Document:

NN EX 10.1 8K 12-04-06

    EXHIBIT
      10.1

    

      EXECUTIVE
        EMPLOYMENT AGREEMENT

      

      THIS
        AGREEMENT
        is made
        as of this 30th day of November, 2006 by and between Whirlaway Corporation,
        an
        Ohio Corporation with its principal place of business in Wellington, Ohio
        (the
“Company”), and Thomas G. Zupan (the “Executive”).

      

      WITNESSETH:

      

      WHEREAS,
        the
        Company recognizes the value of the Executive’s experience and expertise and
        desires to continue in its employment of the Executive as Vice-President
        of the
        Company; and

      

      WHEREAS,
        the
        Executive wishes to continue to be employed by the Company in such capacity;
        and

      

      WHEREAS,
        the
        Company and the Executive mutually desire that their employment relationship
        be
        set forth under the terms of this written Employment Agreement;

      

      NOW,
        THEREFORE,
        in
        consideration of the foregoing and of the promises, covenants and mutual
        agreements set forth below, and other good and valuable consideration, the
        receipt and sufficiency of which are hereby acknowledged, the parties hereto
        do
        hereby agree as follows:

      

      	1.  	
              Employment.
                The Company agrees to continue to employ the Executive, and the Executive
                agrees to continue to be employed by the Company, on the terms and
                conditions set forth herein. The Company reserves the right to terminate
                the Executive at any time, subject to the Company’s obligation to pay the
                Executive compensation as otherwise provided for
                herein.

            

      

      	2.  	
              Term.
                This Agreement is effective as of November 30, 2006 (the “Commencement
                Date”) and shall continue until the second anniversary of the Commencement
                Date, unless further extended or sooner terminated as hereinafter
                provided. On the second anniversary of the Commencement Date and
                on the
                anniversary of the Commencement Date in each year thereafter, the
                term of
                the Executive’s employment hereunder will be extended automatically by one
                (1) additional year, unless at least 30 days prior to the date of
                such
                automatic extension the Company shall have delivered to the Executive,
                or
                the Executive shall have delivered to the Company, written notice
                that the
                term of the Executive’s employment hereunder shall not be extended.
                

            

      

      	3.  	
              Position
                and Duties.
                The Executive shall serve as Vice-President of the Company with
                responsibilities and authority as may from time to time be assigned
                by the
                President or the Board of Directors of the Company. The Executive
                agrees
                to perform faithfully and industriously all duties the Company may
                assign
                to him. The Executive shall devote all of his working time and efforts
                to
                the business affairs of the Company, to the exclusion of all other
                employment or business interests other than passive personal investments,
                charitable, religious or civic activities. The Executive may not
                engage,
                directly or indirectly, in any other business or businesses, whether
                or
                not similar to that of the Company, except with the consent of the
                Board
                of Directors of the Company. 

            

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      	4.  	
              Compensation
                and Benefits.
                In consideration of the Executive’s performance of his duties hereunder,
                the Company shall provide the Executive with the following compensation
                and benefits during the term of his employment
                hereunder.

            

      

      	(a)  	
              Base
                Salary.
                The Company shall pay to the Executive an aggregate base salary (“Base
                Salary”) at a rate of One-Hundred Eighty Thousand Dollars ($180,000) per
                annum, payable in accordance with the Company’s normal payroll practices.
                The Executive’s Base Salary may be adjusted from time to time by the Board
                of Directors in accordance with the normal business practices of
                the
                Company. 

            

      

      	(b)  	
              Bonus.
                The Executive will be eligible for an annual bonus in accordance
                with the
                Company’s annual incentive policy for executive
                employees.

            

      

      	(c)  	
              Expenses.
                The Company, as applicable, shall promptly reimburse the Executive
                for all
                reasonable out-of-pocket expenses incurred by the Executive in his
                performance of services hereunder, including all expenses of travel
                and
                entertainment, provided that such expenses are incurred, accounted
                for and
                documented in accordance with the Company’s regular policies. The Company
                reserves the right to establish limits on the types or amounts of
                business
                expenses that the Executive may incur.

            

      

      	(d)  	
              Employee
                Benefits.
                The Executive shall be entitled to participate in all Company employee
                benefit plans for which the Executive is eligible, subject to the
                rules
                and regulations applicable thereto, which were in effect on the date
                hereof (including, but not limited to, life, disability, and health
                insurance plans and programs and savings plans and programs) as such
                plans
                may continue or be altered by the Board of Directors of the Company
                from
                time to time at the Board’s discretion.

            

      

      	(e)  	
              Vacation
                and Other Absences.
                The Executive shall receive reasonable and customary vacation in
                each
                calendar year during the term of this Agreement, in accordance with
                the
                Company's present policies. The Executive shall also receive paid
                absences
                for holidays or illnesses in accordance with the Company's applicable
                plans, policies or provisions.

            

      

      	(f)  	
              Stock
                Options.
                Effective as of December 1, 2006 (the “Date of Grant”), the Company’s
                parent company, NN, Inc., will grant the Executive the option (the
                “Option”) to purchase an aggregate of 9,000 shares of NN. Inc. common
                stock at an option price equal to the closing price of NN, Inc.’s common
                stock as reported on the Nasdaq National Market on December 1, 2006
                pursuant to NN. Inc.’s standard form of Stock Option Agreement which will
                provide for the Option to become exercisable for 3000 of the shares
                on the
                first anniversary of the Date of Grant and will become exercisable
                for
                3000 additional shares on each succeeding anniversary date until
                fully
                exercisable.

            

      

      	5.  	
              Termination.
                Except for the provisions of Paragraphs 7, 8, 9, 10, and 11, which
                shall
                continue in full force and effect, this Agreement shall terminate
                upon the
                first to occur of the following:

            

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      	(a)  	
              The
                death of the Executive;

            

      

      	(b)  	
              The
                permanent Disability of the Executive, as defined in Paragraph
                6(a)(iii);

            

      

      	(c)  	
              The
                Executive’s Separation From Service by the Company for “Cause" as defined
                in Paragraph 6(a)(i);

            

      

      	(d)  	
              The
                Executive’s Separation From Service by the Company without
                Cause;

            

      

      	(e)  	
              The
                Executive’s Separation From Service with "Good Reason" as defined in
                Paragraph 6(a)(ii);

            

      

      	(f)  	
              The
                Executive’s Separation From Service without Good Reason, provided that the
                Executive shall provide a Notice of Termination in accordance with
                Paragraph 6(a)(iv). Upon receipt of notice of such Notice of Termination
                given by the Executive, the Company reserves the right to terminate
                the
                Executive's employment, effective immediately; or
                

            

      

      (g) Upon
        written notice as provided in Paragraph 2.

      

      	6.  	
              Compensation
                and Benefits in the Event of Termination or Separation From
                Service.
                In the event of the Executive’s Separation From Service during the term of
                this Agreement or any renewal thereof, compensation and benefits
                shall be
                paid as set forth below. To be eligible for any payments under this
                Paragraph 6, Executive must (i) execute and deliver to Company a
                final and
                complete release in a form that is acceptable and approved by the
                Company,
                and (ii) in Company’s good faith belief, be in full compliance with the
                provisions of Paragraphs 7 through 9 and 11 hereof at the time of
                any such
                payment.

            

      

      	(a)  	
              Definitions.
                For purposes of this Agreement, the following terms shall have the
                meanings indicated:

            

      

      	(i)  	
              The
                term "Cause" shall include, but shall not be limited to the occurrence,
                in
                the Company’s good faith belief, of any of the following: (A) the failure
                of the Executive to perform the Executive's duties under this Agreement
                (other than as a result of physical or mental illness or injury),
                which
                failure, if correctable, and provided it does not constitute willful
                misconduct or gross negligence described in Subsection (B) below,
                remains
                uncorrected for 10 days following written notice to the Executive
                by the
                President or the Board of Directors of the Company of such breach;
                (B)
                willful misconduct or gross negligence by the Executive, in either
                case
                that the Company determines is reasonably likely to undermine or
                harm the
                business or reputation of the Company; (C) a material breach by the
                Executive of this Agreement which, if correctable, remains uncorrected
                for
                10 days following written notice to the Executive by the President
                or the
                Board of Directors of the Company of such breach; (D) the Executive
                is
                convicted or pleads no contest to a felony or any other crime calling
                into
                question the Executive’s judgment, integrity or truthfulness (whether or
                not in connection with the performance by the Executive of his duties
                under this Agreement); (E) the Executive violates any applicable
                local,
                  state, or federal law relating to discrimination or harassment;
                (F) the
                Executive violates the Company’s policies and/or practices applicable to
                employees at the Executive’s level, including, but not limited to, its
                employment policies and/or practices, including, but not limited
                to,
                non-discrimination, anti-harassment, and non-retaliation policies
                and
                practices; or (G) the Executive fails to comply with any oral or
                written
                request or directive of Company; provided such request or directive
                is
                consistent with the Executive’s duties and/or
                law.

            

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      	(ii)  	
              The
                term "Good Reason" shall mean any
                action by the Company that results in (A) a significant and material
                diminution in the Executive's position, authority, or responsibilities
                or
                (B) a decrease in salary or material change in employee benefits
                or (C) a
                request to move the Executive’s principal place of employment to another
                location more than 25 miles from the Executive’s current principal place
                of employment, excluding in each case any action that is remedied
                by the
                Company within 10 days after receipt of notice thereof from the Executive;
                or

            

      

      	(iii)  	
              The
                term “Disability” shall mean the Executive’s failure to satisfactorily
                perform his regular duties on behalf of the Company on a full-time
                basis
                for one hundred and twenty (120) days during any three hundred and
                sixty
                (360) day period, by reason of the Executive’s incapacity due to physical
                or mental illness. 

            

      

      	(iv)  	
              The
                term “Notice of Termination” shall mean a written notice which shall
                include the specific termination provision under this Agreement relied
                upon, and shall set forth in reasonable detail the facts and circumstances
                claimed to provide a basis for termination of the Executive’s employment.
                Any purported termination of the Executive’s employment hereunder by
                action of either party shall be communicated by delivery of a Notice
                of
                Termination to the other party. Any termination by the Executive
                of his
                employment without Good Reason shall be made on not less than 14
                days'
                notice.

            

      

      	(v)  	
              The
                term “Separation From Service” shall mean the Executive’s termination of
                employment under the Company as contemplated in guidance issued by
                the U.
                S. Department of the Treasury for purposes of applying the provisions
                of
                Section 409A of the Internal Revenue
                Code.

            

      

      	(vi)  	
              The
                term “Specified Employee” shall have the meaning contemplated by Section
                409A(a)(2)(B)(i) of the Internal Revenue Code and guidance issued
                thereunder by the U. S. Department of the
                Treasury.

            

      

      	(b)  	
              Separation
                From Service by Company Without Cause or by the Executive With Good
                Reason.
                In the event the Executive incurs a Separation from Service by action
                of
                the Company without Cause or upon written notice as provided in Paragraph
                2, or by the Executive with Good Reason, then the Executive shall
                be
                entitled to receive: 

            

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      	(i)  	
              The
                Base Salary and life insurance coverage then in effect through the
                date
                which is the later of (1) the end of the current term of the Executive’s
                employment, or (2) one year after the date of termination, payable
                (except
                as provided in Paragraph 6(d)), in accordance with the Company’s normal
                payroll practices. 

            

      

      	(ii)  	
              Any
                vested rights of the Executive shall be paid to the Executive in
                accordance with the Company's plans, programs or policies.
                

            

      

      	(iii)  	
              The
                Company shall promptly reimburse the Executive for any and all
                reimbursable business expenses (to the extent not already reimbursed)
                upon
                the Executive's properly accounting for the same.
                

            

      

      	(c)  	
              Termination
                By The Company For Cause Or By The Executive Without Good
                Reason.
                In the event the Executive’s employment hereunder is terminated (A) by
                action of the Company for Cause; (B) by action of the Executive without
                Good Reason; or (C) by reason of the Executive’s death, Disability or
                retirement, the following compensation and benefits shall be paid
                and
                provided the Executive (or his
                beneficiary):

            

      

      	(1)  	
              The
                Executive’s Base Salary provided under Paragraph 4(a) only through the
                date of termination, at the annual rate in effect at the time the
                Notice
                of Termination is given (or death occurs), to the extent unpaid prior
                to
                such Date of Termination;

            

      

      	(2)  	
              Any
                vested rights of the Executive shall be paid to the Executive or
                in
                accordance with the Company's plans, programs or policies. Without
                limiting the foregoing, in the event of the termination of the Executive's
                employment due to death or Disability, the rights and benefits of
                the
                Executive (or his designated beneficiary or representatives, as
                applicable) under any Company life, health and long-term disability
                plans
                and policies shall be determined in accordance with the terms and
                provisions of such plans and policies;
                and

            

      

      	(3)  	
              The
                Company shall promptly reimburse the Executive for any and all
                reimbursable business expenses (to the extent not already reimbursed)
                upon
                the Executive's properly accounting for the
                same.

            

      

      	(d)  	
              Payments
                to Specified Employees.
                Notwithstanding the foregoing provisions which normally require payment
                of
                certain elements of compensation within a stated period after a Separation
                From Service, in no event shall any payment to a Specified Employee
                of
                compensation which is subject to Internal Revenue Code Section 409A
                be
                made prior to the date which is six (6) months and one (1) day after
                the
                date of such Separation From Service. Any amount otherwise required
                to be
                paid within such payment suspension period shall be paid in a lump
                sum on
                the date the suspension period lapses or, if such date is not a regular
                business day of the Company, on the first regular business day of
                the
                Company which follows the expiration of the payment suspension
                period.

            

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      	(e)  	
              Continuation
                of Benefits.
                Following the termination of the Executive’s employment hereunder in any
                way other than by the Company without Cause, or by the Executive
                with Good
                Reason, the Executive shall have the right, at the Executive’s sole
                expense, to continue in the Company’s group health insurance plan or other
                Company benefit program as may be required by COBRA or any other
                federal
                or state law or regulation. Following the termination of the Executive’s
                employment hereunder by the Company without Cause, or by the Executive
                with Good Reason, the Executive shall have the right, at the Company’s
                sole expense, to continue in the Company’s group health insurance plan
                through the date which is the later of (1) the end of the current
                term of
                the Executive’s employment, or (2) one year after the date of termination;
                provided, however that if the Company, in its sole discretion, determines
                that such continued participation is not feasible for any reason,
                the
                Company may opt to provide, at its sole expense, COBRA coverage for
                the
                Executive for such period. 

            

      

      	(f)  	
              Limit
                on Company Liability.
                Except as expressly set forth in this Paragraph 6, the Company shall
                have
                no obligation to the Executive under this Agreement following a
                termination of the Executive's employment with the Company. Without
                limiting the generality of the provision of the foregoing sentence,
                the
                Company shall not, following a termination of the Executive's employment
                with the Company, have any obligation to provide any further benefit
                to
                the Executive or make any further contribution for the Executive's
                benefit
                except as provided in this paragraph 6.

            

      

      	7.  	
              Disclosure
                of Confidential Information.
                The Company has developed confidential information, strategies and
                programs, which include customer lists, prospects, lists, expansion
                and
                acquisition plans, market research, sales systems, marketing programs,
                computer systems and programs, product development strategies,
                manufacturing strategies and techniques, budgets, pricing strategies,
                identity and requirements of national accounts, customer lists, methods
                of
                operating, service systems, training programs and methods, other
                trade
                secrets and information about the business in which the Company is
                engaged
                that is not known to the public and gives the Company an opportunity
                to
                obtain an advantage over competitors who do not know of such information
                (collectively, "Confidential Information"). In performing duties
                for the
                Company, the Executive regularly will be exposed to and work with
                Confidential Information. The Executive acknowledges that such
                Confidential Information is critical to the Company's success and
                that the
                Company has invested substantial sums of money in developing the
                Confidential Information. While the Executive is employed by the
                Company
                and after such employment ends for any reason, the Executive will
                never
                reproduce, publish, disclose, use, reveal, show or otherwise communicate
                to any person or entity any Confidential Information unless specifically
                directed by the Company to do so in writing. The Executive agrees
                that
                whenever the Executive's employment with the Company ends for any
                reason,
                all documents containing or referring to Confidential Information
                as may
                be in the Executive's possession or control will be delivered by
                the
                Executive to the Company immediately, with no request being
                required.

            

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      	8.  	
              Non-Interference
                with Personnel Relations.
                While the Executive is employed by the Company and for two years
                after
                such employment ends for any reason, the Executive acting either
                directly
                or indirectly, or through any other person, firm, corporation or
                entity,
                will not hire contract with or employ any employee of the Company
                or
                induce or attempt to induce or influence any employee of the Company
                to
                terminate employment with the Company. However, this provision shall
                not
                apply to the Executive in the case of the solicitation of his or
                her
                immediate family members.

            

      

      	9.  	
              Non-Competition.
                While the Executive is employed by the Company and through the date
                which
                is the later of (1) the then current term of the Executive’s employment,
                or (2) two years after the Executive’s employment ends for any reason, the
                Executive will not, directly or indirectly, or through any other
                person,
                firm, corporation or entity (i) be employed by, consult for, have
                any
                ownership interest in or engage in any activity on behalf of any
                competing
                business, or (ii) call on, solicit or communicate with any of the
                Company's customers (whether actual or potential) for the purpose
                of
                selling precision metal components, assemblies, turned parts, other
                similar products and other related items to such customer other than
                for
                the benefit of the Company. As used in this Agreement, the term "competing
                business" means a business that is a manufacturer and supplier of
                precision metal components, assemblies, turned parts or other similar
                products and the term "customer" means any customer (whether actual
                or
                potential) with whom the Executive or any other employee of the Company
                had business contact on behalf of the Company during the eighteen
                (18)
                months immediately before the Executive's employment with the Company
                ended. Notwithstanding the foregoing, this paragraph shall not be
                construed to prohibit the Executive from owning less than five percent
                (5%) of the outstanding securities of a corporation which is publicly
                traded on a securities exchange or over-the-counter.
                

            

      

      	10.  	
              Notification
                to Subsequent Employers.
                The Executive grants the Company the right to notify any future employer
                or prospective employer of the Executive concerning the existence
                of and
                terms of this Agreement and grants the Company the right to provide
                a copy
                of this Agreement to any such subsequent employer or prospective
                employer.

            

      

      	11.  	
              Company
                Proprietary Rights.

            

      

      
        	 	
                (a)

              	
                Company
                  to Retain Rights.
                  The Executive agrees that all right, title and interest of every
                  kind and
                  nature whatsoever in and to copyrights, patents, ideas, business
                  or
                  strategic plans and concepts, studies, presentations, creations,
                  inventions, writings, properties, discoveries and all other intellectual
                  property conceived by the Executive during the term of this Agreement
                  and
                  pertaining to or useful in or to (directly or indirectly) the activities
                  of the Company (collectively, "Company Intellectual Property")
                  shall
                  become and remain the exclusive property of the Company, and the
                  Executive
                  shall have no interest therein.

              

      

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        	 	
                (b)

              	
                Further
                  Assurances.
                  At the request of the Company, the Executive shall, at the Company's
                  expense but without additional consideration, execute such documents
                  and
                  perform such other acts as the Company may deem necessary or appropriate
                  to vest in the Company or its designee such title as the Executive
                  may
                  have to all Company Intellectual Property in which the Executive
                  may be
                  able to claim any rights by virtue of his employment under this
                  Agreement.

              

      

      

      
        	 	
                (c)

              	
                Return
                  of Material.
                  Upon the termination of the Executive's employment under this Agreement,
                  the Executive will promptly return to the Company all copies of
                  information protected by Paragraph 11(a) hereof which are in his
                  possession, custody or control, whether prepared by him or others,
                  and the
                  Executive agrees that he shall not retain any of
                  same.

              

      

      

      	12.  	
              Representation
                and Warranty of the Executive.
                The Executive represents and warrants to the Company that he is not
                now
                under any obligation, of a contractual nature or otherwise, to any
                person,
                partnership, company, corporation or entity that is inconsistent
                or in
                conflict with this Agreement or which would prevent, limit or impair
                in
                any way the performance by him of his obligations
                hereunder.

            

      

      	13.  	
              Withholding.
                Any provision of this Agreement to the contrary notwithstanding,
                all
                payments made by the Company hereunder to the Executive or his estate
                or
                beneficiaries shall be subject to the withholding of such amounts,
                if any,
                relating to tax and other payroll deductions as the Company may reasonably
                determine should be withheld pursuant to any applicable law or regulation.
                In lieu of withholding such amounts, the Company may accept other
                provisions, provided that it has sufficient funds to pay all taxes
                required by law to be withheld in respect of any or all such
                payments.

            

      

      	14.  	
              Mitigation.
                The Company's obligation to make the payments provided for in this
                Agreement and otherwise to perform its obligations hereunder shall
                not be
                affected by any set-off, counterclaim, recoupment, defense or other
                claim,
                right or action which the Company may have against the Executive
                or
                others. In no event shall the Executive be obligated to seek other
                employment or take any other action by way of mitigation of the amounts
                payable to the Executive under any of the provisions of this agreement
                and
                such amounts shall not be reduced whether or not the Executive obtains
                other employment.

            

       

      
        	15.  	
                Notices.
                  All notices, requests, demands and other communications provided
                  for by
                  this Agreement shall be in writing and shall be sufficiently given
                  if and
                  when mailed in the continental United States by registered or certified
                  mail, or personally delivered to the party entitled thereto, at
                  the
                  address stated below or to such changed address as the addressee
                  may have
                  given by a similar notice:

              

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
        	
                 

                To
                  the Company:

              	 	
                 

                Whirlaway
                  Corporation

              
	 	 	
                720
                  Shiloh Avenue

              
	 	 	
                Wellington,
                  OH 44090

                Attn:
                  Mr. Roderick R. Baty

              
	 	 	 
	
                 

                With
                  a copy to:

              	 	
                 

                NN,
                  Inc.

                2000
                  Waters Edge Drive

                Johnson
                  city, TN 37604

                Attn:
                  Mr. Roderick R. Baty

              

      

      

      
        	
                To
                  the Executive:

              	 	
                Thomas
                  Zupan

              
	 	 	
                577
                  County Road 500

              
	 	 	
                Ashland,
                  Ohio 44805

              
	 	 	 

      

      	16.  	
              Successors:
                Binding Agreement.
                The Company shall require any successor (whether direct or indirect,
                by
                purchase, merger, consolidation or otherwise) to all or substantially
                all
                of the business and/or assets of the Company, by agreement in the
                form and
                substance satisfactory to the Executive, to expressly assume and
                agree to
                perform this Agreement in the same manner and to the same extent
                that the
                Company would be required to perform it if no such succession had
                taken
                place. Failure of the Company to obtain such agreement prior to the
                effectiveness of any such succession shall be a breach of this Agreement.
                For purposes of this Agreement, “Company” shall include any successor to
                its business and/or assets as aforesaid which executes and delivers
                the
                agreement provided for in this Section or which otherwise becomes
                bound by
                all the terms and provisions of this Agreement by operation of
                law.

            

      

      This
        Agreement shall inure to the benefit of and be binding upon the Company,
        the
        Executive and their respective personal or legal representatives, executors,
        administrators, successors, heirs, distributees, devisees and legatees. If
        the
        Executive should die while any amount would still be payable to him/her
        hereunder if he had continued to live, all such amounts, except to the extent
        otherwise provided under this Agreement, shall be paid in accordance with
        the
        terms of this Agreement to his devisee, legatee or other designee, or if
        there
        be no such designee, to the Executive’s estate.

      

      	17.  	
              Compliance
                with Section 409A.
                To
                the extent applicable, this Agreement shall be interpreted in accordance
                with Section 409A of the Internal Revenue Code and the applicable
                U.S.
                Treasury regulations and other interpretative guidance issued thereunder,
                including without limitation any regulations or other guidance that
                may be
                issued after the effective date of this Agreement. Notwithstanding
                any
                provision of the Agreement to the contrary, the Company may adopt
                such
                amendments to the Agreement or adopt other policies and procedures,
                or
                take any other actions, that the Company determines is necessary
                or
                appropriate to exempt the Agreement from Section 409A and/or preserve
                the
                intended tax treatment of the benefits provided hereunder, or to
                comply
                with the requirements of Section 409A and related U.S. Treasury
                guidance.

            

      

      	18.  	
              Modification,
                Waiver or Discharge.
                No provision of this Agreement may be modified or discharged unless
                such
                modification or discharge is authorized by the Board of Directors
                of the
                Company and is agreed to in writing, signed by the Executive and
                by an
                officer of the Company duly authorized by the Board. However, the
                Company
                may unilaterally revise the provisions of this Agreement governed
                by the
                provisions of Internal Revenue Code Section 409A in order to make
                the
                Agreement compliant therewith. No waiver by either party hereto of
                any
                breach by the other party hereto of any condition or provision of
                this
                Agreement to be performed by such other party will be deemed a waiver
                of
                similar or dissimilar provisions or conditions at the time or at
                any time
                or at any prior or subsequent time.

            

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      	19.  	
              Entire
                Agreement.
                This Agreement constitutes the entire understanding of the parties
                hereto
                with respect to its subject matter and supersedes all prior agreements
                between the parties hereto with respect to its subject matter, including,
                but not limited to, all employment agreements, change of control
                agreements, non-competition agreements or any other agreement related
                to
                the Executive's employment with the Company.

            

      

      	20.  	
              Governing
                Law.
                The validity, interpretation, construction and performance of this
                Agreement shall be governed by the laws of the State of Ohio to the
                extent
                federal law does not apply.

            

      

      	21.  	
              Resolution
                of Disputes.
                Any dispute or claim arising out of or relating to this Agreement
                shall be
                settled by final and binding arbitration in Cincinnati, Ohio in accordance
                with the Employment Arbitration rules of the American Arbitration
                Association, and judgment upon the award rendered by the arbitrators
                may
                be entered in any court having jurisdiction thereof. The fees and
                expenses
                of the arbitration panel shall be equally borne by the Company and
                the
                Executive. Each party shall be liable for its own costs and expenses
                as a
                result of any dispute related to this
                Agreement.

            

      

      	22.  	
              Validity.
                The invalidity or unenforceability of any provision of this Agreement
                shall not affect the validity or enforceability of the other provisions
                of
                this Agreement, which latter provisions shall remain in full force
                and
                effect.

            

      

      	23.  	
              No
                Adequate Remedy At Law; Costs to Prevailing Party.
                The Company and the Executive recognize that each party may have
                no
                adequate remedy at law for breach by the other of any of the agreements
                contained herein, and particularly a breach of Paragraphs 7, 8, 9,
                or 11,
                and, in the event of any such breach, the Company and the Executive
                hereby
                agree and consent that the other shall be entitled to injunctive
                relief or
                other appropriate remedy to enforce performance of such
                agreements.

            

      

      	24.  	
              Non-Assignability.
                This Agreement, and the rights and obligations of the parties hereunder,
                are personal and neither this Agreement, nor any right, benefit or
                obligation of either party hereto, shall be subject to voluntary
                or
                involuntary assignment, alienation or transfer, whether by operation
                of
                law or otherwise, without the prior written consent of the other
                party;
                provided, however, that the Company may assign this Agreement (i)
                to any
                affiliate of the Company, or (ii) in connection with a merger or
                consolidation involving the Company or a sale of substantially all
                of its
                assets to the surviving corporation or purchaser, as the case may
                be, so
                long as such assignee assumes the Company's obligations
                hereunder.

            

      

      	25.  	
              Headings.
                The section headings contained in this Agreement are for convenience
                of
                reference only and will not be deemed to control or affect the meaning
                or
                construction of any provision of this Agreement. Reference to Paragraphs
                are to Paragraphs in this Agreement.

            

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      	26.  	
              Counterparts.
                This Agreement may be executed in one or more counterparts, each
                of which
                shall be deemed to be an original, but of which together will constitute
                one and the same instrument.

            

      

       

       

       

      
        
           

          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        Executive and the Company (by action of its duly authorized officers) have
        executed this Agreement as of the date first above written.

      

      

      
        	 	 	 
	 	WHIRLAWAY
                CORPORATION
	 
 	 
 	 
 
	 	 By:	
              
	
                 

                ATTEST:_____________________________________

              	
                
 Roderick
                R. Baty, President
	 	
              

      

      

             EXECUTIVE 

    

     

     

                                                                                                                                 
________________________________________________

                                                                                                                                  
Thomas
      G. Zupan

     

    
      
        
        

      

      
        12EXHIBIT 10.01

                     MORTGAGE ASSISTANCE CENTER CORPORATION

      SERIES A PREFERRED STOCK AND COMMON STOCK WARRANT PURCHASE AGREEMENT

                                NOVEMBER 30, 2006

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

SECTION 1 Authorization and Sale of Series A Preferred Stock and Common
         Stock Warrants........................................................1
         1.1      Authorization................................................1
         1.2      Sale and Issuance of Shares..................................1
         1.3      Back-End Warrants............................................2

SECTION 2 Closing..............................................................3
         2.1      Closing......................................................3
         2.2      Delivery of Shares and Warrants; Payment of Purchase Price...3
         2.3      Transaction Agreements.......................................3

SECTION 3 The Company's Representations and Warranties.........................3
         3.1      Organization and Standing....................................3
         3.2      Corporate Power..............................................4
         3.3      Subsidiaries and Affiliates..................................4
         3.4      Capitalization...............................................4
         3.5      Authorization................................................6
         3.6      Financial Statements; SEC Reports; Disclosure................6
         3.7      Changes......................................................8
         3.8      Liabilities and Obligations; Company Indebtedness............9
         3.9      Intellectual Property.......................................10
         3.10     Title to Properties and Assets; Liens.......................10
         3.11     Contracts and Obligations...................................10
         3.12     Compliance with Other Instruments...........................12
         3.13     Litigation..................................................12
         3.14     Governmental Consents.......................................12
         3.15     Employees...................................................13
         3.16     Environmental and Safety Matters............................13
         3.17     Disclosure..................................................13
         3.18     Offering....................................................13
         3.19     Registration Rights.........................................14
         3.20     Brokers or Finders..........................................14
         3.21     Qualified Small Business....................................14
         3.22     Tax Returns.................................................14
         3.23     Permits.....................................................15
         3.24     Employee Benefit Plans......................................15
         3.25     Insurance...................................................15
         3.26     Corporate Records...........................................15
         3.27     Real Property Holding Company...............................15
         3.28     Transactions with Related Persons...........................15
         3.29     Indemnification of Officers and Directors...................16
         3.30     Investment Company Act......................................16

<PAGE>

SECTION 4 Investors' Representations And Warranties...........................16
         4.1      No Registration.............................................16
         4.2      Investment Intent...........................................16
         4.3      Investment Experience.......................................16
         4.4      Access to Data..............................................16
         4.5      Accredited Investor.........................................17
         4.6      Residency...................................................17
         4.7      Rule 144....................................................17
         4.8      Authorization...............................................17
         4.9      Brokers or Finders..........................................17
         4.10     Legends.....................................................17

SECTION 5 Conditions to the Investors' Obligations to Close...................18
         5.1      Representations and Warranties..............................18
         5.2      Covenants...................................................18
         5.3      Board and Stockholder Approval..............................18
         5.4      Consents....................................................18
         5.5      Compliance with Securities Laws.............................18
         5.6      Amended Articles............................................18
         5.7      Transaction Agreements......................................18
         5.8      Indemnification Agreements..................................19
         5.9      Opinion of Counsel..........................................19
         5.10     Reservation of Warrant Shares...............................19
         5.11     Closing Deliveries..........................................19
         5.12     Boards of Directors.........................................19
         5.13     Employment Agreements.......................................19
         5.14     Directors and Officers Insurance............................19
         5.15     Debt Restructure............................................20
         5.16     Proceedings and Documents...................................20

SECTION 6 Conditions to the Company's Obligation to Close.....................20
         6.1      Representations and Warranties..............................20
         6.2      Compliance with Securities Laws.............................20
         6.3      Amended Articles............................................20
         6.4      Transaction Agreements......................................20

SECTION 7 Indemnification; Exculpation........................................21
         7.1      Indemnification of Investors By the Company.................21
         7.2      Exculpation Among Investors.................................22
         7.3      Rights of Investors.........................................22

SECTION 8 Post-Closing Covenants..............................................23
         8.1      Registration of the Warrant Shares..........................23
         8.2      Key-Man Policies............................................23
         8.3      Failure to Comply...........................................23

SECTION 9 Miscellaneous.......................................................23
         9.1      Amendment...................................................23

<PAGE>

         9.2      QSBS Certification..........................................23
         9.3      Notices.....................................................24
         9.4      Governing Law...............................................25
         9.5      Expenses....................................................25
         9.6      Survival....................................................25
         9.7      Successors and Assigns......................................25
         9.8      Entire Agreement............................................25
         9.9      Delays or Omissions.........................................25
         9.10     Severability................................................26
         9.11     Titles and Subtitles........................................26
         9.12     Construction................................................26
         9.13     Counterparts................................................26
         9.14     Facsimile Execution and Delivery............................26
         9.15     No Commitment for Additional Financing......................26
         9.16     Several Rights and Obligations..............................26

EXHIBITS

         Exhibit A         Schedule of Investors
         Exhibit B         Form of Amended Articles
         Exhibit C         Form of Investor Rights Agreement
         Exhibit D         Form of Stockholders' Agreement
         Exhibit E         Schedule of Exceptions
         Exhibit F         [Intentionally omitted]
         Exhibit G         Form of Indemnification Agreement
         Exhibit H         Form of Legal Opinion
         Exhibit I         Form of Officer's Certificate
         Exhibit J         Form of Secretary's Certificate
         Exhibit K         Form of Warrant
         Exhibit L         Benchmarks

<PAGE>

                     MORTGAGE ASSISTANCE CENTER CORPORATION

                    SERIES A PREFERRED STOCK AND COMMON STOCK

                           WARRANT PURCHASE AGREEMENT

         This  SERIES A  PREFERRED  STOCK  AND  COMMON  STOCK  WARRANT  PURCHASE
AGREEMENT  (this  "Agreement"),  dated as of November  30, 2006 (the  "Effective
Date"),  is executed by and among  Mortgage  Assistance  Center  Corporation,  a
Florida  corporation  (the  "Company"),  and the persons and entities  (each, an
"Investor"  and  collectively,  the  "Investors")  listed  on  the  Schedule  of
Investors  attached as Exhibit A (the "Schedule of Investors").  The Company and
the Investors are each referred to as a "Party" and are collectively referred to
as the "Parties."

                                   SECTION 1
  AUTHORIZATION AND SALE OF SERIES A PREFERRED STOCK AND COMMON STOCK WARRANTS

1.1 Authorization. The Company has authorized (a) the sale and issuance of up to
3,000,000 shares (the "Shares") of the Company's Series A Preferred Stock, par
value $0.001 per share (the "Series A Preferred"), and (b) the grant of warrants
in substantially the form attached hereto as Exhibit K (the "Warrants") to
purchase shares ("Warrant Shares") of the Company's Common Stock, par value
$0.001 per share (the "Common Stock") on the terms and conditions set forth in
the Warrants. The Shares have the rights, privileges, preferences and
restrictions set forth in the Articles of Amendment of the Articles of
Incorporation of the Company, in the form attached as Exhibit B (the "Amended
Articles").

         1.2 Sale and Issuance of Shares. Subject to the terms and conditions of
this  Agreement,  each of the Investors  agrees,  severally and not jointly,  to
purchase,  and the Company  agrees to sell and issue to each  Investor,  (i) the
number of Shares set forth in the column designated  "Number of Series A Shares"
opposite such Investor's name on the Schedule of Investors for the First Closing
and  Subsequent  Closings  for a purchase  price of $1.00 per Share  (payable in
cash, conversion of indebtedness or a combination of both), and (ii) Warrants to
purchase the number of Warrant  Shares (as such number may be adjusted from time
to  time  pursuant  to the  terms  of the  Warrants)  set  forth  in the  column
designated  "Number of Warrant  Shares"  opposite  such  Investor's  name on the
Schedule of Investors  for the First  Closing and  Subsequent  Closings  with an
exercise  price of $0.01 per Warrant  Share.  The Company's  agreement with each
Investor  is a separate  agreement,  and the sale of Shares and the  Warrants to
each Investor is a separate sale. The Investors shall purchase  1,500,000 of the
Shares (the "Initial Shares") at Closing (as defined below),  with the remaining
1,500,000  of the Shares to be  purchased,  subject to the terms of this Section
1.2, in increments of 500,000  (collectively,  the "Benchmark  Shares") on March
31, 2007, June 30, 2007 and September 30, 2007, respectively, as the Company may
request  from time to time after the Company has  notified  (each,  a "Benchmark
Notice") and has provided  evidence  satisfactory to the Investors in their sole
discretion  that the Company has achieved  the events  specified in Exhibit L on

<PAGE>

March  31,  2007,  June 30,  2007 and  September  30,  2007,  respectively  (the
"Benchmarks"),  such sales to occur no later than 30 days after the date of each
Benchmark  Notice in the same manner as set forth in Section 2.1. The Benchmarks
shall be  calculated  in  accordance  with GAAP as in effect on the date of this
Agreement.  To the extent that (i) the  Benchmarks  have been  satisfied  as set
forth above,  (ii) as of the date of the Benchmark  Notice and as of the date of
any  Closing,  the Company is not in breach of any  material  representation  or
warranty  and has  otherwise  satisfied  in all  material  respects  any and all
agreements  or covenants  contained in this  Agreement or any other  Transaction
Agreement, and (iii) there has not been a Material Adverse Effect, then, in such
event only,  each Investor  that does not purchase  their  respective  Benchmark
Shares within 30 days after receipt of a Benchmark  Notice shall be deemed to be
a "Non-Participating  Purchaser" and their respective Shares shall automatically
be  converted  to  Common  Stock  pursuant  to  the  terms  of the  Articles  of
Incorporation  and they shall  each lose  their  respective  right,  if any,  to
designate a member of the  Company's  Board of Directors as set forth in Section
5.12 as well as in the  Articles  of  Incorporation.  If the  Company  misses  a
Benchmark  for a given time period,  but achieves a  subsequent  Benchmark,  the
Investors  shall have the option,  but not the  obligation,  to invest up to the
total amount the Investors could have otherwise invested had all Benchmarks been
achieved.  For example,  if the Company fails to meet the Benchmarks as of March
31, 2007 (the "Failed Period"), and achieves the Benchmarks as of June 30, 2007,
and all other  conditions  set  forth in this  Section  1.2 have  been met,  the
Investors  shall have the right  (but not the  obligation)  to  acquire  500,000
Benchmark  Shares for the Failed  Period in addition  to the  500,000  Benchmark
Shares it would  otherwise be obligated to acquire  pursuant to this Section 1.2
for the period ended June 30, 2007.

         1.3 Back-End Warrants.  In addition to the Warrants,  the Company shall
issue additional warrants (the "Back-End Warrants") to the Investors to purchase
the number of Warrant  Shares (as such number may be adjusted  from time to time
pursuant  to the  terms  of the  Back-End  Warrants)  set  forth  in the  column
designated  "Number of Back-End Warrant Shares" opposite such Investor's name on
the Schedule of Investors with an exercise price of $0.01 per Warrant Share. The
Back-End Warrants shall only be exercisable to the extent that the Company fails
to have Gross Operating  Revenues of $15,705,557  and Net Operating  Revenues of
$3,926,389,  in each case as of December 31, 2007 and  calculated  in accordance
with  GAAP  as  in  effect  on  the  date  of  this   Agreement  (the  "Back-End
Benchmarks").  No later than April 30, 2008,  the Company shall provide  audited
financial  statements  showing the Company's  Gross  Operating  Revenues and Net
Operating Revenues as of December 31, 2007.

                                      -2-
<PAGE>

                                    SECTION 2
                                     CLOSING
                                     -------

         2.1 Closing.  The closing (the  "Closing") of the purchase,  sale,  and
issuance  of the Initial  Shares will take place at 10:00 a.m. on the  Effective
Date (the  "Closing  Date").  The  Closing,  and any  subsequent  closing of the
purchase,  sale,  and  issuance  of any  Benchmark  Shares,  will be held at the
offices of Hallett & Perrin,  P.C., 2001 Bryan Street, Suite 3900, Dallas, Texas
or at such other place  agreed upon by the  Company  and the  Investors.  In the
event there is more than one  closing,  the term  "Closing"  shall apply to each
such closing unless otherwise specified.

         2.2 Delivery of Shares and Warrants;  Payment of Purchase Price. At the
Closing,  the Company will deliver to each Investor  certificates  registered in
such  Investor's  name  representing  the number of Shares,  Warrants,  Back-End
Warrants and Indemnity Warrants that such Investor is purchasing against payment
of the aggregate  purchase price therefor as set forth in the column  designated
"Purchase  Price  for  Series A Shares"  opposite  such  Investor's  name on the
Schedule of  Investors,  by (a)  certified  or  cashier's  check  payable to the
Company,  (b)  wire  transfer  of  immediately  available  funds  to one or more
accounts  designated  in writing by the  Company,  (c)  conversion  of principal
indebtedness, or (d) any combination of the foregoing.

         2.3 Transaction  Agreements.  At the Closing,  in addition to the other
deliveries required by Section 5, (a) the Company and each Investor will execute
and deliver the Investors' Rights Agreement,  in substantially the form attached
as Exhibit C (the "Rights Agreement"),  (b) the Company,  each Investor and each
of the other  holders of capital  stock of the Company  will execute and deliver
the  Stockholders'  Agreement,  in substantially  the form attached as Exhibit D
(the "Stockholders'  Agreement"),  and (iii) the Company and each of Dale Hensel
and Dan Barnett  shall have executed and  delivered  the  respective  Employment
Agreements  described in Section 5.13. This Agreement,  the Rights Agreement and
the  Stockholders'  Agreement are  collectively  referred to as the "Transaction
Agreements."

                                   SECTION 3
                  THE COMPANY'S REPRESENTATIONS AND WARRANTIES
                  --------------------------------------------

         Except as set forth on a Schedule of  Exceptions  attached as Exhibit E
delivered by the Company to the Investors (the "Schedule of Exceptions"),  which
disclosures and exceptions will be deemed to be part of the  representations and
warranties made hereunder,  the Company represents and warrants to each Investor
as of the Effective Date as follows:

         3.1 Organization and Standing. The Company and each of its subsidiaries
set forth on the Schedule of Exceptions  (collectively,  the  "Subsidiaries" and
each a "Subsidiary"),  are corporations duly organized, validly existing, and in
good standing  under the laws of their  respective  jurisdictions  of formation.
Each of the Company and its Subsidiaries  has the requisite  corporate power and
authority to own and operate its properties,  tangible and intangible assets and
technology,  and to carry on its business as conducted.  Each of the Company and
its  Subsidiaries  is duly qualified to do business and is in good standing as a
foreign  corporation  in each  jurisdiction  in which the  failure to so qualify

                                      -3-
<PAGE>

would have a Material Adverse Effect.  For purposes of this Agreement  "Material
Adverse  Effect" means any event,  circumstance or condition that has a material
adverse  effect  on the  business,  assets,  liabilities,  financial  condition,
property or results of operations of the Company.

         3.2 Corporate Power. The Company has all requisite  corporate power and
authority to execute and deliver each of the Transaction Agreements, to sell and
issue the Shares under this Agreement, to issue the Warrant Shares, and to carry
out and perform its obligations under the terms of the Transaction Agreements.

         3.3  Subsidiaries  and  Affiliates.  The Company  owns the  outstanding
capital  stock or interests of each  Subsidiary  as set forth in the Schedule of
Exceptions. The Company has no other subsidiaries or Affiliates and does not own
or  control,  directly or  indirectly,  any other  interest  in any Person.  The
Company  conducts no business or operations  except through its ownership of the
stock  of each  Subsidiary.  For  purposes  of  this  Agreement,  (a)  the  term
"Affiliate"  means,  with respect to any Person (i) any other Person directly or
indirectly controlling, controlled by, or under common control with such Person,
or (ii) if such  Person is an  individual,  members of such  Person's  immediate
family,  including  such Person's  parents,  grandparents,  siblings,  children,
grandchildren   and  the  spouse  of  any  of  the  foregoing,   (b)  the  terms
"controlling,"  "controlled  by," or "under common control with" mean having the
power to direct or cause the direction of such Person's management and policies,
whether through voting securities  ownership,  contractual rights, or otherwise,
and (c) the term "Person" means any natural  person,  corporation,  partnership,
limited liability company,  trust, estate,  joint venture,  governmental body or
any other entity, organization or enterprise.

         3.4 Capitalization.

             (a) Immediately  following the filing and acceptance of the Amended
Articles by the Florida  Secretary of State,  the Company's  authorized  capital
stock shall consist of (i) Fifty million (50,000,000) shares of Common Stock, of
which Twelve million Seven hundred Twenty-Five  thousand One hundred Twenty-Four
(12,725,124)  shares are issued and  outstanding  as of the Effective  Date, and
(ii) Four million  (4,000,000)  shares of Preferred  Stock, par value $0.001 per
share, of which Three million  (3,000,000)  shares shall be designated  Series A
Preferred Stock, par value $0.001 per share (the "Series A Preferred"),  none of
which are issued outstanding as of the time immediately prior to the Closing.

             (b) The  Schedule of  Exceptions  contains a complete  list of each
Subsidiary's authorized capital stock and record and beneficial owners.

             (c) The Common Stock has the rights,  preferences,  privileges  and
restrictions set forth in the Company's  Articles of  Incorporation,  as amended
(the  "Articles  of  Incorporation"),  and the Series A Preferred  Stock has the
rights,  preferences,  privileges  and  restrictions  set  forth in the  Amended
Articles.

                                      -4-
<PAGE>

             (d) All  issued and  outstanding  shares of the  Company's  capital
stock  have  been  duly  authorized  and  validly  issued,  are  fully  paid and
nonassessable,  and were issued in compliance with the applicable  provisions of
the  Securities  Act of  1933,  as  amended  (the  "Securities  Act"),  and  any
applicable state securities laws, or pursuant to valid exemptions therefrom.

             (e) The Company has reserved:

                 (i)  3,000,000  shares of Series A  Preferred  for  issuance in
accordance with this Agreement; and

                 (ii)  sufficient  shares of Common Stock (as may be adjusted in
accordance  with the  provisions  of the Warrants) for issuance upon exercise of
the  Warrants,  the  Back-End  Warrants,  the  Indemnity  Warrants and the Board
Warrants.

             (f) The Company has no  obligation  (contingent  or  otherwise)  to
purchase,  redeem or  otherwise  acquire any shares of its capital  stock or any
interest  therein  or to pay any  dividend  or make any  other  distribution  in
respect  thereof.  Except as provided  for in the  Transaction  Agreements,  the
Company is not a party or subject to any agreement or understanding, and, to the
Company's knowledge, there is no agreement or understanding between any Persons,
which  affects or relates  to the  voting or giving of  written  consents,  with
respect to any  security  or by a director  of the  Company,  or relating to the
acquisition  (including without limitation rights of first refusal or preemptive
rights),  disposition  or  registration  under the Securities Act of the capital
stock of the Company.

             (g) The Shares and the Warrant Shares, when issued,  delivered, and
paid for in  compliance  with the  provisions  of this  Agreement,  will be duly
authorized,  validly issued,  fully paid, and non-assessable and will be validly
issued in reliance upon an exemption from registration  under, and in compliance
in all material  respects with,  applicable  federal and state  securities laws,
including without limitation the Securities Act and the Exchange Act of 1934, as
amended (the "Exchange  Act"). The Shares and the Warrant Shares will be free of
any liens, claims, security interests and encumbrances ("Liens"), other than any
Liens created by or imposed upon the Investors; provided that the Shares and the
Warrant Shares are subject to  restrictions  on transfer under U.S. state and/or
federal  securities  laws and as set  forth in this  Agreement  and in the other
Transaction  Agreements.  Except as set forth in the  Amended  Articles  and the
Stockholders'  Agreement,  the Shares and the Warrant  Shares are not subject to
any preemptive rights,  first refusal rights,  co-sale rights or restrictions on
voting, other than as may exist under applicable law.

             (h)  There are no other  outstanding  shares  of  capital  stock or
outstanding rights of first refusal, preemptive rights or other rights, options,
warrants,  conversion rights, or other rights or agreements,  either directly or
indirectly,  for the  purchase  or  acquisition  from the  Company of any of the
Company's  authorized  and  unissued  capital  stock,  except (i) for the rights
provided pursuant to the Stockholders'  Agreement,  the Warrants,  the Indemnity
Warrants,  the  Back-End  Warrants and the Board  Warrants,  (ii) for the rights
provided in those certain warrant certificates issued to Family Access Exchange,

                                      -5-
<PAGE>

L.P.  on or about  August 10, 2006 and  September  14,  2006,  (iii) for 834,800
shares  of Common  Stock  issued  or  reserved  for  issuance  to the  Company's
directors,  officers,  key employees,  and  consultants  in accordance  with the
Company's 2006 Equity  Incentive Plan (the "Plan"),  or upon exercise of options
that have been  granted to such parties  under the Plan,  in each case as of the
date hereof,  (v) for the rights  provided in that certain  warrant  certificate
issued to Michael Caolo,  Jr. on or about November 30, 2006, (vi) for the rights
provided in that certain warrant  certificate issued to Mark Herndon on or about
November 30, 2006, and (vii) as otherwise set forth in this Agreement (including
the Schedule of Exceptions).  There are no outstanding  rights of first refusal,
preemptive  rights or other rights,  options,  warrants,  conversion  rights, or
other rights or agreements,  either directly or indirectly,  for the purchase or
acquisition  from any  Subsidiary  or the Company of any  capital  stock of such
Subsidiary.

             (i) The Schedule of Exceptions  sets forth a true and complete list
of the public  stockholders of record of the Company as of November 1, 2006, and
all other stockholders,  option holders and warrant holders of the Company as of
the  Effective  Date, in each case showing the number of shares of Common Stock,
Series A Preferred or other securities of the Company (or rights to acquire such
securities)  held by each security holder as of such time and the  consideration
paid to the Company therefore.

         3.5  Authorization.  All  corporate  action  by  the  Company  and  its
officers,  directors  and  stockholders  necessary  for the  (a)  authorization,
execution,  delivery,  and  performance  of the  Transaction  Agreements  by the
Company, (b) authorization,  sale, issuance,  and delivery of the Shares and the
Warrant Shares,  and (c) performance of all of the Company's  obligations  under
the Transaction Agreements,  has been taken or will be taken before the Closing.
The  Transaction  Agreements,  when executed and delivered by the Company,  will
constitute the Company's valid and legally binding  obligations,  enforceable in
accordance with their respective terms, except (x) as limited by laws of general
application relating to bankruptcy,  insolvency,  and the relief of debtors, (y)
as limited by rules of law governing specific performance, injunctive relief, or
other equitable remedies and by general equity principles, and (z) to the extent
the  indemnification  and  the  choice  of  law  provisions   contained  in  the
Transaction  Agreements  may be limited  by  applicable  laws and public  policy
principles.

         3.6 Financial Statements; SEC Reports; Disclosure.

         (a) The Company has timely filed all forms, reports,  documents,  proxy
statements and exhibits  required to be filed with the SEC since January 1, 2003
(collectively,  the  "SEC  Reports").  The SEC  Reports  (i)  were  prepared  in
accordance  with the  requirements of the Securities Act or the Exchange Act, as
the case may be, as in  effect  at the time they were  filed and (ii) did not at
the time they were filed and do not, as amended and supplemented, if applicable,
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.  The  Company  has  delivered  to the  Investors  copies  of all SEC
Reports, other than those available on the Electronic Data Gathering,  Analysis,

                                      -6-
<PAGE>

and Retrieval  (EDGAR) system of the SEC. None of the Company's  Subsidiaries is
required to file any form,  report,  proxy  statement or other document with the
SEC.

         (b) The consolidated  financial statements contained in the SEC Reports
complied,  as of their  respective  dates of  filing  with the SEC,  and the SEC
Reports  filed with the SEC after the date of this  Agreement  will comply as of
their  respective  dates of filing with the SEC, in all material  respects  with
applicable  accounting  requirements  and the published rules and regulations of
the SEC with respect  thereto,  have been,  and the SEC Reports  filed after the
date of this  Agreement  will be,  prepared in  accordance  with  United  States
generally  accepted  accounting  principals  ("GAAP")  (except,  in the  case of
unaudited consolidated quarterly statements, as permitted by Form 10-Q under the
Exchange  Act and except as may be  indicated  in the notes  thereto) and fairly
present,  and the financial  statements contained in the SEC Reports filed after
the date of this  Agreement  will fairly  present,  the  consolidated  financial
position of the Company and its  Subsidiaries as of the respective dates thereof
and the consolidated  statements of operations and cash flows of the Company for
the  periods  indicated,  except in the case of  unaudited  quarterly  financial
statements  that  were or are  subject  to  normal  and  recurring  non-material
year-end  adjustments.  There is no investigation or inquiry pending,  or to the
Knowledge  of  the  Company,  threatened  against  the  Company  or  any  of its
Subsidiaries   by  any   Governmental   Authority  in  connection  with  revenue
recognition  practices,  restructuring charges,  amortization,  writeoffs or any
other accounting matter, whether or not a restatement of financial statements is
required.  For purposes of this Agreement,  "Knowledge of the Company" means any
particular  fact or other  matter  of which  any  officer,  director,  employee,
representative  or agent of the Company is aware of or should have been aware of
after making due inquiry of  appropriate  persons or parties.  Since  January 1,
2006,  there has been no  change  in  accounting  principles  applicable  to, or
methods of accounting  utilized by, the Company and the books and records of the
Company have been and are being  maintained in accordance with applicable  legal
and accounting requirements and good business practice.

         (c) Except for those  liabilities and obligations that are reflected or
reserved  against on the balance sheet contained in the Company's  Annual Report
on Form  10-KSB for the year ended  December  31,  2005 (the  Company  2005 Form
10-KSB "") or in the  footnotes to such balance  sheet,  neither the Company nor
any of its  Subsidiaries  has any material  liabilities  or  obligations  of any
nature whatsoever  (whether accrued,  absolute,  contingent,  known,  unknown or
otherwise).

         (d)  The  Company  is in  compliance  with,  and has  complied,  in all
material respects with the applicable  provisions of the  Sarbanes-Oxley  Act of
2002 and the related  rules and  regulations  promulgated  under such act or the
Exchange Act (collectively,  "Sarbanes-Oxley").  The Company has previously made
available to the Investors copies of all certificates  delivered by officers and
employees of the Company,  including the Company's chief  executive  officer and
chief  financial  officer,  to the Board of Directors or any  committee  thereof
pursuant to the  certification  requirements  relating to the Company  2005 Form
10-KSB.  The management of the Company has (i) implemented  disclosure  controls
and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that
material  information relating to the Company and its Subsidiaries is made known

                                      -7-
<PAGE>

to the  management  of the  Company by others  within  those  entities  and (ii)
disclosed,  based  on its  most  recent  evaluation,  to the  Company's  outside
auditors  and the audit  committee  of the Board of Directors of the Company (A)
all significant  deficiencies and material weaknesses in the design or operation
of internal controls (as defined in Rule 13a-15(f) of the Exchange Act) that are
reasonably likely to materially affect the Company's ability to record,  process
summarize and report financial data and (B) any fraud,  whether or not material,
that  involves  management  or  other  employees  who,  in  each  case,  have  a
significant role in the Company's internal controls.

         (e) The Company has made  available  to the  Investors  the Form 10-QSB
with respect to the quarterly  period ended  September 30, 2006 (the "June 10-Q"
and collectively with the Company 2005 Form 10-KSB, the "Financial Statements").
The June  10-Q (i) was  prepared  in  accordance  with the  requirements  of the
Exchange  Act,  (ii) did not contain any untrue  statement of a material fact or
omit to state a material  fact  required to be stated  therein or  necessary  in
order to make the statements  therein, in light of the circumstances under which
they were made, not  misleading,  and (iii) fairly  presents,  the  consolidated
financial  position of the Company and its  Subsidiaries  as of the date thereof
and the consolidated  statements of operations and cash flows of the Company for
the period  indicated,  subject to normal and  recurring  non-material  year-end
adjustments.

         (f) Since January 1, 2006,  except as contemplated by this Agreement or
in the SEC Reports filed prior to the date of this Agreement, there has not been
any event or state of fact that, individually or in the aggregate, has had or is
reasonably likely to result in a Material Adverse Effect.

         (g) The Company has delivered to each Investor the Company's forecasted
profit  and loss  statements  and  balance  sheets for the  calendar  years 2006
through  2008.  These  financial  statements  are  complete  and  correct in all
material respects based on the reasonable expectations of the Company's Board of
Directors.

         3.7 Changes. Since September 30, 2006 (the "Balance Sheet Date"), there
has not been:

             (a) any change in the assets,  properties,  liabilities,  financial
condition,  or  operating  results of the  Company or its  Subsidiaries,  except
changes in the ordinary course of business that have not had a Material  Adverse
Effect;

             (b) any waiver by the Company or any Subsidiary of a valuable right
or debt owed to it;

             (c) any  satisfaction  or  discharge  of any Lien or payment of any
obligation by the Company or its Subsidiaries,  except in the ordinary course of
business  and  that  is  not  material  to  the  assets,  properties,  financial
condition, or operating results of the Company or any Subsidiary;

                                      -8-
<PAGE>

             (d)  any  material  change  in  any  compensation   arrangement  or
agreement with any employee of the Company or any Subsidiary;

             (e) any sale,  assignment  or transfer of any patents,  trademarks,
copyrights,  trade secrets,  computer software or other intangible assets of the
Company or any Subsidiary;

             (f) any  resignation or termination of employment of any officer or
key employee of the Company or any Subsidiary;

             (g)  receipt of notice  that there has been a material  loss of, or
material order cancellation by, any customer of the Company or any Subsidiary;

             (h) any  mortgage,  pledge,  transfer of a security  interest in or
Lien  created by the  Company or any  Subsidiary,  with  respect to any of their
respective  properties  or assets,  except (a) Liens for taxes or other  similar
assessments not yet due or payable;  and (b) minor Liens which do not materially
detract from the value of the property subject thereto or materially  impair the
Company's or any  Subsidiary's  operations and which have arisen in the ordinary
course of business (collectively, "Permitted Liens");

             (i) any loans or guarantees  made by the Company or any  Subsidiary
to or for  the  benefit  of any  of  their  respective  employees,  officers  or
directors,  or any of their  Affiliates,  other than travel  advances  and other
similar advances made in the ordinary course of its business;

             (j) any declaration, setting aside or payment or other distribution
in respect of any of the  Company's  capital  stock,  or any direct or  indirect
redemption, purchase or other acquisition of any of such stock by the Company;

             (k) to the  Knowledge of the Company,  any other event or condition
of any  character  that  might  materially  and  adversely  affect  the  assets,
properties, financial condition, operating results, prospects or business of the
Company or any Subsidiary;

             (l)  any  material  change  in the  contingent  obligations  of the
Company or any Subsidiary by way of guaranty,  endorsement,  indemnity, warranty
or otherwise; or

             (m) any Contract (as defined in Section 3.11) by the Company or any
Subsidiary to do any of the things described in this Section 3.7.

         3.8  Liabilities and  Obligations;  Company  Indebtedness.  Neither the
Company nor any Subsidiary has any material liabilities or obligations,  whether
absolute or contingent, except liabilities and obligations that are reflected in
the Financial  Statements or that were incurred  since the Balance Sheet Date in
the ordinary  course of business and that would not  otherwise  cause any of the
representations  and warranties  contained in Section 3.7 to be inaccurate.  The
Schedule of  Exceptions  sets forth a complete and accurate  list of the Company

                                      -9-
<PAGE>

Indebtedness  (as defined in Section 5.15), and the Company has restructured all
Company Indebtedness on terms and conditions so as to comply with Section 5.15.

         3.9  Intellectual  Property.  The Company and its  Subsidiaries  own or
possess sufficient legal rights to all patents, trademarks, service marks, trade
names,  copyrights,  trade dress,  trade secrets,  mask works and registrations,
know-how, inventions,  computer software, computer data, computer documentation,
licenses, information,  processes, domain names, and other intellectual property
and similar proprietary rights (collectively, "Intellectual Property") necessary
to the Company's and each Subsidiary's business, without any infringement of the
rights of others.  The Schedule of  Exceptions  contains a complete  list of the
Company's and each Subsidiary's  patents,  trademarks,  copyrights,  proprietary
computer software,  licensed computer software, domain names and pending patent,
trademark and copyright applications. Neither the Company nor any Subsidiary has
received any written communication  alleging that the Company or such Subsidiary
has  violated  or, by  conducting  its  business as  currently  conducted  would
violate,  any of the  Intellectual  Property  of any other  Person.  Neither the
Company  nor  any  Subsidiary  is  obligated  to  make  any  payments  by way of
royalties,  fees or  otherwise  to any owner or licensor of, or claimant to, any
Intellectual  Property  with respect to the use thereof in  connection  with the
conduct of the Company's and such Subsidiary's business. There are no Contracts,
judgments,  orders or decrees to which the Company or any  Subsidiary is a party
or by which the Company is bound which involve indemnification by the Company or
any Subsidiary with respect to infringement of the Intellectual  Property of any
third party.  To the  Knowledge  of the Company,  no third party is violating or
infringing any of the Company's or any Subsidiary's Intellectual Property.

         3.10 Title to Properties and Assets; Liens. Each of the Company and its
Subsidiaries  has good and  marketable  title to its  properties,  tangible  and
intangible  assets  and  technology,  and has good  title  to all its  leasehold
interests,  in each case subject to no mortgage,  pledge,  Lien,  loan or lease,
other than  Permitted  Liens.  With  respect to property it leases,  each of the
Company and its Subsidiaries is in compliance with such leases.

         3.11 Contracts and Obligations. The Schedule of Exceptions sets forth a
list  of all of the  following  contracts,  agreements,  instruments,  licenses,
covenants,  understandings or commitments of any nature, whether oral or written
(collectively "Contracts"),  to which the Company or its Subsidiaries is a party
or by which the Company or its Subsidiaries are bound:

             (a) all employment  and consulting  Contracts with persons who will
receive in 2006, or who are expected to receive in 2007, total compensation from
the  Company  or  any  Subsidiary  (excluding  sales  commissions)  of at  least
$100,000;

             (b)   all   employee   benefit,   compensation,   bonus,   pension,
profit-sharing,  stock option,  stock  appreciation  rights,  stock purchase and
similar plans and arrangements with the persons described in Section 3.11(a);

             (c) each confidentiality or non-disclosure Contract in favor of the
Company  or its  Subsidiaries,  and  each  invention  or  Intellectual  Property

                                      -10-
<PAGE>

assignment Contract in favor of the Company, agreed to by an officer,  director,
employee or consultant of the Company or its Subsidiaries;

             (d) all Contracts related to the acquisition,  use, reproduction or
distribution of catalogues for products;

             (e) each Contract with any stockholder,  officer or director of the
Company or any Subsidiary, or any Affiliate of such Persons, including,  without
limitation, each Contract providing for the furnishing of services by, rental of
real or personal  property  from or  otherwise  requiring  payments to, any such
Person;

             (f) all Contracts  relating to the  Company's and any  Subsidiary's
Intellectual  Property,  including,  without  limitation,  all Contracts for the
licensing of the  Company's or such  Subsidiary's  Intellectual  Property to any
other Person;

             (g) all Contracts  relating to the Company's and its  Subsidiaries'
use  of the  Intellectual  Property  of any  other  Person,  including,  without
limitation,  all  Contracts  relating to the  licensing  of  computer  software,
computer data,  computer  documentation  or other  Intellectual  Property by the
Company or its Subsidiaries;

             (h) each  confidentiality  or  non-disclosure  Contract whereby the
Company or any Subsidiary has agreed to keep confidential or not use or disclose
any information obtained from another Person;

             (i) each  Contract  that  restricts  the  ability of the Company to
enter  into,  engage  in or  conduct  any  type of  business  activities  in any
geographic area;

             (j)  each   Contract   representing   pools  of   distressed   real
estate-based  mortgages  (including  non-performing,  charged-off  and sub-prime
mortgages) that have been acquired by the Company; and

             (k) each  other  Contract  which may  require  expenditures  by the
Company or any  Subsidiary  in excess of $50,000 or which may result in payments
to the Company or any Subsidiary in excess of $50,000.

         All of the foregoing Contracts are valid, binding and in full force and
effect  against  each of the parties  thereto,  except (x) as limited by laws of
general  application  relating  to  bankruptcy,  insolvency,  and the  relief of
debtors,  (y) as  limited  by  rules  of  law  governing  specific  performance,
injunctive relief, or other equitable remedies and by general equity principles,
and (z) to the  extent  the  indemnification  and the  choice of law  provisions
contained in any such  Contracts  may be limited by  applicable  laws and public
policy  principles,  and the  Company  is not in  default  or  alleged  to be in
default, and to the Knowledge of the Company no other party to any such Contract
is in default.  The Company has  delivered or made  available  to the  Investors
true, correct and complete copies of each of the foregoing Contracts, as amended
through the Effective  Date. The Company has also delivered or made available to
the  Investors  true,  correct and complete  copies of all template or prototype

                                      -11-
<PAGE>

forms of Contracts described in (a), (b), (c) and (d) above which the Company or
any Subsidiary plan to use in operating their  respective  businesses  after the
Effective Date.

         3.12  Compliance  with Other  Instruments.  Neither the Company nor any
Subsidiary  is in violation  of (a) any term of its  Articles of  Incorporation,
Amended  Articles  or Bylaws,  each as amended to the  Effective  Date,  (b) any
material mortgage,  indebtedness,  Contract,  judgment, order or decree to which
the Company or any Subsidiary is a party or by which it or any of its properties
or assets is bound, or (c) any law,  statute,  rule or regulation  applicable to
the  Company or any  Subsidiary,  the  violation  of which would have a Material
Adverse Effect. The execution,  delivery, performance of and compliance with the
Transaction Agreements, the sale and issuance of the Shares, and the issuance of
the Warrant  Shares,  will not (x) result in any violation of, or conflict with,
or constitute a default under,  with or without the passage of time or giving of
notice,  or require a waiver or consent  under (i) any  provision of law, or any
decree,  judgment,  order, statute, rule or regulation applicable to the Company
or any  Subsidiary,  which  would  have a  Material  Adverse  Effect,  (ii)  the
Company's or any  Subsidiary's  Articles of  Incorporation,  Amended Articles or
Bylaws,  each as amended to the Effective Date, or (iii) any material  mortgage,
indebtedness or Contract to which the Company or any Subsidiary is a party or by
which it or any of its  properties  or  assets is  bound,  or (y)  result in the
creation  of any  mortgage,  pledge  or Lien  upon any of the  Company's  or any
Subsidiary's properties or assets, which would have a Material Adverse Effect.

         3.13  Litigation.   There  are  no  actions,  suits,  proceedings,   or
investigations  pending  against  the  Company  or any  Subsidiary,  or,  to the
Knowledge of the Company, any of their respective officers, directors, employees
or  stockholders  (and to the Knowledge of the Company,  neither the Company nor
any Subsidiary  has received  notice of any threat thereof or is there any basis
therefor) before any court or governmental agency that, if determined  adversely
to the  Company  or any  Subsidiary,  could  reasonably  be  expected  to have a
Material  Adverse  Effect.  Neither the Company nor any Subsidiary is a party or
subject to the provisions of any order, writ, injunction, judgment, or decree of
any court or governmental  authority.  There is no action,  suit,  proceeding or
investigation  by the Company or any Subsidiary  currently  pending or which the
Company or any Subsidiary intends to initiate.

         3.14 Governmental Consents. No consent,  approval, or authorization of,
or designation,  declaration,  or filing with, any governmental authority by the
Company or any  Subsidiary  is required in  connection  with the  execution  and
delivery of the  Transaction  Agreements,  the offer,  sale,  or issuance of the
Shares and the Warrant  Shares,  or the  consummation  of any other  transaction
contemplated  by the  Transaction  Agreements,  except (a) filing of the Amended
Articles with the Florida  Secretary of State's office,  (b)  qualification  (or
taking  such  action  as  may  be  necessary   to  secure  an   exemption   from
qualification,  if available) of the offer,  sale and issuance of the Shares and
the Warrant Shares under  applicable U.S. federal and state securities laws, and
(c) filings  with the  Securities  and Exchange  Commission  with respect to the
registration of the Warrant Shares.

                                      -12-
<PAGE>

         3.15 Employees. To the Knowledge of the Company, no officer or employee
of the Company or any  Subsidiary  has plans to terminate his or her  employment
relationship   with  the  Company  or  any  Subsidiary.   The  Company  and  its
Subsidiaries  have complied in all material  respects with all  applicable  laws
relating to wages,  hours, equal opportunity,  collective  bargaining,  workers'
compensation insurance,  and the payment of social security or other taxes. None
of the  Company's or any  Subsidiary's  employees are  represented  by any labor
union,  and there is no pending or, to the Knowledge of the Company,  threatened
organizational drive with respect to the Company or any Subsidiary.  Neither the
Company nor any  Subsidiary  is a party to or bound by any Contract  with any of
its officers or employees  that is not  terminable  at will. To the Knowledge of
the Company,  none of the Company's or any Subsidiary's  employees are obligated
under any Contract,  or subject to any  judgment,  decree or order of any court,
administrative  agency or  governmental  authority that would interfere with the
use of his or her best  efforts to promote the  interests of the Company and its
Subsidiaries  or that would  conflict  with the  Company's  or any  Subsidiary's
business.  To the  Knowledge of the Company,  the  employment of all officers or
employees of the Company and any  Subsidiary,  the carrying on of the  Company's
and any  Subsidiary's  business by the officers and employees of the Company and
such  Subsidiary,  and  the  conduct  of the  Company's  and  its  Subsidiaries'
business,  will not conflict with or result in a breach of the terms, conditions
or provisions of, or constitute a default under, any Contract under which any of
such officers or employees are obligated to any third party. Neither the Company
nor any Subsidiary  will require the use of any inventions or software of any of
their respective  employees  created prior to their employment by the Company or
any Subsidiary.

         3.16  Environmental  and Safety  Matters.  Neither  the Company nor any
Subsidiary is in material  violation of any  applicable  law,  statute,  rule or
regulation relating to the environment or occupational health and safety, and no
material  expenditures  are or will be  required  to  comply  with any such law,
statute, rule or regulation.

         3.17 Disclosure.  The Company has fully provided each Investor with all
the information such Investor has requested for deciding whether to purchase the
Shares.  This  Agreement,  the  exhibits  to this  Agreement,  the  Schedule  of
Exceptions,  the Transaction  Agreements and any other  agreement,  certificate,
instrument or other  document  furnished by the Company or any Subsidiary to the
Investors in connection  with the  transactions  contemplated  by this Agreement
(including but not limited to the Company's and any Subsidiary's business plan),
when read  together do not (a) contain any untrue  statement of material fact or
(b) omit to state a material  fact  necessary to make the  statements  contained
herein or therein,  in light of the  circumstances  in which they were made, not
misleading.

         3.18 Offering. The Company has not offered shares of Series A Preferred
for sale  to,  or  solicited  offers  to by from,  any  Persons  other  than the
Investors, and the Company has not taken any action that will cause the sale and
issuance of the Shares and the Warrant Shares as  contemplated by this Agreement
to  constitute  a violation  of  applicable  federal or state  securities  laws.
Subject in part to the accuracy of the Investors' representations and warranties
in Section 4, the offer, sale and issuance of the Shares and the issuance of the
Warrant Shares  constitute,  or will  constitute,  transactions  exempt from the

                                      -13-
<PAGE>

registration  requirements  of the Securities Act and from the  registration  or
qualification  requirements of all applicable state securities laws, and neither
the  Company nor any agent  acting on its behalf will take any action  hereafter
that would cause the loss of such exemption.

         3.19 Registration Rights.  Except as set forth in the Rights Agreement,
the Company is not under any  obligation,  and has not  granted  any rights,  to
register under the Securities  Act any of its  outstanding  securities or any of
its securities that may subsequently be issued.

         3.20 Brokers or Finders.  Neither the Company nor any  Subsidiary  have
engaged any financial advisors,  investment banks,  brokers,  finders or agents,
none of the Company,  any  Subsidiary or the Investors  have  incurred,  or will
incur,  directly or indirectly,  as a result of any action taken by or on behalf
of the Company or any Subsidiary,  any liability for brokerage or finder's fees,
agent's  commissions or any similar  charges in connection  with the Transaction
Agreements or the transactions contemplated hereby and thereby.

         3.21 Qualified  Small  Business.  With respect to the "Qualified  Small
Business" provisions of Section 1202(d) of the Internal Revenue Code of 1986, as
amended (the  "Code"),  as of and  immediately  following  the Closing:  (a) the
Company will be a domestic C corporation, (b) the Company will not have made any
purchases of its own stock  described in Code Section  1202(c)(3)(B)  during the
one-year  period  preceding  the  Closing,   and  (c)  the  Company's  (and  any
predecessor's) aggregate gross assets, as defined by Code Section 1202(d)(2), at
no time from the date of  incorporation  of the  Company and through the Closing
have exceeded or will exceed $50,000,000,  taking into account the assets of any
corporations  required to be aggregated with the Company in accordance with Code
Section  1202(d)(3),  and at least eighty percent (80%) (by value) of the assets
of the  Company  are used by it in the active  conduct of one or more  qualified
trades or businesses, as defined by Code Section 1202(e)(3),  and the Company is
an eligible corporation, as defined by Code Section 1202(e)(4).

         3.22 Tax  Returns.  The Company and its  Subsidiaries  have each timely
filed,  or have obtained  presently  effective  extensions  with respect to, all
federal,  state,  county, local and foreign tax returns which are required to be
filed by it. All filed returns are true and correct in all material respects and
all taxes  shown  thereon to be due have been timely  paid.  No federal or state
income tax returns of the  Company or any  Subsidiary  have been  audited by the
Internal  Revenue  Service or any state  authorities,  and no  controversy  with
respect to taxes of any type paid or payable  by the  Company is pending  or, to
the Knowledge of the Company, threatened. The provision for taxes of the Company
as shown in the Financial  Statements is adequate for taxes due or accrued as of
the Balance  Sheet  Date.  None of the  Company,  any  Subsidiary  or any of the
Company's  stockholders has ever filed (a) an election  pursuant to Section 1362
of the Code that the Company or any  Subsidiary be taxed as an S Corporation  or
(b) a consent  pursuant to Section  341(f) of the Code  relating to  collapsible
corporations.  The Company and its Subsidiaries  have each withheld or collected
from  each  payment  made to each of its  employees  the  amount  of all  taxes,
including,   but  not  limited  to,  federal  income  taxes,  Federal  Insurance
Contribution Act taxes,  Federal  Unemployment Tax Act taxes and Medicare taxes,
required  to be  withheld  or  collected  therefrom,  and  the  Company  and its

                                      -14-
<PAGE>

Subsidiaries  have each paid the same to the proper tax  receiving  officers  or
authorized depositories.

         3.23  Permits.  The  Company  and its  Subsidiaries  have all  material
franchises,  permits,  licenses and any similar  authorities  necessary  for the
conduct of their  businesses.  Neither  the  Company  nor any  Subsidiary  is in
default  under  any of such  franchises,  permits,  licenses  or  other  similar
authorities.  The execution,  delivery and performance of, and compliance  with,
the  Transaction  Agreements  will not  result  in the  suspension,  revocation,
impairment, forfeiture or non-renewal of any material franchise, permit, license
or any similar authority  applicable to the Company or any Subsidiary,  or their
respective businesses, operations, assets or properties.

         3.24 Employee  Benefit  Plans.  Neither the Company nor any  Subsidiary
has, or otherwise contributes to or participates in, any "Employee Benefit Plan"
as defined in or subject to the Employee Retirement Income Security Act of 1974,
as amended.

         3.25 Insurance. The Company and its Subsidiaries have in full force and
effect fire and casualty insurance policies, with extended coverage,  sufficient
in amount  (subject to reasonable  deductibles) to allow each of them to replace
any of its properties or assets that might be damaged or destroyed.

         3.26   Corporate   Records.   The  Company's   and  each   Subsidiary's
Certificates of Incorporation and Bylaws,  all as amended to the Effective Date,
are all in the form  previously  provided to the Investors.  The minute books of
the Company and its  Subsidiaries  provided to the Investors  contain a complete
summary of all  meetings,  proceedings  and  actions of the  Company's  and each
Subsidiary's  directors and stockholders since the times of their  incorporation
and  reflect all  transactions  referred to in such  minutes  accurately  in all
material  respects.  The stock  ledgers of the Company and each  Subsidiary  are
complete and reflect all issuances, transfers,  repurchases and cancellations of
shares of capital stock of the Company and such Subsidiary.

         3.27  Real  Property  Holding  Company.  Neither  the  Company  nor any
Subsidiary is a real property holding  corporation within the meaning of Section
897(c)(2) of the Code and any regulations promulgated thereunder.

         3.28 Transactions with Related Persons.  No stockholder of the Company,
no  employee,  officer or  director  of the  Company or any  Subsidiary,  and no
Affiliates of any of the foregoing Persons (collectively, "Related Persons"), is
indebted  to the  Company or any  Subsidiary,  and  neither  the Company nor any
Subsidiary  is  indebted  (or  committed  to make  loans or extend or  guarantee
credit) to any Related Person, other than for (a) payment of salary for services
rendered,  (b) reimbursement  for reasonable  expenses incurred on behalf of the
Company  or any  Subsidiary,  and (c) other  employee  benefits  made  generally
available to all employees of the Company and any  Subsidiary.  To the Knowledge
of the Company,  no Related Person has any direct or indirect ownership interest
in any  Affiliate  of the Company or any  Subsidiary,  any Person with which the
Company or any  Subsidiary  has a  business  relationship,  or any  Person  that
competes with the Company or any Subsidiary, except for Related Persons that own

                                      -15-
<PAGE>

less than one percent (1%) of the  outstanding  capital stock of publicly traded
companies.  No Related Person has,  directly or  indirectly,  an interest in any
Contract with the Company or any  Subsidiary  (other than  Contracts that relate
solely to a Related Person's ownership of capital stock of the Company).

         3.29 Indemnification of Officers and Directors. Each of the Company and
its Subsidiaries has provisions in its Articles of Incorporation  and Bylaws for
the  indemnification  of its officers and directors to the full extent permitted
by applicable law.

         3.30 Investment Company Act.. Neither the Company nor any Subsidiary is
an "investment  company",  or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.

                                   SECTION 4
                    INVESTORS' REPRESENTATIONS AND WARRANTIES
                    -----------------------------------------

         Each  Investor,  as of the Effective  Date,  severally  represents  and
warrants to the Company as follows:

         4.1 No Registration.  Each Investor  understands  that the Shares,  the
Warrants,  and the Warrant Shares have not been registered  under the Securities
Act by reason of a specific  exemption from the  registration  provisions of the
Securities Act, the availability of which depends upon, among other things,  the
bona fide nature of the  investment  intent and the accuracy of such  Investor's
representations as expressed herein. Each Investor acknowledges that the Company
has no  obligation  to  register or qualify the  Shares,  the  Warrants,  or the
Warrant Shares for resale except as set forth in the Rights Agreement.

         4.2  Investment  Intent.  Each Investor is acquiring the Shares and the
Warrant Shares for investment for such Investor's own account,  not as a nominee
or  agent,  and not with the view to,  or for  resale in  connection  with,  any
distribution  thereof.  By  executing  this  Agreement,  each  Investor  further
represents that such Investor does not presently have any contract, undertaking,
agreement  or   arrangement   with  any  Person  to  sell,   transfer  or  grant
participations to such Person or to any third Person, with respect to any of the
Shares, the Warrants, or the Warrant Shares.

         4.3 Investment Experience. Each Investor (or one of its Affiliates) has
substantial   experience  in  evaluating  and  investing  in  private  placement
transactions  of  securities  in  companies  similar to the Company so that such
Investor  is capable  of  evaluating  the  merits  and risks of such  Investor's
investment  in the Company and has the capacity to protect such  Investor's  own
interests.

         4.4 Access to Data. Each Investor has had an opportunity to discuss the
Company's and each Subsidiary's business,  management and financial affairs with
the Company's and each Subsidiary's  management,  and has had the opportunity to
review the Company's  and each  Subsidiary's  operations  and  facilities.  Each
Investor has also had an  opportunity to ask questions of the Company's and each
Subsidiary's  officers,   which  questions  were  answered  to  such  Investor's

                                      -16-
<PAGE>

satisfaction.   The   foregoing,   however,   does  not  limit  or  modify   the
representations  and warranties of the Company in Section 3 of this Agreement or
the right of the Investors to rely thereon.

         4.5  Accredited  Investor.  Each Investor is an  "accredited  investor"
within  the  meaning  of  Regulation  D,  Rule  501(a),  promulgated  under  the
Securities Act.

         4.6 Residency.  The state of each Investor's  residency (in the case of
an individual) or such Investor's  principal place of business (in the case of a
partnership,   corporation,  limited  liability  company  or  other  entity)  is
correctly set forth on the Schedule of Investors.

         4.7 Rule 144.  Each  Investor  is aware of the  provisions  of Rule 144
promulgated  under the  Securities  Act which  permit  limited  resale of shares
purchased  in a  private  placement  subject  to  the  satisfaction  of  certain
conditions,  including, among other things, the existence of a public market for
the shares,  the  availability of certain current public  information  about the
Company,  the resale occurring at least one year after a party has purchased and
paid for the security to be sold,  the sale being  effected  through a "broker's
transaction" or in  transactions  directly with a "market maker," and the number
of shares  being sold  during any  three-month  period not  exceeding  specified
limitations.

         4.8  Authorization.  The  Transaction  Agreements,  when  executed  and
delivered by each Investor,  will constitute  such Investor's  valid and legally
binding  obligations,  enforceable  in accordance  with their  respective  terms
except as limited by (a) laws of general  application  relating  to  bankruptcy,
insolvency,  and the  relief of  debtors,  (b) rules of law  governing  specific
performance,  injunctive  relief,  or other  equitable  remedies  and by general
equity principles,  and (c) to the extent the  indemnification and choice of law
provisions  contained in the Transaction  Agreement may be limited by applicable
laws and public policy principles.

         4.9 Brokers or Finders. No Investor has engaged any financial advisors,
investment banks,  brokers,  finders or agents,  and neither the Company nor any
Subsidiary has incurred, and will not incur, directly or indirectly, as a result
of any action taken by any  Investor,  any  liability  for brokerage or finder's
fees or  agent's  commissions  or any  similar  charges in  connection  with the
Transaction Agreements or the transactions contemplated hereby and thereby.

         4.10 Legends.  Each Purchaser understands that the Shares, the Warrants
and the Warrant Shares may bear one or all of the following legends:

                  (a) "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT
                  BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AND HAVE
                  BEEN  ACQUIRED  FOR  INVESTMENT  AND NOT WITH A VIEW TO, OR IN
                  CONNECTION  WITH, THE SALE OR  DISTRIBUTION  THEREOF.  NO SUCH
                  TRANSFER  MAY BE EFFECTED  WITHOUT AN  EFFECTIVE  REGISTRATION
                  STATEMENT  RELATED  THERETO OR AN OPINION OF COUNSEL IN A FORM

                                      -17-
<PAGE>

                  SATISFACTORY  TO THE  COMPANY  THAT SUCH  REGISTRATION  IS NOT
                  REQUIRED UNDER THE SECURITIES ACT OF 1933."

                  (b) Any  legend  set  forth  in,  or  required  by,  the other
                  Transaction Agreements.

                  (c) Any legend required by the securities laws of any state to
                  the  extent  such  laws  are  applicable  to the  Shares,  the
                  Warrants and the Warrant Shares represented by the certificate
                  so legended.

                                   SECTION 5
                CONDITIONS TO THE INVESTORS' OBLIGATIONS TO CLOSE
                -------------------------------------------------

         Each Investor's obligation to purchase the Shares at Closing is subject
to the fulfillment on or before the Closing of each of the following conditions,
unless waived in writing by the applicable Investor:

         5.1 Representations and Warranties.  The representations and warranties
made by the Company in Section 3 (as modified by the disclosures on the Schedule
of Exceptions) will be true and correct as of the Closing Date.

         5.2 Covenants. All covenants,  agreements,  and conditions contained in
this Agreement to be performed by the Company on or before the Closing Date will
have been performed or complied with.

         5.3 Board and Stockholder Approval.  The Company will have obtained the
consent and approval of this Agreement,  the other Transaction  Agreements,  and
the transactions  contemplated  hereby and thereby by (i) the Company's Board of
Directors, and (ii) the holders of the Common Stock.

         5.4 Consents. The Company will have obtained all consents,  permits and
waivers necessary to consummate the transactions contemplated by this Agreement.

         5.5 Compliance with Securities Laws. The Company will have obtained all
necessary state securities and Blue Sky law permits and qualifications,  or have
the  availability of exemptions  therefrom,  required by any state for the offer
and sale of the Shares and the Warrant Shares.

         5.6 Amended  Articles.  The Amended  Articles will have been filed with
and accepted by the Florida Secretary of State.

         5.7 Transaction  Agreements.  The Company and the other parties thereto
(other than the  Investors)  will have executed and  delivered  the  Transaction
Agreements.

                                      -18-
<PAGE>

         5.8 Indemnification  Agreements.  The Company will have entered into an
Indemnification Agreement in substantially the form attached as Exhibit G hereto
(the  "Indemnification  Agreements")  with each of the members of the  Company's
Board of Directors.

         5.9 Opinion of  Counsel.  Each  Investor  will have  received  from the
Company's outside counsel,  an opinion dated as of the Closing Date, in the form
attached hereto as Exhibit H.

         5.10  Reservation of Warrant  Shares.  The Warrant Shares issuable upon
the  exercise  of the  Warrants  and the  Board  Warrants  will  have  been duly
authorized and reserved for issuance upon such exercise.

         5.11  Closing  Deliveries.  In  addition  to the  executed  Transaction
Documents, the Company will have delivered to the Investors at the Closing:

             (a) a certificate  dated the Closing Date executed by the Company's
Chief  Executive  Officer on the Company's  behalf,  in  substantially  the form
attached as Exhibit I, certifying the  satisfaction of the conditions to Closing
listed in Sections 5.1 and 5.2;

             (b) a certificate of the Florida Secretary of State,  dated as of a
date within fifteen (15) days of the Closing, with respect to the Company's good
standing; and

             (c) a Company  certificate  dated the Closing Date  executed by the
Company's Secretary,  in substantially the form attached as Exhibit J, attaching
and certifying to the accuracy of (i) the Articles of  Incorporation,  including
the  Amended  Articles,  (ii) the  Bylaws,  and (iii) the board and  stockholder
resolutions  adopted in connection  with the  transactions  contemplated by this
Agreement and that such resolutions are in full force and effect.

         5.12 Boards of Directors.  At the initial Closing,  the authorized size
of the Company's and Mortgage Assistance Corp.'s ("MAC") Board of Directors will
be five (5) members, two of which shall be designated by the Investors,  and the
Company's  Board of Directors  will consist of Dale  Hensel,  Dan Barnett,  Bill
Payne  ("Payne") and Rod Jones  ("Jones" and together with Payne,  the "Investor
Nominees"),  and one  vacancy.  The  Investors  shall  have  Board  of  Director
nomination  rights as set forth in the Amended  Articles.  The Investor Nominees
shall each  receive a one-time  grant of  warrants  (the  "Board  Warrants")  to
purchase  75,000 shares of Common Stock at an exercise price of $0.39 per share,
such warrant to otherwise be in substantially the same form as the Warrants.

         5.13  Employment  Agreements.  At  the  Closing,  the  Company  or  any
Subsidiary  (as the Investors deem  appropriate),  and each other party thereto,
will have executed and delivered employment  agreements with Dale Hensel and Dan
Barnett (the "Employment Agreements")  satisfactory in form and substance to the
Investors.

         5.14  Directors  and  Officers  Insurance.  Prior to the  Closing,  the
Company and each Subsidiary will have obtained  directors and officers insurance

                                      -19-
<PAGE>

on terms  reasonably  acceptable  to the  Investors,  and such  policies will be
maintained in full force and effect through the Closing and thereafter.

         5.15 Debt Restructure.  At or prior to the Initial Closing, the Company
shall have  provided the  Investors  with written  evidence that the Company has
restructured all existing indebtedness  represented by promissory notes incurred
primarily to fund the acquisition of mortgaged  notes and foreclosed  properties
that is in excess of $500,000 in the aggregate ("Company Indebtedness") on terms
and conditions that are satisfactory to the Investors in their sole and absolute
discretion,  including,  without limitation,  that no Company Indebtedness shall
have a maturity  or due date that is less than  twenty-one  (21) months from the
date of this Agreement.

         5.16 Proceedings and Documents.  All corporate and other proceedings in
connection with the  transactions  contemplated  hereby to occur at the Closing,
and all documents and instruments incident to such transactions,  will have been
reasonably  approved by counsel to the  Investors,  and the Investors  will have
received  all such  counterpart  originals  or certified or other copies of such
documents as they may reasonably request.

                                   SECTION 6
                 CONDITIONS TO THE COMPANY'S OBLIGATION TO CLOSE
                 -----------------------------------------------

         The Company's  obligation to each Investor to sell and issue the Shares
and the  Warrants  at a Closing (or  thereafter  with  respect to the  Benchmark
Shares) is subject to the  fulfillment on or before the Closing of the following
conditions by that Investor, unless waived by the Company:

         6.1 Representations and Warranties.  The representations and warranties
made by the Investor in Section 4 will be true and correct when made and will be
true and correct as of the Closing Date.

         6.2 Compliance with Securities Laws. The Company will have obtained all
necessary state securities and Blue Sky law permits and qualifications,  or have
the  availability of exemptions  therefrom,  required by any state for the offer
and sale of the Shares and the Warrant Shares.

         6.3 Amended  Articles.  The Amended  Articles will have been filed with
and accepted by the Florida Secretary of State.

         6.4  Transaction  Agreements.  The  Investors  will have  executed  and
delivered the Transaction Agreements.

                                      -20-
<PAGE>

                                   SECTION 7
                          INDEMNIFICATION; EXCULPATION
                          ----------------------------

         7.1 Indemnification of Investors By the Company.

             (a) The Company,  without  limitation as to time, assumes liability
for  and  agrees  to   indemnify,   defend  and  hold   harmless  each  Investor
(collectively,  "Indemnified  Persons"),  from and  against  any and all losses,
claims,  damages,  liabilities,   obligations,   fines,  penalties,   judgments,
settlements,  costs,  expenses  and  disbursements  against  the Company or such
Investor   (including,   without  limitation,   attorneys'  fees  and  expenses)
(collectively,  "Losses")  that (a) arise out of or are related to any breach or
inaccuracy of any  representation  or warranty of the Company  contained in this
Agreement or any other Transaction Agreement; (b) arise out of or are related to
any  non-fulfillment  or breach of any  covenant  or  agreement  of the  Company
contained  in this  Agreement  or any other  Transaction  Agreement;  or (c) are
incurred in connection  with any Action or Proceeding (as defined below) against
the Company or any Indemnified  Person (other with another  Indemnified  Person)
arising  out of or in  connection  with this  Agreement,  any other  Transaction
Agreement  (or any other  document or  instrument  executed  pursuant  hereto or
thereto), or the transactions  contemplated herein or therein, other than Losses
that are finally  determined  in such  Action or  Proceeding  to be  primarily a
result of (i) the gross negligence of such Indemnified  Person, (ii) a breach of
a fiduciary duty, if any, owed by such Indemnified Person to the Company,  (iii)
the  intentional  misconduct or a knowing  violation of  applicable  law by such
Indemnified  Person,  or (iv) a transaction from which such  Indemnified  Person
received an  improper  personal  benefit.  For  purposes  of this  Section 7, an
"Indemnified  Person"  shall be  deemed to  include  such  Indemnified  Person's
officers,  directors,  stockholders,  partners,  members,  employees, agents and
representatives,  and the Affiliates of each of the foregoing  Persons,  and any
claim(s) of such  Persons for Losses shall vest in and be brought by and through
the affiliated Indemnified Person and not such Person.

             (b) At the Closing,  the Company  shall issue  warrants to purchase
Common Stock (the  "Indemnity  Warrants") to each  Indemnified  Person that will
immediately vest as Losses are incurred as set forth in this Section 7.1(b). For
each $25,000 in Losses, the Indemnity Warrants issued to such Indemnified Person
shall  entitle  such  Indemnified  Person to purchase  shares of Common Stock in
accordance with the terms thereof (the "Indemnity  Warrant  Shares");  provided,
that no  Indemnity  Warrants  shall vest or become  exercisable  into  Indemnity
Warrant Shares unless and until $50,000 in Losses have been  incurred,  at which
time all  Losses  in  increments  of  $25,000  shall  result in  vesting  of the
Indemnity Warrant Shares as set forth in this Section 7.1(b). The exercise price
for the  Indemnity  Warrants  shall be $0.01 per share,  and the other terms and
conditions of the Indemnity Warrants shall be substantially similar to the terms
and  conditions of the Warrants.  The Company shall  immediately  take all steps
necessary to authorize  the issuance of the  Indemnity  Warrants and reserve the
Indemnity  Warrant Shares issuable upon the exercise of the Indemnity  Warrants.
For example,  in the event an Indemnified  Person suffers Losses of $100,000 and
such  Indemnified  Person is entitled to  one-half  percent  (0.5%) of the total
Common Stock of the Company then  outstanding on a fully-diluted  basis for each
$25,000 in Losses, then the Indemnity Warrants issued to such Indemnified Person

                                      -21-
<PAGE>

shall entitle such  Indemnified  Person to purchase shares of Common Stock equal
to  two  percent  (2.0%)  of  the  total  Common  Stock  then  outstanding  on a
fully-diluted  basis. For purposes of this Agreement,  any reference to the term
"fully-diluted  basis"  assumes all  options,  warrants  and similar  securities
outstanding, whether or not vested, and whether or not the strike price is above
or below the value of the Company, have been exercised and the underlying shares
Common Stock have been issued.

             (c) The obligations of the Company to each Indemnified Person under
this Section 7.1 will be separate and distinct  obligations and will survive the
expiration or termination of this Agreement or any other Transaction  Agreement.
Any claim for  indemnification  under  this  Section  7.1 must be  brought on or
before the second  anniversary  of the Effective  Date.  The  obligations of the
Company  under this  Section  7.1 are only for the  benefit  of the  Indemnified
Persons,  and the rights of the  Indemnified  Persons under this Section 7.1 may
not be transferred.

             (d) For purposes of this  Section  7.1, (i) "Action or  Proceeding"
means any (A) action, claim, grievance,  hearing,  investigation,  proceeding or
suit of or by any Person, or (B) audit, investigation,  inquiry or proceeding by
any governmental authority.

             (e)  Notwithstanding  anything in this  Section 7.1 or elsewhere in
this Agreement to the contrary,  an Indemnified  Person that suffers Losses may,
in lieu of exercising  its  indemnification  rights under this Section 7.1, seek
any available remedy against the Company at law or in equity.

         7.2 Exculpation Among Investors.  Each Investor acknowledges that it is
not relying  upon any other  Investor,  or any officer,  director,  stockholder,
employee,  agent, partner or Affiliate of any such other Investor, in making its
investment  or  decision  to  invest  in  the  Company  or  in  monitoring  such
investment.  Each  Investor  agrees  that no  other  Investor,  and no  officer,
director,  stockholder,  partner,  member,  employee,  agent,  representative or
Affiliate of any other  Investor,  will be liable for any action  heretofore  or
hereafter  taken,  or  omitted  to be taken,  by any of them  relating  to or in
connection with the Company, the Shares or the Warrants, or any of them. Without
limiting the  foregoing,  no Investor,  and no officer,  director,  stockholder,
partner, member, employee, agents,  representative or Affiliate, or other holder
of any Shares or Warrants, will have any obligation, liability or responsibility
whatsoever for the accuracy,  completeness or fairness of any information  about
the Company, any Subsidiary or their respective assets, properties, liabilities,
business, financial condition,  operating results or prospects, acquired by such
Investor or other Person from the Company or any Subsidiary or their  respective
officers, directors,  employees, agents,  representatives,  counsel or auditors,
and in turn provided to another  Investor,  and no such Investor or other Person
has any obligation or responsibility  whatsoever to provide any such information
to any other  Investor or to continue  to provide  any such  information  if any
information is provided at any time.

         7.3  Rights  of  Investors.  Each  Investor,  in its sole and  absolute
discretion,  may exercise or refrain from  exercising  any rights or  privileges
that such Investor may have pursuant to this  Agreement,  the other  Transaction
Agreements,  the Articles of Incorporation,  the Amended Articles, the Company's

                                      -22-
<PAGE>

Bylaws or at law or in equity, and such Investor will not incur or be subject to
any  liability or  obligation  to the Company,  any other  Investor or holder of
Shares or Warrants,  any other  stockholder or security holder of the Company or
any other Person, by reason of exercising or refraining from exercising any such
rights or privileges.

                                   SECTION 8
                             POST-CLOSING COVENANTS
                             ----------------------

         The Company  shall  fulfill,  or cause to be  fulfilled,  the following
covenants  within the applicable time periods  specified  within each section of
this Section 8, unless otherwise waived by the Investors:

         8.1  Registration  of the Warrant  Shares..  The  Company  shall file a
registration  statement  covering the Warrant Shares under the Securities Act of
1933, as amended,  and such  registration  statement  shall be effective  within
eighteen (18) months after the Closing Date.

         8.2 Key-Man  Policies.  Within one hundred  twenty (120) days after the
Closing Date, the Company or any Subsidiary (as the Investors deem  appropriate)
shall have obtained a key-man life  insurance  policy  covering both Dan Barnett
and Dale  Hensel,  providing  at least  $3,000,000  in coverage on each on terms
reasonably  acceptable to the  Investors,  and such policy will be maintained in
full force and effect thereafter.

         8.3  Failure  to  Comply.  Unless  otherwise  waived in  writing  by an
Investor,  the failure of the Company to comply with or otherwise fulfill any of
the covenants  contained in this Section 8 shall result in an automatic increase
in the number of Warrant  Shares  issuable upon exercise of the Warrants by each
Investor,  without  further  action by any person,  as further  described in the
Warrants.

                                    SECTION 9
                                  MISCELLANEOUS
                                  -------------

         9.1 Amendment. Except as expressly provided in this Agreement,  neither
this Agreement nor any term of this Agreement may be amended, waived, discharged
or terminated, other than by a written instrument referencing this Agreement and
signed by the Company and by Investors  holding a majority of the Shares and the
Warrant Shares,  calculated on an as-converted  basis (excluding any Shares that
have been sold to the public or pursuant to Rule 144 under the Securities  Act).
Any such amendment, waiver, discharge or termination effected in accordance with
this  Section 9.1 will be binding upon each holder of any  securities  purchased
under this Agreement that are  outstanding  at such time  (including  securities
into which such  securities  have been  converted or exchanged or for which such
securities have been exercised) and each future holder of all such securities.

         9.2 QSBS Certification. Except as otherwise determined by the Company's
Board of Directors,  the Company covenants that so long as any of the Shares are
held by an Investor (or a transferee  in whose hands such Shares are eligible to
qualify as "qualified  small business  stock" within the meaning of Code Section

                                      -23-
<PAGE>

1202(c)), it will use commercially  reasonable efforts (including complying with
any applicable filing or reporting  requirements  imposed by the Code on issuers
of  "qualified  small  business  stock")  to cause  such  Shares to  qualify  as
"qualified   small  business   stock."  9.3  Notices.   All  notices  and  other
communications required or permitted under this Agreement will be in writing and
will be mailed  by  registered  or  certified  mail,  postage  prepaid,  sent by
facsimile,  or otherwise delivered by hand or by messenger addressed:

             (a) if to an Investor, to such address or facsimile number as shown
on the attached  Schedule of  Investors,  or to such other  address or facsimile
number  as an  Investor  will  have  furnished  to the  Company  and  the  other
Investors, and a copy, which will not constitute notice, to:

                  Hallett & Perrin, P.C.
                  Attn:  Scot W. O'Brien
                  2001 Bryan Street, Suite 3900
                  Dallas, Texas  75201
                  Fax:  (214) 922-4144

             (b) if to any other holder of Shares,  Warrants or Warrant  Shares,
to such address or facsimile number as shown in the Company's records, or, until
any such holder so furnishes an address or facsimile number to the Company, then
to and at the address or  facsimile  number of the last  holder of such  Shares,
Warrants or Warrant Shares for which the Company has contact  information in its
records; or (c) if to the Company, to:

                  Mortgage Assistance Center Corporation
                  2614 Main Street
                  Dallas, Texas  75226
                  Attention: Chief Executive Officer
                  Facsimile:

         or to such other  address or facsimile  number as the Company will have
furnished to the Investors, with a copy, which will not constitute notice, to:

                  Michael Caolo & Associates
                  Attn:  Michael Caolo, Jr.
                  600 E. John Carpenter Freeway, Suite 170
                  Irving, Texas  75062
                  Fax:  (972) 717-5208

         Each  notice or other  communication  will be treated as  effective  or
having been given when delivered if delivered  personally,  or, if sent by mail,
at the  earlier of its receipt or three (3)  business  days after such notice or

                                      -24-
<PAGE>

other communication has been deposited in a regularly maintained  receptacle for
deposit of United States mail or, if sent by  facsimile,  upon  confirmation  of
facsimile transfer.

         9.4 Governing  Law. This  Agreement will be governed in all respects by
the internal  laws of the State of Texas as applied to  agreements  entered into
among Texas residents to be performed  entirely within Texas,  without regard to
conflicts of law principles.

         9.5 Expenses.  The Company will pay its own expenses in connection with
the transactions  contemplated by this Agreement and the Transaction Agreements,
and shall  pay upon  demand  all  costs  incurred  by the  Investors  (including
expenses  of  the  Investors   counsel)  in  connection  with  the  transactions
contemplated  by this  Agreement and the  Transaction  Agreements  not to exceed
$50,000.

         9.6 Survival. The representations, warranties, covenants and agreements
made  in  this   Agreement   will  survive  the   Closing,   and  none  of  such
representations,  warranties,  covenants  and  agreements  will  be  diminished,
limited,  or restricted by any investigation  made by any Party or any documents
or information received by any Party or by such Party's legal counsel.

         9.7 Successors  and Assigns.  This  Agreement,  and any and all rights,
duties  and   obligations   under  this  Agreement  (a)  may  not  be  assigned,
transferred, delegated or sublicensed by the Company to any other Person without
the prior written consent of Investors  holding a majority of the Shares and the
Warrant Shares,  calculated on an as-converted  basis (excluding any Shares that
have been sold to the public or pursuant to Rule 144 under the Securities  Act),
and  (b) may not be  assigned,  transferred,  delegated,  or  sublicensed  by an
Investor to any other Person, other than an Affiliate of such Investor,  without
the prior  written  consent of the Company.  Any attempt by a Party without such
prior written  consent to assign,  transfer,  delegate or sublicense any rights,
duties or obligations under this Agreement will be null and void. Subject to the
foregoing  and except as  otherwise  provided  herein,  the  provisions  of this
Agreement  will  inure to the  benefit  of, and be binding  upon,  the  Parties'
successors, assigns, heirs, executors and administrators.

         9.8 Entire Agreement. This Agreement, the other Transaction Agreements,
the documents and agreements  contemplated herein and therein,  and the exhibits
and schedules  hereto and thereto  constitute the full and entire  understanding
and  agreement  among the Parties with regard to the subject  matter  hereof and
thereof.

         9.9 Delays or Omissions.  Except as expressly provided herein, no delay
or omission to exercise  any right,  power or remedy  accruing to any Party upon
any breach or default of any other  Party under this  Agreement  will impair any
such  right,  power or remedy of such  non-breaching  Party,  and it will not be
construed  to be a waiver  of any such  breach  or  default  or a waiver  of any
similar  breach or  default  thereafter  occurring,  and no waiver of any single
breach  or  default  will be deemed a waiver  of any  other  breach  or  default
occurring  before or after such single  breach or default.  Any waiver,  permit,
consent  or  approval  of any kind or  character  by any Party of any  breach or
default under this  Agreement,  or any waiver by any Party of any  provisions or

                                      -25-
<PAGE>

conditions of this  Agreement,  must be in writing and will be effective only to
the extent specifically set forth in such writing.

         9.10  Severability.  If any provision of this  Agreement  becomes or is
declared by a court of competent  jurisdiction to be illegal,  unenforceable  or
void,  then this  Agreement  will continue in full force and effect without such
provision,  and the  Parties  agree to  negotiate,  in good  faith,  a legal and
enforceable  substitute provision which most nearly reflects the Parties' intent
in entering into this Agreement.

         9.11  Titles  and  Subtitles.  The titles  and  subtitles  used in this
Agreement  are  used  for  convenience  only  and  are not to be  considered  in
construing or interpreting  this Agreement.  All references in this Agreement to
sections,  exhibits and schedules  will,  unless  otherwise  provided,  refer to
sections, exhibits and schedules hereof.

         9.12 Construction.  As used in this Agreement and the other Transaction
Agreements, the word "including" means "including without limitation."

         9.13  Counterparts.  This  Agreement  may be  executed in any number of
counterparts,  each of which will be enforceable  against the Parties  executing
such counterparts, and all of which together will constitute one instrument.

         9.14   Facsimile   Execution  and   Delivery.   A  facsimile  or  other
reproduction  of this  Agreement may be executed by one or more Parties,  and an
executed  copy of this  Agreement  may be  delivered  by one or more  Parties by
facsimile,  and such execution and delivery will be considered  valid,  binding,
and effective for all purposes.  At the request of any Party,  all Parties agree
to execute an  original  of this  Agreement  as well as any  facsimile  or other
reproduction hereof.

         9.15 No Commitment for Additional  Financing.  The Company acknowledges
and agrees that no Investor has made any representation, undertaking, commitment
or  agreement  to provide or assist the  Company  in  obtaining  any  financing,
investment  or other  assistance,  other than the  purchase of the Shares as set
forth in Section  1.2,  subject to the  conditions  set forth in Section 5. Each
Investor will have the right, in its sole and absolute discretion,  to refuse or
decline to participate  in any other  financing of or investment in the Company,
and will have no obligation to assist or cooperate with the Company in obtaining
any financing, investment or other assistance.

         9.16  Several  Rights  and  Obligations.   Unless  otherwise  expressly
provided in this Agreement,  the Investors'  rights and  obligations  under this
Agreement are several rights and obligations,  not rights or obligations jointly
held with any other Investor.

                  [Remainder of page intentionally left blank]

                                      -26-
<PAGE>

         This Series A Preferred Stock Purchase  Agreement is executed as of the
Effective Date.

                                              THE COMPANY:

                                              MORTGAGE ASSISTANCE CENTER
                                              CORPORATION, a Florida corporation

                                              By:
                                                  ------------------------------
                                              Name:
                                                     ---------------------------
                                              Title:
                                                      --------------------------

                                              INVESTORS:

                                              W.C. PAYNE INVESTMENTS, LLC

                                              By:
                                                 -------------------------------
                                              Name:    W.C. Payne
                                              Its:     Managing Member

                                              FAX / MACC, L.P.

                                              By:Family Access Exchange II, L.P.
                                              Its:     General Partner

                                              By:FAX GenPar, L.L.C.
                                              Its:     General Partner

                                              By:
                                                 -------------------------------
                                                   Name:  Rod Cain Jones
                                                   Its:   President

                                      -27-
<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT A

                              SCHEDULE OF INVESTORS

                                  FIRST CLOSING

                                                                Number of
                                    Number of     Number of     Back-End      Purchase Price
                                    Series A       Warrant       Warrant       for Series A
             Investor                Shares        Shares        Shares           Shares
             --------                ------        ------        ------           ------
<S>                                <C>            <C>           <C>             <C>
W.C. Payne Investments, L.L.C.       500,000      1,518,898       900,087         $500,000
Attention:  William G. Payne
7005 North Robinson, Oklahoma
City, OK  73116

Fax:  405-843-9599

FAX/MACC, L.P.                     1,000,000      3,037,795     1,800,175       $1,000,000
Attention:  Rod C. Jones
100 Crescent Court, Suite 200
Dallas, Texas  75201
Fax:  214.720.2006

Total:                             1,500,000      4,556,693     2,700,262       $1,500,000
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                               SUBSEQUENT CLOSINGS

                                                                                          Purchase Price
                                                     Number of            Number of         for Series
                  Investor                        Series A Shares      Warrant Shares        A Shares
<S>                                               <C>                 <C>                 <C>
W.C. Payne Investments, L.L.C.                      Up to 500,000     Up to 1,518,898     Up to $500,000
Attention:  William G. Payne
7005 North Robinson, Oklahoma City, OK  73116

Fax:  405-843-9599

FAX/MACC, L.P.                                    Up to 1,000,000     Up to 3,037,796     Up to $1,000,000
Attention:  Rod C. Jones
100 Crescent Court, Suite 200
Dallas, Texas  75201
Fax:  214.720.2006

Total:                                            Up to 1,500,000     Up to 4,556,694     Up to $1,500,000
</TABLE>

                                      -2-
<PAGE>

                                    EXHIBIT B
                                    ---------

                            FORM OF AMENDED ARTICLES

<PAGE>

                                    EXHIBIT C
                                    ---------

                       FORM OF INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                    EXHIBIT D
                                    ---------

                         FORM OF STOCKHOLDERS' AGREEMENT

<PAGE>

                                    EXHIBIT E
                                    ---------

                             SCHEDULE OF EXCEPTIONS

         This  SCHEDULE  OF  EXCEPTIONS  (this  "Schedule")  is made  and  given
pursuant to Section 3 of the Series A Preferred Stock Purchase Agreement,  dated
as of November  30, 2006 (the  "Agreement"),  by and among  Mortgage  Assistance
Center  Corporation,  a Florida  corporation (the "Company"),  and the Investors
listed on Exhibit A to the Agreement.  All undefined  capitalized  terms used in
this Schedule have the same meaning given to those terms in the  Agreement.  The
section numbers below  correspond to the section numbers of the  representations
and warranties in the Agreement,  which are modified by the  disclosures in this
Schedule  as well as such other  sections  to the extent it is readily  apparent
from a reading of the  disclosure  that such  disclosure  is  applicable to such
other sections.

<PAGE>

                                    EXHIBIT F
                                    ---------

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    EXHIBIT G
                                    ---------

                        FORM OF INDEMNIFICATION AGREEMENT

<PAGE>

                                    EXHIBIT H
                                    ---------

                              FORM OF LEGAL OPINION

<PAGE>

                                    EXHIBIT I
                                    ---------

                          FORM OF OFFICER'S CERTIFICATE

<PAGE>

                                    EXHIBIT J
                                    ---------

                         FORM OF SECRETARY'S CERTIFICATE

<PAGE>

                                    EXHIBIT K
                                    ---------

                                 FORM OF WARRANT

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT L
                                    ---------

                                   BENCHMARKS

                        Performance for the Period Ended:

                               Three (3) Months      Six (6) Months       Nine (9) Months
                                    Ended                EndeD                Ended
                                   3/31/07              6/30/07              9/30/07
                               ----------------     ----------------     ----------------
<S>                            <C>                  <C>                  <C>
Gross Operating Revenues       $      1,935,173     $      4,907,192     $      4,637,986

Net Operating Revenues         $        503,145     $      1,275,870     $      2,481,746

Portfolio Assets Purchased     $      3,877,168     $      8,837,849     $     15,164,060
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]