Document:

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                                                                    EXHIBIT 10.2

                               EXCHANGE AGREEMENT

      EXCHANGE AGREEMENT ("AGREEMENT") dated as of this 1st day of October, 2002
by and among HIGOAL DEVELOPMENT LIMITED, a Cayman Islands company ("HDL"), the
Shareholders of HDL identified on Schedule I hereto (the "HDL Shareholders"),
Wang Kuo An ("Wang"), as agent for the HDL Shareholders, and KID CASTLE
EDUCATIONAL CORPORATION, a Florida corporation ("KCEC").

                                    RECITALS

      WHEREAS, the HDL Shareholders hold 11,880,000 shares of common stock of
HDL (the "HDL SHARES"), which constitute all of the issued and outstanding
shares of HDL.

      WHEREAS, the HDL Shareholders and KCEC desire to effect the exchange of
the HDL Shares for 11,880,000 shares of common stock of KCEC (the "KCEC SHARES")
upon the terms and subject to the conditions set forth herein.

      NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants, representations, warranties and agreements hereinafter set forth, the
parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

      When used herein, the following terms shall have the meanings set forth
below:

      "AFFILIATE" means, with respect to any given Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person. The term "control"
(including, with correlative meaning, the terms "controlled by" and "under
common control with"), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise.

      "ASSETS" means all properties, assets, Contracts, business, goodwill and
rights of a Person as a going concern, of every kind, nature, character and
description, tangible and intangible, wherever located and whether or not
carried or reflected on the books and records of a Person on the Closing Date.

      "CONTRACT" means any contract, agreement, lease, license, arrangement,
commitment, sales order, purchase order or any claim or right or any benefit or
obligation arising thereunder or resulting therefrom and currently in effect,
whether oral or written.

      "DOLLARS" and "$" means dollars in lawful currency of the United States of
America.
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      "EMPLOYEE BENEFIT PLAN" means any (i) nonqualified deferred compensation
or retirement plan or arrangement which is an Employee Pension Benefit Plan,
(ii) qualified defined contribution retirement plan or arrangement which is an
Employee Pension Benefit Plan, (iii) qualified defined benefit retirement plan
or arrangement which is an Employee Pension Benefit Plan (including any
Multiemployer Plan), or (iv) Employee Welfare Benefit Plan or material fringe
benefit plan or program.

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

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

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

      "EXCHANGE ACT" shall mean the United States Securities Exchange Act of
1934, as amended.

      "EXPORT CONTROL LAWS" shall mean all laws, now or hereafter in effect, and
in each case as amended or supplemented from time to time, and any judicial or
administrative interpretations thereof, relating to the export or re-export of
commodities and technologies. Export Control Laws include, but are not limited
to, the Export Administration Act of 1979 (24 U.S.C. Sections 2401-2420);
the International Emergency Economic Powers Act (50 U.S.C. Sections
1701-1706); the Trading with the Enemy Act (50 U.S.C. Sections 1 et seq);
the Arms Export Control Act (22 U.S.C. Sections 2778, 2779); and the
International Boycott Provisions of Section 999 of the Code.

      "GAAP" shall mean generally accepted accounting principles in the United
States as of the date of this Agreement consistently applied.

      "INTELLECTUAL PROPERTY" means any and all (i) inventions (whether
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent applications, and patent
disclosures, together with all reissuances, continuations,
continuations-in-part, revisions, extensions, and reexaminations thereof, (ii)
trademarks, service marks, trade dress, logos, trade names, and corporate names,
together with all translations, adaptations, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith, (iii) copyrightable works,
whether or not registered, all copyrights, and all applications, registrations,
and renewals in connection therewith, (iv) mask works and all applications,
registrations, and renewals in connection therewith, (v) trade secrets and
confidential business information (including ideas, research and development,
know-how, formulas, compositions, manufacturing and production processes and
techniques, technical data, designs, drawings, blueprints, sketches,
storyboards, models, engineering drawings, specifications, customer and supplier
lists, pricing and cost information, and business and marketing plans and
proposals), (vi) computer software (including data and related documentation),
(vii) other proprietary rights and Know-how, (viii) copies and tangible
embodiments thereof (in whatever form or medium) and (ix) licenses and
sublicenses granted and obtained with respect thereto, and rights thereunder.

      "KNOW-HOW" means any and all technical knowledge, proprietary rights,
patented or unpatented inventions, trade secrets, analytical methodology,
processes, data and all other information or experience possessed by, as the
case may be, KCEC or HDL, or which KCEC or HDL have the right to use.

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      "LIABILITIES" means any direct or indirect liability, indebtedness, claim,
loss, damage, deficiency, obligation or responsibility, fixed or unfixed, choate
or inchoate, liquidated or unliquidated, secured or unsecured, accrued,
absolute, known or unknown, contingent or otherwise.

      "LIEN" means any mortgage, lien, pledge, charge, security interest,
license, lease, claim, restriction, option, conditional sale or installment
Contract or encumbrance of any kind.

      "PERSON" shall include an individual, a partnership, a corporation, a
limited liability company or a division or business unit thereof, a trust, an
unincorporated organization, a government or any department or agency thereof
and any other entity.

      "SECURITIES ACT" shall mean the United States Securities Act of 1933, as
amended.

                                  ARTICLE II.

                               EXCHANGE OF SHARES

      2.1. DELIVERY OF HDL SHARES. Upon the terms and subject to the conditions
of this Agreement, on the Closing Date, the HDL Shareholders shall sell,
transfer, assign and convey to KCEC, and KCEC shall acquire, the HDL Shares, and
the HDL Shareholders shall deliver to KCEC share certificates representing the
HDL Shares, duly endorsed to KCEC or accompanied by stock powers duly executed
in proper form for transfer.

      2.2. ISSUANCE OF KCEC SHARES. In consideration of and in exchange for the
HDL Shares, KCEC shall, at the Closing, allot and issue to the HDL Shareholders,
and the HDL Shareholders shall acquire, the KCEC Shares, and KCEC shall deliver
to the HDL Shareholders share certificates representing newly issued KCEC
Shares.

      2.3. ESCROW OF SHARES. Prior to the Closing, the HDL Shareholders shall
deliver to Piper Rudnick LLP (the "Escrow Agent") the certificate(s)
representing the HDL Shares and KCEC shall deliver to the Escrow Agent the
certificate(s) representing the KCEC Shares. The Escrow Agent shall release the
certificates representing the KCEC Shares to the HDL Shareholders and the
certificates representing the HDL Shares to KCEC upon Closing.

                                  ARTICLE III.

                                     CLOSING

      3.1. CLOSING. The closing (the "CLOSING") of the transactions contemplated
hereby shall be held at the offices of Piper Rudnick LLP located at 1251 Avenue
of the Americas, New York, New York, at 10:00 a.m., local time, on or before
October 31, 2002 or within five (5) days after the conditions contained in
Articles VII and VIII have been satisfied or waived or at such other place and
time as may be agreed upon by the parties hereto. The time and date of the
Closing is referred to herein as the "CLOSING DATE." At the Closing, in addition
to the exchange of the HDL Shares and the KCEC Shares, the parties hereto shall
deliver such certificates, opinions and other documents as are specified in
Articles VII and VIII.

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      3.2. TRANSFER TAXES. Each of the HDL Shareholders and KCEC, as the case
may be, shall be responsible for any transfer and similar taxes assessed or
payable by each of them in connection with the sale and transfer of the HDL
Shares or issuance of the KCEC Shares, as the case may be, and the transactions
contemplated hereby.

                                  ARTICLE IV.

                         REPRESENTATIONS AND WARRANTIES
                      OF HDL, THE HDL SHAREHOLDERS AND WANG

      HDL, WANG AND the HDL Shareholders, jointly and severally, represent and
warrant to, and agree with, KCEC as follows:

      4.1. ORGANIZATION.

            (a) HDL is a corporation duly organized, validly existing and in
good standing under the laws of the Cayman Islands. HDL has all requisite
corporate power and authority to own, lease and operate its properties and to
carry on its business as now being conducted. HDL is duly qualified to do
business and is in good standing as a foreign corporation in each jurisdiction
in which the property owned, leased or operated by HDL or the nature of the
business conducted by it makes such qualification necessary. HDL has heretofore
made available to KCEC true, accurate and complete copies of HDL's of Memorandum
and Articles of Association as in effect on the date hereof and minutes of all
meetings of the stockholders and directors of HDL held through and including the
date of this Agreement. HDL is not in violation of any of the provisions of its
Memorandum and Articles of Association.

            (b) HDL has full corporate power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.
The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly authorized by the
Board of Directors and, if necessary, the stockholders of HDL and no other
corporate proceedings on the part of HDL are necessary to authorize this
Agreement or to consummate the transactions contemplated hereby. This Agreement
has been duly authorized, executed and delivered by HDL and constitutes the
legal, valid and binding obligations of HDL, enforceable against them in
accordance with its terms.

      4.2. CAPITALIZATION. HDL has authorized capital stock of 160,000,000
shares of Common Stock, par value $0.30 per share, of which 11,880,000 shares
are issued and outstanding as of the date hereof. All issued and outstanding
shares of capital stock of HDL have been duly authorized, validly issued, fully
paid, nonassessable and are free of preemptive rights. There are no other
convertible securities, options, warrants, subscription calls or other rights or
agreements, arrangements or commitments obligating HDL to issue, transfer or
sell any of its securities. None of such issued and outstanding shares is the
subject of any voting trust agreement or other agreement relating to the voting
thereof or restricting in any way the sale or transfer thereof.

      4.3. SHARE OWNERSHIP. The HDL Shareholders have full and valid title and
control of the HDL Shares free and clear of any Lien. None of the HDL Shares are
the subject of any

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voting trust agreement or other agreement relating to the voting thereof or
restricting in any way the sale or transfer thereof except for this Agreement.

      4.4. NO CONFLICT; REQUIRED FILINGS AND CONSENTS.

            (a) The execution and delivery of this Agreement do not, and the
consummation of the transactions contemplated hereby will not, (i) conflict with
or violate any law, regulation, court order, judgment or decree, (ii) violate or
conflict with the Memorandum and Articles of Association of HDL, or (iii) result
in any breach of or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of
termination or cancellation of any Contract, permit, license or franchise to
which HDL is bound or affected, except for conflicts, violations, breaches or
defaults which, in the aggregate, would not have a material adverse effect on
the business, operations, Assets, Liabilities, condition (financial or
otherwise), results of operations or prospects (a "MATERIAL ADVERSE EFFECT") of
HDL.

            (b) The execution, delivery or performance of this Agreement does
not, and the consummation of the transactions contemplated hereby will not,
require any notice, report or other filing with any governmental authority,
domestic or foreign, or require any waiver, consent, approval or authorization
of any Person or any governmental or regulatory authority, domestic or foreign.

      4.5. [Internationally Omitted.]

      4.6. REAL AND PERSONAL PROPERTY. HDL has good and marketable title to, or
valid leasehold or license interests in, all real property or other Assets used
or held for use in the conduct of its business, including, without limitation,
the Assets reflected on its books and records or acquired after the date thereof
(other than those which have been disposed of in the ordinary course of business
since such date), free and clear of any Liens, other than Liens for taxes not
yet due and payable. All of the real property and Assets owned or leased by HDL
are in all material respects in working condition and repair, ordinary wear and
tear excepted.

      4.7. NO UNDISCLOSED LIABILITIES. HDL has had no direct or indirect
Liabilities, whether due or to become due, or arising out of transactions
entered into, or any state of facts existing on the date hereof which would have
a Material Adverse Effect on HDL.

      4.8. ABSENCE OF CERTAIN CHANGES. Since March 9, 2001, there has been no
material adverse change in the condition (financial or otherwise), Assets,
Liabilities, results of operations, business or prospects of HDL, and nothing
has occurred relative to the business or prospects of HDL which would have a
Material Adverse Effect on the future business of HDL.

      4.9. LITIGATION. No material investigation or review by any governmental
entity or regulatory body, foreign or domestic, with respect to HDL is pending
or, to the knowledge of HDL, threatened against HDL, and no governmental entity
or regulatory body has advised HDL of an intention to conduct the same. There is
no claim, action, suit, investigation or proceeding pending or, to the knowledge
of HDL, threatened against or affecting HDL at law or in equity or before any
federal, state, municipal or other governmental entity or regulatory body, or
which challenges the validity of this Agreement or any action taken or to be
taken by HDL pursuant to this Agreement. As of the date hereof, HDL is not
subject to, nor is there in existence, any

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outstanding judgment, award, order, writ, injunction or decree of any court,
governmental entity or regulatory body relating to HDL which would have a
material adverse effect on HDL.

      4.10. CONTRACTS. HDL has previously provided KCEC access to true, correct
and complete copies of all material Contracts to which HDL is a party. As to
such Contracts, (i) there are no existing breaches or defaults by HDL thereunder
or, to the knowledge of HDL, by the other parties to such Contracts; (ii) no
event, act or omission has occurred or, as a result of the consummation of the
transactions contemplated hereby, will occur which (with or without notice,
lapse of time or the happening or occurrence of any other event) would result in
a default by HDL thereunder or give cause for termination thereof, provided that
insofar as the foregoing representation involves the actions or omissions of
parties other than HDL, it shall be limited to the knowledge of HDL; (iii) none
of them will result in any loss to HDL upon completion or performance thereof;
and (iv) none of the parties to Contracts have expressed an indication to HDL of
their intention to cancel, renegotiate or exercise or not exercise any option
under any such Contracts as a result of the consummation of the transactions
contemplated hereby.

      4.11. INTELLECTUAL PROPERTY.

            (a) HDL owns or has the right to use pursuant to license,
sublicense, agreement, or permission all Intellectual Property necessary for the
operation of the business of HDL as proposed to be conducted. HDL has taken all
commercially reasonable action to maintain and protect each item of Intellectual
Property that it owns or uses.

            (b) HDL has not interfered with, infringed upon, misappropriated, or
otherwise come into conflict with any Intellectual Property rights of third
parties, and HDL has not received any charge, complaint, claim, demand, or
notice alleging any such interference, infringement, misappropriation or
violation (including any claim that HDL must license or refrain from using any
Intellectual Property rights of any third Person). To the knowledge of HDL, no
third party has interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any Intellectual Property rights of any of HDL.

      4.12. LICENSES, PERMITS AND CONSENTS; COMPLIANCE WITH APPLICABLE LAW.

            (a) HDL has all licenses and permits which individually or in the
aggregate are material to the conduct of the business of HDL or any of its
employees by reason of such employee's activities on behalf of HDL under
applicable law or by any federal, state, local or foreign governmental entity or
regulatory body for the operation of the business of HDL, and all of such listed
licenses and permits are in full force and effect as of the date hereof. HDL has
not received notice and, to the knowledge of HDL, there is no reason to believe,
that any appropriate authority intends to cancel or terminate any of such
licenses or permits or that valid grounds for such cancellation or termination
currently exist.

            (b) HDL is not in violation or breach of any, and the business and
operations of HDL comply in all material respects and are being conducted in
accordance with, all material governing laws, regulations and ordinances
applicable thereto and HDL is not in material violation of or in material
default under, any judgment, award, order, writ, injunction or decree of any
court, arbitration tribunal, governmental entity or regulatory body.

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      4.13. SECURITIES LAW ACKNOWLEDGMENTS. The HDL Shareholders acknowledge
that the KCEC Shares are, and will be, offered and sold to the HDL Shareholders
in reliance on specific exemptions from the registration requirements of United
States federal and state securities laws. The HDL Shareholders will not sell or
otherwise transfer the KCEC Shares without registration under the Securities Act
or an exemption therefrom, and fully understand and agree that the HDL
Shareholders or any such transferee must bear the economic risk of holding the
KCEC Shares for an indefinite period of time because, among other reasons, the
KCEC Shares have not been registered under the Securities Act or under the
securities laws of certain states and, therefore, cannot be resold, pledged,
assigned or otherwise disposed of unless the securities are subsequently
registered under the Securities Act and under the applicable securities laws of
such states or unless an exemption from such registration is available in the
opinion of counsel for the holder, which counsel and opinion are reasonably
satisfactory to counsel for KCEC. The HDL Shareholders are acquiring the KCEC
Shares for the account of the HDL Shareholders for investment and not with a
view to resale or distribution except in compliance with the Securities Act.

      4.14. REGULATION S EXEMPTION. Each HDL Shareholder understands that the
KCEC Shares are being offered and sold to it in reliance on an exemption from
the registration requirements of United States federal and state securities laws
under Regulation S promulgated pursuant to the Securities Act and that KCEC is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgements and understandings of each HDL Shareholder set
forth herein in order to determine the applicability of such exemptions and the
suitability of each HDL Shareholder to acquire the KCEC Shares. In this regard,
each HDL Shareholder represents, warrants and agrees that:

            (a) Each HDL Shareholder is not a U.S. Person (as defined below) and
is not an affiliate (as defined in Rule 501(b) under the Securities Act) of the
Seller. A "U.S. person" means any one of the following:

            (i) any natural person resident in the United States;

            (ii) any partnership or corporation organized or incorporated under
      the laws of the United States;

            (iii) any estate of which any executor or administrator is a U.S.
      person;

            (iv) any trust of which any trustee is a U.S. person;

            (v) any agency or branch of a foreign entity located in the United
      States;

            (vi) any non-discretionary account or similar account (other than an
      estate or trust) held by a dealer or other fiduciary for the benefit or
      account of a U.S. person;

            (vii) any discretionary account or similar account (other than an
      estate or trust) held by a dealer or other fiduciary organized,
      incorporated or (if an individual) resident in the United States; and

            (viii) any partnership or corporation if:

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                        (1) organized or incorporated under the laws of any
                        foreign jurisdiction; and

                        (2) formed by a U.S. person principally for the purpose
                        of investing in securities not registered under the
                        Securities Act, unless it is organized or incorporated,
                        and owned, by accredited investors (as defined in Rule
                        501(a) under the Securities Act) who are not natural
                        persons, estates or trusts.

            (b) At the time of the origination of contact concerning this
Agreement and the date of the execution and delivery of this Agreement, each HDL
Shareholder was outside of the United States.

            (c) Each HDL Shareholder will not, during the period commencing on
the date of acquisition of the KCEC Shares and ending on the first anniversary
of such date, or such shorter period as may be permitted by Regulation S or
other applicable securities law (the "Restricted Period"), offer, sell, pledge
or otherwise transfer the shares in the United States, or to a U.S. person or
for the account or benefit of a U.S. person, or otherwise in a manner that is
not in compliance with Regulation S.

            (d) Each HDL Shareholder will, after expiration of the Restricted
Period, offer, sell, pledge or otherwise transfer the KCEC Shares only pursuant
to registration under the Securities Act or an available exemption therefrom
and, in accordance with all applicable state and foreign securities laws.

            (e) No HDL Shareholder has engaged in and prior to the expiration of
the Restricted Period will not engage in, any short selling of or any hedging
transaction with respect to the KCEC Shares within the United States, including
without limitation, any put, call or other option transaction, option writing or
equity swap.

            (f) No HDL Shareholder nor any person acting on its behalf has
engaged, nor will, during the Restricted Period, engage in any directed selling
efforts to any U.S. person with respect to the Shares and each HDL Shareholder
and any person acting on its behalf have complied and will comply with the
"offering restrictions" requirements of Regulation S under the Securities Act.

            (g) The transactions contemplated by this Agreement have not been
pre-arranged with a buyer located in the United States or with a U.S. person,
and are not part of a plan or scheme to evade the registration requirements of
the Securities Act.

            (h) No HDL Shareholder nor any person acting on its behalf has
undertaken or carried out any activity for the purpose of, or that could
reasonably be expected to have the effect of, conditioning the market in the
United States, its territories or possessions, for any of the KCEC Shares. Each
HDL Shareholder agrees not to cause any advertisement of the Shares to be
published in any newspaper or periodical or posted in any public place and not
to issue any circular relating to the KCEC Shares, except such advertisements
that include the statements required by Regulation S under the Securities Act,
and only offshore and not in the United States or its territories, and only in
compliance with any local applicable securities laws.

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            (i) Each certificate representing the KCEC Shares shall be endorsed
with the following legends, in addition to any other legend required to be
placed thereon by applicable federal or state securities laws:

                        (A) "THE SHARES ARE BEING OFFERED TO INVESTORS WHO ARE
                        NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
                        SECURITIES ACT OF 1933, AS AMENDED ("THE SECURITIES
                        ACT")) AND WITHOUT REGISTRATION WITH THE UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES
                        ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE
                        SECURITIES ACT."

                        (B) "TRANSFER OF THESE SHARES IS PROHIBITED, EXCEPT IN
                        ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT
                        TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO
                        AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING
                        TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
                        WITH THE SECURITIES ACT."

            (j) Each HDL Shareholder consents to KCEC making a notation on its
records or giving instructions to any transfer agent of KCEC in order to
implement the restrictions on transfer of the Shares set forth in this Section
4.14.

            (k) Each HDL Shareholder agrees that it will not transfer the KCEC
Shares, and KCEC shall not be required to transfer the shares unless the
transferee executes a representation letter substantially in accordance with
Exhibit A hereto.

      4.15. FINDER'S FEE. There is no investment banker, broker, finder or other
intermediary which has been retained by, or is authorized to act on behalf of,
HDL, who might be entitled to any fee or commission from HDL, KCEC or their
Affiliates upon the consummation of the transactions contemplated hereby.

      4.16. ACCURACY OF REPRESENTATIONS. The representations and warranties made
by HDL, the HDL Shareholder and WANG in this Agreement, and in any certificate
or Schedule referenced hereby or attached hereto, do not contain, and will not
contain, any statement which is false or misleading with respect to any material
fact and do not and will not omit to state a material fact required to be stated
herein or therein or necessary in order to make the statements contained herein
or therein not materially false or misleading. There is no material fact or
condition which could have a Material Adverse Effect on HDL which has not been
set forth in this Agreement or described in the Schedules hereto.

                                   ARTICLE V.

                         REPRESENTATIONS AND WARRANTIES
                                     OF KCEC

      KCEC, represents and warrants to, and agrees with, HDL and the HDL
Shareholders as follows:

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      5.1. ORGANIZATION; AUTHORITY.

            (a) KCEC is a corporation duly organized, validly existing and in
good standing under the laws of the State of Florida. KCEC has all requisite
corporate power and authority to own, lease and operate its properties and to
carry on its business as now being conducted. KCEC is duly qualified to do
business and in good standing as a foreign corporation in each jurisdiction in
which the property owned, leased or operated by KCEC or the nature of the
business conducted by it makes such qualification necessary. KCEC has heretofore
made available to HDL true, accurate and complete copies of KCEC's Articles of
Incorporation and By-Laws as in effect on the date hereof and minutes of all
meetings of the stockholders and directors of KCEC held through and including
the date of this Agreement. KCEC is not in violation of any of the provisions of
its Articles of Incorporation or By-Laws.

            (b) KCEC has full corporate power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.
The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly authorized by the
Board of Directors and, if necessary, the stockholders of KCEC and no other
corporate proceedings on the part of KCEC are necessary to authorize this
Agreement or to consummate the transactions contemplated hereby.

            (c) This Agreement has been duly authorized, executed and delivered
by KCEC and constitutes the legal, valid and binding obligations of each of
them, enforceable against them in accordance with its terms. The issuance of the
KCEC Shares have been duly authorized by all required corporate action on the
part of KCEC. The KCEC Shares when issued and paid for in accordance with this
Agreement, will be validly issued, fully paid and nonassessable, with no
personal liability attaching to the ownership thereof and will be free and clear
of all Liens.

      5.2. CAPITALIZATION. KCEC has authorized capital stock of 25,000,000
shares of Common Stock, no par value, of which 3,120,829 are issued and
outstanding as of the date hereof. A copy of the current stockholder list is
attached hereto as Schedule 5.2. All issued and outstanding shares of capital
stock of KCEC have been duly authorized, validly issued, fully paid,
nonassessable and free of preemptive rights. There are no convertible
securities, options, warrants, subscription calls or other rights or agreements,
arrangements or commitments obligating KCEC to issue, transfer or sell any of
its securities other than as provided for in Section 8.5 hereto. All of such
shares have been issued in compliance with all Federal and State securities law.
None of such issued and outstanding shares is the subject of any voting trust
agreement or other agreement relating to the voting thereof or restricting in
any way the sale or transfer thereof.

      5.3. NO CONFLICT; REQUIRED FILINGS AND CONSENTS.

            (a) The execution and delivery of this Agreement do not, and the
consummation of the transactions contemplated hereby will not, (i) conflict with
or violate any law, regulation, court order, judgment or decree, (ii) violate or
conflict with the Articles of Incorporation or By-Laws of KCEC, or (iii) result
in any breach of or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of
termination or cancellation of any Contract, permit, license or franchise to
which

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KCEC is bound or affected, except for conflicts, violations, breaches or
defaults which, in the aggregate, would not have a Material Adverse Effect on
KCEC.

            (b) The execution, delivery or performance of this Agreement does
not, and the consummation of the transactions contemplated hereby will not,
require any notice, report or other filing with any governmental authority,
domestic or foreign, or require any waiver, consent, approval or authorization
of any Person or any governmental or regulatory authority, domestic or foreign.

      5.4. SEC REPORTS; FINANCIAL STATEMENTS.

            (a) KCEC has previously delivered to HDL true and complete copies of
its Form 10-SB dated June 29, 1999, Form 10-KSB for the fiscal year ended June
30, 2001 and its Forms 10-QSB for the quarters ended December 31, 2001 and March
31, 2002 (the "SEC REPORTS"), and all other documents (other than preliminary
material) that KCEC was required to file with the SEC since the effective date
of its Form 10-SB. Prior to the Closing Date, KCEC will have furnished HDL with
true and complete copies of any additional SEC Reports required to be filed by
KCEC, if any, with the SEC prior to the Closing Date. As of their respective
filing dates, the SEC Reports complied in all material respects with the
requirements of the Exchange Act or the Securities Act, as the case may be, and
none of the SEC Reports contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances in which they
were made, not misleading, except to the extent corrected by a subsequently
filed SEC Document.

            (b) The financial statements of KCEC, including the notes thereto,
included in the SEC Reports, comply as to form in all material respects with
applicable accounting requirements and with respect to the published regulations
of the SEC with respect thereto, have been prepared in accordance with generally
accepted accounting principles consistently applied and fairly present the
financial position of KCEC at the dates thereof and for the periods to which
they relate.

            (c) Except and as to the extent reflected in the March 31, 2002
balance sheet of KCEC included in its March 31, 2002 10-QSB, KCEC did not have
any direct or indirect Liabilities, whether due or to become due, or arising out
of transactions entered into, or any state of facts existing, on or prior to
March 31, 2002 which would be required to be reflected on the March 31, 2002
balance sheet in accordance with GAAP.

      5.5. REAL AND PERSONAL PROPERTY.

            (a) KCEC does not own any real property or lease any property which
is material to the operation of its business, would result in any material
liability if the lease were terminated prior to the expiration of the term
thereof or would interfere with the business of KCEC if it was required to
vacate such premises.

            (b) KCEC has good and marketable title to, or valid leasehold or
license interests in, all other Assets used or held for use in the conduct of
its business, including, without limitation, the Assets reflected on the books
and records or acquired after the date thereof (other than those which have been
disposed of in the ordinary course of business since such date), free and clear
of any Liens, Liens reflected on its books and records and Liens for Taxes not
yet due

                                       11
<PAGE>
and payable. All of the Assets owned or leased by KCEC are in all material
respects in good condition and repair, ordinary wear and tear excepted, and well
maintained. There are no material capital expenditures currently contemplated or
necessary to maintain the current business of KCEC.

      5.6. NO UNDISCLOSED LIABILITIES. Except as set forth in KCEC's financial
statements KCEC had no direct or indirect Liabilities, whether due or to become
due, or arising out of transactions entered into, or any state of facts
existing, on the date hereof.

      5.7. ABSENCE OF CERTAIN CHANGES. Since June 30, 2001 there has been no
material adverse change in the condition (financial or otherwise), Assets,
Liabilities, results of operations, business or prospects of KCEC, and nothing
has occurred relative to the business or prospects of KCEC which would have a
Material Adverse Effect on the future business of KCEC.

      5.8. TAX MATTERS. KCEC has filed all tax returns required to be filed by
it (or has filed appropriate extensions therefor), has paid all taxes due
whether identified on the tax returns or otherwise, and has made appropriate
provision in the KCEC Financial Statements for any taxes not yet due, and all
such tax returns were true, correct and complete. None of the tax returns
described in the preceding sentence or otherwise filed by or on behalf of KCEC
contains or will contain a disclosure statement under Section 6661 of the Code
or any similar provision of state, local, foreign or other law. No assets of
KCEC, and no Assets used in the business of KCEC, are subject to any Liens for
taxes.

      5.9. ENTIRE BUSINESS. No portion of the business of KCEC is conducted by
any Affiliate of KCEC or any third party and all of the Assets necessary for the
conduct of the business of KCEC as presently conducted are owned by KCEC. All
such Assets are exclusively owned or leased and used by KCEC and its customers.

      5.10. LITIGATION. No material investigation or review by any governmental
entity or regulatory body, foreign or domestic, with respect to KCEC is pending
or, to the knowledge of KCEC, threatened against KCEC, and no governmental
entity or regulatory body has advised KCEC of an intention to conduct the same.
There is no claim, action, suit, investigation or proceeding pending or, to the
knowledge of KCEC, threatened against or affecting KCEC at law or in equity or
before any federal, state, municipal or other governmental entity or regulatory
body, or which challenges the validity of this Agreement or any action taken or
to be taken by KCEC pursuant to this Agreement. As of the date hereof, KCEC is
not subject to, nor is there in existence, any outstanding judgment, award,
order, writ, injunction or decree of any court, governmental entity or
regulatory body relating to KCEC which would have a Material Adverse Effect on
KCEC.

      5.11. EMPLOYEE BENEFIT PLANS. KCEC does not maintain or contribute to, or
is required to maintain or contribute to any Employee Benefit Plan. To the
knowledge of KCEC, KCEC does not contribute to, ever has contributed to, or ever
has been required to contribute to, any Multiemployer Plan or has any Liability
(including withdrawal Liability) under any Multiemployer Plan. KCEC does not
maintain or ever has maintained or contribute, ever has contributed, or ever has
been required to contribute to any Employee Welfare Benefit Plan providing
medical, health, or life insurance or other welfare-type benefits for current or
future retired or terminated employees, their spouses, or their dependents
(other than in accordance with Code Section 4980B).

                                       12
<PAGE>
      5.12. CONTRACTS. KCEC has previously made available to HDL access to true,
correct and complete copies of all material Contracts to which KCEC is a party.
As to such Contracts, (i) there are no existing breaches or defaults by KCEC
thereunder or, to the knowledge of KCEC, by the other parties to such Contracts;
(ii) no event, act or omission has occurred or, as a result of the consummation
of the transactions contemplated hereby, will occur which (with or without
notice, lapse of time or the happening or occurrence of any other event) would
result in a default by KCEC thereunder or give cause for termination thereof,
provided that insofar as the foregoing representation involves the actions or
omissions of parties other than KCEC, it shall be limited to the knowledge of
KCEC; (iii) none of them will result in any loss to KCEC upon completion or
performance thereof; and (iv) none of the parties to Contracts have expressed an
indication to KCEC of their intention to cancel, renegotiate or exercise or not
exercise any option under any such Contracts as a result of the transactions
contemplated hereby.

      5.13. INTELLECTUAL PROPERTY.

            (a) KCEC owns or has the right to use pursuant to license,
sublicense, agreement, or permission all Intellectual Property necessary for the
operation of the businesses of KCEC and as proposed to be conducted. KCEC has
taken all necessary action to maintain and protect each item of Intellectual
Property that it owns or uses.

            (b) To the best knowledge of KCEC, KCEC has not interfered with,
infringed upon, misappropriated, or otherwise come into conflict with any
Intellectual Property rights of third parties and KCEC has not received any
charge, complaint, claim, demand, or notice alleging any such interference,
infringement, misappropriation or violation (including any claim that either
KCEC must license or refrain from using any Intellectual Property rights of any
third Person). To the knowledge of KCEC, no third party has interfered with,
infringed upon, misappropriated, or otherwise come into conflict with any
Intellectual Property rights of any Person.

      5.14. LICENSES, PERMITS AND CONSENTS; COMPLIANCE WITH APPLICABLE LAW.

            (a) KCEC has all licenses and permits which individually or in the
aggregate are material to the conduct of the business of KCEC or any of its
employees by reason of such employee's activities on behalf of KCEC under
applicable law or by any federal, state, local or foreign governmental entity or
regulatory body for the operation of the business of KCEC, and all of such
listed licenses and permits are in full force and effect as of the date hereof.
KCEC has not received notice and, to the knowledge of KCEC, there is no reason
to believe, that any appropriate authority intends to cancel or terminate any of
such licenses or permits or that valid grounds for such cancellation or
termination currently exist.

            (b) KCEC is not in violation or breach of any, and the business and
operations of KCEC comply in all material respects and are being conducted in
accordance with, all governing laws, regulations and ordinances applicable
thereto and KCEC is not in violation of or in default under, any judgment,
award, order, writ, injunction or decree of any court, arbitration tribunal,
governmental entity or regulatory body.

      5.15. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS. KCEC and its respective
predecessors have at all times complied with, and KCEC is presently in
compliance with, all environmental, health, and safety requirements required by
applicable law.

                                       13
<PAGE>
      5.16. FINDER'S FEE. There is no investment banker, broker, finder or other
intermediary which has been retained by, or is authorized to act on behalf of,
KCEC or their respective Affiliates who might be entitled to any fee or
commission from KCEC, HDL or their respective Affiliates upon the consummation
of the transactions contemplated hereby or thereafter.

      5.17. ACCURACY OF REPRESENTATIONS. The representations and warranties made
by KCEC in this Agreement, and in any certificate or Schedule referenced hereby
or attached hereto, do not contain, and will not contain, any statement which is
false or misleading with respect to any material fact and do not and will not
omit to state a material fact required to be stated herein or therein or
necessary in order to make the statements contained herein or therein not
materially false or misleading. There is no material fact or condition which
could have a Material Adverse Effect on KCEC which has not been set forth in
this Agreement or described in the Schedules hereto.

                                   ARTICLE VI.
                                    COVENANTS

      6.1. CONDUCT OF BUSINESS OF KCEC AND HDL. From the date hereof to the
Closing Date, each of HDL and KCEC, shall:

            (i) conduct its business only in the ordinary course and in
substantially the same manner as heretofore conducted;

            (ii) maintain and keep its Assets in good repair, working order and
condition, except for ordinary wear and tear;

            (iii) use its best efforts to maintain and preserve its business
organization intact, retain its present employees so that they will be available
after the Closing Date, and maintain its relationships with its customers so
that they will be preserved after the Closing Date; and

            (iv) not take any action which would cause the representations and
warranties set forth herein to be untrue or which would have a Mutual Adverse
Effect on the business of HDL or KCEC, as the case may be.

      6.2. NO SOLICITATION. Neither HDL or KCEC shall, and each shall direct and
otherwise cause their respective officers, directors, partners, financial
advisors, counsel, agents and Affiliates of such party not to, (i) directly or
indirectly solicit, encourage or facilitate (including by way of furnishing any
non-public information concerning HDL or KCEC, as the case may be) the
submission of proposals or offers from any Person other than HDL and KCEC
relating to any acquisition or purchase of all or a material part of the stock
or assets of, or any merger, consolidation or business combination with, HDL or
KCEC, as the case may be (an "ACQUISITION PROPOSAL"), or (ii) participate in any
discussions or negotiations regarding, or furnish any non-public information to
any Person other than the other parties hereto in connection with, any
Acquisition Proposal by any Person other than HDL, KCEC or their respective
Affiliates, as the case may be.

                                       14
<PAGE>
      6.3. ACCESS TO INFORMATION; CONFIDENTIALITY.

            (a) Between the date of this Agreement and the Closing Date, HDL, on
the one hand, and KCEC, on the other hand, shall give to the other(s) and their
respective lenders, officers, directors, financial advisors, counsel and other
agents access to all offices of HDL or KCEC, as the case may be, and to all of
its respective books and records, permit them to make such inspections as they
may require and shall cause HDL's or KCEC's respective officers, directors and
employees to furnish the other(s) and their prospective lenders, officers,
directors, financial advisors, counsel and other agents with such financial and
operating data and other information with respect to the business and properties
of HDL and KCEC or their prospective lenders, officers, directors, financial
advisors, counsel and other agents may from time to time reasonably request, and
as may be necessary to establish the performance by the parties hereto of their
covenants under this Agreement and the accuracy of their representations and
warranties herein, and in connection with the preparation of any filing or
submission to any governmental entity or regulatory body.

            (b) HDL, on the one hand, and KCEC, on the other hand, shall hold,
and shall use commercially reasonable efforts to cause their respective
officers, directors, partners, prospective lenders, financial advisors, counsel
and other agents to hold, in strict confidence, unless compelled to disclose by
judicial or administrative process, or, in the opinion of their counsel, by
other requirements of law, all documents and information concerning HDL or KCEC,
as the case may be, furnished to the other in connection with the transactions
contemplated by this Agreement (except to the extent that such information can
be shown to have been (i) in the public domain through no fault of HDL or any of
their respective Affiliates on the one hand, or KCEC or any of their Affiliates,
on the other hand; or (ii) later lawfully acquired without the breach of any
other agreement by a party hereto or their respective officers, directors,
partners, financial advisors, counsel and other agents from other sources) and
will not release or disclose such information to any other Person, except its
officers, directors, prospective lenders, financial advisors, counsel and other
agents in connection with this Agreement. If the transactions contemplated by
this Agreement are not consummated, such confidence shall be maintained as
hereinbefore provided, and, if requested by any party hereto case may be, the
other(s) will, and will cause its officers, directors, partners, prospective
lenders, financial advisors, counsel and other agents to, return to the
requesting party all copies of written information furnished by or on its behalf
to the other(s) or their respective officers, directors, prospective lenders,
financial advisors, counsel and other agents.

      6.4. BEST EFFORTS. Subject to the terms and conditions herein provided,
each party hereto agrees to use commercially reasonable efforts to take, or
cause to be taken, all action, and to do, or cause to be done, all things
necessary, proper or advisable under applicable laws and regulations, including
making all required submissions or filings with governmental entities and
regulatory bodies, to consummate and make effective the transactions
contemplated by this Agreement. If, at any time after the Closing Date, any
further action is necessary or desirable to carry out the purposes of this
Agreement, the parties hereto or their officers, directors or representatives
shall take all such necessary action. Each party hereto shall execute any
additional instruments necessary to consummate the transactions contemplated
hereby.

                                       15
<PAGE>
      6.5. CONSENTS. Each party hereto shall use their best efforts to obtain,
at its expense, all consents, approvals and waivers of third Persons or
governmental entities or regulatory bodies required to consummate the
transactions contemplated hereby.

      6.6. PUBLIC ANNOUNCEMENTS. Each of the parties hereto will consult with
one another before issuing any press release or otherwise making any public
statement with respect to the transactions contemplated hereby and shall not,
except as may be required by law or any listing agreements with any national
securities exchange, issue any such press release or make any such public
statement without the approval of one another.

      6.7. CONTINUED EFFECTIVENESS OF REPRESENTATIONS AND WARRANTIES. From the
date hereof until the Closing Date, each of the parties shall use their
respective best efforts to conduct such parties' affairs in such a manner so
that, except as otherwise contemplated or permitted by this Agreement, the
representations and warranties contained in Articles III and IV shall continue
to be true and correct on and as of the Closing Date as if made on the Closing
Date and the parties shall promptly notify the others of any event, condition or
circumstance occurring from the date hereof through the Closing Date that would
constitute a violation or breach such party of any of such representations and
warranties.

      6.8. EXPENSES. Except as otherwise provided herein, whether or not the
transactions contemplated hereby are consummated, all expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
the obligation of the party incurring such expenses.

      6.9. RECAPITALIZATION. Prior to the Closing Date, KCEC shall effect a 50
to 1 reverse split of its issued and outstanding capital stock.

      6.10. POST EXCHANGE CAPITALIZATION. Immediately following the Closing
Date, the capitalization of KCEC, on a fully diluted basis, shall be as set
forth in Schedule 6.10.

                                  ARTICLE VII.

                       CONDITIONS PRECEDENT TO PERFORMANCE
                                     OF KCEC

      The obligations of KCEC under this Agreement are subject to the following
conditions which may be waived in whole or in part by KCEC at their election:

      7.1. BRING DOWN OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of HDL and the HDL Shareholders in this Agreement shall be true and
correct in all material respects on the date hereof and shall also be true and
correct in all material respects on the Closing Date with the same force and
effect as if made on and as of the Closing Date, and HDL and the HDL
Shareholders shall have performed or complied in all material respects with all
agreements, conditions and covenants required by this Agreement to be performed
or complied with by them on or before the Closing Date.

      7.2. AUTHORITY. HDL shall have delivered to KCEC a certificate of the
Secretary of HDL, certifying to the resolutions of the Board of Directors of HDL
authorizing the transactions

                                       16
<PAGE>
contemplated hereby and certifying that such resolutions have not been revoked,
suspended or amended and remain in full force and effect. KCEC shall have
received all documents it may reasonably request relating to the existence of
HDL and the authority of HDL to enter into this Agreement and to consummate the
transactions contemplated hereby.

      7.3. MATERIAL ADVERSE CHANGES. There shall not have been, and on the
Closing Date there shall not be in existence, any event, condition or state of
facts which could reasonably be expected to result in, any material adverse
change in the condition (financial or otherwise), Assets, Liabilities, results
of operations, business or prospects of HDL, and KCEC shall have received a
certificate of the President of HDL to the foregoing effect.

      7.4. CONSENTS. HDL shall have obtained all approvals, authorizations and
consents required to consummate the transactions contemplated hereby upon terms
and subject to conditions satisfactory to KCEC in its sole discretion and such
approvals, authorizations and consents shall be in full force and effect. KCEC
shall have been furnished with appropriate evidence, reasonably satisfactory to
it and its counsel, of the granting of such approvals, authorizations and
consents.

      7.5. INJUNCTION. There shall be no effective injunction, writ or
preliminary restraining order of any nature issued by a court or governmental
agency of competent jurisdiction directing that the transactions provided for
herein or any of them not be consummated as herein provided or which is
reasonably likely to have any material adverse effect of the condition
(financial or otherwise), Assets, Liabilities, results of operations, business
or prospects of HDL, taken as a whole.

                                 ARTICLE VIII.

                       CONDITIONS PRECEDENT TO PERFORMANCE
                         OF HDL AND THE HDL SHAREHOLDERS

      8.1. BRING DOWN OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of KCEC contained in this Agreement shall be true and correct in all
material respects on the date hereof and shall also be true and correct in all
material respects on and as at the Closing Date with the same force and effect
as if made on and as of the Closing Date, and KCEC shall have performed or
complied in all material respects with all agreements, conditions and covenants
required by this Agreement to be performed or complied with by them on or before
the Closing Date. HDL shall have received a certificate of the President of KCEC
to the foregoing effect.

      8.2. AUTHORITY. KCEC shall have delivered to HDL a certificate of the
Secretary of KCEC certifying to the resolutions of the Board of Directors of
KCEC authorizing the transactions contemplated hereby and certifying that such
resolutions have not been revoked, suspended or amended and remain in full force
and effect. HDL shall have received all other documents it may reasonably
request relating to the existence of KCEC and the authority of KCEC to enter
into this Agreement and to consummate the transactions contemplated hereby.

                                       17
<PAGE>
      8.3. RELEASES. KCEC shall have received releases from each of its
directors and officers from all claims which such directors and officers may
have against KCEC as of the Closing Date.

      8.4. PURCHASE AGREEMENT. As of Closing, KCEC shall have entered into an
agreement with Concourse Financial, Inc. ("Concourse") pursuant to which
Concourse shall, on a best efforts basis, purchase up to 6,000,000 shares of
common stock of KCEC pursuant to Rule 903 of Regulation S under the Securities
Act of 1933.

      8.5. CONSENTS. All approvals, authorizations and consents required by KCEC
to consummate the transactions contemplated hereby shall have been obtained on
terms and conditions satisfactory to HDL in its sole discretion and shall be in
full force and effect, and HDL shall have been furnished with appropriate
evidence, reasonably satisfactory to it and its counsel, of the granting of such
approvals, authorizations and consents.

      8.6. INJUNCTION. There shall be no effective injunction, writ or
preliminary restraining order of any nature issued by a court or governmental
agency of competent jurisdiction directing that the transactions provided for
herein or any of them not be consummated as herein provided.

                                  ARTICLE IX.

                     NATURE AND SURVIVAL OF REPRESENTATIONS,
                            WARRANTIES AND COVENANTS

      All statements contained herein or in any certificate, schedule or other
document delivered pursuant hereto shall be deemed representations and
warranties by the party delivering the same. All representations and warranties
and covenants shall survive the Closing Date. All representations and warranties
contained in this Agreement and in the disclosure schedules or in any
certificates or other documents delivered pursuant hereto shall not be deemed to
be waived or otherwise affected by any prior knowledge of, or any investigation
made by or on behalf of, any party hereto. All covenants and agreements shall
survive the consummation of the transactions contemplated hereby.

                                   ARTICLE X.

                                 INDEMNIFICATION

            (a) HDL and the HDL Shareholders hereby agree to indemnify and hold
harmless KCEC and its respective Affiliates from and against any Liabilities,
damages, losses, claims, Liens, costs or expenses (including reasonable
attorneys' fees) of any nature (any or all of the foregoing are herein referred
to as "LOSS") insofar as a Loss (or actions in respect thereof), whether
existing or accruing prior or subsequent to the Closing Date, arises out of or
is based upon any misrepresentation (or alleged misrepresentation) or breach (or
alleged breach) of any of the warranties, covenants or agreements made by HDL
and the HDL Shareholders in this

                                       18
<PAGE>
Agreement or in any certificate, Schedule, document or Exhibit referenced hereby
or attached hereto.

            (b) KCEC hereby agrees to indemnify and hold harmless HDL and the
HDL Shareholders from and against any Liabilities, damages, losses, claims,
Liens, costs or expenses (including reasonable attorneys' fees) of any nature
insofar as a Loss (or actions in respect thereof), whether existing or accruing
prior or subsequent to the Closing Date, arises out of or is based upon any
misrepresentation (or alleged misrepresentation) or breach (or alleged breach)
of any of the warranties, covenants or agreements made by KCEC in this Agreement
or in any certificate, Schedule, document or Exhibit referenced hereby or
attached hereto.

                                  ARTICLE XI.

                         TERMINATION; AMENDMENT; WAIVER

      11.1. TERMINATION. This Agreement and the transactions contemplated hereby
may be terminated at any time prior to the Closing:

            (a) by mutual written agreement of HDL, the HDL Shareholders and
KCEC;

            (b) by HDL and the HDL Shareholders, on the one hand, or KCEC, on
the other hand, as the case may be, if the Closing shall not have occurred on or
before October 31, 2002 so long as the party terminating this Agreement pursuant
to this Section 11.1 has not made any material misrepresentation or materially
breached a covenant, agreement or warranty contained herein;

            (c) by KCEC, on the one hand, or HDL and the HDL Shareholders, on
the other hand, if (i) the transactions contemplated hereby shall violate any
non-appealable final order, decree or judgment of any court or governmental
entity or regulatory body having competent jurisdiction or (ii) there shall be a
statute, rule or regulation which makes the transactions contemplated hereby
illegal or otherwise prohibited; or

            (d) by HDL and the HDL Shareholders, on the one hand, and KCEC, on
the other hand, in the event the other makes a material misrepresentation or
breaches a covenant, agreement or warranty set forth in this Agreement, but such
non-misrepresenting or non-breaching party's election to terminate shall not
limit, waive or prejudice such party's remedies at law or in equity.

      In the event this Agreement is terminated as provided in Section 11.1(a),
(b) or (c), this Agreement shall become void and of no further force and effect
and no party hereto shall have any further liability to any other party hereto,
except that Sections 4.18, 5.16, 6.2, 6.3, 6.6 and 6.8 shall survive and
continue in full force and effect notwithstanding termination.

      11.2. AMENDMENT. This Agreement may be amended by action taken by the
parties hereto by an instrument in writing.

      11.3. EXTENSION; WAIVER. At any time prior to the Closing Date, HDL, the
HDL Shareholders, KCEC may (i) extend the time for the performance of any of the
obligations or

                                       19
<PAGE>
other acts of the other; (ii) waive any inaccuracies in the representations and
warranties contained herein or in any document, certificate or writing delivered
pursuant hereto or thereto; and (iii) waive compliance with any of the
agreements or conditions contained herein. Any agreement on the part of any
party to any such extension or waiver shall be valid only if set forth in an
instrument in writing signed by or on behalf of such party.

                                  ARTICLE XII.

                                  MISCELLANEOUS

      12.1. ENTIRE AGREEMENT; ASSIGNMENT. This Agreement, together with all
Schedules and Exhibits, constitutes the entire agreement among the parties with
respect to the subject matter hereof and supersedes all other prior agreements
and understandings, both written and oral, among the parties or between any of
them with respect to the subject matter hereof. All references to Sections,
Exhibits and Schedules shall be deemed references to such parts of this
Agreement unless the text requires otherwise. This Agreement shall not be
assigned by operation of law or otherwise.

      12.2. NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given or made as of
the date delivered or mailed if delivered in person, by telecopy, cable,
telegram or telex, or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties as follows:

                  if to KCEC:

                           Kid Castle Educational Corporation
                           7th Floor, 127-1 Sung-Chiang Road
                           Taipei, Taiwan, R.O.C.
                           Fax:
                           Attn:

                  with a copy to:

                           Tony Tsai of Counsel
                           5 Fl., 216, Tun - Hwa S. Rd., SEC 2
                           Taipei 106, Taiwan
                           R.O.C.
                           Fax:     (   )
                           Attn:

                  if to HDL:

                           Higoal Developments Limited
                           P.O. Box 2804
                           George Town, Grand Cayman, Cayman Islands
                           Fax:
                           Attn:

                                       20
<PAGE>
                  with a copy to:

                           Conyers Dill & Pearman
                           2901, One Exchange Square
                           8 Connaught Place
                           Central, Hong Kong

                           Fax:     (852) 2845-9268 or (852)2596-0418
                           Attn:    Bernadette Chen

or to such other address as the Person to whom notices is given may have
previously furnished to the others in writing in the manner set forth above.

      12.3. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to
applicable principles of conflicts of laws thereof.

      12.4. PARTIES IN INTEREST. This Agreement shall be binding upon and inure
solely to the benefit of each party hereto, its successors and assigns.

      12.5. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.

      12.6. SPECIFIC PERFORMANCE. Irreparable damage would occur if any of the
provisions of this Agreement were not performed in accordance with the terms
hereof, and the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or equity.

      12.7. CONSTRUCTION. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation. Nothing in the
Schedules shall be deemed adequate to disclose an exception to a representation
or warranty made herein unless the Schedule identifies the exception with
reasonable particularity and describes the relevant facts in reasonable detail.
Without limiting the generality of the foregoing, the mere listing (or inclusion
of a copy) of a document or other item shall not be deemed adequate to disclose
an exception to a representation or warranty made herein (unless the
representation or warranty has to do with the existence of the document or other
item itself). The parties intend that each representation, warranty, and
covenant contained herein shall have independent significance. If any party has
breached any representation, warranty, or covenant contained herein in any
respect, the fact that there exists another representation, warranty, or
covenant relating to the same subject matter (regardless of the relative levels
of specificity) which the party has not breached shall not detract from or
mitigate the fact that the party is in breach of the first representation,
warranty, or covenant.

                                       21
<PAGE>
      12.8. SEVERABILITY. The provisions of this Agreement are severable and, in
the event that any court of competent jurisdiction shall determine that any one
or more of the provisions or part of a provision contained therein 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 provision
or part of a provision of this Agreement and the terms thereof shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part
of a provision, had never been contained herein, and such provisions or part
reformed so that it would be valid, legal and enforceable to the maximum extent
possible.

      12.9. INCORPORATION OF EXHIBITS AND SCHEDULES. The Exhibits and Schedules
identified in this Agreement are incorporated herein by reference and made a
part hereof.

                                       22
<PAGE>
      IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf by its officers thereunto duly authorized, or
individually, as the case may be, all as of the day and year first above
written.

                            HIGOAL DEVELOPMENTS LIMITED

                            By:       /s/ Wang Kuo An
                               -------------------------------------
                               Name:  Wang Kuo An
                               Title:

                            KID CASTLE EDUCATIONAL CORPORATION

                            By:       /s/ Chien Hwa Liu
                               -------------------------------------
                               Name:  Chien Hwa Liu
                               Title:

                            HDL SHAREHOLDERS

                            By:       /s/ Wang Kuo An
                               -------------------------------------
                               Name:  Wang Kuo An
                               Title: As Agent for each of the HDL
                               Shareholders

                                       23
<PAGE>
                                  SCHEDULE 6.10
                          POST EXCHANGE CAPITALIZATION

<TABLE>
<S>                         <C>
HDL                         11,880,000

Investor Group               3,120,000

Concourse & Designees        6,000,000
</TABLE>

                                       24
<PAGE>
                                   SCHEDULE I
                           HIGOAL DEVELOPMENTS LIMITED
                              List Of Shareholders

<TABLE>
<CAPTION>
        NAME OF SHAREHOLDERS                                     SHARES NO. (HDL)           SHARES NO. POST EXCHANGE (KCEC)
        --------------------                                     ----------------           -------------------------------
<S>                                                              <C>                        <C>
 1.  WANG, KUO-AN                                                 1,728,000                       1,728,000
 2.  CHIU, YU-EN                                                  1,296,000                       1,296,000
 3.  HSU, SHIH-SHUN                                                 432,000                         432,000
 4.  HO, CHENG-YU                                                   216,600                         216,600
 5.  FAN, YU-CHANG                                                  129,600                         129,600
 6.  HUANG, CHIN-CHEN                                               345,600                         345,6Q0
 7.  LIU, WEN- LING                                                  45,040                          45,040
 8.  HSU, YUN-YUN                                                   257,440                         257,440
 9.  SU, CHIUNG-MING                                                532,000                         532,000
 10. CHEN, CHIEN-CHUNG                                              345,600                         345,600
 11. LIAO, HSIU-JEN                                                  30,880                          30,880
 12. FU, TSUI-HUA                                                    30,880                          30,880
 13. CHEN, CHUN-LIANG                                               362,880                         362,880
 14. LEE, PEI-LING                                                   26,880                          26,880
 15. CHEN, CHIEN-HUNG                                               362,880                         362,880
 16. HAN, CHIH-JUNG                                                 397,440                         397,440
 17. CHEN, MEI-CHUN                                                 397,440                         397,440
 18. TSUI, LI-MEI                                                   397,440                         397,440
 19. PAI, HSI-MING                                                  574,080                         574,080
 20. PAI WONG,YUEH-HUEI                                             460,080                         460,080
 21. PAI,WEN-CHIA                                                    45,900                          45,900
 22. PAI, PO-HUNG                                                    45,900                          45,900
 23. PAI, SUANG-YI                                                  460,080                         460,080
 24. PAI LU, SU-MEI                                                 459,000                         459,000
 25. CHEN,BANG-HSI                                                   68,580                          68,580
 26. PAI, MEI-HUI                                                    68,580                          68,580
 27. CHEN, YIN-CHUN                                                  45,900                          45,900
 28. CHEN, YEN-CHUN                                                  45,900                          45,900
 29. CHENG, KUO-IAN                                               1,080,000                       1,080,000
 30. PAI, HSI-HO                                                    332,000                         332,000
 31. PAI LIN,WEN-NU                                                 332,000                         332,000
 32. PAI, CHIA-YUN                                                   74,000                          74,000
 33. PAI, CHI-HUNG                                                   74,000                          74,000
 34. PAI, CHING-HUNG                                                 74,000                          74,000
 35. HORNG DAH ZIPPERS CO., L                                        50,000                          50,000
 36. WANG,HUEI-HSIEN                                                 40,000                          40,000
 37. SZU, SHU-WEN                                                     8,000                           8,000
 38. SHIH, CHEN-CHANG                                                 7,000                           7,000
 39. HSU, HUI                                                         5,000                           5,000
 40. CHU, CHENG-HUNG                                                  4,000                           4,000
 41. KUO, JUI-KUO                                                     5,000                           5,000
 42. WU, CHUN - HUNG                                                 15,000                          15,000
 43. CHAN, SU-FEN                                                     4,000                           4,000
 44. LEU, FANG-JUN                                                    2,000                           2,000
 45. OU, CHIN-TSAI                                                  166,000                         166,000
                                                                 11,880,000                      11,880,000
</TABLE>

                                       25<PAGE>
                                                                     EXHIBIT 4.2

================================================================================
                          10.75% Senior Notes due 2011             CUSIP:
                                                                   ISIN:
No.                                                                      $

                            PLASTIPAK HOLDINGS, INC.

promises to pay to Cede & Co. or registered assigns,

the principal sum of               Dollars on September 1, 2011.

Interest Payment Dates:  September 1 and March 1

Record Dates:  August 15 and February 15

Dated:

                                            PLASTIPAK HOLDINGS, INC.

                                            By:
                                                  ------------------------------
                                                  Name: William C. Young
                                                  Title:  President

                                            By:
                                                  ------------------------------
                                                  Name:  Michael J. Plotzke
                                                  Title:  Treasurer

This is one of the Notes referred to in the within-mentioned Indenture:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
  as Trustee

By:
    ------------------------------------------------------
                Authorized Signatory

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

                                       1
<PAGE>
                                                                     EXHIBIT 4.2

                          10.75% SENIOR NOTES DUE 2011

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO
A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

         1. INTEREST. Plastipak Holdings, Inc., a Michigan corporation (the
"Company"), promises to pay interest on the principal amount of this Note at
10.75% per annum from September 1, 2002 until maturity and shall pay the Special
Interest payable pursuant to the Registration Rights Agreement referred to
below. The Company will pay interest and Special Interest semi-annually in
arrears on September 1 and March 1 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each an "Interest Payment
Date"). Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be March 1, 2003. The Company shall pay
interest (including post-petition

                                       2
<PAGE>
                                                                     EXHIBIT 4.2

interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per annum in
excess of the rate then in effect; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Special Interest (without regard to any applicable
grace periods) from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve
30-day months.

         2. METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) and Special Interest to the Persons who are
registered Holders of Notes at the close of business on the August 15 or
February 15 next preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. The Notes will be payable as to principal, premium and Special
Interest, if any, and interest at the office or agency of the Company maintained
for such purpose within or without the City and State of New York, or, at the
option of the Company, payment of interest and Special Interest may be made by
check mailed to the Holders at their addresses set forth in the register of
Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of and interest, premium and
Special Interest on, all Global Notes and all other Notes the Holders of which
shall have provided wire transfer instructions to the Company or the Paying
Agent. Such payment shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts.

         3. PAYING AGENT AND REGISTRAR. Initially, Wells Fargo Bank Minnesota,
National Association, the Trustee under the Indenture, will act as Paying Agent
and Registrar. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

         4. INDENTURE. The Company issued the Notes under an Indenture dated as
of August 20, 2001 ("Indenture") between the Company, the Guarantors (as defined
therein) and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code ss.ss. 77aaa-77bbbb). The Notes
are subject to all such terms, and Holders are referred to the Indenture and
such Act for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
indenture shall govern and be controlling. The Notes are obligations of the
Company limited to $500 million in aggregate principal amount.

         5. OPTIONAL REDEMPTION.

         (a) Except as set forth in subparagraph (b) of this Paragraph 5, the
Company shall not have the option to redeem the Notes prior to September 1,
2006. Thereafter, the Company shall have the option to redeem the Notes, in
whole or in part, upon not less than 30 nor more than 60 days' notice, at the
redemption prices (expressed as percentages of principal amount) set forth below
plus accrued and unpaid interest and Special Interest thereon to the applicable
redemption date, if redeemed during the twelve-month period beginning on
September 1 of the years indicated below:

<TABLE>
<CAPTION>
        Year                                                                                  Percentage
        ----                                                                                  ----------
<S>                                                                                           <C>
        2006.............................................................................     105.375%
        2007.............................................................................     103.583%
        2008.............................................................................     101.792%
        2009 and thereafter..............................................................     100.000%
</TABLE>

         (b) Notwithstanding the provisions of subparagraph (a) of this
Paragraph 5, at any time prior to September 1, 2004, the Company may redeem on
one or more occasion Notes with the net cash proceeds of one or more sales of
Common Stock of the Company at a redemption price equal to 110.750% of the

                                       3
<PAGE>

                                                                     EXHIBIT 4.2

principal amount thereof; provided that at least 65% in aggregate principal
amount of the Notes issued (excluding Notes held by the Company and its
Subsidiaries) remain outstanding immediately after the occurrence of such
redemption and that such redemption occurs within 45 days of the date of the
closing of the applicable sale of Common Stock.

         6. MANDATORY REDEMPTION.

                  Except as set forth in paragraph 7 below, the Company shall
not be required to make mandatory redemption payments with respect to the Notes.

         7. REPURCHASE AT OPTION HOLDER.

         (a) If there is a Change of Control, the Company shall be required to
make an offer (a "Change of Control Offer") to repurchase all or any part (equal
to $1,000 or an integral multiple thereof) of each Holder's Notes at a purchase
price equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Special Interest thereon, if any, to the date of purchase
the "Change of Control Payment"). Within 10 days following any Change of
Control, the Company shall mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

         (b) If the Company or a Subsidiary consummates any Asset Sales, within
five days of each date on which the aggregate amount of Excess Proceeds exceeds
$5 million, the Company shall commence an offer to all Holders of Notes (as
"Asset Sale Offer") pursuant to Section 3.09 of the Indenture to purchase the
maximum principal amount of Notes (including any Additional Notes) that may be
purchased out of the Excess Proceeds at an offer price in cash in an amount
equal to 100% of the principal amount thereof plus accrued and unpaid interest
and Special Interest thereon, if any, to the date fixed for the closing of such
offer, in accordance with the procedures set forth in the Indenture. To the
extent that the aggregate amount of Notes (including any Additional Notes)
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Company (or such Subsidiary) may use such deficiency for any purpose not
prohibited by the Indenture. If the aggregate principal amount of Notes
surrendered by Holders thereof exceeds the amount of Excess Proceeds, the
Trustee shall select the Notes and such other pari passu Indebtedness to be
purchased on a pro rata basis. Holders of Notes that are the subject of an offer
to purchase will receive an Asset Sale Offer from the Company prior to any
related purchase date and may elect to have such Notes purchased by completing
the form entitled "Option of Holder to Elect Purchase" on the reverse of the
Notes.

         8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date (except that
redemption notices may be mailed more than 60 days prior to a redemption date if
the notice is issued in connection with Article 8 or Article 11 of the
Indenture) to each Holder whose Notes are to be redeemed at its registered
address. Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed. On and after the redemption date interest ceases to accrue on
Notes or portions thereof called for redemption.

         9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company

                                       4
<PAGE>
                                                                     EXHIBIT 4.2

need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record
date and the corresponding Interest Payment Date.

         10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes.

         11. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
the Indenture , the Note Guarantees or the Notes may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the then outstanding Notes and Additional Notes, if any, voting as a single
class, and any existing default or compliance with any provision of the
Indenture, the Note Guarantees or the Notes may be waived with the consent of
the Holders of a majority in principal amount of the then outstanding Notes and
Additional Notes, if any, voting as a single class. Without the consent of any
Holder of a Note, the Indenture, the Note Guarantees or the Notes may be amended
or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's or Guarantor's obligations to
Holders of the Notes in case of a merger or consolidation, to make any change
that would provide any additional rights or benefits to the Holders of the Notes
or that does not adversely affect the legal rights under the Indenture of any
such Holder, to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the Trust Indenture Act, to
provide for the Issuance of Additional Notes in accordance with the limitations
set forth in the Indenture, or to allow any Guarantor to execute a Supplemental
Indenture to the Indenture and/or a Note Guarantee with respect to the Notes.

         12. DEFAULTS AND REMEDIES. Events of Default include: (i) default for
30 days in the payment when due of interest or Special Interest on the Notes;
(ii) default in payment when due of principal of or premium, if any, on the
Notes when the same becomes due and payable at maturity, upon redemption
(including in connection with an offer to purchase) or otherwise, (iii) failure
by the Company to comply with Section 4.07, 4.09, 4.10, 4.15 or 5.01 of the
Indenture; (iv) failure by the Company for 30 days after notice to the Company
by the Trustee or the Holders of at least 25% in principal amount of the Notes
(including Additional Notes, if any) then outstanding voting as a single class
to comply with certain other agreements in the Indenture, the Notes; (v) default
under certain other agreements relating to Indebtedness of the Company which
default results (i) in a Payment Default or (ii) in the acceleration of such
Indebtedness prior to its express maturity, and, in each case, the principal
amount of any such Indebtedness, together with the principal amount of any other
such Indebtedness or the maturity of which has been so accelerated aggregates
$10.0 million or more; (vi) certain final judgments aggregating in excess of
$10.0 million for the payment of money that remain undischarged for a period of
60 days; (vii) certain events of bankruptcy or insolvency with respect to the
Company or any of its Material Subsidiaries; and (viii) except as permitted by
the Indenture, any Note Guarantee shall be held in any judicial proceeding to be
unenforceable or invalid or shall cease for any reason to be in full force and
effect or any Guarantor or any Person acting on its behalf shall deny or
disaffirm its obligations under such Guarantor's Note Guarantee. If any Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be
due and payable. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding
Notes will become due and payable without further action or notice. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of
Default

                                       5
<PAGE>
                                                                     EXHIBIT 4.2

and its consequences under the Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes. The
Company is required to deliver to the Trustee annually a statement regarding
compliance with the Indenture, and the Company is required upon becoming aware
of any Default or Event of Default, to deliver to the Trustee a statement
specifying such Default or Event of Default.

         13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, 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 the Trustee.

         14. NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder, of the Company, as such, shall not have any
liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

         15. AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

         16. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder 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).

         17. ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement dated as of September 25, 2002, between the Company and the parties
named on the signature pages thereof (the "Registration Rights Agreement").

         18. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                  The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture and/or the Registration Rights
Agreement. Requests may be made to:

Plastipak Holdings, Inc.
9135 General Court
Plymouth, Michigan 48170-0907
Attention:  Leann M. Underhill

                                       6
<PAGE>
                                                                     EXHIBIT 4.2

                                 ASSIGNMENT FORM

                  To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:
                                             -----------------------------------
                                                (Insert assignee's legal name)

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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

and irrevocably appoint
                        --------------------------------------------------------
to transfer this Note 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
                                    face of this Note)

Signature Guarantee*:
                     -------------------------

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                       7
<PAGE>
                                                                     EXHIBIT 4.2

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Note purchased by the
Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate
box below:

                      [ ] Section 4.10         [ ] Section 4.15

                  If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state
the amount you elect to have purchased:

                             $
                              ---------------------

Date:
     ---------------
                                 Your Signature:
                                                  ------------------------------
                                   (Sign exactly as your name appears on the
                                    face of this Note)

Signature Guarantee*:
                     -------------------------

                                 Tax Identification No.:
                                                        ------------------------

Signature Guarantee*:
                       -------------------------
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                       8
<PAGE>

                                                                     EXHIBIT 4.2

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

                  The following exchanges of a part of this Global Note for an
interest in another Global Note or for a Definitive Note, or exchanges of a part
of another Global Note or Definitive Note for an interest in this Global Note,
have been made:

<TABLE>
<CAPTION>
                                                                           Principal Amount
                           Amount of decrease    Amount of increase in    of this Global Note       Signature of
                           in Principal Amount      Principal Amount        following such       authorized officer
                                   of                      of                  decrease             of Trustee or
    Date of Exchange        this Global Note        this Global Note         (or increase)         Note Custodian
    ----------------        ----------------        ----------------         -------------         --------------
<S>                        <C>                   <C>                       <C>                   <C>
</TABLE>

                                       9
<PAGE>
                                                                     EXHIBIT 4.2

                              NOTATION OF GUARANTEE

         For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of August 20, 2001 (the "Indenture") among
Plastipak Holdings, Inc., the Guarantors named therein and Wells Fargo Bank
Minnesota, National Association, as trustee (the "Trustee"), (a) the due and
punctual payment of the principal of, premium, if any, and interest on the Notes
(as defined in the Indenture), whether at maturity, by acceleration, redemption
or otherwise, the due and punctual payment of interest on overdue principal and
premium, and, to the extent permitted by law, interest, and the due and punctual
performance of all other obligations of the Company to the Holders or the
Trustee all in accordance with the terms of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Note Guarantee.
Each Holder of a Note, by accepting the same, (a) agrees to and shall be bound
by such provisions, (b) authorizes and directs the Trustee, on behalf of such
Holder, to take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee
attorney-in-fact of such Holder for such purpose; provided, however, that the
Indebtedness evidenced by this Note Guarantee shall cease to be so subordinated
and subject in right of payment upon any defeasance of this Note in accordance
with the provisions of the Indenture.

                                               PLASTIPAK PACKAGING, INC.

                                               By:
                                                  ------------------------------
                                               Name:  Michael J. Plotzke
                                               Title: Treasurer

                                               WHITELINE EXPRESS, LTD.

                                               By:
                                                  ------------------------------
                                               Name:  Michael J. Plotzke
                                               Title: Treasurer

                                               TABB REALTY, LLC
                                               by:  Plastipak Holdings, Inc.

                                               By:
                                                  ------------------------------
                                               Name:  Michael J. Plotzke
                                               Title: Treasurer

                                               CLEAN TECH, INC.

                                               By:
                                                  ------------------------------
                                               Name:  Michael J. Plotzke
                                               Title: Treasurer

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]