling Stockholders as an additional
      part of the Stockholder Fixed Payments. Upon the Selling Stockholders’ receipt
      of such $780,000 Cash payment, Escrow Agent shall remit to Buyer an additional
      9.75% of the Seller Shares. Notwithstanding the foregoing, it is further agreed
      that if Buyer receives the third $1,000,000 of funding it is to receive in
      stages, rather than one lump sum, it shall remit 78% of each such staged funding
      amount to Selling Stockholders to be applied to the payment due under this
      section. Upon Selling Stockholders’ receipt of any such staged payment, Escrow
      agent shall remit to Buyer a like proportionate amount of the 9.75% Seller
      Shares remittance.

    

    (e) As
      and
      when Buyer receives the fourth $1,000,000 of funding it is to receive, it shall
      remit $400,000 of such funding amount to Selling Stockholders as an additional
      part of the Stockholder Fixed Payments. Upon the Selling Stockholders’ receipt
      of such $400,000 Cash payment, Escrow Agent shall remit to Buyer an additional
      5% of the Seller Shares. Notwithstanding the foregoing, it is further agreed
      that if Buyer receives the fourth $1,000,000 of funding it is to receive in
      stages, rather than one lump sum, it shall remit 40% of each such staged funding
      amount to Selling Stockholders to be applied to the payment due under this
      section. Upon Selling Stockholders’ receipt of any such staged payment, Escrow
      agent shall remit to Buyer a like proportionate amount of the 5% Seller Shares
      remittance.

    

    (f) As
      and
      when Buyer receives the fifth $1,000,000 of funding it is to receive, it shall
      remit $420,000 of such funding amount to Selling Stockholders as an additional
      part of the Stockholder Fixed Payments. Upon the Selling Stockholders’ receipt
      of such $420,000 Cash payment, Escrow Agent shall remit to Buyer an additional
      5.25% of the Seller Shares. Notwithstanding the foregoing, it is further agreed
      that if Buyer receives the fifth $1,000,000 of funding it is to receive in
      stages, rather than one lump sum, it shall remit 42% of each such staged funding
      amount to Selling Stockholders to be applied to the payment due under this
      section. Upon Selling Stockholders’ receipt of any such staged payment, Escrow
      agent shall remit to Buyer a like proportionate amount of the 5.25% Seller
      Shares remittance.

    

    (g) As
      and
      when Buyer receives the sixth $1,000,000 of funding it is to receive, it shall
      remit $290,000 of such funding amount to Selling Stockholders as an additional
      part of the Stockholder Fixed Payments. Upon the Selling Stockholders’ receipt
      of such $290,000 Cash payment, Escrow Agent shall remit to Buyer the remaining
      3.625% of the Seller Shares. Notwithstanding the foregoing, it is further agreed
      that if Buyer receives the sixth $1,000,000 of funding it is to receive in
      stages, rather than one lump sum, it shall remit 29% of each such staged funding
      amount to Selling Stockholders to be applied to the payment due under this
      section. Upon Selling Stockholders’ receipt of any such staged payment, Escrow
      agent shall remit to Buyer a like proportionate amount of the 3.625% Seller
      Shares remittance.

    

    (h) If
      Buyer
      does not make its required payments of Cash and deliveries of Buyer Shares
      as
      required on the Initial Closing Date, the Sellers may terminate this
      Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (i) If
      the
      payments of Cash and delivery of Buyer Shares required on the Initial Closing
      Date are made, but if the Selling Stockholders have not received the balance
      of
      the full $3,000,000 Cash payments by the Expiration Date, then:

    

    (i) Buyer
      shall give the Selling Stockholders a promissory note (“Note”) for the balance
      of such $3,000,000 Cash payments which has not been made. The principal amount
      of the Note outstanding from time to time shall be subject to a penalty at
      the
      annual rate of fifteen (15%) percent from the date of the Note through the
      date
      on which the principal balance is repaid. Penalties accrued on the Note shall
      be
      payable on a monthly basis on the last day of each month and calculated on
      the
      basis of actual days. All dividends and distributions to be made by the Company
      to Buyer shall be paid over to Selling Stockholders to be applied to principal
      and penalties on the Note until the Note (principal plus penalties) is paid
      in
      full;

    

    (ii) Until
      the
      Note is paid in full (principal plus penalties), all dividends and other
      distributions to stockholders of the Company shall be paid 50.1% to Buyer (to
      be
      paid over to Selling Stockholders as set forth in (i) above) and 49.9% to the
      Selling Stockholders, regardless of actual stock ownership in the Company.
      Buyer
      shall not receive any distributions, payments or other amounts from Company
      unless Selling Stockholders receive payments in the aforesaid 50.1% to 49.9%
      ratio therefrom;

    

    (iii) Once
      the
      Note is paid in full (principal plus penalties), the remaining Seller Shares
      in
      Escrow shall be delivered to Buyer and the distributions under (ii) above shall
      cease.

    

    
      	(j)  	
              As
                to each of the payments to be made to Selling Stockholders under
                (c), (d),
                (e), (f), and (g) above, Buyer
                shall:

            

    

    

    (i)  notify
      Selling Stockholders once every five (5) Business Days as to its receipt of
      funding amounts which are subject to such subsections; and

    

    (ii)  make
      required payments to Selling Stockholders of amounts owed under such subsections
      every five (5) Business Days when there are funds available from which to make
      such payments.

     

    1.2 Line
      of Credit and Contingent Payments.

    

    (a) Buyer
      agrees that, as part of the consideration for the transactions contemplated
      hereby, it will cause to be provided to the Company on or before the Expiration
      Date a $1,500,000.00 line of credit bearing an interest rate of no greater
      than
      twelve percent (12%) per annum. The Company shall be entitled to draw upon
      and
      utilize the line of credit in connection with the operation of its
      business.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b) It
      is
      also understood and agreed by and among the parties hereto that the Selling
      Stockholders shall be entitled to, and shall be paid, contingent payments during
      each of the three (3) years following the Expiration Date, which contingent
      payments shall be in the amounts, and made at the times and in the manner,
      more
      particularly set forth on Schedule A
      attached
      hereto and by this reference made a part hereof. Notwithstanding the foregoing,
      however, in the event the Selling Stockholders do not receive the full
      $3,000,000 in Cash payments by the Expiration Date such that the Note is
      required under Section 1.1(i), the contingent payments shall be extended
      and shall continue to be made in the amounts, and on the same basis, provided
      for on Schedule A until the date which is three (3) years from the date the
      Note is paid in full.

    

    1.3 INTENTIONALLY
      DELETED.

    

    1.4 Voting
      of Seller Shares.
      Seller
      Shares shall be voted by the owners thereof at the time of the respective vote.
      To the extent Seller Shares remain in Escrow or are otherwise not required
      to be
      delivered to Buyer, whether due to Buyer’s default or otherwise, the Selling
      Stockholders shall be entitled to vote the same. If the provisions of Section
      1.1(i) are in effect, however, the Selling Stockholders shall have 49.9% and
      the
      Buyer shall have 50.1% of all voting rights on all matters, regardless of actual
      stock ownership in the Company, until the Note is paid in full and all Seller
      Shares have been delivered to Buyer.

    

    

    1.5 Conditions
      to Obligations of the Buyer.
      The
      obligations of the Buyer under this Agreement shall be subject to each of the
      following conditions:

     

    (a) Deliveries.
      Before
      the Initial Closing Date, the Sellers shall have delivered or caused to be
      delivered to the Buyer this Agreement duly executed by the Sellers. At the
      Initial Closing Date, the Sellers shall have delivered or caused to be delivered
      the following:

     

    (i) to
      the
      Escrow Agent, in Escrow, a copy of the irrevocable transfer instructions
      delivered to the Company’s transfer agent directing the transfer and issuance of
      the Seller Shares to the Buyer in accordance with the Escrow requirements set
      forth above,

     

    (ii) to
      the
      Escrow Agent, in Escrow, stock certificates representing the Seller Shares
      owned
      by the Selling Stockholders;

     

    (iii) to
      the
      Buyer, a copy of the resolutions of the board of directors and stockholders
      of
      the Company, in form satisfactory to counsel for the Buyer, authorizing
      execution and performance of this Agreement;

     

    (iv) to
      the
      Buyer, the certificate of good standing, minute book and corporate records
      of
      the Company;

     

    (iv)
       to
      the
      Buyer, a copy of all Contracts set forth on Schedule
      B,
      and

     

    (vi) such
      other documents as the Buyer or its counsel may reasonably request in connection
      with the transactions contemplated hereby.

     

    (b) After
      Initial Closing Date Deliveries or Actions.
      

    

    (i) Employment
      and Non-Competition Agreements.
      Within
      five (5) days after the Initial Closing Date, the Selling Stockholders shall
      deliver to Buyer their duly executed Employment and Non-Competition Agreements
      referred to in Section 4 below.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (ii) Financial
      Information.
      By the
      Expiration Date, the Selling Stockholders shall deliver to Buyer the Company’s
      state and federal tax returns for the 2006 fiscal year. The Selling Stockholders
      shall pay all tax liabilities of the Company arising and relating to all periods
      of time through June 30, 2007 (as provided in Section 2.6(d) and 2.15 below).
      The Sellers shall deliver audited financial statements to Buyer within sixty
      (60) days of the Initial Closing Date. 

    

    (iii) Debt
      and Liabilities.
      Within
      five (5) days after Selling Stockholders shall have received the last of the
      required Stockholder Cash payments, the Selling Stockholders shall pay off,
      or
      reimburse the Company for its payment of, any and all outstanding debt,
      liabilities or other indebtedness of the Company that was outstanding at Initial
      Closing Date, excluding contingent liabilities under the Contracts (which shall
      be Company’s responsibility per Section 2.6(d) below) and excluding any
      liabilities described in Section 2.6 (d)(ii) below, but including but not
      limited to:

    

    (A) The
      approximately $6,700 liability owed to a programming company;

    

    (B) The
      $15,500 owed to Rick Catinella as described below; and

    

    (C) Tax
      liabilities of the Company, if any, as set forth in Sections 2.6(d) and
      2.15(a) below.

    

    (iv) Qualification
      to Do Business.
      By the
      Expiration Date, the Selling Stockholders shall, at Sellers’ expense, cause the
      Company to become duly qualified and in good standing to do business in the
      State of Florida.

    

    (c) Truthfulness
      and Accuracy of Representations and Warranties.
      The
      representations and warranties of the Sellers contained herein shall be true
      in
      all material respects at the Initial Closing Date, with the same effect as
      though made at such time. The Sellers shall have performed in all material
      respects all obligations and complied in all material respects with all
      covenants and conditions required by this Agreement to be performed or complied
      with by the Initial Closing Date.

    

    (d) Performance
      of Obligations of the Sellers.
      The
      Sellers shall have performed all agreements and covenants required to be
      performed by them under this Agreement by the Initial Closing Date.

    

    (e) Governmental
      Approvals.
      All
      consents of governmental entities legally required by the Sellers for the
      transactions contemplated by this Agreement shall have been filed, occurred,
      or
      been obtained, by the Initial Closing Date.

    

    (f) Consents
      of Other Third Parties.
      The
      Sellers shall have received and delivered to the Buyer by the Initial Closing
      Date all requisite consents and approvals of all lenders, lessors, and other
      third parties whose consent or approval is required in order for the Sellers
      to
      consummate the transactions contemplated by this Agreement, or in order to
      permit the continuation after the Initial Closing Date of the business
      activities of the Company in the manner such business is presently carried
      on by
      it. The Buyer shall have received copies of any necessary written consent(s)
      to
      this Agreement and the transactions contemplated herein.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    1.6
       Buyer
      shall be entitled to obtain, during the sixty (60) days after the Initial
      Closing Date, at Buyer’s expense, a written appraisal of the valuation of the
      Company by a certified independent business appraiser or Halpern Capital, Inc.
      in form satisfactory to counsel for the Buyer

    

    1.7
       Conditions
      to Obligations of the Sellers.
      The
      obligations of the Sellers under this Agreement shall be subject to each of
      the
      following conditions:

     

    (a) Initial
      Closing Date Deliveries.
      At the
      Initial Closing Date, the Buyer shall have delivered or caused to be delivered
      to the Selling Stockholders the following:

     

    (i)this
      Agreement, duly executed by the Buyer;

     

    (ii)good
      funds in the amount of Five Hundred Thirty Thousand Dollars ($530,000);

     

    (iii) the
      Buyer
      Shares; and 

     

    (iv) such
      other documents as the Selling Stockholders or their counsel may reasonably
      request in connection with the transactions contemplated hereby.

     

    (b) Payment
      Terms.
      After
      the Initial Closing Date, the Buyer shall comply with the payment terms set
      forth in Sections 1.1 and 1.2 above.

    

    (c) Truthfulness
      and Accuracy of Representations and Warranties.
      The
      representations and warranties of the Buyer contained herein shall be true
      in
      all material respects at the Initial Closing Date, with the same effect as
      though made at such time. The Buyer shall have performed in all material
      respects all obligations and complied in all material respects with all
      covenants and conditions required by this Agreement to be performed or complied
      with by it at or prior to the Initial Closing Date.

    

    (d) Performance
      of Obligations of the Buyer.
      The
      Buyer shall have performed all agreements and covenants required to be performed
      by it under this Agreement prior to the Initial Closing Date.

    

    SECTION
      2

    REPRESENTATIONS
      AND WARRANTIES

    OF
      THE SELLERS

    

    2. Representations
      and Warranties of the Sellers.
      The
      Company and Selling Stockholders, individually and collectively, except as
      otherwise expressly provided below, hereby represent and warrant to the Buyer
      as
      follows:

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    2.1 Organization,
      Standing, Power.
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the State of Nevada. The Company has all requisite corporate
      power, franchises, licenses, permits, and authority to own its properties and
      assets and to carry on its business as it has been and is being conducted.
      The
      Company has a temporary office in California, and the Company has an office
      in
      Florida. Operations of the Company are conducted primarily out of Florida.
      The
      Company has not qualified to do business in either California or Florida at
      this
      time. Thus far, the Company has engaged only in the business of entering into
      the Contracts listed on Schedule B, performing its activities required
      thereunder to date, and engaging in activities associated with obtaining the
      Patent Pending. As a result, to the best knowledge of the Selling Stockholders,
      the Company’s failure to have duly qualified in California and Florida at this
      time will not have a Material Adverse Effect (as defined below) on the Company.
      For purposes of this Agreement, the term “Material Adverse Effect” means any
      change or effect that, individually or when taken together with all other such
      changes or effects, is or is reasonably likely to be materially adverse to
      the
      business, assets (including intangible assets), financial condition, or results
      of operations of the entity. 

    

    2.2 Authority.
      Each
      Seller has full power and authority (including full corporate power and
      authority, if applicable) to execute and deliver this Agreement or any other
      document or instrument contemplated hereby or thereby (collectively, the
“Transaction Documents”), and to perform its obligations under any Transaction
      Document. The Transaction Documents constitute valid and legally binding
      obligations of the Selling Stockholders, enforceable in accordance with the
      terms and conditions thereof. Each Seller has all requisite power and authority
      to enter into this Agreement and to consummate the transactions contemplated
      hereby. The execution and delivery by the Sellers of the Transaction Documents
      and the consummation of the transactions contemplated thereby have been duly
      authorized by all necessary action on the parts of the Sellers. Neither the
      execution and the delivery of any Transaction Document by the Sellers, nor
      the
      consummation of the transactions contemplated thereby, will (i) violate any
      constitution, statute, regulation, rule, injunction, judgment, order, decree,
      ruling, charge, or other restriction of any government, governmental agency,
      or
      court to which either the Company is subject or any provision of the charter
      or
      bylaws of the Company, or (ii) conflict with, result in a breach of, constitute
      a default under, result in the acceleration of, create in any party the right
      to
      accelerate, terminate, modify, or cancel, or require any notice under any
      agreement, contract, lease, license, instrument, or other arrangement to which
      the Company is a party or by which it is bound or to which any of its Assets
      is
      subject (or result in the imposition of any security interest upon any of its
      Assets). To the knowledge of the Sellers, and other than in connection with
      the
      provisions of the Nevada Revised Statutes, the Securities Exchange Act of 1934
      (the “Exchange Act”), the Securities Act of 1933, as amended (the “Securities
      Act”), and any state securities laws, neither the Company nor any Selling
      Stockholder needs to give any notice to, make any filing with, or obtain any
      authorization, consent, or approval of any government or governmental agency
      in
      order for the Sellers to consummate the transactions contemplated by the
      Transaction Documents. Notwithstanding anything to the contrary herein above
      set
      forth, it is recognized and understood that each of the Selling Stockholders,
      as
      to the representations and warranties set forth in this Agreement which relate
      personally to a Selling Stockholder as opposed to the Company, is making such
      representations and warranties only as to himself. No Selling Stockholder shall
      have any liability for any misrepresentation made by any other of the Selling
      Stockholders insofar as such representations and warranties relate to such
      matters which are personal to a Selling Stockholder. The foregoing limitation
      does not apply to representations and warranties concerning the Company and
      its
      status.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    2.3 Capitalization
      of the Company.

    

    (a) As
      of
      Initial Closing Date, the entire authorized capital stock of the Company
      consists of 75,000,000 of shares of common stock, $0.001 par value (the “Common
      Stock”). There are 75,000,000 shares of Common Stock issued and outstanding.
      There are zero shares of Common Stock held in treasury. At the Initial Closing
      Date, all of the Seller Shares purchased hereunder, are and shall have been
      duly
      authorized and will be validly issued, fully paid, and non-assessable. The
      Company has no Preferred Stock.

    

    (b) As
      of the
      Initial Closing Date: (i) there will be no outstanding or authorized options,
      warrants, purchase rights, subscription rights, conversion rights, exchange
      rights, or other contracts or commitments that could require the Company to
      issue, sell, or otherwise cause to become outstanding any of its capital stock
      other than the Seller Shares and (ii) there will be no outstanding or authorized
      stock appreciation, phantom stock, profit participation, or similar rights
      with
      respect to the Company. The Seller Shares are free of restrictions on transfer
      other than restrictions on transfer under applicable state and federal
      securities laws. The Seller Shares shall be issued in a private transaction
      and
      consequently will be deemed to be “restricted Securities” as set forth in Rule
      144 promulgated under the Securities Act.

    

    (c) The
      Company does not have outstanding any bonds, debentures, notes, or other
      indebtedness the holders of which have the right to vote (or which is
      convertible or exercisable into securities having the right to vote) with
      holders of the capital stock of the Company on any matter.

    

    (d) None
      of
      the Sellers are a party or subject to any agreement or understanding, and,
      to
      the best of each Sellers' knowledge, there is no agreement or understanding
      between any persons and/or entities, which affects or relates to (i) the voting
      with respect to any security of the Company or (ii) the giving of written
      consents by any shareholder or director of the Company.

    

    (e) The
      Company has not granted or agreed to grant any registration rights, including
      piggyback rights, to any person or entity.

    

    2.4 Subsidiaries.
      The
      Company does not, directly or indirectly, (a) own, of record or beneficially,
      or
      own or hold the right to acquire, any outstanding voting or equity securities
      or
      other voting or equity interests in any corporation, partnership, joint venture
      or other entity or (b) otherwise control any such corporation, partnership,
      joint venture or other entity.

    

    2.5 Financial
      Statements.
      The
      Sellers have never obtained any audited financial statements of the Company.
      Notwithstanding the foregoing, the Sellers shall have the obligation to deliver
      audited financials of the Company within sixty (60) days of the Initial Closing
      Date. All financial information the Sellers have provided to the Buyer in the
      past, including but not limited to the financial statement compilation attached
      hereto as Schedule
      D (the
      “Compilation”), is complete and accurate. 

    

    2.6 Assets
      and Liabilities.
      

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (a) The
      Company’s Assets consist of the following:

    

    (i) The
      Contracts and Agreements (the “Contracts”) set forth on
      Schedule B;

    

    (ii) The
      Patent Pending discussed in 2.8 below;

    

    (iii) Receivables,
      if any, due or to become due under the Contracts.

    

    (b) The
      Assets of the Company are not subject to any pledges, security interests,
      mortgages, hypothecations or other encumbrances.

    

    (c) The
      Company’s liabilities (except as otherwise set forth in this Agreement) consist
      of:

    

    (i) The
      approximate $6,700 and $15,500 liabilities discussed in Section 1.5(b)(iii)
      above; 

    

    (ii) Contingent
      liabilities under the Contracts; and

    

    (iii) Possible
      tax liabilities as described in 2.15 below.

    

    (d) The
      Selling Stockholders shall pay those liabilities they are to pay pursuant to
      the
      provisions of Section 1.5(b)(iii) above. The Company shall continue to be
      liable for the contingent liabilities under the Contracts and none of the
      Selling Stockholders shall have any personal liabilities or obligations relating
      thereto. The Selling Stockholders shall be liable for any fixed liabilities
      under the Contracts relating to periods prior to the Initial Closing Date.
      The
      Selling Stockholders shall pay all tax liabilities of the Company arising and
      relating to all periods of time through June 30, 2007. The Selling
      Stockholders shall have no personal liability of any nature for any tax
      liabilities of the Company, however arising or occurring, to the extent the
      same
      arise, occur or relate to any time period subsequent to June 30, 2007. To
      the best of each Sellers’ knowledge and belief, the Company does not have any
      liabilities or obligations (whether absolute, accrued, or contingent) except:
      (i) liabilities as described in Section 2.6(c) or (ii) liabilities that are
      accrued or reserved against in the Company’s financial statements (including but
      not limited to the approximate $4,755 in “Channel Payouts” listed in the
      Compilation). 

    

    2.7 Absence
      of Changes.
      To the
      best of each Sellers’ knowledge and belief, since June 30, 2007, the Company has
      conducted its business in the ordinary course and there has not been: (i) any
      Material Adverse Effect on the business, financial condition, liabilities,
      or
      assets of the Company or any development or combination of developments of
      which
      management of the Company has knowledge which is reasonably likely to result
      in
      such an effect; (ii) any damage, destruction, or loss, whether or not covered
      by
      insurance, having a Material Adverse Effect on the Company; (iii) any
      declaration, setting aside or payment of any dividend or other distribution
      (whether in cash, stock, or property) with respect to the capital stock of
      the
      Company; (iv) any increase or change in the compensation or benefits payable
      or
      to become payable by the Company to any of their employees, except in the
      ordinary course of business consistent with past practice; (v) any sale, lease,
      assignment, disposition, or abandonment of a material amount of property of
      the
      Company, except in the ordinary course of business; (vi) any increase or
      modification in any bonus, pension, insurance, or other employee benefit plan,
      payment, or arrangement made to, for, or with any of their employees; (vii)
      the
      granting of stock options, restricted stock awards, stock bonuses, stock
      appreciation rights, and similar equity based awards; (viii) any resignation
      or
      termination of employment of any office of the Company; and the Sellers, to
      the
      best of their knowledge, do not know of the impending resignation or termination
      of employment of any such office; (ix) any merger or consolidation with another
      entity, or acquisition of assets from another entity except in the ordinary
      course of business; (x) any loan or advance by the Company to any person or
      entity, or guaranty by the Company of any loan or advance; (xi) any amendment
      or
      termination of any contract, agreement, or license to which any the Company
      is a
      party, except in the ordinary course of business; (xii) any mortgage, pledge,
      or
      other encumbrance of any Asset of the Company; (xiii) any waiver or release
      of
      any right or claim of the Company, except in the ordinary course of business;
      (xiv) any write off as uncollectible any note or account receivable or portion
      thereof; or (xv) any agreement by the Company to do any of the things described
      in this Section 2.7.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    2.8 Intellectual
      Property.
      The
      Company has a patent pending on a limited text messaging process as shown in
      the
      materials attached hereto as Schedule C (the
      “Patent Pending”). None of the Sellers make any warranty or representation
      concerning whether any patent will ever be issued in connection with or as
      a
      result of the Patent Pending. The Buyer may contact the patent attorneys
      identified in the materials provided in Schedule C to discuss the status of
      the Patent Pending. The Company owns no other patents, trademarks, service
      marks, trade names, copyrights, trade secrets, information, or other proprietary
      property (collectively, “Intellectual Property”). The Company has not received
      any communications alleging that it has violated or, by conducting its business,
      would violate any of the Intellectual Property of any other person or entity.
      The Company is not aware that any of its employees is obligated under any
      contract (including licenses, covenants, or commitments of any nature) or other
      agreement, or subject to any judgment, decree, or order of any court or
      administrative agency, that would interfere with the use of his best efforts
      to
      promote the interests of the Company or that would conflict with the Company’s
      business as conducted. Neither the execution or delivery of the Transaction
      Documents, nor the carrying on of the Company’s business by its respective
      employees, nor the conduct of the Company’s business, will, to the best of each
      Sellers' knowledge, conflict with or result in a breach of the terms, conditions
      or provisions of, or constitute a default under, any contract, covenant, or
      instrument under which any of such employees is now obligated.

    

    2.9 Certain
      Agreements.
      To the
      best of each Sellers' knowledge and belief, except as provided in this Agreement
      as to payments and deliveries to Selling Stockholders and as provided in the
      Employment Agreements, neither the execution and delivery of the Transaction
      Documents nor the consummation of the transactions contemplated thereby will:
      (i) result in any payment (including, without limitation, severance,
      unemployment compensation, parachute payment, bonus, or otherwise), becoming
      due
      to any director, employee, or independent contractor of any of the Sellers,
      from
      any other party under any agreement or otherwise; (ii) materially increase
      any
      benefits otherwise payable under any agreement; or (iii) result in the
      acceleration of the time of payment or vesting of any such
      benefits.

    

    2.10 Employee
      Benefit Plans.
      The
      Company has no employee benefit plans (including without limitation all plans
      which authorize the granting of stock options, restricted stock, stock bonuses,
      or other equity based awards) covering active, former, or retired employees.
      

    

    2.11 INTENTIONALLY
      DELETED.
      

    

    2.12 Inventory.
      The
      Company does not have any inventory. 

    

    2.13 Major
      Contracts.
      Except
      for the Contracts and/or as otherwise disclosed in the Transaction Documents,
      the Company is not a party or subject to any other contract or agreement of
      any
      kind which could have a Material Adverse Effect.

    

    To
      the
      knowledge of the Selling Stockholders, all Contracts are valid and in full
      force
      and effect and neither the Company nor any other party thereto, has breached
      any
      material provisions of, or is in default in any material respect under the
      terms
      thereof.

    

    2.14 Leases.
      The
      Company is not a party to any real property lease. Offices it occupies are
      currently occupied through permissive occupancy arrangements. 

    

    2.15 Taxes.
      Except
      as set forth elsewhere in the Transaction Documents, and in reliance upon the
      Company’s auditing/tax preparation firms, to the knowledge of the Selling
      Stockholders:

    

    (a) All
      taxes, assessments, fees, penalties, interest, and other governmental charges
      with respect to the Sellers which have become due and payable with respect
      to
      the period ending December 31, 2006 have been paid in full or adequately
      reserved against by the Sellers. The Selling Stockholders shall be responsible
      for paying all taxes, assessments, fees, penalties, interest and other
      governmental charges which shall apply to the Company by reason of its
      operations through June 30, 2007 at the time and in the manner set forth
      above. Any and all taxes, assessments, fees, penalties, interest and other
      governmental charges which apply to the Company and relate to any periods of
      time after June 30, 2007, shall remain the liability of the Company and the
      Selling Stockholders shall have no liability of any nature with respect
      thereto;

    

    (b) There
      are
      no liens for taxes upon the Assets except for taxes that are not yet payable.
      The Company has withheld all taxes required to be withheld in respect of wages,
      salaries, and other payments to all employees, officers, and directors and
      timely paid, or will pay, all such amounts withheld prior to July 1, 2007
      to the proper taxing authority.

    

    2.16 Disputes
      and Litigation
      There is
      no suit, claim, action, litigation, or proceeding pending or, to the knowledge
      of the Sellers, threatened against or affecting Company, or any of its Assets
      or
      to which Company is a party, in any court or before any arbitrator of any kind
      or before or by any governmental entity, nor is there any judgment, decree,
      injunction, rule, or order of any governmental entity or arbitrator outstanding
      against the Company. To the knowledge of the Sellers, there is no investigation
      pending or threatened against the Company before any foreign, federal, state,
      municipal, or other governmental department, commission, board, bureau, agency,
      instrumentality, or other governmental entity.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    2.17 Compliance
      with Laws.
      To the
      best of each Seller’s knowledge and belief, (i) the Company’s business is not
      being conducted in violation of, or in a manner which could cause liability
      under any applicable law, rule, or regulation, judgment, decree, or order of
      any
      governmental entity (other than any liability which could be associated with
      the
      failure to qualify to do business in Florida and California as aforesaid).
      The
      Company has all franchises, permits, licenses, and any similar authority (other
      than qualification to do business authority in California and Florida) necessary
      for the conduct of its business as now being conducted by it, and, to the best
      of each Seller’s knowledge and belief, except as aforesaid, the Company is not
      in default in any material respect under any of such franchises, permits,
      licenses, or other similar authority.

    

    2.18 Related
      party Transactions.
      No
      Company employee, officer, or director nor member of his or her immediate family
      is indebted to the Company, nor is the Company indebted (or committed to make
      loans or extend or guarantee credit) to any Company employee, officer or
      director, except that the Company is indebted to Rick Catinella in the amount
      of
      $15,500.00 for certain advances and credit card transactions. No Company
      employee, officer, or director has any direct or indirect ownership interest
      in
      any firm or corporation with which the Company is affiliated or with which
      the
      Company has a business relationship, or any firm or corporation that competes
      with the Company, except that employees, officers, or directors of the Company
      and members of their immediate families may own stock in publicly traded
      companies that may compete with the Company, and except that Rick Catinella
      and
      Roy Sciacca are principals, officers and directors of MJD Films, Inc. and TFM
      Group, L.L.C. No member of the immediate family of any Company employee, officer
      or director is directly or indirectly interested in any material contract with
      the Company.

    

    2.19 INTENTIONALLY
      DELETED.
      

    

    2.20 Minute
      Books.
      The
      minute books of the Company provided to the Buyer contains a complete summary
      of
      all meetings of directors and shareholders since the time of incorporation
      and
      reflects all transactions referred to in such minutes accurately in all material
      respects. 

    

    2.21 Disclosure.
      No
      representation or warranty made by any of the Sellers in this Agreement, nor
      any
      document, written information, statement, financial statement, certificate,
      or
      exhibit prepared and furnished or to be prepared and furnished by the Sellers
      or
      their representatives pursuant hereto or in connection with the transactions
      contemplated hereby, when taken together, contains any untrue statement of
      a
      material fact, or omits to state a material fact necessary to make the
      statements or facts contained herein or therein not misleading in light of
      the
      circumstances under which they were furnished, to the best of each of the
      Sellers' knowledge and belief.

    

    2.22 Reliance;
      Survival.
      The
      foregoing representations and warranties are made by each Seller with the
      knowledge and expectation that the Buyer is placing reliance thereon. Each
      Seller agrees that all representations and warranties made by the Sellers in
      this Agreement shall survive the consummation of the Initial Closing
      Date.

     

    
 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    2.23 Board
      and Stockholder Approval.
      The
      Sellers represent and warrant (i) that they have complied with all the
      requirements of the general corporation law of the Nevada Revised Statutes
      relative to board and stockholder approval for the sale of the Seller Shares
      and
      Assets and (ii) that the principal terms of the sale as set forth in this
      Agreement were duly and legally:

     

    (a)
      Approved by the Company’s board of directors on July 19, 2007, and

     

    (b)
      Approved by the outstanding voting shares of the Company on July 19,
      2007.

    

    SECTION
      3

    REPRESENTATIONS
      AND WARRANTIES OF THE BUYER

    

    3. Representations
      and Warranties of the Buyer.
      The
      Buyer hereby represents and warrants to the Sellers as follows:

    

    3.1 Organization
      and Capital Structure.
      The
      Buyer is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has full corporate power and
      authority to carry on its business as now conducted.

    

    3.2 Authorization.
      The
      Buyer has full corporate power and authority to enter into the Transaction
      Documents, to consummate the transactions contemplated thereby and to comply
      with the terms, conditions and provisions hereof and thereof. The execution,
      delivery and performance by the Buyer of each of the Transaction Documents,
      and
      the actions to be taken by the Buyer contemplated thereby have been duly and
      validly authorized by the Board of Directors of the Buyer and no other corporate
      proceedings on the part of the Buyer are necessary with respect thereto. Each
      of
      the Transaction Documents constitutes the valid and binding obligations of
      the
      Buyer, in each case enforceable in accordance with its terms.

    

    3.3 Non-Contravention.
      Neither
      the execution or delivery of the Transaction Documents by the Buyer, nor the
      consummation of the transactions contemplated thereby by the Buyer, will (i)
      conflict with or result in the breach of any term or provision of, or constitute
      a default under, the articles of incorporation or bylaws of the Buyer or any
      material agreement, instrument or indenture to which the Buyer is a party or
      by
      which it is bound; (ii) violate any order, writ, injunction, decree, statute,
      rule or regulation applicable to the Buyer; or (iii) require, as of the date
      hereof, the approval, consent, waiver, authorization or act of, or the making
      by
      the Buyer of any declaration, filing or registration with, any third party
      or
      any governmental body and such other consents, orders, authorizations,
      registrations, declarations and filings the failure of which to be obtained
      or
      made would not, individually or in the aggregate, have a Material Adverse Effect
      on the Buyer, materially impair the ability of the Buyer to perform its
      obligations hereunder or prevent the consummation of any of the transactions
      contemplated hereby.

    

    3.4 Buyer
      Shares.
      The
      Buyer Shares shall be issued to Selling Stockholders free and clear of any
      and
      all liens, claims, pledges, security interests, chattel mortgages,
      hypothecations and other encumbrances of any and every nature. All Buyer Shares
      shall be fully paid and non-assessable. All Buyer Shares shall be of like kind,
      and have all voting, dividend and other rights, as all other common stock issued
      at any time by Buyer. This warranty shall be true and correct as of the Initial
      Closing Date.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    SECTION
      4

    COVENANTS

    

    4.
       Covenants.
      In
      connection with the sale and purchase of the Seller Shares and Assets, the
      parties hereby covenant as follows: 

    

    4.1
       Employment
      Agreements.
      Aric
      Gastwirth, Rick Catinella and Roy A. Sciacca shall execute and deliver
      employment agreements to the Company (“Employment Agreements”) pursuant to which
      Mr. Gastwirth, Mr. Catinella and Mr. Sciacca shall agree to provide their
      personal services to the Company upon the terms and conditions of the Employment
      Agreements, at the time provided for in Section 1.5(b)(i) above.

    

    4.2 Non-Compete
      Agreements.
      The
      Selling Stockholders are executing and delivering non-compete agreements to
      the
      Company (“Non-Compete Agreements”) pursuant to which the Selling Stockholders
      shall agree not to compete with the Company upon the terms and conditions of
      the
      Non-Compete Agreement for a term of three (3) years, at the time provided for
      in
      Section 1.5(b)(i) above. Activities of Rick Catinella and Roy Sciacca for MJD
      Films, Inc. and TFM Group, L.L.C. shall not be affected or impaired under such
      Non-Compete Agreements.

    

    4.3 Contracts.
      The
      Sellers hereby agree to deliver to the Buyer all executed Contracts at the
      Initial Closing Date and to deliver any new contracts or agreements executed
      by
      the Company to Buyer thereafter. The parties agree that this Section 4.3 shall
      survive the consummation of the Initial Closing Date.

    

    4.4 Other
      Agreements.
      There
      are various partner agreements between the Buyer and the Company (“Other
      Agreements”), and both the Buyer and the Company agree to work cooperatively to
      market, sell and introduce the Company’s services until the acquisition
      contemplated by this Agreement is completed or until each such Other Agreement
      expires or is terminated by the parties.

    

    SECTION
      5

    INDEMNIFICATION

    

    5.1 Indemnification
      by Company and Selling Stockholders.
      The
      Company and Selling Stockholders, jointly and severally, hereby agree to
      indemnify and hold harmless the Buyer and its respective affiliates, officers,
      directors, partners, members, managers, stockholders, employees, and agents
      from
      and against any and all losses, claims, damages, judgments, penalties,
      liabilities, and deficiencies, and agrees to reimburse the Buyer for all
      reasonable out-of-pocket expenses (including reasonable fees and expenses of
      legal counsel), in each case promptly as incurred by the other, to the extent
      arising out of or in connection with: (i) any material misrepresentation,
      omission, or material breach of any of the Company’s or Selling Stockholders’
representations or warranties contained in this Agreement; or (ii) any failure
      by the Company or Selling Stockholders to perform any of their covenants,
      agreements, undertakings, or obligations set forth in this Agreement or any
      ancillary agreement hereto. 

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    5.2 Indemnification
      by Buyer.
      The
      Buyer hereby agrees to indemnify and hold harmless the Company and Selling
      Stockholders and their respective affiliates, officers, directors, partners,
      members, managers, stockholders, employees, and agents from and against any
      and
      all losses, claims, damages, judgments, penalties, liabilities, and
      deficiencies, and agrees to reimburse the other for all reasonable out-of-pocket
      expenses (including reasonable fees and expenses of legal counsel), in each
      case
      promptly as incurred by the other, to the extent arising out of or in connection
      with: (i) any material misrepresentation or material breach of any of the
      Buyer’s representations or warranties contained in this Agreement; or (ii) any
      failure by the Buyer to perform any of its covenants, agreements, undertakings,
      or obligations set forth in this Agreement or any ancillary agreement
      hereto.

    

    ARTICLE
      6

    DEFAULT,
      AMENDMENT AND WAIVER

    

    6.1 Default.
      Upon a
      breach or default under this Agreement by any party hereto (following the cure
      period provided herein), the non-defaulting party shall have all rights and
      remedies given hereunder or now or hereafter existing at law or in equity or
      by
      statute or otherwise. Notwithstanding the foregoing, in the event of a breach
      or
      default by any party hereto in the observance or in the timely performance
      of
      any of its obligations hereunder which is not waived by the non-defaulting
      party, such defaulting party shall have the right to cure such default within
      15
      days after receipt of notice in writing of such breach or default.

    

    6.2 Waiver
      and Amendment.
      Any
      term, provision, covenant, representation, warranty, or condition of this
      Agreement may be waived, but only by a written instrument signed by the party
      entitled to the benefits thereof. The failure or delay of any party at any
      time
      or times to require performance of any provision hereof or to exercise its
      rights with respect to any provision hereof shall in no manner operate as a
      waiver of or affect such party's right at a later time to enforce the same.
      No
      waiver by any party of any condition, or of the breach of any term, provision,
      covenant, representation, or warranty contained in this Agreement, in any one
      or
      more instances, shall be deemed to be or construed as a further or continuing
      waiver of any such condition or breach or waiver of any other condition or
      of
      the breach of any other term, provision, covenant, representation, or warranty.
      No modification or amendment of this Agreement shall be valid and binding unless
      it be in writing and signed by all parties hereto.

    

    ARTICLE
      7

    MISCELLANEOUS

    

    7.1 Expenses.
      Whether
      or not the transactions contemplated hereby are consummated, each of the parties
      hereto shall bear all taxes of any nature (including, without limitation,
      income, franchise, transfer, and sales taxes) and all fees and expenses relating
      to or arising from its compliance with the various provisions of this Agreement
      and such party's covenants to be performed hereunder, and except as otherwise
      specifically provided for herein, each of the parties hereto agrees to pay
      all
      of its own expenses (including, without limitation, attorneys and accountants'
      fees, and printing expenses) incurred in connection with this Agreement, the
      transactions contemplated hereby, the negotiations leading to the same and
      the
      preparations made for carrying the same into effect, and all such taxes, fees,
      and expenses of the parties hereto shall be paid prior to Closing.

    

    7.2 Notices.
      Any
      notice, request, instruction, or other document required by the terms of this
      Agreement, or deemed by any of the parties hereto to be desirable, to be given
      to any other party hereto shall be in writing and shall be given by facsimile,
      personal delivery, overnight delivery, or mailed by registered or certified
      mail, postage prepaid, with return receipt requested, to the following
      addresses:

    

    
      	 	 TO BUYER:	Global
              Realty Development Corp.	 
	 	 	
              Attn: Robert D. Kohn, Chief Executive
                Officer

              11555
                Heron Bay Boulevard Suite 200 

              Coral
                Springs, Florida 33076

              Telephone:
                 (954)
                509-9830

              Fax:
                  (954-603-0522)

               

            	 
	 	
               With a copy to:

            	
              Richardson & Patel LLP

            	 
	 	 	
              Attention: Addison K. Adams, Esq.

              10900
                Wilshire Blvd., Suite 500

              Los
                Angeles, California 90024

              Telephone:
                 (310)
                208-1182

              Fax:
                  (310)
                208-1154

            	 
	 	 	 	 
	 	TO SELLERS: 	SMS
              Text Media, Inc.	 
	 	 	
              Attn:
                Aric Gastwirth, President

              638
                Lindero Canyon, #365

              Oak
                Park, California 91377

              Telephone:
                714/508-4920

              Fax:
                714/508-4904

            	 
	 	 	 	 
	 	With a copy to:	Steven E. Schmidt, Esquire	 
	 	 	
              Kennerly, Montgomery & Finley, P.C.

              550
                Main Street, Fourth Floor

              Knoxville,
                TN 37902

              Telephone:
                865/546-7311

              Fax:
                865/524-1773

            	 

    

    
 

    The
      persons and addresses set forth above may be changed from time to time by a
      notice sent as aforesaid. If notice is given by facsimile, personal delivery,
      or
      overnight delivery in accordance with the provisions of this Section, said
      notice shall be conclusively deemed given at the time of such delivery. If
      notice is given by mail in accordance with the provisions of this Section,
      such
      notice shall be conclusively deemed given seven days after deposit thereof
      in
      the United States mail. 

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    7.3 Entire
      Agreement.
      This
      Agreement, together with the schedules and exhibits hereto, sets forth the
      entire agreement and understanding of the parties hereto with respect to the
      transactions contemplated hereby, and supersedes all prior agreements,
      arrangements and understandings related to the subject matter hereof. No
      understanding, promise, inducement, statement of intention, representation,
      warranty, covenant, or condition, written or oral, express or implied, whether
      by statute or otherwise, has been made by any party hereto which is not embodied
      in this Agreement, or in the schedules or exhibits hereto or the written
      statements, certificates, or other documents delivered pursuant hereto or in
      connection with the transactions contemplated hereby, and no party hereto shall
      be bound by or liable for any alleged understanding, promise, inducement,
      statement, representation, warranty, covenant, or condition not so set
      forth.

    

    7.4 Survival
      of Representations.
      All
      statements of fact (including financial statements) contained in the Schedules,
      the exhibits, the certificates, or any other instrument delivered by or on
      behalf of the parties hereto, or in connection with the transactions
      contemplated hereby, shall be deemed representations and warranties by the
      respective party hereunder. All representations, warranties, agreements, and
      covenants hereunder shall survive the Initial Closing Date for a period of
      twelve (12) months after the Initial Closing Date (or, in the case of agreements
      and covenants to be performed after 12 months, until the same are actually
      performed) and remain effective regardless of any investigation or audit at
      any
      time made by or on behalf of the parties or of any information a party may
      have
      in respect hereto. Consummation of the transactions contemplated hereby shall
      not be deemed or construed to be a waiver of any right or remedy possessed
      by
      any party hereto, notwithstanding that such party knew or should have known
      at
      the time of the Initial Closing Date that such right or remedy
      existed.

    

    7.5 Incorporated
      by Reference.
      The
      schedules, exhibits, and all documents (including, without limitation, all
      financial statements) delivered as part hereof or incident hereto are
      incorporated as a part of this Agreement by reference.

    

    7.6 Remedies
      Cumulative.
      No
      remedy herein conferred upon the parties is intended to be exclusive of any
      other remedy and each and every such remedy shall be cumulative and shall be
      in
      addition to every other remedy given hereunder or now or hereafter existing
      at
      law or in equity or by statute or otherwise.

    

    7.7 Execution
      of Additional Documents.
      Each
      party hereto shall make, execute, acknowledge, and deliver such other
      instruments and documents, and take all such other actions as may be reasonably
      required in order to effectuate the purposes of this Agreement and to consummate
      the transactions contemplated hereby.

    

    7.8 Finders'
      and Related Fees.
      Each of
      the parties hereto is responsible for, and shall indemnify the other against,
      any claim by any third party to a fee, commission, bonus, or other remuneration
      arising by reason of any services alleged to have been rendered to or at the
      instance of said party to this Agreement with respect to this Agreement or
      to
      any of the transactions contemplated hereby.

    

    7.9 Governing
      Law.
      This
      Agreement has been negotiated and executed in the State of Florida and shall
      be
      construed and enforced in accordance with the laws of such state.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    7.10 Forum.
      Each of
      the parties hereto agrees that any action or suit which may be brought by any
      party hereto against any other party hereto in connection with this Agreement
      or
      the transactions contemplated hereby may be brought only in a federal or state
      court in Broward County, Florida.

    

    7.11 Professional
      Fees.
      In the
      event any party hereto shall commence legal proceedings against the other to
      enforce the terms hereof, or to declare rights hereunder, as the result of
      a
      breach of any covenant or condition of this Agreement, the prevailing party
      in
      any such proceeding shall be entitled to recover from the losing party its
      costs
      of suit, including reasonable attorneys' fees, accountants’ fees, and experts’
fees.

     

    7.12 Binding
      Effect and Assignment.
      This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective heirs, executors, administrators, legal representatives,
      and assigns.

    

    7.13 Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed simul-taneously in one or more counterparts, each
      of
      which shall be deemed an original, but all of which together shall constitute
      one and the same instrument. The parties agree that facsimile signatures of
      this
      Agreement shall be deemed a valid and binding execution of this Agreement.
      

    

    7.14 Representation.
      The
      parties hereto agree and acknowledge that the law firm of Richardson & Patel
      LLP has represented the Buyer in preparing this Agreement. All parties to this
      Agreement have been given the opportunity to consult with counsel of their
      choice regarding their rights under this Agreement. 

    

    [Signatures
      Page Follows]

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 BUYER:	
              GLOBAL
                REALTY DEVELOPMENT CORP.,

              a
                Delaware corporation 

            
	 
 	 
 	 
 
	 	 	/s/ 
	 	
              
By:
 Robert
              D. Kohn
	 	Its:
               Chief
              Executive Officer

      	 	 	 
	SELLER:	
              SMS
                TEXT
                MEDIA, INC., 

              a
                Nevada corporation 

            
	 
 	 
 	 
 
	Date: 	 	/s/ 
	 	
              
By:
 Aric
              Gastwirth
	 	
              Its:
                 President

            

     
      
        	SELLING
                STOCKHOLDERS:	By: __________________________________
	 	
                Aric
                  Gastwirth, an individual

                Shares
                  Sold:  __________________________

                 

                By: __________________________________

                Rick
                  Catinella, an individual

                Shares
                  Sold:  __________________________

                 

                By: _________________________________

                Roy
                  A. Sciacca, an individual

                Shares
                  Sold:  __________________________

              
	 	 

      
  

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    

    

    SCHEDULE
      A

    

    Contingent
      Payments to Selling Stockholders

    

    Years
      1-3: 27% of Cash Flow (EBITDA less capitalized expenditures and taxes) for
      each
      of the next three-12 month periods following closing for the first $3.0MM of
      Cash Flow plus a bonus contingent payment of 10% of Cash Flow in excess of
      $3.0MM. Time period for payment may be extended as set forth in the Acquisition
      Agreement.

    

    Contingent
      payments shall be paid in a lump sum within 30 days after audited financials
      have been finalized and shall be paid at the option of the Company either in
      100% cash or in a mix of cash and common stock using the following ratio: 46%
      cash and 54% common stock. The amount of common stock to be issued shall be
      calculated using the ten day trailing average common stock price, but in no
      event less than $0.50 per share.** 

    

    Examples:

    If
      SMS
      Text Media has $3MM in Cash Flow during Years 1-3, then the Contingent Payments
      would be:  

    
      	
               

               

              YEAR

            	
               

               

              CASH
                FLOW

            	
              EARNOUT
                DOLLARS STOCK

            	
              EARNOUT
                DOLLARS 

              CASH

            	
               

              EARNOUT
                TOTAL

            
	
              1

            	
              3,000,000

            	
              $437,400

            	
              $372,600

            	
              $810,000

            
	
              2

            	
              3,000,000

            	
              $437,400

            	
              $372,600

            	
              $810,000

            
	
              3

            	
              3,000,000

            	
              $437,400

            	
              $372,600

            	
              $810,000

            
	 	 	 	 	 
	
              TOTAL

            	 	
              $1,312,200

            	
              $1,117,800

            	
              $2.430.000

            

    

    

    If
      SMS
      Text Media has $4MM in Cash Flow during Year 1, $5MM during Year 2, and $6MM
      during Year 3, then the Contingent Payments would be:

    

    
      	
               

               

              YEAR

            	
               

               

              CASH
                FLOW

            	
              EARNOUT
                DOLLARS STOCK

            	
              EARNOUT
                DOLLARS

              CASH

            	
               

              EARNOUT
                TOTAL

            
	
              1

            	
              4,000,000

            	
              $491,400

            	
              $418,600

            	
              $
                910,000

            
	
              2

            	
              5,000,000

            	
              $545,400

            	
              $464,600

            	
              $1,010,000

            
	
              3

            	
              6,000,000

            	
              $599,400

            	
              $510,600

            	
              $1,110,000

            
	 	 	 	 	 
	
              TOTAL

            	 	
              $1,636,200

            	
              $1,393,800

            	
              $3,030.000

            

    

    

    *Shares
      will have piggy-back registration rights with the shares in the planned funding
      round subject to investors. However, they will be subject to certain
      restrictions, including a 12-month lock-up unless sold through a structured
      transaction.

    **Shares
      will have customary registration rights, but will be subject to certain
      restrictions, including a 12-month lock-up unless sold through a structured
      transaction.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

    

    CONTRACTS

    

     

    
      	 	
              Canadian
                Marketing Group, firm producing “Blonde and Blonder,” starring Pamela
                Anderson and Denise Richards. “Text Your Way to Stardom” “Walk the Red
                Carpet” and attend the Premier with
                Pamela.

            

    

     

    
      	 	
              “An
                African Tale.” Multiple contests, including
                a feature voice over in this animated
                movie.

            

    

     

    
      	 	
              MJD,
                Films, Inc., firm producing “The Devil Exists.” Multiple contests
                including a role in the move, and trips to the premier &
                party.

            

    

     

    
      	 	
              “Nincompoops,”
                major teen theatrical release
                film.

            

    

     

    
      	 	
              Pennhouse
                Award Suites, the firm providing star gift baskets at the Academy
                Awards,
                as well as Grammy, American Music, Emmy, Tony, Golden Globe and CMA
                Awards. 

            

    

     

    
      	 	
              “XMENUDOS”
                text messaging voting and multiple contests across 17
                nations

            

    

     

    
      	 	
              NHRA
                Championship Drag Racing, ten month
                series in conjunction with Alphatrade’s sports marketing division.
                Providing backend and data
                capture.

            

    

     

    
      	 	
              Pro
                Bull Riders Association, ten month series in conjunction with Alphatrade’s
                sports marketing division. Providing backend and data
                capture.

            

    

     

    
      	 	
              American
                Drag Racing League, ten month series in conjunction with Alphatrade’s
                sports marketing division. Providing backend and data
                capture.

            

    

     

    
      	 	
              “JAG
                BMX World Championships,” ABC Networks’ 8 week BMX Olympic Team Series.
                Weekly prizes include BX bikes, trips, etc., with grand prize trip
                to
                Beijing Olympics as guest of the Olympic team, waiting for
                signature.

            

    

     

    
      	 	
              “Teens
                on the Green” World Championship Jr. Golf Championship
                

            

    

     

    
      	 	
              “Sistas”.
                Multiple contests including a role in the movie, and trips to the
                premier
                & party.

            

    

     

    
      	 	
              Creative
                Content Distributors, firm providing major content and distribution
                channels.

            

    

     

    
      	 	
              Green
                Diamond, firm providing content and distribution
                channels

            

    

     

    
      	 	
              Stage
                54, firm providing distribution
                channels

            

    

     

    
      	 	
              Cititrust
                Corp, firm providing distribution
                channels

            

    

     

    
      	 	
              Pinpoint
                Interactive Media, Inc., firm providing distribution
                channels

            

    

     

    
      	 	
              Global
                Strategies, Inc., firm providing content
                referrals

            

    

     

    
      	 	
              Monopoly
                Music, company providing
                content

            

    

     

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      C

    

    

    PATENT
      PENDING MATERIALS

    
 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      D

    

    FINANCIAL
      STATEMENT COMPILATION

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    23

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