Document:

Exhibit 10.51

SHARE SALE AND PURCHASE AGREEMENT

OF NOVA TV d.d. 

This Share Sale and Purchase Agreement is concluded on July 7 2004 between:

Vjenceslav Bacci, Split, Drvenicka 21, JMBG:0509951380032,

Ivan Blažicko, Zagreb, P.P.Njegoša 6, JMBG:2210961330108,

Boško Bojanovic, Zagreb, JMBG:2011961330113,

Tomislav Brezicevic, Zagreb, Jukiceva 8, JMBG:0804960302127,

Neven Cicko, Zagreb, Mlinovi 145, JMBG:1204969330065,

JADRAN FILM d.d. Zagreb, Oporovecka 12, MB:3217183,

Zdravko Balenovic, Zagreb, Rudolfa Ivankovica 39, JMBG: 0105963391826,

Slavica Maras, Zagreb, Kneza Mislava 2, JMBG:2802978335256,

PITOS d.o.o. Zagreb, Hrvatskog proljeca 40, MB:1524160,

Vlado Pukanic, Velika Gorica, N. pl. Škrleca Lomnickog 1, JMBG:0103963334013,

STUDIO MILLENIUM d.o.o. Zagreb, Sjeverna ulica 2/A1, MB:1607022,

Damir Tus, Crikvenica, SAD 3, JMBG:3003958350007,

Damir Vujinovic, Zagreb, B. Magovca 167, JMBG:1601963330003,

Branko Vukšic Zagreb, Vlaška 70a, JMBG:1405956330045,

Ante Župic, Lovrakova 19, JMBG:2101966330056

each hereinafter referred to as the "Seller" and collectively referred to as the "Sellers" 

and

CME MEDIA ENTERPRISES BV, a limited liability company organized under the laws of Netherlands, whose registered office is located at Birkstraat 89, Soest, The Netherlands, duly represented by Daniel Penn, in his capacity of attorney, hereinafter the "Buyer".

	  
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PREAMBLE

	(A)	Whereas, Nova TV d.d. ( "Nova TV") is organized under the form of a joint stock company, having its registered offices at Ulica grada Vukovara 72, Zagreb, Croatia, registered with the Court Registry of the Commercial Court in Zagreb, Croatia, under no MBS:080222668;

	(B)	Whereas, Operativna Kompanija d.o.o. ("OK") is organized under the form of a limited liability company, having its registered offices at Ulica grada Vukovara 72, Zagreb, Croatia, registered with the Court Registry of the Commercial Court in Zagreb, Croatia, under no MBS 080354416;

	(C)	Whereas Nova TV and OK are engaged in the television broadcasting business (the "Nova Television Business") pursuant to a concession issued to Nova TV by Croatian Agency for Telecommunications (Contract no. T-014 of 28.04.2000) (the "License") and broadcasting operations established by OK pursuant to the Intercompany Agreement dated 05. 06. 2000.

	(D)	Whereas, as of the date hereof, Nova TV has a registered share capital of HRK 110.000,00, representing 220 Sale Shares with a nominal value of HRK 500,00 each;

	(E)	Whereas, 100% of the share capital of Nova TV is owned as follows: Vjenceslav Bacci is the owner of 12 Sale Shares of Nova TV representing 5,45 % of Nova TV’s share capital, Ivan Blažicko is the owner of 2 Sale Shares of Nova TV representing 0,91 % of Nova TV’s share capital, Boško Bojanovic is the owner of 32 Sale Shares of Nova TV representing 14,55 % of Nova TV’s share capital, Tomislav Brezicevic is the owner of 34 Sale Shares of Nova TV representing 15,45 % of Nova TV’s share capital, Neven Cicko is the owner of 20 Sale Shares of Nova TV representing 9,09 % of Nova TV’s share capital, JADRAN FILM d.d. is the owner of 22 Sale Shares of Nova TV representing 10,00 % of Nova TV’s share capital, Zdravko Balenovic is the owner of 11 Sale Shares of Nova TV representing 5% of Nova TV share capital, Slavica Maras is the owner of 6 Sale Shares of Nova TV representing 2,73 % of Nova TV’s share capital, PITOS d.o.o. is the owner of 2 Sale Shares of Nova TV representing 0,91 % of Nova TV’s share capital, Vlado Pukanic is the owner of 7 Sale Shares of Nova TV representing 3,18 % of Nova TV’s share capital, STUDIO MILLENIUM d.o.o. is the owner of 12 Sale Shares of Nova TV representing 5,45 % of Nova TV’s share capital, Damir Tus is the owner of 15 Sale Shares of Nova TV representing 6,82% % of Nova TV’s share capital, Damir Vujinovic is the owner of 33 Sale Shares of Nova TV representing 15,00 % of Nova TV’s share capital, Branko Vukšic is the owner of 2 Sale Shares of Nova TV representing 0,91 % of Nova TV’s share capital, Ante Župic is the owner of 10 Sale Shares of Nova TV representing 4,55 % of Nova TV’s share capital;

	(F)	Whereas, the Buyer conducted due diligence through access to a data room containing documents recorded in the Data Room Index ("Data Room Index") and has had the opportunity to visit the facilities of Nova TV and to have interviews with Nova TV’s management.

	 
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	(G)	Whereas, the Buyer, Sellers and Splitska banka d.d. (" Escrow Agent ") have entered into an Escrow Agreement ("Escrow Agreement"), which Agreement makes Annex II hereto, an Escrow Account ("Escrow Account") is opened on the basis of the Escrow Agreement, and the amount of EUR 24,000,000.00 (twenty-four million Euros) has been paid on the Escrow Account. 

	(H)	Whereas, subject to the terms and conditions contained herein, the Sellers are willing to sell and Buyer is willing to purchase the Sale Shares (as defined below);

	(I)	Whereas, after execution hereof and Completion, the Buyer will acquire Nova Television Business as it is, including all rights, liabilities, indebtedness (including principal, interest, fees and charges), capitalized lease obligations of Nova TV and OK, financial and other business situation, as disclosed in documents in the Data Room as recorded in the Completion Data Room Index (as defined below).

The parties to this Agreement agreed as follows:

	1.	DEFINITIONS AND INTERPRETATION

	1.1	Definitions 

For the purpose of this Agreement, capitalized terms used herein and not otherwise defined shall have the following meanings:

 

"Adjustment Amount" means the calculation of the adjustment in working capital determined in accordance with Annex III;

 

"Adjustment Date" means the date on which the Adjustment Amount is calculated and reported to the Escrow Agent in accordance with Clause 6;

 

"Advisers" means CA IB d.d., Frane Petrica 2/III, 10000 Zagreb, Law firm "Župic & partneri", Draškoviceva 23, 10000 Zagreb, Law firm "Markovic & Plišo", Smiciklasova 21, 10000 Zagreb, Boris Jukic, Attorney at Law, Katanciceva 3, Zagreb and Mr. Alexander Trauttmansdorff, Kaiserstrasse 14, Munich, Germany;

 

"Advisers’ Fees" means fees in the net amount of € 850.000,00;

		"Affiliate" means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or under indirect or direct common Control with the specified Person and, in respect of an individual, any member of such individual’s immediate family; any Person related by marriage to such individual or his immediate family as well as members of their immediate families;

"Agent" is the notary public appointed jointly by the Sellers and Buyer who shall fulfill such obligations in respect of Completion as specified in clause 5 and obligations in respect of activities specified in clauses 4, 6 and 7;

	 
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"Agent's Instruction Letter" means an instrument by which the Parties hereto shall appoint the Agent to assume his duties pursuant to clauses 5, 6 and 7 hereto, as set forth in clause 4.1(n), attached hereto as Annex IV; 

 

"Agreement" means this Share Sale and Purchase Agreement (including its annexes);

 

"Audited Completion Balance Sheet " means the combined balance sheet of Nova TV and OK for the financial period ended 30 June 2004, prepared by Nova TV and OK and audited by Ernst &Young d.o.o.;

 

"Business Day" means any day banks are open for business with commercial clients in Zagreb or, in respect of any payment obligation of the Buyer, London;

 

"Claim" means (a) any claim, such as a condemnatory, declaratory and/or constitutive request or an enforcement application of a third person against Nova TV or OK, filed in a court of the Republic of Croatia, (b) any such claim filed with any competent court, arbitration panel or similar body which has jurisdiction over Nova TV or OK, or (c) any dispute which the Buyer (or Nova TV or OK) and the Sellers’ Representative agree in writing constitute a claim; provided that each such request meets the following requirements: (i) that the amount in dispute is not less than HRK 25.000,00, (ii) that such claim has not been filed by an Affiliate of CME, and (iii) that the request does not arise under any arrangement evidenced by a document that was properly disclosed and recorded in the Completion Data Room Index. 

 

"CME" means the parent company of the Buyer, bearing business name CENTRAL EUROPEAN MEDIA ENTERPRISES LTD., organized under the form of a limited company, having its registered offices at Clarendon House, 2 Church Street, Hamilton, HM CX Bermuda, whose shares are listed on NASDAQ under the trading symbol "CETV";

 

"Completion" means the performance by the Sellers and by the Buyer of their respective sale and purchase related obligations contemplated by clause 5 hereof;

 

"Completion Balance Sheet " means the combined balance sheet of Nova TV and OK for the financial period ended 30 June 2004, prepared by Nova TV and OK and delivered at Completion; 

 

"Completion Certificate" means a written statement substantially in the form of Annex V attached hereto confirming that the Parties have duly fulfilled or waived, as the case may be, all the condition precedent obligations set forth in clause 4 hereto, including that the Sellers delivered to the Buyer the Transfer Statements;

 

"Completion Date" means the date on which Completion occurs under this Agreement, as detailed in clause 5;

	 
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"Completion Data Room Index" means the Data Room Index as supplemented by any other documents delivered and recorded pursuant to clause 4.1(d);

 

"Control" means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership or voting rights or partnership interest, by contract or otherwise. "Controlled" and "Controlling" shall have correlative meanings;

 

"Data Room Index" means the consolidated data room index dated the date hereof and attached hereto as Annex VI;

 

"Encumbrance" means any type of security interest, encumbrance, mortgage, fiduciary ownership, pledge, lien, right of first refusal or option to acquire any of the Sale Shares; 

 

"End Date" means July 20, 2004; 

 

"Escrow Agent" is defined in Recital G;

 

"Escrow Agreement" is defined in Recital G;

 

"Euro" means the lawful currency of the European Community, with symbol €;

 

"HRK" means Croatian Kuna, the lawful currency of Croatia;

 

"Information Memorandum" means the information memorandum prepared by CAIB and provided to the Buyer;

 

"Invitation" means invitation by which Sellers invite the Buyer to Completion, in accordance with clause 5. The Invitation (i) must be executed in written form; (ii) containing the place and the time of the Completion; (iii) delivered to the Buyer at least 3 (three) Business Days before Completion.

 

"License" has the meaning assigned to it in recital C;

 

"List of Attorneys" means the list of attorneys prepared from time to time by the Sellers who are to be authorized by the Buyer to represent Nova TV and/or OK before any court, arbitration panel or similar body in the Republic of Croatia or which otherwise has jurisdiction over Nova TV or OK in the event of a Claim (including the Marcinko Claim); 

 

"Marcinko Claim" means the lawsuit filed in front of the Municipal Court of Zagreb under file no. Pr-14013/04 in the amount of HRK 855.000,00 filed by Tomislav Marcinko against Nova TV on April 7, 2004. 

 

"Net Purchase Price" means an amount (including Advisers’ Fees) equal to seventy-five percent of the Preliminary Total Purchase Price; 

 

"Nova TV" has the meaning assigned to it pursuant to Recital A;

	 
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"Nova Television Business" has the meaning assigned to it in recital C;

 

"OK" has the meaning assigned to it pursuant to recital B;

 

"Party" or "Parties" means individually either of the Sellers or the Buyer (as the context requires) or collectively the Sellers and the Buyer;

 

"Person" means any individual or legal entity, including a partnership, a joint venture, a corporation, a trust, an incorporated organization and a governmental authority;

 

"Personal Claim" means any claim, such as a condemnatory request or any other request (of declaratory and/or constitutive nature), that the Buyer has against the Sellers filed in a court of the Republic of Croatia, or any such claim submitted by the Buyer to arbitration pursuant to clause 14 hereto, with respect to a violation of the Sellers' representations, warranties and covenants hereto or any other provision of this Agreement by the Sellers, provided that each such request meets the following requirements: (i) that the amount in dispute is not less than HRK 25.000,00 and (ii) that the request does not arise as a consequence under any arrangement evidenced by a document that was properly disclosed and recorded in the Completion Data Room Index.

 

"Preliminary Adjustment Amount" means the calculation of the adjustment in working capital determined in accordance with Annex III.

 

"Preliminary Total Purchase Price" means an amount equal to €26.500.000,00 (twenty six million five hundred thousand Euros) plus an amount (whether positive or negative) equal to the Preliminary Adjustment Amount;

 

"Retained Price" means an amount equal to fifteen percent of the Total Purchase Price, payable as set forth in clause 7;

 

"Sale Shares" means any and all shares of Nova TV, each having a nominal value of HRK 500,00, as assigned to it in clause 2.1, being the subject matter of this Agreement; 

 

"SDA" means "Središnja depozitarna agencija d.d", Zagreb, Ksaver 200, Croatia, or the Central Depository Agency of the Republic of Croatia, being the institution that keeps the share registry of Nova TV; 

 

"Second Payment" means an amount equal to ten percent of the Total Purchase Price, payable as set forth in clause 6; 

 

"Total Purchase Price" means the amount payable by the Buyer for the Sale Shares as set out in clause 3.1;

 

"Transfer Statement" means the DEP-PRV share transfer order form or another appropriate statement for re-booking of the Sale Shares from the proprietary account of each of the Sellers to the proprietary account of the Buyer opened with SDA, form of which appears in Annex VII hereto;

	 
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	1.2	Where appropriate, words in the singular also include the plural and vice versa. 

	1.3	The headings in this Agreement are for convenience only and do not affect its interpretation. All references in this Agreement to a "clause" or an "annex" refers to the corresponding clause or annex to this Agreement.

	1.4	Reference to the expression "material adverse change" shall be interpreted similarly to the concept of the "changed circumstances", as provided by the Croatian Law on Obligations ("Zakon o obveznim odnosima"). 

	2	OBJECT OF THE AGREEMENT

	2.1	The Sellers agree to sell and the Buyer agrees to buy 220 (two hundred and twenty ) Sale Shares, having a nominal value of HRK 500,00 each, with a total nominal value of HRK 110.000,00 (one hundred and ten thousands Croatian Kuna’s), representing 100% (hundred percent) of the share capital of Nova TV (the "Sale Shares"), pursuant to the terms and conditions hereunder.

	2.2	The Sale Shares are kept with records of the SDA. 

	3	PRICE

	3.1	The Total Purchase Price of the Sale Shares is € 26.500.000,00 (twenty-six million five hundred thousand Euros) plus an amount (whether positive or negative) equal to the Adjustment Amount, such amount being free and clear of any taxes, duties, withholdings, exchange fees, charges or commissions, if any (but excluding any fees charged by the Escrow Agent to convert Kuna to Euros for amounts received in the Sellers Accounts). The Parties agree that reference shall be made to only amounts of Euros distributed on behalf of the Buyer from the Escrow Account for purposes of determining whether the Buyer has satisfied its obligation to make any payment hereunder.

The Total Purchase Price is comprised of the (i) Net Purchase Price, payable by the Buyer at Completion as the first portion of the Total Purchase Price in accordance with clause 3.3, (ii) the Second Payment, which will be paid in accordance with clause 6 hereto following the calculation of the Adjustment Amount and (ii) the Retained Price which will be paid as the subsequent portion of the Total Purchase Price in accordance with clause 7 hereto.

	3.2	The Buyer shall pay the Total Purchase Price to the Sellers to the accounts opened by the following persons in the proportions set out opposite their names: 

	
Boris Jukic

 
	
17,5 percent 

 
	
(for Sellers Zdravko Balenovi” and Damir Vujinovic)

 

	
Zoran Markovic
	
35,0 percent 
	
(for Sellers Boško Bojanovic, Tomislav Brezicevic and Jadran Film d.d.)

	 	 	 
	
Ante Zupic

 
	
47,50 percent

 
	
(for Sellers Vjenceslav Bacci, Ivan Blažicko, Neven Cicko, Slavica Maras, PITOS d.o.o., Vlado Pukanic, Studio Millenium d.o.o., Damir Tus, Branko Vukšic, Ante Župic)

 

	 
	 	7	 
	

Each Seller acknowledges that payments of the Net Purchase Price, the Second Payment and the Retained Price made hereunder and under the Escrow Agreement to the Sellers Accounts (as defined below) shall be deemed to be satisfaction of any obligation of the Buyer to pay any such amounts to the Sellers.

	3.3	The Escrow Agent will be instructed in accordance to Escrow Agreement, to pay to the following accounts (the "Sellers Accounts") the amounts specified in subclause (i) of clause 3.4, clause 6.4 and clause 7:

Boris Jukic, into the account no. 2330003-3240973439 opened with Escrow Agent, 

 

Zoran Markovic, into the account no. 2330003-3240975421 opened with Escrow Agent, 

 

Ante Zupic, into the account no. 2330003-3240973096 opened with Escrow Agent.

 

All such amounts shall be paid in the proportions specified in clause 3.2.

	3.4	On Completion, the Escrow Agent (i) shall transfer to the Sellers Accounts the amount equal to the Net Purchase Price less any Adviser Fees, in the proportions specified in clause 3.2, in accordance with clause 5 and the Escrow Agreement, and (ii) shall transfer to the Buyer the Advisers’ Fees.

	3.5	Each Seller acknowledges that the portion of the Total Purchase Price attributable to his or her Sale Shares is as follows: 6,472 percent to Vjenceslav Bacci, 1,081 percent to Ivan Blažicko, 12,731 percent to Boško Bojanovic, 13,519 percent to Tomislav Brezicevic, 10,794 percent to Neven Cicko, 8,75 percent to JADRAN FILM d.d, 4,375 percent to Zdravko Balenovic, 3,242 percent to Slavica Maras, 1,081 percent to PITOS d.o.o., 3,776 percent to Vlado Pukanic, 6,472 percent to STUDIO MILLENIUM d.o.o., 8,098 percent to Damir Tus, 13,125 percent to Damir Vujinovic, 1,081 percent to Branko Vukšic, 5,403 percent to Ante Župic.

	3.6	All costs, expenses, fees and commissions (including banking fees but excluding Advisers’ Fees) related to the Escrow Agreement and any interest payable in respect thereto on the escrowed amount shall be for the account of the Buyer.

	4	CONDITIONS PRECEDENT

	4.1	Completion of the sale and the purchase of the Sale Shares hereunder is conditional upon the satisfaction of the following conditions on or before the End Date:

	 
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	 	(a)	Each Seller or his duly authorized representative shall have signed and delivered to the Buyer a certificate confirming the representations and warranties set forth in Annex I are true and correct as of the Completion Date. For the avoidance of doubt and for the purposes of this subsection, the "duly authorized representative" means a person authorized by the respective Seller by a power of attorney in writing, specifying the exact scope of representative's authorities and with the respective Seller's signature certified by a notary public. 

	 	(b)	Buyer shall have signed and delivered to the Sellers’ Representative a certificate confirming the representations and warranties in clause 10 are true and correct as of the Completion Date.

	 	(c)	The Buyer shall have received the Completion Balance Sheet and a detailed calculation of the Preliminary Adjustment Amount. 

	 	(d)	The Sellers and the Buyer shall have jointly recorded all the documents from the Data Room which documents are set forth in the Data Room Index and shall submit it to the deposit of the Agent on the date hereof; and the Sellers and the Buyer shall have jointly recorded all supplemental documents delivered by the Sellers as set forth in the Completion Data Room Index on the Completion Date, which fact is stated in Notary Public minutes. 

	 	(e)	The management board of Nova TV and, if requested by the Buyer at least three Business Days prior to Completion, the management board of OK, shall have resigned from their functions by a duly signed irrevocable written resignation statements with effect from the Completion Date, submitted to the Supervisory Board of Nova TV or in the case of OK, to the shareholder, confirming that they have no claims against Nova TV or OK (apart claims for their salaries up to the date of resignation), and shall have agreed to terminate any employment or similar agreement with Nova TV or with OK. On the Completion Date the Supervisory Board of Nova TV and shareholder of OK shall have delivered to the Buyer a Decision confirming and accepting the resignation of the members of the management board of Nova TV and OK, and the appointment of the members of the respective management boards, as may be recommended by Buyer at least three Business Days prior to Completion. The members of the Supervisory Board of Nova TV shall have handed over to the Buyer the statements on their resignations to the membership in the Supervisory Board of Nova TV on the Completion Date. 

	 	(f)	The Sellers or their duly authorised representatives shall have delivered a statement to the Buyer confirming that no breach of any covenant in clause 11.2 or 11.3 has occurred.

	 	(g)	The Sellers shall have caused affiliates’ confirmations substantially in the form of Annex VIII hereto to be delivered.

	 
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	 	(h)	The shareholders of OK or their duly authorized representatives shall have delivered statements substantially in the form of Annex IX hereto that any pre-emptive rights in respect of the shares of OK have been waived. 

	 	(i)	No judgment, decision, injunction or any other order of any nature of any court, arbitration tribunal or governmental or regulatory authority shall be in effect against any of the Seller, the Buyer, Nova TV or OK which prohibits or materially alters the purchase and sale of the Sale Shares. 

	 	(j)	There shall not have occurred any material adverse change in the business, operations, assets, results, condition or prospects (financial or otherwise) of Nova TV or OK from the date of the Completion Balance Sheet. 

	 	(k)	The Buyer shall have received from the Sellers the List of Attorneys. 

	 	(l)	The Advisors shall have invoiced OK for the Advisers' Fees plus VAT. 

	 	(m)	The Buyer shall have opened its proprietary securities account with SDA. 

	 	(n)	Each of the Sellers and the Buyer shall have executed an Agent’s Instruction Letter for appointment of the Agent by which the Agent shall have assumed the duties to require from the SDA the re-booking of the Sale Shares and their transfer to from the proprietary accounts of the Sellers to the proprietary accounts of the Buyer and thereafter from the Escrow Agent to pay to the Sellers the amount of the Net Purchase Price as set forth in clause 5 below; to deliver the calculation of the Adjustment Amount and the Total Purchase Price provided by Ernst & Young as set forth in clause 6 below, and to record and report to the Escrow Agent any Claims, Personal Claims and other circumstances relevant for payment of the Retained Price, as set forth in detail in clause 7 below.

	 	(o)	The Buyer shall have received (i) executed copies of the Transfer Statement by which Nova TV will have acquired 100% of the share capital of OK, in the form of the notary public deed, (ii) the share register of OK with Nova TV recorded as the sole shareholder and (iii) a copy of the registration of Nova TV as the sole shareholder of the OK from the Commercial Court.

	 	(p)	OK shall have entered into valid transfer agreements with Global Communications d.o.o for transferring at no cost its registration to OK to be sole proprietor in Croatia of the following trademarks: 

	 
	 	10	 
	

	 

	
Title

 
	
Number

 
	
Type

 
	
Filing Date

 

	
StorySuperNova
	
Z2030713A
	
V
	
15.05.2003

	
SuperNOv@
	
Z22021179
	
V
	
07.08.2003

	
JackPot
	
Z20031248A
	
F
	
27.08.2003

	
SuperNova
	
Z20040368
	
V
	
05.03.2004

	
StorySuperNOv@
	
Z20040369
	
V
	
05.03.2004

	StorySuperNov@MusicTalents	
Z20040323
	
V
	
03.03.2004

	StorySuperNovA@MultiTalents	
Z20040322
	
V
	
03.03.2004

	StorySuperNov@MusicTalents	
Z20040371
	
F
	
05.03.2004

	StorySuperNov@MultiTalents	
Z20040370
	
F
	
05.03.2004

	
KRIŽIC-KRUŽIC
	
Z20040431
	
F
	
16.03.2004

	
JackPot
	
Z20040429
	
V
	
16.03.2004

	
Memory
	
Z20040430
	
F
	
16.03.2004

	 	 	 	 

 

and neither Nova TV nor OK shall have any liability toward Global Communications under any license agreements in respect of any the foregoing trademarks, including the license agreement of 28 November 2003 with OK (Supernova), the agreement on formats "KRIŽIC-KRUŽIC" and "MEMORY" for the territory of Croatia of 01 August 2003 and the agreement on the format "JACKPOT" for the territory of Croatia of 1 June 2003.

 

	5.	COMPLETION

 

	5.1.	Completion shall take place pursuant to an Invitation issued by the Sellers on any Business Day before the End Date; provided, that the conditions precedent in clause 4 have been fulfilled or waived by the Party entitled to enforce such condition. 

	5.2.	The Agent shall be present at the Completion and shall keep the minutes of the Completion evidencing any action taken during the Completion.

	5.3.	At Completion, each Seller or his duly authorised representative shall deliver to the Buyer the certificates, statements or other documents as provided in clauses 4.1(a), (c), (e), (f), (g), (h), (k), (l), (n), (o) and (p) shall execute a Completion Certificate.

	5.4.	At Completion, the Buyer shall deliver to the Sellers’ Representative the certificates or other documents as provided in clause 4.1(b), (m) and (n) and shall execute a Completion Certificate.

	5.5.	Fullfilment of conditions precedent set forth in clause 4.1.(d), (i) and (j) shall be jointly declared in Completion Certificate by each Seller or his duly authorised representative and the Buyer. 

	5.6	Each of the Sellers or its duly authorized representative shall execute the Transfer Statement in relation to the respective Sale Shares and shall have his signature certified by the Agent. 

	 
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	5.7	By execution and delivery of the Completion Certificate, the Sellers and the Buyer shall jointly authorise and order the Agent:

	 	(a)	to require from the SDA the re-booking of the Sale Shares and their transfer from the proprietary accounts of the Sellers to the proprietary accounts of the Buyer at SDA solely upon presentation of Transfer Statements; and 

	 	(b)	following receipt of evidence by the Agent of the re-booking of the Sale Shares and the transfer of the Sales Shares to the proprietary account of the Buyer of the SDA, to notify the Escrow Agent to pay the amount of the Net Purchase Price (including Advisers Fees) from the Escrow Account in accordance with the Escrow Agreement.

	5.8	In case that the Completion does not take place due to non-fulfilment or non-waiver of any condition set forth in clause 4.1. before the End Date, then the Agreement shall be de jure terminated at the End Date, without the fulfillment of any further formality and without the need to follow any judicial procedure, and the amount in the Escrow Account shall be released to the Buyer, unless the Parties agreed in writing prior to the End Date to postpone Completion to another date and, in such case, such another date shall be substituted for the End Date (in which case the provisions of this clause shall apply mutatis mutandis by reference to the substituted End Date). 

	5.9	The Buyer shall incur contractual liability not to exceed EUR 1.250.000,00 for any refusal to participate in the Completion following receipt of Invitation by it or a nonperformance of its obligations for Completion due to willful conduct or gross negligence; provided, that the Sellers have otherwise fulfilled all of their obligations in respect of Completion. The Sellers shall incur contractual liability not to exceed in the aggregate EUR 1.250.000,00 in the percentages specified in clause 3.5 hereof for any issuance of the Invitation by them prior to fulfillment of their obligations required for Completion or for nonperformance of their obligations on Completion due to willful conduct or gross negligence; provided, that the Buyer has otherwise performed its obligations in respect of Completion. 

	6.	POST COMPLETION - RELEASE OF SECOND PAYMENT

	6.1	On the first Business Day following Completion, the Sellers’ Representative shall (i) provide Ernst & Young d.o.o. with a copy of the calculation of the Preliminary Adjustment Amount and the Net Purchase Price and (ii) shall cause Ernst & Young d.o.o. to audit the Completion Balance Sheet and to calculate the Adjustment Amount and the Total Purchase Price.

	6.2	Ernst & Young shall deliver a copy of its calculation of the Adjustment Amount and the Total Purchase Price to the Buyer and the Sellers’ Representative. Absent manifest error, the determination of Ernst & Young shall be binding on the Buyer and the Sellers 

	6.3	In the event of a manifest error, the Buyer or the Sellers’ Representative may deliver notice to Ernst & Young d.o.o. (with a copy to the other party) by the end of the second Business Day following the date of delivery of the notice contemplated in clause 6.2. If the notice contemplated herein has been delivered to Ernst & Young d.o.o., Ernst & Young d.o.o. shall deliver a notice of its final calculation of the Adjustment Amount and the Total Purchase Price to the Agent, the Buyer and the Sellers’ Representative by the end of the second Business Day following receipt of such notice from Buyer or Sellers’ Representative. In absence of notice contemplated herein, Ernst & Young d.o.o. shall deliver a copy of its calculation of the Adjustment Amount and the Total Purchase Price to the Agent by the end of a third Business Day following the date of delivery of such documents to the Buyer and the Sellers’ Representative, as set forth in clause 6.2. hereto.

	 
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	6.4	The Agent shall cause a copy of the notice of the calculation of the Adjustment Amount and the Total Purchase Price to be delivered to the Escrow Agent. Upon receipt of such notice, the Escrow Agent shall cause the following payments to be made to the Sellers Accounts from the Escrow Account in proportions specified in clause 3.2:

	 	(a)	An amount by equal to the (i) the Total Purchase Price multiplied by 0.75 minus (ii) the Net Purchase Price (if difference is greater than zero); 

plus

	 	(b)	An amount equal to the Second Payment (as reduced by an amount equal to the (i) the Total Purchase Price multiplied by 0.75 minus (ii) the Net Purchase Price, if such amount is less than zero).

For the avoidance of doubt, the total amount received by the Sellers following the Second Payment shall be equal to the Total Purchase Price multiplied by 0.85.

	6.5	In the event the amount remaining in the Escrow Account following the distribution to the Sellers pursuant to clause 6.4 above exceeds the Retained Price, the difference shall be returned to the Buyer. In the event the amount remaining in the Escrow Account following such distribution to the Sellers is less than the Retained Price, the Buyer shall within three Business Days pay the difference into the Escrow Account. 

	7.	POST COMPLETION - RELEASE OF RETAINED PRICE

 

	7.1	The Retained Price shall be paid by the Buyer in accordance with the terms of this clause. The Parties explicitly confirm that they have agreed upon the following principles to apply with respect to the Retained Price and its payment to the Sellers:

 

		(i)	the Retained Price will be adjusted for the amount of any Claim or Personal Claim or any adjudicated amount in relation thereof that occur during the one-year period following the Completion Date;

	 
	 	13	 
	

	 

 

		(ii)	payment of the Retained Price by the Buyer shall be secured by the Escrow Account; 

 

		(iii)	for purposes of overseeing any adjustments to the Retained Price, the Buyer and the Sellers shall jointly appoint the Agent to record and report to the Escrow Agent any Claims and Personal Claims received in accordance with this clause;

 

	 	(iv)	the Sellers agree to defend Nova TV and OK from any Claims, by employing their own resources and at their own expense, apart from any advance payment of tribunal or court costs, thus having the opportunity to exercise direct control over the defense from Claims and consequent adjustments of the Retained Price;

 

	 	(v)	all amounts paid to the Sellers Accounts under this clause 7 shall be paid in the percentages foreseen by clause 3.2 hereof.

 

	7.2	Upon receipt of any notice that may in the reasonable judgment of the Buyer constitute the basis of a Claim or a Personal Claim, the Buyer may, or may cause Nova TV or OK to, deliver notice of such to the Sellers’ Representative. Notwithstanding the foregoing, such notice alone shall not be deemed to be notice of a Claim or Personal Claim and otherwise cause the suspension of any portion of the Retained Price hereunder.

	7.3	Upon receipt of a Claim at any time during a period not to exceed one year from the Completion Date, the Buyer shall, or shall cause Nova TV or OK to, (i) notify the Sellers’ Representative and the Agent of such Claim and deliver a copy of the Claim certified by a notary public and relevant documentation as soon as possible but not later than the end of the second Business Day following the date on which the Claim was received; (ii) deliver to the Sellers' Representative the power of attorney in writing empowering all the attorneys from the List of Attorneys for the representation of Nova TV or OK in the particular proceeding related to the Claim; (iii) during the proceedings initiated by the Claim, continue to deliver documents and provide such other information or assistance, with the due care of a prudent businessman, that either the Buyer or the Sellers’ Representative deems necessary for a successful defense of the Claim; and (iv) respond to any request from the Sellers’ Representative for documents or other information in respect of subclause (iii) within two Business Days of the receipt of such request. Upon initiation of a Personal Claim at any time during the one-year period from the Completion Date, the Buyer shall notify the Agent of such Personal Claim. The Agent shall be responsible for notifying the Escrow Agent of any Claims or Personal Claims and the resolution thereof as described herein. 

	7.4	An attorney representing the Buyer may also be empowered by the Buyer and such attorney shall have access to all documents and information on actions undertaken in proceedings in respect of any Claim or, in the event of any single Claim that exceeds the Retained Price then available, shall have the right to intervene on the side of either Nova TV or OK. The Sellers shall cover all costs of legal representation in proceedings related to a Claim, including the fees for attorneys from the List of Attorneys, as well as any other costs of proceedings such as court fees, arbitration fees, etc, including reimbursement of any advance payment made in accordance with clause 7.1 (iv); provided, that any attorneys fees awarded to Nova TV or OK in respect of the fees of any attorneys appointed hereunder from the List of Attorneys shall be reimbursed to the Sellers. 

	 
	 	14	 
	

	 

	7.5	Each time the Agent is notified of a Claim or a Personal Claim (pursuant to clause 7.3), the Agent shall have the duty to promptly notify the Escrow Agent of the corresponding amount of the Retained Price that is in dispute. Upon receipt of each such notice, the Escrow Agent shall suspend payment of the amount in dispute from the Retained Price. 

The Agent shall have the duty to review all such notices within 5 (five) Business Days in order to confirm that proceedings in respect of the Claim or the Personal Claim have been duly instituted. 

 

If the Agent concludes that such Claim or Personal Claim has not been duly instituted, he shall notify the Buyer, the Sellers' Representative and the Escrow Agent, and the Escrow Agent shall lift the suspension of the payment of the amount in dispute from the Retained Price. 

	7.6	In the event (i) an acknowledgement or settlement of a Claim is negotiated in good faith by an attorney from the List of Attorneys and (ii) the amount of the Claim that is the subject of such acknowledgement or settlement, together with any other Claim pending at such time, does not exceed the amount of the Retained Price (reduced by any Settlement Amount or Judgment Amount assessed against Nova TV or OK prior to the date thereof) available at such time, the Sellers’ Representative shall submit such acknowledgement or settlement to the Agent (with a copy to the Buyer) within one Business Day of its execution. The Retained Price shall be reduced by the amount of such settlement or acknowledgement, including any court, tribunal or other costs assessed against Nova TV or OK in respect of such acknowledgement settlement (the "Settlement Amount").

In the event (i) an acknowledgement or settlement of a Claim is negotiated in good faith by an attorney from the List of Attorneys and (ii) the amount of the Claim that is the subject of such acknowledgement or settlement, either singly or together with any other Claim pending at such time exceeds the amount of the Retained Price (reduced by any Settlement Amount or Judgment Amount assessed against Nova TV or OK prior to the date thereof) available at such time, the Sellers’ Representative shall submit (i) such acknowledgement or settlement to Nova TV and OK, with a copy to the Buyer, for consent and (ii) a copy of such acknowledgement or settlement together with evidence of its delivery and the date thereof to Nova TV or OK to the Agent. The Buyer shall, or shall cause Nova TV or OK to, respond to a request for consent to such acknowledgement or settlement within 10 Business Days of receipt by notice to the Sellers’ Representative, with a copy to the Agent. Failure by the Buyer, Nova TV or OK to respond to a request for consent within such period shall be deemed to be a consent to such request ("Implied Consent"). Following the receipt of consent (including Implied Consent), the Sellers’ Representative shall promptly notify the Agent, the Buyer, Nova TV and OK, and the Retained Price shall be reduced by the Settlement Amount. 

	 
	 	15	 
	

	 

	7.7	In the event of a final judgment in favor of the Buyer for a Personal Claim or against Nova TV or OK for a Claim, the Retained Price (reduced by any Settlement Amount or Judgment Amount assessed against Nova TV or OK prior to the date thereof) available at such time shall be decreased for the amount equal to (i) the value of such Claim or Personal Claim plus (ii) any interest and court or other tribunal costs assessed against the losing party in respect of such Claim or Personal Claim (the "Judgment Amount"); provided, that the Retained Price shall only be reduced by the Settlement Amount (rather than the Judgment Amount) in respect of any Claim that has prior to final judgment been the subject of a request for acknowledgement or settlement from the Seller’s Representative in accordance with clause 7.6 to which the Buyer did not consent. In case the amount of a Claim or Personal Claim is expressed in HRK, the calculation of that amount in Euros shall be subject to the median exchange rate of Croatian National Bank (Hrvatska narodna banka) for adequate currency valid on the day of a final judgment or acknowledgement or settlement. In the event the amount of a Claim or Personal Claim is expressed in any other currency (other than HRK or Euro), the amount shall be converted according to the currency index published by the Financial Times of the date of a final judgment or acknowledgement or settlement. The Buyer shall, or shall cause Nova TV or OK to, notify the Agent and the Sellers' Representative of such final judgment and the Judgment Amount. The Sellers’ Representative is also authorised to notify the Agent of any such judgement and Judgment Amount, with a copy of such notice delivered to the Buyer.

	7.8	Each time the Agent receives notice in relation to an executed acknowledgement or settlement of a Claim (pursuant to clause 7.6) or is notified of a final judgment and the Judgment Amount (pursuant to clause 7.7), the Agent shall confirm that: 

(i) with respect to executed acknowledgement or settlement of a Claim, the Buyer has given his explicit consent or Implied Consent, if required, or 

 

(ii) with respect to a Personal Claim, a final judgment was issued in favor of the Buyer, or with respect to a Claim, a final judgment was issued against Nova TV or OK, including the Judgment Amount. 

 

The Agent shall promptly notify the Escrow Agent , the Buyer, Nova TV, OK and the Sellers' Representative that the Retained Price then payable shall be reduced by the Settlement Amount or the Judgment Amount and that an amount equal to such Judgment Amount or Settlement Amount, as applicable, be promptly released from the Escrow Account to the Buyer. Notwithstanding any other provision of this clause 7, in the event the Marcinko Claim results in a Settlement Amount or a Judgment Amount against Nova TV, the Buyer and Sellers agree that the Retained Price shall be reduced by fifty percent (50%) of such Settlement Amount or Judgment Amount and further agree to cause notice of such fact to be delivered to the Agent for purposes of notifying the Escrow Agent.

	 
	 	16	 
	

	 

If with respect to a Personal Claim, a final judgment was passed against the Buyer, or with respect to a Claim a final judgment was passed in favor of Nova TV or OK, the Agent shall notify the Escrow Agent, and the Escrow Agent shall lift the suspension of the payment of the amount in dispute from the Retained Price in respect of such Claim or Personal Claim. 

	7.9	If, on the last day of the one-year period following the Completion Date, (i) no Claims or Personal Claims are pending and (ii) there has been no final judgment in respect of any Personal Claim in favor of the Buyer or any Claim against Nova TV or OK or any executed acknowledgment or settlement of any Claim, the Retained Price shall be paid to the Sellers in the proportions specified in clause 3.2.

In the event any Judgment Amount has been assessed against Nova TV or OK or in favor of the Buyer, or any Settlement Amount has been agreed prior to the end of the one-year period, the amount of the Retained Price payable to the Sellers at such time shall be reduced by any Judgment Amount or Settlement Amount that has not been previously applied to reduce the Retained Price.

	7.10	On the first anniversary of the Completion Date, the portion of the Retained Price (as reduced by any Settlement Amount or Judgment Amount assessed against Nova TV or OK in accordance with clause 7.6 or 7.7 prior to the date thereof) in excess of any pending Claims or Personal Claims shall be paid to the Sellers Accounts. 

Upon a final judgment or acknowledgement or settlement of any Claim or Personal Claim pending on the first anniversary of the Completion Date, the Buyer, the Sellers’ Representatives, Nova TV or OK are authorised to notify the Agent as provided in clauses 7.6 and 7.7; provided, that the Party delivering such notice to the Agent shall deliver a copy to the other Parties. The Agent shall notify the Escrow Agent and the other Parties as provided in clause 7.9. The Retained Price available at such time shall be reduced by the amount of the Judgement Amount or Settlement Amount. If no Judgement Amount or Settlement Amount is payable, the portion of the Retained Price then available in excess of any then remaining Claims or Personal Claims shall be released to the Sellers. At the time when no such Claims or Personal Claims remain pending, any then remaining amounts of the Retained Price shall be released to the Sellers Accounts. 

 

	7.11	The Buyer bears the responsibility for any act or omission of Nova TV or OK in respect of clause 7 hereto. 

 

	7.12	The Parties agree to include in the Escrow Agreement and in the Agent's Instruction Letter the terms of this clause as well as any other terms necessary to facilitate the fulfillment of respective obligations of the Parties, the Agent and the Escrow Agent. The Buyer may substitute other adequate security for the Escrow Agreement with the prior written consent of the Sellers’ Representative; provided, that such security contains all of the material characteristics of the Escrow Agreement.

	 
	 	17	 
	

	 

	8.	SELLERS’ WARRANTIES 

 

	8.1.	Each Seller represents and warrants to the Buyer that each of the representations and warranties as set forth in Annex I are true and accurate in all respects and not misleading as of the date hereof, shall remain true and accurate as of the Completion Date and, except as provided in clause 9.2 hereof, in the period following one year after the Completion Date, or such other date on which the Retained Price or any portion of it shall be finally and fully paid. 

 

	8.2.	Except as set forth in Annex I, Sellers make no other representation or warranty whatsoever, whether express or implied, in connection with Nova TV, OK or this Agreement. 

 

	9.	INDEMNIFICATION AND LIMITATION OF LIABILITY 

 

	9.1.	Except as provided in clause 9.2 below, the liability of each Seller hereunder shall be several and limited only and exclusively up to the amount of the Retained Price for all representations and warranties set out in Annex 1 and will survive until the first anniversary of the Completion Date, other than representations, warranties and related indemnities for which the Claim and/or Personal Claim shall be pending as of the end of the one-year period, in which event such indemnities shall survive with respect to such indemnification claim until the final resolution thereof. The indemnification can only and exclusively be made through the reduction of the Retained Price in accordance with clause 7. 

	9.2.	With respect to the representation as to the ownership by each Seller of the Sale Shares and the ownership by Nova TV of the shares of OK, in Annex 1, the liability shall be limited to the pro rata percentage of the Net Purchase Price increased for the Second Payment and the settled part of the Retained Price for each Seller as set forth in clause 3.5 and shall last for the period of 5 years from the Completion Date.

	9.3.	Each of the Sellers, exclusively within the limits expressed in clause 9.1 and 9.2 hereto, agrees to indemnify and hold harmless the Buyer, its shareholders, directors, officers, successors, representatives and agents from and against any and all liabilities, debts, losses, costs, damages, claims and causes of action of every nature (vested and contingent), expenses, interest and penalties (including, without limitation, reasonable attorneys' fees, expenses and disbursements), which the Buyer or the above persons may sustain at any time by reason of the breach by such Seller of any of its representations, warranties or covenants contained in this Agreement or arising from or relating to any action or failure to act. It is understood that, notwithstanding any provision of this Agreement to the contrary, no Seller shall be entitled to seek recourse against, or in any manner shift its liability to or counterclaim against Nova TV or OK for any breach by such Seller of this Agreement or its representations, warranties and covenants contained herein. 

	 
	 	18	 
	

	 

	9.4.	The Buyer shall indemnify and hold harmless each Seller and its directors, officers, successors, representatives and agents from and against any and all liabilities, debts, losses, costs, damages, claims and causes of action of every nature (vested and contingent), expenses, interest and penalties (including, without limitation, reasonable attorneys' fees, expenses and disbursements) which such Seller or any of the above persons may sustain at any time by reason of the breach by the Buyer of any of the representations, warranties or covenants contained in this Agreement or arising from or relating to any action or failure to act due to gross negligence and willful misconduct on the part of the Buyer. The total liability of the Buyer hereunder shall not exceed an amount equal to the Retained Price at the time such liability arises.

	10.	BUYER’S WARRANTIES 

	10.1.	The Buyer represents and warrants to the Sellers as follows:

	 	(a)	the Buyer is a legal person, duly organized and validly existing in accordance with the laws of the Netherlands;

	 	(b)	the Buyer is Affiliate of CME; 

	 	(c)	the Buyer has full capacity, corporate power and authority to execute, deliver and perform this Agreement and complete the transaction contemplated hereby and it has taken all actions necessary to execute and deliver, and to exercise its rights and perform its obligations under this Agreement; 

	 	(d)	the execution of this Agreement by the Buyer will not breach any provision of law or judgment applicable to the Buyer or any provision of its constitutive documents; 

	 	(e)	no consent, approval, authorization or other action by, filing with or notification to, any governmental or other regulatory authority is required to be made or obtained by the Buyer prior to, or as a condition to, the signing or performance of any of the obligations under this Agreement;

	 	(f)	this Agreement, upon due execution by the Buyer will constitute a legal, valid and binding obligation of the Buyer, enforceable against the Buyer; 

	 	(g)	the person signing this Agreement on behalf of the Buyer is legally authorized to do so; and

		(h)	the Buyer shall cause OK to pay the Advisers' Fees (plus VAT) within 15 days of Completion.

 

	10.2.	The Buyer declared to have conducted its own due diligence investigation of the business affairs of Nova TV on the basis of such information and documentation made available in the Data Room as recorded in the Data Room Index and conducted interviews with Nova TV’s management and employees. The Buyer expressly confirms that it has not relied upon the Information Memorandum nor upon any part thereof in formulating its offer or deciding to enter into this Agreement. For avoidance of doubt, and without limitation to the foregoing, the Buyer acknowledges that it has not relied upon or been induced to enter into this Agreement by any statements or representations or warranties except as specifically set forth herein.

	 
	 	19	 
	

	 

	11.	COVENANTS 

	11.1.	The Buyer and each of the Sellers undertakes to cooperate and take such steps as may be reasonably required for Completion in accordance with clause 4. The Buyer agrees to open a proprietary securities account with the SDA. Time is of the essence for fulfillment of obligations of any Party in respect of the Completion, under this Agreement. 

 

	11.2.	From the date hereof until the Completion Date, each Seller undertakes (to the extent permissible by law) to, and to cause Nova TV and OK, as applicable, to, operate the Nova Television Business in substantially the same manner in which it has been operated. Each Seller further undertakes (to the extent permissible by law), and to cause Nova TV and OK, as applicable, that, without the prior written consent of the Buyer (such consent not to be unreasonably withheld or delayed), each Seller shall not, and shall ensure that neither Nova TV nor OK, as applicable, shall not:

 

	 	(a)	create or issue, or agree to create or issue, any new shares in Nova TV or OK, or to grant or agree to grant any option or any similar instrument in respect of the shares of Nova TV or OK;

	 	(b)	enter into any loan or credit agreement in respect of the Nova Television Business, save based on the prior written consent of the Buyer, or incur indebtedness (whether as debtor, guarantor or otherwise);

	 	(c)	create, extend, grant, issue, or agree to create, extend, grant or issue any Encumbrance on any shares or assets of Nova TV or OK;

	 	(d)	write off any receivables or release any debtors;

	 	(e)	enter into, or agree to enter into, any new contract (other than any contract with an Adviser for the payment of the Advisors' Fees for services in respect of this transaction) or an amendment to an existing contract if (i) such contract has a term greater than one-year or a value in excess of EUR 25.000,00, (ii) it is a barter contract, or (iii) it contains terms or conditions not in the ordinary course of business;

	 	(f)	enter, or agree to enter, any contract or amendment to an existing contract involving a capital expenditure or capital commitment in excess of EUR 25.000,00, either singly or in the aggregate; 

	 	(g)	acquire or agree to acquire assets by hire purchase or deferred sale or similar transaction; 

	
 
	(h)	dispose or agree to dispose of fixed assets; 

	 
	 	20	 
	

	 

	 	(i)	declare or pay any dividends or other distributions; 

	 	(k)	pay, or agree to pay, any of the directors, officers, employees, representatives or agents of Nova TV or OK any increased remuneration or other or additional compensation or benefit; 

	 	(l)	terminate any employees of Nova TV or OK other than for cause. 

	11.3	Each Seller further agrees: 

	 	(a)	to open an account with the Escrow Agent and to cause the Advisers to open accounts with the Escrow Agent; 

	 	(b)	to use the due care of a prudent businessman between the date hereof and the Completion to ensure that material customers of the Nova Television Business continue to have dealings with the Nova Television Business; and 

	 	(c)	to provide notice to the Buyer of any claim or proceeding initiated against Nova TV or OK prior to the Completion Date whose value is in excess of HRK 350.000,00.

	12.	TERMINATION 

 

	12.1.	This Agreement may be terminated at any time prior to the Completion Date:

 

		(a)	With the mutual consent of Sellers and the Buyer; 

 

	 	(b)	By Sellers or the Buyer, if the Completion shall not have taken place on or before the End Date; provided, however, that the right to terminate this Agreement under this clause shall not be available to any Party whose willful failure to fulfill any obligation under this Agreement has been the cause of or resulted in the failure of the Completion to occur on or before such date.

	12.2.	If this Agreement is terminated pursuant to clause 12.1, all obligations of the Parties hereunder (except for clauses 9 (Indemnification) and 13 (Confidentiality)) shall terminate without liability of any Party (or any shareholder, director, officer, employee, agent, consultant or representative of such Party) to any other Party, except that no such termination shall relieve any Party from liability for any willful breach of this Agreement or its obligations hereunder.

	13.	CONFIDENTIALITY AND ANNOUNCEMENTS 

	13.1.	Each Party undertakes that it shall, together with its employees, officers, advisors and other agents hold in strict confidence all data and information regarding Nova TV, OK, the Nova Television Business and its operations, including the terms of this Agreement ("Confidential Information"), and will not, and will use its best efforts to ensure that such other persons do not, disclose such Confidential Information to others without the prior written consent of the other Parties, except that the Buyer may provide such Confidential Information in response to legal process or applicable governmental regulations, but only that portion of the Confidential Information which is legally required to be furnished and further provided that the Buyer notifies in writing the Sellers' Representative of its obligation to provide such Confidential Information so far as it is practicable. For purposes of this clause, "Confidential Information" shall not include any information that:

	 
	 	21	 
	

	 

		(a)	becomes available within the public domain other than (i) as a result of a breach of this Agreement or (ii) by means of other unauthorized disclosure or use; or

	 	(b)	is provided to the Buyer by a person or entity (other than Sellers) that is lawfully in possession of such information and has the lawful right to disclose or use it.

	13.2.	No Party shall make any announcement or press release in respect of this Agreement or the terms hereof without the prior consent of the other parties hereto.

	14.	GOVERNING LAW AND DISPUTE RESOLUTION

	14.1	This Agreement will be governed by and construed in accordance with the laws of Croatia. 

	14.2	Except as provided in clause 14.3 and 14.4, any dispute arising out of or in connection with this Agreement (including any question regarding its existence, validity or termination) shall be referred to, and finally resolved in arbitration proceedings conducted under the Rules of Arbitration of the International Chamber of Commerce ("ICC") (the "Rules"). The Rules are deemed to be incorporated by reference into this Agreement. The tribunal shall consist of one arbitrator who shall be agreed upon by the Buyer and Sellers’ Representative in writing (pursuant to the Rules), or if they fail to do so, within 21 days of the day when any of the Parties requested the dispute to be resolved by arbitration, by one arbitrator appointed pursuant to the Rules. The place of arbitration shall be Vienna, Austria and the English language shall be used throughout the arbitral proceedings. The Parties will be bound by any ensuing arbitral award. 

	14.3	Notwithstanding clause 14.2, the Buyer may bring any dispute in connection with a Personal Claim before the courts of the Republic of Croatia; provided, that the Buyer does not submit the same matter to arbitration in accordance with clause 14.2.

	14.4	Notwithstanding clause 14.2, the Sellers may bring any dispute in connection with whether clause (ii) or (iii) of the definition of a Claim has been satisfied before the competent court in Zagreb; provided, that the Sellers do not submit the same matter to arbitration in accordance with clause 14.2.

	 
	 	22	 
	

	 

	15.	MISCELLANEOUS 

	15.1.	This Agreement contains the entire agreement of the Parties in relation to the Sale Shares and supersedes any prior agreement or understanding regarding its object. No modification of this Agreement shall become effective unless made in writing and signed by, or on behalf of, each of the Parties.

	15.2.	Each of the Parties shall separately bear all legal, accountancy, financial advisor and other consultancy costs and expenses incurred by them in connection with this Agreement and the sale and purchase of the Sale Shares, unless otherwise specifically provided hereto.

	15.3.	In the event that any of the provisions of this Agreement is or becomes thereafter illegal, invalid or unenforceable under the applicable law, the legality, validity and enforceability of the other provisions of this Agreement shall not be affected or prejudiced by it. The Parties shall use their best efforts in order to perform those acts and/or modifications as are necessary to generate the same legal and/or economic result that was aimed upon the conclusion of this Agreement.

	15.4.	This Agreement shall be personal to the Parties to it. It may not be assigned in whole or in part by any Seller without the prior written consent of the Buyer, such consent not to be unreasonably withheld or delayed. Except for any assignment required for compliance with any Croatian statutory requirement or assignments to Nova TV or OK contemplated in clause 6, it shall not be assigned in whole or in part by the Buyer without the prior written consent of the Sellers’ Representative, such consent not to be unreasonably withheld or delayed. 

	15.5.	Notices and communications

		(a)	All notices and communications addressed to any Party shall be made in writing in English language and will be either: (i) transmitted personally, (ii) transmitted through fax, (iii) transmitted through registered mail or by courier,to the addresses specified below or to another address beforehand indicated in writing with at least 2 Business Days before the date of delivery of the respective notice/communication.

 

	 	
For the Sellers:
	
Mr. Zoran Markovic

	 	 	
Markovic & Pliso

	 	 	
Smiciklasova 21

	 	 	
Zagreb 10000

	 	 	
Croatia

	 	 	
Fax: 385 1 46 99 499

	 	 	
Email: zmarkovic@markovicpliso.hr

	 	 	 
	 	
and
	 
	 	 	 
	 	 	
Mr. Ante Zupic

	 	 	
Zupic and Partners

	 	 	
Draskoviceva 23

	 	 	
Zagreb

	 	 	
Croatia

	 	 	
Fax: 385 1 46 12 607

	 	 	
Email: zupic@zupic.hr

	 
	 	23	 
	

	 

 

	 	
For the attention of:
	
Sellers’ Representative

	 	 	 
	 	
For the Buyer:
	
c/o CME Group

	 	 	
71-91 Aldwych

	 	 	
London W2B 4HN

	 	 	
United Kingdom

	 	 	
Fax: 44 20 7430 5403

	 	 	
Email: daniel.penn@cme-net.com

	 	 	 
	 	
For the attention of:
	
General Counsel

	 	 	 
	 	
With a copy to:
	
Nova TV d.d.

	 	 	
Vukovarska 72

	 	 	
Zagreb

	 	 	
Fax: 385 1 

	 	 	
Email: uprava@ok-novatv.hr

	 	 	 
	 	
For the attention of:
	
Finance Director

	 	(b)	Notices will be considered received by the Party to which it is addressed: (i) on the day of delivery, if have been delivered personally with evidence of receipt or (ii) on the date of the fax transmission, provided that a facsimile-generated confirmation statement is retained by the sender and delivered to the recipient upon request - in case of transmission by fax or (iii) on date when receipt confirmation is signed - for registered mail or courier transmission. 

		(c)	The Parties acknowledge that Sellers herewith appoint Mr. Zoran Markovic and Mr. Ante Zupic to act jointly as the Sellers’ Representative (the "Sellers’ Representative") for the purpose of delivery and receipt on their behalf of any notices and communications in relation to this Agreement and as otherwise provided herein. Notice from the Sellers’ Representative shall only be considered valid if it is signed jointly by Mr. Zoran Markovic and Mr. Ante Zupic or persons duly appointed as attorneys for them. Notice properly delivered to Sellers’ Representative shall be deemed to be delivered if delivered to both Mr. Zoran Markovic and Mr. Ante Zupic or persons duly appointed as attorneys for them and shall be deemed to be delivered to all Sellers for purposes of this Agreement.

 

	15.6.	Fees payable to the Agent acting pursuant to the terms Letter shall be borne equally by the Buyer on the one hand and the Sellers on the other.

 

	 
	 	24 	 
	

	 

	15.7.	The Agreement is signed in 17 originals in the Croatian language and 17 originals in English language. One original in each language shall be delivered to the Agent. If there is a conflict between the Croatian and English versions, the English version shall prevail.

 

 

	  
	 	25	 
	

	 

Annex I - Sellers’ Representations and Warranties

 

Annex II - Escrow Account Agreement

 

Annex III - Preliminary Adjustment Amount and Adjustment Amount

 

Annex IV - Agent’s Instruction Letter

 

Annex V - Completion Certificate

 

Annex VI - Data Room Index

 

Annex VII - Share Transfer Form

 

Annex VIII - Affiliate Confirmation Letters

 

Annex IX - Waiver of Preemption Rights

 

Annex X - Copies of Powers of Attorneys

 

	  
	 	26	 
	

	 

Vjenceslav Bacci

Signature:___________________________

Name: Ante Zupic

Title: Attorney

Ivan Blažicko

Signature:___________________________
            Name: Ante Zupic

Title: Attorney

Boško Bojanovic

Signature:___________________________
            Name: Zoran Markovic

Title: Attorney

Tomislav Brezicevic

Signature:___________________________
            Name: Zoran Markovic

Title: Attorney

Neven Cicko

Signature:___________________________
            Name: Ante Zupic

Title: Attorney

JADRAN FILM d.d. 

Signature:___________________________

Name: Zoran Markovic

Title: Attorney

Zdravko Balenovic

Signature:___________________________

Name: Boris Jukic

Title: Attorney

	 
	 	27	 
	

	 

Slavica Maras

Signature:___________________________

Name: Ante Zupic

Title: Attorney

PITOS d.o.o. 

Signature:___________________________

Name: Ante Zupic

Title: Attorney

Vlado Pukanic

Signature:___________________________

Name: Ante Zupic

Title: Attorney

STUDIO MILLENIUM d.o.o. 

Signature:___________________________

Name: Ante Zupic

Title: Attorney

 

Damir Tus

Signature:___________________________

Name: Ante Zupic

Title: Attorney

Damir Vujinovic

Signature:___________________________

Name: Boris Jukic

Title: Attorney

Branko Vukšic

Signature:___________________________

Name: Ante Zupic

Title: Attorney

	 
	 	28	 
	

	 

Ante Župic

Signature:___________________________

Name: Ante Zupic

Title: Attorney

CME Media Enterprises BV

Signature:___________________________

Name: Daniel Penn

Title: Attorney

 

	 
	 	29EXHIBIT 10.7

                               EXCHANGE AGREEMENT

                                     Between

                                  Unicorp, Inc.

                                       and

                            Affiliated Holdings, Inc.

                               Dated July 29, 2004

<PAGE>
                               EXCHANGE AGREEMENT

     THIS  EXCHANGE  AGREEMENT  (hereinafter referred to as this "Agreement") is
entered  into  as  of this 29th day of July 2004 by and between UNICORP, Inc., a
Nevada  corporation (hereinafter referred to as "Unicorp"), Affiliated Holdings,
Inc.,  a  Texas  corporation (hereinafter referred to as "Affiliated Holdings"),
and  all  of  the  shareholders of Affiliated Holdings ("Shareholders") upon the
following  premises:

                                    Premises
                                    --------

     WHEREAS, Unicorp is a publicly held corporation organized under the laws of
the  State  of  Nevada;

     WHEREAS,  Affiliated  Holdings is a corporation organized under the laws of
the  State  of  Texas;

     WHEREAS, management of the constituent corporations have determined that it
is  in  the best interest of the parties that Unicorp acquire 100% of the issued
and  outstanding  securities of Affiliated Holdings in exchange for the issuance
of  certain  shares of Unicorp to the Shareholders (the "Exchange") on the terms
described  herein;  and

     WHEREAS,  Unicorp and the Shareholders desire to set forth the terms of the
Exchange,  which is intended to constitute a tax-free reorganization pursuant to
the  provisions  of  Section  368(a)(1)(B) of the Internal Revenue Code of 1986.

                                    Agreement
                                    ---------

     NOW  THEREFORE,  on the stated premises and for and in consideration of the
mutual covenants and agreements hereinafter set forth and the mutual benefits to
the  parties  to  be  derived  herefrom,  it  is  hereby  agreed  as  follows:

                                    ARTICLE I

    REPRESENTATIONS, COVENANTS, AND WARRANTIES OF AFFILIATED HOLDINGS, INC.

     As  an  inducement to, and to obtain the reliance of Unicorp, except as set
forth  on the Affiliated Holdings Schedules (as hereinafter defined), Affiliated
Holdings  represents  and  warrants  as  follows:

     Section 1.01   Organization.  Affiliated  Holdings  is  a  corporation duly
                    ------------
organized, validly existing, and in good standing under the laws of the State of
Texas and has the corporate power and is duly authorized, qualified, franchised,
and  licensed  under all applicable laws, regulations, ordinances, and orders of
public  authorities  to own all of its properties and assets and to carry on its
business  in  all  material  respects  as  it  is now being conducted, including
qualification to do business as a foreign corporation in the states or countries
in  which  the character and location of the assets owned by it or the nature of
the business transacted by it requires qualification, except where failure to be
so qualified would not have a material adverse effect on its business.  Complete
and  correct  Articles  of  Incorporation  and  Bylaws  as in effect on the date
hereof,  have  been  delivered  to  Unicorp.  The execution and delivery of this
Agreement does not, and the consummation of the transactions contemplated hereby
will  not,  violate  any  provision  of  Affiliated  Holdings'  Articles  of
Incorporation  or  Bylaws. Affiliated Holdings has taken all actions required by
law,  its  Articles  of  Incorporation  or Bylaws, or otherwise to authorize the
execution  and  delivery of this Agreement.  Affiliated Holdings has full power,
authority,  and  legal  right  and  has  taken  all  action required by law, its
Articles  of  Incorporation  and  Bylaws  and  otherwise  to  consummate  the
transactions  herein  contemplated.

     Section 1.02   Capitalization.  The authorized capitalization of Affiliated
                    --------------
Holdings  consists  of  1,000  shares of common stock, of which 1,000 shares are
currently issued and outstanding.  All issued and outstanding shares are legally
issued,  fully  paid,  and  non-assessable  and  not  issued in violation of the
preemptive  or  other  rights  of  any  person.

<PAGE>
     Section 1.03   Subsidiaries  and  Predecessor  Corporations.  Affiliated
                    --------------------------------------------
Holdings  does not have any predecessor corporation(s) or subsidiaries, and does
not own, beneficially or of record, any shares of any other corporation.

     Section 1.04   Financial  Statements.
                    ---------------------

          (a)  All  such  financial  statements have been prepared in accordance
     with  generally  accepted  accounting  principles.  The Affiliated Holdings
     balance sheets present a true and fair view as of the dates of such balance
     sheets  of  the  financial  condition  of  Affiliated  Holdings. Affiliated
     Holdingsdid not have, as of the dates of such balance sheets, except as and
     to  the  extent  reflected  or reserved against therein, any liabilities or
     obligations  (absolute  or  contingent)  which  should  be reflected in the
     balance  sheets or the notes thereto, prepared in accordance with generally
     accepted  accounting  principles,  and  all  assets  reflected  therein are
     properly  reported and present fairly the value of the assets of Affiliated
     Holdings  in  accordance  with  generally  accepted  accounting principles.

          (b)  Affiliated  Holdings  has  no  liabilities  with  respect  to the
     payment  of any federal, state, county, local or other taxes (including any
     deficiencies,  interest or penalties), except for taxes accrued but not yet
     due  and  payable.

          (c)  Affiliated  Holdings has filed all state, federal or local income
     and/or  franchise  tax returns required to be filed by it from inception to
     the date hereof. Each of such income tax returns reflects the taxes due for
     the period covered thereby, except for amounts which, in the aggregate, are
     immaterial.

          (d)  The  books  and  records,  financial and otherwise, of Affiliated
     Holdings  are  in  all material respects complete and correct and have been
     maintained in accordance with good business and accounting practices.

          (e)  All of Affiliated Holdings' assets are reflected on its financial
     statements,  and,  except as set forth in the Affiliated Holdings Schedules
     or  the  financial  statements of Affiliated Holdings or the notes thereto,
     Affiliated  Holdings  has  no  material  liabilities,  direct  or indirect,
     matured  or  unmatured,  contingent  or  otherwise.

     Section 1.05   Information.  The information concerning Affiliated Holdings
                    -----------
set  forth  in  this Agreement is complete and accurate in all material respects
and  does not contain any untrue statement of a material fact or omit to state a
material  fact  required  to  make  the  statements  made,  in  light  of  the
circumstances  under  which  they  were  made,  not  misleading.  In  addition,
Affiliated  Holdings  has  fully disclosed in writing to Unicorp all information
relating  to  matters involving Affiliated Holdings or its assets or its present
or  past  operations  or  activities which (i) indicated or may indicate, in the
aggregate,  the  existence  of  a  greater  than $50,000 liability of Affiliated
Holdings.

     Section 1.06   Options  or  Warrants.  There  are  no  existing  options,
                    ---------------------
warrants,  calls, or commitments of any character relating to the authorized and
unissued  Affiliated  Holdings  common  stock.

     Section 1.07   Absence  of Certain Changes or Events.  Except  as set forth
                    -------------------------------------
in  this  Agreement;

          (a)  there  has  not  been  (i)  any  material  adverse  change in the
     business,  operations,  properties,  assets,  or  condition  of  Affiliated
     Holdings  or  (ii)  any damage, destruction, or loss to Affiliated Holdings
     (whether  or  not  covered by insurance) materially and adversely affecting
     the  business,  operations,  properties, assets, or condition of Affiliated
     Holdings  ;

          (b)  Affiliated  Holdings  has  not  (i)  amended  its  Articles  of
     Incorporation  or  Bylaws;  (ii)  declared or made, or agreed to declare or
     make,  any  payment of dividends or distributions of any assets of any kind
     whatsoever  to stockholders or purchased or redeemed, or agreed to purchase
     or redeem, any of its capital stock; (iii) waived any rights of value which
     in the aggregate are outside of the ordinary course of business or material
     considering  the  business  of  Affiliated Holdings; (iv) made any material
     change  in  its  method of management, operation or accounting; (v) entered
     into any other material transaction other than sales in the ordinary course
     of  its  business;  (vi)  made  any  accrual  or arrangement for payment of
     bonuses or special compensation of any kind or any severance or termination
     pay  to any present or former officer or employee; (vii) increased the rate
     of  compensation  payable or to become payable by it to any of its officers
     or  directors  or  any  of  its  salaried  employees

<PAGE>
     whose  monthly  compensation exceeds $5,000; or (viii) made any increase in
     any  profit  sharing,  bonus,  deferred  compensation,  insurance, pension,
     retirement,  or  other  employee benefit plan, payment, or arrangement made
     to,  for,  or  with its officers, directors, or employees other than in the
     ordinary  course  of  business;

          (c)  Affiliated  Holdings has not (i) borrowed or agreed to borrow any
     funds  or  incurred,  or  become  subject  to,  any  material obligation or
     liability  (absolute  or  contingent) except as disclosed herein and except
     liabilities  incurred  in  the  ordinary  course  of business; (ii) paid or
     agreed  to  pay  any  material  obligations  or  liability  (absolute  or
     contingent)  other  than  current  liabilities reflected in or shown on the
     most  recent  Affiliated  Holdings  balance  sheet, and current liabilities
     incurred  since  that  date  in  the  ordinary  course  of  business  and
     professional and other fees and expenses in connection with the preparation
     of  this  Agreement  and  the consummation of the transactions contemplated
     hereby;  (iii)  sold  or transferred, or agreed to sell or transfer, any of
     its assets, properties, or rights (except assets, properties, or rights not
     used or useful in its business which, in the aggregate have a value of less
     than  $10,000),  or  canceled,  or  agreed  to  cancel, any debts or claims
     (except  debts or claims which in the aggregate are of a value of less than
     $10,000);  (iv)  made  or  permitted  any  amendment  or termination of any
     contract, agreement, or license to which it is a party if such amendment or
     termination  is  material, considering the business of Affiliated Holdings;
     or (v) issued, delivered, or agreed to issue or deliver any stock, bonds or
     other  corporate  securities  including  debentures (whether authorized and
     unissued  or  held  as  treasury  stock);  and

          (d)  to the best knowledge of Affiliated Holdings, Affiliated Holdings
     has  not  become  subject  to  any  law  or regulation which materially and
     adversely  affects,  or  in  the  future may adversely affect the business,
     operations, properties, assets, or condition of Affiliated Holdings.

     Section 1.08   Title and Related Matters.  Affiliated Holdings has good and
                    -------------------------
marketable  title  to all of its properties, inventory, interests in properties,
and assets, real and personal, which are reflected in the most recent Affiliated
Holdings  balance  sheet  or  acquired  after  that  date  (except  properties,
inventory,  interests  in  properties,  and assets sold or otherwise disposed of
since such date in the ordinary course of business) free and clear of all liens,
pledges,  charges,  or encumbrances except (a) statutory liens or claims not yet
delinquent  and (b) such imperfections of title and easements as do not and will
not materially detract from or interfere with the present or proposed use of the
properties  subject  thereto  or affected thereby or otherwise materially impair
present  business  operations on such properties; Affiliated Holdings owns, free
and  clear  of  any  liens,  claims,  encumbrances,  royalty interests, or other
restrictions or limitations of any nature whatsoever, any and all products it is
currently  manufacturing,  including the underlying technology and data, and all
procedures,  techniques, marketing plans, business plans, methods of management,
or  other information utilized in connection with Affiliated Holdings' business;
no  third  party  has any right to, and Affiliated Holdings has not received any
notice  of  infringement  of  or  conflict  with  asserted rights of others with
respect  to  any  product,  technology, data, trade secrets, know-how, propriety
techniques,  trademarks,  service  marks,  trade  names,  or  copyrights  which,
individually  or  in  the  aggregate, if the subject of an unfavorable decision,
ruling  or  finding,  would  have  a  materially adverse effect on the business,
operations,  financial  condition,  income,  or business prospects of Affiliated
Holdings or any material portion of its properties, assets, or rights.

     Section 1.09   Litigation  and  Proceedings.  There  are no actions, suits,
                    ----------------------------
proceedings,  or  investigations  pending  or,  to  the  knowledge of Affiliated
Holdings  after  reasonable  investigation,  threatened by or against Affiliated
Holdings  or  affecting  Affiliated  Holdings  or  its  properties, at law or in
equity,  before  any  court  or  other  governmental  agency or instrumentality,
domestic  or foreign, or before any arbitrator of any kind.  Affiliated Holdings
does  not have any knowledge of any material default on its part with respect to
any  judgment,  order,  injunction,  decree,  award,  rule, or regulation of any
court,  arbitrator,  or  governmental  agency  or  instrumentality  or  of  any
circumstances  which,  after  reasonable  investigation,  would  result  in  the
discovery  of  such  a  default.

      Section 1.10   Contracts.
                     ---------

          (a)  There  are  no  "material"  contracts,  agreements,  franchises,
     license  agreements,  debt  instruments  or  other  commitments  to  which
     Affiliated  Holdings  is  a  party  or  by  which  it or any of its assets,
     products,  technology, or properties are bound other than those incurred in
     the  ordinary  course  of business (as used in this Agreement, a "material"
     contract,  agreement,  franchise,  license  agreement,  debt  instrument or
     commitment  is  one  which  (i) will remain in effect for more than six (6)

                                        3
<PAGE>
     months  after  the  date  of  this  Agreement  or  (ii)  involves aggregate
     obligations of at least one-hundred thousand dollars ($100,000));

          (b)  All  material  contracts,  agreements,  franchises,  license
     agreements,  and  other commitments to which Affiliated Holdings is a party
     or  by  which  its  properties  are  bound  and  which  are material to the
     operations  of  Affiliated  Holdings  taken  as  a  whole  are  valid  and
     enforceable  by  Affiliated  Holdings in all respects, except as limited by
     bankruptcy  and  insolvency  laws and by other laws affecting the rights of
     creditors  generally;

          (c)  Affiliated  Holdings  is  not  a  party  to  or bound by, and the
     properties of Affiliated Holdings are not subject to any material contract,
     agreement,  other  commitment or instrument; any charter or other corporate
     restriction;  or  any  judgment,  order, writ, injunction, decree, or award
     which  materially  and  adversely  affects,  the  business  operations,
     properties, assets, or condition of Affiliated Holdings; and

          (d)  Affiliated  Holdings  is  not  a party to any oral or written (i)
     contract  for  the  employment  of  any  officer  or  employee which is not
     terminable on 30 days, or less notice; (ii) profit sharing, bonus, deferred
     compensation,  stock  option,  severance pay, pension benefit or retirement
     plan,  (iii)  material  agreement,  contract,  or indenture relating to the
     borrowing  of  money,  (iv)  guaranty  of any obligation, other than one on
     which  Affiliated Holdings is a primary obligor, for the borrowing of money
     or  otherwise,  excluding  endorsements  made  for  collection  and  other
     guaranties  of  obligations which, in the aggregate do not exceed more than
     one  year  or providing for payments in excess of $50,000 in the aggregate;
     (vi)  collective  bargaining agreement; or (vii) agreement with any present
     or  former  (on  or  after  Jan. 1, 2002) officer or director of Affiliated
     Holdings.

     Section 1.11   Material  Contract Defaults.  Affiliated  Holdings is not in
                    ---------------------------
default  in  any  material  respect  under the terms of any outstanding material
contract, agreement, lease, or other commitment and there is no event of default
in  any  material respect under any such material contract, agreement, lease, or
other  commitment in respect of which Affiliated Holdings has not taken adequate
steps  to  prevent  such  a  default  from  occurring.

     Section 1.12   No  Conflict  With Other Instruments.  The execution of this
                    ------------------------------------
Agreement  and  the  consummation  of  the  transactions  contemplated  by  this
Agreement  will not result in the breach of any term or provision of, constitute
an  event  of default under, or terminate, accelerate or modify the terms of any
material  indenture,  mortgage,  deed  of  trust,  or  other  material contract,
agreement, or instrument to which Affiliated Holdings is a party or to which any
of  its  properties  or  operations  are  subject.

     Section 1.13   Governmental  Authorizations.  Affiliated  Holdings  has all
                    ----------------------------
licenses,  franchises,  permits,  and other governmental authorizations that are
legally  required  to enable it to conduct its business in all material respects
as  conducted  on the date hereof.  Except for compliance with federal and state
securities  and  corporation  laws,  as  hereinafter provided, no authorization,
approval,  consent,  or  order of, or registration, declaration, or filing with,
any  court  or  other  governmental  body  is  required  in  connection with the
execution  and  delivery  by  Affiliated  Holdings  of  this  Agreement  and the
consummation  by  Affiliated  Holdings  of the transactions contemplated hereby.

     Section 1.14   Compliance  With  Laws  and Regulations.  To the best of its
                    ---------------------------------------
knowledge  Affiliated  Holdings  has  complied  with all applicable statutes and
regulations  of  any  federal,  state,  or  other  governmental entity or agency
thereof,  except  to  the  extent  that  noncompliance  would not materially and
adversely  affect  the business, operations, properties, assets, or condition of
Affiliated  Holdings or except to the extent that noncompliance would not result
in the occurrence of any material liability for Affiliated Holdings.

     Section 1.15   Insurance.  All of the properties of Affiliated Holdings are
                    ---------
insured  for  an  amount  deemed  reasonable.

     Section 1.16   Approval of Agreement.  The board of directors of Affiliated
                    ---------------------
Holdings  has  authorized  the  execution  and  delivery  of  this  Agreement by
Affiliated  Holdings  and  has  approved  this  Agreement  and  the transactions
contemplated  hereby.

                                        4
<PAGE>
     Section 1.17   Valid  Obligation.  This  Agreement  and  all agreements and
                    -----------------
other  documents  executed  by  Affiliated  Holdings  in  connection  herewith
constitute  the valid and binding obligation of Affiliated Holdings, enforceable
in  accordance  with its or their terms, except as may be limited by bankruptcy,
insolvency,  moratorium  or  other  similar  laws  affecting  the enforcement of
creditors'  rights  generally  and  subject  to  the  qualification  that  the
availability  of  equitable  remedies  is subject to the discretion of the court
before  which  any  proceeding  therefor  may  be  brought.

                                   ARTICLE II

              REPRESENTATIONS, COVENANTS, AND WARRANTIES OF UNICORP

     As  an inducement to, and to obtain the reliance of Affiliated Holdings and
the  Affiliated  Holdings  Shareholders,  except  as  set  forth  in the Unicorp
Schedules  (as hereinafter defined), Unicorp represents and warrants as follows:

     Section 2.01   Organization.  Unicorp  is  a  corporation  duly  organized,
                    ------------
validly existing, and in good standing under the laws of the State of Nevada and
has  the  corporate  power  and  is  duly authorized, qualified, franchised, and
licensed  under  all  applicable  laws,  regulations,  ordinances, and orders of
public  authorities  to  own  all  of its properties and assets, to carry on its
business in all material respects as it is now being conducted, and except where
failure  to  be  so  qualified  would  not have a material adverse effect on its
business,  there  is  no  jurisdiction in which it is not qualified in which the
character  and  location of the assets owned by it or the nature of the business
transacted  by  it  requires  qualification.  The execution and delivery of this
Agreement does not, and the consummation of the transactions contemplated hereby
will  not,  violate  any  provision of Unicorp's certificate of incorporation or
bylaws.  Unicorp  has  taken  all  action  required  by  law, its certificate of
incorporation,  its bylaws, or otherwise to authorize the execution and delivery
of  this  Agreement,  and Unicorp has full power, authority, and legal right and
has  taken all action required by law, its certificate of incorporation, bylaws,
or otherwise to consummate the transactions herein contemplated.

     Section 2.02   Capitalization.  Unicorp's  authorized  capitalization
                    --------------
consists  of  1,500,000,000  shares  of  common  stock, par value $.001 of which
596,469  shares  are issued and outstanding. No shares of preferred stock or any
other  claim  of common stock are authorized.  All issued and outstanding shares
are  legally  issued, fully paid, and non-assessable and not issued in violation
of  the  preemptive  or  other  rights  of  any  person.

     Section 2.03   Subsidiaries and Predecessor Corporations.  Unicorp does not
                    -----------------------------------------
have  any  predecessor  corporation(s)  or  subsidiaries,  and  does  not  own,
beneficially or of record, any shares of any other corporation.

     Section 2.04   Securities  Filings;  Financial  Statements.
                    -------------------------------------------

          (a)  For at least the past twenty-four months Unicorp has timely filed
     all  forms,  reports and documents required to be filed with the Securities
     and  Exchange  Commission,  and  has  heretofore  delivered  to  Affiliated
     Holdings,  in  the  form  filed  with the Commission, (i) all quarterly and
     annual  reports  on  Forms  10-QSB and 10-KSB filed since December 31, 2001
     (ii)  all  other  reports filed by Unicorp with the Securities and Exchange
     Commission  since  December 31, 2001, (collectively, the "SEC Reports") and
     (iii)  all comment letters from the Securities and Exchange Commission with
     respect to the SEC Reports. The SEC Reports (i) were prepared in accordance
     with  the  requirements  of  the  Securities  Exchange  Act  of 1934 or the
     Securities Act of 1933, as appropriate, and (ii) did not contain any untrue
     statement  of  a material fact or omit to state a material fact required to
     be  stated therein or necessary in order to make the statements therein, in
     the  light  of the circumstances under which they were made, not misleading
     as of the date hereof none of its SEC Reports need to be amended to correct
     any  prior  disclosure  in  order  for prior SEC Reports to not contain any
     untrue  statement  of material fact or omission to state any material fact.
     Unicorp is current in all of its obligations under federal securities laws.

          (b)  All  such  financial  statements have been prepared in accordance
     with  generally  accepted  accounting  principles  consistently  applied
     throughout  the periods involved. The Unicorp balance sheets present fairly
     as  of their respective dates the financial condition of Unicorp. As of the
     date  of  such  balance  sheets,  except  as and to the extent reflected or
     reserved  against  therein,  Unicorp  had  no  liabilities  or  obligations
     (absolute  or  contingent)  which  should  be  reflected  in  the

                                        5
<PAGE>
     balance  sheets  or the notes thereto prepared in accordance with generally
     accepted  accounting  principles,  and  all  assets  reflected  therein are
     properly reported and present fairly the value of the assets of Unicorp, in
     accordance with generally accepted accounting principles. The statements of
     operations,  stockholders'  equity  and  cash  flows  reflect  fairly  the
     information  required  to  be  set  forth  therein  by  generally  accepted
     accounting  principles.

          (c)  Unicorp  has  no  liabilities  with respect to the payment of any
     federal,  state,  county, local or other taxes (including any deficiencies,
     interest  or  penalties),  except  for  taxes  accrued  but not yet due and
     payable.

          (d)  Unicorp  has  timely  filed  all  state,  federal or local income
     and/or  franchise  tax returns required to be filed by it from inception to
     the date hereof. Each of such income tax returns reflects the taxes due for
     the period covered thereby, except for amounts which, in the aggregate, are
     immaterial.

          (e)  The books and records, financial and otherwise, of Unicorp are in
     all  material  aspects  complete  and  correct  and have been maintained in
     accordance  with  good  business  and  accounting  practices.

          (f)  All  of  Unicorp's  assets  are  reflected  on  its  financial
     statements,  and,  except  as  set  forth  in  the Unicorp Schedules or the
     financial  statements  of  Unicorp  or  the  notes  thereto, Unicorp has no
     material  liabilities, direct or indirect, matured or unmatured, contingent
     or  otherwise.

     Section 2.05   Information.  The  information  concerning Unicorp set forth
                    -----------
in  this  Agreement  and  the  Unicorp Schedules is complete and accurate in all
material  respects and does not contain any untrue statements of a material fact
or  omit to state a material fact required to make the statements made, in light
of  the  circumstances under which they were made, not misleading.  In addition,
Unicorp  has  fully  disclosed  in  writing to Affiliated Holdings (through this
Agreement  or  the  Unicorp  Schedules)  all  information  relating  to  matters
involving  Unicorp or its assets or its present or past operations or activities
which  (i)  indicated  or  may  indicate,  in  the aggregate, the existence of a
greater  than  $25,000  liability  of  Unicorp.

     Section 2.06   Options  or  Warrants.  There  are  no  existing  options,
                    ---------------------
warrants,  calls,  or  commitments  of  any character relating to any issued and
outstanding  capital  stock  or  to any authorized and unissued capital stock of
Unicorp.

     Section 2.07   Absence of Certain Changes or Events.  Since the date of the
                    ------------------------------------
most  recent  Unicorp  balance  sheet:

          (a)  there  has  not  been  (i)  any  material  adverse  change in the
     business,  operations,  properties,  assets or condition of Unicorp or (ii)
     any  damage,  destruction  or  loss  to  Unicorp (whether or not covered by
     insurance)  materially  and  adversely  affecting the business, operations,
     properties,  assets  or  condition  of  Unicorp;

                                        6
<PAGE>
          (b)  Unicorp  has  not (i) amended its certificate of incorporation or
     bylaws;  (ii) declared or made, or agreed to declare or make any payment of
     dividends  or  distributions  of  any  assets  of  any  kind  whatsoever to
     stockholders or purchased or redeemed, or agreed to purchase or redeem, any
     of  its  capital  stock;  (iii)  waived  any  rights  of value which in the
     aggregate  are  outside  of  the  ordinary  course  of business or material
     considering  the  business of Unicorp; (iv) made any material change in its
     method  of  management,  operation,  or  accounting;  (v)  entered into any
     transactions  or  agreements other than in the ordinary course of business;
     (vi)  made  any accrual or arrangement for or payment of bonuses or special
     compensation of any kind or any severance or termination pay to any present
     or  former  officer  or  employee; (vii) increased the rate of compensation
     payable  or  to become payable by it to any of its officers or directors or
     any  of its salaried employees whose monthly compensation exceed $1,000; or
     (viii)  made  any  increase  in  any  profit  sharing,  bonus,  deferred
     compensation,  insurance,  pension,  retirement,  or other employee benefit
     plan,  payment,  or  arrangement,  made  to,  for  or  with  its  officers,
     directors,  or  employees;

          (c)  Unicorp  has  not  (i)  granted  or  agreed to grant any options,
     warrants,  or  other  rights  for  its  stock,  bonds,  or  other corporate
     securities  calling for the issuance thereof or with respect to outstanding
     common  stock;  (ii) borrowed or agreed to borrow any funds or incurred, or
     become  subject  to,  any  material  obligation  or  liability (absolute or
     contingent) except liabilities incurred in the ordinary course of business;
     (iii)  paid  or  agreed  to  pay  any  material  obligations or liabilities
     (absolute  or  contingent)  other  than current liabilities reflected in or
     shown  on  the  most  recent  Unicorp balance sheet and current liabilities
     incurred  since  that  date  in  the  ordinary  course  of  business  and
     professional and other fees and expenses in connection with the preparation
     of  this  Agreement  and  the  consummation of the transaction contemplated
     hereby; (iv) sold or transferred, or agreed to sell or transfer, any of its
     assets,  properties,  or  rights  (except assets, properties, or rights not
     used or useful in its business which, in the aggregate have a value of less
     than  $1000), or canceled, or agreed to cancel, any debts or claims (except
     debts or claims which in the aggregate are of a value less than $1000); (v)
     made  or permitted any amendment or termination of any contract, agreement,
     or  license  to  which  it  is  a party if such amendment or termination is
     material, considering the business of Unicorp; or (vi) issued, delivered or
     agreed to issue or deliver, any stock, bonds, or other corporate securities
     including  debentures  (whether authorized and unissued or held as treasury
     stock),  except  in  connection  with  this  Agreement;  and

          (d)  to  the  best  knowledge of Unicorp, it has not become subject to
     any  law  or  regulation  which materially and adversely affects, or in the
     future,  may adversely affect, the business, operations, properties, assets
     or  condition  of  Unicorp.

     Section 2.08   Title and Related Matters.  Unicorp  has good and marketable
                    -------------------------
title  to  all of its properties, inventory, interest in properties, and assets,
real  and personal, which are reflected in the most recent Unicorp balance sheet
or  acquired  after  that  date  (except  properties,  inventory,  interest  in
properties,  and  assets  sold  or  otherwise disposed of since such date in the
ordinary  course of business), free and clear of all liens, pledges, charges, or
encumbrances  except  (a) statutory liens or claims not yet delinquent; (b) such
imperfections  of  title and easements as do not and will not materially detract
from  or  interfere  with  the present or proposed use of the properties subject
thereto  or  affected  thereby  or  otherwise materially impair present business
operations  on  such  properties; and (c) as described in the Unicorp Schedules.
Except  as  set  forth in the Unicorp Schedules, Unicorp owns, free and clear of
any  liens,  claims,  encumbrances,  royalty interests, or other restrictions or
limitations  of  any  nature  whatsoever,  any  and all products it is currently
manufacturing, including the underlying technology and data, and all procedures,
techniques,  marketing  plans,  business  plans, methods of management, or other
information utilized in connection with Unicorp's business.  Except as set forth
in  the  Unicorp Schedules, no third party has any right to, and Unicorp has not
received  any  notice  of  infringement  of  or conflict with asserted rights of
others  with  respect to any product, technology, data, trade secrets, know-how,
propriety  techniques,  trademarks,  service  marks,  trade names, or copyrights
which,  individually  or  in  the  aggregate,  if  the subject of an unfavorable
decision,  ruling  or  finding,  would  have  a materially adverse effect on the
business,  operations,  financial  condition,  income,  or business prospects of
Unicorp  or  any  material  portion  of  its  properties,  assets,  or  rights.

     Section 2.09   Litigation  and  Proceedings.  There  are  no  actions,  SEC
                    ----------------------------
inquires  (formal or informal), suits, proceedings or investigations pending or,
to  the  knowledge  Unicorp  after  reasonable  investigation,  threatened by or
against  Unicorp  or  affecting  Unicorp or its properties, at law or in equity,
before  any  court  or other governmental agency or instrumentality, domestic or
foreign,  or  before  any  arbitrator  of  any  kind.

                                        7
<PAGE>
Unicorp  has  no  knowledge  of  any  default  on  its  part with respect to any
judgement,  order,  writ,  injunction,  decree, award, rule or regulation of any
court, arbitrator, or governmental agency or instrumentality or any circumstance
which  after  reasonable  investigation  would  result  in the discovery of such
default.

     Section 2.10   Contracts.
                    ---------

          (a)  Unicorp  is  not a party to, and its assets, products, technology
     and  properties are not bound by, any material contract, franchise, license
     agreement,  agreement,  debt  instrument  or other commitments whether such
     agreement  is  in  writing  or  oral

          (b)  All  contracts,  agreements,  franchises, license agreements, and
     other  commitments  to  which Unicorp is a party or by which its properties
     are  bound  and  which are material to the operations of Unicorp taken as a
     whole  are  valid  and  enforceable  by  Unicorp in all respects, except as
     limited  by  bankruptcy and insolvency laws and by other laws affecting the
     rights  of  creditors  generally;

          (c)  Unicorp  is  not  a  party  to or bound by, and the properties of
     Unicorp  are  not  subject  to any contract, agreement, other commitment or
     instrument;  any  charter  or other corporate restriction; or any judgment,
     order,  writ,  injunction,  decree, or award which materially and adversely
     affects,  the  business  operations,  properties,  assets,  or condition of
     Unicorp;  and

          (d)  Except  as  included  or  described  in  the Unicorp Schedules or
     reflected  in the most recent Unicorp balance sheet, Unicorp is not a party
     to  any  oral  or written (i) contract for the employment of any officer or
     employee  which  is  not terminable on 30 days, or less notice; (ii) profit
     sharing, bonus, deferred compensation, stock option, severance pay, pension
     benefit  or  retirement  plan,  (iii)  agreement,  contract,  or  indenture
     relating  to the borrowing of money, (iv) guaranty of any obligation, other
     than  one on which Unicorp is a primary obligor, for the borrowing of money
     or  otherwise,  excluding  endorsements  made  for  collection  and  other
     guaranties  of  obligations which, in the aggregate do not exceed more than
     one  year  or providing for payments in excess of $25,000 in the aggregate;
     (vi)  collective  bargaining agreement; or (vii) agreement with any present
     or  former  officer  or  director  of  Unicorp.

     Section 2.11   Material  Contract  Defaults.  Unicorp  is not in default in
                    ----------------------------
any  material  respect  under  the terms of any outstanding contract, agreement,
lease,  or  other  commitment  which  is  material  to the business, operations,
properties,  assets  or condition of Unicorp and there is no event of default in
any  material  respect  under  any  such  contract,  agreement,  lease, or other
commitment  in  respect of which Unicorp has not taken adequate steps to prevent
such  a  default  from  occurring.

     Section 2.12   No  Conflict With Other Instruments.  The  execution of this
                    -----------------------------------
Agreement  and  the  consummation  of  the  transactions  contemplated  by  this
Agreement  will not result in the breach of any term or provision of, constitute
a default under, or terminate, accelerate or modify the terms of, any indenture,
mortgage,  deed  of  trust,  or  other material agreement or instrument to which
Unicorp is a party or to which any of its assets or operations are subject.

     Section 2.13   Governmental  Authorizations.  Unicorp  has  all  licenses,
                    ----------------------------
franchises,  permits,  and  other  governmental authorizations, that are legally
required  to  enable  it  to  conduct  its  business  operations in all material
respects  as  conducted  on the date hereof.  Except for compliance with federal
and  state  securities  or  corporation  laws,  as  hereinafter  provided,  no
authorization,  approval,  consent  or order of, of registration, declaration or
filing with, any court or other governmental body is required in connection with
the  execution and delivery by Unicorp of this Agreement and the consummation by
Unicorp  of  the  transactions  contemplated  hereby.

     Section 2.14   Compliance  With  Laws and Regulations.  To  the best of its
                    --------------------------------------
knowledge,  Unicorp has complied with all applicable statutes and regulations of
any  federal,  state, or other applicable governmental entity or agency thereof,
except  to  the  extent  that  noncompliance  would not materially and adversely
affect  the  business, operations, properties, assets or condition of Unicorp or
except  to  the  extent that noncompliance would not result in the occurrence of
any  material  liability.  This  compliance includes, but is not limited to, the
filing  of  all  reports  to date with federal and state securities authorities.

     Section 2.15   Insurance.  All  of  the  properties  of  Unicorp  are fully
                    ---------
insured  for  their  full  replacement

                                        8
<PAGE>
cost.

     Section 2.16   Approval  of  Agreement.  The board  of directors of Unicorp
                    -----------------------
has  authorized  the execution and delivery of this Agreement by Unicorp and has
approved  this  Agreement  and  the  transactions  contemplated  hereby and will
recommend  to  its  shareholders  that  they  approve  this  Agreement  and  the
transactions  contemplated  hereby.

     Section 2.17   Continuity  of  Business  Enterprises.  Unicorp  has  no
                    -------------------------------------
commitment  or  present  intention  to  liquidate Affiliated Holdings or sell or
otherwise  dispose  of  a  material  portion of Affiliated Holdings' business or
assets  following  the  consummation  of  the  transactions contemplated hereby.

     Section 2.18   Material  Transactions or Affiliations.  Except as disclosed
                    --------------------------------------
herein  and  in  the  Unicorp  Schedules, there exists no contract, agreement or
arrangement  between  Unicorp  and any predecessor and any person who was at the
time  of such contract, agreement or arrangement an officer, director, or person
owning  of  record  or  known  by Unicorp to own beneficially, 5% or more of the
issued  and  outstanding common stock of Unicorp and which is to be performed in
whole  or  in part after the date hereof or was entered into not more than three
years  prior  to  the  date  hereof.  Neither  any  officer,  director,  nor  5%
shareholder  of  Unicorp  has,  or has had since inception of Unicorp, any known
interest,  direct  or  indirect,  in any such transaction with Unicorp which was
material to the business of Unicorp.  Unicorp has no commitment, whether written
or  oral,  to  lend any funds to, borrow any money from, or enter into any other
transaction  with,  any  such  affiliated  person.

     Section 2.19   Bank  Accounts;  Power  of Attorney.  Set  forth in Schedule
                    -----------------------------------
2.19  is  a  true and complete list of (a) all accounts with banks, money market
mutual funds or securities or other financial institutions maintained by Unicorp
within the past twelve (12) months, the account numbers thereof, and all persons
authorized  to  sign or act on behalf of Unicorp, (b) all safe deposit boxes and
other  similar  custodial  arrangements  maintained  by  Unicorp within the past
twelve  (12) months, and (c) the names of all persons holding powers of attorney
from  Unicorp  or  who are otherwise authorized to act on behalf of Unicorp with
respect  to  any matter, other than its officers and directors, and a summary of
the  terms  of  such  powers  or  authorizations.

     Section 2.20   Valid  Obligation.  This  Agreement  and  all agreements and
                    -----------------
other  documents executed by Unicorp in connection herewith constitute the valid
and  binding  obligation of Unicorp, enforceable in accordance with its or their
terms,  except  as may be limited by bankruptcy, insolvency, moratorium or other
similar  laws  affecting  the  enforcement  of  creditors'  rights generally and
subject  to  the  qualification  that  the availability of equitable remedies is
subject  to the discretion of the court before which any proceeding therefor may
be  brought.

                                   ARTICLE III

                                PLAN OF EXCHANGE

     Section 3.01   The  Exchange.  On  the  terms and subject to the conditions
                    -------------
set  forth  in this Agreement, on the Closing Date (as defined in Section 3.03),
each  Affiliated  Holdings  Shareholder  who  shall elect to accept the exchange
offer  described  herein  (the "Accepting Shareholders"), shall assign, transfer
and  deliver,  free  and  clear  of  all  liens, pledges, encumbrances, charges,
restrictions  or known claims of any kind, nature, or description, the number of
shares  of  common  stock  of Affiliated Holdings  in the aggregate constituting
100% of the issued and outstanding shares of common stock of Affiliated Holdings
held  by  each  of  such  shareholders; the objective of such Exchange being the
acquisition  by  Unicorp  of  100% of the issued and outstanding common stock of
Affiliated  Holdings.  In  exchange  for  the transfer of such securities by the
Affiliated Holdings Shareholders, Unicorp shall issue to the Affiliated Holdings
Shareholders  (1)  an  aggregate of 75 million shares of common stock of Unicorp
(the  "Initial  Shares").  At  the Closing, each Affiliated Holdings Shareholder
shall,  on  surrender  of  his  certificate  or  certificates  representing such
Affiliated  Holdings  shares  to  Unicorp or its registrar or transfer agent, be
entitled  to  receive a certificate or certificates evidencing his proportionate
interest  in  the  Initial  Shares.  Upon  consummation  of  the  transaction
contemplated  herein,  assuming  participation by all of the Affiliated Holdings
Shareholders, all of the shares of capital stock of Affiliated Holdinsg shall be
held  by  Unicorp.

     Section 3.02   Anti-Dilution.  The number of shares of Unicorp common stock
                    -------------
issuable  upon

                                        9
<PAGE>
exchange  pursuant  to Section 3.01 shall be appropriately adjusted to take into
account  any  other  stock  split,  stock  dividend,  reverse  stock  split,
recapitalization,  or similar change in the Unicorp common stock which may occur
(i) between the date of the execution of this Agreement and the Closing Date, as
to  the  Initial  Shares,  and  (ii)  between  the date of the execution of this
Agreement and the release date, as to the Additional Shares.

     Section 3.03   Closing.  The  closing  ("Closing")  of  the  transactions
                    -------
contemplated  by  this  Agreement  shall  be  on  a date and at such time as the
parties  may  agree  ("Closing  Date")  but  not  later than July 29, 2004. Such
Closing shall take place at a mutually agreeable time and place.

     Section 3.04   Closing  Events.  At  the  Closing,  Unicorp,  Affiliated
                    ---------------
Holdings  and each of the Accepting Shareholders shall execute, acknowledge, and
deliver  (or  shall  ensure to be executed, acknowledged, and delivered) any and
all  certificates,  opinions,  financial  statements,  schedules,  agreements,
resolutions,  rulings  or  other instruments required by this Agreement to be so
delivered  at  or prior to the Closing, together with such other items as may be
reasonably requested by the parties hereto and their respective legal counsel in
order  to  effectuate  or  evidence the transactions contemplated hereby.  Among
other things, Unicorp shall provide an opinion of counsel acceptable to Brewer &
Pritchard,  P.C.  as  to such matters as Brewer & Pritchard, P.C. may reasonably
request

     Section 3.05   Termination.
                    -----------
          (a)  This  Agreement  may  be  terminated by the board of directors of
either  Unicorp  or Affiliated Holdings at any time prior to the Closing Date if
there shall be any actual or threatened action or proceeding before any court or
any  governmental body which shall seek to restrain, prohibit, or invalidate the
transactions  contemplated by this Agreement and which, in the judgement of such
board  of  directors,  made in good faith and based upon the advice of its legal
counsel,  makes  it  inadvisable  to  proceed  with  the  Exchange.

     In the event of termination pursuant to this paragraph (a) of Section 3.05,
     no  obligation,  right  or  liability shall arise hereunder, and each party
     shall  bear  all  of  the  expenses  incurred  by it in connection with the
     negotiation,  drafting,  and  execution  of  this  Agreement

          (b)  This  Agreement  may  be  terminated by the board of directors of
     Unicorp  at  any  time  prior  to  the  Closing  Date  if:

               (i)    the board of directors of Unicorp determines in good faith
          that  one or more of Unicorp's conditions to Closing has not occurred,
          through  no  fault  of  Unicorp.

               (ii)   Affiliated  Holdings  shall fail to comply in any material
          respect  with  any  of  its  covenants or agreements contained in this
          Agreement or if any of the representations or warranties of Affiliated
          Holdings contained herein shall be inaccurate in any material respect,
          where  such  noncompliance or inaccuracy has not been cured within ten
          (10)  days  after  written  notice  thereof.

               (iii)  Affiliated  Holdings  updates its Schedules or disclaimers
          that  Unicorp  finds  unacceptable.

     If  this  Agreement is terminated pursuant to this paragraph (b) of Section
     3.05, this Agreement shall be of no further force or effect, and each party
     shall  bear  its  own  costs  incurred  in connection with the negotiation,
     preparation,  and  execution  of  this  Agreement.

          (c)  This  Agreement  may  be  terminated by the board of directors of
     Affiliated  Holdings  at  any  time  prior  to  the  Closing  Date  if:

               (i)    the  board  of directors of Affiliated Holdings determines
          in  good  faith that one or more of Affiliated Holdings' conditions to
          Closing  has  not  occurred,  through no fault of Affiliated holdings;

               Affiliated  Holdings  (ii)   Unicorp  shall fail to comply in any
          material  respect with any of its covenants or agreements contained in
          this  Agreement  or  if  any  of  the representations or warranties of
          Unicorp  contained herein shall be inaccurate in any material respect,
          where  such  noncompliance or inaccuracy has not been cured within ten
          (10)  days  after  written

                                       10
<PAGE>
          notice  thereof.

               (iii)  Unicorp updates its disclosure or Schedule that Affiliated
Holdings  finds  unacceptable.

     If  this  Agreement is terminated pursuant to this paragraph (c) of Section
     3.05, this Agreement shall be of no further force or effect, and each party
     shall  bear  its  own  costs  incurred  in connection with the negotiation,
     preparation  and  execution  of  this  Agreement.

                                   ARTICLE IV

                                SPECIAL COVENANTS

     Section 4.01   Access  to  Properties and Records.  Unicorp  and Affiliated
                    ----------------------------------
Holdings  will each afford to the officers and authorized representatives of the
other  full access to the properties, books and records of Unicorp or Affiliated
Holdings,  as the case may be, in order that each may have a full opportunity to
make  such reasonable investigation as it shall desire to make of the affairs of
the  other.

     Section 4.02   Delivery  of Books and Records.  At  the Closing, Affiliated
                    ------------------------------
Holdings  shall  deliver to Unicorp the originals of the corporate minute books,
books  of  account,  contracts,  records,  and  all  other books or documents of
Affiliated  Holdings  now  in  the  possession  of  Affiliated  Holdings  or its
representatives.

     Section 4.03   Third  Party  Consents  and  Certificates.  Unicorp  and
                    -----------------------------------------
Affiliated  Holdings  agree  to cooperate with each other in order to obtain any
required  third  party  consents  to  this Agreement and the transactions herein
contemplated.

     Section 4.04   Reserved.
                    --------

     Section 4.05   Reserved.
                    --------

     Section 4.06   Consent  of  Affiliated  Holdings Shareholders.  Kevan Casey
                    ----------------------------------------------
shall  use  his  best  efforts  to obtain the consent of all Affiliated Holdings
Shareholders  to  participate  in  the  Exchange.

     Section 4.07   Reserved.
                    --------

     Section 4.08   Exclusive  Dealing Rights.  Until 5:00 P.M. Central Daylight
                    -------------------------
Time on July 29, 2004.

          (a)  In  recognition  of the substantial time and effort which Unicorp
     has  spent  and will continue to spend in investigating Affiliated Holdings
     and  its business and in addressing the matters related to the transactions
     contemplated  herein,  each  of which may preempt or delay other management
     activities,  neither  Affiliated  Holdings,  nor  any  of  its  officers,
     employees, representatives or agents will directly or indirectly solicit or
     initiate any discussions or negotiations with, or, except where required by
     fiduciary  obligations  under  applicable  law  as  advised  by  counsel,
     participate  in  any  negotiations  with  or  provide any information to or
     otherwise  cooperate  in any other way with, or facilitate or encourage any
     effort  or attempt by, any corporation, partnership, person or other entity
     or  group  (other  than  Unicorp  and  its  directors, officers, employees,
     representatives  and  agents)  concerning  any  merger, sale of substantial
     assets,  sale of shares of capital stock, or similar transactions involving
     Affiliated Holdings (all such transactions being referred to as "Affiliated
     Holdings  Acquisition  Transactions").  If Affiliated Holdings receives any
     proposal  with respect to a Affiliated Holdings Acquisition Transaction, it
     will  immediately communicate to Unicorp the fact that it has received such
     proposal  and  the  principal  terms  thereof.

          (b)  In  recognition  of  the  substantial  time  and  effort  which
     Affiliated  Holdings  has spent and will continue to spend in investigating
     Unicorp  and  its  business  and  in  addressing the matters related to the
     transactions  contemplated herein, each of which may preempt or delay other
     management activities, neither Unicorp, nor any of its officers, employees,
     representatives  or  agents will directly or indirectly solicit or initiate
     any  discussions  or  negotiations  with,  or,  except  where

                                       11
<PAGE>
     required  by  fiduciary  obligations  under  applicable  law  as advised by
     counsel, participate in any negotiations with or provide any information to
     or  otherwise  cooperate  in any other way with, or facilitate or encourage
     any  effort  or  attempt  by, any corporation, partnership, person or other
     entity  or  group  (other  than  Affiliated  Holdings  and  its  directors,
     officers,  employees,  representatives  and  agents) concerning any merger,
     sale  of  substantial  assets,  sale of shares of capital stock, (including
     without  limitation,  any public or private offering of the common stock of
     Unicorp  or  similar  transactions involving Unicorp (all such transactions
     being  referred  to  as  "Unicorp  Acquisition  Transactions").  If Unicorp
     receives any proposal with respect to a Unicorp Acquisition Transaction, it
     will  immediately  communicate  to Affiliated Holdings the fact that it has
     received  such  proposal  and  the  principal  terms  thereof.

     Section  4.09   Actions  Prior  to  Closing.
                     ----------------------------

          (a)  From  and after the date of this Agreement until the Closing Date
     and  except  as  set  forth in the Unicorp Schedules or Affiliated Holdings
     Schedules  or  as  permitted  or  contemplated  by  this Agreement, Unicorp
     (subject to paragraph (d) below) and Affiliated Holdings respectively, will
     each:

               (i)    carry  on its business in substantially the same manner as
          it  has  heretofore;

               (ii)   maintain  and keep its properties in states of good repair
          and  condition  as at present, except for depreciation due to ordinary
          wear  and  tear  and  damage  due  to  casualty;

               (iii)  maintain  in full force and effect insurance comparable in
          amount  and  in  scope  of  coverage  to  that  now  maintained by it;

               (iv)   perform  in  all  material respects all of its obligations
          under  material  contracts,  leases,  and  instruments  relating to or
          affecting  its  assets,  properties,  and  business;

               (v)    use its best efforts to maintain and preserve its business
          organization  intact, to retain its key employees, and to maintain its
          relationship  with  its  material  suppliers  and  customers;  and

               (vi)   fully comply with and perform in all material respects all
          obligations and duties imposed on it by all federal and state laws and
          all  rules,  regulations,  and  orders  imposed  by  federal  or state
          governmental  authorities.

          (b)  From and after the date of this Agreement until the Closing Date,
     neither  Unicorp  nor  Affiliated  Holdings  will:

               (i)    make  any  changes  in  their  articles  or certificate of
          incorporation  or  bylaws;

               (ii)   take  any  action described in Section 1.07 in the case of
          Affiliated  Holdings , or in Section 2.07, in the case of Unicorp (all
          except  as permitted therein or as disclosed in the applicable party's
          schedules);

               (iii)  enter  into  or  amend  any  contract, agreement, or other
          instrument  of  any  of the types described in such party's schedules,
          except  that  a party may enter into or amend any contract, agreement,
          or  other  instrument in the ordinary course of business involving the
          sale  of  goods  or  services;  or

               (iv)   sell  any assets or discontinue any operations (other than
          the  Divestiture),  sell  any  shares  of capital stock (other than as
          contemplated  in  Sections  4.07  and  4.08  hereof  and  the  sale of
          securities  underlying  existing  warrants  or  options of Unicorp) or
          conduct  any similar transactions other than in the ordinary course of
          business.

                                       12
<PAGE>
          (c)  In light of the fact that Affiliated Holdings ' Shareholders will
     control  Unicorp  as  a  result of the Exchange, from and after the date of
     this  Agreement  until the Closing Date, Unicorp shall take no action which
     is  material  to  its  business  without  the  prior  written  approval  of
     Affiliated Holdings , which Affiliated Holdings may give or withhold in its
     sole  discretion  after  consultation  with  Unicorp.

     Section 4.10   Reserved.
                    --------

     Section 4.11   Indemnification.
                    ---------------

          (a)  Affiliated  Holdings  hereby agrees to indemnify Unicorp and each
     of  the  officers,  agents  and  directors  of  Unicorp  as  of the date of
     execution  of this Agreement against any loss, liability, claim, damage, or
     expense  (including,  but  not  limited  to, any and all expense whatsoever
     reasonably  incurred  in investigating, preparing, or defending against any
     litigation,  commenced or threatened, or any claim whatsoever), to which it
     or  they  may  become  subject  arising  out  of or based on any inaccuracy
     appearing  in or misrepresentations made under Article I of this Agreement.
     The  indemnification  provided  for  in  this  paragraph  shall survive the
     Closing  and  consummation  of  the  transactions  contemplated  hereby and
     termination  of  this  Agreement.

          (b)  Unicorp  hereby agrees to indemnify Affiliated Holdings  and each
     of  the  officers, agents, and directors of Affiliated Holdings and each of
     the  Affiliated  Holdings  Shareholders as of the date of execution of this
     Agreement  against  any  loss,  liability,  claim,  damage,  or  expense
     (including,  but  not limited to, any and all expense whatsoever reasonably
     incurred  in investigating, preparing, or defending against any litigation,
     commenced  or threatened, or any claim whatsoever), to which it or they may
     become  subject  arising  out of or based on any inaccuracy appearing in or
     misrepresentation  made  under  Article  II  of  this  Agreement.  The
     indemnification  provided  for  in this paragraph shall survive the Closing
     and consummation of the transactions contemplated hereby and termination of
     this  Agreement.

     Section 4.12   Indemnification  of  Subsequent  Corporate  Actions.
                    ---------------------------------------------------

          (a)  No  officer,  director,  controlling  shareholder,  agent  or
     representative  of  Unicorp,  or any other person currently affiliated with
     Unicorp,  has  offered or agreed to assist in the promotion, market making,
     development,  enhancement,  or  support  of  Unicorp's  business,  capital
     raising,  or  securities  market.

          (b)  Unicorp hereby represents and warrants that it will indemnify and
     hold  harmless  any  officer,  director,  controlling shareholder, agent or
     representative  of  Unicorp,  or  any other person affiliated with Unicorp,
     from any decisions, activities, or conduct of Unicorp contemporaneous with,
     or  subsequent  to  this  Agreement.

                                    ARTICLE V

                 CONDITIONS PRECEDENT TO OBLIGATIONS OF UNICORP

     The  obligations  of  Unicorp  under  this  Agreement  are  subject  to the
satisfaction, at or before the Closing Date, of the following conditions:

     Section 5.01   Accuracy  of  Representations  and Performance of Covenants.
                    -----------------------------------------------------------
The representations and warranties made by Affiliated Holdings in this Agreement
were  true  when  made and shall be true at the Closing Date with the same force
and  effect as if such representations and warranties were made at and as of the
Closing  Date  (except  for  changes  therein  permitted  by  this  Agreement).
Affiliated  Holdings  shall  have  performed  or complied with all covenants and
conditions  required  by  this  Agreement  to  be  performed or complied with by
Affiliated Holdings prior to or at the Closing.  Unicorp shall be furnished with
a  certificate,  signed  by  a  duly  authorized executive officer of Affiliated
Holdings and dated the Closing Date, to the foregoing effect.

     Section 5.02   Officer's  Certificate.  Unicorp  shall  have been furnished
                    ----------------------
with  a  certificate  dated  the

                                       13
<PAGE>
Closing  Date and signed by a duly authorized officer of Affiliated Holdings  to
the effect that no litigation, proceeding, investigation, or inquiry is pending,
or  to the best knowledge of Affiliated Holdings  threatened, which might result
in  an  action  to  enjoin  or  prevent  the  consummation  of  the transactions
contemplated  by  this  Agreement,  or,  to  the  extent  not  disclosed  in the
Affiliated  Holdings  Schedules, by or against Affiliated Holdings , which might
result  in  any  material  adverse  change  in  any  of  the assets, properties,
business,  or  operations  of  Affiliated  Holdings  .

     Section 5.03   Good Standing.  Unicorp shall have received a certificate of
                    --------------
good  standing  from  Affiliated  Holdings  , dated as of a date within ten days
prior  to  the  Closing  Date  certifying  that  Affiliated Holdings  is in good
standing  as  a  corporation  in  the  State  of  Texas.

     Section 5.04   Approval  by Affiliated Holdings Shareholders.  The Exchange
                    ---------------------------------------------
shall  have been approved, and shares delivered in accordance with Section 3.01,
by  the  holders of not less than ninety percent (90%) of the outstanding common
stock of Affiliated Holdings, unless a lesser number is agreed to by Unicorp.

     Section 5.05   No  Governmental  Prohibition.  No  order,  statute,  rule,
                    -----------------------------
regulation,  executive  order, injunction, stay, decree, judgment or restraining
order  shall have been enacted, entered, promulgated or enforced by any court or
governmental  or  regulatory  authority  or  instrumentality which prohibits the
consummation  of  the  transactions  contemplated  hereby.

     Section 5.06   Consents.  All  consents,  approvals,  waivers or amendments
                    --------
pursuant  to  all contracts, licenses, permits, trademarks and other intangibles
in  connection  with  the transactions contemplated herein, or for the continued
operation  of  Unicorp  and  Affiliated  Holdings  after the Closing Date on the
basis as presently operated shall have been obtained.

     Section 5.07   Other  Items.  Unicorp  shall  have  received  a  list  of
                    ------------
Affiliated  Holdings  Shareholders  containing  the name, address, and number of
shares  held  by each Affiliated Holdings Shareholder as of the date of Closing,
certified by an executive officer of Affiliated Holdings as being true, complete
and  accurate.

                                   ARTICLE VI

           CONDITIONS PRECEDENT TO OBLIGATIONS OF AFFILIATED HOLDINGS
                    AND THE AFFILIATED HOLDINGS SHAREHOLDERS

     The  obligations  of  Affiliated  Holdings  and  the  Affiliated  Holdings
Shareholders  under this Agreement are subject to the satisfaction, at or before
the  Closing  Date,  of  the  following  conditions:

     Section 6.01   Accuracy  of  Representations  and Performance of Covenants.
                    -----------------------------------------------------------
The  representations  and warranties made by Unicorp in this Agreement were true
when  made  and shall be true as of the Closing Date (except for changes therein
permitted  by  this  Agreement)  with  the  same  force  and  effect  as if such
representations  and  warranties  were  made  at  and  as  of  the Closing Date.
Additionally,  Unicorp  shall have performed and complied with all covenants and
conditions  required  by  this  Agreement  to  be  performed or complied with by
Unicorp  and  shall have satisfied the conditions described below prior to or at
the  Closing:

          (a)  Immediately prior to the Closing, Unicorp shall have no more than
     an  aggregate  of  596,469 shares of common stock issued and outstanding or
     issuable pursuant to outstanding warrants and options, excluding any shares
     issuable  pursuant  to  the  Exchange.

          (b)  The  shareholders of Unicorp shall have approved the Exchange and
     the related transactions described herein.

Affiliated  Holdings shall have been furnished with certificates, signed by duly
authorized  executive  officers  of  Unicorp  and dated the Closing Date, to the
foregoing  effect.

     Section 6.02   Officer's  Certificate. Affiliated Holdings  shall have been
                    ----------------------
furnished with certificates dated the Closing Date and signed by duly authorized
executive  officers  of  Unicorp,  to the effect that no litigation, proceeding,
investigation  or  inquiry  is  pending,  or  to  the  best knowledge of Unicorp
threatened,  which

                                       14
<PAGE>
might  result  in  an  action  to  enjoin  or  prevent  the  consummation of the
transactions  contemplated by this Agreement  or, to the extent not disclosed in
the Unicorp Schedules, by or against Unicorp, which might result in any material
adverse change in any of the assets, properties or operations of Unicorp.

     Section 6.03   Good  Standing.  Affiliated  Holdings  shall have received a
                    --------------
certificate  of good standing from the Secretary of State of the State of Nevada
or  other  appropriate  office,  dated as of a date within ten days prior to the
Closing Date certifying that Unicorp is in good standing as a corporation in the
State  of Nevada and has filed all tax returns required to have been filed by it
to date and has paid all taxes reported as due thereon.

     Section 6.04   No  Governmental  Prohibition.  No  order,  statute,  rule,
                    -----------------------------
regulation,  executive  order, injunction, stay, decree, judgment or restraining
order  shall have been enacted, entered, promulgated or enforced by any court or
governmental  or  regulatory  authority  or  instrumentality which prohibits the
consummation of the transactions contemplated hereby.

     Section 6.05   Other  Items.  Affiliated  Holdings  shall  have received an
                    ------------
acceptable legal opinion as contemplated in Section 3.04.

                                   ARTICLE VII

                                  MISCELLANEOUS

     Section 7.01   Brokers.  Unicorp  and Affiliated Holdings agree that, there
                    -------
were no finders or brokers involved in bringing the parties together or who were
instrumental  in  the  negotiation, execution or consummation of this Agreement.
Unicorp  and  Affiliated  Holdings each agree to indemnify the other against any
claim  by  any third person other than those described above for any commission,
brokerage,  or  finder's  fee  arising from the transactions contemplated hereby
based  on  any alleged agreement or understanding between the indemnifying party
and  such  third  person,  whether  express  or  implied from the actions of the
indemnifying  party.

     Section 7.02   Governing  Law.  This  Agreement  shall  be  governed  by,
                    --------------
enforced,  and  construed  under  and  in accordance with the laws of the United
States  of  America and, with respect to the matters of state law, with the laws
of  the  State  of Texas without giving effect to principles of conflicts of law
thereunder.  Each  of  the  parties (a) irrevocably consents and agrees that any
legal  or  equitable  action  or proceedings arising under or in connection with
this  Agreement shall be brought exclusively in the federal courts of the United
States,  (b) by execution and delivery of this Agreement, irrevocably submits to
and  accepts,  with  respect  to  any  such  action or proceeding, generally and
unconditionally, the jurisdiction of the aforesaid court, and irrevocably waives
any  and  all  rights  such  party  may  now or hereafter have to object to such
jurisdiction.

     Section 7.03   Notices.  Any  notice  or  other  communications required or
                    -------
permitted  hereunder  shall  be  in  writing  and shall be sufficiently given if
personally  delivered to it or sent by telecopy, overnight courier or registered
mail or certified mail, postage prepaid, addressed as follows:

                                       15
<PAGE>
     If to Unicorp, to:     UNICORP,  INC.
                            C/O  Vanderkam  &  Associates
                            1301  Travis,  #1200
                            Houston,  TX  77002

     If to Affiliated Holdings, to:          Affiliated  Holdings
                                             Attention: Kevan Casey
                                             3122 White Oak Drive
                                             Houston, Texas 77007

or  such  other  addresses  as shall be furnished in writing by any party in the
manner  for giving notices hereunder, and any such notice or communication shall
be  deemed to have been given (i) upon receipt, if personally delivered, (ii) on
the  day  after  dispatch, if sent by overnight courier, (iii) upon dispatch, if
transmitted by telecopy and receipt is confirmed by telephone and (iv) three (3)
days  after  mailing,  if  sent  by  registered  or  certified  mail.

     Section 7.04   Attorney's Fees.  In  the event that either party institutes
                    ---------------
any  action  or  suit  to  enforce  this  Agreement or to secure relief from any
default  hereunder or breach hereof, the prevailing party shall be reimbursed by
the  losing  party for all costs, including reasonable attorney's fees, incurred
in  connection  therewith  and in enforcing or collecting any judgement rendered
therein.

     Section 7.05   Confidentiality.  Each  party  hereto  agrees with the other
                    ---------------
that, unless and until the transactions contemplated by this Agreement have been
consummated,  it and its representatives will hold in strict confidence all data
and information obtained with respect to another party or any subsidiary thereof
from  any  representative,  officer,  director or employee, or from any books or
records or from personal inspection, of such other party, and shall not use such
data  or  information  or  disclose the same to others, except (i) to the extent
such  data  or  information is published, is a matter of public knowledge, or is
required  by  law  to  be  published;  or  (ii)  to the extent that such data or
information  must  be  used or disclosed in order to consummate the transactions
contemplated  by  this  Agreement.  In  the  event  of  the  termination of this
Agreement,  each  party  shall return to the other party all documents and other
materials obtained by it or on its behalf and shall destroy all copies, digests,
work  papers, abstracts or other materials relating thereto, and each party will
continue  to  comply  with  the  confidentiality  provisions  set  forth herein.

     Section 7.06   Public  Announcements  and  Filings.  Unless  required  by
                    -----------------------------------
applicable  law  or  regulatory  authority,  none  of the parties will issue any
report,  statement  or press release to the general public, to the trade, to the
general trade or trade press, or to any third party (other than its advisors and
representatives in connection with the transactions contemplated hereby) or file
any  document,  relating  to  this  Agreement  and the transactions contemplated
hereby,  except  as  may  be mutually agreed by the parties.  Copies of any such
filings,  public  announcements  or  disclosures, including any announcements or
disclosures  mandated  by  law  or regulatory authorities, shall be delivered to
each  party  at  least  one  (1)  business  day  prior  to  the release thereof.

     Section 7.07   Schedules;  Knowledge.  Each party  is presumed to have full
                    ---------------------
knowledge  of all information set forth in the other party's schedules delivered
pursuant  to  this  Agreement.

     Section 7.08   Third  Party  Beneficiaries.  This  contract  is  strictly
                    ---------------------------
between  Unicorp and Affiliated Holdings , and, except as specifically provided,
no  director,  officer,  stockholder  (other  than  the  Affiliated  Holdings
Shareholders),  employee,  agent,  independent contractor or any other person or
entity shall be deemed to be a third party beneficiary of this Agreement.

     Section 7.09   Expenses.  Whether  or not the Exchange is consummated, each
                    --------
of  Unicorp  and  Affiliated  Holdings  will bear their own respective expenses,
including  legal,  accounting and professional fees, incurred in connection with
the Exchange or any of the other transactions contemplated hereby.

     Section 7.10   Entire  Agreement.  This  Agreement  represents  the  entire
                    -----------------
agreement  between  the

                                       16
<PAGE>
parties  relating  to  the  subject  matter  thereof  and  supersedes  all prior
agreements,  understandings  and  negotiations, written or oral, with respect to
such  subject  matter.

     Section 7.11   Survival; Termination.  The representations, warranties, and
                    ---------------------
covenants  of  the  respective  parties  shall  survive the Closing Date and the
consummation  of  the transactions herein contemplated for a period of one year.

     Section 7.12   Counterparts.  This  Agreement  may  be executed in multiple
                    ------------
counterparts,  each  of which shall be deemed an original and all of which taken
together  shall  be  but  a  single  instrument.

     Section 7.13   Amendment or Waiver.  Every right and remedy provided herein
                    -------------------
shall be cumulative with every other right and remedy, whether conferred herein,
at  law,  or in equity, and may be enforced concurrently herewith, and no waiver
by  any  party  of  the  performance  of  any  obligation  by the other shall be
construed  as  a  waiver  of the same or any other default then, theretofore, or
thereafter  occurring  or existing.  At any time prior to the Closing Date, this
Agreement  may  by  amended  by  a  writing  signed  by all parties hereto, with
respect  to any of the terms contained herein, and any term or condition of this
Agreement may be waived or the time for performance may be extended by a writing
signed by the party or parties for whose benefit the provision is intended.

     Section 7.14   Best  Efforts.  Subject  to  the terms and conditions herein
                    --------------
provided,  each  party  shall  use  its  best  efforts to perform or fulfill all
conditions  and  obligations  to  be  performed  or  fulfilled  by it under this
Agreement  so  that the transactions contemplated hereby shall be consummated as
soon  as practicable.  Each party also agrees that it shall use its best efforts
to  take,  or cause to be taken, all actions and to do, or cause to be done, all
things  necessary,  proper or advisable under applicable laws and regulations to
consummate  and  make effective this Agreement and the transactions contemplated
herein.

     IN  WITNESS  WHEREOF,  the  corporate  parties  hereto  have  caused  this
Agreement to be executed by their respective officers, hereunto duly authorized,
as  of  the  date  first-above  written.

ATTEST:                                        UNICORP, INC.

                                          BY:
-----------------------
Secretary or Assistant Secretary               President

ATTEST:                                        AFFILIATED HOLDINGS, INC.

                                          BY:
-----------------------
Secretary or Assistant Secretary               President

     The  undersigned shareholders of _AFFILIATED HOLDINGS, INC. hereby agree to
participate  in  the  Exchange on the terms set forth above.  Subject to Section
7.11  above,  each  of the undersigned hereby represents and affirms that he has
read each of the representations and warranties of AFFILIATED HOLDINGS, INC. set
out  in  Article  I  hereof  and that, to the best of his knowledge, all of such
representations  and  warranties  are  true  and  correct.

                                          Kevan Casey, individually

                                          Tommy Allen, individually

                                       17
<PAGE>
                                          --------------------------------------
                                          Trevor Ling, individually

                                          --------------------------------------
                                          Carl A. Chase, individually

                                       18
<PAGE>

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