Document:

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                                                                    EXHIBIT 10.2

                                 AGREEMENT AMONG

(1)  PACIFICNET STRATEGIC INVESTMENT HOLDINGS LIMITED, AND PACIFICNET INC.
(2)  CHEER ERA LIMITED
(3)  APEX LEGEND LIMITED
(4)  SHEK, HIU HUNG
(5)  SUNG, SAU CHUN
(6)  CHENG, WAI SHUN WILSON

                     FOR THE SALE AND PURCHASE OF SHARES IN
                                CHEER ERA LIMITED

THIS AGREEMENT is made on April 7, 2004.

AMONG:

(1)    PACIFICNET STRATEGIC INVESTMENT HOLDINGS LIMITED (Chinese Company Name
       "chinese characters here"), a company existing under the laws of the
       British Virgin Islands whose principal place of business is at Room 2710,
       Hong Kong Plaza, 188 Connaught Road West, Hong Kong. (hereafter referred
       as the "PURCHASER"). The Purchaser is a wholly owned subsidiary of
       PacificNet Inc. ("PACT"), a company incorporated under the laws of the
       State of Delaware in the United States of America whose principal office
       is situate at 860 Blue Gentian Road, Suite 360, Eagan, MN 55121-1575, the
       United States of America, the shares of which are listed on the NASDAQ
       stock exchange in the United States of America under the trading symbol
       of "PACT".

(2)    CHEER ERA LIMITED (Chinese Company Name "chinese characters here" and
       Business Name "VIDEO CLUB INTERNATIONAL"), a company incorporated in Hong
       Kong SAR whose principal place of business is Flat C, 19/F, Mai Wah
       Industrial Building, 1-7 Wah Sing Street, Kwai Chung, N.T., Hong Kong
       (hereinafter referred to as the "COMPANY");

(3)    SHEK, HIU HUNG (HK ID: H448226(5)) and CHENG, WAI SHUN WILSON (HK ID:
       D631835(6))whose principal place of business is at Flat C, 19/F, Mai Wah
       Industrial Building, 1-7 Wah Sing Street, Kwai Chung, N.T., Hong Kong
       (hereinafter jointly referred to as the "WARRANTOR"); and

(4)    APEX LEGEND LIMITED, a company existing under the laws of the British
       Virgin Islands whose principal place of business is Flat C, 19/F, Mai Wah
       Industrial Building, 1-7 Wah Sing Street, Kwai Chung, N.T., Hong Kong
       (hereinafter jointly referred to as the "SELLER").

WHEREAS:

A.     The Company is a private company incorporated under the laws of Hong Kong
       SAR whose principal place of business is Flat C, 19/F, Mai Wah Industrial
       Building, 1-7 Wah Sing Street, Kwai Chung, N.T., Hong Kong.

B.     The Company has an authorized capital of HKD 10,000, representing the
       entire capital of the Company (the "SHARES"), and is beneficially owned
       by shareholder as set out in Part I of Schedule 1.

C.     The Company owns an operation that engages in the development,
       manufacturing, and marketing of digital multimedia entertainment kiosks
       with the Trademark Video Club and the domain name videoclub.com.hk. (the
       "Business");

D.     The Seller wishes to sell to the Purchaser, and the Purchaser wishes to
       purchase from Seller the SALE SHARES; and in addition the Company agrees
       to issue to the Purchaser, and the Purchaser agrees to subscribe from the
       Company the Subscription Shares (details of which are set out in Part II
       of Schedule 1), all upon the terms and subject to the conditions set
       forth herein.

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E.     The Purchaser requires the Warrantor to give such representations,
       warranties, covenants and undertakings as are set out herein as a
       condition to the Purchaser's entry into this Agreement.

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

1.     INTERPRETATION

1.1    The Recitals and Schedules form part of this Agreement and shall have the
       same force and effect as if expressly set out in the body of this
       Agreement and any reference to this Agreement shall include the Recitals
       and Schedules.

2.2    In this Agreement except where the context otherwise requires the
       following words and expressions shall have the following meanings:

"BVI"                    The British Virgin Islands;

"COMPLETION"             completion of the sale and purchase of the Sale Shares
                         in accordance with Clause 5 of this Agreement;

"COMPLETION DATE"        March 31, 2004 on or before 6 p.m. Hong Kong Time (or
                         such later date as the parties shall agree in writing);

"CONDITIONS"             the conditions contained or referred to in Clause 4;

"CONSIDERATION"          the consideration payable for the sale and purchase of
                         the Sale Shares and the subscription of the
                         Subscription Shares to the COMPANY to the Company
                         pursuant to Clause 3 [as adjusted by clause 6];

"HONG KONG"              Hong Kong Special Administrative Region of the PRC;

"HK$"                    Hong Kong dollars;

"NET INCOME"             means, for any period, based on the management accounts
                         of the Company, all revenues, income, earnings or cash
                         flow of any kind or description received during such
                         period by the Company minus all costs, expenses and
                         taxes paid (whether income, corporate, sales or
                         otherwise to the relevant tax authorities) paid or
                         incurred during such period by the Company in the
                         ordinary course of its business, together with amounts
                         used to replenish and fund the reserves (if any) in
                         accordance with the US GAAP;

 "PACT SHARES"           Ordinary shares of PacificNet Inc. (NASDAQ:PACT);

"PRC"                    People's Republic of China, for the purpose of this
                         agreement, excluding Hong Kong, Taiwan and the Macau of
                         Special Administrative Region of the PRC;

"SALE SHARES"            the 100 ordinary shares of HK$1.00 each in the capital
                         of the Company (being (10%) of the entire issued share
                         capital of the Company enlarged by the allotment and
                         issue of the Subscription Shares) such shares being
                         beneficially owned by and registered in the name of the
                         Seller in the proportions inter se set out in Part I of
                         Schedule 1;

"SUBSCRIPTION SHARES"    the 200 new ordinary shares of HKD$1.00 each in the
                         capital of the Company (being (20%) which together with
                         the Sale Shares, being 30% of entire issued share
                         capital of the Company enlarged by the allotment and
                         issue of the Subscription Shares) to be issued to the
                         Purchaser;

"US$"                    United States dollars;

"UNITED STATES"          United States of America;

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1.3    Words and phrases (not otherwise defined in this Agreement) the
       definitions of which are contained or referred to in the Companies
       Ordinance (Cap. 32) shall be construed as having the meanings thereby
       attributed to them.

1.4    References in this Agreement to ordinances and to statutory provisions
       shall be construed as references to those ordinances or statutory
       provisions as respectively as modified (on or before the date hereof) or
       re-enacted (whether before or after the date hereof) from time to time
       and to any orders, regulations, instruments or subordinate legislation
       made under the relevant ordinances or provisions thereof and shall
       include references to any repealed ordinance or provisions thereof which
       has been so re-enacted (with or without modifications).

1.5    The headings are for convenience only and shall not affect the
       construction of this Agreement.

1.6    All representations, undertakings, warranties, indemnities, covenants,
       agreements and obligations given or entered into by more than one person
       are given or entered into jointly and severally.

1.7    Except where the context otherwise requires words denoting the singular
       include the plural and vice versa; words denoting any one gender include
       all genders; words denoting persons include incorporations and firms and
       vice versa.

1.8    Reference to clauses, sub-clauses, paragraphs and schedules are (unless
       the context requires otherwise) to clauses, sub-clauses, paragraphs and
       schedules of this Agreement.

1.9    The expressions the "Company", the "Seller" and the "Purchaser" shall
       unless the context requires otherwise shall include their successors,
       personal representatives and permitted assigns.

1.10   The schedules and appendices form part of this Agreement.

2.     SALE OF SHARES

2.1    Subject to the terms of this Agreement, the Seller shall sell as
       beneficial owner and the Purchaser (relying on the representations,
       warranties, agreements, covenants, undertakings and indemnities
       hereinafter referred to) shall purchase the SALE SHARES free from all
       options, liens, charges, pledges, claims, agreements, encumbrances,
       equities and other third party rights of any nature whatsoever and
       together with all rights of any nature whatsoever now or hereafter
       attaching or accruing to it including all rights to any dividends or
       other distribution declared paid or made in respect of them after the
       date of this Agreement.

2.2    Subject to and upon the terms and conditions of this Agreement, the
       Purchaser shall subscribe for and the Company shall allot and issue the
       Subscription Shares free from all options, liens, charges, pledges,
       claims, agreements, encumbrances, equities and other third parties rights
       of any nature whatsoever subject to and upon the terms and conditions of
       this Agreement.

2.3    The Subscription Shares shall be allotted and issued fully paid, and
       shall rank pari passu in all respects among themselves and with the
       Shares in issue on the date of allotment and issue, including the right
       to receive all dividends, distributions and other payments made or to be
       made the record date for which falls on or after the date of such
       allotment and issue.

                                       3
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3.     CONSIDERATION

3.1    The Consideration below for the Sale Shares and Subscription Share shall
       be settled in accordance with the following provisions that the Purchaser
       will pay:
       (a)    149,459 Restricted PACT Shares (the "Escrow Shares") with a values
              of USD $771,208.44 (approximately HKD 6,000,001.66 using exchange
              rate of 1USD= 7.78 HKD) based on a $5.16 PACT Share Price, PAYABLE
              TO SELLERS FOR THE SALE SHARES, in accordance with the following:
              (i)    Within 30 days of the signing of this agreement, purchaser
                     shall deliver to the Escrow Agent (designated by the
                     Purchaser) the Escrow Shares, to be held under the terms of
                     an escrow agreement to be entered into with the Escrow
                     Agent, being the remaining payment of the purchase
                     consideration;

       b)     USD $385,604.11 (approximately HKD 3,000,000 using exchange rate
              of 1USD= 7.78 HKD) PAYABLE TO THE COMPANY FOR THE SUBSCRIPTION
              SHARES within 30 days after the Completion as defined in Clause 5
              of this Agreement, and;

       c)     A Common Stock Purchase Warrant to purchase 80,000 shares
              ("Warrant Shares") of PACT Common Stock, par value $0.0001 per
              share to the Company or its nominee. The purchase price of one
              share of Common Stock (the "Exercise Price") under this Warrant
              shall be $6.00, exercisable within 3 years from the date of
              issuance.

3.2    In the event that:

       (a)    the Purchaser fails to receive any required regulatory approvals
              by the SEC, NASDAQ, or fails to receive the approval of the
              Shareholders of PACT if required; or
       (b)    the conditions set out in Clause 5 shall not have been fulfilled
              by the Completion Date or such other date as the parties hereto
              may agree in writing; or
       (c)    the transaction is not completed for any reason by April 30, 2004;

       the Escrow Agreement shall provide that the Escrow Shares shall be
       returned to the Purchaser within ten (10) days following the date on
       which the Purchaser rescinds this Agreement.

3.3    Escrow Arrangement for Consideration Shares

       The Warrantor hereby agrees and acknowledges that the total Consideration
       payable by the Purchaser is based on Warrantor's warranty in respect of
       the Net Income of the Company as described in this section. In this
       regard Warrantor hereby agrees to allow the Purchaser to appoint the
       Escrow Agent upon the terms of the Escrow Agreement in the agreed terms
       to hold all the Escrow Shares to be issued in accordance with the Escrow
       Agreement and this Agreement on Completion and Warrantor undertakes that
       it shall not either sell, transfer, charge, encumber, grant options over
       or otherwise dispose of, or of any legal or beneficial interest in any of
       the Consideration Shares until such part of the Consideration Shares are
       released by the Escrow Agent to Warrantor in accordance with the
       following schedule :
<TABLE>
<CAPTION>
      -------------------------------------------------------- ---------------- ---------------------------------
      Release Date                                             Number of        Release Criteria based on
      (If receiving funds by March 31, 2004, assuming          Shares to be     Accumulated Net Income
      receipt by PACT Auditors of certification that the       Released
      auditor's review relating to Company and its business
      is acceptable and can be consolidated into PACT's
      audited accounts, balance sheet and financial
      statements, in accordance with the US GAAP.)
      -------------------------------------------------------- ---------------- ---------------------------------
<S>   <C>
      3.3.1.  45 days after closing.                           123,751
                                                               restricted
                                                               PACT Shares
      -------------------------------------------------------- ---------------- ---------------------------------

                                       4
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      -------------------------------------------------------- ---------------- ---------------------------------
      3.3.2. Within 30 days from the receipt of the            6,427            Company has achieved Net Income
      Auditors certification of the Net Income for the 6       restricted       for the 6 months ending on June
      months ending on June 30, 2004.                          PACT Shares      30, 2004 not less than HKD 400,000.
      -------------------------------------------------------- ---------------- ---------------------------------
      3.3.3. Within 30 days from the receipt of the            6,427            Company has achieved Net Income
      Auditors certification of the Net Income for the 9       restricted       for the 3 months ending on
      months ending on September 30, 2004.                     PACT Shares      September 30, 2004 not less than
                                                                                HKD 500,000.
      -------------------------------------------------------- ---------------- ---------------------------------
      3.3.4. Within 30 days from the receipt of the            6,427            Company has achieved Net Income
      Auditors certification of the Net Income for the 12      restricted       for the 3 months ending on December
      months ending on December 31, 2004.                      PACT Shares      31, 2004 not less than HKD 600,000.
      -------------------------------------------------------- ---------------- ---------------------------------
      3.3.5. Within 30 days from the receipt of the            6,427            Company has achieved Net Income
      Auditors certification of the Net Income for the 3       restricted       for the 12 months ending on
      months ending on March 31, 2004.                         PACT Shares      December 31, 2004 plus the 3 months
                                                                                ending on March 31, 2005 not less
                                                                                than HKD 1,000,000.
      -------------------------------------------------------- ---------------- ---------------------------------
      TOTAL NUMBER of PACT Shares to be released from the      149,459          Company will be entitled to the
      Escrow                                                   restricted       entire escrow shares if it has
                                                               PACT Shares      achieved Net Income for the 12 months
                                                                                ending on December 31, 2004 plus
                                                                                the 3 months ending on March 31,
                                                                                2005 not less than HKD 2,500,000
      -------------------------------------------------------- ---------------- ---------------------------------
</TABLE>

         Purchaser agrees that on the relevant release date (as referred to in
         the above schedule) the Seller or its nominee(s) will collect the
         relevant portion of the Escrow Shares from the Escrow Agent (if the
         Release Criteria has been met).

3.4    Net Income Warranty by Warrantor, Bonus Shares, and Penalty

         3.4.1    Warrantor warrants, represents and undertakes that:
                  (i)      the total Net Income for the 12 months ending on
                           December 31, 2004 plus the 3 months ending on March
                           31, 2005 ("First Term") will not be less than HKD
                           2,500,000.
                  (ii)     the total Net Income of COMPANY for the period from
                           April 1, 2005 to March 31, 2006 ("Second Term") will
                           not be less than HKD 3,500,000.

         3.4.2    BONUS SHARES FOR ACHIEVING NET INCOME EXCEEDING THE PROFIT
                  GUARANTEE:
                  (i)      Subject to Completion having occurred and the terms
                           of this Agreement, after the end of First Term,
                           within 30 days of the Auditors certification that the
                           audited financial statements relating to COMPANY and
                           its business is acceptable and can be consolidated
                           into PACT's audited accounts, balance sheet and
                           financial statements, in accordance with the US
                           GAAP., the Company Shareholder shall be entitled to
                           subscribe for and be issued and allotted the
                           following number of Bonus Shares at par value based
                           on the Net Income of the Company, according to the
                           following formula: Number of Bonus Shares to be
                           issued for First Term = (Net Income Amount in USD$
                           for First Term in excess of HKD 2,500,000) x 30%/(30-
                           Day Volume Weighted Average Price of the Common Stock
                           of PACT beginning from the day after the end of the
                           First Term).
                  (ii)     The Number of Bonus Shares must not exceed
                           50,000 shares of the common stock of PACT.
                  (iii)    Upon the Seller being entitled to subscribe for the
                           relevant number of Bonus Shares pursuant to the above
                           formula and payment of the par value on each Bonus
                           Share to PACT, the Purchaser shall procure PACT to
                           issue the relevant number of Bonus Shares to the
                           Seller within 30 days of the Announcement of the
                           First Term Result.

                                       5
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         3.4.3    PENALTY IN CASE OF SHORTFALL OF NET INCOME BELOW HKD 2,500,000
                  FOR THE PERIOD 12 MONTHS AFTER RECEIVING FUNDS: In the event
                  that Company produces only a portion of the annual Net Income
                  warranted by Warrantor for the 12 months after receiving
                  funds, then Seller shall return to Purchaser the number of
                  PACT shares equivalent to the dollar amount of the shortfall
                  of the Net Income divided by US$6.00 (the original per share
                  price of the PACT stock at the closing).

3.5    Purchaser will help to the Company to apply for a credit-line bank
       facility and Letter of Credits.

3.6    USE OF PROCEEDS: The cash from Purchaser to Company will be used for
       general operation mainly to acquire hardware components and for market
       development. Purchaser will appoint financial controller to Company.

3.7    In case of any stock split or reverse stock split by PACT, the number of
       PACT shares to be issued, awarded, or returned will be adjusted according
       to the stock split ratio.

3.8    Option Agreement for the Purchaser to Maintain 51% Ownership:
       All parties hereby agree that upon Completion, the Company shall
       immediately grant an option or warrant to the Purchaser to purchase
       additional shares at the consideration of price against net earning ratio
       of eight, in order for the Purchaser to maintain a 51% ownership in the
       Company before the event of any share dilution. Such option or warrant
       shall be exercisable before any share dilution caused by any new issuance
       of shares by the Company for the purpose of fund raising, private
       placement, public offering, or other corporate activity, after one year
       and within two years after the Completion.

4      CONDITIONS

4.1    Any of the obligation of Purchaser hereunder is conditional upon:

       4.1.1  the Purchaser being satisfied in its sole and absolute discretion
              with the results of a legal and financial due diligence review to
              be conducted by it on the Company;

       4.1.2  if required, the relevant stock exchange, government and
              securities authority and regulator in the United States granting
              listing of the PACT Shares to be issued herein;

       4.1.3  if required, a resolution at a meeting of the Directors of PACT
              approving this Agreement, the purchase of the Sale Shares and the
              Subscription of the Subscription Shares, creating and giving
              authority for the issue of the Escrow Shares, the implementation
              of the transactions contemplated hereunder and all other matters
              incidental hereto in accordance with the provisions of PACT's
              articles of association and Bylaws and such rules, regulations and
              laws in force from time to time in the United States and which
              apply to PACT;

       4.1.4  all amounts outstanding to the Seller by the Company have been
              either repaid to the Company or otherwise waived; and

       4.1.5  the Purchaser being satisfied that the accounts of the Company can
              be consolidated into PACT's pro-forma audited accounts, balance
              sheet and financial statement in accordance with the US GAAP.

4.2    The Seller and the Company undertakes to disclose in writing to the
       Purchaser anything which will or may prevent any of the conditions from
       being satisfied at or prior to Completion, as applicable, immediately
       upon the Seller and/or the Company becoming aware of such a situation.

4.3    From the date of this Agreement until Completion, except for the
       transactions described herein or otherwise with the prior written consent
       of the Purchaser:

       (a)    The Seller and Warrantor warrants and undertakes that they will
              cause the Company to:

              (i)    conduct its Business in the ordinary course and consistent
                     with past practices;

              (ii)   use its best efforts to maintain in full force and effect
                     the existence of the Company;

              (iii)  promptly and timely prepare and file any financial reports
                     and franchise tax returns and pay all taxes and
                     assessments, if any, required to maintain the existence of
                     the Company;

                                       6
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              (iv)   keep records in which true and correct entries will be made
                     of all material transactions by and with the Company;

              (v)    duly observe all material requirements of governmental
                     authorities unless contested in good faith by appropriate
                     proceedings with the consent of the Purchaser;

              (vi)   promptly pay and discharge, or cause to be paid and
                     discharged, when due and payable, all lawful taxes,
                     assessments and governmental charges or levies imposed upon
                     the income, profits, property or business of the Company
                     unless contested in good faith by appropriate proceedings
                     with the consent of the Purchaser;

              (vii)  at all times comply with the provisions of all contracts,
                     agreements and leases to which the Company is a party,
                     unless contested in good faith by appropriate proceedings
                     with the consent of the Purchaser; and

              (viii) to use best endeavors to procure that the employees of the
                     Company at the date of this Agreement remain and continue
                     as employees after completion;

       (b)    The Seller and Warrantor warrants and undertakes to cause the
              Company not to:

              (i)    modify its [Memorandum or Articles of Association] and
                     [Bylaws];

              (ii)   cause or permit its liquidation or dissolution;

              (iii)  institute, or permit to be instituted against it, any
                     proceeding, which remains undismissed for a period of [30]
                     days after the filing thereof, seeking to adjudicate it as
                     bankrupt or insolvent, or seeking liquidation, winding-up,
                     reorganization, arrangement, adjustment, protection, relief
                     or composition of it or its debts under any law relating to
                     bankruptcy, insolvency or reorganization or relief of
                     debtors, or seeking the entry of any order or relief or the
                     appointment of receiver, trustee or other similar official
                     for it or for any substantial part of its property;

              (iv)   make a general assignment for the benefit of its creditors;

              (v)    except as agreed in this Agreement or with consent of the
                     Purchaser, declare or pay any dividend or make any
                     distribution to any of its shareholders;

              (vi)   issue, redeem, sell or dispose of, or create any obligation
                     to issue, redeem, sell or dispose of, any shares of its
                     capital stock (whether authorized but unissued or held in
                     treasury);

              (vii)  effect any stock split, reclassification or combination;

              (ix)   modify its agreements and other obligations with respect to
                     its long-term indebtedness, including but not limited to
                     its loan agreements, indentures, mortgages, debentures,
                     notes and security agreements;

                                       7
<PAGE>

4.4    Until Completion, the Warrantor and the Company shall procure that the
       Purchaser, its agents and representatives are given reasonable access to
       such documents relating to the Company, as the Purchaser shall request
       reasonably request for the purpose of conducting its due diligence under
       this Agreement. The Company will also assist the Purchaser's auditor to
       complete the audit report of the Company in accordance with the US GAAP
       by April 20, 2004.

4.5    The Warrantor warrants, represents and undertakes that there shall have
       been no Material Adverse Change in the assets or the business, prospects,
       financial condition or results of operations of the Company.

4.6    The Purchaser shall be entitled to rescind this Agreement by notice in
       writing to the Seller and the Company, if prior to Completion it appears
       that any of the Warranties is not or was not true and accurate in any
       respects or if any act or event occurs which, had it occurred on or
       before the date of this Agreement, would have constituted a breach of any
       of the Warranties or if there is any material non fulfillment of any of
       the Warranties which (being capable of remedy) is not remedied prior to
       Completion.

5        COMPLETION

5.1    Subject to the terms of this Agreement and subject to the approval of the
       board of directors of the Purchaser, Completion shall take place pursuant
       to this clause at the offices of the Purchaser's Legal Counsel on the
       Completion Date.

5.2    Upon Completion the Seller and the Company shall:

       (a) deliver to the Purchaser:

              (i)    duly completed and signed transfers of the Sale Shares by
                     the registered holders thereof in favor of the Purchaser or
                     as it may direct together with the relative bought/sold
                     notes and share certificates;

              (ii)   duly completed, executed and validly issued share
                     certificates of the Sale Shares and the Subscription Share
                     in favor of the Purchaser or as it may direct;

              (iii)  certified true copies of the minutes of meetings of the
                     Company's board of directors and shareholders approving the
                     transfer of the Sale Share and the issuance and allotment
                     of the Subscription Shares to the Purchaser.

6      REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

6.1    The Company, Seller, and the Warrantor jointly and severally, represents,
       warrants and undertakes to the Purchaser (to the intent that the
       provisions of this clause shall continue to have full force and effect
       notwithstanding completion) that :

       6.1.1  each of the Warranties is true and accurate in all respects and
              not misleading at the date of this Agreement and will continue to
              be true and accurate in all respects and not misleading up to and
              including the Completion Date;

       6.1.2  the Company and the Seller have and will have full power and
              authority to enter into and perform this Agreement which
              constitute or when executed will constitute binding obligations on
              them in accordance with their respective terms;

       6.1.3  the Sale Shares and the Subscription Shares will constitute 30
              percent of the entire issued and allotted capital of the Company,
              enlarged by the allotment and issuance of the Subscription Shares,
              on a fully diluted basis;

       6.1.5  there have been no options, warrants, pledges, bonds or any
              instrument or agreement of the like whatsoever granted to any
              third party by any of the Seller in favor of any third party in
              respect of any shares in the Company;

                                       8
<PAGE>

       6.1.6  there is and at completion will be no pledge, lien or other
              encumbrance on, over or affecting the Sale Shares and there is and
              at completion will be no agreement or arrangement to give or
              create any such encumbrance and no claim has been or will be made
              by any person to be entitled to any of the foregoing;

       6.1.7  the Seller will be entitled to transfer the full legal and
              beneficial ownership of the Sale Shares to the Purchaser on the
              terms of this Agreement without the consent of any third party;

       6.1.8  the Seller is an "accredited investor" as defined pursuant to
              Regulation D of the Securities Act of 1933, as amended. The Seller
              acknowledges that the Escrow Shares have not been registered and
              are "restricted securities";

       6.1.9  the Company listed in Part I of Schedule 2 are all the present
              subsidiaries of the Company;

       6.1.10 the information in Schedule 2 relating to the Company is true and
              accurate in all respects;

       6.1.11 the contents of the Disclosure Letter and of all accompanying
              documents are true and accurate in all respects and fully, clearly
              and accurately disclose every matter to which they relate;

       6.1.12 each of the Company and the Subsidiary are duly incorporated and
              validly existing in its relevant jurisdiction of incorporation;

       6.1.13 the Purchase will have the first right of refusal to purchase
              equity of Zhu Kuan ID Innovation Ltd. ("ZKIDI" or Chinese Name:
              "chinese characters here") at the same cost that the Seller or/and
              thE WARRantor or their affiliates might acquire from ZKIDI's 70%
              owner Harmony Asset;

       6.1.14 With the exception of third party software such as Microsoft, all
              software, know how, and all intellectual properties included in
              the Multimedia Kiosks are owned by the Company and the Seller. The
              Seller does hereby grant the Company perpetual and royalty free
              license of all their individual intellectual property rights,
              including but not limited to the patients granted and patients
              pending.

7      RESTRICTIONS

7.1    The Sellers and the Warrantors undertakes to the Purchaser that they
       shall not without the prior written consent of the Purchaser for a period
       of 2 years after Completion either solely or jointly with or on behalf of
       any other person, firm, company, trust or otherwise whether as director,
       shareholder, employee, partner, agent or otherwise:

       (a)   carry on or be engaged or interested directly or indirectly in any
             capacity (except as the owner of shares or securities listed or
             dealt in on a stock exchange in Hong Kong, PRC, and USA or
             elsewhere held by way of investment only) in any business which
             shall be in competition within Hong Kong, PRC, and USA with the
             Company or its subsidiaries in the current business of the Company;

       (b)   solicit or entice or endeavor to solicit or entice away from the
             Company or its subsidiaries any employee, officer, manager,
             consultant (including employees who are directors) of the Company
             or its subsidiaries or any persons whose services are otherwise
             made available to the Company or its subsidiaries;

       (c)   deal with, canvass, solicit or approach or cause to be dealt with,
             canvassed or solicited or approached for business in respect of any
             trade or business carried on or service provided by the Company or
             its subsidiaries any person, firm or company who at Completion or
             within two years prior to Completion was a customer, supplier,
             client, representative, agent of or in the habit of dealing under
             contract with the Company or the Subsidiaries;

7.2    The Sellers and the Warrantors further undertake to the Purchaser that:

       (a)   they will not at any time hereafter make use of or disclose or
             divulge to any person other than to officers or employees of the
             Company whose province it is to know the same any information
             relating to the Company or the subsidiaries other than any
             information properly available to the public or disclosed or
             divulged pursuant to an order of a court of competent jurisdiction;

                                       9
<PAGE>

       (b)   they will not at any time hereafter in relation to any trade,
             business or company use a name, or internet domain name including
             the word [or symbol, or logo design] ["Video Club"] or any similar
             word [or symbol] in such a way as to be capable of or likely to be
             confused with the name of the Company [or any subsidiary] and shall
             use all reasonable endeavors to procure that no such name shall be
             used by any person, firm or company with which [it is/they are]
             connected;

       (c)   they will procure that its subsidiaries, holding company and any
             other affiliated companies and its employees will observe the
             restrictions contained in this Clause 7;

       (d)   they shall not do anything which might prejudice the goodwill of
             the Company or its subsidiaries.

7.3    Each and every obligation under this clause shall be treated as a
       separate obligation and shall be severally enforceable as such and in the
       event of any obligation or obligations being or becoming unenforceable in
       whole or in part such part or parts as are unenforceable shall be deleted
       from this clause and any such deletion shall not affect the
       enforceability of all such parts of this clause as remain not so deleted.

7.4    The restrictions contained in this clause 7 are considered reasonable by
       the parties but in the event that any such restriction shall be found to
       be void but would be valid if some part thereof were deleted or the area
       of operation or the period of application reduced such restriction shall
       apply with such modification as may be necessary to make it valid and
       effective.

7.5    Nothing in this Clause 7 shall apply to:

       (a)   the continuing involvement or any involvement by any of Seller or
             Warrantors in any business in which he is on the date of this
             Agreement directly or indirectly interested; or

       (b)   the direct or indirect holding of any securities listed on a
             recognized stock exchange where the total voting rights exercisable
             at general meetings of the company concerned as represented by such
             holding do not exceed 10 per cent of the total voting rights
             attaching to the securities of the same class as that held by the
             Seller or a Warrantor;

       (c)   the holding by the Seller or a Warrantor of any securities of any
             member of the Group; or

       (d)   the use or disclosure of any information in the public domain
             (otherwise than in consequence of any breach by any of the Seller
             or Warrantors of any provisions of this Agreement).

8      RIGHT OF FIRST REFUSAL

8.1    Before any shares in the Company may be sold or otherwise transferred or
       disposed of by any of the Shareholders of the Company ("Selling
       Shareholder", including but not limited to the Seller), the Purchaser
       shall have a right of first refusal ("Right of First Refusal") to
       purchase such shares ("Offered Securities") in accordance with Clauses
       (8.2) and (8.3) below.

8.2    Before the transfer or disposal of any Offered Securities, the Selling
       Shareholder shall deliver to the Purchaser and the Company a written
       notice ("Transfer Notice") stating :-

       (a)    the Selling Shareholder's intention to sell or otherwise dispose
              of such Offered Securities;
       (b)    the name of each proposed purchaser or other transferee (a
              "Proposed Transferee");
       (c)    the number of Offered Securities to be transferred to each
              Proposed Transferee; and
       (d)    the cash price and/or other consideration for which the Selling
              Shareholder proposes to transfer the Offered Securities to the
              Proposed Transferee ("OFFERED PRICE").

       The Transfer Notice shall certify that the Selling Shareholder has
       received a firm offer from the Proposed Transferee(s) and in good faith
       believes a binding agreement for the Disposal is obtainable on the terms
       set forth in the Transfer Notice. The Transfer Notice shall also include
       a copy of any written proposal, term sheet or letter of intent or other
       agreement relating to the proposed disposal. The Transfer Notice shall
       constitute an irrevocable offer by the Selling Shareholder to sell the
       Offered Securities to the Purchaser.

                                       10
<PAGE>

8.3    The Purchaser shall have a right, upon notice to the Selling Shareholder
       at any time within 15 calendar days after receipt of the Transfer Notice,
       to purchase all, any or a portion of such Offered Securities at (a) such
       price per share of the Offered Securities as (i) determined by an
       independent international appraiser experienced in the valuation of such
       shares and business of the Company as chosen by the Purchaser or (ii) the
       Offered Price, which ever shall be lower ("Purchaser Offer Price"); and
       (b) upon the same terms (or as similar as reasonably possible), upon
       which the Selling Shareholder is proposing or is to dispose of such
       Offered Securities, save the sale/purchase price shall be the Purchaser
       Offer Price, and the Selling Shareholder shall, upon receipt of the
       notice of purchase from the Purchaser, sell such Offered Securities to
       the Purchaser pursuant to such terms, with such closing to take place
       within 45 calendar days after delivery of the Transfer Notice ("Purchase
       Right Period").

8.4    If any of the Offered Securities proposed in the Transfer Notice to be
       transferred are not purchased by the Purchaser, then after expiry of the
       Purchase Right Period, the Selling Shareholder may sell or otherwise
       transfer or dispose of such Offered Securities which have not been
       purchased by the Purchaser at the Offered Price or at a higher price,
       provided that such sale or other transfer shall be completed and
       consummated within 45 days after the expiry of Purchase Right Period, and
       provided further that the Proposed Transferee agrees in writing that the
       provisions of this Agreement and any shareholder's agreement between the
       Purchaser and the Seller regulating their respective rights within the
       Company (if any) shall continue to apply to the Offered Securities that
       are transferred to the Proposed Transferee. If the Offered Securities
       described in the Transfer Notice are not transferred to the Proposed
       Transferee within such 45 day period, such Selling Shareholder will not
       transfer or dispose of any Offered Securities unless such securities are
       first re-offered to the Purchaser in accordance with Clauses (8.2) and
       (8.3) above.

Notwithstanding the procedures set forth above, if one Party wishes to transfer
its ownership shares to its affiliate, the other Party shall promptly give
consent to such proposed transfer and waive the right of first refusal.
"Affiliate" shall mean any company which, through ownership of voting stock or
otherwise, is controlled by, under common control with, or in control of, a
Party; "control" shall mean ownership, directly or indirectly, of more than
fifty percent (50%) of the securities having the right to vote for the election
of directors in the case of a corporation, and more than fifty percent (50%) of
the beneficial interests in the capital in the case of a business entity other
than a corporation.

9      BOARD OF DIRECTORS, OPERATION AND MANAGEMENT

9.1    The board of directors of the Company shall be the highest authority of
       the Company and shall determine all major issues of the Company.

9.2    The board of directors of the Company shall be nominated by the
       shareholders and composed of Five (5) directors, 2 directors to be
       nominated by Purchaser and 3 directors to be nominated by the Seller.

9.3    The board of directors shall meet at least once every quarter. A Board
       meeting may be called by any director.

9.4    The Company shall establish an operation and management structure to be
       responsible for the daily operation and management of the Company. The
       Company officers shall include one (1) General Manager, one (1) Vice
       General Manager, and one Chief Financial Officer.

9.5    The task of the General Manager shall be to carry out the various
       resolutions of the board of directors of the Company and organize and
       direct the daily operation and management of the Company. The operation
       and management structure may consist of certain departments, the managers
       for which shall be responsible for the work of the relevant departments,
       handle matters delegated by the General Manager and the Vice General
       Manager, and report to the General Manager and the Vice General Manager.

9.6    In the event of graft or serious dereliction of duty, the General Manager
       and the Vice General Manager may be removed and replaced by the board of
       directors of the Company with a resolution at any time.

                                       11
<PAGE>

10     INDEMNITY

The Seller and the Warrantor will indemnify and will keep indemnified and save
harmless the Purchaser (for itself and as trustee for the Company from and
against any and all losses, claims, damages (including lost profits,
consequential damages, interest, penalties, fines and monetary sanctions)
liabilities and costs incurred or suffered by the Purchaser by reason of,
resulting from, in connection with, or arising in any manner whatsoever out of
the breach of any Warranties or covenants or the inaccuracy of any
representation of the Seller or the Warrantor contained or referred to in this
Agreement or in any agreement, instrument or document delivered by or on behalf
of the Seller or the Warrantor in connection therewith including, but not
limited to, any dimunition in the value of the assets of and any payment made or
required to be made by the Purchaser or the Company or any Subsidiary and any
costs and expenses incurred as a result of such breach provided that the
indemnity contained in this clause 10 shall be without prejudice to any other
rights and remedies available to the Purchaser;

11     COSTS

The Purchaser shall pay for all the due diligence costs, not exceeding
HK$50,000, including auditing and valuation appraisal costs, fairness opinion
letter, legal costs, and expenses and other incidental costs and disbursements
in relation to the negotiations leading up to the purchase of the Sale Shares
and to the preparation, execution and carrying into effect of this Agreement.
The costs exceeding the amount of HK$50,000 shall be borne equally by the Seller
and the Purchaser.

12     COMPLETE AGREEMENT

This Agreement represents the entire and complete agreement between the parties
in relation to the subject matter hereof and supersedes any previous agreement
whether written or oral in relation thereto. No variations to this Agreement
shall be effective unless made or confirmed in writing and signed by all the
parties hereto.

13     SEVERABILITY

In the event that any provision of this Agreement is held to be unenforceable,
illegal or invalid by any court of competent jurisdiction, the validity,
legality or enforceability of the remaining provisions shall not be affected nor
shall any subsequent application of such provisions be affected. In lieu of any
such invalid, illegal or unenforceable provision, the parties hereto intend that
there shall be added as part of this Agreement a provision as similar in terms
to such invalid, illegal or unenforceable provision as may be possible and be
valid, legal and enforceable.

14     COUNTERPARTS

This Agreement may be executed in counterparts with the same force and effect as
if executed on a single document and all such counterparts shall constitute one
and the same instrument.

15     NOTICES

Any notice required to be given under this Agreement shall be sufficiently given
if delivered in person, forwarded by registered post or sent by overnight
international couriers or facsimile transmission to the relevant party at its
address, or fax number set out below (or such other address as the addressee has
by five days prior written notice specified to the other parties) :

           To the Purchaser  :
           Victor Tong, President
           PacificNet Strategic Investment Holdings Limited and PacificNet Inc.
           Room 2710, Hong Kong Plaza, 188 Connaught Road West, Hong Kong.
           Tel: +852-28762900
           Fax: +852-28590900

           To the Company:
           Attn:      Mr. Shek, Hiu Hung, CEO & President
                      Cheer Era Limited ("chinese characters here")
           Flat C, 19/F, Mai Wah Industrial Building, 1-7 Wah Sing Street,
           Kwai Chung, N.T., Hong Kong

           To the Seller:
           Attn:      Mr. Shek, Hiu Hung
                      Apex Legend Limited
         Flat C, 19/F, Mai Wah Industrial Building, 1-7 Wah Sing Street,
         Kwai Chung, N.T., Hong Kong

           To the Warrantor:
           Attn:      Mr. Shek, Hiu Hung
                      Mr. CHENG, Wai Shun Wilson
         Flat C, 19/F, Mai Wah Industrial Building, 1-7 Wah Sing Street,
         Kwai Chung, N.T., Hong Kong

                                       12
<PAGE>

16     SETTLEMENT OF DISPUTES

16.1   The formation of this Agreement and its Appendices and related
       agreements, and the validity, interpretation, performance and settlement
       of disputes thereof shall be governed by the laws of the Hong Kong SAR.

16.2   Any disputes arising out of or in connection with this Agreement shall be
       resolved through friendly consultations by the Parties; if no agreement
       can be reached through consultations within thirty (30) days after the
       occurrence of such dispute, either Party shall have the right to submit
       such dispute to the International Economic and Trade Arbitration
       Commission Hong Kong Branch for arbitration in Hong Kong in accordance
       with its procedures of arbitration. The arbitral award shall be final and
       binding upon both Parties.

17     GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of
Hong Kong. The parties hereto hereby irrevocably submit to the non-exclusive
jurisdiction of the courts of Hong Kong.

                                       13
<PAGE>

            IN WITNESS WHEREOF, each of the Purchaser, the Company, the Company,
the Seller, and the Warrantor has duly executed, or has caused to be duly
executed by their respective officers thereunto duly authorized, this Agreement
as of the date first written above.

THE PURCHASER:  PACIFICNET STRATEGIC INVESTMENT HOLDINGS LIMITED AND
                PACIFICNET INC.

                        By:          /s/ Victor Tong
                                     ------------------------------------------
                        Name:        Victor Tong
                        Title:       President

THE COMPANY:  CHEER ERA LIMITED ("chinese characters here")

                        By:          /s/ Shek, Hiu Hung
                                     ------------------------------------------
                        Name:        Mr. Shek, Hiu Hung
                        Title:       President & CEO

THE SELLER:

                        By:          /s/ Cheng, Wai Shun Wilson
                                     ------------------------------------------
                        Name:        Mr. CHENG, Wai Shun Wilson
                                     APEX LEGEND LIMITED

THE WARRANTOR:

                        By:          /s/ Shek, Hiu Hung
                                     ------------------------------------------
                        Name:        Mr. Shek, Hiu Hung

                        By:          /s/ Cheng, Wai-Shun Wilson
                                     ------------------------------------------
                        Name:        Mr. CHENG, Wai Shun Wilson

<PAGE>

SCHEDULE 1

PART I
THE COMPANY, COMPANY SHAREHOLDER, AND SHARES

Company Name: Cheer Era Limited ("chinese characters here")

Name of Shareholder (3)           Number of Shares held by the Shareholder (800)
-----------------------           ----------------------------------------------

Apex Legend Limited               800

       PART II
       THE SUBSCRIPTION SHARES

Number of the Subscription Shares:                        200

                                       15
<PAGE>

       SCHEDULE 2

       PART I
       THE COMPANY

NAME                        :         Cheer Era Limited
                                      ("chinese characters here")

INCORPORATED IN             :         Hong Kong SAR

AUTHORIZED SHARE CAPITAL    :         10,000 HKD

NO. ISSUED SHARES           :         800 SHARES
NOMINAL SHARE VALUE         :         1 HKD
ISSUED SHARE CAPITAL        :         800 HKD

REGISTERED OFFICE           :         Flat C, 19/F, Mai Wah Industrial Building,
                                      1-7 Wah Sing Street, Kwai Chung, N.T.,
                                      Hong Kong

BENEFICIAL SHAREHOLDERS     :         Apex Legend Limited

REGISTERED SHAREHOLDERS     :         Apex Legend Limited

DIRECTORS                   :         Sung, Sau Chun (HK ID: H315821(9))
                                      Shek, Hui Hung (HK ID: H448226(5))
                                      CHENG, WAI SHUN WILSON (HK ID: D631835(6))

                                       16
<PAGE>

       PART II
       Apex Legend Limited

NAME                        :         Apex Legend Limited

INCORPORATED IN             :         British Virgin Islands

AUTHORIZED SHARE CAPITAL    :         US$50,000.00

NO. ISSUED SHARES           :         100 SHARES
NOMINAL SHARE VALUE         :         US$1
ISSUED SHARE CAPITAL        :         US$100

REGISTERED OFFICE           :         Beaufort House
                                      P.O. Box 438, Road Town,
                                      Tortola, British Virgin Islands

BENEFICIAL SHAREHOLDERS     :         Cheng, Wai Shun Wilson
                                      Shek, Hiu Hung
                                      Sung Sau Chun
                                      Leung, Ching Yuen Ronald

REGISTERED SHAREHOLDERS     :         Sung, Sau Chun
                                      Cheng, Wai Shun Wilson

DIRECTORS                   :         Sung, Sau Chun
                                      Cheng, Wai Shun Wilson

       Apex Legend Limited SHAREHOLDERS

Company Name:  APEX LEGEND LIMITED

Name of Shareholder (2)            Number of Shares held by the Shareholder (85)
-----------------------            ---------------------------------------------
Sung, Sau Chun                     70
Cheng, Wai Shun Wilson             30

                                      -17-Westside Energy corporation

                        2004 CONSULTANT COMPENSATION PLAN

1.       Purpose

         The Westside Energy Corporation 2004 Consultant Compensation Plan (the
"Plan") is intended to promote the interests of Westside Energy Corporation and
its subsidiaries (collectively the "Corporation") by offering those outside
consultants of the Corporation who assist in the development and success of the
business of the Corporation, the opportunity to participate in a compensation
plan designed to reward them for their services and to encourage them to
continue to provide services to the Corporation.

2.       Definitions

         For all purposes of this Plan, the following terms shall have the
following meanings:

         "Common Stock" means Westside Energy Corporation common stock, $.10 par
value.

         "Conditional Shares" means shares of Common Stock awarded under this
Plan subject to conditions imposed by the Westside Energy Board (as defined
herein) or the conditions set forth in Section 6.2 or both.

         "Westside Energy" means Westside Energy Corporation, a Nevada
corporation.

         "Subsidiary" means any company of which Westside Energy Corporation
owns, directly or indirectly, the majority of the combined voting power of all
classes of stock.

         "Unconditional Shares" means shares of Common Stock awarded under this
Plan subject to no conditions.

3.       Administration

         The Westside Energy Board of Directors (the "Westside Energy Board")
shall administer the Plan. The Westside Energy Board shall make all final
decisions with respect to the persons to whom awards shall be granted
("Participants"), the number of shares that shall be covered by each award or
sale, the time or times at which awards shall be granted or sales shall be made,
the timing of when awards shall vest, the terms and provisions of the
instruments by which awards or sales shall be evidenced, the interpretation of
the Plan and all determinations necessary or advisable for its administration.

4.       Eligibility

         Only individuals who are outside consultants, or directors, officers,
partners or employees of outside consultants, of Westside Energy or any
Subsidiary shall be granted awards, but only if they render bona fide services
to Westside Energy or a Subsidiary that (a) are not in connection with the offer
and sale of Westside Energy's securities in a capital-raising transaction and
(b) do not directly or indirectly promote or maintain a market for Westside
Energy's securities..

5.       Stock Subject to the Plan

         The stock, which may be awarded or sold pursuant to this Plan, shall be
shares of Common Stock. When shares of Common Stock are awarded or sold,
Westside Energy may award or sell authorized but unissued Common Stock, or
Westside Energy may award or sell issued Common Stock held in its treasury. Each
of the respective boards of Westside Energy and all Subsidiaries involved in the
award or sale will fund the Plan to the extent so required to provide Common
Stock for the benefit of Participants. The total number of shares of Common
Stock that may be granted or sold under this Plan shall not exceed 3,000,000
shares in the aggregate. Any shares awarded and later forfeited are again
subject to award or sale under the Plan.

6.       Share Awards and Sales

         6.1      Grant of Share Awards

         The Westside Energy Board may award to Participants Unconditional
Shares and Conditional Shares. The Westside Energy Board will determine for each
Participant selected to be awarded Unconditional Shares and Conditional Shares
the time or times when Unconditional Shares or Conditional Shares shall be
awarded and the number of shares of Common Stock to be covered by each
Unconditional Shares or Conditional Share award. Unless expressly specified as
Conditional Shares by the Westside Energy Board, all shares of Common Stock
awarded under this Plan shall be Unconditional Shares. No Unconditional Shares
or Conditional Shares shall be awarded except for services performed or
contracts for services to be performed. Before Unconditional Shares or
Conditional Shares shall be awarded, the Westside Energy Board must determine
that the consideration received or to be received for the shares to be issued is
adequate. The judgment of the Westside Energy Board of directors as to the
adequacy of the consideration received for the shares issued is conclusive in
the absence of actual fraud in the transaction. When the Corporation receives
the consideration for which the Westside Energy Board authorized the issuance of
shares, the shares issued therefor shall be fully paid.

         6.2      Conditions

         Shares of Common Stock issued to a Participant as a Conditional Shares
award will be subject to the following conditions as well as all other
conditions imposed by the Westside Energy Board ("Share Conditions"):

                  (a) Except as set forth in Paragraphs 6.4 and 6.5, if Share
                  Conditions are not satisfied, Conditional Shares will be
                  forfeited and returned to Westside Energy or, in the event
                  such Conditional Shares were provided to the Participant from
                  shares of Common Stock purchased by the Subsidiary, then the
                  Conditional Shares will be returned to the Subsidiary. In
                  either case, all rights of the Participant to such Conditional
                  Shares will terminate without any payment of consideration by
                  Westside Energy or the Subsidiary with which the Participant
                  is associated, unless the Participant maintains his
                  association with Westside Energy or a Subsidiary for the
                  period of time (if any) determined by the Westside Energy
                  Board.

                  (b) During the condition period ("Condition Period") relating
                  to a Conditional Share award, none of the Conditional Shares
                  subject to such award may be sold, assigned, bequeathed,
                  transferred, pledged, hypothecated or otherwise disposed of in
                  any way by the Participant.

                  (c) The Westside Energy Board may require the Participant to
                  enter into an escrow agreement providing that the certificates
                  representing Conditional Shares sold or granted pursuant to
                  the Plan will remain in the physical custody of Westside
                  Energy or the applicable Subsidiary or an escrow holder during
                  the Condition Period.

                  (d) Certificates representing Conditional Shares sold or
                  granted pursuant to the Plan may bear a legend making an
                  appropriate reference to the conditions imposed on the
                  Conditional Shares.

                  (e) The Westside Energy Board may impose other conditions on
                  any Conditional Shares issued pursuant to the Plan as it may
                  deem advisable, including without limitations, restrictions
                  under the Securities Act of 1933, as amended, under the
                  requirements of any stock exchange upon which such share or
                  shares of the same class are then listed and under any state
                  securities laws or other securities laws applicable to such
                  shares.

         6.3      Rights of a Stockholder

         Except as set forth in Paragraph 6.2(b), the recipient of a Conditional
Share award will have all of the rights of a stockholder of Westside Energy with
respect to the Conditional Shares, including the right to vote the Conditional
Shares and to receive all dividends or other distributions made with respect to
the Conditional Shares.

         6.4      Lapse of Conditions

         In the event of the termination of association of a Participant during
the Condition Period by reason of death, disability, or termination of
association, the Westside Energy Board may, at its discretion, remove Share
Conditions on Conditional Shares. Conditional Shares to which the Share
Conditions have not so lapsed will be forfeited and returned to the Corporation
as provided in Paragraph 6.2(a).

         6.5      Lapse of Conditions at Discretion of the Westside Energy Board

         The Westside Energy Board may shorten the Condition Period or remove
any or all Share Conditions if, in the exercise of its absolute discretion, it
determines that such action is in the best interests of the Corporation and
equitable to the Participant.

         6.6      Listing and Registration of Shares

         Westside Energy may, in its reasonable discretion, postpone the
issuance and/or delivery of any shares of Common Stock awarded or sold pursuant
to this Plan until completion of stock exchange listing, or registration, or
other qualification of such shares under any law, rule or regulation.

         6.7      Designation of Beneficiary

         A Participant may, with the consent of the Westside Energy Board,
designate a person or persons to receive, in the event of death, any shares of
Common Stock to which such Participant would then be entitled pursuant to this
Plan. Such designation will be made upon forms supplied by and delivered to the
Westside Energy Board and may be revoked in writing by the Participant. If a
Participant fails effectively to designate a beneficiary, then such
Participant's estate will be deemed to be the beneficiary.

7.       Capital Adjustments

         The number and consideration of Common Stock covered by each award
granted or each sale under this Plan and the total number of shares that may be
granted or sold under the Plan shall be proportionally adjusted to reflect,
subject to any required action by stockholders, any stock dividend or split,
recapitalization, merger, consolidation, spin-off, reorganization, combination
or exchange of shares or other similar corporate change.

8. Westside EnergyWestside EnergyWestside EnergyWestside EnergyWestside
EnergyWestside EnergyWestside EnergyWestside EnergyWestside EnergyWestside
EnergyWestside EnergyWestside EnergyWestside EnergyApprovals

         The issuance of shares pursuant to this Plan is expressly conditioned
upon obtaining all necessary approvals from all regulatory agencies from which
approval is required.

9.       Effective Date of Plan

         The effective date of the Plan is April 15, 2004.

10.      Term and Amendment of Plan

         This Plan shall expire on April 15, 2014 (except to Conditional Shares
outstanding on that date). Westside Energy Board may terminate or amend the Plan
in any respect at any time, except no action of the Westside Energy Board, the
Westside Energy Board or Westside Energy's stockholders, however, may, without
the consent of a Participant, alter or impair such Participant's rights under
any Conditional Shares previously granted.

11.      No Right of Association

         Neither the action of Westside Energy in establishing this Plan, nor
any action taken by any Westside Energy Board or any Subsidiary or the Westside
Energy Board, nor any provision of the Plan itself, shall be construed to limit
in any way the right of Westside Energy to terminate a Participant's association
with the Corporation at any time.

12.      Withholding Taxes

         Westside Energy or any Subsidiary, as applicable, shall have the right
to deduct withholding taxes from any payments made pursuant to the Plan or to
make such other provisions as it deems necessary or appropriate to satisfy its
obligations to withhold federal, state or local income or other taxes incurred
by reason of payment or the issuance of Common Stock under the Plan. Whenever
under the Plan, Common Stock is to be delivered upon vesting of Conditional
Shares, the Westside Energy Board shall be entitled to require as a condition of
delivery that the Participant remit or provide for the withholding of an amount
sufficient to satisfy all federal, state and other government withholding tax
requirements related thereto.

13.      Plan not a Trust

         Nothing contained in the Plan and no action taken pursuant to the Plan
shall create or be construed to create a trust of any kind, or a fiduciary
relationship, between the Corporation and any Participant, the executor,
administrator or other personal representative, or designated beneficiary of
such Participant, or any other persons. If and to the extent that any
Participant or such Participant's executor, administrator or other personal
representative, as the case may be, acquires a right to receive any payment from
the Corporation pursuant to the Plan, such right shall be no greater than the
right of an unsecured general creditor of the Corporation.

14.      Notices

         Each Participant shall be responsible for furnishing the Westside
Energy Board with the current and proper address for the mailing of notices and
delivery of Common Stock pursuant to the Plan. Any notices required or permitted
to be given shall be deemed given if addressed to the person to be notified at
such address given to the Westside Energy Board by such person and mailed by
regular United States mail, first-class and prepaid. If any item mailed to such
address is returned as undeliverable to the addressee, mailing will be suspended
until the Participant furnishes the proper address. This provision shall not be
construed as requiring the mailing of any notice or notification if such notice
is not required under the terms of the Plan or any applicable law.

15.      Severability of Provisions

         If any provisions of this Plan shall be held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provisions
hereof, and this Plan shall be construed and enforced as if such provisions had
not been included.

16. Payment to Minors, etc.

         Any benefit payable to or for the benefit of a minor, an incompetent
person or other person incapable of receipting therefor shall be deemed paid
when paid to such person's guardian or the party providing or reasonably
appearing to provide for the care of such person, and such payment shall fully
discharge the Westside Energy Board, the Westside Energy Board, the Corporation
and other parties with respect thereto.

17.      Headings and Captions

         The headings and captions herein are provided for reference and
convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan.

18.      Controlling Law

         This Plan shall be construed and enforced according to the laws of the
State of Texas to the extent not preempted by federal law, which shall otherwise
control.

19.      Enforcement of Rights

         In the event the Corporation or a Participant is required to bring any
action to enforce the terms of this Plan, the prevailing party shall be
reimbursed by the non-prevailing party for all costs and fees, including actual
attorney fees, for bringing and pursuing such action.

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