Document:

exv4w2

 

EXHIBIT 4.2

M.D.C. HOLDINGS, INC.

Senior Debt Securities

INDENTURE

Dated as of December 3, 2002

U.S. Bank National Association, Trustee

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA Section
	 	Indenture Section

	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(b)
	 	7.08; 7.10; 10.02
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.05
	(b)
	 	10.03
	(c)
	 	10.03
	313(a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06
	(c)
	 	10.02
	(d)
	 	7.06
	314(a)
	 	7.06; 10.02
	(b)
	 	N.A.
	(c)(1)
	 	10.04
	(c)(2)
	 	10.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	10.05
	(f)
	 	N.A.
	315(a)
	 	7.01(b)
	(b)
	 	7.05; 10.02
	(c)
	 	7.01(a)
	(d)
	 	7.01(c)
	(e)
	 	6.11
	316(a)(last sentence)
	 	2.12
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	9.04
	317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.04
	318(a)
	 	10.01

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page

	ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	SECTION 1.01.
	 	Definitions	 	 	1	 
	SECTION 1.02.
	 	Other Definitions	 	 	5	 
	SECTION 1.03.
	 	Incorporation by Reference of Trust Indenture Act	 	 	6	 
	SECTION 1.04.
	 	Rules of Construction	 	 	6	 
	ARTICLE TWO

THE SECURITIES
	 	 	 	 
	SECTION 2.01.
	 	Form and Dating	 	 	7	 
	SECTION 2.02.
	 	Execution and Authentication	 	 	8	 
	SECTION 2.03.
	 	Registrar and Paying Agent	 	 	9	 
	SECTION 2.04.
	 	Paying Agent to Hold Money in Trust	 	 	9	 
	SECTION 2.05.
	 	Securityholder Lists	 	 	10	 
	SECTION 2.06.
	 	Transfer and Exchange	 	 	10	 
	SECTION 2.07.
	 	Replacement Securities	 	 	10	 
	SECTION 2.08.
	 	Outstanding Securities	 	 	11	 
	SECTION 2.09.
	 	Temporary Securities	 	 	11	 
	SECTION 2.10.
	 	Cancellation	 	 	11	 
	SECTION 2.11.
	 	Defaulted Interest	 	 	12	 
	SECTION 2.12.
	 	Treasury Securities	 	 	12	 
	SECTION 2.13.
	 	CUSIP Numbers	 	 	12	 
	SECTION 2.14.
	 	Deposit of Moneys	 	 	12	 
	SECTION 2.15.
	 	Book-Entry Provisions for Global Security	 	 	13	 
	ARTICLE THREE

REDEMPTION
	 	 	 	 
	SECTION 3.01.
	 	Notices to Trustee	 	 	14	 
	SECTION 3.02.
	 	Selection of Securities to be Redeemed	 	 	14	 
	SECTION 3.03.
	 	Notice of Redemption	 	 	15	 
	SECTION 3.04.
	 	Effect of Notice of Redemption	 	 	15	 
	SECTION 3.05.
	 	Deposit of Redemption Price	 	 	16	 
	SECTION 3.06.
	 	Securities Redeemed in Part	 	 	16	 

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	 	 	 	 	Page

	ARTICLE FOUR

COVENANTS
	 	 	 	 
	SECTION 4.01.
	 	Payment of Securities	 	 	16	 
	SECTION 4.02.
	 	Maintenance of Office or Agency	 	 	16	 
	SECTION 4.03.
	 	Compliance Certificate	 	 	16	 
	SECTION 4.04.
	 	Payment of Taxes; Maintenance of Corporate Existence; Maintenance of Properties	 	 	17	 
	ARTICLE FIVE

SUCCESSOR CORPORATION
	 	 	 	 
	SECTION 5.01.
	 	When Company May Merge, etc.	 	 	18	 
	ARTICLE SIX

DEFAULTS AND REMEDIES
	 	 	 	 
	SECTION 6.01.
	 	Events of Default	 	 	19	 
	SECTION 6.02.
	 	Acceleration	 	 	21	 
	SECTION 6.03.
	 	Other Remedies	 	 	21	 
	SECTION 6.04.
	 	Waiver of Existing Defaults	 	 	22	 
	SECTION 6.05.
	 	Control by Majority	 	 	22	 
	SECTION 6.06.
	 	Limitation on Suits	 	 	22	 
	SECTION 6.07.
	 	Rights of Holders to Receive Payment	 	 	23	 
	SECTION 6.08.
	 	Collection Suit by Trustee	 	 	23	 
	SECTION 6.09.
	 	Trustee May File Proofs of Claim	 	 	23	 
	SECTION 6.10.
	 	Priorities	 	 	23	 
	SECTION 6.11.
	 	Undertaking for Costs	 	 	24	 
	ARTICLE SEVEN

TRUSTEE
	 	 	 	 
	SECTION 7.01.
	 	Duties of Trustee	 	 	24	 
	SECTION 7.02.
	 	Rights of Trustee	 	 	25	 
	SECTION 7.03.
	 	Individual Rights of Trustee	 	 	26	 
	SECTION 7.04.
	 	Trustee’s Disclaimer	 	 	27	 
	SECTION 7.05.
	 	Notice of Defaults	 	 	27	 
	SECTION 7.06.
	 	Reports by Trustee to Holders	 	 	27	 
	SECTION 7.07.
	 	Compensation and Indemnity	 	 	27	 

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	 	 	 	 	Page

	SECTION 7.08.
	 	Replacement of Trustee	 	 	28	 
	SECTION 7.09.
	 	Successor Trustee by Merger, etc.	 	 	29	 
	SECTION 7.10.
	 	Eligibility; Disqualification	 	 	29	 
	SECTION 7.11.
	 	Preferential Collection of Claims Against Company	 	 	29	 
	ARTICLE EIGHT

DISCHARGE OF INDENTURE
	 	 	 	 
	SECTION 8.01.
	 	Defeasance Upon Deposit of Moneys or U.S. Government Obligations	 	 	29	 
	SECTION 8.02.
	 	Survival of the Company’s Obligations	 	 	33	 
	SECTION 8.03.
	 	Application of Trust Money	 	 	33	 
	SECTION 8.04.
	 	Repayment to the Company	 	 	33	 
	SECTION 8.05.
	 	Reinstatement	 	 	33	 
	ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	 	 
	SECTION 9.01.
	 	Without Consent of Holders	 	 	34	 
	SECTION 9.02.
	 	With Consent of Holders	 	 	34	 
	SECTION 9.03.
	 	Compliance with Trust Indenture Act	 	 	35	 
	SECTION 9.04.
	 	Revocation and Effect of Consents	 	 	36	 
	SECTION 9.05.
	 	Notation on or Exchange of Securities	 	 	36	 
	SECTION 9.06.
	 	Trustee to Sign Amendments, etc.	 	 	36	 
	ARTICLE TEN

MISCELLANEOUS
	 	 	 	 
	SECTION 10.01.
	 	Trust Indenture Act Controls	 	 	37	 
	SECTION 10.02.
	 	Notices	 	 	37	 
	SECTION 10.03.
	 	Communications by Holders with Other Holders	 	 	38	 
	SECTION 10.04.
	 	Certificate and Opinion as to Conditions Precedent	 	 	38	 
	SECTION 10.05.
	 	Statements Required in Certificate or Opinion	 	 	39	 
	SECTION 10.06.
	 	Rules by Trustee and Agents	 	 	39	 
	SECTION 10.07.
	 	Legal Holidays	 	 	39	 
	SECTION 10.08.
	 	Governing Law	 	 	39	 
	SECTION 10.09.
	 	No Adverse Interpretation of Other Agreements	 	 	39	 
	SECTION 10.10.
	 	No Recourse Against Others	 	 	40	 
	SECTION 10.11.
	 	Successors and Assigns	 	 	40	 

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	 	 	 	 	Page

	SECTION 10.12.
	 	Duplicate Originals	 	 	40	 
	SECTION 10.13.
	 	Severability	 	 	40	 

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               INDENTURE dated as of December 3, 2002, by and among M.D.C. HOLDINGS,
INC., a Delaware corporation (the “Company”), and U.S. Bank National
Association, (the “Trustee”).

               Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Company’s debt securities
issued under this Indenture (the “Securities”):

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions.

               “Affiliate” means, with respect to any specified Person, any other Person
directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person. For purposes of this
definition, the term “control” means (a) the power to direct the management and
policies of a Person, either directly or through one or more intermediaries,
whether through the ownership of voting securities, by contract, or otherwise,
or (b) without limiting the foregoing, ownership of 10% or more of the voting
power of the voting common equity of such Person (on a fully diluted basis).
Notwithstanding the foregoing, the term “Affiliate” will not include, with
respect to the Company or any Restricted Subsidiary, any Restricted Subsidiary
or, with respect to any Restricted Subsidiary, the Company.

               “Agent” means any Registrar, Paying Agent or co-Registrar or agent for
service of notices and demands.

               “Authorizing Resolution” means a resolution adopted by the Board of
Directors or by an Officer or committee of Officers pursuant to Board
delegation authorizing a Series of Securities.

               “Bankruptcy Law” means title 11 of the United States Code, as amended, or
any similar federal or state law for the relief of debtors.

               “Board of Directors” means the board of directors of the Company or any
authorized committee thereof.

               “Capital Stock” means any and all shares, interests, participations or
other equivalents (however designated) of or in a Person’s capital stock or
other equity interests, and options, rights or warrants to purchase such
capital stock or other equity interests, whether

 

 

now outstanding or issued after the Issue Date, including, without
limitation, all Preferred Stock of such Person if such Person is a corporation
or membership interests if such Person is a limited liability company and each
general and limited partnership interest of such Person if such Person is a
partnership.

               “Capitalized Lease Obligations” of any Person means the obligations of
such Person to pay rent or other amounts under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP, and the
amount of such obligations will be the capitalized amount thereof determined in
accordance with GAAP.

               “Company” means the Person named as such in this Indenture until a
successor replaces it pursuant to the Indenture and thereafter means the
successor.

               “Default” means any event, act or condition that is, or after notice or
the passage of time or both would be, unless otherwise timely cured, an Event
of Default.

               “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession of the United States, as in effect on the date of this Indenture.

               “Guarantee” means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in a manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof), of all or any part of any
Indebtedness.

               “Guarantors” means M.D.C. Land Corporation, RAH of Texas, LP, RAH Texas
Holdings, LLC, Richmond American Construction, Inc., Richmond American Homes of
Arizona, Inc., Richmond American Homes of California, Inc., Richmond American
Homes of California (Inland Empire), Inc., Richmond American Homes of Colorado,
Inc., Richmond American Homes of Maryland, Inc., Richmond American Homes of
Nevada, Inc., Richmond American Homes of Texas, Inc., Richmond American Homes
of Utah, Inc., Richmond American Homes of Virginia, Inc., and Richmond American
Homes of West Virginia, Inc.; and any other Subsidiary of the Company that
executes and delivers a guarantee of the Notes pursuant to the provisions of
the Indenture.

               “Holder” or “Securityholder” means the person in whose name a Security is
registered on the Registrar’s books.

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               “Indebtedness” means (a) any liability of any Person (i) for borrowed
money, or (ii) evidenced by a bond, note, debenture or similar instrument
(including a purchase money obligation) given in connection with the
acquisition of any businesses, properties or assets of any kind (other than a
trade payable or a current liability arising in the ordinary course of
business), or (iii) for the payment of money relating to a Capitalized Lease
Obligation or (iv) for all Redeemable Capital Stock valued at the greater of
its voluntary or involuntary liquidation preference plus accrued and unpaid
dividends; (b) any liability of others described in the preceding clause (a)
that such Person has guaranteed or that is otherwise its legal liability; (c)
all Indebtedness referred to in (but not excluded from) clauses (a) and (b)
above of other Persons and all dividends of other Persons, the payment of which
is secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Security Interest upon or
in property (including, without limitation, accounts and contract rights) owned
by such Person, even though such Person has not assumed or become liable for
the payment of such Indebtedness; and (d) any amendment, supplement,
modification, deferral, renewal, extension or refunding of any liability of the
types referred to in clauses (a), (b) and (c) above.

               “Indenture” means this Indenture as amended or supplemented from time to
time, including pursuant to any Authorizing Resolution or supplemental
indenture pertaining to any Series.

               “1998 Indenture” means the indenture dated as of January 28, 1998 between
the Company and U.S. Bank National Association as trustee, as amended or
supplemented from time to time.

               “Issue Date” means, with respect to any Series of Securities, the date on
which the Securities of such Series are originally issued under this Indenture.

               “Non-Recourse Indebtedness” means Indebtedness or other obligations
secured by a lien on property to the extent that the liability for the
Indebtedness or other obligations is limited to the security of the property
without liability on the part of the Company or any Restricted Subsidiary
(other than the Restricted Subsidiary which holds title to the property) for
any deficiency.

               “Officer” means the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company.

               “Officers’ Certificate” means a certificate signed by two Officers or by
an Officer and an Assistant Treasurer or an Assistant Secretary of the Company.

-3-

 

               “Opinion of Counsel” means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee.

               “Person” means any individual, corporation, partnership, limited liability
company, joint venture, incorporated or unincorporated association, joint stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

               “Preferred Stock” of any Person means all Capital Stock of such Person
which has a preference in liquidation or with respect to the payment of
dividends.

               “Redeemable Capital Stock” means any Capital Stock of the Company or any
of its Subsidiaries that, either by its terms, by the terms of any security
into which it is convertible or exchangeable or otherwise, (a) is or upon the
happening of an event or passage of time would be required to be redeemed on or
prior to the final stated maturity of the securities or (b) is redeemable at
the option of the holder thereof at any time prior to such final stated
maturity or (c) is convertible into or exchangeable for debt securities at any
time on or prior to such final stated maturity.

               “Restricted Subsidiary” means any Guarantor and any successor to such
Guarantor.

               “SEC” means the Securities and Exchange Commission or any successor agency
performing the duties now assigned to it under the TIA.

               “Securities” means any Securities that are issued under this Indenture.

               “Security Interests” means any mortgage, pledge, lien, encumbrance or
other security interest which secures the payment or performance of an
obligation.

               “Series” means a series of Securities established under this Indenture.

               “Subsidiary” means any Person of which at the time of determination by the
Company, directly and/or indirectly through one or more Subsidiaries, the
Company owns more than 50% of the shares of its Voting Stock.

               “TIA” means the Trust Indenture Act of 1939, as in effect from time to
time.

               “Trust Officer” means the Chairman of the Board, the President, any Vice
President or any other officer or assistant officer of the Trustee assigned by
the Trustee to administer its corporate trust matters.

-4-

 

               “Trustee” means the party named as such in this Indenture until a
successor replaces it pursuant to this Indenture and thereafter means the
successor serving hereunder.

               “United States” means the United States of America.

               “U.S. government obligations” means securities which are (i) direct
obligations of the United States for the payment of which its full faith and
credit is pledged or (ii) obligations of a person controlled or supervised by
and acting as an agency or instrumentality of the United States the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
the United States, which, in either case are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank or trust company as custodian with respect to any such U.S.
government obligations or a specific payment of interest on or principal of any
such U.S. government obligation held by such custodian for the account of the
holder of a depositary receipt; provided, that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depositary receipt from any amount received by the custodian
in respect of the U.S. government obligation or the specific payment of
interest on or principal of the U.S. government obligation evidenced by such
depositary receipt.

               “Voting Stock” means any class or classes of Capital Stock pursuant to
which the holders thereof have the general voting power under ordinary
circumstances to elect at least a majority of the board of directors, managers
or trustees of any Person (irrespective of whether or not, at the time, stock
of any other class or classes shall have, or might have, voting power by reason
of the happening of any contingency).

		
	SECTION 1.02. 	Other Definitions.

	 	 	 	 	 
	 	 	Defined
	Term
	 	in Section

	“Agent Members”
	 	 	2.15	 
	“Business Day”
	 	 	10.07	 
	“Custodian”
	 	 	6.01	 
	“Depositary”
	 	 	2.15	 
	“Event of Default”
	 	 	6.01	 
	“Legal Holiday”
	 	 	10.07	 
	“Paying Agent”
	 	 	2.03	 
	“Registrar”
	 	 	2.03	 

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	SECTION 1.03. 	Incorporation by Reference of Trust Indenture Act.

               Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

               “Commission” means the SEC.

               “indenture securities” means the Securities.

               “indenture security holder” means a Securityholder.

               “indenture to be qualified” means this Indenture.

               “indenture trustee” or “institutional trustee” means the Trustee.

               “obligor” on the indenture securities means the Company or any other
obligor on the Securities of a Series thereof.

               All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule have the
meanings so assigned to them.

		
	SECTION 1.04. 	Rules of Construction.

               Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term, not otherwise defined, has the meaning
assigned to it in accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural
include the singular; and

     (5) provisions apply to successive events and transactions.

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ARTICLE TWO

THE SECURITIES

		
	SECTION 2.01. 	Form and Dating.

               The aggregate principal amount of Securities that may be issued under this
Indenture is unlimited. The Securities may be issued from time to time in one
or more Series. Each Series shall be created by an Authorizing Resolution or a
supplemental indenture that establishes the terms of the Series, which may
include the following:

     (1) the title of the Series;

     (2) the aggregate principal amount (or any limit on the aggregate
principal amount) of the Series and, if any Securities of a Series are to
be issued at a discount from their face amount, the method of computing
the accretion of such discount;

     (3) the interest rate or method of calculation of the interest rate;

     (4) the date from which interest will accrue;

     (5) the record dates for interest payable on Securities of the Series;

     (6) the dates when, places where and manner in which principal and
interest are payable;

     (7) the Registrar and Paying Agent;

     (8) the terms of any mandatory (including any sinking fund
requirements) or optional redemption by the Company;

     (9) the terms of any redemption at the option of Holders;

     (10) the denominations in which Securities are issuable;

     (11) whether Securities will be issued in registered or bearer form
and the terms of any such forms of Securities;

     (12) whether any Securities will be represented by a global Security
and the terms of any such global Security;

-7-

 

     (13) if payments of principal or interest may be made in a currency
other than that in which Securities are denominated, the manner for
determining such payments;

     (14) provisions for electronic issuance of Securities or issuance of
Securities in uncertificated form;

     (15) any Events of Default, covenants and/or defined terms in
addition to or in lieu of those set forth in this Indenture;

     (16) whether and upon what terms Securities may be defeased if
different from the provisions set forth in this Indenture;

     (17) the form of the Securities, which, unless the Authorizing
Resolution or supplemental indenture otherwise provides, shall be in the
form of Exhibit A;

     (18) any terms that may be required by or advisable under applicable
law;

     (19) whether, upon what terms and by which entities the Securities will be
guaranteed;

     (20) the percentage of the principal amount of the Securities which
is payable if the maturity of the Securities is accelerated in the case
of Securities issued at a discount from their face amount; and

     (21) any other terms in addition to or different from those
contained in this Indenture.

               All Securities of one Series need not be issued at the same time and,
unless otherwise provided, a Series may be reopened for issuances of additional
Securities of such Series pursuant to an Authorizing Resolution, an Officers’
Certificate or in any indenture supplemental hereto.

               The creation and issuance of a Series and the authentication and delivery
thereof are not subject to any conditions precedent.

		
	SECTION 2.02. 	Execution and Authentication.

               Two Officers shall sign, or one Officer shall sign and one Officer shall
attest to, the Securities for the Company by manual or facsimile signature.

               If an Officer whose signature is on a Security no longer holds that office
at the time the Trustee authenticates the Security, the Security shall
nevertheless be valid.

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               A Security shall not be valid until the Trustee manually signs the
certificate of authentication on the Security. The signature shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

               The Trustee shall authenticate Securities for original issue upon receipt
of an Officers’ Certificate of the Company. Each Security shall be dated the
date of its authentication.

		
	SECTION 2.03. 	Registrar and Paying Agent.

               The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange (“Registrar”), an office
or agency where Securities may be presented for payment (“Paying Agent”) and an
office or agency where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served. The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company may
have one or more co-Registrars and one or more additional paying agents. The
term “Paying Agent” includes any additional paying agent.

               The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such Agent. The Company shall
promptly notify the Trustee in writing of the name and address of any such
Agent and the Trustee shall have the right to inspect the Securities register
at all reasonable times to obtain copies thereof, and the Trustee shall have
the right to rely upon such register as to the names and addresses of the
Holders and the principal amounts and certificate numbers thereof. If the
Company fails to maintain a Registrar or Paying Agent or fails to give the
foregoing notice, the Trustee shall act as such.

               The Company initially appoints the Trustee as Registrar and Paying Agent.

		
	SECTION 2.04. 	Paying Agent to Hold Money in Trust.

               Each Paying Agent shall hold in trust for the benefit of Securityholders
and the Trustee all money held by the Paying Agent for the payment of principal
of or interest on the Securities, and shall notify the Trustee of any default
by the Company in making any such payment. If the Company or a Subsidiary acts
as Paying Agent, it shall segregate the money and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee. Upon doing so the Paying Agent shall have no further
liability for the money.

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	SECTION 2.05. 	Securityholder Lists.

               The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least 5 Business Days before each semi-annual
interest payment date and at such other times as the Trustee may request in
writing a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Securityholders.

		
	SECTION 2.06. 	Transfer and Exchange.

               Where a Security is presented to the Registrar or a co-Registrar with a
request to register a transfer, the Registrar shall register the transfer as
requested if the requirements of Section 8-401(1) of the New York Uniform
Commercial Code are met. Where Securities are presented to the Registrar or a
co-Registrar with a request to exchange them for an equal principal amount of
Securities of other denominations, the Registrar shall make the exchange as
requested if the same requirements are met. To permit transfers and exchanges,
the Trustee shall authenticate Securities at the Registrar’s request. The
Registrar need not transfer or exchange any Security selected for redemption,
except the unredeemed part thereof if the Security is redeemed in part, or
transfer or exchange any Securities for a period of 15 days before a selection
of Securities to be redeemed. Any exchange or transfer shall be without
charge, except that the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto except in the case of exchanges pursuant to 2.09, 3.06, or 9.05 not
involving any transfer.

               Any Holder of a global Security shall, by acceptance of such global
Security, agree that transfers of beneficial interests in such global Security
may be effected only through a book entry system maintained by the Holder of
such global Security (or its agent), and that ownership of a beneficial
interest in the Security shall be required to be reflected in a book entry.

SECTION 2.07. Replacement Securities.

     If the Holder of a Security claims that the Security has been lost,
destroyed, mutilated or wrongfully taken, the Company shall issue and, upon
written request of any Officer of the Company, the Trustee shall authenticate a
replacement Security; provided, however, in the case of a lost, destroyed or
wrongfully taken Security, that the requirements of Section 8-405 of the New
York Uniform Commercial Code are met. If any such lost, destroyed, mutilated or
wrongfully taken Security shall have matured or shall be about to mature, the
Company may, instead of issuing a substitute Security therefor, pay such
Security without requiring (except in the case of a mutilated Security) the
surrender thereof. An indemnity bond must be sufficient in the judgment of the
Company and the Trustee to protect the Company,

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the Trustee or any Agent from any loss which any of them may suffer if a
Security is replaced, including the acquisition of such Security by a bona fide
purchaser. The Company or the Trustee may charge the Holder for expenses in
replacing a Security.

		
	SECTION 2.08. 	Outstanding Securities.

               Securities outstanding at any time are all Securities authenticated by the
Trustee except for those canceled by it and those described in this Section. A
Security does not cease to be outstanding because the Company or one of its
Affiliates holds the Security.

               If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

               If, on a redemption date or maturity date, the Paying Agent holds money
sufficient to pay Securities payable on that date, then on and after that date
such Securities cease to be outstanding and interest on them ceases to accrue.

               Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

		
	SECTION 2.09. 	Temporary Securities.

               Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and, upon
surrender for cancellation of the temporary Security, the Company shall execute
and the Trustee shall authenticate definitive Securities in exchange for
temporary Securities. Until so exchanged, the temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as
definitive Securities authenticated and delivered hereunder.

		
	SECTION 2.10. 	Cancellation.

               The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange,
redemption or payment. The Trustee and no one else shall cancel and destroy,
or retain in accordance with its standard retention policy, all Securities
surrendered for registration or transfer, exchange, redemption, paying or
cancella-

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tion. Unless the Authorizing Resolution so provides, the Company may not
issue new Securities to replace Securities that it has previously paid or
delivered to the Trustee for cancellation.

		
	SECTION 2.11. 	Defaulted Interest.

               If the Company defaults in a payment of interest on the Securities, it
shall pay the defaulted interest plus any interest payable on the defaulted
interest to the persons who are Securityholders on a subsequent special record
date. The Company shall fix such special record date and a payment date which
shall be reasonably satisfactory to the Trustee. At least 15 days before such
special record date, the Company shall mail to each Securityholder a notice
that states the record date, the payment date and the amount of defaulted
interest to be paid. On or before the date such notice is mailed, the Company
shall deposit with the Paying Agent money sufficient to pay the amount of
defaulted interest to be so paid. The Company may pay defaulted interest in any
other lawful manner if, after notice given by the Company to the Trustee of the
proposed payment, such manner of payment shall be deemed practicable by the
Trustee.

		
	SECTION 2.12. 	Treasury Securities.

               In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any direction, waiver, consent or
notice, Securities owned by the Company or any of its Subsidiaries shall be
considered as though they are not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee actually knows
are so owned shall be so considered.

		
	SECTION 2.13. 	CUSIP Numbers.

               The Company in issuing the Securities of any Series may use a “CUSIP”
number, and if so, the Trustee shall use the CUSIP number in notices of
redemption or exchange as a convenience to Holders of such Securities; provided
that no representation is hereby deemed to be made by the Trustee as to the
correctness or accuracy of any such CUSIP number printed in the notice or on
such Securities, and that reliance may be placed only on the other
identification numbers printed on such Securities. The Company shall promptly
notify the Trustee of any change in any CUSIP number.

		
	SECTION 2.14. 	Deposit of Moneys.

               Prior to 11:00 a.m. New York City time on each interest payment date and
maturity date with respect to each Series of Securities, the Company shall have
deposited with the Paying Agent in immediately available funds money sufficient
to make cash payments due on such interest payment date or maturity date, as
the case may be, in a timely manner which

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permits the Paying Agent to remit payment to the Holders on such interest
payment date or maturity date, as the case may be.

		
	SECTION 2.15. 	Book-Entry Provisions for Global Security.

               (a) Any global Security of a Series initially shall (i) be registered in
the name of the depository who shall be identified in the Authorizing
Resolution or supplemental indenture relating to such Securities (the
“Depository”) or the nominee of such Depository, (ii) be delivered to the
Trustee as custodian for such Depository and (iii) bear any required legends.

               Members of, or participants in, the Depository (“Agent Members”) shall
have no rights under this Indenture with respect to any global Security held on
their behalf by the Depository, or the Trustee as its custodian, or under the
global Security, and the Depository may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of the global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or
the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Security.

               (b) Transfers of any global Security shall be limited to transfers in
whole, but not in part, to the Depository, its successors or their respective
nominees. Interests of beneficial owners in the global Security may be
transferred or exchanged for definitive Securities in accordance with the rules
and procedures of the Depository. In addition, definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests
in a global Security if (i) the Depository notifies the Company that it is
unwilling or unable to continue as Depository for the global Security and a
successor depository is not appointed by the Company within 90 days of such
notice or (ii) an Event of Default has occurred and is continuing and the
Registrar has received a request from the Depository to issue definitive
Securities.

               (c) In connection with any transfer or exchange of a portion of the
beneficial interest in any global Security to beneficial owners pursuant to
paragraph (b), the Registrar shall (if one or more definitive Securities are to
be issued) reflect on its books and records the date and a decrease in the
principal amount of the global Security in an amount equal to the principal
amount of the beneficial interest in the global Security to be transferred, and
the Company shall execute, and the Trustee shall authenticate and deliver, one
or more definitive Securities of like tenor and amount.

               (d) In connection with the transfer of an entire global Security to
beneficial owners pursuant to paragraph (b), the global Security shall be
deemed to be surrendered to the

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Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the
Depository in exchange for its beneficial interest in the global Security, an
equal aggregate principal amount of definitive Securities of authorized
denominations.

               (e) The Holder of any global Security may grant proxies and otherwise
authorize any person, including Agent Members and persons that may hold
interests through Agent Members, to take any action which a Holder is entitled
to take under this Indenture or the Securities of such Series.

ARTICLE THREE

REDEMPTION

		
	SECTION 3.01. 	Notices to Trustee.

               Securities of a Series that are redeemable prior to maturity shall be
redeemable in accordance with their terms and, unless the Authorizing
Resolution or supplemental indenture provides otherwise, in accordance with
this Article.

               If the Company wants to redeem Securities pursuant to Paragraph 5 of the
Securities, it shall notify the Trustee in writing of the redemption date and
the principal amount of Securities to be redeemed. Any such notice may be
canceled at any time prior to notice of such redemption being mailed to
Holders. Any such canceled notice shall be void and of no effect.

               If the Company wants to credit any Securities previously redeemed, retired
or acquired against any redemption pursuant to Paragraph 6 of the Securities,
it shall notify the Trustee of the amount of the credit and it shall deliver
any Securities not previously delivered to the Trustee for cancellation with
such notice.

               The Company shall give each notice provided for in this Section 3.01 at
least 30 days before the notice of any such redemption is to be mailed to
Holders (unless a shorter notice shall be satisfactory to the Trustee).

		
	SECTION 3.02. 	Selection of Securities to be Redeemed.

               If fewer than all of the Securities of a Series are to be redeemed, the
Trustee shall select the Securities to be redeemed by a method the Trustee
considers fair and appropriate. The Trustee shall make the selection from
Securities outstanding not previously called for redemption and shall promptly
notify the Company of the serial numbers or other identify-

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ing attributes of the Securities so selected. The Trustee may select for
redemption portions of the principal of Securities that have denominations
larger than the minimum denomination for the Series. Securities and portions
of them it selects shall be in amounts equal to the minimum denomination for
the Series or an integral multiple thereof. Provisions of this Indenture that
apply to Securities called for redemption also apply to portions of Securities
called for redemption.

		
	SECTION 3.03. 	Notice of Redemption.

               At least 30 days but not more than 60 days before a redemption date, the
Company shall mail a notice of redemption by first-class mail, postage prepaid,
to each Holder of Securities to be redeemed.

               The notice shall identify the Securities to be redeemed and shall state:

     (1) the redemption date;

     (2) the redemption price;

     (3) the name and address of the Paying Agent;

     (4) that Securities called for redemption must be surrendered to the
Paying Agent to collect the redemption price;

     (5) that interest on Securities called for redemption ceases to
accrue on and after the redemption date; and

     (6) that the Securities are being redeemed pursuant to the mandatory
redemption or the optional redemption provisions, as applicable.

               At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at its expense; provided, however, that the Company
shall deliver to the Trustee at least 15 days prior to the date on which notice
of redemption is to be mailed or such shorter period as may be satisfactory to
the Trustee, an Officers’ Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

		
	SECTION 3.04. 	Effect of Notice of Redemption.

               Once notice of redemption is mailed, Securities called for redemption
become due and payable on the redemption date and at the redemption price as
set forth in the notice of redemption. Upon surrender to the Paying Agent,
such Securities shall be paid at the redemption price, plus accrued interest to
the redemption date.

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	SECTION 3.05. 	Deposit of Redemption Price.

               On or before the redemption date, the Company shall deposit with the
Paying Agent immediately available funds sufficient to pay the redemption price
of and accrued interest on all Securities to be redeemed on that date.

		
	SECTION 3.06. 	Securities Redeemed in Part.

               Upon surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate for each Holder a new Security equal
in principal amount to the unredeemed portion of the Security surrendered.

ARTICLE FOUR

COVENANTS

		
	SECTION 4.01. 	Payment of Securities.

               The Company shall pay the principal of and interest on a Series on the
dates and in the manner provided in the Securities of the Series. An
installment of principal or interest shall be considered paid on the date it is
due, if on that date the Paying Agent holds money designated for and sufficient
to pay the installment.

               The Company shall pay interest on overdue principal at the rate borne by
the Series; it shall pay interest on overdue installments of interest at the
same rate.

		
	SECTION 4.02. 	Maintenance of Office or Agency.

               The Company shall maintain the office or agency required under Section
2.03. The Company shall give prior written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee.

		
	SECTION 4.03. 	Compliance Certificate.

               The Company shall deliver to the Trustee within 120 days after the end of
its fiscal year an Officers’ Certificate complying with Section 314(a)(4) of
the TIA and stating that a review of its activities and the activities of its
Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing persons with a view to determining

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whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture and further stating, as to each such person
signing such certificate, whether or not the signer knows of any failure by the
Company or any Subsidiary of the Company to comply with any conditions or
covenants in this Indenture and, if such signer does know of such a failure to
comply, the certificate shall describe such failure with particularity. The
Officers’ Certificate shall also notify the Trustee should the relevant fiscal
year end on any date other than the current fiscal year end date.

		
	SECTION 4.04. 	Payment of Taxes; Maintenance of Corporate Existence;
Maintenance of Properties.

               The Company will:

     (a) cause to be paid and discharged all lawful taxes, assessments
and governmental charges or levies imposed upon the Company and its
Restricted Subsidiaries or upon the income or profits of the Company and
its Restricted Subsidiaries or upon property or any part thereof
belonging to the Company and its Restricted Subsidiaries before the same
shall be in default, as well as all lawful claims for labor, materials
and supplies which, if unpaid, might become a lien or charge upon such
property or any part thereof; provided, however, that the Company shall
not be required to cause to be paid or discharged any such tax,
assessment, charge, levy or claim so long as the validity or amount
thereof shall be contested in good faith by appropriate proceedings and
the nonpayment thereof does not, in the judgment of the Company,
materially adversely affect the ability of the Company and the Restricted
Subsidiaries to pay all obligations under this Indenture when due; and
provided further, that the Company shall not be required to cause to be
paid or discharged any such tax, assessment, charge, levy or claim if, in
the judgment of the Company, such payment shall not be advantageous to
the Company in the conduct of its business and if the failure so to pay
or discharge does not, in its judgment, materially adversely affect the
ability of the Company and the Restricted Subsidiaries to pay all
obligations under this Indenture when due;

     (b) cause to be done all things necessary to preserve and keep in
full force and effect the corporate existence of the Company and each of
its Restricted Subsidiaries; provided, however, that nothing in this
subsection (b) shall prevent a consolidation or merger of the Company or
any Restricted Subsidiary not prohibited by the provisions of Article
Five or any other provision or the Authorizing Resolution or supplemental
indenture pertaining to a Series, and the Company need not maintain the
corporate existence of an immaterial Restricted Subsidiary; and

     (c) at all times keep, maintain and preserve the property of the
Company and the Restricted Subsidiaries in good repair, working order and
condition (reasonable wear and tear excepted) and from time to time make
all needful and proper repairs, re-

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newals, replacements, betterments and improvements thereto, so that
the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in
this subsection (c) shall prevent the Company from discontinuing the
operation and maintenance of any such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its
business and not disadvantageous in any material respect to the ability
of the Company and the Restricted Subsidiaries to pay all obligations
under this Indenture when due.

ARTICLE FIVE

SUCCESSOR CORPORATION

		
	SECTION 5.01. 	When Company May Merge, etc.

               The Company shall not consolidate with or merge with or into, any other
corporation, or transfer all or substantially all of its assets to, any entity
unless permitted by law and unless (1) the resulting, surviving or transferee
entity, which shall be a corporation organized and existing under the laws of
the United States or a State thereof, assumes by supplemental indenture, in a
form reasonably satisfactory to the Trustee, all of the obligations of the
Company under the Securities and this Indenture and (2) immediately after
giving effect to, and as a result of, such transaction, no Default or Event of
Default shall have occurred and be continuing. Thereafter such successor
corporation or corporations shall succeed to and be substituted for the Company
with the same effect as if it had been named herein as the “Company” and all
such obligations of the predecessor corporation shall terminate.

               The Company shall deliver to the Trustee prior to the consummation of the
proposed transaction an Officers’ Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

               To the extent that an Authorizing Resolution or supplemental indenture
pertaining to any Series provides for different provisions relating to the
subject matter of this Article Five, the provisions in such Authorizing
Resolution or supplemental indenture shall govern for purposes of such Series.

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ARTICLE SIX

DEFAULTS AND REMEDIES

		
	SECTION 6.01. 	Events of Default.

               An “Event of Default” on a Series occurs if, voluntarily or involuntarily,
whether by operation of law or otherwise, any one of the following events:

     (1) default in the payment of interest on any Security of such
Series when the same becomes due and payable and the continuance of any
such failure for a period of 30 days;

     (2) default in the payment of all or any part of the principal or
premium, if any, of any Security of such Series when and as the same
becomes due and payable at maturity, at redemption, by declaration of
acceleration or otherwise;

     (3) default in the observance or performance of, or breach of, any
covenant or agreement or warranty of the Company contained in its
agreements or covenants in, or provisions of the Securities of such
Series, or this Indenture (unless specifically dealt with elsewhere), and
continuance of such default or breach for a period of 60 days after there
has been given, by registered or certified mail, to the Company by the
Trustee, or to the Company and the Trustee by Holders of at least 25% in
aggregate principal amount of the outstanding Securities, a written
notice specifying such default or breach, requiring it to be remedies and
stating that such notice is a “Notice of Default” hereunder;

     (4) a decree, judgment or order by a court of competent jurisdiction
shall have been entered adjudging the Company or any of its Significant
Subsidiaries as bankrupt or insolvent, or approving as properly filed a
petition in an involuntary case or proceeding seeking reorganization of
the Company or any of its Significant Subsidiaries under any bankruptcy
or similar law, or a decree, judgment or order of a court of competent
jurisdiction directing the appointment of a receiver, liquidator,
trustee, or assignee in bankruptcy or insolvency of the Company, any of
its Significant Subsidiaries, or of the assets or property of any such
Person, or the winding up or liquidation of the affairs of any such
Person, shall have been entered, and the continuance of any such decree,
judgment or order unstayed and in effect for a period of 90 consecutive
days;

     (5) the Company or any of its Significant Subsidiaries shall
institute proceedings to be adjudicated a voluntary bankrupt (including
conversion of an involun-

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tary proceeding into a voluntary proceeding), or shall consent to
the filing of a bankruptcy proceeding against it, or shall file a
petition or answer or consent to the filing of any such petition, or
shall consent to the appointment of a Custodian, receiver, liquidator,
trustee, or assignee in bankruptcy or insolvency of it or any of its
assets or property, or shall make a general assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts
generally as they become due, or shall, within the meaning of any
Bankruptcy Law, become insolvent, or fail generally to pay its debts as
they become due;

     (6) (i) the acceleration of any Indebtedness (other than
Non-Recourse Indebtedness) of the Company or any of its Significant
Subsidiaries (in accordance with the terms of such Indebtedness and after
giving effect to any applicable grace period set forth in the documents
governing such Indebtedness) that has an outstanding principal amount of
$25,000,000 or more individually or $40,000,000 or more in the aggregate
to be immediately due and payable; provided that, in the event any such
acceleration is withdrawn or otherwise rescinded (including satisfaction
of such Indebtedness) within a period of ten business days after such
acceleration by the holders of such Indebtedness, any Event of Default
under this clause (6) will be deemed to be cured and any acceleration
hereunder will be deemed withdrawn or rescinded; or (ii) the failure by
the Company or any of its Significant Subsidiaries to make any principal,
premium, interest or other required payment in respect of Indebtedness
(other than Non-Recourse Indebtedness) of the Company or any of its
Significant Subsidiaries with an outstanding aggregate principal amount
of $25,000,000 or more individually or $40,000,000 or more in the
aggregate (after giving effect to any applicable grace period set forth
in the documents governing such Indebtedness);

     (7) one or more final nonappealable judgments (in the amount not
covered by insurance or not reserved for) or the issuance of any warrant
of attachment against any portion of the property or assets (except with
respect to Non-Recourse Indebtedness) of the Company or any of its
Restricted Subsidiaries, which are $25,000,000 or more individually or
$40,000,000 or more in the aggregate, at any one time rendered against
the Company or any of its Restricted Subsidiaries by a court of competent
jurisdiction and not bonded, satisfied or discharged for a period (during
which execution shall not be effectively stayed) of (i) 60 days after the
judgment becomes final and such court shall not have ordered or approved,
and the parties shall not have agreed upon, the payment of such judgment
at a later date or dates or (ii) 60 days after all or any part of such
judgment is payable pursuant to any court order or agreement between the
parties; and

     (8) the Guarantee of any Guarantor shall fail to remain in full
force and effect except in accordance with this Indenture or any action
shall be taken by any Guar-

-20-

 

antor to discontinue or to assert the invalidity or unenforceability
of its Guarantee, or any Guarantor shall fail to comply with any of the
terms or provisions of its Guarantee, or any Guarantor denies that it has
any further liability under its Guarantee or gives notice to such effect.

               The term “Custodian” means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

		
	SECTION 6.02. 	Acceleration.

               If an Event of Default (other than an Event of Default with respect to the
Company resulting from sub-clauses (4) or (5) above), shall have occurred and
be continuing under the Indenture, the Trustee by notice to the Company, or the
Holders of at least 25 percent in principal amount of the Securities of the
applicable Series then outstanding by notice to the Company and the Trustee,
may declare all Securities of such Series to be due and payable immediately.
Upon such declaration of acceleration, the amounts due and payable on the
Securities of such Series will be due and payable immediately. If an Event of
Default with respect to the Company specified in sub-clauses (4) or (5) above
occurs, all amounts due and payable on the Securities of such Series will ipso
facto become and be immediately due and payable without any declaration, notice
or other act on the part of the Trustee and the Company or any Holder. The
Holders of a majority in principal amount of the Securities of such Series then
outstanding by written notice to the Trustee and the Company may waive any
Default or Event of Default (other than any Default or Event of Default in
payment of principal or interest) with respect to such Series of Securities
under the Indenture. Holders of a majority in principal amount of the then
outstanding Securities of such Series may rescind an acceleration with respect
to such Series and its consequence (except an acceleration due to nonpayment of
principal or interest on the Securities of such Series) if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
have been cured or waived.

               No such rescission shall extend to or shall affect any subsequent Event of
Default, or shall impair any right or power consequent thereon.

		
	SECTION 6.03. 	Other Remedies.

               If an Event of Default on a Series occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect
the payment of principal of or interest on the Series or to enforce the
performance of any provision in the Securities or this Indenture applicable to
the Series.

               The Trustee may maintain a proceeding even if it does not possess any of
the Securities or does not produce any of them in the proceeding. A delay or
omission by the

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Trustee or any Securityholder in exercising any right or remedy accruing
upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All available remedies are cumulative.

		
	SECTION 6.04. 	Waiver of Existing Defaults.

               Subject to Section 9.02, the Holders of a majority in principal amount of
the outstanding Securities of a Series on behalf of all the Holders of the
Series by notice to the Trustee may waive an existing Default on such Series
and its consequences. When a Default is waived, it is cured and stops
continuing, and any Event of Default arising therefrom shall be deemed to have
been cured; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon.

		
	SECTION 6.05. 	Control by Majority.

               The Holders of a majority in principal amount of the outstanding
Securities of a Series may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it with respect to such Series. The Trustee, however, may
refuse to follow any direction (i) that conflicts with law or this Indenture,
(ii) that, subject to Section 7.01, the Trustee determines is unduly
prejudicial to the rights of other Securityholders, or (iii) that would involve
the Trustee in personal liability.

		
	SECTION 6.06. 	Limitation on Suits.

               A Securityholder of a Series may not pursue any remedy with respect to
this Indenture or the Series unless:

     (1) the Holder gives to the Trustee written notice of a continuing
Event of Default on the Series;

     (2) the Holders of at least 25% in aggregate principal amount of the
outstanding Securities of the Series make a written request to the
Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of indemnity; and

     (5) no written request inconsistent with such written request shall
have been given to the Trustee pursuant to this Section 6.06.

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               A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder.

		
	SECTION 6.07. 	Rights of Holders to Receive Payment.

               Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of principal of and interest on the Security, on or
after the respective due dates expressed in the Security, or to bring suit for
the enforcement of any such payment on or after such respective dates, is
absolute and unconditional and shall not be impaired or affected without the
consent of the Holder.

		
	SECTION 6.08. 	Collection Suit by Trustee.

               If an Event of Default in payment of interest or principal specified in
Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal and interest remaining unpaid.

		
	SECTION 6.09. 	Trustee May File Proofs of Claim.

               The Trustee may file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements,
and advances of the Trustee, its agents and counsel) and the Securityholders
allowed in any judicial proceedings relative to the Company, its creditors or
its property, and unless prohibited by applicable law or regulation, may vote
on behalf of the Holders in any election of a Custodian, and shall be entitled
and empowered to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same and any Custodian in
any such judicial proceeding is hereby authorized by each Securityholder to
make such payments to the Trustee. Nothing herein shall be deemed to authorize
the Trustee to authorize or consent to or vote for or accept or adopt on behalf
of any Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder or to
authorize the Trustee to vote in respect of the claim of any Securityholder
except as aforesaid for the election of the Custodian.

		
	SECTION 6.10. 	Priorities.

               If the Trustee collects any money pursuant to this Article, it shall pay
out the money in the following order:

	 	 	 
	First:

	 	to the Trustee for amounts due under Section 7.07;

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	Second:

	 	to Securityholders for amounts due and unpaid on the Securities
for principal and interest, ratably, without preference or priority
of any kind, according to the amounts due and payable on the
Securities for principal and interest, respectively; and
	 
	 	 
	Third:

	 	to the Company as its interests may appear.

               The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10.

		
	SECTION 6.11. 	Undertaking for Costs.

               In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having the due regard
to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in
principal amount of the Series.

ARTICLE SEVEN

TRUSTEE

		
	SECTION 7.01. 	Duties of Trustee.

               (a) If an Event of Default has occurred and is continuing, the Trustee
shall, prior to the receipt of directions from the Holders of a majority in
principal amount of the Securities, exercise its rights and powers and use the
same degree of care and skill in their exercise as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs.

               (b) Except during the continuance of an Event of Default:

     (1) The Trustee need perform only those duties that are specifically
set forth in this Indenture and no others and no implied covenants or
obligations shall be read into this Indenture against the Trustee.

     (2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed

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therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of his Indenture. The Trustee, however,
shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture but need not confirm
or investigate the accuracy of mathematical calculations or other facts
or matters stated herein.

               (c) The Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

     (1) This paragraph does not limit the effect of paragraph (b) of
this Section.

     (2) The Trustee shall not be liable for any error of judgment made
in good faith by a Trust Officer, unless it is proved that the Trustee
was negligent in ascertaining the pertinent facts.

     (3) The Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05 or any other direction of the
Holders permitted hereunder.

               (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

               (e) The Trustee may refuse to perform any duty or exercise any right or
power unless it receives indemnity satisfactory to it against any loss,
liability or expense.

               (f) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree with the Company. Money held in trust by
the Trustee need not be segregated from other funds except to the extent
required by law.

               (g) None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties or in the exercise of any of its rights
or powers, if there shall be reasonable grounds for believing that the
repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

		
	SECTION 7.02. 	Rights of Trustee.

               Subject to Section 7.01:

               (a) The Trustee may rely and shall be protected in acting or
refraining from acting on any document, resolution, certificate,
instrument, report, or direction believed by it to be genuine and to have
been signed or presented by the proper person.

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The Trustee need not investigate any fact or matter stated in the
document, resolution, certificate, instrument, report, or direction.

     (b) Before the Trustee acts or refrains from acting, it may require
an Officers’ Certificate or an Opinion of Counsel or both, which shall
conform to Sections 10.04 and 10.05 hereof and containing such other
statements as the Trustee reasonably deems necessary to perform its
duties hereunder. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on the Officers’
Certificate, Opinion of Counsel or any other direction of the Company
permitted hereunder.

     (c) The Trustee may act through agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action taken, suffered
or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this
Indenture.

     (e) The Trustee may consult with counsel, and the written advice of
such counsel or any Opinion of Counsel as to matters of law shall be full
and complete authorization and protection in respect of any action taken,
omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

     (f) Unless otherwise specifically provided in the Indenture, any
demand, request, direction or notice from the Company shall be sufficient
if signed by an Officer of the Company.

     (g) For all purposes under this Indenture, the Trustee shall not be
deemed to have notice or knowledge of any Event of Default (other than
under Section 6.01(1) or 6.01(2)) unless a Trust Officer assigned to and
working in the Trustee’s corporate trust office has actual knowledge
thereof or unless written notice of any Event of Default is received by
the Trustee at its address specified in Section 10.02 hereof and such
notice references the Securities generally, the Company or this
Indenture.

		
	SECTION 7.03. 	Individual Rights of Trustee.

               The Trustee in its individual or any other capacity may become the owner
or pledgee of Securities and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. Any
Agent may do the same with like rights. The Trustee, however, must comply with
Sections 7.10 and 7.11.

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	SECTION 7.04. 	Trustee’s Disclaimer.

               The Trustee makes no representation as to the validity or adequacy of this
Indenture, the Securities or of any prospectus used to sell the Securities; it
shall not be accountable for the Company’s use of the proceeds from the
Securities; it shall not be accountable for any money paid to the Company, or
upon the Company’s direction, if made under and in accordance with any
provision of this Indenture; it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee;
and it shall not be responsible for any statement of the Company in this
Indenture or in the Securities other than its certificate of authentication.

		
	SECTION 7.05. 	Notice of Defaults.

               If a Default on a Series occurs and is continuing and if it is known to
the Trustee, the Trustee shall mail to each Securityholder of the Series notice
of the Default (which shall specify any uncured Default known to it) within 90
days after it occurs. Except in the case of a default in payment of principal
of or interest on a Series, the Trustee may withhold the notice if and so long
as the board of directors of the Trustee, the executive or any trust committee
of such directors and/or responsible officers of the Trustee in good faith
determine(s) that withholding the notice is in the interests of Holders of the
Series.

		
	SECTION 7.06. 	Reports by Trustee to Holders.

               Within 60 days after each May 15 beginning with the May 15 following the
date of this Indenture, the Trustee shall mail to each Securityholder a brief
report dated as of such May 15 that complies with TIA Sections 313(a) (but if
no event described in TIA Sections 313(2) has occurred within the twelve months
preceding the reporting date no report need be transmitted). The Trustee also
shall comply with TIA Sections 313(b).

               A copy of each report at the time of its mailing to Securityholders shall
be delivered to the Company and filed by the Trustee with the SEC and each
national securities exchange on which the Securities are listed. The Company
agrees to notify the Trustee of each national securities exchange on which the
Securities are listed.

		
	SECTION 7.07. 	Compensation and Indemnity.

               The Company shall pay to the Trustee or predecessor trustee from time to
time reasonable compensation for their respective services subject to any
written agreement between the Trustee and the Company. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel. The Company shall indemnify the
Trustee and each predecessor trustee, its officers, directors, employees and

-27-

 

agents and hold it harmless against any loss, liability or expense
incurred or made by or on behalf of it in connection with the administration of
this Indenture or the trust hereunder and its duties hereunder including the
costs and expenses of defending itself against or investigating any claim in
the premises. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnity. The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee through the
Trustee’s, or its officers’, directors’, employees’ or agents’ negligence or
bad faith.

               To ensure the Company’s payment obligations in this Section, the Trustee
shall have a claim prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal of or
interest on particular Securities.

               When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 6.01 or in connection with Article 6
hereof, the expenses (including the reasonable fees and expenses of its
counsel) and the compensation for services in connection therewith are to
constitute expenses of administration under any bankruptcy law.

		
	SECTION 7.08. 	Replacement of Trustee.

               The Trustee may resign by so notifying the Company. The Holders of a
majority in principal amount of the outstanding Securities may remove the
Trustee by so notifying the removed Trustee in writing and may appoint a
successor trustee with the Company’s consent. Such resignation or removal
shall not take effect until the appointment by the Securityholders or the
Company as hereinafter provided of a successor trustee and the acceptance of
such appointment by such successor trustee. The Company may remove the Trustee
and any Securityholder may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee for any or no
reason, including if:

     (1) the Trustee fails to comply with Section 7.10 after written
request by the Company or any bona fide Securityholder who has been a
Securityholder for at least six months;

     (2) the Trustee is adjudged a bankrupt or an insolvent;

     (3) a receiver or other public officer takes charge of the Trustee
or its property; or

     (4) the Trustee becomes incapable of acting.

               If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
trustee. If a successor

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trustee does not take office within 45 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or any Holder may
petition any court of competent jurisdiction for the appointment of a successor
trustee.

               A successor trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor trustee, the resignation or removal of the retiring Trustee shall
become effective, and the successor trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. A successor trustee shall mail
notice of its succession to each Securityholder.

		
	SECTION 7.09. 	Successor Trustee by Merger, etc.

               If the Trustee consolidates with, merges with or into or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor trustee.

		
	SECTION 7.10. 	Eligibility; Disqualification.

               This Indenture shall always have a Trustee who satisfies the requirements
of TIA Sections 310(a)(1). The Trustee shall have a combined capital and
surplus of at least $10,000,000 as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA Sections 310(b).

		
	SECTION 7.11. 	Preferential Collection of Claims Against Company.

               The Trustee shall comply with TIA Sections 311(a), excluding any creditor
relationship listed in TIA Sections 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Sections 311(a) to the extent indicated
therein.

ARTICLE EIGHT

DISCHARGE OF INDENTURE

		
	SECTION 8.01. 	Defeasance Upon Deposit of Moneys or U.S. Government
Obligations.

               (a) The Company may, at its option and at any time, elect to have either
paragraph (b) or paragraph (c) below be applied to the outstanding Securities
of any Series upon compliance with the applicable conditions set forth in
paragraph (d).

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               (b) Upon the Company’s exercise under paragraph (a) of the option
applicable to this paragraph (b), the Company shall be deemed to have been
released and discharged from its respective obligations with respect to the
outstanding Securities of a Series on the date the applicable conditions set
forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose,
such Legal Defeasance means that the Company shall be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Securities of
a Series, which shall thereafter be deemed to be “outstanding” only for the
purposes of the Sections and matters under this Indenture referred to in (i)
and (ii) below, and to have satisfied all its other obligations under such
Securities and this Indenture insofar as such Securities are concerned, except
for the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of outstanding Securities of a Series to
receive solely from the trust fund described in paragraph (d) below and as more
fully set forth in such paragraph, payments in respect of the principal of and
interest on such Securities when such payments are due and (ii) obligations
listed in Section 8.02, subject to compliance with this Section 8.01. The
Company may exercise its option under this paragraph (b) notwithstanding the
prior exercise of its option under paragraph (c) below with respect to such
Securities.

               (c) Upon the Company’s exercise under paragraph (a) of the option
applicable to this paragraph (c), the Company shall be released and discharged
from the obligations under any covenant contained in Article Four and any other
covenant contained in the Authorizing Resolution or supplemental indenture
relating to such Series to the extent provided for therein, on and after the
date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Securities of such Series shall thereafter be deemed to
be not “outstanding” for the purpose of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder. For this purpose, such Covenant Defeasance
means that, with respect to the outstanding Securities of a Series, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01(3), but, except as specified
above, the remainder of this Indenture and such Securities shall be unaffected
thereby.

               (d) The following shall be the conditions to application of either
paragraph (b) or paragraph (c) above to the outstanding Securities of the
applicable Series:

            (1) The Company shall have irrevocably deposited in trust with the
Trustee, pursuant to an irrevocable trust and security agreement in form
and substance reasonably satisfactory to the Trustee, money in U.S.
dollars or U.S. government obligations or a combination thereof in such
amounts and at such times as are sufficient, in

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the opinion of a nationally recognized firm of independent public
accountants, to pay the principal of and interest on the outstanding
Securities of such Series to maturity or redemption; provided, however,
that the Trustee (or other qualifying trustee) shall have received an
irrevocable written order from the Company instructing the Trustee (or
other qualifying trustee) to apply such money or the proceeds of such
U.S. government obligations to said payments with respect to the
Securities of such Series to maturity or redemption;

     (2) No Default or Event of Default shall have occurred and be
continuing on the date of such deposit;

     (3) Such deposit will not result in a Default under this Indenture
or a breach or violation of, or constitute a default under, any other
material instrument or agreement to which the Company or any of its
Subsidiaries is a party or by which it or any of their property is bound;

     (4) (i) In the event the Company elects paragraph (b) hereof, the
Company shall deliver to the Trustee an Opinion of Counsel in the United
States, in form and substance reasonably satisfactory to the Trustee, to
the effect that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the
Issue Date pertaining to such Series, there has been a change in the
applicable federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall state that, or (ii) in the
event the Company elects paragraph (c) hereof, the Company shall deliver
to the Trustee an Opinion of Counsel in the United States, in form and
substance reasonably satisfactory to the Trustee, to the effect that, in
the case of clauses (i) and (ii), Holders of the Securities of such
Series will not recognize income, gain or loss for United States federal
income tax purposes as a result of such deposit and the defeasance
contemplated hereby and will be subject to federal income tax in the same
amounts and in the same manner and at the same times as would have been
the case if such deposit and defeasance had not occurred;

     (5) The Company shall have delivered to the Trustee an Officers’
Certificate, stating that the deposit under clause (1) was not made by
the Company with the intent of preferring the Holders of the Securities
of such Series over any other creditors of the Company or with the intent
of defeating, hindering, delaying or defrauding any other creditors of
the Company or others;

     (6) The Company shall have delivered to the Trustee an Opinion of
Counsel, reasonably satisfactory to the Trustee, to the effect that, (A)
the trust funds will not be subject to the rights of Holders of
Indebtedness of the Company other than the Securities of such Series and
(B) assuming no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the deposit and that no Holder

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of Securities of such Series is an insider of the Company, after the
91st day following the deposit, the trust funds will not be subject to
any applicable bankruptcy, insolvency, reorganization or similar law
affecting creditors’ rights generally; and

     (7) The Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent specified herein relating to the defeasance contemplated by
this Section 8.01 have been complied with.

               In the event all or any portion of the Securities of a Series are to be
redeemed through such irrevocable trust, the Company must make arrangements
satisfactory to the Trustee, at the time of such deposit, for the giving of the
notice of such redemption or redemptions by the Trustee in the name and at the
expense of the Company.

               (e) In addition to the Company’s rights above under this Section 8.01,
the Company may terminate all of its obligations under this Indenture with
respect to a Series when:

     (1) All Securities of such Series theretofore authenticated and
delivered (other than Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 2.07
and Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust) have been delivered
to the Trustee for cancellation or all such Securities not theretofore
delivered to the Trustee for cancellation have become due and payable and
the Company has irrevocably deposited or caused to be deposited with the
Trustee as trust funds in trust solely for that purpose an amount of
money sufficient to pay and discharge the entire Indebtedness on the
Securities not theretofore delivered to the Trustee for cancellation, for
principal of and interest;

     (2) The Company has paid or caused to be paid all other sums payable
hereunder by the Company;

     (3) The Company has delivered irrevocable instructions to the
Trustee to apply the deposited money toward the payment of the Securities
at maturity or redemption, as the case may be; and

     (4) The Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, stating that all conditions
precedent specified herein relating to the satisfaction and discharge of
this Indenture have been complied with.

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	SECTION 8.02. 	Survival of the Company’s Obligations.

               Notwithstanding the satisfaction and discharge of the Indenture under
Section 8.01, the Company’s obligations in paragraph 9 of the Securities and
Sections 2.03 through 2.07, 4.01, 7.07, 7.08, 8.04 and 8.05, however, shall
survive until the Securities of an applicable Series are no longer outstanding.
Thereafter, the Company’s obligations in paragraph 9 of the Securities of such
Series and Sections 7.07, 8.04 and 8.05 shall survive (as they relate to such
Series).

		
	SECTION 8.03. 	Application of Trust Money.

               The Trustee shall hold in trust money or U.S. government obligations
deposited with it pursuant to Section 8.01. It shall apply the deposited money
and the money from U.S. government obligations in accordance with this
Indenture to the payment of principal of and interest on the Securities of the
defeased Series.

		
	SECTION 8.04. 	Repayment to the Company.

               The Trustee and the Paying Agent shall promptly pay to the Company upon
request any excess money or securities held by them at any time. The Trustee
and the Paying Agent shall pay to the Company upon request any money held by
them for the payment of principal or interest that remains unclaimed for two
years; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once in a newspaper of general circulation in the City of New York
or mail to each such Holder notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication or mailing, any unclaimed balance of such money then
remaining will be repaid to the Company. After payment to the Company,
Securityholders entitled to the money must look to the Company for payment as
general creditors unless applicable abandoned property law designates another
person and all liability of the Trustee or such Paying Agent with respect to
such money shall cease.

		
	SECTION 8.05. 	Reinstatement.

               If the Trustee is unable to apply any money or U.S. government obligations
in accordance with Section 8.01 by reason of any legal proceeding or by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Securities relating to the Series
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.01 until such time as the Trustee is permitted to apply all such
money or U.S. government obligations in accordance with Section 8.01; provided,
however, that (a) if the Company has made any payment of interest on or
principal of any Securities of the Series because

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of the reinstatement of their obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from
the money or U.S. government obligations held by the Trustee and (b) unless
otherwise required by any legal proceeding or any order or judgment of any
court or governmental authority, the Trustee shall return all such money or
U.S. government obligations to the Company promptly after receiving a written
request therefor at any time, if such reinstatement of the Company’s
obligations has occurred and continues to be in effect.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

		
	SECTION 9.01. 	Without Consent of Holders.

               The Company and the Trustee may amend or supplement this Indenture or the
Securities of a Series without notice to or consent of any Securityholder of
such Series:

     (1) to cure any ambiguity, omission, defect or inconsistency;

     (2) to comply with Article Five;

     (3) to provide that specific provisions of this Indenture shall not
apply to a Series not previously issued;

     (4) to create a Series and establish its terms;

     (5) to provide for uncertificated Securities in addition to or in
place of certificated Securities; and

     (6) to make any other change that does not adversely affect the
rights of Securityholders.

               After an amendment under this Section 9.01 becomes effective, the Company
shall mail notice of such amendment to the Securityholders.

		
	SECTION 9.02. 	With Consent of Holders.

               The Company and the Trustee may amend or supplement this Indenture or the
Securities of a Series without notice to any Securityholder of such Series but
with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each such Series affected by the
amendment. Each such Series shall vote as a separate

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class. The Holders of a majority in principal amount of the outstanding
Securities of any Series may waive compliance by the Company with any provision
of the Securities of such Series or of this Indenture relating to such Series
without notice to any Securityholder. Without the consent of each
Securityholder of a Series affected, however, an amendment, supplement or
waiver, including a waiver pursuant to Section 6.04, may not:

     (1) reduce the amount of Securities of such Series whose Holders
must consent to an amendment, supplement or waiver;

     (2) reduce the rate of or change the time for payment of interest,
including defaulted interest, on any Security;

     (3) reduce the principal of or change the fixed maturity of any
Security or alter the provisions (including related definitions) with
respect to redemption of Securities pursuant to Article Three hereof or
with respect to any obligations on the part of the Company to offer to
purchase or to redeem Securities of a Series pursuant to the Authorizing
Resolution or supplemental indenture pertaining to such Series;

     (4) modify the ranking or priority of the Securities of any Series;

     (5) make any change in Sections 6.04, 6.07 or this Section 9.02;

     (6) waive a continuing Default or Event of Default in the payment of
the principal of or interest on any Security; or

     (7) make any Security payable at a place or in money other than that
stated in the Security, or impair the right of any Securityholder to
bring suit as permitted by Section 6.07.

               An amendment of a provision included solely for the benefit of one or more
Series does not affect the interests of Securityholders of any other Series.

               It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed supplement, but it shall
be sufficient if such consent approves the substance thereof.

		
	SECTION 9.03. 	Compliance with Trust Indenture Act.

               Every amendment to or supplement of this Indenture or the Securities shall
comply with the TIA as then in effect.

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	SECTION 9.04. 	Revocation and Effect of Consents.

               A consent to an amendment, supplement or waiver by a Holder shall bind the
Holder and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. Subject to the following
paragraph, any such Holder or subsequent Holder, however, may revoke the
consent as to his Security or portion of a Security. Such revocation shall be
effective only if the Trustee receives the notice of revocation before the date
the amendment, supplement or waiver becomes effective.

               The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders of Securities of any Series entitled to
consent to any amendment, supplement or waiver, which record date shall be at
least 10 days prior to the first solicitation of such consent. If a record
date is fixed, then notwithstanding the last sentence of the immediately
preceding paragraph, those Persons who were Holders at such record date (or
their duly designated proxies), and only those Persons, shall be entitled to
revoke any consent previously given, whether or not such Persons continue to be
Holders after such record date. No such consent shall be valid or effective
for more than 90 days after such record date.

               After an amendment, supplement or waiver becomes effective, it shall bind
every Holder, unless it makes a change described in any of clauses (1) through
(7) of Section 9.02, in which case, the amendment, supplement or waiver shall
bind only each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security; provided, that any such waiver
shall not impair or affect the right of any Holder to receive payment of
principal of and interest on a Security, on or after the respective due dates
expressed in such Security, or to bring suit for the enforcement of any such
payment on or after such respective dates without the consent of such Holder.

		
	SECTION 9.05. 	Notation on or Exchange of Securities.

               If an amendment, supplement or waiver changes the terms of a Security, the
Company may require the Holder of the Security to deliver it to the Trustee, at
which time the Trustee shall place an appropriate notation on the Security
about the changed terms and return it to the Holder. Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Security
shall issue and the Trustee shall authenticate a new Security that reflects the
changed terms.

		
	SECTION 9.06. 	Trustee to Sign Amendments, etc.

               Subject to Section 7.02(b), the Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article if the amendment,
supplement or waiver does not

-36-

 

adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing or
refusing to sign such amendment or supplemental indenture, the Trustee shall be
entitled to receive and shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that such
amendment or supplemental indenture is authorized or permitted by this
Indenture, that it is not inconsistent herewith, and that it will be valid and
binding upon the Company in accordance with its terms.

ARTICLE TEN

MISCELLANEOUS

		
	SECTION 10.01. 	Trust Indenture Act Controls.

               If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control.

		
	SECTION 10.02. 	Notices.

               Any order, consent, notice or communication shall be sufficiently given if
in writing and delivered in person or mailed by first class mail, postage
prepaid, addressed as follows:

	 	 	 
	

	 	if to the Company:
	 
	 	 
	

	 	M.D.C. Holdings, Inc.
	

	 	3600 South Yosemite
	

	 	Suite 900
	

	 	Denver, CO 80237
	

	 	Telecopy No.: (303) 793-2760
	

	 	Attention: Chief Financial Officer
	 
	 	 
	

	 	if to the Trustee:
	 
	 	 
	

	 	U.S. Bank National Association
	

	 	180 East Fifth Street
	

	 	St. Paul, MN 55101
	

	 	Telecopy No.: (651) 244-0711 or 12
	

	 	Attention: Corporate Trust Administration

-37-

 

               The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.

               Any notice or communication mailed to a Securityholder shall be mailed to
him by first class mail at his address as it appears on the registration books
of the Registrar and shall be sufficiently given to him if so mailed within the
time prescribed.

               Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it except that
notice to the Trustee shall only be effective upon receipt thereof by the
Trustee.

               If the Company mails notice or communications to the Securityholders, it
shall mail a copy to the Trustee at the same time.

		
	SECTION 10.03. 	Communications by Holders with Other Holders.

     Securityholders may communicate pursuant to TIA Sections 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Sections 312(c).

		
	SECTION 10.04. 	Certificate and Opinion as to Conditions Precedent.

               Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate (which shall include the statements set
forth in Section 10.05) stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with; and

     (2) an Opinion of Counsel (which shall include the statements set
forth in Section 10.05) stating that, in the opinion of such counsel, all
such conditions precedent and covenants, compliance with which
constitutes a condition precedent, if any, provided for in this Indenture
relating to the proposed action or inaction, have been complied with and
that any such section does not conflict with the terms of the Indenture.

-38-

 

		
	SECTION 10.05. 	Statements Required in Certificate or Opinion.

               Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

     (1) a statement that the person making such certificate or opinion
has read such covenant or condition;

     (2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;

     (3) a statement that, in the opinion of such person, he has made
such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with; and

     (4) a statement as to whether or not, in the opinion of such person,
such condition or covenant has been complied with.

		
	SECTION 10.06. 	Rules by Trustee and Agents.

               The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar or Paying Agent may make reasonable rules for
its functions.

		
	SECTION 10.07. 	Legal Holidays.

               A “Legal Holiday” is a Saturday, a Sunday, a legal holiday or a day on
which banking institutions in Denver, Colorado and New York, New York are not
required to be open. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.
A “Business Day” is any day other than a Legal Holiday.

		
	SECTION 10.08. 	Governing Law.

               The laws of the State of New York shall govern this Indenture and the
Securities of each Series.

		
	SECTION 10.09. 	No Adverse Interpretation of Other Agreements.

               This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

-39-

 

		
	SECTION 10.10. 	No Recourse Against Others.

               All liability described in paragraph 12 of the Securities of any director,
officer, employee or stockholder, as such, of the Company is waived and
released.

		
	SECTION 10.11. 	Successors and Assigns.

               All covenants and agreements of the Company in this Indenture and the
Securities shall bind its successors and assigns. All agreements of the
Trustee in this Indenture shall bind its successors and assigns.

		
	SECTION 10.12. 	Duplicate Originals.

               The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

		
	SECTION 10.13. 	Severability.

               In case any one or more of the provisions contained in this Indenture or
in the Securities of a Series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Securities.

[Signature Page Follows]

-40-

 

SIGNATURES

               IN WITNESS WHEREOF, the parties have caused this Indenture to be duly
executed, all as of the date first above written.

	 	 	 	 	 	 	 
	Dated: December 3, 2002	 	M.D.C. HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Michael Touff
	 	 	 	 	
 
	

	 	 	 	Name:
	 	Michael Touff
	

	 	 	 	Title:
	 	Senior Vice President

S-1

 

	 	 	 	 	 	 	 
	Dated: December 3, 2002	 	U.S. Bank National Association,
	 	 	   as Trustee
	 
	 	 	 	 	 	 
	 	 	By:	 	 	 	/s/ Richard H. Prokosch
	 	 	 	 	
 
	

	 	 	 	Name:
	 	Richard H. Prokosch
	

	 	 	 	Title:
	 	Vice President

(SEAL)

S-2

 

Exhibit A

	 	 	 
	No.

	 	CUSIP No.:

[Title of Security]

M.D.C. HOLDINGS, INC., a Delaware corporation promises to pay to
          or registered assigns the principal sum of                      [Dollars] on                     
..

[Title of Security]

	 	 	Interest Payment Dates:            and
	 
	 	 	Record Dates            and
	 
	 	 	Authenticated:            Dated:

	 	 	 	 	 
	 	 	M.D.C. HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name
	

	 	 	 	Title:
	 
	 	 	 	 
	U.S. Bank National Association,
as Trustee, certifies that this is
one of the Securities referred to in
the within
mentioned Indenture.
	 	 	 	 

	 	 	 
	By:
	 	 
	

	 	
 
	

	 	Name:
	

	 	Title: Authorized Signatory

A-1

 

	 	 	 
	

	 	M.D.C. HOLDINGS, INC.
	

	 	[Title of Security]

A-2

 

	1.	 	Interest.

               M.D.C. HOLDINGS, INC. (the “Company”), a Delaware corporation, promises to
pay interest on the principal amount of this Security at the rate per annum
shown above. The Company will pay interest semiannually on [       ] and [       ]
of each year until the principal is paid or made available for payment.
Interest on the Securities will accrue from the most recent date to which
interest has been paid or duly provided for or, if no interest has been paid,
from [   ]; provided that, if there is no existing default in the payment of
interest, and if this Security is authenticated between a record date referred
to on the face hereof and the next succeeding interest payment date, interest
shall accrue from such interest payment date. Interest will be computed on the
basis of a 360-day year of twelve 30-day months. [Provisions as to the right
of the Company to defer interest, if any, may be set forth here. ]

	2.	 	Method of Payment.

               The Company will pay interest on the Securities (except defaulted
interest, if any, which will be paid on such special payment date to Holders of
record on such special record date as may be fixed by the Company) to the
persons who are registered Holders of Securities at the close of business on
the [Insert record dates]. Holders must surrender Securities to a Paying Agent
to collect principal payments. The Company will pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts.

	3.	 	Paying Agent and Registrar.

               Initially, U.S. Bank National Association (the “Trustee”) will act as
Paying Agent and Registrar. The Company may change or appoint any Paying
Agent, Registrar or co-Registrar without notice. The Company or any of its
Subsidiaries may act as Paying Agent, Registrar or co-Registrar.

	4.	 	Indenture.

               The Company issued the Securities under an Indenture dated as of December
3, 2002 (“Indenture”) among the Company and the Trustee. The terms of the
Securities include those stated in the Indenture (including those terms set
forth in the Authorizing Resolution or supplemental indenture pertaining to the
Securities of the Series of which this Security is a part) and those made part
of the Indenture by reference to the Trust Indenture Act of 1939 (“TIA”) as in
effect on the date of the Indenture. The Securities are subject to all such
terms, and Securityholders are referred to the Indenture and the Act for a
statement of them.

               The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture and the applicable Authorizing
Resolution or supplemental indenture. Requests may be made to: M.D.C.
Holdings, Inc., 3600 South Yosemite, Suite 900, Denver, Colorado 80237,
Attention: Secretary.

A-3

 

	5.	 	Optional Redemption.

               The Company may redeem the Securities at any time on or after [      
], in whole or in part, at the following redemption prices (expressed as a
percentage of their principal amount), set forth below, plus together with
interest accrued and unpaid thereon to the date fixed for redemption:

               If redeemed during the twelve-month period commencing on [       ] and
ending on [       ] in each of the following years:

	 	 	 	 	 
	 	 	REDEMPTION
	YEAR	 	PRICE
	[       ]
	 	 	[       ]	%
	[       ]
	 	 	[       ]	%
	[       ]
	 	 	[       ]	%
	[       ] and thereafter
	 	 	100.000	%

               Notice of redemption will be mailed at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000 may be
redeemed in part. On and after the redemption date, interest ceases to accrue
on Securities or portions of them called for redemption; provided, that if the
Company shall default in the payment of such Security at the redemption price
together with accrued interest, interest shall continue to accrue at the rate
borne by the Securities.

[Insert provisions relating to redemption at option of Holders, if any]

	6.	 	Denominations, Transfer, Exchange.

               The Securities are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. A Holder may transfer or exchange
Securities by presentation of such Securities to the Registrar or a
co-Registrar with a request to register the transfer or to exchange them for an
equal principal amount of Securities of other denominations. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture. The Registrar need not transfer or exchange any Security
selected for redemption, except the unredeemed part thereof if the Security is
redeemed in part, or transfer or exchange any Securities for a period of 15
days before a selection of Securities to be redeemed.

	7.	 	Persons Deemed Owners.

               The registered Holder of this Security shall be treated as the owner of it
for all purposes.

A-4

 

	8.	 	Unclaimed Money.

               If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent will pay the money back to the Company
at its request. After that, Holders entitled to the money must look to the
Company for payment unless an abandoned property law designates another person.

	9.	 	Amendment, Supplement, Waiver.

               Subject to certain exceptions, the Indenture or the Securities may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the outstanding Securities of each Series affected by
the amendment and any past default or compliance with any provision relating to
any Series of the Securities may be waived in a particular instance with the
consent of the Holders of a majority in principal amount of the outstanding
Securities of such Series. Without the consent of any Securityholder, the
Company and the Trustee may amend or supplement the Indenture or the Securities
to cure any ambiguity, defect or inconsistency, to provide for uncertificated
Securities in addition to or in place of certificated Securities, to create a
Series and establish its terms, or to make any other change, provided such
action does not adversely affect the rights of any Securityholder.

	10.	 	Successor Corporation.

               When a successor corporation assumes all the obligations of its
predecessor under the Securities and the Indenture, the predecessor corporation
will be released from those obligations.

	11.	 	Trustee Dealings With Company.

               U.S. Bank National Association, the Trustee under the Indenture, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not Trustee.

	12.	 	No Recourse Against Others.

               A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by
reason of, such obligations or their creation. Each Securityholder by
accepting a Security waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Securities.

	13.	 	Discharge of Indenture.

               The Indenture contains certain provisions pertaining to defeasance, which
provisions shall for all purposes have the same effect as if set forth herein.

A-5

 

	14.	 	Authentication.

               This Security shall not be valid until the Trustee signs the certificate
of authentication on the other side of this Security.

	15.	 	Abbreviations.

               Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

A-6

 

ASSIGNMENT FORM

               If you, the Holder, want to assign this Security, fill in the form below:

               I or we assign and transfer this Security to:

(Insert assignee’s social security or tax ID number)

(Print or type assignee’s name, address and zip code)

and irrevocably appoint:

agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your signature:	 	 
	

	 	
 
	 	 	 	
 
	

	 	 	 	 	 	(Sign exactly as your name
appears on the other side of
this Security)

		
	Signature

Guarantee: 	
 

A-7Exhibit 10.1

                            STOCK PURCHASE AGREEMENT

         STOCK PURCHASE AGREEMENT, dated as of August 26, 2004 (this
"Agreement"), by and among the parties set forth on Schedule A annexed hereto,
(jointly and severally referred to as the "Shareholder(s)"), The Furia
Organization, Inc., a Delaware corporation ("Purchaser"), and Fronthaul, Inc., a
Nevada corporation ("Company").

                               W I T N E S S E T H

         WHEREAS, Shareholder(s) desire to sell to Purchaser 3,500,000 shares of
the Company's common stock, par value of $ .001 (the "Common Stock") (the
"Shares"), representing 100% of the Company's issued and outstanding shares of
the Common Stock, on the terms and conditions set forth in this Agreement, and

         WHEREAS, Purchaser desires to purchase the Shares on the terms and
conditions set forth herein, and

         WHEREAS the Company joins in the execution of this Agreement for the
purpose of evidencing its consent to the consummation of the foregoing
transactions and for the purpose of making certain representations and
warranties to and covenants and agreements with the Purchaser.

         NOW THEREFORE, in consideration of the promises and respective mutual
agreements herein contained, it is agreed by and between the parties hereto as
follows.

                                    ARTICLE 1
                         SALE AND PURCHASE OF THE SHARES

         1.1 Sale of the Shares. Subject to the terms and conditions herein set
forth, on the basis of the representations, warranties and agreements herein
contained, Shareholder(s) hereby sell, assign, transfer and deliver their
respective Shares to Purchaser, and Purchaser purchases the Shares from the
Shareholder(s).

         1.2 The Closing. The purchase of the Shares shall take place at the
office of the Purchaser in Boca Raton, Florida or such other place as Purchaser
and Shareholder(s) may mutually agree contemporaneously with the execution
hereof. Such date is herein referred to as the "Closing Date".

         1.3 Instruments of Conveyance and Transfer. At the Closing Date,
Shareholder(s) shall deliver certificates representing the Shares to Purchaser,
duly endorsed by the Shareholder(s) to the Purchaser, in form and substance
satisfactory to Purchaser ("Certificates"), as shall be effective to vest in
Purchaser all right, title and interest in and to all of the Shares.

         1.4 Consideration and Payment for the Shares. In consideration for the
Shares, Purchaser shall pay to the Seller a total purchase price consisting of
20,000,000 post-split shares of Purchaser's restricted common stock
(Shareholders of the Purchaser have approved a 1 for 5 reverse split effective
August 2004) and 500,000 shares of Purchaser's Series A Convertible Preferred
Shares ("Preferred Shares") (20,000,000 shares of common stock and the 500,000
Preferred Shares are collectively referred to as the "Purchase Price"). The
Preferred Shares shall have the following rights, privileges and preferences:

         (a) The Preferred Shares shall have no voting rights;

         (b) The Preferred Shares shall have a non-cumulative dividend of $.001
per shares;

<PAGE>

         (c) In the event of liquidation or dissolution of the Purchaser, the
Preferred Shares, to the extent of $.001 per share shall have priority over the
Purchaser's Common Shares with respect to distribution.

         (d) The Preferred Shares shall be convertible, at the option of the
Holder, into Common Shares of the Purchaser, at the rate of 100 shares of Common
Stock for each share of Preferred Stock, which right of conversion shall be
based upon the following formula:

                  (i) Upon the Purchaser achieving revenues of $250,000 within
twelve (12) months from the date of this Agreement, an aggregate of 25% of the
Preferred Shares may be converted;

                  (ii) Upon the Purchaser achieving revenues of $500,000 within
twelve (12) months from the date of this Agreement, an aggregate of 50% of the
Preferred Shares may be converted; and

                  (iii) Upon the Purchaser achieving revenues of $750,000 within
twelve (12) months from the date of this Agreement, an aggregate of 100% of the
Preferred Shares may be converted.

         (e) On the one year anniversary of this Agreement ("Anniversary Date"),
should the Purchaser fail to achieve any or all of the revenue thresholds, the
Purchaser shall redeem the unconverted Preferred Shares at a price of $.50 per
share. Should the Purchaser fail to redeem any or all of the unconverted
Preferred Shares within 30 days from the Anniversary Date, then the Shareholder,
without regards to the revenue requirements set forth above may, at any time
thereafter, convert the Preferred Shares to common stock as hereinbefore set
forth.

                                    ARTICLE 2
              REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER(S)

         Each Shareholder represents, warrants and undertakes to the Purchaser
that, except as set forth in the Disclosure Schedule:

         2.1 Transfer of Title. Shareholder(s) shall transfer all right, title
and interest in and to the Shares to the Purchaser free and clear of all liens,
security interests, pledges, encumbrances, charges, restrictions, demands and
claims, of any kind or nature whatsoever, whether direct or indirect or
contingent.

         (a) Due Execution. This Agreement has been duly executed and delivered
by the Shareholder(s).

         (b) Valid Agreement. This Agreement constitutes, and upon execution and
delivery thereof by the Shareholder(s), will constitute, a valid and binding
agreement of the Shareholder(s) enforceable against the Shareholder(s) in
accordance with its terms.

         (c) Authorization. The execution, delivery and performance by the
Shareholder(s) of this Agreement and the delivery by the Shareholder(s) of the
Shares have been duly and validly authorized by the Company, and no further
consent or authorization of the Shareholder(s), the Company, its Board of
Directors, or its stockholders is required.

                                       2
<PAGE>

       (d) Shareholder(s)' Title to Shares; No Liens or Preemptive Rights; Valid
Issuance. Shareholder(s) have and at the Closing will have good and valid title
and control of the Shares; there will be no existing impediment or encumbrance
to the sale and transfer of such Shares to the Purchaser; and on delivery to the
Purchaser of the Shares, good and valid title to all the Shares will pass to
Purchaser and all of the Shares will be free and clear of all taxes, liens,
security interests, pledges, rights of first refusal or other preference rights,
encumbrances, charges, restrictions, demands, claims or assessments of any kind
or any nature whatsoever whether direct, indirect or contingent and shall not be
subject to preemptive rights, tag-along rights, or similar rights of any of the
stockholders of the Company. The Shares have been legally and validly issued in
compliance with all applicable U.S. Federal and state securities laws, and are
fully paid and non-assessable shares of the Company's Common Stock; and the
Shares have all been issued under duly authorized resolutions of the Board of
Directors of the Company. At the Closing, Shareholder(s) shall deliver to the
Purchaser Certificates representing the Shares free and clear of all liens,
security interests, pledges, encumbrances, charges, restrictions, demands or
claims in any other party whatsoever with appropriate stock powers with
medallion guarantees.

         2.2 No Governmental Action Required. The execution and delivery by the
Shareholder(s) of this Agreement does not and will not, and the consummation of
the transactions contemplated hereby will not, require any action by or in
respect of, or filing with, any governmental body, agency or governmental
official.

         2.3 Compliance with Applicable Law and Corporate Documents. The
execution and delivery by the Shareholder(s) and the Company of this Agreement
does not and will not, and the sale by the Shareholder(s) of the Shares and the
consummation of the other transactions contemplated by this Agreement does not
and will not contravene or constitute a default under or violation of (i) any
provision of applicable law or regulation, (ii) the articles of incorporation or
by-laws of the Company or (iii) any agreement, judgment, injunction, order,
decree or other instrument binding upon the Shareholder(s) or the Company's
assets, or result in the creation or imposition of any lien on any asset of the
Shareholder(s).

         2.4 Not a Voting Trust; No Proxies. None of the Shares are or will be
subject to any voting trust or agreement. No person holds or has the right to
receive any proxy or similar instrument with respect to the Shares. Except as
provided in this Agreement, the Shareholder(s) is not a party to any agreement
which offers or grants to any person the right to purchase or acquire any of the
Shares. There is no applicable local, state or federal law, rule, regulation, or
decree which would, as a result of the sale contemplated by this Agreement,
impair, restrict or delay any voting rights with respect to the Shares.

         2.5 Survival of Representations. The representations and warranties
herein by the Shareholder(s) will be true and correct in all material respects
on and as of the Closing Date with the same force and effect as though said
representations and warranties had been made on and as of the Closing Date and
will survive the Closing Date as provided in Section 7.1(c).

         2.6 Adoption of Company's Representations. The Shareholder(s) adopts
and remakes as his own each and every representation, warranty and undertaking
made by the Company in Article 3 below as if he had made such representations,
warranties and undertakings to the Purchaser directly.

         2.7 Brokers. No broker, finder or investment banker is entitled to any
brokerage, finder's or other fee or commission payable by the Purchaser or the
Company in connection with the transactions contemplated by this Agreement.

                                       3
<PAGE>

         2.8 Investment Intent. Shareholder(s) represents that it is acquiring
and will acquire, as the case may be, the Purchase Price Shares issuable to it
pursuant hereto solely for its own account for investment purposes only and not
with a view toward resale or distribution thereof other than pursuant to an
effective registration statement or applicable exemption from the registration
requirements of the Securities Act of 1933, as amended (the "Securities Act").
Shareholder(s) understands that such Purchase Price Shares will be issued in
reliance upon an exemption from the registration requirements of the Securities
Act and that subsequent sale or transfer of such securities is prohibited absent
registration or exemption from the provisions of the Securities Act.
Shareholder(s) further acknowledges that under SEC Rule 144, the Purchase Price
Shares may be sold pursuant to all of the provisions of such Rule after a
holding period of one year and that the Purchase Price Shares will become fully
tradable after a holding period of two years. Shareholder(s) hereby agrees that
it will not sell, assign, transfer, pledge or otherwise convey any of the
Purchase Price Shares assumable pursuant hereto, except in compliance with the
provisions of the Securities Act and in accordance with any transfer
restrictions or similar terms set forth on the certificates representing such
securities or otherwise set forth herein. Shareholder(s) acknowledges receiving
copies of Purchaser's most recent SEC disclosure statements.

                                    ARTICLE 3
           REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COMPANY

         The Company represents, warrants and undertakes to the Purchaser that,
except as set forth on the Disclosure Schedule:

         3.1 Due Organization. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Nevada (a)
with full power and authority to own, lease, use, and operate its properties and
to carry on its business as and where now owned, leased, used, operated and
conducted. The Company has no subsidiaries. The Company is not qualified to
conduct business in any jurisdiction other than the State of Nevada, and (b) all
actions taken by the current directors and stockholders of the Company have been
valid and in accordance with the laws of the State of Nevada and all actions
taken by the Company have been duly authorized by the current directors and
stockholders of the Company as appropriate.

         3.2 (a) Company Authority. The Company has all requisite corporate
power and authority to enter into and perform this Agreement and to consummate
the transactions contemplated herein.

         (b) Duly Authorized. The execution, delivery and performance by the
Company of this Agreement have been duly and validly authorized and no further
consent or authorization of the Company, its board of Directors or is
stockholders is required.

         (c) Valid Execution. This Agreement has been duly executed and
delivered by the Company.

         (d) Binding Agreement. This Agreement constitutes, and upon execution
and delivery thereof by the Company, will constitute, a valid and binding
agreement of the Company, enforceable against the Company in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency or similar
laws affecting creditor's rights generally or the availability of equitable
remedies.

                                       4
<PAGE>

         (e) No Violation of Corporate Documents or Agreements. The execution
and delivery of this Agreement by the Company and the performance by the parties
hereto of their obligations hereunder will not cause, constitute, or conflict
with or result in (i) any breach or violation, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a
material benefit under, or to increased, additional, accelerated or guaranteed
rights or entitlements of any person under any of the provisions of, or
constitute a default under, any license, indenture, mortgage, charter,
instrument, articles of incorporation, bylaw, judgment, order, decision, writ,
injunction, or decree or other agreement or instrument or proceeding to which
the Company or its stockholders are a party, or by which they may be bound, nor
will any consents or authorizations of any party other than by those hereto
required, (ii) an event that would cause the Company to be liable to any party,
or (iii) an event that would result in the creation or imposition or any lien,
charge or encumbrance on any asset of the Company or on the securities of the
Company to be acquired by the Purchaser.

         3.3 Authorized Capital, No Preemptive Rights, No Liens; Anti-Dilution.
As of the date hereof, the authorized capital of the Company is 100,000,000
shares of Common Stock, with par value of $ .001, of which there are 3,500,000
shares issued and outstanding. There is no authorized preferred stock of any
kind. The names and number of shares of all owners of Common Stock are listed in
the Disclosure Schedule. All of the shares of capital stock are duly authorized,
validly issued, fully paid and non-assessable. No shares of capital stock of the
Company are subject to preemptive rights or similar rights of the stockholders
of the Company or any liens or encumbrances imposed through the actions or
failure to act of the Company, or otherwise. As of the date hereof (i) there are
no outstanding options, warrants, convertible securities, scrip, rights to
subscribe for, puts, calls, rights of first refusal, tag-along agreements, nor
any other agreements, understandings, claims or other commitments or rights of
any character whatsoever relating to, or securities or rights convertible into
or exchangeable for any shares of capital stock of the Company, or arrangements
by which the Company is or may become bound to issue additional shares of
capital stock of the Company, and (ii) there are no agreements or arrangements
under which the Company is obligated to register the sale of any of its
securities under the Securities Act of 1933, and (iii) there are no
anti-dilution or price adjustment provisions contained in any security issued by
the Company (or in the Company's articles of incorporation or by-laws or in any
agreement providing rights to security holders) that will be triggered by the
transactions contemplated by this Agreement. The Company has furnished to
Purchaser true and correct and complete copies of the Company's articles of
incorporation, by-laws and corporate resolutions, as well as copies of all
minutes of the Company's Board of Directors meetings.

         3.4 No Governmental Action Required. The execution and delivery by the
Company of this Agreement does not and will not, and the consummation of the
transactions contemplated hereby will not, require any action by or in respect
of, or filing with, any governmental body, agency or governmental official.

         3.5 Compliance with Applicable Law and Corporate Documents. The
execution and delivery by the Company of this Agreement and the performance by
the parties hereto of the transactions contemplated hereby does not and will not
contravene or constitute a default under or violation of (i) any provision of
applicable law or regulation, including any environmental law, (ii) the
Company's articles of incorporation or bylaws, or (iii) any agreement, judgment,
injunction, order, decree or other instrument binding upon the Company or any
its assets, or result in the creation or imposition of any lien on any asset of
the Company. To the best of its knowledge, the Company is in compliance with and
conforms to all statutes, laws, ordinances, rules, regulations, orders,
restrictions and all other legal requirements of any domestic or foreign
government or any instrumentality thereof having jurisdiction over the conduct
of its businesses or the ownership of its properties.

                                       5
<PAGE>

         3.6 Financial Statements. (a) The Purchaser has received a copy of the
unaudited financial statements of the Company from inception to August 19th,
2004 ("Financial Statements"). The Financial Statements fairly present the
financial condition of the Company at the dates indicated and its results of
their operations and cash flows for the periods then ended and, except as
indicated therein, reflect all claims against, debts and liabilities of the
Company, fixed or contingent, and of whatever nature. (b) Since , there has been
no material adverse change in the assets or liabilities, or in the business or
condition, financial or otherwise, or in the results of operations or prospects,
of the Company, whether as a result of any legislative or regulatory change,
revocation of any license or rights to do business, fire, explosion, accident,
casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God,
public force or otherwise and no material adverse change in the assets or
liabilities, or in the business or condition, financial or otherwise, or in the
results of operation or prospects, of the Company except in the ordinary course
of business. (c) Since the Balance Sheet Date, the Company has not suffered any
damage, destruction or loss of physical property (whether or not covered by
insurance) affecting its condition (financial or otherwise) or operations
(present or prospective), nor has the Company issued, sold or otherwise disposed
of, or agreed to issue, sell or otherwise dispose of, any capital stock or any
other security of the Company and has not granted or agreed to grant any option,
warrant or other right to subscribe for or to purchase any capital stock or any
other security of the Company or has incurred or agreed to incur any
indebtedness for borrowed money.

         3.7 No Litigation. The Company is not a party to any suit, action,
arbitration, or legal, administrative, or other proceeding, or pending or
threatened governmental investigation. The Company is not subject to or in
default with respect to any order, writ, injunction, or decree of any federal,
state, local, or foreign court, department, agency, or instrumentality.

         3.8 No Taxes. The Company is not, and will not become with respect to
any periods ending on or prior to the Closing Date, liable for any income,
sales, withholding, franchise, excise, license, real or personal property taxes
(a "Tax") to any foreign, United States federal, state or local governmental
agencies whatsoever. All United States federal, state, county, municipality
local or foreign income Tax returns and all other material Tax returns
(including information returns) that are required, or have been required, to be
filed by or on behalf of the Company have been or will be filed as of the
Closing Date and all Taxes due pursuant to such returns or pursuant to any
assessment received by the Company have been or will be paid as of the Closing
Date. The charges, accruals and reserves on the books of the Company in respect
of taxes or other governmental charges have been established in accordance with
the tax method of accounting. All returns that have been filed relating to Tax
are true and accurate in all material respects. No audit, action, suit,
proceeding or other examination regarding taxes for which the Company may have
any liability is currently pending against or with respect to the Company and
neither Shareholder(s) nor the Company has received any notice (formally or
informally) of any audit, suit, proceeding or other examination. No material
adjustment relating to any Tax returns, no closing or similar agreement have
been entered into or issued or have been proposed (formally or informally) by
any tax authority (insofar as such action relate to activities or income of or
could result in liability of the Company for any Tax) and no basis exists for
any such actions. The Company has not changed any election, adopted or changed
any accounting method or period, filed any amended return for any Tax, settled
any claim or assessment of any Tax, or surrendered any right to claim any refund
of any Tax, or consented to any extension or waiver of the statute of
limitations for any Tax. The Company has not had an "ownership change" as that
term is defined in Section 382 of the Internal Revenue Code of 1986, as amended
and in effect.

                                       6
<PAGE>

         3.9 Assets.

         See attached Exhibit A

         3.10 Licenses, Permits, Etc. The Company possesses adequate licenses,
clearances, ratings, permits and franchises, and all rights with respect
thereto, to conduct its business substantially as now and heretofore conducted,
and without any conflict with the rights of others in any such license,
clearance, rating, permit or franchise. Except for instances previously
remedied, the Company does not have knowledge of, nor has it received notice of,
any termination, revocation or limitation of, or of the pendency or threatened
commencement of any proceeding to terminate, revoke or limit any such licenses,
clearances, ratings, permits or other approvals by the governmental body issuing
same. No such right will be terminated as a result of the sale of the Shares
hereby. A list of all such permits and licenses is set forth in the Disclosure
Statement.

         3.11 Conduct of the Business.  From inception until the Closing Date:

         (a) The Company has continued to be operated in the usual and ordinary
manner in which its business has been conducted in the past and during such
period. The Company has not made any expenditures or entered into any
commitments which, when compared to past operations of its business, are unusual
or extraordinary or outside the scope of the normal course of routine
operations;

         (b) The Company has kept in a normal state of repair and operating
efficiency all tangible personal property used in the operation of its business;

         (c) The Company has used its best efforts to maintain the good will
associated with its business, and the existing business relationships with its
agents, customers, lessors, key employees, suppliers and other persons having
relations with it;

         (d) The Company has not entered into any contract, agreement or action,
or relinquished or released any rights or privileges under any contracts or
agreements, the performance, violation, relinquishment or release of which
could, on the date on which such contract or agreement was entered into, or such
rights or privileges were relinquished or released, be reasonably foreseen to
have a material adverse effect;

         (e) The Company has not made, or agreed to make, any acquisition of
stock or assets of, or made loans to, any person not in the ordinary course of
business;

         (f) The Company has not sold or disposed of any assets or created or
permitted to exist any encumbrance on its assets except in the ordinary course
of business and which could not, on the date of such sale, disposition, creation
or permission, be reasonably foreseen to have a material adverse effect or (y)
as otherwise permitted by this Agreement;

         (g) The Company has kept true, complete and correct books of records
and accounts with respect to its business, in which entries will be made of all
transactions on a basis consistent with past practices and in accordance with
the tax method of accounting consistently applied by the Company;

         (h) The Company has paid current liabilities as and when they became
due and has paid or incurred no fees and expenses not in the ordinary course of
its business;

         (i) There has been no declaration, setting aside or payment of any
dividend or other distribution in respect of any Shares or any other securities
of the Company (whether in cash or in kind);

                                       7
<PAGE>

         (j) The Company has not redeemed, repurchased, or otherwise acquired
any of its securities or entered into any Agreement to do so;

         (k) The Company has not made any sale or pledge of accounts receivable;

         (l) Except for normal annual increases resulting from the application
of existing formulae under existing plans, agreements or policies relating to
non-officer/director, employee compensation, and except as set forth in this
Agreement and in the Disclosure Schedule, there has not been any material
increase in the rate of compensation payable or to become payable to employees
in the aggregate, or any increase in the amounts paid or payable to the
Company's officers or directors, or payable to such officers, directors or
employees in the aggregate under any bonus, insurance, pension or other benefit
plan, or any arrangements therefore made for or with any of said officers or
employees;

         (m) The Company has not made any loan to, or entered into any other
transaction with, any of its directors, officers, and employees;

         (n) The Company has not made or pledged to make any charitable or other
capital contribution outside the ordinary course of business; and

         (o) There has not been any other occurrence, event, incident, action,
failure to act or transaction outside the ordinary course of business that would
have a material adverse effect.

         3.12 Liabilities.

         (a) The Company has no liabilities or obligations, other than (A)
liabilities and obligations which are stated or provided for in the Financial
Statements and which continue to exist, (B) liabilities and obligations incurred
by the Company in the ordinary course of business consistent with past practices
subsequent to the date of the Financial Statements which do not and will not
have a material adverse effect (none of which results from, arises out of,
relates to, is in the nature of, or was caused by any breach of contract, breach
of warranty, tort, infringement, or violation of Law).

         (b) Except as set forth in the Disclosure Schedule, since inception,
the Company has not:

                           (i) subjected to encumbrance, or agreed to do so to
any of its assets, tangible or intangible other than purchase money liens in the
ordinary course of business on equipment used in the conduct of business and
incurred to finance the purchase price of the equipment involved and which do
not cover any other asset of the Company;

                           (ii) except as otherwise contemplated hereby, engaged
in any transactions affecting its business or properties not in the ordinary
course of business consistent with past practice or suffered any extraordinary
losses or waived any rights of substantial value except in the ordinary course
of business; or

                                       8
<PAGE>

                           (iii) other than in the ordinary course of business
consistent with past practice, granted or agreed to grant, or paid or agreed to
pay any increase in the rate of wages, salaries, bonuses or other remuneration
of any officer, director or consultant of the Company or any increase of 5% or
more in the rate of wages, salaries, bonuses or other remuneration of any
non-officer/director or employee or become a party to any employment contract or
arrangement with any of its directors, officers, consultants or employees or
become a party to any contract or arrangement with any director, officer,
consultant or employee providing for bonuses, profit sharing payments, severance
pay or retirement benefits, other than as set forth in any Exhibit or Schedule
hereto.

         3.13 ERISA Compliance.

                  (a) The Disclosure Schedule contains a list of each pension,
profit sharing, thrift or other retirement plan, employee stock ownership plan,
deferred compensation, stock option, stock purchase, performance share, bonus or
other incentive plan, severance plan, health, group insurance or other welfare
plan, or other similar plan, agreement, policy or understanding, including
without limitation, any "employee benefit plan" within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974 ("ERISA"), under
which the Company or any ERISA Affiliate has any current or future obligation or
liability or under which any employee of the Company or any ERISA Affiliate has
any current or future right to benefits (each such plan, agreement, policy or
understanding being hereinafter referred to individually as a "Plan"). The
Company has delivered to Purchaser true and complete copies of (A) each Plan,
(B) the summary plan description, if any, for each Plan, (C) the most recent
Internal Revenue Service determination letter with respect to each Plan, if
applicable, (D) the latest annual report (Form 5500 or 5500-C) for the past
three (3) years, if any, which has been filed with the Internal Revenue Service
for each Plan, and (E) copies of any related materials that have been furnished
to participants or beneficiaries of each Plan or to any Governmental Body.

                  (b) Each Plan is in compliance in all material respects with
the provisions of ERISA, the Code and all other applicable federal and state
laws and the rules and regulations promulgated thereunder interpreting or
applying these laws and each Plan (and related trust or funding vehicle, if any)
has at all times been administered and maintained in accordance with its terms
and applicable Laws, including, without limitation, the filing of all applicable
reports.

                  (c) Each Plan shall be terminated at or prior to the Closing.

         3.14 Insurance. The Disclosure Schedule includes a true and correct
list of all policies or binders of insurance of the Company in force, specifying
the insurer, policy number (or covering note number with respect to binders) and
amount thereof and describing each pending claim thereunder. Such policies are
in full force and effect. The Company is not in default with respect to any
provisions contained in any such policy or binder, nor has it failed to give any
notice or present any claim under any such policy or binder in due and timely
fashion. There are no outstanding unpaid claims under any such policy or binder,
or claims for worker's compensation. The Company has not received notice of
cancellation or non-renewal of any such policy or binder. The Company has never
been, and is not now, the subject of any claim relating to damage or injury in
excess of the Company's then-current product liability policy limits or which
has been disclaimed by the Company's insurer. Such insurance will lapse on the
Closing Date.

         3.15 Compliance with Law. To the best of its knowledge, the Company has
complied with, and is not in violation of any provision of laws or regulations
of federal, state or local government authorities and agencies. There are no
pending or threatened proceedings against the Company by any federal, state or
local government, or any department, board, agency or other body thereof.

         3.16 Consents. The Disclosure Schedule lists all consents ("Consents")
of third parties required to be obtained as a result of the change of control of
the Company hereby.

                                       9
<PAGE>

         3.17 Agreements. Except as set forth in the Disclosure Schedule, the
Company is not a party to any material agreement, loan, credit, lease, sublease,
franchise, license, contract, commitment or instrument or subject to any
corporate restriction. The Disclosure Schedule identifies every loan or credit
agreement, and every fully or partially executory agreement or purchase order
pursuant to which the Company is obligated to deliver goods or perform services,
pay for goods, services or other property, or repay any loan, including, without
limitation, any agreement with present or former officers, directors,
consultants, agents, brokers, vendors, customers and/or dealers of any nature.
True, correct and complete copies of all such agreements have been delivered to
Purchaser. Neither the Company nor any other party is in default under any such
agreement, loan, credit, lease, sublease, franchise, license, contract,
commitment, instrument or restriction. No such instrument requires the consent
of any other party thereto in order to consummate the sales of the Shares
hereby.

         3.18 Intellectual Property. The Disclosure Schedule sets forth a true,
correct and complete list and description of all registered Intellectual
Property and applications therefore owned by the Company (the "Intellectual
Property"). The Intellectual Property constitutes all Intellectual Property used
in or necessary for the conduct of the Company's business as heretofore
conducted. The Company is the sole owner of, and has the exclusive right to use,
free and clear of any payment, restriction or encumbrance, the Intellectual
Property. No claims have been asserted by any person or entity that challenge
the Company's exclusive rights in the Intellectual Property. The Intellectual
Property does not infringe on, misappropriate, or otherwise violate a valid and
enforceable intellectual property right of any other person or entity.

                                    ARTICLE 4
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Unless specifically stated otherwise, Purchaser represents and warrants
that the following are true and correct as of the date hereof and will be true
and correct through the Closing Date as if made on that date:

         4.1 Due Organization. The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
(a) with full power and authority to own, lease, use, and operate its properties
and to carry on its business as and where now owned, leased, used, operated and
conducted. The Purchaser has no subsidiaries. The Purchaser is not qualified to
conduct business in any jurisdiction other than the State of Delaware, and (b)
all actions taken by the current directors and stockholders of the Purchaser
have been valid and in accordance with the laws of the State of Delaware and all
actions taken by the Purchaser have been duly authorized by the current
directors and stockholders of the Purchaser as appropriate.

         4.2 (a) Purchaser Authority. The Purchaser has all requisite corporate
power and authority to enter into and perform this Agreement and to consummate
the transactions contemplated herein.

         (b) Duly Authorized. The execution, delivery and performance by the
Purchaser of this Agreement have been duly and validly authorized and no further
consent or authorization of the Purchaser, its board of Directors or is
stockholders is required.

         (c) Valid Execution. This Agreement has been duly executed and
delivered by the Purchaser.

                                       10
<PAGE>

         (d) Binding Agreement. This Agreement constitutes, and upon execution
and delivery thereof by the Purchaser, will constitute, a valid and binding
agreement of the Purchaser, enforceable against the Purchaser in accordance with
its terms, except as may be limited by applicable bankruptcy, insolvency or
similar laws affecting creditor's rights generally or the availability of
equitable remedies.

         (e) No Violation of Corporate Documents or Agreements. The execution
and delivery of this Agreement by the Purchaser and the performance by the
parties hereto of their obligations hereunder will not cause, constitute, or
conflict with or result in (i) any breach or violation, or give rise to a right
of termination, cancellation or acceleration of any obligation or to loss of a
material benefit under, or to increased, additional, accelerated or guaranteed
rights or entitlements of any person under any of the provisions of, or
constitute a default under, any license, indenture, mortgage, charter,
instrument, articles of incorporation, bylaw, judgment, order, decision, writ,
injunction, or decree or other agreement or instrument or proceeding to which
the Purchaser or its stockholders are a party, or by which they may be bound,
nor will any consents or authorizations of any party other than by those hereto
required, (ii) an event that would cause the Purchaser to be liable to any
party, or (iii) an event that would result in the creation or imposition or any
lien, charge or encumbrance on any asset of the Purchaser or on the securities
of the Purchaser to be acquired by the Purchaser.

         4.3 Authorized Capital, No Preemptive Rights, No Liens; Anti-Dilution.
As of the date hereof, the authorized capital of the Purchaser is 200,000,000
shares of Common Stock, with par value of $.0001, of which there are 8,742,842
shares issued and outstanding and 50,000,000 shares of Preferred Stock $.0001
par value. There are no shares of Preferred Stock issued and outstanding. All of
the shares of capital stock are duly authorized, validly issued, fully paid and
non-assessable. No shares of capital stock of the Purchaser are subject to
preemptive rights or similar rights of the stockholders of the Purchaser or any
liens or encumbrances imposed through the actions or failure to act of the
Purchaser, or otherwise. As of the date hereof (i) there are no outstanding
options, warrants, convertible securities, scrip, rights to subscribe for, puts,
calls, rights of first refusal, tag-along agreements, nor any other agreements,
understandings, claims or other commitments or rights of any character
whatsoever relating to, or securities or rights convertible into or exchangeable
for any shares of capital stock of the Purchaser, or arrangements by which the
Purchaser is or may become bound to issue additional shares of capital stock of
the Purchaser, and (ii) there are no agreements or arrangements under which the
Purchaser is obligated to register the sale of any of its securities under the
Securities Act of 1933, and (iii) there are no anti-dilution or price adjustment
provisions contained in any security issued by the Purchaser (or in the
Purchaser's articles of incorporation or by-laws or in any agreement providing
rights to security holders) that will be triggered by the transactions
contemplated by this Agreement.

         4.4 No Governmental Action Required. The execution and delivery by the
Purchaser of this Agreement does not and will not, and the consummation of the
transactions contemplated hereby will not, require any action by or in respect
of, or filing with, any governmental body, agency or governmental official.

         4.5 Compliance with Applicable Law and Corporate Documents. The
execution and delivery by the Purchaser of this Agreement and the performance by
the parties hereto of the transactions contemplated hereby does not and will not
contravene or constitute a default under or violation of (i) any provision of
applicable law or regulation, including any environmental law, (ii) the
Purchaser's articles of incorporation or bylaws, or (iii) any agreement,
judgment, injunction, order, decree or other instrument binding upon the
Purchaser or any its assets, or result in the creation or imposition of any lien
on any asset of the Purchaser. To the best of its knowledge, the Purchaser is in
compliance with and conforms to all statutes, laws, ordinances, rules,
regulations, orders, restrictions and all other legal requirements of any
domestic or foreign government or any instrumentality thereof having
jurisdiction over the conduct of its businesses or the ownership of its
properties.

                                       11
<PAGE>

         4.6 Financial Statements. (a) The Purchaser is current in its required
SEC Filings under the Exchange Act of 1934, which filings contain divers
financial statements ("Financial Statements"). The Financial Statements fairly
present the financial condition of the Purchaser at the dates indicated and its
results of their operations and cash flows for the periods then ended and,
except as indicated therein, reflect all claims against, debts and liabilities
of the Purchaser, fixed or contingent, and of whatever nature. (b) Since March
31, 2004, there has been no material adverse change in the assets or
liabilities, or in the business or condition, financial or otherwise, or in the
results of operations or prospects, of the Purchaser, whether as a result of any
legislative or regulatory change, revocation of any license or rights to do
business, fire, explosion, accident, casualty, labor trouble, flood, drought,
riot, storm, condemnation, act of God, public force or otherwise and no material
adverse change in the assets or liabilities, or in the business or condition,
financial or otherwise, or in the results of operation or prospects, of the
Purchaser except in the ordinary course of business. (c) Since the Balance Sheet
Date, the Purchaser has not suffered any damage, destruction or loss of physical
property (whether or not covered by insurance) affecting its condition
(financial or otherwise) or operations (present or prospective), nor has the
Purchaser issued, sold or otherwise disposed of, or agreed to issue, sell or
otherwise dispose of, any capital stock or any other security of the Purchaser
and has not granted or agreed to grant any option, warrant or other right to
subscribe for or to purchase any capital stock or any other security of the
Purchaser or has incurred or agreed to incur any indebtedness for borrowed
money.

         4.7 No Litigation. The Purchaser is not a party to any suit, action,
arbitration, or legal, administrative, or other proceeding, or pending or
threatened governmental investigation. The Purchaser is not subject to or in
default with respect to any order, writ, injunction, or decree of any federal,
state, local, or foreign court, department, agency, or instrumentality.

         4.8 No Taxes. With the exception of accrued taxes to be prorated in
accordance with Section 1.6, the Purchaser is not, and will not become with
respect to any periods ending on or prior to the Closing Date, liable for any
income, sales, withholding, franchise, excise, license, real or personal
property taxes (a "Tax") to any foreign, United States federal, state or local
governmental agencies whatsoever. All United States federal, state, county,
municipality local or foreign income Tax returns and all other material Tax
returns (including information returns) that are required, or have been
required, to be filed by or on behalf of the Purchaser have been or will be
filed as of the Closing Date and all Taxes due pursuant to such returns or
pursuant to any assessment received by the Purchaser have been or will be paid
as of the Closing Date. The charges, accruals and reserves on the books of the
Purchaser in respect of taxes or other governmental charges have been
established in accordance with the tax method of accounting. All returns that
have been filed relating to Tax are true and accurate in all material respects.
No audit, action, suit, proceeding or other examination regarding taxes for
which the Purchaser may have any liability is currently pending against or with
respect to the Purchaser and neither Shareholder(s) nor the Purchaser has
received any notice (formally or informally) of any audit, suit, proceeding or
other examination. No material adjustment relating to any Tax returns, no
closing or similar agreement have been entered into or issued or have been
proposed (formally or informally) by any tax authority (insofar as such action
relate to activities or income of or could result in liability of the Purchaser
for any Tax) and no basis exists for any such actions. The Purchaser has not
changed any election, adopted or changed any accounting method or period, filed
any amended return for any Tax, settled any claim or assessment of any Tax, or
surrendered any right to claim any refund of any Tax, or consented to any
extension or waiver of the statute of limitations for any Tax. The Purchaser has
not had an "ownership change" as that term is defined in Section 382 of the
Internal Revenue Code of 1986, as amended and in effect.

                                       12
<PAGE>

         4.9 Conduct of the Business. From March 31, 2004 until the Closing
Date:

         (a) The Purchaser has continued to be operated in the usual and
ordinary manner in which its business has been conducted in the past and during
such period. The Purchaser has not made any expenditures or entered into any
commitments which, when compared to past operations of its business, are unusual
or extraordinary or outside the scope of the normal course of routine
operations;

         (b) The Purchaser has kept in a normal state of repair and operating
efficiency all tangible personal property used in the operation of its business;

         (c) The Purchaser has used its best efforts to maintain the good will
associated with its business, and the existing business relationships with its
agents, customers, lessors, key employees, suppliers and other persons having
relations with it;

         (d) The Purchaser has not entered into any contract, agreement or
action, or relinquished or released any rights or privileges under any contracts
or agreements, the performance, violation, relinquishment or release of which
could, on the date on which such contract or agreement was entered into, or such
rights or privileges were relinquished or released, be reasonably foreseen to
have a material adverse effect;

         (e) The Purchaser has not made, or agreed to make, any acquisition of
stock or assets of, or made loans to, any person not in the ordinary course of
business;

         (f) The Purchaser has not sold or disposed of any assets or created or
permitted to exist any encumbrance on its assets except in the ordinary course
of business and which could not, on the date of such sale, disposition, creation
or permission, be reasonably foreseen to have a material adverse effect or (y)
as otherwise permitted by this Agreement;

         (g) The Purchaser has kept true, complete and correct books of records
and accounts with respect to its business, in which entries will be made of all
transactions on a basis consistent with past practices and in accordance with
the tax method of accounting consistently applied by the Purchaser;

         (h) The Purchaser has paid current liabilities as and when they became
due and has paid or incurred no fees and expenses not in the ordinary course of
its business;

         (i) There has been no declaration, setting aside or payment of any
dividend or other distribution in respect of any Shares or any other securities
of the Purchaser (whether in cash or in kind);

         (j) The Purchaser has not redeemed, repurchased, or otherwise acquired
any of its securities or entered into any Agreement to do so;

         (k) The Purchaser has not made any sale or pledge of accounts
receivable;

                                       13
<PAGE>

         (l) Except for normal annual increases resulting from the application
of existing formulae under existing plans, agreements or policies relating to
non-officer/director, employee compensation, and except as set forth in this
Agreement and in the Disclosure Schedule, there has not been any material
increase in the rate of compensation payable or to become payable to employees
in the aggregate, or any increase in the amounts paid or payable to the
Purchaser's officers or directors, or payable to such officers, directors or
employees in the aggregate under any bonus, insurance, pension or other benefit
plan, or any arrangements therefore made for or with any of said officers or
employees;

         (m) The Purchaser has not made any loan to, or entered into any other
transaction with, any of its directors, officers, and employees;

         (n) The Purchaser has not made or pledged to make any charitable or
other capital contribution outside the ordinary course of business; and

         (o) There has not been any other occurrence, event, incident, action,
failure to act or transaction outside the ordinary course of business that would
have a material adverse effect.

         4.10 Liabilities: The Purchaser has no liabilities or obligations,
other than (A) liabilities and obligations which are stated or provided for in
the Financial Statements and which continue to exist, (B) liabilities and
obligations incurred by the Purchaser in the ordinary course of business
consistent with past practices subsequent to the date of the Financial
Statements which do not and will not have a material adverse effect (none of
which results from, arises out of, relates to, is in the nature of, or was
caused by any breach of contract, breach of warranty, tort, infringement, or
violation of Law) and which are set forth on the Purchaser's Disclosure
Statement

         4.11 Compliance with Law. To the best of its knowledge, the Purchaser
has complied with, and is not in violation of any provision of laws or
regulations of federal, state or local government authorities and agencies.
There are no pending or threatened proceedings against the Purchaser by any
federal, state or local government, or any department, board, agency or other
body thereof.

         4.12 Consents. The Disclosure Schedule lists all consents ("Consents")
of third parties required to be obtained as a result of the change of control of
the Purchaser hereby.

         4.13 Agreements. Except as set forth in the Disclosure Schedule, the
Purchaser is not a party to any material agreement, loan, credit, lease,
sublease, franchise, license, contract, commitment or instrument or subject to
any corporate restriction. The Disclosure Schedule identifies every loan or
credit agreement, and every fully or partially executory agreement or purchase
order pursuant to which the Purchaser is obligated to deliver goods or perform
services, pay for goods, services or other property, or repay any loan,
including, without limitation, any agreement with present or former officers,
directors, consultants, agents, brokers, vendors, customers and/or dealers of
any nature. True, correct and complete copies of all such agreements have been
delivered to Purchaser. Neither the Purchaser nor any other party is in default
under any such agreement, loan, credit, lease, sublease, franchise, license, and
contract

         4.14 Investment Intent. Purchaser is acquiring the Shares for its own
account for investment and not with a view to, or for sale or other disposition
in connection with, any distribution of all or any part thereof.

         4.15 Restricted Securities. Purchaser understands that the Shares have
not been registered pursuant to the Securities Act or any applicable state
securities laws, that the Shares will be characterized as "restricted
securities" under federal securities laws, and that under such laws and
applicable regulations the Shares cannot be sold or otherwise disposed of
without registration under the Securities Act or an exemption therefrom.
applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally or

                                       14
<PAGE>

                                    ARTICLE 5
                            COVENANTS OF THE PARTIES

         5.1 General. In case at any time after the Closing Date any further
action is necessary or desirable to carry out the purposes of this Agreement,
each of the Parties will take such further action (including the execution and
delivery of such further instruments and documents) as any other Party may
request, all at the sole cost and expense of the requesting Party (unless the
requesting Party is entitled to indemnification therefore under Article 7
below). The Shareholder(s) agrees that from and after the Closing Date, the
Purchaser will be entitled to review and inspect all documents, books, records
(including Tax records), properties, agreements, field operations, environmental
records and compliance, and financial data of any sort relating to the
Purchaser, and to discuss the Purchaser with its employees, customers and
vendors. If for any reason the Closing Date does not occur, Purchaser agrees to
maintain the confidentiality of and not use for its benefit any information
obtained about the Purchaser in the course of such review.

         5.2 Notices and Consents. The Shareholder(s) will, and will cause the
Purchaser to, give any notices to third parties, and the Shareholder(s) will use
his best efforts, and will cause the Purchaser to use its best efforts, to
obtain any third-party Consent that the Purchaser may request. Each of the
Parties will (and the Shareholder(s) will cause the Purchaser to) give any
notices to, make any filings with, and use its best efforts to obtain any
required authorizations, Consents, and approvals of governmental bodies.

         5.3 Transition. Shareholder(s) will not take any action that is
designed or intended to have the effect of discouraging any lessor, licensor,
customer, supplier, or other business associate of the Purchaser from
maintaining the same business relationships with the Purchaser after the Closing
as it maintained with the Purchaser prior to the Closing. The Shareholder(s)
will refer all customer inquiries relating to the business of the Purchaser to
the Purchaser from and after the Closing.

                                    ARTICLE 6
                                 INDEMNIFICATION

         6.1 Purchaser Claims.

         (a) Each Shareholder shall indemnify and hold harmless Purchaser, its
successors and assigns, against, and in respect of:

                           (i) Any and all damages, losses, liabilities, costs,
and expenses incurred or suffered by Purchaser that result from, relate to, or
arise out of:

                                    (A) Any failure by Shareholder(s) to carry
out any covenant or agreement contained in this Agreement;

                                    (B) Any material misrepresentation or breach
of warranty by Shareholder(s) contained in this Agreement, the Disclosure
Schedule, or any certificate, furnished to Purchaser by Shareholder(s) pursuant
hereto; or

                                       15
<PAGE>

                                    (C) Any claim by any Person for any
brokerage or finder's fee or commission in respect of the transactions
contemplated hereby as a result of Shareholder(s)'s dealings, agreement, or
arrangement with such Person.

                           (ii) Any and all actions, suits, claims, proceedings,
investigations, demands, assessments, audits, fines, judgments, costs, and other
expenses (including, without limitation, reasonable legal fees and expenses)
incident to any of the foregoing including all such expenses reasonably incurred
in mitigating any damages resulting to Purchaser from any matter set forth in
subsection (i) above.

                  (b) The amount of any liability of Shareholder(s) under this
Section 6.1 shall be computed net of any tax benefit to Purchaser from the
matter giving rise to the claim for indemnification hereunder and net of any
insurance proceeds received by Purchaser with respect to the matter out of which
such liability arose.

                  (c) The representations and warranties of Shareholder(s)
contained in this Agreement, the Disclosure Schedule, or any certificate
delivered by or on behalf of Shareholder(s) pursuant to this Agreement or in
connection with the transactions contemplated herein shall survive the
consummation of the transactions contemplated herein and shall continue in full
force and effect for the periods specified below ("Survival Period"):

                           (i) The representations and warranties contained in
Sections 3.8 and 3.13 shall survive until the expiration of any applicable
statutes of limitation provided by law; and(ii) All other representations and
warranties of Shareholder(s) shall be of no further force and effect after
eighteen (18) months from the Closing Date.

         Anything to the contrary notwithstanding, the Survival period shall be
extended automatically to include any time period necessary to resolve a written
claim for indemnification which was made in reasonable detail before expiration
of the Survival Period but not resolved prior to its expiration, and any such
extension shall apply only as to the claims so asserted and not so resolved
within the Survival Period. Liability for any such item shall continue until
such claim shall have been finally settled, decided, or adjudicated.

                  (d) Purchaser shall provide written notice to Shareholder(s)
of any claim for indemnification under this Article as soon as practicable;
provided, however, that failure to provide such notice on a timely basis shall
not bar Purchaser's ability to assert any such claim except to the extent that
Shareholder(s) is actually prejudiced thereby, provided that such notice is
received by Shareholder(s) during the applicable Survival Period. Purchaser
shall make commercially reasonable efforts to mitigate any damages, expenses,
etc. resulting from any matter giving rise to liability of Shareholder(s) under
this Article.

         6.2 Defense of Third-Party Claims. With respect to any claim by
Purchaser under Section 6.1, relating to a third party claim or demand,
Purchaser shall provide Shareholder(s) with prompt written notice thereof and
Shareholder(s) may defend, in good faith and at their expense, by legal counsel
chosen by them and reasonably acceptable to Purchaser any such claim or demand,
and Purchaser, at its expense, shall have the right to participate in the
defense of any such third party claim. So long as Shareholder(s) is defending in
good faith any such third party claim, Purchaser shall not settle or compromise
such third party claim. In any event Purchaser shall cooperate in the settlement
or compromise of, or defense against, any such asserted claim.

                                       16
<PAGE>

         6.3 Shareholder(s) Claims. Purchaser shall indemnify and hold harmless
Shareholder(s) against, and in respect of, any and all damages, claims, losses,
liabilities, and expenses, including without limitation, legal, accounting and
other expenses, which may arise out of: (a) any material breach or violation by
Purchaser of any covenant set forth herein or any failure to fulfill any
obligation set forth herein; (b) any material breach of any of the
representations or warranties made in this Agreement by Purchaser; or (c) any
claim by any Person for any brokerage or finder's fee or commission in respect
of the transactions contemplated hereby as a result of Purchaser's dealings,
agreement, or arrangement with such Person.

         6.4 Settlement of Disputes.

            (a) Arbitration. All disputes with respect to any claim for
indemnification under this Article VII and all other disputes and controversies
of every kind and nature between the parties hereto arising out of or in
connection with this Agreement shall be submitted to arbitration pursuant to the
following procedures:

                           (i) After a dispute or controversy arises, either
party may, in a written notice delivered to the other party, demand such
arbitration. Such notice shall include a statement of the matter in controversy;

                           (ii) Within 30 days after receipt of such demand, an
arbitrator shall be chosen by the American Arbitration Association ("AAA");

                           (iii) The arbitration hearing shall be held within 30
days of the appointment of the arbitrator in Boca Raton, Florida, at a location
designated by the arbitrator. The Commercial Arbitration Rules of the AAA shall
be used and the substantive laws of the State of Florida (excluding conflict of
laws provisions) shall apply;

                           (iv) An award rendered by the arbitrator appointed
pursuant to this Agreement shall be final and binding on all parties to the
proceeding, shall deal with the question of costs of the arbitration and all
related matters, shall not award punitive damages, and judgment on such award
may be entered by either party in a court of competent jurisdiction; and

                           (v) Except as set forth in subsection (b) below, the
parties stipulate that the provisions of this Section 6.4 shall be a complete
defense to any suit, action or proceeding instituted in any federal, state, or
local court or before any administrative tribunal with respect to any
controversy or dispute arising out of this Agreement. The arbitration provisions
hereof shall, with respect to such controversy or dispute, survive the
termination or expiration of this Agreement.

                  (b) Emergency Relief. Notwithstanding anything in this Section
6.4 to the contrary, either party may seek from a court any provisional remedy
that may be necessary to protect any rights or property of such party pending
the establishment of the arbitral tribunal or its determination of the merits of
the controversy.

                                    ARTICLE 7
            CLOSING, DELIVERY OF DOCUMENTS AND POST CLOSING COVENANTS

         7.1 Closing. The Closing referred to in Section 1.2 hereof shall occur
as a single integrated transaction, as follows.

         (a) Delivery by Shareholder(s). Shareholder(s) shall deliver to
Purchaser:

                  (i) The Shares;

                                       17
<PAGE>

                  (ii) Copies of resolutions by the Board of Directors of the
Purchaser approving the terms of this Agreement and the execution of the
Agreement by the Purchaser;

                  (iii) copies of all books, records and documents relating to
the Purchaser, including the corporate records and stock records of the
Purchaser;

                  (iv) resignations as directors and officers;

                  (v) any other such instruments, documents and certificates as
are required to be delivered by Shareholder(s) or its representatives pursuant
to the provisions of this Agreement; and

                  (vi) the Consents.

         (b) Delivery by Purchaser. Purchaser shall deliver to Shareholder(s):

                  (i) the Purchase Price Shares;

                  (ii) copies of resolutions of the Board of Directors of
Purchaser approving the terms of the Agreement and the execution of this
Agreement by the Purchaser.

                                    ARTICLE 8
                                  MISCELLANEOUS

         8.1 Entire Agreement. This Agreement sets forth the entire agreement
and understanding of the parties hereto with respect to the transactions
contemplated hereby, and supersedes all prior agreements, arrangements and
understanding related to the subject matter hereof. No understanding, promise,
inducement, statement of intention, representation, warranty, covenant or
condition, written or oral, express or implied, whether by statute or otherwise,
has been made by any party hereto which is not embodied in this Agreement or the
written statement, certificates, or other documents delivered pursuant hereto or
in connection with the transactions contemplated hereby, and no party hereto
shall be bound by or liable for any alleged understanding, promise, inducement,
statement, representation, warranty, covenant or condition not set forth.

         8.2 Notices. Any notice or communications hereunder must be in writing
and given by depositing same in the United States mail addressed to the party to
be notified, postage prepaid and registered or certified mail with return
receipt requested or by delivering same in person. Such notices shall be deemed
to have been received on the date on which it is hand delivered or on the third
business day following the date on which it is to be mailed. For purpose of
giving notice, the addresses of the parties shall be:

            If to Purchaser to:   Martin Cohen
                                  5030 Champion Boulevard, Suite G6-237
                                  Boca Raton, FL 33496
                                  Telephone No.: (561) 241-4713

            If to Shareholder(s): Michael Alexander

            If to Company:

                                       18
<PAGE>

         8.3 Governing Law. This Agreement shall be governed in all respects,
including validity, construction, interpretation and effect, by the laws of the
State of Florida (without regard to principles of conflicts of law).

         8.4 Consent to Jurisdiction. Each party irrevocably submits to the
exclusive jurisdiction of the appropriate state or federal court in the State of
Florida for the purposes of any suit, action or other proceeding arising out of
this Agreement or any transaction contemplated hereby or thereby. Each party
agrees to commence any such action, suit or proceeding in Ft. Lauderdale,
Florida. The parties agree that any service of process to be made hereunder may
be made by certified mail, return receipt requested, addressed to the party at
the address appearing in Section 8.2. Such service shall be deemed to be
completed when mailed and sent and received by Telecopier. Shareholder(s) and
Purchaser each waives any objection based on forum non-conveniens. Nothing in
this paragraph shall affect the right of Shareholder(s) or Purchaser to serve
legal process in any other manner permitted by law.

         8.5 Counterparts. This Agreement may be executed by the parties hereto
in separate counterparts each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

         8.6 Waivers and Amendments; Non-Contractual Remedies; Preservation of
Remedies. This Agreement may be amended, superseded, canceled, renewed, or
extended, and the terms hereof may be waived, only by a written instrument
signed by authorized representatives of the parties or, in the case of a waiver,
by an authorized representative of the party waiving compliance. No such written
instrument shall be effective unless it expressly recites that it is intended to
amend, supersede, cancel, renew or extend this Agreement or to waive compliance
with one or more of the terms hereof, as the case may be. No delay on the part
of any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any waiver on the part of any party of any such
right, power or privilege, or any single or partial exercise of any such right,
power of privilege, preclude any further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein provided are
cumulative and are not exclusive of any rights or remedies that any party may
otherwise have at law or in equity. The rights and remedies of any party based
upon, arising out of or otherwise in respect of any inaccuracy in or breach of
any representation, warranty, covenant or agreement contained in this Agreement
shall in no way be limited by the fact that the act, omission, occurrence or
other state of facts upon which any claim of any such inaccuracy or breach is
based may also be the subject of any other representation, warranty, covenant or
agreement contained in this Agreement (or in any other agreement between the
parties) as to which there is no inaccuracy or breach.

         8.7 Binding Effect; No Assignment, No Third-Party Rights. This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. This Agreement is not
assignable without the prior written consent of each of the parties hereto or by
operation of law. This Agreement is for the sole benefit of the parties hereto
and their permitted assigns, and nothing herein, expressed or implied, shall
give or be construed to give to any person, including any union or any employee
or former employee of Shareholder(s), any legal or equitable rights, benefits or
remedies of any nature whatsoever, including any rights of employment for any
specified period, under or by reason of this Agreement.

         8.8 Further Assurances. Each party shall, at the request of the other
party, at any time and from time to time following the Closing Date promptly
execute and deliver, or cause to be executed and delivered, to such requesting
party all such further instruments and take all such further action as may be
reasonably necessary or appropriate to carry out the provisions and intents of
this Agreement and of the instruments delivered pursuant to this Agreement.

                                       19
<PAGE>

         8.9 Severability of Provisions. If any provision or any portion of any
provision of this Agreement or the application of any such provision or any
portion thereof to any person or circumstance, shall be held invalid or
unenforceable, the remaining portion of such provision and the remaining
provisions of the Agreement, or the application of such provision or portion of
such provision is held invalid or unenforceable to person or circumstances other
than those as to which it is held invalid or unenforceable, shall not be
affected thereby and such provision or portion of any provision as shall have
been held invalid or unenforceable shall be deemed limited or modified to the
extent necessary to make it valid and enforceable, in no event shall this
Agreement be rendered void or unenforceable.

         8.10 Exhibits and Schedules. All exhibits annexed hereto, and all
schedules referred to herein, are hereby incorporated in and made a part of this
Agreement as if set forth herein. Any matter disclosed on any schedule referred
to herein shall be deemed also to have been disclosed on any other applicable
schedule referred to herein.

         8.11 Captions. All section titles or captions contained in this
Agreement or in any schedule or exhibit annexed hereto or referred to herein,
and the table of contents to this Agreement, are for convenience only, shall not
be deemed a part of this Agreement and shall not affect the meaning or
interpretation of this Agreement. All references herein to sections shall be
deemed references to such parts of this Agreement, unless the context shall
otherwise require.

         8.12 Expenses. Except as otherwise expressly provided in this
Agreement, whether or not the Closing Date occurs, each party hereto shall pay
its own expenses incidental to the preparation of this Agreement, the carrying
out of the provisions hereof and the consummation of the transactions
contemplated. For the avoidance of doubt, any fees and expenses incurred by the
Shareholder(s) or the Purchaser in connection with entering into this Agreement
and the transactions contemplated hereby shall be paid by the Shareholder(s) and
not the Purchaser.

         8.13 Public Announcements. The parties agree to consult with each other
before issuing any press release or making any public statement or completing
any public filing with respect to this Agreement or the transactions
contemplated hereby and, except as may be required by applicable law or any
listing agreement with any national securities exchange or quotation system,
will not issue any such press release or make any such public statement prior to
consultation.

         8.14 Non-confidentiality. Notwithstanding Section 8.13, the Purchaser,
Shareholder(s) and Purchaser, and each employee, representative or other agent
of the same (collectively the "Covered Parties"), may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of
the transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to a Covered Party relating to such tax treatment
and tax structure.

         8.15 Disclosure Schedule. Shareholder(s) and the Purchaser shall
prepare and deliver the Disclosure Schedule upon execution of this Agreement,
and shall amend it as necessary to keep current the information therein. The
Disclosure Schedule shall make reference to any Section of this Agreement and
contain all information necessary to make such disclosure accurate and not
misleading.

                            [SIGNATURE PAGE FOLLOWS]

                                       20
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement,
as of the date first written herein above.

                           The Furia Organization, Inc

                                  By: /s/ Martin Cohen
                                     ------------------------------------------
                                     Martin Cohen, CEO/President

                                  Front Haul, Inc.

                                  By: /s/ Michael Alexander
                                     ------------------------------------------
                                     Michael Alexander, Chief Executive Officer

                                  Shareholders:

                                  /s/ Michael Alexander
                                 --------------------------------
                                  Michael Alexander

                                  /s/ Michael Holbrook
                                 --------------------------------
                                  Michael Holbrook

                                       21

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