Document:

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                                                                   Exhibit 10.13

                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

      THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (together with the exhibits
and schedules hereto, this "AGREEMENT") is entered into as of August __, 2004
(the "EFFECTIVE DATE") by and among MERCED PARTNERS LIMITED PARTNERSHIP, a
Delaware limited partnership ("MERCED"), Michael Phegley, an individual
("PHEGLEY"), Craig Foster, an individual ("FOSTER" and, together with Merced and
Phegley, "SELLERS"), and NORTH AMERICA CAPITAL HOLDING COMPANY, a Delaware
corporation ("BUYER"). Unless otherwise defined in this Agreement, capitalized
terms used in this Agreement are defined in EXHIBIT "A".

                                    RECITALS

      A. Sellers own 100% of the equity (the "MEMBERSHIP INTERESTS") of General
Aviation Holdings, LLC, a Delaware limited liability Company (the "COMPANY").
The Company owns 100% of the equity (the "FBO INTERESTS") of each of (i) Palm
Springs FBO Two LLC, a Delaware limited liability company doing business as
Million Air Palm Springs ("PSP"), and (ii) Newport FBO Two LLC, a Delaware
limited liability company doing business as Newport Jet Center ("NJC" and,
together with PSP, the "FBOS").

      B. The Company is a holding company whose sole assets are comprised of the
FBO Interests and 100% of the equity of La Quinta FBO Two LLC, a Delaware
limited liability company doing business as Million Air La Quinta ("LQA"), which
equity the Company will transfer before Closing. PSP is comprised of a fixed
base operation at Palm Springs International Airport located in Palm Springs,
California (the "PSP FACILITY"); NJC is comprised of a fixed base operation at
John Wayne Airport located in Santa Ana, California (the "NJC FACILITY" and,
together with the PSP Facility, the "FACILITIES"). The business operations
relating to the Facilities are hereinafter referred to as the "BUSINESSES".

      C. Buyer desires to acquire from Sellers, and Sellers desire to sell and
transfer to Buyer, all of the Membership Interests on the terms and subject to
the conditions set forth herein.

                                    AGREEMENT

      THEREFORE, in consideration of the foregoing and the mutual agreements and
covenants set forth below, the Parties hereby agree as follows:

                                   ARTICLE 1

                    PURCHASE AND SALE OF MEMBERSHIP INTERESTS

      1.1 Acquisition. Subject to the terms and conditions of this Agreement,
Buyer agrees to purchase, and Sellers agree to sell, convey, assign, transfer
and deliver to Buyer, the Membership Interests, free and clear of all
Encumbrances, on the Closing Date.
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      1.2 Assignment of Membership Interests. The sale and transfer of the
Membership Interests will be effected by delivery by Sellers to Buyer of an
Assignment of Limited Liability Company Membership Interests in the form
attached hereto as EXHIBIT "B".

                                   ARTICLE 2

                                 PURCHASE PRICE

      2.1 Purchase Price. The aggregate amount to be paid by the Buyer at the
Closing in consideration for the Membership Interests shall be Forty Eight
Million Five Hundred Thousand Dollars ($48,500,000.00) (the "PURCHASE PRICE").

      2.2 Transfer Taxes. All transfer, registration, stamp, documentary,
recording and similar taxes, if any, that become due and payable as a result of
the consummation of the transactions set forth in this Agreement shall be paid
one-half by the Buyer and one-half by the Sellers; provided, that, any such
taxes that become due and payable as a result of the sale, transfer or
disposition of LQA shall be paid by the Sellers, and Buyer shall have no
liability or obligation therefor.

      2.3 Purchase Price Adjustments.

            (a) As used herein, the term "Net Working Capital" shall mean the
      aggregate current assets of the FBOs minus the aggregate current
      liabilities of the FBOs, all as determined in accordance with generally
      accepted accounting principles, consistent with past practice and all as
      determined as of the Effective Time and taking into account such
      adjustments as customary for a working capital adjustment.

            (b) The Sellers' Representative and the Buyer shall use commercially
      reasonable efforts to mutually agree upon (i) the amount of the Base Net
      Working Capital against which the Net Working Capital of the FBOs as of
      the Effective Time will be measured to determine any adjustment to the
      Purchase Price, and (ii) the principles, specifications and methodologies
      for determining Net Working Capital and Base Net Working Capital, on or
      before August 20, 2004. The parties acknowledge and agree that the Base
      Net Working Capital will be determined by reference to the historical net
      working capital of the FBOs since January 1, 2003; provided, that, the
      amount of cash used for purposes of setting the Base Net Working Capital
      amount shall be $75,000. In the event that the Parties cannot mutually
      agree on the amount of the Base Net Working Capital or the principles,
      specifications and methodologies for determining Net Working Capital and
      Base Net Working Capital, on or before August 20, 2004, then neither the
      Buyer nor the Sellers shall be obligated to consummate the Closing and
      this Agreement shall automatically terminate.

            (c) At least ten (10) business days prior to Closing, Sellers shall
      deliver to Buyer a reasonable estimate of Net Working Capital as of the
      Effective Time based on a balance sheet as of the last day of the most
      recently ended calendar month prior to the Closing Date and containing
      reasonable detail and supporting documents showing the derivation of such
      estimate, including a projected balance sheet as of the Effective Time

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      (the "CLOSING BALANCE SHEET"). The consideration paid by Buyer to the
      Sellers at the Closing shall be (x) increased by the excess, if any, of
      Net Working Capital as of the Effective Time over Base Net Working
      Capital, or (y) decreased by the shortfall, if any, of Net Working Capital
      as of the Effective Time from Base Net Working Capital, in either case as
      reasonably agreed to by Buyer and the Sellers' Representative on or prior
      to the Closing Date.

            (d) Within ninety (90) days after the Closing, Buyer shall deliver
      to the Sellers' Representative its determination of the actual Net Working
      Capital as of the Effective Time (following the same principles,
      specifications and methodologies used to determine the estimated Net
      Working Capital and Base Net Working Capital as agreed upon pursuant to
      Section 2.3(b)). Each party shall have full access to the financial books
      and records pertaining to the FBOs to confirm or audit the Net Working
      Capital computations. Should the Sellers' Representative disagree with
      Buyer's determination of Net Working Capital, the Sellers' Representative
      shall notify Buyer within thirty (30) days after Buyer's delivery of its
      determination of Net Working Capital. If the Sellers' Representative and
      Buyer fail to agree within thirty (30) days after Sellers'
      Representative's delivery of notice of disagreement on the amount of Net
      Working Capital, such disagreement shall be resolved in accordance with
      the procedure set forth in Section 2.3(f) which shall be the sole and
      exclusive remedy for resolving such accounting disputes relative to the
      determination of Net Working Capital.

            (e) If the actual Net Working Capital as of the Effective Time
      (determined pursuant to Section 2.3(d)) exceeds the estimated Net Working
      Capital as of such time (determined pursuant to Section 2.3(c) hereof),
      then Buyer shall, within fourteen (14) days pay such difference in cash to
      the Sellers' Representative, and the Sellers' Representative shall
      distribute the same to the Sellers in proportion to their ownership
      interests in the Company. If the actual Net Working Capital as of the
      Effective Time (determined pursuant to Section 2.3(d)) is less than the
      estimated Net Working Capital as of such time (determined pursuant to
      Section 2.3(c) hereof), then the Sellers shall, within fourteen (14) days,
      pay such difference in cash to Buyer.

            (f) In the event that the Sellers' Representative and Buyer are not
      able to agree on the actual Net Working Capital as of the Effective Time
      within thirty (30) days after the Sellers' Representative's delivery of
      notice of disagreement, the Sellers' Representative and Buyer shall each
      have the right to require that such disputed determination be submitted to
      an independent certified public accounting firm as the Sellers'
      Representative and Buyer may then mutually agree upon in writing (the
      "ACCOUNTING FIRM") for computation or verification in accordance with the
      provisions of this Agreement. The Accounting Firm shall review the matters
      in dispute and acting as arbitrators shall promptly decide the proper
      amounts of such disputed entries (which decision shall also include a
      final calculation of the actual Net Working Capital as of the Effective
      Time). The submission of the disputed matter to the Accounting Firm shall
      be the exclusive remedy for resolving accounting disputes relative to the
      determination of Net Working Capital. The Accounting Firm's determination
      shall be binding upon the Sellers, the Sellers' Representative and Buyer.
      The Accounting Firm's fees and expenses shall be borne equally by the
      Sellers and Buyer.

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                                   ARTICLE 3

                     SELLERS' REPRESENTATIONS AND WARRANTIES

      For the purposes of this Agreement, the phrase "TO THE BEST OF SELLERS'
KNOWLEDGE" shall mean the actual knowledge of Affeldt, Phegley, Foster, Sandra
Zarate, Christina Stine, Karin L. Davidson and Yvonne Kassler and shall be
deemed to exist with respect to a particular matter if a prudent individual
would be expected to discover or otherwise become aware of it after reasonable
inquiry. Subject to the foregoing and as an inducement to Buyer to enter into
this Agreement, Sellers represent and warrant to Buyer that:

      3.1 Organization. Merced is a limited partnership duly organized or
formed, validly existing and in good standing under the Laws of Delaware. The
Company and the FBOs are each limited liability companies duly organized,
validly existing and in good standing under the Laws of Delaware. Neither of the
FBOs has any Subsidiaries or owns any equity interest in any other entity. The
Company and each FBO is qualified to do business as a foreign corporation in the
State of California and each is in good standing in the State of California. The
State of California is the only jurisdiction where the Company's and the FBOs'
respective activities, personnel and properties require such qualification or
licensing. Sellers have provided to Buyer complete and correct copies of the
Charter Documents for the Company and the FBOs as currently in effect.

      3.2 Power and Authority. Sellers have full power and authority to own the
Membership Interests, to execute and deliver this Agreement and the Transaction
Documents and to perform their respective obligations hereunder and thereunder.
The FBOs have all requisite power and authority to own and operate the
Businesses as conducted as of the date hereof, and to own, operate and lease the
properties and assets owned, operated or leased by the FBOs and used in the
Businesses.

      3.3 Authorization; No Breach. The execution, delivery and performance of
this Agreement has been, and the execution, delivery and performance of the
Transaction Documents as of the Closing will have been, duly and validly
authorized by Sellers, and this Agreement constitutes, and each of the
Transaction Documents as of the Closing will constitute, a valid and binding
obligation of Sellers, enforceable against Sellers in accordance with their
respective terms (except as may be limited by bankruptcy, insolvency,
reorganization and other similar laws and equitable principles relating to or
limiting creditors' rights generally). The execution, delivery and performance
of this Agreement and the Transaction Documents by Sellers, and the consummation
of the transactions hereunder and thereunder, will not (a) violate, conflict
with, result in a breach or constitute a default, or give rise to any right of
amendment, termination, cancellation or acceleration, under (with or without due
notice or lapse of time, or both) Merced's, the Company's or the FBOs'
respective Charter Documents, or, to the best of Sellers' knowledge, any Law to
which Sellers, the Company or the FBOs are subject or, except as set forth on
SCHEDULE 3.3(A), any agreement to which the Company or the FBOs are party or
otherwise bound (including the Material Contracts), (b) except as set forth on
SCHEDULE 3.3(B), result in or give to any person any right of termination or
cancellation in or with respect to any Permit, or (c) except as set forth on
SCHEDULE 3.3(C), require or potentially require any

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authorization, consent or approval of, or action or filing with, any person,
business organization, entity or any court or other governmental body.

      3.4 Absence of Undisclosed Liabilities.

            (a) Other than as disclosed on the Liabilities Schedule, SCHEDULE
      3.4(A), neither the Company nor the FBOs have any liabilities or
      obligations of any nature, whether accrued or absolute, contingent or
      otherwise, and whether due or to become due, except (i) liabilities and
      obligations under contracts described on the Leases Schedule and the
      Contracts Schedule (other than through any breach or default by the
      Company or either of the FBOs), (ii) liabilities and obligations reflected
      in the Unaudited Statements, and (iii) liabilities and obligations of the
      Company and the FBOs which have arisen after June 30, 2004 in the ordinary
      course of business, consistent with past practices (other than through any
      breach or default by the Company or either of the FBOs).

            (b) Except as set forth on SCHEDULE 3.4(B), neither the Company nor
      either of the FBOs has any Funded Indebtedness. As of the Closing Date and
      upon payment of the Member Debt at Closing, neither the Company nor either
      of the FBOs will owe money to another party pursuant to a loan agreement
      or promissory note or otherwise have any Funded Indebtedness.

            (c) Except for the FBO Interests, the membership interests in LQA
      and cash balances held in accounts, the Company does not have any other
      assets or operate any other businesses.

      3.5 Capitalization of the Company and the FBOs; Title to Membership
Interests and FBO Interests.

            (a) Sellers are the unconditional and sole legal, beneficial, record
      and equitable owners of the Membership Interests, and each has full power
      and authority to sell and transfer the Membership Interests free and clear
      of all Encumbrances. SCHEDULE 3.5 lists the name of each Seller and the
      percentage of the Membership Interests each Seller owns of record. The
      Company is the unconditional and sole legal, beneficial, record and
      equitable owner of the FBO Interests, free and clear of all Encumbrances.

            (b) The Membership Interests constitute all of the issued and
      outstanding equity in the Company. The FBO Interests constitute all of the
      issued and outstanding equity in the FBOs. All such Membership Interests
      and FBO Interests are duly authorized, validly issued, fully paid and
      non-assessable and were issued in conformity with applicable Laws.

            (c) There are no outstanding warrants, options, rights, other
      securities, agreements, subscriptions, or other commitments, arrangements
      or undertakings pursuant to which Sellers, the Company, either of the FBOs
      or any other person is or may become obligated to issue, deliver or sell,
      or cause to be issued, delivered or sold, any additional membership
      interests or other securities of the Company or either of the FBOs.

                                       5
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      3.6 Financial Statements. The Company has delivered to Buyer, or, in the
case of the Interim Unaudited Statements, will deliver to Buyer prior to
Closing, correct and complete copies of (a) consolidated audited financial
statements with respect to the Company and the Businesses prepared by Ernst &
Young for the year ended December 31, 2003 (the "AUDITED 2003 STATEMENTS"), (b)
audited financial statements for the Company and PSP prepared by Ernst & Young
for the four-and-one-half month period ended December 31, 2002 (the "AUDITED
2002 STATEMENTS"), and (c) unaudited statements of income and cash flow for the
Company and each of the FBOs for the six-month period ending June 30, 2004 (the
"UNAUDITED STATEMENTS") and each month-end that occurs prior to the Closing Date
(the "INTERIM UNAUDITED STATEMENTS" and collectively with the Audited 2003
Statements, the Audited 2002 Statements and the Unaudited Statements, the
"Financial Statements"). The Financial Statements have been (and, with respect
to the Interim Unaudited Statements, will be) prepared in accordance with the
books and records of the Company and the FBOs and generally accepted accounting
principles consistently applied throughout the periods involved, and fairly
present the financial condition and results of operation of the Company and the
Businesses as of such balance sheet date or the period then ending, as the case
may be; provided, however, the Sellers make no representations or warranties
with respect to information contained in the Financial Statements that pertain
to any period of time prior to (x) August 15, 2002, with respect to PSP and (y)
December 19, 2002, with respect to NJC. True, correct and complete copies of the
Audited 2003 Statements, Audited 2002 Statements and Unaudited Statements are
attached to SCHEDULE 3.6 hereto. Except as set forth on SCHEDULE 3.6, each of
the FBOs' accounts receivable arose, and all accounts receivable that will be
outstanding as of the Closing Date shall have arisen, from bona fide
transactions in the ordinary course of business. The reserves for accounts
receivables set forth in the Financial Statements have been established
consistently with the Company's and the FBOs' historical accounting practices.
SCHEDULE 3.6 includes an accurate list, as of a date not more than five (5)
business days prior to the date hereof, of each FBO's accounts receivable,
showing amounts due in 30-day aging categories.

      3.7 No Material Adverse Changes; Absence of Certain Changes or Events.
Since December 31, 2003, except as set forth in SCHEDULE 3.7 or as contemplated
or permitted hereunder, (i) there has not been any Material Adverse Change, (ii)
the Businesses have only been operated in the ordinary course, consistent with
past practices, and (iii) there has not been, with respect to the Company or the
FBOs, any:

            (a) sale, assignment or transfer, other than in the ordinary course
      of business and consistent with past practice, of any assets of the
      Company or the FBOs;

            (b) acquisition by merger, consolidation with, purchase of
      substantially all of the assets or capital stock of, or, other than in the
      ordinary course of business and consistent with past practice, any other
      acquisition of any material assets of, any corporation, partnership,
      association or other business organization or division thereof;

            (c) change in accounting methods or accounting practices by the
      Company or the FBOs;

            (d) termination or, other than in the ordinary course of business
      and consistent with past practice, entry into, or amendment or
      modification of, any Material Contract,

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      Permit or material transaction (including, without limitation, any
      borrowing, capital expenditure, capital contribution, capital financing or
      factoring agreement);

            (e) increase in salary, bonuses or other compensation payable or to
      become payable to, or any advance or loan to any officer or employee of
      the Company or the FBOs, except in the ordinary course of business,
      consistent with past practice, and neither the Company nor either FBO has
      (i) entered into any Benefit Plan, employment, severance, or other
      agreements relating to compensation or fringe benefits or (ii) adopted or
      changed any existing Benefit Plan or Benefit Arrangement;

            (f) strike, walkout, labor trouble or, to the best of Sellers'
      knowledge, any other new or continued labor-related event, development or
      condition of any character which has or could materially adversely affect
      the Businesses;

            (g) cancellation or waiver of any right material to the operation of
      the Businesses or any cancellation or waiver of any debts or claims of
      substantial value or any cancellation or waiver of any debts or claims
      against any officer, manager or employee of the Company or either FBO;

            (h) payment, discharge or satisfaction of any material liability or
      obligation (whether accrued, absolute, contingent or otherwise), other
      than the payment, discharge or satisfaction of liabilities and obligations
      under contracts described in the Leases Schedule and the Contracts
      Schedule, in accordance with the terms of such contracts, and other than
      the payment, discharge or satisfaction, in the ordinary course of
      business, of liabilities or obligations shown or reflected on the
      Financial Statements or incurred in the ordinary course of business since
      December 31, 2003;

            (i) to the best of Sellers' knowledge, change or changes in
      relations with landlords, suppliers, clients or customers which,
      individually or in the aggregate, could reasonably be expected to result
      in a Material Adverse Change;

            (j) write-offs as uncollectible of any notes or accounts receivable
      of the Company or the FBOs or write-downs of the value of any asset or
      inventory by either the Company or the FBOs other than in immaterial
      amounts or in the ordinary course of business consistent with past
      practice and at a rate no greater than the rate applicable during the
      twelve months ended on December 31, 2003;

            (k) creation, incurrence, assumption or guarantee by the Company or
      either FBO of any material obligations or liabilities (whether absolute,
      accrued, contingent or otherwise and whether due or to become due), except
      in the ordinary course of business, or any creation, incurrence,
      assumption or guarantee by the Company or either FBO of any indebtedness
      for borrowed money; or

            (l) agreement by the Company or either FBO to do any of the
      foregoing.

      3.8 Real Property; Personal Property.

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            (a) The Leases Schedule, SCHEDULE 3.8(A), lists all oral or written
      leases, including the Ground Leases, subleases, licenses, concession
      agreements or other use or occupancy agreements pursuant to which either
      FBO leases to or from any other party any real property, including all
      renewals, extensions, modifications or supplements to any of the foregoing
      or substitutions for any of the foregoing (each a "LEASE" and
      collectively, the "LEASES"). The Leases are in full force and effect, have
      not been assigned, modified, supplemented or amended, and are enforceable
      by and against the respective FBOs and, to the best of Sellers' knowledge,
      all other parties thereto. Sellers have delivered to Buyer complete and
      accurate copies of each of the Leases (including all amendments and
      supplements thereto and, to the best of Sellers' knowledge, all material
      correspondence related thereto). Copies of the Ground Leases are attached
      to SCHEDULE 3.8(A) hereto. Except as set forth on SCHEDULE 3.8(A), (i)
      none of Sellers, the Company nor the respective FBOs has received any
      notice that either of the FBOs are in default under, or not in compliance
      with any material provision of, any Lease, that the Company or either FBO
      may be subject to any special assessments or that there may be any
      material changes in property Tax or land use law affecting any such
      Leases, (ii) none of the Sellers, the Company or the respective FBOs has
      delivered any notice to another party alleging any default under, or
      failure to comply with any material provision of any Lease, and (iii) no
      event has occurred that, with notice, the passage of time or both would
      constitute a material default by the FBOs under, or failure of the FBOs to
      comply with a material provision of, any of the Leases, or, to the best of
      Sellers' knowledge, otherwise give any party a right of termination or
      material modification thereof.

            (b) The FBOs' interests under the Leases are held free and clear of
      all Encumbrances other than any Encumbrances made by or in favor of the
      County of Orange or the City of Palm Springs or others as set forth in the
      Ground Leases. There are no mortgages, security interests or liens granted
      with respect to the Ground Leases. Neither the Company nor either of the
      FBOs owns any fee interest in any real property. The Company is not a
      party to any Leases and has no leasehold rights in any other real
      property.

                  (i) None of Sellers, the Company nor either of the FBOs has
            received written notice of any threatened condemnation proceedings,
            lawsuits or administrative actions relating to any of the real
            property used in the Businesses, or any other matters which do and
            may have a material adverse effect on the current use or occupancy
            thereof, and there are no pending or, to the best of the Sellers'
            knowledge, there are no pending or threatened condemnation
            proceedings, lawsuits or administrative actions relating to any of
            the real property used in the Businesses or any other matters which
            do or may have a material adverse effect on the current use and
            occupancy thereof.

                  (ii) All facilities, buildings, improvements and other
            structures located on the real property used in the Businesses and
            all present uses and operations of such real property and the
            structures by the FBOs, comply in all material respects to the best
            of the Sellers' knowledge with all applicable zoning, land-use,
            building, fire, labor, safety, subdivision and other governmental
            requirements and all deed or other title covenants or restrictions
            applicable thereto. None of Sellers,

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            the Company, nor either of the FBOs has received any notice that any
            of the leased real property or any of the structures used in the
            Businesses, or the use, occupancy or operation thereof by the FBOs,
            violate any governmental requirements or deed or other title,
            covenants or restrictions, except for any violations which do not
            have a material adverse effect.

                  (iii) The Company and each of the FBOs have obtained all
            material approvals of governmental authorities (including
            certificates of use and occupancy, licenses and permits) required in
            connection with the construction, ownership, use, occupation and
            operation of the leased real property and the structures thereon
            used in the Businesses, and all equipment owned or used by the
            Company or the FBOs. To the best of Sellers' knowledge, none of the
            leased real property or any of the structures thereon used in the
            Businesses are dependent upon or benefit from any "non-conforming
            use" or similar zoning classification.

                  (iv) Other than in the ordinary course of business or as may
            be provided in any Lease or Material Contract, there are no parties
            other than the FBOs in possession of any of the leased real property
            or any portion thereof, and, except as may be provided in any Lease
            or Material Contract or otherwise in the ordinary course of
            business, there are no leases, subleases, licenses, concessions or
            other agreements, written or oral, granting to any party or parties
            the right of use or occupancy of any of the leased real property or
            any portion thereof.

                  (v) To the best of the Sellers' knowledge, all structural,
            mechanical and other physical systems related to the leased real
            property are in good operating condition and repair, reasonable wear
            and tear excepted, in all material respects.

            (c) Attached hereto as SCHEDULE 3.8(C) is a complete and accurate
      list of all furniture, equipment, leasehold improvements, motor vehicles
      and all other tangible personal property owned or leased by the respective
      FBOs that the FBOs have reflected in their books and records in accordance
      with generally accepted accounting principles (the "PERSONAL PROPERTY").
      The Company does not own any tangible personal property.

            (d) Each of the FBOs has good title to their respective Personal
      Property, free and clear of any Encumbrances except as set forth on
      SCHEDULE 3.8(D).

            (e) The Personal Property has been maintained, repaired and replaced
      in the ordinary course of business consistent with past practices, and is
      not materially defective except for ordinary wear and tear. The FBOs own
      or lease all assets and properties that are used in or necessary to the
      operation of the Businesses as they are currently conducted. Sellers make
      no other representation or warranty as to the physical condition of the
      Personal Property, and it is otherwise sold "as is and where is" and "with
      all physical faults".

            (f) The FBOs' inventory consists of items of a quality and quantity
      usable and salable in the ordinary course of business.

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      3.9 Tax Matters. Except as set forth on SCHEDULE 3.9:

            (a) The Company and each of the FBOs have filed (or had filed on its
      behalf), all Tax Returns required to have been filed by it. The Company
      and each of the FBOs have duly paid (or had paid on its behalf) all Taxes
      required to have been paid by it. With respect to the Company and each
      FBO, no claim has ever been made by a governmental authority in a
      jurisdiction where the Company or such FBO (or the Company with respect to
      such FBO) does not file Tax Returns that the Company or either FBO is or
      may be subject to taxation by that jurisdiction. Neither the Company nor
      either FBO has requested or obtained any extension of time within which to
      file any Tax Return, which Tax Return has not since been filed. There are
      no Liens on any of the assets of the Company or either of the FBOs that
      arose in connection with any failure (or alleged failure) to pay any Tax.

            (b) The Company and each of the FBOs have complied in all material
      respects with all applicable laws, rules and regulations relating to
      withholding Taxes, and have, within the time and manner prescribed by law,
      withheld and paid, when due (or if withheld but not yet due, have made
      adequate reserves in the Unaudited Statements with for) all Taxes from
      payments made to its employees, agents, and contractors as required by
      Law.

            (c) To the best of Sellers' knowledge, there is no proceeding or
      audit pending or threatened by any governmental authority with respect to
      any Taxes or Tax Returns of the Company or either of the FBOs. To the best
      of Sellers' knowledge, there are no existing circumstances which, if known
      to governmental authorities, reasonably may be expected to result in the
      assertion of any claim for Taxes against the Company or either FBO by any
      governmental authority with respect to any period for which Tax Returns
      have been filed or Tax is required to have been paid by or with respect to
      the Company or either FBO.

            (d) Neither the Company nor either FBO (or any Affiliate of the
      Company or the FBOs, with respect to the Company or the FBOs) has received
      a written ruling from a governmental authority relating to any Tax or
      entered into a written agreement with a governmental authority relating to
      any Tax that could have a continuing effect with respect to any taxable
      period for which such Company has not filed a Tax Return.

            (e) Neither the Company nor either FBO (or any Affiliate of the
      foregoing with respect to the Company or the FBOs) has waived any statute
      of limitations with respect to any Tax or Tax Return or agreed to any
      extension of time with respect to a Tax assessment or deficiency, which
      has continuing effect.

            (f) Neither the Company nor either FBO is or has been a party to any
      Tax allocation, Tax sharing or similar agreement or arrangement, has been
      member of a group of entities required to file Tax Returns on a combined,
      consolidated or unitary basis, or has any liability for Taxes owing by any
      other person, including, without limitation, by contract or as a
      transferee or successor of such other person by merger or otherwise.

                                       10
<PAGE>
            (g) No property of the Company or either FBO is property that the
      Company or any party to this transaction is or will be required to treat
      as being owned by another person pursuant to the provisions of Section
      168(f)(8) of the Code (as in effect prior to its amendment by the Tax
      Reform Act of 1986) or is "tax-exempt use property" within the meaning of
      Section 168 of the Code.

            (h) The Sellers have provided to the Buyer complete and accurate
      copies of all of the following materials: (i) all income Tax Returns of
      the Company and each FBO, (ii) all examination reports of the Company and
      each FBO relating to Taxes, (iii) all statements of Taxes assessed against
      or agreed to by the Company or either FBO, (iv) all written rulings the
      Company or either FBO (or any Affiliate of the foregoing with respect to
      the Company or either FBO) received from any governmental authority
      relating to any Tax, and (v) all written agreements entered into by or on
      behalf of the Company or either FBO with any governmental authority
      relating to any Tax. SCHEDULE 3.9 identifies all Tax Returns that the
      Company or either FBO has filed and the taxable period covered by each
      such Tax Return, and identifies those Tax Returns or periods that have
      been audited or are currently the subject of an audit by a governmental
      authority.

            (i) Since the date of its formation, for federal income Tax
      purposes, the Company has properly been treated as a partnership pursuant
      to Treas. Reg. Section 301.7701-3(b)(1)(i). Since the date of its
      formation, each FBO has been, for federal Tax purposes, disregarded as an
      entity separate from its owner pursuant to Treas. Reg. Section
      301.7701-3(b)(1)(ii).

      3.10 Contracts and Commitments.

            (a) Except as set forth in the Contracts Schedule, SCHEDULE 3.10,
      neither the Company nor either of the FBOs is a party to any contract or
      agreement, written or oral:

                  (i) for a bonus, pension, profit sharing, retirement, deferred
            compensation, medical or life insurance plan, membership purchase or
            option or any other plans or arrangements providing for benefits of
            any type to employees (either current or former) of any of the
            Company or either FBO;

                  (ii) for collective bargaining or with any labor union;

                  (iii) for the borrowing of money or mortgaging, pledging or
            encumbering any of the Company's or the FBOs' respective assets;

                  (iv) for the lending or investing of funds to or in other
            persons or entities;

                  (v) granting any power of attorney (irrevocable or otherwise)
            to any person for any purpose relating to the respective Businesses
            or the Company's or the FBOs' respective assets, other than powers
            of attorney given to regulatory authorities in connection with
            routine qualifications to do business; or

                                       11
<PAGE>
                  (vi) with an Affiliate of any of Sellers, the Company or the
            FBOs (other than the Company's and the FBOs' Charter Documents).

            (b) The Contracts Schedule lists each of the Material Contracts. For
      purposes of this Agreement, "MATERIAL CONTRACTS" includes the following:

                  (i) any and all contracts for the sale of goods or services by
            the Company or either of the FBOs with a value in excess of $25,000
            individually or $100,000 in the aggregate, or which is not
            terminable without penalty by or on behalf of the Company or the
            FBOs on less than 90 days' notice;

                  (ii) any and all contracts, agreements, licenses, leases
            (other than the Leases), sales and purchase orders and other legally
            binding commitments that obligate the Company or either of the FBOs
            to pay, assume, guaranty or secure an amount of $25,000 or more
            individually or $100,000 or more in the aggregate or that cannot be
            terminated without penalty by or on behalf of the Company or the
            FBOs on less than 90 days' notice;

                  (iii) any and all contracts between the Company or either of
            the FBOs on the one hand and any Affiliate of the Company or either
            FBO on the other hand (other than the Company's and the FBOs'
            Charter Documents);

                  (iv) any and all broker, distributor, dealer, representative
            or agency agreements;

                  (v) any and all insurance policies insuring either of the
            Businesses, either of the Facilities or any of the Company's or
            FBOs' respective assets (collectively, the "INSURANCE POLICIES");

                  (vi) any and all employment, non-competition or consulting
            agreement that is currently in effect;

                  (vii) each contract containing covenants purporting to
            materially limit the freedom of the Company or the FBOs to compete
            in any line of business or in any geographic area;

                  (viii) any factoring agreements;

                  (ix) each partnership, joint venture or other similar
            agreement or arrangement to which the Company or either FBO is a
            party; and

                  (x) any and all agreements requiring a loan, advance or
            guaranty of any Funded Indebtedness by the Company or either of the
            FBOs.

            (c) Sellers have delivered to Buyer true and complete copies of all
      written Material Contracts, together with all amendments and supplements
      thereto. A description of the principal terms and conditions of each oral
      Material Contract, if any, is set forth on the Contracts Schedule. The
      Material Contracts are in full force and effect and are

                                       12
<PAGE>
      enforceable against the Company or the respective FBOs, as applicable, and
      to the best of Sellers' knowledge all other parties thereto. Except as set
      forth on the Contracts Schedule, (i) none of Sellers, the Company nor
      either FBO has received any notice that it is in default under, or not in
      compliance with any material provision of, any Material Contract, (ii)
      none of Sellers, the Company nor either FBO has delivered any notice to
      another party alleging any default under, or failure to comply with any
      material provision of, any Material Contract, and (iii) with respect to
      the Material Contracts, no event has occurred that, with notice, the
      passage of time or both would constitute (A) a default by the Company or
      the FBOs, or (B) a failure of the Company or the FBOs to comply with a
      material provision of any of the Material Contracts, or (C) to the best of
      Sellers' knowledge, otherwise give any party a right of termination or
      modification thereof. Except as set forth on SCHEDULE 3.10(C), to the best
      of Seller's knowledge, the consummation of the transactions contemplated
      by this Agreement would not give any party to a Material Contract the
      right to terminate or cancel the terms of such Material Contract.

            (d) Set forth on SCHEDULE 3.10(D) is a list of the twenty-five (25)
      largest customers of each FBO by gallons of fuel purchased in the 2003
      calendar year. Other than the customers set forth on SCHEDULE 3.10(D), no
      other customer accounted for more than five percent (5%) of the gallons of
      fuel purchased by customers of either FBO in the 2003 calendar year. None
      of Sellers, the Company or either of the FBOs has received any notice from
      any of the customers listed on SCHEDULE 3.10(D) that such customer intends
      to cease or reduce its buying of goods or services from either FBO.

            (e) Except as disclosed on SCHEDULE 3.10(E), none of Sellers, the
      Company or either of the FBOs has received any notice from any material
      supplier to or landlord of the FBOs that such material supplier or
      landlord intends to terminate or materially alter its business
      relationship with either FBO.

            (f) None of the Sellers, the Company or the FBOs has failed to give
      any notice or present any reasonably available claim under any of the
      Insurance Policies in a timely fashion or in the manner or detail required
      by the policy. None of the Insurance Policies is subject to any
      retroactive rate or audit adjustments or coinsurance arrangements. None of
      the Sellers, the Company or the FBOs has received any notice of
      cancellation, non-renewal or material premium increase with respect to any
      Insurance Policy.

            (g) None of the Company or either FBO, directly or indirectly, has
      any (i) interest in the outstanding stock or ownership interests of any
      corporation or in any partnership, joint venture or other entity (other
      than, in the case of the Company, the FBOs and, for some period up to, but
      excluding, the Closing Date, LQA), or (ii) agreement, understanding,
      contract or commitment relating to an interest in any such entity (other
      than, in the case of the Company, the FBOs and, for some period up to, but
      excluding, the Closing Date, LQA).

      3.11 Litigation; Proceedings. Except as set forth in SCHEDULE 3.11, none
of the Sellers, the Company or the FBOs has received notice of service of
process regarding or, to the best of

                                       13
<PAGE>
Sellers' knowledge, otherwise been named as a party to any pending action, suit,
proceeding, judgment, order or governmental investigation, and, to the best of
Sellers' knowledge, no action, suit, proceeding or governmental investigation
has been threatened against any of the Company or the FBOs before any federal,
state, municipal or other governmental court or agency. None of the Company or
the FBOs is subject to or in violation of any judgment, decree, injunction or
order.

      3.12 Brokerage. No agent, broker, finder, or investment or commercial
banker engaged by or on behalf of Sellers, the Company or the FBOs is or will be
entitled to any brokerage commission, finders' fees or similar compensation as a
result of this Agreement or any of the transactions contemplated herein.

      3.13 Employees.

            (a) SCHEDULE 3.13(A) contains a complete and correct list of all
      employees of the Company and the FBOs, their respective titles as of the
      date hereof (the "BUSINESS EMPLOYEES"), the common law employer of the
      employee, the 2004 compensation (excluding transaction bonuses) paid or
      payable to each such employee, the date and amount of each such employee's
      most recent salary increase, the date of employment of each such employee
      and the accrued vacation time and sick leave or other paid time off of
      each such employee. Except as set forth on SCHEDULE 3.13(A)(II), (i) the
      terms of employment or engagement of all officers and Business Employees
      are such that their employment or engagement may be terminated at will
      with notice given at any time and without liability for payment of
      compensation or damages, (ii) there are no severance payments which are or
      could become payable by the Company or the FBOs to any such person under
      the terms of any oral or written agreement or commitment or any Law,
      custom, trade or practice, (iii) there are no other agreements, contracts
      or commitments, oral or written, between the Company or either of the FBOs
      and any such person, (iv) as of the date hereof, except as set forth on
      SCHEDULE 3.13(A)(III), to the best of Sellers' knowledge, no management
      level Business Employee has provided notice that he or she intends to
      terminate his or her employment or relationship with the Company or either
      of the FBOs, (v) to the best of Sellers' knowledge, there are no
      agreements between any Business Employee and any other Person which would
      restrict, in any manner, such Person's ability to perform services, for
      the Company, either of the FBOs, the Buyer, or any of their Affiliates or,
      in connection with the operation of the Businesses, or the right of any of
      them to compete with any Person.

            (b) None of the Company or the FBOs are, or have ever been, bound by
      or subject to (and none of their respective assets or properties are bound
      by or subject to) any arrangement with any labor union or other collective
      bargaining representative. No employee of the Company or the FBOs has ever
      been represented by any labor union while employed by the Company or the
      FBOs or covered by any collective bargaining agreement while employed by
      the Company or the FBOs and no campaign to establish such representation
      is in progress. With respect to the Company and the FBOs, there is no
      pending or, to the best of Sellers' knowledge, threatened (i) strike,
      slowdown, picketing, work stoppage or employee grievance process, (ii)
      material charge, grievance proceeding or other claim against or affecting
      the Company or the FBOs relating to the

                                       14
<PAGE>
      alleged violation of any law pertaining to labor relations or employment
      matters, or (iii) application for certification of a collective bargaining
      agent.

            (c) As of the date hereof, neither the Company nor the FBOs employ
      or otherwise engage any independent contractors, consultants or agents;
      and none of them has any liability arising out of the employment or
      engagement of any independent contractors, consultants or agents.

            (d) SCHEDULE 3.13(D) lists all of the Business Employees who are
      currently on leave relating to work-related injuries and/or receiving
      disability benefits under any Benefit Plan.

      3.14 Employee Benefit Plans.

            (a) SCHEDULE 3.14(A) lists: (i) each plan, fund, program, agreement
      or arrangement for the provision of executive compensation, deferred or
      incentive compensation, profit sharing, stock bonus, bonus, stock option,
      stock purchase, termination, salary continuation, employee assistance,
      supplemental retirement, severance, vacation, sickness, disability, death,
      fringe benefit, insurance, medical or other benefits (whether provided
      through insurance, on a funded or unfunded basis, or otherwise) to any
      current or former employee, director, consultant or independent
      contractor, or any dependent, survivor or beneficiary with respect to any
      of the foregoing, which is maintained, administered or contributed to by
      the Company or either FBO, whether or not legally binding; (ii) each
      Employee Pension Benefit Plan which has been maintained, administered or
      contributed to by the Company, either FBO or any ERISA Affiliate of the
      Company or the FBOs in the past six (6) years (the "PENSION PLANS"); and
      (iii) each Employee Welfare Benefit Plan which is currently maintained,
      administered or contributed to by the Company or the FBOs (the "WELFARE
      PLANS") (collectively, the "BENEFIT PLANS").

            (b) Each Pension Plan which is intended to qualify under Section
      401(a) of the Code so qualifies: (i) with respect to the form of its plan
      documents and (ii) in operation. Each Benefit Plan (and each related
      trust, insurance contract or fund) has been administered in all material
      aspects in accordance with its governing instruments and all applicable
      Law.

            (c) There have been no Prohibited Transactions with respect to any
      Benefit Plan which could result in liability to the Company, the FBOs or,
      to the best of the Sellers' knowledge, any of their respective employees.
      There has been no breach of fiduciary duty (including violations under
      Part 4 of Title I of ERISA) with respect to any Benefit Plan which could
      result in liability to the Company, the FBOs or, to the best of the
      Sellers' knowledge, any of their respective employees.

            (d) Neither the Company nor any or its ERISA Affiliates have ever
      maintained, contributed to, had any obligation to contribute to, or had
      any other liability under or with respect to any Employee Pension Benefit
      Plan covered by Title IV of ERISA or ERISA Section 302 or Section 412 of
      the Code. Neither the Company nor any

                                       15
<PAGE>
      of its ERISA Affiliates have ever had any liability under or with respect
      to any "multiemployer plan" as defined in ERISA Section 3(37).

            (e) Neither the Company nor the FBOs have ever sponsored,
      maintained, administered, contributed to, had any obligation to contribute
      to, or had any other liability under or with respect to any Employee
      Welfare Benefit Plan which provides health, life or other coverage for
      former directors, officers or employees (or any spouse or former spouse or
      other dependent thereof), other than benefits required by COBRA.

            (f) Neither the Company nor any of its ERISA Affiliates have ever
      maintained a "voluntary employees beneficiary association" within the
      meaning of Section 501(c)(9) of the Code or any other "welfare benefit
      fund" as defined in Section 419(e) of the Code.

            (g) All reports and information relating to each Benefit Plan
      required to be filed with any governmental agency or authority have been
      timely filed, or have been filed without any current liability for late
      filing, and are accurate in all material respects; all reports and
      information relating to each such Benefit Plan required to be disclosed or
      provided to participants or their beneficiaries have been timely disclosed
      or provided, and there are no restrictions on the right of the Company or
      the FBOs to terminate such plan or decrease (prospectively) the level of
      benefits under any Benefit Plan after the Closing Date without liability
      to any participant or beneficiary thereunder.

            (h) There has been delivered to Buyer, with respect to each Benefit
      Plan, the following: (i) a copy of the annual report (if required under
      ERISA) with respect to each such Benefit Plan for the last three (3) years
      (including all schedules and attachments); (ii) a copy of the summary plan
      description, together with each summary of material modification required
      under ERISA with respect to such Benefit Plan; (iii) except as set forth
      in SCHEDULE 3.14(H), a true and complete copy of each written Benefit
      Plan; (iv) all trust agreements, insurance contracts, and similar
      instruments with respect to each funded or insured Benefit Plan and with
      respect to Pension Plans, each written plan document and all amendments
      thereto which have been adopted since the inception of such plan; (v)
      copies of all nondiscrimination and top-heavy testing reports for the last
      three (3) plan years with respect to each Benefit Plan subject to
      nondiscrimination and/or top-heavy testing; and (vi) any investment
      management agreements, administrative services contracts or similar
      agreements relating to the ongoing administration and investment of any
      Benefit Plan.

            (i) Each Benefit Plan sponsored by the Company or the FBOs is
      terminable or amendable to decrease prospectively the level of its
      benefits at the discretion of such entity with no more than ninety (90)
      days advance notice and without material cost to such entity. The Company
      or the FBOs may, without material cost, withdraw their employees,
      directors, officers and consultants from any Benefit Plan which is not
      sponsored by such entity. No Benefit Plan has any provision which could
      increase or accelerate benefits or any provision which could increase
      liability to the Company or the FBOs as a result of the transactions
      contemplated hereby, alone or together with any other event. To the best
      of Sellers' knowledge, no officer, director, agent or employee of

                                       16
<PAGE>
      the Company or the FBOs or any of their ERISA Affiliates has made any
      material oral or written representation which is inconsistent with the
      terms of any Benefit Plan.

            (j) Neither Company nor either FBO has any liability with respect to
      any Employee Welfare Benefit Plan or Employee Pension Benefit Plan
      maintained, administered or contributed to Merced or by any ERISA
      Affiliate of Merced other than the Company or an FBO.

            (k) All employees of the Company, the FBOs and LQA were permitted to
      participate in the Palm Springs Two LLC 401(k) Plan after completing three
      (3) months eligibility service without regard to actual hours of service
      or job classification.

      3.15 Compliance with Laws. The Company and each of the FBOs have complied,
and the use and operation of the Facilities are in compliance, in all material
respects, with all applicable Laws which affect the Businesses, and have timely
filed with the proper authorities all material statements and reports required
by the Laws to which the Businesses are subject. The Company and each of the
FBOs hold all material permits, licenses, certificates, approvals,
registrations, franchises, rights, qualifications and other authorizations of
federal, state and local governments, agencies and regulatory authorities
required for the conduct of the Businesses as operated to the date hereof
(collectively, the "PERMITS"). SCHEDULE 3.15 sets forth a complete and accurate
list of each Permit. Neither the Company nor either FBO (1) holds any Permit
issued by the Federal Aviation Administration or by the U.S. Department of
Transportation or (2) owns or leases aircraft or (3) operates aircraft for a
third party under a management agreement or other similar arrangement. To the
best of Sellers' knowledge, there is not pending or proposed any order, notice,
rule, or directive, issued by any governmental authority against the Company or
the FBOs, nor, to the best of Sellers' knowledge, is there now pending or
threatened any legal or regulatory proceeding by any governmental authority
which is likely to materially adversely affect the Businesses or assets of the
FBOs or any Permit.

      3.16 Environmental Matters. Except as set forth in SCHEDULE 3.16, Sellers
represent and warrant that:

            (a) To the best of Sellers' knowledge, each of the Company and the
      FBOs materially complies, and at all times during Sellers' ownership of
      the Membership Interests has been in material compliance, with applicable
      Environmental Laws;

            (b) None of Sellers, the Company nor either of the FBOs has received
      any written request for information, or has been notified that it is a
      potentially responsible party, under CERCLA or any similar state or local
      law with respect to any on-site or offsite location;

            (c) To the best of Sellers' knowledge, the Company and each of the
      respective FBOs has obtained all required material Environmental Permits
      relating to the respective Businesses, enabling the Businesses to operate
      as of the Closing Date in the ordinary course of business consistent with
      past practices;

            (d) None of Sellers, the Company nor either of the FBOs has received
      any notice, notification, demand, request for information, citation,
      summons, complaint or

                                       17
<PAGE>
      order and, to the best of Sellers' knowledge, there is no violation,
      claim, demand, litigation, proceeding or governmental investigation
      (whether pending or threatened) arising from applicable Environmental Laws
      by or against the Company or the FBOs. Neither the Company nor either FBO
      is subject to any judgment, decree, order, or consent agreement relating
      to compliance with any Environmental Laws, or the cleanup of Hazardous
      Materials under any Environmental Laws;

            (e) Sellers have delivered true, complete and correct copies of any
      reports, or other documents possessed by or in the control of Sellers, the
      Company or the FBOs pertaining to the environmental condition of the
      respective Facilities, Hazardous Materials on the respective Facilities
      and regarding the Company's and the respective FBOs' compliance with
      applicable Environmental Laws. Except for such reports or documents, at no
      time during Sellers' ownership of the Membership Interests has there been
      any material investigation, study, audit, test, review or other material
      analysis (including any Phase I environmental assessments) conducted by,
      for, or provided to Sellers, the Company or the FBOs in relation to the
      Businesses;

            (f) Except as set forth in SCHEDULE 3.16, to the best of Sellers'
      knowledge, neither of the Facilities contain any underground storage
      tanks. To the best of the Sellers' knowledge, except as set forth in
      SCHEDULE 3.16, there have been no material discharges, emissions,
      spilling, leaking, pouring, emptying, or other releases of Hazardous
      Materials which are or were reportable by Sellers, the Company or either
      FBO under any Environmental Laws; and

            (g) To the best of Sellers' knowledge, (i) the Report of Phase I
      Environmental Site Assessment Update prepared by SECOR International
      Incorporated with respect to NJC, dated April 19, 2002, is accurate and,
      except as set forth on SCHEDULE 3.16, includes an investigation and
      assessment of all parts of the NJC Facility; and (ii) the Report of Phase
      I Environmental Site Assessment Update prepared by Earth Systems Southwest
      with respect to PSP, dated April 15, 2002 and updated as of June 26, 2002,
      is accurate and, except as set forth on SCHEDULE 3.16, includes an
      investigation and assessment of all parts of the PSP Facility.

      3.17 Affiliate Transactions. No Affiliate of the Company or the FBOs, nor
any member, manager, officer, director or equity holder of any thereof, is party
to any agreement (other than the Company's and the FBOs' Charter Documents), or,
to the best of Sellers' knowledge, any transaction or understanding, with the
Company or either of the FBOs. Except as set forth on SCHEDULE 3.17, the
consummation of the transactions contemplated by this Agreement will not (either
alone, or upon the occurrence of any act or event, or with the lapse of time, or
both) result in any benefit or payment (severance or other) arising or becoming
due from the Company or either of the FBOs to any entity or person other than
Sellers in accordance with the terms of this Agreement.

      3.18 Intellectual Property Rights. SCHEDULE 3.18 lists all of the
Intellectual Property owned or licensed by the Company and each of the FBOs and
used in connection with their respective Businesses (the "COMPANY INTELLECTUAL
PROPERTY"). To the best of Sellers' knowledge, use by Company and the respective
FBOs of the Company Intellectual Property does

                                       18
<PAGE>
not infringe any rights of any third party and no activity of any third party
infringes upon the rights of the Company or the respective FBOs with respect to
any of the Company Intellectual Property. To the best of Sellers' knowledge, no
claims have been asserted by any entity or person with respect to challenging
the ownership, validity, enforceability or use of the Company Intellectual
Property, nor to the best of the Sellers' knowledge, is there any valid grounds
for any such bona fide claims. To the extent the Company or either FBO uses any
Intellectual Property owned by a third party, the Company and the FBOs, as
applicable, have a license with such third party for the use of such
Intellectual Property and, to the best of the Sellers' knowledge, is not in
default under any such license.

      3.19 Bank Accounts; Powers of Attorney. SCHEDULE 3.19 lists each bank,
trust company, savings institution, brokerage firm, mutual fund or other
financial institution with which each of the Company and the FBOs have an
account or safe deposit or lock box and the names and identification of all
persons authorized to draw on it or to have access to it as of the Closing Date.
Except as set forth on SCHEDULE 3.19, none of the Company, the FBOs nor any of
their managers or officers, has any power of attorney with respect to the
Businesses outstanding.

      3.20 Fuel Volume Records. True and correct copies of the FBOs' fuel volume
records and gross receipt statements as filed with the relevant airport
authorities for the period from January 1, 2003 through July 31, 2004,
reflecting the volume of fuel purchased by the FBOs, and revenues on which the
FBOs paid a percentage fee, during such period are attached as SCHEDULE 3.20.
Such statements accurately reflect the volume of fuel purchased and revenues
earned by the FBOs during such period and were prepared in accordance with the
FBOs' books and records.

                                   ARTICLE 4

                     BUYER'S REPRESENTATIONS AND WARRANTIES

      As an inducement to Sellers to enter into this Agreement, Buyer represents
and warrants to Sellers that:

      4.1 Organization. Buyer is a corporation duly organized, validly existing
and in good standing under the Laws of the State of Delaware.

      4.2 Power and Authority. Buyer has full power and authority to execute and
deliver this Agreement and the Transaction Documents and to perform its
obligations hereunder and thereunder.

      4.3 Authorization; No Breach. The execution, delivery and performance of
this Agreement has been, and the execution, delivery and performance of the
Transaction Documents as of the Closing will have been, duly and validly
authorized by Buyer, and this Agreement constitutes, and each of the Transaction
Documents as of the Closing will constitute, a valid and binding obligation of
Buyer, enforceable against Buyer in accordance with their respective terms
(except as may be limited by bankruptcy, insolvency, reorganization and other
similar laws and equitable principles relating to or limiting creditors' rights
generally).

                                       19
<PAGE>
      4.4 Brokerage. No agent, broker, finder, or investment or commercial
banker engaged by or on behalf of Buyer is or will be entitled to any brokerage
commission, finders' fees or similar compensation from Sellers or any of their
respective Affiliates as a result of this Agreement or any of the transactions
contemplated herein.

      4.5 Litigation. There is no action, suit, proceeding, judgment or order
pending or, to the best of Buyer's knowledge, threatened against or affecting
Buyer before any federal, state, municipal or other governmental court or agency
which would have a material adverse effect on Buyer's performance under this
Agreement or the Transaction Documents or the consummation of the transactions
contemplated hereby.

      4.6 Buyer's Investment Representation. Buyer is acquiring the Membership
Interests and the FBO Interests for Buyer's own account for investment purposes
only and, except in connection with a potential Qualified IPO, not with a view
to or for sale in connection with a distribution thereof. Buyer shall not sell
the Membership Interests or the FBO Interests in a manner that violates any
federal or state securities laws. Buyer acknowledges that none of the Membership
Interests or FBO Interests will be registered under, and therefore will be
"restricted securities" under, the Securities Act of 1933 as amended. Buyer is
an "accredited investor" within the definition set forth in Rule 501(a) of the
Securities Act of 1933, as amended.

                                   ARTICLE 5

                              PRE-CLOSING COVENANTS

      5.1 Affirmative Covenants. Prior to the Closing, Sellers shall cause the
Company and the FBOs, as applicable, to:

            (a) use commercially reasonable efforts to obtain (i) all Ground
      Lease Consents and (ii) any other consents and approvals from any parties
      that may be necessary or reasonably requested by Buyer to consummate the
      transactions contemplated by this Agreement, including such consents and
      approvals that may be necessary as a result of the subsequent sale or
      transfer of Buyer or by Buyer of its rights under this Agreement to an
      Affiliate of Buyer;

            (b) conduct the Businesses only in the usual and ordinary course of
      business and consistent with past practices, including, without
      limitation, consistent with past practices in respect of managing working
      capital (including, without limitation, not accelerating the collection of
      receivables or deferring the payment of payables);

            (c) use commercially reasonable efforts to keep in full force and
      effect the Company's and the FBOs' respective corporate existence and all
      rights, franchises, Permits and Company Intellectual Property rights
      relating to or pertaining to the Businesses;

            (d) use commercially reasonable efforts to retain the Company's and
      the FBOs' respective employees and preserve the Company's and the FBOs'
      respective present business relationships;

                                       20
<PAGE>
            (e) use commercially reasonable efforts to maintain the Personal
      Property in customary repair, order and condition and in the event of any
      casualty, loss or damage to any of the Personal Property prior to Closing,
      use commercially reasonable efforts to either repair or replace such
      assets with assets of comparable quality or transfer to Buyer at Closing
      the proceeds of any insurance recovery with respect thereto;

            (f) maintain the Company's and the FBOs' respective books, accounts
      and records in accordance with past custom and practice as applied by
      Sellers, the Company and the FBOs, as applicable, on a consistent basis;

            (g) use commercially reasonable efforts to maintain all Insurance
      Policies; and

            (h) use commercially reasonable efforts not to be in material
      default under any Material Contract, Lease or Permit and to cure any such
      material default.

      5.2 Schedules. The schedules are attached to this Agreement as of
execution of this Agreement. On or prior to two (2) Business Days before the
Closing Date, Sellers will provide to Buyer a complete set of the schedules
provided for in this Agreement, updated and revised as necessary from those
schedules attached as of execution of this Agreement. Notwithstanding the
foregoing, Sellers shall, as soon as reasonably practicable, give Buyer written
notice of the existence or occurrence of any condition which would make any
representation or warranty made by Sellers contained herein untrue as of the
date of this Agreement or any subsequent date as if made on and as of such
subsequent date (except for those representations and warranties which address
matters only as of a particular date) or which might reasonably be expected to
prevent the consummation of the transactions contemplated hereby. No such
written notification (or updated or revised disclosure schedule) related to the
existence or occurrence of any condition which would make any representation or
warranty made by Sellers contained herein untrue as of the date of this
Agreement shall (i) be deemed to cure any breach of any representation or
warranty resulting from such condition or (ii) constitute a waiver by Buyer of
any condition set forth in this Agreement, unless, in either case, Buyer
specifically agrees thereto in writing or consummates the Closing under this
Agreement after receipt of such written notification (or updated or revised
disclosure schedule). No such written notification related to the occurrence of
any condition arising after the date of this Agreement shall result in any
adjustment in the Purchase Price or give Buyer any right to claim damages under
this Agreement or to terminate this Agreement unless the condition or conditions
reported in such written notification (or updated or revised disclosure
schedule) constitute, or are reasonably likely to result in, a Material Adverse
Change. Notwithstanding any other provision of this Agreement to the contrary,
Buyer shall not be obligated to consummate the Closing if a revised or updated
schedule, disclosing a matter existing on or prior to the date of this
Agreement, is necessary to make a representation or warranty true and correct in
all material respects as of the date of this Agreement, and such schedule is not
accepted by the Buyer.

      5.3 Purchase Price Allocation. Buyer and Sellers shall cooperate to
determine (in accordance with all applicable Treasury Regulations promulgated
under Section 1060 of the Code) the allocation of the Purchase Price and the
liabilities of the Company and the FBOs (plus other relevant items) among the
assets of the Company and the FBOs as of the Closing Date.

                                       21
<PAGE>
Such allocation of the Purchase Price shall be made in a manner consistent with
the fair market values of such assets as are set forth on SCHEDULE 5.3, to be
attached to this Agreement before Closing. Each of the Parties will file (and
cause their respective Affiliates to file) all Tax Returns (including amended
returns and claims for refund) and information reports (including without
limitation the IRS Form 8594 and any disclosures that are required under Section
1060 of the Code) in a manner consistent with such allocation. Neither Buyer nor
Sellers shall take (or permit any of their respective Affiliates to take) any
position that is inconsistent with such allocation except as otherwise may be
required by law.

      5.4 Access. Prior to Closing, Sellers will (a) during ordinary business
hours and in a commercially reasonable manner, permit Buyer and its authorized
representatives to have access to each of the Facilities and their respective
books, records and key personnel, (b) furnish, as soon as reasonably
practicable, to Buyer or its authorized representatives such other information
in Sellers' possession with respect to the Company and the FBOs as Buyer may
from time to time reasonably request, and (c) otherwise reasonably cooperate in
the examination of the Company and the FBOs by Buyer. No investigation or
receipt of information by Buyer pursuant to this Agreement shall diminish or
obviate any of the representations, warranties, covenants or agreements of
Sellers under this Agreement or the conditions to the obligations of Buyer under
this Agreement.

      5.5 Negative Covenants. From the Effective Date to the Closing Date,
Sellers shall not permit the Company or the FBOs to, and Sellers shall not, with
respect to the Company or the FBOs, without the prior written consent of Buyer,
which consent shall not be unreasonably withheld, conditioned, or delayed:

            (a) transfer, sell or distribute any material assets other than LQA;

            (b) assume, guarantee, endorse or otherwise become liable or
      responsible for any indebtedness of any other person;

            (c) incur or agree to incur any material obligation or liability, or
      make any material capital expenditures that are inconsistent with the 2004
      budgets of the FBOs as provided to Buyer on or before the date hereof, or
      commitments with respect thereto;

            (d) make any loans, or investments in, any other person or entity;

            (e) pledge or otherwise mortgage any material assets or allow any
      Encumbrance thereupon;

            (f) terminate, amend or fail to renew any Permits other than in the
      ordinary course of business and with prior notice to Buyer;

            (g) terminate, amend or fail to renew any Insurance Policies other
      than in the ordinary course of business and with prior notice to Buyer;

            (h) materially amend, modify or terminate any Material Contract;
      provided, that, the foregoing shall not preclude the Company or either FBO
      from amending or modifying any Material Contract without Buyer's prior
      written consent, so long as such

                                       22
<PAGE>
      amendment or modification (i) is in the ordinary course of business, (ii)
      is not adverse to the Company or either FBO and (iii) Sellers provide
      Buyer with prompt written notice of such amendment or modification.
      Notwithstanding anything to the contrary, prior to the Closing, Company
      may transfer all or a portion of the debt owing under the Phegley Note,
      the Foster Note and the Merced Note attributable to LQA to the entity to
      which the Company transfers LQA or 100% of LQA's membership interests;
      provided, however, such transfer of debt includes a full release of the
      debt obligations of the Company and the FBOs with respect to such
      transferred debt;

            (i) increase the compensation, benefits or other remuneration of any
      of the Businesses' current officers (other than Affeldt) or key employees,
      other than payment by Sellers at Closing of transaction bonuses, or enter
      into any employment or consulting contract or arrangement with any person
      which is not terminable at will, without penalty or continuing obligation;

            (j) adopt a plan of complete or partial liquidation, dissolution,
      merger, consolidation, restructuring, recapitalization or other
      reorganization of the Company or either of the FBOs;

            (k) alter through merger, liquidation, reorganization, restructuring
      or any other fashion the ownership of the Membership Interests by Sellers;

            (l) except as expressly contemplated in this Agreement, take any
      action or permit to occur any event described in Section 3.7;

            (m) knowingly take any action or omit to take any action which will
      result in a violation of any applicable Law or cause a breach of any
      Material Contract, Lease, Permit or representation or warranty set forth
      in Article 3;

            (n) bill for goods or services, or take any action to collect any
      accounts receivable, or run down inventory, in any case outside the
      ordinary course of business or inconsistent with past practices, or defer
      payment of any accounts payable for a period inconsistent with past
      practices; or

            (o) enter into any agreement, or otherwise commit, to do any of the
      foregoing.

      5.6 Covenants related to Benefit Plans. Prior to the Closing Date, Sellers
shall: (i) cause the Palm Springs FBO Two LLC 401(k) Plan (the "401(K) PLAN") to
be amended to provide that the Company is the employer sponsoring the 401(k)
Plan and to exclude employees of all entities other than the Company and the
FBOs from participation thereunder, (ii) cause the accounts of all current and
former employees of LQA who are not currently employed by the Company or an FBO
to be spun-off, in a transaction described in Code Section 414(l), to another
401(k) plan not to be maintained by the Company or an FBO for their benefit,
(iii) cause the Company to adopt a cafeteria plan for the benefit of its and the
FBOs' employees, and (iv) ensure that the transfer of the membership interests
of LQA from the Company to other Persons pursuant to the terms of this Agreement
and the corresponding cessation of the LQA employees' participation in the group
health plan(s) maintained by the Company will not constitute a

                                       23
<PAGE>
"qualifying event" (as defined in Section 4980B(f)(3) of the Code) for any LQA
employee with respect to such plan(s).

      5.7 No Shop. From the Effective Date through the Closing, Sellers shall
not sell or otherwise transfer any of the Membership Interests to any other
person, and none of Sellers, the Company or the FBOs, or any of their respective
Affiliates, officers, manager, employees, representatives or agents, shall,
directly or indirectly, solicit, initiate or participate in any way in
discussions or negotiations with, or provide any information or assistance to,
any person or group of persons (other than Buyer) concerning any acquisition of
an equity interest in, or in a merger, consolidation, liquidation, dissolution,
disposition of assets (other than in the ordinary course of business and as
specifically permitted pursuant to this Agreement) of the Company or either FBO,
or any disposition of any of the Membership Interests or FBO Interests (other
than pursuant to the transactions contemplated by this Agreement), or assist or
participate in, facilitate or encourage any effort or attempt by any other
person to do or seek to do any of the foregoing.

      5.8 Additional Covenant of Merced. Merced covenants and agrees that, for a
period of eighteen (18) months from the Effective Time, Merced will not
dissolve, liquidate or otherwise distribute substantially all of its assets
without creating and maintaining a reserve fund adequate to satisfy in full its
indemnity obligations pursuant to Section 9.1 of this Agreement; provided,
however, Merced shall not be obligated to maintain such reserve fund, if Merced
provides to Buyer a guaranty in form reasonably satisfactory to Buyer of such
indemnification obligations executed by a financially viable person or entity
reasonably satisfactory to Buyer.

                                    ARTICLE 6

                           CLOSING CONDITIONS - BUYER

      6.1 Conditions to Closing. The obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of
the following conditions on or before the Closing Date:

            (a) The representations and warranties set forth in Article 3 and
      the information set forth in the schedules to this Agreement (as such
      schedules may have been revised and updated between the Effective Date and
      the Closing Date and accepted by Buyer, if applicable, pursuant to Section
      5.2) shall be materially true and correct as of the Closing Date as though
      made on the Closing Date, and Sellers shall have delivered to Buyer a
      certificate to that effect;

            (b) Sellers shall have performed or complied with all of the
      covenants and agreements required under this Agreement, and Sellers shall
      have delivered to Buyer a certificate to that effect;

            (c) No order of any court or administrative agency shall be in
      effect which restrains or prohibits the transactions contemplated hereby,
      and there shall not have been threatened, nor shall there be pending, any
      action or proceeding by or before any court or governmental agency or
      other regulatory or administrative agency or commission

                                       24
<PAGE>
      challenging any of the transactions contemplated by this Agreement or
      seeking monetary relief by reason of the consummation of such
      transactions;

            (d) Sellers shall have executed and delivered to Buyer original or
      facsimile counterparts of each Transaction Document to which it is a party
      (in accordance with the provision in Section 8.1 permitting the use of
      facsimile copies);

            (e) The governmental approvals and consents by third parties set
      forth on Schedule 6.1(e) shall have been obtained and no such approval or
      consent shall have been conditioned upon the modification in any material
      respect, cancellation or termination of any Material Contract, Lease or
      Permit or shall impose on Buyer, the Company or the FBOs any material
      condition, provision, fee or requirement not presently imposed upon the
      Company or the FBOs or any condition, provision or requirement that would
      be materially more restrictive after the Closing than the conditions,
      provisions and requirements presently imposed on the Company or the FBOs,
      as the case may be; provided, however, that if the Federal Communications
      Commission consents set forth on such Schedule 6.1(e) have not been
      obtained within 60 days after the Effective Date, such consents shall no
      longer be considered to be a condition to closing under this Agreement;

            (f) Buyer shall have received reasonable confirmation from Sellers
      of the absence of any and all deeds of trust, assignments of rents,
      security agreements, Uniform Commercial Code filings (including, but not
      limited to, the termination of Financing Statement No. 9928660657 set
      forth on Schedule 3.8(d), but excluding any such filings relating to any
      other Encumbrances of Personal Property set forth on Schedule 3.8(d)) and
      fixture filings affecting the Company or either of the FBOs or their
      respective Facilities or Businesses;

            (g) Sellers shall have delivered an opinion of counsel, dated as of
      the Closing Date and addressed to Buyer, substantially in the form set
      forth as EXHIBIT "C", with respect to (i) the due authorization,
      execution, delivery and enforceability of this Agreement as to Merced and
      (ii) no conflicts between Sellers' obligations under this Agreement and
      Merced's Charter Documents;

            (h) Buyer shall have received the resignation of Affeldt as an
      officer of the Company and each of the FBOs;

            (i) Each of the Sellers shall have delivered to Buyer a tax
      certificate complying with Treas. Reg. Section 1.1445-2(b)(2) stating that
      such Seller is not a "foreign person" within the meaning of Section 1445
      of the Code;

            (j) Buyer shall have received (i) good standing certificates and
      foreign qualification certificates, if any, for Merced, the Company and
      each FBO, (ii) copies of the Charter Documents of each Company and each
      FBO, and (iii) resolutions or instruments of Merced authorizing the
      execution, delivery and performance by Merced of this Agreement and the
      transactions contemplated by this Agreement, and an incumbency certificate
      evidencing the authority and specimen signature of each authorized person
      of Merced executing this Agreement and any other certificate provided
      pursuant to this

                                       25
<PAGE>
      Section 6.1, each in form and substance reasonably satisfactory to Buyer
      and certified by an authorized person of Sellers or Merced alone, as
      appropriate, as of the Closing Date. Such certification shall state that
      such Charter Documents and resolutions (or other authorizing actions or
      instruments) have not been amended, modified, revoked or rescinded and are
      in full force and effect on and as of the Closing Date and that all
      company proceedings required to be taken on the part of the Sellers, the
      Company and the FBOs, if any, in connection with the transactions
      contemplated by this Agreement have been duly authorized and taken;

            (k) Company shall have sold, transferred, distributed or otherwise
      disposed of LQA or 100% of the membership interests of LQA and Buyer shall
      have received documentation, in form and substance reasonably satisfactory
      to Buyer, providing for the sale, transfer, distribution or other
      disposition of LQA or 100% of the membership interests of LQA prior to the
      Closing, on terms and conditions that do not impose on Buyer, the Company
      or the FBOs any condition, provision, limitation, obligation, liability
      (whether matured or unmatured) or requirement and such documentation shall
      include an unconditional release by the assignee, transferee or
      distributee of any and all claims, losses, damages, causes of actions or
      charges against the Company and the FBOs with respect to the LQA business
      or arising from, related to, or in connection with such sale, transfer,
      distribution or other disposition of LQA or the membership interests of
      LQA, as applicable.

            (l) PSP's Franchise Agreement with Million Air Interlink, Inc. dated
      as of November 1, 1999, shall have been terminated at Sellers' sole cost
      and expense, on terms and conditions that do not impose on Buyer, the
      Company or the FBOs any continuing conditions, limitations or obligations;

            (m) Sellers shall have delivered to Buyer three (3) business days
      prior to the Closing Date, a written statement setting forth the principal
      amount and the accrued interest owing under the Merced Note, the Phegley
      Note and the Foster Note, duly executed by each Seller;

            (n) Buyer shall have agreed with Sellers upon (i) the amount of the
      Base Net Working Capital against which the Net Working Capital of the FBOs
      as of the Effective Time will be measured to determine any adjustment to
      the Purchase Price and (ii) the principles, specifications and
      methodologies for determining Net Working Capital and Base Net Working
      Capital; and

            (o) There has not been any Material Adverse Change.

      6.2 Limitations on Conditions.

            (a) Notwithstanding anything to the contrary in Section 6.1, Buyer
      acknowledges and agrees that none of the following will be conditions
      precedent to Buyer's obligations to consummate the transactions
      contemplated by this Agreement: (i) any revisions to any of the terms of
      either of the Ground Leases, (ii) availability of, or availability of any
      particular form of, financing to fund the Purchase Price or future

                                       26
<PAGE>
      operations of the FBOs, (iii) any consent from the County of Orange or the
      City of Palm Springs not provided in, or specifically excluded from, the
      definition of Ground Lease Consents, (iv) the occurrence, failure to occur
      or any delay of a Qualified IPO, and (v) any other condition, action or
      event not expressly set forth in Section 6.1.

            (b) Any conditions specified in Section 6.1 may be waived by Buyer
      in writing.

                                   ARTICLE 7

                          CLOSING CONDITIONS - SELLERS

      7.1 Conditions to Closing. The obligation of Sellers to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of
the following conditions on or before the Closing Date:

            (a) Buyer shall have delivered the Purchase Price to Sellers in
      accordance with the terms of this Agreement;

            (b) The representations and warranties set forth in Article 4 shall
      be materially true and correct as of the Closing Date as though made on
      the Closing Date, and Buyer shall have delivered to Sellers a certificate
      to that effect;

            (c) Buyer shall have performed or complied with all of the covenants
      and agreements required under this Agreement, and Buyer shall have
      delivered to Sellers a certificate to that effect;

            (d) No order of any court or administrative agency shall be in
      effect which restrains or prohibits the transactions contemplated hereby,
      and there shall not have been threatened, nor shall there be pending, any
      action or proceeding by or before any court or governmental agency or
      other regulatory or administrative agency or commission challenging any of
      the transactions contemplated by this Agreement or seeking monetary relief
      by reason of the consummation of such transactions;

            (e) Buyer shall have executed and delivered to Sellers original or
      facsimile counterparts of each Transaction Document to which it is a party
      (in accordance with the provision in Section 8.1 permitting the use of
      facsimile copies);

            (f) None of the Ground Leases Consents shall provide for, or be
      conditioned on, the retention, guaranty or assumption by any of Sellers or
      their respective Affiliates, after Closing, of any obligations or
      liabilities with respect to either of the Ground Leases;

            (g) Buyer shall have delivered an opinion of counsel, dated as of
      the Closing Date and addressed to Sellers, substantially in the form set
      forth as EXHIBIT "D", with respect to (i) the due authorization,
      execution, delivery and enforceability of this Agreement as to Buyer and
      (ii) no conflicts between Buyer's obligations under this Agreement and
      Buyer's Charter Documents; and

                                       27
<PAGE>
            (h) Sellers shall have agreed with Buyer upon (i) the amount of the
      Base Net Working Capital against which the Net Working Capital of the FBOs
      as of the Effective Time will be measured to determine any adjustment to
      the Purchase Price and (ii) the principles, specifications and
      methodologies for determining Net Working Capital and Base Net Working
      Capital; and

            (i) Sellers shall have received a good standing certificate and a
      copy of the Charter Documents and resolutions of the Board of Directors
      (or other authorizing actions or instruments) and the stockholders, if
      necessary, of Buyer authorizing the execution, delivery and performance by
      Buyer of this Agreement and the transactions contemplated by this
      Agreement, and an incumbency certificate evidencing the authority and
      specimen signature of each officer of Buyer executing this Agreement and
      any other certificate provided pursuant to this Section 7.1, each in form
      and substance reasonably satisfactory to Sellers and certified by the
      secretary or an assistant secretary of Buyer (or another responsible
      officer of Buyer) as of the Closing Date. Such certification shall state
      that such Charter Documents and resolutions (or other authorizing actions
      or instruments) have not been amended, modified, revoked or rescinded and
      are in full force and effect on and as of the Closing Date and that all
      corporate proceedings required to be taken on the part of the Buyer in
      connection with the transactions contemplated by this Agreement have been
      duly authorized and taken.

      Any condition specified in this Section 7.1 may be waived by Sellers in
writing.

                                   ARTICLE 8

                                 CLOSING MATTERS

      8.1 The Closing. The closing of the transactions contemplated in this
Agreement (the "CLOSING") will take place at the offices of O'Melveny & Myers
LLP in Los Angeles, California at 10:00 a.m. (local time), or at such other
place as Buyer and Sellers may mutually agree, on a Business Day selected by
Buyer and Sellers that is no sooner than three (3) days and no later than five
(5) days after the day on which the last of the conditions to Closing set forth
in Section 6.1 and Section 7.1 (other than those conditions which are only
capable of being satisfied contemporaneous with the Closing) have been satisfied
or waived (the "CLOSING DATE"). The Parties agree that signature pages of
documents required to be delivered at the Closing may be delivered by facsimile,
provided that originally executed documents must be sent via overnight courier
immediately thereafter. The Closing will be effective as of 12:01 a.m. on the
Closing Date (the "EFFECTIVE TIME").

      8.2 Action to Be Taken at the Closing; Payment of Purchase Price. The sale
and delivery of the Membership Interests and the payment of the Purchase Price
shall take place at the Closing. The Purchase Price shall be paid by wire
transfer of immediately available funds in accordance with wiring instructions
delivered by each of Sellers to Buyer before the Closing Date, as follows:

                                       28
<PAGE>
            (a) to Merced an amount in full satisfaction of all outstanding
      principal and interest owed under that certain Amended and Restated
      Promissory Note, dated March 31, 2003, made by the Company in favor of
      Merced (the "MERCED NOTE");

            (b) to Foster an amount in full satisfaction of all outstanding
      principal and interest owed under that certain Promissory Note, dated
      March 31, 2003, made by the Company in favor of Foster (the "FOSTER
      NOTE"); and

            (c) to Phegley an amount in full satisfaction of all outstanding
      principal and interest owed under that certain Promissory Note, dated
      March 31, 2003, made by the Company in favor of Phegley (the "PHEGLEY
      NOTE"; the obligations under the Merced Note, Foster Note and Phegley Note
      to be satisfied in full at the Closing are referred to collectively as the
      "MEMBER DEBT"); and

            (d) the balance of the Purchase Price, to each of the Sellers in the
      percentages set forth opposite each Seller's name on SCHEDULE 8.2.

      8.3 Closing Documents.

            (a) Each of the Sellers shall deliver to Buyer at the Closing the
      following items and documents (collectively, the "TRANSACTION DOCUMENTS"),
      duly executed by each Seller where necessary to make them effective:

                  (i) Assignments of Limited Liability Company Membership
            Interests, each in the form attached hereto as EXHIBIT "B";

                  (ii) the original Merced Note, original Foster Note and
            original Phegley Note, each marked "paid in full and cancelled";

                  (iii) a certificate dated the Closing Date, signed by Foster,
            Phegley and by an authorized person on Merced's behalf, as
            applicable, to the effect that the conditions set forth in Sections
            6.1(a) and (b) have been satisfied;

                  (iv) a certificate(s) dated the Closing Date, signed by
            Foster, Phegley and by an authorized person on Merced's behalf, as
            applicable, in accordance with Section 6.1(j); and

                  (v) such instruments of assumption and other documents or
            instruments as Buyer reasonably may request to effect the
            transaction contemplated hereby, including a release from each of
            the Sellers in the form attached hereto as EXHIBIT "E".

            (b) In addition to paying the Purchase Price in accordance with
      Section 8.2, Buyer shall deliver to Sellers at the Closing the following
      items and documents, duly executed by Buyer where necessary to make them
      effective:

                  (i) Assignments of Limited Liability Company Membership
            Interests, each in the form attached hereto as EXHIBIT "B";

                                       29

<PAGE>
                  (ii)  a certificate dated the Closing Date, signed on its
            behalf by an authorized officer, to the effect that the conditions
            set forth in Sections 7.1(b) and (c) have been satisfied;

                  (iii) a certificate dated the Closing Date, signed on its
            behalf by an authorized officer, in accordance with Section 7.1(h);
            and

                  (iv)  such instruments of assumption and other documents or
            instruments as Sellers reasonably may request to effect the
            transaction contemplated hereby.

                                   ARTICLE 9

                                INDEMNIFICATION

      9.1   Indemnification by Merced. Subject to the limitations set forth in
this Article 9, Merced agrees to indemnify Buyer, the Company and the FBOs, and
their respective stockholders, officers, directors, employees, Affiliates and
agents (collectively, the "BUYER INDEMNIFIED PARTIES") and hold them harmless
against any Losses which any of the Buyer Indemnified Parties may suffer,
sustain or become subject to as a result of or arising from:

            (a)   any inaccuracy in any of the representations or breach of any
      of the warranties of Sellers contained in this Agreement or in any
      exhibits, schedules delivered by or on behalf of Sellers, certificates or
      other documents delivered or to be delivered pursuant to the terms of this
      Agreement or otherwise incorporated in this Agreement;

            (b)   any breach of, or failure to perform, any agreement or
      covenant of Sellers contained in this Agreement;

            (c)   any Claims against any of Buyer Indemnified Parties arising
      out of the actions or inactions of Sellers, the Company or the FBOs prior
      to the Closing with respect to the Membership Interests or the operation
      of the Businesses prior to the Closing to the extent that any such actions
      or inactions are determined by a court or neutral arbitrator to be
      contrary to Law;

            (d)   (i) Taxes paid by Buyer, the Company or the FBOs in respect of
      the Company or the FBOs after the Closing Date which are allocable to
      periods or portions thereof ending before the Closing Date, to the extent
      that such Taxes exceed the amount of such Taxes reflected as current
      liabilities in the Closing Balance Sheet as adjusted by the final Net
      Working Capital adjustment pursuant to Section 2.3; or (ii) LQA; and

            (e)   any action, suit, proceeding, judgment, order or governmental
      investigation in which any of the Sellers, the Company or the FBOs were
      named as a party thereto prior to the Closing Date.

      9.2   Indemnification by Buyer. Subject to the limitations set forth in
this Article 9, Buyer agrees to indemnify Sellers and, as applicable, their
respective members, manager, officers, directors, employees, Affiliates and
agents (collectively, the "SELLER INDEMNIFIED

                                       30
<PAGE>
PARTIES"), and hold them harmless against any Losses which any of Seller
Indemnified Parties may suffer, sustain or become subject to as a result of or
arising from (a) any inaccuracy in any of the representations or breaches of any
of the warranties of Buyer contained in this Agreement, (b) any breach of, or
failure to perform, any agreement or covenant of Buyer contained in this
Agreement, (c) any Claims of the type described on Schedule 9.2(c); and (d) any
Claims of the type described on Schedule 9.2(d); provided, that, in no event
shall (x) Buyer be liable to the Seller Indemnified Parties for any Losses that
arise from material inaccuracies in, or material omissions from, the Financial
Statements attached to Schedule 3.6, and (y) the foregoing be deemed (i) to
impose on Buyer any liability for any Losses for which Merced has an
indemnification obligation under Section 9.1 or (ii) to otherwise limit Merced's
indemnification obligations under Section 9.1.

      9.3   Method of Asserting Claims.

            (a)   In the event that any of the Indemnified Parties is made a
      defendant in or party to any Claim, the Indemnified Party shall give the
      Indemnifying Party written notice thereof within 30 days of its knowledge
      of the same. The failure to give such timely notice shall not affect any
      Indemnified Party's right to indemnification unless (and then only to the
      extent that) such failure or delay has materially and adversely affected
      the Indemnifying Party's ability to defend successfully a Claim; provided,
      however, that an Indemnifying Party shall under no circumstances be
      responsible for the legal expenses incurred by an Indemnified Party in
      responding to a Claim prior to the date of delivery of the Indemnified
      Party's notice thereof to the Indemnifying Party. The Indemnifying Party
      shall be entitled to contest and defend such Claim provided it diligently
      contests and defends such Claim. Notice of the intention so to contest and
      defend shall be given by the Indemnifying Party to the Indemnified Party
      within fifteen (15) Business Days after the Indemnified Party's notice of
      such Claim (but, in all events, at least five (5) Business Days prior to
      the date that an answer to such Claim is due to be filed taking into
      account any extensions to file a responsive pleading obtained by either
      Party). Such contest and defense shall be conducted by reputable attorneys
      employed by the Indemnifying Party at its sole cost and expense; provided,
      however, that if requested by the Indemnifying Party, the Indemnified
      Party will, at the reasonable cost and expense of the Indemnifying Party,
      cooperate with the Indemnifying Party and its counsel in contesting any
      Claim that the Indemnifying Party elects to contest. The Indemnified Party
      shall be entitled at any time, at its own cost and expense (which expense
      shall not constitute a Loss), to participate in such contest and defense
      and to be represented by attorneys of its or their own choosing; provided,
      however, that if the Indemnifying Party does not or ceases to conduct the
      defense of such Claim actively and diligently, (i) the Indemnified Party
      may defend against, and, with the prior written consent of the
      Indemnifying Party (which consent will not be unreasonably withheld,
      conditioned or delayed), consent to the entry of any judgment or enter
      into any settlement with respect to, such Claim, (ii) the Indemnifying
      Party will reimburse the Indemnified Party promptly and periodically for
      the costs of defending against such Claim, including reasonable attorneys'
      fees and expenses and (iii) the Indemnifying Party will remain responsible
      for any Losses the Indemnified Party may suffer as a result of such Claim
      to the full extent provided in this Section. If the Indemnified Party
      elects to participate in such defense, the Indemnified Party shall
      reasonably cooperate with the Indemnifying Party in the

                                       31
<PAGE>
      conduct of such defense. Neither the Indemnified Party nor the
      Indemnifying Party may concede, settle or compromise any Claim without the
      consent of the other Party, which consent shall not be unreasonably
      withheld, conditioned or delayed. Notwithstanding the foregoing, in the
      event the Indemnifying Party fails or is not entitled to contest and
      defend a claim, the Indemnified Party shall be entitled to contest, defend
      and settle such Claim in such manner and on such terms as the Indemnified
      Party may reasonably deem appropriate, and the Indemnified Party shall be
      entitled to recover from the Indemnifying Party the amount of any
      settlement or judgment (subject to the prior written consent of the
      Indemnifying Party in the case of a settlement, which consent shall not be
      unreasonably withheld, conditioned or delayed) and, on an ongoing basis,
      all reasonable costs and expenses of the Indemnified Party with respect
      thereto including interest from the date such costs and expenses were
      incurred. If at any time, in the reasonable opinion of the Indemnified
      Party, notice of which shall be given in writing to the Indemnifying
      Party, any Claim seeks relief which (i) may result in criminal proceedings
      or (ii) could reasonably be expected to have a material adverse effect on
      any Indemnified Party, the Indemnified Party shall have the right to
      control or assume (as the case may be) the defense of any such Claim and
      the amount of any judgment or settlement and the reasonable costs and
      expenses of defense shall be included as part of the indemnification
      obligations of the Indemnifying Party hereunder. If the Indemnified Party
      should elect to exercise such right, the Indemnifying Party shall have the
      right to participate in, but not control, the defense of such Claim at the
      sole cost and expense of the Indemnifying Party. Notwithstanding anything
      to the contrary in this Section, if the named parties to any action or
      proceeding (including any impleaded parties) include both the Indemnifying
      Party and the Indemnified Party and the Indemnified Party has been advised
      in a written opinion by counsel (which written advice shall be provided to
      the Indemnifying Party) that a conflict of interest would exist or is
      likely to arise in the conduct of such action or proceeding if the
      Indemnifying Party and the Indemnified Party are represented by joint
      counsel, then the Indemnified Party may elect to retain separate counsel
      of its own choosing, with the Indemnifying Party to bear the reasonable
      cost and expense of such counsel.

            (b)   In the event any Indemnified Party should have a claim against
      any Indemnifying Party that does not involve a Claim, the Indemnified
      Party shall deliver a notice of such claim within 90 days of its knowledge
      of such claim to the Indemnifying Party; provided, that, without limiting
      the generality of Section 9.5, the failure to give notice timely shall not
      affect any Indemnified Party's right to indemnification unless (and then
      only to the extent that) such failure or delay materially and adversely
      affects the Indemnifying Party's rights. Included in such written notice
      will be a statement of the amount of the Loss, a brief explanation of the
      Loss, and instructions for payment by certified or bank cashier's check or
      by wire transfer of immediately available funds. If the Indemnifying Party
      notifies the Indemnified Party that it does not dispute the claim
      described in such notice, the Loss in the amount specified in the
      Indemnified Party's notice shall be deemed a liability of the Indemnifying
      Party and the Indemnifying Party shall pay the amount of such Loss to the
      Indemnified Party on demand.

      9.4   Limits on Indemnification.

                                       32
<PAGE>
            (a)   With respect to any claims arising under Section 9.1 (other
      than Section 9.1(d) and (e)), an Indemnified Party shall not be entitled
      to indemnification until the aggregate Losses suffered by the Indemnified
      Party exceed $500,000.00 (the "THRESHOLD"), whereupon Merced shall be
      liable to indemnify the Indemnified Party under this Article 9 for all
      Losses incurred to the first dollar; provided, however, that such
      Threshold shall not apply to any claims arising under Section 9.1(a) that
      are a result of a breach by Sellers of any representations in Section
      3.4(b) (regarding no undisclosed debt), Section 3.5 (regarding ownership
      of Membership or FBO Interests), Section 3.9 (regarding Taxes) and Section
      3.14 (regarding employee benefit plans), or based on fraud, willful
      misconduct or intentional misrepresentation.

            (b)   For purposes of this Article 9, in computing individual or
      aggregate amount of claims, the amount of any insurance proceeds and any
      indemnity, contribution or similar payment actually received by the
      Indemnified Party from any third party with respect thereof, shall be
      deducted from each such claim. Each Indemnified Party shall use
      commercially reasonable efforts to pursue all of its remedies against
      applicable insurers, indemnitors and contributors.

            (c)   The maximum aggregate liability of Merced to indemnify the
      Buyer Indemnified Parties under this Article 9 shall be $7,500,000.00 (the
      "CAP"); provided, however, that, the Cap shall not apply and Merced's
      maximum aggregate liability to indemnify the Buyer Indemnified Parties
      under this Article 9 shall be an amount equal to the Purchase Price, with
      respect to any claims arising under Section 9.1(a) that are a result of a
      breach by Sellers of any representations in Sections 3.1, 3.2, 3.3,
      3.4(b), 3.5, 3.8(d) or 3.9, any claims arising under Section 9.1(d), and
      any claims based on fraud, willful misconduct or intentional
      misrepresentation.

            (d)   Prior to a Qualified IPO, the maximum aggregate liability of
      Buyer to indemnify the Seller Indemnified Parties under this Article 9
      shall be $53,350,000. Immediately upon and thereafter there shall be no
      limit on Buyer's maximum aggregate liability to indemnify the Seller
      Indemnified Parties under this Article 9.

            (e)   Notwithstanding anything to the contrary in this Section 9.4,
      in no event shall the aggregate liability of Sellers under this Agreement
      and in connection with the transactions contemplated hereby exceed a total
      amount equal to the Purchase Price.

            (f)   This Article 9 shall be the sole and exclusive remedy of
      Sellers and Buyer for breaches of representations, warranties, covenants
      and obligations under this Agreement, except as otherwise specifically
      provided herein. For purposes of calculating the magnitude of any Loss
      incurred by a Party arising out of or resulting from any breach of a
      representation, warranty, covenant or agreement by another Party, any
      references to materiality qualifications shall not be taken into account;
      provided, however, Losses that are associated with events or occurrences
      that do not individually breach such representation, warranty, covenant or
      agreement (when read to include such materiality qualifications), shall
      not be included in the calculation of such Losses.

                                       33
<PAGE>
      9.5   Survival.

            (a)   The right of Buyer or Sellers to initiate any action for
      breach of any representation, warranty, covenant or obligation contained
      in this Agreement and to demand and receive any indemnification in respect
      thereof or otherwise pursuant to this Article 9 shall survive the Closing
      and terminate and expire eighteen (18) months after the Closing Date (the
      "EXPIRATION DATE"), except as provided in Section 9.5(b) or Section
      9.5(c). If a claim for indemnification is made in good faith by the
      aggrieved Party against the other Party and notice of such claim is
      provided to such other Party in writing prior to the Expiration Date
      (which notice shall describe in reasonable detail the basis of such
      claim), the rights of the aggrieved Party under this Article 9 shall
      survive the Expiration Date with respect to such claim until such claim
      has been finally resolved. If a Party fails to provide written notice to
      the other Party of an alleged breach of any representation, warranty,
      covenant or obligation contained in this Agreement prior to the Expiration
      Date, the facts and circumstances on which such alleged breach is founded
      shall be deemed for all purposes not to be a breach or a proper basis for
      any claim whatsoever with respect to such representation, warranty,
      covenant or obligation.

            (b)   Notwithstanding the terms of Section 9.5(a), the following
      provisions, and the indemnification obligations under Section 9.1 with
      respect to breaches thereof, shall not terminate and expire on but shall
      survive the Expiration Date until, 60 days after the expiration of the
      longest relevant federal or state statute of limitations period with
      respect to the matters addressed in such provisions, or two years after
      the Closing Date, whichever is longer: Sections 3.1, 3.2, 3.3, 3.5,
      3.8(d), 3.9 and 3.14.

            (c)   Notwithstanding the terms of Section 9.5(a), Buyer's
      obligation to indemnify the Seller Indemnified Parties under this Article
      9 with respect to any claims arising under Section 9.2(d) shall survive
      the Expiration Date until the fifth (5th) anniversary of the Closing Date,
      and, with respect to any claims arising under Section 9.2(c) shall not
      terminate and expire on but shall survive the Expiration Date until, 60
      days after the expiration of the longest relevant federal or state statute
      of limitations period with respect to such matters, or two years after the
      Closing Date, whichever is longer.

      9.6   Exclusive Remedy. Except for claims involving fraud, willful
misconduct or intentional misrepresentation, upon and following the Closing, the
exclusive remedy for Buyer under this Agreement shall be the indemnification
obligations of Sellers as set forth in this Article 9, and this Article 9 shall
be deemed to preclude or otherwise limit the exercise of any other rights or
pursuit of other remedies (in law or equity) by Buyer against Sellers and its
Affiliates for the breach of this Agreement or with respect to any
misrepresentation by Sellers.

      9.7   Offset. If any matter as to which an Indemnified Party may be able
to assert a claim hereunder is pending or unresolved at the time any payment,
other than the Purchase Price, is due from one Party to the other, such
Indemnified Party shall have the right, in addition to other rights and remedies
(whether under this Agreement or applicable Law), to withhold or cause to be
withheld from such payment an amount or value equal to the amount of the claim
(provided it has been or is then asserted in writing against the applicable
Party in accordance

                                       34
<PAGE>
with the provisions of this Article 9) until such matters are resolved. If it is
finally determined that such claims are covered by this Article, the amount of
such claims may be offset against the retained payments and the remainder, if
any, shall be delivered to the applicable Party.

                                  ARTICLE 10

                                  TERMINATION

      10.1  Termination.

            (a)   This Agreement may be terminated at any time prior to the
      Closing:

                  (i)   by mutual written consent of Buyer and Sellers; or

                  (ii)  by either Buyer or Sellers if the other Party is in
            material breach of any representation, warranty or covenant set
            forth in this Agreement and such breach, if capable of cure, is not
            cured within 30 days after written notice thereof to such other
            Party.

            (b)   If the Closing has not occurred prior to December 31, 2004,
      this Agreement will automatically terminate at 5:00 p.m. Eastern Standard
      Time on such date, unless otherwise agreed in writing by the Parties.

      10.2  Effect of Termination. In the event of termination of this Agreement
as provided above, this Agreement shall forthwith become void, and there shall
be no liability on the part of Sellers or Buyer except as otherwise expressly
stated herein; provided, however, that this Section 10.2 shall not release (a)
any Party from liability resulting from a breach by such Party under this
Agreement, or (b) any Party from its obligations under Article 9 and Sections
11.1, 11.2, 11.4, 11.7, 11.8, 11.10, 12.2, 12.3, 12.6 and 12.10.

                                   ARTICLE 11

                             ADDITIONAL AGREEMENTS

      11.1  Press Release and Announcements. Except to the extent required by
law, in which case prior notice shall be given to the other Party, no press
release related to this Agreement or the transaction contemplated hereby, or
other announcements to the employees, customers or suppliers of the Company or
either of the FBOs, shall be issued prior to the Closing without the joint
approval of Buyer and the Sellers' Representative, which approval will not be
unreasonably withheld, conditioned or delayed. Without limiting the generality
of the foregoing, Buyer further agrees not to, directly or indirectly, contact,
correspond with, or make any announcement to the County of Orange or the City of
Palm Springs without Sellers' express, prior written consent to each such
contact or piece of correspondence, which consent will not to be unreasonably
withheld, conditioned or delayed.

      11.2  Confidentiality. Buyer and Sellers acknowledge the continued
effectiveness of that certain Confidentiality Agreement entered into by each of
them as of March 11, 2004, as may be modified from time to time by written
consent (the "CONFIDENTIALITY AGREEMENT"). In

                                       35
<PAGE>
addition to and notwithstanding anything to the contrary in the Confidentiality
Agreement, prior to the Closing, Buyer shall not disclose any financial or other
information regarding the Company or either FBO without Sellers' express, prior
written consent as to the exact content, form, location and extent of each such
disclosure, which consent will not be unreasonably withheld, delayed or
conditioned. Notwithstanding anything to the contrary contained in this
Agreement or the Confidentiality Agreement, but subject to Section 11.10 hereof,
Buyer and its Affiliates shall have the right to use and disclose in Qualified
IPO Disclosure, in such form as they reasonably determine, the following
information (which information shall not be subject to the Confidentiality
Agreement to the extent used and disclosed pursuant to this Section 11.2): (i)
the Financial Statements attached to SCHEDULE 3.6, (ii) the material terms of
the Ground Leases (including any additional provisions of such Ground Leases to
the extent required by the Securities and Exchange Commission, which shall be
deemed to be "material"), (iii) the terms of this Agreement and (iv) the
information regarding the Company or either FBO set forth in the statements
prepared by Buyer and attached to SCHEDULE 11.2; provided, however, that Buyer
shall likewise disclose that the content of any description of the Businesses
included in Buyer's (or its Affiliates') disclosure related to the Qualified IPO
has been prepared by and is the responsibility of Buyer and its Affiliates, and
Buyer shall not remove this additional disclosure from the disclosure related to
the Qualified IPO unless required to do so by applicable Law or unless the
Sellers consent to such removal (which consent shall not be unreasonably
withheld).

      11.3  Remittances. All remittances, mail and other communications relating
to the Company or the FBOs received by Sellers at any time after the Closing
Date shall be immediately turned over to Buyer.

      11.4  Cooperation to Obtain Consents. From the date of this Agreement
through the Closing Date, the Parties shall consult and cooperate with each
other and use commercially reasonable efforts to (a) obtain all required
governmental and third party consents, including, without limitation, the Ground
Lease Consents, it being understood that Buyer shall promptly provide such
financial statements and other information requested by the landlords or their
advisors in connection with seeking the Ground Lease Consent, (b) make any
required filings or submissions with governmental authorities, and (c) cause the
conditions precedent to Closing set forth in Section 6.1 and Section 7.1 to be
satisfied, all as may be necessary for the consummation of the Closing and the
transactions contemplated by this Agreement. Notwithstanding the foregoing, in
the event that the Closing does not occur as a result of a failure to obtain any
Ground Lease Consent, (i) the Seller shall have no liability whatsoever for such
failure to obtain such Ground Lease Consent so long as the Seller did not
otherwise commit a breach of any of its obligations under this Agreement that
could reasonably be considered to have contributed to such failure and (ii) if
the Sellers used commercially reasonable efforts to seek the Ground Lease
Consents and such Ground Lease Consents were not obtained because of the request
for approval of Buyer's possible subsequent sale or transfer of its interests
under this Agreement to an Affiliate of Buyer, Buyer shall reimburse the Sellers
for all out-of-pocket expenses incurred in connection with seeking such Ground
Lease Consents (including attorney fees) up to a maximum of $225,000.

                                       36
<PAGE>
      11.5  Tax Matters.

            (a)   Sellers, Buyer, the Company and the FBOs shall, unless
      prohibited by applicable law, cause the taxable period of the Company and
      the FBOs to end as of the date preceding the Closing Date. For purposes of
      this Agreement, Taxes incurred by the Company or the FBOs with respect to
      a taxable period that includes but does not end on the Closing Date, shall
      be allocated to the portion of the period ending on the date preceding the
      Closing Date (a) except as provided in (b) and (c) below, to the extent
      feasible, on a specific identification basis, according to the date of the
      event or transaction giving rise to the Tax, and (b) except as provided in
      (c) below, with respect to periodically assessed ad valorem Taxes and
      Taxes not otherwise feasibly allocable to specific transactions or events,
      in proportion to the number of days in such period occurring before the
      Closing Date compared to the total number of days in such taxable period,
      and (c) in the case of any Tax based upon or related to income or
      receipts, in an amount equal to the Tax which would be payable if the
      relevant taxable period ended on the date preceding the Closing Date. Any
      credits relating to a taxable period that begins before and ends after the
      Closing Date shall be taken into account as though the relevant taxable
      period ended on the date preceding the Closing Date. All determinations
      necessary to give effect to the foregoing allocations shall be made in a
      manner consistent with prior practices of the Company and the FBOs.

            (b)   Sellers shall prepare all Tax Returns for taxable periods
      ending on or prior to the Closing Date. After the Closing, Sellers shall,
      and shall cause its Affiliates to, cooperate fully with Buyer in the
      preparation of all Tax Returns relating to periods beginning before, but
      ending after, the Closing Date and shall provide or cause to be provided
      to Buyer, at Buyer's sole cost and expense, any records and other
      information reasonably requested by Buyer in connection therewith as well
      as reasonable access to, and the reasonable cooperation of, Sellers'
      accountant. Sellers shall be responsible for and shall have the right to
      control any Tax investigation, audit or other proceeding related to either
      of the Company and the FBOs for periods ending on or prior to the Closing
      Date. Sellers shall use commercially reasonable efforts to resolve any
      such Tax investigation, audit or other proceeding. Buyer, the Company
      and/or the FBOs shall provide Sellers with any information or
      correspondence provided to Buyer, the Company and/or the FBOs by any
      taxing authority with respect to any taxable period ending before the
      Closing Date. After the Closing, Sellers shall, and shall cause its
      Affiliates to, cooperate fully with Buyer in connection with any Tax
      investigation, audit or other proceeding relating to either of the
      Businesses for any periods ending after the Closing Date. Any information
      obtained pursuant to this Section 11.5(b) or pursuant to any other Section
      hereof providing for the sharing of information or the review of any Tax
      Return or other schedule relating to Taxes shall be subject to the terms
      of the Confidentiality Agreement.

            (c)   Sellers shall be responsible for the August 2002 taxes
      liability associated with the use and sales tax described on Schedule 3.9.

      11.6  Employee Matters. Buyer hereby agrees that Eric Affeldt, the current
President of the Company and each of the FBOs ("AFFELDT"), will continue to be
employed by Merced or an

                                       37
<PAGE>
Affiliate after Closing. Merced agrees to use its commercially reasonable
efforts to cause Affeldt to be reasonably available to consult with Buyer's
replacement management during the period between the Effective Date and the
later of (x) the Closing Date and (y) ninety (90) days after the Effective Date
at no additional expense to Buyer; provided, that Affeldt remains an employee of
Merced or an Affiliate during such period of time. Buyer and Merced will assess
the need for the continuation of such consultation services after Closing and,
if the Parties determine that such consultation services remain necessary, the
Parties will use commercially reasonable efforts to negotiate a mutually
acceptable agreement to govern the terms and conditions of such services,
including, without limitation, the fees that Buyer would pay for such services.

      11.7  Further Assurances. Each Party agrees to execute and deliver such
further documents and instruments and to take such further actions after the
Closing as may be necessary or desirable and reasonably requested by the other
Party to give effect to the transactions contemplated by this Agreement,
including, at the sole cost and expense of the Buyer, a Qualified IPO.

      11.8  Arbitration. Any controversy, dispute or claim under, arising out
of, in connection with or in relation to this Agreement, including the
negotiation, execution, interpretation, construction, coverage, scope,
performance, non-performance, breach, termination, validity or enforceability of
this Agreement or this Section 11.9 will be determined by arbitration conducted
in Los Angeles, California under the rules of the American Arbitration
Association ("AAA").

            (a)   The arbitration may be initiated by a Party's giving twenty
      (20) calendar days' written notice to the other Party of its intention to
      do so. If the disputing Parties are unable to agree on a single arbitrator
      within thirty (30) calendar days of such notice, each disputing Party will
      appoint its own arbitrator within ten (10) calendar days thereafter. If a
      disputing Party fails to appoint an arbitrator within such time, an
      arbitrator will be appointed for such Party by AAA. The two arbitrators
      appointed by such parties will appoint, within ten (10) calendar days
      after the appointment of the second arbitrator, a third arbitrator who
      will act as chairperson; if the two appointed arbitrators fail to do so
      within such time, the third arbitrator will be appointed by AAA within the
      next ten (10) calendar days and will act as chairperson. The arbitrators
      shall decide any matter before them by majority vote in accordance with
      the wording of this Agreement and the arbitration Laws of the State of
      California. The arbitrators will proceed promptly and diligently and will
      render their decision either within ninety (90) calendar days after the
      appointment of all arbitrators or by such later date upon which the
      Parties may agree.

            (b)   The Parties expressly agree that special and punitive damages
      will not be applicable or awarded, in any circumstance, with respect to
      any dispute that may arise among the Parties in connection with this
      Agreement. The arbitration will be final and binding upon the Parties to
      the maximum extent permitted by Law. Judgment upon any award rendered by
      the arbitrators may be entered in any court having jurisdiction.

      11.9  Non-Competition. To induce Buyer to enter into this Agreement,
Merced agrees that it will not, and will cause its Affiliates not to:

                                       38
<PAGE>
            (a)   at the Palm Springs International Airport in Palm Springs,
      California or at John Wayne Airport in Santa Ana, California, as principal
      or agent, directly or indirectly, through any corporation, limited
      liability company, partnership, association, joint venture or other
      entity, purchase, invest in, fund or otherwise engage in a fixed base
      operation business for a period of twenty-four (24) months after the
      Closing Date;

            (b)   hire or solicit any persons who are, or within the six (6)
      month period immediately preceding Merced's or its Affiliate's action
      were, employees of either FBO (excluding Yvonne Kassler) for a period of
      twenty-four (24) months after the Closing Date; or

            (c)   hire or solicit Yvonne Kassler for a period of three (3)
      months after the Closing Date.

      Except as required by law or as may be required to comply with the
internal reporting procedures of Merced for the benefit of its investors, from
and after the Closing, Sellers shall, and shall cause their respective
Affiliates to, keep confidential and not disclose to any other person, the
material terms of this Agreement (including the Purchase Price).

      11.10 IPO Cooperation. In connection with a potential Qualified IPO,
Sellers agree to assist Buyer and its Affiliates (at Buyer's sole cost and
expense) prior to the Closing Date, to enable Buyer's Affiliate to satisfy the
underwriter's reasonable due diligence requirements in connection with the
Qualified IPO, to enable Buyer's Affiliate to prepare required Qualified IPO
Disclosure (including financial statements and related notes in compliance with
federal securities Laws), and to enable the Company's and the FBOs' accountants
to consent to the inclusion of such financial statements in a filing with the
Securities and Exchange Commission on Form S-1 or a subsequent annual, quarterly
or other report, as applicable; provided, however, under no circumstances shall
Merced be required to provide information relating to itself or its financial
statements. The Sellers undertake no responsibility for the accuracy,
completeness or fairness of any Qualified IPO Disclosure and express no opinion
with respect thereto. Moreover, in no circumstance shall Sellers have any
liability to any Buyer Indemnified Party or any Affiliate of any Buyer
Indemnified Party for any Losses that any Buyer Indemnified Party or any of
their respective Affiliates may suffer arising from any information set forth in
such Qualified IPO Disclosure or from Buyer's or any Affiliate's failure to
comply in any manner with applicable securities Laws except in each case to the
extent such Losses are otherwise indemnifiable under Article 9 of this
Agreement. In connection with the Qualified IPO, Sellers shall not be required
to provide any comfort to the Buyer or any third party regarding any Qualified
IPO Disclosure. The Closing shall not be conditioned upon, and the Closing Date
shall not be delayed in connection with, any aspect of a Qualified IPO. Whether
or not the Closing occurs or this Agreement is terminated (except for a
termination on account of a default by Sellers hereunder), the Buyer shall
reimburse the Sellers for all accounting fees and related expenses incurred in
connection with the preparation of SEC compliant financial statements and
related notes (other than such costs associated with a standard audit of the
financial statements of PSP for the period of time between October 1, 2001 and
August 14, 2002) prepared for such Qualified IPO Disclosure or otherwise
requested by Buyer.

                                       39
<PAGE>
                                  ARTICLE 12

                                 MISCELLANEOUS

      12.1  Amendment and Waiver. This Agreement may be amended, and any
provision of this Agreement may be waived; provided that any such amendment or
waiver shall be binding on the Party against whom the amendment is being
asserted only if such amendment or waiver is set forth in a writing executed by
such Party against whom the amendment is being asserted and then only to the
specific purpose, extent and instance so provided.

      12.2  Notices. All notices, demands and other communications to be given
or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when personally delivered, when
mailed by certified mail, return receipt requested, when sent by facsimile with
confirmation of receipt received, or when delivered by overnight courier with
executed receipt. Notices, demands and communications to Sellers or Buyer shall,
unless another address is specified in writing in accordance herewith, be sent
to the address indicated below:

            Notices to Sellers:

                  Merced Partners Limited Partnership
                  601 Carlson Parkway, Suite 200
                  Minnetonka, Minnesota 55305
                  Attn:  Coleen McMahon
                  Tel: (952) 476-7221
                  Fax: (952) 476-7202

                  Craig Foster
                  c/o Newport Jet Center
                  19711 Campus Drive, #100
                  Santa Ana, CA  92707

                  Michael Phegley
                  c/o Newport Jet Center
                  19711 Campus Drive, #100
                  Santa Ana, CA  92707

                  with a copy to:

                  O'Melveny & Myers LLP
                  400 South Hope Street
                  Los Angeles, California 90071
                  Attn: Eric Richards, Esq.
                  Tel: (213) 430-6552
                  Fax: (213) 430-6407

                                       40
<PAGE>
            Notices to Buyer:

                  Macquarie Securities (USA) Inc.
                  North America Capital Holding Company
                  600 Fifth Avenue, 21st Floor
                  New York, New York  10020
                  Attention:  Murray Bleach, President
                  Tel: (212) 548-6531
                  Fax: (212) 399-8931

                  with a copy to:

                  Shaw Pittman LLP
                  1650 Tysons Blvd., Suite 1400
                  McLean, Virginia 22102
                  Attention:  Craig E. Chason, Esq.
                  Tel: (703) 770-7947
                  Fax: (703) 770-7901

      12.3  Assignment. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the Parties and their respective
successors and assigns. Neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assignable by either Party without the prior
written consent of the other Party; provided, however, that Buyer may assign in
whole its right, title and interest under this Agreement to any of its
Affiliates and such assignment shall release Buyer (but not such assignee) from
its indemnification and other obligations hereunder provided that Macquarie Bank
Limited has consented to such assignment and acknowledged its obligations to
guaranty the assignee's obligations hereunder as though such assignee were the
Buyer; provided, further, that the Buyer may assign in whole its right, title
and interest under this Agreement to a public entity that is the subject of a
Qualified IPO without the prior consent of the Sellers; however, such assignment
shall not release Buyer from its indemnification and other obligations hereunder
unless such Qualified IPO resulted in such public entity having a market
capitalization (based on all issued and outstanding shares of capital stock) of
not less than $400,000,000. Notwithstanding anything to the contrary, the shares
of the Buyer may be sold or otherwise transferred to Macquarie Infrastructure
Assets Trust or any of its Affiliates without the prior consent of the Seller.

      12.4  Captions. The captions used in this Agreement are for convenience of
reference only and do not constitute a part of this Agreement and shall not be
deemed to limit, characterize or in any way affect any provision of this
Agreement, and all provisions of this Agreement shall be enforced and construed
as if no caption had been used in this Agreement.

      12.5  Complete Agreement; Schedules and Exhibits. Each schedule and
exhibit delivered pursuant to the terms of this Agreement shall be in writing
and shall constitute a part of this Agreement, although schedules need not be
attached to each copy of this Agreement. This Agreement, together with such
schedules and exhibits, and the documents referred to herein contain the
complete agreement between the Parties and supersede any prior understandings,

                                       41
<PAGE>
agreements or representations by or between the Parties, written or oral, which
may have related to the subject matter hereof in any way.

      12.6  Governing Law. The Laws of the State of California, without regard
to conflict of law doctrines, govern all questions concerning the construction,
validity and interpretation of this Agreement and the performance of the
obligations imposed by this Agreement.

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

      12.8  Third Party Beneficiaries. Nothing in this Agreement is intended or
will be construed to entitle any person or entity, other than Buyer and Sellers
or their respective permitted transferees and assigns, to any claim, cause of
action, remedy or right of any kind.

      12.9  Severability. The validity, legality or enforceability of the
remainder of this Agreement will not be affected even if one or more of the
provisions of this Agreement will be held to be invalid, illegal or
unenforceable in any respect.

      12.10 Expenses. Except as otherwise expressly set forth in this Agreement,
each Party shall, whether or not the transactions contemplated hereby are
consummated, pay all costs and expenses incurred by or on behalf of such Party
in connection with the negotiation, execution and Closing of this Agreement and
the transactions contemplated hereby and its investigation and evaluation of the
Membership Interests, the FBO Interests, the Company and the FBOs.

      12.11 Sellers' Representative. By execution and delivery of this
Agreement, each Seller, for the heirs, executors, legal representatives,
successors and assigns of each Seller, irrevocably constitutes and appoints
Merced (the "SELLERS' REPRESENTATIVE"), as his/her/its true and lawful agent for
the purposes described in this Section 12.11. The Sellers' Representative is
hereby authorized to (i) to receive all payments of the Purchase Price on behalf
of the Sellers and to distribute the same to the Sellers pro rata in accordance
with their respective Membership Interests, (ii) to take all action necessary in
connection with the defense and/or settlement of any claims for which the
Sellers may be required to indemnify the Buyer pursuant to Article 9 hereof,
(iii) to take all action necessary in seeking indemnification from the Buyer
pursuant to Article 9 hereof, (iv) to give and receive all notices required to
be given under this Agreement on behalf of the Sellers, and (v) to execute and
deliver such instruments of conveyance, agreements, releases or other document
and to take such additional actions by or on behalf of the Sellers as the
Sellers' Representative, in its sole discretion, may determine to be necessary
or appropriate in connection with the transactions contemplated by the terms and
provisions of this Agreement. The Sellers' Representative will be entitled to
retain attorneys, accountants and such other advisers or assistants as it
determines, in its discretion, to be necessary or appropriate in connection with
the performance of such duties hereunder. All reasonable costs and expenses
incurred by Sellers' Representative in connection with the performance its
duties will be paid out of the Purchase Price received by it and deducted
therefrom prior to the distribution thereof to the Sellers. The appointment of
the Sellers' Representative shall be deemed coupled with an interest and shall
be irrevocable, and Buyer and any other person may conclusively and absolutely
rely, without inquiry, upon any action of the Sellers' Representative on behalf
of the

                                       42
<PAGE>
Sellers in all matters in which it has been granted authority pursuant to this
Section. The Sellers' Representative shall act for the Sellers in all matters
set forth in this Agreement. All actions, decisions and instructions of the
Sellers' Representative taken, made or given pursuant to the authority granted
to the Sellers' Representative pursuant to this Section shall be final,
conclusive and binding upon all Sellers and all actions, decisions and
instructions of the Sellers' Representative taken, made or given pursuant to the
authority granted to such Sellers' Representative pursuant to this Section shall
be conclusive and binding upon all individual Sellers. Buyer, its officers,
directors, employees, agents and affiliates shall be able to rely exclusively on
the instructions, decisions and actions of the Sellers' Representative. The
provisions of this Section are independent and severable.

                           [Signatures on Next Page]

                                       43
<PAGE>
IN WITNESS WHEREOF, each of the Parties have caused this Agreement to be duly
executed by duly authorized individuals as of the Effective Date.

      SELLERS:          MERCED PARTNERS LIMITED PARTNERSHIP

                               By:  Global Capital Management, Inc., its General
                                    Partner

                                    By: /s/ Stan Lester
                                        ________________________
                                       Name: Stan Lester
                                       Its: Vice President

                                    MICHAEL PHEGLEY

                                    /s/ Michael Phegley
                                    ____________________________

                                    CRAIG FOSTER

                                    /s/ Craig Foster
                                    ____________________________

      BUYER:            NORTH AMERICA CAPITAL HOLDING COMPANY

                                    By: /s/ MURRAY BLEACH
                                        ________________________
                                       Name: MURRAY BLEACH
                                       Its: PRESIDENT

                                    By: /s/ CHRISTOPHER LESLIE
                                        ________________________
                                       Name: CHRISTOPHER LESLIE
                                       Its: VICE PRESIDENT
<PAGE>
                                    GUARANTY

      Macquarie Bank Limited ("Guarantor"), an Australian corporation,
guarantees the full and complete performance of all of the payment obligations
of the Buyer to the Sellers under and pursuant to the foregoing Membership
Interest Purchase Agreement, dated as of August __, 2004 (the "Purchase
Agreement") of whatsoever nature (collectively, the "Guaranteed Obligations");
provided that, Guarantor's liability hereunder shall not exceed, and in no event
shall Guarantor be obligated to expend more than $53,350,000 pursuant to this
Guaranty. Guarantor's obligation to guaranty Buyer's obligations or, in the
event that the Buyer has assigned the Purchase Agreement, such assignee's
obligations, under the Purchase Agreement (other than under subsections 9.2(c)
and (d)) shall terminate on the earlier of (i) December 31, 2004 (unless the
Termination Date is extended with the consent of the Guarantor), or (ii) the
Closing, except as to any demand for performance of this Guaranty which has been
made prior to such date as to which this Guaranty shall remain applicable;
provided, however, the Guarantor's obligation to guaranty Buyer's, or, in the
event that the Buyer has assigned the Purchase Agreement, such assignee's
obligations, under subsections 9.2(c) and (d) of the Purchase Agreement shall
terminate on the earlier of (i) the second anniversary of the Closing Date (or,
if the Closing has not occurred by the Termination Date, the second anniversary
of the Effective Date) or (ii) the first date upon which the following
conditions have been satisfied: (x) securities are sold to the public in a
Qualified IPO, which results in a public entity having a market capitalization
(based on all of the issued and outstanding shares of capital stock) of not less
than $400,000,000 and (y) the capital stock of Buyer is sold or otherwise
transferred to, or the Buyer assigns in whole its right, title and interest
under the Purchase Agreement to, such public entity or a subsidiary thereof (if
and only if, in the case of a sale, transfer or assignment to a subsidiary, such
public entity shall have guaranteed such subsidiary's obligations under
subsections 9.2(c) and (d) of the Purchase Agreement and such guaranty shall be
in form and substance reasonably satisfactory to Sellers). The Sellers may
waive, exchange, subordinate, release, surrender or in any other manner deal
with Buyer without affecting Guarantor's obligations hereunder. Guarantor waives
all notices, including notice of (i) Sellers' acceptance of this Guaranty,
Sellers' intention to act or any Sellers' action hereunder; (ii) the existence
or creation of or any alteration in any of the Guaranteed Obligations; (iii) any
default by Buyer; and (iv) the obtaining, enforcing or releasing of any other
guaranty or of any pledge, assignment or security for any of the Guaranteed
Obligations and all other notices related to the Guaranteed Obligations. Sellers
may proceed against Guarantor without first proceeding against Buyer for
performance of the Guaranteed Obligations and is not required to join Buyer in
any such proceeding against Guarantor; provided, however, as a condition
precedent to the commencement of any action against Guarantor, Sellers shall
first comply with all procedures specified in the Purchase Agreement with
respect to actions taken by the Sellers against Buyer.

      EXECUTED as of the 18th day of August, 2004.

                                                 Macquarie Bank Limited

                                                 By:    /s/ MICHAEL DORRELL
                                                        ________________________

                                                 Name:  MICHAEL DORRELL
                                                        ________________________

<PAGE>

                                                 Title: POWER OF ATTORNEY
                                                        ________________________

                                                 By:    /S/ CHRIS LESLIE
                                                        ________________________

                                                 Name:  CHRIS LESLIE
                                                        ________________________

                                                 Title: POWER OF ATTORNEY
                                                        ________________________

                                       2
<PAGE>
                                  EXHIBIT "A"

                                  DEFINITIONS

A.    Certain Matters of Construction. For purposes of this Agreement, in
      addition to the definitions referred to or set forth in this EXHIBIT "A":

      1.    Reference to a particular Section of this Agreement will include all
            its subsections.

      2.    The words "PARTY" and "PARTIES" will refer to each of the Sellers
            and Buyer.

      3.    Definitions will apply to both the singular and plural forms of the
            terms defined, and references to the masculine, feminine or neuter
            gender will include each other gender.

      4.    All references in this Agreement to any Exhibit or Schedule will,
            unless the context otherwise requires, be deemed to be a reference
            to an Exhibit or Schedule, as the case may be, to this Agreement,
            all of which are made a part of this Agreement.

B.    Definitions.

      "AAA" is defined in Section 11.8.

      "ACCOUNTING FIRM" is defined in Section 2.3(f).

      "AFFELDT" is defined in Section 11.6.

      "AFFILIATE" means an individual or entity that directly or indirectly,
through one or more intermediaries, controls, or is controlled by, or is under
common control with, a specified individual or entity. For purposes of this
definition, "control" shall include, without limitation, the exertion of
significant influence over an individual or entity and shall be conclusively
presumed as to any 50% or greater equity interest. For purposes of this
Agreement, any third party that is managed by an entity that is owned or
controlled, directly or indirectly, by Macquarie Bank Limited, including
Macquarie Infrastructure Assets Inc. and its subsidiaries, shall be deemed an
Affiliate of Buyer.

      "BENEFIT PLAN" is defined in Section 3.14(a).

      "BUSINESS DAY" means any day other than a Saturday, Sunday, or day on
which commercial banks are authorized by law to close in the City of Los
Angeles, California.

      "BUSINESS EMPLOYEES" is defined in Section 3.13.

      "BUYER" is defined in the preamble hereof and shall also include any
Affiliate of the Buyer that becomes an assignee of the Agreement pursuant to the
terms of Section 12.3.

      "BUYER INDEMNIFIED PARTIES" is defined in Section 9.1.
<PAGE>
      "CAP" is defined in Section 9.4(c).

      "CHARTER DOCUMENTS" shall mean, as applicable, the specified entity's (i)
certificate or articles of incorporation or formation or other charter or
organizational documents, and (ii) bylaws or operating agreement, each as from
time to time in effect.

      "CLAIM" means any action or proceeding instituted by any third party, the
liabilities for which are Indemnifiable Losses.

      "CLOSING" is defined in Section 8.1.

      "CLOSING BALANCE SHEET" is defined in Section 2.3(c).

      "CLOSING DATE" is defined in Section 8.1.

      "COBRA" means Section 4980B of the Code, Part 6 of Title I of ERISA,
similar provisions of state law and applicable regulations relating to any of
the foregoing.

      "CODE" means the Internal Revenue Code of 1986, as amended.

      "COMPANY INTELLECTUAL PROPERTY" is defined in Section 3.18.

      "CONFIDENTIALITY AGREEMENT" is defined in Section 11.2.

      "CONTRACTS SCHEDULE" means SCHEDULE 3.10.

      "EFFECTIVE DATE" is defined in the Preamble of this Agreement.

      "EFFECTIVE TIME" is defined in Section 8.1.

      "EMPLOYEE PENSION BENEFIT PLAN" has the meaning set forth in Section 3(2)
of ERISA.

      "EMPLOYEE WELFARE BENEFIT PLAN" has the meaning set forth in Section 3(1)
of ERISA.

      "ENCUMBRANCE" means any mortgage, charge, option, right to acquire,
pledge, lien, security interest, attachment or other encumbrance, including any
agreement to create any of the foregoing.

      "ENVIRONMENTAL LAW" means all applicable Laws pertaining to the
environment, Hazardous Materials, pollution or occupational safety and health,
and includes without limitation the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. Sections 9601 et. seq.
("CERCLA"), Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act of 1986 and Hazardous and Solid Waste Amendments of 1984, 42
U.S.C. Sections 6901 et seq., the Oil Pollution Act of 1990, 33 U.S.C.
Sections 2701 et seq. and implementing state Laws promulgated thereunder.

      "ENVIRONMENTAL PERMITS" means all material permits, approvals,
certificates and licenses required under any Environmental Law.

                                       2
<PAGE>
      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

      "ERISA AFFILIATE" means, with respect to any Person, each other Person
which, within any time during the past six (6) years, is or was required to be
treated as a single employer (under Section 414 of the Code or Section 4001(b)
of ERISA), or treated as a controlled group member or entity under common
control (under Sections 302(f)(6)(B) or 4001(a)(14) of ERISA), with such Person
or its predecessor or any of their current or former Affiliates.

      "EXPIRATION DATE" is defined in Section 9.5.

      "FINANCIAL STATEMENTS" is defined in Section 3.6.

      "FOSTER" is defined in the Preamble of this Agreement.

      "FUNDED INDEBTEDNESS" means (i) all indebtedness for money borrowed from
others (whether in the form of direct loans or capital leases) and purchase
money indebtedness of the Company or the FBOs, (ii) interest expense accrued but
unpaid, and all prepayment premiums, on or relating to any of such indebtedness,
(iii) indebtedness of the type described in clause (i) above guaranteed by the
Company or either FBO, and (iv) any purchase money indebtedness for premiums for
insurance maintained by the Company or the FBOs to the extent the outstanding
balance thereof exceeds the amortized value of the premiums.

      "GROUND LEASES" mean the Palm Springs Ground Lease and the Newport Ground
Lease.

      "GROUND LEASE CONSENTS" means the consents from each of the County of
Orange and the City of Palm Springs, pursuant to the respective Ground Leases,
to (i) approve Sellers' transfer of the Membership Interests, including the
change in control with respect to the FBOs' interest in the Ground Leases, to
Buyer, (ii) approve Buyer's possible subsequent transfer of the Membership
Interests to an Affiliate of the Buyer, (iii) confirm a true, correct and
complete copy of the Ground Leases, (iv) confirm, to the knowledge of the
lessor, that no breach or default exists under the Ground Leases, (v) confirm
that the lessor has not repudiated the Ground Leases, and (vi) confirm that that
the Ground Leases are in full force and effect; provided, however, Ground Lease
Consents approving Buyer's subsequent transfer of the Membership Interests to a
third party shall not be required if the Buyer assigns this Agreement to a third
party that is not an Affiliate of the Buyer. The Ground Lease Consents shall
contain a full and complete description of the proposed transfers of the
Membership Interests. Buyer hereby agrees not to seek approval, or ask Sellers
to seek approval, from the County of Orange for Buyer to pledge any interest in
the Newport Ground Lease or any interest in the equity of NJC to a lender or
other person or entity. Buyer further acknowledges and agrees that,
notwithstanding any discussion with the County of Orange regarding a new hangar
and increased rent in exchange for a lease extension, none of such terms will be
included in any way in the request for consent to assign the Newport Ground
Lease or the Membership Interests.

      "HAZARDOUS MATERIAL" means any substance, pollutant, contaminant,
radiation or chemical which has been determined under applicable Environmental
Laws to be hazardous to human health or safety or the environment including,
without limitation, all of those substances which are listed or defined as
"pollutants," "contaminants," "hazardous materials," "hazardous wastes,"
"hazardous substances," "toxic substances," "radioactive materials," or other
similar

                                       3
<PAGE>
designations pursuant to Environmental Laws including, but not limited to,
asbestos, petroleum and any petroleum products and polychlorinated biphenyls.

      "INDEMNIFIED PARTY" means a Buyer Indemnified Party or a Seller
Indemnified Party, as applicable.

      "INDEMNIFYING PARTY" means the Party obligated to indemnify an Indemnified
Party.

      "INDEMNIFIABLE LOSSES" means any Loss for or against which any Party is
entitled to indemnification under this Agreement.

      "INSURANCE POLICIES" is defined in Section 3.10(b).

      "INTELLECTUAL PROPERTY" means all trademarks and trade names, trademark
and trade name registrations, service marks and service mark registrations,
copyrights and copyright registrations, patent and patent applications and all
material licenses and other agreements and information relating to technology,
know-how, software or processes used in or otherwise necessary to the
Businesses, whether proprietary to the Company or the FBOs or licensed to or
otherwise authorized for use by others.

      "IRS" means the Internal Revenue Service or any successor agency thereto.

      "LAW" means any federal, state or local law, statute, rule or regulation
and any resolution, ruling, ordinance, enactment, judgment, order, decree,
directive or other requirement having the force of law, including any official
interpretation of any of the foregoing, of or by any governmental authority, as
in effect from time to time.

      "LEASE" and "LEASES" are defined in Section 3.8(a).

      "LEASES SCHEDULE" means Schedule 3.8.

      "LIABILITIES SCHEDULE" means Schedule 3.4(a).

      "LOSS" means any and all costs and expenses (including, but not limited
to, reasonable professionals' fees), damages and losses actually incurred by the
Indemnified Party, net of (i) any tax adjustments, benefits, savings or
reductions to which the Indemnified Party is entitled by virtue of such costs,
expenses, damages and losses, and (ii) without duplication of any other
provision herein, any insurance proceeds that the Indemnified Party actually
collects as a result of such costs, expenses, damages and losses.

      "MATERIAL ADVERSE CHANGE" means any change or changes that are material
and adverse to the Company (other than with respect to LQA), Businesses,
operations, properties, assets, income, cash flow, liabilities, working capital
or financial condition, other than: (i) any change or effect resulting from or
relating to changes in or developments in the national or local economy,
financial markets, insurance markets, commodity markets or currency markets,
(ii) any change or effect resulting from general changes in the national or
local wholesale or retail markets for fuel purchased or sold by the FBOs, (iii)
any change or effect resulting from any changes or potential changes to
applicable governmental regulations (other than as may affect

                                       4
<PAGE>
the FBOs' rights and obligations under their respective Ground Leases or as may
specifically and expressly target the FBOs or the local regions in which the
FBOs operate), (iv) any change or effect resulting from or relating generally to
the commercial or general aviation industry, (v) any reductions in the cash flow
multiple generally being paid for fixed base operation enterprises in
international, national or local markets, and (vi) any materially adverse change
in or effect on one or both of the FBOs which is cured (including, without
limitation, by payment of money via the proceeds of insurance or otherwise)
before the Closing.

      "MATERIAL CONTRACTS" is defined in Section 3.10(b).

      "MEMBER DEBT" is defined in Section 8.2(d).

      "MERCED" is defined in the Preamble of this Agreement.

      "NET WORKING CAPITAL" is defined in Section 2.3(a).

      "NEWPORT GROUND LEASE" means those certain leasehold interests set forth
under the heading "Ground Lease" on SCHEDULE 3.8(A), including that certain FBO
Lease dated October 24, 1994, by and between County of Orange and Pan Western,
Ltd., a California limited partnership, as amended by that certain First
Amendment to Ground Lease between County of Orange and Pan Western, Ltd., dated
November 19, 1996, that certain Second Amendment to FBO Lease between County of
Orange and Pan Western, Ltd., dated March 24, 1998, that certain Third Amendment
to FBO Lease dated March 24, 1998 executed by the County of Orange as Lessor and
Pan Western, Ltd., as Tenant, and that certain Fourth Amendment to FBO Lease
dated December 19, 2002 executed by the County of Orange as Lessor and Newport
FBO Two, LLC, as Tenant.

      "PALM SPRINGS GROUND LEASE" means those certain leasehold interests set
forth under the heading "Ground Lease" on SCHEDULE 3.8(A), including that
certain Indenture of Lease and Aeronautical Concession Agreement effective
December 15, 1981 between the City of Palm Springs, California and Jimsair
Aviation Services, Inc., as modified by that certain Amendment No. 1 dated
September 18, 1986, as further modified by that certain Option Agreement dated
September 18, 1986 between the City of Palm Springs and Jimsair Aviation
Services, Inc., as further modified by that certain Consent to Assignment and
Encumbrance of Ground Lease Interest dated March 17, 1994 among the City of Palm
Springs and Dorfinco Corporation and Air Sources, Inc.

      "PARTY" or "PARTIES" means collectively the Sellers and the Buyer.

      "PENSION PLAN" is defined in Section 3.14(a).

      "PERMITS" is defined in Section 3.15.

      "PERSON" means any individual, person, limited liability company,
partnership, trust, unincorporated organization, corporation, association, joint
stock company, business, group, government, government agency or authority or
other entity.

      "PERSONAL PROPERTY" is defined in Section 3.8(b).

                                       5
<PAGE>
      "PHEGLEY" is defined in the Preamble of this Agreement.

      "PROHIBITED TRANSACTION" has the meaning set forth in ERISA Section 406
and Section 4975 of the Code.

      "PURCHASE PRICE" is defined in Section 2.1.

      "QUALIFIED IPO" means an underwritten public offering registered under the
Securities Act of 1933, as amended, equity interests or other beneficial
interests of Macquarie Infrastructure Assets Trust and/or Macquarie
Infrastructure Assets LLC, or any subsidiary thereof.

      "QUALIFIED IPO DISCLOSURE" means (i) any disclosure materials prepared in
connection with a Qualified IPO and (ii) upon the consummation of a Qualified
IPO, any annual, quarterly or other reports filed by the resulting public
company that includes information regarding the Company, either FBO or the
Businesses (including, without limitation, financial statements and related
notes thereto).

      "SELLER INDEMNIFIED PARTIES" is defined in Section 9.2.

      "SELLERS' REPRESENTATIVE" is defined in Section 12.11.

      "SUBSIDIARY" means any entity of which either of the FBOs (or other
specified entity) owns directly or indirectly through a Subsidiary, a nominee
arrangement or otherwise at least a majority of the outstanding capital stock
(or other shares of beneficial interest) entitled to vote generally.

      "TAX" means any foreign, federal, state, county or local income, sales and
use, excise, franchise, real and personal property, transfer, gross receipt,
capital stock, production, business and occupation, disability, employment,
payroll, severance or withholding tax or charge imposed by any governmental
entity, any interest and penalties (civil or criminal) related thereto or to the
nonpayment thereof, and any Loss in connection with the determination,
settlement or litigation of any Tax liability.

      "TAX RETURN" means a report, return or other information supplied to or
required to be supplied to a governmental entity with respect to Taxes and shall
be treated as a Tax Return of each entity included or required to be included in
a return filed on a combined, consolidated, unitary or similar basis.

      "TERMINATION DATE" means the date on which this Agreement is terminated
pursuant to Section 10.1 hereof.

      "THRESHOLD" is defined in Section 9.4(a).

      "TRANSACTION DOCUMENTS" is defined in Section 8.3.

      "WELFARE PLAN" is defined in Section 3.14(a).

                                       6
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                    PAGE
<S>               <C>                                                                                               <C>
ARTICLE 1.        PURCHASE AND SALE OF MEMBERSHIP INTERESTS.......................................................    1
         1.1      Acquisition.....................................................................................    1
         1.2      Assignment of Membership Interests..............................................................    2
ARTICLE 2.        PURCHASE PRICE..................................................................................    2
         2.1      Purchase Price..................................................................................    2
         2.2      Transfer Taxes..................................................................................    2
         2.3      Purchase Price Adjustments......................................................................    2
ARTICLE 3.        SELLERS' REPRESENTATIONS AND WARRANTIES.........................................................    2
         3.1      Organization....................................................................................    2
         3.2      Power and Authority.............................................................................    3
         3.3      Authorization; No Breach........................................................................    3
         3.4      Absence of Undisclosed Liabilities..............................................................    3
         3.5      Capitalization of the Company and the FBOs; Title to Membership Interests and FBO Interests.....    4
         3.6      Financial Statements............................................................................    4
         3.7      No Material Adverse Changes; Absence of Certain Changes or Events...............................    5
         3.8      Real Property; Personal Property................................................................    6
         3.9      Tax Matters.....................................................................................    8
         3.10     Contracts and Commitments.......................................................................   10
         3.11     Litigation; Proceedings.........................................................................   12
         3.12     Brokerage.......................................................................................   12
         3.13     Employees.......................................................................................   12
         3.14     Employee Benefit Plans..........................................................................   13
         3.15     Compliance with Laws............................................................................   15
         3.16     Environmental Matters...........................................................................   16
         3.17     Affiliate Transactions..........................................................................   17
         3.18     Intellectual Property Rights....................................................................   17
         3.19     Bank Accounts; Powers of Attorney...............................................................   17
         3.20     Fuel Volume Records.............................................................................   17
ARTICLE 4.        BUYER'S REPRESENTATIONS AND WARRANTIES..........................................................   18
         4.1      Organization....................................................................................   18
         4.2      Power and Authority.............................................................................   18
         4.3      Authorization; No Breach........................................................................   18
         4.4      Brokerage.......................................................................................   18
         4.5      Litigation......................................................................................   18
         4.6      Buyer's Investment Representation...............................................................   18
ARTICLE 5.        PRE-CLOSING COVENANTS...........................................................................   19
         5.1      Affirmative Covenants...........................................................................   19
         5.2      Schedules.......................................................................................   19
         5.3      Purchase Price Allocation.......................................................................   20
         5.4      Access..........................................................................................   20
         5.5      Negative Covenants..............................................................................   21
         5.6      [Reserved.].....................................................................................   22
</TABLE>
<PAGE>
                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                    PAGE
<S>               <C>                                                                                               <C>
         5.7      No Shop.........................................................................................   22
         5.8      Additional Covenant of Merced...................................................................   22
ARTICLE 6.        CLOSING CONDITIONS - BUYER......................................................................   22
         6.1      Conditions to Closing...........................................................................   22
         6.2      Limitations on Conditions.......................................................................   24
ARTICLE 7.        CLOSING CONDITIONS - SELLERS....................................................................   25
         7.1      Conditions to Closing...........................................................................   25
ARTICLE 8.        CLOSING MATTERS.................................................................................   26
         8.1      The Closing.....................................................................................   26
         8.2      Action to Be Taken at the Closing; Payment of Purchase Price....................................   26
         8.3      Closing Documents...............................................................................   27
ARTICLE 9.        INDEMNIFICATION.................................................................................   28
         9.1      Indemnification by Seller.......................................................................   28
         9.2      Indemnification by Buyer........................................................................   28
         9.3      Method of Asserting Claims......................................................................   29
         9.4      Limits on Indemnification.......................................................................   30
         9.5      Survival........................................................................................   32
         9.6      Exclusive Remedy................................................................................   32
         9.7      Offset..........................................................................................   32
ARTICLE 10.       TERMINATION.....................................................................................   33
         10.1     Termination.....................................................................................   33
         10.2     Effect of Termination...........................................................................   33
ARTICLE 11.       ADDITIONAL AGREEMENTS...........................................................................   33
         11.1     Press Release and Announcements.................................................................   33
         11.2     Confidentiality.................................................................................   33
         11.3     Remittances.....................................................................................   34
         11.4     Cooperation to Obtain Consents..................................................................   34
         11.5     Tax Matters.....................................................................................   34
         11.6     Employee Matters................................................................................   35
         11.7     Further Assurances..............................................................................   35
         11.8     Arbitration.....................................................................................   36
         11.9     Non-Competition.................................................................................   36
         11.10    IPO Cooperation.................................................................................   37
ARTICLE 12.       MISCELLANEOUS...................................................................................   37
         12.1     Amendment and Waiver............................................................................   37
         12.2     Notices.........................................................................................   37
         12.3     Assignment......................................................................................   39
         12.4     Captions........................................................................................   39
         12.5     Complete Agreement; Schedules and Exhibits......................................................   39
         12.6     Governing Law...................................................................................   39
         12.7     Counterparts....................................................................................   40
         12.8     Third Party Beneficiaries.......................................................................   40
         12.9     Severability....................................................................................   40
</TABLE>

                                       ii
<PAGE>
                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                    PAGE
<S>               <C>                                                                                               <C>
         12.10    Expenses........................................................................................   40
         12.11    Sellers' Representative.........................................................................   40
</TABLE>

                                      iii<PAGE>
                                                                   Exhibit 10.25

                                                                  EXECUTION COPY
================================================================================

                            STOCK PURCHASE AGREEMENT

                                    (CHICAGO)

                                  BY AND AMONG

                        MACQUARIE DISTRICT ENERGY, INC.,

                    MACQUARIE DISTRICT ENERGY HOLDINGS, LLC,

                             MACQUARIE BANK LIMITED,

                               EXELON CORPORATION

                                       AND

                          EXELON THERMAL HOLDINGS, INC.

                          DATED AS OF DECEMBER 12, 2003

================================================================================
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>               <C>                                                                     <C>
ARTICLE I         DEFINITIONS ...................................................           1
   Section 1.1    Definitions ...................................................           1
   Section 1.2    Other Definitional Provisions .................................           8
ARTICLE II        PURCHASE OF SHARES; PURCHASE PRICE ............................           9
   Section 2.1    Sale and Purchase of Shares ...................................           9
   Section 2.2    Consideration .................................................           9
   Section 2.3    No Ongoing or Transition Services .............................           9
   Section 2.4    Intercompany Accounts .........................................           9
   Section 2.5    Purchase Price Adjustments ....................................           9
   Section 2.6    Sales and Transfer Taxes ......................................          12
ARTICLE III       CLOSING; CLOSING DELIVERIES ...................................          12
   Section 3.1    Closing .......................................................          12
   Section 3.2    Deliveries by the Seller at Closing ...........................          12
   Section 3.3    Deliveries by the Purchaser at Closing ........................          14
ARTICLE IV        REPRESENTATIONS AND WARRANTIES OF THE
                  SELLER ........................................................          15
   Section 4.1    Due Organization and Status ...................................          15
   Section 4.2    Authority; Enforceability .....................................          15
   Section 4.3    Noncontravention ..............................................          15
   Section 4.4    Capital Stock of the Company; Transactions in Equity Securities          16
   Section 4.5    Subsidiaries ..................................................          16
   Section 4.6    Books and Records .............................................          17
   Section 4.7    Financial Statements ..........................................          17
   Section 4.8    Absence of Changes ............................................          18
   Section 4.9    Reserved ......................................................          19
   Section 4.10   Legal Compliance ..............................................          19
   Section 4.11   Taxes .........................................................          19
   Section 4.12   Contracts .....................................................          21
   Section 4.13   Related Party Agreements ......................................          22
   Section 4.14   Litigation ....................................................          23
   Section 4.15   Employee Matters ..............................................          23
   Section 4.16   Credit Enhancements ...........................................          23
   Section 4.17   Authorizations ................................................          24
   Section 4.18   Insurance .....................................................          24
   Section 4.19   Real Property .................................................          24
   Section 4.20   Environmental Matters .........................................          27
   Section 4.21   Brokers' Fees .................................................          28
   Section 4.22   Assets ........................................................          28
   Section 4.23   Intellectual Property .........................................          28
   Section 4.24   Receivables ...................................................          29
   Section 4.25   Public Utility; FERC Considerations ...........................          29
</TABLE>
<PAGE>
                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>               <C>                                                                <C>
   Section 4.26   District Cooling System Use Agreement ....................          30
   Section 4.27   Disclaimer Regarding Estimates and Projections ...........          31
ARTICLE V         REPRESENTATIONS OF THE PURCHASER .........................          31
   Section 5.1    Organization .............................................          31
   Section 5.2    Authority; Enforceability ................................          31
   Section 5.3    Noncontravention .........................................          31
   Section 5.4    Brokers' Fees ............................................          32
   Section 5.5    Financing ................................................          32
   Section 5.6    Investment Purpose .......................................          32
ARTICLE VI        COVENANTS OF THE PARTIES PRIOR TO CLOSING ................          32
   Section 6.1    HSR Filing; Other Governmental Filings; Consents .........          32
   Section 6.2    Cooperation ..............................................          33
   Section 6.3    Operation of Business ....................................          33
   Section 6.4    Access ...................................................          33
   Section 6.5    Notice of Developments ...................................          34
   Section 6.6    Credit Enhancements; Insurance ...........................          34
   Section 6.7    No Negotiations ..........................................          35
   Section 6.8    Permit Transfer ..........................................          35
   Section 6.9    Estoppel Certificates and Non-Disturbance Agreements .....          35
   Section 6.10   Title Insurance and Surveys ..............................          35
   Section 6.11   Retention of Certain Key Employees .......................          36
   Section 6.12   Insurance ................................................          36
   Section 6.13   Licenses .................................................          37
   Section 6.14   Washington Street Trolley Tunnel .........................          37
ARTICLE VII       CONDITIONS PRECEDENT TO OBLIGATIONS OF
                  THE SELLER ...............................................          37
   Section 7.1    Representations and Warranties; Performance of Obligations          37
   Section 7.2    No Litigation or Other Actions ...........................          37
   Section 7.3    Consents and Approvals ...................................          38
   Section 7.4    No Material Adverse Change ...............................          38
   Section 7.5    Release of Credit Enhancements ...........................          38
   Section 7.6    City Approval ............................................          38
   Section 7.7    Deliveries of Purchaser ..................................          38
ARTICLE VIII      CONDITIONS PRECEDENT TO OBLIGATIONS OF
                  THE PURCHASER ............................................          38
   Section 8.1    Representations and Warranties; Performance of Obligations          38
   Section 8.2    No Litigation or Other Actions ...........................          38
   Section 8.3    Consents and Approvals ...................................          39
   Section 8.4    No Material Adverse Effect ...............................          39
   Section 8.5    Indebtedness .............................................          39
</TABLE>

                                     - ii -
<PAGE>
                   TABLE OF CONTENTS
                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>               <C>                                                                <C>
   Section 8.6    City Approval ..............................................        39
   Section 8.7    Deliveries of Seller .......................................        39
ARTICLE IX        COVENANTS OF THE PURCHASER AND THE
                  SELLER AFTER CLOSING .....................................          39
   Section 9.1    Tax Matters ................................................        39
   Section 9.2    Name Change ................................................        42
   Section 9.3    Further Assurances .........................................        42
   Section 9.4    Restrictive Covenants ......................................        42
   Section 9.5    Certain Acknowledgements ...................................        44
ARTICLE X         INDEMNIFICATION ..............................................      44
   Section 10.1   Survival of Representations and Warranties ................         44
   Section 10.2   Indemnification Provisions for the Benefit of the Purchaser         45
   Section 10.3   Indemnification Provisions for the Benefit of the Seller ..         47
   Section 10.4   Matters Involving Third Parties ...........................         47
   Section 10.5   Determination of Adverse Consequences .....................         48
   Section 10.6   Exclusive Remedy ..........................................         48
   Section 10.7   Waiver of Certain Damages .................................         48
   Section 10.8   Compliance with Express Negligence Rule; Strict Liability .         48
ARTICLE XI        TERMINATION OF AGREEMENT ....................................       49
   Section 11.1   Termination of Agreement ..................................         49
   Section 11.2   Effect of Termination .....................................         50
ARTICLE XII       EMPLOYEES AND EMPLOYEE BENEFITS ............................        50
   Section 12.1   Employees .................................................         50
   Section 12.2   WARN Act ..................................................         52
ARTICLE XIII      GENERAL ...................................................         52
   Section 13.1   Press Releases and Public Announcements ...................         52
   Section 13.2   No Third-Party Beneficiaries ..............................         53
   Section 13.3   Entire Agreement ..........................................         53
   Section 13.4   Succession and Assignment .................................         53
   Section 13.5   Counterparts ..............................................         53
   Section 13.6   Headings ..................................................         53
   Section 13.7   Notices ...................................................         53
   Section 13.8   GOVERNING LAW .............................................         54
   Section 13.9   Amendments and Waivers ....................................         55
   Section 13.10  Severability .............................................          55
   Section 13.11  Expenses .................................................          55
   Section 13.12  Construction .............................................          55
   Section 13.13  Incorporation of Exhibits and Schedules ..................          55
   Section 13.14  Waiver of Jury Trial .....................................          55
</TABLE>

                                    - iii -
<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>               <C>                                                                <C>
   Section 13.15  Specific Performance .....................................          55
   Section 13.16  Consent to Jurisdiction ..................................          56
   Section 13.17  Macquarie Guaranty .......................................          56
</TABLE>

EXHIBITS AND SCHEDULES

<TABLE>
<S>                            <C>
     Exhibit 2.3               Transition Services Agreement
     Exhibit 2.5               Preliminary Closing Balance Sheet, Etc.
     Exhibit 3.2(i)            Release of Claims
     Exhibit 3.2(k)            Legal Opinion of Counsel to the Seller
     Exhibit 3.3(h)            Legal Opinion of Counsel to the Purchaser
     Schedule 1.1(a)           Indebtedness Secured by Real Property
     Schedule 1.1(b)           Mechanics' and Similar Liens
     Schedule 1.1(d)           Title Commitments
     Schedule 2.3              Remaining Intercompany Contracts
     Schedule 3.2(f)           Good Standing Qualifications
     Schedule 4.3              Noncontravention
     Schedule 4.4              Capitalization
     Schedule 4.5              Subsidiaries
     Schedule 4.7              Financial Statements
     Schedule 4.8              Absence of Changes
     Schedule 4.11             Taxes
     Schedule 4.12             Contracts
     Schedule 4.13             Related Party Agreements
     Schedule 4.14             Litigation
     Schedule 4.15             Employee Matters
     Schedule 4.16             Credit Enhancements
     Schedule 4.17             Authorizations
     Schedule 4.18             Insurance
     Schedule 4.19             Real Property
     Schedule 4.20             Environmental Matters
     Schedule 4.21             Brokers' Fees
     Schedule 4.22             Assets
     Schedule 4.23             Intellectual Property
     Schedule 6.6              Terminated Credit Enhancements
     Schedule 6.13             Licenses
     Schedule 8.5              Indebtedness
</TABLE>

                                     - iv -
<PAGE>
                            STOCK PURCHASE AGREEMENT
                                   (CHICAGO)

      This Stock Purchase Agreement (Chicago) is made and entered into as of
December 12, 2003 (this "Agreement"), by and among Macquarie District Energy,
Inc., a Delaware corporation (the "Purchaser"), and Exelon Thermal Holdings,
Inc., a Delaware corporation (the "Seller"). This Agreement is joined by
Macquarie District Energy Holdings, LLC, a Delaware limited liability company
("District Energy"), solely for purposes of Articles X and XIII; Exelon
Corporation, a Pennsylvania corporation ("Exelon"), solely for purposes of
Sections 9.4 and 9.5 and Articles X and XIII; and by Macquarie Bank Limited, a
company formed under the laws of Australia ("Macquarie"), solely for purposes of
Article XIII. The Purchaser, the Seller, Exelon, District Energy and Macquarie
are each a "Party" collectively, the "Parties."

                                    RECITALS:

      WHEREAS, the Seller owns 100 shares of common stock, par value $.01 per
share (the "Shares"), of Thermal Chicago Corporation, a Delaware corporation
(the "Company"), and the Shares constitute all of the outstanding capital stock
of the Company; and

      WHEREAS, the Purchaser desires to purchase, and the Seller desires to
      sell, the Shares.

      NOW, THEREFORE, to induce the Purchaser to purchase the Shares, and to
induce the Seller to sell the Shares, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      Section 1.1 Definitions. In addition to capitalized terms defined
elsewhere in this Agreement, the following capitalized terms used in this
Agreement have the following meanings for all purposes of this Agreement:

      "Adjustment Report" has the meaning set forth in Section 2.5(b) below.

      "Adverse Consequences" means (i) all actions, suits, proceedings,
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
liabilities, STRICT LIABILITIES (including without limitation, STRICT LIABILITY
ARISING UNDER ENVIRONMENTAL LAWS), obligations, Taxes, liens, losses, expenses,
and fees, including court costs and reasonable attorneys' and other
professionals' and consultants' fees and expenses, and/or (ii) any and all
damages, liabilities, STRICT LIABILITIES (including without limitation, STRICT
LIABILITY ARISING UNDER ENVIRONMENTAL LAWS), losses, costs and expenses of
Remediation as well as investigation, response, removal, remediation and
monitoring of Hazardous Materials associated with or related to any
indemnifiable event under Section 10.2 below.

      "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.
<PAGE>
      "Agreement" has the meaning set forth in the preface above.

      "Anti-Corruption Laws" means (a) Chapter 2-156 of the Municipal Code of
Chicago (including, without limitation, Section 2-156-030(b) thereof) and
Section 2-92-320 of Chapter 2-92 of the Municipal Code of Chicago, (b) 720 ILCS
5/33-11 of the Illinois Criminal Code, (c) 65 ILCS 5/1-1 et seq. of the Illinois
Municipal Code and (d) Illinois Public Act 85-1390 (1988 Ill. Laws 3220).

      "Applicable Rate" means the corporate base rate of interest publicly
announced from time to time by Bank One, N.A.

      "Authorization" shall mean any approval, authorization, certification,
consent, ordinance, variance, permission, license or permit (excluding
Environmental Permits) to or from, or filing, notice or recordings to or with
any governmental authority other than foreign qualifications to conduct business
and good standing certifications.

      "Business" has the meaning set forth in Section 9.4(b) below.

      "Business Facility" means any and all Real Property and Chilled Water
Plants which the Company or any Company Subsidiary currently leases, operates,
owns or manages, or which the Company, any Company Subsidiary or any of their
respective constituent entities formerly leased, operated, owned or managed. To
the extent that any representations in Section 4.20 apply to any Business
Facility not currently leased, operated, owned or managed by the Company or any
Company Subsidiary, such representations shall be deemed to be made to the
Knowledge of the Seller.

      "Capital Lease" means any lease of property, real or personal, the
obligations with respect to which are required to be capitalized on the balance
sheet of the lessee in accordance with GAAP.

      "Chilled Water Plant" means any chilled water production facility and such
personal property and equipment related to chilled water production owned,
leased, maintained or operated by the Company or any Company Subsidiary.

      "City" means the City of Chicago, a home rule unit and municipality under
Article VII of the Constitution of the State of Illinois.

      "City Council" means the City Council of the City.

      "Closing" has the meaning set forth in Section 3.1 below.

      "Closing Date" has the meaning set forth in Section 3.1 below.

      "Code" means the Internal Revenue Code of 1986, as amended.

      "Company" has the meaning set forth in the recitals above.

                                      -2-
<PAGE>
      "Company Subsidiary" or "Company Subsidiaries" means any or all of the
Subsidiaries of the Company.

      "Covenant Period" has the meaning set forth in Section 9.4 below.

      "Credit Enhancements" has the meaning set forth in Section 4.16 below.

      "Customer Contract" has the meaning set forth in Section 4.12(b) below.

      "Customer Easement" has the meaning set forth in Section 4.19(h) below.

      "Debt" means at a particular time, without duplication, (a) any
obligations under any indebtedness of the Company or any of the Company
Subsidiaries for borrowed money (including any principal, accrued interest,
penalties and fees, interest premiums, expenses, breakage costs and bank
overdrafts thereunder), (b) any indebtedness evidenced by any note, bond,
debenture or other debt security, (c) all liabilities and obligations,
contingent or otherwise, with respect to the face amount of any and all letters
of credit (whether or not drawn), bankers' acceptances and similar obligations
issued for the account of the Company or any of the Company Subsidiaries, (d)
any indebtedness pursuant to a guarantee, (e) any obligations under capitalized
leases, and (f) any indebtedness secured by a lien, Security Interest, mortgage,
charge or other encumbrance on a Person's assets.

      "District Cooling System" means the various plants, pipeline systems and
other facilities used in the distribution of chilled water in the City's
downtown district, which the Company and the Company Subsidiaries have the right
to use, operate and maintain pursuant to the District Cooling System Use
Agreement and the ancillary agreements contemplated thereby.

      "District Cooling System Use Agreement" means that certain District
Cooling System Use Agreement dated October 1, 1994, by and between the City and
Northwind Incorporated, including each amendment thereto.

      "DOJ" has the meaning set forth in Section 6.1(a) below.

      "Easements" means easements identified as an "Easement" in Schedule
4.19(a).

      "Employee Benefit Plan" means any (a) nonqualified deferred compensation
or retirement plan or arrangement, (b) qualified defined contribution retirement
plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit
Plan or material fringe benefit or other retirement, bonus, or incentive plan or
program.

      "Employee Pension Benefit Plan" has the meaning set forth in ERISA Section
3(2).

      "Employee Welfare Benefit Plan" has the meaning set forth in ERISA Section
3(l).

      "Employees" has the meaning set forth in Section 12.1 below.

                                      -3-
<PAGE>
      "Environmental Laws" means any and all applicable laws, statutes, codes,
ordinances, regulations, judgments, orders, orders on consent, decrees or
injunctions of any local, state, federal, national, or foreign executive,
legislative, judicial, regulatory or administrative agency, board or authority,
or any binding judicial or administrative decision associated therewith and
currently in effect that relate in any manner to (i) protection of the
environment, (ii) pollution, the emission, discharge, release, treatment,
storage, disposal, management or response to Hazardous Materials, (iii)
Emergency Planning & Community Right-to-Know (as set forth in the Comprehensive
Environmental Response, Compensation & Liability Act), (iv) the protection of
endangered species or wetlands, human health, and (v) worker or employee safety
and protection (but only to the extent they relate to exposure to Hazardous
Materials), including, without limitation, the Occupational Safety and Health
Act and the rules promulgated thereunder (but only to the extent such act and
rules relate to exposure to Hazardous Materials).

       "Environmental Permits" means all permits (and attendant applications),
licenses, certificates, registrations, identification numbers, consents,
approvals, variances, notices of intent required by Environmental Laws and
exemptions necessary for the ownership, use and/or operation of any asset owned
or operated by the Company or a Company Subsidiary to comply with Environmental
Laws.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

      "Estimated Debt Calculation" has the meaning set forth in Section 2.5(a)
below.

      "Estimated Net Working Capital Calculation" has the meaning set forth in
Section 2.5(a) below.

      "Excluded Marks" means the trademarks "Exelon", "ComEd" and "Unicom" and
related trade names incorporating the words of such trademarks.

      "FTC" has the meaning set forth in Section 6.1(a) below.

      "Financial Statements" has the meaning set forth in Section 4.7 below.

      "GAAP" means United States generally accepted accounting principles as in
effect from time to time.

      "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

      "Hazardous Materials" means (a) any wastes, materials or substances that
are regulated or defined as "hazardous materials," "hazardous wastes," "special
wastes," "hazardous substances," "extremely hazardous substances," "toxic
substances" or "regulated substances," as defined by the Resource Conservation &
Recovery Act or subject to regulation under Environmental Laws; and (b) any (i)
petroleum or petroleum products (including, without limitation, crude oil or any
fraction thereof and waste oil or related sludges), (ii) radioactive material,
and (iii) as to employees' exposure, the materials and the lists with attendant
limits provided in such lists that appear at 29 C.F.R Section 1910.119, Appendix
A (Highly Hazardous Chemicals) and Section 1910.1000, Tables Z-1, Z-2 (Air
Contaminant), Table Z-3 (Mineral

                                      -4-
<PAGE>
Dusts), OSHA Specifically Regulated Substances identified in 29 C.F.R.
Sections 1910.1001 - 1050, and any other air contaminant or substance for
which the Occupational Safety and Health Administration has promulgated a
permissible exposure level ("PEL") with attendant limits provided in such lists.

      "Income Tax" means any federal, state, local, or foreign income tax,
including any interest, penalty, or addition thereto, whether disputed or not.

      "Income Tax Return" means any return, declaration, report, claim for
refund, or information return or statement relating to Income Taxes, including
any schedule or attachment thereto.

      "Indemnified Party" has the meaning set forth in Section 10.4(a) below.

      "Indemnifying Party" has the meaning set forth in Section 10.4(a) below.

      "Independent Auditors" has the meaning set forth in Section 2.5(c) below.

      "Intellectual Property" means the following intellectual property rights,
both statutory and common law rights, if applicable, that are used in connection
with the operation of the Company or any of the Company Subsidiaries as
presently conducted: (a) all trademarks, service marks, trade names, trade
dress, brand names, slogans, logos, corporate names, domain names, registrations
and applications for registrations for the foregoing, together with all
translations, adaptations, derivations, and combinations, applications,
registrations, extensions, and renewals, foreign and domestic, relating thereto,
together with the goodwill of the Company or any of the Company Subsidiaries
connected therewith and any right to recover for past infringement thereof and
other past injury thereto; (b) inventions existing at the time of transfer of
assets (whether patentable or unpatentable and whether or not reduced to
practice), all improvements thereto, and all patents, patent applications, and
patent disclosures, together with all reissuances, continuations,
continuations-in-part, divisions, extensions, and reexaminations relating
thereto; (c) copyrights, registrations, renewals, and applications for
registrations thereof; and (d) trade secrets and confidential information
(including software, ideas, models, research and development, know-how,
formulas, compositions, manufacturing, operation, packaging, and production
processes, techniques and control of same, technical data and analyses, designs,
drawings, specifications, customer and supplier lists and data, pricing and cost
information, and business and marketing plans and proposals).

      "Key Employees" means David A. Bump, William H. Dolan, William S. Kenney,
Maureen Prunty, Frank Duffy and Jim Pagnusat.

      "Knowledge of the Seller," "Seller's Knowledge" or any phrase of similar
import means the actual knowledge, after due inquiry, of David A. Bump, William
H. Dolan, William S. Kenney, Maureen Prunty, Frank Duffy or Jim Pagnusat.

      "Leased Property" means the real property identified as "Leased Property"
in Schedule 4.19(a).

      "Leases" has the meaning set forth in Section 4.19(d) below.

                                      -5-
<PAGE>
      "Letter Agreement" has the meaning set forth in Section 6.4 below.

      "Material Adverse Effect" means a material adverse effect on the assets,
properties, business, operations or financial condition of the Company and the
Company Subsidiaries taken as a whole or on the ability of the Seller to
consummate the transactions contemplated by this Agreement; provided, however,
that none of the following shall be deemed to constitute and none of the
following shall be taken into account in determining whether there has been a
Material Adverse Effect: any adverse change, event, development or effect
arising from or relating to (a) the transactions contemplated by this Agreement,
(b) general business or economic conditions that are not disproportionately
adverse to the businesses of the Company and the Company Subsidiaries, (c)
national or international political or social conditions that do not result in
material damage or loss to the physical assets of the Company or any Company
Subsidiary, including the engagement by the United States in hostilities,
whether or not pursuant to the declaration of a national emergency or war or the
occurrence of any military or terrorist attack upon the United States or any of
its territories, possessions or diplomatic or consular offices or upon any
military installation, equipment or personnel of the United States, (d)
financial, banking or securities markets (including any disruption thereof and
any decline in the price of any security or any market index), (e) changes in
GAAP or (f) changes in any law or industry standard that are not
disproportionately adverse to the Business as compared to other district cooling
systems outside the City.

      "Multiemployer Plan" has the meaning set forth in ERISA Section 3(37).

      "National Power" has the meaning set forth in Section 4.5 below.

      "Net Working Capital" means an amount equal to all "current assets" of the
Company and the Company Subsidiaries on a consolidated basis (other than cash
and cash equivalents) minus all "current liabilities" of the Company and the
Company Subsidiaries on a consolidated basis, each as determined as of the
Closing Date in accordance with GAAP in a manner consistent with the application
of the accounting principles applied in preparing the Financial Statements.

      "Ordinary Course of Business" means the ordinary course of business
consistent with past custom and practice.

      "Organizational Documents" means (a) with respect to a corporation, the
articles or certificate of incorporation and bylaws of such entity, (b) with
respect to a limited partnership, the certificate of limited partnership (or
equivalent document) and partnership agreement or similar operational agreement,
and (c) with respect to a limited liability company, the articles of
organization (or equivalent document) and regulations, limited liability company
agreement, or similar operational agreement.

      "Other Rights" has the meaning set forth in Section 4.19(h) below.

      "Owned Property" means the real property identified as "Owned Property" in
Schedule 4.19(a).

      "Parties" has the meaning set forth in the preface above.

                                      -6-
<PAGE>
      "Permitted  Encumbrances" means (a) in the case of Real Property,  all
easements, rights-of-way, servitudes, permits, licenses, surface leases and
other rights, conditions, covenants or other restrictions, and easements for
streets, alleys, highways, telephone lines, power lines, other utility lines,
railways and other easements and rights-of-way on, over or affecting any portion
of, and of record against, the Real Property, (b) liens for Taxes or assessments
not yet due and payable or which are being contested in good faith through
appropriate proceedings, (c) matters in connection with the assumption of any
existing indebtedness secured by the Real Property, as set forth in Schedule
1.1(a), (d) mechanics', materialmen's, carriers', workers', repairers' and other
similar liens arising or incurred in the Ordinary Course of Business relating to
obligations as to which there is no material default on the part of the Company
or the Company Subsidiaries or the validity of which are being contested in good
faith, as set forth in Schedule 1.1(b), (e) zoning, entitlement, conservation
restriction and other land use and environmental regulations imposed by
governmental authorities, (f) restrictions on transfer of securities imposed by
applicable state and federal securities laws, (g) with respect to the Leased
Real Property, any liens, encumbrances and other matters created or suffered by
any landlord, sublandlord, grantor, licensor or customer, as applicable, with an
interest therein, (h) such other encumbrances and encroachments which are
immaterial in nature and amount and which would be disclosed by a survey or
other inspection of the Real Property, (i) matters reflected on the Title
Commitments, (j) any other imperfections in title not material in amount and (k)
liens securing Debt which liens will be released on or before the Closing Date.

      "Person" means an individual, a partnership, a limited liability company,
a corporation, an association, a joint stock company, a trust, a joint venture,
an unincorporated organization, or a governmental authority or entity (or any
department, agency, or political subdivision thereof).

      "Preliminary Closing Balance Sheet" has the meaning set forth in Section
2.5(a) below.

      "Prospective Customer" means any person or entity from which Purchaser,
the Company or any Company Subsidiary is actively soliciting Business during the
Covenant Period.

      "Purchase Price" has the meaning set forth in Section 2.2 below.

      "Purchaser" has the meaning set forth in the preface above.

      "Purchaser Plans" has the meaning set forth in Section 12.1 below.

      "Real Property" means, collectively, the Easements, the Leased Property,
and the Owned Property.

      "Remaining Intercompany Contracts" has the meaning set forth in Section
2.3 below.

      "Remediation" means the taking of actions to respond to, remove, remediate
or monitor (in each case as required by Environmental Laws) the release (or
threatened release) of Hazardous Materials at, on, in, about, under or within
the air, soil, surface or ground water.

      "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                                      -7-
<PAGE>
      "Security Interest" means any mortgage, pledge, hypothecation, deposit
arrangement, lien (statutory or other), security interest, collateral
assignment, charge, encumbrance, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement and any
Capital Lease having substantially the same economic effect as any of the
foregoing), other than Permitted Encumbrances.

      "Seller" has the meaning set forth in the preface above.

      "Settlement Date" has the meaning set forth in Section 2.5(d) below.

      "Shares" has the meaning set forth in the recitals above.

      "Solid Waste" means non-hazardous solid waste as defined by the Solid
Waste Disposal Act, 42, U.S.C.A Section 6903(27).

      "Subsidiary" means any Person with respect to which a specified Person (or
a Subsidiary thereof) owns a majority of the common stock or other equity
interests or has the power to vote or direct the voting of sufficient securities
to elect a majority of the directors or managers.

      "Tax" or "Taxes" means any net income, capital gains, gross income, gross
receipts, sales, use, transfer, ad valorem, franchise, profits, license,
capital, withholding, payroll, employment, unemployment, disability, real
property, personal property, registration, value added, alternative or add-on
minimum, excise, goods and services, severance, stamp, occupation, premium,
property, windfall profits or other tax or customs duties, or any interest, any
penalties, additions to tax or additional amounts incurred or accrued under
applicable tax law or properly assessed or charged by any taxing authority
(domestic or foreign).

      "Tax Return" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto.

      "Third Party Claim" has the meaning set forth in Section 10.4(a) below.

      "Title Commitments" means those certain title commitments covering the
Real Property identified and described in Schedule 1.1(d).

      "Trespassing Facility" shall have the meaning ascribed to such term in the
District Cooling System Use Agreement.

      "UTT Nevada Severance Plan" has the meaning set forth in Section 12.1
below.

      "WARN Act" means the Worker Adjustment Retraining and Notification Act of
1988, as amended.

      Section 1.2 Other Definitional Provisions. All accounting terms not
otherwise defined herein shall have the meaning ascribed thereto by GAAP. All
terms defined in this Agreement in the singular shall have comparable meanings
when used in the plural and vice-versa. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement

                                      -8-
<PAGE>
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement. References to Articles, Sections, Schedules and Exhibits shall
refer to those portions of this Agreement unless otherwise designated. The use
of the masculine, feminine or neuter gender herein shall not limit any provision
of this Agreement. The use of the terms "including" or "include" shall in all
cases herein mean "including, without limitation" or "include, without
limitation," respectively.

                                   ARTICLE II
                       PURCHASE OF SHARES; PURCHASE PRICE

      Section 2.1 Sale and Purchase of Shares. Subject to the terms and
conditions hereof, and in reliance upon the representations, warranties,
covenants and agreements made herein by the Seller and the Purchaser, the
Purchaser shall purchase and accept from the Seller, and the Seller shall sell,
transfer, convey, assign and deliver to the Purchaser, on the Closing Date, the
Shares.

      Section 2.2 Consideration. The purchase price payable by the Purchaser for
the Shares shall be an amount equal to the sum of One Hundred Thirty-five
Million Dollars ($135,000,000), subject to adjustment pursuant to Section 2.5
(the "Purchase Price"). At the Closing, the Purchaser shall pay the Purchase
Price to the Seller by wire transfer of immediately available federal funds to
an account designated in writing by the Seller to the Purchaser prior to the
Closing Date.

      Section 2.3 No Ongoing or Transition Services. Except as provided in the
Transition Services Agreement attached as Exhibit 2.3 hereto (the "Transition
Services Agreement") or otherwise agreed to in writing by the Parties, at the
Closing all data processing, accounting, insurance, banking, personnel, legal,
communications and other products and services provided to the Company and/or
the Company Subsidiaries by the Seller or any of its Affiliates (other than the
Company and/or the Company Subsidiaries), including any contracts, commitments,
agreements or understandings (written or oral) between the Company and/or the
Company Subsidiaries, on the one hand, and the Seller or any of its Affiliates
(other than the Company and/or the Company Subsidiaries), on the other hand
(other than the contracts, commitments, agreements and understandings listed in
Schedule 2.3 (collectively, the "Remaining Intercompany Contracts")), will
terminate.

      Section 2.4 Intercompany Accounts. On or prior to the Closing Date, all
intercompany accounts between any of the Company and/or the Company
Subsidiaries, on the one hand, and the Seller or any of its Affiliates (other
than the Company and/or the Company Subsidiaries), on the other hand, shall be
fully and finally settled, except for amounts outstanding pursuant to the
Remaining Intercompany Contracts. No adjustment shall be made to the Purchase
Price as a result of any such settlement.

      Section 2.5 Purchase Price Adjustments.

            (a) At least three (3) days prior to the Closing, the Seller shall
      prepare in good faith and deliver to the Purchaser a consolidated balance
      sheet of the Company as of the Closing Date (the "Preliminary Closing
      Balance Sheet"), substantially in the form of

                                      -9-
<PAGE>
      Exhibit 2.5 hereto, and a calculation of (i) the estimated Net Working
      Capital of the Company, on a consolidated basis, as of such date (the
      "Estimated Net Working Capital Calculation"), and (ii) the estimated Debt
      of the Company, on a consolidated basis, as of such date after giving
      effect to any prepayment of Debt of the Company and the Company
      Subsidiaries to occur on or before the Closing Date (the "Estimated Debt
      Calculation"). The Preliminary Closing Balance Sheet, Estimated Net
      Working Capital Calculation and Estimated Debt Calculation shall be
      prepared in accordance with GAAP and in a manner consistent with the
      application of the accounting principles applied in preparing the
      Financial Statements, and, pursuant to Section 2.4, no intercompany
      accounts shall be included except as permitted under Section 2.4. The
      determination of the Estimated Net Working Capital Calculation and
      Estimated Debt Calculation shall be used to determine the Purchase Price
      payable by the Purchaser at Closing. The Purchase Price payable by the
      Purchaser to the Seller at Closing shall be (i) decreased by the amount of
      the Estimated Debt Calculation, and (ii) increased or decreased, as the
      case may be, by the amount by which the Estimated Net Working Capital
      Calculation exceeds or is less than $1,061,000.

            (b) Within thirty (30) days following the Closing Date, the
      Purchaser shall prepare in good faith and deliver to the Seller the final
      consolidated balance sheet of the Company as of the Closing Date (the
      "Final Closing Balance Sheet") and the Purchaser's calculation of (i) the
      final Net Working Capital of the Company, on a consolidated basis, as of
      the Closing Date (the "Final Net Working Capital Calculation"), and (ii)
      the final Debt of the Company, on a consolidated basis, as of the Closing
      Date (the "Final Debt Calculation"). The Final Closing Balance Sheet,
      Final Net Working Capital Calculation and Final Debt Calculation each
      shall be prepared in accordance with GAAP as in effect on the Closing Date
      and in a manner consistent with the application of the accounting
      principles applied in preparing the Financial Statements, and, pursuant to
      Section 2.4, no intercompany accounts shall be included except as
      permitted under Section 2.4. Within thirty (30) days after the Final
      Closing Balance Sheet, Final Net Working Capital Calculation and Final
      Debt Calculation are delivered to the Seller pursuant to this Section
      2.5(b), the Seller shall complete its examination thereof and shall
      deliver to the Purchaser either (i) a written acknowledgment accepting the
      Final Closing Balance Sheet, Final Net Working Capital Calculation and
      Final Debt Calculation; or (ii) a written report setting forth in
      reasonable detail any proposed adjustments to any of the foregoing (the
      "Adjustment Report"). If the Seller fails to respond to the Purchaser
      within such thirty (30) day period, the Seller shall be deemed to have
      accepted and agreed to the Final Closing Balance Sheet, Final Net Working
      Capital Calculation and Final Debt Calculation as delivered pursuant to
      this Section 2.5(b). If the Seller provides an Adjustment Report to the
      Purchaser within such thirty (30) day period, the Seller shall be deemed
      to have accepted and agreed to the Final Closing Balance Sheet, Final Net
      Working Capital Calculation and Final Debt Calculation as delivered
      pursuant to this Section 2.5(b), except as to the proposed adjustments set
      forth in the Adjustment Report.

            (c) In the event the Parties fail to agree on any of the Seller's
      proposed adjustments contained in the Adjustment Report within thirty (30)
      days after the Purchaser receives the Adjustment Report, then the Parties
      mutually agree to jointly engage Ernst & Young LLP, certified public
      accountants (the "Independent Auditors"),

                                      -10-
<PAGE>
      to resolve such dispute(s). As promptly as practicable thereafter, Seller
      and the Purchaser shall each prepare and submit a presentation to the
      Independent Auditors. In making their determination, the Independent
      Auditors shall select, with respect to each item in dispute, an amount
      equal to the Purchaser's position as set forth in the Final Closing
      Balance Sheet, Final Net Working Capital Calculation or Final Debt
      Calculation, as applicable, or the Seller's position as set forth in the
      Adjustment Report, or any amount between the Purchaser's and the Seller's
      position. The fees and expenses of the Independent Auditors shall be paid
      equally by the Parties. All determinations made by the Independent
      Auditors will be final, conclusive and binding on the Parties.

            (d) The term "Final Closing Balance Sheet" as that term has been
      hereinbefore and will be hereinafter used, shall mean the Final Closing
      Balance Sheet delivered pursuant to Section 2.5(b), as adjusted, if at
      all, pursuant to this Section 2.5. The date on which the Final Closing
      Balance Sheet is finally determined pursuant to this Section 2.5 shall
      hereinafter be referred to as the "Settlement Date."

            (e) In the event the Final Net Working Capital Calculation as
      reflected on the Final Closing Balance Sheet is less than the Estimated
      Net Working Capital Calculation, the Seller shall pay to the Purchaser
      within ten (10) days after the Settlement Date an amount equal to such
      deficiency plus accrued interest on such deficiency at the Applicable Rate
      from the date such deficiency is due to the date of payment of such
      deficiency and accrued interest. In the event the Final Net Working
      Capital Calculation as reflected on the Final Closing Balance Sheet is
      greater than the Estimated Net Working Capital Calculation, the Purchaser
      shall pay to the Seller within ten (10) days after the Settlement Date an
      amount equal to such excess plus accrued interest on such excess at the
      Applicable Rate from the date such excess is due to the date of payment of
      such excess and accrued interest.

            (f) In the event Final Debt Calculation as reflected on the Final
      Closing Balance Sheet is less than the Estimated Debt Calculation, the
      Purchaser shall pay to the Seller within ten (10) days after the
      Settlement Date an amount equal to such excess plus accrued interest on
      such excess at the Applicable Rate from the date such excess is due to the
      date of payment of such excess and accrued interest. If the Final Debt
      Calculation as reflected on the Final Closing Balance Sheet is more than
      the Estimated Debt Calculation, the Seller shall pay to the Purchaser
      within ten (10) days after the Settlement Date an amount equal to such
      deficiency plus accrued interest on such deficiency at the Applicable Rate
      from the date such deficiency is due to the date of payment of such
      deficiency and accrued interest.

            (g) Any payment required pursuant to Sections 2.5(e) or (f) hereof
      shall be by certified or cashier's check, or, at the option of the
      recipient, by the transfer of immediately available federal funds for
      credit to the recipient, at a bank account designated by such recipient in
      writing.

            (h) For purposes of complying with the terms set forth in this
      Section 2.5, each Party shall cooperate with and make available to the
      other Party and its representatives all information, records, data and
      working papers, and shall permit access

                                      -11-
<PAGE>
      to its facilities and personnel, as may be reasonably required in
      connection with the preparation and analysis of the Final Closing Balance
      Sheet and the resolution of any disputes relating to the Final Net Working
      Capital Calculation or Final Debt Calculation, subject to the execution by
      either Party of any confidentiality agreement reasonably requested by the
      other Party.

      Section 2.6 Sales and Transfer Taxes. Each Party shall bear an equal
portion of the cost of any and all stamp, transfer, goods and services, sales,
purchase, use, filing, value added, excise and similar Taxes relating to the
transactions contemplated by this Agreement, including, without limitation, any
stamp or transfer Tax or filing fee relating to the transfer of shares of
capital stock, whether now in effect or hereafter adopted and regardless of upon
whom said tax or fee is imposed. Notwithstanding the foregoing, any state or
county transfer or stamp taxes payable in connection with the Real Property
shall be borne by the Seller, and any city transfer or stamp taxes payable in
connection with the Real Property shall be borne by the Purchaser.

                                   ARTICLE III
                           CLOSING; CLOSING DELIVERIES

      Section 3.1 Closing. The consummation of the transactions contemplated by
this Agreement (the "Closing") shall take place on the date on which the
conditions (excluding conditions that, by their terms, cannot be satisfied until
the Closing) set forth in Articles 7 and 8 are satisfied or waived (the "Closing
Date") or at such other time and date as the Parties may agree in writing. The
Closing shall be held at 10:00 a.m. at the offices of Winston & Strawn, 35 West
Wacker Drive, Chicago, Illinois, or such other place as the Parties may agree in
writing.

      Section 3.2 Deliveries by the Seller at Closing. At Closing, the Seller
will deliver or cause to be delivered to the Purchaser the following:

            (a) certificates representing all of the Shares, endorsed by the
      Seller in blank, or with stock transfer powers executed by the Seller in
      blank attached;

            (b) a certificate, dated the Closing Date and signed by the
      President or the Chief Financial Officer of the Seller, certifying the
      fulfillment of the matters set forth in Section 8.1;

            (c) a certificate, dated the Closing Date and signed by the
      Secretary or an Assistant Secretary of the Seller, certifying as to (i)
      the completeness and correctness of attached copies of the Seller's
      certificate of incorporation and bylaws (including amendments thereto),
      (ii) resolutions of the board of directors and sole stockholder of the
      Seller approving the execution, delivery and performance of this Agreement
      and the consummation of the transactions contemplated hereby, (iii) the
      incumbency and signatures of the officers of the Seller executing this
      Agreement and any other certificate or document delivered in connection
      herewith, and (iv) the resignation or removal from office of such
      officers, directors and/or managers of the Company and each Company
      Subsidiary as the Purchaser shall have previously requested in writing and
      the genuineness of the attached copies of the documents effecting such
      resignations and/or removals;

                                      -12-
<PAGE>
            (d) a certificate, dated the Closing Date and signed by the
      Secretary or an Assistant Secretary of Exelon, certifying as to (i) the
      completeness and correctness of attached copies of Exelon's certificate of
      incorporation and bylaws (including amendments thereto), (ii) resolutions
      of the board of directors of Exelon approving the execution, delivery and
      performance of this Agreement and the consummation of the transactions
      contemplated hereby, and (iii) the incumbency and signatures of the
      officers of Exelon executing this Agreement and any other certificate or
      document delivered in connection herewith;

            (e) the charters of the Company and the Company Subsidiaries,
      certified by the Secretary of State of their respective states of
      organization as of a date not earlier than fifteen (15) days prior to the
      Closing Date;

            (f) certificates, dated as of a date not more than thirty (30) days
      prior to the Closing Date, duly issued by the appropriate governmental
      authorities in the states specified on Schedule 3.2(f), showing the
      Company and the Company Subsidiaries are in good standing and authorized
      to do business in the jurisdictions indicated thereon;

            (g) the original stock books, original corporate minute books and
      the corporate seal (if any) of the Company and the Company Subsidiaries;

            (h) amendments, in form for filing with the Secretary of State of
      their states of organization, to the charter of the Company and each
      Company Subsidiary to change the name of the Company or such Company
      Subsidiary to remove all references to "Exelon," together with written
      instructions to the registered agent for service of process for the
      Company and the Company Subsidiaries instructing such agent to take
      direction from the Purchaser;

            (i) a Release of Claims, in substantially the form attached hereto
      as Exhibit 3.2(i);

            (j) the Transition Services Agreement duly executed by the Seller;

            (k) a legal opinion, substantially in the form attached hereto as
      Exhibit 3.2(k), from Winston & Strawn LLP, counsel to the Seller;

            (l) a termination of the Letter Agreement duly executed by Seller,
      in form and substance reasonably acceptable to the Purchaser;

            (m) a certificate, duly executed by or on behalf of the Seller,
      complying with Code Section 1445 and Section 1.1445-2 of the Treasury
      Regulations promulgated thereunder;

            (n) the other documents, certificates, consents and items to be
      delivered by the Seller pursuant to Article 8; and

                                      -13-
<PAGE>
            (o) such other documents, instruments, agreements and certificates
      as the Purchaser may reasonably request in connection with the
      consummation of the transactions contemplated by this Agreement on the
      terms set forth herein.

      Section 3.3 Deliveries by the Purchaser at Closing. At the Closing, the
Purchaser will deliver or cause to be delivered to the Seller the following:

            (a) payment of the Purchase Price to the Seller in accordance with
      Section 2.2;

            (b) a certificate, dated the Closing Date and signed by the
      President or any Vice President of the Purchaser, certifying the
      fulfillment of the matters set forth in Section 7.1;

            (c) certificates, dated as of a date not more than thirty (30) days
      prior to the Closing Date, duly issued by the appropriate governmental
      authorities showing that each of the Purchaser, District Energy and
      Macquarie is in good standing in its jurisdiction of organization;

            (d) a certificate, dated the Closing Date and signed by the
      Secretary or an Assistant Secretary of the Purchaser certifying as to (i)
      the completeness and correctness of attached copies of the Purchaser's
      certificate of incorporation and bylaws (including amendments thereto),
      (ii) resolutions of the board of directors and sole stockholder of the
      Purchaser approving the execution, delivery and performance of this
      Agreement and the consummation of the transactions contemplated hereby,
      (iii) the incumbency and signatures of the officers of the Purchaser
      executing this Agreement and any other certificate or document delivered
      in connection herewith;

            (e) a certificate, dated the Closing Date and signed by the
      Secretary or an Assistant Secretary of District Energy certifying as to
      (i) the completeness and correctness of attached copies of District
      Energy's certificate of incorporation and bylaws (including amendments
      thereto), (ii) resolutions of the board of directors and sole stockholder
      of District Energy approving the execution, delivery and performance of
      this Agreement and the consummation of the transactions contemplated
      hereby, (iii) the incumbency and signatures of the officers of District
      Energy executing this Agreement and any other certificate or document
      delivered in connection herewith;

            (f) (i) a power of attorney evidencing the appointment of certain
      individuals as authorized signatories with the power to execute this
      Agreement and any other certificate or document delivered in connection
      herewith on behalf of Macquarie, (ii) a certificate dated the Closing Date
      and signed by the Secretary of Macquarie certifying as to the validity of
      the Persons counter-signing an impression of the Common Seal of Macquarie,
      together with supporting extracts of Macquarie's Constitution and the
      minutes of the board of Macquarie and (iii) a certificate dated the
      Closing Date and signed by the attorneys of Macquarie pursuant to the
      power of attorney specified in clause (i) certifying that such attorneys
      have not received notice of revocation of their powers under the power of
      attorney specified in clause (i);

                                      -14-
<PAGE>
            (g) the Transition Services Agreement duly executed by the
      Purchaser;

            (h) a legal opinion, substantially in the form attached hereto as
      Exhibit 3.3(h), from Locke Liddell & Sapp LLP, counsel to the Purchaser;

            (i) the other documents, certificates and items to be delivered by
      the Purchaser pursuant to Article 7; and

            (j) such other documents, instruments, agreements and certificates
      as the Seller may reasonably request in connection with the consummation
      of the transactions contemplated by this Agreement on the terms set forth
      herein.

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

   As an inducement to the Purchaser to enter into and perform its obligations
under this Agreement, and in consideration of the covenants of the Purchaser
contained herein, the Seller represents and warrants to the Purchaser as
follows:

      Section 4.1 Due Organization and Status. Each of the Seller, the Company
and the Company Subsidiaries is an entity duly organized, validly existing and
in good standing under the laws of the state of its organization. Each of the
Company and the Company Subsidiaries is duly authorized to conduct business and
is in good standing under the laws of each jurisdiction where such qualification
is required, except where the lack of such qualification would not have a
Material Adverse Effect. Each of the Company and the Company Subsidiaries has
full power and authority to carry on the businesses in which it is engaged and
to own and use the properties owned and used by it. The copies of the
Organizational Documents of the Company and the Company Subsidiaries, all of
which have been furnished to the Purchaser, reflect all amendments made thereto
and are true, complete and correct. The minute books (containing the records of
meetings of the stockholders, partners, the board of directors or the managers
of the Company and the Company Subsidiaries (as applicable), all of which have
been furnished to the Purchaser) are true, complete and correct in all material
respects. The stock certificate books and stock record books or similar books
and records of the Company and each Company Subsidiary, all of which have been
furnished to the Purchaser, are true, complete, and correct in all material
respects.

      Section 4.2 Authority; Enforceability. The Seller has the full corporate
power and authority to execute and deliver this Agreement and to perform its
obligations hereunder. Without limiting the generality of the foregoing, the
board of directors and the sole stockholder of the Seller have duly authorized
the execution, delivery and performance of this Agreement by the Seller. This
Agreement constitutes the valid and legally binding obligation of the Seller,
enforceable against the Seller in accordance with its terms, except as
enforceability hereof may be subject to the effects of bankruptcy, insolvency,
reorganization, moratorium or other laws affecting the rights of creditors, and
general principles of equity.

      Section 4.3 Noncontravention. Except as set forth on Schedule 4.3, neither
the execution and the delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, will (i) violate any constitution, statute,
regulation, rule, injunction,

                                      -15-
<PAGE>
judgment, order, decree, ruling, charge, or other restriction of any foreign,
federal, state or local government, governmental agency or commission or other
governmental or regulatory body or authority, or court to which the Seller, the
Company or any Company Subsidiary is subject or any provision of the
Organizational Documents of the Seller, the Company or any Company Subsidiary or
(ii) conflict with, result in a breach of, constitute a default under, result in
the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any agreement, contract, lease,
license, instrument, or other arrangement (other than agreements relating to
Debt which will be repaid, repurchased or otherwise redeemed at or prior to the
Closing) to which the Seller, the Company or any Company Subsidiary is a party
or by which it is bound or to which any of its assets is subject (or result in
the imposition of any Security Interest upon any of its assets), except in the
case of clause (ii) where such conflict, breach, default, acceleration,
termination, modification, cancellation, failure to give notice or Security
Interest would not have a Material Adverse Effect. Except as contemplated by
Section 6.1 and as set forth on Schedule 4.3, neither the Seller, the Company
nor any Company Subsidiary needs to give any notice to, make any filing with, or
obtain any Authorization, or obtain any consent or approval of any other party
in connection with the consummation of the transactions contemplated by this
Agreement.

      Section 4.4 Capital Stock of the Company; Transactions in Equity
Securities.

            (a) The authorized, issued and outstanding capital stock of the
      Company is as set forth on Schedule 4.4. No shares of capital stock of the
      Company are held in treasury by the Company. The Seller owns beneficially
      and of record all of the outstanding shares of capital stock of the
      Company and such capital stock is owned free and clear of all liens,
      Security Interests, charges, voting trusts, restrictions, encumbrances and
      claims of every kind. The Shares have been duly authorized and validly
      issued, are fully paid and nonassessable and were offered, issued, sold
      and delivered by the Company in compliance with all applicable state and
      federal laws concerning the issuance of securities. Further, none of the
      Shares were issued in violation of any preemptive or similar rights of any
      past or present stockholder or other person or entity. The Seller does not
      have, and the Seller hereby waives, any preemptive or other right to
      acquire shares of capital stock of the Company that the Seller has or may
      have had.

            (b) No subscription, option, warrant, call, conversion right or
      commitment of any kind exists which obligates the Company to issue any of
      its authorized but unissued equity securities. The Company has no
      obligation (contingent or otherwise) to purchase, redeem or otherwise
      acquire any of its equity securities or any interests therein or to pay
      any dividend or make any distribution in respect thereof. The voting stock
      structure of the Company has not been altered or changed in contemplation
      of the transactions contemplated by this Agreement.

      Section 4.5 Subsidiaries.

            (a) Schedule 4.5 sets forth the issued and outstanding capital stock
      or other ownership interests of Exelon Thermal Technologies, Inc., an
      Illinois corporation ("ETT"), Northwind Chicago, LLC, a Delaware limited
      liability company ("Northwind Chicago"), ETT National Power, Inc., an
      Illinois corporation ("National Power"), and

                                      -16-
<PAGE>
      Northwind Midway, LLC, a Delaware limited liability company ("Northwind
      Midway"). The Company owns beneficially and of record all of the
      outstanding ownership interests of ETT, Northwind Chicago and National
      Power. National Power owns beneficially and of record all of the ownership
      interests of Northwind Midway. All such ownership interests are owned free
      and clear of all liens, Security Interests, charges, voting trusts,
      restrictions, encumbrances and claims of every kind except as set forth on
      Schedule 4.5.

            (b) The ownership interests of each Company Subsidiary have been
      duly authorized and validly issued, are fully paid and nonassessable and
      were offered, issued, sold and delivered by the applicable Company
      Subsidiary in compliance with all applicable state and federal laws
      concerning the issuance of securities and in accordance with such Company
      Subsidiary's Organizational Documents. None of such equity interests were
      issued in violation of any preemptive or similar rights of any Person and
      no Person has any preemptive or other right to acquire any equity interest
      in any Company Subsidiary. No subscription, option, warrant, call,
      conversion right or commitment of any kind exists which obligates any
      Company Subsidiary to issue any of its ownership interests. No Company
      Subsidiary has any obligation (contingent or otherwise) to purchase,
      redeem or otherwise acquire any of its ownership interests or to pay any
      dividend or make any distribution in respect thereof. ETT, Northwind
      Chicago, National Power, and Northwind Midway are the only Subsidiaries
      owned directly or indirectly by the Company, and the Company does not own,
      directly or indirectly, any shares of capital stock, voting rights or
      other equity interests or investments in any other Person. Except as set
      forth in this Section 4.5, neither the Company nor any Company Subsidiary
      owns nor has owned, directly or indirectly, any shares of capital stock,
      voting rights or other equity interests or investments in any other
      Person. Neither the Company nor any Company Subsidiary engages in any
      activities or businesses other than the business of using, operating and
      maintaining the District Cooling System, the ownership of
      telecommunication fiber and activities reasonably related or ancillary
      thereto.

      Section 4.6 Books and Records. All books and corporate records (including,
without limitation, minute books and stock record books) of the Company and the
Company Subsidiaries are complete and correct in all material respects.

      Section 4.7 Financial Statements. The Seller has provided the financial
statements identified on Schedule 4.7 (collectively, the "Financial Statements")
to the Purchaser. The Financial Statements have been prepared in accordance with
GAAP applied on a consistent basis throughout the periods covered thereby, are
correct and complete and present fairly in all material respects the financial
condition of the Company and the Company Subsidiaries identified therein as of
such dates and the results of operations of such entities for such periods and
are consistent with the books and records of such entities, subject, in the case
of interim financial statements, to normal and recurring year end adjustments
and, in the case of the unaudited financial statements, the absence of notes.
The books and records underlying the Financial Statements accurately and fairly
reflect the transactions of the Company and the Company Subsidiaries in all
material respects. None of the Company or any of the Company Subsidiaries has
any liabilities which would be required to be reflected in financial statements
and accompanying notes prepared in accordance with GAAP except for (a)
liabilities reflected in

                                      -17-
<PAGE>
the Financial Statements, or (b) liabilities which have arisen after December
31, 2002 in the Ordinary Course of Business.

      Section 4.8 Absence of Changes. Except as otherwise contemplated herein or
as set forth in the applicable subsection of Schedule 4.8, since December 31,
2002, neither the Company nor any Company Subsidiary has:

            (a) suffered any Material Adverse Effect (nor, to the Seller's
      Knowledge, do any facts exist which are reasonably likely to result in a
      Material Adverse Effect);

            (b) canceled any indebtedness owing to the Company or any Company
      Subsidiary or waived any material claims or rights, including, without
      limitation, any rights under any of its material contracts, leases or
      Authorizations, except in the Ordinary Course of Business;

            (c) sold, transferred or otherwise disposed of any of its assets or
      properties except in the Ordinary Course of Business;

            (d) made any material change in any method of accounting or
      accounting practice, made any adjustments to its books and records, or
      recharacterized any assets or liabilities in any material respect, except
      to the extent required by GAAP;

            (e) written off as uncollectible any notes or accounts receivable,
      other than in the Ordinary Course of Business;

            (f) made any single capital expenditure commitment in excess of
      $250,000 for additions to property, plant, equipment or tangible capital
      assets or made capital expenditure commitments in excess of $2,700,000 in
      the aggregate for additions to property, plant, equipment or tangible
      capital assets;

            (g) had any material labor dispute or received notice of any
      grievance that triggered an arbitration under any collective bargaining
      agreement;

            (h) borrowed or agreed to borrow any funds other than funds borrowed
      from the Seller, the Company or any Company Subsidiary;

            (i) made any loans, advances or capital contributions to, or
      investments in, any other Person, other than in the Ordinary Course of
      Business;

            (j) entered into any written employment agreement with any non-union
      employee or increased in any manner the compensation of any of its
      directors, officers or non-union employees, except for such increases
      granted in the Ordinary Course of Business;

            (k) adopted, granted, extended or increased the rate or terms of any
      bonus, severance, insurance, pension or other employee benefit plan,
      payment or arrangement made to, for or with any of its directors, officers
      or employees, except in the Ordinary Course of Business;

                                      -18-
<PAGE>
            (l) made any change in its Organizational Documents or issued any
      additional equity securities or granted any option, warrant or right to
      acquire any equity securities or issue any security convertible into or
      exchangeable for its equity securities;

            (m) experienced any damage, destruction or loss (whether or not
      covered by insurance) to its assets or properties in an amount exceeding
      $250,000;

            (n) entered into any collective bargaining or similar contract, or
      modified the terms of any such existing contract; or

            (o) suffered or agreed, whether orally or in writing, to do any of
      the foregoing.

      Section 4.9 Reserved.

      Section 4.10 Legal Compliance. Each of the Company and the Company
Subsidiaries is in material compliance with all applicable laws (including
rules, regulations, codes, ordinances, plans, injunctions, judgments, orders,
decrees, rulings, and charges thereunder) of foreign, federal, state and local
governments (and all agencies thereof), including, without limitation, laws
relating to worker protection and health, as well as Anti-Corruption Laws and
any other laws that relate to contracting with governmental entities in the
State of Illinois or the City.

      Section 4.11 Taxes. Except as provided in Schedule 4.11:

            (a) The Seller, the Company and each Company Subsidiary has timely
      filed all material Tax Returns that it was required to file. All Taxes
      owed by the Company and each Company Subsidiary have been (or will be)
      timely paid, are being contested in good faith (as described in Schedule
      4.11) or are (or will be) reserved on the books of the Company. Other than
      as set forth on Schedule 4.11, neither the Company nor any Company
      Subsidiary currently is the beneficiary of any extension of time within
      which to file any Tax Return. No taxing authority in a jurisdiction where
      the Company or any Company Subsidiary does not file Tax Returns has
      asserted that the Company or any Company Subsidiary is or may be subject
      to taxation by that jurisdiction. All material Taxes not yet due and
      payable have been fully accrued on the books of the Seller, the Company or
      the applicable Company Subsidiary as the case may be.

            (b) Other than with respect to the affiliated group of which the
      Seller is a member, neither the Company nor any Company Subsidiary, nor
      the Seller acting on behalf of the Company or the Company Subsidiaries,
      has waived any statute of limitations, executed or filed with any taxing
      authority (whether federal, state, local or foreign) any agreement or
      other document extending or having the effect of extending the period for
      assessment, reassessment or collection, entered into any closing agreement
      or granted any power of attorney with respect to any Taxes.

            (c) No federal, state, local or foreign Tax audits or other
      administrative proceedings, claims, discussions or court proceedings are
      presently pending with regard to any Taxes or Tax Returns of the Company
      or any Company Subsidiary and no additional issues are being asserted
      against the Company or any Company Subsidiary in

                                      -19-
<PAGE>
      connection with any existing audits of the Company or any Company
      Subsidiary. No unpaid deficiency for any Tax has been assessed by a taxing
      authority against the Company or any Company Subsidiary.

            (d) Neither the Company nor any Company Subsidiary (i) has been a
      member of an affiliated group filing a consolidated federal Income Tax
      Return other than a group the common parent of which is Exelon or (ii)
      other than as a result of being a member of the Exelon affiliated group,
      has any liability for the Taxes of any Person other than itself and its
      direct Subsidiaries under Treasury Regulation Section 1.1502-6 under the
      Code (or any similar provision of state, local or foreign law), as a
      transferee or successor, by contract, or otherwise.

            (e) Upon giving effect to the Closing, neither the Company nor any
      Company Subsidiary is a party to or bound by any Tax allocation or sharing
      agreement with or arising by, through or under the Seller or any of its
      Affiliates.

            (f) There are no Security Interests or Tax liens against the Seller
      or the Seller's assets affecting the Shares, or against any assets of the
      Company or the Company Subsidiaries, that arose in connection with any
      failure (or alleged failure) to pay any Tax.

            (g) The Company and the Company Subsidiaries have withheld and paid
      all Taxes required to have been withheld and paid in connection with
      amounts paid or owing to any employee, independent contractor, creditor or
      other party prior to or on the Closing Date and have complied in all
      material respects with all requirements relating to such withholding.

            (h) There is no dispute or claim concerning any Tax liability of the
      Company or any of the Company Subsidiaries raised by any governmental
      authority in writing or, to the Knowledge of the Seller, threatened.

            (i) The Seller has delivered to the Purchaser complete copies of all
      separate company pro forma federal Income Tax Returns, examination
      reports, and statements of deficiencies assessed against or agreed to by
      the Company or any of the Company Subsidiaries for tax years beginning
      after December 31, 1998.

            (j) In connection with the transactions contemplated by this
      Agreement, neither the Company nor any Company Subsidiary has made any
      payments or is obligated to make any payments that will not be deductible
      under Code Sections 162(m) or 280G.

            (k) Neither the Company nor any Company Subsidiary has been a United
      States real property holding corporation within the meaning of Code
      Section 897(c)(2) during the applicable period specified in Code Section
      897(c)(1)(A)(ii).

            (l) Neither the Company nor any Company Subsidiary has engaged in
      any transaction or series of transactions within the past five years that,
      singularly or in the aggregate, are described in Code Section 355 or 361.

                                      -20-
<PAGE>
      Section 4.12 Contracts.

            (a) Schedule 4.12(a) lists all of the following written agreements
      (other than Customer Contracts, as defined below, and agreements relating
      to Debt which will be repaid, repurchased or otherwise redeemed at or
      prior to the Closing) to which the Company or any Company Subsidiary is a
      party:

                  (i) any agreement (or group of related agreements) the
            performance of which will involve annual consideration in excess of
            $250,000;

                  (ii) any energy supply agreement;

                  (iii) any agreement concerning a limited liability company,
            partnership, joint venture or similar arrangement other than the
            Organizational Documents of Northwind Chicago and Northwind Midway;

                  (iv) any agreement with a governmental department, commission,
            board, bureau, agency or instrumentality;

                  (v) any agreement (or group of related agreements) under which
            the Company or any Company Subsidiary has created, incurred,
            assumed, or guaranteed any indebtedness in excess of $250,000;

                  (vi) any agreement concerning confidentiality or
            noncompetition, other than representative confidentiality agreements
            and noncompetition restrictions entered into in the Ordinary Course
            of Business such as employment, contracting and consultant
            agreements;

                  (vii) any profit sharing, stock option, stock purchase, stock
            appreciation, deferred compensation, severance, or other similar
            agreement for the benefit of its current or former directors,
            officers, and employees and with respect to which the Company or any
            Company Subsidiary may have liability;

                  (viii) any agreement under which it has advanced or loaned any
            amount to any of its directors or officers, the Seller or any
            Affiliate of the Seller;

                  (ix) any agreement for the lease of personal property to or
            from any Person involving annual consideration in excess of
            $250,000; or

                  (x) any other agreement under which the consequences of a
            default or termination would be reasonably likely to have a Material
            Adverse Effect.

      The Seller has made available to the Purchaser a correct and complete copy
      of each agreement (including all amendments thereto) listed on Schedule
      4.12(a). All agreements listed on Schedule 4.12(a) are legal, valid and
      binding agreements of the Company or the Company Subsidiary party thereto
      and no breach or default by the Company or the Company Subsidiary party
      thereto, or to the Knowledge of the Seller, by the other party to such
      agreement, has occurred and is continuing. Neither the Seller, nor the
      Company

                                      -21-
<PAGE>
      or any Company Subsidiary has received any written notice of, nor has any
      reason to believe that there exists, any material default under any
      agreement listed on Schedule 4.12(a) that has not been cured, nor has it
      received any termination notice with respect thereto. To the Knowledge of
      the Seller, each other Person that has any obligation or liability under
      any agreement listed on Schedule 4.12(a) is in material compliance with
      all applicable terms and requirements of such agreement. There are no
      renegotiations of or attempts to renegotiate any material amounts paid or
      payable to or by the Company or any Company Subsidiary under any agreement
      listed on Schedule 4.12(a) and, to the Knowledge of the Seller, no Person
      has made written demand for such negotiation. Neither the Seller, nor the
      Company or any Company Subsidiary has waived any material claims or rights
      under any agreement listed on Schedule 4.12(a).

            (b) Part I of Schedule 4.12(b) lists all agreements between the
      Company or the Company Subsidiaries and their customers (each, a "Customer
      Contract"), including, without limitation, any Customer Contract between
      the Company or any Company Subsidiary and a governmental department,
      commission, board, bureau, agency or instrumentality. The Seller has made
      available to the Purchaser a correct and complete copy of each Customer
      Contract. None of the customers listed on Part I of Schedule 4.12(b) has
      canceled any Customer Contract to which such customer is a party or, to
      the Knowledge of the Seller, (i) threatened to cancel any Customer
      Contract to which such customer is a party or (ii) claimed that the
      Company, any Company Subsidiary, or any of their respective directors,
      officers, employees, agents, contractors or Affiliates have engaged in any
      fraudulent or deceptive practices or conduct. Except as set forth on Part
      II of Schedule 4.12(b), the Customer Contracts are legal, valid and
      binding agreements of the Company or the Company Subsidiary party thereto
      and no material breach or default by the Company or the Company Subsidiary
      party thereto, or to the Knowledge of the Seller by the customer under
      such Customer Contract, has occurred and is continuing. Except as set
      forth on Part II of Schedule 4.12(b), neither the Seller, nor the Company
      or any Company Subsidiary has received any written notice of, nor has any
      reason to believe that there exists, any material default under any
      Customer Contract that has not been cured. Except as set forth on Part II
      of Schedule 4.12(b), to the Knowledge of the Seller, each other Person
      that has any obligation or liability under any Customer Contract is in
      material compliance with all applicable terms and requirements of such
      agreement. There are no renegotiations of or attempts to renegotiate any
      material amounts paid or payable to the Company or any Company Subsidiary
      under any Customer Contract and, to the Knowledge of the Seller, no Person
      has made written demand for such negotiation. Neither the Seller, nor the
      Company or any Company Subsidiary has waived any material claims or rights
      under any Customer Contract.

            (c) The Company and the Company Subsidiaries have fully complied
      with any "most favored nation" provision in any of the Customer Contracts.

      Section 4.13 Related Party Agreements. Except as set forth on Schedule
4.13, neither the Company nor any Company Subsidiary is a party to or otherwise
bound by any agreement with the Seller or any Affiliate of the Seller (other
than the Company and the Company Subsidiaries).

                                      -22-
<PAGE>
      Section 4.14 Litigation. Schedule 4.14 sets forth each instance in which
the Company or any Company Subsidiary (i) is subject to any outstanding
injunction, judgment, order, decree, ruling, or charge or (ii) is a party to any
action, suit, claim, proceeding, hearing, or investigation of, in, or before any
court or quasi-judicial or administrative agency of any federal, state, local,
or foreign jurisdiction. No action, suit, claim, proceeding, hearing, or
investigation involving the Company or any Company Subsidiary has been
threatened in writing or, to the Knowledge of the Seller, orally.

      Section 4.15 Employee Matters. Schedule 4.15 sets forth the name, title
and employer of each employee of the Company and the Company Subsidiaries and
each employee of the Seller and its Affiliates who is assigned to the Company or
any Company Subsidiary as of the date hereof. Schedule 4.15 sets forth a list of
each Employee Benefit Plan sponsored, maintained or contributed to or required
to be contributed to by the Seller, the Company or any Company Subsidiary
applicable to such employees. Each such plan that is an Employee Pension Benefit
Plan or an Employee Welfare Benefit (other than any Multiemployer Plan) has been
operated in compliance with its written terms and the applicable provisions of
ERISA and the Code (including plan qualification requirements under the Code,
where applicable). Except as disclosed on Schedule 4.15, neither the Company nor
any Company Subsidiary has incurred any material liability for any violation of
Title I of ERISA nor any material liability under Title IV of ERISA, in each
case, that remains unpaid, other than liability for premiums to the Pension
Benefit Guaranty Corporation for the current Plan Year; no lien has been imposed
under Section 412(n) of the Code; the Company and the Company Subsidiaries have
complied in all material respects with all obligations under Section 4980B of
the Code; and neither the Company nor any Company Subsidiary has engaged in any
Prohibited Transaction under Section 406 of ERISA or Section 4975 of the Code
for which full correction has not been made. Except as disclosed on Schedule
4.15, there are no pending or, to the Seller's Knowledge, threatened, claims,
actions, suits, proceedings, hearings, examinations or investigations involving
the Employee Benefit Plans disclosed on Schedule 4.15 (other than routine claims
for benefits) that would reasonably be expected to have a Material Adverse
Effect. The Company and the Company Subsidiaries have not incurred, and do not
reasonably expect to incur, any material liability that has not been satisfied
in connection with any Multiemployer Plans disclosed on Schedule 4.15 on account
of "complete withdrawal" or "partial withdrawal" as such terms are respectively
defined in Sections 4203 and 4205 of ERISA. No payment under any Employee
Benefit Plan, incentive compensation plan or employment agreement made by the
Company or any Company Subsidiary incident to the transactions contemplated
hereunder will constitute an "excess parachute payment" within the meaning of
Section 280G(b) of the Code. With the exception of Tibor Jozsa, no Employee is
covered by the UTT Nevada Severance Plan and Tibor Jozsa is not covered by the
Exelon Corporation Severance Benefit Plan.

      Section 4.16 Credit Enhancements. Schedule 4.16 sets forth a true,
accurate and complete list of all guaranties, sureties, letters of credit,
performance bonds guaranteeing the performance of the Company and any Company
Subsidiary, and similar undertakings ("Credit Enhancements") maintained or
currently required to be maintained by or for the Company and/or the Company
Subsidiaries in connection with the conduct of their respective businesses other
than agreements relating to Debt which will be repaid, repurchased or otherwise
redeemed at or prior to the Closing.

                                      -23-
<PAGE>
      Section 4.17 Authorizations. Schedule 4.17 sets forth a true, accurate and
complete list of all material Authorizations held by the Company and the Company
Subsidiaries which are necessary to operate their businesses as presently
conducted, and any material Authorizations which are pending approval or renewal
on the date hereof. The Company and, to the extent applicable, each Company
Subsidiary is in material compliance with all of the terms and requirements of
any Authorization identified or required to be identified on Schedule 4.17. The
Authorizations listed on Schedule 4.17 have been issued to, and duly obtained
and fully paid for by, the holder thereof and are valid and in full force and
effect, and neither the Seller, the Company nor any Company Subsidiary has
received any notice that any governmental authority intends to cancel, terminate
or not renew any such Authorization. To the Knowledge of the Seller, no event
has occurred or circumstance exists, including, without limitation, the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, that may (with or without notice or lapse of
time) constitute or result directly or indirectly in the revocation, withdrawal,
suspension, modification, or termination of any Authorization listed or required
to be listed on Schedule 4.17. All applications required to have been filed for
the renewal of any material Authorization held by the Company or any Company
Subsidiary that expires by its terms on or prior to the Closing Date have been
duly filed on a timely basis with the appropriate governmental agency, authority
or commission.

      Section 4.18 Insurance. Schedule 4.18 sets forth a correct and complete
list of all current insurance policies insuring the properties, assets,
employees, directors, officers and/or operations of the Company and the Company
Subsidiaries (collectively, the "Policies"), as well as any claims pending or
outstanding thereunder. The Seller has paid all premiums due and owing under
such Policies, and the Seller, the Company and the Company Subsidiaries have
complied in all material respects with the terms and conditions of all such
Policies. There is no claim by or relating to the Company or any Company
Subsidiary pending under any of the Policies as to which coverage has been
questioned, denied or disputed by the underwriters or issuers of such Policies.

      Section 4.19 Real Property.

            (a) Schedule 4.19(a) lists (i) all real property currently owned,
      leased or subleased by the Company or any Company Subsidiary, (ii) all
      easements in favor of, or used or occupied by, the Company or any Company
      Subsidiary (excluding any easements granted by any customers for purposes
      of providing chilled water or contained in or granted by any Customer
      Contracts) and (iii) all leases, easement agreements and other agreements
      granting rights in the property described in (i) and (ii) of this sentence
      to the Company or a Company Subsidiary, as applicable. All amounts due and
      payable as of the date hereof by the Company or any Company Subsidiary
      under such leases, easement agreements and other agreements have been paid
      or are due and payable but not yet delinquent.

            (b) The Company and the Company Subsidiaries have (i) good and
      marketable fee simple title to the Owned Property, (ii) valid rights under
      the Easements and (iii) valid leasehold estates in the Leased Property, in
      each case, free and clear of all Security Interests (other than Security
      Interests which will be released at or prior to Closing).

                                      -24-
<PAGE>
            (c) Other than pursuant to this Agreement or as set forth in
      Schedule 4.19(c), there are no outstanding options, rights of first offer,
      rights of first refusal or contracts to purchase the Real Property or any
      portion thereof or interest therein. Neither the Company nor any Company
      Subsidiary is a party to any agreement or option to purchase any real
      property or interest therein (other than the Leases for Plants 1 and 3
      described on Schedule 4.19(a)).

            (d) Each lease (including any option to purchase contained therein)
      pursuant to which Company or any Company Subsidiary leases any real
      property (each, a "Lease," and collectively, the "Leases") and each
      Easement is in full force and effect. Except as set forth in Part I of
      Schedule 4.19(d), the interests of the Company and the Company
      Subsidiaries in the Leases and the Easements are not subject to any
      Security Interests that would entitle the holder thereof to interfere with
      or disturb in any material respect (i) the lessee's use and enjoyment of
      the subject leased premises or the exercise of the lessee's rights under
      the Leases while the lessee is not in default thereunder or (ii) the
      grantee's use and enjoyment of the Easement or the exercise of the
      grantee's rights under the Easements while the grantee is not in default
      thereunder. Except as set forth in Part II of Schedule 4.19(d), there
      exists no default or event of default (or any event that with notice or
      lapse of time or both would become a default) on the part of the Company
      or any Company Subsidiary, or, to the Knowledge of Seller, any other
      party, under any Lease or Easement. Seller has made available to the
      Purchaser complete and correct copies of all Leases and Easements,
      including all amendments thereto. Except as set forth in Part III of
      Schedule 4.19(d), neither the Company nor any Company Subsidiary has
      received any written notice of any default under any Lease or Easement
      that has not been cured nor any other termination notice with respect
      thereto.

            (e) Except as set forth in Schedule 4.19(e) and except for any
      rights of access with respect to any Leased Property or Easements which
      are, pursuant to the terms of the applicable Lease or Easement,
      nonexclusive in nature, there are no leases, subleases, licenses or other
      occupancy agreements relating to the Real Property with respect to which
      the Company or a Company Subsidiary is lessor, sublessor, licensor or the
      like, and no third party is in possession of any of the Real Property.

            (f) Neither the Company nor any Company Subsidiary has Knowledge of
      or has received written notice of any violation of any applicable zoning
      ordinance or other law, regulation or requirement relating to the
      development or operation of any Real Property. Neither the Company nor any
      Company Subsidiary has received written notice of any actions, suits or
      proceedings (including condemnation proceedings) pending, or to the
      knowledge of the Company or any Company Subsidiary, threatened, against
      any portion of the Real Property. To the Knowledge of Seller, no
      improvements have been made or authorized by any applicable governmental
      authority which will or could result in the Company or any Company
      Subsidiary being liable (in whole or in part and pursuant to a Lease,
      Easement or otherwise) for any special taxes or charges against any of the
      Real Property. Neither the Company nor any Company Subsidiary has received
      written notice of any special assessments affecting any of the Real
      Property for which the Company or any Company Subsidiary is liable (in
      whole or in part and pursuant to a Lease, Easement or otherwise).

                                      -25-
<PAGE>
            (g) Each parcel of Owned Property has direct access to a public
      street adjoining such Owned Property either directly or through an
      Easement. None of the improvements located on the Owned Property is
      dependent for its access, use or operation on any land, building,
      improvement or other real property interest that is not included in the
      Real Property. The Leased Property and real property subject to the
      Easements have access to a public street either directly or through rights
      of access which are non-exclusive in nature and granted pursuant to the
      applicable Lease or Easement.

            (h) The entire continuous length of the pipelines that comprise a
      part of the District Cooling System is covered by (i) the District Cooling
      System Use Agreement and the ancillary agreements contemplated thereby,
      (ii) rights granted to the Company or a Company Subsidiary pursuant to the
      Customer Contracts or easements granted by customers for purposes of
      providing chilled water (such rights are herein called "Customer
      Easements"), and/or (iii) other easements or rights, which permit the
      Company or the Company Subsidiaries to install, construct, operate,
      maintain and use such pipelines within the lands covered thereby and
      provide the Company or Company Subsidiaries such rights incidental thereto
      as are necessary to operate and maintain the District Cooling System (the
      "Other Rights"). The District Cooling System Use Agreement, each Customer
      Easement and the Other Rights are in full force and effect, enforceable
      against the Company or a Company Subsidiary, as the case may be, and, to
      the Knowledge of Seller, enforceable against the grantor thereof in
      accordance with its terms subject to bankruptcy, insolvency,
      reorganization, moratorium and other similar laws of general application
      affecting the rights and remedies of creditors and to general principles
      of equity (regardless of whether enforceability is considered in a
      proceeding in equity or at law). Except as set forth in Part I of Schedule
      4.19(h), there exists no default or event of default (or any event or
      condition that with notice or lapse of time or both would become a
      default) on the part of the Company or any Company Subsidiary, or, to the
      Knowledge of Seller, any other party, under the District Cooling System
      Use Agreement, any Customer Easement or the Other Rights. Seller has made
      available to the Purchaser complete and correct copies of the District
      Cooling System Use Agreement and all Customer Easements, including all
      amendments thereto. Except as set forth in Part II of Schedule 4.19(h),
      neither the Company nor any Company Subsidiary has received any written
      notice of any default under the District Cooling System Use Agreement, any
      Customer Easement or the Other Rights that has not been cured nor any
      other termination notice with respect thereto.

            (i) Except as set forth in Schedule 4.19(i), neither the Company nor
      any of the Company Subsidiaries is in default as a result of an
      unfulfilled construction obligation (other than maintenance and repair
      obligations) under any of the Leases, the Easements or the Customer
      Contracts.

            (j) ETT is the holder of 100% of the beneficial interest under a
      certain Trust Agreement dated April 26, 1994 creating Trust Number
      1099363.

            (k) ETT is the holder of 100% of the beneficial interest under a
      certain Trust Agreement dated April 29, 1993 creating Trust Number
      116920-01, as amended by a certain Assignment dated April 21, 1994.

                                      -26-
<PAGE>
      Section 4.20 Environmental Matters. Except as provided in Schedule 4.20:

            (a) Each of the Company, the Company Subsidiaries and each Business
      Facility are in compliance in all material respects with all Environmental
      Laws.

            (b) Neither the Company nor any Company Subsidiary has received any
      written notice of any claim, order, judgment, injunction, consent
      agreement, decree, proceeding or investigation that it or its assets,
      business or operations is in violation of or alleged to be in violation of
      any Environmental Law.

            (c) There has been no release, discharge or disposal of any
      Hazardous Material or Solid Waste in material violation of Environmental
      Laws, or which currently constitutes an exceedance of applicable clean-up
      standards under Environmental Laws at, on or from any Business Facility;
      further, no such Business Facility is subject to any ongoing or pending
      Remediation under Environmental Laws.

            (d) Except as in material compliance with Environmental Laws
      (including, without limitation, by obtaining necessary Environmental
      Permits), no Hazardous Materials or Solid Wastes have been used, stored,
      located or disposed of, or in any other way released (and to the Knowledge
      of the Seller no release is currently threatened) on or under any Business
      Facility, or transferred or transported to or from any Business Facility.

            (e) Neither the Company nor any Company Subsidiary has received any
      written information request or notice of potentially responsible party
      status regarding any location at which any Hazardous Material or Solid
      Waste for which the Company or any Company Subsidiary arranged for
      disposal, have come to be located or disposed.

            (f) There are no material claims, orders, judgments, injunctions,
      consent agreements, decrees, proceedings or investigations of any kind or
      nature pending or, or to the Knowledge of the Seller, threatened against
      the Company, any Company Subsidiary, or any of their respective Business
      Facilities which relate to violations, alleged violations or
      non-compliance with Environmental Laws, nor to the Knowledge of the Seller
      is there a factual basis for same.

            (g) The Company and the Company Subsidiaries possess, and have
      timely filed applications for renewal of, all Environmental Permits
      necessary for their current Business Facilities to be conducted in
      material compliance with all Environmental Laws. The Company, the Company
      Subsidiaries and their respective current Business Facilities, assets,
      business and operations are in material compliance with terms and
      conditions of such Environmental Permits.

            (h) To the Knowledge of the Seller, neither the Company nor any
      Company Subsidiary has any indebtedness or liability in excess of $100,000
      relating to Hazardous Materials, or non-compliance or alleged violations
      of Environmental Laws that is not shown or provided in the Financial
      Statements, other than liabilities incurred or accrued in the Ordinary
      Course of Business since December 31, 2002.

                                      -27-
<PAGE>
            (i) To the Knowledge of the Seller, there is no present requirement
      of Environmental Laws that requires future compliance costs on the part of
      the Company or any Company Subsidiary for capital upgrades, replacements
      or additions in excess of $100,000 above costs currently expended in the
      Ordinary Course of Business.

            (j) Except as in material compliance with Environmental Laws, no
      Solid Waste has been disposed of at any off-site location.

            (k) Section 4.14 and this Section 4.20 shall be the sole and
      exclusive representations and warranties provided by the Seller regarding
      environmental, and to the extent relating to employee exposure to
      Hazardous Materials, health and safety matters.

For the purposes of Sections 4.20(a), (c), (d), (f), (g) and (j) only, the term
"material" shall mean with respect to any particular matter or issue that no
more than $25,000 shall be required to be expended to achieve compliance with,
or rectify a violation of any Environmental Laws or Environmental Permits (as
applicable); provided, however, that notwithstanding the foregoing no inference
shall be made with respect to the level of materiality for purposes of any other
section of this Agreement.

      Section 4.21 Brokers' Fees. Except as set forth on Schedule 4.21, the
Seller has no liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this
Agreement for which the Purchaser and, after the Closing, the Company or any
Company Subsidiary, could become liable or obligated. Neither the Company nor
any Company Subsidiary has any liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement.

      Section 4.22 Assets. Except as set forth on Schedule 4.22, the Company and
each of the Company Subsidiaries have good and marketable title to, or a valid
leasehold or other interest in, the personal property and assets they use that
(a) are located on the Real Property, (b) are shown on the Financial Statements
or (c) were acquired after the date hereof, free and clear of all Security
Interests and such assets, including without limitation, the Real Property and
the Customer Easements, constitute all of the assets necessary for the conduct
of their businesses as currently conducted. Each such asset (excluding obsolete
equipment not being used by the Company or any Company Subsidiary, the lack of
use of which would not adversely affect the operation of the business of the
Company or any Company Subsidiary) has been maintained in accordance with normal
industry practice and is in good operating condition and repair (subject to
normal wear and tear).

      Section 4.23 Intellectual Property.

            (a) Except as set forth on Schedule 4.23(a), the Company and the
      Company Subsidiaries have no registered trade names, trademarks,
      servicemarks, patents, or copyrights, or applications pending therefor,
      and any such registered trade names, trademarks, servicemarks, patents, or
      copyrights are in good standing with the appropriate governmental entity
      with maintenance or renewal fees timely paid and any required affidavits
      of use or other matters timely filed. The Company and Company

                                      -28-
<PAGE>
      Subsidiaries own or have a royalty-free and fully-paid license and, after
      the Closing, except with respect to the Excluded Marks, will own or have
      such a license to use all rights in the Intellectual Property, without any
      material limitations or restrictions on the operation or value of the
      Company or any of the Company Subsidiaries as presently conducted.

            (b) Except as set forth on Schedule 4.23(b), no Intellectual
      Property rights shall terminate or become terminable as a result of the
      transactions contemplated by this Agreement. No license or contract
      providing Intellectual Property rights to the Company or any of the
      Company Subsidiaries contains any change of control, non-assignment or
      similar provisions that are likely to be implicated by the transactions
      contemplated by this Agreement. To the Knowledge of the Seller, no
      Intellectual Property rights infringe upon any intellectual property right
      of any other Person. Except as set forth on Schedule 4.23(b), there are no
      Intellectual Property rights used to which the Company or any of the
      Company Subsidiaries is a licensor or licensee to or from any Person.
      Except as set forth on Schedule 4.23(b), there are no pending or, to the
      Knowledge of the Seller, threatened, proceedings or litigation or other
      adverse claims by any Person against the use by the Company or any of the
      Company Subsidiaries of any Intellectual Property.

            (c) Without limiting the above paragraph, the programs identified on
      Schedule 4.23(c) are either owned by the Company and the Company
      Subsidiaries free and clear of all Security Interests or used by the
      Company and the Company Subsidiaries pursuant to a perpetual,
      transferable, irrevocable royalty-free and fully paid-up license granted
      to the Company and the Company Subsidiaries by third parties which own
      such programs free and clear of all Security Interests. No other Person
      has any ownership rights in the programs, and, to the Knowledge of the
      Seller, no Intellectual Property rights associated with such programs
      infringe upon any intellectual property right of any other Person.

      Section 4.24 Receivables. All of the accounts receivable of the Company
and the Company Subsidiaries represent bona fide transactions, arose in the
Ordinary Course of Business and, subject to the reserves therein, are reflected
properly in their books and records. As clarification for this Section 4.24, the
representations and warranties set forth in this Section 4.24 are not intended
to be, and are not, guaranties of collectibility.

      Section 4.25 Public Utility; FERC Considerations.

            (a) Each of the Company and the Company Subsidiaries is a
      "subsidiary company" of a "holding company" or of a "subsidiary company"
      of a "holding company," as each of such terms is defined under the Public
      Utility Holding Company Act of 1935 ("PUHCA"), or the rules and
      regulations promulgated thereunder.

            (b) Neither the execution of this Agreement by the Parties, nor the
      consummation of the transactions contemplated hereby will (i) result in a
      violation of PUHCA or any rule or regulation promulgated thereunder, or
      (ii) require any consent, approval or the delivery of any notice pursuant
      to PUHCA.

                                      -29-
<PAGE>
            (c) None of the businesses that comprise Exelon Thermal Holdings,
      Inc., including, without limitation, the Company or any Company
      Subsidiary, engage in any activity that would subject the Company or any
      Company Subsidiary to regulation by the Federal Energy Regulatory
      Commission, including any activity that conforms to the requirements for
      certification as a "Qualifying Facility" (as defined in the Public Utility
      Regulatory Policies Act of 1978, as amended, and the regulations
      promulgated thereunder).

      Section 4.26 District Cooling System Use Agreement.

            (a) The Seller has furnished to the Purchaser a true, complete and
      correct copy of the District Cooling System Use Agreement. Except in
      connection with the transactions contemplated by this Agreement, all
      consents, approvals or City ordinances necessary to approve or effectuate
      the execution, delivery and performance of the District Cooling System Use
      Agreement, including each amendment thereto, were timely and properly
      obtained. Neither the Seller, the Company nor any Company Subsidiary has
      received written notice of any claim that the City did not or does not
      have the requisite authority to approve, execute and deliver the District
      Cooling System Use Agreement, perform the City's obligations under the
      District Cooling System Use Agreement or grant the rights conveyed to the
      Company and/or the Company Subsidiaries thereunder.

            (b) The District Cooling System Use Agreement is a legal, valid and
      binding obligation of the Company and/or the Company Subsidiaries party
      thereto and no breach or default by the Company, any Company Subsidiary,
      or, to the Seller's Knowledge, the City has occurred or is continuing.
      Neither the Seller nor the Company or any Company Subsidiary has received
      any written notice of, nor has any reason to believe that there exists,
      any default under the District Cooling System Use Agreement that has not
      been cured. The Company and the Company Subsidiaries are in material
      compliance with the terms of the District Cooling System Use Agreement,
      including, without limitation, any requirements regarding the posting of
      the required performance bond, requirements related to compliance with
      Anti-Corruption Laws, and the "most favored vendee" provisions set forth
      in Section 5.2 of the District Cooling System Use Agreement. The District
      Cooling System Use Agreement has not been suspended at any time for any
      reason.

            (c) The District Cooling System was constructed in material
      compliance with the terms of the District Cooling System Use Agreement.
      Neither the Company nor any Company Subsidiary has received any notice
      that any part of the District Cooling System constitutes a Trespassing
      Facility. Except for those Authorizations required by the terms of the
      District Cooling System Use Agreement after the date of this Agreement, no
      part of the District Cooling System requires any Authorization which has
      not been previously obtained by the Company and/or a Company Subsidiary,
      including, without limitation, any permit or agreement to use, enter into,
      access or otherwise occupy any trolley tunnel(s) in the City as otherwise
      permitted by the terms of the District Cooling System Use Agreement. There
      is no currently pending adjustment to the rate of "General Compensation"
      under the District Cooling System Use Agreement and, to the Knowledge of
      the Seller, no such adjustment is contemplated by the City. No portion of
      the chilled

                                      -30-
<PAGE>
      water capacity of the District Cooling System is being used internally or
      provided to a third party that is not being charged for such use.

      Section 4.27 Disclaimer Regarding Estimates and Projections. In connection
with the Purchaser's investigation of the Company and the Company Subsidiaries,
the Purchaser has received from or on behalf of the Seller, the Company and the
Company Subsidiaries certain estimates, forecasts, plans and financial
projections. The Purchaser acknowledges that there are uncertainties inherent in
attempting to make such estimates, forecasts, plans and projections, that the
Purchaser is familiar with such uncertainties, that the Purchaser is taking full
responsibility for making its own evaluation of the adequacy and accuracy of all
estimates, forecasts, plans and projections so furnished to it (including the
reasonableness of the assumptions underlying such estimates, forecasts, plans
and projections). Accordingly, the Seller makes no representation or warranty
with respect to such estimates, forecasts, plans and projections (including any
underlying assumptions).

                                    ARTICLE V
                        REPRESENTATIONS OF THE PURCHASER

   As an inducement to the Seller to enter into and perform its obligations
under this Agreement, and in consideration of the covenants of the Seller
contained herein, the Purchaser represents and warrants to the Seller as
follows:

      Section 5.1 Organization. The Purchaser is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware. The Purchaser is duly authorized to conduct business and is in good
standing under the laws of each jurisdiction where such qualification is
required, except where the lack of such qualification would not have a material
adverse effect on the financial condition of the Purchaser or on the ability of
the Purchaser to consummate the transactions contemplated by this Agreement. The
Purchaser has full power and authority to carry on the businesses in which it is
engaged and to own and use the properties owned and used by it.

      Section 5.2 Authority; Enforceability. The Purchaser has the full power
and authority to execute and deliver this Agreement and to perform its
obligations hereunder. Without limiting the generality of the foregoing, the
board of directors of the Purchaser has duly authorized the execution, delivery
and performance of this Agreement by the Purchaser. This Agreement constitutes
the valid and legally binding obligation of the Purchaser, enforceable against
the Purchaser in accordance with its terms, except as enforceability hereof may
be subject to the effects of bankruptcy, insolvency, reorganization, moratorium
or other laws affecting the rights of creditors, and general principles of
equity.

      Section 5.3 Noncontravention. Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any foreign,
federal, state or local government, governmental agency or commission or other
governmental or regulatory body or authority, or court to which the Purchaser is
subject or any provision of the Organizational Documents of the Purchaser or
(ii) conflict with, result in a breach of, constitute a default under, result in
the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any

                                      -31-
<PAGE>
agreement, contract, lease, license, instrument, or other arrangement to which
the Purchaser is a party or by which it is bound or to which any of its assets
is subject, except where the violation, conflict, breach, default, acceleration,
termination, modification, cancellation, or failure to give notice would not
have a material adverse effect on the financial condition of the Purchaser or on
the ability of the Purchaser to consummate the transactions contemplated by this
Agreement. Except as contemplated by Section 6.1, the Purchaser does not need to
give any notice to, make any filing with, or obtain any authorization, consent,
or approval of any government or governmental agency in order for the Purchaser
to consummate the transactions contemplated by this Agreement, except where the
failure to give notice, to file, or to obtain any authorization, consent, or
approval would not have a material adverse effect on the financial condition of
the Purchaser or on the ability of the Purchaser to consummate the transactions
contemplated by this Agreement.

      Section 5.4 Brokers' Fees. The Purchaser has no liability or obligation to
pay any fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which the Seller could become
liable or obligated.

      Section 5.5 Financing. At Closing the Purchaser will have unconditionally
committed sources of financing available to it sufficient to permit it to pay
the Purchase Price and to consummate the transactions contemplated by this
Agreement, including, without limitation, the replacement of all Credit
Enhancements, when and as required by the terms of this Agreement.

      Section 5.6 Investment Purpose. The Purchaser confirms that it is
acquiring the Shares for investment for its own account and not with a view to
distributing all or any part thereof in any transaction which would constitute a
"distribution" within the meaning of the Securities Act of 1933, as amended (the
"Securities Act"). The Purchaser acknowledges and understands that the Shares
have not been registered under the Securities Act and cannot be resold without
registration under applicable federal and state securities laws or pursuant to
an exemption therefrom.

                                   ARTICLE VI
                    COVENANTS OF THE PARTIES PRIOR TO CLOSING

      Section 6.1 HSR Filing; Other Governmental Filings; Consents.

            (a) Promptly after the execution of this Agreement, the Purchaser
      and the Seller shall each file with the United States Department of
      Justice (the "DOJ") and the United States Federal Trade Commission (the
      "FTC") the pre-merger notification and report form required pursuant to
      the HSR Act with respect to the transactions contemplated hereby, together
      with a request for early termination of the waiting period under the HSR
      Act. The Parties hereto covenant and agree with each other that with
      respect to such filing each shall: (a) furnish to the other such necessary
      information and reasonable assistance as the other may request in
      connection with its preparation of any filing or submission that is
      necessary under the HSR Act; (b) after any request by the FTC or DOJ,
      promptly file any information or documents requested by the FTC or DOJ;
      and (c) furnish each other with any correspondence from or to, and notify
      each other of any other communications with, the FTC or DOJ which relates
      to the transactions

                                      -32-
<PAGE>
      contemplated hereunder, and to the extent practicable, to permit the other
      to participate in any conferences with the FTC or DOJ. The Purchaser shall
      pay the entire amount of the filing fee required by the HSR Act.

            (b) The Seller and the Purchaser covenant and agree with each other
      to (i) promptly file, or cause to be promptly filed, with any United
      States agency or any state or local governmental body or agency, all other
      notices, applications or other documents as may be necessary to consummate
      the transactions contemplated hereby, and (ii) diligently pursue all
      Authorizations and/or other consents or approvals from any such
      governmental agencies or bodies or other third parties (as applicable) as
      may be necessary in connection with the consummation of the transactions
      contemplated hereby.

      Section 6.2 Cooperation. Each of the Parties will cooperate and use its
commercially reasonable efforts to take, or cause to be taken, all action, and
to do, or cause to be done, all things necessary, proper or advisable under
applicable laws to consummate the transactions contemplated hereby.

      Section 6.3 Operation of Business. The Seller will not cause or permit the
Company or any Company Subsidiary to engage in any practice, take any action, or
enter into any transaction outside the Ordinary Course of Business, unless such
practice, action or transaction is contemplated by this Agreement or the
Purchaser shall otherwise agree in writing. Without limiting the generality of
the foregoing, the Seller shall (a) prohibit the Company and each Company
Subsidiary from (i) declaring, setting aside, or paying any dividend or making
any distribution with respect to its capital stock or redeeming, purchasing, or
otherwise acquiring any of its capital stock other than in the Ordinary Course
of Business or (ii) otherwise engaging in any practice, taking any action, or
entering into any transaction of the sort described in Section 4.8 above, and
(b) cause the Company and each Company Subsidiary to (i) use its commercially
reasonable efforts to keep available to the Purchaser the services of the
Company's and the Company Subsidiaries' present officers, employees, agents and
independent contractors, (ii) use its commercially reasonable efforts to
preserve intact for the benefit of the Purchaser their respective businesses and
the goodwill of their respective customers, suppliers, landlords and others
having business relations with them, and (iii) confer at the Purchaser's
reasonable request with representatives of the Purchaser to report on material
operational matters and the general status of ongoing operations.
Notwithstanding the foregoing, each of the Company and each Company Subsidiary
(x) may immediately prior to the Closing distribute all of its cash and cash
equivalents to the Seller and its Affiliates prior to the Closing, (y) will
repay, repurchase or otherwise redeem all of its indebtedness for borrowed money
and (z) may assume the obligations of the Seller or any of its Affiliates
pursuant to the license agreements set forth on Schedule 6.13 and may waive all
past, present and future royalty payments thereunder.

      Section 6.4 Access. The Seller will permit (and will cause the Company and
the Company Subsidiaries to permit) the Purchaser and its employees, agents,
attorneys, advisors, lenders, investors and accountants (collectively
"Representatives") to have access at all reasonable times, and in a manner so as
not to interfere with the normal business operations of the Seller, the Company
or the Company Subsidiaries, to all premises, properties, personnel, books,
records, contracts, and documents of the Company and the Company Subsidiaries,
and will permit the Purchaser and such Representatives to make such copies and
inspections thereof

                                      -33-
<PAGE>
as the Purchaser may reasonably request; provided, however, that no
investigation pursuant to this Section 6.4 will affect any representation or
warranty of the Seller hereunder and that the Purchaser shall repair any damage
resulting from such inspections. The Purchaser will treat and hold as Evaluation
Material (as such term is defined in that certain letter agreement between the
Seller and Macquarie Securities (USA) Inc. dated as of July 9, 2003 (the "Letter
Agreement")) any nonpublic information it receives from the Seller, the Company
or the Company Subsidiaries in the course of the reviews contemplated by this
Section 6.4, will not use any of such Evaluation Material except as permitted
under the Letter Agreement or this Agreement, and, if this Agreement is
terminated for any reason whatsoever, will return to the Seller all tangible
embodiments (and all copies) of such Evaluation Material which are in its
possession.

      Section 6.5 Notice of Developments.

            (a) The Seller shall have the right, from time to time prior to the
      Closing, to supplement or amend the Schedules in writing with respect to
      any matter hereafter arising or discovered which if existing or known on
      the date hereof would have been required to be set forth or described in
      the Schedules. No such disclosure shall be deemed to have been disclosed
      for purposes of determining whether or not the conditions to Closing set
      forth in Article 8 of this Agreement have been satisfied; provided that if
      the Closing occurs, such disclosure shall be deemed to have cured any
      breach of representation or warranty relating to the matters set forth in
      such update for purposes of indemnification pursuant to Article 10.

            (b) Each Party will give prompt written notice to the other Party of
      any material adverse development causing a breach of any of its own
      representations and warranties in Article 4 and Article 5. Except as set
      forth in Section 6.5(a) above, no disclosure by any Party pursuant to this
      Section 6.5(b) shall be deemed to amend or supplement any Schedule or to
      prevent or cure any misrepresentation or breach of warranty.

            (c) The Seller shall give prompt written notice to the Purchaser of
      the commencement of any claim (or potential claim), status of being a
      potentially responsible party for any Remediation, or other inspection of
      any Business Facility that relates to enforcement or compliance with
      Environmental Laws or Hazardous Materials.

      Section 6.6 Credit Enhancements; Insurance.

            (a) Notwithstanding anything herein to the contrary, the Seller and
      its Affiliates may cancel or terminate, effective as of the Closing Date,
      those guaranties, sureties, letters of credit and similar undertakings set
      forth on Schedule 6.6 (the "Seller Credit Enhancements") which Seller
      Credit Enhancements relate to or are for the benefit of the Company and/or
      the Company Subsidiaries. The Purchaser shall use its best efforts
      (including offering to substitute a Credit Enhancement of the Purchaser)
      to cause or procure the release, effective as of the Closing Date, of all
      liabilities and obligations of the Seller and its Affiliates under such
      Seller Credit Enhancements from and after the Closing Date.
      Notwithstanding anything in this Agreement to the contrary, the Purchaser
      acknowledges and agrees that it shall be responsible for satisfying the
      creditworthiness

                                      -34-
<PAGE>
      standards, policies and requirements of the other parties to those
      underlying contracts and agreements to which such Seller Credit
      Enhancements relate, including, without limitation, those of energy
      suppliers which may require Credit Enhancements that may be imposed upon
      the Purchaser and required in order for the Purchaser to continue to
      operate the businesses of the Company and the Company Subsidiaries from
      and after the Closing Date, and that any inability of the Purchaser to
      meet such standards, policies or requirements from and after the Closing
      shall be the risk of the Purchaser.

            (b) The Purchaser shall use commercially reasonable efforts to
      procure adequate insurance to satisfy the requirements set forth in the
      contracts to which the Company or any Company Subsidiary is a party and to
      permit the consummation of the transactions contemplated herein.

      Section 6.7 No Negotiations. From the date of this Agreement to Closing,
none of the Seller, the Company or the Company Subsidiaries nor their respective
officers, directors, managers, general partners, employees, Affiliates,
stockholders, members, partners, representatives, agents, nor anyone acting on
behalf of them shall, directly or indirectly, encourage, solicit, engage in
discussions or negotiations with, or provide any nonpublic information or
assistance to, any Person (other than the Purchaser or its representatives)
concerning any merger, sale of all or substantially all of its assets, purchase
or sale of Shares or similar transaction involving, directly or indirectly, the
Company or any Company Subsidiary unless this Agreement is terminated pursuant
to and in accordance with Article 11.

      Section 6.8 Permit Transfer. The Company and the Company Subsidiaries
shall use commercially reasonable efforts to cause the transfer as of the
Closing Date of Environmental Permits to the Purchaser as may be necessary under
applicable Environmental Laws to allow the Purchaser to conduct the business of
the Company and the Company Subsidiaries as currently conducted and in
compliance with applicable Environmental Laws.

      Section 6.9 Estoppel Certificates and Non-Disturbance Agreements. Seller
agrees to use commercially reasonable efforts and cooperate in good faith with
the Purchaser in obtaining an estoppel certificate in form and substance
reasonably acceptable to Purchaser from each lessor under a Lease and from the
grantor under the Easements relating to Plants 2 and 5 and a non-disturbance
agreement in form and substance reasonably acceptable to Purchaser from each
Person holding a lien encumbering the fee simple interest of any real property
encumbered by a Lease, an Easement or any other easement held by the Company or
a Company Subsidiary, which lien is superior to such Lease, Easement or other
easement; provided, however, that the Seller and its Affiliates shall be under
no obligation to make any payments or other concessions to the Persons from whom
such estoppel certificates and/or non-disturbance agreements are being sought in
order to obtain the same. Notwithstanding anything to the contrary contained
herein, so long as the Seller has complied with the previous sentence, obtaining
any such estoppel certificate or non-disturbance agreement shall not be deemed
or construed as a condition to Purchaser's obligations to consummate the
transactions contemplated by this Agreement.

      Section 6.10 Title Insurance and Surveys. The Seller agrees to cooperate
in good faith with Purchaser in obtaining title insurance covering the Real
Property and such additional

                                      -35-
<PAGE>
surveys of the Real Property as Purchaser may reasonably request; provided,
however, that the Seller and its Affiliates shall be under no obligation to
incur any cost or expense in connection with its efforts, and such title
insurance and surveys shall be obtained at the sole cost and expense of the
Purchaser. Notwithstanding anything to the contrary contained herein, so long as
Seller has complied with the previous sentence, obtaining any such title
insurance or surveys shall not be deemed or construed as a condition to
Purchaser's obligations to consummate the transactions contemplated by this
Agreement.

      Section 6.11 Retention of Certain Key Employees. The Seller agrees to use
commercially reasonable efforts to assist the Purchaser, at the Purchaser's
request, in retaining David A. Bump and at least three (3) of the other Key
Employees, pursuant to written employment agreements with the Purchaser, each in
form and substance reasonably acceptable to the Purchaser; provided, however,
that the Seller and its Affiliates shall be under no obligation to make any
payments or other concessions to such Key Employees in order to obtain such
employment agreements. Notwithstanding anything to the contrary contained
herein, so long as the Seller has complied with the previous sentence, obtaining
any such employment agreement shall not be deemed or construed as a condition to
the Purchaser's obligations to consummate the transactions contemplated by this
Agreement. In the event David A. Bump does not agree to enter into an employment
agreement with the Company or the Purchaser, the Seller agrees, at the
Purchaser's request, (x) to retain David A. Bump or another individual
reasonably acceptable to the Purchaser that, in the reasonable good faith belief
of the Seller, is capable of managing and operating the Business in accordance
and in a manner consistent with the historical practices and operating standards
of the Business, and (y) to second such individual to the Purchaser for a period
of up to twelve (12) months following the Closing or such lesser period of time
as directed by the Purchaser in its sole discretion pursuant to the terms and
conditions of a written agreement between Seller and Purchaser containing such
terms and conditions as are customary for such arrangements and mutually
agreeable to the Parties; provided, however, that in such event, the Purchaser
agrees to use commercially reasonable efforts to hire a suitable replacement for
David A. Bump or such other individual with comparable talents (as reasonably
determined by the Purchaser) as promptly as practicable. Without limiting the
generality of the foregoing, as consideration for the secondment of the
individual in the previous sentence to the Purchaser, the Purchaser shall
reimburse the Seller at a rate equal to the sum of (a) 165% of the salary paid
to such individual during the period of such secondment plus (b) a mutually
acceptable performance-based bonus which shall not exceed 50% of such
individual's salary without the prior written consent of the Purchaser, in
proportion to the amount of business time such individual spends providing
services to the Purchaser, at the same times such payments are made to or for
the benefit of such individual.

      Section 6.12 Insurance. The Seller agrees that (a) for three (3) years
following the Closing Date it will maintain coverage for the Company and the
Company Subsidiaries for events occurring on or prior to the Closing Date under
the general liability and excess liability insurance policies that currently
cover the Company and the Company Subsidiaries, (b) for six (6) years following
the Closing Date it will maintain coverage for the Company and the Company
Subsidiaries for events occurring on or prior to the Closing Date under the
director and officer liability insurance policy that currently covers the
Company and the Company Subsidiaries and (c) it will assist the Purchaser in
pursuing recovery of all claims made under such policies and resulting from
events occurring on or prior to the Closing Date; provided,

                                      -36-
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however, that the Purchaser, the Company and the Company Subsidiaries shall bear
all costs and expenses of pursuing recoveries of claims under such policies
(including any applicable deductibles) and shall reimburse the Seller for any
increase in premiums or additional premiums, if any, relating solely to
providing such extended coverage.

      Section 6.13 Licenses. The Seller agrees to use commercially reasonable
efforts to terminate (or amend to exclude know-how and royalty payments
therefrom) the license agreements identified on Schedule 6.13; provided,
however, that the Seller and its Affiliates shall be under no obligation to make
any payments or other concessions to the Persons from whom such terminations or
amendments are being sought in order to obtain the same; provided, further, that
neither the Seller nor any of its Affiliates shall enter into any such amendment
without the prior written consent of the Purchaser. Notwithstanding anything to
the contrary contained herein, so long as the Seller has complied with the
previous sentence, obtaining any such termination or amendment shall not be
deemed or construed as a condition to Purchaser's obligations to consummate the
transactions contemplated by this Agreement.

      Section 6.14 Washington Street Trolley Tunnel. The Seller agrees to use
commercially reasonable efforts to cause the Company to execute a tunnel
agreement with the City with respect to the Washington Street trolley tunnel;
provided, however, that the Seller and its Affiliates shall be under no
obligation to incur any cost or expense in connection with its efforts.
Notwithstanding anything to the contrary contained herein, so long as the Seller
has complied with the previous sentence, obtaining any such tunnel agreement
shall not be deemed or construed as a condition to Purchaser's obligations to
consummate the transactions contemplated by this Agreement.

                                   ARTICLE VII
                CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SELLER

   The obligations of the Seller with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver in writing on or prior to
the Closing Date of all of the following conditions. The Seller shall have the
right to waive any condition not so satisfied.

      Section 7.1 Representations and Warranties; Performance of Obligations.
All representations and warranties of the Purchaser contained in Article 5 shall
be true and correct as of the date of this Agreement and shall be true and
correct in all material respects (except with respect to any provisions
including the word "material" or words of similar import, with respect to which
such representations and warranties must have been true and correct in all
respects) as of the Closing Date as though such representations and warranties
had been made on and as of that date, except that those representations and
warranties which address matters only as of a particular date only shall be
required to be true and correct as of such date; all of the terms, covenants and
conditions of this Agreement to be complied with and performed by the Purchaser
on or before the Closing Date shall have been duly complied with and performed
in all material respects.

      Section 7.2 No Litigation or Other Actions. No action or proceeding before
a court or any other governmental agency or body shall have been instituted or
threatened which seeks to restrain or prohibit the transactions contemplated by
this Agreement or which seeks to recover damages relating to the transactions
contemplated by this Agreement.

                                      -37-
<PAGE>
      Section 7.3 Consents and Approvals. All applicable waiting periods (and
extensions thereof), if any, under the HSR Act shall have expired or otherwise
been terminated and all other necessary Authorizations and/or consents, permits
or approvals of and filings with any governmental authority or agency or other
third party (as applicable) relating to the consummation of the transaction
contemplated herein shall have been obtained and made. All Authorizations,
consents and approvals set forth in Schedule 4.3 shall have been obtained.

      Section 7.4 No Material Adverse Change. No event or circumstance shall
have occurred with respect to the Purchaser which would constitute a material
adverse effect on the ability of the Purchaser to consummate the transactions
contemplated by this Agreement.

      Section 7.5 Release of Credit Enhancements. The Seller shall have received
releases in form and substance reasonably acceptable to the Seller of all
liabilities and obligations of the Seller and its Affiliates under the Seller
Credit Enhancements set forth in Schedule 6.6 from and after the Closing Date.

      Section 7.6 City Approval. The Seller shall not have received notice from
the City that it requires any concession from Exelon or any of its Affiliates,
whether or not related to the District Cooling System Use Agreement, as a
condition to granting the approval contemplated by Section 8.6 below.

      Section 7.7 Deliveries of Purchaser. The Purchaser shall have delivered,
or be standing ready to deliver, to the Seller, the documents required to be
delivered by the Purchaser pursuant to Section 3.3.

                                  ARTICLE VIII
              CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PURCHASER

  The obligations of the Purchaser with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver in writing on or prior to
the Closing Date of all of the following conditions. The Purchaser shall have
the right to waive any condition not so satisfied.

      Section 8.1 Representations and Warranties; Performance of Obligations.
All the representations and warranties of the Seller contained in this Agreement
shall be true and correct as of the date of this Agreement and shall be true and
correct in all material respects (except with respect to any provisions
including the word "material" or words of similar import, with respect to which
such representations and warranties must have been true and correct in all
respects) as of the Closing Date as though such representations and warranties
had been made on and as of such date, except that those representations and
warranties which address matters only as of a particular date only shall be
required to be true and correct as of such date; all of the terms, covenants and
conditions of this Agreement to be complied with or performed by the Seller on
or before the Closing Date shall have been duly performed or complied with in
all material respects.

      Section 8.2 No Litigation or Other Actions. No action or proceeding before
a court or any other governmental agency or body shall have been instituted or
threatened which seeks to restrain or prohibit the transactions contemplated by
this Agreement or which seeks to recover damages relating to the transactions
contemplated by this Agreement.

                                      -38-
<PAGE>
      Section 8.3 Consents and Approvals. All applicable waiting periods (and
extensions thereof), if any, under the HSR Act shall have expired or otherwise
been terminated and all other necessary Authorizations and/or other consents,
permits or approvals of and filings with any governmental authority or agency or
other third party (as applicable) relating to the consummation of the
transaction contemplated herein shall have been obtained and made. All
Authorizations, consents, and approvals set forth in Schedule 4.3 shall have
been obtained.

      Section 8.4 No Material Adverse Effect. No event or circumstance shall
have occurred with respect to the Company or any Company Subsidiary which would
constitute a Material Adverse Effect.

      Section 8.5 Indebtedness. Neither the Company nor any Company Subsidiary
shall have any Debt owing to any other party, other than the Company or another
Company Subsidiary, and Seller shall have procured the release of any liens
securing such Debt, including without limitation, the liens set forth on
Schedule 8.5.

      Section 8.6 City Approval. All necessary consents, approvals and actions
of the City Council shall (a) have been duly obtained, made or given, (b) not be
subject to the satisfaction of any condition that has not been satisfied or
waived, (c) be in full force and effect and (d) not require any change or
amendment to any of the terms and conditions (including, without limitation,
economic terms) of the District Cooling System Use Agreement or any of the
Customer Contracts with the City or any agency, department or instrumentality
thereof.

      Section 8.7 Deliveries of Seller. The Seller shall have delivered, or be
standing ready to deliver, to the Purchaser, the documents required to be
delivered by the Seller pursuant to Section 3.2.

                                   ARTICLE IX
             COVENANTS OF THE PURCHASER AND THE SELLER AFTER CLOSING

      Section 9.1 Tax Matters.

            (a) The Seller shall cause the Company and the Company Subsidiaries
      to timely file all Tax Returns and pay all Taxes due on or before the
      Closing Date. The Seller shall file, or cause to be filed, all Income Tax
      Returns for all consolidated, combined, or unitary groups that include the
      Seller, the Company and the Company Subsidiaries, whether or not such
      Income Tax Returns are due before or after the Closing Date. The Purchaser
      shall file, or caused to be filed, all separate Tax Returns of the Company
      and the Company Subsidiaries that are due after the Closing Date and all
      Tax Returns due after the Closing Date for all combined, consolidated, and
      unitary groups headed by the Company or that include the Purchaser or any
      Affiliate of the Purchaser. To the extent any Income Tax Return to be
      filed by the Purchaser relates to periods ending on or prior to the
      Closing Date, the Purchaser shall provide the Seller with a reasonable
      opportunity to review, comment upon and approve such Income Tax Returns
      prior to filing, such approval not to be unreasonably withheld.

            (b) The Seller will include the income of the Company and the
      Company Subsidiaries on the Seller's consolidated, combined, or unitary
      Income Tax Returns that

                                      -39-
<PAGE>
      include the Seller, the Company and the Company Subsidiaries for all
      periods through the Closing Date and pay any Taxes attributable to such
      income. The Company and the Company Subsidiaries will furnish Tax
      information to the Seller for inclusion in the Seller's consolidated,
      combined, or unitary Income Tax Returns that include the Seller, the
      Company and the Company Subsidiaries for the period which includes the
      Closing Date in accordance with the past custom and practice of the
      Company and the Company Subsidiaries. The income of the Company and the
      Company Subsidiaries will be apportioned to the period up to and including
      the Closing Date and the period after the Closing Date by closing the
      books of the Company and the Company Subsidiaries as of the end of the
      Closing Date.

            (c) For purposes of this Section 9.1, in the case of any Taxes that
      are imposed on a periodic basis and are payable for a taxable period that
      includes (but does not end on) the Closing Date, the portion of such Tax
      which relates to the portion of such taxable period ending on the Closing
      Date shall (i) in the case of any Taxes, other than Taxes based upon or
      related to income or receipts, be deemed to be the amount of such Tax for
      the entire taxable period multiplied by a fraction the numerator of which
      is the number of days in the taxable period ending on the Closing Date and
      the denominator of which is the number of days in the entire taxable
      period, and (ii) in the case of any Taxes based upon or related to income
      or receipts, be deemed equal to the amount which would be payable if the
      relevant taxable period ended on the Closing Date. Any Tax credits
      relating to a taxable period that begins before and ends after the Closing
      Date shall be taken into account as though the relevant taxable period
      ended on the Closing Date. All determinations necessary to give effect to
      the foregoing allocations shall be made in a manner consistent with prior
      practice of the Company and Company Subsidiaries.

            (d) The Purchaser, the Company and the Seller shall provide each
      other with such assistance as may reasonably be requested by the others in
      connection with the preparation of any Income Tax Return or report of
      Taxes, any audit or other examination by any taxing authority, or any
      judicial or administrative proceedings relating to liabilities for Taxes.
      Such assistance shall include the retention and (upon the other Party's
      request) the provision of records and information, including copies of Tax
      Return workpapers of the Company or any Company Subsidiary for tax years
      ending in calendar years 2000, 2001 and 2002, which are reasonably
      relevant to any such proceeding and making employees available on a
      mutually convenient basis to provide additional information or explanation
      of material provided hereunder and shall include providing copies of
      relevant Income Tax Returns and supporting material. The Party requesting
      assistance hereunder shall reimburse the assisting Party for reasonable
      out-of-pocket expenses incurred in providing assistance. The Purchaser,
      the Company and the Seller will (i) retain such books and records for the
      full period of any statute of limitations (and, to the extent notified by
      the Purchaser or the Seller, any extensions thereof) of the respective
      taxable periods, (ii) abide by all record retention agreements entered
      into with any taxing authority to which the Party is a party, (iii)
      provide the others with any records or information which may be relevant
      to such preparation, audit, examination, proceeding or determination and
      (iv) with respect to any such books and records relating to periods for
      which the statute of limitations has expired, retain such books and
      records as requested in writing by the other Party.

                                      -40-
<PAGE>
            (e) If in connection with any examination, investigation, audit or
      other proceeding in respect of any Income Tax Return covering the
      operations of the Company or any Company Subsidiary on or before the
      Closing Date, any governmental body or authority issues to the Company a
      written notice of deficiency, a notice of reassessment, a proposed
      adjustment, an assertion of claim or demand concerning the taxable period
      covered by such Income Tax Return, the Purchaser or the Company shall
      notify the Seller of its receipt of such communication from the
      governmental body or authority within ten (10) business days after
      receiving such notice of deficiency, reassessment, adjustment or assertion
      of claim or demand. No failure or delay of the Purchaser or the Company in
      the performance of the foregoing shall reduce or otherwise affect the
      obligations or liabilities of the Seller pursuant to this Agreement,
      except to the extent that such failure or delay shall have adversely
      affected the Seller's ability to defend against any liability or claim for
      Taxes that the Seller is obligated to pay hereunder. The Seller, upon
      giving written notice to the Purchaser, shall, at its expense, have the
      exclusive right to control the contest of (which shall include the
      exclusive right to settle or otherwise resolve the underlying claim) any
      assessment, proposal, claim, reassessment, demand or other proceedings in
      respect to any Income Tax Return covering a tax period of the Company
      ending on or before the Closing Date. The Purchaser shall not allow the
      Company or any Company Subsidiary to settle or otherwise resolve any such
      deficiency, reassessment, adjustment or assertion of claim or demand
      without the prior written approval of the Seller, such approval not to be
      unreasonably withheld. The Purchaser shall cause the Company and the
      Company Subsidiaries to execute any power of attorney or other document
      reasonably requested by the Seller to permit the Seller to control such
      contest or to settle or otherwise resolve the underlying claim.

            (f) All refunds, plus interest thereon, for Taxes for periods ending
      on or before the Closing Date or with respect to any consolidated,
      combined, or unitary Income Tax Returns that include the Seller, the
      Company and the Company Subsidiaries, whether or not such Income Tax
      Returns are due before or after the Closing Date, shall be property of the
      Seller and such refunds, plus any interest earned in connection with the
      refund, shall be paid to the Seller by the Company promptly upon receipt.

            (g) All Tax sharing agreements between the Company or any Company
      Subsidiary, on the one hand, and the Seller, on the other hand, shall be
      terminated as of the Closing Date and shall have no further effect for any
      taxable year. After the Closing Date, the Company and Company Subsidiaries
      shall not be bound thereby nor have any liability thereunder.

            (h) The Purchaser, the Company and their Affiliates to the extent
      permitted by applicable law, shall not carryback any net operating losses
      or other tax attributes to any period ending on or before the Closing
      Date. If the Purchaser, the Company or any of their Affiliates is required
      to carryback a net operating loss or other tax attribute to any period
      ending on or before the Closing Date, the Purchaser and the Company shall
      indemnify and hold the Seller and its Affiliates harmless from any adverse
      Tax consequences resulting from such carryback. The Seller shall be
      responsible for any Income Tax imposed upon gain recognized as a result of
      Deferred Intercompany Transactions (as set forth in Treasury Regulation
      1.1502-13) between the Company or

                                      -41-
<PAGE>
      any of the Company Subsidiaries and Seller that occurred on or prior to
      the Closing Date. The Seller shall pay or reimburse the Purchaser for any
      such Income Tax incurred by the Purchaser. Such payment or reimbursement
      shall be disbursed by the Seller to the Purchaser within five (5) days of
      presentment by the Purchaser of an invoice for such amount, supported by a
      copy of the appropriate Tax Return.

            (i) To the extent there is an inconsistency between a provision in
      this Section 9.1 and another provision in this Agreement, this Section 9.1
      shall control.

      Section 9.2 Name Change. The Purchaser shall cause the amendments
described in Section 3.2(h) to be filed with the appropriate governmental
authorities on the Closing Date or as promptly as practicable thereafter and
shall provide evidence of such filings to the Seller. In addition, the Purchaser
shall remove or cause to be removed all references to the Excluded Marks from
all facilities, equipment and other assets of the Company and the Company
Subsidiaries as promptly as practicable, but within ninety (90) days of the
Closing Date; provided, however, that the Purchaser shall not be required to
remove, replace or modify any manhole covers that contain Excluded Marks unless
the Seller so requests, in which case the removal, replacement or modification
of such manhole covers shall be at the sole cost and expense of the Seller.

      Section 9.3 Further Assurances. Upon the request of the Purchaser at any
time after the Closing Date, the Seller will promptly execute and deliver such
further instruments of assignment, transfer, conveyance, endorsement, direction
or authorization and other documents as the Purchaser may reasonably request to
perfect title of the Purchaser and its successors and assigns to the Shares or
otherwise to effectuate the purposes of this Agreement. Upon the request of the
Seller at any time after the Closing Date, the Purchaser will promptly execute
and deliver such further instruments and other documents as the Seller may
reasonably request to effectuate the purposes of this Agreement.

      Section 9.4 Restrictive Covenants.

            (a)    Confidentiality.

                  (i) Each of Exelon and the Seller hereby agrees with the
            Purchaser that it will not, and that it will cause each of its
            Affiliates, employees, agents and representatives not to, at any
            time on or after the Closing Date, directly or indirectly, without
            the prior written consent of the Purchaser, use to the detriment of
            the Purchaser or its Affiliates or disclose any confidential or
            proprietary information relating to the Company or any of the
            Company Subsidiaries (unless such information also relates to the
            Seller or any of its Affiliates other than the Company and the
            Company Subsidiaries); provided, however, that the information
            subject to the foregoing provisions of this sentence will not
            include any information that (i) is or becomes generally available
            to, or known by, the industry or the public (other than as a result
            of disclosure in violation hereof), (ii) is received after the date
            hereof from another Person without, to the knowledge of Exelon or
            the Seller, violation of any contractual duty to the Purchaser or
            its Affiliates or (iii) is subject to disclosure pursuant to any
            law, order or regulation

                                      -42-
<PAGE>
            of any Governmental Authority; and provided, further, that the
            provisions of this Section 9.4(a) will not prohibit any disclosure
            (x) required by any applicable law (in which case the Seller shall
            provide the Purchaser with reasonable prior notice of such
            disclosure and a reasonable opportunity to contest the same) or (y)
            reasonably made in connection with the enforcement of any right or
            remedy relating to this Agreement or the transactions contemplated
            hereunder. Each of Exelon and the Seller agrees that it will be
            responsible for any breach or violation of the provisions of this
            Section 9.4(a) by any of its Affiliates, employees, agents or
            representatives.

                  (ii) Notwithstanding anything herein to the contrary, either
            Party may disclose the "tax treatment" and "tax structure" (as those
            terms are defined in Treas. Reg. Sections 1.6011-4(c)(8) and (9),
            respectively) of the transactions contemplated by this Agreement;
            provided, however, that the foregoing authorization shall apply only
            to the extent necessary such that the transactions contemplated by
            this Agreement will not constitute a "confidential transaction"
            within the meaning of Treas. Reg. Section 1.6011-4(b)(3).

            (b) Non-Competition. In further recognition of the benefits accruing
      to Exelon and the Seller in connection with the transactions contemplated
      by this Agreement, for a period of five (5) years from and after the
      Closing Date (the "Covenant Period"), each of Exelon and the Seller agrees
      that it shall not, and shall not permit any of its Affiliates to engage,
      directly or indirectly, in the business of providing chilled water through
      a district cooling system in the City (the "Business"), or to contact,
      solicit or enter into any agreement with any customer or Prospective
      Customer of the Purchaser, the Company or any Company Subsidiary relating
      to the utilization by such Customer or Prospective Customer of a district
      cooling system in the City that competes with the Business; provided,
      however, that the beneficial ownership of less than 3% of the outstanding
      stock of any publicly-traded corporation shall not be deemed to be so
      engaged solely by reason thereof in such business. If the final judgment
      of a court of competent jurisdiction declares that any term or provision
      of this Section 9.4(b) is invalid or unenforceable, the Parties agree that
      the court making the determination of invalidity or unenforceability will
      have the power to reduce the scope, duration, or area of the term or
      provision, to delete specific words or phrases, or to replace any invalid
      or unenforceable term or provision with a term or provision that is valid
      and enforceable and that comes closest to expressing the intention of the
      invalid or unenforceable term or provision, and this Agreement will be
      enforceable as so modified after the expiration of the time within which
      the judgment may be appealed.

            (c) Non-Solicitation. Each of Exelon and the Seller agrees that
      during the Covenant Period neither Exelon, the Seller nor any of their
      Affiliates will, directly or indirectly, without the prior written consent
      of the Purchaser, recruit, offer employment, employ (including, without
      limitation, employment as a consultant), lure or entice away or in any
      other manner persuade or attempt to persuade any person who is an officer
      or employee of the Company or any Company Subsidiary to leave the employ
      of the Company or such Company Subsidiary, unless such Person is no longer
      employed by the Company or such Company Subsidiary. Nothing in this
      Section 9.4(c) shall restrict

                                      -43-
<PAGE>
      Exelon, Seller or their respective Affiliates from engaging in, or hiring
      employees through, general recruitment drives, help wanted advertising and
      similar efforts not directed specifically at the Persons identified in
      this Section 9.4(c).

      Section 9.5 Certain Acknowledgements. Each of Exelon and Seller hereby
acknowledge and agree that the Purchaser would not have entered into this
Agreement without the agreement of each of Exelon and the Seller to the
restrictive covenants set forth in Section 9.4 and that such agreements and
restrictions are reasonable in scope and duration and necessary to protect the
Purchaser, the Company and the Company Subsidiaries after Closing. In the event
Exelon, the Seller or any of their respective Affiliates violate any of the
provisions of Section 9.4, Purchaser will suffer irreparable damage and may have
no adequate remedy at law; therefore, Purchaser shall be entitled to injunctive,
specific performance or other equitable relief (without the posting of bond or
other security) to restrain any such violation by Exelon, Seller or any of their
respective Affiliates. The pursuit of any such relief shall in no way limit any
other remedies to which Purchaser may be entitled as a result of any such
violation, including pursuit of money damages. In the event of any breach by
Exelon, Seller or any such Affiliate of the restrictive covenants set forth in
Section 9.4 above, the term of the Covenant Period shall be extended by the
period of duration of such breach.

                                    ARTICLE X
                                 INDEMNIFICATION

      Section 10.1 Survival of Representations and Warranties.

            (a) All of the representations and warranties contained in this
      Agreement or in any certificate delivered in connection with the Closing
      shall survive the Closing and continue in full force and effect until
      eighteen (18) months after the Closing Date, but shall not survive any
      termination of this Agreement except to the extent contemplated by Section
      11.2; provided, however, that (i) the representations and warranties set
      forth in Section 4.1 (Due Organization and Status), Section 4.2
      (Authority; Enforceability), Section 4.4 (Capital Stock of the Company;
      Transactions in Equity Securities) and Section 4.5 (Subsidiaries) shall
      survive the Closing indefinitely, (ii) the representations and warranties
      set forth in Section 4.20 (Environmental Matters) shall survive the
      Closing for three (3) years following the Closing Date, (iii) the
      representations and warranties set forth in Section 4.26 (District Cooling
      System Use Agreement) shall survive the Closing for five (5) years
      following the Closing Date, and (iv) the representations and warranties
      set forth in Section 4.11 (Taxes) and Section 4.15 (Employee Matters)
      shall survive the Closing until thirty (30) days after the expiration of
      the applicable statute of limitations (and any extensions thereof). The
      obligations of the Seller Indemnifying Parties to indemnify the Purchaser
      Indemnified Parties pursuant to Section 10.2(a)(vii) shall survive the
      Closing for a period of six (6) years after the Closing Date.

            (b) The right to indemnification, payment of damages or other remedy
      based on the representations, warranties, covenants and other agreements
      contained herein or in any certificate delivered in connection with the
      Closing will not be affected by any investigation conducted with respect
      to, or any knowledge acquired (or capable of being

                                      -44-
<PAGE>
      acquired) at any time, whether before or after the execution and delivery
      of this Agreement, with respect to the accuracy or inaccuracy of, or
      compliance with, any such representation, warranty, covenant or other
      agreement.

      Section 10.2 Indemnification Provisions for the Benefit of the Purchaser.

            (a) The Seller and Exelon (collectively, the "Seller Indemnifying
      Parties") jointly and severally agree to indemnify, defend and hold
      harmless the Purchaser, the Company, the Company Subsidiaries and their
      respective directors, officers, employees, agents, representatives,
      Affiliates, successors and assigns (collectively, the "Purchaser
      Indemnified Parties") from and against the entirety of any Adverse
      Consequences the Purchaser Indemnified Parties may suffer through and
      after the date of the claim for indemnification, relating to or resulting
      from:

                  (i) any breach or inaccuracy in any of the Seller's
            representations and warranties contained in this Agreement or in any
            certificate delivered in connection with the Closing, whether or not
            the Purchaser Indemnified Parties relied thereon or had knowledge
            thereof, provided that the Purchaser Indemnified Parties make a
            written claim for indemnification against the Seller pursuant to
            Section 13.7 within the applicable survival period under Section
            10.1;

                  (ii) any breach or nonfulfillment of any covenant, agreement
            or other obligation of the Seller contained in this Agreement;

                  (iii) any action, suit, claim, proceeding, hearing,
            governmental investigation or other dispute disclosed on Schedule
            4.14, to the extent that the Adverse Consequences therefrom are in
            excess of the applicable reserves for such items included in the
            "current liabilities" of the Company utilized in the calculation of
            Net Working Capital;

                  (iv) any Employee Benefit Plan (other than a fringe benefit or
            other retirement, bonus, incentive or similar plan or program the
            amount of which is included in the Final Net Working Capital
            Calculation) applicable to employees of the Company, any Company
            Subsidiaries or any of their respective Affiliates at any time on or
            prior to the Closing Date except to the extent that any such Adverse
            Consequence results from a "complete withdrawal" or "partial
            withdrawal" (as such terms are respectively defined in Sections 4203
            and 4205 of ERISA) by the Purchaser, the Company or any Company
            Subsidiary from a Multiemployer Plan following the Closing;

                  (v) (A) any Taxes imposed on the Company or any Company
            Subsidiary with respect to any taxable period, or portion thereof,
            ending on or before the Closing Date, (B) any Taxes of any member of
            an affiliated, consolidated, combined or unitary group of which the
            Company or any Company Subsidiary (or any predecessor of any of the
            foregoing) is or was a member on or prior to the Closing Date,
            including pursuant to Treasury Regulation Section 1.1502-6 or any
            analogous or similar state, local, or foreign law or regulation, and

                                      -45-
<PAGE>
            (C) any Taxes of any Person (other than the Company or the Company
            Subsidiaries) imposed on the Company or the Company Subsidiaries as
            a transferee or successor, by reason of a contractual liability or
            other arrangement or pursuant to any law, and (1) such status as
            transferee, successor, obligor by reason of a contractual liability
            or other arrangement or obligor pursuant to law exists as of the
            Closing and (2) which Taxes relate to an event or transaction
            occurring on or before the Closing;

                  (vi) any claim by any Person for brokerage or finder's fees or
            commissions or similar payments based upon any agreement or
            understanding alleged to have been made by any such Person with the
            Seller, the Company or the Company Subsidiaries or any of their
            respective Affiliates (or any Person acting on their behalf) in
            connection with any of the transactions contemplated by this
            Agreement;

                  (vii) the generation, disposal or arrangement for disposal of
            Hazardous Materials by the Company or by any Company Subsidiary on
            or before the Closing Date which Hazardous Materials have been
            disposed of or released at a third-party site or off-site facility
            that requires Remediation to comply with, is not fully permitted in
            accordance with, or is in violation of any Environmental Law; and

                  (viii) any Debt of the Company or any Company Subsidiary to
            any Person, other than the Company or another Company Subsidiary,
            and any costs and expenses incurred in connection with the release
            of any Security Interest securing such Debt.

            (b) The Seller Indemnifying Parties shall not have any obligation to
      indemnify the Purchaser Indemnified Parties pursuant to Section
      10.2(a)(i), Section 10.2(a)(ii) (excluding any breaches of the covenants
      in Section 2.5), Section 10.2(a)(iii) or Section 10.2(a)(vii) until the
      aggregate amount of Adverse Consequences suffered by the Purchaser
      Indemnified Parties by reason of all such breaches and/or claims exceeds
      One Million Dollars ($1,000,000) (the "Basket"), in which case the
      Purchaser Indemnified Parties will be entitled to indemnity for all
      Adverse Consequences in excess of the Basket.

            (c) The Seller Indemnifying Parties' obligation to indemnify the
      Purchaser Indemnified Parties shall not exceed an aggregate amount equal
      to Thirty Million Dollars ($30,000,000), except in the case of
      indemnification obligations pursuant to (i) Section 10.2(a)(i) to the
      extent such obligations relate to or result from breaches or inaccuracies
      in any representations and warranties contained in Section 4.1 (Due
      Organization and Status), Section 4.2 (Authority; Enforceability), Section
      4.4 (Capital Stock of the Company; Transactions in Equity Securities) or
      Section 4.5 (Subsidiaries), or (ii) Section 10.2(a)(v), in which event the
      Seller Indemnifying Parties' obligation to indemnify the Purchaser
      Indemnified Parties shall not exceed an aggregate ceiling equal to the
      Purchase Price (after which point the Seller Indemnifying Parties will
      have no further obligation to

                                      -46-
<PAGE>
      indemnify the Purchaser Indemnified Parties from and against any further
      Adverse Consequences).

            (d) For purposes of this Section 10.2, Adverse Consequences with
      respect breaches or inaccuracies in any representations and warranties of
      the Seller in Section 4.26 (District Cooling System Use Agreement) shall
      only include Adverse Consequences resulting from actions required of the
      Company or the Company Subsidiaries by the City and claims made against
      the Company and the Company Subsidiaries by the City.

            (e) Notwithstanding the foregoing, the limitations provided in
      Sections 10.2(b), 10.2(c) and 10.2(d) shall not apply in case of fraud,
      and the Seller Indemnifying Parties shall be liable for all Adverse
      Consequences with respect to such fraud.

      Section 10.3 Indemnification Provisions for the Benefit of the Seller.

            (a) The Purchaser and District Energy (collectively, the "Purchaser
      Indemnifying Parties") jointly and severally agree to indemnify, defend
      and hold harmless the Seller and its directors, officers, employees,
      agents, representatives, Affiliates, successors and assigns (collectively,
      the "Seller Indemnified Parties") from and against the entirety of any
      Adverse Consequences the Seller Indemnified Parties may suffer through and
      after the date of the claim for indemnification, relating to or resulting
      from:

                  (i) any breach or inaccuracy in any of the Purchaser's
            representations and warranties contained in this Agreement or in any
            certificate delivered in connection with the Closing, whether or not
            the Seller Indemnified Parties relied thereon or had knowledge
            thereof, provided that the Seller Indemnified Parties make a written
            claim for indemnification against the Purchaser pursuant to Section
            13.7 within the applicable survival period under Section 10.1;

                  (ii) any breach or nonfulfillment of any covenant, agreement
            or other obligation of the Purchaser contained in this Agreement;
            and

                  (iii) any Taxes imposed on the Company or any Company
            Subsidiary with respect to any taxable period, or portion thereof,
            which (A) begins after the Closing Date or (B) relate to any event
            or transaction that occurs after the Closing.

            (b) Except for the Purchaser's obligations pursuant to Section
      10.3(a)(iii), in no event shall the Purchaser Indemnifying Parties'
      obligation to indemnify the Seller Indemnified Parties exceed an aggregate
      ceiling equal to the Purchase Price (after which point the Purchaser
      Indemnifying Parties will have no further obligation to indemnify the
      Seller Indemnified Parties from and against any further Adverse
      Consequences). Notwithstanding the foregoing, the limitations provided in
      this Section 10.3(b) shall not apply in case of fraud, and the Purchaser
      Indemnifying Parties shall be liable for all Adverse Consequences with
      respect to such fraud.

      Section 10.4 Matters Involving Third Parties.

                                      -47-
<PAGE>
            (a) If any third party shall notify any Party (the "Indemnified
      Party") with respect to any matter (a "Third Party Claim") which may give
      rise to a claim for indemnification against the other Party (the
      "Indemnifying Party") under this Article 10, then the Indemnified Party
      shall promptly (and in any event within five (5) business days after
      receiving notice of the Third Party Claim) notify the Indemnifying Party
      thereof in writing.

            (b) The Indemnifying Party will have the right at any time to assume
      and thereafter conduct the defense of the Third Party Claim with counsel
      of its choice reasonably satisfactory to the Indemnified Party; provided,
      however, that the Indemnifying Party will not consent to the entry of any
      judgment or enter into any settlement with respect to the Third Party
      Claim without the prior written consent of the Indemnified Party (not to
      be withheld unreasonably) unless the judgment or proposed settlement
      involves only the payment of money damages and does not impose an
      injunction or other equitable relief upon the Indemnified Party.

            (c) Unless and until the Indemnifying Party assumes the defense of
      the Third Party Claim as provided in Section 10.4(b), however, the
      Indemnified Party may defend against the Third Party Claim in any manner
      it reasonably may deem appropriate.

            (d) In no event will the Indemnified Party consent to the entry of
      any judgment or enter into any settlement with respect to the Third Party
      Claim without the prior written consent of the Indemnifying Party (not to
      be withheld unreasonably).

      Section 10.5 Determination of Adverse Consequences. The Parties shall make
appropriate adjustments for tax benefits and insurance coverage and take into
account the time value of money (using the Applicable Rate as the discount rate)
in determining Adverse Consequences for purposes of this Article 10. All
indemnification payments under this Article 10 shall be deemed adjustments to
the Purchase Price for Tax purposes unless otherwise required by applicable law.

      Section 10.6 Exclusive Remedy. Except in the case of fraud, the Purchaser
and the Seller acknowledge and agree that the foregoing indemnification
provisions in this Article 10 and the relief contemplated by Sections 9.5 and
13.15 shall be the exclusive remedy of the Parties with respect to this
Agreement (including any breach of any representation, warranty or covenant) and
the transactions contemplated by this Agreement.

      Section 10.7 Waiver of Certain Damages. The indemnification obligations of
the Parties pursuant to this Article 10 shall not, except in the case of fraud,
include consequential, punitive or exemplary damages; provided that any
consequential, punitive or exemplary damages claimed by a third party (including
governmental authorities) against a Person entitled to indemnification pursuant
to this Article 10 shall be included in the Adverse Consequences recoverable
under such indemnity.

      Section 10.8 Compliance with Express Negligence Rule; Strict Liability.
ALL RELEASES, DISCLAIMERS, LIMITATIONS ON LIABILITY, AND INDEMNITIES IN THIS
AGREEMENT, INCLUDING THOSE IN THIS ARTICLE 10, SHALL APPLY

                                      -48-
<PAGE>
EVEN IN THE EVENT OF THE SOLE, JOINT, AND/OR CONCURRENT NEGLIGENCE, STRICT
LIABILITY, OR OTHER FAULT OF THE PARTY WHOSE LIABILITY IS RELEASED, DISCLAIMED,
LIMITED, OR INDEMNIFIED. WHERE A PARTY HAS AN INDEMNIFICATION OBLIGATION UNDER
THIS ARTICLE 10 AS TO A MATTER AND APPLICABLE LAW MAY IMPOSE STRICT LIABILITY
UPON THE OTHER PARTY FOR THAT MATTER SOLELY BY VIRTUE OF SUCH OTHER PARTY'S
STATUS AS AN OWNER OR OPERATOR (AS SUCH TERMS ARE USED UNDER APPLICABLE
ENVIRONMENTAL LAW), THE APPLICATION OF SUCH STRICT LIABILITY SHALL NOT AFFECT
INDEMNIFICATION LIABILITY UNDER THIS ARTICLE 10 AND SUCH PARTY SHALL BE SOLELY
LIABLE AS PROVIDED IN THIS ARTICLE 10 NOTWITHSTANDING SUCH OTHER PARTY'S STRICT
LIABILITY.

                                   ARTICLE XI
                            TERMINATION OF AGREEMENT

      Section 11.1 Termination of Agreement. The Parties may terminate this
Agreement as provided below:

            (a) the Purchaser and the Seller may terminate this Agreement by
      mutual written consent at any time prior to the Closing;

            (b) the Purchaser may terminate this Agreement by giving written
      notice to the Seller at any time prior to the Closing (i) in the event the
      Seller has breached any representation, warranty, or covenant contained in
      this Agreement in any material respect (except, with respect to
      materiality, for any provisions including the word "material" or words of
      similar import, in which case such termination rights will arise upon any
      breach), the Purchaser has notified the Seller of the breach, and the
      breach has continued without cure for a period of thirty (30) days after
      the notice of breach or (ii) if the Closing shall not have occurred on or
      before June 30, 2004, by reason of the failure of any condition precedent
      under Article 8 hereof (unless such failure results primarily from the
      Purchaser itself breaching any representation, warranty, or covenant
      contained in this Agreement); and

            (c) the Seller may terminate this Agreement by giving written notice
      to the Purchaser at any time prior to the Closing (i) in the event the
      Purchaser has breached any representation, warranty, or covenant contained
      in this Agreement in any material respect (except, with respect to
      materiality, for any provisions including the word "material" or words of
      similar import, in which case such termination rights will arise upon any
      breach), the Seller has notified the Purchaser of the breach, and the
      breach has continued without cure for a period of thirty (30) days after
      the notice of breach or (ii) if the Closing shall not have occurred on or
      before June 30, 2004, by reason of the failure of any condition precedent
      under Article 7 hereof (unless such failure results primarily from the
      Seller itself breaching any representation, warranty, or covenant
      contained in this Agreement).

                                      -49-
<PAGE>
      Section 11.2 Effect of Termination. If any Party terminates this Agreement
pursuant to Section 11.1, all rights and obligations of the Parties hereunder
shall terminate without any liability of any Party to the other Party (except
for any liability of any Party then in breach); provided, however, that (a) the
confidentiality provisions contained in Section 6.4 and (b) Sections 13.8 and
13.11, shall survive termination.

                                   ARTICLE XII
                         EMPLOYEES AND EMPLOYEE BENEFITS

      Section 12.1 Employees.

            (a)   Employment by Purchaser.

                  (i) The Purchaser shall offer employment to all employees of
            the Seller and its Affiliates who are assigned to the Company or any
            Company Subsidiary immediately prior to the Closing. Upon the
            Closing, the Seller and its Affiliates shall release from such
            employment all such employees of the Seller and its Affiliates who
            have accepted an employment offer from the Purchaser and the Company
            and the Company Subsidiaries shall cease to be participating
            employers in all Employee Benefit Plans sponsored or maintained by
            the Seller and its Affiliates. Upon the Closing, the Purchaser shall
            cause the Company and each Company Subsidiary to retain as an "at
            will" employee each person then employed by the Company or any
            Company Subsidiary (all such persons, including those hired by the
            Purchaser pursuant to the first sentence of this Section 12.1 being
            hereinafter referred to as the "Employees") at a base salary not
            less than, and with employee benefits which are, in the reasonable
            judgment of Purchaser, substantially comparable in the aggregate to
            those received by such Employee immediately prior to the Closing,
            and at a principal business location that does not increase any
            Employee's one-way commuting distance by more than 50 miles. Prior
            to the Closing, Purchaser shall be afforded reasonable opportunity
            to interview such Employees as it deems appropriate to assist in its
            evaluation of the level of importance of those Employee Benefit
            Plans offered by Exelon and the selection of those plans to be
            offered after Closing; provided, however, that the Purchaser shall
            not ask for any information that would be protected by HIPAA if it
            were requested from a health care plan or any similar or related
            information, including any information concerning any medical
            condition or history, or any other information of any kind that
            would not be lawful to request from an applicant for employment or a
            current employee. Without limiting the foregoing, from and after the
            Closing, each Employee shall be eligible for participation in the
            Employee Benefit Plans maintained by the Purchaser and as in effect
            from time to time (the "Purchaser Plans"), which plans shall include
            a medical benefit plan and a pension or savings plan. The Employees
            shall be subject to any eligibility conditions contained in the
            Purchaser Plans (including, but not limited to, exclusion from
            eligibility by reason of being covered under a collective bargaining
            agreement), except that with respect to life, health and dental
            plans, any Employees participating in comparable plans of the Seller
            and its Affiliates immediately prior to the Closing Date and not
            subject to the preexisting condition

                                      -50-
<PAGE>
            exclusions of such plans shall not be subject to the preexisting
            condition exclusions of the Purchaser Plans. Each Employee shall
            receive full credit for past service to the Seller and its
            Affiliates for the purposes of satisfying any eligibility
            requirements and vesting requirements of the Purchaser Plans.

                  (ii) In the event any Employee suffers a termination within
            twelve (12) months following the Closing Date that would have
            constituted a qualified termination under the Exelon Corporation
            Severance Benefit Plan (the "Exelon Severance Plan") as in effect of
            the date hereof, the Purchaser shall provide to such Employee
            severance pay not less than the severance pay (excluding other
            benefits) that would have been available to such Employee under the
            Exelon Corporation Severance Benefit Plan as in effect on the date
            hereof (taking into account such Employee's service to the Seller
            and its Affiliates for the purpose of calculating the amount of
            severance pay), but only to the extent such Employee would have been
            entitled to such severance pay under the terms of the Exelon
            Severance Plan as in effect on the date hereof had such Employee
            incurred a qualified termination of employment on the date hereof.

                  (iii) In the event (A) Tibor Jozsa suffers a termination that
            would not have constituted termination for cause under the Benefits
            Summary of the Severance Plan for Designated Senior Employees of UTT
            Nevada, Inc. attached to the UTT Nevada Inc. Employee Noncompetition
            and Confidentiality Agreement (the "UTT Nevada Severance Plan") as
            in effect on the date hereof, (B) the Seller or one of its
            Affiliates is required to make severance payments to Tibor Jozsa
            under the UTT Nevada Severance Plan as a result of such termination
            and (C) the parties have executed a definitive agreement regarding
            the sale of the business of Northwind Aladdin, LLC which has not
            been subsequently terminated, the Purchaser shall reimburse the
            Seller for the severance payments made to Tibor Jozsa (excluding
            other benefits) pursuant to the UTT Nevada Severance Plan, but only
            to the extent Tibor Jozsa would have been entitled to such severance
            pay under the terms of the UTT Nevada Severance Plan as in effect on
            the date hereof had Tibor Jozsa incurred such termination on the
            date hereof.

                  (iv) At or prior to Closing, the Seller shall cause each of
            the Company and the Company Subsidiaries to cease to be a
            participating employer in all Employee Benefit Plans (other than
            Multiemployer Plans) disclosed on Schedule 4.15. The Seller shall
            retain sole liability and be responsible for all funding obligations
            and claims filed by or on behalf of Employees or their dependents
            with respect to matters occurring or benefits accruing thereunder
            (other than any withdrawal liability incurred after the Closing
            Date). The Seller shall retain responsibility for any COBRA
            obligation to any former Employee or "qualified beneficiary" who has
            elected to receive or has the right to elect to receive health care
            continuation pursuant to COBRA under any Employee Welfare Benefit
            Plan prior to the Closing Date. Except (i) as contemplated herein,
            (ii) for fringe benefits and other retirement, bonus, incentive and
            similar plans and programs, the amounts of which are included in the
            Final Net Working

                                      -51-
<PAGE>
            Capital Calculation or (iii) as required by a collective bargaining
            agreement or as otherwise required with respect to any Multiemployer
            Plan, neither Purchaser, nor the Company or any Company Subsidiary
            (from and after the date of their withdrawal from sponsorship of and
            participation therein) shall be obligated to pay, perform or
            otherwise discharge any liability or obligation of the Seller, the
            Company or any of the Company Subsidiaries relating to any Employee
            Benefit Plan that the Seller, the Company or any of the Company
            Subsidiaries maintains, contributes or has any obligation to
            contribute to, or with respect to which the Company or any Company
            Subsidiary has any liability or potential liability.

                  (v) The provisions of this Section 12.1 shall not entitle any
            Employee to any specific benefits or limit or otherwise restrict the
            right of the Purchaser, the Company or any Company Subsidiary to
            amend or revoke any Employee Benefit Plan, or alter the "at will"
            employment of any Employee.

            (b) Union Employees. Notwithstanding any provision of this Agreement
      to the contrary, upon Closing the Purchaser or its designee agrees to
      recognize the labor unions representing certain Employees under current
      collective bargaining agreements. Upon Closing, the Purchaser or its
      designee agrees to assume the contractual obligations under the collective
      bargaining agreements for the remainder of their terms. Employees under
      the collective bargaining agreements ("Union Employees") shall receive the
      wages, compensation, employee benefits, hours, terms and conditions of
      employment specified in the applicable collective bargaining agreement for
      the Union Employees, but shall not be covered by, and shall have no right
      to, any compensation, Employee Benefit Plan, or any other term or
      condition of employment that may be provided by the Purchaser or its
      designee to Employees who are not Union Employees unless required by the
      terms of the collective bargaining agreements.

      Section 12.2 WARN Act. Within ninety (90) days of the Closing Date, the
Purchaser shall not cause, or permit any of its Affiliates to cause, an
employment loss, as defined in the WARN Act, in sufficient numbers such that as
a result of the employment loss caused by the Purchaser or any of its Affiliates
the notice requirement of the WARN Act is applicable. The Purchaser shall be
responsible, and the Seller and its Affiliates shall have no liability, for
claims, losses, damages, expenses, obligations and liabilities related to any
suit, proceeding or claim brought by any of the employees of the Company and the
Company Subsidiaries relating to or arising from the WARN Act with respect to
any employee not hired by the Purchaser and its Affiliates at the Closing or any
termination of employment by the Purchaser or any of its Affiliates following
the CLOSING.

                                  ARTICLE XIII
                                     GENERAL

      Section 13.1 Press Releases and Public Announcements. Immediately
following the date hereof, each Party shall cooperate with the other Party to
prepare and issue a press release announcing the execution of this Agreement. No
Party shall issue any press release or make any other public announcement
relating to the subject matter of this Agreement prior to the Closing without
the prior written approval of the other Party which approval shall not be
unreasonably

                                      -52-
<PAGE>
withheld; provided, however, that any Party may make any public disclosure it
believes in good faith is required by applicable law or any listing or trading
agreement concerning its publicly-traded securities (in which case the
disclosing Party will use its reasonable efforts to advise the other Party prior
to making the disclosure).

      Section 13.2 No Third-Party Beneficiaries. This Agreement shall not confer
any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

      Section 13.3 Entire Agreement. This Agreement, together with the Letter
Agreement and the other documents referred to herein, constitutes the entire
agreement between the Parties and supersedes any prior understandings,
agreements, or representations by or between the Parties, written or oral, to
the extent they relate in any way to the subject matter hereof.

      Section 13.4 Succession and Assignment. This Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior written
approval of the other Party; provided, however, that the Purchaser may (a)
assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (b) designate one or more of its Affiliates to perform its
obligations hereunder without the Seller's prior written approval (in any or all
of which cases (i) the Purchaser nonetheless shall remain responsible for the
performance of all of its obligations hereunder and (ii) District Energy and
Macquarie shall remain responsible for the performance of all their respective
obligations hereunder).

      Section 13.5 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

      Section 13.6 Headings. The section headings contained in this Agreement
are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

      Section 13.7 Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

      if to the Seller or Exelon:

            President
            Exelon Enterprises Company, LLC
            10 South Dearborn, 37th Floor
            Chicago, Illinois 60680-5379
            Telecopier:  (312) 394-8814

                                      -53-
<PAGE>
      with copies to:

            Associate General Counsel - Corporate & Commercial
            Exelon Corporation
            10 South Dearborn, 35th Floor
            Chicago, Illinois 60680-5379
            Telecopier: (312) 394-4462

      and to:

            Robert F. Wall
            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois  60601
            Telecopier:  (312) 558-5700

if to the Purchaser, District Energy or Macquarie:

            Peter Stokes
            Macquarie District Energy, Inc.
            600 Fifth Avenue
            21st Floor
            New York, New York 10020
            Telecopier:  (212) 399-8930

      with a copy to:

            Terry Radney
            Locke Liddell & Sapp LLP
            600 Travis
            3400 JPMorgan Chase Tower
            Houston, Texas 77002
            Telecopier:  (713) 223-3717

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Party
notice in the manner herein set forth.

      Section 13.8 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

                                      -54-
<PAGE>
      Section 13.9 Amendments and Waivers. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by the
Purchaser and the Seller. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

      Section 13.10 Severability. Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

      Section 13.11 Expenses. Each of the Seller and the Purchaser will bear its
own costs and expenses (including legal fees and expenses) incurred in
connection with the preparation, execution and performance of this Agreement and
the transactions contemplated hereby.

      Section 13.12 Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise.

      Section 13.13 Incorporation of Exhibits and Schedules. The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

      Section 13.14 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY WAIVES
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT. EACH OF THE PARTIES ACKNOWLEDGES THAT
THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL
CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH OF THE
PARTIES WARRANTS AND REPRESENTS THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING
THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS.

      Section 13.15 Specific Performance. The Parties to this Agreement agree
that if any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached, irreparable damage would
occur, no adequate remedy at law would exist and damages would be difficult to
determine, and that the Parties shall be entitled to specific performance of the
terms of this Agreement and immediate injunctive relief, without the necessity
of proving the inadequacy of money damages as a remedy, in addition to any other
remedy at law or in equity.

                                      -55-
<PAGE>
      Section 13.16 CONSENT TO JURISDICTION. EACH OF THE PARTIES HEREBY CONSENTS
TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF
COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS.
EACH OF THE PARTIES EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH OF THE
PARTIES HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT
ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH PARTY BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH PARTY AT THE
ADDRESS SET FORTH IN SECTION 13.7 AND SERVICE SO MADE SHALL BE COMPLETE TEN (10)
DAYS AFTER THE SAME HAS BEEN POSTED.

      Section 13.17 Macquarie Guaranty. Macquarie does hereby unconditionally
and irrevocably guarantee to the Seller the full and prompt performance and
payment when due, as primary obligor and not only as a surety, as the case may
be, of the Guaranteed Obligations (as hereinafter defined). For purposes of this
Agreement, "Guaranteed Obligations" means all amounts required to be paid
(including, without limitation, the Purchase Price) and all obligations to be
performed by the Purchaser pursuant to the terms and conditions of this
Agreement prior to, or in connection with, the Closing. The Seller may obtain
recourse against Macquarie for the payment and performance of the Guaranteed
Obligations prior to, concurrently with, or after any other action, proceeding,
or other means by which the Seller may from time to time elect to enforce such
Guaranteed Obligations. In no event shall the Seller be deemed to have elected
any remedy which precludes or impairs its ability to proceed against Macquarie
hereunder. Macquarie hereby waives (i) protest, presentment, demand for payment
and notice of default or nonpayment, (ii) notice of creation, existence or
non-payment of any or all of the Guaranteed Obligations and (iii) diligence in
the collection or protection of or realization upon the Guaranteed Obligations.
Notwithstanding anything else in this Agreement to the contrary, Macquarie may
not assign or transfer its obligations hereunder to any other person without the
prior written consent of the Seller. Macquarie shall be entitled to perform or
satisfy the Guaranteed Obligations pursuant to the same terms and conditions and
subject to the same rights and limitations as are applicable to the Purchaser
under this Agreement. Notwithstanding anything in this Agreement to the
contrary, in no event shall Macquarie have any liability or obligation of any
kind or nature pursuant to this Agreement for any amounts in excess of the
Purchase Price and upon payment of the Purchase Price to Seller at Closing,
Macquarie shall be fully and finally released and forever discharged from any
and all liability or obligations of any kind or nature pursuant to this
Agreement. Macquarie shall not enforce or otherwise exercise any right of
subrogation to any of the rights of the Seller until all of the Guaranteed
Obligations are indefeasibly paid in full.

                        *     *     *     *     *     *

                                      -56-
<PAGE>
      IN WITNESS WHEREOF, the Parties hereto have executed this Stock Purchase
Agreement (Chicago) as of the day and year first above written.

                                    MACQUARIE DISTRICT ENERGY, INC.

                                    By:    /s/ Murray Bleach
                                           -------------------------------------
                                    Name:  Murray Bleach
                                           -------------------------------------
                                    Title: Authorized Signatory
                                           -------------------------------------

                                    By:    /s/ Thomas E. Capasse
                                           -------------------------------------
                                    Name:  Thomas E. Capasse
                                           -------------------------------------
                                    Title: Authorized Signatory
                                           -------------------------------------

                                    EXELON THERMAL HOLDINGS, INC.

                                    By:    /s/ George H. Gilmore Jr.
                                           -------------------------------------
                                    Name:  George H. Gilmore Jr.
                                           -------------------------------------
                                    Title: President
                                           -------------------------------------

                                    FOR PURPOSES OF SECTIONS 9.4 AND 9.5 AND
                                    ARTICLES X AND XIII ONLY:

                                    EXELON CORPORATION

                                    By:    /s/ George H. Gilmore Jr.
                                           -------------------------------------
                                    Name:  George H. Gilmore Jr.
                                           -------------------------------------
                                    Title: Senior Vice President
                                           -------------------------------------
<PAGE>
                                    FOR PURPOSES OF ARTICLES X AND XIII
                                    ONLY:

                                    MACQUARIE DISTRICT ENERGY HOLDINGS, LLC

                                    By:    /s/ Murray Bleach
                                           -------------------------------------
                                    Name:  Murray Bleach
                                           -------------------------------------
                                    Title: Authorized Signatory
                                           -------------------------------------

                                    By:    /s/ Thomas E. Capasse
                                           -------------------------------------
                                    Name:  Thomas E. Capasse
                                           -------------------------------------
                                    Title: Authorized Signatory
                                           -------------------------------------

                                    FOR PURPOSES OF ARTICLE XIII ONLY:

                                    MACQUARIE BANK LIMITED

                                    By:    /s/ Murray Bleach
                                           -------------------------------------
                                    Name:  Murray Bleach
                                           -------------------------------------
                                    Title: Attorney-in-fact
                                           -------------------------------------

                                    By:    /s/ Thomas E. Capasse
                                           -------------------------------------
                                    Name:  Thomas E. Capasse
                                           -------------------------------------
                                    Title: Attorney-in-fact
                                           -------------------------------------

              Signature Page to Stock Purchase Agreement (Chicago)
<PAGE>
                                AMENDMENT NO. 1
                                       TO
                            STOCK PURCHASE AGREEMENT
                                   (CHICAGO)

     This is an Amendment No. 1 dated as of June 30, 2004, by and between
Macquarie District Energy, Inc., a Delaware corporation (the "Purchaser"), and
Exelon Thermal Holdings, Inc., a Delaware corporation (the "Seller"), to that
certain Stock Purchase Agreement (Chicago) dated as of December 12, 2003 (the
"Stock Purchase Agreement"), by and among the Purchaser, the Seller, Macquarie
District Energy Holdings, LLC ("District Energy"), Exelon Corporation ("Exelon")
and Macquarie Bank Limited ("Macquarie").

                                    Recitals

     A.   The Purchaser, the Seller, District Energy, Exelon and Macquarie have
entered into the Stock Purchase Agreement.

     B.   The Purchaser and the Seller now desire to modify the Stock Purchase
Agreement on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises of performance by
the parties hereto and for other good and valid consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:

     1.   Amendment to Section 1.1.  The definition of Net Working Capital in
Section 1.1 of the Stock Purchase Agreement is hereby amended and restated to
read in its entirety as follows:

     "'Net Working Capital' means an amount equal to all "current assets" of the
     Company and the Company Subsidiaries on a consolidated basis minus all
     "current liabilities" of the Company and the Company Subsidiaries on a
     consolidated basis, each as determined as of the Closing Date in accordance
     with GAAP in a manner consistent with the application of the accounting
     principles applied in preparing the Financial Statements; provided,
     however, that cash and cash equivalents shall not be included for purposes
     of the Estimated Net Working Capital Calculation, but will be included, if
     applicable, for purposes of the Final Net Working Capital Calculation."

     2.   Amendment to Section 2.5(e).  Section 2.5(e) is hereby amended and
restated in its entirety to read as follows:

          "(e)  In the event the sum of (i) the Final Net Working Capital
     Calculation as reflected on the Final Closing Balance Sheet plus (ii)
     $50,000 is less than the Estimated Net Working Capital Calculation, the
     Seller shall pay to the Purchaser within ten (10) days after the Settlement
     Date an amount equal to such deficiency plus accrued interest on such
     deficiency at the Applicable Rate from the date such deficiency is due to
     the date of payment of such deficiency and accrued interest. In the event
     the sum of (x) the Final Net Working Capital Calculation as reflected on
     the Final Closing Balance Sheet plus (y) $50,000 is greater than the
     Estimated Net Working Capital Calculation, the Purchaser

<PAGE>
      shall pay to the Seller within ten (10) days after the Settlement Date an
      amount equal to such excess plus accrued interest on such excess at the
      Applicable Rate from the date such excess is due to the date of payment of
      such excess and accrued interest."

      3.   Amendment to Section 9.1. The second sentence of Section 9.1(d) is
hereby amended and restated in its entirety to read as follows:

      "Such assistance shall include, without limitation, the retention and
      (upon the other Party's request) the provision of records and information
      (including, but not limited to, copies of Tax Return workpapers of the
      Company or any Company Subsidiary for tax years ending in calendar years
      2000, 2001, 2002 and 2003) which are reasonably relevant to the
      preparation of any such Income Tax Return or report of Taxes, audit,
      examination or proceeding, making employees available on a mutually
      convenient basis to provide additional information or explanation of
      material provided hereunder and providing copies of relevant Income Tax
      Returns and supporting material."

      4.   Kenney Employment Arrangement. Notwithstanding anything in the Stock
Purchase Agreement to the contrary, (a) the Purchaser agrees that it (i) will
not hire William S. Kenney ("Kenney") at Closing, (ii) will keep its offer of
employment to Kenney dated the Closing Date open to Kenney through October 1,
2004, and (iii) will hire Kenney pursuant to such offer effective October 1,
2004 if he accepts such offer at any time prior thereto and (b) the Seller
agrees that it (i) will continue to employ Kenney through September 30, 2004 on
the same terms and conditions pursuant to which he was employed by the Seller
immediately prior to the Closing and (ii) will second Kenney to the Purchaser
for the period from the Closing Date through September 30, 2004. As
consideration for the secondment of Kenney in the previous sentence to the
Purchaser, the Purchaser shall reimburse the Seller at a rate equal to 140% of
the salary paid to Kenney during the period of such secondment, in proportion to
the amount of business time Kenney spends providing services to the Purchaser,
at the same times such payments are made to or for the benefit of Kenney.

      5.   Credit Enhancement. Notwithstanding the Seller's agreement to close
the transactions contemplated by the Stock Purchase Agreement and waive the
satisfaction of the condition precedent set forth in Section 7.5 of the Stock
Purchase Agreement, the Purchaser agrees that it will (a) provide proposed
credit enhancements, as necessary (the "Purchaser Credit Enhancements"), in
replacement of the Seller Credit Enhancements set forth on Schedule 6.6 to the
Stock Purchase Agreement, within five (5) Business Days of the Closing Date and
cooperate with the Seller in its efforts to have the Purchaser Credit
Enhancements accepted in lieu of the Seller Credit Enhancements, and (b)
indemnify, defend and hold harmless the Seller Indemnified Parties from and
against the entirety of any Adverse Consequences the Seller Indemnified Parties
may suffer pursuant to the Seller Credit Enhancements from and after the Closing
Date until such time as the Seller Credit Enhancements have been returned to the
Seller or otherwise released; provided, however, that in no event shall the
Purchaser have any liability for any Adverse Consequences in excess of the face
amount of the applicable Seller Credit Enhancement; provided, further, that
nothing in this paragraph 5 shall limit the Purchaser's rights to
indemnification pursuant to Article X of the Stock Purchase Agreement.

      6.   Effect of Amendment. The parties acknowledge that the Stock Purchase
Agreement which was executed as of December 12, 2003, has, except as amended
herein, not

                                      -2-

<PAGE>
been amended in writing or otherwise and remains in full force and effect. All
covenants and agreements made herein shall have the same effect as if made in
the Stock Purchase Agreement.

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

     8.   GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

                                      -3-
<PAGE>
     IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of
the date first above written.

                                       MACQUARIE DISTRICT ENERGY, INC.

                                       By: /s/ James Wilson
                                           ------------------------------------
                                       Name: James Wilson
                                             ----------------------------------
                                       Title: Authorised Signatory
                                              ---------------------------------

                                       By: /s/ Fiona Griffin
                                           ------------------------------------
                                       Name: Fiona Griffin
                                             ----------------------------------
                                       Title: Authorised Signatory
                                              ---------------------------------

                                        EXELON THERMAL HOLDINGS, INC.

                                       By:
                                           ------------------------------------
                                       Name:
                                             ----------------------------------
                                       Title:
                                              ---------------------------------

   [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT (CHICAGO)]
<PAGE>
     IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of
the date first above written.

                                        MACQUAIRE DISTRICT ENERGY, INC.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        EXELON THERMAL HOLDINGS, INC.

                                        By: /s/ George H. Gilmore Jr.
                                           -------------------------------------
                                        Name: George H. Gilmore Jr.
                                             -----------------------------------
                                        Title: President
                                              ----------------------------------

   [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT (CHICAGO)]

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