Document:

Exhibt 10.1

 

AGREEMENT BETWEEN

 

THE GOVERNMENT OF

 

THE CO-OPERATIVE REPUBLIC OF
GUYANA

 

AND

 

ATLANTIC TELE-NETWORK, INC.

 

for

 

The sale to Atlantic Tele-Network, Inc. of eighty percent of the
shares in the Guyana Telephone and Telegraph Company proposed to be
incorporated by the said Government to take over the business and the assets
and liabilities of the Guyana Telecommunications Corporation.

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  THE TRANSACTION

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  REPRESENTATIONS AND WARRANTIES
  BY THE GOVERNMENT

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Organization of GTC

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Formation of GT&T

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Non-existence of Legal
  Impediments

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Authority, Permits and
  Licences

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Financial Statements

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  External Communications
  Settlements

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Interest in
  Transactions

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Taxes

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Corporate and Business
  Records

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.10

  	
  Litigation

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.11

  	
  Changes in Financial
  Condition

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.12

  	
  Absence of Certain
  Changes or Events

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.13

  	
  No Breach

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.14

  	
  Authority

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATION AND WARRANTIES OF
  ATN

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Corporate Structure of
  ATN

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Corporate Power and
  Action

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Investment Interest

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Capability

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Bankruptcy

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONSIDERATION

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Purchase Price of Shares

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Additional Payments

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  COVENANTS BY ATN

  	
  8

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Expansion and Service
  Improvement Plan

  	
  8

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Maintaining and
  Upgrading Quality of Services

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Public Interest
  Services

  	
  10

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Releasing the
  Government from the Liabilities of GTC and GT&T

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Taxes

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  Employment

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Training and Career
  Development

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.8

  	
  Welfare Plans

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.9

  	
  Rate Continuity

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.10

  	
  Switch to Switch Access

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.11

  	
  Privacy of
  Communications

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.12

  	
  Assignment of Shares of
  ATN in GT&T

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.13

  	
  Rights of the
  Government as Minority Shareholder in GT&T

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.14

  	
  Insurance

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  COVENANTS BY THE GOVERNMENT

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Licence

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Terms of Licences

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Cellular Radio
  Telephone Licence

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Cancellation of Licence

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Failure to Achieve
  Agreed Levels of Quality or Expansion

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.6

  	
  No Condonation of
  Breach

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.7

  	
  Establishment of Regulatory
  Body

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.8

  	
  Subscriber Rates

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.9

  	
  Rates of Return

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.10

  	
  Management Services

  	
  16

  
	
   

  	
   

  	
   

  
	
  6.11

  	
  Capital Dedicated to
  Telecommunications Business of GT&T

  	
  16

  
	
   

  	
   

  	
   

  
	
  6.12

  	
  Foreign Exchange
  Controls

  	
  16

  
	
   

  	
   

  	
   

  
	
  6.13

  	
  Duties and Taxes

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.14

  	
  Foreign Nationals

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.15

  	
  Conduct of Business
  before Closing

  	
  17

  
	
   

  	
   

  	
   

  
	
  6.16

  	
  Accounts Receivable

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.17

  	
  Right of Way

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.18

  	
  Banking

  	
  19

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  6.19

  	
  Overseas Private
  Investment Corporation (OPIC)

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  COVENANTS BY THE GOVERNMENT AND
  ATN

  	
  19

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  GT&T Stock

  	
  19

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Shareholding in
  GT&T

  	
  19

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Directors

  	
  20

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Board Meetings

  	
  20

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Obligations to Provide
  Universal Service

  	
  20

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Access to GTC’s
  Business Records

  	
  20

  
	
   

  	
   

  	
   

  
	
  7.7

  	
  Confidentiality of
  Information

  	
  20

  
	
   

  	
   

  	
   

  
	
  7.8

  	
  Best Efforts Regarding
  Compliance with Agreement

  	
  21

  
	
   

  	
   

  	
   

  
	
  7.9

  	
  Settlement of Accounts
  with Foreign Telecommunications Administrations

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  DUE DILIGENCE

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  CLOSING

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  CONDITIONS PRECEDENT TO
  OBLIGATION OF ATN

  	
  22

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Accuracy of
  Representations and Warranties

  	
  22

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Performance of
  Agreements

  	
  22

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Certificate

  	
  22

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Opinion of Counsel for
  the Government

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  CONDITIONS PRECEDENT TO
  OBLIGATION OF THE GOVERNMENT

  	
  23

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Accuracy of
  Representations and Warranties

  	
  23

  
	
   

  	
   

  	
   

  
	
  11.2

  	
  Performance of
  Agreements

  	
  23

  
	
   

  	
   

  	
   

  
	
  11.3

  	
  Certificate

  	
  23

  
	
   

  	
   

  	
   

  
	
  11.4

  	
  Opinion of Counsel for
  ATN

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  RENEWAL OF LICENCES

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Notices and
  Applications for Renewal of Licences

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  Renewal of Exclusive
  Licence After Expiry of Term

  	
  24

  
	
   

  	
   

  	
   

  
	
  12.3

  	
  Sale of Assets of
  GT&T on Non-renewal or Termination of Licence

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  FORCE MAJEURE

  	
  25

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Definition

  	
  25

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  13.2

  	
  Liability in the Event
  of Force Majeure

  	
  25

  
	
   

  	
   

  	
   

  
	
  13.3

  	
  Notice for Force
  Majeure

  	
  25

  
	
   

  	
   

  	
   

  
	
  13.4

  	
  Extension of Time for
  Force Majeure

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  INDEMNIFICATION

  	
  26

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Indemnification by
  Government

  	
  26

  
	
   

  	
   

  	
   

  
	
  14.2

  	
  Indemnification by ATN

  	
  26

  
	
   

  	
   

  	
   

  
	
  14.3

  	
  Making of Claims

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  SURVIVAL OF AGREEMENT TERMS

  	
  27

  
	
   

  	
   

  	
   

  
	
  15.1

  	
  Representations and
  Warranties

  	
  27

  
	
   

  	
   

  	
   

  
	
  15.2

  	
  Covenants and Certain
  Other Provisions

  	
  27

  
	
   

  	
   

  	
   

  
	
  15.3

  	
  Other Provisions

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
  GOVERNING LAW; WAIVER OF
  SOVEREIGN IMMUNITY; SUBMISSION TO JURISDICTION

  	
  27

  
	
   

  	
   

  	
   

  
	
  16.1

  	
  Governing Law

  	
  27

  
	
   

  	
   

  	
   

  
	
  16.2

  	
  Waiver of Sovereign
  Immunity

  	
  27

  
	
   

  	
   

  	
   

  
	
  16.3

  	
  Submission to
  Jurisdiction

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  WAIVERS

  	
  28

  
	
   

  	
   

  	
   

  
	
  17.1

  	
  Extension of Time and
  Waivers

  	
  28

  
	
   

  	
   

  	
   

  
	
  17.2

  	
  Waiver of Breach Not to
  Extend to Subsequent Breach

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  EFFECT OF HEADINGS

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
  NOTICES

  	
  29

  

 

iv

 

AGREEMENT made
on the 18th day of June, 1990 by and between the Government of the
Co-operative Republic of Guyana (hereinafter referred to as “the Government”)
represented by the Honourable W.H.L. Parris, C.C.H., M.P., Deputy Prime
Minster, Planning and Development of the First Part and the Atlantic Tele-network, Inc.,
a private limited company duly incorporated in the United States of America,
whose principal office is situated in 48A Kronprinosens Gade, Thomas, U.S.
Virgin Islands (hereinafter referred to as “ATN”), represented by Mr. Jeffrey J.
Prosser, the Chairman thereof, of the Second Part.

 

SECTION 1. THE TRANSACTION

 

Subject to the
representations, warranties and covenants by the Government and ATN herein
contained and the other terms and conditions specified herein, including, but
not limited to, the payment to the Government by ATN of the sum of money
specified as consideration in SECTION 4, the Government hereby agrees to
transfer to ATN, and ATN agrees to purchase from the Government, shares
representing eighty percent (80%) of the issued share capital of the Guyana
Telephone and Telegraph Company (hereinafter referred to as GT&T), a
private limited company which shall be incorporated by the Government and shall
take over the business and the assets and liabilities including a maximum of
seven million two hundred thousand dollars (US$7.2 million) of foreign currency
liabilities of the Guyana Telecommunication Corporation (hereinafter referred
to as GTC), a public corporation wholly owned by the Government. The credit of
ten million, five hundred thousand United States Dollars (US$10.5 million)
extended by Northern Telecoms to GTC shall not be a liability of Government or
GTC under this agreement.

 

SECTION 2. REPRESENTATIONS
AND WARRANTIES BY THE GOVERNMENT

 

The Government
represents and warrants to ATN or its nominee that:

 

2.1                                 Organization
of GTC. GTC is a public corporation, wholly owned by the Government and
established by the Guyana Telecommunication Corporation Order (No. 11 of
1967) made under section 46 of the Public Corporations Act, Chapter 19:05
of the Laws of Guyana, and continued under the Public Corporations Act 1988
(Act No. 21 of 1988).

 

2.2                                 Formation
of GT&T. The Government shall incorporate GT&T as a private limited
company to provide, subject to the laws of Guyana and such International

 

 

Telecommunication Conventions and any regulations made thereunder as
are for the time being in force in Guyana, internal and external
telecommunication services and to promote the economic development of the
telecommunication services in accordance with, as far as practicable, standard
practice recognized internationally and with public demand. In addition,
Government shall dissolve GTC and transfer to GT&T all the assets, save and
except such assets relating to those regulatory functions now vested in GTC as
set out in Annexure “A”, and liabilities including a maximum of seven million
two hundred thousand dollars (US$7.2 million) of foreign currency liabilities
of GTC under sections 9 and 11 of the Public Corporations Act 1988 (Act No. 21
of 1988).

 

2.3                                 Non-existence
of Legal Impediments. There are no legal impediments that restrict, negate
or impair the right of the Government to dissolve GTC, and to transfer its
assets and liabilities to GT&T, under sections 9 and 11 of the Public
Corporations Act 1988 (Act No. 21 of 1988), or to transfer any of the
shares in GT&T held by the Government, or any other person on behalf of the
Government, to ATN.

 

2.4                                 Authority,
Permits and Licences. No person other than GTC at present has any
Government authority, permit or licence in Guyana to legally carry on, conduct
or participate in any of the businesses, or provide any of the services,
specific in Section 6.1, except those expressly excluded by Section 6.3.

 

2.5                                 Financial
Statements. The audited financial statements of GTC for the year 1989 and
the interim financial statements for the quarter ending 31st March,
1990 are at Annexure “B”. Subject to the observations in the Audit Report, they
are correct and complete and fairly present the financial position of GTC as of
31st December 1989 and as of 31st March, 1990 (the
dates of the Balance Sheet and the interim quarterly statements respectively),
the results of its operations for the year ended 31st December 1989
and the quarter ended 31st March, 1990 and the assets and
liabilities of GTC on those dates.

 

2.6                                 External
Communications Settlements. At Annexure “C” is the most recent settlement
for a twelve month period and at Annexure “D” is GTC’s best estimate of the
anticipated settlement for the most recent twelve month period not finally
determined, of revenues from international data and voice telecommunication
services of GTC. Annexures “B”

 

2

 

and “C” set forth complete and accurate information regarding gross and
net settlements with each country or company constituting more than two and
one-half percent (2 1⁄2%) of GTC’s volume of business expressed in revenue,
for international data and voice telecommunications.

 

2.7                                 Interest
in Transactions. Save as is normal as between a corporate body operating a
telecommunications system and its subscribers and employees, no officer or
director of GTC or Government official has, in his personal capacity, any
direct or indirect interest in, or it’s a party to, any lease, licence,
contract, agreement or other obligation of GTC or is the holder, beneficial
owner, or the obligor of any note or other evidence of indebtedness of GTC.

 

2.8                                 Taxes.
GTC has filed all returns relating to taxes and duties required to be filed by
it under the laws of Guyana and paid the taxes and duties payable thereunder. The
vesting of the assets and liabilities of GTC in GT&T will not attract any
claim or assessment for additional taxes of any kind being asserted by the
Government.

 

2.9                                 Corporate
and Business Records. The corporate and business records of GTC are true
and accurate in all material respects. These records will be transferred to GT&T.

 

2.10                           Litigation.
There are no material claims, actions, suits, proceedings, judgment or orders,
pending or threatened against GTC.

 

2.11                           Changes
in Financial Condition. Since 31st December 1989, the date
of the last Balance Sheet, there has not been any material change in the
financial condition, assets, business or operations of GTC other than changes
in the ordinary and normal course of business, none of which has had a material
adverse effect on such financial condition, assets, business or operations.

 

2.12                           Absence
of Certain Changes or Events.

 

	
  (a)

  	
   

  	
  Since 31st December 1989, the date
  of the last Balance Sheet, GTC has not, except in the ordinary and normal
  course of its business, and consistent with good business practices:

  

 

3

 

	
   

  	
   

  	
  (i)

  	
  Incurred any obligation or liability, fixed or
  contingent, other than those under contracts, agreements and leases entered
  into in the ordinary and normal course of business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Discharged or satisfied any lien or encumbrance or
  paid any obligation or liability, whether fixed or contingent;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Mortgaged, pledged or subjected to lien, charge,
  security, interest or to any other encumbrance any of its asses or
  properties;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  Transferred, leased or otherwise disposed of any of
  its assets or properties, or acquired any assets or properties, other than
  for a fair consideration;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  Cancelled or compromised any debt or claim;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  Waived or released any rights of material value;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vii)

  	
  Transferred or granted any material rights under any
  concessions, leases, licences, agreements, inventions, trade names, trade
  marks, service marks, copyrights, registrations or licences thereof or
  applications therefor, or with respect to any know-how or other proprietary
  or trade rights;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (viii)

  	
  Made any increase in the compensation payable or to
  become payable by it to any of its employees, except for increases made in
  accordance with its established compensation policies applied on a basis
  consistent with previous practice, or increases made in connection with any
  Collective Bargaining Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ix)

  	
  Paid or provided for any bonus, stock option, profit
  sharing, pension, retirement or other similar payment or arrangement for or
  on behalf of its employees other than in the normal administration of its
  existing incentive, welfare, pension or retirement plans or 

  

 

4

 

	
   

  	
   

  	
   

  	
  arrangements, or in connection with any Collective
  Bargaining Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x)

  	
  Entered into any transaction of any nature with any
  of its officers or members;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xi)

  	
  Entered into any transaction, contract or commitment
  with the Government or any Government agency or authority or any other party
  which by reason of its size, nature or otherwise is not in the ordinary
  course of its business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xii)

  	
  Undertaken any material borrowing, whether under
  existing or new borrowing arrangements, and entered into any material loan
  agreements except the credit referred to in Section 2.11; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xiii)

  	
  Terminated, discontinued, closed or disposed of any
  facility or business operation.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Since 31st March, 1990 (the date of the
  last quarterly statement), GTC has not:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Entered into any employment arrangement or other
  contract or arrangement with respect to the performance of personal services
  which either (a) is not terminable without liability by it on thirty
  (30) days notice or less or (b) involves an annual rate of compensation
  in excess of G$84,000;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Made any loan to any of its officers, members or
  employees, or to any party other than in the ordinary course of business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Suffered any material casualty loss or damage,
  whether or not such loss or damage shall have been covered by insurance,
  which materially affects its ability to conduct its business;

  

 

5

 

	
   

  	
   

  	
  (iv)

  	
  Issued, sold or otherwise disposed of any evidence
  of indebtedness or other securities;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  Granted or made any options, rights, commitments or
  any other agreements of any character obligating it to issue any evidence of
  indebtedness or other securities, or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  Acquired any equity interest in any other
  corporation, partnership, joint venture or other business association.

  

 

2.13                           No
Breach. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby will not:

 

	
  (a)

  	
   

  	
  constitute a violation of any law of Guyana;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  constitute a breach of, default under or result in
  the acceleration of, any obligation of GTC of any kind or character; and

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  violate or conflict with any other restriction of
  any kind or character to which GTC is subject.

  

 

2.14                           Authority.
The Government has taken all action required by law or otherwise required to
authorize the execution and delivery of this Agreement, and this Agreement is a
valid and binding Agreement of the Government in accordance with its terms. The
undersigned party executing this Agreement on behalf of the Government has been
duly authorized to execute this Agreement.

 

SECTION 3. REPRESENTATION
AND WARRANTIES OF ATN

 

ATN represents
and warrants to the Government that:

 

3.1                                 Corporate
Structure of ATN. ATN is a private limited company duly established and
incorporated, validly existing and in good standing under the laws in operation
in the United States Virgin Islands.

 

6

 

3.2                                 Corporate
Power and Action. ATN has corporate power to execute and deliver this
Agreement and has taken all action required by law, its Certificate of
Incorporation, its by-laws and otherwise to authorize such execution and
delivery, and this Agreement is a valid and binding agreement of ATN in
accordance with its terms.

 

3.3                                 Investment
Interest. ATN is acquiring the shares of GT&T for its own account for
investment and not with a view to the sale or distribution of the whole or part of
it to any other person.

 

3.4                                 Capability.
ATN has the requisite human resources and capital and ability to raise
financing to perform all of its obligations and undertakings required by
this Agreement.

 

3.5                                 Bankruptcy.
ATN is not bankrupt, has not been and is not subject to any insolvency
proceedings, nor has it filed for nor is it in any other way involved in any
proceedings for re-organization of the Company or in any similar proceedings
which would affect ATN’s capacity to assume the obligations under this
Agreement or its ability to perform its obligations hereunder.

 

SECTION 4. CONSIDERATION

 

4.1                                 Purchase
Price of Shares. In consideration for the transfer to ATN of the shares in GT&T
representing eighty percent (80%) of its issued share capital and in
consideration of the vesting in ATN of 80% of its total assets and equity, ATN shall
pay to the Government a sum of United States Dollars sixteen million, five
hundred thousand only (U.S. $16,500,000).

 

4.2                                 Additional
Payments. In addition to the sum of United States dollars sixteen million,
five hundred thousand (U.S. $16,500,000), referred to in paragraph 4.1, the
following sums shall be paid by ATN to the Government:

 

(a)                                  An
amount equivalent to twenty (20) per cent of the Liability Decrease. Liability
Decrease means the difference between $7.2 million, the amount of GTC’s foreign
currency liabilities for which GT&T assumes responsibility, and the
settlement sum, the amount necessary to settle these foreign exchange liabilities.

 

7

 

(b)                                 Amounts
equivalent to any sums made available by way of credit extended to the
Government by any foreign Government or by any corporate body, agency or other
person outside Guyana for the use and benefit of GTC or GT&T, if extended
before Closing, or of GT&T, if extended after Closing, shall be paid to the
Government in immediately available cash in United States dollars by ATN, if
the credit was extended before Closing, or by GT&T if the credit was
extended after Closing provided always that GT&T opts to make use of the
credit so extended. All rights, title and interest in all equipment purchased
with the credit so made available shall be transferred to GTC or to GT&T,
if the purchase is before Closing, or to GT&T, if the purchase is after
Closing, free and clear of all liens. The sums referred to in this paragraph
aggregate to United States dollars ten million only (US$10,000,000) or the date
of this Agreement. The Government of Guyana shall release GTC and GT&T of
all liability in respect of any credits referred to in this paragraph; and

 

(c)                                  If
as a result of the participation of the Government as an owner of equity in GT&T,
interest rates and loan terms are provided by lenders for the benefit and use
of GT &T, at rates and upon terms more favourable than those that
would be available commercially, GT&T will pay to the Government a
commitment fee in United States dollars of two percent (2%) of the gross
principal amount of such loan. The commitment fee shall be paid when ATN or GT &T
becomes entitled to draw the principal of such loan.

 

SECTION 5. COVENANTS BY ATN

 

ATN covenants
and undertakes that after 80% of the equity in GT&T is acquired by it
pursuant to this Agreement, GT&T will comply with the covenants mentioned
hereafter and ATN covenants and undertakes to secure such compliance.

 

5.1                                 Expansion
and Service Improvement Plan. ATN shall prepare and implement through GT&T
a comprehensive Expansion and Service Improvement Plan (an outline of which

 

8

 

is set out in Annexure “E”) designed to provide national and
international service of the highest quality and most general availability. The
plan will be prepared and finalized in consultation with the Government before
Closing. The plan will include, but not limited to, provision for the
following:

 

(a)                                  connection
of at least 20,000 additional subscriber lines to the existing number of lines
estimated at 21,000, within three years of the date of Closing;

 

(b)                                 within
twenty-four (24) months, achievement of contractually guaranteed quality of
service performance as determined by measurement of service indexes recognized
in the industry in accordance with Annexure “E”;

 

(c)                                  within
three (3) years, in accordance with the Schedule shown in Annexure “E”,
complete a high density backbone microwave (1800 channels) between Lethem and
Georgetown, Georgetown and Crabwood Creek, and establish other facilities
permitting telephone or radio telephone service along the entire coast from
Crabwood Creek to Suddie, and in the interior at:

 

(i)                                     Mahdia;

 

(ii)                                  Issano;

 

(iii)                               Kurupung;

 

(iv)                              Kamarang,
Enachu and Imbaimadai; and

 

(v)                                 Aishalton,
Dadanawa and Wichabai; and

 

(d)                                 within
three years, also extend the backbone microwave to include the Northwest areas;
Port Kaituma, Matthews Ridge, and Mabaruma.

 

5.2                                 Maintaining
and Upgrading Quality of Services. ATN shall cause GT&T to keep its
equipment and services maintained continuously in keeping with international
standards. In

 

9

 

addition ATN shall cause GT&T to introduce in a timely fashion
current technological advances (wherever practical, applicable and relevant) to
ensure that a high quality of service is always maintained to international
standards.

 

5.3                                 Public
Interest Services. ATN shall cause GT&T to provide full public interest
services, including, but not limited to, inland telegraph services, public call
box telephone services, public emergency telephone services and free telephone
directories.

 

5.4                                 Releasing
the Government from the Liabilities of GTC and GT&T. ATN and GT&T
will take all measures to release the Government from every liability,
including up to a maximum of seven million two hundred thousand dollars (US$7.2
million) of foreign currency liabilities, incurred by GTC and GT&T before
Closing, except any debt the favourable terms of which are conditioned on
continuing a guarantee given by the Government, in which case, however, ATN and
GT&T will indemnify and hold harmless the Government for such debt.

 

5.5                                 Taxes.
Of the taxes and duties payable by GT&T under the laws of Guyana, ATN
covenants and undertakes to cause GT&T to pay in foreign currency taxes
attributable to its net income from international telecommunication services,
to the extent such earnings are realized in foreign currency.

 

5.6                                 Employment.
All the employees of GTC or GT&T employed by it immediately before Closing
are guaranteed continued employment with GT&T, on terms which are not less
favourable to each of such employees than the terms of employment enjoyed
immediately before Closing, for a minimum period of eighteen months after
Closing, subject only to GT&T’s right to dismiss or discharge any employee
for cause.

 

5.7                                 Training
and Career Development. ATN shall cause GT&T to formulate and implement
programmes for the training or retraining of its employees so as to meet its
needs and to make the best use of the employees and to develop their career.

 

5.8                                 Welfare
Plans. All employees of GT&T will be provided with health insurance and
shall have the benefit of retirement plans (which may be funded or
unfunded) established by GT&T. For the purposes of the retirement plans,
all the years of the service of the employees with GTC shall be given credit to
determine vesting and participation rights. However, nothing

 

10

 

in this Agreement shall be deemed to obligate ATN or GT&T to assume
unfunded retirement plan liability which accrued while the employees were
employed by GTC unless such liability is reflected as a liability on the
Balance Sheet and books of accounts of GTC and then only to the extent of such
liability recorded on the books of account of GTC.

 

5.9                                 Rate
Continuity. GT&T will not increase subscriber rates in operation on the
date of this Agreement for a period of three years after Closing, except, and
then only to the extent to which it becomes justified, on the occurrence of the
following events:

 

(a)                                  in
the event of a substantial increase in the average for a period of six months
of the highest rate at which United States dollar is lawfully sold in Guyana,
over the highest rate at which United States dollar is lawfully sold in Guyana
during the month immediately before Closing;

 

(b)                                 in
the event of a change in long distance charges payable to foreign
correspondents;

 

(c)                                  if
costs to provide service to interior areas specified in the Expansion and
Service Improvement Plan referred to in paragraph 1 of this Section are
proved to be substantially higher than as stated in that Plan; or

 

(d)                                 in
the event of any natural disaster or other act of God leading to extensive
destruction of plant and equipment, provided that GT&T has taken out and
maintained full insurance coverage of property, plant, equipment and business
interruption in accordance with Section 5.14 hereunder and the sums paid
by the insurer are not sufficient to meet the expenses of restoring the
services provided by GT&T or to compensate GT&T for its lost revenue
due to business interruption affected by the natural disaster or other act of
God.

 

5.10                           Switch
to Switch Access. In the case of cellular radio telephone service, in
respect of which GT&T will be granted only a non-exclusive licence, ATN
covenants and undertakes that it will cause GT&T to provide switch to
switch access, at reasonable rates, for any other company or person, providing
cellular radio telephone service, which has the necessary

 

11

 

licence and permit therefor issued by the Government. ATN also
covenants and undertakes to cause GT&T to provide switch to switch access,
at reasonable rates, to terminal and customer premises equipment, including
telefax and telex equipment acquired by any person otherwise than from ATN, GT&T
or any agency specified by ATN or GT&T.

 

5.11                           Privacy
of Communications. ATN covenants and undertakes that it will, subject to
the laws of Guyana, cause GT&T to secure fully that the privacy and
confidentiality of communications through the services provided by GT&T are
not impinged.

 

5.12                           Assignment
of Shares of ATN in GT&T. ATN covenants and undertakes that the whole
or part of the equity holding of ATN in GT&T will not be assigned by
it to any person without the prior permission of the Government and if ATN
intends to assign the said equity holding, it shall first make an offer to sell
the same to the Government whereupon the Government may buy the same at a
price agreed to between the Government and ATN and in the absence of agreement
at a price determined by arbitration under the International Centre for the
Settlement of Investment Disputes (ICSID).

 

5.13                           Rights
of the Government as Minority Shareholder in GT&T. ATN covenants and
undertakes to fully recognize the rights and interests of the Government as the
holder of minority share capital in GT&T, and in particular:

 

(a)                                  to
recognize the right of the Government to choose such number of members of the
Board of Directors of GT&T proportionate to its share holding, but in no
case less than one; and

 

(b)                                 to
provide the Government, at its request as minority shareholder, full and
complete information and access to records, relating to the business and
operations of GT&T, financial administrative, technical and otherwise,
including but not limited to, the extent and condition of its business, the
rates charged for telecommunication services, income and expenditure and
financial position.

 

12

 

5.14                           Insurance.
ATN covenants and undertakes that it shall acquire and maintain such insurance
on property, plants and equipment and for business interruption as would be
reasonable for a prudent business to maintain, bearing in mind, the practice in
the Industry.

 

SECTION 6. COVENANTS BY THE
GOVERNMENT

 

The Government Covenants and undertakes as
follows:

 

6.1                                 Licence.
The Government will grant, subject to the provisions of this Agreement, to GT&T
licences under the Post and Telegraph Act, Cap. 47:01, of the Laws of Guyana,
or any legislation enacted to replace it, to carry on, operations to provide
the following services:

 

(a)                                  Public
telephone, radio telephone (except private radio telephone systems which do not
interconnect with GT&T network) and pay station telephone services,
national and international voice and data transmission;

 

(b)                                 Sale
of advertising in any directories of telephone subscribers;

 

(c)                                  Switched
or non-switched private line service supported by facilities constructed over
public right of way;

 

(d)                                 Terminal
and customer premises equipment;

 

(e)                                  Telefax,
telex and telegraph service and telefax network service, excluding the
following operations:

 

(i)                                     sale
of telefax or teleprinter machines;

 

(ii)                                  maintenance
of telefax or teleprinter equipment; and

 

(iii)                               operation
of any facility for the sending and receiving of telefax copies or teleprinter
messages; and

 

(f)                                    Cellular
radio telephone service.

 

13

 

If any such licences have
not been given to GT&T before Closing it will be given immediately after
Closing. A licence referred to in this paragraph will be subject to the other
paragraphs of this Section.

 

Notwithstanding the
licence granted pursuant to Section 6.1(d) for terminal and customer
premises equipment, ATN covenants and agrees that GT&T will allow customers
on an individual basis to install such equipment purchased by the customer and
imported for the customer’s own use and to connect such equipment to GT&T’s
lines. To ensure compatibility of such equipment GT&T shall provide
customers, on request, with GT&T’s specifications regarding such equipment.
The customer shall be responsible for the maintenance of such equipment.

 

6.2                                 Terms
of Licences. The licence granted to GT&T in respect of the service
referred to in subparagraphs (a), (b) and (c) of Section 6.1
will be an exclusive licence for a period of twenty years and shall be
renewable at the option of GT&T for a further period of twenty years. During
the period of the exclusive licence, no other company, nor the Government,
shall provide any services to which the licence relates. The licence granted to
GT&T with respect to the services referred to in sub-paragraphs (d) and
(e) of Section 6.1 shall be exclusive for a period of ten years, and
shall be renewable at the option of GT&T on a non-exclusive basis.

 

6.3                                 Cellular
Radio Telephone Licence. The Government shall grant to GT&T a
non-exclusive licence to provide cellular radio telephone service anywhere
within the country. The licence shall be for a period of twenty years and shall
be renewable at the option of GT&T for a further period of twenty years.

 

6.4                                 Cancellation
of Licence. The Government shall have the power, which may be
exercised by any authorized person or authority on behalf of the Government, to
cancel any licence or licences granted to GT&T for providing the services
referred to in Section 6.1 if GT&T contravenes any of the material
terms of the licence, or the material provisions of this Agreement, or the
material provisions of the Post and Telegraph Act (Cap 47:01) or any law
enacted to replace it.

 

14

 

6.5                                 Failure
to Achieve Agreed Levels of Quality or Expansion. Without prejudice to the
provisions of Section 6.4, if GT&T fails to achieve the levels of
quality or service, or the completion of any of the phases of the Expansion and
Service Improvement Plan covenanted for and undertaken by ATN under this
Agreement within the time allowed therefor, the Government shall have the
power, exercised through the Regulatory Body referred to at Section 6.7
below, to examine the breach and the circumstances relating to it and to decide
on an appropriate penalty, if any.

 

6.6                                 No
Condonation of Breach. The Regulatory Body may at the request of the
Government, or GT&T or ATN allow GT&T or ATN time or opportunity to
rectify any breach of the provisions of this Agreement or to achieve agreed
levels of quality of service or for the completion of any of the phases of the
Expansion and Service Improvement Plan, notwithstanding the failure to achieve
or complete the same within the agreed time. Such action by the Government or
the Regulatory Body, shall not be deemed to be a condonation of the breach or
failure.

 

6.7                                 Establishment
of Regulatory Body. The Government covenants and undertakes to establish an
independent statutory authority (hereinafter referred to as the “Authority”) to
regulate the operations of companies or other persons engaged in providing
telecommunication services and operating in Guyana and with a view to securing
compliance with the relevant laws of Guyana and to protecting the interests of
persons making use of such services (hereinafter referred to as subscribers).

 

6.8                                 Subscriber
Rates. Without prejudice to the generality of the foregoing, the Authority
will be empowered to determine questions as to the reasonableness of the rates
charged or to be charged by GT&T for services rendered by it and the
decisions of the Authority will be binding on GT&T.

 

6.9                                 Rates
of Return. In determining the rates to be charged the subscribers, the
Authority shall take into account:

 

15

 

(a)                                  in
regard to the rates to be charged from subscribers during the first period of
three years from Closing the covenant and undertaking of ATN in Section 5.9;

 

(b)                                 subject
to sub-paragraph (a), GT&T shall be entitled to a minimum rate of return of
15% on capital dedicated to public use. The revenue requirement shall be
calculated on a rate of return methodology to be mutually agreed to by
Government and ATN prior to the establishment of a Regulatory Body or any other
agency charged with the responsibility of regulating the rate of return for GT&T.
Unless and until such mutual agreement is reached between the Government and
ATN, the revenue requirement shall be calculated on the basis of GT&T’s
entire property, plant and equipment pursuant to a rate of return methodology
consistent with the practices and procedures of the United States of America
Federal Communication Commission.

 

6.10                           Management
Services. Where GT&T has engaged ATN or any of its subsidiaries to
render any management services, GT&T shall pay fees in foreign currency in
such amounts as the Board of Directors of GT&T shall approve and the
repatriation of such fees to the United States of America shall not be subject
to currency restrictions, withholding taxes, or any other taxation by the
Government.

 

6.11                           Capital
Dedicated to Telecommunications Business of GT&T. In this Agreement the
expression “capital dedicated to telecommunications business of GT&T” means
the capital assets of GT&T.

 

6.12                           Foreign
Exchange Controls. The Government covenants and undertakes to permit GT&T,
without any restrictions, to make payments in foreign currency to:

 

(a)                                  international
correspondents;

 

(b)                                 creditors
of GT&T of debt denominated in foreign currency;

 

16

 

(c)                                  suppliers
of imported supplies of equipment, materials or services used and needed in GT&T’s
operations;

 

(d)                                 ATN
by way of dividends declared on shareholdings or other sums due from GT&T. The
repatriation of dividends to ATN shall not be subject to withholding taxes.

 

The repatriation of
dividends to ATN and the payment of interest on debt denominated in foreign
currency shall not be subject to withholding taxes. For the above purposes GT&T
shall be permitted by the Government to retain outside of Guyana sufficient
sums from foreign currency earned or collected by it from its international
telecommunication operations.

 

6.13                           Duties
and Taxes. After Closing, GT&T shall be subject to the same tax, duty
and exemption regime as applied to GTC or GT&T prior to Closing. This
regime is described in Annexure “F”.

 

6.14                           Foreign
Nationals. The Government covenants and undertakes to grant necessary visas
and work permits to enable GT&T to employ foreign nationals eligible for
such visas and work permits under the laws of Guyana (including the granting of
visas to their family members) in posts required for carrying on its activities
as mentioned in this Agreement and for which suitably qualified Guyanese are
not available and to enable foreign nationals to serve as directors of GT&T.
This paragraph shall apply whether such visas and work permits are permanent or
temporary in nature.

 

6.15                           Conduct
of Business before Closing. The Government covenants and undertakes that at
all times after the date of this Agreement and including the Closing date, the
Government will use its best efforts to cause GTC, and GT&T when it is
established to take over the assets and liabilities of GTC, to comply with the
following, except where the Government and ATN agree otherwise:

 

(a)                                  GTC
and GT&T shall conduct their business in the usual, regular and ordinary
course, and in keeping with present business practices, and, to the extent
consistent with such operations, use their best efforts to preserve the present
business organization intact, and shall do nothing (otherwise than

 

17

 

in the ordinary
course of the management of the business, including suspension or dismissal of
an officer or employee for cause) which shall have the effect of depriving them
of the services of their present officers and employees or to adversely affect
present relationships with persons having business dealings with GTC or GT&T;

 

(b)                                 GTC
or GT&T shall maintain to the best of their ability all the assets and
properties at present owned by GTC, and which are reasonably necessary for its
business, in customary repair, order and condition;

 

(c)                                  GTC
and GT&T shall maintain the books, accounts and other records GTC has been
maintaining in the past in connection with its business, in the usual, regular
and ordinary manner, on a basis at least consistent with prior years, and
endeavour to comply with all the laws applicable to GTC or GT&T, as the
case may be, and to perform without default all the obligations of
GTC or GT&T; and

 

(d)                                 excepting
any expenditure incurred or advances on equipment purchases under the contract
already entered into by GTC with Northern Telecoms Corporation, without the
prior consent in writing of ATN no individual capital expenditure or advance on
equipment purchase in excess of G$100,000 (one hundred thousand Guyana dollars
only) will be incurred by GTC or GT&T.

 

6.16                           Accounts
Receivable. At or prior to Closing the Government shall pay to GT&T all
amounts which are due from the Government to GTC and GT&T.

 

6.17                           Right
of Way. GT&T shall be allowed the gratuitous use of the streets, public
roads, rivers and waters of Guyana required to be used by it for the purposes
of placing telephone poles and cables, for the purpose of providing service to
subscribers. The said right of GT&T shall be subject to the restrictions
and provisions of the Post and Telegraph Act (Cap. 47:01) of the Laws of
Guyana, or any legislation enacted to replace it.

 

18

 

6.18                           Banking.
GT&T shall be permitted to retain net revenues from international
telecommunication operations in one or more banks located outside Guyana. However,
nothing in this Agreement is intended to release ATN, it nominee or GT&T of
their respective obligations under this Agreement or the laws of Guyana
regarding foreign currency derived from net settlements of international calls.

 

6.19                           Overseas
Private Investment Corporation (OPIC). The Government shall support any
application by ATN and/or GT&T to the Overseas Private Investment
Corporation (OPIC) for investment insurance coverage in connection with ATN’s
obligations under this Agreement.

 

SECTION 7. COVENANTS BY THE
GOVERNMENT AND ATN

 

The Government
and ATN agree that:

 

7.1                                 GT&T
Stock. GT&T shall have one class of stock which should consist of
common stock. Each share of common stock shall have equal voting rights and the
same rights to share in dividends. No shareholder in GT&T shall have the
right to acquire authorized but unissued shares of GT&T common stock unless
those shares are being offered to all shareholders upon terms that allow each
shareholder to maintain their proportionate interest and ownership of GT&T.

 

7.2                                 Shareholding
in GT&T. ATN and the Government shall at all times after Closing hold GT&T
shares in the following proportions:

 

	
  ATN

  	
  Eighty
  percent (80%)

  
	
   

  	
   

  
	
  The
  Government or its nominee

  	
  Twenty
  percent (20%)

  

 

Should it become
necessary to increase the share capital of GT&T and should both parties
hereto agree to the increase, the share capital of GT&T may be
increased by the amount agreed upon by both Parties and the new shares shall be
allotted to ATN and the Government in the proportion set out above unless
otherwise agreed to by them.

 

19

 

7.3                                 Directors.
GT&T shall have not less than six, but not more than twelve, directors. After
Closing, the Government shall have the right to nominate twenty percent (20%)
of the directors of GT&T, and ATN shall have the right to nominate the
remainder (viz 80%) of the directors. There shall always be at least one
director of GT&T who is a nominee of the holder of minority shares.

 

7.4                                 Board
Meetings. All decisions in respect of important matters pertaining to GT&T
and its business shall be discussed and decided at the meetings of the Board of
Directors. There shall be at least one meeting of the Board of Directors each
month.

 

7.5                                 Obligations
to Provide Universal Service. GT&T shall have the obligation to provide
universal service. This means that the business and development plans of GT&T
will be designed to provide as many residents of Guyana as possible with the
benefit of telephone service.

 

7.6                                 Access
to GTC’s Business Records. From the date of the execution of this Agreement
until Closing, the Government and its authorized agents, on the one hand, and
ATN and its attorneys, accountants, engineers, and its other agents and
representatives, on the other hand, as are reasonably required to review the
corporate books and business records of GTC, shall be allowed access to the
corporate and business records of GTC. To this end, the Government shall
designate certain employees of GTC to facilitate the Government’s and ATN’s
review of the corporate books and business records of GTC. All information
requested by ATN and the Government and available to GTC or GT&T pertaining
to GTC’s and GT&T’s operations will be made available provided that such
request is made after reasonable notice and the examination of the records
takes place during normal business hours. The Government and ATN will be
entitled to make photostatic copies or otherwise duplicate copies of GTC’s and GT&T’s
corporate records and books of account. After closing, both the Government and
ATN shall have equal access to the corporate books and business records of GT&T.

 

7.7                                 Confidentiality
of Information. Except for the purpose of carrying out the operations of GT&T
or complying with the provisions of any law, information referred to in Section 5.13(b) or
Section 7.6 shall be maintained in strict confidence and shall not be
published or publicly made available without the written consent of the
shareholders of GT&T.

 

20

 

7.8                                 Best
Efforts Regarding Compliance with Agreement. Government and ATN covenants
to use their best efforts to cause all the obligations imposed upon them by
this Agreement to be duly complied with and to cause all conditions precedent
to such obligations to be satisfied.

 

7.9                                 Settlement
of Accounts with Foreign Telecommunications Administration. ATN or GT&T
may negotiate with foreign telecommunications administrations for
reconciling or settling the net amounts due from those administrations to GTC
of GT&T in respect of any period prior to Closing and if as a result of
such reconciling or settling more amounts than mentioned in the financial
statements and Annexures “C” and “D” are found due from those administrations
to GTC or GT&T in respect of the said period, eighty-five (85) percent of
that amount shall be paid by ATN to the Government and fifteen (15) percent may be
retained by ATN.

 

SECTION 8. DUE DILIGENCE

 

For a period
of sixty (60) days from the date of the execution of this Agreement, ATN’s
accountants, attorneys, engineers, and other agents and representatives, as are
required, shall have a right to examine (as ATN deems relevant) the books of
accounts and supporting records and other corporate books and records, and
physical assets of GTC and GT&T. This examination shall take place during
normal business hours. The Government represents and warrants its co-operation
and the co-operation of the officers and employees of GTC and GT&T before
Closing regarding the aforementioned examinations. ATN shall maintain all
information obtained by it under this paragraph in strict confidence. The
information shall not be published or publicly made available without the
written consent of the Government.

 

SECTION 9. CLOSING

 

Completion of
the matters referred to in SECTION 1 and 2.2 and the payment of the amount
mentioned in Section 4.1 shall be effected no sooner than thirty days, and
not later than forty-five days after the completion of the due diligence
provided for in Section 8 of this Agreement. The Closing shall be held at
Georgetown, Guyana, on a date mutually agreed to by the Government, GT&T
and ATN.

 

21

 

SECTION 10.                                             CONDITIONS
PRECEDENT TO OBLIGATION OF ATN

 

The obligation
of ATN to purchase eighty percent (80%) of the shares in GT&T pursuant to
this Agreement is subject to the satisfaction at or before Closing of all the
following conditions:

 

10.1                           Accuracy
of Representations and Warranties. The representations and warranties of
the Government contained in this Agreement shall be true in every material
respect on and as of the Closing Date, with the same effect as though such
representations and warranties had been made on and as of such date, except to
the extent attributable to actions consented to in writing by ATN.

 

10.2                           Performance
of Agreements. The Government shall have performed all obligations and
agreements required to be performed by it and complied with all covenants and
other terms and conditions required to be complied with by it, hereunder, on or
prior to the Closing Date.

 

10.3                           Certificate.
The Government shall have furnished ATN with a certificate dated the Closing
Date, to the effect that the Government has fulfilled the conditions specified
in paragraphs 1 and 2 of this Section.

 

10.4                           Opinion
of Counsel for the Government. ATN shall have received a favourable legal
opinion of counsel for the Government, dated as of the Closing Date, in the form and
substance reasonably satisfactory to ATN and its counsel, to the effect that:

 

(a)                                  The
Government has full right, power and authority to enter into this Agreement;

 

(b)                                 The
Government has full right, power and authority to sell, assign, transfer and
deliver the shares and assets of GT&T held by it;

 

(c)                                  This
Agreement and the instruments of assignment and transfer and delivery of shares
of GT&T required hereunder, have been duly executed and delivered by the
Government and constitute a legal valid and binding obligation of the
Government;

 

22

 

(d)                                 Any
legislation enacted by the Government to give effect to this Agreement shall be
consistent with the Governments’ obligations as set forth in this Agreement;

 

(e)                                  The
covenants by the Government in SECTION 6 and the covenants by the
Government and ATN in SECTION 7 of this Agreement will survive Closing and
will remain a binding legal commitment throughout the initial term of the licences
referred to in Section 6.1 and the term of any renewal thereof;

 

(f)                                    GT&T
has been granted all the necessary licences and permits and has all the requisite
authorizations necessary to provide national and international
telecommunications services pursuant to all the terms, conditions and
obligations of the Parties to this Agreement.

 

Such opinion shall also
include such other matters incidental to the transactions contemplated hereby
as ATN or its counsel may reasonably request.

 

SECTION 11.                                             CONDITIONS
PRECEDENT TO OBLIGATION OF THE GOVERNMENT

 

The obligation
of the Government to sell to ATN eighty percent (80%) of the shares in GT&T
pursuant to this Agreement is subject to the satisfaction at or before Closing
of all the following conditions:

 

11.1                           Accuracy
of Representations and Warranties. The representations and warranties of
ATN contained in this Agreement shall be true in every material respect on and
as of the Closing Date with the same effect as though such representations and
warranties had been made on and as of such date, except to the extent
attributable to actions consented to in writing by the Government.

 

11.2                           Performance
of Agreements. ATN shall have performed all obligations and agreements
required to be performed by it and complied with all covenants and other terms
and conditions required to be complied with by it, hereunder, on or prior to
the Closing Date.

 

23

 

11.3                           Certificate.
ATN shall have furnished the Government with a certificate dated the Closing
Date to the effect that ATN has fulfilled the conditions specified in
paragraphs 1 and 2 of this Section.

 

11.4                           Opinion
of Counsel for ATN. The Government shall have received a favourable legal
opinion of counsel to ATN, dated as of the Closing Date, inform and
substance reasonably satisfactory to the Government and its counsel, to the
effect that:

 

(a)                                  ATN
is a corporation duly organized, validly existing and in good standing under
the laws of the United States Virgin Islands;

 

(b)                                 ATN
has the full right, power and authority to enter into this Agreement to
purchase the shares of GT&T to be sold to it hereunder;

 

(c)                                  This
Agreement has been duly executed and delivered by ATN and constitutes a legal,
valid and binding obligation of ATN;

 

(d)                                 The
covenants by ATN in SECTION 5 and the covenants by the Government and ATN
in SECTION 7 of this Agreement shall survive Closing and shall remain a
binding legal commitment throughout the initial term of the licences referred
to in Section 6.1 and the term of any renewal thereof.

 

Such opinion shall also
include such other matters incidental to the transaction contemplated hereby as
the Government or the counsel of the Government may reasonably request.

 

SECTION 12.                                             RENEWAL
OF LICENCES

 

12.1                           Notices
and Applications for Renewal of Licences. Notice of intention to seek
renewal any licence granted to GT&T shall be given by GT&T one year
before the expiry of the term of the licence and the application for renewal of
any such licence shall be made in accordance with the law applicable thereto.

 

12.2                           Renewal
of Exclusive Licence After Expiry of Term. After the expiry of the initial
term of any exclusive licence granted to GT&T in respect of the services
mentioned in

 

24

 

Section 6.1(a), (b) and (c)  and referred to in Section 6.2,
the Government shall renew the licence on an exclusive basis in accordance with
applicable laws of Guyana and the terms of this Agreement. Further, after the
expiry of the initial term of any exclusive licence granted to GT&T in
respect of the services mentioned in Section 6.1(d) and (e) and
referred to in Section 6.2, the Government shall renew the licence on a
non-exclusive basis in accordance with the laws of Guyana and the terms of this
Agreement.

 

12.3                           Sale
of Assets of GT&T on Non-renewal or Termination of Licence. If on
account of the non-renewal of any licence granted to GT&T for carrying on
any of the activities referred to in Section 6.1 GT&T has to close its
operations, the Government shall be entitled to purchase the shares of ATN in GT&T
or the assets of GT&T, on such terms as may be agreed between ATN and
the Government or, on failure to reach such agreement, as determined by
arbitration conducted by ICSID.

 

SECTION 13.                                             FORCE
MAJEURE

 

13.1                           Definition.
For the purpose of this Agreement, “force majeure” shall mean any event
which could not have reasonably been foreseen, is beyond the reasonable control
of the Party claiming to be affected by such event, has not been brought about
at the instance of such Party and has caused non-performance or delay. Force
Majeure may include but is not limited to such events as insurrection, war
or other armed conflict, floods, earthquakes and other natural disasters.

 

13.2                           Liability
in the Event of Force Majeure. No Party shall be held liable or deemed to
be in default under this Agreement for any failure to perform obligations
and duties hereunder if such failure has resulted directly or indirectly from
force majeure, provided that that Party had taken all precautions to minimize
the consequences of the force majeure.

 

13.3                           Notice
for Force Majeure. In the event of force majeure, the Party so claiming
shall notify the other Party in writing of the circumstances and the Parties
shall meet forthwith to determine the action to be taken.

 

25

 

13.4                           Extension
of Time for Force Majeure. Any period during which the event of force
majeure continues shall be added to the time allowed for any Party to perform any
act or undertake any obligation.

 

SECTION 14.                                             INDEMNIFICATION

 

14.1                           Indemnification
by Government. The Government agrees to indemnify and hold ATN and GT&T,
or any one of them, and their respective directors, officers, employees and
agents, harmless from and against all judgments, damages, losses, claims,
liens, penalties, obligations, liabilities, settlements and expenses, including
reasonable attorney’s fees, arising out of:

 

(a)                                  any
breach of any warranty or covenant or any inaccurate or erroneous
representations of the Government contained herein, in any Annexure attached
hereto or in any certificate, agreement or other instrument duly executed and
delivered by the Government pursuant to this Agreement; and

 

(b)                                 any
failure of the Government to perform or comply with any provision,
obligation or duty contained in this Agreement and required to be performed or
complied with by the Government.

 

14.2                           Indemnification
by ATN. ATN agrees to indemnify and hold the Government and its officers,
employees and agents harmless from and against all judgments, damages, losses,
claims, liens, penalties, obligations, liabilities, settlements and expenses,
including reasonable attorney’s fees, arising out of:

 

(a)                                  any
breach of any warranty or covenant or any inaccurate or erroneous
representations of ATN contained herein, in any Annexure attached hereto or in
any certificate, agreement or other instrument duly executed and delivered by
ATN pursuant to this Agreement; and

 

26

 

(b)                                 any
failure of ATN or GT&T to perform or comply with any provision,
obligation or duty contained in this Agreement and required to be performed or
complied with by ATN or GT&T or both.

 

14.3                           Making
of Claims. All claims for indemnification under this Agreement shall be
made within the time specified in SECTION 15 hereof. All claims for
indemnification shall be made in writing.

 

SECTION 15.                                             SURVIVAL
OF AGREEMENT TERMS

 

15.1                           Representations
and Warranties. The representations and warranties which are included
herein or in any Annexure attached hereto, certificate, agreement or other
instrument duly executed and delivered pursuant to this Agreement, and the
indemnities which are provided for herein to the extent that they relate to the
said representations and warranties, shall survive the Closing.

 

15.2                           Covenants
and Certain Other Provisions. Any covenant or other provision of this
Agreement which by its nature and content is applicable to the operation of GT&T
and ATN, or any one of them, shall be effective and survive Closing, and shall
be binding on the Parties for a period equal to the initial term of the
licence, or any renewals thereof, granted in respect of such operations plus
two (2) years.

 

15.3                           Other
Provisions . Any provision of this Agreement not included in paragraphs 1
and 2 of this Section shall survive Closing, and shall be binding on the
Parties, for a three (3) year period after Closing.

 

SECTION 16.                                             GOVERNING
LAW; WAIVER OF SOVEREIGN IMMUNITY; SUBMISSION TO JURISDICTION

 

16.1                           Governing
Law. This Agreement shall be construed under and in accordance with the
laws of Guyana.

 

16.2                           Waiver
of Sovereign Immunity. The Government agrees to waive any defence of
sovereign immunity and consents to suit, if necessary, to resolve disputes
concerning the interpretation of this Agreement.

 

27

 

16.3                           Submission
to Jurisdiction. For the purpose of resolving disputes regarding this
Agreement, or arising therefrom, the Government, ATN and GT&T shall submit
themselves to the jurisdiction of the courts of Guyana. Without prejudice to
the above, and any other provision of this Agreement, the Parties may agree
in writing to resolve any dispute between them regarding this Agreement, or
arising therefrom, by arbitration conducted by ICSID and when they so agree the
dispute shall be referred to ICSID.

 

SECTION 17.                                             WAIVERS

 

17.1                           Extension
of Time and Waivers. Any Party to whom any obligations is due under this
Agreement may be written notice to the Party from whom performance of the
obligation is due:

 

(a)                                  extend
the time for the performance of any of the obligations or the taking of other
action under this Agreement;

 

(b)                                 waive
inaccuracies in the representations and warranties of the other contained in
this Agreement, in any Annexure hereto, or in any certificate issued hereunder;

 

(c)                                  waive
compliance with any of the covenants or conditions contained in this Agreement;
or

 

(d)                                 waive
or modify performance of any of the obligations under this Agreement.

 

Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including, but
without any limitation, any investigation by or on behalf of any Party, shall
be deemed to constitute a waiver, by the Party taking such action, or
compliance with, or performance of, any representations, warranties, covenants,
conditions or obligations contained in or under this Agreement.

 

17.2                           Waiver
of Breach Not to Extend to Subsequent Breach. Any waiver by a Party of a
breach of any provision of this Agreement shall not operate or be construed as
a waiver of any subsequent breach.

 

28

 

SECTION 18.                                             EFFECT
OF HEADINGS

 

The headings
of the various Sections and paragraphs herein are inserted merely as a matter
of convenience and for reference and any such heading shall not be construed as
in any manner defining, limiting or describing the scope or intent of the
particular Section or paragraph to which it refers, or as affecting the
meaning or construction of the language in the body thereof.

 

SECTION 19.                                             NOTICES

 

All notices
which are required or may be given pursuant to this Agreement shall be in
writing and shall be sufficient in all respects if delivered in person or
mailed by registered, certified or express mail, postage prepaid, as follows:

 

To the
Government:

 

The Minister
for the time being assigned responsibility for telecommunications, at the
address of his office in Georgetown, Guyana;

 

To ATN:

 

Atlantic
Tele-Network Inc.

P.O. Box 6100

St. Thomas

U.S. Virgin Islands  00801

Attention:  Jeffrey J. Prosser

 

To GT&T:

 

When
incorporated, at the address of its registered office,

 

or at such other address
as any of the above parties shall have designated by notice in writing to the
other parties.

 

29

 

IN WITNESS
WHEREOF, the Government of the Co-operative Republic of Guyana, and Atlantic
Tele-Network, Inc. have each caused this Agreement to be executed on its
behalf by its officer or representative thereunto duly authorized, all as of
the day and year first above written.

 

	
  ATLANTIC TELE-NETWORK INC

  	
  GOVERNMENT OF THE COOPERATIVE

  REPUBLIC OF GUYANA

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Jeffrey
  J. Proser

  	
   

  	
  By

  	
    /s/ W.A.H.L. Parris

  	
   

  
	
  Jeffrey J. Prosser

  	
  W.A.H.L. Parris

  
	
  Chairman

  	
  Deputy Prime Minster Planning and Development

  
						

 

30Exhibit 10.1

 

AGREEMENT

 

CONCERNING THE EXCHANGE OF SECURITIES

 

BY AND AMONG

 

SUB-URBAN BRANDS, INC. FORMERLY KNOWN AS
DP&D, INC.

 

AND

 

SUB-URBAN INDUSTRIES, INC. AND

 

THE SECURITY HOLDERS OF SUB-URBAN INDUSTRIES,
INC.

 

 

INDEX

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I - EXCHANGE OF SECURITIES

  	
  1

  
	
   

  	
   

  
	
   1.1

  	
  - Issuance of Securities

  	
  1

  
	
   1.2

  	
  - Exemption from Registration

  	
  1

  
	
   1.3

  	
  - Corporate Action by DP&D

  	
  2

  
	
   

  	
   

  
	
  ARTICLE II - REPRESENTATIONS AND WARRANTIES OF SUB-URBAN

  	
  2

  
	
   

  	
   

  
	
   2.1

  	
  - Organization

  	
  2

  
	
   2.2

  	
  - Capital

  	
  2

  
	
   2.3

  	
  - Subsidiaries

  	
  2

  
	
   2.4

  	
  - Directors and Officers

  	
  2

  
	
   2.5

  	
  - Financial Statements

  	
  3

  
	
   2.6

  	
  - Absence of Changes

  	
  3

  
	
   2.7

  	
  - Absence of Undisclosed Liabilities

  	
  3

  
	
   2.8

  	
  - Tax Returns

  	
  3

  
	
   2.9

  	
  - Investigation of Financial Condition

  	
  3

  
	
   2.10

  	
  - Intellectual Property Rights

  	
  3

  
	
   2.11

  	
  - Compliance with Laws

  	
  4

  
	
   2.12

  	
  - Litigation

  	
  4

  
	
   2.13

  	
  - Authority

  	
  4

  
	
   2.14

  	
  - Ability to Carry Out Obligations

  	
  4

  
	
   2.15

  	
  - Full Disclosure

  	
  4

  
	
   2.16

  	
  - Assets and Liabilities

  	
  4

  
	
   2.17

  	
  - Material Contracts

  	
  4

  
	
   2.18

  	
  - Indemnification

  	
  4

  
	
   2.19

  	
  - Criminal or Civil Acts

  	
  5

  
	
   2.20

  	
  - Restricted Securities

  	
  5

  
	
   

  	
   

  
	
  ARTICLE III - REPRESENTATIONS AND WARRANTIES OF DP&D, INC.

  	
  5

  
	
   

  	
   

  
	
   3.1

  	
  - Organization

  	
  5

  
	
   3.2

  	
  - Capital

  	
  5

  
	
   3.3

  	
  - Subsidiaries

  	
  5

  
	
   3.4

  	
  - Directors and Officers

  	
  5

  
	
   3.5

  	
  - Financial Statements

  	
  5

  
	
   3.6

  	
  - Absence of Changes

  	
  6

  
	
   3.7

  	
  - Absence of Undisclosed Liabilities

  	
  6

  
	
   3.8

  	
  - Tax Returns

  	
  6

  

 

1

 

	
   

  	
  Page

  
	
   

  	
   

  
	
   3.9

  	
  - Investigation of Financial Condition

  	
  6

  
	
   3.10

  	
  - Intellectual Property Rights

  	
  6

  
	
   3.11

  	
  - Compliance with Laws

  	
  6

  
	
   3.12

  	
  - Litigation

  	
  6

  
	
   3.13

  	
  - Authority

  	
  6

  
	
   3.14

  	
  - Ability to Carry Out Obligations

  	
  6

  
	
   3.15

  	
  - Full Disclosure

  	
  7

  
	
   3.16

  	
  - Assets and Liabilities

  	
  7

  
	
   3.17

  	
  - Material Contracts

  	
  7

  
	
   3.18

  	
  - Indemnification

  	
  7

  
	
   3.19

  	
  - Criminal or Civil Acts

  	
  7

  
	
   3.20

  	
  - Bulletin Board Trading Status

  	
  7

  
	
   

  	
   

  
	
  ARTICLE IV - COVENANTS PRIOR TO THE CLOSING DATE

  	
  7

  
	
   

  	
   

  	
   

  
	
   4.1

  	
  - Investigative Rights

  	
  7

  
	
   4.2

  	
  - Conduct of Business

  	
  8

  
	
   4.3

  	
  - Confidential Information

  	
  8

  
	
   4.4

  	
  - Notice of Non-Compliance

  	
  8

  
	
   

  	
   

  
	
  ARTICLE V - CONDITIONS PRECEDENT TO DP&D’S PERFORMANCE

  	
  8

  
	
   

  	
   

  
	
   5.1

  	
  - Conditions

  	
  8

  
	
   5.2

  	
  - Accuracy of Representations

  	
  8

  
	
   5.3

  	
  - Performance

  	
  8

  
	
   5.4

  	
  - Absence of Litigation

  	
  8

  
	
   5.5

  	
  - Officer’s Certificate

  	
  9

  
	
   5.6

  	
  - Payment of Liabilities

  	
  9

  
	
   5.7

  	
  - Corporate Action

  	
  9

  
	
   

  	
   

  
	
  ARTICLE VI - CONDITIONS PRECEDENT TO SUB-URBAN’S PERFORMANCE

  	
  9

  
	
   

  	
   

  
	
   6.1

  	
  - Conditions

  	
  9

  
	
   6.2

  	
  - Accuracy of Representations

  	
  9

  
	
   6.3

  	
  - Performance

  	
  9

  
	
   6.4

  	
  - Absence of Litigation

  	
  9

  
	
   6.5

  	
  - Officer’s Certificate

  	
  9

  
	
   6.6

  	
  - Directors of DP&D.

  	
  10

  
	
   6.7

  	
  - Officers of DP&D.

  	
  10

  
	
   6.8

  	
  - Corporate Action

  	
  10

  

 

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE VII - CLOSING

  	
  10

  
	
   

  	
   

  
	
   7.1

  	
  - Closing

  	
  10

  
	
   

  	
   

  
	
  ARTICLE VIII - COVENANTS SUBSEQUENT TO THE CLOSING DATE

  	
  10

  
	
   

  	
   

  
	
   8.1

  	
  - Registration and Listing

  	
  11

  
	
   8.2

  	
  - Stock Option Plan

  	
  11

  
	
   

  	
   

  
	
  ARTICLE IX - MISCELLANEOUS

  	
  11

  
	
   

  	
   

  
	
   9.1

  	
  - Captions and Headings

  	
  11

  
	
   9.2

  	
  - No Oral Change

  	
  11

  
	
   9.3

  	
  - Non-Waiver

  	
  11

  
	
   9.4

  	
  - Time of Essence

  	
  11

  
	
   9.5

  	
  - Entire Agreement

  	
  11

  
	
   9.6

  	
  - Choice of Law

  	
  11

  
	
   9.7

  	
  - Counterparts

  	
  11

  
	
   9.8

  	
  - Notices

  	
  12

  
	
   9.9

  	
  - Binding Effect

  	
  12

  
	
   9.10

  	
  - Mutual Cooperation

  	
  12

  
	
   9.11

  	
  - Finders

  	
  12

  
	
   9.12

  	
  - Announcements

  	
  12

  
	
   9.13

  	
  - Expenses

  	
  12

  
	
   9.14

  	
  - Survival of Representations and Warranties

  	
  12

  
	
   9.15

  	
  - Exhibits

  	
  13

  
	
   9.16

  	
  - Legal Counsel

  	
  12

  
	
   9.17

  	
  - Termination, Amendment and Waiver

  	
  13

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures

  	
  14

  

 

 

	
  EXHIBITS

  
	
   

  
	
   

  	
  Allocation of Securities

  	
  Exhibit

  	
  1.1

  
	
   

  	
  Subscription Agreement

  	
  Exhibit

  	
  1.2

  
	
   

  	
  Financial Statements of Sub-Urban

  	
  Exhibit

  	
  2.5

  
	
   

  	
  Material Contracts of Sub-Urban

  	
  Exhibit

  	
  2.17

  
	
   

  	
  Financial Statements of DP&D

  	
  Exhibit

  	
  3.5

  
	
   

  	
  Exception Schedule of Sub-Urban

  	
  Exhibit

  	
   

  
	
   

  	
  List of Sub-Urban Intellectual Property Rights

  	
  Exhibit

  	
  2.10

  

 

 

AGREEMENT

 

AGREEMENT made this 11th day of May, 2006, by and between Sub-Urban
Brands, Inc., (formerly known as DP&D, INC.), a Nevada corporation (“DP&D”),
SUB-URBAN INDUSTRIES, INC., a California corporation (“Sub-Urban”), and the
security holders of Sub-Urban (the “Sub-Urban Security Holders”) who are listed
on Exhibit 1.1 hereto and have executed Subscription Agreements in the form
attached in Exhibit 1.2, hereto.

 

WHEREAS, DP&D desires to acquire all of the issued and outstanding
securities of Sub-Urban from the Sub-Urban Security Holders in exchange for
newly issued unregistered securities of DP&D;

 

WHEREAS, Sub-Urban desires to assist DP&D in acquiring all of the
issued and outstanding securities of Sub-Urban pursuant to the terms of this
Agreement; and

 

WHEREAS, the Sub-Urban Security Holders, by execution of Exhibit 1.2
hereto, agree to exchange all securities they hold in Sub-Urban for securities
of DP&D.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and
representations contained herein, THE PARTIES HERETO AGREE AS FOLLOWS:

 

ARTICLE I

 

Exchange of
Securities

 

1.1           Issuance of Securities. Subject to the
terms and conditions of this Agreement, DP&D agrees to issue and exchange
(i) 31,673,363 fully paid and nonassessable unregistered shares of DP&D’s
$.001 par value common stock (the “DP&D Shares”) for all 31,673,363 issued
and outstanding shares of the no par value common stock of Sub-Urban (the “Sub-Urban
Shares”) held by the Sub-Urban Security Holders and (ii) $2,734,900 face amount
of convertible promissory notes convertible into the common stock of DP&D
at a range of prices from $0.250 per share to $0.375 per share, and subject to
respective conversion price adjustments, in exchange for a like face amount of
promissory notes held by the Sub-Urban Security Holders. All DP&D
securities will be issued directly to the Sub-Urban Security Holders on the
Closing Date, as hereinafter defined, pursuant to the schedule set forth in
Exhibit 1.1. All promissory notes of DP&D exchanged for promissory notes of
Sub-Urban will be convertible into the common stock of DP&D at the same
exercise price per share as provided in the promissory notes of Sub-Urban. DP&D
will also issue to the Sub-Urban Security Holders stock options and warrants on
a one-for-one basis for outstanding stock options and warrants of Sub-Urban and
exercisable at the same price and terms per share as the stock options and
warrants of Sub-Urban. The common stock, promissory notes, stock options and
warrants of DP&D are collectively referred to as the “DP&D Securities.”

 

1.2           Exemption from Registration. The parties
hereto intend that all DP&D Securities to be issued to the Sub-Urban
Security Holders shall be exempt from the registration

 

1

 

requirements of the Securities
Act of 1933, as amended (the “Act”), pursuant to Section 4(2) and/or Regulation
D of the Act and the rules and regulations promulgated thereunder. In furtherance
thereof, each of the Sub-Urban Security Holders will execute and deliver to
DP&D on the closing date of this Agreement (the “Closing Date”) a copy of
the Subscription Agreement set forth in Exhibit 1.2 hereto.

 

1.3           Corporate
Action by DP&D. On or before the Closing Date, DP&D shall
(i) change its name to Sub-Urban Brands, Inc, (ii) file its Quarterly Report on
Form 10-QSB for the quarter ended March 31, 2006 with the Securities and
Exchange Commission and (iii) divest itself of any and all business operations
by conveying all of its assets to Dina Staheli, and Harold Sciotto in exchange
for the return and cancellation of 145,000,000 and 7,250,000 shares of DP&D’s
common stock, respectively.

 

ARTICLE II

 

Representations and
Warranties of Sub-Urban

 

Sub-Urban hereby represents and warrants to DP&D that:

 

2.1           Organization. Sub-Urban is a corporation
duly organized, validly existing and in good standing under the laws of
California, has all necessary corporate powers to own its properties and to
carry on its business as now owned and operated by it, and is duly qualified to
do business and is in good standing in each of the states where its business
requires qualification.

 

2.2           Capital. The authorized capital stock of
Sub-Urban consists of 90,000,000 authorized shares of no par value common
stock, of which 31,673,363 shares of common stock will be outstanding on the
Closing Date and 10,000,000 authorized shares of preferred stock, none of which
will be outstanding on the Closing Date. All of the outstanding common stock of
Sub-Urban is duly and validly issued, fully paid and nonassessable. Except as
disclosed on the Exception Schedule Exhibit, there are no outstanding
subscriptions, options, rights, warrants, debentures, instruments, convertible
securities or other agreements or commitments obligating Sub-Urban to issue any
additional shares of its capital stock of any class, except promissory notes
convertible into 10,819,094 shares of Sub-Urban common stock, options to
purchase an aggregate of 7,732,698 shares of Sub-Urban common stock and
warrants to purchase an aggregate of 16,822,245 shares of Sub-Urban common
stock. All common stock issuable under Sub-Urban’s convertible promissory
notes, options and warrants will be convertible on the Closing Date into a like
amount of common stock issuable by DP&D.

 

2.3           Subsidiaries. Sub-Urban does not have any
subsidiaries or own any interest in any other enterprise.

 

2.4           Directors and Officers. The names and
titles of the directors and officers of Sub-Urban as of the date of this
Agreement are as follows:  Joe Shortal,
Chief Executive Officer and Director; Meredith Feldman, President; and Mark
Jacobs, Secretary. The following are slated to join Sub-Urban in the respective
capacities upon the closing of this Agreement and issuance of a Directors and
Officers Liability Policy: Jack Mott, Chief Financial Officer, Chief Operating

 

2

 

Officer and Director; John
Koufis, Director; David Howitt, Director; and Kenard Gibbs, Director.

 

2.5           Financial Statements. Exhibit 2.5 hereto
consists of the audited financial statements of Sub-Urban for the years ended
December 31, 2003, 2004 and 2005 and unaudited, unreviewed financial statements
for the three months ended March 31, 2006 (the “Sub-Urban Financial Statements”).
The Sub-Urban Financial Statements have been prepared in accordance with
generally accepted accounting principles and practices consistently followed by
Sub-Urban throughout the periods indicated, and fairly present the financial
position of Sub-Urban as of the dates of the balance sheets included in the
Sub-Urban Financial Statements and the results of operations for the periods
indicated. There are no material omissions or nondisclosures in the Sub-Urban
Financial Statements.

 

2.6           Absence of Changes. Since March 31, 2006
there has not been any material change in the financial condition or operations
of Sub-Urban, except as contemplated by this Agreement. As used in this
Agreement, “material” means:  Any change
or effect (or development that, insofar as can be reasonably foreseen, is
likely to result in any change or effect) that causes substantial increase or
diminution in the business, properties, assets, condition (financial or
otherwise) or results of operations of a party. Taken as a whole, material
change shall not include changes in national or international economic
conditions or industry conditions generally; changes or possible changes in
statutes and regulations applicable to a party; or the loss of employees, customers
or suppliers by a party as a direct or indirect consequence of any announcement
relating to this transaction.

 

2.7           Absence of Undisclosed Liabilities. As of
March 31, 2006, Sub-Urban did not have any material debt, liability or
obligation of any nature, whether accrued, absolute, contingent or otherwise,
and whether due or to become due, that is not reflected in the Sub-Urban
Financial Statements.

 

2.8           Tax Returns. Sub-Urban has filed all
federal, state and local tax returns required by law and has paid all taxes,
assessments and penalties due and payable. The provisions for taxes, if any,
reflected in Exhibit 2.5 are adequate for the periods indicated. There are no
present disputes as to taxes of any nature payable by Sub-Urban.

 

2.9           Investigation of Financial Condition.
Without in any manner reducing or otherwise mitigating the representations
contained herein, DP&D, its legal counsel and accountants shall have the
opportunity to meet with Sub-Urban’s accountants and attorneys to discuss the
financial condition of Sub-Urban during reasonable business hours and in a
manner that does not interfere with the normal operation of Sub-Urban’s
business. Sub-Urban shall make available to DP&D all books and records of
Sub-Urban, provided, however, that Sub-Urban will be under no obligation to
provide any information subject to confidentiality provisions or waive any
privilege associated with any such information.

 

2.10         Intellectual Property Rights. Sub-Urban
owns or has the right to use all trademarks, service marks, trade names,
copyrights and patents material to its business.

 

3

 

2.11         Compliance with Laws. To the best of
Sub-Urban’s knowledge, Sub-Urban has complied with, and is not in violation of,
applicable federal, state or local statutes, laws and regulations, including
federal and state securities laws, except where such non-compliance would not
have a material adverse impact upon its business or properties.

 

2.12         Litigation. Sub-Urban is not a defendant
in any suit, action, arbitration or legal, administrative or other proceeding,
or governmental investigation which is pending or, to the best knowledge of
Sub-Urban, threatened against or affecting Sub-Urban or its business, assets or
financial condition. Sub-Urban is not in default with respect to any order,
writ, injunction or decree of any federal, state, local or foreign court,
department, agency or instrumentality applicable to it. Sub-Urban is not
engaged in any material litigation to recover monies due to it.

 

2.13         Authority. The Board of Directors of
Sub-Urban has authorized the execution of this Agreement and the consummation
of the transactions contemplated herein, and Sub-Urban has full power and
authority to execute, deliver and perform this Agreement, and this Agreement is
a legal, valid and binding obligation of Sub-Urban and is enforceable in
accordance with its terms and conditions. By execution of Exhibit 1.2, all of
the Sub-Urban Security Holders have agreed to and have approved the terms of
this Agreement.

 

2.14         Ability to Carry Out Obligations. To the
best of Sub-Urban’s knowledge, the execution and delivery of this Agreement by
Sub-Urban and the performance by Sub-Urban of its obligations hereunder in the
time and manner contemplated will not cause, constitute or conflict with or
result in (a) any breach or violation of any of the provisions of or constitute
a default under any license, indenture, mortgage, instrument, article of
incorporation, bylaw, or other agreement or instrument to which Sub-Urban is a
party, or by which it may be bound, nor will any consents or authorizations of
any party other than those hereto be required, (b) an event that would permit
any party to any agreement or instrument to terminate it or to accelerate the
maturity of any indebtedness or other obligation of Sub-Urban, or (c) an event
that would result in the creation or imposition of any lien, charge or
encumbrance on any asset of Sub-Urban.

 

2.15         Full Disclosure. None of the
representations and warranties made by Sub-Urban herein or in any exhibit,
certificate or memorandum furnished or to be furnished by Sub-Urban, or on its
behalf, contains or will contain any untrue statement of material fact or omit
any material fact the omission of which would be misleading.

 

2.16         Assets and Liabilities. Sub-Urban’s assets
and liabilities are fully included in Exhibit 2.5 and its assets are not
subject to any claims or encumbrances except as indicated in Exhibit 2.5

 

2.17         Material Contracts. Sub-Urban does not
have any material contracts, except as set forth in Exhibit 2.17.

 

2.18         Indemnification. Sub-Urban agrees to
indemnify, defend and hold DP&D harmless against and in respect of any and
all claims, demands, losses, costs, expenses, obligations, liabilities,
damages, recoveries and deficiencies, including interest, penalties and
reasonable attorney fees asserted by third parties against DP&D or
Sub-Urban which arise out of,

 

4

 

or result from (i) any breach
by Sub-Urban in performing any of its covenants or agreements under this
Agreement or in any schedule, certificate, exhibit or other instrument
furnished or to be furnished by Sub-Urban under this Agreement, (ii) a failure
of any representation or warranty in this Article II or (iii) any untrue
statement made by Sub-Urban in this Agreement.

 

2.19         Criminal or Civil Acts. For the period of
five years prior to the execution of this Agreement, no executive officer,
director or principal stockholder of Sub-Urban has been convicted of a felony
crime, filed for personal bankruptcy, been the subject of a Commission or NASD
judgment or decree, or is currently the subject to any investigation in
connection with a felony crime or Commission or NASD proceeding.

 

2.20         Restricted Securities. Sub-Urban and the
Sub-Urban Security Holders, by execution of this Agreement and of Exhibit 1.2,
acknowledge that all of the DP&D Securities issued by DP&D are
restricted securities and none of such securities may be sold or publicly
traded except in accordance with the provisions of the Act.

 

ARTICLE III

 

Representations and
Warranties of DP&D

 

DP&D represents and warrants to Sub-Urban that:

 

3.1           Organization. DP&D is a corporation
duly organized, validly existing and in good standing under the laws of Nevada,
has all necessary corporate powers to carry on its business, and is duly
qualified to do business and is in good standing in each of the states where
its business requires qualification.

 

3.2           Capital. The authorized capital stock of
DP&D on the Closing Date will consist of 190,000,000 shares of $.001 par
value common stock, of which 14,500,000 shares of common stock will be issued
and outstanding and 10,000,000 shares of $.001 par value preferred stock, none
of which will be outstanding. All of DP&D’s outstanding securities are duly
and validly issued, fully paid and nonassessable. There are no outstanding
subscriptions, options, rights, warrants, debentures, instruments, convertible
securities or other agreements or commitments obligating DP&D to issue any
additional shares of its capital stock of any class, except as required under
this Agreement.

 

3.3           Subsidiaries. DP&D does not have any
subsidiaries or own any interest in any other enterprise.

 

3.4           Directors and Officers. The sole executive
officer and director of DP&D is Dina Staheli, Chief Executive Officer and
Director.

 

3.5           Financial Statements. Exhibit 3.5 hereto
consists of the audited financial statements of DP&D for the years ended
December 31, 2004 and 2005 and the unaudited financial statements of DP&D
for the three months ended March 31, 2006 (the “DP&D Financial Statements”).
The DP&D Financial Statements have been prepared in accordance with
generally

 

5

 

accepted accounting principles
and practices consistently followed by DP&D throughout the periods
indicated, and fairly present the financial position of DP&D as of the date
of the balance sheets included in the DP&D Financial Statements and the
results of operations for the periods indicated. There are no material
omissions or nondisclosures in the DP&D Financial Statements.

 

3.6           Absence of Changes. Since March 31, 2006,
there has not been any material change (as defined in Section 2.6) in the
financial condition or operations of DP&D, except as contemplated by this
Agreement.

 

3.7           Absence of Undisclosed Liabilities. As of
March 31, 2006, DP&D did not have any material debt, liability or
obligation of any nature, whether accrued, absolute, contingent or otherwise,
and whether due or to become due, that is not reflected in the DP&D
Financial Statements.

 

3.8           Tax Returns. Within the times and in the
manner prescribed by law, DP&D has filed all federal, state and local tax
returns required by law and has paid all taxes, assessments, and penalties due
and payable.

 

3.9           Investigation of Financial Condition.
Without in any manner reducing or otherwise mitigating the representations
contained herein, Sub-Urban, its legal counsel and accountants shall have the
opportunity to meet with DP&D’s accountants and attorneys to discuss the
financial condition of DP&D. DP&D shall make available to Sub-Urban all
books and records of DP&D.

 

3.10         Intellectual Property Rights. DP&D
does not have any patents, trademarks, service marks, trade names, copyrights
or other intellectual property rights.

 

3.11         Compliance with Laws. DP&D has
complied with, and is not in violation of, applicable federal, state or local
statutes, laws or regulations including federal and state securities laws.

 

3.12         Litigation. DP&D is not a defendant in
any suit, action, arbitration, or legal, administrative or other proceeding, or
governmental investigation which is pending or, to the best knowledge of
DP&D, threatened against or affecting DP&D or its business, assets or
financial condition. DP&D is not in default with respect to any order,
writ, injunction or decree of any federal, state, local or foreign court,
department, agency or instrumentality applicable to it. DP&D is not engaged
in any material litigation to recover monies due to it.

 

3.13         Authority. The Board of Directors of
DP&D has authorized the execution of this Agreement and the transactions
contemplated herein, and DP&D has full power and authority to execute,
deliver and perform this Agreement, and this Agreement is the legal, valid and
binding obligation of DP&D, and is enforceable in accordance with its terms
and conditions.

 

3.14         Ability to Carry Out Obligations. The
execution and delivery of this Agreement by DP&D and the performance by
DP&D of its obligations hereunder will not cause, constitute or conflict
with or result in (a) any breach or violation of any of the provisions of or
constitute a

 

6

 

default under any license,
indenture, mortgage, instrument, article of incorporation, bylaw or other
agreement or instrument to which DP&D is a party, or by which it may be
bound, nor will any consents or authorization of any party other than those
hereto be required, (b) an event that would permit any party to any agreement
or instrument to terminate it or to accelerate the maturity of any indebtedness
or other obligation of DP&D, or (c) an event that would result in the
creation or imposition of any lien, charge or encumbrance on any asset of
DP&D.

 

3.15         Full Disclosure. None of the representations
and warranties made by DP&D herein, or in any exhibit, certificate or
memorandum furnished or to be furnished by DP&D or on its behalf, contains
or will contain any untrue statement of material fact or omit any material fact
the omission of which would be misleading.

 

3.16         Assets and Liabilities. On the Closing
Date DP&D will have no assets or liabilities.

 

3.17         Material Contracts. DP&D has no
material contracts.

 

3.18         Indemnification. DP&D agrees to
indemnify, defend and hold Sub-Urban harmless against and in respect of any and
all claims, demands, losses, costs, expenses, obligations, liabilities,
damages, recoveries and deficiencies, including interest, penalties, and
reasonable attorney fees asserted by third parties against DP&D or Sub-Urban,
that it shall incur or suffer, which arise out of, or result from (i) any
breach by DP&D in performing any of its covenants or agreements in this
Agreement or in any schedule, certificate, exhibit or other instrument
furnished or to be furnished by DP&D under this Agreement, (ii) a failure
of any representation or warranty in this Article III, or (iii) any untrue
statement made by DP&D in this Agreement.

 

3.19         Criminal or Civil Acts. For a period of
five years prior to the execution of this Agreement, no executive officer,
director or principal stockholder of DP&D has been convicted of a felony
crime, filed for personal bankruptcy, been the subject of a Securities and
Exchange Commission (“Commission”) or NASD judgment or decree, or is currently
the subject to an investigation in connection with any felony crime or
Commission or NASD proceeding.

 

3.20         Bulletin
Board Trading Status. DP&D shall be in compliance with all
requirements for, and its common stock shall be quoted on, the Over the Counter
Electronic Bulletin Board system on the Closing Date, such that the common
stock of DP&D may continue to be so quoted without interruption following
the Closing.

 

ARTICLE IV

 

Covenants Prior to
the Closing Date

 

4.1           Investigative Rights. Prior to the Closing
Date, each party shall provide to the other party, and such other party’s
counsel, accountants, auditors and other authorized representatives, full
access during normal business hours and upon reasonable advance written notice
to all of each party’s properties, books, contracts, commitments and records
for the

 

7

 

purpose of examining the same. Each
party shall furnish the other party with all information concerning each party’s
affairs as the other party may reasonably request. If during the investigative
period one party learns that a representation of the other party was not
accurate, no such claim may be asserted by the party so learning that a
representation of the other party was not accurate.

 

4.2           Conduct of Business. Prior to the Closing
Date, each party shall conduct its business in the normal course and shall not
sell, pledge or assign any assets without the prior written approval of the
other party, except in the normal course of business. Neither party shall amend
its Articles of Incorporation or Bylaws (except as may be described in this
Agreement), declare dividends, redeem or sell stock or other securities. Neither
party shall enter into negotiations with any third party or complete any
transaction with a third party involving the sale of any of its assets or the
exchange of any of its common stock.

 

4.3           Confidential
Information. Each party will treat all nonpublic, confidential and
trade secret information received from the other party as confidential, and
such party shall not disclose or use such information in a manner contrary to
the purposes of this Agreement. Moreover, all such information shall be
returned to the other party in the event this Agreement is terminated.

 

4.4           Notice of
Non-Compliance. Each party shall give prompt notice to the other
party of any representation or warranty made by it in this Agreement becoming
untrue or inaccurate in any respect or the failure by it to comply with or
satisfy in any material respect any covenant, condition or agreement to be
complied with or satisfied by it under this Agreement.

 

ARTICLE V

 

Conditions Precedent
to DP&D’s Performance

 

5.1           Conditions. DP&D’s obligations
hereunder shall be subject to the satisfaction at or before the Closing of all
the conditions set forth in this Article V. DP&D may waive any or all of
these conditions in whole or in part without prior notice; provided, however,
that no such waiver of a condition shall constitute a waiver by DP&D of any
other condition of or any of DP&D’s other rights or remedies, at law or in
equity, if Sub-Urban shall be in default of any of its representations,
warranties or covenants under this Agreement.

 

5.2           Accuracy of Representations. Except as
otherwise permitted by this Agreement, all representations and warranties by
Sub-Urban in this Agreement or in any written statement that shall be delivered
to DP&D by Sub-Urban under this Agreement shall be true and accurate on and
as of the Closing Date as though made at that time.

 

5.3           Performance. Sub-Urban shall have
performed, satisfied and complied with all covenants, agreements and conditions
required by this Agreement to be performed or complied with by it on or before
the Closing Date.

 

8

 

5.4           Absence of Litigation. No action, suit, or
proceeding, including injunctive actions, before any court or any governmental
body or authority, pertaining to the transaction contemplated by this Agreement
or to its consummation, shall have been instituted or threatened against
Sub-Urban on or before the Closing Date.

 

5.5           Officer’s Certificate. Sub-Urban shall
have delivered to DP&D a certificate dated the Closing Date signed by the
Chief Executive Officer of Sub-Urban certifying that each of the conditions
specified in this Article has been fulfilled and that all of the
representations set forth in Article II are true and correct as of the Closing
Date.

 

5.6           Payment of Liabilities. On or before the Closing, DP&D shall
have paid any outstanding obligations and liabilities of DP&D incurred
through the Closing Date.

 

5.7           Corporate Action. Sub-Urban shall have
obtained the approval of the Sub-Urban Security Holders for the transaction
contemplated by this Agreement.

 

5.8           Preferred Shares. Sub-Urban shall have
converted all of its outstanding Series A Preferred Stock to Common Stock.

 

ARTICLE VI

 

Conditions Precedent
to Sub-Urban’s Performance

 

6.1           Conditions. Sub-Urban’s obligations
hereunder shall be subject to the satisfaction at or before the Closing of all
the conditions set forth in this Article VI. Sub-Urban may waive any or all of
these conditions in whole or in part without prior notice; provided, however,
that no such waiver of a condition shall constitute a waiver by Sub-Urban of
any other condition of or any of Sub-Urban’s rights or remedies, at law or in
equity, if DP&D shall be in default of any of its representations,
warranties or covenants under this Agreement.

 

6.2           Accuracy of Representations. Except as
otherwise permitted by this Agreement, all representations and warranties by
DP&D in this Agreement or in any written statement that shall be delivered
to Sub-Urban by DP&D under this Agreement shall be true and accurate on and
as of the Closing Date as though made at that time.

 

6.3           Performance. DP&D shall have performed,
satisfied and complied with all covenants, agreements and conditions required
by this Agreement to be performed or complied with by it on or before the
Closing Date.

 

6.4           Absence of Litigation. No action, suit or
proceeding before any court or any governmental body or authority, pertaining
to the transaction contemplated by this Agreement or to its consummation, shall
have been instituted or threatened against DP&D on or before the Closing
Date.

 

6.5           Officer’s Certificate. DP&D shall have
delivered to Sub-Urban a certificate dated the Closing Date signed by the Chief
Executive Officer of DP&D certifying that each of the

 

9

 

conditions specified in this
Article has been fulfilled and that all of the representations set forth in
Article III are true and correct as of the Closing Date.

 

6.6           Directors of DP&D. On the Closing
Date, the Board of Directors of DP&D shall elect the directors of Sub-Urban
to DP&D’s Board of Directors and then shall resign as directors.

 

6.7           Officers of DP&D. On the Closing Date,
the newly constituted Board of Directors of DP&D shall elect such officers
of DP&D as set forth in Section 2.4.

 

6.8           Corporate Action. DP&D shall have completed the corporate action set forth in Section
1.3.

 

ARTICLE VII

 

Closing

 

7.1           Closing. The Closing of this Agreement
shall be held at the offices of Gary A. Agron, DP&D’s counsel, at any
mutually agreeable time and date (the “Closing Date”) prior to May 12, 2006,
unless extended by mutual agreement. At the Closing:

 

(a)           Sub-Urban shall deliver to DP&D copies of
Exhibit 1.2 executed by all of the Sub-Urban Security Holders together with
Sub-Urban certificates or documentation representing (i) 30,981,410 shares of
Sub-Urban common stock, with a conversion adjusted quantity of 31,673,363 (ii)
$2,734,900 face amount of Sub-Urban convertible promissory notes, (iii)
15,878,603 common stock purchase warrants, with a conversion adjusted quantity
of 16,822,245, and (iv) 7,732,698 stock options, all duly endorsed to DP&D;

 

(b)           DP&D shall deliver to the Sub-Urban Security
Holders DP&D certificates representing (i) 31,673.363 shares of DP&D’s
common stock, (ii) $2,734,900 face amount of DP&D convertible promissory
notes, (iii) 15,878,603 common stock purchase warrants and (iv) 7,732.698 stock
options, all pursuant to the computations set forth in Exhibit 1.1 hereto;

 

(c)           DP&D shall deliver (i) the officer’s
certificate described in Section 6.5, (ii) a signed consent and/or minutes of
its directors approving this Agreement and (iii) resignations and releases from
its executive officers and directors pursuant to Sections 6.6 and 6.7;

 

(d)           Sub-Urban shall deliver (i) the officer’s
certificate described in Section 5.5 and (ii) a signed consent and/or minutes
of its shareholders and directors approving this Agreement.

 

10

 

ARTICLE VIII

 

Covenants Subsequent
to the Closing Date

 

8.1           Registration and Listing. Following the
Closing Date, DP&D shall use its best efforts to:

 

(a)           Continue DP&D’s common stock quotation on
the Over the Counter Electronic Bulletin Board system; and

 

(b)           List DP&D’s securities in Standard &
Poor’s OTC or Corporate Manual.

 

8.2           Stock Option
Plan. Following the Closing Date, DP&D shall adopt a stock
option or other securities incentive plan as its Board of Directors shall
reasonably determine, which plan shall provide identical stock options and
other incentives as were contained in Sub-Urban’s securities incentive plan
prior to the Closing Date.

 

ARTICLE
IX

 

Miscellaneous

 

9.1           Captions and Headings. The article and
paragraph headings throughout this Agreement are for convenience and reference
only and shall not define, limit or add to the meaning of any provision of this
Agreement.

 

9.2           No Oral Change. This Agreement and any
provision hereof may not be waived, changed, modified or discharged orally, but
only by an agreement in writing signed by the party against whom enforcement of
any such waiver, change, modification or discharge is sought.

 

9.3           Non-Waiver. The failure of any party to
insist in any one or more cases upon the performance of any of the provisions,
covenants or conditions of this Agreement or to exercise any option herein
contained shall not be construed as a waiver or relinquishment for the future
of any such provisions, covenants or conditions. No waiver by any party of one
breach by another party shall be construed as a waiver with respect to any
other subsequent breach.

 

9.4           Time of Essence. Time is of the essence of
this Agreement and of each and every provision hereof.

 

9.5           Entire Agreement. This Agreement contains
the entire Agreement and understanding between the parties hereto and
supersedes all prior agreements and understandings.

 

9.6           Choice of Law. This Agreement and its
application shall be governed by the laws of the state of Nevada.

 

9.7           Counterparts. This Agreement may be
executed simultaneously 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.

 

11

 

9.8           Notices. All notices, requests, demands
and other communications under this Agreement shall be in writing and shall be
deemed to have been duly given on the date of service if served personally on
the party to whom notice is to be given, or on the third day after mailing if
mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, and properly addressed as follows:

 

DP&D:

 

DP&D, Inc.

4251 East Melody Drive

Higley, Arizona  85236

Attn: 
Dina Staheli, Chief Executive Officer

 

Sub-Urban:

 

Sub-Urban Industries, Inc.

2222 E. Washington Blvd., Suite B

Los Angeles, California  90021

Attn: 
Joe Shortal, Chief Executive Officer

 

9.9           Binding Effect. This Agreement shall inure
to and be binding upon the heirs, executors, personal representatives,
successors and assigns of each of the parties to this Agreement.

 

9.10         Mutual Cooperation. The parties hereto
shall cooperate with each other to achieve the purpose of this Agreement and
shall execute such other and further documents and take such other and further
actions as may be necessary or convenient to effect the transaction described
herein.

 

9.11         Finders. There are no finders in
connection with this transaction.

 

9.12         Announcements. The parties will consult
and cooperate with each other as to the timing and content of any public
announcements regarding this Agreement.

 

9.13         Expenses. Each party will bear their own
expenses, including legal fees incurred in connection with this Agreement. The
Sub-Urban Security Holders shall not be responsible for any costs incurred in
connection with the transaction contemplated by this Agreement.

 

9.14         Survival of Representations and Warranties.
The representations, warranties, covenants and agreements of the parties set
forth in this Agreement or in any instrument, certificate, opinion or other
writing providing for in it, shall survive the Closing.

 

9.15         Exhibits. As of the execution hereof, the
parties have provided each other with the Exhibits described herein. Any
material changes to the Exhibits shall be immediately disclosed to the other
party.

 

12

 

9.16         Legal Counsel. Gary A. Agron, Esq., has
represented Sub-Urban in connection with this Agreement. DP&D has been
represented by counsel of its choice. Both parties acknowledge that Gary A.
Agron has represented affiliates of DP&D in the past, and both parties
waive any conflict of interest that may result from such prior representation.

 

9.17         Termination,
Amendment and Waiver.

 

(a)  Termination. This
Agreement may be terminated at any time prior to the Closing Date, whether
before or after approval of matters presented in connection with the share
exchange by the stockholders of DP&D or by the stockholders of Sub-Urban:

 

(1)           by mutual written
consent of Sub-Urban and DP&D;

 

(2)           by either Sub-Urban or
DP&D;

 

(i)            if the stockholders of
Sub-Urban fail to agree to the exchange of securities with DP&D or,

 

(ii)           if
any court of competent jurisdiction or any governmental, administrative or
regulatory authority, agency or body shall have issued an order, decree or
ruling or taken any other action permanently enjoining, restraining or
otherwise prohibiting the transactions contemplated by this Agreement.

 

(3)           by Sub-Urban, if
DP&D breaches any of its representations or warranties hereof or fails to
perform in any material respect any of its covenants, agreements or obligations
under this Agreement; and

 

(4)           by DP&D, if
Sub-Urban breaches any of its representations or warranties hereof or fails to
perform in any material respect any of its covenants, agreements or obligations
under this Agreement.

 

(b)  Effect of Termination.
In the event of termination of this Agreement by either DP&D or Sub-Urban,
as provided herein, this Agreement shall forthwith become void and have no
effect, without any liability or obligation on the part of Sub-Urban or
DP&D, and such termination shall not relieve any party hereto for any
intentional breach prior to such termination by a party hereto of any of its
representations or warranties or any of its covenants or agreements set forth
in this Agreement.

 

(c)  Extension; Waiver. At
any time prior to the Closing Date, the parties may, to the extent legally
allowed, (a) extend the time for the performance of any of the obligation of
the other acts of the other parties, (b) waive any inaccuracies in the
representations and warranties contained herein or in any document delivered
pursuant hereto or waive compliance with any of the agreements or conditions
contained herein. Any agreement on the part of a party to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on
behalf of

 

13

 

such party. The failure of any
party to this Agreement to assert any of its rights under this Agreement or
otherwise shall not constitute a waiver of such rights.

 

In witness whereof, the parties have executed this Agreement on the
date indicated above.

 

	
  DP&D, INC.

  	
  SUB-URBAN INDUSTRIES, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Dina Staheli

  	
   

  	
   

  	
  Joe Shortal, Chief Executive Officer

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  

 

14

EXHIBIT 1.1

SCHEDULE OF SUB-URBAN COMMON STOCKHOLDERS

AND

ALLOCATION OF DP&D COMMON SHARES

 

	
  Name

  	
   

  	
  SUI Cert#

  	
   

  	
  Number of Sub-

  Urban Common

  Shares

  Exchanged

  	
   

  	
  Number of DP&D

  Common Shares to be

  Issued

  	
   

  
	
  James Blondell

  	
   

  	
  C-1

  	
   

  	
  5,779,600

  	
   

  	
  5,779,600

  	
   

  
	
  Tom Blondell Sr.

  	
   

  	
  C-1

  	
   

  	
  200,000

  	
   

  	
  200,000

  	
   

  
	
  Ilene Hartle

  	
   

  	
  C-1

  	
   

  	
  125,000

  	
   

  	
  125,000

  	
   

  
	
  Tom Blondell Jr.

  	
   

  	
  C-1

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  
	
  Caeser Luisi

  	
   

  	
  C-1

  	
   

  	
  50,000

  	
   

  	
  50,000

  	
   

  
	
  Robert Foley

  	
   

  	
  C-1

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  
	
  Joe Shortal

  	
   

  	
  C-2

  	
   

  	
  5,233,200

  	
   

  	
  5,233,200

  	
   

  
	
  Aaron Apodaca

  	
   

  	
  C-9

  	
   

  	
  1,869,000

  	
   

  	
  1,869,000

  	
   

  
	
  Mark Jacobs

  	
   

  	
  C-4

  	
   

  	
  1,495,200

  	
   

  	
  1,495,200

  	
   

  
	
  Matt Blondell

  	
   

  	
  C-3

  	
   

  	
  1,121,400

  	
   

  	
  1,121,400

  	
   

  
	
  Matt Blondell

  	
   

  	
  C-10

  	
   

  	
  373,800

  	
   

  	
  373,800

  	
   

  
	
  Oscar Turner

  	
   

  	
  C-5

  	
   

  	
  560,700

  	
   

  	
  560,700

  	
   

  
	
  Oscar Turner

  	
   

  	
  C-11

  	
   

  	
  373,800

  	
   

  	
  373,800

  	
   

  
	
  Stephen Kinder

  	
   

  	
  C-12

  	
   

  	
  934,500

  	
   

  	
  934,500

  	
   

  
	
  Barnes Morris Klein Yorn

  	
   

  	
  C-6

  	
   

  	
  93,450

  	
   

  	
  93,450

  	
   

  
	
  Barnes Morris Klein Yorn

  	
   

  	
  C-13

  	
   

  	
  186,900

  	
   

  	
  186,900

  	
   

  
	
  David A. Krintzman

  	
   

  	
  C-14

  	
   

  	
  93,450

  	
   

  	
  93,450

  	
   

  
	
  RDK Roth IRA

  	
   

  	
  C-16

  	
   

  	
  73,426

  	
   

  	
  73,426

  	
   

  
	
  RDK Roth IRA

  	
   

  	
  C-17

  	
   

  	
  73,426

  	
   

  	
  73,426

  	
   

  
	
  RDK trust

  	
   

  	
  C-15

  	
   

  	
  66,750

  	
   

  	
  66,750

  	
   

  
	
  John Stamatis

  	
   

  	
  CS-55

  	
   

  	
  640,800

  	
   

  	
  640,800

  	
   

  
	
  Romeo DiBatista Jr.

  	
   

  	
  CS-48

  	
   

  	
  33,334

  	
   

  	
  33,334

  	
   

  
	
  Gamy Trust

  	
   

  	
  20

  	
   

  	
  400,000

  	
   

  	
  400,000

  	
   

  
	
  Lea Roussos

  	
   

  	
  21

  	
   

  	
  400,000

  	
   

  	
  400,000

  	
   

  
	
  Pacific Tek

  	
   

  	
  22

  	
   

  	
  200,000

  	
   

  	
  200,000

  	
   

  
	
  Michael Shortal

  	
   

  	
  CS-51

  	
   

  	
  53,400

  	
   

  	
  53,400

  	
   

  
	
  Michael Burchard

  	
   

  	
  CS-24

  	
   

  	
  16,500

  	
   

  	
  16,500

  	
   

  
	
  Stan Snow

  	
   

  	
  CS-23

  	
   

  	
  16,500

  	
   

  	
  16,500

  	
   

  
	
  Leonard Koenig

  	
   

  	
  CS-46

  	
   

  	
  133,500

  	
   

  	
  133,500

  	
   

  
	
  Michal Cohen

  	
   

  	
  CS-47

  	
   

  	
  133,500

  	
   

  	
  133,500

  	
   

  
	
  Michael Simon

  	
   

  	
  CS-50

  	
   

  	
  53,400

  	
   

  	
  53,400

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-58

  	
   

  	
  88,000

  	
   

  	
  88,000

  	
   

  
	
  Amos Varsha

  	
   

  	
  C-26

  	
   

  	
  44,000

  	
   

  	
  44,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  C-26S

  	
   

  	
  44,000

  	
   

  	
  44,000

  	
   

  
	
  Amos Varsha

  	
   

  	
  C-27

  	
   

  	
  44,000

  	
   

  	
  44,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  C-27s

  	
   

  	
  44,000

  	
   

  	
  44,000

  	
   

  

 

 

	
  Name

  	
   

  	
  SUI Cert#

  	
   

  	
  Number of Sub-

  Urban Common

  Shares

  Exchanged

  	
   

  	
  Number of DP&D

  Common Shares to be

  Issued

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-59

  	
   

  	
  88,000

  	
   

  	
  88,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-60

  	
   

  	
  960,000

  	
   

  	
  960,000

  	
   

  
	
  Amos Varsha

  	
   

  	
  CS-61

  	
   

  	
  120,000

  	
   

  	
  120,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-61S

  	
   

  	
  120,000

  	
   

  	
  120,000

  	
   

  
	
  Steve Rosen

  	
   

  	
  CS-30

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  Officeworxx

  	
   

  	
  CS-30S

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  Officeworxx

  	
   

  	
  CS-31

  	
   

  	
  96,000

  	
   

  	
  96,000

  	
   

  
	
  Steve Rosen

  	
   

  	
  CS-32

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  Steve Rosen

  	
   

  	
  CS-32S

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  Officeworxx

  	
   

  	
  CS-33

  	
   

  	
  96,000

  	
   

  	
  96,000

  	
   

  
	
  Steve Rosen

  	
   

  	
  CS-34

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  
	
  Officeworxx

  	
   

  	
  CS-34S

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  
	
  Pacific Tek

  	
   

  	
  CS-35

  	
   

  	
  80,000

  	
   

  	
  80,000

  	
   

  
	
  Amos Varsha

  	
   

  	
  CS-37

  	
   

  	
  50,000

  	
   

  	
  50,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-37s

  	
   

  	
  50,000

  	
   

  	
  50,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-38

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  
	
  Amos Varsha

  	
   

  	
  CS-39

  	
   

  	
  360,000

  	
   

  	
  360,000

  	
   

  
	
  Raymond Tougas

  	
   

  	
  CS-39SA

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  CS-39SB

  	
   

  	
  210,000

  	
   

  	
  210,000

  	
   

  
	
  Pacific Tek

  	
   

  	
  CS-40

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  Maryam Seilabi

  	
   

  	
  CS-52

  	
   

  	
  14,134

  	
   

  	
  14,134

  	
   

  
	
  John Stamatis

  	
   

  	
  C65

  	
   

  	
  1,040,000

  	
   

  	
  1,040,000

  	
   

  
	
  HJG Parntership

  	
   

  	
  CS-56

  	
   

  	
  33,334

  	
   

  	
  33,334

  	
   

  
	
  Brian Duffy

  	
   

  	
  CS-45

  	
   

  	
  520,000

  	
   

  	
  520,000

  	
   

  
	
  Steve Decastro

  	
   

  	
  CS-53

  	
   

  	
  10,000

  	
   

  	
  10,000

  	
   

  
	
  Cfour Partners

  	
   

  	
  CS-54

  	
   

  	
  120,000

  	
   

  	
  120,000

  	
   

  
	
  Joe Shortal

  	
   

  	
  CS-62

  	
   

  	
  1,209,458

  	
   

  	
  1,209,458

  	
   

  
	
  Oscar Turner

  	
   

  	
  CS63

  	
   

  	
  36,438

  	
   

  	
  36,438

  	
   

  
	
  Vanessa Du

  	
   

  	
  C66

  	
   

  	
  81,600

  	
   

  	
  81,600

  	
   

  
	
  Country Club Auto Spa

  	
   

  	
  C64

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  
	
  Cfour Partners

  	
   

  	
  CS-57

  	
   

  	
  120,000

  	
   

  	
  120,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  CS-68

  	
   

  	
  500,000

  	
   

  	
  500,000

  	
   

  
	
  John Stamatis

  	
   

  	
  CS-67

  	
   

  	
  500,000

  	
   

  	
  500,000

  	
   

  
	
  John Stamatis

  	
   

  	
  SAP-01

  	
   

  	
  96,862

  	
   

  	
  96,862

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  SAP-02

  	
   

  	
  387,443

  	
   

  	
  387,443

  	
   

  
	
  John Stamatis

  	
   

  	
  SAP-03

  	
   

  	
  289,629

  	
   

  	
  289,629

  	
   

  
	
  Michael Episcope

  	
   

  	
  SAP-04

  	
   

  	
  386,074

  	
   

  	
  386,074

  	
   

  
	
  Michael Cohen & Pamela Cohen

  	
   

  	
  SAP-05

  	
   

  	
  308,860

  	
   

  	
  308,860

  	
   

  
	
  Michael Manderson & Kristine Manderson

  	
   

  	
  SAP-06

  	
   

  	
  384,214

  	
   

  	
  384,214

  	
   

  
	
  James P. Hinkamp

  	
   

  	
  SAP-07

  	
   

  	
  76,470

  	
   

  	
  76,470

  	
   

  
	
  Joel Leonard TTEE, Joel Leonard Trust

  	
   

  	
  SAP-08

  	
   

  	
  191,078

  	
   

  	
  191,078

  	
   

  
	
  Michael H. Crane

  	
   

  	
  SAP-09

  	
   

  	
  95,052

  	
   

  	
  95,052

  	
   

  
	
  Lisa Shumacher

  	
   

  	
  SAP-10

  	
   

  	
  95,052

  	
   

  	
  95,052

  	
   

  
	
  Wayne J. Friedman

  	
   

  	
  SAP-11

  	
   

  	
  95,052

  	
   

  	
  95,052

  	
   

  

 

 

	
  Name

  	
   

  	
  SUI Cert#

  	
   

  	
  Number of Sub-

  Urban Common

  Shares

  Exchanged

  	
   

  	
  Number of DP&D

  Common Shares to be

  Issued

  	
   

  
	
  Robert J. Winslow

  	
   

  	
  SAP-12

  	
   

  	
  95,052

  	
   

  	
  95,052

  	
   

  
	
  Kelly Walker

  	
   

  	
  SAP-13

  	
   

  	
  94,733

  	
   

  	
  94,733

  	
   

  
	
  Andrew Leszczynski

  	
   

  	
  SAP-14

  	
   

  	
  132,625

  	
   

  	
  132,625

  	
   

  
	
  Michael Shortal

  	
   

  	
  SAP-15

  	
   

  	
  131,667

  	
   

  	
  131,667

  	
   

  
	
  Total Common

  	
   

  	
   

  	
   

  	
  31,673,363

  	
   

  	
  31,673,363

  	
   

  

 

 

SCHEDULE OF SUB-URBAN CONVERTIBLE

PROMISSORY NOTES EXCHANGED FOR

DP&D CONVERTIBLE PROMISSORY NOTES

 

	
  Name of Convertible Note Holder

  	
   

  	
  Agreement date

  	
   

  	
  Face Amount of Convertible

  Promissory Notes Exchanged For

  Equal Face Amount Of DP&D

  Convertible Promissory Notes

  	
   

  
	
  Hazelton Corp

  	
   

  	
  04/21/04

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  HJG Investments

  	
   

  	
  05/11/04

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Lower East Investments

  	
   

  	
  06/01/04

  	
   

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  Andrew Leszczynski

  	
   

  	
  06/17/04

  	
   

  	
   

  	
  $

  	
  45,000

  	
   

  
	
  Lower East Investments

  	
   

  	
  06/23/04

  	
   

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  John Stamatis

  	
   

  	
  07/30/04

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  HJG Investments

  	
   

  	
  09/03/04

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Lower East Investments

  	
   

  	
  09/03/04

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Michael Shortal

  	
   

  	
  09/24/04

  	
   

  	
   

  	
  $

  	
  20,000

  	
   

  
	
  Out of Control

  	
   

  	
  10/28/04

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Out of Control

  	
   

  	
  11/05/04

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Maryam Seilabi

  	
   

  	
  02/24/05

  	
   

  	
   

  	
  $

  	
  5,300

  	
   

  
	
  Hazelton Corp

  	
   

  	
  03/09/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  ChicagoLand Consulting

  	
   

  	
  04/07/05

  	
   

  	
   

  	
  $

  	
  12,500

  	
   

  
	
  ITC Options, inc

  	
   

  	
  04/07/05

  	
   

  	
   

  	
  $

  	
  12,500

  	
   

  
	
  Sean Bruce

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Keith Lambert

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Michael Cohen

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Elizabeth Jackson

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Kelly Walker

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  12,500

  	
   

  
	
  Robert Windslow

  	
   

  	
  04/15/05

  	
   

  	
   

  	
  $

  	
  12,500

  	
   

  
	
  Alexandra Byrne

  	
   

  	
  04/27/05

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Brian Duffy

  	
   

  	
  04/28/05

  	
   

  	
   

  	
  $

  	
  65,000

  	
   

  
	
  Bill and Elaine Kouruklis

  	
   

  	
  05/27/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  John Stamatis

  	
   

  	
  06/30/05

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Mike Kapsch

  	
   

  	
  07/11/05

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Paul Birmingham

  	
   

  	
  08/01/05

  	
   

  	
   

  	
  $

  	
  20,000

  	
   

  
	
  Andrew Earl

  	
   

  	
  08/01/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Cris Deitz

  	
   

  	
  08/01/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Island Capital Ventures

  	
   

  	
  08/01/05

  	
   

  	
   

  	
  $

  	
  15,000

  	
   

  
	
  Cris Deitz

  	
   

  	
  09/16/05

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Nick Corasis

  	
   

  	
  09/19/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Laurent A. Cohen

  	
   

  	
  09/26/05

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Tiffany Stromeyer

  	
   

  	
  10/10/05

  	
   

  	
   

  	
  $

  	
  20,000

  	
   

  
	
  John Stamatis

  	
   

  	
  11/15/05

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  10/27/05

  	
   

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Michael Shortal

  	
   

  	
  01/23/06

  	
   

  	
   

  	
  $

  	
  3,600

  	
   

  
	
  Eli Russo

  	
   

  	
  02/10/06

  	
   

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Donald Wilson Trust 2002

  	
   

  	
  02/22/06

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Vision Capital

  	
   

  	
  04/06/06

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Vision Capital

  	
   

  	
  04/18/06

  	
   

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  Total Convertible Notes

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,734,900

  	
   

  

 

 

SCHEDULE OF SUB-URBAN COMMON STOCK

PURCHASE WARRANTS EXCHANGED FOR

DP&D COMMON STOCK PURCHASE WARRANTS

 

	
  Name of Warrant Holder

  	
   

  	
  Agreement date

  	
   

  	
  Number of Sub-Urban

  Warrants Exchanged For

  DP&D Warrants on a

  Warrant-For-Warrant Basis

  (Excluding Conversion

  Adjustments)

  	
   

  
	
  John Stamatis

  	
   

  	
  06/27/03

  	
   

  	
  26,700

  	
   

  
	
  Michael Kapsch

  	
   

  	
  06/27/03

  	
   

  	
  26,700

  	
   

  
	
  Michael and Pamela Cohen

  	
   

  	
  07/13/03

  	
   

  	
  21,360

  	
   

  
	
  Michael M. Manderson

  	
   

  	
  07/30/03

  	
   

  	
  26,700

  	
   

  
	
  MIchael Episcope

  	
   

  	
  08/03/03

  	
   

  	
  26,700

  	
   

  
	
  James P. Hinkup

  	
   

  	
  08/18/03

  	
   

  	
  5,340

  	
   

  
	
  Joel Leonard

  	
   

  	
  08/20/03

  	
   

  	
  13,350

  	
   

  
	
  Michael H. Crane

  	
   

  	
  09/01/03

  	
   

  	
  6,675

  	
   

  
	
  Wayne Friedman

  	
   

  	
  09/01/03

  	
   

  	
  6,675

  	
   

  
	
  Robert J. Winslow

  	
   

  	
  09/01/03

  	
   

  	
  6,675

  	
   

  
	
  Lisa A. Schumacher

  	
   

  	
  09/06/03

  	
   

  	
  6,675

  	
   

  
	
  Andrew Leszczynski

  	
   

  	
  09/19/03

  	
   

  	
  9,345

  	
   

  
	
  Michael Shortal

  	
   

  	
  10/20/03

  	
   

  	
  9,345

  	
   

  
	
  Kelly J. Walker

  	
   

  	
  09/04/03

  	
   

  	
  6,675

  	
   

  
	
  Foley

  	
   

  	
  06/30/04

  	
   

  	
  52,746

  	
   

  
	
  John Stamatis

  	
   

  	
  06/30/04

  	
   

  	
  52,746

  	
   

  
	
  Trandell

  	
   

  	
  06/30/04

  	
   

  	
  94,946

  	
   

  
	
  Sonnenshein

  	
   

  	
  06/30/04

  	
   

  	
  10,547

  	
   

  
	
  Igleman

  	
   

  	
  09/10/04

  	
   

  	
  133,742

  	
   

  
	
  Amos Varsha

  	
   

  	
  11/12/04

  	
   

  	
  100,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  11/12/04

  	
   

  	
  100,000

  	
   

  
	
  Steven Rosen

  	
   

  	
  11/19/04

  	
   

  	
  100,000

  	
   

  
	
  OfficeWorxx

  	
   

  	
  11/19/04

  	
   

  	
  100,000

  	
   

  
	
  MGAY, Inc.

  	
   

  	
  02/02/05

  	
   

  	
  200,000

  	
   

  
	
  Lower East Investments

  	
   

  	
  03/31/05

  	
   

  	
  200,000

  	
   

  
	
  John Stamatis

  	
   

  	
  06/30/05

  	
   

  	
  100,000

  	
   

  
	
  Mike Kapsch

  	
   

  	
  07/11/05

  	
   

  	
  100,000

  	
   

  
	
  Paul Birmingham

  	
   

  	
  08/02/05

  	
   

  	
  20,000

  	
   

  
	
  Andrew Earl

  	
   

  	
  08/02/05

  	
   

  	
  25,000

  	
   

  
	
  Chris Deitz

  	
   

  	
  08/02/05

  	
   

  	
  25,000

  	
   

  
	
  Island Capital

  	
   

  	
  08/10/05

  	
   

  	
  15,000

  	
   

  
	
  Chris Deitz

  	
   

  	
  09/16/05

  	
   

  	
  5,000

  	
   

  
	
  Nick Corasis

  	
   

  	
  09/21/05

  	
   

  	
  50,000

  	
   

  
	
  Laurent Cohen

  	
   

  	
  09/15/05

  	
   

  	
  25,000

  	
   

  
	
  Tiffany Ann Stromeyer

  	
   

  	
  10/10/05

  	
   

  	
  20,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  10/27/05

  	
   

  	
  300,000

  	
   

  
	
  Vista Capital

  	
   

  	
  10/27/05

  	
   

  	
  1,560

  	
   

  
	
  John Stamatis

  	
   

  	
  11/15/05

  	
   

  	
  350,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  11/15/05

  	
   

  	
  50,000

  	
   

  
	
  Brian Duffy

  	
   

  	
  12/30/05

  	
   

  	
  80,000

  	
   

  

 

 

	
  Name of Warrant Holder

  	
   

  	
  Agreement date

  	
   

  	
  Number of Sub-Urban

  Warrants Exchanged For

  DP&D Warrants on a

  Warrant-For-Warrant Basis

  (Excluding Conversion

  Adjustments)

  	
   

  
	
  Country Club Auto Spa, LLC

  	
   

  	
  12/31/05

  	
   

  	
  150,000

  	
   

  
	
  Trilogy

  	
   

  	
  01/15/06

  	
   

  	
  600,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  01/11/06

  	
   

  	
  50,000

  	
   

  
	
  John Stamatis

  	
   

  	
  01/14/06

  	
   

  	
  50,000

  	
   

  
	
  Michael Shortal

  	
   

  	
  01/23/06

  	
   

  	
  14,400

  	
   

  
	
  Pacific Tek

  	
   

  	
  02/10/06

  	
   

  	
  4,000

  	
   

  
	
  Donald Wilson Trust 2002

  	
   

  	
  02/22/06

  	
   

  	
  2,000,000

  	
   

  
	
  Michael E. Kapsch

  	
   

  	
  02/22/06

  	
   

  	
  500,000

  	
   

  
	
  John Stamatis

  	
   

  	
  02/22/06

  	
   

  	
  500,000

  	
   

  
	
  Donald Wilson Trust 2002

  	
   

  	
  04/11/06

  	
   

  	
  2,000,000

  	
   

  
	
  Vision Capital

  	
   

  	
  04/18/06

  	
   

  	
  3,000,000

  	
   

  
	
  Vision Capital

  	
   

  	
  04/18/06

  	
   

  	
  3,000,000

  	
   

  
	
  Vision Capital

  	
   

  	
  04/18/06

  	
   

  	
  1,500,000

  	
   

  
	
  Total Warrants Excluding Conversion
  Adjustments

  	
   

  	
   

  	
   

  	
  15,878,602

  	
   

  

 

 

SCHEDULE OF SUB-URBAN STOCK OPTIONS

EXCHANGED FOR DP&D STOCK OPTIONS

 

	
  Name of Stock Option Holder

  	
   

  	
  Agreement date

  	
   

  	
  Number of Sub-Urban

  Stock Options Exchanged

  For DP&D Stock Options

  on a Stock Option - For -Stock Option Basis

  	
   

  
	
  Trent Maclean

  	
   

  	
  09/17/03

  	
   

  	
  632,198

  	
   

  
	
  Caesarie Montana

  	
   

  	
  12/03/03

  	
   

  	
  53,400

  	
   

  
	
  Swirsky

  	
   

  	
  06/06/04

  	
   

  	
  160,200

  	
   

  
	
  Andrew Leszczynski

  	
   

  	
  07/30/04

  	
   

  	
  133,500

  	
   

  
	
  Meredith Feldman

  	
   

  	
  06/21/05

  	
   

  	
  3,000,000

  	
   

  
	
  Jack Mott

  	
   

  	
  10/21/05

  	
   

  	
  3,600,000

  	
   

  
	
  Caesarie Montana

  	
   

  	
  12/30/05

  	
   

  	
  53,400

  	
   

  
	
  Brad Riedell

  	
   

  	
  03/01/06

  	
   

  	
  100,000

  	
   

  
	
  Total Stock Options

  	
   

  	
   

  	
   

  	
  7,732,698

  	
   

  

 

EXHIBIT 1.2

SUBSCRIPTION AGREEMENT

 

In connection with my
exchange of (i) no par value common stock of Sub-Urban Industries, Inc. (“Sub-Urban”),
for the $.001 par value common stock of DP&D, Inc. (“DP&D”), (ii)
convertible promissory notes of Sub-Urban for convertible promissory notes of
DP&D, (iii) common stock purchase warrants of Sub-Urban for common stock
purchase warrants of DP&D and (iv) stock options of Sub-Urban for stock
options of DP&D (collectively as to DP&D, the “DP&D Securities”)
pursuant to the Agreement Concerning The Exchange Of Securities By And Among
DP&D, Inc. And Sub-Urban Industries, Inc. And The Security Holders Of
Sub-Urban Industries, Inc. (the “Exchange Agreement”), I acknowledge the
matters set forth below and promise that the statements made herein are true. I
understand that DP&D is relying on my truthfulness in issuing the DP&D
Securities to me.

 

I hereby represent to
DP&D that I am an “accredited investor” as that term is defined under the
Securities Act of 1933 (the “Act”) and Regulation D, Rule 501, promulgated
thereunder. I further represent to DP&D that I have the full power and
authority to execute, deliver and perform this Subscription Agreement and to
consummate the transactions contemplated hereby. This Subscription Agreement is
a legal, valid and binding obligation of mine, enforceable against me in
accordance with its terms. I own the securities in Sub-Urban that I am
exchanging for the DP&D Securities free and clear of all pledges, liens,
encumbrances, security interests, equities, claims, options, preemptive rights,
rights of first refusal, or any other limitation on my ability to vote the
DP&D Securities or to transfer the DP&D Securities. I have full right,
title and interest in and to the Sub-Urban securities that I am exchanging.

 

I understand that the
DP&D Securities are being issued to me in a private transaction in exchange
for my securities in Sub-Urban and in reliance upon the exemption provided in
Section 4(2) and/or Regulation D under the Act for non-public offerings and
pursuant to the Exchange Agreement. I understand that the DP&D Securities
are “restricted” under applicable securities laws and may not be sold by me
except in a registered offering (which may not ever occur) or in a private
transaction like this one. I know this is an illiquid investment and that
therefore I may be required to hold the DP&D Securities for an indefinite
period of time, but under no circumstances less than one year from the date of
their issuance.

 

I am acquiring the DP&D
Securities solely for my own account, for long-term investment purposes only
and not with a view to sale or other distribution. I agree not to dispose of
any DP&D Securities unless and until counsel for DP&D shall have
determined that the intended disposition is permissible and does not violate
the Act, any applicable state securities laws or rules and regulations
promulgated thereunder.

 

All information, financial
and otherwise, or documentation pertaining to all aspects of my acquisition of
the DP&D Securities and the activities and financial information of
DP&D have been made available to me and my representatives, if any, and I
have had ample opportunity to

 

 

meet
with and ask questions of senior officers of DP&D, and I have received
satisfactory answers to any questions I asked.

 

In acquiring the DP&D
Securities, I have been afforded access to the Exchange Agreement and all of
the public filings of DP&D made with the Securities and Exchange Commission
and have made such independent investigations of DP&D as I deemed
appropriate. I am an experienced investor, have made speculative investments in
the past and am capable of analyzing the merits of an investment in the
DP&D Securities.

 

I understand that the
DP&D Securities are highly speculative, involve a great degree of risk and
should only be acquired by individuals who can afford to lose their entire
investment. Nevertheless, I consider this a suitable investment for me because
I have adequate financial resources and income to maintain my current standard
of living even after my acquisition of the DP&D Securities. I know that
DP&D currently has no assets or liabilities, and that although I could lose
my entire investment, I am acquiring the DP&D Securities because I believe
the potential rewards are commensurate with the risk. Even if the DP&D
Securities became worthless, I could still maintain my standard of living
without significant hardship to me or my family.

 

By signing this Subscription
Agreement, I also accept and agree to be bound by and to abide by the terms and
conditions of the Exchange Agreement as if I had executed the Exchange
Agreement itself.

 

Dated as of this                   
day of                                    
, 2006.

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name, Please Print

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Residence Address

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  City, State and Zip Code

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Area Code and Telephone
  Number

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Sub-Urban Shares
  Exchanged

  

 

 

	
   

  	
   

  
	
   

  	
  Face Amount of Sub-Urban
  Convertible

  
	
   

  	
  Promissory Notes Exchanged

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Sub-Urban Warrants
  Exchanged

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Sub-Urban Stock
  Options Exchanged

  

 

 

Exhibit

Material Contracts

Section 2.17

 

Lease for Premises: 
Sub-Urban entered into a lease with Magnum Properties for its offices on
on July 15, 2004 and the lease expires July 15, 2006. The base rent on the
lease commenced at $2,500 per month, and with cost of living increases and
other fees is approximately $3,000 per month.

 

Production:  Sub-Urban has
entered into production arrangements for the manufactiure of its apparel. These
arrangements are evidenced by purchase orders. As of April 20, 2006, Sub-Urban
has issued purchase orders in excess of $10,000 to the following vendors:

 

	
  Rippin and
  Running, Los Angeles, CA

  	
   

  	
  $

  	
  68,000

  	
   

  
	
  Trio Group,
  Montreal, Canada

  	
   

  	
  $

  	
  73,500

  	
   

  

 

Marketing:  Sub-Urban has a
monthly contract with Caro Marketing, Los Angeles, CA for a monthly retainer of
$5,000, plus expenses. Caro provides public relations and marketing services. This
contract is cancelable with 30 day notice. Sub-Urban has a promotions conract
with MS Communications, NY, NY for promotions on their New York Hot’97 radio
station. The remaining commitment on this contract is $75,000.

 

Distribution:  Sub-Urban has a
month-to-month, cancellable arrangement with JAM, Gardena, CA for distribution,
storage, pick-pack-and ship.

 

 

Exhibit

 

Exception
Schedule for Sub-Urban

 

2.2 The stock option grant to Jack Mott has an anti-dilution clause
triggered by an excess of 60,000,000 fully diluted shares.

 

2.4  John Koufis, David Howitt
and Kenard Gibbs are slated to be members of the Board of Directors when the
Sub-Urban obtains Directors and Officers liability insurance, scheduled to be
concurrent with the closing date of this Agreement. Jack Mott is currently a
consultant to Sub-Urban and wiull assume the duties of Chief Financial Officer
and Chief Operating Officer, and a member of the Board of Directors when the
Sub-Urban obtains Directors and Officers liability insurance, scheduled to be
concurrent with the closing date of this Agreement.

 

2.6 Absence of Changes:  Since
March 31st, 2006, Sub-Urban has entered into a secured convertible
note financing arrangement with Vision Capital in the amount of $750,000, and
in connection with this financing issued i) a warrant for the purchase of
3,000,000 shares at a price of $0.25 ii) a unit purchase warrant consisting of
a right o purchase 3,000,000 shares of Sub-Urban common stock at at a price of
$0.25 per share by January 18, 2007, plus a 3 year warrant for the purchase of
1,500,000 shares of common stock at an exercise price of $0.50 per share. In
connection with a prior financing, Sub Urban also issued a warrant for the
purchase of 2,000,000 shares of common stock at an exercise price of $0.25 per
share. Estimated sales for the period April 1, 2006 to the effective date of
this agreement are approximately $9,500. Sub-Urban is in leased premises and
the lease expires July 15, 2006. Sub-Urban anticipates it will relocate its
offices to an area within Los Angeles county by July 15, 2006.

 

2.8  Sub-Urban has filed its 2003
Federal and State tax returns, and has filed extensions for its 2004 and 2005
Federal and sState tax returns. Based on the audited financial statements
received by Sub-Urban in April 2006 for the years 2003, 2004 and 2005,
Sub-Urban will file its Federal and State tax returns by September 15, 2006 and
may be required to file an amended Federal and State tax return for 2003. Sub-Urban
has net operating losses for the years 2003, 2004 and 2005 and does not
anticipate any material tax liability for these years.

 

4.2 Conduct of business: 
Sub-Urban may make commitments for up to an additional $600,000 of
operating capital prior to the closing date of this Agreement. It may do so
under similar financing arrangements as its recent financings including a convertible
secured note, convertible into common stock at $0.25 per share, and 100%
warrant coverage at an exercise price of $0.25 per share, plus a unit purchase
warrant.

 

 

Exhibit

List of Sub-Urban Intellectual Property

Section 2.10

 

 

 

	
  Matter No.

  Country

  	
   

  	
  Mark

  	
   

  	
  Class(es)

  	
   

  	
  Goods/Services

  	
   

  	
  Serial
  No.

  Filing Date

  	
   

  	
  Reg. No.

  Reg.

  Date

  	
   

  	
  Use
  &

  Renewal

  Deadline

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T001

  

  United States

  	
   

  	
  WHITEBOY

  	
   

  	
  25

  	
   

  	
  Shirts, hats, and pants

  	
   

  	
  78/093,948

  

  11/17/01

  	
   

  	
  2,833,040

  

  04/13/04

  	
   

  	
  Use Due:

  

  4/13/10

  

  Renewal

  Due:

  

  4/13/14

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T003

  

  United States

  	
   

  	
  WHITE

  DEVIL

  	
   

  	
  25

  	
   

  	
  Clothing, namely, shirts, pants, t-shirts, footwear,
  headwear, baseball caps, shorts, swimwear, lingerie, sweat shirts, underwear,
  jackets, dresses, and skirts

  	
   

  	
  76/451,609

  

  09/23/02

  	
   

  	
  2,935,357

  

  3/22/05

  	
   

  	
  Use Due:

  

  3/22/11

  

  Renewal

  Due:

  

  3/22/15

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T006

  

  United States

  	
   

  	
  BLACK

  JESUS

  	
   

  	
  25

  	
   

  	
  Clothing, namely, shirts, pants, T-shirts, footwear,
  headwear, baseball caps, shorts, swimwear, lingerie, sweat shirts, underwear,
  jackets, dresses, and skirts

  	
   

  	
  76/479,408

  

  12/31/02

  	
   

  	
  2,900,384

  

  11/02/04

  	
   

  	
  Use Due:

  

  11/02/10

  

  Renewal

  Due:

  

  11/02/14

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T007

  	
   

  	
  WHITEGIRL

  	
   

  	
  25

  	
   

  	
  Shirts, hats and pants

  	
   

  	
  78/094,289 

  	
   

  	
  2,754,411 

  	
   

  	
  Use Due: 

  	
   

  	
  Registered.

  

 

 

	
  Matter No.

  Country

  	
   

  	
  Mark

  	
   

  	
  Class(es)

  	
   

  	
  Goods/Services

  	
   

  	
  Serial
  No.

  Filing Date

  	
   

  	
  Reg. No.

  Reg.

  Date

  	
   

  	
  Use
  &

  Renewal

  Deadline

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11/20/01

  	
   

  	
  8/19/03

  	
   

  	
  8/19/09

  

  Renewal

  Due:

  8/19/13

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T008

  

  United States

  	
   

  	
  WHITEBOY

  RECORDS

  	
   

  	
  9

  

  

  

  

  

  

  

  41

  	
   

  	
  Musical sound recordings and audio-visual
  recordings, namely, compact discs, tape cassettes, records, CD-ROMs, VHS
  video tapes, DVD and laser discs

  

  Entertainment services, namely, video tape and motion picture film production,
  music publishing services, production of musical audio and video recordings

  	
   

  	
  76/507,784

  

  4/21/03

  	
   

  	
  3,021,412

  

  11/29/05

  	
   

  	
  Use Due:

  11/29/11

  

  Renewal

  Due:

  11/29/15

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T009

  

  United States

  	
   

  	
  WHITEBOY

  	
   

  	
  9

  	
   

  	
  Musical sound recordings and audio-visual
  recordings, namely, compact discs, tape cassettes, records, CD-ROMs, VHS
  video tapes, DVD, and laser discs; computer software and programs all being
  computer games; video game software; laser discs cartridges, audio and video
  tapes, audio and video cassettes and CD-ROMs all bearing video games; video
  game computer software adapted for use with television receivers and
  computers

  	
   

  	
  76/507,785

  

  4/21/03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A Request for the First
  Extension of Time to File a Statement of Use has been granted.

  

  Statement of Use and/or
  Second Request for Extension of Time due by 5/24/06.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T011

  

  United States

  	
   

  	
  WHITEBOY

  	
   

  	
  28

  	
   

  	
  Snow boards and parts therefor; skateboards and
  parts therefor; surfboards and parts therefor; toys, namely, toy vehicles,
  plush toy dolls and plush toy animals, toy action figures, board games, water
  squirting toys, flying disks

  	
   

  	
  76/507,783

  

  4/21/03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A Request for the First
  Extension of Time to File a Statement of Use has been granted.

  

  Statement of Use and/or
  Second

  

 

 

	
  Matter No.

  Country

  	
   

  	
  Mark

  	
   

  	
  Class(es)

  	
   

  	
  Goods/Services

  	
   

  	
  Serial
  No.

  Filing Date

  	
   

  	
  Reg. No.

  Reg.

  Date

  	
   

  	
  Use
  &

  Renewal

  Deadline

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Request for Extension of Time
  due by 5/17/06.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T013

  

  United States

  	
   

  	
  WHITEBOY

  	
   

  	
  14

  	
   

  	
  Jewelry; belt buckles of precious metals for
  clothing

  	
   

  	
  76/511,641

  

  5/05/03

  	
   

  	
  3,059,283

  

  2/14/06

  	
   

  	
  Use:

  2/14/12

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Renewal:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  16

  	
   

  	
  Stickers, bumper stickers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2/14/16

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  18

  	
   

  	
  All-purpose sport bags; tote bags; luggage bags;
  backpacks; shoulder bags

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  25

  	
   

  	
  Clothing, namely, shirts, pants, t-shirts, footwear,
  headwear, baseball caps, shorts, swimwear, lingerie, sweatshirts, underwear,
  jackets, dresses, and skirts; clothing accessories, namely, belts, shoes, and
  gloves

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  26

  	
   

  	
  Ornamental cloth patches; belt buckles not of
  precious metal for clothing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T018

  

  United States

  	
   

  	
  ROOSTER

  LOGO

  DESIGN

  

  	
   

  	
  25

  	
   

  	
  Clothing, namely, shirts, pants, t-shirts, footwear,
  headwear, baseball caps, shorts, swimwear, lingerie, sweatshirts, underwear,
  jackets, dresses, skirts, belts, shoes, and gloves

  	
   

  	
  76/523,979

  

  6/19/03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Opposition No. 91163875 v. M. Aaron Corp.

  

  Opposition pending at the Trademark Trial and Appeal Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T019

  	
   

  	
  ROOSTER

  	
   

  	
  28

  	
   

  	
  Snow boards and parts therefor; skateboards and

  	
   

  	
  76/523,980 

  	
   

  	
  3,013,607 

  	
   

  	
  Use: 

  	
   

  	
  Registered.

  

 

 

	
  Matter No.

  Country

  	
   

  	
  Mark

  	
   

  	
  Class(es)

  	
   

  	
  Goods/Services

  	
   

  	
  Serial
  No.

  Filing Date

  	
   

  	
  Reg. No.

  Reg.

  Date

  	
   

  	
  Use
  &

  Renewal

  Deadline

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  LOGO

  DESIGN

  

  	
   

  	
   

  	
   

  	
  parts therefor; surf boards and parts therefor;
  toys, namely, toy vehicles, plush toy dolls and plush toy animals, toy action
  figures, board games, water squirting toys, flying disks, arcade-type
  electronic video games

  	
   

  	
  6/19/03

  	
   

  	
  11/8/05

  	
   

  	
  11/8/11

  

  Renewal:

  11/8/15

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T020

  

  United States

  	
   

  	
  ROOSTER

  LOGO

  DESIGN

  

  	
   

  	
  9

  	
   

  	
  Musical sound recordings and audio-visual
  recordings, namely, compact discs, tape cassettes, records CD-ROMs, VHS video
  tapes, DVD, and laser discs; computer software and programs all being
  computer games; video game software; laser discs cartridges, audio and video
  tapes, audio and video cassettes and CD-ROMs all bearing video games; video
  game computer software adapted for use with television receivers and
  computers

  	
   

  	
  76/523,978

  

  6/19/03

  	
   

  	
  2,985,855

  

  8/16/05

  	
   

  	
  Use:

  8/16/11

  

  Renewal: 8/16/15

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T025

  

  United States

  	
   

  	
  PYT

  	
   

  	
  25

  	
   

  	
  Clothing, namely, shirts, pants, T-shirts, footwear,
  headwear, baseball caps, shorts, swimwear, lingerie, sweat shirts, underwear,
  jackets, dresses, and skirts; accessories; belts; buckles; jewelry; shoes;
  patches; stickers, bags, tote bags, gloves

  	
   

  	
  76/559,174

  

  11/10/03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A Request for the First
  Extension of Time to File a Statement of Use has been granted.

  

  Statement of Use and/or
  Second Request for Extension of Time due by 5/24/06.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T013AU25

  

  Australia

  	
   

  	
  WHITEBOY

  	
   

  	
  25

  	
   

  	
  Clothing, including shirts, pants, t-shirts,
  footwear, headwear, baseball caps, shorts, swimwear, lingerie, sweatshirts,
  underwear, jackets, dresses, skirts, and accessories, namely, scarves

  	
   

  	
  954626

  

  5/20/03

  	
   

  	
  954626

  

  2/23/04

  	
   

  	
  

  Renewal:

  

  5/20/13

  	
   

  	
  Registered.

  

 

 

	
  Matter No.

  Country

  	
   

  	
  Mark

  	
   

  	
  Class(es)

  	
   

  	
  Goods/Services

  	
   

  	
  Serial
  No.

  Filing Date

  	
   

  	
  Reg. No.

  Reg.

  Date

  	
   

  	
  Use
  &

  Renewal

  Deadline

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T013CA

  

  Canada

  	
   

  	
  WHITEBOY

  	
   

  	
  25

  	
   

  	
  Clothing, including shirts, pants, t-shirts,
  footwear, namely, socks, shoes; headwear, namely, hats, baseball caps;
  shorts, swimwear, lingerie, sweatshirts, underwear, jackets, dresses, skirts,
  and accessories, namely, scarves; and ornamental cloth patches

  	
   

  	
  1182379

  

  06/23/03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pending.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T013CTM

  

  European Community (CTM)

  	
   

  	
  WHITEBOY

  	
   

  	
  25

  	
   

  	
  Clothing; shirts, pants,

  t-shirts, footwear, headwear, baseball caps, shorts, swimwear, lingerie,
  sweat shirts, underwear, jackets, dresses, skirts and accessories

  	
   

  	
  3155181

  

  5/03/03

  	
   

  	
  3155181

  

  2/22/05

  	
   

  	
  

  Renewal:

  5/3/13

  	
   

  	
  Registered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T013JP25

  

  Japan

  	
   

  	
  WHITEBOY

  	
   

  	
  25

  	
   

  	
  Clothing; accessories; belts; buckles; jewelry;
  shoes; patches; stickers, bags, tote bags, gloves

  	
   

  	
  2003-

  047829

  

  6/10/03

  	
   

  	
  4750076

  

  2/20/04

  	
   

  	
  2/20/14

  	
   

  	
  Registered.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]