Document:

Unassociated Document

    Purchase
      Agreement by and between

    JDCO,
      Inc. and Java Nevada, LLC 

    July
      11, 2007 

     

    AGREEMENT
      TO PURCHASE ALL LOCATIONS OF JAVA DETOUR, INC. IN NEVADA

    

    This
      ASSET PURCHASE AGREEMENT ("Agreement") is made and entered into as of the
      11th
      day of
      July, 2007, by and between JDCO, Inc. a California corporation, with a business
      address at 2121 Second Street, Suite C105, Davis, CA 95618 ("Seller") and Java
      Nevada, LLC a Nevada limited liability company, with a business address at
      985
      White Drive Ste 100, Las Vegas, Nevada 89119 ("Buyer"). 

     

    RECITALS

    A.
      Seller
      is engaged in the business of operating, offering and selling gourmet coffee
      franchises, which operates under the Java Detour® brand throughout the world and
      owns and operates four (4) retail locations of Java Detour® within Nevada at the
      following addresses: 1501 West Charleston Blvd., Las Vegas, NV 89102; 2840
      E.
      Tropicana Avenue, Las Vegas, NV 89121; 6087 S. Pecos Road, Las Vegas, NV 89120;
      and 1659 W. Warm Springs Road, Henderson, NV 89014(each a “Location” and
      collectively, the "Nevada Business").

    B.
      Subject to the terms and conditions contained in this Agreement, Seller desires
      to sell to Buyer, and Buyer agrees to purchase from Seller, substantially all
      of
      the Assets of Seller related to the Nevada Business. 

    C.
      Buyer
      is purchasing all Assets of Seller related to the Nevada Business. J Dapper
      and
      Don Forman, each members of Buyer, are willing to provide a guaranty of the
      payment obligations of Buyer.

    D.
      Buyer
      is the master franchisor in Nevada for Java Detour® pursuant to that certain
      Master Franchise Agreement dated December 6, 2006 between the Seller and Buyer
      (the “MFA”). Pursuant to the MFA, Seller sold the rights to develop and open
      franchised stores in the State of Nevada to Buyer while retaining the right
      to
      open more company-owned retail stores in the State of Nevada (the “Retained
      Rights”). 

    E.
      In
      connection with the transaction contemplated herein, Seller agrees to relinquish
      the Retained Rights to Buyer pursuant to an amendment to the MFA executed in
      connection with the closing of the transactions contemplated
      herein.

     

    In
      consideration of the mutual covenants, representations, and warranties contained
      in this Agreement, the parties agree as follows: 

     

    ARTICLE 1. 

    PURCHASE AND
      SALE OF ASSETS 

    1.1.
      Purchase and Sale of Assets. 

    Seller
      agrees to sell to Buyer, and Buyer agrees to purchase from Seller, at Closing
      (as defined below), all of Seller's right, title, and interest in and to all
      of
      the assets used by Seller in connection with the operation of the Nevada
      Business other than the Excluded Assets (the “Assets”). ALL ASSETS SHALL BE
      TRANSFERRED BY THE SELLER TO THE BUYER ON AN AS-IS, WHERE IS BASIS, WITH ALL
      FAULTS AND DEFECTS, AND WITH NO REPRESENTATIONS OR WARRANTIES BY SELLER AS
      TO
      DEFECTS, DEFAULTS, ENFORCEABILITY, STATE OF TITLE OR ADEQUACY OF CONSIDERATION
      (except for the representations and warranties set forth in Section 5.1 of
      this
      Agreement). The Assets to be sold and transferred include the following assets
      of Seller: 

    (a)
      All
      tangible personal property, furnishings, fixtures, equipment, machinery, parts,
      accessories, inventory, and any other property listed on Schedule 1 (the
      "Personal Property"); 

    (b)
      All
      of Seller’s rights under the contracts, agreements, equipment leases,
      warranties, and other rights or agreements, whether written or oral, listed
      on
      Schedule 2 (the "Contracts"); 

    (c)
      All
      real estate leases listed on Schedule 3, together with all of Seller's interest
      in any security deposits, prepaid rent, leasehold improvements, and
      appurtenances to the leased property (the "Real Property Leases"); and

    (d)
      All
      of Seller's right, title, and interest in and to the goodwill associated with
      the Nevada Business (the "Intangible Property"). 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2.
      Excluded Assets. 

    The
      Assets shall not include, and Buyer shall not acquire any interest in, the
      assets of Seller listed on Schedule 4 (the "Excluded Assets"). 

    1.3.
      Permitted Liens. 

    Seller
      shall convey title to the Assets to Buyer free and clear of all liens, security
      interests, and encumbrances of any kind or nature, other than those items listed
      on Schedule 5 (the "Permitted Liens"). 

    1.4.
      Risk
      of Loss. 

    Seller
      assumes all risk of loss or damage to the Assets prior to the Closing. In the
      event there is any material loss or damage to all or any portion of the Assets
      prior to the Closing, Buyer may either terminate this Agreement pursuant to
      Article 11, or negotiate with Seller for a proportionate reduction in the
      Purchase Price to reflect the loss or damage. For the purposes of this
      provision, the term "material loss or damage" shall mean any loss or damage
      to
      the Assets with an aggregate cost of $10,000. 

     

    ARTICLE 2. 

    ASSUMPTION OF LIABILITIES 

    2.1.
      Assumption of Liabilities. 

    Effective
      as of the Closing Date (as defined below), and in addition to any other
      liabilities expressly assumed by Buyer under this Agreement, Buyer shall assume
      responsibility for the performance and satisfaction of all of the executory
      obligations and liabilities of Seller listed on Schedule 6 (the "Assumed
      Liabilities"). 

    2.2.
      Excluded Liabilities. 

    Except
      as
      expressly provided in this Agreement, Buyer shall not assume or become liable
      for any obligations, commitments, or liabilities of Seller, whether known or
      unknown, absolute, contingent, or otherwise, and whether or not related to
      the
      Assets, including, without limitation, any employment, business, sales, or
      use
      tax relating to Seller's operation of the Nevada Business and use and ownership
      of the Assets prior to the Closing. 

     

    ARTICLE 3. 

    PURCHASE PRICE 

    3.1.
      Purchase Price. 

    The
      purchase price to be paid by Buyer to Seller for the Assets (the "Purchase
      Price") shall be One Million One Hundred Thousand US Dollars. ($1,100,000).
      

    3.2.
      Payment of Purchase Price. 

    At
      the
      Closing, Buyer shall pay the Purchase Price to Seller as follows: 

    (a) Two
      Hundred Thousand US Dollars ($200,000) (the “Cash Purchase Price”);
      and

    (b) that
      certain promissory note (the “Promissory Note”) in the principal amount of Nine
      Hundred Thousand Dollars ($900,000), in substantially the form attached as
      Exhibit 1. 

    3.3.
      Allocation of Purchase Price. 

    The
      Purchase Price shall be allocated among the Assets as follows: 

    (a) Personal
      Property Equipment $725,000.

    (b) Inventory
      $50,000.

    (c) Intangible
      Property Good Will $125,000

    (d) Tenant
      Improvements $200,000.

    The
      parties agree to be bound by this allocation and to report these items for
      federal income tax purposes as allocated. The parties agree to execute and
      deliver Internal Revenue Service Form 8594 reflecting this allocation. 

    3.4.
      Effect of Allocation. 

    The
      parties agree to abide by the allocation of the Purchase Price specified in
      this
      Agreement, and agree to report the transaction as so allocated for income tax
      purposes.

    3.5
      Waiver of Franchise Fee Sixty (60) Days from Closing. Seller agrees to waive
      the
      payment by Buyer of any Franchise Fee per the MFA for the Locations for a period
      of sixty (60) days commencing on the Closing Date and terminating on the 60th
      day thereafter.  Buyer agrees that any 'gift card promotions' or other
      prepaid product purchases sold by Seller prior to Buyer's legal ownership of
      the
      Nevada Business and the Assets shall not be presented to Seller for
      reimbursement.  In
      the
      event it is determined at a later date that the outstanding prepaid product
      purchases sold by Seller is greater than or less than the waiver of royalty
      allowed herein, that royalty waiver shall be appropriately
      adjusted.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE 4. 

    CLOSING 

    4.1.
      Time
      and Place of Closing. 

    The
      closing for the purchase and sale of the Assets (the "Closing") shall be held
      at
      Java Nevada LLC, 985 White Drive, Suite 100, Las Vegas, Nevada 89119, Clark
      County on or before August 1, 2007 or at such other time and place as the
      parties may mutually agree in writing (the "Closing Date"). At Closing, Seller
      shall transfer and convey title to the Assets to Buyer as provided in this
      Agreement, subject only to the Permitted Liens. 

    ARTICLE 5. 

    REPRESENTATIONS AND WARRANTIES OF SELLER 

    5.1.
      Seller's Representations and Warranties. 

    Seller
      makes the following representations and warranties to Buyer, each of which
      is
      true and correct as of the date of this Agreement, and will be true and correct
      as of the Closing Date: 

    (a)
      Seller is corporation, duly organized, validly existing, and in good standing
      under the laws
      of
      the state of its organization, and is qualified to transact business in the
      State of California and Nevada. 

    (b)
      Seller has full legal power and authority to enter into and perform this
      Agreement, and this Agreement constitutes the valid and binding obligation
      of
      Seller, enforceable in accordance with its terms. 

    (c)
      The
      execution and delivery of this Agreement does not conflict with, violate, or
      constitute a default under the terms, conditions, or provisions of any agreement
      or instrument to which Seller is a party, or any law, judgment, or order of
      which Seller is aware, and will not result in the creation of any lien, security
      interest, or encumbrance on any of the Assets. 

    (d)
      There
      is no action, suit, proceeding, or claim pending, or, to the best of Seller's
      knowledge, threatened against Seller or the Assets that would affect Seller's
      ability to fulfill its obligations under this Agreement or that would impair
      the
      value of the Assets. 

    (e)
      Seller has, and will have at Closing, good and marketable title to the Assets
      free and clear of all liens, charges, and encumbrances other than the Permitted
      Liens. 

    (f)
      Seller has provided Buyer with true and correct copies of all Contracts. To
      Seller's knowledge, all of the Contracts are in full force and effect, have
      been
      duly executed by the parties, and Seller is not in default under any Contract.
      

    (g)
      Seller has provided Buyer with true and correct copies of all Real Property
      Leases. To Seller's knowledge,
      each Real Property Lease is in full force and effect, and Seller is not in
      default under any Real Property Lease. 

    (h)
      Seller has provided Buyer with true and correct copies of all documents
      evidencing Seller's rights in the Intangible Property. To Seller's knowledge,
      each agreement, instrument, or license with respect to the Intangible Property
      is in full force and effect, and Seller is not in default under any such
      agreements. 

    (i)
      Seller is not a party to, or otherwise bound by, any collective bargaining
      agreement, multi-employer pension fund, or other labor union agreement with
      respect to any persons employed by Seller in connection with its operation
      of
      the Nevada Business. 

    5.2.
      Correctness of Representations. 

    No
      representation or warranty of Seller in this Agreement or any other information
      furnished by Seller pursuant to this Agreement contains any untrue statement
      of
      material fact or fails to state any fact necessary in order to make the
      statements not misleading in any material respect. All statements,
      representations, and other information provided by Seller to Buyer shall be
      true
      and correct on and as of the Closing Date as though made on that date.

     

    
      ARTICLE 6.

      REPRESENTATIONS AND WARRANTIES 
        OF BUYER 

      6.1.
        Buyer's Representations and Warranties. 

      Buyer
        makes the following representations and warranties to Seller, each of which
        is
        true and correct as of the date of this Agreement and shall be true and correct
        as of the Closing Date: 

      (a)
        Buyer
        is limited liability company, duly organized, validly existing, and in good
        standing under the laws
        of
        the state of its organization, and is qualified to transact business in the
        State of Nevada. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)
        Buyer
        has full legal power and authority to enter into and perform this Agreement,
        and
        this Agreement constitutes the valid and binding obligation of Buyer,
        enforceable in accordance with its terms. 

      (c)
        The
        execution and delivery of this Agreement does not conflict with, violate,
        or
        constitute a default under the terms, conditions, or provisions of any agreement
        or instrument to which Buyer is a party, or any law, judgment, or order of
        which
        Buyer is aware, and will not result in the creation of any lien, security
        interest, or encumbrance on any of the Assets. 

      (d)
        There
        is no action, proceeding, or claim pending, or, to Buyer's knowledge,
        threatened, against Buyer that would affect Buyer's ability to consummate
        the
        transactions contemplated by this Agreement. 

      (e)
        No
        consent, approval, or authorization of or declaration, filing, or registration
        with any governmental or regulatory authority is required in connection with
        the
        execution, delivery, and performance by Buyer of this Agreement or the
        consummation of the transactions contemplated by the Agreement.

      6.2.
        Correctness of Representations. 

      No
        representation or warranty of Buyer in this Agreement or any other information
        furnished by Buyer pursuant to this Agreement contains any untrue statement
        of
        material fact or fails to state any fact necessary in order to make the
        statements not misleading in any material respect. All statements,
        representations, exhibits, and other information provided by Buyer to Seller
        shall be true and correct on and as of the Closing Date as though made on
        that
        date. 

      

      ARTICLE 7. 

      COVENANTS
        PRIOR TO CLOSING

      7.1.
        Maintenance of Property Pending Closing. 

      At
        all
        times prior to the Closing Date, Seller shall continue to maintain the Assets
        and conduct its operation of the Nevada Business in the ordinary course and
        consistent with past practice.
        

      7.2.
        Access and Information. 

      Seller
        shall promptly provide Buyer with all information concerning the Nevada Business
        and the Assets that Buyer may reasonably request, and Buyer and its accountants
        and other representatives shall have access during normal business hours
        to all
        of the Assets and to the books and records of the Nevada Business. 

      7.3.
        Consents. 

      On
        or
        before the Closing Date, Seller, at its expense and with the assistance of
        Buyer
        as reasonably necessary, shall obtain all necessary consents required to
        assign
        Seller's interest in any of the Assets to Buyer as contemplated by this
        Agreement. In the event Seller is unable to obtain any such consent on or
        before
        the Closing Date, Buyer may terminate this Agreement as provided in Article
        11.

      7.4.
        Discharge of Liens. 

      All
        liens, claims, charges, security interests, pledges, assignments, or
        encumbrances relating to the Assets that are not Permitted Liens shall be
        satisfied, terminated, and discharged by Seller on or prior to the Closing
        Date
        and evidence reasonably satisfactory to Buyer and its counsel of the
        satisfaction, termination, and discharge of such liens, claims, charges,
        security interests, pledges, assignments or encumbrances shall be delivered
        to
        Buyer at or prior to the Closing. 

      7.5.
        Termination of Employees. 

      Seller
        shall terminate all of its employees working in the Nevada Business effective
        as
        of the Closing Date. Seller shall be responsible without exception for all
        compensation, taxes, insurance, and other benefits and amounts relating to
        its
        employees and shall indemnify and hold Buyer harmless from any claims made
        against Buyer with respect to the obligations. Buyer shall not assume or
        in any
        way become responsible or liable for any compensation, taxes, insurance,
        or
        other benefits and amounts payable by Seller on account of any of its employees.
        

      7.6.
        Further Assurances Prior to Closing. 

      Seller
        and Buyer shall, prior to Closing, execute any and all documents and perform
        any
        and all acts reasonably necessary, incidental, or appropriate to effect the
        transactions contemplated by this Agreement. 

      7.7.
        Notification of Changed Circumstances. 

      At
        any
        time after the date hereof and prior to the Closing, if either party becomes
        aware of any fact or circumstance that would materially change a representation
        or warranty made under this Agreement, the party with
        knowledge of those facts shall notify the other in writing as soon as possible
        after the discovery of the changed
        circumstances. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.8.
        Employees. 

      As
        soon
        as possible after the date hereof, Seller shall provide Buyer with a list
        ("Seller's List") of those employees who will not be retained by Seller after
        the Closing, together with the date of hire, the salary, and a list of benefits
        of each employee named. At any time after the receipt of Seller's List, Buyer
        may negotiate with any of the named employees with respect to employment
        by
        Buyer following the Closing. Seller and Buyer shall coordinate their efforts
        with respect to Seller's termination and Buyer's negotiations with Seller's
        employees so that the employees will receive notice of their termination
        by
        Seller and the possibility of employment with Buyer at substantially the
        same
        time. Prior to the Closing, but without any obligation to do so, Buyer shall
        endeavor to enter into employment agreements with all the employees whom
        Buyer
        desires to employ following the Closing.

      7.9.
        Broker's Fees. 

      Each
        party represents and warrants that no broker, finder, or any other person
        or
        entity has any claim for any brokerage commissions or fees in connection
        with
        any of the transactions contemplated by this Agreement. Each
        party shall indemnify the other against any claim or loss suffered as a result
        of any claim for brokerage commissions or fees payable, or claimed to be
        payable, on the basis of any actions in connection with this Agreement.

      7.10.
        Expenses of Closing. 

      The
        expenses of Closing shall be paid as follows: 

      (a)
        Buyer
        shall pay all sales and use taxes arising out of the transfer of the Assets,
        if
        any. 

      (b)
        Except as otherwise expressly provided in this Agreement, all other Closing
        fees
        and costs, including, but not limited to, legal fees, accounting fees,
        consulting fees, and other incidental expenses in connection with the
        transactions contemplated by this Agreement shall be borne by the party that
        incurs such expenses. 

      7.11.
        Proration of Expenses. 

      Except
        as
        otherwise expressly provided in this Agreement, all expenses associated with
        the
        Assets being conveyed to Buyer, including, but not limited to, taxes, rent,
        insurance premiums, and utility charges, shall be apportioned ratably between
        the parties as of the Closing Date on the basis of a 30-day month. This
        obligation to make apportionments shall survive the Closing. 

      7.12
        Due
        Diligence: 

      For
        a
        period of 15 days following the date hereof (such period being the “Due
        Diligence Review Period”), the, Seller shall make available to Buyer all
        information regarding the Nevada Business and the Assets reasonably requested
        by
        Buyer in connection with Buyer’s due diligence review of the Nevada Business and
        the Assets. Seller shall have the 15 days following the last day of the Due
        Diligence Review Period (such period being the “Seller’s Cure Period”) to
        address and cure any material issues raised by Buyer during the Due Diligence
        Review Period as a result of Buyer’s due diligence review of the Nevada Business
        and the Assets. If at the end of the Seller’s Cure Period the Buyer is not
        satisfied with the results of its due diligence investigation of the Nevada
        Business and the Assets, the Buyer shall have the option to terminate this
        Agreement by providing written notice to Seller of such termination within
        two
        days after the end of the Seller’s Cure Period. 

      

      ARTICLE 8. 

      CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER 

      8.1.
        Buyer's Conditions. 

      The
        obligation of Buyer to consummate the transactions contemplated by this
        Agreement shall be subject to the satisfaction, on or before the Closing
        Date,
        of each of the following conditions: 

      (a)
        The
        representations and warranties of Seller set forth in Article 5 shall be
        true
        and correct as of the date of the Agreement and shall be true and correct
        in all
        material respects at and as of the Closing Date. 

      (b)
        Seller shall have performed and complied in all material respects with all
        of
        the agreements, covenants, and conditions required of Seller by this Agreement
        on or before the Closing Date. 

      (c)
        No
        action, suit, or proceeding before any court or any governmental body or
        authority that would in any way affect the Assets or the ability of the parties
        to consummate the transactions contemplated by this Agreement shall have
        been
        instituted or, to Seller’s knowledge, threatened on or before the Closing Date.

      (d)
        The
        Assets shall be in substantially the same condition on the Closing Date as
        on
        the date hereof, and there shall be no material loss or damage to the Assets
        prior to the Closing. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e)
        Seller shall have obtained all necessary agreements and consents of any parties
        required to consummate the transactions contemplated by this Agreement.

      (f)
        Buyer
        shall have received copies of such releases and documents, and reviewed such
        other evidence as Buyer reasonably deems necessary to assure the Buyer that
        the
        Assets are being delivered to Buyer free and clear of all liens, claims,
        charges, security interests, pledges, assignments or encumbrances other than
        Permitted Liens.

      (g)
        Seller shall have executed and delivered or cause to be delivered to Buyer:
        (1)
        a duly executed bill of sale (the "Bill of Sale"), in substantially the form
        attached as Exhibit 2, (2) a duly executed assignment of contracts (the
        "Assignment of Contracts") in substantially the form attached as Exhibit
        3, (3)
        a duly executed assignment of leases (the "Assignment of Leases") in
        substantially the form attached as Exhibit 4, (4) A duly executed assignment
        of
        intangible property (the "Assignment of Intangible Property") in substantially
        the form attached as Exhibit 5, (5) a duly executed First Amendment to the
        MFA;
        and (6) all other documents, files, records, certificates and agreements
        required to be executed and/or delivered at Closing to transfer, convey and
        assign to Buyer all of Seller’s right, title and interest in and to the Assets,
        free and clear of any liens or encumbrances other than the Permitted
        Liens.

      8.2.
        Failure to Satisfy Buyer's Conditions. 

      Any
        of
        Buyer's conditions precedent may be waived in whole or in part by Buyer in
        writing at any time on or before the Closing Date. In the event all Buyer's
        conditions precedent have not been waived by Buyer or satisfied in full on
        or
        before the Closing Date, Buyer may elect to terminate this Agreement as provided
        in Article 11. 

      

      ARTICLE 9. 

      CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER 

      9.1.
        Seller's Conditions. 

      The
        obligation of Seller to consummate the transactions contemplated by this
        Agreement shall be subject to the satisfaction, on or before the Closing
        Date,
        of each of the following conditions: 

      (a)
        Seller shall have received the Cash
        Purchase Price on or before the Closing Date. 

      (b)
        Buyer
        shall have executed and delivered or cause to be delivered to Seller: (1)
        a duly
        executed Assignment of Contracts, (2) a duly executed Assignment of Leases,
        (3)
        a duly executed Assignment of Intangible Property, (4) a duly executed
        Promissory Note, (5) a duly executed guaranty (the “Guaranty”) in substantially
        the form of Exhibit 6, (6) a duly executed First Amendment to the MFA and
        any
        other franchise related agreements required by the Seller for the operation
        of a
        Java Detour franchise at the Locations; and (7) all other documents, files,
        records, certificates and agreements required to be executed and/or delivered
        at
        Closing to transfer, convey and assign to Buyer all of Seller’s right, title and
        interest in and to the Assets, free and clear of any liens or encumbrances
        other
        than the Permitted Liens.

      (c)
        The
        representations and warranties of Buyer set forth in Article 6 shall be true
        and
        correct as of the date of the Agreement and shall be true and correct in
        all
        material respects at and as of the Closing Date. 

      (d)
        Buyer
        shall have performed and complied in all material respects with all of the
        agreements, covenants, and conditions required of Buyer by this Agreement
        on or
        before the Closing Date. 

      (e)
        No
        action, suit, or proceeding before any court or any governmental body or
        authority that would in any way affect the ability of the parties to consummate
        the transactions contemplated by this Agreement shall have been instituted
        or,
        to Buyer’s knowledge, threatened on or before the Closing Date.

      (f)
        Buyer
        shall have furnished to Seller a certificate of its manager, dated on the
        Closing Date, certifying to the fulfillment of the conditions set forth in
        subparagraphs (c)-(e) of this Section 9.1.

      9.2.
        Failure to Satisfy Seller's Conditions. 

      Any
        of
        Seller's conditions precedent may be waived in whole or in part by Seller
        in
        writing at any time on or before the Closing Date. In the event all Seller's
        conditions precedent have not been waived by Seller or satisfied in full
        on or
        before the Closing Date, Seller may elect to terminate this Agreement as
        provided in Article 11. 

      

      ARTICLE 10. 

      POST-CLOSING OBLIGATIONS 

      10.1.
        Additional Assurances. 

      Each
        party agrees to do all acts and things and to make, execute, and deliver
        such
        written instruments as shall
        be
        reasonably necessary to carry out the terms and provisions of this Agreement.
        This covenant of further assurances
        shall survive the Closing. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      10.2
        Re-model Nevada Business Locations.

      Buyer
        agrees that within 180 days of Closing each location shall be remodeled to
        a
        level of Store Level 2, as described in Exhibit 8.

      

      ARTICLE 11. 

      TERMINATION 

      11.
        Termination. 

      This
        Agreement may be terminated as follows: 

      (a)
        By
        the mutual consent of Buyer and Seller at any time prior to the Closing.
        

      (b)
        By
        Buyer at any time prior to the Closing as expressly provided in this Agreement,
        or if any condition precedent to Buyer's obligations set forth in Article
        9 has
        not been satisfied in full or previously waived by Buyer in writing, at or
        prior
        to the Closing. 

      (c)
        By
        Buyer pursuant to Section 7.11.

      (d)
        By
        Seller at any time prior to the Closing as expressly provided in this Agreement,
        or if any condition precedent to Seller's obligations set forth in Article
        10
        has not been satisfied in full or previously waived
        by
        Buyer in writing, at or prior to the Closing. 

      (e)
        By
        either party if the Closing has not occurred on or before December 31, 2007.
        

      11.1.
        Effect of Termination. 

      In
        the
        event of the termination of this Agreement pursuant to the provisions of
        this
        Article 11, this Agreement shall become void and have no effect, without
        any
        liability on the part of any of the parties. 

      11.2.
        Remedies Cumulative. 

      The
        remedies set forth in this Agreement are cumulative and not exclusive of
        any
        other legal or equitable remedy otherwise available to any party. 

      

      ARTICLE 12. 

      INDEMNIFICATION 

      12.1.
        Seller's Indemnification. 

      In
        addition to any other agreement on the part of Seller to indemnify Buyer
        set
        forth in this Agreement, Seller shall indemnify and hold Buyer harmless from
        and
        against any and all loss, cost, damage, claim, liability, or expense, including
        reasonable attorney fees and costs, in any way arising from or related to
        (a)
        Seller's ownership
        or use of the Assets, or Seller's operation of the Nevada Business, prior
        to the
        Closing Date, (b) the breach of any representation or warranty of Seller
        contained in this Agreement, or (c) the failure by Seller to observe or perform
        any other covenant or agreement to be observed or performed by Seller under
        this
        Agreement. 

      12.2.
        Buyer's Indemnification. 

      In
        addition to any other agreement on the part of Buyer to indemnify Seller
        set
        forth in this Agreement, Buyer shall indemnify and hold Seller and its officers,
        directors, employees, agents and affiliates harmless from and against any
        and
        all loss, cost, damage, claim, liability, or expense, including reasonable
        attorney fees and costs, in any way arising from or related to (a) Buyer's
        ownership or use of the Assets from and after the Closing Date., (b) the
        breach
        of any representation or warranty of Buyer contained in this Agreement, or
        (c)
        the failure by Buyer to observe or perform any other covenant or agreement
        to be
        observed or performed by Buyer under this Agreement. 

      12.3.
        Survival of Indemnities. 

      All
        representations and warranties contained in this Agreement and the mutual
        agreements to indemnify set forth in this Article 12 shall survive the Closing
        for a period of two (2) years. 

      12.4
        Limitation on Liability. Seller shall not have any obligation to indemnify
        Buyer
        or any of its affiliates for losses, and Buyer shall not have any obligation
        to
        indemnify Seller or any of its affiliates for losses, in each case, until
        the
        aggregate amount of all losses, incurred by Buyer or any of its affiliates,
        on
        the one hand, or Seller or any of its affiliates, on the other hand, exceeds
        Fifty Thousand Dollars ($50,000) (the “Basket”) and then, subject to the other
        limitations set forth in this Section
        12.4,
        Seller’s indemnification obligations or Buyer’s indemnification obligations, as
        the case may be from the first dollar of the loss in excess of the Basket.
        

      In
        no
        event shall the aggregate liability of Seller be, and in no event shall claims
        be made against Seller by Buyer for losses, in excess of $550,000. The
        indemnification remedies contained in this Agreement shall be
        exclusive.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      12.5
        Procedure. 

      (a)
        The
        party seeking indemnification under Section 12.1
        or
Section
        12.2
        as the
        case may be (the “Indemnified Person”), shall provide written notice (a “Notice
        of Claim”) to the party against whom indemnity is sought (the “Indemnifying
        Person”) of the assertion of any claim, or the commencement of any suit, action
        or proceeding in respect of which the Indemnified Person has determined has
        given or could give rise to a right of indemnification under this Agreement.
        No
        failure to give such Notice of Claim shall affect the indemnification
        obligations of the Indemnifying Person hereunder, except to the extent such
        Indemnifying Person can demonstrate such failure materially prejudiced such
        Indemnified Person’s ability to successfully defend the matter giving rise to
        the claim. The Notice of Claim shall state the nature of the claim, the amount
        of the Losses, if known, and the method of computation thereof, all with
        reasonably particularity and containing a reference to the provisions of
        this
        Agreement in respect of which such right of indemnification is claimed or
        arises.

      (b)
        The
        Indemnifying Party shall respond to each such claim within 20 Business Days
        of
        receipt of such notice. No action shall be taken pursuant to the provisions
        of
        this Agreement or otherwise by the Indemnified Party until the later of (i)
        the
        expiration of the 20 Business Day response period (unless reasonably necessary
        to protect the rights of the party seeking indemnification), or (ii) 30
        days following the termination of the 20 Business Day response period if
        a
        response received within such 20 Business Day response period by the Indemnified
        Party requested an opportunity to cure the matter giving rise to indemnification
        (and, in such event, the amount of such claim for indemnification shall be
        reduced to the extent so cured within such 30-day cure period).

      (c)
        Except as otherwise provided herein, if such demand is based on a claim by
        a
        third party or a governmental entity (each, a “Third
        Party Claim”),
        the
        Indemnifying Party shall have the right to assume the entire control of the
        defense thereof, including at its own expense, employment of counsel reasonably
        satisfactory to the Indemnified Party, and, in connection therewith, the
        Indemnified Party shall cooperate with and make available to the Indemnifying
        Party all pertinent information as the Indemnifying Party may reasonably
        request. In such event, the Indemnifying Party shall have the right to settle
        or
        resolve any such claim by a third party. Notwithstanding the foregoing, in
        the
        event that (i)
        the
        Indemnifying Party elects in writing not to assume or
        does
        not assume the defense of the Third Party Claim pursuant to this Section
        12.5(c),
        (ii)
        the Indemnifying Party withdraws from the defense of a Third Party Claim,
        (iii)
        counsel reasonably acceptable to the Indemnifying Party advises of any actual
        conflict between the Indemnifying Party and the Indemnified Party, or (iv)
        the
        Third Party Claim seeks material, non-monetary relief from Seller or Parent,
        Purchaser or any of their respective Affiliates or material monetary relief
        from
        Purchaser for which Purchaser is not indemnified,
        the
        Indemnified Party shall have the right to conduct such defense in good faith
        with counsel reasonably acceptable to the Indemnifying Party, but the
        Indemnified Party shall be prohibited from compromising or settling the claim
        without the prior written consent of the Indemnifying Party, which consent
        shall
        not be unreasonably withheld,
        delayed
        or
        conditioned.

      (d)
        Where
        the
        Indemnifying Party or the Indemnified Party is defending and controlling
        any
        claim, they shall select counsel, contractors, experts and consultants of
        recognized standing and competence to take all steps necessary in the
        investigation, defense or settlement thereof and shall at all times diligently
        and promptly pursue the resolution thereof. The Party conducting the defense
        thereof shall at all times act as if all Losses relating to any such claim
        are
        for its own account and shall act in good faith and with reasonable prudence
        to
        minimize Losses therefrom. Regardless of which Party defends any such Third
        Party Claim, the other Party shall have the right at its expense to participate
        in the defense assisted by counsel of its own choosing.

      (e)
        Recovery from the Indemnifying Person by the Indemnified Person under this
        Section
        12.5
        shall be
        net of any insurance proceeds received by the Indemnified Person in relation
        to
        claims for Losses brought under this Section
        12.5.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      ARTICLE 13. 

      GENERAL PROVISIONS 

      13.1.
        Assignment. 

      The
        respective rights and obligations of the parties to this Agreement may not
        be
        assigned by any party without the prior written consent of the other, which
        consent may not be unreasonably withheld or delayed. 

      13.2.
        Successors and Assigns. 

      The
        terms
        and provisions of this Agreement shall be binding on and inure to the benefit
        of
        the successors and assigns of the parties. 

      13.3.
        Entire Agreement. 

      This
        Agreement constitutes the entire agreement between the parties with respect
        to
        the subject matter of this Agreement and supersedes all prior agreements,
        oral
        and written, between the parties hereto with respect to the subject matter
        of
        this Agreement. 

      13.4.
        Modification and Waiver. 

      This
        Agreement may not be amended, modified, or supplemented except by written
        agreement signed by the party against which the enforcement of the amendment,
        modification, or supplement is sought. No waiver of any of the provisions
        of
        this Agreement shall be deemed, or shall constitute, a waiver of any other
        provision. No waiver shall be binding unless executed in writing by the party
        making the waiver. 

      13.5.
        Attorney Fees. 

      If
        any
        legal action or other proceeding is brought to enforce the provisions of
        this
        Agreement, the prevailing party shall be entitled to recover reasonable attorney
        fees and other costs incurred in the action or proceeding,
        in addition to any other relief to which the prevailing party may be entitled.
        

      13.6.
        Fees and Expenses. 

      Except
        as
        otherwise specifically provided in this Agreement, Seller and Buyer shall
        pay
        their own fees and expenses in connection with the negotiation and consummation
        of the transactions contemplated by this Agreement. 

      13.7.
        Notices. 

      All
        notices, requests, demands, and other communications required by this Agreement
        shall be in writing and shall be (a) delivered in person or by courier, (b)
        mailed by first class registered or certified mail, or (c) delivered by
        facsimile transmission, as follows, or to such other address as a party may
        designate to the other in writing: 

      (i)
        If to
        Seller: 2121 Second Street, Suite C105, Davis, CA 95618; facsimile no. 704
        341
        4757; attention: Tom Reeder

      (ii)
        If
        to Buyer: Java Nevada, LLC, 985 White Drive, Ste 100, Las Vegas, Nevada 89119;
        facsimile no. 702 733-8859 attention: Joe Plante, with Copy to facsimile
        no. 702
        862 4576 attention Darren J. Welsh.

      If
        delivered personally or by courier, the date on which the notice, request,
        instruction, or document is delivered shall be the date on which the delivery
        is
        made, and if delivered by facsimile transmission or mail as aforesaid, the
        date
        on which the notice, request, instruction, or document is received shall
        be the
        date of delivery. 

      13.8.
        Headings. 

      All
        section headings contained in this Agreement are for convenience of reference
        only, do not form a part of this Agreement, and shall not affect in any way
        the
        meaning or interpretation of this Agreement. 

      13.9.
        Counterparts. 

      This
        Agreement may be executed in two (2) or more counterparts, all of which shall
        be
        considered one and the same agreement, and shall become effective when one
        counterpart has been signed by each party and delivered to the other party
        hereto. 

      13.10.
        Time of Essence. 

      Time
        shall be of the essence with respect to the obligations of the parties to
        this
        Agreement. 

      13.11.
        Governing Law. 

      This
        Agreement shall be governed by and construed under the laws of the State
        of
        Nevada without regard to its conflict of law doctrines. 

      13.12.
        Severability. 

      In
        the
        event any provision of this Agreement is deemed to be invalid, illegal, or
        unenforceable, all other provisions of the Agreement that are not affected
        by
        the invalidity, illegality, or unenforceability shall remain in full force
        and
        effect. 

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        of this
        Agreement. 

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

      
        	  
	 
	
                 PURCHASER

                Java
                  Nevada LLC
  

              
	By:  /s/ J.
                Dapper
	
                
                  

                

                By:
                  J Dapper

                Its:
                  Manager

              
	 

      

       

      
        	   
	 
	
                 SELLER

                 JDCO,
                  Inc. 

              
	Date: By:  /s/ Michael
                Binninger
	
                
                  

                

                BY: Michael
                  Binninger

                Its: CEO

                 

              
	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      LIST
        OF
        SCHEDULES

      Schedule
        1 -- List of Personal Property

      

      Schedule
        2 - List of Contracts 

      

      Schedule
        3 -- List of Real Property Leases 

       

      Schedule
        4 -- List of Excluded Assets

      

      Schedule
        5 -- List of Permitted Liens

      

      Schedule
        6 -- List of Assumed Liabilities:

       

      LIST
        OF
        EXHIBITS

      Exhibit
        1
        - Promissory Note

      

      Exhibit
        2
        - Bill of Sale

      

      Exhibit
        3
        - Assignment of Contracts 

      

      Exhibit
        4
        - Assignment of Real Property Leases 

      

      Exhibit
        5- Assignment of Intangible Property 

      

      Exhibit
        6
        - Guaranty

      

      Exhibit
        7
        - First Amendment to Master Franchise Agreement 

       

      Exhibit
        8
        - Store Level Build Out Scale 1-3

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        1 -- List of Personal Property

      

      
        	
                Store:
                  Las Vegas - 

                Tropicana
                  

              	 	 	
                Date
                  - 5/18/2007

              
	 	 	 	 	 
	 	
                Quantity

              	
                Type

              	
                Brand

              	
                Serial
                  #

              
	 	 	 	 	 
	
                EX)

              	
                1

              	
                4
                  group Espresso Machine

              	
                La
                  Marzocco

              	
                AB-123456789

              
	 	 	 	 	 
	
                1

              	
                2

              	
                automatic
                  espresso machines

              	
                Franke
                  sinfonia

              	
                35401559

              
	
                2

              	
                 

              	
                 

              	
                Franke
                  sinfonia

              	
                35401555

              
	
                3

              	
                1

              	
                coffee
                  grinder

              	
                bunn

              	
                g300031322

              
	
                4

              	
                1

              	
                coffee
                  brewer

              	
                Fetco

              	
                n/a

              
	
                5

              	
                5

              	
                airpots

              	
                 

              	
                n/a

              
	
                6

              	
                14

              	
                blending
                  pitchers

              	
                 

              	
                n/a

              
	
                7

              	
                3

              	
                blenders

              	
                bledtec

              	
                i512v-11507

              
	
                8

              	
                 

              	
                 

              	
                bledtec

              	
                s712v-11552

              
	
                9

              	
                 

              	
                 

              	
                bledtec

              	
                s712v-11553

              
	
                10

              	
                2

              	
                Stainless
                  steel pumps

              	
                 

              	
                n/a

              
	
                11

              	
                3

              	
                plastic
                  pumps

              	
                 

              	
                n/a

              
	
                12

              	
                2

              	
                stainless
                  steel canisters

              	
                 

              	
                n/a

              
	
                13

              	
                2

              	
                ice
                  caddys

              	
                cambro

              	
                n/a

              
	
                14

              	
                 

              	
                 

              	
                cambro

              	
                n/a

              
	
                15

              	
                1

              	
                commercial
                  ice machine

              	
                cornelius

              	
                63j0540bb101

              
	
                16

              	
                1

              	
                large
                  refrigerator

              	
                arctic
                  air

              	
                wa61701738

              
	
                17

              	
                4

              	
                small
                  refrigerator

              	
                bev
                  air

              	
                7711637

              
	
                18

              	
                 

              	
                 

              	
                bev
                  air

              	
                7501488

              
	
                19

              	
                 

              	
                 

              	
                bev
                  air

              	
                7711639

              
	
                20

              	
                 

              	
                 

              	
                bev
                  air

              	
                7506108

              
	
                21

              	
                3

              	
                register

              	
                jiva

              	
                tp411699

              
	
                22

              	
                 

              	
                 

              	
                jiva

              	
                tp620178

              
	
                23

              	
                 

              	
                 

              	
                jiva

              	
                tp412121

              
	
                24

              	
                1

              	
                modem

              	
                sprint

              	
                n/a

              
	
                25

              	
                2

              	
                printer

              	
                ebson

              	
                d6fg337173

              
	
                26

              	
                 

              	
                 

              	
                ebson

              	
                d6fg337175

              
	
                27

              	
                1

              	
                comupter
                  moniter

              	
                 

              	
                n/a

              
	
                28

              	
                1

              	
                camera
                  moniter

              	
                 

              	
                n/a

              
	
                29

              	
                2

              	
                neon
                  lights (open)

              	
                ventex

              	
                n/a

              
	
                30

              	
                 

              	
                 

              	
                ventex

              	
                n/a

              
	
                31

              	
                1

              	
                fax
                  

              	
                brother

              	
                u5657883j968617

              
	
                32

              	
                1

              	
                phone

              	
                GE

              	
                60131155

              
	
                33

              	
                1

              	
                t.v.

              	
                panasonic

              	
                n/a

              
	
                34

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                35

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                36

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                37

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                38

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                39

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                40

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Store:
                  Las Vegas - Pecos 

              	 	 	
                Date
                  - 5/18/2007

              
	 	 	 	 	 
	 	
                Quantity

              	
                Type

              	
                Brand

              	
                Serial
                  #

              
	 	 	 	 	 
	
                EX)

              	
                1

              	
                4
                  group Espresso Machine

              	
                La
                  Marzocco

              	
                AB-123456789

              
	 	 	 	 	 
	
                1

              	
                2

              	
                automatic
                  espresso machines

              	
                Franke
                  Sanfonia

              	
                35401556

              
	
                2

              	
                 

              	
                 

              	
                Franke
                  Sanfonia

              	
                36402225

              
	
                3

              	
                1

              	
                coffee
                  grinder

              	
                Grind
                  Master

              	
                319037

              
	
                4

              	
                1

              	
                coffee
                  brewer

              	
                Fetco

              	
                480105064905a

              
	
                5

              	
                4

              	
                airpots

              	
                Luxus

              	
                n/a

              
	
                6

              	
                12

              	
                blending
                  pitchers

              	
                 

              	
                n/a

              
	
                7

              	
                4

              	
                blenders

              	
                blendtec

              	
                s712v-11699

              
	
                8

              	
                 

              	
                 

              	
                blendtec

              	
                s712v-11564

              
	
                9

              	
                 

              	
                 

              	
                blendtec

              	
                i512v-11509

              
	
                10

              	
                1

              	
                stainles
                  steel pumps

              	
                blendtec

              	
                n/a

              
	
                11

              	
                5

              	
                plastic
                  pumps

              	
                 

              	
                n/a

              
	
                12

              	
                2

              	
                stainles
                  steel canisters

              	
                 

              	
                n/a

              
	
                13

              	
                2

              	
                ice
                  caddys

              	
                 

              	
                n/a

              
	
                14

              	
                1

              	
                scale

              	
                taylor

              	
                n/a

              
	
                15

              	
                1

              	
                commercial
                  ice machine

              	
                cornilius

              	
                6300604bc105

              
	
                16

              	
                1

              	
                large
                  refrigerator

              	
                arctic
                  air

              	
                wa61701743

              
	
                17

              	
                1

              	
                large
                  freezer

              	
                arctic
                  air

              	
                wb44039358

              
	
                18

              	
                4

              	
                small
                  refrigerator

              	
                beverage
                  air

              	
                7803988

              
	
                19

              	
                 

              	
                 

              	
                beverage
                  air

              	
                7803989

              
	
                20

              	
                 

              	
                 

              	
                beverage
                  air

              	
                7711549

              
	
                21

              	
                 

              	
                 

              	
                beverage
                  air

              	
                n/a

              
	
                22

              	
                3

              	
                registers

              	
                sharp

              	
                58034058

              
	
                23

              	
                 

              	
                 

              	
                sharp

              	
                58048559

              
	
                24

              	
                 

              	
                 

              	
                sharp

              	
                58034298

              
	
                25

              	
                1

              	
                modem

              	
                660
                  series

              	
                f060z20035456

              
	
                26

              	
                2

              	
                printer

              	
                epson

              	
                d6fg359634

              
	
                27

              	
                 

              	
                 

              	
                epson

              	
                d6fg363371

              
	
                28

              	
                 

              	
                 

              	
                epson

              	
                g3xg001074

              
	
                29

              	
                1

              	
                camera
                  monitor

              	
                view
                  sonic

              	
                n/a

              
	
                30

              	
                2

              	
                neon
                  light (open)

              	
                centex

              	
                050684983d

              
	
                31

              	
                 

              	
                 

              	
                centex

              	
                n/a

              
	
                32

              	
                1

              	
                flat
                  screen t.v.

              	
                dell

              	
                n/a

              
	
                33

              	
                1

              	
                fax

              	
                brother

              	
                u56578a4j176993

              
	
                34

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                35

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                36

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                37

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                38

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                39

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                40

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Store:
                  Las Vegas - 

                Charleston
                  

              	
                 

              	
                 

              	
                Date
                  - 5/18/2007

              
	 	 	 	 	 
	 	
                Quantity

              	
                Type

              	
                Brand

              	
                Serial
                  #

              
	 	 	 	 	 
	
                EX)

              	
                1

              	
                4
                  group Espresso Machine

              	
                La
                  Marzocco

              	
                AB-123456789

              
	 	 	 	 	 
	
                1

              	
                2

              	
                3
                  group espresso machine

              	
                La
                  Marzocco

              	
                24220

              
	
                2

              	
                 

              	
                3
                  group espresso machine

              	
                La
                  Marzocco

              	
                24219

              
	
                3

              	
                2

              	
                espresso
                  grinder

              	
                La
                  Marzocco

              	
                23671

              
	
                4

              	
                 

              	
                espresso
                  grinder

              	
                La
                  Marzocco

              	
                28661

              
	
                5

              	
                1

              	
                coffee
                  grinder

              	
                Bunnomatic

              	
                g300030449

              
	
                6

              	
                1

              	
                coffee
                  brewer

              	
                Fetco

              	
                470124051021a

              
	
                7

              	
                4

              	
                airpots

              	
                Fetco

              	
                n/a

              
	
                8

              	
                18

              	
                blender
                  pitcher

              	
                 

              	
                n/a

              
	
                9

              	
                2

              	
                stainless
                  steel pumps

              	
                 

              	
                n/a

              
	
                10

              	
                4

              	
                plastic
                  pumps

              	
                 

              	
                n/a

              
	
                11

              	
                4

              	
                pump
                  canisters

              	
                 

              	
                n/a

              
	
                12

              	
                2

              	
                ice
                  caddy

              	
                 

              	
                n/a

              
	
                13

              	
                1

              	
                commercial
                  ice machine

              	
                cornelius

              	
                63n0507bc074

              
	
                14

              	
                1

              	
                large
                  refrigerator

              	
                migali

              	
                6055699

              
	
                15

              	
                3

              	
                small
                  1 refrigerator

              	
                n/a

              	
                ucr27a

              
	
                16

              	
                 

              	
                 

              	
                n/a

              	
                ucr27a

              
	
                17

              	
                 

              	
                 

              	
                 

              	
                ucr27a

              
	
                18

              	
                1

              	
                small
                  2 door refrigerator

              	
                beverage
                  air

              	
                ucr48a

              
	
                19

              	
                2

              	
                register

              	
                posiflex

              	
                tp561000

              
	
                20

              	
                 

              	
                 

              	
                posiflex

              	
                tp560986

              
	
                21

              	
                1

              	
                modem

              	
                sprint

              	
                s4n4910473

              
	
                22

              	
                2

              	
                printer

              	
                epson

              	
                d6sg185468

              
	
                23

              	
                 

              	
                 

              	
                 

              	
                d6sg170265

              
	
                24

              	
                1

              	
                fax
                  machine

              	
                brother
                  fax

              	
                u60074g4j763940

              
	
                25

              	
                1

              	
                camera
                  modem

              	
                mitsubishi

              	
                54101809na

              
	
                26

              	
                2

              	
                neon
                  light (open)

              	
                transfotec
                  international

              	
                1305

              
	
                27

              	
                 

              	
                 

              	
                transfotec
                  international

              	
                1305

              
	
                28

              	
                1

              	
                drive
                  thru

              	
                transfotec
                  international

              	
                1305

              
	
                29

              	
                1

              	
                phone

              	
                 

              	
                n/a

              
	
                30

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                31

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                32

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                33

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                34

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                35

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                36

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                37

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                38

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                39

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                40

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Store:
                  Las Vegas - Warm 

                Springs
                  

              	
                 

              	
                 

              	
                Date
                  - 5/18/2007

              
	 	 	 	 	 
	 	
                Quantity

              	
                Type

              	
                Brand

              	
                Serial
                  #

              
	 	 	 	 	 
	
                EX)

              	
                1

              	
                4
                  group Espresso Machine

              	
                La
                  Marzocco

              	
                AB-123456789

              
	 	 	 	 	 
	
                1

              	
                2

              	
                automatic
                  espresso machine

              	
                Franke
                  sinfonia

              	
                6832

              
	
                2

              	
                 

              	
                 

              	
                Franke
                  sinfonia

              	
                36402288

              
	
                3

              	
                1

              	
                coffee
                  grinder

              	
                grind
                  master

              	
                141989mk

              
	
                4

              	
                1

              	
                coffee
                  brewer

              	
                fetco

              	
                470141061529.00

              
	
                5

              	
                4

              	
                large
                  airpots

              	
                luxus

              	
                n/a

              
	
                6

              	
                2

              	
                small
                  airpots

              	
                 

              	
                n/a

              
	
                7

              	
                15

              	
                blending
                  pitchers

              	
                 

              	
                n/a

              
	
                8

              	
                2

              	
                stainless
                  steel pumps

              	
                 

              	
                n/a

              
	
                9

              	
                7

              	
                plastic
                  pumps

              	
                 

              	
                n/a

              
	
                10

              	
                2

              	
                stainless
                  steel canisters

              	
                 

              	
                n/a

              
	
                11

              	
                2

              	
                ice
                  caddys

              	
                 

              	
                n/a

              
	
                12

              	
                2

              	
                scale

              	
                 

              	
                n/a

              
	
                13

              	
                1

              	
                commercial
                  ice machine

              	
                cornelius

              	
                6300628bc087

              
	
                14

              	
                1

              	
                large
                  refrigerator

              	
                arctic
                  air

              	
                n/a

              
	
                15

              	
                4

              	
                small
                  refrigerators

              	
                beverage
                  air

              	
                ucr27a

              
	
                16

              	
                 

              	
                 

              	
                beverage
                  air

              	
                ucr27a

              
	
                17

              	
                 

              	
                 

              	
                beverage
                  air

              	
                ucr27a

              
	
                18

              	
                 

              	
                 

              	
                beverage
                  air

              	
                ucr27a

              
	
                19

              	
                3

              	
                registers

              	
                sharp

              	
                5803770x

              
	
                20

              	
                 

              	
                 

              	
                sharp

              	
                58257301

              
	
                21

              	
                 

              	
                 

              	
                sharp

              	
                68052162

              
	
                22

              	
                1

              	
                modem

              	
                 

              	
                n/a

              
	
                23

              	
                2

              	
                printer

              	
                epson

              	
                j4mg050087

              
	
                24

              	
                 

              	
                 

              	
                epson

              	
                j4mg024064

              
	
                25

              	
                1

              	
                computer
                  monitor

              	
                 

              	
                n/a

              
	
                26

              	
                3

              	
                blenders

              	
                blendtec

              	
                s712v-11745

              
	
                27

              	
                 

              	
                 

              	
                blendtec

              	
                s712v-11746

              
	
                28

              	
                 

              	
                 

              	
                blendtec

              	
                i512v-11508

              
	
                29

              	
                2

              	
                neon
                  lights (open)

              	
                transfotec

              	
                n/a

              
	
                30

              	
                 

              	
                 

              	
                transfotec

              	
                n/a

              
	
                31

              	
                1

              	
                fax

              	
                brother

              	
                u61327b6j775201

              
	
                32

              	
                1

              	
                phone

              	
                GE

              	
                61257869

              
	
                33

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                34

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                35

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                36

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                37

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                38

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                39

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                40

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        2 - List of Contracts

      

      There
        are
        no vendor contracts to be assigned.

       

      
        	
                Business
                  Name

              	
                Phone
                  #

              	
                Product/Service
                  Offered

              
	
                7up
                  Bottling

              	
                702-795-7770

              	
                Beverages

              
	
                Baked
                  in the Sun

              	
                760-591-9045

              	
                Baked
                  Goods

              
	
                Bugs
                  Limited

              	
                702-648-6030

              	
                Pest
                  Control

              
	
                Cox
                  Communications

              	
                702-507-2000

              	
                Cable
                  TV

              
	
                Dish
                  Network

              	
                888-624-3474

              	
                Cable
                  TV

              
	
                Dr.Smoothie

              	
                888-466-9941

              	
                Smoothie
                  Boost

              
	
                Dot
                  it for Less

              	
                702-379-3099

              	
                Landscaping

              
	
                Embarq

              	
                800-786-6272

              	
                Tele
                  Communications

              
	
                Hardy
                  Breads

              	
                916-488-2790

              	
                Banana
                  Bread

              
	
                Lange

              	
                702-254-1908

              	
                Plumbing

              
	
                Las
                  Vegas Valley Water

              	
                800-252-2011

              	
                Water

              
	
                Meadow
                  Gold

              	
                702-839-6531

              	
                Dairy

              
	
                Mighty
                  Leaf

              	
                415-491-2650

              	
                Tea

              
	
                NovelTees

              	
                530-756-3377

              	
                Uniforms

              
	
                Real
                  Donuts

              	
                702-657-8127

              	
                Donuts

              
	
                Service
                  Associates

              	
                602-243-1880

              	
                Espresso
                  Maintenance

              
	
                Southwest
                  Linen

              	
                702-566-9005

              	
                Linen

              
	
                Sugar
                  Shots

              	
                925-946-9714

              	
                Sugar

              
	
                TDM

              	
                702-798-7950

              	
                AC,Refridgeration,
                  Ice Machine Repair

              

      

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      Schedule
        3 -- List of Real Property Leases

      

      1.)
        Patrick and Pecos - 6087 S. Pecos Rd., Las Vegas, Nevada, 89120

      

      2.)
        Charleston and Martin Luther King Boulevard - 1501 West Charleston Blvd.
        Las
        Vegas, Nevada, 89102

      

      3.)
        Tropicana and Harrison - 2840 E. Tropicana Ave., Las Vegas, Nevada,
        89121

      

      4.)
        Warmsprings & Arroyo Grande - 1659 W. Warm Springs Rd., Henderson, Nevada,
        89014

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        4 -- List of Excluded Assets

      

      Seller
        is
        engaged in the business of operating, offering and selling gourmet coffee
        franchises, which operates under the name Java Detour throughout the world
        and
        Buyer is the Master Franchisor in Nevada for the Java Detour, as granted
        via the
        Master Franchise Agreement, also known as “MFA” dated December 6, 2006 between
        the Seller and Buyer. Buyer is not purchasing any other asset of Seller other
        than the four (4) locations and Seller’s ability to personally future
        development of Java Detour locations.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Schedule
        5 -- List of Permitted Liens

      

      There
        are
        no permitted liens.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Schedule
        6 -- List of Assumed Liabilities

      

      The
        following real property leases:

      

      1.)
        Patrick and Pecos - 6087 S. Pecos Rd., Las Vegas, Nevada, 89120

      

      2.)
        Charleston and Martin Luther King Boulevard - 1501 West Charleston Blvd.
        Las
        Vegas, Nevada, 89102

      

      3.)
        Tropicana and Harrison - 2840 E. Tropicana Ave., Las Vegas, Nevada,
        89121

      

      4.)
        Warmsprings & Arroyo Grande - 1659 W. Warm Springs Rd., Henderson, Nevada,
        89014

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        1

      

      PROMISSORY
        NOTE 

      

      This
        PROMISSORY NOTE, dated as of July ___, 2007, is entered into by and between
        JDCO, Inc., a California corporation (the “Seller”) and Java Nevada, LLC, a
        Nevada limited liability company (the “Buyer”).

      

      WHEREAS,
        the Buyer and Seller have entered into that certain Asset Purchase Agreement
        dated as of July ____, 2007 (the “Purchase Agreement”), pursuant to which Seller
        is selling to Buyer all of the right, title and interest to the Assets (as
        defined in the Purchase Agreement).

      

      NOW
        THEREFORE, in consideration of the foregoing and for good and valuable
        consideration, the receipt and adequacy of which are hereby acknowledged,
        and
        intending to be legally bound, the parties hereto agree as follows:

       

      1. Capitalized
        terms used but not defined herein shall have the meanings given to them in
        the
        Purchase Agreement.

       

      2. Note
        Amount: $900,000.00

       

      3. Buyer,
        promises to pay to the order of Seller
        at
        the
        following address, 2121
        Second Street, Suite C105, Davis, CA 95618 or
        at
        such other place as the legal holder of this Promissory Note (the "Note")
        shall
        designate in writing, in coin or currency which at the time or times of payment
        shall be legal tender for the payment of public and private debts in the
        United
        States of America, the principal sum of Nine Hundred Thousand Dollars
        ($900,000.00) together with interest unpaid balance thereof at a fixed rate
        of
        eight (8%) per annum (the "Note Rate"), calculated on the basis of a three
        hundred sixty (360) day year and the actual number of days elapsed, accruing
        from the date of this Note and continuing until the entire principal amount
        has
        been paid in full.

       

      4. Said
        principal and interest shall be paid in the following manner:

       

      
        	 	
                a.

              	
                On
                  September 1, 2007, and on the same day for 24 succeeding months
                  (2 years)
                  thereafter, payments shall be made which shall each be in an amount
                  equal
                  to the interest which is then accrued hereunder and remains unpaid;
                  and

              

      

       

      
        	 	
                b.

              	
                Commencing
                  on the third (3rd)
                  anniversary of the date of the Note (the 25th
                  month) a sixty (60) month amortization schedule shall be created
                  for all
                  outstanding principal and interest and on such third (3rd) anniversary
                  date and on the same day for the next 35 months payments shall
                  be made
                  which shall be equal to the monthly payment of principal and interest
                  set
                  forth on the amoratization schedule for such
                  date.

              

      

       

      
        	 	
                c.

              	
                On
                  the fifth anniversary of the date of this Note ( the “Maturity Date”) a
                  payment shall be made in an amount which is equal to the entire
                  unpaid
                  principal balance hereunder plus all interest which is then accrued
                  hereunder and remains unpaid (the "Maturity
                  Payment").

              

      

      

      IN
        ADDITION TO THE FOREGOING, THIS NOTE 

      SHALL
        BE SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:

       

      
        	 	
                1.

              	
                Representations,
                  Warranties and Covenants.
                  To induce Seller to accept this Note, Buyer makes the following
                  representations, warranties and covenants which shall be deemed
                  to be
                  continuing representa-tions, warranties and covenants until payment
                  in
                  full of all amounts due and owing under this
                  Note:

              

      

       

      
        	 	
                a.

              	
                Buyer
                  is a limited liability company duly organized and validly existing
                  under
                  the laws of the State of Nevada and has all requisite power, authority
                  and
                  legal right to execute and deliver this Note and any other document,
                  agreement or certificate to which it is a party, or to which it
                  is bound
                  in connection with the Loan. Buyer has taken all necessary action
                  to
                  authorize the execution, delivery and performance of this Note
                  and of any
                  other document to which Buyer is a party or by which Buyer is bound
                  in
                  connection herewith.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                b.

              	
                Neither
                  this Note, nor any document to which Buyer is a party (or by which
                  Buyer
                  is bound) in connection herewith is prevented by, limited by, conflicts
                  in
                  any material respect with, or will result in a material breach
                  of,
                  violation of, or a material default (with due notice or lapse of
                  time, or
                  both) under, or the creation or imposition of any lien, charge
                  or
                  encumbrance of any nature whatsoever upon any of Buyer's property
                  or
                  assets by virtue of the terms, conditions or provisions of: (i)
                  any
                  indenture, evidence of indebtedness, loan or financing agreement,
                  or other
                  agreement or instrument of whatever nature to which Buyer is a
                  party or by
                  which Buyer is bound, or (ii) any provision of any existing law,
                  rule, regulation, order, writ, injunction or decree of any court
                  or
                  governmental authority to which Buyer is
                  subject.

              

      

       

      
        	 	
                c.

              	
                
                  This
                    Note, will constitute legal, valid and binding obligations of
                    Buyer
                    enforceable against Buyer in accordance with their respective
                    terms

                

              

      

       

      
        	 	
                d.

              	
                All
                  timely consents, approvals, orders or authorizations of, or registrations,
                  declarations, notices or filings with any governmental authority
                  (or
                  judicial proceeding), which may be required in connection with
                  the valid
                  execution and delivery of this Note , and the performance of any
                  of the
                  obligations hereunder, or thereunder, have been obtained or accomplished,
                  or will be obtained or accomplished as and when due, or are in
                  full force
                  and effect.

              

      

       

      
        	 	
                e.

              	
                Buyer
                  is not in violation of or in default with respect to any applicable
                  laws
                  and/or regulations which materially and adversely affect its business,
                  financial condition or properties. Buyer is not in violation or
                  default in
                  any material and adverse respect under any indenture, evidence
                  of
                  Indebtedness, loan or financing agreement or other agreement or
                  instrument
                  of whatever nature to which it is a party or by which it is bound,
                  a
                  default under which might have consequences that would materially
                  adversely affect its business, financial condition, properties
                  or
                  operations.

              

      

       

      
        	 	
                2.

              	
                Events
                  of Default.
                  The occurrence of any of the following events and the passage of
                  any
                  applicable notice and cure periods shall constitute an "Event of
                  Default"
                  hereunder and shall render all principle and interest under the
                  Note due
                  and payable upon demand by the
                  Seller:

              

      

       

      
        	 	
                a.

              	
                Any
                  representation or warranty made by Buyer in this Note, shall prove
                  to be
                  false, incorrect in any material respect as of the date when made,
                  or
                  shall hereafter become false or incorrect in any material
                  respect;

              

      

       

      
        	 	
                b.

              	
                Buyer
                  shall have failed to make any payment of interest and/or principal
                  which
                  is required hereunder, on the date when due, and such failure shall
                  have
                  remained uncured for a period of thirty (30) days after the date
                  when
                  due;

              

      

       

      
        	 	
                c.

              	
                Buyer
                  shall commence a voluntary case or other proceeding seeking liquidation,
                  reorganization or other relief with respect to its debts under
                  the
                  Bankruptcy Code or any bankruptcy, insolvency or other similar
                  law now or
                  hereafter in effect or seeking the appointment of a trustee, receiver,
                  liquidator, custodian or other similar official, for any substantial
                  part
                  of its property, or shall consent to any such relief or to the
                  appointment
                  or taking possession by any such official in any involuntary case
                  or other
                  pro-ceeding commenced against it;

              

      

       

      
        	 	
                d.

              	
                An
                  involuntary case or other proceeding shall be commenced against
                  Buyer
                  seeking liquidation, reorganization or other relief with respect
                  to its
                  debts under the Bankruptcy Code or any bankruptcy, insolvency or
                  other
                  similar law now or hereafter in effect or seeking the appointment
                  of a
                  trustee, receiver, liquidator, custodian or other similar official,
                  for
                  any substantial part of its
                  property;

              

      

       

      
        	 	
                e.

              	
                Buyer
                  shall make an assignment for the benefit of its creditors or admit
                  in
                  writing its inability to pay its debts generally as they become
                  due;
                  and

              

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	 	
                  f.

                	The occurrence of any event of default under
                  Section 14.1
                  or an uncured default under Section 14.2 of that certain Master
                  Franchise
                  Agreement, dated December 6, 2006, by and between the Seller and
                  the
                  Buyer, as amended to date. 

        

      

       

      
        	 	
                3.

              	
                Application
                  of Payments.
                  All payments which are made, and proceeds which are received, hereunder
                  shall be applied as follows:

              

      

       

      
        	 	
                a.

              	
                First,
                  towards complete satisfaction of any other amounts due hereunder,
                  (other
                  than principal and interest
                  hereunder);

              

      

       

      
        	 	
                b.

              	
                Second,
                  towards complete satisfaction of any accrued interest which may
                  be unpaid
                  under this Note; and

              

      

       

      
        	 	
                c.

              	
                Thereafter,
                  towards satisfaction of the unpaid principal amount under this
                  Note.

              

      

       

      
        	 	
                4.

              	
                Miscellaneous

              

      

       

      a. Notices: All
        notices, requests, reports, information or demand which any party hereto
        may
        desire or may be required to give to any other party hereunder, shall be
        in
        writing and shall be sent by facsimile or first-class certified or registered
        United States mail, postage prepaid, return receipt requested, and sent to
        the
        party at its address appearing below or such other address as any party shall
        hereafter inform the other party hereto by written notice given as
        aforesaid:

       

      
        
          	
                  If
                    to Buyer:

                	
                  Java
                    Nevada, LLC 

                
	 	
                  985
                    White Drive, Ste 100

                
	 	
                  Las
                    Vegas, Nevada 89119

                
	 	
                  Attention:
                    Joe Plante

                
	 	
                  With
                    Copy to Darren J. Welsh

                
	 	 
	
                  If
                    to Seller:

                	
                  JDCO,
                    Inc., a California corporation

                
	 	
                  2121
                    Second Street, Suite C105

                
	 	
                  Davis,
                    CA 95618

                

        

         

      

      All
        notices, payments, requests, reports, information or demands so given shall
        be
        deemed effective when sent, if sent by facsimile, or, if mailed, upon receipt
        or
        the expiration of the fifth (5th) day following the date of mailing, whichever
        occurs first, except that any notice of change of address shall be effective
        only upon receipt by the party to whom said notice is addressed.

       

      
        	 	
                b.

              	
                All
                  agreements, representations and warranties made herein shall survive
                  the
                  execution and delivery of the Note.

              

      

       

      
        	 	
                c.

              	
                Time
                  shall be of the essence of this
                  Note.

              

      

       

      
        	 	
                d.

              	
                This
                  Note is in all respects to be governed by the laws of the State
                  of Nevada
                  and if any action is taken to enforce the terms of this Note such
                  action
                  shall be commenced and maintained within the State of
                  Nevada.

              

      

       

      
        	 	
                e.

              	
                In
                  no event shall Seller be deemed or construed to be joint venturer
                  or
                  partner of Buyer.

              

      

       

      
        	 	
                f.

              	
                In
                  the event any one or more of the provisions contained in this Note
                  shall
                  be invalid, illegal or unenforceable in any respect, the validity,
                  legality and enforceability of the remaining provisions contained
                  herein
                  shall not in any way be affected or impaired
                  thereby.

              

      

       

      
        	 	
                g.

              	
                If
                  any action or proceeding is brought by any party against any other
                  party
                  under this Note, the prevailing party shall be entitled to recover
                  such
                  costs and attorney's fees as the court in such action or proceeding
                  may
                  adjudge reasonable.

              

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      IN
        WITNESS WHEREOF, this Promissory Note has been executed as of the date first
        hereinabove written.

      

      PURCHASER

      Java
        Nevada, LLC 

                          

      By:
        J
        Dapper

      Its:
        Manager

      

      SELLER

      JDCO,
        Inc.

                          

      By:
        ________________

      Its:
        _________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        2

      

      BILL
        OF
        SALE 

      

      This
        BILL
        OF SALE, dated as of July ______, 2007, is entered into by and between JDCO,
        Inc., a California corporation (the “Seller”) and Java Nevada, LLC, a Nevada
        limited liability company (the “Buyer”).

      

      WHEREAS,
        the Buyer and Seller have entered into that certain Asset Purchase Agreement
        dated as of July ___, 2007 (the “Purchase Agreement”), pursuant to which Seller
        is selling to Buyer all of the right, title and interest to the Assets (as
        defined in the Purchase Agreement).

      

      NOW
        THEREFORE, in consideration of the foregoing and for good and valuable
        consideration, the receipt and adequacy of which are hereby acknowledged,
        and
        intending to be legally bound, the parties hereto agree as follows:

       

      
        1.  Seller
          hereby sells, conveys, transfers, assigns, releases and quitclaims to Buyer
          and
          Buyer hereby purchases, acquires and accepts from the Seller, all of Seller's
          right, title, and interest in and to Assets as-is, where-is and subject
          to the
          representations, warranties, covenants and agreements set forth in the
          Purchase
          Agreement.

        

        2.  Capitalized
          terms used but not defined herein shall have the meanings given to them
          in the
          Purchase Agreement.

        

        3.  The
          sale,
          conveyance, transfer and assignment by the Seller, and the acceptance by
          the
          Buyer, of the Assets, shall be effective as of the date hereof.

        

        4.  The
          Seller shall from time to time, at the Buyer’s request and without further
          consideration, execute and deliver to the Buyer such instruments of transfer,
          conveyance and assignment as the Buyer may reasonably request to evidence
          further any transfer, conveyance and assignment of the Assets to the Buyer
          pursuant to this Bill of Sale.

        

        5.  This
          Bill
          of Sale shall be governed by and construed in accordance with the laws
          of the
          State of Nevada without regard to any conflicts of law provisions. Each
          of the
          Buyer and the Seller irrevocably and unconditionally: (a) agrees that any
          suit,
          action or legal proceeding arising out of or relating to this Bill of Sale
          brought by either party shall be brought in the courts of the State of
          Nevada in
          the Eighth Judicial District Court, County of Clark or the District Court
          of the
          United States, Nevada District; (b) consents to the exclusive jurisdiction
          of
          each such court in any suit, action or proceeding; and (c) waives any objection
          which it may have to the laying of venue of any such suit, action or proceeding
          in any of such courts and, in connection therewith, all defenses of lack
          of
          personal jurisdiction and forum inconveniencies.

        

        6.  This
          Bill
          of Sale may be executed in two or more counterparts, each of which shall
          be
          deemed to be an original, but all of which when taken together shall constitute
          one and the same instrument. The terms and conditions of this Bill of Sale
          shall
          be binding upon, inure to the benefit of, and be enforceable by the respective
          successors and permitted assigns of the parties hereto.

        
          	
                  PURCHASER

                	
                  SELLER

                
	
                  Java
                    Nevada, LLC 

                	
                  JDCO,
                    Inc.

                
	
                                      

                	
                                      

                
	
                  By:
                    J Dapper

                	
                  By:
                    ________________

                
	
                  Its:
                    Manager

                	
                  Its:________________

                

        

      

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        3

      

      ASSIGNMENT
        OF CONTRACTS

      

      There
        are
        no contracts to be assigned.

       

      PURCHASER

      Java
        Nevada, LLC 

                          

      By:
        J
        Dapper

      Its:
        Manager

      

      SELLER

      JDCO,
        Inc.

                          

      By:
        ________________

      Its:
        _________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        4

       

      ASSIGNMENT
        OF REAL PROPERTY LEASES 

       

      This
        ASSIGNMENT OF REAL PROPERTY LEASES (“Assignment”) is made and entered into as of
_______________________
        (the “
Effective Date” ), by and between JDCO, Inc. a California Corporation,
        hereinafter referred to as (“ Assignor” ), and Java Nevada, LLC, (“ Assignee” ).

      

      RECITALS
        

      

      A.
        Assignor and Assignee have entered into that certain Asset Purchase Agreement
        dated July 11, 2007 (the “ Agreement” ), pursuant to which Assignor is selling
        to Assignee the Assets more particularly described in the Agreement. Unless
        otherwise defined in this Assignment, capitalized terms shall have the meanings
        given to them in the Agreement. 

      

      B.
        Assignor is a party to certain real property leases (the “ Real Property Leases”
) that are listed on Schedule 3, attached to this Assignment and incorporated
        by
        reference and repeated as 1.) Patrick and Pecos - 6087 S. Pecos Rd., Las
        Vegas,
        Nevada, 89120; 2.) Charleston and Martin Luther King Boulevard - 1501 West
        Charleston Blvd. Las Vegas, Nevada, 89102; 3.) Tropicana and Harrison - 2840
        E.
        Tropicana Ave., Las Vegas, Nevada, 89121 and 4.) Warmsprings & Arroyo Grande
        - 1659 W. Warm Springs Rd., Henderson, Nevada, 89014.

       

      C.
        Pursuant to the terms of the Agreement, Assignor desires to assign Assignor's
        right, title, and interest in the Real Property Leases to Assignee, and Assignee
        desires to accept the assignment and assume all of the obligations associated
        with the Real Property Leases. 

      

      NOW,
        THEREFORE, in consideration of the payment and delivery to Assignor of all
        monies and instruments to be paid and delivered to Assignor by Assignee pursuant
        to the terms of the Agreement, the receipt of which Assignor acknowledges,
        Assignor and Assignee agree as follows: 

      

      1.
        Assignment of Real Property Leases. 

      Assignor
        assigns and transfers to Assignee all of its right, title, and interest in
        and
        to the Real Property Leases as of the Effective Date, subject to, in the
        case of
        any Real Property Lease that requires consent to assignment, the receipt
        of the
        required consent. 

      

      2.
        Acceptance of Assignment and Obligations. 

      Assignee
        agrees to and accepts the assignment of the Real Property Leases, and assumes
        and covenants to keep, perform, and fulfill, except as expressly provided
        in the
        Agreement, the executory portion of the terms, covenants, conditions, and
        obligations of each of the Real Property Leases required to be kept, performed,
        and fulfilled by Assignor under the Real Property Leases from and after the
        Effective Date. 

      

      3.
        Successors and Assigns. 

      This
        Assignment shall inure to the benefit of, and be binding on, successors and
        assigns of the parties. 

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      4.
        Counterparts. 

      This
        Assignment may be executed in any number of counterparts, each of which shall
        be
        deemed an original. The counterparts shall together constitute but one
        agreement. 

      

      IN
        WITNESS WHEREOF, the parties have executed this Assignment as of the Effective
        Date. 

      

      PURCHASER

      Java
        Nevada LLC 

                          

      By:
        J
        Dapper

      Its:
        Manager

      

      SELLER

      JDCO,
        Inc.

                          

      By:
        ________________

      Its:
        _________________

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        5

      

      Assignment
        of intangible property 

       

      This
        ASSIGNMENT OF INTANGIBLE PROPERTY (“Assignment”) is made and entered into as of
        July ___, 2007 (the “Effective Date”), by and between JDCO, Inc. a California
        Corporation, hereinafter referred to as (“Assignor”), and Java Nevada, LLC
        (“Assignee”). 

      

      RECITALS
        

      

      A.
        Assignor and Assignee have entered into that certain Asset Purchase Agreement
        dated July ___, 2007 (the “Agreement”), pursuant to which Assignor is selling to
        Assignee the Assets more particularly described in the Agreement. Unless
        otherwise defined in this Assignment, capitalized terms shall have the meanings
        given to them in the Agreement. 

      

      B.
        Assignor is the owner of certain intangible property rights, including the
        trade
        names, logos, copyrights, service marks, trademarks, patents, patent
        applications, licenses, and goodwill associated with the Business listed
        on
        Schedule 3 and Exhibit 4, attached to Purchase Agreement by and between JDCO,
        Inc. and Java Nevada, LLC and incorporated by reference (the “ Intangible
        Property” ). 

      

      C.
        Pursuant to the terms of the Agreement, Assignor desires to assign Assignor's
        right, title, and interest in the Intangibles to Assignee, and Assignee desires
        to accept the assignment and assume all of the obligations associated with
        the
        Intangible Property. 

      

      NOW,
        THEREFORE, in consideration of the payment and delivery to Assignor of all
        monies and instruments to be paid and delivered to Assignor by Assignee pursuant
        to the terms of the Agreement, the receipt of which Assignor acknowledges,
        Assignor and Assignee agree as follows: 

      

      1.
        Assignment of Intangible Property. 

      Assignor
        assigns and transfers to Assignee all of its right, title, and interest in
        and
        to the Intangible Property as of the Effective Date, subject to, in the case
        of
        any Intangible Property that requires consent to assignment, the receipt
        of the
        required consent. 

      

      2.
        Acceptance of Assignment and Obligations. 

      Assignee
        agrees to and accepts the assignment of the Intangible Property, and assumes
        and
        covenants to keep, perform, and fulfill, except as expressly provided in
        the
        Agreement, the executory portion of the terms, covenants, conditions, and
        obligations of each Intangible Property required to be kept, performed, and
        fulfilled by Assignor with respect to the Intangible Property from and after
        the
        Effective Date. 

       

      3.
        Successors and Assigns. 

      This
        Assignment shall inure to the benefit of, and be binding on, successors and
        assigns of the parties. 

       

      4.
        Counterparts. 

      This
        Assignment may be executed in any number of counterparts, each of which shall
        be
        deemed an original. The counterparts shall together constitute but one
        agreement. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Assignment as of the Effective
        Date. 

      

      PURCHASER

      Java
        Nevada, LLC 

                          

      By:
        J
        Dapper

      Its:
        Manager

      

      SELLER

      JDCO,
        Inc.

                          

      By:
        ________________

      Its:
        _________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        6

      

      Guaranty

      

      This
        GUARANTY (this “Guaranty”) is made as of July ___, 2007, by J Dapper and Don
        Forman (each a “Guarantor” and collectively the “Guarantors”), in favor of JDCO,
        Inc., a California corporation (“Seller”). 

      

      WHEREAS,
        Seller and Java Nevada, LLC ("Purchaser"), have entered into that certain
        Asset
        Purchase Agreement dated as of July ___, 2007 by and between Seller and
        Purchaser (“Purchase Agreement”), for the sale of the Assets (as defined in the
        Purchase Agreement) by Seller to Purchaser (the “Acquisition”); 

      

      WHEREAS,
        pursuant to the terms of the Purchase Agreement, Purchaser has agreed to
        pay
        Seller an aggregate of One Million One Hundred Thousand Dollars ($1,100,000)
        (“Purchase Price”) for the Assets, payable as follows: (i) Two Hundred Thousand
        Dollars ($200,000) upon closing of the Purchase Agreement, and (ii) that
        certain
        promissory note in the principal amount of Nine Hundred Thousand Dollars
        ($900,000) (the “Note”);

      

      WHEREAS,
        the Guarantors have a financial interest in Purchaser, and

      

      WHEREAS,
        as a condition precedent to Seller’s obligations under the Purchase Agreement,
        Seller has required that Guarantors execute and deliver this Guaranty to
        Seller.
        The Purchase Agreement, the Note, the Guaranty and all other documents executed
        by Purchaser in connection with the Acquisition are hereby referred to as
        the
“Acquisition Documents.”

      

      NOW
        THEREFORE, for and in consideration of consummating the Acquisition by Seller
        and as a material inducement to Seller to execute the Acquisition Documents,
        Guarantors hereby jointly, severally, absolutely, unconditionally and
        irrevocably guarantee the prompt payment by Purchaser of the Purchase Price
        and
        other sums payable by Purchaser under the Acquisition Documents and the faithful
        and prompt performance by Purchaser of each and every one of the terms,
        conditions and covenants of the Acquisition Documents to be kept and performed
        by Purchaser.

      

      Seller
        and the Guarantors hereby agree as follows:

       

      
        1.  If
          at any
          time Purchaser defaults on any obligation under the Acquisition Documents,
          the
          Guarantors will promptly pay, upon demand, such sums to Seller in good
          funds
          necessary to cure said default or perform such obligation and immediately
          take
          any action necessary to cure said default. Seller may enforce this Guaranty
          upon
          a default under the Acquisition Documents notwithstanding any dispute between
          Seller and Purchaser with respect to either the existence of the default
          or of
          any counterclaim, set-off or other claim that Purchaser may allege against
          Seller. Seller shall have the right to proceed against the Guarantors without
          exhausting its rights against Purchaser first. The Guarantors’ liability under
          this Guaranty shall continue until each and every obligation of Purchaser
          under
          the Acquisition Documents has been duly paid and/or performed. 

        

        2.  Without
          notice to or consent of the Guarantor and without in any way altering,
          waiving,
          exonerating, limiting or otherwise affecting this Guaranty or the liability
          of
          the Guarantors hereunder: (a) any of the provisions of any of the Acquisition
          Documents may at any time and from time to time be modified or amended
          by
          agreement, express or implied, between Seller and Purchaser; (b) Seller may
          at any time and from time to time assign its interest in the Note and this
          Guaranty, either absolutely or as security; (c) Seller may release or discharge
          any person liable under the Acquisition Documents (including Purchaser)
          or any
          other guarantor or any security or collateral that Seller may at any time
          hold
          for the performance of Purchaser or its obligations under the Note; (d)
          Seller
          may foreclose or otherwise realize on any security or collateral for the
          performance by Purchaser of its obligations under the Acquisition Documents;
          (e)
          Seller may accept or make compositions or other arrangements or file or
          refrain
          from filing a claim in any bankruptcy proceeding of Purchaser, the Guarantors
          or
          any other guarantor; (f) Seller and Purchaser may amend any provision of
          any
          Acquisition Document; and (h) Seller may deal with Purchaser or any other
          guarantor or any security or collateral held by Seller as Seller may determine
          in its sole and absolute discretion. The Guarantors specifically agree
          their
          respective liability hereunder shall continue even if Seller alters any
          obligations of Purchaser under the Acquisition Documents in any respect
          or if
          the Guarantors’ remedies or rights against Purchaser are in any way impaired or
          suspended without notice to or the consent of the Guarantors.

        

        3.  This
          Guaranty is a guarantee of payment and performance and not of collectability.
          This Guaranty is not conditioned or contingent upon the genuineness, validity,
          regularity or enforceability of the Acquisition Documents or the obligations
          contained therein. The Guarantors specifically agree that they shall remain
          liable even if Purchaser has no liability at the time of execution or if
          Purchaser, at any time, ceases to be liable. This Guaranty and the liability
          of
          the Guarantors will not be altered, limited or otherwise affected by reason
          of
          the dissolution of Purchaser or the discharge of Purchaser’s
          liability hereunder by operation of law or otherwise. The Guarantors
          specifically agree that liability under this Guaranty may be larger in
          amount or
          otherwise more burdensome than the liability of Purchaser under the Acquisition
          Documents.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        4.  Each
          Guarantor hereby waives (a) diligence and all demands, protests, and
          presentations or presentments; (b) notice of every kind or nature to the
          Guarantors, to Purchaser or to any other person, including notices of (i)
          protest, dishonor, nonpayment or nonperformance, or acceptance of this
          Guaranty,
          (ii) any default under the Acquisition Documents or the accrual of any
          obligation hereunder, and (iii) the election by Seller to pursue any right
          or
          remedy available to Seller upon a default by Purchaser under the Acquisition
          Documents; (c) the right to plead any and all statutes of limitations as
          a
          defense to the liability of the Guarantor hereunder or the enforcement
          of this
          Guaranty; (d) all principles or provisions of law or equity that conflict
          with
          any of the provisions of this Guaranty or would limit or impair Seller’s rights
          hereunder; and (e) any right of subrogation. This Guaranty and the liability
          of
          Guarantors hereunder will not be altered, limited or otherwise affected
          by
          Seller’s failure to enforce or delay in enforcing any of the rights or remedies
          of Seller under the Acquisition Documents or at law or in equity. No failure
          or
          delay will be construed as a waiver of any such rights or
          remedies.

        5.  (a)  Without
          in any way limiting the generality of the waivers and agreements set forth
          above, this Guaranty and the liability of the Guarantors hereunder will
          not be
          altered, limited or otherwise affected by: (i) the release or discharge
          of
          Purchaser in any creditor proceeding, insolvency proceeding, receivership,
          bankruptcy or other debtor relief proceeding (each and all of which shall
          hereinafter be referred as a “Purchaser Insolvency Proceeding”); (ii) the
          impairment, limitation or modification of the liability of Purchaser or
          the
          estate of Purchaser, (iii) the impairment, limitation or modification of
          any
          remedy that Seller may have for the enforcement of Purchaser’s liability
          resulting from the operation of any present or future provision of any
          statute
          or decisional law applicable to or enforced in any Purchaser Insolvency
          Proceeding; or (iv) the rejection or disaffirmance of the Acquisition or
          any
          obligation to be paid or performed by Purchaser in any Purchaser Insolvency
          Proceeding. Any payment due from Purchaser that accrues after the commencement
          of any Purchaser Insolvency Proceeding (or, if any payment ceases to accrue
          by
          operation of law as a result of the commencement of a Purchaser Insolvency
          Proceeding, such payment as would have accrued if the Purchaser Insolvency
          Proceeding had not commenced) shall be included in the Guarantor’s obligations
          hereunder.

         

        (b)  The
          Guarantors will file all claims against Purchaser in any Purchaser Insolvency
          Proceeding where the filing of the claims is permitted or required by law
          on any
          indebtedness of Purchaser to the Guarantors. The Guarantors hereby assign
          to
          Seller all rights of the Guarantors with respect to each and every claim.
          Seller
          will have the sole right to accept or reject on behalf of the Guarantors
          any
          plan proposed in such Purchaser Insolvency Proceeding and to take any other
          action that the Guarantors otherwise would be entitled to take in the Purchaser
          Insolvency Proceeding. If the Guarantors do not file any such claim, then
          Seller, as attorney in fact for the Guarantors, is hereby authorized (but
          is not
          obligated) to do so in the name of the Guarantors or, in Seller’s discretion, to
          assign the claim and to file a proof of claim in the name of Seller’s assignee
          or nominee. In any Purchaser Insolvency Proceeding, the person or persons
          authorized and instructed to pay to Seller the full amount of any such
          claim are
          hereby authorized and instructed to pay to Seller the full amount of any
          such
          claim unless and until all of the obligations of Purchaser under the Acquisition
          Documents have been duly paid and performed, and, to the extent necessary
          for
          such purpose, the Guarantors hereby assigns to Seller all of the Guarantors’
rights to any such payments or distributions. 

         

        6.
            Each
          Guarantor jointly and severally represents and warrants to Seller as
          follows:

        (a)  Each
          Guarantor now has and will continue to have full and complete access to
          any and
          all information concerning the Acquisition Documents, the value of the
          assets
          owned or to be acquired by Purchaser, Purchaser’s financial status and its
          ability to pay and perform the obligations under the Acquisition Documents.
          Each
          Guarantor further represents and warrants to Seller that the Guarantors
          have
          reviewed and approved the Acquisition and are fully informed of the remedies
          Seller may pursue in the event of default. So long as any of the Guarantors’
obligations hereunder remain unsatisfied or owing to Seller, the Guarantors
          will
          keep fully informed of Purchaser’s financial condition and the performance of
          Purchaser’s obligations under the Acquisition Documents. Seller has no
          obligation to give notice to the Guarantors in the event of any change
          in
          Purchaser’s financial condition or the performance (or failure of performance)
          by Purchaser of its obligations under the Acquisition Documents.

         

        (b)  No
          consent of any other person or entity, including any creditor of the Guarantors,
          and no license, permit, approval or authorization of, exemption by, notice
          or
          report to, or registration, filing declaration with, any governmental authority,
          is required to be obtained or made by the Guarantors in connection with
          or as a
          condition to the execution of the Guaranty.

         

        (c)  This
          Guaranty has been duly authorized, executed and delivered by the Guarantors,
          and
          constituted a legal, valid and binding obligation of the Guarantors and
          is
          enforceable against the Guarantors in accordance with its
          terms.

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        (d)  The
          execution, delivery and performance of this Guaranty will not violate
          (i) any provision of any law or regulation, (ii) any order, judgment,
          award or decree of any court, arbitrator or governmental authority binding
          upon
          the Guarantors, or (iii) any mortgage, indenture, contract or other
          agreement that the Guarantors or any of the Guarantors’ assets may be bound. The
          execution, delivery and performance of this Guaranty will not result in
          or
          require the creation or imposition of any lien on the Guarantors’ property,
          assets or revenues.

        

        8.  Within
          thirty (30) days after the Guarantors receive a request from Seller, the
          Guarantors will execute and deliver to Seller, and to any third party designated
          by Seller, a certificate reciting that (a) this Guaranty is unmodified
          and in
          full force and effect; and (b) no event has occurred which, with the passage
          of
          time or notice or both, would constitute or entitle the Guarantors to any
          defense, offset, counterclaim or exoneration under this Guaranty. The Guarantors
          expressly agree that any certificate executed and delivered by the Guarantors
          may be relied upon by Seller and any other person to whom the certificate
          is
          delivered without independent investigation or examination to determine
          the
          accuracy, reasonableness, or good faith of the information and recitals
          contained therein.

        

        9.  Guarantors
          do hereby subrogate all existing or future indebtedness of Purchaser to
          Guarantors to the obligations owed to Seller under the Purchase Agreement
          and
          this Guaranty.

        

        10.  (a)  This
          Guaranty will be binding upon and inure to the benefit of the parties hereto
          and
          their respective heirs, executors, administrators, successors, permitted
          assigns
          and representatives. Any married person who signs this Guaranty expressly
          agrees
          that recourse may be had against community property assets and against
          his or
          her separate property for the satisfaction of all obligations herein
          guaranteed.

        

        (b)  In
          the
          event any action be brought by said Seller against Guarantors hereunder
          to
          enforce the obligation of Guarantors hereunder, the unsuccessful party
          in such
          action shall pay to the prevailing party therein a reasonable attorney's
          fee
          which shall be fixed by the court.

        

        (c)  This
          Guaranty is subject to amendment only by a writing that makes reference
          to this
          Guaranty and is signed by all parties hereto.

        

        (d)  This
          Guaranty will be governed by and construed under the laws of the State
          of
          Nevada.

        

        (e)  This
          Guaranty may be executed in counterparts, each of which shall constitute
          an
          original, but all of which together shall constitute one (1) and the same
          instrument.

      

      

      IN
        WITNESS WHEREOF, this Guaranty is effective as of the date first written
        above.

      

      
        	 	 	 	 
	
                
By: J
                Dapper 	 	 	
                
By: Don
                FormanBAREBOAT
        CHARTER

      

      This
        Bareboat Charter
        (“this Charter”) is
        made
        by and between GREYSTONE MARITIME HOLDINGS, LLC ("Owner")
        and
        FRACTIONAL MARINE, INC. ("Charterer"),
        as of
        July 30, 2007.

      

      
        	
                1.

              	
                Summary.

              

      

      

        

          
            	
                    (a)

                  	 	
                    Owner
                      and its Place of Business:

                  	
                    GREYSTONE
                      MARITIME HOLDINGS, LLC.

                  
	 	 	 	
                    152
                      W. 57th
                      Street

                  
	 	 	 	
                    60th
                      Floor

                  
	 	 	 	
                    New
                      York, N.Y. 10019-3310

                  
	 	 	 	 
	
                    (b)

                  	 	
                    Charterer
                      and its Place of Business

                  	
                    :
                      FRACTIONAL MARINE, INC.

                  
	 	 	 	
                    405-A
                      Atlantis Road, Suite 110

                  
	 	 	 	
                    Cape
                      Canaveral, FL 32920

                  
	 	 	 	 
	
                    (c)

                  	 	
                    Vessel:

                  	
                    M/V
                      Babe

                  
	 	 	 	
                    British
                      Registry Official Number: 734513

                  
	 	 	 	
                    Flag:
                      Cayman Islands

                  
	 	 	 	
                    Registered
                      Gross Tonnage: 131

                  
	 	 	 	
                    Net
                      Tonnage: 39

                  
	 	 	 	
                    Year
                      Built: 2001

                  
	 	 	 	
                    Length:
                      25.64 meters (92 feet)

                  
	 	 	 	
                    Hull
                      Depth: 3.18 meters

                  
	 	 	 	
                    Hull
                      Breadth: 6.15 meters

                  
	 	 	 	 
	
                    (d)

                  	 	
                    Certification:

                  	
                    N/A

                  
	 	 	 	 
	
                    (e)

                  	 	
                    Place
                      of Delivery and Berth:

                  	
                    As
                      mutually agreed by the parties.

                  
	 	 	 	 
	
                    (f)

                  	 	
                    Scheduled
                      Delivery Date:

                  	
                    July
                      30, 2007

                  
	 	 	 	 
	
                    (g)

                  	 	
                    Canceling
                      Date:

                  	
                    This
                      Charter is not subject to cancellation after execution except
                      as provided
                      herein.

                  
	 	 	 	 
	
                    (h)

                  	 	
                    Place
                      of Redelivery:

                  	
                    No
                      Redelivery is contemplated hereunder

                  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                    (i)

                  	 	
                    Trading
                      Limits:

                  	
                    As
                      allowed by the Navigational Limits imposed by the Vessel’s
                      insurance.

                  
	 	 	 	 
	
                    (j)

                  	 	
                    Charter
                      Period (“Term”):

                  	
                    12
                      months, or as terminated by the terms hereof from Commencement
                      Date

                  
	 	 	 	 
	 	 	 	 
	
                    (k)

                  	 	
                    Option
                      to Extend Term:

                  	
                    None.

                  
	 	 	 	 
	
                    (l)

                  	 	
                    Charter
                      Hire:

                  	
                    As
                      per attached May 2, 2007 Letter Agreement with Attachments,
                      Exhibit “1.”
                      Charter hire shall be $21,354.17 per month payable as set forth
                      in Section
                      11 below.

                  
	 	 	 	 
	
                    (m)

                  	 	
                    Security
                      Deposit:

                  	
                    None.

                  
	 	 	 	 
	
                    (n)

                  	 	
                    Insurance
                      (marine):

                  	
                    Hull
                      & Machinery min:

                  
	 	 	 	
                    $2,500,000.00

                  
	 	 	 	
                    P&I:   
                      $5,000,000.00

                  
	 	 	 	
                    Pollution:
                      Statutory, Not less than 

                  
	 	 	 	
                    $1,000,000.00

                  
	
                    (o)

                  	 	
                    Mortgagees:

                  	
                    None

                  

          

        

        

          
            
               

              
              

            

            
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                  2.

                	
                  Certain
                    Definitions;
                    Construction.

                

        

      

      

      (a)
        In
        this Charter, the following terms shall have the meanings thereby assigned
        to
        them:

      

      "Affiliate"
        shall
        mean with respect to a specified Person (i) any Person directly or indirectly
        controlling, controlled by, or under common control with such Person, (ii)
        any
        Person owning or controlling ten (10%) percent or more of the outstanding
        voting
        interests of such Person, and (iii) any member, manager, officer, director
        or
        general partner of such Person, or any Person who is a member, manager, officer,
        director general partner, trustee, or a holder of ten (10%) percent or more
        of
        the voting interests of any Person described in classes (i) through (iii)
        of
        this sentence. For purposes of this definition, the term "controls," "is
        controlled by," or "is under common control with" shall mean the possession,
        direct or indirect, of the power to direct or cause the direction of the
        management policies of a Person or entity, whether through the ownership
        of
        voting securities, by contract or otherwise.

      
        
          

          
          

        

        
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            2 of 24

          
            

          

        

        
          
          

        

      

      

      

      “Authorized
        Representative”
        shall
        mean the person designated by Owner and Charterer pursuant to Section 49
        hereof
        to make decisions which require the approval of Owner and Charterer, as the
        case
        may be, pursuant to the terms hereof.

      

      "Bankruptcy"
        shall
        mean, with respect to any Person, a “Voluntary Bankruptcy” and an “Involuntary
        Bankruptcy.” A “Voluntary
        Bankruptcy”
        means,
        with respect to any Person, the inability of such Person generally to pay
        its
        debts as such debts become due, or an admission in writing by such Person
        of its
        inability to pay its debts generally or a general assignment by such Person
        for
        the benefit of creditors; the filing of any petition or answer by such Person
        seeking to adjudicate it a bankrupt or insolvent, or seeking for itself any
        liquidation, winding up, reorganization, arrangement, adjustment, protection,
        relief, or composition of such Person or its debts under any law relating
        to
        bankruptcy, insolvency or reorganization or relief of debtors, or seeking,
        consenting to, or acquiescing in the entry of an order for relief or the
        appointment of a receiver, trustee, custodian or other similar official for
        such
        Person or for any substantial part of its property; or corporate action taken
        by
        such Person to authorize any of the actions set forth above. An Involuntary
        Bankruptcy means, with respect to any person, without the consent or
        acquiescence of such Person, the entering of an order for relief or approving
        a
        petition for relief or reorganization of any other petition seeking any
        reorganization, arrangement, composition, readjustment, liquidation, dissolution
        or other similar relief under any present or future bankruptcy, insolvency
        or
        similar statute, law or regulation, or the filing of any such petition against
        such Person which petition shall not be dismissed within ninety (90) days,
        or,
        without the consent or acquiescence of such Person, the entering of an order
        appointing a trustee, custodian, receiver, or liquidator of such Person or
        of
        all or any substantial part of the property of such Person which order shall
        not
        be dismissed within sixty (60) days.

      

      "Berth"
        shall
        mean the location of the Vessel used by the Charterer during the term
        hereof.

      

      "Business
        Day"
        shall
        mean any day which is not a Saturday, Sunday or legal holiday on which banks
        are
        required to be closed in Broward County, Florida.

      

      "Canceling
        Date"
        shall
        mean the date described in Item (g) of the Summary by which Charterer shall
        have
        the right to cancel this Charter, except as provided elsewhere in this
        Charter.

      

      "Charter"
        shall
        mean this Bareboat Charter and any amendments thereto, and shall not be
        construed to mean a time charter or a voyage charter.

      

      "Commencement
        Date"
        shall
        mean the date upon which the Vessel is delivered by Owner to Charterer at
        the
        Place of Delivery described in Item (e) of the Summary.

      

      "Day"
        shall
        mean a calendar day unless specifically stated to be otherwise.

      

      "Default
        Rate"
        shall
        mean eighteen (18%) percent per annum or the highest rate permitted by the
        governing law, whichever is less.

      
        
          

          
          

        

        
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            3 of 24

          
            

          

        

        
          
          

        

      

      

      

      "Effective
        Date"
        shall
        mean the last date upon which (i) both Owner and Charterer shall have fully
        executed this Charter, (ii) Charterer shall have furnished to Owner evidence
        that all Required Insurance is in full force and effect in accordance with
        the
        terms of Section 14 hereof, (iii) all Required Approvals for the operation
        of
        the Vessel for the Permitted Use shall have been obtained and true and complete
        copies thereof furnished to Owner, and (iv) Charterer shall have furnished
        a
        copy of its authority to do business from the State of Delaware and any
        fictitious name filing for any assumed name under which it will do business
        and
        authority to transact the contemplated trade in which the Vessel will be
        employed by an governmental authority.

      

      "Event
        of Default"
        shall
        mean any one of the events described in Sections 27(a) and 28(a)
        hereof.

      

      "Extended
        Term"
        shall
        mean any period beyond the Initial Term described in Section 4(b)
        hereof.

      

      "Force
        Majeure"
        shall
        mean an act of God, act of war, perils of the seas, act of public enemies,
        pirates or assailing thieves, arrest or restraint of princes, ruler of people,
        or seizure under legal process through no fault of Charterer provided bond
        is
        not promptly furnished to release the Vessel; strike or lockout or stoppage
        or
        restraint of labor from whatever cause, either partial or general; or a riot
        or
        civil commotion which prevents the operation of the Vessel for the Permitted
        Use.  

      

      "Governmental
        Authority(ies)"
        means
        the government of the United States of America, any State of the United States,
        any political subdivision of any State, (i) every agency, department, division,
        commission, subdivision and instrumentality of the foregoing, including,
        but not
        limited to, the United States Coast Guard, any or all of which have jurisdiction
        over the Vessel or any part thereof; and (ii) the government of any foreign
        country which may have jurisdiction over the Vessel by virtue of the Charterer’s
        operation of the Vessel within that country’s territorial waters.

      

      "Hire"
        shall
        mean the charter hire rate described in Item (l) of the Summary and further
        explained in Section 11 herein.

      

      "Legal
        Requirement(s)"
        shall
        mean any and all laws, orders, codes, ordinances, regulations, treaties,
        conventions and other applicable requirements of all Governmental Authorities,
        now in force, or which may hereafter be in force, pertaining to, or affecting
        the condition, use, operation, maintenance or occupancy of the
        Vessel.

      

      "Maintenance
        Program"
        shall
        mean the systems, procedures and controls described in the PMS Manual (as
        defined below) which was delivered by Owner to Charterer prior to or at the
        time
        of the execution and delivery of this Charter, and which may be updated from
        time to time by Owner, by a notice to Charterer pursuant to the Notices section
        below.

      
        
          

          
          

        

        
          Page
            4 of 24

          
            

          

        

        
          
          

        

      

       

      "Major
        Component"
        shall
        mean a component of the Vessel or her essential items of machinery or equipment
        which, if it fails, prevents the operation of the Vessel or her essential
        items
        of machinery or equipment.

      

      “Mortgage”
        N/A.

      

      "Owner"
        shall
        mean GREYSTONE MARITIME HOLDINGS, LLC, a Delaware Limited Liability
        Company.

      

      "Permitted
        Use"
        shall
        mean the use to which the Vessel may be put pursuant to Section 6(a)
        hereof.

      

      "Person"
        shall
        mean any individual, sole proprietorship, joint venture, partnership,
        corporation, limited liability company, association, trust, estate, government
        (or any branch, subdivision or agency thereof), governmental, administrative
        or
        regulatory authority, or any other entity or any nature whatsoever.

      

      "Personal
        Property"
        shall
        mean all ships stores, outfit and items of equipment, furniture, appliances,
        and
        effects which can be removed from the Vessel without material damage to the
        Vessel, including, but not limited to, those items described in Exhibit
        "2"
        attached
        hereto and made a part hereof.

      

      "PMS
        Manual"
        - Not
        Applicable to this Agreement.

      

      "Required
        Approvals"
        shall
        mean any and all permits, licenses, approvals, authorizations and any other
        permits, licenses, approvals, authorizations and consents required to be
        obtained from any Governmental Authority or other Persons, in connection
        with or
        necessary for the use, maintenance or operation of the Vessel or any aspect
        thereof. Wherever the term "permit" or "approval," or any combination or
        derivation thereof is used herein, such term shall refer to such of the permits
        and approvals as may then be applicable or required.

      

      “Required
        Insurance"
        shall
        mean the insurance required to be maintained by Charterer pursuant to Section
        14
        hereof.

      

      "Required
        Maintenance Reports"
        shall
        mean the reports and other documentation with respect to the maintenance
        of the
        Vessel required to be furnished to Owner by Charterer pursuant to any demand
        made by Owner to Charterer in writing for the Vessel’s maintenance.

      

      "Security
        Deposit"
        shall
        mean the amount set forth in Item (m) of the Summary for the purposes described
        in Section 12, according to the requirements of Section 12.

      

      "Summary"
        shall
        mean Section 1 hereof.

      
        
          

          
          

        

        
          Page
            5 of 24

          
            

          

        

        
          
          

        

      

      

      "Taking"
        shall
        mean if all or any part of any property owned or leased by Charterer which
        forms
        an integral part of the Berth shall be taken for any public or quasi-public
        use
        under any statute or by right of eminent domain or by private purchase in
        lieu
        thereof of such that the ownership or lease is terminated.

      

      “Term"
        shall
        mean the Term of this Charter as set forth in Section 4(b) hereof.

      

      "Vessel"
        shall
        mean M/V
        Babe,
        with
        particulars as set forth in Exhibit
        "1"
        attached
        hereto, the Transcript of British Registry having Official Number 734513,
        and
        including all spare parts, tackle, apparel and Personal Property on board.
        

      
        (b)    
            It is agreed that in the construction and interpretation of the
          terms of this Charter, the rule of construction that a document is to be
          construed most strictly against the party who prepared the same shall not
          be
          applied, it being agreed that both parties hereto have participated in
          the
          preparation of the final form of this Charter.

        

        (c)     
           The captions, clause numbers, article numbers and table of contents
          appearing in this Charter are inserted only as a matter of convenience
          and in no
          way define, limit, construe, or describe the scope or intent of such clauses
          or
          articles of this Charter nor in any way affect this Charter.

        

        (d)    
            Words of masculine gender shall be deemed and construed to include
          correlative words of the feminine and neuter genders. Wherever used in
          this
          Agreement, "herein," "hereunder," "hereof," "herein before," "hereinafter"
          and
          other equivalent words refer to this Agreement and not solely to the particular
          portion thereof in which any such word is used; "any" means "any and all;"
          "include" and "including" each are without limitation; "may not" and other
          negative forms of the verb "may" each are prohibitory; "will," "must,"
          "shall"
          and "should" each are mandatory; and "approve" or "consent" or "agree"
          or
          derivations of said words or words of similar import, unless otherwise
          provided
          herein, mean the prior approval, consent or agreement, in writing of the
          person
          holding the right to approve, consent or agree with respect to the matter
          in
          question. References to (i) agreements and other contractual instruments
          shall
          be deemed to include all subsequent amendments thereto or changes therein
          entered into in accordance with their respective terms, and (ii) any Person,
          including their heirs, personal representatives, permitted successors and/or
          assigns, as applicable. Terms not defined in this Section 2 have the meanings
          assigned to them elsewhere in this Agreement, and references to Sections,
          unless
          otherwise specified, are to Sections of this Charter. 

      

       

      
        	
                3.

              	
                Charter;
                  Delivery; and Sub-Charter.

              

      

      

      (a)      
        Upon and subject to the terms and conditions of this Charter, Owner agrees
        to
        let and devise, and Charterer agrees to hire, the Vessel. Charterer acknowledges
        that, prior to the Effective Date, it shall have no rights under this Charter,
        including, but not limited to, the right to require Owner to move the Vessel
        and
        deliver it to the Berth or to operate or have any possessory right in and
        to the
        Vessel, except for the right of inspection described in Section 8(a)
        below.

      
        
          

          
          

        

        
          Page
            6 of 24

          
            

          

        

        
          
          

        

      

      (b)     
        The Vessel shall be delivered and taken over by Charterer at the port or
        place
        indicated in Item (e) of the Summary. However, this Charter shall start and
        Charterer’s obligation to pay Hire shall start after the Vessel has been ready
        to be delivered by Owner to Charterer, at the place of delivery set forth
        in
        Summary 1(e) hereof. 

      

      (c)     
        The Vessel shall be properly documented by Owner at time of delivery, fully
        sound and in compliance with all Legal Requirements. Certificates that have
        lapsed, such as life raft certificates, fire extinguishers and cruising permit
        before delivery. Notwithstanding anything in the preceding sentence to the
        contrary, it shall be Charterer's responsibility at its cost, to obtain any
        necessary governmental approval with respect to activities involving the
        crew,
        including, but not limited to, life safety drills and the intended operation
        of
        the Vessel. Charterer accepts Vessel as seaworthy and will not raise any
        claim
        that the Vessel is not seaworthy or purchase any in
        rem
        lien
        rights against the Vessel for breach of this charter, if any.

      

      (d)      The
        delivery of the Vessel to, and the taking over of the Vessel by, Charterer
        shall
        constitute a full performance by the Owner of all the Owner's obligations
        under
        this Section 3.

      

      (e)     
        Charterer shall, without the necessity of any further act, be deemed to have
        unconditionally accepted the Vessel as of the first day of the Charter Period
        and AS BEING IN GOOD WORKING ORDER, REPAIR AND APPEARANCE AND WITHOUT DEFECT
        OR
        INHERENT VICE IN CONDITION, SEAWORTHINESS, DESIGN, OPERATION OR FITNESS FOR
        USE
        IN A TRADE, WHETHER OR NOT DISCLOSED OR DISCOVERABLE BY CHARTERER AS OF
        COMPLETION OF THE HAUL OUT AND BOTTOM SURVEY IF THERE IS NOT MORE THAN
        TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) OF BOTTOM RELATED REPAIRS NEEDED.
        

       

      (f)     
        All
        sub-charterers of the Vessel shall be subject to the non-monetary terms of
        this
        charter and Charterer shall be required to obtain a statement acceptable
        to
        Owner by any sub-charterer that the sub-charterer shall be bound by the terms
        of
        this charter and all sections and conditions contained therein, including
        all
        provisions of Section 3.

      

      
        	
                4.

              	
                Time
                  for Delivery; Term of
                  Charter.

              

      

      

      (a)     
        The Vessel shall not be delivered before the Scheduled Delivery Date indicated
        in Item (f) of the Summary, unless delivered prior thereto with Charterer's
        written consent. Owner shall keep Charterer closely advised of possible changes
        in both Vessel’s position and status. 

      

      (b)     
         Subject to the terms and conditions as are provided herein, Owner shall
        let and Charterer shall hire the Vessel for a period of three hundred sixty-five
        (365) days from the Commencement Date (the “Initial
        Term”),
        or as
        otherwise terminated by this Agreement. When the Commencement Date is
        established, Owner and Charterer shall execute a Commencement Agreement in
        the
        form set forth in Exhibit
        "3"
        attached
        hereto.

      
        
          

          
          

        

        
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            7 of 24

          
            

          

        

        
          
          

        

      

      

      

      
        	
                5.

              	
                Canceling. 

              

      

       

      Charterer
        shall not have the ability to cancel this Charter Party except for the
        provisions set forth in other parts of this Agreement.

      

      
        	
                6.

              	
                Trading
                  Limits.

              

      

      

      (a)      
        The Vessel shall be operated within the limits of its Document and any limits
        imposed by any governmental authority who has the ability to control the
        Vessel’s operations.

      

      (b)      
        Charterer shall not employ the Vessel or suffer the Vessel to be employed
        otherwise than in conformity with the terms of the instruments of insurance
        (including any warranties expressed or implied therein) without first obtaining
        the written consent to such employment of the insurers.

      

      (c)      
        Charterer also undertakes not to employ the Vessel or suffer her employment
        in
        any trade or business which is forbidden by any applicable Legal Requirements
        or
        is otherwise illicit or in carrying illicit or prohibited goods of any manner
        whatsoever which may render her liable to condemnation, destruction, seizure
        or
        confiscation. Nor shall Charterer carry hazardous materials, weapons, explosives
        or any other cargo in violation of any Legal Requirement. Notwithstanding
        any
        other provisions contained in this Charter, it is agreed that nuclear fuels
        or
        radioactive products or wastes are specifically excluded from the cargo
        permitted to be loaded or carried under this Charter.

      

      
        	
                7.

              	
                Survey
                  on Delivery and Re-delivery.

              

      

      

      (a)     
        The
        Vessel is intended to be sold to Charterer or a third-party and shall not
        be
        re-delivered. 

      

      (b)     
        Owner,
        at
        Owner’s expense, will pay for an underwater hull survey not to exceed Twelve
        Thousand Dollars ($12,000.00) inclusive of time and expense, haul-out, barrier
        coat removal, bottom painting and audio gauging, if necessary. In the event
        that
        the bottom survey indicates repairs are needed to the Vessel’s hull which do not
        exceed Twenty-Five Thousand Dollars ($25,000.00), Owner will pay for the
        needed
        repairs not to exceed Twenty-Five Thousand Dollars ($25,000.00). In the event
        that the repairs as shown by the survey or subsequent work on the Vessel’s hull
        exceed Twenty-Five Thousand Dollars ($25,000.00), then Owner shall have the
        option in its sole and absolute discretion to terminate this Charter Agreement
        and Charterer shall have no remedy against Owner but shall be obligated to
        pay
        for all costs an expenses associated with Charterer’s charter of the Vessel up
        to the point where Owner terminates the Charter Agreement due to the cost
        of the
        bottom repairs.

      
        
          

          
          

        

        
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            8 of 24

          
            

          

        

        
          
          

        

      

      

      
        	
                8.

              	
                Inspection.

              

      

      

      (a)     
        Owner
        has
        already permitted and, to the extent reasonably required by Charterer, has
        assisted (at no cost to Owner) Charterer in the making of (i) a complete
        physical inspection of the Vessel. Charterer reserves the right to review
        all
        surveys, insurance policies, plans and all documents or papers in the possession
        of the Owner, its agents or other parties (the "Records") pertaining to the
        condition of the Vessel. Charterer, by signing this Charter, accepts the
        Vessel
“AS-IS”
without
        further survey or inspections.

      

      (b)     
        Owner
        will pay for servicing the air conditioning system on the Vessel up to an
        amount
        of Three Thousand Dollars ($3,000.00). Additionally, Owner will pay for
        re-certifying the life rafts, fire extinguishers and any other item that
        needs
        to be certified up to Two Thousand Dollars ($2,000.00).

       

      
        	
                9.

              	
                Inventories.

              

      

      An
        inventory of the Vessel’s entire equipment, outfit, appliances, furnishings,
        china, silver, glassware on board the Vessel may be performed by Owner via
        video
        tape prior to delivery to Charterer and again on re-delivery. Charterer shall
        retain the same rights described herein. Copies of such tapes shall bear
        time
        and date markings, and copies shall be promptly delivered to Charterer and
        Owner.

      

      
        	
                10.

              	
                Maintenance
                  and Operation; Compliance with Legal
                  Requirements.

              

      

      

      (a)    
         Subject to Owner's rights of inspection and compliance with all Legal
        Requirements, the Vessel shall, during the Term of this Charter, be in the
        full
        possession and at the absolute disposal for all purposes of Charterer and
        under
        its complete control in every respect.

      

      (b)     
        Charterer shall, at its sole expense, and by its own procurement, man, navigate,
        operate, supply, fuel, maintain and repair the Vessel whenever required during
        the Term of the Charter and shall pay all charges and expenses of every kind
        and
        nature whatsoever incidental to its use and operation of the Vessel under
        this
        Charter, including any federal, state or local fees or taxes. This is a
        "bareboat" charter and, during the Term hereof, Owner shall have no cost
        or
        expense with respect to the maintenance, operation, stores, crew, insurance
        or
        any other expense in connection with the Vessel. The captain, officers and
        crew
        of the Vessel shall be the servants of Charterer for all purposes whatsoever.
        Charterer shall comply with the regulations regarding officers and crew in
        force
        in the country of the Vessel’s flag or any other Legal Requirement. The captain
        may always put any person ashore in the interests of the Vessel whether such
        person is a member of the crew or staff retained by Charterer, an employee
        or
        agent or a passenger.

      
        
          

          
          

        

        
          Page
            9 of 24

          
            

          

        

        
          
          

        

      

      

      (c)     
        During the Term thereof, Charterer shall, at its sole expense, at all times
        maintain, service and preserve the Vessel in good running order and repair
        in
        accordance with good commercial practice. Charterer shall remain solely
        responsible for all other repairs and maintenance of the Vessel required
        by and
        in accordance with all Legal Requirements, including without limitation,
        the
        hull, engines and machinery and attendant spaces, the fire fighting and fire
        prevention systems, plumbing, electrical wiring, air conditioning equipment
        and
        lifeboats, including major component failures. In no event shall Owner be
        responsible for any crew costs associated with the normal sailing schedules
        or
        ships stores with respect to the repair or replacement of any part of the
        Vessel. Charterer shall maintain a program of preventive maintenance and
        provide
        Owner with the Required Maintenance Reports, in form and content and at such
        times as is reasonably required by the owner.

      

      (d)     
        Charterer, at its expense, shall cause the Vessel to at all times comply
        with
        all Legal Requirements and shall have on board, when required thereby, valid
        certificates showing such compliance, including certificates of financial
        responsibility required by the United States Coast Guard. Charterer shall
        pay
        and discharge all taxes, assessments, excises, levies, duties, fees, fines,
        penalties and other governmental charges lawfully imposed upon it or this
        Charter.

      

      (e)    
         Charterer shall establish and maintain such financial security or
        responsibility in respect of oil or other pollution damage as may be required
        by
        any Governmental Authority to enable the Vessel, without penalty or charge,
        lawfully to enter, remain at, or leave any port, place, territorial or
        contiguous waters of any country, state or municipality in performance of
        this
        Charter without any delay. Owner shall furnish Charterer with all information
        and regulations pertaining to pollution certification requirements. This
        obligation shall apply whether or not such requirements have been lawfully
        imposed by such Governmental Authority. Charterer shall make and maintain
        all
        arrangements by bond or otherwise as may be necessary to satisfy such
        requirements at Charterer's sole expense and Charterer shall indemnify and
        defend Owner against all consequences whatsoever (including loss of time)
        for
        any failure or inability to do so. 

      

      (f)    
         During the Term of this Charter, the Vessel shall retain her present name
        as indicated in Item (c) of the Summary until the appropriate name change
        is
        filed with the British Registry, Grand Cayman, Cayman Islands.

      

      (g)    
         [Section 10. g intentionally left blank.]

      

      (h)     
        Charterer shall have the use of all Personal Property onboard the Vessel
        at the
        time of delivery. 

      

      (i)    
         During the Term of this Charter, it is understood by Charterer that the
        Vessel will remain documented under the Cayman Islands flag.

      

      (j)    
         Section (j) left blank intentionally. 

       

      
        (k)   
           Charterer will provide to Owner reports with the respect to the use,
          maintenance and repairs of the Vessel or as may be reasonably required
          by Owner
          to evidence compliance by Charterer with the terms and conditions of this
          Charter, including, but not limited to notifying Owner of the following
          conditions within thirty (30) days if the status of these items changes
          from the
          time of delivery:

      

      
        
          

          
          

        

        
          Page
            10 of
            24

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                (i)

              	
                Report
                  of Hazardous Condition (if any);

              

      

      
        	 	 	
                (ii)

              	
                Safety
                  Maintenance Manual Report;

              

      

      
        	 	 	
                (iii)

              	
                Report
                  of Marine Accident (CG-2692);

              

      

      
        	 	 	
                (iv)

              	
                Report
                  of Required Chemical Drug and Alcohol Testing Following a Serious
                  Marine
                  Incident (CG-2692B); and

              

      

      
        	 	 	
                (v)

              	
                Record
                  of Drills Conducted: Abandon Ship, Man Overboard, Fire,
                  etc.

              

      

      

      (l)     
        In the event of any casualty, accident or damage to the Vessel in excess
        of Five
        Thousand and no/100 Dollars ($5,000.00), Charterer shall immediately notify
        Owner in writing with a complete report thereof.

      

      
        	
                11.

              	
                Hire. 

              

      

      

      (a)    
         Charterer shall pay the Owner for the use of the Vessel as Hire the
        monthly sum as indicated in Item (l) of the Summary, in arrears. The monthly
        charter hire shall be as calculated in Exhibit “A” attached hereto and
        incorporated herein by reference.

      

      (b)     
        Should the Vessel be lost or missing, Hire shall cease from the date and
        time
        when she was lost or last heard from.

      

      (c)     
        If Charterer shall fail to pay any hire for more than fifteen (15) days after
        receiving written notice thereof, Owner shall have the right to withdraw
        the
        Vessel from the service of Charterer without further noting any protest and
        without interference by any court or any other formality whatsoever and shall
        without prejudice to any other claim Owner may otherwise have against Charterer
        under this Charter, be entitled to damages in respect of all costs, and losses
        incurred as a result of Charterer's default and the ensuing withdrawal of
        the
        Vessel.

      

      (d)    
         Any delay in payment of Hire beyond any applicable cure period shall
        entitle Owner to interest at the Default Rate.

      

      (e)     
        Charterer is responsible for all loss of operating time sustained by the
        Vessel
        during the Term of this Charter or any extension thereof, except for time
        lost
        due to (i) the negligence of Owner or that of Owner’s employees, agents,
        independent contractors, passengers and business invitees, or (ii) Owner’s
        breach of any of the terms or conditions of this Charter which are the
        responsibility of Owner hereunder.

      

      (f)     
        Charter
        hire shall be Twenty-One Thousand Three Hundred Fifty-Four Dollars and 17/100
        ($21,354.17) per month for twelve (12) months. The First three (3) months
        of
        charter hire shall be earned during these months but payment shall be made
        by
        Charterer according to the following:

      
        
          

          
          

        

        
          Page
            11 of
            24

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                (a)
                  

              	
                If
                  the Charterer sells the Vessel to a third party for Two Million
                  Five
                  Hundred Thousand Dollars ($2,500,000.00) or more, charterer shall
                  pay the
                  accrued charter hire at closing and termination of the charter
                  term. In
                  the event Charterer sells the Vessel to an unrelated third party
                  for less
                  than Two Million Five Hundred Thousand Dollars ($2,500,000.00),
                  then
                  Charterer shall have the option of paying Owner for any shortfall,
                  that
                  is, the difference between Two Million Five Hundred Thousand Dollars
                  ($2,500,000.00) and the actual selling price, in twenty- four (24)
                  equal
                  monthly installments, with interest, at the prime rate as published
                  in the
                  Wall Street Journal plus 2% until the shortfall is paid in
                  full.

              

      

      -OR-

      
        	 	 	
                (b)
                  

              	
                If
                  Charterer purchases the Vessel or an affiliate of Charterer purchases
                  the
                  Vessel, than the accrued but unpaid charter hire shall be paid
                  to Owner as
                  part of the purchase price for the Vessel as defined in Section
                  48
                  below.

              

      

      

      
        
          	
                  12.

                	
                  Security
                    Deposit.

                

        

         

      

      Charterer
        shall not be required to post any security deposit for the performance of
        its
        obligations hereunder. 

      

        
          	
                  13.

                	
                  Loan
                    Documents.

                

        

      

       

      Section
        13. left blank intentionally as it is not applicable to this
        Agreement.

       

      
        	
                14.

              	
                Insurance
                  and Certificates; Repairs; Surety Bond;
                  Indemnity

              

      

       

      (a)    
         Charterer shall, without cost to Owner, keep the Vessel insured against
        such risks and in such form and in such amounts as Owner shall reasonably
        request, notwithstanding anything contained herein to the contrary and always
        in
        compliance with the requirements of the Loan Documents, including (i) all
        marine
        risks, protection and indemnity, products liability, and general liability,
        provided that such insurance on the Vessel shall in no event be less than
        the
        then current hull value of said Vessel, (ii) Protection and Indemnity Risk
        Insurance for crew and passengers against such risks and in an amount not
        less
        than Five Million and no/100 Dollars ($5,000,000.00) per occurrence with
        a
        typical deductible for insurance at this rate, per occurrence, (iii) financial
        responsibility for water pollution, as required by United States law, and
        (iv)
        hold covered clause showing Charterer’s acts of malfeasance or non-feasance will
        not void Owner’s interest in the insurance, subject to timely notice to Owner by
        the Underwriters and payment of additional premium by Charterer or, at Owner’s
        option, Owner. Each policy required by this Section 14(a) shall name Owner
        as an
        additional insured, as its interest may appear. Each policy of insurance
        shall
        name Owner as the sole loss payee. Exhibit
        “4”.
        Owner
        specifies that the Vessel’s underwriter(s) shall be based in the United States
        of America and have a rating by A.M. Best of at least A- or better.

      

      (b)     
        Charterer shall attempt to make sure all policies for insurance taken out
        shall
        provide that there shall be no recourse against Owner or the Vessel for the
        payment of premiums and commissions, and that such policy shall provide that
        as
        to any payment of Club calls, assessments, or advancements, there shall be
        no
        recourse against Owner or the Vessel for the payment thereof. 

      
        
          

          
          

        

        
          Page
            12 of
            24

          
            

          

        

        
          
          

        

      

      

      (c)     
        Charterer shall carry such workmen's compensation insurance as shall be required
        by all Legal Requirements.

      

      (d)    
         Charterer shall also provide Owner with certified, true copies of all
        required insurance policies and certificates of financial responsibility
        and
        proof of payment of all premiums and charges therefore.

      

      (e)     
        Charterer will not do any act nor suffer any act to be done, whereby any
        insurance required herein shall or may be suspended, impaired, or defeated,
        and
        will not suffer the Vessel to carry any cargo or passengers not permitted,
        or to
        be operated in any geographical area where it would not be covered under
        the
        insurance policies in effect without first covering the Vessel with insurance
        complying with the provisions of this Section 14.

      

      (f)     
        If Charterer fails to keep any of the insurances provided for under the
        provisions of this Section 14 in full force and effect, Owner shall notify
        Charterer whereupon Charterer shall rectify the position within ten (10)
        Days,
        failing which Owner shall have the right to withdraw the Vessel from the
        service
        of Charterer without prejudice to any claim Owner may otherwise have against
        Charterer.

      

      (g)     
        Charterer shall, subject to the approval of Owner and underwriters of any
        applicable policy of insurance required hereunder, effect all insured repairs
        and shall undertake settlement of all costs in connection with such repairs
        as
        well as insured charges, expenses and liabilities (reimbursement to be secured
        by Charterer from such underwriters) to the extent of coverage under the
        insurances herein provided for.

      

      (h)    
         Should the Vessel become an actual, constructive, compromised or agreed
        total loss under the insurances required under this Section 14, all insurance
        payments for such loss shall be paid to the Owner and the closing shall take
        place as contemplated by ¶48 hereunder. Charterer undertakes to notify the Owner
        of any occurrences in consequence of which the Vessel is likely to become
        a
        total loss as described in this Section 14.

      

      (i)     
        If the Vessel becomes an actual, constructive, compromised or agreed total
        loss
        under the insurances required in this Section 14, this Charter shall terminate
        as of the date of such loss and if such date cannot be determined, then as
        of
        the last date the Vessel was heard from.

      

      (j)    
         Owner shall upon the request of Charterer, promptly execute such documents
        as may be required to enable Charterer to abandon the Vessel to insurers
        and
        claim a constructive total loss.

      
        
          

          
          

        

        
          Page
            13 of
            24

          
            

          

        

        
          
          

        

      

      

      

      (k)     
        For the purpose of insurance coverage against marine and war risks under
        the
        provisions of this Section 14, the value of the Vessel is the sum indicated
        in
        Item (n) of the Summary.

      

      (l)     
        Charterer shall indemnify, defend and save Owner harmless of and from any
        and
        all claims (including, but not limited to, any deductible under any policy
        of
        insurance or P & I coverage, all attorneys' fees and costs at trial and all
        appellate levels) which may be asserted by or on behalf of any passenger
        or any
        member of the public or any member of the crew arising out of injury to persons
        or property, including damages for death sustained during any cruise or during
        any loading or unloading of the Vessel during the Term of this Charter or
        for
        any property damage claims made by third-parties.

      

      
        
          	
                  15.

                	
                  Re-delivery. No
                    re-delivery is contemplated
                    hereunder.

                

        

         

      

      (a)     
        Charterer shall not redeliver the Vessel but shall purchase the Vessel or
        arrange for a third-party sale subject to Exhibit 48 as provided
        herein.

      

      (b)     
        In the event of a breach by Charterer, and forced re-delivery to Owner, the
        Vessel shall be redelivered to Owner in as good structure, state, condition
        and
        certificate as when delivered, wear and tear excepted.

      

      (c)     
        The Vessel upon re-delivery shall have all scheduled maintenance
        performed.

      

      
        
          	
                  16.

                	
                  No
                    Lien and Indemnity.

                

        

      

      

      (a)    
         Neither Charterer, the captain of the Vessel, nor any other Person (except
        Owner, but subject to the provisions of this Charter) has or shall have any
        right, power or authority to create, incur or permit to be placed or imposed
        upon the Vessel, Personal Property or her freights, fares, profits or hire,
        any
        lien whatsoever. Charterer shall at all times carry a true copy of this Charter
        and any amendments or assignments thereof, as furnished by Owner, aboard
        the
        Vessel with their documents and shall exhibit the same to any person having
        business with the Vessel which might give rise to any lien thereon, and,
        on
        demand, to any representative of Owner.

      

      (b)    
         Charterer shall indemnify, defend and hold Owner harmless against any lien
        of whatsoever nature arising upon the Vessel during the Term of this Charter
        while it is under the control of Charterer, and against any claims, fines
        or
        penalties of any nature, founded or unfounded, by any third party, including,
        but not limited to, any tax, assessment, levy, duty, fee or other governmental
        charge, any fine arising from any violation of a Legal Requirement, and all
        attorneys fees and costs (at trial and all appellate levels) arising out
        of or
        in relation to the use, operation or maintenance of the Vessel by Charterer
        including any sales or use tax on hire, whether asserted by a passenger,
        crewmember and whether for property damage, personal injury or death. This
        paragraph excludes any lien asserted against the Vessel which is based on
        acts
        or omissions which occurred prior to this Charter and attributable to parties
        other than the Charterer or any claim related to corporate income taxes of
        Owner.

      
        
          

          
          

        

        
          Page
            14 of
            24

          
            

          

        

        
          
          

        

      

       

      (c)    
         In the event that Charterer fails to remove any lien or encumbrance for
        which it is responsible as herein provided, Owner may do so and thereafter
        charge Charterer with all costs incurred by Owner in connection with the
        satisfaction or transfer or such claim, including attorneys' fees.

      

      (d)     
        Owner shall remove any Owner created, non-mortgage lien(s) which interferes
        with
        Charterer's use and operation of the Vessel.

       

      
        
          	
                  17.

                	
                  Owner's
                    Representations.

                

        

      

      

      Owner
        represents and warrants that:

      (a)
        The
        Owner is the true and lawful sole owner of the Vessel and has title vested
        solely in its name, together with all her gear, stores, etc., and has lawful
        authority to enter into this Charter and carry out its provisions.

      

      
        
          	
                  18.

                	
                  Salvage.
                    

                

        

      All
        salvage and towage performed by the Vessel shall be for Charterer's benefit,
        and
        the cost of repairing damage occasioned thereby shall be borne by
        Charterer.

       

      
        
          	
                  19.

                	
                  Wreck
                    Removal. 

                

        

      

      

      In
        the
        event of the Vessel becoming a wreck or obstruction to navigation, Charterer
        shall indemnify and defend Owner against any sums whatsoever which Owner
        shall
        become liable to pay and shall pay in consequence of the Vessel becoming
        a wreck
        or obstruction to navigation.

      

      
        
          	
                  20.

                	
                  Assignment
                    and Sub-Charter.

                

        

      

      

      Subject
        to the provisions of this Charter and Section 3 above, Charterer may not,
        directly or indirectly, assign, sub-charter or in any manner transfer or
        grant,
        or suffer any encumbrance of Charterer's interest in, this Charter in whole
        or
        in part; sub-charter all or any portion of the Vessel; nor grant a license
        concession or other right of occupancy of any portion of the Vessel, without
        prior notice and prior written consent of Owner in each instance, which consent
        may not be unreasonably withheld. 

       

      
        
          	
                  21.

                	
                  Charterer's
                    Right to Cancel (Terminate).

                

        

      

      

      Charterer
        shall not have the right to cancel or terminate this Charter.

      

      
        
           

          
          

        

        
          Page
            15 of
            24

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  22.

                	
                  Requisition/Acquisition.
                    

                

        

      

      

      Section
        22. left blank intentionally.

      

      
        
          	
                  23.

                	
                  War.

                

        

         

      

      Section
        23. left blank intentionally. 

       

      
        
          	
                  24.

                	
                  Commission.
                    

                

        

      

      

      No
        commission is due any broker for this Charter.

      

      
        
          	
                  25.

                	
                  Owner's
                    Representative.

                

        

      

      

      During
        the pendency of this Charter, Owner shall have the right, at all times, to
        request an inspection of the Vessel by a designated representative of Owner
        (“Owner’s
        Representative”)
        to
        conduct such inspection at a time when such inspection shall not disturb
        the
        operation of the Vessel. Charterer shall enable such Owner’s Representative not
        be obligated to arrange for more than two of such inspections in any month.
        Should Owner's Representative determine that any violations or breach(es)
        of
        this Charter have occurred, Owner shall provide written notice to Charterer,
        indicating the nature of the violation or breach.

       

      
        
          	
                  26.

                	
                  Loss
                    or Destruction of the Vessel.

                

        

      

      

      The
        Owner
        and Charterer intend that the Vessel will not be re-delivered except for
        breach
        of Charterer’s obligations hereunder. Should the Vessel be lost or destroyed as
        a result of casualty or for any other reason, then this Charter shall be
        canceled and the Closing shall take place as set forth in ¶48 hereto and Owner
        shall be under no obligation to replace the Vessel. Charterer shall bear
        all
        risk of loss for the Vessel during this term.

      

      
        
          	
                  27.

                	
                  Events
                    of Default of Charterer;
                    Remedies.

                

        

         

      

      (a)    
         Upon the happening of one or more of the events as expressed below in (i)
        to (vi), inclusive (individually and collectively, "Events
        of Default"),
        Owner
        shall have any and all rights and remedies, at law or in equity, as may be
        available to it.

      (i)    
         Charterer shall fail to pay any installment of Hire or any other sum
        required to be paid hereunder, as and when the same becomes due and
        payable.

      (ii)     Charterer
        shall be the subject of a Voluntary or Involuntary Bankruptcy.

      (iii)   
        Charterer removes, attempts to remove, or permits to be removed from the
        Vessel
        any Personal Property of Owner having a value of over $2,000 without notice
        to
        Owner (who shall be entitled to insist upon delivery of such Personal Property
        to Owner) and without adequate provision for storage and insurance therefore,
        or
        if Charterer fails to adequately compensate Owner therefore, in the event
        Charterer does not purchase the Vessel under Section 48 hereof.

      
        
          

          
          

        

        
          Page
            16 of
            24

          
            

          

        

        
          
          

        

      

      

      (iv)   
         Charterer, before the expiration of the Term hereof and without the
        written consent of Owner, abandons possession of the Vessel, or uses the
        same
        for purposes other than for the lawful use.

      

      (b)    
         In the event that Charterer fails to completely fulfill or perform any of
        its monetary or non-monetary duties and obligations set forth herein, Owner
        may,
        in its sole discretion, perform or cause to be performed any and all such
        duties
        and obligations upon one (1) day’s prior written notice. If Owner expends any
        sums of money in the performance of any of the monetary or non-monetary duties
        and obligations of Charterer set forth herein, any such sums of money expended
        by Owner shall become additional amounts of Hire due under this Charter and
        shall be paid by Charterer immediately upon demand.

      

      (c)     
        No expiration or termination of the Term of this Charter by any provision
        hereof
        or by operation of law or otherwise (except as expressly provided herein),
        and
        no repossession of the Vessel pursuant to the terms of this Charter or
        otherwise, shall relieve Charterer of its liability and obligations hereunder,
        all of which shall survive any such expiration, termination or
        repossession.

      

      (d)    
         In the event any payment due Owner under this Charter, including the
        Purchase Price contemplated under ¶48 hereof, shall not be paid on the due date,
        Charterer agrees to pay interest on the amount which is delinquent at the
        Default Rate, for such delinquent payment until made.

      

      (e)     
        Each right, power and remedy of Owner provided for in this Charter or by
        law
        shall be cumulative and concurrent and shall be in addition to every other
        right, power or remedy provided for in this Charter or hereafter existing
        at law
        or in equity or by statute or otherwise, and the exercise or beginning of
        the
        exercise by Owner of any one or more of the right, powers or remedies provided
        for in this Charter, now or hereafter existing at law or in equity or by
        statute
        or otherwise, shall not preclude the simultaneous or later exercise by Owner
        of
        any or all such other rights, powers or remedies, as often as may be deemed
        expedient.

       

      
        
          	
                  28.

                	
                  Events
                    of Default of Owner;
                    Remedies.

                

        

      

      

      (a)    
         Upon the happening, during the Term hereof, of one or more of the events
        as expressed below in (i) to (iv) inclusive (individually and collectively
        "Owner's
        Events of Default"),
        Charterer shall have, subject to this Charter Party, any and all rights and
        remedies, at law or in equity, as may be available to it:

      

      (i)    
         Owner fails to keep, observe or perform any of the other terms, conditions
        or covenants on the part of Owner herein to be kept, observed and performed
        for
        more than ten (10) Days after written notice thereof is given by Charterer
        to
        Owner specifying the nature of such default, or if the default so specified
        shall be of such a nature that the same cannot reasonably be cured or remedied
        within said one (1) Day period, if Owner shall not in good faith have commenced
        the curing or remedying of such default within such one (1) Day period and
        shall
        not thereafter continuously and diligently proceed therewith to
        completion.

      
        
          

          
          

        

        
          Page
            17 of
            24

          
            

          

        

        
          
          

        

      

       

      (ii)     
        Owner shall be the subject of a Voluntary or Involuntary
        Bankruptcy.

      

      (iii)   
         Owner attempts to interfere with Charterer's operation of the Vessel
        during the Term hereof, providing Owner is not exercising any right herein
        given
        to Owner, including, but not limited to, (i) Owner's right to inspect the
        Vessel, and (ii) exercise all remedies available to Owner in the event of
        Charterer's default hereunder.

      

      (iv)    
        An execution or other legal process is levied on the Vessel or other goods,
        furniture, effects or other property of Owner on the Vessel by reason of
        the
        Owner's actions, and the same is not satisfied or dismissed within twenty
        (20)
        Days from the date of such levy.

      

      (b)    
         [Section 28.(b) intentionally left blank.]

      

      (c)     
        No failure by Charterer to insist upon the strict performance of any term
        or
        condition hereof or to exercise any rights, power of remedy consequent upon
        a
        breach thereof, shall constitute a waiver of any such breach or of any such
        term
        or condition. The waiver by Charterer of any breach of any term, condition
        or
        covenant herein contained shall not be effective unless in writing and signed
        by
        Charterer, and shall not be a waiver of any other term, condition, or covenant
        herein contained. The consent or approval by Charterer to or of any act by
        Owner
        requiring Charterer's consent or approval shall not be deemed to waive or
        render
        unnecessary Charterer's consent to or approval of any subsequent similar
        act by
        Owner. No redelivery by Charterer hereunder shall bar the recovery of monies
        due
        Charterer or damages for the breach of any terms, conditions or covenants
        on the
        part of Owner herein contained. The receipt of monies after the occurrence
        of
        any Event of Default on the part of Owner, or the delay on the part of Charterer
        to enforce any right hereunder, shall not be deemed a waiver or forfeiture,
        or a
        waiver of the right of Charterer to annul this Charter or to redeliver the
        Vessel.

       

      
        
          	
                  29.

                	
                  Attorneys
                    Fees and Costs.

                

        

         

      

      In
        the
        event of the institution of any proceeding relating to this Charter, the
        parties
        agree that costs and expenses, including reasonable attorneys' fees and
        expenses, incurred by the prevailing party in connection with such proceeding
        (including such fees and expenses incurred in preparation of filed litigation
        and in bankruptcy or other administrative or judicial proceeding, and at
        trial
        and all appellate levels) shall be paid or reimbursed by the non-prevailing
        party.

      

      
        
          	
                  30.

                	
                  Governing
                    Law. 

                

        

      

      

      This
        Charter shall be governed by the laws of the United States and the State
        of
        Florida without regard to that State's choice of law principles.

       

      
        
          	
                  31.

                	
                  Owner's
                    Logo on the
                    Vessel.

                

        

      

      
        
          

          
          

        

        
          Page
            18 of
            24

          
            

          

        

        
          
          

        

      

      

      During
        the Term of this Charter, Owner's logo (if any) shall remain on the Vessel
        at
        all times; however, other logos or names of Charterer or its assigns may
        be
        placed upon the Vessel at any suitable location at any time.

      

      
        
          	
                  32.

                	
                  Notices.
                    

                

        

      

      

      Any
        notice, consent, approval or other communication given pursuant to the
        provisions of this Charter (“Notices”)
        shall
        be in writing and shall be (a) transmitted by verifiable telefax (i.e.
        telecopy); or (b) delivered by a nationally recognized overnight courier,
        U.S.
        Post Office Express Mail, or similar overnight courier which delivers only
        upon
        signed receipt of the addressee. All notices should also be provided by e-mail
        notification. All such Notices shall be transmitted and addressed as
        follows:

      

        
          	 	
                  Charterer:

                	
                  Fractional
                    Marine, Inc.

                
	 	 	
                  405-A
                    Atlantis Road

                
	 	 	
                  Cape
                    Canaveral, FL 32920

                
	 	 	 
	 	
                  Owner:

                	
                  Greystone
                    Maritime Holdings, LLC

                
	 	 	
                  152
                    W. 57th
                    Street

                
	 	 	
                  60th
                    Floor

                
	 	 	
                  New
                    York, N.Y. 10019-3310

                
	 	 	 
	 	
                  With
                    a copy to:

                	
                  James
                    W. Stroup, Esq. 

                
	 	 	
                  Stroup
                    & Martin, P.A.

                
	 	 	
                  119
                    Southeast 12th
                    Street

                
	 	 	
                  Fort
                    Lauderdale, Florida 33316

                
	 	 	
                  954-462-8808
                    - telephone

                
	 	 	
                  954-462-0278-
                    telefax

                
	 	 	
                  jstroup@strouplaw.com

                

        

      

       

      The
        time
        of the giving of any notice shall be the time of receipt thereof by the
        addressee or any agent of the addressee, except that in the event the addressee
        or such agent of the addressee shall refuse to receive any notice given by
        registered mail or certified mail as above provided or there shall be no
        person
        available at the time of the delivery thereof to receive such notice, the
        time
        of the giving of such notice shall be the time of such refusal or the time
        of
        such delivery, as the case may be. Any party hereto may, by giving five (5)
        Days
        written notice to the other party hereto, designate any other address or
        any new
        or substitute telefax (i.e. telecopy) number, in substitution of the foregoing
        address and telefax numbers (or in order to provide telefax numbers) to which
        notice shall be given.

       

      
        
          	
                  33.

                	
                  Corporate
                    Status.

                

        

      

      
        
          

          
          

        

        
          Page
            19 of
            24

          
            

          

        

        
          
          

        

      

      

      Charterer
        and Owner each shall at all times during the Term of this Charter or any
        extension thereof maintain their status in good standing.

       

      
        
          	
                  34.

                	
                  Removal
                    of Personal Property.

                

        

      

      

      Charterer
        acknowledges that all items of Personal Property scheduled in Exhibit
        "2"
        are
        located on the Vessel, are in good working order, and shall not be removed
        from
        the Vessel without the prior written consent of Owner, which consent may
        not be
        unreasonably withheld.

       

      
        
          	
                  35.

                	
                  Accord
                    and Satisfaction.

                

        

      

      

      No
        payment by Charterer or receipt by Owner of a lesser amount than the monthly
        Hire herein stipulated shall be deemed to be other than on account of the
        earliest stipulated Hire, nor shall any endorsement or statement on any check
        or
        any letter accompanying the check or payment as Hire be deemed an accord
        and
        satisfaction, and Owner may accept such check or payment without prejudice
        to
        Owner's right to recover the balance of such Hire or pursue any other remedy
        provided in this Charter or by law.

       

      
        
          	
                  36.

                	
                  Entire
                    Agreement and Amendments.

                

        

      

      

      This
        Charter, including the Exhibits attached hereto and forming a part hereof,
        along
        with and any amendments thereto, sets forth all covenants, promises, agreements,
        conditions and understandings between Owner and Charterer concerning the
        Vessel.
        Any amendments to this Charter shall be in writing and signed by the parties
        as
        further provided in Section 44 hereof.

       

      
        
          	
                  37.

                	
                  Binding
                    Effect. 

                

        

      

      

      This
        Charter shall be binding upon and shall inure to the benefit of the successors
        and permitted assigns of the parties hereto.

      

      
        
          	
                  38.

                	
                  Partial
                    Invalidity. 

                

        

      

      

      If
        any
        term, covenant or condition of this Charter or the application thereof to
        any
        person or circumstances shall, to any extent, be invalid or unenforceable,
        the
        remainder of this Charter, or the application of such term, covenant or
        condition to persons or circumstances other than those as to which it is
        held
        invalid or unenforceable, shall not be affected thereby and each term, covenant
        or condition of this Charter shall be valid and be enforced to the fullest
        extent permitted by law.

       

      
        
          	
                  39.

                	
                  Time
                    of the Essence. 

                

        

      

      

      Time
        is
        of the essence in this Charter and each and all of its provisions in which
        performance is a factor. Any period measured in "days" shall mean consecutive
        calendar days, except that the expiration of any time period incurred in
        days
        that expires on a Saturday, Sunday or legal holiday, automatically will be
        extended to the next day which is not a Saturday, Sunday or legal
        holiday.

      
        
          

          
          

        

        
          Page
            20 of
            24

          
            

          

        

        
          
          

        

      

      

       

      
        
          	
                  40.

                	
                  Waiver
                    of Jury Trial. 

                

        

      

      

      The
        parties hereto waive trial by jury in connection with proceedings or
        counterclaims brought by either of the parties hereto against the other.
        Charter
        acknowledges that this Section 40 is a material inducement to Owner to enter
        into this Charter.

       

      
        
          	
                  41.

                	
                  Counterparts.
                    

                

        

      This
        Charter may be executed in multiple copies, each of which shall be deemed
        an
        original, and all of such copies shall together constitute one and the same
        instrument.

       

      
        
          	
                  42.

                	
                  Acceptance
                    of Funds by Owner. 

                

        

      

      

      No
        receipt of money by Owner from Charterer after the termination of this Charter
        or after the service of any notice and any period for the opportunity for
        the
        period to cure has expired hereunder or after the commencement of any suit,
        or
        after final judgement for possession of the Vessel shall reinstate, continue
        or
        extend the Term of this Charter or affect any such notice, demand or
        suit.

       

      
        
          	
                  43.

                	
                  Authority.
                    

                

        

      

      

      Charterer
        and Owner make the following representations to each other, on which both
        parties are entitled to rely in executing this Charter: (i) Each party has
        the
        power to enter into this Charter and the transactions contemplated hereby
        and to
        perform its obligations hereunder, and by proper resolution the signatory
        hereto
        has been duly authorized to execute and deliver this Charter; and (ii) the
        execution, delivery and performance of this Charter and the consummation
        of the
        transactions herein contemplated shall not conflict with or result in a
        violation or breach of, or a default under Charterer's or Owner's Articles
        of
        Incorporation or By-Laws, Articles of Organization, Regulations, or Partnership
        Agreements, as the case may be, or any indenture, mortgage, deed of trust
        note,
        security agreement or other agreement or instrument to which Charterer or
        Owner
        is a party or by which it is bound or to which any of its properties is
        subject.

       

      
        
          	
                  44.

                	
                  Modification.
                    

                

        

      

      

      No
        modifications or amendments to this Charter, of any kind whatsoever, shall
        be
        made or claimed by Owner or Charterer.

       

      
        
          	
                  45.

                	
                  Estoppel.
                    

                

        

      

      

      Section
        45. left blank intentionally.

      
        
          

          
          

        

        
          Page
            21 of
            24

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  46.

                	
                  Submission
                    to Jurisdiction. 

                

        

      

      

      The
        parties hereto irrevocably and unconditionally (a)
        agree
        that any suit, action, or other legal proceeding arising out of or relating
        to
        this Charter or any other agreement, document or instrument delivered pursuant
        to, or in connection with this Charter shall be brought and maintained in
        the
        Circuit Court of Broward County, Florida, or in the United States District
        Court
        for the Southern District of Florida or such other jurisdiction where the
        Vessel
        may be located if suit is brought by Owner to recover the Vessel in
        rem;
        (b)
        consent
        to the jurisdiction of each such court in any such suit, action or proceeding;
        and (c)
        waive
        any objection which it or they may have to the laying of venue of any such
        suit,
        action, or proceeding in any of such courts.

       

      
        
          	
                  47.

                	
                  Interests
                    of Mortgagees.

                

        

      

      

      [Section
        47. Intentionally Left Blank.]

      

      
        
          	
                  48.

                	
                  Option
                    to Purchase.

                

        

      

      

      Charterer
        shall purchase the Vessel according to the terms of the Letter Agreement
        dated
        May 2, 2007 attached hereto as Exhibit “1”. Closing shall take place on or
        before the end of this charter Term
        set
        forth
        in the Summary. All terms of Exhibit “1” are incorporated herein including the
        division of sale proceeds between Owner and Charterer or Charterer’s debt
        obligation to Owner as follows:

      

      
        	 	 	
                (a)
                  

              	
                Charterer
                  may sell the Vessel to a third party other than Marine Growth Ventures,
                  Inc. or its corporate affiliate. Under this scenario, Charterer
                  will pay
                  Two Million Five Hundred Thousand Dollars ($2,500,000.00) to the
                  Owner as
                  sales proceeds in connection with transferring title to the third
                  party
                  buyer. Any sale proceeds in excess of the balance of the agreed
                  upon sales
                  price payable to Owner shall be remitted to the Charterer by Owner.
                  In the
                  event that there is a shortfall, that is the third party sale generates
                  less than Two Million five Hundred Thousand Dollars ($2,500,000.00),
                  there
                  shall be a balance owed to Owner by Charterer. The Charterer shall
                  have
                  the option to pay Owner the shortfall balance in twenty-four (24)
                  equal
                  monthly installments with interest to be calculated at the prime
                  rate as
                  published by the Wall Street Journal during the month that the
                  Charterer
                  exercises its option to purchase, plus
                  2%.

              

      

      

      
        	 	 	
                (b)
                  

              	
                If
                  Marine Growth Ventures, Inc. or its corporate affiliate elects
                  to purchase
                  the Vessel, the sales price shall be Two Million Five Hundred Thousand
                  Dollars ($2,500,000.00) less received charter hire payments. The
                  charter
                  hire payments will be subtracted off the Two Million Five Hundred
                  Thousand
                  Dollars ($2,500,000.00) agreed upon sale price and the balance
                  of the sale
                  price ($2,500,000.00 less charter hire payments received) will
                  the be the
                  amount owed by Purchaser to Seller. Charterer will execute a Promissory
                  Note in a form acceptable to Owner and deliver a recordable First
                  Preferred Ship Mortgage against the Vessel to secure the payment
                  of the
                  sale price, which shall be payable over a sixty (60) month period.
                  The
                  interest rate shall be 10.25%. Purchaser shall remit as a prepayment
                  to
                  the Promissory Note, a percentage of Fractional Share Income to
                  Seller to
                  be mutually agreed upon in writing at the time the option to purchase
                  is
                  exercised.

              

      

       

      
        
           

          
          

        

        
          Page
            22 of
            24

          
            

          

        

        
          
          

        

      

      
        
          	
                  49.

                	
                  Facsimile
                    Execution.

                

        

         

      

      Facsimile
        copies of this Charter, and all Exhibits thereto, signed and initialed in
        counterpart, shall be considered for all purposes, including delivery, as
        originals.

      

      
        
          	
                  50.

                	
                  Taxes.
                    

                

        

      

      

      Charterer
        shall be required to pay any sales or use tax on the Hire that it shall pay
        under this Charter. In the event that any sales or use taxes are imposed
        upon
        this Charter or any sub-charter or upon a sale of the Vessel to Charterer,
        all
        such taxes will be the obligation of Charterer or purchaser, as
        applicable.

      

      IN
        WITNESS WHEREOF,
        each of
        the parties has caused this Charter to be executed by its duly authorized
        representative as of the day and year first above written.

       

      
        
          	 FRACTIONAL
                  MARINE, INC.	 	 	 GREYSTONE
                  MARITIME HOLDINGS, LLC
	 	 	 	 
	 	 	 	
                   By:
                    Greystone Business Credit II, L.L.C.,

                        
                    its managing member

                
	By:
/s/ 
                  Craig Hodgkins	 	 	By:
                  /s/  Joel Flig 
	Title:
                  President	 	 	Title: 
                  Executive President

        

       

      
        
          
          

        

        
          Page 23 of
            24

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