Document:

Exhibit
10.3

ASSET
PURCHASE AGREEMENT

** Certain information in this
exhibit has been omitted and has been filed separately with the Securities and
Exchange Commission pursuant to a confidential treatment request under Rule
24b-2 of the General Rules and Regulations under the Securities Exchange Act of
1934.

This
Asset Purchase Agreement (“Agreement”) is entered into on this 31st day of
July, 2006 by and between New Horizons Computer Learning Center of Albuquerque,
Inc., a Delaware corporation (“Seller”) on the one hand, and R.A.R.E.
Technologies, LLC, a New Mexico limited liability company (“Buyer”) and Robin
Dennehey, Eric Lopez, Rick Dennehey and Audra Lopez, each an individual,
(collectively “Members”) on the other hand. 
Buyer, Members and Seller are hereinafter sometimes individually
referred to as a “Party” or collectively as the “Parties”.

WHEREAS,
Seller wishes to sell to Buyer substantially all of its assets related to its
computer training business located in Albuquerque, New Mexico (the “Business”),
which includes the assets set forth on Exhibit “A” (the “Assets”) and Buyer’s
assumption of liabilities set forth on Exhibit “B” (the “Assumed Liabilities”);
and

WHEREAS,
Buyer desires to acquire the Assets and assume the Assumed Liabilities from
Seller; and

WHEREAS,
concurrent with the transaction described in this Agreement, Buyer desires to
become a franchisee of New Horizons Franchising Group, Inc. (“Franchisor”) in
Albuquerque, New Mexico, it being understood that Franchisor is an affiliate of
Seller.

NOW, THEREFORE, in
consideration of the covenants and agreements contained herein, the Parties
agree as follows:

1.                                      Purchase
of Assets; Excluded Assets; Closing Date:

(a)                                  Pursuant
to the terms and subject to the conditions set forth in this Agreement, Seller
hereby agrees to sell, grant, transfer, convey, assign and deliver the Assets
to Buyer as of the close of business on July 31, 2006 (the “Closing Date”),
subject to fulfillment of each of the conditions set forth in Section 4
below.  The Assets shall include, without
limitation, certain identified prepaid assets, furniture and fixed assets,
inventory, license fees and deposits, accounts receivable, certain employee
obligations, any consumer business, customer lists and certain computer
hardware and software associated with the Business, all of which are set forth
on Exhibit “A”.

(b)                                 The
Assets shall not include an agreement between Seller’s affiliate and the [**************]
which purchases training services through the [**************]. Notwithstanding
the foregoing, Buyer shall be entitled, but not required, to deliver training
under the agreement set forth in the preceding sentence in its capacity as a
New Horizons franchisee pursuant to Franchisor’s Enterprise Learning Solutions
Program.  The Parties acknowledge and
agree that, other than as otherwise expressly stated in this Agreement, no
other assets, personal or real property of Seller is included in this
transaction, including but not limited to, non-scheduled lease obligations,
services previously provided by the regional office of Seller’s affiliate such
as accounting, payroll, legal or other similar services, and assets of any of
Seller’s affiliates.

2.                                      Consideration:  In consideration for the transfer of the
Assets, Buyer shall, on the Closing Date:

(i)                                     pay
to Franchisor the sum of $100,000 (the “Purchase Price”), comprised of $60,000
in the form of a wire transfer or cashier’s check to Franchisor and a
promissory note of $40,000 executed by Buyer in favor of Franchisor in the form
attached hereto as Exhibit “F” (the “Promissory Note”) with a one (1) year term
and an 8% annual interest rate;

(ii) execute a
standard ten (10) year franchise agreement with Franchisor for a territory
which comprises the entire state of New Mexico, El Paso, Texas and an area
which is within fifty (50) miles of El Paso, Texas (the “Franchise Agreement”)
and shall remit to all fees to Franchisor which are typically associated with
such Franchise Agreement, including but not limited to the payment of customary
monthly fees, such as royalties and advertising fees (but exclusive of
applicable initial franchise fees, which are already included in the cash
component of the consideration set forth in the preceding section) ; [**************]:

[**************]

[**************]

[**************]

(iii) assume the
Assumed Liabilities which are set forth on Exhibit “B”, including the Training
Obligations as defined in Section 4(d), below.

3.                                      Taxes;
Access to Assets:  Buyer shall be
solely responsible for the payment of any and all taxes, excise and other
governmental charges or fees, if any, which are payable in connection with the
purchase of the Assets.  As of the
Closing Date, Buyer shall be entitled to full access to the Assets located at
Seller’s facility at Albuquerque, New Mexico (the “Albuquerque Facility”).

4.                                      Conditions
Precedent to Closing; Covenants:

(a)                                  Immediately
upon the execution of this Agreement, Buyer shall submit an application to the
New Mexico Higher Education Department (“NMHED”) seeking approval for a change
in ownership of the Business and shall use its best efforts to expedite the
approval process, including providing all reasonably required information to
the NMHED and paying any necessary fees associated with such approval.  Buyer agrees that it must obtain NHMED
approval no later than November 1, 2006.

 2
 

(b)                                 On
the Closing Date, (i) the Parties shall execute the Bill of Sale which is
attached hereto as Exhibit “C” and the Assignment and Assumption Agreement for
the Albuquerque Facility which is attached hereto as Exhibit “D” and the
personal guaranty for the Albuquerque Facility which is attached hereto as
Exhibit “E”; (ii) Buyer and Franchisor shall execute the Franchise Agreement;
and (iii) Seller shall take all steps reasonably necessary to transfer the
Assets to Buyer, including obtaining the requisite consent of its landlord and
its lenders.

(c)                                  Within
sixty (60) days after the Closing Date, Seller shall cause any UCC filings to
be terminated or otherwise released such that the Assets are unencumbered.

(d)                                 Effective
as of the Closing Date, Buyer shall fulfill Seller’s obligations to customers
for training which has been purchased by such customers prior to the Closing
Date but not yet delivered as of the Closing Date, (the “Training Obligations”),
including all cash refunds requested from customers for the Training
Obligations.  For purposes of this
Agreement, the Training Obligations shall include, but are not limited to, sold
but unredeemed coupons, unexpired club memberships, corporate seat licenses,
unredeemed programs or tracks, sold but undelivered training events (i.e.,
classes which were purchased but not completed) and sold but undelivered room
rental agreements.

(e)                                  Effective
as of the Closing Date, Buyer and Seller agree to refrain from soliciting,
recruiting or hiring any employees of the other party or any of the other party’s
affiliates for so long as the Franchise Agreement remains in effect.  The foregoing restriction shall apply to any
current or future employees of Seller or Buyer, respectively, or any of Seller’s
or Buyer’s affiliates, respectively, and for a period of one (1) year following
the termination of any such employee’s employment with Seller or Buyer,
respectively, or any of Seller’s or Buyer’s affiliates, respectively.

(f)                                    Any
debts, liabilities or obligations incurred by or actions, claims or lawsuits
asserted against either Buyer or Seller which relate to the operation of the
Business on or prior to the Closing Date will be the responsibility of
Seller.  Conversely, any debts, liabilities
or obligations incurred by or actions, claims or lawsuits asserted against
either Buyer or Seller which relate to the operation of the Business after the
Closing Date, including the Assumed Liabilities and the Training Obligations,
will be the responsibility of Buyer.

(g)                               In
the event that any of the foregoing conditions are not completely satisfied on
or before the Closing Date, then such failure by the party responsible for
fulfilling the condition shall relieve the other party from any obligation to
perform under this Agreement.

5.                                      Representations
and Warranties of Seller:  Seller
represents, warrants and covenants to the best of its knowledge as follows:

(a)                                  Seller
is a Delaware corporation, duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all necessary
corporate powers to own its assets and to operate its business as now owned and
operated by it.

 3
 

(b)                                 Seller
has the right, power, legal capacity, and authority to enter into and perform
its obligations under this Agreement.

(c)                                  Seller
has good and marketable title to all of the Assets, and, except as otherwise
indicated herein, such Assets are free and clear of any restrictions or
conditions to sale, conveyance or transfer and are free and clear of all liens,
mortgages, pledges, encumbrances, leases, agreements, rental agreements,
charges, claims, security interests, taxes, conditions or restrictions of any
nature or description whatsoever.   The
Assets are in good working condition, ordinary wear and tear excepted.  Except as otherwise expressly provided
herein, the Assets are being sold “as is, where is” without any express or
implied warranties whatsoever.

(d)                                 Except
as set forth on Schedule 5(d), there are no claims, actions or lawsuits
involving Seller relating to the Assets.

(e)                                  Seller
shall execute all documents and take all steps reasonably necessary to transfer
the Assets to Buyer effective as of the Closing Date.

(f)                                    Seller
makes no representations or warranties regarding the quality of the accounts
receivable, including whether such accounts are collectible.

6.                                      Representations
of Buyer and Members:  Buyer
represents, warrants and covenants as follows:

(a)                                  Buyer
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of New Mexico.  Members own 100% of the issued and
outstanding equity of Buyer.

(b)                                 Buyer
has the right, power, legal capacity, and authority to enter into and perform
its obligations under this Agreement and the execution of this Agreement has
been duly authorized by Members.

(c)                                  As
of the Closing Date, Buyer will duly observe and assume full responsibility for
the Assumed Liabilities and the Training Obligations, and shall assume
possession and ownership of the Assets.

7.                                      Indemnification:

(a)                                  Buyer
shall indemnify, hold harmless and defend Seller, its parent company,
affiliates, officers, agents, shareholders and employees from and against any
cause of action, claim, loss or liability arising out of or resulting in any
way from: (i) the negligent acts or omissions of Buyer’s officers, employees,
agents or Members; (ii) any breach or inaccuracy of any representation,
warranty or covenant of Buyer set forth in this Agreement; (iii) any debts,
claims, liabilities or lawsuits which relate to the use or operation of the
Business or the Assets after the Closing Date; and (iv)  the failure to fully and adequately assume
the Assumed Liabilities, including the Training Obligations.

 4
 

(b)                                 Seller
shall indemnify, hold harmless and defend Buyer, its affiliates, officers, agents,
shareholders and employees from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from: (i) the negligent acts
or omissions of Seller’s officers, employees, agents or shareholders; (ii) any
breach or inaccuracy of any representation, warranty or covenant of Seller set
forth in this Agreement; and (iii) any debts, claims, liabilities or lawsuits
which relate to the use or operation of the Business or the Assets prior to the
Closing Date

(c)                                  If
after ten  (10) days from receipt of
written notice the indemnifying party fails to defend the indemnified party as
required above, the indemnified party will have the right (but not the
obligation) to undertake the defense, compromise or settlement of such action
on behalf of, and for the account and at the risk of the indemnifying party.

8.                                      Insurance:  Buyer agrees to maintain general liability
insurance in the amounts of $1,000,000 per claim and $1,000,000 in the
aggregate, and upon written request Buyer will provide Seller with certificates
of insurance naming Seller or its affiliated companies as additional insureds,
in order to ensure that Buyer is able to meet its indemnification obligations
hereunder.  Notwithstanding any provision
to the contrary, to the extent permitted by law, Buyer may satisfy, in whole or
in part, the insurance requirements of this Agreement by a plan of self
insurance.

9.                                      Customer
Records: The Parties will maintain
the confidentiality of all customer records and files in accordance with applicable
federal and state laws and regulations. 
On the Closing Date, Seller agrees to transfer to Buyer all
original customer records and files that relate to the purchase and delivery of
computer training for the Business, including the files which relate to the
Training Obligations.  In the event that
Seller is audited by any federal, state or local entity following the Closing
Date, Buyer shall provide Seller or its designees with reasonable access,
during normal business hours, to all original customer files related to the
Assets.

10.                               Notices:  All notices with respect to this Agreement
will be sent by certified mail or facsimile, to the following addresses or
facsimile numbers:

If to Seller:

New Horizons Computer
Learning Center of Albuquerque, Inc.

Attention:  Office of General Counsel

1900 S. State College
Blvd., Suite 200

Anaheim, CA  92806

Tel:  (714) 940-8000

Fax:  (714) 938-6007

If to Buyer:

R.A.R.E. Technologies,
LLC

c/o Smigel Anderson &
Sacks LLP

4431 North Front
Street

 5
 

Harrisburg, PA  17110

Tel:  (717) 234-2401

Fax:  (717) 234-3611

11.                               Entire
Agreement; Assignment:  Except for the Franchise Agreement and
related agreements which are being executed concurrently herewith, this
Agreement and the exhibits attached hereto represent the entire agreement
between the Parties and are binding on each Party’s respective successors,
heirs and assigns.  This Agreement may
not be assigned without the written consent of the other party, and may only be
amended by a written agreement signed by authorized representatives of both
Parties.

12.                               Waiver:  The failure of either party to
enforce any right, remedy or condition of this Agreement shall not be deemed a
waiver thereof nor shall it void or otherwise affect its right to enforce the
same right, remedy or condition at any subsequent time.

13.                               Survival
of Representations and Warranties:  The representations and
warranties set forth in this Agreement shall survive and continue until the
expiration of the applicable statute of limitations.

14.                               Counterparts:  This Agreement may be executed in one or more
counterpart, each of which shall be deemed an original, and all of which
together shall constitute but one and the same instrument.

15.                               Facsimile
Signatures:  For purposes of
execution of this Agreement, faxed signature pages shall be deemed the same as
original signature pages.

 6
 

16.                               Governing
Law:  This
Agreement will be governed by the laws of the State of California.

 

NEW HORIZONS COMPUTER LEARNING
CENTER OF ALBUQUERQUE, INC.

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. Bresnan

  
	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
  R.A.R.E. TECHNOLOGIES, LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Robin Dennehey

  
	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MEMBERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Robin Dennehey

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Eric Lopez

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Rick Dennehey

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Audra Lopez

  
					

 

 7
 

EXHIBIT A

Assets

1.                                       The following assets are included in the sale of
the Business:

	
  Trade Accounts Receivable:

  	
   

  	
  $ 

  	
  278,603 

  	
  (a)

  
	
  Prepaid Expenses:

  	
   

  	
  $

  	
  17,630

  	
   

  
	
  Inventory – Student Kits:

  	
   

  	
  $

  	
  17,425

  	
   

  
	
  Inventory
  – Manuals:

  	
   

  	
  $

  	
  4,492

  	
   

  
	
      

  	
   

  	
      

  	
   

  
	
  Fixed
  Assets (b)

  	
   

  	
   

  	
   

  
	
      

  	
   

  	
      

  	
   

  
	
  Leasehold Improvements:

  	
   

  	
  $

  	
  64,847

  	
   

  
	
  Capitalized Computer Software:

  	
   

  	
  $

  	
  25,054

  	
   

  
	
  Furniture & Fixtures:

  	
   

  	
  $

  	
  63,896

  	
   

  
	
  Computer Equipment:

  	
   

  	
  $

  	
  285,328

  	
   

  

 

(a)       Gross value to be netted against
unapplied cash, suspense, CM reserve, and allowance for doubtful accounts

(b)       Gross value of fixed assets
shown.  Accumulated depreciation and
amortization is $401k and net fixed asset value is around $38k

Buyer and Seller acknowledge
that the assets listed above have been calculated as of June 30, 2006.  Buyer and Seller agree to revise these assets
within thirty (30) days of the Closing Date to reflect the actual operations of
the Business as of the Closing Date.

 8
 

EXHIBIT B

Assumed Liabilities

1.                                       Telephone systems located at the Albuquerque
Facility.

2.                                       Cellular and regular telephone numbers (with any
remaining service term assumed at Buyer’s expense).

3.                                       DSL computer line (with any remaining service
term assumed at Buyer’s expense).

4.                                       Training Obligations as more fully described in
Section 4(d).

5.                                       Buyer shall assume those obligations which are
specifically listed below:

	
  Accounts Payable:

  	
   

  	
  $

  	
  23,887

  	
   

  
	
  Payable to other Franchisees:

  	
   

  	
  $

  	
  6,814

  	
   

  
	
  Sales Tax Payable:

  	
   

  	
  $

  	
  21,322

  	
   

  
	
  Other
  Accrued Liabilities:

  	
   

  	
  $

  	
  22,236

  	
   

  

 

Buyer and Seller acknowledge
that the liabilities listed above have been calculated as of June 30,
2006.  Buyer and Seller agree to revise
these obligations within thirty (30) days of the Closing Date to reflect the
actual operations of the Business as of the Closing Date.

6.                                       On the Closing Date, Seller shall terminate the
existing employees of the Center and Buyer shall offer employment to those
employees who Buyer wishes to employ.   
Buyer shall indemnify Seller for any liability which may arise by virtue
of Buyer’s failure to re-hire employees or which may relate to any employment
issues for hired employees.

 9
 

EXHIBIT C

BILL OF
SALE

FOR GOOD AND VALUABLE CONSIDERATION,
the receipt of which is hereby acknowledged, the undersigned, New Horizons
Computer Learning Center of Albuquerque, Inc., a Delaware corporation having
its principal place of business at 1900 S. State College Blvd., Suite
200, Anaheim, CA  92806 (“Seller”) hereby
sells, conveys, transfers, assigns and delivers to R.A.R.E. Technologies, LLC,
a New Mexico limited liability company having an address at 6001 San Mateo
Blvd., NE, Suite A1, Albuquerque, NM 
87109 (“Buyer”), all of its right, title and interest in and to the
Assets as such term is defined in that certain Asset Purchase Agreement (“Agreement”),
dated as of July 31, 2006, among Buyer and Seller.

TO HAVE AND TO HOLD the same
unto Buyer, its successors and assigns forever.

This
Bill of Sale is delivered pursuant to and is subject to and governed by the
terms and conditions of the Agreement. The representations, warranties and
covenants as set forth in the Agreement shall survive delivery of this Bill of
Sale as set forth in the Agreement.

This Bill of Sale is
ancillary to the Agreement, and in the event of a conflict between the terms of
this Bill of Sale and the terms of the Agreement, the terms of the Agreement
shall govern.

IN
WITNESS WHEREOF, the undersigned has caused this instrument
to be duly executed as of the 31st day of July, 2006.

	
  NEW HORIZONS COMPUTER LEARNING CENTER OF ALBUQUERQUE, INC.

  	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Thomas J. Bresnan

  	
   

  
	
   

  	
  President

  	
   

  
					

 

 10

EXHIBIT D

ASSIGMENT
AND ASSUMPTION OF LEASE

ASSIGMENT
AND ASSUMPTION entered into as of the 31st day of July, 2006,
by and among H.L.W., LLC, a New Mexico limited
liability company (“Landlord”), NEW HORIZONS COMPUTER
LEARNING CENTER OF ALBUQUERQUE, a Delaware corporation (“Original
Tenant”), NEW HORIZONS WORLWIDE, INC., a Delaware
corporation (“Guarantor”) and R.A.R.E. TECHNOLOGIES,
LLC, a New Mexico limited liability company (“New Tenant”).

1.     BACKGROUND:    The following describes the background to
this Assignment and Assumption:

a.               Landlord and
Original Tenant entered into the Lease Agreement dated January 22, 2001
pertaining to the real estate described therein (the “Lease”).  A copy of the Lease is attached hereto as EXHIBIT “A”, which is incorporated
herein by reference.  Guarantor was
supposed to execute the Limited Guaranty attached as Exhibit F to the Lease
(the “Limited Guaranty”), but through mistake, the Limited Guaranty was
executed by Original Tenant.

b.              Original Tenant, New
Tenant and Guarantor have requested Landlord to consent to the assignment of
the Lease from the Original Tenant to the New Tenant.  Landlord is willing to do so under the
conditions set forth herein, including without limitation, that the Original
Tenant remain fully liable for all obligations of the Tenant under the Lease,
and that Guarantor execute the Limited Guaranty.

c.               The parties are
entering into this Assignment and Assumption to document their agreements
regarding the assignment of the Lease from Original Tenant to New Tenant.

2.     ASSIGNMENT
AND ASSUMPTION:

a.               Original Tenant
hereby assigns all its right, title, and interest in and to the Lease to New
Tenant.  New Tenant hereby accepts such
assignment and assumes all obligations of the Tenant under the Lease as of the
date of this Assignment and Assumption; provided, however, that Original Tenant
agrees that it will remain fully liable for all obligations of the Tenant under
the Lease the same as if this Assignment and Assumption had never been signed.

3.     CONSENT
OF LANDLORD:

a.               Subject to the
other terms stated in this Assignment and Assumption, including the condition
that Original Tenant remain fully liable for all obligations of the Tenant

 11
 

under the Lease and that
the Guarantor execute the Guaranty, Landlord hereby consents to the assignment
of the Lease from the Original Tenant to the New Tenant.

3.     ORGANIZATIONAL
DOCUMENTATION:

a.               Contemporaneously
with the execution of this Assignment and Assumption,  Original Tenant, New Tenant and Guarantor
have submitted to Landlord such organizational documentation and certificates
of authority as Landlord has requested to establish the existence and good
standing of such parties, as applicable, and the authority of the individuals
executing this Assignment and Assumption on behalf of such parties.  Original Tenant, New Tenant and Guarantor,
and each individual executing this Assignment and Assumption on behalf of such
parties, represent and warrant that such documentation accurately depicts the
existence and status of Original Tenant, New Tenant and Guarantor, as
applicable, and the authority of the individuals executing this Assignment and
Assumption on behalf of such parties.

4.     GUARANTY
OF GUARANTOR:

a.               Guarantor hereby
guarantees to Landlord the prompt performance of all obligations of the Tenant
under the Lease, whether financial or otherwise.  In furtherance of such guaranty, and not in
derogation thereof, Guarantor agrees to execute the Limited Guaranty if the
form attached as Exhibit F to the Lease, modified as necessary to refer to the
New Tenant as the Tenant under the Lease.

5.     MISCELLANEOUS:

a.               This Assignment and
Assumption constitutes the entire agreement of the parties with respect to the
subject matter hereof, supersedes all prior agreements, oral or written, pertaining
to the subject matter hereof, may be modified only by an instrument in writing,
signed by the party to be charged, and will be governed as to validity,
interpretation, effect, enforcement, and in all other respects in accordance
with the internal (without resort to principles of conflict of laws)
substantive and procedural laws of the State of New Mexico, except to the
extent that the laws of the United States may prevail.  In the event that any one or more of the
provisions contained in this Assignment and 
Assumption shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
will not affect any other provision hereof. 
In the event of any litigation involving this Assignment and Assumption,
the prevailing party will be entitled to recover its attorneys’ fees from the
losing party.

 12
 

IN
WITNESS WHEREOF, the parties have executed this Assignment
and Assumption as of the date written above.

 

	
  LANDLORD:

  	
   

  	
  H.L.W., LLC,

  
	
   

  	
   

  	
  a New Mexico limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  	
   

  
	
   

  	
   

  	
  its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ORIGIANL
  TENANT:

  	
   

  	
  NEW HORIZONS COMPUTER LEARNING

  CENTER OF ALBUQUERQUE,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Thomas J.
  Bresnan

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NEW TENANT:

  	
   

  	
  R.A.R.E.
  TECHNOLOGIES, LLC,

  
	
   

  	
   

  	
  a New Mexico
  limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Robin Dennehey

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTOR:

  	
   

  	
  NEW
  HORIZONS WORLWIDE, INC.,

  
	
   

  	
   

  	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Thomas J.
  Bresnan

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  President

  	
   

  
								

 

 13
 

EXHIBIT “A” TO ASSIGNMENT AND
ASSUMPTION OF LEASE

LEASE AGREEMENT

 14
 

EXHIBIT E  

PERSONAL GUARANTEE

As an inducement to New Horizons Computer
Learning Center of Albuquerque, Inc. (“Assignor”) to
execute the Assignment and Assumption of Lease Agreement (the “Lease Assignment”)
with R.A.R.E. Technologies, LLC (“Assignee”)  and in consideration of Assignor’s executing
the Lease Assignment and of the sum of One Dollar ($1.00) now paid by Assignor
to Guarantors, the receipt of which is hereby acknowledged, Guarantors jointly
and severally agree as follows:

1.                                       Guarantors shall pay or cause to be paid to Assignor all monies payable
by Assignee under the Lease Assignment on the days and times in the manner
therein appointed for payment thereof.

2.                                       Guarantors unconditionally guarantee full performance and discharge by
Assignee of all the obligations of Assignee under the Lease Assignment at the
times and in the manner therein provided.

3.                                       Guarantors shall indemnify and save harmless Assignor and its affiliates
against and from all losses, damages, costs, and expenses which Assignor and
its affiliates may sustain, incur, or become liable for by reason of:

a.                                       the failure for any reason whatsoever of Assignee to pay the monies
payable pursuant to the Lease Assignment or to do and perform any other act,
matter or thing pursuant to the provisions of the Lease Assignment; or

b.                                      any act, action, or proceeding of or by Assignor, its agents,
employees, etc. for or in connection with the recovery of monies or the obtaining
of performance by Assignee of any other act, matter or thing pursuant to the
provisions of the Lease Assignment.

4.                                       Assignor shall not be obligated to proceed against Assignee or exhaust
any security from Assignee or pursue or exhaust any remedy, including any legal
or equitable relief against Assignee, before proceeding to enforce the
obligations of the Guarantors herein set out, and the enforcement of such
obligations may take place before, after, or contemporaneously with,
enforcement of any debt or obligation of Assignee under the Lease Assignment.

5.                                       Without affecting the Guarantors’ obligations under this Guarantee,
Assignor, without notice to the Guarantors, may extend, modify, or release any
indebtedness or obligation of Assignee, or settle, adjust, or compromise any
claims against Assignee.  Guarantors
waive notice of amendment of the Lease Assignment and notice of demand for
payment or performance by Assignee.

6.                                       Guarantors’ obligations hereunder shall remain in full force and
effect, and shall be unaffected by: 
(a) the unenforceability of the Lease Assignment against Assignee;
(b) the termination of any obligations of Assignee under the Lease
Assignment by operation of law or

 15
 

otherwise; (c) the bankruptcy,
insolvency, dissolution, or other liquidation of Assignee, including, without
limitation, any surrender or disclaimer of the Lease Assignment by the trustee
in bankruptcy of Assignee; (d) Assignor’s consent or acquiescence to any
bankruptcy, receivership, insolvency, or any other creditor’s proceedings of or
against Assignee, or by the winding-up or dissolution of Assignee, or any other
event or occurrence which would have the effect at law of terminating the
existence of Assignee’s obligations prior to the termination of the Lease
Assignment; or (e) by any other agreements or other dealings between
Assignor and Assignee  having the effect
of amending or altering the Lease Assignment or Assignee’s obligations
hereunder, or by any want of notice by Assignor to Assignee of any default of
Assignee or by any other matter, thing, act, or omission of Assignor
whatsoever.

7.              Notices
to Guarantors:

	
  Name

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
  Robin Dennehey

  	
   

  	
  16 Sheridan

  
	
  Rick Dennehey

  	
   

  	
  Irvine, CA 92692

  
	
   

  	
   

  	
   

  
	
  Eric Lopez

  	
   

  	
  5905 Tres Vistas Ct. NW

  
	
  Audra Lopez

  	
   

  	
  Albuquerque, NM 87120

  

 

 

IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee as of the day and
year of the Lease Assignment.

	
  GUARANTORS:

  
	
   

  
	
   

  	
   

  
	
  Robin Dennehey

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Eric Lopez

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Rick Dennehey

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Audra Lopez

  	
   

  

 

 16
 

 

EXHIBIT F

PROMISSORY
NOTE

	
  $40,000

  	
   

  	
  JULY 31, 2006

  

 

FOR VALUE RECEIVED, the undersigned (“Maker”),
hereby promises to pay to the order of New Horizons Franchising Group, Inc., a
Delaware corporation (“New Horizons”), or order, the sum of FORTY THOUSAND DOLLARS ($40,000), which principal and
interest shall be due and payable in TWELVE
(12) equal monthly installments of $3,479.54 each,
commencing on September 1, 2006 and continuing thereafter on the 1st day of
each month until August 1, 2007, when the outstanding principal balance shall
be due and payable in full.  The amounts due
under this Promissory Note represent a portion of the initial franchise fees
owed for the Albuquerque, NM territory, which is comprised of the entire state
of New Mexico, El Paso, TX and an area within a fifty (50) mile radius of El
Paso, Texas, as more fully described in the Franchise Agreement (as such term
is defined below).

Maker
reserves the right to prepay all or any portion of this Promissory Note at any
time and from time to time without premium or penalty of any kind by paying the
principal amount of such prepayment.

In
the event that (a) Maker shall default in the payment of principal due
hereunder and such default shall continue for ten (10) days after the mailing
of written notice of such default to Maker at Maker’s last known address, or
(b) a receiver is appointed for Maker or any part of Maker’s property, or (c)
Maker makes any general assignment for the benefit of Maker’s creditors, or any
proceeding is commenced by or against Maker or any guarantor, surety, endorser,
or other person directly or indirectly liable for any of the obligations
hereunder, or (d) R.A.R.E. Technologies, LLC shall be deemed in default of the
Franchise Agreement of August 1, 2006 between R.A.R.E. Technologies, LLC and
New Horizons (the “Franchise Agreement”) (the events described in subparts (a),
(b), (c) and (d) are collectively referred to as Default”), the holder of this
Promissory Note at the time of the Default (the “Holder”) shall have the right,
if a Default occurs, to declare the outstanding principal balance hereof and
all unpaid accrued interest immediately due and payable in full (the “Balance
Due”).

If
a Default occurs, Maker also agrees to pay upon demand all costs and expenses
reasonably incurred or paid at any time by Holder, including, but not limited to,
reasonable attorneys’ fees and other legal costs, in enforcing payment and
collection of the Balance Due of this Promissory Note.

Maker
agrees: no delay or omission by Holder in exercising any of its rights or
remedies hereunder or otherwise shall impair any of such rights or remedies,
nor shall any such delay or omission be construed as a waiver of any Default
hereunder, and Holder may exercise every such right and remedy from time to
time as often as Holder may deem expedient; all rights and remedies of Holder
whether or not granted hereunder shall be cumulative and may be exercised
singularly or concurrently, and no such right or remedy is intended to be
exclusive of any other right or remedy of Holder; and no waiver by Holder of
any Default hereunder shall be effective unless in writing and signed and
delivered by Holder, and no such waiver or any default shall extend to or
affect any subsequent or other Default or impair any rights or remedies of
Holder.

This
Promissory Note shall be the joint and several obligation of Maker and all
guarantors, sureties, endorsers, and/or any other persons now or hereafter
liable hereon, if any, and shall be binding upon them and their heirs,
executors, personal representatives, successors and assigns.

 17
 

Any
demand upon or notice of other communication to Maker shall be effective if
delivered by hand delivery or deposited in the mails, postage prepaid,
addressed to Maker at the address of Maker as set forth in Holder’s records,
or, if Maker has notified Holder of a change of address, to the last address of
which Holder has been so notified.

If
any provision or application of this Promissory Note is adjudicated to be
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision or application of this Promissory Note that can be given
effect without the invalid or unenforceable provision or application.  Interest shall accrue hereunder at the lesser
of (a) the rate stated hereinabove, or (b) the maximum rate permitted by law.

This
Promissory Note shall be governed by, and construed and enforced in accordance
with, the internal laws of the State of California applicable to contracts made
and to be performed wholly within such state.

IN
WITNESS WHEREOF, Maker has executed and delivered this Promissory Note at the
place specified above and as of the date first written above.

MAKER:

R.A.R.E
TECHNOLOGIES, LLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Robin Dennehey

  	
   

  
	
   

  	
  President

  	
   

  

 

 18
 

 

Schedule 5(d)

Pending Litigation

On
July 17, 2006, Seller filed a lawsuit against [**************] in Bernalillo
County, New Mexico District Court entitled New Horizons Computer
Learning Center of Albuquerque, Inc. v Jason Mayfield, Bernalillo
County District Court Case No. CV 2006 05486, seeking damages and an injunction
against defendant, a former sales representative for Seller.  In the lawsuit, Seller is seeking to enjoin
defendant from contacting certain of Seller’s customers whose information was
improperly accessed by defendant during defendant’s employment with Seller.

 19Exhibit
4.2.3

July 10, 2006

To:          UBS Luxembourg S.A.

36-38 Grand-Rue

L-1660 Luxembourg

Attention: Michael
Schwitter/Fleming Gerster

Facsimile:
+352 45 1212 703

To:          The Bank of New York

One Canada Square

Canary Wharf

London E14 5AL

Attention: Corporate
Trust Administration

Facsimile:
+44 20 7964 6399

Dear Sir/Madam

U.S.$150,000,000
8.5% Loan Participation Notes due 2008 (the “Notes”) issued by, but without
recourse to, UBS (Luxembourg) S.A. (the “Bank”) for the sole purpose of funding
a U.S.$150,000,000 loan (the “Loan”) to Wimm-Bill-Dann Foods OJSC (the “Borrower”),
such loan unconditionally, irrevocably, jointly and severally guaranteed by OAO
Lianozovo Dairy Plant, OAO Tsaritsino Dairy Plant, ZAO Trade Company
Wimm-Bill-Dann, Dairy Baltic milk OJSC (formerly Roska OJSC) and Dairy OJSC (OAO “Molochny Kombinat”) (together
the “Guarantors”)

We refer to the loan agreement dated 14 May
2003 entered into between the Borrower and the Lender (the “Loan Agreement”) in connection with the
above-mentioned Loan.  Terms used but not
defined herein shall have the meanings given to them in the Loan Agreement.

It is expected that on or about 1 May 2007, OAO
Tsaritsino Dairy Plant, Baltic milk OJSC (formerly Roska OJSC) and Dairy OJSC
(OAO “Molochny Kombinat”) will be absorbed into OAO Lianozovo Dairy Plant. 
Accordingly, all the rights and obligations of these Guarantors will be
assumed by OAO Lianozovo Dairy Plant and these Guarantors will cease to be Guarantors
of the Loan from the date of such dissolution.

We refer you to Clause 14.13(d) of the Loan
Agreement which provides that, provided that the Borrower complies with the
requirements of Clause 14.13 of the Loan Agreement, the Guarantee in relation
to any Guarantor can be terminated at any time by the Borrower and the relevant
Guarantor without the consent of the Lender and the agreed funding source (as
defined in the Loan Agreement), provided that a notice of such intended
termination is delivered to the Lender and the Trustee no later than 20 days
before such intended termination.

Accordingly, we hereby give you notice that we
wish to terminate the Guarantees of OAO Tsaritsino Dairy Plant, Dairy Baltic milk
OJSC (formerly Roska OJSC) and Dairy OJSC (OAO “Molochny Kombinat”) with effect from 1 January 2007.

We also give you notice that on or about 31 August 2006 OAO Lianozovo
Dairy Plant will change its name to OJSC Wimm-Bill-Dann. This change of name
will have no effect on any of the obligations of OAO Lianozovo Dairy Plant
under the Guarantee.

We further confirm that, following the termination of the
guarantees, the Borrower will be in
compliance with the requirements of Clause 14.13.

Kindly confirm your agreement to the termination of such Guarantees by
counter-signing this letter.

This letter shall be governed by and construed in accordance with English
law.

Yours faithfully,

WIMM-BILL-DANN
FOODS OJSC

By:

By:

OAO
TSARITSINO DAIRY PLANT

By:

By:

DAIRY BALTIC MILK OJSC

By:

By:

DAIRY OJSC

By:

By:

OAO LIANOZOVO DAIRY PLANT

By:

By:

We hereby acknowledge receipt, and confirm our
agreement to the terms, of this letter

UBS (LUXEMBOURG) S.A.

By:

THE BANK OF NEW YORK

By:

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