Document:

Exhibit 4.101

    Exhibit
      4.101

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT (this “Agreement”),
      dated
      as of January 23, 2006, by and among Pacificap Entertainment Holdings, Inc.,
      a
      Nevada corporation with its headquarters located at 12868 Via Latina, Del Mar,
      California 92014 (the “Company”),
      and
      each of the undersigned (together with their respective affiliates and any
      assignee or transferee of all of their respective rights hereunder, the
“Initial
      Investors”).
      

     

    WHEREAS:

     

    A.  In
      connection with the Securities Purchase Agreement by and among the parties
      hereto of even date herewith (the “Securities Purchase Agreement”), the Company
      has agreed, upon the terms and subject to the conditions contained therein,
      to
      issue and sell to the Initial Investors (i) secured
      convertible notes in the aggregate principal amount of up to One Hundred and
      Eighty Thousand Dollars ($180,000) (the “Notes”) that are convertible into
      shares of the Company’s common stock (the “Common Stock”), upon the terms and
      subject to the limitations and conditions set forth in such Notes and
(ii) warrants
      (the “Warrants”) to acquire an aggregate of 180,000 shares of Common Stock, upon
      the terms and conditions and subject to the limitations and conditions set
      forth
      in the Warrants; and

     

    B.  To
      induce
      the Initial Investors to execute and deliver the Securities Purchase Agreement,
      the Company has agreed to provide certain registration rights under the
      Securities Act of 1933, as amended, and the rules and regulations thereunder,
      or
      any similar successor statute (collectively, the “1933
      Act”),
      and
      applicable state securities laws;

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Initial Investors hereby agree
      as follows:

     

    1.  DEFINITIONS.

     

    a.  As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i)  “Investors”
means
      the Initial Investors and any transferee or assignee who agrees to become bound
      by the provisions of this Agreement in accordance with Section 9
      hereof.

     

    (ii)  “register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      or
      Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
      1933 Act or any successor rule providing for offering securities on a continuous
      basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement
      by
      the United States Securities and Exchange Commission (the “SEC”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (iii)  “Registrable
      Securities”
means
      the Conversion Shares issued or issuable upon conversion or otherwise pursuant
      to the Notes including, without limitation, Damages Shares (as defined in the
      Notes) issued or issuable pursuant to the Notes, shares of Common Stock issued
      or issuable in payment of the Standard Liquidated Damages Amount (as defined
      in
      the Securities Purchase Agreement), shares issued or issuable in respect of
      interest or in redemption of the Notes in accordance with the terms thereof)
      and
      Warrant Shares issuable, upon exercise or otherwise pursuant to the Warrants,
      and any shares of capital stock issued or issuable as a dividend on or in
      exchange for or otherwise with respect to any of the foregoing.

     

    (iv)  “Registration
      Statement”
means
      a
      registration statement of the Company under the 1933 Act.

     

    b.  Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement or the Convertible
      Note.

     

    2.  REGISTRATION.

     

    a.  Mandatory
      Registration.
      The
      Company shall prepare, and, on or prior to thirty (30) days from the date of
      receipt of written demand of the Investors (the “Filing
      Date”),
      file
      with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not then
      available, on such form of Registration Statement as is then available to effect
      a registration of the Registrable Securities, subject to the consent of the
      Initial Investors, which consent will not be unreasonably withheld) covering
      the
      resale of the Registrable Securities underlying the Notes and Warrants issued
      or
      issuable pursuant to the Securities Purchase Agreement, which Registration
      Statement, to the extent allowable under the 1933 Act and the rules and
      regulations promulgated thereunder (including Rule 416), shall state that such
      Registration Statement also covers such indeterminate number of additional
      shares of Common Stock as may become issuable upon conversion of or otherwise
      pursuant to the Notes and exercise of the Warrants to prevent dilution resulting
      from stock splits, stock dividends or similar transactions. The number of shares
      of Common Stock initially included in such Registration Statement shall be
      no
      less than an amount equal to two (2) times the sum of the number of Conversion
      Shares that are then issuable upon conversion of the Notes and Additional Notes
      (based on the Variable Conversion Price as would then be in effect and assuming
      the Variable Conversion Price is the Conversion Price at such time), and the
      number of Warrant Shares that are then issuable upon exercise of the Warrants,
      without regard to any limitation on the Investor’s ability to convert the Notes
      or exercise the Warrants. The Company acknowledges that the number of shares
      initially included in the Registration Statement represents a good faith
      estimate of the maximum number of shares issuable upon conversion of the Notes
      and upon exercise of the Warrants. 

     

    b.  Underwritten
      Offering.
      If any
      offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
      involves an underwritten offering, the Investors who hold a majority in interest
      of the Registrable Securities subject to such underwritten offering, with the
      consent of a majority-in-interest of the Initial Investors, shall have the
      right
      to select one legal counsel and an investment banker or bankers and manager
      or
      managers to administer the offering, which investment banker or bankers or
      manager or managers shall be reasonably satisfactory to the
      Company.

     

    
      
         

      

      
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    c.  Payments
      by the Company.
      The
      Company shall use its best efforts to obtain effectiveness of the Registration
      Statement as soon as practicable. If (i) the
      Registration Statement(s) covering the Registrable Securities required to be
      filed by the Company pursuant to Section 2(a) hereof is not filed by the Filing
      Date or declared effective by the SEC on or prior to ninety (90) days from
      the
      Filing Date, or (ii) after
      the Registration Statement has been declared effective by the SEC, sales of
      all
      of the Registrable Securities cannot be made pursuant to the Registration
      Statement, or (iii) the
      Common Stock is not listed or included for quotation on the Nasdaq National
      Market (“Nasdaq”),
      the
      Nasdaq SmallCap Market (“Nasdaq
      SmallCap”),
      the
      New York Stock Exchange (the “NYSE”)
      or the
      American Stock Exchange (the “AMEX”)
      after
      being so listed or included for quotation, or (iv) the
      Common Stock ceases to be traded on the Over-the-Counter Bulletin Board (the
      “OTCBB”)
      or any
      equivalent replacement exchange prior to being listed or included for quotation
      on one of the aforementioned markets, then the Company will make payments to
      the
      Investors in such amounts and at such times as shall be determined pursuant
      to
      this Section 2(c) as partial relief for the damages to the Investors by reason
      of any such delay in or reduction of their ability to sell the Registrable
      Securities (which remedy shall not be exclusive of any other remedies available
      at law or in equity). The Company shall pay to each holder of the Notes or
      Registrable Securities an amount equal to the then outstanding principal amount
      of the Notes (and, in the case of holders of Registrable Securities, the
      principal amount of Notes from which such Registrable Securities were converted)
      (“Outstanding
      Principal Amount”),
      multiplied by the Applicable Percentage (as defined below) times the sum of:
      (i)
      the number of months (prorated for partial months) after the Filing Date or
      the
      end of the aforementioned ninety (90) day period and prior to the date the
      Registration Statement is declared effective by the SEC, provided, however,
      that
      there shall be excluded from such period any delays which are solely
      attributable to changes required by the Investors in the Registration Statement
      with respect to information relating to the Investors, including, without
      limitation, changes to the plan of distribution, or to the failure of the
      Investors to conduct their review of the Registration Statement pursuant to
      Section 3(h) below in a reasonably prompt manner; (ii) the number of months
      (prorated for partial months) that sales of all of the Registrable Securities
      cannot be made pursuant to the Registration Statement after the Registration
      Statement has been declared effective (including, without limitation, when
      sales
      cannot be made by reason of the Company’s failure to properly supplement or
      amend the prospectus included therein in accordance with the terms of this
      Agreement, but excluding any days during an Allowed Delay (as defined in Section
      3(f)); and (iii) the number of months (prorated for partial months) that the
      Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
      Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
      Registration Statement has been declared effective. The term “Applicable
      Percentage”
means
      two hundredths (.02). (For example, if the Registration Statement becomes
      effective one (1) month after the end of such ninety (90) day period, the
      Company would pay $5,000 for each $250,000 of Outstanding Principal Amount.
      If
      thereafter, sales could not be made pursuant to the Registration Statement
      for
      an additional period of one (1) month, the Company would pay an additional
      $5,000 for each $250,000 of Outstanding Principal Amount.) Such amounts shall
      be
      paid in cash or, at the Company’s option, in shares of Common Stock priced at
      the Conversion Price (as defined in the Notes) on such payment date.

     

    d.  Piggy-Back
      Registrations.
      Subject
      to the last sentence of this Section 2(d), if at any time prior to the
      expiration of the Registration Period (as hereinafter defined) the Company
      shall
      determine to file with the SEC a Registration Statement relating to an offering
      for its own account or the account of others under the 1933 Act of any of its
      equity securities (other than on Form S-4 or Form S-8 or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other bona fide
      employee
      benefit plans), the Company shall send to each Investor who is entitled to
      registration rights under this Section 2(d) written notice of such determination
      and, if within fifteen (15) days after the effective date of such notice, such
      Investor shall so request in writing, the Company shall include in such
      Registration Statement all or any part of the Registrable Securities such
      Investor requests to be registered, except that if, in connection with any
      underwritten public offering for the account of the Company the managing
      underwriter(s) thereof shall impose a limitation on the number of shares of
      Common Stock which may be included in the Registration Statement because, in
      such underwriter(s)’ judgment, marketing or other factors dictate such
      limitation is necessary to facilitate public distribution, then the Company
      shall be obligated to include in such Registration Statement only such limited
      portion of the Registrable Securities with respect to which such Investor has
      requested inclusion hereunder as the underwriter shall permit. Any exclusion
      of
      Registrable Securities shall be made pro rata among the Investors seeking to
      include Registrable Securities in proportion to the number of Registrable
      Securities sought to be included by such Investors; provided,
      however,
      that
      the Company shall not exclude any Registrable Securities unless the Company
      has
      first excluded all outstanding securities, the holders of which are not entitled
      to inclusion of such securities in such Registration Statement or are not
      entitled to pro rata inclusion with the Registrable Securities; and provided,
      further,
      however,
      that,
      after giving effect to the immediately preceding proviso, any exclusion of
      Registrable Securities shall be made pro rata with holders of other securities
      having the right to include such securities in the Registration Statement other
      than holders of securities entitled to inclusion of their securities in such
      Registration Statement by reason of demand registration rights. No right to
      registration of Registrable Securities under this Section 2(d) shall be
      construed to limit any registration required under Section 2(a) hereof. If
      an
      offering in connection with which an Investor is entitled to registration under
      this Section 2(d) is an underwritten offering, then each Investor whose
      Registrable Securities are included in such Registration Statement shall, unless
      otherwise agreed by the Company, offer and sell such Registrable Securities
      in
      an underwritten offering using the same underwriter or underwriters and, subject
      to the provisions of this Agreement, on the same terms and conditions as other
      shares of Common Stock included in such underwritten offering. Notwithstanding
      anything to the contrary set forth herein, the registration rights of the
      Investors pursuant to this Section 2(d) shall only be available in the event
      the
      Company fails to timely file, obtain effectiveness or maintain effectiveness
      of
      any Registration Statement to be filed pursuant to Section 2(a) in accordance
      with the terms of this Agreement.

     

    
      
         

      

      
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    e.  Eligibility
      for Form S-3, SB-2 or S-1; Conversion to Form S-3.
      The
      Company represents and warrants that it meets the requirements for the use
      of
      Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
      and
      any other Investors of the Registrable Securities. The Company agrees to file
      all reports required to be filed by the Company with the SEC in a timely manner
      so as to remain eligible or become eligible, as the case may be, and thereafter
      to maintain its eligibility, for the use of Form S-3. If the Company is not
      currently eligible to use Form S-3, not later than five (5) business days after
      the Company first meets the registration eligibility and transaction
      requirements for the use of Form S-3 (or any successor form) for registration
      of
      the offer and sale by the Initial Investors and any other Investors of
      Registrable Securities, the Company shall file a Registration Statement on
      Form
      S-3 (or such successor form) with respect to the Registrable Securities covered
      by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
      filed pursuant to Section 2(a) (and include in such Registration Statement
      on
      Form S-3 the information required by Rule 429 under the 1933 Act) or convert
      the
      Registration Statement on Form SB-2 or Form S-1, whichever is applicable, filed
      pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933
      Act
      and cause such Registration Statement (or such amendment) to be declared
      effective no later than forty-five (45) days after filing. In the event of
      a
      breach by the Company of the provisions of this Section 2(e), the Company will
      be required to make payments pursuant to Section 2(c) hereof.

     

    3.  OBLIGATIONS
      OF THE COMPANY. 

     

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

     

    a.  The
      Company shall prepare promptly, and file with the SEC not later than the Filing
      Date, a Registration Statement with respect to the number of Registrable
      Securities provided in Section 2(a), and thereafter use its best efforts to
      cause such Registration Statement relating to Registrable Securities to become
      effective as soon as possible after such filing but in no event later than
      ninety (90) days from the Filing Date), and keep the Registration Statement
      effective pursuant to Rule 415 at all times until such date as is the earlier
      of
      (i) the date on which all of the Registrable Securities have been sold and
      (ii)
      the date on which the Registrable Securities (in the opinion of counsel to
      the
      Initial Investors) may be immediately sold to the public without registration
      or
      restriction (including, without limitation, as to volume by each holder thereof)
      under the 1933 Act (the “Registration
      Period”),
      which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein,
      or
      necessary to make the statements therein not misleading.

     

    
      
         

      

      
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    b.  The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by the Registration Statements until such time as all of such
      Registrable Securities have been disposed of in accordance with the intended
      methods of disposition by the seller or sellers thereof as set forth in the
      Registration Statements. In the event the number of shares available under
      a
      Registration Statement filed pursuant to this Agreement is insufficient to
      cover
      all of the Registrable Securities issued or issuable upon conversion of the
      Notes and exercise of the Warrants, the Company shall amend the Registration
      Statement, or file a new Registration Statement (on the short form available
      therefor, if applicable), or both, so as to cover all of the Registrable
      Securities, in each case, as soon as practicable, but in any event within
      fifteen (15) days after the necessity therefor arises (based on the market
      price
      of the Common Stock and other relevant factors on which the Company reasonably
      elects to rely). The Company shall use its best efforts to cause such amendment
      and/or new Registration Statement to become effective as soon as practicable
      following the filing thereof, but in any event within thirty (30) days after
      the
      date on which the Company reasonably first determines (or reasonably should
      have
      determined) the need therefor. The provisions of Section 2(c) above shall be
      applicable with respect to such obligation, with the ninety (90) days running
      from the day the Company reasonably first determines (or reasonably should
      have
      determined) the need therefor.

     

    c.  The
      Company shall furnish to each Investor whose Registrable Securities are included
      in a Registration Statement and its legal counsel (i) promptly
      (but in no event more than two (2) business days) after the same is prepared
      and
      publicly distributed, filed with the SEC, or received by the Company, one copy
      of each Registration Statement and any amendment thereto, each preliminary
      prospectus and prospectus and each amendment or supplement thereto, and, in
      the
      case of the Registration Statement referred to in Section 2(a), each letter
      written by or on behalf of the Company to the SEC or the staff of the SEC,
      and
      each item of correspondence from the SEC or the staff of the SEC, in each case
      relating to such Registration Statement (other than any portion of any thereof
      which contains information for which the Company has sought confidential
      treatment), and (ii) promptly
      (but in no event more than two (2) business days) after the Registration
      Statement is declared effective by the SEC, such number of copies of a
      prospectus, including a preliminary prospectus, and all amendments and
      supplements thereto and such other documents as such Investor may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by such Investor. The Company will immediately notify each Investor by
      facsimile of the effectiveness of each Registration Statement or any
      post-effective amendment. The Company will promptly (but in no event more than
      five (5) business days) respond to any and all comments received from the SEC
      (which comments shall promptly be made available to the Investors upon request),
      with a view towards causing each Registration Statement or any amendment thereto
      to be declared effective by the SEC as soon as practicable, shall promptly
      file
      an acceleration request as soon as practicable (but in no event more than two
      (2) business days) following the resolution or clearance of all SEC comments
      or,
      if applicable, following notification by the SEC that any such Registration
      Statement or any amendment thereto will not be subject to review and shall
      promptly file with the SEC a final prospectus as soon as practicable (but in
      no
      event more than two (2) business days) following receipt by the Company from
      the
      SEC of an order declaring the Registration Statement effective. In the event
      of
      a breach by the Company of the provisions of this Section 3(c), the Company
      will
      be required to make payments pursuant to Section 2(c) hereof.

     

    
      
         

      

      
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    d.  The
      Company shall use reasonable efforts to (i) register
      and qualify the Registrable Securities covered by the Registration Statements
      under such other securities or “blue sky” laws of such jurisdictions in the
      United States as the Investors who hold a majority in interest of the
      Registrable Securities being offered reasonably request, (ii) prepare
      and file in those jurisdictions such amendments (including post-effective
      amendments) and supplements to such registrations and qualifications as may
      be
      necessary to maintain the effectiveness thereof during the Registration Period,
      (iii) take
      such other actions as may be necessary to maintain such registrations and
      qualifications in effect at all times during the Registration Period, and
(iv) take
      all other actions reasonably necessary or advisable to qualify the Registrable
      Securities for sale in such jurisdictions; provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (a) qualify
      to do business in any jurisdiction where it would not otherwise be required
      to
      qualify but for this Section 3(d), (b) subject
      itself to general taxation in any such jurisdiction, (c) file
      a general consent to service of process in any such jurisdiction, (d) provide
      any undertakings that cause the Company undue expense or burden, or (e) make
      any change in its charter or bylaws, which in each case the Board of Directors
      of the Company determines to be contrary to the best interests of the Company
      and its shareholders.

     

    e.  In
      the
      event Investors who hold a majority-in-interest of the Registrable Securities
      being offered in the offering (with the approval of a majority-in-interest
      of
      the Initial Investors) select underwriters for the offering, the Company shall
      enter into and perform its obligations under an underwriting agreement, in
      usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the underwriters of such offering.

     

    f.  As
      promptly as practicable after becoming aware of such event, the Company shall
      notify each Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in any Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to any Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to each Investor as such Investor may reasonably
      request; provided that, for not more than ten (10) consecutive trading days
      (or
      a total of not more than twenty (20) trading days in any twelve (12) month
      period), the Company may delay the disclosure of material non-public information
      concerning the Company (as well as prospectus or Registration Statement
      updating) the disclosure of which at the time is not, in the good faith opinion
      of the Company, in the best interests of the Company (an “Allowed
      Delay”);
      provided, further, that the Company shall promptly (i) notify
      the Investors in writing of the existence of (but in no event, without the
      prior
      written consent of an Investor, shall the Company disclose to such investor
      any
      of the facts or circumstances regarding) material non-public information giving
      rise to an Allowed Delay and (ii) advise
      the Investors in writing to cease all sales under such Registration Statement
      until the end of the Allowed Delay. Upon expiration of the Allowed Delay, the
      Company shall again be bound by the first sentence of this Section 3(f) with
      respect to the information giving rise thereto.

     

    g.  The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of any Registration Statement, and, if such
      an
      order is issued, to obtain the withdrawal of such order at the earliest possible
      moment and to notify each Investor who holds Registrable Securities being sold
      (or, in the event of an underwritten offering, the managing underwriters) of
      the
      issuance of such order and the resolution thereof.

     

    
      
         

      

      
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    h.  The
      Company shall permit a single firm of counsel designated by the Initial
      Investors to review such Registration Statement and all amendments and
      supplements thereto (as well as all requests for acceleration or effectiveness
      thereof) a reasonable period of time prior to their filing with the SEC, and
      not
      file any document in a form to which such counsel reasonably objects and will
      not request acceleration of such Registration Statement without prior notice
      to
      such counsel. The sections of such Registration Statement covering information
      with respect to the Investors, the Investor’s beneficial ownership of securities
      of the Company or the Investors intended method of disposition of Registrable
      Securities shall conform to the information provided to the Company by each
      of
      the Investors.

     

    i.  The
      Company shall make generally available to its security holders as soon as
      practicable, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with the provisions
      of
      Rule 158 under the 1933 Act) covering a twelve-month period beginning not later
      than the first day of the Company’s fiscal quarter next following the effective
      date of the Registration Statement.

     

    j.  At
      the
      request of any Investor, the Company shall furnish, on the date that Registrable
      Securities are delivered to an underwriter, if any, for sale in connection
      with
      any Registration Statement or, if such securities are not being sold by an
      underwriter, on the date of effectiveness thereof (i) an
      opinion, dated as of such date, from counsel representing the Company for
      purposes of such Registration Statement, in form, scope and substance as is
      customarily given in an underwritten public offering, addressed to the
      underwriters, if any, and the Investors and (ii) a
      letter, dated such date, from the Company’s independent certified public
      accountants in form and substance as is customarily given by independent
      certified public accountants to underwriters in an underwritten public offering,
      addressed to the underwriters, if any, and the Investors.

     

    k.  The
      Company shall make available for inspection by (i) any
      Investor, (ii) any
      underwriter participating in any disposition pursuant to a Registration
      Statement, (iii) one
      firm of attorneys and one firm of accountants or other agents retained by the
      Initial Investors, (iv) one
      firm of attorneys and one firm of accountants or other agents retained by all
      other Investors, and (v) one
      firm of attorneys retained by all such underwriters (collectively, the
“Inspectors”)
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company, including without limitation, records of conversions
      by other holders of convertible securities issued by the Company and the
      issuance of stock to such holders pursuant to the conversions (collectively,
      the
“Records”),
      as
      shall be reasonably deemed necessary by each Inspector to enable each Inspector
      to exercise its due diligence responsibility, and cause the Company’s officers,
      directors and employees to supply all information which any Inspector may
      reasonably request for purposes of such due diligence; provided,
      however,
      that
      each Inspector shall hold in confidence and shall not make any disclosure
      (except to an Investor) of any Record or other information which the Company
      determines in good faith to be confidential, and of which determination the
      Inspectors are so notified, unless (a) the
      disclosure of such Records is necessary to avoid or correct a misstatement
      or
      omission in any Registration Statement, (b) the
      release of such Records is ordered pursuant to a subpoena or other order from
      a
      court or government body of competent jurisdiction, or (c) the
      information in such Records has been made generally available to the public
      other than by disclosure in violation of this or any other agreement. The
      Company shall not be required to disclose any confidential information in such
      Records to any Inspector until and unless such Inspector shall have entered
      into
      confidentiality agreements (in form and substance satisfactory to the Company)
      with the Company with respect thereto, substantially in the form of this Section
      3(k). Each Investor agrees that it shall, upon learning that disclosure of
      such
      Records is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to the Company and
      allow
      the Company, at its expense, to undertake appropriate action to prevent
      disclosure of, or to obtain a protective order for, the Records deemed
      confidential. Nothing herein (or in any other confidentiality agreement between
      the Company and any Investor) shall be deemed to limit the Investor’s ability to
      sell Registrable Securities in a manner which is otherwise consistent with
      applicable laws and regulations. 

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

     

    l.  The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure
      of such information is necessary to comply with federal or state securities
      laws, (ii) the
      disclosure of such information is necessary to avoid or correct a misstatement
      or omission in any Registration Statement, (iii) the
      release of such information is ordered pursuant to a subpoena or other order
      from a court or governmental body of competent jurisdiction, or (iv) such
      information has been made generally available to the public other than by
      disclosure in violation of this or any other agreement. The Company agrees
      that
      it shall, upon learning that disclosure of such information concerning an
      Investor is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to such Investor prior
      to making such disclosure, and allow the Investor, at its expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, such information.

     

    m.  The
      Company shall (i) cause
      all the Registrable Securities covered by the Registration Statement to be
      listed on each national securities exchange on which securities of the same
      class or series issued by the Company are then listed, if any, if the listing
      of
      such Registrable Securities is then permitted under the rules of such exchange,
      or (ii) to
      the extent the securities of the same class or series are not then listed on
      a
      national securities exchange, secure the designation and quotation, of all
      the
      Registrable Securities covered by the Registration Statement on Nasdaq or,
      if
      not eligible for Nasdaq, on Nasdaq SmallCap or, if not eligible for Nasdaq
      or
      Nasdaq SmallCap, on the OTCBB and, without limiting the generality of the
      foregoing, to arrange for at least two market makers to register with the
      National Association of Securities Dealers, Inc. (“NASD”)
      as
      such with respect to such Registrable Securities.

     

    n.  The
      Company shall provide a transfer agent and registrar, which may be a single
      entity, for the Registrable Securities not later than the effective date of
      the
      Registration Statement.

     

    o.  The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and the managing underwriter or underwriters, if any, to facilitate
      the
      timely preparation and delivery of certificates (not bearing any restrictive
      legends) representing Registrable Securities to be offered pursuant to a
      Registration Statement and enable such certificates to be in such denominations
      or amounts, as the case may be, as the managing underwriter or underwriters,
      if
      any, or the Investors may reasonably request and registered in such names as
      the
      managing underwriter or underwriters, if any, or the Investors may request,
      and,
      within three (3) business days after a Registration Statement which includes
      Registrable Securities is ordered effective by the SEC, the Company shall
      deliver, and shall cause legal counsel selected by the Company to deliver,
      to
      the transfer agent for the Registrable Securities (with copies to the Investors
      whose Registrable Securities are included in such Registration Statement) an
      instruction in the form attached hereto as Exhibit
      1
      and an
      opinion of such counsel in the form attached hereto as Exhibit 2.

     

    p.  At
      the
      request of the holders of a majority-in-interest of the Registrable Securities,
      the Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      any
      prospectus used in connection with the Registration Statement as may be
      necessary in order to change the plan of distribution set forth in such
      Registration Statement.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

     

    q.  From
      and
      after the date of this Agreement, the Company shall not, and shall not agree
      to,
      allow the holders of any securities of the Company to include any of their
      securities in any Registration Statement under Section 2(a) hereof or any
      amendment or supplement thereto under Section 3(b) hereof without the consent
      of
      the holders of a majority-in-interest of the Registrable
      Securities.

     

    r.  The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investors of Registrable Securities pursuant
      to a
      Registration Statement.

     

    4.  OBLIGATIONS
      OF THE INVESTORS.

     

    In
      connection with the registration of the Registrable Securities, the Investors
      shall have the following obligations:

     

    a.  It
      shall
      be a condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of a particular Investor that such Investor shall furnish to the
      Company such information regarding itself, the Registrable Securities held
      by it
      and the intended method of disposition of the Registrable Securities held by
      it
      as shall be reasonably required to effect the registration of such Registrable
      Securities and shall execute such documents in connection with such registration
      as the Company may reasonably request. At least three (3) business days prior
      to
      the first anticipated filing date of the Registration Statement, the Company
      shall notify each Investor of the information the Company requires from each
      such Investor. 

     

    b.  Each
      Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statements hereunder, unless
      such Investor has notified the Company in writing of such Investor’s election to
      exclude all of such Investor’s Registrable Securities from the Registration
      Statements.

     

    c.  In
      the
      event Investors holding a majority-in-interest of the Registrable Securities
      being registered (with the approval of the Initial Investors) determine to
      engage the services of an underwriter, each Investor agrees to enter into and
      perform such Investor’s obligations under an underwriting agreement, in usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the managing underwriter of such offering and
      take such other actions as are reasonably required in order to expedite or
      facilitate the disposition of the Registrable Securities, unless such Investor
      has notified the Company in writing of such Investor’s election to exclude all
      of such Investor’s Registrable Securities from such Registration
      Statement.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

     

    d.  Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), such
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until such Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
      Company, such Investor shall deliver to the Company (at the expense of the
      Company) or destroy (and deliver to the Company a certificate of destruction)
      all copies in such Investor’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

     

    e.  No
      Investor may participate in any underwritten registration hereunder unless
      such
      Investor (i) agrees
      to sell such Investor’s Registrable Securities on the basis provided in any
      underwriting arrangements in usual and customary form entered into by the
      Company, (ii) completes
      and executes all questionnaires, powers of attorney, indemnities, underwriting
      agreements and other documents reasonably required under the terms of such
      underwriting arrangements, and (iii) agrees
      to pay its pro rata share of all underwriting discounts and commissions and
      any
      expenses in excess of those payable by the Company pursuant to Section 5
      below.

     

    5.  EXPENSES
      OF REGISTRATION.

     

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, all registration, listing and
      qualification fees, printers and accounting fees, the fees and disbursements
      of
      counsel for the Company, and the reasonable fees and disbursements of one
      counsel selected by the Initial Investors pursuant to Sections 2(b) and 3(h)
      hereof shall be borne by the Company.

     

    6.  INDEMNIFICATION.
      

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

     

    a.  To
      the
      extent permitted by law, the Company will indemnify, hold harmless and defend
      (i) each
      Investor who holds such Registrable Securities, (ii) the
      directors, officers, partners, employees, agents and each person who controls
      any Investor within the meaning of the 1933 Act or the Securities Exchange
      Act
      of 1934, as amended (the “1934
      Act”),
      if
      any, (iii) any
      underwriter (as defined in the 1933 Act) for the Investors, and (iv) the
      directors, officers, partners, employees and each person who controls any such
      underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each,
      an
“Indemnified
      Person”),
      against any joint or several losses, claims, damages, liabilities or expenses
      (collectively, together with actions, proceedings or inquiries by any regulatory
      or self-regulatory organization, whether commenced or threatened, in respect
      thereof, “Claims”)
      to
      which any of them may become subject insofar as such Claims arise out of or
      are
      based upon: (i) any untrue statement or alleged untrue statement of a material
      fact in a Registration Statement or the omission or alleged omission to state
      therein a material fact required to be stated or necessary to make the
      statements therein not misleading; (ii) any untrue statement or alleged untrue
      statement of a material fact contained in any preliminary prospectus if used
      prior to the effective date of such Registration Statement, or contained in
      the
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (iii) any violation or alleged violation by the Company
      of the 1933 Act, the 1934 Act, any other law, including, without limitation,
      any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities (the matters in the foregoing clauses
      (i)
      through (iii) being, collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(c) with respect to the number
      of legal counsel, the Company shall reimburse the Indemnified Person, promptly
      as such expenses are incurred and are due and payable, for any reasonable legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim arising out of or based upon a
      Violation which occurs in reliance upon and in conformity with information
      furnished in writing to the Company by any Indemnified Person or underwriter
      for
      such Indemnified Person expressly for use in connection with the preparation
      of
      such Registration Statement or any such amendment thereof or supplement thereto,
      if such prospectus was timely made available by the Company pursuant to Section
      3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim
      if
      such settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld; and (iii) with respect to
      any
      preliminary prospectus, shall not inure to the benefit of any Indemnified Person
      if the untrue statement or omission of material fact contained in the
      preliminary prospectus was corrected on a timely basis in the prospectus, as
      then amended or supplemented, such corrected prospectus was timely made
      available by the Company pursuant to Section 3(c) hereof, and the Indemnified
      Person was promptly advised in writing not to use the incorrect prospectus
      prior
      to the use giving rise to a Violation and such Indemnified Person,
      notwithstanding such advice, used it. Such indemnity shall remain in full force
      and effect regardless of any investigation made by or on behalf of the
      Indemnified Person and shall survive the transfer of the Registrable Securities
      by the Investors pursuant to Section 9.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

     

    b.  In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees severally and not jointly to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      shareholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such shareholder or
      underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
      and
      together with an Indemnified Person, an “Indemnified
      Party”),
      against any Claim to which any of them may become subject, under the 1933 Act,
      the 1934 Act or otherwise, insofar as such Claim arises out of or is based
      upon
      any Violation by such Investor, in each case to the extent (and only to the
      extent) that such Violation occurs in reliance upon and in conformity with
      written information furnished to the Company by such Investor expressly for
      use
      in connection with such Registration Statement; and subject to Section 6(c)
      such
      Investor will reimburse any legal or other expenses (promptly as such expenses
      are incurred and are due and payable) reasonably incurred by them in connection
      with investigating or defending any such Claim; provided,
      however,
      that
      the indemnity agreement contained in this Section 6(b) shall not apply to
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of such Investor, which consent shall not be
      unreasonably withheld; provided,
      further,
      however,
      that
      the Investor shall be liable under this Agreement (including this Section 6(b)
      and Section 7) for only that amount as does not exceed the net proceeds to
      such
      Investor as a result of the sale of Registrable Securities pursuant to such
      Registration Statement. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the transfer of the Registrable Securities by the Investors
      pursuant to Section 9. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(b) with
      respect to any preliminary prospectus shall not inure to the benefit of any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    

     

    c.  Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 6,
      deliver to the indemnifying party a written notice of the commencement thereof,
      and the indemnifying party shall have the right to participate in, and, to
      the
      extent the indemnifying party so desires, jointly with any other indemnifying
      party similarly noticed, to assume control of the defense thereof with counsel
      mutually satisfactory to the indemnifying party and the Indemnified Person
      or
      the Indemnified Party, as the case may be; provided,
      however,
      that an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. The indemnifying
      party shall pay for only one separate legal counsel for the Indemnified Persons
      or the Indemnified Parties, as applicable, and such legal counsel shall be
      selected by Investors holding a majority-in-interest of the Registrable
      Securities included in the Registration Statement to which the Claim relates
      (with the approval of a majority-in-interest of the Initial Investors), if
      the
      Investors are entitled to indemnification hereunder, or the Company, if the
      Company is entitled to indemnification hereunder, as applicable. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is actually prejudiced in
      its
      ability to defend such action. The indemnification required by this Section
      6
      shall be made by periodic payments of the amount thereof during the course
      of
      the investigation or defense, as such expense, loss, damage or liability is
      incurred and is due and payable.

     

    7.  CONTRIBUTION.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided,
      however,
      that
(i) no
      contribution shall be made under circumstances where the maker would not have
      been liable for indemnification under the fault standards set forth in Section
      6, (ii) no
      seller of Registrable Securities guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from any seller of Registrable Securities who was not guilty of such fraudulent
      misrepresentation, and (iii)contribution
      (together with any indemnification or other obligations under this Agreement)
      by
      any seller of Registrable Securities shall be limited in amount to the net
      amount of proceeds received by such seller from the sale of such Registrable
      Securities.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

     

    8.  REPORTS
      UNDER THE 1934 ACT.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the investors to sell securities of the Company to the public
      without registration (“Rule
      144”),
      the
      Company agrees to:

     

    a.  make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    b.  file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements (it being understood that nothing herein shall
      limit the Company’s obligations under Section 4(c) of the Securities Purchase
      Agreement) and the filing of such reports and other documents is required for
      the applicable provisions of Rule 144; and

     

    c.  furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a
      written statement by the Company that it has complied with the reporting
      requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
      copy of the most recent annual or quarterly report of the Company and such
      other
      reports and documents so filed by the Company, and (iii) such
      other information as may be reasonably requested to permit the Investors to
      sell
      such securities pursuant to Rule 144 without registration.

     

    9.  ASSIGNMENT
      OF REGISTRATION RIGHTS.

     

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of Registrable Securities if:
      (i) the Investor agrees in writing with the transferee or assignee to
      assign such rights, and a copy of such agreement is furnished to the Company
      within a reasonable time after such assignment, (ii) the Company is, within
      a reasonable time after such transfer or assignment, furnished with written
      notice of (a) the
      name and address of such transferee or assignee, and (b) the
      securities with respect to which such registration rights are being transferred
      or assigned, (iii) following such transfer or assignment, the further
      disposition of such securities by the transferee or assignee is restricted
      under
      the 1933 Act and applicable state securities laws, (iv) at or before the time
      the Company receives the written notice contemplated by clause (ii) of this
      sentence, the transferee or assignee agrees in writing with the Company to
      be
      bound by all of the provisions contained herein, (v) such transfer shall have
      been made in accordance with the applicable requirements of the Securities
      Purchase Agreement, and (vi) such transferee shall be an “accredited
      investor”
as
      that
      term defined in Rule 501 of Regulation D promulgated under the 1933
      Act.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    

     

    10.  AMENDMENT
      OF REGISTRATION RIGHTS. 

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with written consent of the Company, each of the Initial
      Investors (to the extent such Initial Investor still owns Registrable
      Securities) and Investors who hold a majority interest of the Registrable
      Securities. Any amendment or waiver effected in accordance with this Section
      10
      shall be binding upon each Investor and the Company.

     

    11.  MISCELLANEOUS.

     

    a.  A
      person
      or entity is deemed to be a holder of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two or more persons
      or entities with respect to the same Registrable Securities, the Company shall
      act upon the basis of instructions, notice or election received from the
      registered owner of such Registrable Securities.

     

    b.  Any
      notices required or permitted to be given under the terms hereof shall be sent
      by certified or registered mail (return receipt requested) or delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile and shall be effective five days after being placed in the mail,
      if
      mailed by regular United States mail, or upon receipt, if delivered personally
      or by courier (including a recognized overnight delivery service) or by
      facsimile, in each case addressed to a party. The addresses for such
      communications shall be:

     

                   If
      to the
      Company:

                   Pacificap
      Entertainment
      Holdings, Inc.

               12868
      Via Latina 

                Del
      Mar, California 92014

                   Attention:
      President

                   Telephone:
      858-481-2207

                    Facsimile:
      858-481-2207

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    With
      a
      copy to: 

     

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York,
      New York 10018

    Attention:
      Gregory Sichenzia, Esq.

    Telephone:
      212-930-9700

    Facsimile:
      212-930-9725

    

     

    If
      to an
      Investor: to the address set forth immediately below such Investor’s name on the
      signature pages to the Securities Purchase Agreement. 

     

    With
      a
      copy to:

     

    Ballard
      Spahr Andrews & Ingersoll, LLP

                    1735
      Market
      Street

    51st
      Floor

    Philadelphia,
      Pennsylvania 19103

                    Attention:
      Gerald J.
      Guarcini, Esq.

               
      Telephone: 215-865-8625

               
      Facsimile: 215-864-8999

                    Email:
      guarcini@ballardspahr.com

     

    c.  Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    d.  
      THIS
      AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT TO ANY
      DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION
      HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
      IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
      UPON
      A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
      SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
      SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
      BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
      SUIT
      OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
      BY
      SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT
      PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR
      ALL
      FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
      IN CONNECTION WITH SUCH DISPUTE.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    

     

    e.  In
      the
      event that any provision of this Agreement is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any provision hereof
      which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision hereof.

     

    f.  This
      Agreement, the Notes, the Warrants and the Securities Purchase Agreement
      (including all schedules and exhibits thereto) constitute the entire agreement
      among the parties hereto with respect to the subject matter hereof and thereof.
      There are no restrictions, promises, warranties or undertakings, other than
      those set forth or referred to herein and therein. This Agreement and the
      Securities Purchase Agreement supersede all prior agreements and understandings
      among the parties hereto with respect to the subject matter hereof and
      thereof.

     

    g.  Subject
      to the requirements of Section 9 hereof, this Agreement shall be binding upon
      and inure to the benefit of the parties and their successors and
      assigns.

     

    h.  The
      headings in this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

     

    i.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party. This Agreement, once executed by a party, may
      be
      delivered to the other party hereto by facsimile transmission of a copy of
      this
      Agreement bearing the signature of the party so delivering this
      Agreement.

     

    j.  Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    k.  Except
      as
      otherwise provided herein, all consents and other determinations to be made
      by
      the Investors pursuant to this Agreement shall be made by Investors holding
      a
      majority of the Registrable Securities, determined as if the all of the Notes
      then outstanding have been converted into for Registrable
      Securities.

     

    l.  The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to each Investor by vitiating the intent and purpose of the
      transactions contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for breach of its obligations under this Agreement will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of any of the provisions under this Agreement, that each Investor shall
      be entitled, in addition to all other available remedies in law or in equity,
      and in addition to the penalties assessable herein, to an injunction or
      injunctions restraining, preventing or curing any breach of this Agreement
      and
      to enforce specifically the terms and provisions hereof, without the necessity
      of showing economic loss and without any bond or other security being
      required.

     

    m.  The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company and the undersigned Initial Investors have caused this Agreement to
      be
      duly executed as of the date first above written.

     

    PACIFICAP
      ENTERTAINMENT 

     

    HOLDINGS,
      INC.

     

    /s/
      EDWARD LITWAK

     

    Ed
      Litwak

     

    President

     

    AJW
      PARTNERS, LLC

     

    By:
      SMS
      Group, LLC

     

    /s/
      COREY S. RIBOTKSY

     

    Corey
      S.
      Ribotsky

     

    Manager
      

     

    AJW
      OFFSHORE, LTD.

    By:
      First
      Street Manager II, LLC

    

    /s/
      COREY S. RIBOTKSY

    Corey
      S.
      Ribotsky

    Manager

    

    

    AJW
      QUALIFIED PARTNERS, LLC

    By:
      AJW
      Manager, LLC

    

    

    /s/
      COREY S. RIBOTKSY

    Corey
      S.
      Ribotsky

    Manager

    

    

    NEW
      MILLENNIUM CAPITAL PARTNERS, II, LLC

    By:
      First
      Street Manager II, LLC

    

    /s/
      COREY S. RIBOTKSY

    Corey
      S.
      Ribotsky

    ManagerExhibit 10.5

    

      Exhibit
        10.5

      

      

      

      

      ASSET
        PURCHASE AGREEMENT

      

      by
        and
        between

      

      COLLECTIBLE
        CONCEPTS, INC.

      

      

      as
        the
        Buyer

      

      and

      

      PACIFICAP
        ENTERTAINMENT HOLDINGS, INC.

      

      as
        the
        Seller

      

      

      Dated
        on
        December 21, 2005

      (effective
        date, January 20, 2006)

      

      ==================================================================================================================================================================

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                TABLE
                  OF CONTENTS

              	 
	 	 
	
                ARTICLE
                  I     PURCHASE AND
                  SALE OF ASSETS AND ASSUMPTION OF LIABILITIES 

              	
                Page

              
	
                Section
                  1.1

              	
                Purchase
                  and Sale of Assets

              	
                1

              
	
                Section
                  1.2

              	
                Purchase
                  Price

              	
                1

              
	
                Section
                  1.3

              	
                Closing:
                  Closing Date

              	
                2

              
	
                Section
                  1.4

              	
                Post
                  Closing Access

              	
                3

              
	
                Section
                  1.5

              	
                Further
                  Assurances

              	
                3

              
	
                Section
                  1.6

              	
                Allocation
                  of Purchase Price

              	
                3

              
	
                ARTICLE
                  II     REPRESENTATONS
                  AND WARRANTIES OF SELLER

              	
                4

              
	
                Section
                  2.1

              	
                Organization
                  and Qualifications of Seller

              	
                4

              
	
                Section
                  2.2

              	
                Organizational
                  Documents

              	
                4

              
	
                Section
                  2.3

              	
                Authority:
                  Binding Obligation

              	
                4

              
	
                Section
                  2.4

              	
                No
                  Conflict: Required Consents

              	
                5

              
	
                Section
                  2.5

              	
                Absence
                  of Undisclosed Liability

              	
                5

              
	
                Section
                  2.6

              	
                Personal
                  Property

              	
                5

              
	
                Section
                  2.7

              	
                Intellectual
                  Property

              	
                5

              
	
                Section
                  2.8

              	
                No
                  Material Adverse Change

              	
                7

              
	
                ARTICLE
                  III     REPRESENTATION
                  AND WARRANTIES OF BUYER

              	
                7

              
	
                Section
                  3.1

              	
                Organization
                  of CCGI

              	
                7

              
	
                Section
                  3.2

              	
                Authority:
                  Binding Obligation

              	
                7

              
	
                Section
                  3.3

              	
                No
                  Conflict: Required Consents

              	
                7

              
	
                Section
                  3.4

              	
                Broker
                  Fees

              	
                8

              
	
                ARTICLE
                  IV     COVENANTS

              	
                8

              
	
                Section
                  4.1

              	
                Events
                  of Default

              	
                8

              
	
                Section
                  4.2

              	
                Notice
                  of Default

              	
                10

              
	
                Section
                  4.3

              	
                Consummation
                  of Agreement

              	
                10

              
	
                Section
                  4.4 

              	
                Notice
                  to Third Parties

              	
                10

              
	
                Section
                  4.5

              	
                Confidentiality

              	
                10

              
	
                Section
                  4.6

              	
                Supplements
                  to Schedules

              	
                11

              
	
                Section
                  4.7

              	
                Compliance

              	
                11

              
	
                Section
                  4.8

              	
                Severability
                  of Covenants

              	
                11

              
	
                ARTICLE
                  V     CONDITIONS
                  OF
                  CLOSING

              	
                12

              
	
                Section
                  5.1

              	
                Condition
                  to the Obligations of the Buyer

              	
                12

              
	
                Section
                  5.2

              	
                Conditions
                  to the Obligations of Seller

              	
                12

              
	
                Section
                  5.3

              	
                Further
                  Conditions to the Obligations of the Buyer and Seller

              	
                13

              
	
                Section
                  5.4

              	
                Condition
                  Subsequent, and Effectiveness of Agreement

              	
                13

              
	
                ARTICLE
                  VI     RIGHTS AND
                  OBLIGATIONS SUBSEQUENT TO CLOSING

              	
                13

              
	
                Section
                  6.1

              	
                Survival
                  of Warranties

              	
                13

              
	
                ARTICLE
                  VII   
                  TERMINATION

              	
                13

              
	
                Section
                  7.1

              	
                Right
                  to Terminate

              	
                13

              
	
                Section
                  7.2

              	
                Obligations
                  to Cease

              	
                14

              
	
                ARTICLE
                  VIII   
                  INDEMNIFICATION

              	
                14

              
	
                Section
                  8.1

              	
                Indemnification
                  of Seller

              	
                14

              
	
                Section
                  8.2

              	
                Indemnification
                  of CCGI

              	
                15

              
	
                Section
                  8.3

              	
                Procedures

              	
                15

              
	
                Section
                  8.4

              	
                Settlement
                  of Claims

              	
                15

              
	
                ARTICLE
                  IX     MISCELLAENOUS

              	
                16

              
	
                Section
                  9.1

              	
                Fees
                  and Expenses

              	
                16

              
	
                Section
                  9.2

              	
                Notices

              	
                16

              
	
                Section
                  9.3

              	
                Governing
                  Law

              	
                17

              
	
                Section
                  9.4

              	
                Entire
                  Agreement

              	
                17

              
	
                Section
                  9.5

              	
                Assignability:
                  Binding Effect

              	
                17

              
	
                Section
                  9.6

              	
                Execution
                  in Counterparts

              	
                18

              
	
                Section
                  9.7

              	
                Amendments

              	
                18

              
	
                Section
                  9.8

              	
                Publicity

              	
                18

              
	
                Section
                  9.9

              	
                Agreement
                  to Continue in Full Force

              	
                18

              
	
                Section
                  9.10

              	
                Severability

              	
                18

              
	 

      

      

        ASSET
          PURCHASE AGREEMENT

        

        ASSET
          PURCHASE AGREEMENT dated as of December 21, 2005 (this "Agreement")
          by and
          among COLLECTIBLE CONCEPTS GROUP, INC. , Delaware corporation (“CCGI”
or
          the
          "Buyer")
          and
          PACIFICAP ENTERTAINMENT HOLDINGS, INC., a Delaware corporation ("Seller")
          (CCGI,
          Buyer and the Seller are each hereinafter individually referred to as a
          "Party"
          and
          collectively as the "Parties").

        

        W
          I T N E
          S S E T H:

        

        WHEREAS,
          the Seller is engaged, inter alia, in the business of financing films,
          and also
          owns certain intellectual property consisting of nostalgic sports footage
          and a
          vintage cartoon library as defined in Schedule 1.1(a) (hereinafter, the
“Film
          Library”) for the purposes of licensing, selling or broadcasting such
          intellectual property (the "Film
          Library Business");

        

        WHEREAS,
          Seller desires to sell, and the Buyer desires to purchase and acquire all
          of the
          Assets (as hereinafter defined) including, without limitation, all intellectual
          property, receivables, and contractual rights and the other assets designated
          in
          this agreement and utilized in the Seller’s Film Library Business; 

        

        WHEREAS,
          in connection with the acquisition of the Assets, Seller desires to assign
          and
          the Buyer has agreed to assume certain liabilities and obligations of the
          Seller
          as more fully described herein; and

        

        WHEREAS,
          to induce the Buyer to proceed with the transactions described in this
          Agreement, Seller is prepared to make certain representations, warranties
          and
          covenants to Buyer, and to provide certain rights of indemnification to
          Buyer.

        

        NOW,
          THEREFORE, in consideration of the premises and the mutual agreements set
          forth
          herein, and for other good and valuable consideration the receipt and adequacy
          of which is hereby acknowledged, and intending to be legally bound hereby,
          the
          Parties hereto agree as follows:

        

        ARTICLE
          I 

        PURCHASE
          AND SALE OF ASSETS 

        Section
          1.1 Purchase
          and Sale of Assets
          . Upon
          the
          terms and subject to the conditions hereinafter set forth and the performance
          by
          the Parties hereto of their respective obligations hereunder, the Seller
          shall
          sell, transfer, convey, assign and deliver free from all liens, charges
          and
          encumbrances to Buyer, and Buyer shall purchase, acquire and accept from
          Seller,
          on the Closing Date (as defined herein), the right, title and interest
          in all of
          the properties and assets of Seller including without limitation, the following
          (the "Assets"):

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        

        (a) all
          films
          of sporting events and cartoons as defined on Schedule 1.1(a) and all records
          with respect to the film library’s development, content development, product
          development, costs, and all procedures, research and development files,
          data and
          other records; and

        

        (b) the
          unused brochures, literature, advertising, catalogues, photographs, display
          materials, media materials, packaging materials and other similar items
          which
          have been produced by or for the Seller;

        

        (c) all
          Intellectual Property (as defined herein) rights of Seller (whether owned,
          licensed or otherwise), including without limitation (i) rights in the
          names
          "Cavalcade of Sports Media, Inc. and any other name utilizing the names
          set
          forth on Schedule 1.1(a), (ii) the rights in the tradenames, information
          and
          materials contained in Seller's Websites, and (iii) all claims against
          third
          parties for infringement of such Intellectual Property rights;

        

        (d)
          the
          Parties acknowledge that the Seller has previously granted an exclusive
          worldwide license to Henry Film and Entertainment Corp. to use, modify,
          reproduce, distribute, display and transmit the contents of the film library
          as
          listed on Schedule 1.1(a), the Agreement being attached hereto as Schedule
          1.1(d), which agreement shall transfer to Buyer with all rights granted
          therein.

        

         

        Section
          1.2 Purchase
          Price.
          

        

        (a) (i) The
          aggregate purchase price (the "Purchase
          Price")
          for
          the Assets being sold hereunder shall be $250,000 under the following
          terms:

        

        (ii) Seller
          will be repaid, with interest, within three years of the date hereof on
          December
          21, 2010, the “Maturity Date”), at the principal offices of the Seller, the
          principal sum of
          Two Hundred Fifty Thousand Dollars ($250,000) in
          such
          coin or currency of the United States of America as at the time of payment
          shall
          be legal tender for the payment of public and private debts, and to pay
          interest
          on the outstanding principal sum hereof at the rate of six percent (6%)
          per
          annum. An initial payment of $50,000 is due within ninety (90) days of
          this
          Agreement. Any principal payment or interest payment on the unpaid principal
          amount of this Note not paid when due, whether at the Maturity Date, on
          the
          effective date of an Early Termination Event, by acceleration or otherwise,
          shall bear interest at twelve percent (12%) or the maximum rate permissible
          by
          law, whichever is less. Payment of Principal and accrued interest, if any,
          shall
          be payable on the Maturity Date in like coin or currency to the Seller
          hereof at
          the address of the Seller designated above or at such other place as the
          Seller
          shall have notified the Company in writing at least five (5) days before
          the
          Maturity Date, provided that any payment otherwise due on a Saturday, Sunday
          or
          legal Bank holiday may be paid on the following business day. 

         

        
          
             

          

          
            -2-

            
              

            

          

          
             

          

        

        

        (b) On
          the
          Closing Date, Seller shall pay all municipal, county, state and federal
          sales
          and transfer taxes, if any, incurred by the Buyer or Seller in connection
          with
          the transaction contemplated by this Agreement. Each Party shall in a timely
          manner sign and swear to any return, certificate, questionnaire or affidavit
          as
          to matters within its knowledge required in connection with the payment
          of any
          such tax.

        

        Section
          1.3 Closing;
          Closing Date.
          Subject
          to the fulfillment or waiver of the conditions precedent set forth in Article
          V
          of this Agreement, the closing of the purchase and sale provided for in
          this
          Agreement (herein called the "Closing")
          shall
          be held at the offices of Sichenzia Ross Friedman Ference, 1065 Avenue
          of the
          Americas, New York, New York 10018 on Wednesday, December 21, 2005 or such
          other
          location, date and time as to which the parties may agree (such date and
          time
          being referred to herein as the "Closing
          Date").

        

        Section
          1.4 Post-Closing
          Access.
          

        

        (a) After
          the
          Closing, the Buyer shall provide to the Seller and its accountants and
          attorneys, for any reasonable legal or business purpose, including defending
          third party claims and preparing such tax returns of Seller as may be reasonably
          required after the Closing, copies of relevant portions of the books and
          records
          of Seller delivered to the Buyer under this Agreement.

        

        (b) After
          the
          Closing, the Seller shall provide to the Buyer and its accountants and
          attorneys, for any reasonable legal or business purpose, including defending
          third party claims and preparing such tax returns of Buyer as may be reasonably
          required after the Closing, copies of relevant portions of the books and
          records
          of Buyer delivered to the Seller under this Agreement.

        

        Section
          1.5 Further
          Assurances.
          

        

        (a) Seller
          shall, from time to time on being reasonably required to do so by the Buyer,
          now
          or at any time in the future, do or procure the doing of all such acts
          and/or
          execute or procure the execution of all such documents in a form reasonably
          satisfactory to the Buyer as the Buyer may reasonably consider necessary
          for
          giving full effect to this Agreement and securing to the Buyer the full
          benefit
          of the rights, powers and remedies conferred upon the Buyer in this
          Agreement.

        

        (b) Seller
          shall promptly transfer or deliver to the Buyer any of the Assets delivered
          to,
          or retained or received by, Seller after the Closing Date.

        
          
             

          

          
            -3-

            
              

            

          

          
             

          

        

        

        

        Section
          1.6 Allocation
          of Purchase Price.
           The
          Purchase Price shall be allocated among the Assets being sold hereunder
          in the
          manner required by Treasury Regulation §1.1060-1T as determined by Buyer (the
          "Allocation").
          Buyer
          shall deliver its determination with respect to the Allocation within ninety
          (90) days of the Closing Date. Seller agrees that: except as otherwise
          required
          by law (i) the Allocation shall be binding on Seller for all federal, state,
          local and foreign tax purposes, and (ii) Seller shall file with its respective
          federal income tax returns consistent IRS Forms 8594 - Asset Acquisition
          Statements under Section 1060, including any required amendments thereto
          which
          shall reflect the allocation set forth in the Allocation pursuant to this
          Section 1.6. The Parties acknowledge that the allocation of the Purchase
          Price
          provided for in the Allocation will be reasonable and based upon the fair
          market
          value of each component of the Assets.

        

        ARTICLE
          II

        REPRESENTATIONS
          AND WARRANTIES OF SELLER

        

        Seller
          hereby represents and warrants to the Buyer and CCGI as follows:

        

        Section
          2.1 Organization
          and Qualifications of Seller.
          Seller
          is a corporation duly organized, validly existing and in good standing
          under the
          laws of the State of Delaware with full corporate power and authority to
          own,
          operate or lease its Assets and to carry on its business as currently conducted.
          Seller is duly qualified to conduct business as a foreign corporation and
          is in
          good standing in the states, countries and territories listed in Section
          2.1 and
          in each jurisdiction where the nature of its business or the ownership,
          operation or leasing of its Assets makes such qualification necessary.
          Seller
          has no subsidiaries, other than inactive subsidiaries which have not conducted
          any business.

        

        Section
          2.2 Organizational
          Documents.
           Seller
          has furnished to the Buyer a true and complete copy of its Restated Certificate
          of Incorporation and By-Laws, as in effect on the date hereof.

        

        Section
          2.3 Authority;
          Binding Obligation.
          Seller
          has the requisite authority and power to enter into, execute and deliver
          this
          Agreement and each agreement, document and instrument to be executed and
          delivered by Seller pursuant to this Agreement and to perform its obligations
          hereunder. The execution, delivery and performance by Seller of this Agreement
          and each such other agreement, document and instrument have been duly authorized
          by all necessary action of Seller, and no other action on the part of Seller,
          is
          required in connection therewith. This Agreement has been duly executed
          and
          delivered by Seller and constitutes a valid and binding obligation of Seller
          enforceable in accordance with the terms hereof and each agreement, document
          and
          instrument executed and delivered by Seller pursuant to this Agreement
          constitutes, or when executed and delivered will constitute, valid and
          binding
          obligations of Seller enforceable in accordance with their
          terms.

        
          
             

          

          
            -4-

            
              

            

          

          
             

          

        

        

        

        Section
          2.4 No
          Conflict; Required Consents.
           The
          execution, delivery and performance by Seller of this Agreement and each
          agreement, document and instrument contemplated hereby, the fulfillment
          of and
          compliance with the terms and provisions hereof and thereof and the consummation
          by the Seller of the transactions contemplated hereby and thereby, do not
          and
          will not: (i) conflict with, or violate any provision of, the Restated
          Certificate of Incorporation or By-Laws of Seller; (ii) conflict with,
          result in
          any breach of, or constitute a default (or an event that with notice or
          lapse of
          time or both would become a default) or result in the termination or
          acceleration under any agreement to which Seller is a party or by which
          Seller,
          or any of the Assets, may be bound; (iii) result in or require the creation
          or
          imposition of, or result in the acceleration of, any indebtedness or any
          lien of
          any nature upon, or with respect to any of the Assets; (iv) require any
          consent,
          approval, authorization or permit of, or filing with or notification to,
          any
          person not party to this Agreement.

        

        Section
          2.5 Absence
          of Undisclosed Liability.
          To the
          best of the Seller’s knowledge, the Seller has no liabilities or obligations of
          any nature (absolute, accrued, contingent or otherwise) relating to the
          Business.

        

        Section
          2.6 Personal
          Property.
          

        

        (a) Seller
          has good and marketable title to all of the tangible personal property
          utilized
          in the Business. None of such personal property is subject to any mortgage,
          pledge, lien, conditional sale agreement, security agreement, encumbrance,
          fixed
          charge or floating charge, or other charge.

        

        (b) The
          Assets will be sufficient to allow the Buyer to conduct the Business subsequent
          to the Closing and, at the Closing, title to the Assets will pass to the
          Buyer
          free and clear of all mortgages, pledges, liens, encumbrances and charges
          of any
          kind.

        

        Section
          2.7 Intellectual
          Property.
          

        

        (a) Schedule
          2.7 sets forth a true, correct and complete list of all patents, trade
          names,
          trademark, data compilations, masks and models, domain names, service mark
          and
          copyright registrations, all applications for any of the foregoing, all
          common
          law trademarks, service marks, copyrights and trade names, slogans and
          all
          permits, grants, franchises and licenses or other rights relating to any
          of the
          foregoing (including any registrations or pending applications for registration
          of any of the foregoing) that are attributable to the conduct of, used
          in or
          relating to the Business (the "Intellectual
          Property"),
          copies of any documentation in respect of which have been delivered or
          made
          available to the Buyer. Seller has exclusive ownership or has a license
          to use
          all of the Intellectual Property used in Business as presently conducted.
          Except
          as set forth on Schedule 2.7, Seller's rights in all of such Intellectual
          Property are valid and freely transferable. There are no claims or demands
          of
          any other person pertaining to any of such Intellectual Property and no
          proceedings have been instituted, or are pending or threatened, which challenge
          the rights of Seller in respect thereof which would impair the use of the
          Intangible Property by the Buyer; and, except as set forth on Schedule
          2.7,
          Seller has the right to use, free and clear of claims or rights of other
          persons, the Intellectual Property for or incident to the Business as presently
          conducted. Seller has not acted in any way such that its acts would invalidate,
          eliminate, or otherwise render unenforceable any of the Intellectual Property.
          None of the Intellectual Property has been, or will be, charged, mortgaged
          or
          otherwise encumbered by Seller.

        
          
             

          

          
            -5-

            
              

            

          

          
             

          

        

        

        

        (b) All
          trademarks and common law copyrights which are owned by or licensed to
          Seller or
          used by Seller in the Business as presently conducted are listed in Schedule
          2.7. All of Seller's trademark registrations have been duly registered
          in, filed
          in or issued by the appropriate offices in the countries identified on
          said
          Schedule.

        

        (c) In
          relation to registered rights, all registrations forming part of the
          Intellectual Property have been maintained and all renewal fees have been
          paid
          on time. Seller has received no adverse opinion (whether from the registry
          concerned or its advisor) or notice of opposition in relation to any such
          application.

        

        (d) Seller
          has no licenses, authorizations (whether express or implied) or other agreements
          under which Seller has granted rights to others in Intellectual
          Property.

        

        (e) Seller
          has required all of its key employees to execute agreements under which
          such
          employees are required to maintain the confidentiality of any information
          concerning the Business, transactions, secrets or affairs of Seller or
          of any of
          its customers or suppliers during or after termination of their employment
          and
          are required to assign to the Seller all inventions (including new
          contributions, improvements, designs, developments, ideas, discoveries,
          copyrightable material or trade secrets) which have been developed or conceived
          while employed by the Seller.

        

        (f) Seller
          has no knowledge of any infringement by others of any of its Intellectual
          Property rights.

        

        (g) Except
          as
          set forth on Schedule 2.7, Seller's activities and products do not infringe
          any
          intellectual property rights of any other person or entity. No proceeding
          charging Seller with infringement of any adversely held intellectual property
          rights has been filed or, to Seller’s knowledge, is threatened to be filed and
          Seller has not received notice of any breach and is not aware of any dispute
          or
          claim in relation to the Intellectual Property or any other intellectual
          property. To the best of Seller's knowledge, there exists no unexpired
          patent or
          patent application which includes claims that would be infringed by or
          otherwise
          adversely affect the Business. To the best of Seller's knowledge, the regular
          conduct of the Business will not infringe, or impair the intellectual property
          rights of any other person or entity. Seller is not making unauthorized
          use of
          any confidential information or trade secrets of any person, including,
          without
          limitation, any former employer of any past or present employee of Seller.
          Except as set forth in Schedule 2.7, neither Seller nor, to the best of
          Seller's
          knowledge, any of its employees have any agreements or arrangements with
          any
          persons other than Seller related to confidential information or trade
          secrets
          of such persons or restricting any such employee's ability to engage in
          business
          activities of any nature. The activities of its employees on behalf of
          Seller do
          not violate any such agreements or arrangements known to Seller which any
          such
          employees have with other persons.

        

        (i) Seller
          has no knowledge of any judgments, orders, liens, injunctions, or encumbrances
          that could interfere with the use of the Intellectual Property. Seller
          has no
          knowledge of any circumstances that could be grounds for a third party
          to bring
          an action for an injunction, order, lien, judgment, or encumbrance that
          could
          interfere with the use of the Intellectual Property.

        
          
             

          

          
            -6-

            
              

            

          

          
             

          

        

        

        

        Section
          2.8 No
          Material Adverse Change.
          Since
          December 31, 2000, except as reflected in the Balance Sheet or as set forth
          in
          Schedule 2.12, there has been no material adverse change in the Business
          (financial or otherwise) or in the Assets or Assumed Liabilities, nor has
          there
          been any damage, destruction or loss, whether or not covered by insurance,
          which
          would have a material adverse affect on: (i) the Business (financial or
          otherwise), (ii) the Assets, (iii) the ability of the Seller to consummate
          the
          transactions contemplated hereunder, or (iv) the ability of the Buyer to
          conduct
          and operate the Business after the Closing Date in the manner conducted
          and
          operated prior to the Closing Date.

        

         

         

        ARTICLE
          III

         REPRESENTATIONS
          AND WARRANTIES OF BUYER

        

        Seller
          and Buyer hereby jointly and severally make the following representations
          and
          warranties to Seller:

        

        Section
          3.1 Organization
          of CCGI.
           CCGI
          is
          duly organized, validly existing and in good standing under the laws of
          the
          State of Delaware.

        

        Section
          3.2 Authority;
          Binding Obligation.
           CCGI
          has
          the requisite authority and power to enter into, execute and deliver this
          Agreement and each agreement, document and instrument to be executed and
          delivered by CCGI pursuant to this Agreement and to perform its obligations
          hereunder. The execution, delivery and performance by CCGI of this Agreement
          and
          each such other agreement, document and instrument have been duly authorized
          by
          all necessary action of CCGI and no other action on the part of CCGI is
          required
          in connection therewith. This Agreement has been duly executed and delivered
          by
          CCGI and/or the Buyer and each agreement, document and instrument executed
          and
          delivered by CCGI and/or the Buyer pursuant to this Agreement constitutes,
          or
          when executed and delivered will constitute, valid and binding obligations
          of
          CCGI and/or the Buyer, as the case may be, enforceable in accordance with
          their
          terms.

        

        Section
          3.3 No
          Conflict; Required Consents.
           The
          execution, delivery and performance by CCGI of this Agreement and each
          agreement, document and instrument contemplated hereby, the fulfillment
          of and
          compliance with the terms and provisions hereof and thereof and the consummation
          by CCGI of the transactions contemplated hereby and thereby, do not and
          will
          not: (i) conflict with, or violate any provision of, the Certificate of
          Incorporation, By-Laws or Partnership Agreement of CCGI, as the case may
          be;
          (ii) conflict with, result in any breach of, or constitute a default (or
          an
          event that with notice or lapse of time or both would become a default)
          or
          result in the termination or acceleration under any material agreement
          to which
          CCGI is a party or by which CCGI may be bound; (iii) require any consent,
          approval, authorization or permit of, or filing with or notification to,
          any
          person not party to this Agreement.

        
          
             

          

          
            -7-

            
              

            

          

          
             

          

        

        

        Section
          3.4 Broker
          Fees.
          Neither
          CCGI nor any of their officers, directors, employees or shareholders has
          employed any broker or finder or incurred any liability for any brokerage
          fees,
          commission or finders' fee relating to or in connection with the transactions
          contemplated by this Agreement or any other agreement contemplated
          hereby.

        

        ARTICLE
          IV

         COVENANTS

        

        Section
          4.1 Events
          of Default and Remedies

         

        (a)
          Any
          one or
          more
          of the following events which shall have occurred and be continuing shall
          constitute an event of default (Event of Default): 

         

        (i)
          Default in the payment of the principal or accrued interest on this Note
          or upon
          any other indebtedness of the Company after the date hereof that is greater
          than
          $100,000, as and when the same shall become due, whether by default or
          otherwise, which Default shall have continued for a period of five (5)
          business
          days; or 

         

        (ii)
          Any
          knowing representation or warranty made by the Company or any officer of
          the
          Company in the Note, or in any agreement, report, certificate or other
          document
          delivered to the Seller pursuant to the Notes shall have been incorrect
          in any
          material respect when made which shall not have been remedied ten (10)
          days
          after written notice thereof shall have been given by the Seller; or

         

        (iii)
          The
          Company shall fail to perform or observe any material affirmative covenant
          contained in Section 4 of this Note or any of the Notes and such Default,
          if
          capable of being remedied, shall not have been remedied thirty (30) days
          after
          written notice thereof shall have been given by the Seller; or 

         

        (iv)
          The
          Company or any subsidiary (A) shall institute any proceeding or voluntary
          case
          seeking to adjudicate it bankrupt or insolvent, or seeking dissolution,
          liquidation, winding up, reorganization, arrangement, adjustment, protection,
          relief or composition of it or its material debts under any law relating
          to
          bankruptcy, insolvency or reorganization or relief of debtors, or seeking
          the
          entry of any order for relief or the appointment of a receiver, trustee,
          custodian or other similar official for such the Company or any subsidiary
          or
          for any substantial part of its property, or shall consent to the commencement
          against it of such a proceeding or case, or shall file an answer in any
          such
          case or proceeding commenced against it consenting to or acquiescing in
          the
          commencement of such case or proceeding, or shall consent to or acquiesce
          in the
          appointment of such a receiver, trustee, custodian or similar official;
          (B)
          shall be unable to pay its material debts as such debts become due, or
          shall
          admit in writing its inability to apply its debts generally; (C) shall
          make a
          general assignment for the benefit of creditors; or (D) shall take any
          action to
          authorize or effect any of the actions set forth above in this subsection
          5(a)(iv); or 

        
          
             

          

          
            -8-

            
              

            

          

          
             

          

        

        

         

        (v)
          Any
          proceeding shall be instituted against the Company seeking to adjudicate
          it a
          bankrupt or insolvent, or seeking dissolution, liquidation, winding up,
          reorganization, arrangement, adjustment, protection, relief of debtors,
          or
          seeking the entry of an order for relief or the appointment of a receiver,
          trustee, custodian or other similar official for the Company or for any
          substantial part of its property, and either such proceeding shall not
          have been
          dismissed or shall not have been stayed for a period of sixty (60) days
          or any
          of the actions sought in such proceeding (including, without limitation,
          the
          entry of any order for relief against it or the appointment of a receiver,
          trustee, custodian or other similar official for it or for any substantial
          part
          of its property) shall occur; or 

         

        (vi)
          One
          or more final judgments, arbitration awards or orders for the payment of
          money
          in excess of $100,000 in the aggregate shall be rendered against the Company,
          which judgment remains unsatisfied for thirty (30) days after the date
          of such
          entry. 

        (vii)
          The
          issuance of an SEC stop trade order or an order suspending trading of the
          Common
          Stock from the principal market or exchange on which the Common Stock is
          listed
          for trading for longer than fifteen (15) trading days. 

         

        (viii)
          The Company shall encumber or hypothecate the collateral subject to the
          Security
          Agreement to any party; 

         

        (ix)
          A
          default by the Company of a material term, covenant, warranty or undertaking
          of
          any other agreement to which the Company and Seller are parties, or the
          occurrence of an event of default under any such other agreement; or

         

        (b)
          In
          the event of and immediately upon the occurrence of an Event of Default,
          the
          Note shall become immediately due and payable without any action by the
          Seller
          and the Note shall bear interest until paid at the rate of 12% per annum
          or such
          amount as shall be allowed by law (the “Default Interest Rate”). If an Event of
          Default occurs and is continuing, Seller may pursue any available remedy
          to
          collect the payment of all amounts due under the Note or to enforce the
          performance of any provision of the Note. No waiver of any default under
          the
          Note shall be construed as a waiver of any subsequent default, and the
          failure
          to exercise any right or remedy thereunder shall not waive the right to
          exercise
          such right or remedy thereafter.

         

        (c)
          The
          Company covenants that in case the principal of, and accrued interest on,
          the
          Note becomes due and payable by declaration or otherwise, then the Company
          will
          pay in cash to the Seller of this Note, the whole amount that then shall
          have
          become due and payable on this Note for principal or interest, as the case
          may
          be, and in addition thereto, such further amount as shall be sufficient
          to cover
          the costs and expenses of collection, including reasonable fees of the
          Seller's
          legal counsel. In case the Company shall fail forthwith to pay such amount,
          the
          Seller may commence an action or proceeding at law or in equity for the
          collection of the sums so due and unpaid, and may prosecute any such action
          or
          proceeding to judgment or final decree against Company or other obligor
          upon
          this Note, wherever situated, the monies adjudicated or decreed to be payable.
          

        
          
             

          

          
            -9-

            
              

            

          

          
             

          

        

        

         

        (d)
          The
          Company agrees that it shall give notice to the Seller at its registered
          address
          by facsimile, confirmed by certified mail, of the occurrence of any Event
          of
          Default within twenty (20) days after such Event of Default shall have
          occurred.

         

        

        Section
          4.2 Notice
          of Default.
          Promptly upon the occurrence of, or promptly upon the Parties becoming
          aware of
          the impending or threatened occurrence of, any event which would cause
          or
          constitute a breach or default, or would have caused or constituted a breach
          or
          default had such event occurred or been known to such Party prior to the
          date
          hereof, of any of the representations, warranties or covenants of such
          Party
          contained in or referred to in this Agreement or in any Schedule referred
          to in
          this Agreement, or of its inability to satisfy any conditions of Closing,
          such
          Party shall give detailed written notice thereof to the other Party and
          shall
          use its best efforts to prevent or promptly remedy the same.

        

        Section
          4.3 Consummation
          of Agreement.
          The
          Parties hereto shall use their best efforts to perform and fulfill all
          conditions and obligations on its part to be performed and fulfilled under
          this
          Agreement, to the end that the transactions contemplated by this Agreement
          shall
          be fully carried out. Until the Closing or the termination of this Agreement,
          except as mutually agreed in writing by the parties, the Seller or any
          of its
          respective employees, representatives or agents shall not, directly or
          indirectly, solicit, encourage, initiate or induce the making of any inquiries
          or proposals for the acquisition of any of the Assets or the Business,
          or
          furnish information to, or engage in negotiations relating to the foregoing
          or
          otherwise cooperate in any way with, or accept any proposal relating to
          the
          foregoing from, any person or group other than CCGI and their respective
          officers, employees, representatives or agents, and the Seller shall restrict
          any such employee, representative or agent from doing any of the
          foregoing.

        

        Section
          4.4 Notice
          to Third Parties.
           After
          the
          Closing, at the request of the Buyer, Seller and the Buyer shall send a
          jointly
          executed letter to those persons and entities as the Buyer may request
          notifying
          such persons or entities of the consummation of the transactions contemplated
          by
          this Agreement, such letter to be substantially in the form of Exhibit
          4.4.

        

        Section
          4.5 Confidentiality.
          Seller
          agrees that, after the Closing has been consummated, Seller and its respective
          officers, directors, agents, representatives and employees and affiliates
          (collectively, its “Representatives”)
          will
          hold in strict confidence, and will not distribute or make available, any
          confidential or proprietary data or information of Seller that is used
          in
          connection with or related to Business, except:

        

        (a) information
          which, as of the date hereof, is published or otherwise generally available
          to
          the public;

        
          
             

          

          
            -10-

            
              

            

          

          
             

          

        

        

        

        (b) information
          which after the date hereof becomes available to the public other than
          through
          an act or omission of Seller or its Representatives which is in violation
          of the
          provisions hereof;

        

        (c) information
          rightfully acquired from a third party which did not obtain such information
          under a pledge of confidentiality;

        

        (d) information
          which is developed by the disclosing Party independently of the relationship
          established by this Agreement; or

        

        (e) information
          which is compelled to be disclosed by legal process, in which case Seller
          shall
          notify Buyer as soon as practicable after it becomes aware of such requirement,
          and shall cooperate with Buyer in obtaining a protective order.

        

         

        Section
          4.9 Supplements
          to Schedules.
           Prior
          to
          the Closing, the Parties will supplement or amend the Schedules hereto
          with
          respect to any matter hereafter arising which, if existing or occurring
          at the
          date of this Agreement, would have been required to be set forth or described
          in
          such Schedules. No supplement or amendment of the Schedules made pursuant
          to
          this Section 4.9 shall be deemed to cure any breach of any representation
          or
          warranty made in this Agreement unless the other Parties specifically agree
          thereto in writing.

        

        Section
          4.10 Compliance.
          Seller
          shall use its best efforts to take or cause to be taken, all action and
          do or
          cause to be done all things necessary, proper or advisable to consummate
          the
          transactions contemplated by this Agreement, including, without limitation,
          to
          obtain all consents, approvals and authorization of third parties, and
          to make
          all filings with and give all notices to third parties which may be necessary
          or
          required in order to effectuate the transactions contemplated hereby and
          to
          otherwise comply and fulfill Seller’s obligations hereunder and thereunder.

        

        Section
          4.11  Severability
          of Covenants
          . Seller
          and the Buyer agree that the foregoing covenants are reasonable and valid
          in
          geographical and temporal scope and in all other respects and that Seller
          has
          received full and adequate consideration therefor. If any court determines
          that
          any of such covenants or any part thereof is invalid or unenforceable,
          the
          remainder of such covenants shall not thereby be affected and shall be
          given
          full effect, without regard to the invalid portions. If any court determines
          that any of the foregoing covenants, or any part thereof, is unenforceable
          because of the duration or geographic scope of such provision, and should
          such
          court reduce the duration or scope of such provision, as the case may be,
          such
          provision in its reduced form shall then be enforceable.

        
          
             

          

          
            -11-

            
              

            

          

          
             

          

        

        

        

        ARTICLE
          V

         CONDITIONS
          OF CLOSING

        

        Section
          5.1 Conditions
          to the Obligations of the Buyer.
          The
          obligation of the Buyer to consummate this Agreement and the transactions
          contemplated hereby is subject to the fulfillment, prior to or at the Closing,
          of the following conditions precedent and the delivery of the following
          documents:

        

        (a) Representations;
          Warranties; Covenants.
          Each of
          the representations and warranties of Seller contained in Article II shall
          be
          true and correct in all material respects as though made on and as of the
          Closing; Seller shall, on or before the Closing, have performed in all
          material
          respects all of its obligations hereunder which by the terms hereof are
          to be
          performed on or before the Closing.

        

        (b) Delivery
          of Required Consents.
          Seller
          shall deliver to the Buyer the consents required pursuant to Section 2.4
          that it
          has obtained prior to the Closing.[i.e landlord consent]

        

        (c) Certificate
          From Officers.
          Seller
          shall deliver to the Buyer a certificate dated as of the Closing to the
          effect
          that the statements set forth in paragraph (a), (b) and (c) above in this
          Section 5.1 are true and correct.

        

        (d) Assignment
          and Bill of Sale to the Buyer.
          Seller
          shall deliver two (2) originals of the Assignment and Bill of Sale in the
          form
          of Exhibit 5.1(e) executed by Seller.

        

        Section
          5.2 Conditions
          to Obligations of Seller.
          Seller's obligation to consummate this Agreement and the transactions
          contemplated hereby is subject to
          the
          fulfillment, prior to or at the Closing, of the following conditions precedent
          and the delivery of the following documents:

        

        (a) Representations;
          Warranties; Covenants.
          Each of
          the representations and warranties of CCGI and/or the Buyer contained in
          Article
          III shall be true and correct in all material respects as though made on
          and as
          of the Closing; CCGI shall, on or before the Closing, have performed in
          all
          material respects all of its obligations hereunder which by the terms hereof
          are
          to be performed on or before the Closing.

        (b) Assignment
          and Bill of Sale to the Buyer.
          The
          Buyer shall deliver two (2) originals of the Assignment and Bill of Sale
          in the
          form of Exhibit 5.1(e).

        
          
             

          

          
            -12-

            
              

            

          

          
             

          

        

        

        Section
          5.3 Further
          Conditions to Obligations of the Buyer and Seller.
          The
          respective obligations of each Party hereunder are subject to the satisfaction,
          at or before the Closing, of the conditions set out below.

        

        Section
          5.4 Condition
          Precedent and Effectiveness of Agreement.
          A
          condition to the effectiveness of Closing shall be the completion by CCGI
          of a
          full review of the File Library and the proper cataloguing of its contents.
          Such
          review will be conducted in a supervised manner and shall include the visual
          review of all recorded material.

        

        (a) Absence
          of Litigation.
          There
          shall not have been issued and be in effect any order of any court or tribunal
          of competent jurisdiction which (i) prohibits or makes illegal the purchase
          by
          the Buyer of the Assets, (ii) would require the divestiture by the Buyer
          of all
          or a material portion of the Assets, the Business or the assets of the
          Buyer as
          a result of the transactions contemplated hereby, or (iii) would impose
          limitations on the ability of the Buyer to effectively exercise full rights
          of
          ownership of the Assets, or of a material portion of the Business as a
          result of
          the transactions contemplated hereby.

        

        (b) No
          Injunction.
          On the
          Closing Date there shall be no effective injunction, writ, preliminary
          restraining order or any order of any nature issued by a court of competent
          jurisdiction directing that the transactions provided for herein or any
          of them
          not be consummated as so provided or imposing any conditions on the consummation
          of the transactions contemplated hereby which the Buyer deems unacceptable
          in
          its sole discretion.

        

        ARTICLE
          VI

        RIGHTS
          AND OBLIGATIONS SUBSEQUENT TO CLOSING

        

        Section
          6.1 Survival
          of Warranties. The
          representations and warranties shall survive the Closing for a period of
          eighteen (18) months, regardless of any investigation or knowledge acquired
          on
          the part of the Buyer or its affiliates and shall not merge in the performance
          of any obligation by either Party hereto.

        

        ARTICLE
          VII

         TERMINATION

        

        Section
          7.1 Right
          to Terminate.
          Notwithstanding anything to the contrary set forth in this Agreement, this
          Agreement may be terminated and the transactions contemplated herein abandoned
          at any time prior to the Closing:

        
          
             

          

          
            -13-

            
              

            

          

          
             

          

        

        

        

        (a) by
          mutual
          written consent of the Parties hereto;

        

        (b) by
          either
          the Buyer or the Seller if the Closing shall not have occurred by March
          31,
          2006; provided, however, that the right to terminate this Agreement under
          this
          Section 7.1(b) shall not be available to any Party whose failure to fulfill
          any
          obligation under this Agreement has been the cause of, or resulted in,
          the
          failure of the Closing Date to occur on or before such date;

        

        (c) by
          the
          Seller if the Buyer (i) breaches its representations and warranties, (ii)
          fails
          to comply with any of its covenants or agreements contained herein, or
          (iii) if
          any of the conditions to closing set forth in Section 5.2 are not satisfied
          or
          capable of being satisfied on or before the Closing Date; or

        

        (d) by
          the
          Buyer if the Seller (i) breaches its representations and warranties, (ii)
          fails
          to comply with any of its covenants or agreements contained herein, or
          (iii) if
          any of the conditions to closing set forth in Section 5.1 are not satisfied
          or
          capable of being satisfied on or before the Closing Date.

        

        Section
          7.2 Obligations
          to Cease.
          If this
          Agreement is terminated pursuant to Section 7.1 hereof, all rights and
          obligations of the Parties under this Agreement shall thereafter terminate
          and
          there shall be no liability of any party hereto to any other Party except
          for
          the obligations set forth in Sections 9.1 and 9.8 hereof. Termination of
          this
          Agreement pursuant to Section 7.1 shall not, however, limit or impair any
          remedies that the terminating Party may have with respect to a breach or
          default
          by the other Party prior to the date of termination of its representations,
          warranties, covenants or agreements or obligations under this
          Agreement.

        

        

        ARTICLE
          VIII

         INDEMNIFICATION

        

        Section
          8.1 Indemnification
          of Seller.
           The
          Buyer
          shall defend and promptly indemnify Seller and save and hold harmless from,
          against, for and in respect of and shall pay any and all damages, losses,
          obligations, liabilities, claims, encumbrances, deficiencies, costs and
          expenses, including, without limitation, reasonable attorneys’ fees and other
          costs and expenses incident to any action, investigation, claim or proceeding
          (all hereinafter collectively referred to as “Losses”)
          suffered, sustained, incurred or required to be paid by Seller by reason
          of (i)
          any representation or warranty of CCGI herein being untrue or incorrect
          in any
          respect, (ii) any and all obligations of Buyer arising and required to
          be
          performed under the Assumed Liabilities or under the Assumed Contracts
          for
          periods after the Closing, or (iii) any breach or failure of observance
          or
          performance of any covenant, agreement or commitment made by the Buyer
          hereunder
          or under any document or instrument relating hereto or executed pursuant
          hereto.

        
          
             

          

          
            -14-

            
              

            

          

          
             

          

        

        

        

        Section
          8.2 Indemnification
          of CCGI
          .

        

        (a) Seller
          shall defend and promptly indemnify CCGI and their respective officers,
          directors, stockholders and affiliates and save and hold them harmless
          from,
          against, for and in respect of and pay any and all Losses suffered, sustained,
          incurred or required to be paid by CCGI by reason of (i) any and all obligations
          and liabilities of Seller, other than obligations arising and required
          to be
          performed under the Assumed Liabilities or under the Assumed Contracts
          after the
          Closing; (ii) any breach or failure of observance or performance of any
          covenant, agreement or commitment made by Seller hereunder or under any
          document
          or instrument relating hereto or executed pursuant hereto; or (iii) as
          a result
          of any representation, or warranty contained herein or in any document
          or
          instrument executed pursuant hereto being untrue or incorrect in any
          respect.

        

        Section
          8.3 Procedures.
          For
          purposes of this Section, the party entitled to indemnification shall be
          known
          as the “Indemnified
          Party”
and
          the
          party required to indemnify shall be known as the “Indemnifying
          Party.”
In
          the
          event that the Indemnifying Party shall be obligated to the Indemnified
          Party
          pursuant to this Section or in the event that a suit, action, investigation,
          claim or proceeding is begun, made or instituted as a result of which the
          Indemnifying Party may become obligated to the Indemnified Party hereunder,
          the
          Indemnified Party shall give prompt written notice, within ten (10) business
          days, to the Indemnifying Party of the occurrence of such event. The failure
          of
          the Indemnified Party to provide the Indemnifying Party with timely notice
          will
          limit the indemnification provided for in this Article VII, only if, and
          to the
          extent that, the failure to provide such timely notice results in the forfeiture
          of substantial rights by the Indemnifying Party. The Indemnifying Party
          agrees
          to defend, contest or otherwise protect against any such suit, action,
          investigation, claim or proceeding at the Indemnifying Party’s own cost and
          expense. The Indemnified Party shall have the right but not the obligation
          to
          participate at its own expense in the defense thereof by counsel of its
          own
          choice. In the event that the Indemnifying Party fails to notify the Indemnified
          Party within ten (10) days of its receipt of notice of a claim that it
          intends
          to assume the defense thereof or thereafter to timely defend, contest or
          otherwise protect against any such suit, action, investigation, claim or
          proceeding, the Indemnified Party shall have the right to defend, contest
          or
          otherwise protect against the same and may make any compromise or settlement
          thereof and recover the entire cost thereof from the Indemnifying Party
          including without limitation, reasonable attorneys’ fees, disbursements and all
          amounts paid as a result of such suit, action, investigation, claim or
          proceeding or compromise or settlement thereof.

        

        Section
          8.4 Settlement
          of Claims. 
          If an
          Indemnifying Party assumes the defense of any suit, action, claim, proceeding
          or
          investigation for which it is called upon to indemnify the Indemnified
          Party
          pursuant to this Article VII no compromise or settlement thereof may be
          effected
          by the Indemnifying Party without the Indemnified Party's prior written
          consent
          (which consent shall not be unreasonably withheld or delayed).

        
          
             

          

          
            -15-

            
              

            

          

          
             

          

        

        

        

        ARTICLE
          IX

        MISCELLANEOUS

        

        Section
          9.1 Fees
          and Expenses.
           Except
          as
          otherwise provided in this Agreement, each of the Parties will bear its
          own
          expenses in connection with the negotiation and the consummation of the
          transactions contemplated by this Agreement, and no expenses of Seller
          relating
          in any way to the purchase and sale of the Assets hereunder and the transactions
          contemplated hereby, including, without limitation, legal, accounting or
          other
          professional expenses of Seller, shall be charged to or paid by the Buyer
          or
          included in any of the Assumed Liabilities.

        

        Section
          9.2 Notices.
          All
          notices and other communications hereunder shall be in writing and shall
          be
          deemed to have been given if delivered personally or sent by facsimile
          transmission, overnight courier, or certified, registered or express mail,
          postage prepaid. Any such notice shall be deemed given when so delivered
          personally or sent by facsimile transmission (provided that a confirmation
          copy
          is sent by overnight courier), one day after deposit with an overnight
          courier,
          or if mailed, five days after the date of deposit in the United States
          mails, as
          follows:

        

        
          	
                  To
                    Seller:

                	
                  PACIFICAP
                    ENTERTAINMENT HOLDINGS, INC.

                
	
                   

                	
                  12868
                    Via Latina

                
	
                   

                	
                  Del
                    Mar, CA

                
	
                   

                	
                  Attention:
                    Ed Litwak

                
	
                   

                	
                  Facsimile:
                    (858) 481-2207

                
	
                   

                	
                   

                
	
                  To
                    Buyer:

                	
                  COLLECTIBLE
                    CONCEPTS GROUP, INC. 

                
	
                   

                	
                  Insert
                    address

                
	
                   

                	
                   

                
	
                   

                	
                  Attention:
                    General Counsel

                
	
                   

                	
                  Facsimile:
                    

                
	
                   

                	
                   

                
	
                  With
                    a copy to:

                	
                  Sichenzia
                    Ross Friedman Ference, LLP

                
	
                   

                	
                  1065
                    Avenue of the Americas 

                
	
                   

                	
                  New
                    York, New York 10018

                
	
                   

                	
                  Attention:
                    Andrea Cataneo, Esq.

                
	
                   

                	
                  Facsimile
                    No.: (212) 930-9725

                

        

        

        

        

        Any
          notice given hereunder may be given on behalf of any Party by his counsel
          or
          other authorized representatives. The address of any Party may be changed
          on
          notice to the other Party duly served in accordance with the foregoing
          provisions.

        
          
             

          

          
            -16-

            
              

            

          

          
             

          

        

        

        

        Section
          9.3 Governing
          Law.
          This
          Agreement is made pursuant to and shall be governed and construed in accordance
          with the laws of the State of New York, without regard to the principles
          of
          conflict of laws thereof (the "Governing
          Law").
          Each
          Party, however, shall make a good faith effort to avoid litigation, and
          shall
          exhaust all possible remedies prior to resorting to formal litigation.
          Each
          Party hereto (A) hereby irrevocably and unconditionally submits to the
          exclusive
          jurisdiction of any court of the State of New York or any federal court
          sitting
          in the State of New York for purposes of any suit, action or other proceeding
          arising out of this Agreement or the subject matter hereof brought by any
          Party,
          (B) hereby waives and agrees not to assert, by way of motion, as a defense,
          or
          otherwise, in any such suit, action or proceeding, any claim that it is
          not
          subject personally to the jurisdiction of the above-named courts, that
          its
          property is exempt or immune from attachment or execution, that the suit,
          action
          or proceeding is brought in an inconvenient forum, that the venue of the
          suit,
          action or proceeding is improper or that this Agreement or the subject
          matter
          hereof may not be enforced in or by such court, and (C) hereby agrees not
          to
          assert in any such action, suit, or proceeding any right to a jury trial.
          Each
          Party hereby consents to service of process by certified mail at the address
          set
          forth in Section 8.2 and agrees that its submission to jurisdiction and
          its
          consent to service of process by mail is made for the express benefit of
          the
          other Party hereto. Final judgment against any Party, in any action, suit
          or
          proceeding shall be conclusive, and may be enforced in other jurisdictions
          (A)
          by suit, action or proceeding on the conclusive evidence of the fact and
          of the
          amount of any indebtedness or liability of the Party therein described
          or (B) in
          any other manner provided by or pursuant to the laws of such other
          jurisdiction.

        

        Section
          9.4 Entire
          Agreement.
          This
          Agreement, including the Schedules and Exhibits referred to herein and
          other
          agreements entered into in connection herewith (including, without limitation,
          the Assignment and Bill of Sale) and the other writings specifically identified
          herein or contemplated hereby, is complete, reflects the entire agreement
          of the
          Parties with respect to its subject matter, and supersedes all previous
          written
          or oral negotiations, commitments and writings. No promises, representations,
          understandings, warranties and agreements have been made by any of the
          Parties
          hereto except as referred to herein or therein in such Schedules and Exhibits
          or
          in such other writings; and all inducements to the making of this Agreement
          and
          such other agreements relied upon by either Party hereto have been expressed
          herein or in such Schedules or Exhibits or in such other writings.

        

        Section
          9.5 Assignability;
          Binding Effect.
          This
          Agreement may not be assigned by a Party (except by operation of law, in
          a
          merger or consolidation of a Party with or into a third party with a net
          worth,
          calculated in accordance with generally accepted accounting principles,
          at least
          as high as that of the assigning Party prior to the merger or consolidation)
          without the prior written consent of the other Parties hereto, which shall
          not
          be unreasonably withheld. This Agreement shall be binding upon and enforceable
          by, and shall inure to the benefit of, the Parties hereto and their respective
          heirs, successors and permitted assigns.

        
          
             

          

          
            -17-

            
              

            

          

          
             

          

        

        

        

        Section
          9.6 Execution
          in Counterparts.
          For the
          convenience of the Parties and to facilitate execution, this Agreement
          may be
          executed in two (2) or more counterparts, each of which shall be deemed
          an
          original, but all of which shall constitute one and the same document.
          Delivery
          of a telecopied version of one or more signatures on this Agreement shall
          be
          deemed adequate delivery for purposes of this Agreement. Delivery of a
          facsimile
          version of one or more signatures to this Agreement shall be deemed adequate
          delivery for purposes of this Agreement.

        

        Section
          9.7 Amendments.
          This
          Agreement may not be amended or modified, nor may compliance with any condition
          or covenant set forth herein be waived, except by a writing duly and validly
          executed by each Party hereto, or in the case of a waiver, the Party waiving
          compliance.

        

        Section
          9.8 Publicity.
           Except
          if
          and insofar as required by law (including any applicable stock exchange
          regulation), no press releases, announcements or public disclosure of the
          transactions contemplated by this Agreement, shall be made by a Party to
          this
          Agreement without the prior knowledge and written consent of the Buyer
          and
          Seller; provided that subsequent to the Closing Date Buyer shall not be
          limited
          by this provision.

        

        Section
          9.9 Agreement
          to Continue in Full Force.
          This
          Agreement shall, insofar as it remains to be performed, continue in full
          force
          and effect notwithstanding Closing.

        

        Section
          9.10 Severability.
          In the
          event that any one or more of the provisions contained in this Agreement,
          or the
          application thereof in any circumstances, is held invalid, illegal or
          unenforceable in any respect for any reason, the validity, legality and
          enforceability of any such provision in every other respect and of the
          remaining
          provisions contained in this Agreement shall not be in any way impaired
          thereby,
          it being intended that all of the rights and privileges of the Parties
          hereto
          shall be enforceable to the fullest extent permitted by law.

        

        
          
             

          

          
            -18-

            
              

            

          

          
             

          

        

        IN
          WITNESS WHEREOF, the Parties have caused this Agreement to be executed
          in their
          respective names by their respective officers duly authorized, as of the
          date
          first written above.

        

        COLLECTIBLE
          CONCEPTS GROUP, INC.

        

        

               
          By: /s/
          PAUL S. LIPSCHUTZ

                                Name:
          Paul S. Lipschutz

              
          Title: Chief Executive Officer

         

                                        PACIFICAP
          ENTERTAINMENT HOLDINGS, INC.

        

        

               
          By: /s/
          EDWARD LITWAK

        Name:
          Edward Litwak

                             Title:
          President

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