Document:

EX-10.2 Employment Agreement - Brockwell

 

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

      AGREEMENT, entered into as of January 1, 2002 (the “Effective
Date”) by and between Koger Equity, Inc., a Florida corporation (together
with its successors and assigns, the “Company”), and Thomas C. Brockwell
(the “Executive”);

W I T N E S S E T H:

      WHEREAS, the Executive currently serves as the Company’s Senior Vice
President; and

      WHEREAS, the Company and the Executive desire to set forth the terms and
conditions of the Executive’s employment in this Agreement.

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive (the
“Parties”) agree as follows:

      1.     Definitions. Capitalized terms not otherwise defined herein
shall have the meanings set forth in Exhibit A.

      2.      Term. The Company hereby employs the Executive under this
Agreement, and the Executive hereby accepts such employment for a term
commencing as of the Effective Date and ending on December 31, 2004 (the
“Original Term”); provided, however, that the term of employment
hereunder shall thereafter be automatically extended for an unlimited number of
additional one-year periods (each, an “Additional Term;” the Original
Term and any Additional Terms collectively, the “Term”) unless, at least
90 days prior to the expiration of the Term, either Party gives notice to the
other that such Party is electing not to so extend the Term. Notwithstanding
the foregoing, the Term may be earlier terminated in strict accordance with the
provisions of Section 7 hereof.

      3.      Positions, Duties and Location.

           (a)     During the Term, the Executive shall serve as the Senior Vice
President of the Company; shall have all authorities, duties and
responsibilities customarily exercised by an individual serving as the Senior
Vice President at an entity of the size and nature of the Company; shall have
such other duties, authorities and responsibilities as the Company’s Chief
Executive Officer may from time to time reasonably designate, consistent with
the foregoing; and shall report solely and directly to the Company’s Chief
Executive Officer.

           (b)     During the Term, the Executive shall devote substantially all of his
business time and efforts to the business and affairs of the Company. However,
nothing shall preclude the Executive from the following (provided that on or
prior to the date that this Agreement is fully executed, the Executive gives
the Company’s Board of Directors (the “Board”) or its Chairman a complete list
of all boards of business entities, trade associations and charitable
organizations on which the Executive currently serves as well as any other
business, charitable or community activities of the Executive on which the
Executive spends a substantial
amount of time): (i) serving on the boards of a reasonable number of
business entities, trade

 

 

 associations and charitable organizations (provided
that the Executive shall give the Board or its Chairman prior written notice
before joining any new business board after the date that this Agreement is
fully executed), (ii) engaging in charitable activities and community affairs,
(iii) accepting and fulfilling a reasonable number of speaking engagements, and
(iv) managing his personal investments and affairs, including his investment in
the Crocker Realty Trust, Inc., Crocker & Associates L.P. and their Affiliates;
provided that such activities do not either individually or in the
aggregate interfere with the proper performance of his duties and
responsibilities hereunder and are not likely to be contrary to the Company’s
interests.

           (c)     During the Term, the Executive’s principal office, and principal place
of employment, shall be in Boca Raton, Florida.

      4.     Base Salary. Commencing as of the Effective Date, the Executive
shall receive an annualized base salary of $225,000, payable in accordance with
the regular payroll practices applicable to senior executives of the Company
generally, but no less frequently than monthly (“Base Salary”). The
Base Salary shall be reviewed no less frequently than annually during the Term
for increase in the discretion of the Board (or its compensation committee).
The Base Salary shall not be decreased at any time, or for any purpose, during
the Term (including, without limitation, for the purpose of determining
benefits due under Section 7 hereof) without the prior written consent of the
Executive.

      5.     Incentive Awards. During the Term, the Executive shall be a
participant in the Compensation Plan for Senior Officers of Koger Equity (the
“Plan”), and shall accordingly be entitled to receive annual cash
bonuses and annual long-term incentive awards in accordance with the Plan. No
amendment of the Plan, or of the terms of any award granted under the Plan,
that is adverse to the interests of the Executive shall be effective as to
bonuses and awards granted to, or earned by, the Executive during the Term.

      6.     Other Benefits.

           (a)     Employee Benefits. During the Term, the Executive shall be
entitled to participate in all employee benefit plans, programs and
arrangements made available to other senior executives of the Company
generally, including, without limitation, pension, profit-sharing, income
deferral, savings, 401(k), and other retirement plans or programs, medical,
dental, vision, prescription drug, hospitalization, short-term and long-term
disability and life insurance plans and programs, accidental death and
dismemberment protection, travel accident insurance, and any other employee
benefit plan, program or arrangement that may from time to time be made
available to other senior executives of the Company generally, including any
plans, programs or arrangements that supplement the above-listed types of
plans, programs or arrangements, whether funded or unfunded, subject to the
terms of the applicable plan documents and generally applicable Company
policies, in each case on terms and conditions that are no less favorable to
him than those applying to other senior executives of the Company generally.
To the extent that post-retirement welfare and other benefits then exist, the
Executive shall be entitled to post-retirement welfare and other benefits on
terms and conditions that are no less favorable to him than those applying to
other senior executives of the Company generally. Nothing in this Section 6(a)
shall be construed to require the Company to establish or maintain
any particular employee or post-retirement benefit plan, program or
arrangement except as

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 expressly set forth elsewhere in this Agreement. The
Company may, to the extent consistent with the foregoing, alter, modify,
supplement or delete its employee and post-retirement benefit plans at any time
as it sees fit without recourse by the Executive.

           (b)     Fringe Benefits, Perquisites and Vacations. During the Term,
the Executive shall be entitled (i) to participate in all fringe benefits and
perquisites made available to other senior executives of the Company generally,
in each case on terms and conditions that are no less favorable to him than
those applying to other senior executives of the Company generally and (ii) to
no less than two weeks’ paid vacation per calendar year (pro-rated for partial
calendar years) which, if not used, may be carried over from year to year with
the approval of the Company’s Chief Executive Officer.

           (c)     Reimbursement of Business and Other Expenses. The Executive
shall be promptly reimbursed for all expenses reasonably incurred by him in
connection with his service under this Agreement, subject to documentation in
accordance with reasonable policies applying to senior executives of the
Company generally. Such reimbursable expenses will include the expenses
(including, without limitation, transportation, meals and lodging costs)
incurred by the Executive for travel between the Company’s offices.

      7.     Termination of Employment.

           (a)     Termination Due to Death or Disability, Voluntary Termination and
Termination for Cause.

                (i)     In the event that the Executive’s employment hereunder is terminated
prior to expiration of the Term (i) due to his death or Disability, (ii) on the
Executive’s own initiative or (iii) for Cause, the Executive, his estate or his
beneficiaries (as the case may be) shall be entitled to the benefits described
in Section 7(d) hereof, shall not receive any annual cash bonus under Section 5
hereof for the year of termination and, with respect to the long-term incentive
awards granted to the Executive under Section 5 hereof, any share units that
are not both earned and vested as of the Termination Date shall be immediately
forfeited.

                (ii)     Neither Party may terminate the Executive’s employment hereunder for
Disability without first giving 15 days’ written notice of such termination to
the other Party.

                (iii)     No termination of the Executive’s employment hereunder for Cause
shall be effective as a termination for Cause unless the provisions of this
Section 7(a)(iii) shall first have been complied with. The Executive shall be
given written notice by the Board of its intention to terminate him for Cause,
such notice (the “Cause Notice”) (x) to state in reasonable detail the
particular circumstances that constitute the grounds on which the proposed
termination for Cause is based, (y) to be given no later than 180 days after
the Board first learns of such circumstances and (z) to include a copy of a
resolution duly adopted by at least two-thirds of the entire membership of the
Board at a meeting of the Board which was called for the purpose of considering
such termination and at which the Executive and his representative had the
right to attend and address the Board, finding that, in the good faith
determination of the
Board, Cause to terminate the Executive’s employment hereunder on the
stated grounds existed.

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      The Executive shall have 10 days after receiving such
Cause Notice in which to cure such grounds to the extent such cure is possible.
To the extent cure is not possible, the Executive’s employment hereunder shall
be terminated as of the 10th day after receiving the Cause Notice. If he fails
to cure such grounds within the permitted 10 day period, as determined in good
faith by the Board, the Executive’s employment hereunder shall be terminated as
of the 10th day after receiving the Cause Notice. Any determination by the
Board that Cause existed, or that cure was not achieved, shall (for avoidance
of doubt) be subject to de novo review, at the Executive’s
election, through arbitration in accordance with Section 13 hereof.

      (b)     Termination Without Cause. In the event that the Executive’s
employment hereunder is terminated by the Company prior to the expiration of
the Term other than for Disability or death or for Cause in
accordance with Section 7(a) hereof, he shall, subject to the provisions of
Section 7(f) hereof, be entitled to:

           (i)     an amount, payable in a lump sum as soon as practicable following the
Termination Date, equal to the product of (x) the sum of his annual Base
Salary at the rate in effect as of the Termination Date plus an amount
equal to the average annual cash bonus earned by him for the three (3) calendar
years prior to the Termination Date (or for all consecutive full calendar years
of employment if he was employed by the Company for fewer than three (3) full
calendar years), multiplied by (y) the number of whole months
remaining in the Term (but not less than 24) divided by (z) 12;

           (ii)     an annual cash bonus under the Plan for the year of termination,
determined and paid at the end of such year (x) as if the Executive’s
employment hereunder had continued, (y) as if “target” performance levels had
been attained on all individual performance goals and (z) using actual
performance as against corporate goals (i.e., shareholder return and
FFO), provided that the amount actually paid shall be prorated based on
the number of days during the year of termination on which the Executive was
employed by the Company;

           (iii)     with respect to long-term incentive awards granted to the Executive
under Section 5 hereof, (A) if the applicable performance period ended on or
prior to the Termination Date, any earned but unvested share units shall vest
as of the Termination Date, (B) if the applicable performance period did not
end on or prior to the Termination Date, the number of share units earned by
the Executive shall be determined as of such date as if the performance period
had ended on such date (with rates of return accordingly measured over the
shortened performance period rather than the originally scheduled three-year
performance period), and any units earned shall vest as of such date, without
proration, and (C) except to the extent otherwise provided in an applicable
deferral election of the Executive, any share unit that vests pursuant to this
clause (iii) shall pay out promptly after vesting;

           (iv)     continued participation, for the Executive and his dependents,
through the later of the end of the Original Term and the first anniversary of
the Termination Date, in all medical, dental, vision, prescription drug,
hospitalization and health insurance coverages and benefits in which they were
participating as of the Termination Date, on terms and conditions that are no
less favorable to them than those that apply to other participants generally,
and with continuation coverage benefits under group health plans as
required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended, commencing following

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 such period, provided, that such
entitlements shall be reduced to the extent that equivalent coverages and
benefits (determined on a coverage-by-coverage and benefit-by-benefit basis)
are provided under the plans, programs or arrangements of a subsequent
employer, and provided, further, that to the extent that the
Executive, or any of his dependents, is precluded from continuing full
participation in any coverage or benefit as provided in this Section 7(b)(iv),
the Executive shall be entitled to the after-tax economic equivalent of any
coverage or benefit foregone, for which purpose the economic equivalent shall
be deemed to be the total cost of obtaining such coverage or benefit on an
individual basis, with payment of such after tax economic equivalent to be made
quarterly in advance, without discount; and

           (v)     the benefits described in Section 7(d) hereof

      (c)     Expiration of the Term. In the event that the Executive’s
employment hereunder terminates by expiration of the Term pursuant to notice of
non-extension in accordance with Section 2 hereof, the Executive shall be
entitled to:

           (i)     with respect to long-term incentive awards granted to the Executive
under Section 5 hereof, (A) if the applicable notice of non-extension was given
by the Company, (x) if the applicable performance period ended on or prior to
the Termination Date, any earned but unvested share units shall vest as of the
Termination Date, (y) if the applicable performance period did not end on or
prior to the Termination Date, the number of share units earned by the
Executive shall be determined as of such date as if the performance period had
ended on such date (with rates of return accordingly measured over the
shortened performance period rather than the originally scheduled three-year
performance period), and any units earned shall vest as of such date, without
proration, and (z) except to the extent otherwise provided in an applicable
deferral election of the Executive, any share unit that vests pursuant to this
clause (i)(A) shall pay-out promptly after vesting; and (B) if the applicable
notice of non-extension was given by the Executive, (x) if the applicable
performance period ended on or prior to the Termination Date, any earned but
unvested share units shall vest as of the Termination Date, (y) if the
applicable performance period did not end on or prior to the Termination Date,
the number of share units earned by the Executive shall be determined as of
such date as if the performance period had ended on such date (with rates of
return accordingly measured over the shortened performance period rather than
the originally scheduled three-year performance period), and any units earned
shall vest as of such date, provided that the number of units earned and
vested pursuant to this clause (i)(B) shall be prorated based on the total
number of days in the shortened performance period as compared with the total
number of days in the originally scheduled three-year performance period and
(z) except to the extent otherwise provided in an applicable deferral election
of the Executive, any share unit that vests pursuant to this clause (i)(B)
shall pay out promptly after vesting; and

           (ii)     the benefits described in Section 7(d) hereof.

      (d)     Miscellaneous. On any termination of the Executive’s
employment hereunder, he shall be entitled to:

           (i)     Base Salary through the Termination Date;

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           (ii)     the balance of any annual, long-term, or other incentive award earned
(but not yet paid or forfeited) with respect to any performance period ending
on or before the Termination Date;

           (iii)     a lump-sum payment in respect of accrued but unused vacation days
(up to 25 days) at his Base Salary rate in effect as of the Termination Date;
and

           (iv)     other or additional benefits in accordance with applicable plans,
programs and arrangements of the Company and its Affiliates (including, without
limitation, Sections 5, 6 and 8 hereof and any Stock Option or Restricted Stock
agreement or award).

      (e)     No Mitigation; No Offset. In the event of any termination of
the Executive’s employment hereunder, the Executive shall be under no
obligation to seek other employment or otherwise mitigate the obligations of
the Company under this Agreement, and there shall be no offset against amounts
or benefits due the Executive under this Agreement or otherwise (except as
expressly set forth in Section 7(b)(iv) above) on account of (x) any Claim that
the Company may have against him, except upon the Company’s obtaining of a
final unappealable judgment against him or (y) any remuneration or other
benefit earned or received by the Executive after such termination. Any
amounts due under this Section 7 are considered to be reasonable by the Company
and are not in the nature of a penalty. Notwithstanding the foregoing, the
Company may offset amounts due the Executive under this Agreement against any
amounts then due under any loan made by the Company to the Executive pursuant
to any agreement entered into after the Effective Date.

      (f)     Release. As a condition to receiving the payments and benefits
described in Section 7(b) or (g) hereof, the Executive must execute, deliver to
the Company, and not revoke (within the time period permitted by applicable
law) a general release substantially in the form attached hereto as Appendix I.
No payments or benefits provided for in Section 7(b) or (g) hereof (other than
payments and benefits that would have been due, under Section 7(d) hereof, even
if the termination of the Executive’s employment had been for Cause in
accordance with Section 7(a)(iii) hereof) will be made until the general
release has become effective.

      (g)     Termination for Good Reason after a Change in Control. In the
event that a Change in Control occurs during the Term, the Executive may
terminate his employment hereunder for Good Reason, on 10 days’ notice to the
Company, if he first provides the Company with a Notice of Termination for Good
Reason and if the grounds claimed in such notice to constitute Good Reason are
not corrected prior to the date of requested cure set forth in such notice.
Such notice shall be provided within 90 days after the Executive first learns
of the occurrence of any of the events that are claimed in such notice to
constitute Good Reason. Any failure by the Executive to set forth in a Notice
of Termination for Good Reason any facts or circumstances that contribute to
the showing of Good Reason shall not waive any right of the Executive hereunder
or preclude him from asserting such fact or circumstances in enforcing his
rights hereunder. In the event that the Executive terminates his employment
hereunder for Good Reason following a Change in Control prior to the expiration
of the Term, he shall, subject to the
provisions of Section 7(f) hereof, have the same entitlements as provided
under Section 7(b) hereof in the case of a termination by the Company without
Cause.

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      8.     Change in Control.

           (a)     In the event that a Change in Control occurs while the Executive is
employed hereunder, the Executive shall be entitled, at his election, to the
following with respect to his long-term incentive awards under Section 5
hereof: (i) if the applicable performance period ended on or prior to the date
of such Change in Control, any earned but unvested share units shall vest as of
such date, (ii) if the applicable performance period did not end on or prior to
the date of such Change in Control, the number of share units earned by the
Executive shall be determined as of such date as if the performance period had
ended on such date (with rates of return accordingly measured over the
shortened performance period rather than the originally scheduled three-year
performance period), and any units earned shall vest as of such date without
proration, and (iii) except to the extent otherwise provided in an applicable
deferral election of the Executive, any share unit that vests pursuant to this
clause (a) shall pay out promptly after vesting.

           (b)     In the event that a Change in Control occurs, the Executive shall be
entitled to other or additional benefits (if any) in accordance with applicable
plans, programs and arrangements of the Company and its Affiliates (including,
without limitation, any outstanding Stock Option).

           (c)     Excise Tax. In the event that any payment or benefit made or
provided to or for the benefit of the Executive in connection with this
Agreement, his employment with the Company, or any termination of such
employment (a “Payment”) is determined to be subject to any excise tax
(“Excise Tax”) imposed by Section 4999 of the Code (or any successor to
such Section), the Executive shall be entitled to receive, prior to the time
any Excise Tax is payable with respect to such Payment (through withholding or
otherwise), an additional amount which, after the imposition of all income,
employment, excise and other taxes thereon, is equal to the sum of the Excise
Tax on such Payment plus any penalty and interest assessments associated
with such Excise Tax. The determination of whether any Payment is subject to
an Excise Tax and, if so, the amount to be paid to the Executive and the time
of payment pursuant to this Section 8(c) shall be made by an independent
auditor (the “Auditor”) paid by the Company. The Auditor shall be the
Company’s regular independent auditor unless the Executive reasonably objects
to the use of that firm, in which event the Auditor shall be a nationally
recognized United States public accounting firm chosen by the Executive in
consultation with the Company. The Parties shall cooperate with each other in
connection with any Proceeding or Claim relating to the existence or amount of
any liability for Excise Tax. All expenses relating to any such Proceeding or
Claim (including reasonable attorneys’ fees and other expenses incurred by the
Executive in connection therewith) shall be paid by the Company, promptly upon
request by the Executive, and any such payment shall (for the avoidance of
doubt) be subject to gross-up under this Section 8(c) in the event that the
Executive is subject to Excise Tax on it.

      9.     Indemnification.

           (a)     If the Executive is made a party, is threatened to be made a party, or
reasonably anticipates being made a party, to any Proceeding by reason of the
fact that he is or was a director, officer, member, employee, agent, manager,
trustee, consultant or representative of the Company or any of its Affiliates
or is or was serving at the request of the Company or any

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 of its Affiliates, or
in connection with his service hereunder, as a director, officer, member,
employee, agent, manager, trustee, consultant or representative of another
Person, or if any Claim is made, is threatened to be made, or is reasonably
anticipated to be made, against the Executive that arises out of or relates to
the Executive’s service in any of the foregoing capacities, then the Executive
shall promptly be indemnified and held harmless to the fullest extent permitted
or authorized by the Certificate of Incorporation or Bylaws of the Company, or
if greater, by applicable law, against any and all costs, expenses, liabilities
and losses (including, without limitation, attorneys’ and other professional
fees and charges reasonably incurred, judgments, interest, expenses of
investigation reasonably incurred, penalties, fines, ERISA excise taxes or
penalties, and amounts paid or to be paid pursuant to settlements reasonably
entered into) incurred or suffered by the Executive in connection therewith,
and such indemnification shall continue as to the Executive even if he has
ceased to be a director, officer, member, employee, agent, manager, trustee,
consultant or representative of the Company or other Person and shall inure to
the benefit of his heirs, executors and administrators. The Executive shall be
entitled to prompt advancement of any and all costs and expenses (including,
without limitation, attorneys’ and other professional fees and charges)
incurred by him in connection with any such Proceeding or Claim, or in
connection with seeking to enforce his rights under this Section 9(a) hereof,
any such advancement to be made within 15 days after the Executive gives
written notice, supported by reasonable documentation, requesting such
advancement. Such notice shall include an undertaking by the Executive to
repay the amount advanced if he is ultimately determined not to be entitled to
indemnification against such costs and expenses. The Executive shall be deemed
to have met any standard of conduct required for indemnification unless the
contrary shall be established by the Company. Nothing in this Agreement shall
operate to limit or extinguish any right to indemnification, advancement of
expenses, or contribution that the Executive would otherwise have (including,
without limitation, by agreement or under applicable law).

           (b)     A directors’ and officers’ liability insurance policy (or policies)
shall be kept in place, during the Term and thereafter until the sixth
anniversary of the Termination Date, providing coverage to the Executive that
is no less favorable to him in any respect (including, without limitation, with
respect to scope, exclusions, amounts, and deductibles) than the coverage then
being provided to other present or former senior executives of the Company
generally. This Section 9(b) does not obligate the Company to maintain a
directors’ and officers’ liability insurance policy.

      10.     Restrictive Covenants.

           (a)     During the Term and at all times thereafter, the Executive shall not,
without the prior written consent of the Company, use any Confidential
Information for any purpose other than on the Company’s behalf or divulge,
disclose or make accessible to any other Person any Confidential Information
except (i) to the Company and its Affiliates, or to any authorized agent
or representative of any of them, (ii) in connection with performing his duties
hereunder, (iii) when required to do so by law or by a court, governmental
agency,
legislative body, or arbitrator or other Person with jurisdiction to order
him to divulge, disclose or make accessible such information, (iv) in the
course of any Proceeding under Section 10(c) or 13 hereof, or (v) in confidence
to an attorney or other professional advisor for the purpose of securing
professional advice. In the event that the Executive is required to disclose
any

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Confidential Information pursuant to clause (iii) or (iv) of the
immediately preceding sentence, he shall (A) promptly give the Company notice
that such disclosure is or may be made, and (B) cooperate with the Company, at
its reasonable request and sole expense, in seeking to protect the
confidentiality of the Confidential Information (including, in the event that
the Company shall have paid for the retention by him of his own counsel, only
disclosing that portion of the Confidential Information which he is advised by
such counsel is legally required). Upon any termination of his employment with
the Company, he shall immediately return or destroy all Confidential
Information that is in physical (including electronic) form and is then in his
possession, including all notes, copies, reproductions, summaries, analysis,
and extracts thereof then in his possession, provided that the Executive may in
any event retain his personal rolodex, his personal correspondence files, and
documents relating to his compensation, benefits and other entitlements.

           (b)     During the Term, and (provided that neither the Company nor any of its
Affiliates shall, on or after the Termination Date, have materially breached
any of their material obligations to the Executive under this Agreement or
otherwise, which breach shall have continued uncured for 15 days after the
Executive has given written notice requesting cure) for a period of two (2)
years thereafter, the Executive shall not, without the prior written consent of
the Company and other than in connection with his services hereunder during the
Term, become employed in an executive capacity similar to the capacity in which
he served the Company hereunder by any of the following:

                (i)     any southeastern public office REIT;

                (ii)     any southeastern private office REIT with net assets in excess of
$200 million; or

                (iii)     Apollo Real Estate Advisors, L.P., or any of its Affiliates, with
respect to any business or asset acquired from the Company.

           (c)     In the event of any actual or threatened breach by the Executive of
any of the provisions of Sections 10(a) or (b) hereof, the Company shall be
entitled to seek an injunction, through arbitration in accordance with Section
13 hereof or from any court with jurisdiction over the matter and the
Executive, restraining the Executive from violating such provision, without the
necessity of proving actual damages or the inadequacy of a legal remedy.

           (d)     All work performed by the Executive during the course of his
employment with the Company (whether alone or with others) in (i) creating,
developing, modifying, enhancing or maintaining computer programs, databases
and the like and/or (ii) creating, developing or modifying works to which
copyright protection may attach, shall be considered “works made for hire” to
the extent permitted under applicable copyright law and shall be the exclusive
property of the Company. To the extent such works are not considered works
made for hire, all right, title and interest in and to such works, including,
but not limited to, the
copyright, renewals and extensions thereof, is hereby assigned to the
Company and the Executive agrees to execute, promptly upon the Company’s
reasonable request and at its sole expense, any documents in relation to said
assignment as are reasonably necessary to perfect the Company’s exclusive
ownership therein.

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           (e)     The Executive hereby assigns all right, title and interest in and to
all inventions and methods (whether or not patentable or reduced to practice),
improvements, discoveries, techniques, formulae and processes, created,
developed or conceived by the Executive during the Term and relating to the
Company’s business. After termination of his employment, the Executive will
cooperate with the Company, at the Company’s reasonable request and sole
expense, in the protection and enforcement of the rights and property of the
Company in any invention, method, improvement, discovery, techniques, formulae
or process, assignable or assigned hereunder to the Company, applications for
patents therefor, and patents granted thereon. In the event the Company is
unable for any reason to secure such cooperation, the Executive hereby
irrevocably designates and appoints the Company, its officers and agents as his
agents and attorneys-in-fact to act, at the Company’s sole expense, for and on
the Executive’s behalf to execute and file any patent application and
assignments with the same legal force and effect as if executed by the
Executive, and to do all other lawfully permitted acts, in each case as
reasonably necessary to further the prosecution and issuance of patents
thereon.

           (f)     The Executive acknowledges and agrees that the Company is and will be
the sole and exclusive owner of all trademarks, service marks, patents,
copyrights, trade dress, trade secrets, business names, inventions, proprietary
know-how and information of any type, whether or not in writing and all other
intellectual property of the Company created by the Executive during; his
employment with the Company and relating to the Company’s business. The
Executive further acknowledges and agrees that any and all derivative works
based on intellectual property subject to this Section 10(f) hereof, created
during the Term shall be exclusively owned by the Company.

           (g)     Nothing in this Agreement shall be construed to grant the Executive
any right, title or interest in, or any license (express or implied) to use,
any intellectual property owned or used by the Company (including, without
limitation, any trademarks, trade dress, service marks, copyrights, trade
secrets, patents or proprietary know-how or information of any type, whether
written or not written) except solely in the course of his employment with the
Company.

           (h)     There shall be no contractual or similar restrictions on the
Executive’s conduct following termination of his employment hereunder, other
than restrictions expressly set forth in this Agreement and restrictions
enforceable solely by forfeiture of benefits to which he might otherwise be
entitled.

      11.      Assignability; Binding Nature.

           (a)     This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and assigns.

           (b)     No rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company except that such rights and
obligations may be assigned or transferred pursuant to a merger, consolidation
or other combination in which the Company is not the continuing entity, or a
sale or liquidation of all or substantially all of the business and assets of
the Company, provided that the assignee or transferee is the successor
to all or substantially all of the business and assets of the Company and such
assignee or transferee

10

 

expressly assumes the liabilities, obligations and
duties of the Company as set forth in this Agreement. In the event of any
merger, consolidation, other combination, sale of business and assets or
liquidation as described in the preceding sentence, the Company shall use its
best reasonable efforts to cause such assignee or transferee to promptly and
expressly assume the liabilities, obligations and duties of the Company
hereunder.

           (c)     No rights or obligations of the Executive under this Agreement may be
assigned or transferred by the Executive other than his rights to compensation
and benefits, which may be transferred only by will or by operation of law,
except to the extent otherwise provided in Section 15(e) hereof.

      12.     Representations.

           (a)     The Company represents and warrants that (i) it is fully authorized by
action of its Board (and of any other Person or body whose action is required)
to enter into this Agreement and to perform its obligations under it; (ii) the
execution, delivery and performance of this Agreement by it does not violate
any applicable law, regulation, order, judgment or decree or any agreement,
arrangement, plan or corporate governance document to which it is a party or by
which it is bound; and (iii) upon the execution and delivery of this Agreement
by the Parties, this Agreement shall be its valid and binding obligation,
enforceable against it in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally.

           (b)     The Executive represents and warrants that, to the best of his
knowledge and belief (i) delivery and performance of this Agreement by him does
not violate any applicable law, regulation, judgment or decree or any agreement
to which the Executive is a party or by which he is bound and (ii) upon the
execution and delivery of this Agreement by the Parties, this Agreement shall
be a valid and binding obligation of the Executive, enforceable against him in
accordance with its terms, except to the extent that enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally.

      13.     Resolution of Disputes. Any Claim arising out of or relating
to this Agreement, any other agreement between the Executive and the Company or
its Affiliates, the Executive’s employment with the Company, or any termination
thereof (collectively, “Covered Claims”) shall (except to the extent
otherwise provided in Section 10(c) hereof with respect to certain requests for
injunctive relief) be resolved by binding confidential arbitration, to be held
in Boca Raton, Florida, in accordance with the Commercial Arbitration Rules
(and not the National Rules for Resolution of Employment Disputes) of the
American Arbitration Association and this Section 13. Judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof. The Company shall promptly pay all costs and expenses (including
without limitation reasonable attorneys’ fees and
other charges of counsel) incurred by the Executive or his beneficiaries
in resolving any Covered Claim, subject to receiving a written undertaking from
the recipient to reimburse any such amounts paid to the extent that it is
finally determined that the Company substantially prevailed in respect of such
Covered Claim.

      14.     Notices. Any notice, consent, demand, request, or other
communication given to a Person in connection with this Agreement shall be in
writing and shall be deemed to have been

11

 

given to such Person (x) when
delivered personally to such Person or (y), provided that a written
acknowledgment of receipt is obtained, five days after being sent by prepaid
certified or registered mail, or two days after being sent by a nationally
recognized overnight courier, to the address (if any) specified below for such
Person (or to such other address as such Person shall have specified by ten
days’ advance notice given in accordance with this Section 14) or (z), in the
case of the Company only, on the first business day after it is sent by
facsimile to the facsimile number set forth below (or to such other facsimile
number as shall have specified by ten days’ advance notice given in accordance
with this Section 14), with a confirmatory copy sent by certified or registered
mail or by overnight courier in accordance with this Section 14.

      If to the Company:

	 	Benjamin C. Bishop, Jr.

50 North Laura Street

Suite 3625

Jacksonville, FL 32202

Phone #: (904) 354-5573

Fax #: (904) 354-7033

      and a copy to each of

	 	Harold F. McCart, Jr.

Boling & McCart

1000 Riverside Avenue

Suite 111

Jacksonville, FL 32204

Phone #: (904) 354-6543

Fax #: (904) 3 54-9009

	 	Lawrence K. Gragg

White & Case, LLP

First Union Financial Center

200 South Biscayne Blvd.

Suite 4900

Miami, FL 33131-2352

	 	 	 
	     If to the Executive:	 	
The address of his principal residence as
it appears in the Company’s records, with a copy to him (during the
Term) at his office in Boca Raton, Florida, and a copy to:

	 	Law Offices of Joseph E. Bachelder

780 Third Avenue, 29th Floor

New York, NY 10017

Attn: Robert M. Sedgwick, Esq.

Fax: 212-319-3070

12

 

      If to a beneficiary of the Executive:

                The address most recently specified by the Executive or the beneficiary.

      15.     Miscellaneous.

           (a)     Entire Agreement. This Agreement contains the entire
understanding and agreement between the Parties concerning the specific subject
matter hereof.

           (b)     Amendment or Waiver. No provision in this Agreement may be
amended unless such amendment is set forth in a writing that expressly refers
to the provision of this Agreement that is being amended and that is signed by
the Executive and by an authorized (or apparently authorized) officer of the
Company. No waiver by any Person of any breach of any provision of this
Agreement shall be deemed a waiver of any similar or dissimilar provision at
the same or any other time. To be effective, any waiver must be set forth in a
writing signed by the waiving Person and must specifically refer to the
provision of this Agreement whose breach is being waived.

           (c)     Inconsistencies. In the event of any inconsistency between any
provision of this Agreement and any provision of any employee handbook,
personnel manual, program, policy, or arrangement of the Company or any of its
Affiliates, or any provision of any agreement, plan, or corporate governance
document of any of them, the provisions of this Agreement shall control unless
the Executive otherwise agrees in a writing that expressly refers to the
provision of this Agreement whose control he is waiving.

           (d)     Headings. The headings of the Sections and sub-sections
contained in this Agreement are for convenience only and shall not be deemed to
control or affect the meaning or construction of any provision of this
Agreement.

           (e)     Beneficiaries/References. The Executive shall be entitled, to
the extent permitted under applicable law, to select and change a beneficiary
or beneficiaries to receive any compensation or benefit hereunder following the
Executive’s death by giving written notice thereof. In the event of the
Executive’s death or a judicial determination of his incompetence, references
in this Agreement to the Executive shall be deemed, where appropriate, to refer
to his beneficiary, estate or other legal representative.

           (f)     Survivorship. Except as otherwise set forth in this Agreement,
the respective rights and obligations of the Parties hereunder shall survive
any termination of the Executive’s employment.

           (g)     Severability. To the extent that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, in whole or in part,
the remaining provisions of this Agreement shall remain in full force and
effect so as to achieve the intentions of the Parties, as set forth in this
Agreement, to the maximum extent possible.

           (h)     Withholding Taxes. The Company may withhold from any amount or
benefit payable under this Agreement taxes that it is required to withhold
pursuant to any applicable law or regulation.

13

 

           (i)     Governing Law. This Agreement shall be governed, construed,
performed and enforced in accordance with its express terms, and otherwise in
accordance with the laws of the State of Florida, without reference to
principles of conflict of laws.

           (j)     Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall be deemed to be one and the same instrument. Signatures
delivered by facsimile shall be effective for all purposes.

      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first set forth above.

	 	 	 	 	 
	Date: March 21, 2003	 	Koger Equity, Inc.
	 
	 	 	 	 	 
	 
	 	 	
By:	 	/s/ Benjamin C. Bishop, Jr.

	 	 	
Name:

Title:
	 	
Benjamin C. Bishop, Jr.

Chairman of the Compensation of the Board of Directors of Koger Equity, Inc.
	 
	 	 	 	 	 
	 
	 	 	The Executive
	 
	 	 	 	 	 
	 
	Date:  3/28/03 	 	/s/ Thomas C. Brockwell

Thomas C. Brockwell

14

 

EXHIBIT A

DEFINITIONS

      a.     “Affiliate” of a Person shall mean any Person that directly or
indirectly controls, is controlled by, or is under common control with, such
Person.

      b.     “Agreement” shall mean this Employment Agreement, which includes
for all purposes its Exhibit A.

      c.     “Cause” shall mean:

           i.     the Executive is convicted of, or pleads guilty or nolo
contendere to, a felony (other than a felony involving a traffic
violation or as a result of vicarious liability); or

           ii.     willful misconduct by the Executive with regard to the Company that
has a material adverse effect on the Company; provided that misconduct shall
not be deemed “willful” unless the Executive engages in it in bad faith and
without a reasonable belief that it is in, or not opposed to, the interests of
the Company.

      d.     “Change in Control” shall mean the occurrence of any of the
following events:

           i.     the Company ceases to be a publicly owned corporation having at least
500 stockholders;

           ii.     there occurs any event or series of events that would be required to
be reported as a change of control in response to item 1(a) on a Form 8-K filed
by the Company under the Securities Act of 1933 or in any other fling by the
Company with the Securities and Exchange Commission unless the person, as that
term is defined or used in Section 13(d) or 14(d)(2) of the Securities Exchange
Act of 1934 (for purposes of this definition, “Person”), acquiring control is
an affiliate of the Company as of the date the stockholders of the Company
approved the Koger Equity, Inc. 1998 Equity and Cash Incentive Plan;

           iii.     the Company executes an agreement of acquisition, merger, or
consolidation which contemplates that after the effective date provided for in
the agreement all or substantially all of the business and/or assets of the
Company will be controlled by another Person; provided, however, for purposes
of this subparagraph (iii) that if such an agreement requires as a condition
precedent approval by the Company’s shareholders of the agreement or
transaction, a Change in Control shall not be deemed to have taken place unless
and until such approval is secured and if the voting shareholders of such other
Person shall, immediately after such affective date, be substantially the same
as the voting shareholders of the Company immediately prior to such effective
date, the execution of such agreement shall not, by itself, constitute a Change
in Control;

           iv.     any Person (other than the Company, a majority-owned subsidiary of the
Company, an employee benefit plan maintained by the Company or a majority-owned
subsidiary of the Company) becomes the beneficial owner, directly or indirectly
(either as a

15

 

 result of the acquisition of securities or as the result of an arrangement
or understanding, including the holding of proxies, with or among security
holders), of securities of the Company representing 25% or more of the votes
that could then be cast in an election for members of the Board unless within
15 days of being advised that such ownership level has been reached, the Board
adopts a resolution approving the acquisition of that level of securities
ownership by such Person;

           v.     during any period of twenty-four (24) consecutive months, commencing
after the date the Company’s shareholders approved the Koger Equity, Inc. 1998
Equity and Cash Incentive Plan, individuals who at the beginning of such
twenty-four (24) month period were directors of the Company shall cease to
constitute at least a majority of the Board, unless the election of each
director who was not a director at the beginning of such period has been
approved in advance by directors representing at least two-thirds of (i) the
directors then is in office who were directors at the beginning of the
twenty-four (24) month period or (ii) the directors specified in clause (i)
above plus directors whose election has been so approved by directors specified
in clause (i) above, or

           vi.     (x) the Company combines with another entity and is the surviving
entity, or (y) all or substantially all of the assets or business of the
Company are disposed of pursuant to a sale, merger, consolidation, liquidation,
dissolution or other transaction or series of transactions (any event described
in clause (x) or (y) being a “Triggering Event”), unless the holders of Voting
Securities of the Company immediately prior to such Triggering Event own,
directly or indirectly, by reason of their ownership of Voting Securities of
the Company immediately prior to such Triggering Event, at least a majority of
the Voting Securities (measured both by number of Voting Securities and by
voting power and excluding all Voting Securities owned by all new equity
investors that invest in the Company simultaneously with the occurrence of the
Triggering Event) of (q) in the case of a combination in which the Company is
the surviving entity, the surviving entity and (r) in any other case, the
entity (if any) that succeeds to all or substantially all of the Company’s
business and assets.

      e.     “Claim” shall include, without limitation, any claim, demand,
request, investigation, dispute, controversy, threat, discovery request, or
request for testimony or information.

      f.     “Code” shall mean the Internal Revenue Code of 1986, as amended.
Any reference to a particular section of the Code shall include any provision
that modifies, replaces or supersedes such section.

      g.     “Common Stock” shall mean common stock, par value $.01, of the
Company.

      h.     “Confidential Information” shall mean all confidential or
proprietary information developed or used by the Company or any of its
Affiliates, whether or not such information is in tangible form, including any
confidential or proprietary customer lists, marketing strategies, plans and
programs, trade secrets or other confidential knowledge or information with
respect to the operations or finances of the Company or any of its subsidiaries
or with respect to confidential or secret processes, services, techniques,
customers or plans with

16

 

 respect to the Company or its subsidiaries, but shall not include any
information that (x) has previously been disclosed to the public, or is in the
public domain, other than as a result of the Executive’s breach of Section
10(a) hereof, or (y) is known or generally available to the public or within
any trade or industry of the Company or any of its Affiliates.

      i.     “Disability” shall mean the Executive’s inability, due to
physical or mental incapacity, to substantially perform his duties and
responsibilities hereunder for either (x) 180 consecutive days or (y) an
aggregate of 270 days in any 365 day period, in either case, as determined
below. The Executive may, and at the request of the Company shall, submit to
medical examinations by a physician selected by the Company, to whom the
Executive has no reasonable objection, at the times selected by the Company, to
determine whether the Executive is unable, due to physical or mental
incapacity, to substantially perform his duties hereunder. Such determination
shall, if made reasonably and in good faith, be conclusive. If the Executive
unreasonably refuses to submit to such medical examinations, the Company’s
determination as to whether the Executive is unable, due to physical or mental
incapacity, to substantially perform his duties hereunder shall be conclusive.

      j.     “Executive” shall have the meaning set forth in the preamble to
this Agreement, as modified by Section 15(e) hereof.

      k.     “Good Reason” shall mean the occurrence of any of the following
events during the Term without the Executive’s prior written consent and
without full cure prior to the date for cure set forth in the Notice of
Termination for Good Reason (with a minimum cure period of 10 days after the
Executive provides the Company with the Notice of Termination for Good Reason):

           i.     any failure to continue the Executive as Senior Vice President of the
Company (except in connection with the termination of the Executive’s
employment for Cause or Disability or as a result of the Executive’s death or
temporarily as a result of the Executive’s illness or other absence):

           ii.     any material diminution in the responsibilities or authorities which
the Executive possessed immediately prior to the Change in Control (except in
connection with the termination of the Executive’s employment for Cause or
Disability or as a result of the Executive’s death or temporarily as a result
of the Executive’s illness or other absence); the assignment to him of duties
that are materially inconsistent with, or materially impair his ability to
perform, the duties assigned to him immediately prior to the Change in Control;
or any change in the reporting structure so that the Executive is required to
report, in his role as Senior Vice President of the Company, to any Person
other than the Company’s Chief Executive Officer, the Board or the Chairman of
the Board;

           iii.     any relocation of the Executive’s principal office, or principal
place of employment, to a location that is more than 35 miles from (x) its
location immediately prior to the Change in Control and (y) the Executive’s
principal residence at the time of the relocation;

17

 

           iv.     any material breach by the Company of any of its obligations under
Sections 3 through 6, 8 or 9 hereof, or of any of its representations or
warranties in Section 12(a) hereof; or

      v.     any failure by any successor to all or substantially all of the
Company’s business or assets (whether by reconstruction, amalgamation,
combination, merger, consolidation, sale, liquidation, dissolution or
otherwise) to assume, in a writing delivered to the Executive at the time of
such successorship transaction, the Company’s obligations hereunder.

      l.     “Notice of Termination for Good Reason” shall mean a notice that
sets forth in reasonable detail the circumstances claimed to provide a basis
for termination for Good Reason and that sets forth a date, not less than 10
days nor more than 60 days after the date the Company receives the notice, by
which cure of the circumstances claimed to constitute a basis for termination
for Good Reason is requested; provided, however, that in the case of events set
forth in (i) and (ii) of the definition of Good Reason, the date may be five
days after the date the Company receives the notice.

      m.     “Person” shall mean any individual, corporation, partnership,
limited liability company, joint venture, trust, estate, board, committee,
agency, body, employee benefit plan, or other person or entity.

      n.     “Proceeding” shall include, without limitation, any actual,
threatened or reasonably anticipated action, suit or proceeding, whether civil,
criminal, administrative, investigative, appellate, formal, informal or other.

      o.     “Restricted Stock” shall mean any compensatory restricted
shares, phantom shares, or analogous rights granted by or on behalf of the
Company or any of its Affiliates, and any security or right received in respect
of any of the foregoing shares or rights.

      p.     “Stock Option” shall mean any compensatory option or warrant to
acquire securities of the Company or any of its Affiliates; any compensatory
stock appreciation right, phantom stock option or analogous right granted by or
on behalf of the Company or any of its Affiliates; and any security or right
received in respect of any of the foregoing options, warrants or rights.

      q.     “Term” shall have the meaning set forth in Section 2 hereof.

      r.     “Termination Date” shall mean the date on which the Executive’s
employment hereunder terminates in accordance with this Agreement.

      s.     “Voting Securities” shall mean issued and outstanding securities
of any class or classes having general voting power, under ordinary
circumstances in the absence of contingencies, to elect the members of the
Board.

18

 

APPENDIX I

FORM OF GENERAL RELEASE

      In consideration of certain payments and benefits to be provided to him
pursuant to Section 7 of the Employment Agreement (the “Employment Agreement”)
entered into as of January 1, 2002, by and between himself and Koger Equity,
Inc. (the “Company”), Thomas C. Brockwell (the “Executive,”), for
himself, his heirs, assigns, successors, executors, and administrators
(hereinafter collectively referred to as the “Releasors”), hereby fully
releases and discharges (i) the Company, each of its predecessors, successors,
and “Affiliates” (as such term is defined in the Employment Agreement) forever
and unconditionally, from any and all manner of action, claim, demand, damages,
cause of action, debt, sum of money, contract, covenant, controversy,
agreement, promise, judgment, and demand whatsoever, in law or equity, known or
unknown, existing or claimed to exist (hereinafter, collectively referred to as
“Claims”) arising from the beginning of time through the execution of
this General Release and (ii) the officers, directors, employees, agents,
representatives, consultants, and independent contractors of the parties listed
in (i) and/or anyone else connected with each of them (the parties described in
(i) and (ii) collectively, the “Released Parties”), forever and
unconditionally, from any and all Claims that arise out of, or relate to, the
Executive’s employment with the Company or the termination of such employment
arising from the beginning of time through the execution of this General
Release, in each case, including (without limitation) any such Claim (i) that
is a discrimination claim based on race, religion, color, national origin, age,
sex, sexual orientation or preference, disability or retaliation, (ii) that is
based on any cause of action under the following in each case as amended: the
Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act
of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1968, the Equal
Pay Act of 1963, the Americans with Disabilities Act of 1990, the Family and
Medical Leave Act of 1993, the Worker Adjustment and Retraining Notification
Act, the Employee Retirement Income Security Act of 1974 (except any valid
claim to recover vested benefits, if applicable), (iii) that is based on any
applicable Executive Order program, and their state or local counterparts,
including, without limitation, the Florida Civil Rights Act of 1992, and/or any
other federal, state or local law, rule, regulation, constitution or ordinance,
(iv) that arises under any public policy or common law or under any practices
or procedure of the Company, (v) that is based on any claim for wrongful
termination, back pay, future wage loss, and/or (vi) that is based on any other
claim, whether in tort, contract or otherwise, or any claim for costs, fees or
other expenses, including attorneys’ fees; provided, however,
that nothing herein shall be deemed to affect or release any Claim (x) that
arises out of, or is preserved by, any of Sections 7 through 15 of the
Employment Agreement, including (without limitation) Section 7(d)(iv), or (y)
that is brought as a counter-claim in any proceeding. This General Release
shall become null and void in the event that the Company materially breaches,
after the Executive’s employment under the Employment Agreement terminates, any
material obligation to the Executive that arises under, or is preserved by, the
Employment Agreement.

      By signing this General Release, the Executive acknowledges that:

      (i) he has read and fully understands the terms of this General Release
and had the opportunity to negotiate its terms at the time he entered into the
Employment Agreement;

19

 

      (ii) he has been advised to consult with his attorneys, concerning the
terms of this General Release, and that he has done so to the extent he deems
necessary;

      (iii) he had ample opportunity to negotiate through his attorneys
concerning this General Release at the time he entered into the Employment
Agreement;

      (iv) he has agreed to execute this General Release knowingly, voluntarily,
with such advice from his counsel as he deemed appropriate, and was not
subjected to any undue influence or coercion in agreeing to its terms;

      (v) he has been given 21 days to consider this General Release, and
acknowledges that in the event that he executes this General Release prior to
the expiration of the 21 day period, he hereby waives the balance of said
period;

      (vi) he will have seven (7) days following his execution of this General
Release to revoke this General Release, and this General Release shall not
become effective or enforceable until the revocation period has expired. Any
revocation within this seven (7) day period must be submitted in writing and
personally delivered, or mailed, by 5:30 p.m. on the 7th day following his
execution of this General Release to [   ], Koger Equity, Inc.
[address]. No payments or benefits provided for in Section 7 of the Employment
Agreement (other than payments and benefits that would have been due under
Section 7(d) of the Employment Agreement even if the termination of the
Executive’s employment had been for cause in accordance with Section 7(a)(iii)
of the Employment Agreement) will be made until after the seven (7) day period
has expired and this General Release has become effective. If this General
Release is revoked by the Executive, then the Company shall not be required to
provide any of the payments and benefits otherwise required under Section 7 of
the Employment Agreement (other than payments and benefits that would have been
due under Section 7(d) of the Employment Agreement even if the termination of
the Executive’s employment had been for cause in accordance with Section
7(a)(iii) of the Employment Agreement); and

      (vii) no provision of this General Release may be modified, changed,
waived or discharged unless such waiver, modification, change or discharge is
agreed to in a writing that has been signed by the Company and the Executive.

	 	 	 
	 	 	
THE EXECUTIVE
	 
	 	 	 
	 
	 	 	
 

Thomas C. Brockwell
	 
	 	 	 
	 
	 	 	
Date:

20<PAGE>

                                                                    EXHIBIT 10.1

                            STOCK PURCHASE AGREEMENT

                                     BETWEEN

                         WORLD HEALTH ALTERNATIVES, INC.

                                       AND

                                CERTAIN INVESTORS
                            (AS LISTED ON SCHEDULE A)

                                      DATED

                                DECEMBER 24, 2003

<PAGE>

                            STOCK PURCHASE AGREEMENT

          This STOCK PURCHASE AGREEMENT (the "AGREEMENT") is made and entered
into as of 24th day of December, 2003 by and among World Health Alternatives,
Inc., a corporation organized and existing under the laws of the State of
Florida ("WHAI" or the "COMPANY"), certain investors, (hereinafter referred to
collectively as "INVESTOR" or "INVESTORS") as listed on Schedule A herein (each
agreement with an Investor being deemed a separate and independent agreement
between the Company and such Investor) and Olshan Grundman Frome Rosenzweig
(Wolosky, LLP), as escrow agent.

                             PRELIMINARY STATEMENT:

          WHEREAS, the Investors wish to purchase, upon the terms and subject to
the conditions of this Agreement, shares of the Common Stock of the Company and
certain common stock purchase warrants as described herein (each share of Common
Stock and corresponding stock purchase warrants are referred to herein as a
"UNIT") for a purchase price of Three Million Six Hundred Fifty Thousand Dollars
($3,650,000); and

          WHEREAS, the parties intend to memorialize the purchase and sale of
such Units;

          NOW, THEREFORE, in consideration of the mutual covenants and premises
contained herein, and for other good and valuable consideration, the receipt and
adequacy of which are hereby conclusively acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                                    ARTICLE I

             INCORPORATION BY REFERENCE, SUPERSEDER AND DEFINITIONS

1.1       Incorporation by Reference. The foregoing recitals, Schedule A and the
Exhibits attached hereto and referred to herein, are hereby acknowledged to be
true and accurate, and are incorporated herein by this reference.

1.2       Superseder. This Agreement, to the extent that it is inconsistent with
any other instrument or understanding among the parties governing the affairs of
the Company, shall supersede such instrument or understanding to the fullest
extent permitted by law. A copy of this Agreement shall be filed at the
Company's principal office.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 1 OF 23
<PAGE>

1.3       Certain Definitions. For purposes of this Agreement, the following
capitalized terms shall have the following meanings (all capitalized terms used
in this Agreement that are not defined in this Article 1 shall have the meanings
set forth elsewhere in this Agreement):

                  1.3.1    "1933 ACT" means the Securities Act of 1933, as
amended.

                  1.3.2    "1934 ACT" means the Securities Exchange Act of 1934,
as amended.

                  1.3.3    "AFFILIATE" means a Person or Persons directly or
indirectly, through one or more intermediaries, controlling, controlled by or
under common control with the Person(s) in question. The term "control," as used
in the immediately preceding sentence, means, with respect to a Person that is a
corporation, the right to the exercise, directly or indirectly, of more than 50
percent of the voting rights attributable to the shares of such controlled
corporation and, with respect to a Person that is not a corporation, the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such controlled Person.

                  1.3.4    "ARTICLES". The Articles of Organization of the
Company, as the same may be amended from time to time.

                  1.3.5    "CLOSING DATE" means the later of December 31, 2003
or upon the date all of the conditions of Article VIII and Article IX herein are
satisfied, unless extended by the Company in its sole discretion until December
31, 2003.

                  1.3.6    "COMMON STOCK" means the shares of common stock of
WHAI, par value $0.001 per share.

                  1.3.7    "ESCROW" means the escrow information provided
herein.

                  1.3.8    "FLORIDA ACT" means the Florida Business Corporation
Act, as amended.

                  1.3.9    "MATERIAL ADVERSE EFFECT" shall mean any adverse
effect on the business, operations, properties or financial condition of the
Company that is material and adverse to the Company and its subsidiaries and
affiliates, taken as a whole and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its material obligations under this Agreement or the
Registration Rights Agreement; provided, however, that none of the following
shall be deemed, in themselves, either alone or in combination, to constitute a
Material Adverse Effect, and none of the following shall be taken into account
in determining whether there has been or shall be a Material Adverse Effect: (i)
any change in the market price or trading volume of the Common Stock after the
date hereof, (ii) any adverse circumstance, change or effect resulting directly
from conditions affecting the industries in which the Company participates in
their entirety or the U.S. economy as a whole, (iii) any adverse circumstance,
change or effect resulting directly from the announcement or pendency of this
Agreement or (iv) any adverse circumstance, change or effect

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 2 OF 23

<PAGE>

resulting from the taking of any action by the Company which this Agreement or
the Registration Rights Agreement requires the Company to take.

                  1.3.10   "PERSON" means an individual, partnership, firm,
limited liability company, trust, joint venture, association, corporation, or
any other legal entity.

                  1.3.11   "PURCHASE PRICE" means the purchase price for the
Units as set forth in Section 2.2 below.

                  1.3.12   REGISTRATION RIGHTS AGREEMENT" shall mean the
registration rights agreement between the Investors and the Company attached
hereto as Exhibit A.

                  1.3.13   "REGISTRATION STATEMENT" shall mean the registration
statement under the 1933 Act to be filed with the SEC for the registration of
the Shares pursuant to the Registration Rights Agreement.

                  1.3.14   "SEC" means the Securities and Exchange Commission.

                  1.3.15   "SEC DOCUMENTS" shall mean each form, report,
schedule, statement and other document filed or required to be filed by the
Company with the SEC pursuant to the 1934 Act since March 1, 2003 through the
date hereof, including any filed amendment to such document, whether or not such
amendment is required to be so filed.

                  1.3.16   "SHARES" shall mean, collectively, the shares of
Common Stock of the Company being subscribed for hereunder and those shares of
Common Stock issuable to the Investor upon exercise of the Warrants.

                  1.3.17   "UNITS" shall mean the Common Stock and the Warrants
collectively.

                  1.3.18   "WARRANTS" shall mean the Common Stock purchase
warrants in the forms attached hereto Exhibit B, Exhibit C and Exhibit D.

                                   ARTICLE II

                        SALE AND PURCHASE OF WHAI'S UNITS
                               AND PURCHASE PRICE

2.1       SALE OF WHAI UNITS Upon the terms and subject to the conditions set
forth herein, and in accordance with applicable law, the Company agrees to sell,
and the Investors, severally and not jointly, agree to purchase, the following
Units for an aggregate purchase price of Three Million Six Hundred Fifty
Thousand Dollars ($3,650,000)(the "PURCHASE PRICE") in accordance with the
commitments set forth on Schedule A attached hereto, on the Closing Date, as
follows:

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 3 OF 23

<PAGE>

                  2.1.1    COMMON STOCK Upon execution and delivery of this
Agreement and the Company's receipt of the Purchase Price, the Company shall
deliver to the Investors an aggregate total of 2,750,000 shares of Common Stock
at a price of $0.60 per share (for an aggregate purchase price of One Million
Six Hundred Thousand Dollars ($1,650,000)). Each Investor shall pay such amount
and receive such number of shares of Common Stock as shall be set forth on
Schedule A. The Company shall file a registration statement with respect to, and
shall use commercially reasonable efforts to register with the SEC for resale,
the shares of Common Stock acquired hereunder pursuant to the terms and
conditions of the Registration Rights Agreement.

                  2.1.2    WARRANTS Upon execution and delivery of this
Agreement and the Company's receipt of the Purchase Price, the Company shall
deliver to the Investors the following Warrants (for an aggregate purchase price
of Two Million Dollars ($2,000,000)):

                  2.1.2(a) Warrants to purchase Three Million Three Hundred and
Thirty Three Thousand Three Hundred shares of Common Stock (the "FIRST WARRANT
SHARES") to be issued to the Investors pro rata based upon their commitments as
set forth on Schedule A (the "FIRST WARRANTS"). The First Warrants, a form of
which is attached hereto as Exhibit B, shall include, but not be limited to,
such terms and conditions as a exercise price of $0.60 per share (as adjusted
from time to time as provided in the First Warrants) and an expiration date of
five (5) years from the date of issuance. In addition, the First Warrants shall
contain a put provision on behalf of the Company. If at any time during the
period commencing on the Closing Date and ending on the one hundred and
twentieth (120th) day following the Closing Date, the Company enters into a
Definitive Purchase and Sale Agreement (as defined therein) at a purchase price
of less than four (4) times Trailing EBITA with any Target (as defined therein)
having a Trailing EBITA (as defined below) of at least $3,000,000 (a "QUALIFYING
ACQUISITION"), the Company may require the Warrant Holder to exercise the
Warrant (the "PUT RIGHT"). The Company may exercise its Put Right by delivering
written notice thereof to the holder(s) of the First Warrants (the "WARRANT
HOLDERS") at any time after execution of the Definitive Purchase and Sale
Agreement and prior to the date which is not less than fifteen (15) days prior
to the closing date for the Qualifying Acquisition (the "PUT EXERCISE PERIOD").
Within ten (10) days following the receipt of such written notice (the "PUT
EXERCISE NOTICE"), the Warrant Holders shall deposit, pro rata based upon the
First Warrants held by such Warrant Holders, an aggregate amount in immediately
available funds equal to $2,000,000 (representing the aggregate exercise price
for the First Warrants) into the account of the Escrow Agent set forth in
Section 2.2 (the "FIRST WARRANT ESCROW FUNDS") in preparation for the exercise
of the First Warrants. Contemporaneous with the closing of the Qualifying
Acquisition, the Warrant Holders shall exercise the First Warrants, in whole,
and the Escrow Agent shall deliver to the Company the First Warrant Escrow
Funds. In the event that any of the Warrant Holders fails to deposit the
exercise price of the First Warrants held by such Warrant Holder into the escrow
or exercise such Warrants contemporaneous with the closing of the Qualifying
Acquisition, (i) the Warrant

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 4 OF 23

<PAGE>

Holder shall immediately forfeit his or its rights to the First Warrants and any
rights and interests herein or relating hereto; (ii) the Warrant Holder shall
immediately forfeit such Warrant Holders' registration rights contained in the
Registration Rights Agreement; and (iii) the unexercised First Warrants shall be
offered pro rata to all other Warrant Holders who complied with the terms of the
Put Rights. Such other Warrant Holders shall have a period of ten (10) business
days to exercise the unexercised First Warrant after which any or all of the
remaining unexercised First Warrant shall be cancelled by the Company.
Notwithstanding anything contained herein to the contrary, in the event that the
Company does not close the Qualifying Acquisition within sixty (60) days
following the date upon which the First Warrant Escrow Funds have been deposited
with the Escrow Agent, the Warrant Holders may, at their election, either (x)
exercise the First Warrants, in whole or in part, or (y) upon written notice to
the Company and the Escrow Agent, demand the return of the First Warrant Escrow
Funds. If the Warrant Holders provide such written notice in accordance with the
preceding sentence, the Escrow Agent shall immediately return the First Warrant
Escrow Funds to the Warrant Holders.

                  2.1.2(b) Warrants to purchase One Million shares of Common
Stock (the "SECOND WARRANT SHARES") to be issued to the Investors pro rata based
upon their commitments as set forth on Schedule A (the "SECOND WARRANTS"). The
Second Warrants, a form of which is attached hereto as Exhibit C, shall include,
but not be limited to, such terms and conditions as a exercise price of $1.50
per share (as adjusted from time to time as provided in the Second Warrants) and
an expiration date of five (5) years from the date of issuance. Notwithstanding
anything contained herein to the contrary, the Second Warrants shall contain a
provision on behalf of the Company providing that if (i) the average price of
the Common Stock as listed on the OTC Bulletin Board or other nationally public
securities market is 125% of the exercise price for a period of twenty
consecutive trading days and (ii) the Registration Statement is effective for
such twenty consecutive trading days, the Company may repurchase any or all of
the Second Warrants from the holders thereof for a purchase price of $0.001 per
warrant.

                  2.1.2(c) Warrants to purchase One Million shares of Common
Stock (the "THIRD WARRANT SHARES") to be issued to the Investors pro rata based
upon their commitments set forth on Schedule A (the "THIRD WARRANTS"). The Third
Warrants, a form of which is attached hereto as Exhibit D, shall include, but
not be limited to, such terms and conditions as a exercise price of $2.00 per
share (as adjusted from time to time as provided in the Warrant) and an
expiration date of five (5) years from the date of issuance. Notwithstanding
anything contained herein to the contrary, the Third Warrants shall contain a
provision on behalf of the Company providing that if (i) the average price of
the Common Stock as listed on the OTC Bulletin Board or other nationally public
securities market is 125% of the exercise price for a period of twenty
consecutive trading days and (ii) the Registration Statement is effective for
such twenty consecutive trading days, the Company may repurchase any or all of
the Third Warrants from holders thereof for a purchase price of $0.001 per
warrant.

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 5 OF 23
<PAGE>

2.2       PURCHASE PRICE. The purchase price to be paid by each Investor on the
Closing Date for the Units, payable by each Investor in United States Dollars in
accordance with the information listed on SCHEDULE A. Payment to the Company of
the Purchase Price shall be made on the date hereof to the escrow agent, Olshan
Grundman Frome Rosenzweig & Wolosky ("Escrow Agent") by wire transfer of funds
to the account as follows:

FLEET BANK
1133 AVENUE OF THE AMERICAS
NEW YORK, NY 10036

FOR THE BENEFIT OF:
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
ABA #021200339
ACCT #2592-52-1891

ATTN: SCOTT VANDERWALL

On the Closing Date, the escrow agent shall transfer the Purchase Price to the
Company.

2.3       ACCEPTANCE. Each potential Investor acknowledges that the Company
shall, in its sole discretion, have the right to accept or reject their
subscription for Units, in whole or in part, for any reason or for no reason.

                                   ARTICLE II
                     CLOSING DATE AND DELIVERIES AT CLOSING

3.1       CLOSING DATE The closing of the transactions contemplated by this
Agreement (the "CLOSING"), unless expressly determined herein, shall be held at
the offices of the Company, at 300 Penn Center Boulevard, Suite 201, Pittsburgh,
Pennsylvania 15235 at 5:00 P.M. local time, on the Closing Date or on such other
date and at such other place as may be mutually agreed by the parties, including
closing by facsimile with originals to follow.

3.2       DELIVERIES BY THE COMPANY. In connection with the Closing, the Company
agrees to deliver, or cause to be delivered, to the Investors, the following:

                  (a)      Within seven (7) business days following the Closing
                           Date, Certificates representing WHAI Shares, which
                           certificates shall be duly endorsed to the Investor
                           and shall contain the restrictive legends set forth
                           in Section 7.3 below;

                  (b)      At or prior to Closing, an Agreement executed by the
                           Company;

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 6 OF 23
<PAGE>

                  (c)      At or prior to Closing, Warrants in the name of the
                           Investors in the form attached hereto as Exhibit B,
                           Exhibit C, and Exhibit D executed by the Company;

                  (d)      At or prior to Closing, a Registration Rights
                           Agreement executed by the Company; and

                  (e)      At or prior to Closing, confirmation that the
                           provisions of Paragraph 6.6 herein have been
                           satisfied or commenced, as appropriate.

3.3       DELIVERIES BY INVESTOR. In connection with the Closing, each Investor
agrees to deliver, or cause to be delivered, to the Company, as appropriate, the
following:

                  (a)      At or prior to Closing, the Purchase Price;

                  (b)      At or prior to Closing, an Agreement executed by the
                           Investor; and

                  (c)      At or prior to Closing, a Registration Rights
                           Agreement executed by the Investor.

In the event any document provided to the other party in Paragraphs 3.2 and 3.3
herein are provided by facsimile, the party shall forward an original document
to the other party within seven (7) business days.

3.4       FURTHER ASSURANCES. The Company and each Investor shall, upon request,
on or after the Closing Date, cooperate with each other (specifically, the
Company shall cooperate with the Investors, the Investors shall cooperate with
the Company, but does not require any Investor to cooperate with any other
Investor) by furnishing any additional information, executing and delivering any
additional documents and/or other instruments and doing any and all such things
as may be reasonably required by the parties or their counsel to consummate or
otherwise implement the transactions contemplated by this Agreement.

                                   ARTICLE IV

                     REPRESENTATIONS AND WARRANTIES OF WHAI

         WHAI represents and warrants to the Investors as of the date hereof as
follows:

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 7 OF 23
<PAGE>

4.1       ORGANIZATION AND QUALIFICATION. WHAI is a corporation duly organized,
validly existing and in good standing under the laws of the State of Florida,
and has the requisite corporate power and authority to own, lease and operate
its properties and to carry on its business as it is now being conducted and is
duly qualified to do business in any other jurisdiction by virtue of the nature
of the businesses conducted by it or the ownership or leasing of its properties,
except where the failure to be so qualified will not, when taken together with
all other such failures, have a Material Adverse Effect on WHAI and its
subsidiaries taken as a whole.

4.2       ARTICLES OF INCORPORATION AND BY-LAWS. The complete and correct copies
of WHAI's Articles of Incorporation and By-Laws, as amended or restated to date
which have been filed with the Securities and Exchange Commission are a complete
and correct copy of such document as in effect on the date hereof and as of the
Closing Date.

4.3       CAPITALIZATION.

                           4.3.1    As of the date hereof, the authorized
capital stock of WHAI consists of 200,000,000 shares of Common Stock, par value
$0.0001 per share and 100,000,000 shares of Preferred Stock, par value $0.0001
per share. As of the date hereof, there were (i) 24,575,400 shares of Common
Stock issued and outstanding, (ii) 16,000,000 shares in treasury and (iii) no
shares of Preferred Stock issued or outstanding. All shares of capital stock
have been duly authorized and are validly issued, and are fully paid and no
assessable, and free of preemptive rights.

                           4.3.2    Except pursuant to this Agreement or as
otherwise set forth in WHAI's SEC Documents, as of the date hereof, there are no
outstanding options, warrants, rights to subscribe for, calls or commitments of
any character whatsoever relating to, or securities or rights convertible into
or exchangeable for, shares of any class of capital stock of WHAI, or
agreements, understandings or arrangements to which WHAI is a party, or by which
WHAI is or may be bound, to issue additional shares of its capital stock or
options, warrants, scrip or rights to subscribe for, calls or commitment of any
character whatsoever relating to, or securities or rights convertible into or
exchangeable for, any shares of any class of its capital stock. The Company
agrees to inform the Investors in writing of any additional warrants granted
prior to the Closing Date.

                           4.3.3    The Company on the Closing Date (i) will
have full right, power, and authority to sell, assign, transfer, and deliver, by
reason of record and beneficial ownership, to each Investor, WHAI Shares
hereunder, free and clear of all liens, charges, claims, options, pledges,
restrictions, and encumbrances whatsoever; and (ii) upon delivery of and payment
by each Investor of the Purchase Price to the Company, such Investor will
acquire good and marketable title to such Company Stock, free and clear of all
liens, charges, claims, options, pledges, restrictions, and encumbrances
whatsoever, except in each of the case of (i) and (ii),

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 8 OF 23
<PAGE>

such liens, charges, claims, options, pledges, restrictions and encumbrances as
may be (x) imposed under federal or state securities laws, (y) set forth in this
Agreement or the Registration Rights Agreement or (z) imposed through the
actions of the Investors.

                           4.3.4    On the Closing Date, Richard E. McDonald,
President, Principal Financial Officer, Principal Accounting Officer and
Chairman of the Board of Directors of the Company, shall beneficially own
greater than five percent (5%) of the issued and outstanding shares of Common
Stock and Marc D. Roup, Chief Executive Officer and a Director of the Company,
shall beneficially own greater than five percent (5%) of the issued and
outstanding shares of Common Stock.

4.4       AUTHORITY. WHAI has all requisite corporate power and authority to
execute and deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and delivery of
this Agreement by WHAI and the consummation by WHAI of the transactions
contemplated hereby have been duly authorized by all necessary corporate action
on the part of WHAI and no other corporate proceedings on the part of WHAI is
necessary to authorize this Agreement or to consummate the transactions
contemplated hereby except as disclosed in this Agreement. This Agreement and
the Registration Rights Agreement have been duly executed and delivered by WHAI
and constitute valid and binding obligations of WHAI, enforceable against WHAI
in accordance with their terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or other similar laws relating to, affecting generally the
enforcement of, creditors' rights and remedies or by other equitable principals
of general application.

4.5       NO CONFLICT; REQUIRED FILINGS AND CONSENTS. The execution and delivery
of this Agreement by WHAI does not, and the performance by WHAI of its
obligations hereunder will not: (i) conflict with or violate the Articles or
By-Laws of WHAI; (ii) conflict with, breach or violate any federal, state,
foreign or local law, statute, ordinance, rule, regulation, order, judgment or
decree (collectively, "LAWS") in effect as of the date of this Agreement and
applicable to WHAI; or (iii) result in any breach of, constitute a default (or
an event that with notice or lapse of time or both would become a default)
under, give to any other entity any right of termination, amendment,
acceleration or cancellation of, require payment under, or result in the
creation of a lien or encumbrance on any of the properties or assets of WHAI
pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease,
license, permit, franchise or other instrument or obligation to which WHAI is a
party or by WHAI or any of its properties or assets is bound, except in each of
the cases of (i) through (iii) for any violations, conflicts, breaches,
defaults, terminations, accelerations, creations of liens, or incumbency that
would not, in the aggregate, have a Material Adverse Effect on WHAI.

4.6       REPORT AND FINANCIAL STATEMENTS. The audited financial statements of
Better Solutions,

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              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 9 OF 23
<PAGE>

Inc. ("BETTER SOLUTIONS") for the year ended December 31, 2002 are included in
WHAI's Registration Statement on Form SB-2, as amended (the "FINANCIAL
STATEMENTS"). Each of the balance sheets contained in the Financial Statements
(including the related notes and schedules thereto) fairly presented the
financial position of Better Solutions as of its date, and each of the
statements of income and changes in stockholders' equity and cash flows or
equivalent statements in such Financial Statements (including any related notes
and schedules thereto) fairly presents the results of operations, changes in
stockholders' equity and changes in cash flows, as the case may be, of Better
Solutions for the periods to which they relate, in each case in accordance with
United States generally accepted accounting principles ("U.S. GAAP")
consistently applied during the periods involved, except in each case as may be
noted therein, subject to normal year-end audit adjustments and other
adjustments described therein in the case of unaudited statements. The books and
records of Better Solutions have been, and are being, maintained in all material
respects in accordance with U.S. GAAP and any other applicable legal and
accounting requirements and reflect only actual transaction.

4.7       COMPLIANCE WITH APPLICABLE LAWS. WHAI is not in violation of, or, to
the knowledge of WHAI is under investigation with respect to or has been given
notice or has been charged with the violation of any Law of a governmental
agency, except for violations which individually or in the aggregate do not have
a Material Adverse Effect on WHAI.

4.8       BROKERS. Except for Summit Financial Partners, LLC and Monarch Capital
Group, LLC, no broker, finder or investment banker is entitled to any brokerage,
finder's or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
WHAI.

4.9       SEC DOCUMENTS. WHAI acknowledges that WHAI is a publicly held company
and has made available to the Investors after demand true and complete copies of
any requested SEC Documents. The Company has registered its Common Stock
pursuant to the 1934 Act, and the Common Stock is listed and traded on the OTC
Bulletin Board Market of the National Association of Securities Dealers, Inc.
The Company has received no notice, either oral or written, from the National
Association of Securities Dealers, Inc. (the "NASD") stating that WHAI has
failed to comply with any listing standards of the OTC Bulletin Board Market,
and the Company has maintained all requirements for the continuation of listing
thereon. As of their respective dates (or if amended or superceded, as of the
date of the last amendment or superceding report filed prior to the date
hereof), the SEC Documents complied in all material respects with the
requirements of the 1934 Act, and rules and regulations of the SEC promulgated
thereunder and the SEC Documents did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 10 OF 23
<PAGE>

4.10      LITIGATION. Except as set forth in Section 4.10 of the Disclosure
Letter delivered to the Investors as of the date hereof, to the knowledge of
WHAI, no litigation, claim, or other proceeding before any court or governmental
agency is pending or threatened against WHAI.

4.11      EXEMPTION FROM REGISTRATION. Subject to the accuracy of the Investors'
representations in Article V, the sale of the Units will be exempt from the
registration requirements of Section 5 of the 1933 Act and/or any applicable
state securities law. When validly converted in accordance with the terms of the
Warrants, the Shares underlying the Warrants will be duly and validly issued,
fully paid, and non-assessable. The Company is issuing the Units in accordance
with and in reliance upon the exemption from securities registration afforded,
inter alia, by Rule 506 under Regulation D as promulgated by the SEC under the
1933, and/or Section 4(2) of the 1933 Act.

4.12      NO MATERIAL ADVERSE CHANGE. Since December 31, 2002 until the date
hereof, no Material Adverse Effect has occurred or exists with respect to the
Company that has not been disclosed in the SEC Documents. No material supplier
has given notice, oral or written, that it intends to cease or reduce the volume
of its business with the Company from historical levels. Since December 31, 2002
until the date hereof, no event or circumstance has occurred or exists with
respect to the Company or its businesses, properties, operations or financial
condition, that, under any applicable law, rule or regulation applicable to the
Company, requires public disclosure or announcement prior to the date hereof by
the Company but which has not been so publicly announced or disclosed in writing
to the Investors.

4.13      INTERNAL CONTROLS AND PROCEDURES. The Company maintains books and
records and internal accounting controls which provide reasonable assurance that
(i) all transactions to which the Company or any subsidiary is a party or by
which its properties are bound are executed with management's authorization;
(ii) the recorded accounting of the Company's consolidated assets is compared
with existing assets at regular intervals; (iii) access to the Company's
consolidated assets is permitted only in accordance with management's
authorization; and (iv) all transactions to which the Company or any subsidiary
is a party or by which its properties are bound are recorded as necessary to
permit preparation of the financial statements of the Company in accordance with
U.S. generally accepted accounting principles.

4.14      FULL DISCLOSURE. No representation or warranty made by WHAI in this
Agreement contains or will contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading.

                                    ARTICLE V

                 REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 11 OF 23
<PAGE>

Each Investor, severally and not jointly, as to himself or itself and not as to
any other Investor, represents and warrants to the Company with the Company
that:

5.1       ORGANIZATION AND STANDING OF THE INVESTOR. Where the Investor is a
corporation, such Investor is duly incorporated, validly existing and in good
standing under the laws of the state in which it was formed. The state in which
any offer to purchase shares hereunder was made or accepted by such Investor is
the state shown as such Investor's address. If an entity, the Investor was not
formed for the purpose of investing solely in the Units the subject of this
Agreement.

5.2       AUTHORIZATION AND POWER. The Investor has the requisite power and
authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement by the Investor and the consummation by the
Investor of the transactions contemplated hereby have been duly authorized by
all necessary corporate action on the part of the Investor, where appropriate,
and no other corporate proceedings on the part of the Investor, where
appropriate, is necessary to authorize this Agreement or to consummate the
transactions contemplated hereby except as disclosed in this Agreement. This
Agreement and the Registration Rights Agreement have been duly executed and
delivered by the Investor and constitute valid and binding obligations of the
Investor, enforceable against the Investor in accordance with their terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement
of, creditors' rights and remedies or by other equitable principles of general
application.

5.3       NO CONFLICTS. The execution and performance of this Agreement by the
Investor does not, and the performance by the Investor of its obligations
hereunder will not: (i) conflict with or violate such Investor's charter
documents or bylaws, where applicable, (ii) conflict with, breach or violate any
Laws in effect as of the date of this Agreement and applicable to the Investor;
or (iii) result in any breach of, constitute a default (or an event that with
notice or lapse of time or both would become a default) under, give to any other
entity any right of termination, amendment, acceleration or cancellation of, or
require any payment under, any note, bond, mortgage, indenture, contract,
agreement, lease license, permit, franchise or other instrument or obligation to
which the Investor is a party or by which the Investor or any of its properties
or assets is bound, except in each of cases (i) through (iii) for any
violations, conflicts, breaches, defaults, terminations or accelerations that
would not, in the aggregate, have a Material Adverse Effect on the Investor. The
Investor is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court or governmental agency in order
for it to execute, deliver or perform any of such Investor's obligations under
this Agreement or to purchase the Units in accordance with the terms hereof,
provided that for purposes of the representation made in this sentence, the
Investor is assuming and relying upon the accuracy of the relevant
representations and agreements of WHAI herein.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 12 OF 23

<PAGE>

5.4       FINANCIAL RISKS. The Investor acknowledges that such Investor is able
to bear the financial risks associated with an investment in the Units and that
it has been given full access to such records of the Company and the
subsidiaries and to the officers of the Company and the subsidiaries as it has
deemed necessary or appropriate to conduct its due diligence investigation. The
Investor is capable of evaluating the risks and merits of an investment in the
Units by virtue of its experience as an investor and its knowledge, experience,
and sophistication in financial and business matters and the Investor is capable
of bearing the entire loss of its investment in the Units.

5.5       ACCREDITED INVESTOR. The Investor is (i) an "accredited investor" as
that term is defined in Rule 501 of Regulation D promulgated under the 1933 Act
by reason of Rule 501(a)(3) and (6), (ii) experienced in making investments of
the kind described in this Agreement and the related documents, (iii) able, by
reason of the business and financial experience of its officers (if an entity)
and professional advisors (who are not affiliated with or compensated in any way
by the Company or any of its affiliates or selling agents), to protect its own
interests in connection with the transactions described in this Agreement, and
the related documents, and (iv) able to afford the entire loss of its investment
in the Units.

5.6       INVESTMENT INTENT. The Investor is purchasing the Units for its own
account as principal, for investment purposes only, and not with a present view
to, or for, resale, distribution or fractionalization thereof, in whole or in
part, within the meaning of the 1933 Act. The Investor understands that its
acquisition of the Units has not been registered under the 1933 Act or
registered or qualified under any state securities law in reliance on specific
exemptions therefrom, which exemptions may depend upon, among other things, the
bona fide nature of such Investor's investment intent as expressed herein. The
Investor shall not, directly or indirectly, offer, sell, pledge, transfer, or
otherwise dispose of (or solicit any offers to buy, purchase, or otherwise
acquire or take a pledge of) any of the Units, except in compliance with the
terms of this Agreement and the registration requirements of the 1933 Act, and
the rules and regulations promulgated thereunder, or an exemption thereunder.

5.7       NO LEGAL, TAX OR INVESTMENT ADVICE. The Investor understands that
nothing in this Agreement or any other materials presented to such Investor in
connection with the purchase of the Units constitutes legal, tax or investment
advice. The Investor has consulted such legal, tax and investment advisors as
it, in its sole discretion, has deemed necessary or appropriate in connection
with its purchase of the Units.

5.8       BROKERS. Except for Summit Financial Partners, LLC, and Monarch
Capital Group, LLC, who shall be paid by the Company, no broker, finder or
investment banker is entitled to any brokerage, finder's or other fee or
commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of the Investors.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 13 OF 23

<PAGE>

5.9       NO SHORT SALES. Prior to the Closing Date, neither the Investor nor
any of the Investor's Affiliates will be in a net short position with regard to
the Common Stock in any accounts directly or indirectly controlled by the
Investor.

5.10      KNOWLEDGE OF COMPANY. Each Investor and such Investor's advisors, if
any, have been, upon request, furnished with all materials relating to the
business, finances and operations of the Company and materials relating to the
offer and sale of the Units. Each Investor and such Investor's advisors, if any,
have been afforded the opportunity to ask questions of the Company and have
received complete and satisfactory answers to any such inquiries.

5.11      RISK FACTORS Each Investor understands that such Investor's investment
in the Units involves a high degree of risk. Each Investor understands that no
United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Units.
Each Investors warrants that such Investor is able to bear the complete loss of
such Buyer's investment in the Units.

5.12      FULL DISCLOSURE. No representation or warranty made by the Investor in
this Agreement contains or will contain any untrue statement of a material fact,
or omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading. Except asset forth or referred to in
this Agreement, Investor does not have any agreement or understanding with any
person relating to acquiring, holding, voting or disposing of any equity
securities of the Company.

                                   ARTICLE VI

                            COVENANTS OF THE COMPANY

6.1.      REGISTRATION RIGHTS. The Company shall cause the Registration Rights
Agreement to remain in full force and effect and the Company shall comply in all
material respects with the terms thereof.

6.2.      RESERVATION OF COMMON STOCK. As of the date hereof, the Company has
reserved and the Company shall continue to reserve and keep available at all
times, free of preemptive rights, shares of Common Stock for the purpose of
enabling the Company to issue the shares of Common Stock underlying the
Warrants.

6.3.      LISTING OF COMMON STOCK. The Company hereby agrees to maintain the
listing of the Common Stock on the OTC Bulletin Board or another publicly
trading market. The Company will take all action to continue the listing and
trading of its Common Stock on the OTC Bulletin Board or another publicly traded
market and will comply in all respects with the Company's reporting, filing and
other obligations under the bylaws or rules of such publicly traded market.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 14 OF 23

<PAGE>

6.4.      EXCHANGE ACT REGISTRATION. The Company will cause its Common Stock to
continue to be registered the 1934 Act, will use commercially reasonable efforts
to comply in all respects with its reporting and filing obligations under the
1934 Act, and will not take any action or file any document (whether or not
permitted by the 1934 Act or the rules thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the 1934 until the Investors have disposed of all of their Shares or the
shares of Common Stock underlying the Warrants.

6.5.      CORPORATE EXISTENCE; CONFLICTING AGREEMENTS. From the date hereof
until the Closing Date, (i) the Company will take all steps necessary to
preserve and continue the corporate existence of the Company and (ii) the
Company shall not enter into any agreement, the terms of which agreement would
restrict or impair the right or ability of the Company to perform any of its
obligations under this Agreement or any of the other agreements attached as
exhibits hereto.

6.6       INDEPENDENT DIRECTORS Within sixty days following the Closing, the
Company will cause the appointment of at least two "independent" directors (as
defined in Rule 4200(a)(15) of the NASD listing standards). If no such directors
are appointed with such sixty day period following Closing, the Company shall
pay to the Investors, pro rata, as liquidated damages and not as a penalty, an
amount equal to twelve percent (12%) of the Purchase Price, per annum, payable
monthly until such time as such directors have been appointed. The parties agree
that the only damages payable for a violation of the terms of this Agreement
with respect to which liquidated damages are expressly provided shall be such
liquidated damages. Nothing shall preclude the Investor from pursuing or
obtaining specific performance or other equitable relief with respect to this
Agreement. The parties hereto agree that the liquidated damages provided for in
this Section 6.6 shall constitute a reasonable estimate of the damages that may
be incurred by the Investor by reason of the failure of the company to appoint
at least two such independent directors in accordance with the provisions
hereof.

6.7       USE OF PROCEEDS. The Company will use the proceeds from the sale of
the Units (excluding amounts paid by the Company for legal and administrative
fees in connection with the sale of the Units) for as follows: approximately
$150,000 for legal and administrative expenses in connection with the sale of
the Units; approximately $1,500,000 for general business purposes and debt
restructuring; and approximately $2,000,000 for an acquisition or similar
business transaction.

6.8       REDEMPTION OF SHARES. Within seven (7) days following the Closing
Date, the Company shall redeem 1,375,000 shares of Common Stock held by Richard
McDonald and 1,375,000 shares of Common Stock held by Mark Roup, each for no
consideration or compensation. Within seven (7) days following the exercise in
full of the First Warrants (or, to the extent partially exercised, within seven
(7) days following each partial exercise thereof), the Company shall redeem the
Redemption Amount (as defined below) from Richard McDonald and the Redemption
Amount from Marc Roup each for no additional consideration or compensation;

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 15 OF 23

<PAGE>

provided, that the maximum number of shares to be redeemed pursuant to this
sentence shall not exceed 1,250,000 for Richard McDonald or Marc Roup,
individually, or 2,500,000, in the aggregate. For purposes of this Section 6.8,
the "REDEMPTION AMOUNT" shall mean, a number of shares of Common Stock equal to
the product of (x) 1,250,000 multiplied by (y) a fraction, the numerator of
which shall be the number of shares issued upon the exercise of the First
Warrants and the denominator shall be 2,500,000.

6.9       TERMINATION OF COVENANTS. The provisions contained in this Article VI
shall terminate upon the earlier to occur of: (i) the second anniversary of the
Closing Date, (ii) such date on which the Investors own less than 10% of the
shares of the Common Stock purchased hereunder.

                                   ARTICLE VII

                           COVENANTS OF THE INVESTORS

7.1       COMPLIANCE WITH LAW. The Investor's trading activities with respect to
shares of the Company's Common Stock will be in compliance with all applicable
state and federal securities laws, rules and regulations and rules and
regulations of any public market on which the Company's Common Stock is listed.

7.2       TRANSFER RESTRICTIONS. The Investor's acknowledge that (1) the Shares,
Warrants and shares underlying the Warrants have not been registered under the
provisions of the 1933 Act, and may not be transferred unless (A) subsequently
registered thereunder or (B) the Investor's shall have delivered to the Company
an opinion of counsel, reasonably satisfactory in form, scope and substance to
the Company, to the effect that the Shares, Warrants and shares underlying the
Warrants to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration; and (2) any sale of the Shares, Warrants and
shares underlying the Warrants made in reliance on Rule 144 promulgated under
the 1933 Act may be made only in accordance with the terms of said Rule and
further, if said Rule is not applicable, any resale of such Securities under
circumstances in which the seller, or the person through whom the sale is made,
may be deemed to be an underwriter, as that term is used in the 1933 Act, may
require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC thereunder.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 16 OF 23

<PAGE>

7.3       RESTRICTIVE LEGEND. The Investor's acknowledge and agree that the
Shares, the Warrants and the shares underlying the Warrants and, until such time
as the Shares, the Warrants and the shares underlying the Warrants have been
registered under the 1933 Act and sold in accordance with an effective
Registration Statement, certificates and other instruments representing any of
the Shares, the Warrants and the shares underlying the Warrants shall bear the
following restrictive legends:

          (i) "THE [SHARES OF COMMON STOCK][WARRANTS] REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH
[SHARES][WARRANTS] NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH
RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) THE INVESTOR'S SHALL HAVE DELIVERED TO THE COMPANY AN
OPINION OF COUNSEL, REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE
COMPANY, TO THE EFFECT THAT THE [SHARES OF COMMON STOCK][WARRANTS] TO BE SOLD OR
TRANSFERRED MAY BE SOLD OR TRANSFERRED PURSUANT TO AN EXEMPTION FROM SUCH
REGISTRATION."

          (ii) Any legend required by the blue sky or securities laws of any
state or jurisdiction to the extent such laws are applicable to the shares
represented by the certificate so legended.

          The certificates representing the Common Stock and the Warrants shall
be subject to a stop transfer order with WHAI's transfer agent that restricts
the transfer of such shares or warrants except in compliance herewith.

                                  ARTICLE VIII

                CONDITIONS PRECEDENT TO THE COMPANY'S OBLIGATIONS

          The obligation of the Company to consummate the transactions
contemplated hereby shall be subject to the fulfillment, on or prior to Closing
Date, of the following conditions:

8.1       NO TERMINATION. This Agreement shall not have been terminated pursuant
to Article X hereof.

8.2       REPRESENTATIONS TRUE AND CORRECT. The representations and warranties
of the Investors contained in this Agreement shall be true and correct in all
material respects on and as of the Closing Date with the same force and effect
as if made on as of the Closing Date.

8.3       COMPLIANCE WITH COVENANTS. The Investors shall have performed and
complied in all material respects with all covenants, agreements, and conditions
required by this Agreement to be performed or complied by it prior to or at the
Closing Date.

8.4       NO ADVERSE PROCEEDINGS. On the Closing Date, no action or proceeding
shall be pending by any public authority or individual or entity before any
court or administrative body to restrain, enjoin, or otherwise prevent the
consummation of this Agreement or the transactions

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 17 OF 23

<PAGE>

contemplated hereby or to recover any damages or obtain other relief as a result
of the transactions proposed hereby.

                                   ARTICLE IX

                 CONDITIONS PRECEDENT TO INVESTOR'S OBLIGATIONS

          The obligation of the Investors to consummate the transactions
contemplated hereby shall be subject to the fulfillment, on or prior to Closing
Date unless specified otherwise, of the following conditions:

9.1       NO TERMINATION. This Agreement shall not have been terminated pursuant
to Article X hereof.

9.2       REPRESENTATIONS TRUE AND CORRECT. The representations and warranties
of WHAI contained in this Agreement shall be true and correct in all material
respects on and as of the Closing Date with the same force and effect as if made
on as of the Closing Date.

9.3       COMPLIANCE WITH COVENANTS . WHAI shall have performed and complied in
all material respects with all covenants, agreements, and conditions required by
this Agreement to be performed or complied by it prior to or at the Closing
Date.

9.4       COMPLETION OF TRANSACTION. WHAI shall have closed the transaction with
Superior Acquisition, Inc. at a purchase price of less than four (4) times
Trailing EBITA prior to or at the Closing Date.

9.5       NO ADVERSE PROCEEDINGS. On the Closing Date, no action or proceeding
shall be pending by any public authority or individual or entity before any
court or administrative body to restrain, enjoin, or otherwise prevent the
consummation of this Agreement or the transactions contemplated hereby or to
recover any damages or obtain other relief as a result of the transactions
proposed hereby.

                                    ARTICLE X

                        TERMINATION, AMENDMENT AND WAIVER

10.1      TERMINATION. This Agreement may be terminated at any time prior to the
Effective Time:

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 18 OF 23
<PAGE>

                  10.1.1   by mutual written consent of the Investors and the
Company;

                  10.1.2   by the Investors, on the one hand, or the Company, on
the other, if: (A) the Closing shall not have occurred on or before December 31,
2003 (or such later date as may be agreed upon in writing by the parties hereto
(the "TERMINATION DATE")); provided, however, that the right to terminate this
Agreement under this Section 10.1.2 shall not be available to any party whose
willful failure to fulfill any obligation hereunder has been the cause of, or
resulted in, the failure of the Closing to occur on or before the Termination
Date, (B) there shall be a final nonappealable order of a federal, state or
foreign court in effect preventing consummation of the transactions contemplated
by this Agreement, or (C) there shall be any governmental rule or governmental
order applicable to the transactions contemplated by this Agreement by any
governmental entity that would make the consummation of the transactions
contemplated by this Agreement illegal;

                  10.1.3   by the Investors, if the Company has breached any of
its representations or warranties or failed to perform any of its obligations
hereunder and as a result of such breach or failure the conditions set forth in
Sections 9.2 or 9.3, as the case may be, would not then be satisfied; provided,
however, that if such breach is curable by the Company within thirty (30) days
through the exercise of its commercially reasonable efforts, then for so long as
the Company shall continue to exercise its commercially reasonable efforts the
Investors may not terminate this Agreement under this Section 10.1.3 unless such
breach has not been cured within thirty (30) days (but no cure period shall be
required for a breach which by its nature cannot be cured); or

                  10.1.4   by the Company, if the Investors have breached any of
their respective representations or warranties or failed to perform any of their
respective obligations hereunder and as a result of such breach or failure the
conditions set forth in Sections 8.2 or 8.3, as the case may be, would not then
be satisfied; provided, however, that if such breach is curable by the Investors
within thirty (30) days through the exercise of its commercially reasonable
efforts, then for so long as the Investors shall continue to exercise its
commercially reasonable efforts the Company may not terminate this Agreement
under this Section 10.1.4 unless such breach has not been cured within thirty
(30) days (but no cure period shall be required for a breach which by its nature
cannot be cured).

10.2      EFFECT OF TERMINATION. In the event of the termination of this
Agreement pursuant to Paragraph 10.1 hereof, there shall be no liability on the
party of WHAI or the Investors or any of their respective officers, directors,
agents or other representatives and all rights and obligations of any party
hereto shall cease, except as set forth in Section 11.1.

10.3      AMENDMENT. This Agreement may be amended by the parties hereto any
time prior to the Closing Date by an instrument in writing signed by the parties
hereto.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 19 OF 23
<PAGE>

10.4      WAIVER. At any time prior to the Closing Date, WHAI or each Investor,
as appropriate, may: (a) extend the time for the performance of any of the
obligations or other acts of other party or; (b) waive any inaccuracies in the
representations and warranties contained herein or in any document delivered
pursuant hereto which have been made to it or them; or (c) waive compliance with
any of the agreements or conditions contained herein for its or their benefit.
Any such extension or waiver shall be valid only if set forth in an instrument
in writing signed by the party or parties to be bound hereby.

                                   ARTICLE XI

                               GENERAL PROVISIONS

11.1      TRANSACTION COSTS. Except as otherwise provided herein, each of the
parties shall pay all of his or its costs and expenses (including attorney fees
and other legal costs and expenses and accountants' fees and other accounting
costs and expenses) incurred by that party in connection with this Agreement.

11.2      INDEMNIFICATION.

          11.2.1  Each Investor, severally and not jointly agrees to defend and
hold the Company (following the Closing Date) and its officers and directors
harmless against and in respect of any and all claims, demands, losses, costs,
expenses, obligations, liabilities or damages, including interest, penalties and
reasonable attorney's fees, that it shall incur or suffer, which arise out of,
result from or relate to any breach of this Agreement by such Investor or
failure by such Investors to perform with respect to any of its representations,
warranties or covenants contained in this Agreement. The Company agrees to
defend and hold the Investors harmless against and in respect of any and all
claims, demands, losses, costs, expenses, obligations, liabilities or damages,
including interest, penalties and reasonable attorney's fees, that they shall
incur or suffer, which arise out of, result from or relate to any breach of this
Agreement or failure by the Company to perform with respect to any of its
representations, warranties or covenants contained in this Agreement.

          11.2.2  All claims for indemnification under this Section 11.2 must be
made within 12 months following the Closing Date or otherwise shall be
considered null and void.

          11.2.3  Neither the Investors, on the one hand, nor the Company, on
the other, shall be required to make any indemnification payments pursuant to
this Section 11.2 unless and until the claims asserted against such party exceed
$25,000 after which such parties shall be entitled to recover for damages in
excess of such amount.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 20 OF 23
<PAGE>

          11.2.4  The maximum liability of the Investors, on the one hand, and
the Company, on the other, shall be the Purchase Price.

          11.2.5  The indemnification obligations contained in this Section 11.2
shall be the exclusive remedy available to the parties hereto with respect to
this Agreement.

11.3      HEADINGS. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

11.4      ENTIRE AGREEMENT. This Agreement (together with the Schedule,
Exhibits, Warrants and documents referred to herein) constitute the entire
agreement of the parties and supersede all prior agreements and undertakings,
both written and oral, between the parties, or any of them, with respect to the
subject matter hereof.

11.5      NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed to have been given (i) on the date they are
delivered if delivered in person; (ii) on the date initially received if
delivered by facsimile transmission followed by registered or certified mail
confirmation; (iii) on the date delivered by an overnight courier service; or
(iv) on the third business day after it is mailed by registered or certified
mail, return receipt requested with postage and other fees prepaid as follows:

                           If to WHAI:

                             WORLD HEALTH ALTERNATIVES, INC.
                             300 Penn Center Boulevard, Suite 201,
                             Pittsburgh, Pennsylvania 15235
                             ATTN:  Richard E. McDonald
                             Telephone No.: 412-829-7800

                           If to the Investors:

                           To the address listed on Schedule A herein or to the
                           address provided to the Company by an Investor.

11.6      SEVERABILITY. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any such term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 21 OF 23
<PAGE>

possible in an acceptable manner to the end that the transactions contemplated
hereby are fulfilled to the extent possible.

11.7      BINDING EFFECT. All the terms and provisions of this Agreement whether
so expressed or not, shall be binding upon, inure to the benefit of, and be
enforceable by the parties and their respective administrators, executors, legal
representatives, heirs, successors and assignees.

11.8      PREPARATION OF AGREEMENT. This Agreement shall not be construed more
strongly against any party regardless of who is responsible for its preparation.
The parties acknowledge each contributed and is equally responsible for its
preparation.

11.9      GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Pennsylvania, without giving
effect to applicable principles of conflicts of law.

11.10     JURISDICTION. This Agreement shall be exclusively governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania. If
any action is brought among the parties with respect to this Agreement or
otherwise, by way of a claim or counterclaim, the parties agree that in any such
action, and on all issues, the parties irrevocably waive their right to a trial
by jury. Exclusive jurisdiction and venue for any such action shall be the State
Courts of Pennsylvania.

11.11     PREPARATION AND FILING OF SECURITIES AND EXCHANGE COMMISSION FILINGS.
Each Investor shall reasonably assist and cooperate with the Company in the
preparation of all filings with the SEC after the Closing Date due after the
Closing Date.

11.12     FURTHER ASSURANCES, COOPERATION. Each party shall, upon reasonable
request by the other party, execute and deliver any additional documents
necessary or desirable to complete the transactions herein pursuant to and in
the manner contemplated by this Agreement. The parties hereto agree to cooperate
and use their respective best efforts to consummate the transactions
contemplated by this Agreement.

11.13     THIRD PARTIES Except as disclosed in this Agreement, nothing in this
Agreement, whether express or implied, is intended to confer any rights or
remedies under or by reason of this Agreement on any persons other than the
parties hereto and their respective administrators, executors, legal
representatives, heirs, successors and assignees. Nothing in this Agreement is
intended to relieve or discharge the obligation or liability of any third
persons to any party to this Agreement, nor shall any provision give any third
persons any right of subrogation or action over or against any party to this
Agreement.

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 22 OF 23

<PAGE>

11.14     FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of
any party hereto in the exercise of any right hereunder shall impair such right
or be construed to be a waiver of, or acquiescence in, any breach of any
representation, warranty, covenant or agreement herein.

11.15     COUNTERPARTS. This Agreement may be executed in one or more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original, but all of which taken
together shall constitute one and the same agreement. A facsimile transmission
of this signed Agreement shall be legal and binding on all parties hereto.

                         [SIGNATURES ON FOLLOWING PAGE]

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS
                                  PAGE 23 OF 23

<PAGE>

          IN WITNESS WHEREOF, the Investors and the Company have as of the date
below.

WHAI

WORLD HEALTH ALTERNATIVES, INC.            DATE: December 24, 2004

/s/ Richard E. McDonald
------------------------

By: Richard E. McDonald
Title: President

INVESTORS

/s/ Michael Potter                      /s/ Anthony Marchere
------------------                      ---------------------
Print Name: Michael Potter              Print Name: Anthony Marchere
Entity (if appropriate):                Entity(if appropriate: Insiders Trend
                                                               Fund LP
Northern Valley Partners, LLC           Title (if appropriate): General Partner
Title (if appropriate): President

/s/  Peter Siris                        /s/ Morris Smith and Devora Smith
----------------                        ----------------------------------
Print Name: Peter Siris                 Print Name: Morris Smith and Devora
                                                    Smith
Entity (if appropriate):                Entity(if appropriate):
Guerrilla Partners L.P.                 Title (if appropriate):
Title (if appropriate): Managing
                        Director

/s/ Michael H. Weiss                    /s/ Andrew Worden
--------------------                    -----------------
Print Name: Michael H. Weiss            Print Name: Andrew Worden
Entity (if appropriate):                Entity(if appropriate): Barron Partners,
                                                                LP
Title: (if appropriate):                Title (if appropriate):

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
                                  COMMON STOCK     SHARES OF       WARRANT #1
          INVESTOR               PURCHASE PRICE   COMMON STOCK   PURCHASE PRICE   WARRANT #1   WARRANT #2   WARRANT #3
------------------------------   --------------   ------------   --------------   ----------   ----------   ----------
<S>                              <C>              <C>            <C>              <C>          <C>          <C>
Barron Partners L.P.               $1,320,000      2,200,000       $1,000,000      2,666,640      800,000     800,000
730 Fifth Avenue, 9th Floor
New York, NY 10019
EIN#: 43-1981699

Guerrilla Partners, L.P.           $   79,002        132,000       $   96,000        159,998       48,000      48,000
237 Park Avenue, 9th Floor
New York, NY 10017
EIN#: 52-2141646

Insiders Trend Fund L.P.           $   82,500        137,500       $  100,000        166,665       50,000      50,000
330 Madison Avenue, 36th Floor
New York, NY 10017
EIN#13-3604093

Northern Valley                    $   82,500        137,500       $  100,000        166,665       50,000      50,000
Partners, LLC
30 Madison Avenue, 36th Floor
New York, NY 10017
EIN#: 13-4115160

Mr. Morris & Mrs. Devora           $   50,000         82,500       $   60,000         99,999       30,000      30,000
Smith
195 Wildacre Avenue
Lawrence, NY 11559
SS#: ###-##-####

Mr. Michael H. Weiss               $   36,000         60,500       $   44,000         73,333       22,000      22,000
25 Briarwood Lane
Lawrence, NY 11559
SS#: ###-##-####
                                   ----------      ---------       ----------     ----------    ---------   ---------
                                   $1,650,002      2,750,000       $2,000,000      3,333,300    1,000,000   1,000,000
</TABLE>

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

<PAGE>

                                    EXHIBIT A

                          REGISTRATION RIGHTS AGREEMENT

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

<PAGE>

                                    EXHIBIT B

                              FORM OF FIRST WARRANT

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

<PAGE>

                                    EXHIBIT C

                             FORM OF SECOND WARRANT

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

<PAGE>

                                    EXHIBIT D

                              FORM OF THIRD WARRANT

                        STOCK PURCHASE AGREEMENT BETWEEN
              WORLD HEALTH ALTERNATIVES, INC. AND CERTAIN INVESTORS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]