Document:

Exhibit
      10.3

    

    FOURTH
      AMENDMENT
      AND FORBEARANCE

    TO
      

    LOAN
      AND SECURITY AGREEMENT

    

    THIS
      FOURTH AMENDMENT AND FORBEARANCE to
      Loan and Security Agreement
      (this “Amendment
      and Forbearance”) is entered into on September 14, 2007, by and between

     

    SILICON
      VALLEY BANK (“Bank”)

     

    and
      the
      following (collectively, jointly and severally, the "Borrower") whose address
      is
      20200 Sunburst Street, Chatsworth, California 91311: 

     

    NORTH
      AMERICAN SCIENTIFIC,
      INC., a
      Delaware corporation (“NASI”); and

     

    NORTH
      AMERICAN SCIENTIFIC, INC., a California corporation (“NASI-CA”).

     

     

    RECITALS

     

    A. Bank
      and
      Borrower have entered into that certain Loan and Security Agreement, with an
      Effective Date of October 5, 2005 (as the same has been, and may hereafter
      from
      time to time be amended, modified, supplemented or restated, the “Loan
      Agreement”). 

     

    B. Bank
      has
      extended credit to Borrower for the purposes permitted in the Loan Agreement.
      

     

    C. Borrower
      is currently in default of the Loan Agreement for failing to comply with the
      Minimum Tangible Net Worth Financial Covenant set forth in Section 5 of the
      Amended and Restated Schedule 2 to Loan and Security Agreement for the month
      ending July 31, 2007 and August 31, 2007 (the “Existing Defaults”).

     

    D. Borrower
      has requested that Bank forbear from exercising its rights and remedies against
      Borrower from the date hereof until such time as Bank determines in its
      discretion to cease such forbearance (the “Forbearance Period”). Although Bank
      is under no obligation to do so, Bank is willing to forbear from exercising
      its
      rights and remedies against Borrower through the Forbearance Period on the
      terms
      and conditions set forth in this Amendment and Forbearance, so long as Borrower
      complies with the terms, covenants and conditions set forth in this Amendment
      and Forbearance in a timely manner. Moreover, the parties desire to amend the
      Loan Agreement as herein set forth.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    AGREEMENT

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing recitals and other good and valuable
      consideration, the receipt and adequacy of which are hereby acknowledged, and
      intending to be legally bound, the parties hereto agree as follows:

     

    1. Definitions.
      Capitalized terms used but not defined in this Amendment and Forbearance shall
      have the meanings given to them in the Loan Agreement.

     

    2. Amendments
      and Forbearance to Loan Agreement. The
      Loan
      Agreement is hereby amended as follows, effective as of the date
      hereof:

     

    2.1 Forbearance
      Period.
      So long
      as no Event of Default, other than the Existing Defaults, occurs, subject to
      the
      terms and conditions set forth herein, Bank shall forbear from filing any legal
      action or instituting or enforcing any rights and remedies it may have against
      Borrower through the Forbearance Period. Except as expressly provided herein,
      this Amendment and Forbearance does not constitute a waiver or release by Bank
      of any Obligations or of any existing Event of Default (other than the Existing
      Defaults) or of any Event of Default which may arise in the future after the
      date of execution of this Amendment and Forbearance. If Borrower does not comply
      with the terms of this Amendment and Forbearance, Bank shall have no further
      obligations under this Amendment and Forbearance and shall be permitted to
      exercise at such time any rights and remedies against Borrower as it deems
      appropriate in its sole and absolute discretion. Borrower understands that
      Bank
      has made no commitment and is under no obligation whatsoever to grant any
      additional extensions of time at the end of the Forbearance Period.

     

    2.2 Forbearance
      Terms.
      Repayment and performance of all obligations of Borrower to Bank under the
      Loan
      Agreement and this Amendment and Forbearance shall be secured by the
      Collateral.

     

    2.3 Modified
      Credit Limit (Reduction of Revolving Line Credit Amount and Deletion of NOMOS
      Corporation).
      Section
      1 of the Amended and Restated Schedule 2 to Loan and Security Agreement is
      hereby amended to read as follows:

     

     

    1.
      CREDIT
      LIMIT 

    (Section
      2.1.1): An
      amount
      not to exceed:

    

    
      	 	
              (a)

            	
              the
                lesser of (1) $3,000,000
                at
                any one time outstanding (the “Revolving
                Line Credit Amount”)
                or (2) the sum of the following (the “Borrowing
                Base”):

            

    

    

    
      	 	
              (i)

            	
              up
                to 80%
                (an
                “Advance Rate”) of the amount of NASI Eligible Accounts, plus

            

    

     

    
      	 	
              (ii)

            	
              up
                to 80%
                (an
                “Advance Rate”) of the amount of NASI-CA Eligible Accounts, plus

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 
              (iii)          
              	
              [omitted];
                plus

            

    

    

    
      	 	
              (iv)

            	
              the
                lesser of the following (the “Bridge
                Loan Sublimit”):

            

    

    

    
      	 	
              (A)

            	
              $1,500,000
                or

            

    

    

    
      	 	
              (B)

            	
              the
                sum of:

            

    

    

    
      	 	
              (I)

            	
              20%
                (an
                “Advance Rate) of the amount of NASI-CA Eligible Accounts, plus

            

    

    

    
      	 	
              (II)

            	
              100%
                (an Advance Rate) of the amount of NASI-CA Accounts not deemed to
                be
                Eligible Accounts;

            

    

    

    provided,
      however,
      in no
      event shall the amount of the Bridge Loan Sublimit exceed $750,000
      until
      such time as Borrower has received a signed term sheet dated after the date
      hereof, satisfactory to Silicon in its sole discretion, for the receipt by
      Borrower of at least $10,000,000 for the issuance of additional equity
      securities of Borrower. 

    minus
      

     

    (b) the
      sum
      of the following:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              the
                amount of all outstanding Letters of Credit (including drawn but
                unreimbursed Letters of Credit); plus

            

    

    

    
      	 	
              (ii)

            	
              the
                FX Reserve; and plus

            

    

    

    
      	 	
              (iii)

            	
              the
                aggregate amount of Cash Management Services
                utilizations.

            

    

    

    provided,
      however,
      that
      Bank shall have the right, in Bank’s discretion, to modify the above Advance
      Rates based upon the results of field audits conducted by Bank.

    

    Letter
      of Credit Sublimit

    
      	 	
              (Section
                2.1.2):

            	 	 	
              $500,000.

            

    

    

    Foreign
      Exchange Sublimit

    
      	 	
              (Section
                2.1.3):

            	 	 	
              $500,000.

            

    

    

    Cash
      Management Services Sublimit: 

    
      	 	
              (Section
                2.1.4):

            	 	 	
              $500,000.

            

    

    

    2.4 Consent
      to Agility Capital, LLC Subordinated Debt. Notwithstanding
      anything to the contrary in the Loan Agreement, Bank hereby consents to the
      Borrower issuing up to $750,000 in subordinated debt to Agility Capital, LLC
      (“Agility”), which debt may be secured by a lien on any or all of Borrower’s
      assets, provided that Agility execute and deliver to Bank, on
      Bank’s
      standard form with such changes thereto as are acceptable to Bank in its good
      faith business judgment, a subordination agreement pursuant
      to which the debt owed by Borrower to Agility will be fully subordinated to
      the
      Obligations and the lien, if any, granted to Agility will be fully subordinated
      to the lien granted in favor of Bank.

     

    3. Limitation
      of Amendments and Forbearance.

     

    3.1 The
      amendments and forbearance set forth in Section 2, above, are effective for
      the purposes set forth herein and shall be limited precisely as written and
      shall not be deemed to (a) be a consent to any amendment, waiver or
      modification of any other term or condition of any Loan Document, or
      (b) otherwise prejudice any right or remedy which Bank may now have or may
      have in the future under or in connection with any Loan Document.

     

    3.2 This
      Amendment and Forbearance shall be construed in connection with and as part
      of
      the Loan Documents and all terms, conditions, representations, warranties,
      covenants and agreements set forth in the Loan Documents, except as herein
      amended, are hereby ratified and confirmed and shall remain in full force and
      effect.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4. Representations
      and Warranties.
      To
      induce Bank to enter into this Amendment and Forbearance, Borrower hereby
      represents and warrants to Bank as follows:

     

    4.1 Immediately
      after giving effect to this Amendment and Forbearance (a) the
      representations and warranties contained in the Loan Documents are true,
      accurate and complete in all material respects as of the date hereof (except
      to
      the extent such representations and warranties relate to an earlier date, in
      which case they are true and correct as of such date), and (b) no Event of
      Default has occurred and is continuing;

     

    4.2 Borrower
      has the corporate power and authority to execute and deliver this Amendment
      and
      Forbearance and to perform its obligations under the Loan Agreement, as amended
      by this Amendment and Forbearance;

     

    4.3 The
      organizational documents of Borrower delivered to Bank on the Effective Date
      remain accurate and complete and have not been amended, supplemented or restated
      since the Effective Date and are, and continue to be, in full force and
      effect;

     

    4.4 The
      execution and delivery by Borrower of this Amendment and Forbearance and the
      performance by Borrower of its obligations under the Loan Agreement, as amended
      by this Amendment and Forbearance, have been duly authorized; 

     

    4.5 The
      execution and delivery by Borrower of this Amendment and Forbearance and the
      performance by Borrower of its obligations under the Loan Agreement, as amended
      by this Amendment and Forbearance, do not and will not contravene (a) any
      law or regulation binding on or affecting Borrower, (b) any material
      agreement by which Borrower or its property is bound, (c) any order,
      judgment or decree of any court or other governmental or public body or
      authority, or subdivision thereof, binding on Borrower, or (d) the
      organizational documents of Borrower; 

     

    4.6 The
      execution and delivery by Borrower of this Amendment and Forbearance and the
      performance by Borrower of its obligations under the Loan Agreement, as amended
      by this Amendment and Forbearance, do not require any order, consent, approval,
      license, authorization or validation of, or filing, recording or registration
      with, or exemption by any governmental or public body or authority, or
      subdivision thereof, binding on either Borrower, except as already has been
      obtained or made; and

     

    4.7 This
      Amendment and Forbearance has been duly executed and delivered by Borrower
      and
      is the binding obligation of Borrower, enforceable against Borrower in
      accordance with its terms, except as such enforceability may be limited by
      bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar
      laws of general application and equitable principles relating to or affecting
      creditors’ rights.

     

    5. Prior
      Agreement.
      The
      Loan Documents are hereby ratified and reaffirmed and shall remain in full
      force
      and effect. This Amendment and Forbearance is not a novation and the terms
      and
      conditions of this Amendment and Forbearance shall be in addition to and
      supplemental to all terms and conditions set forth in the Loan Documents. In
      the
      event of any conflict or inconsistency between this Amendment and Forbearance
      and the terms of such documents, the terms of this Amendment and Forbearance
      shall be controlling, but such document shall not otherwise be affected or
      the
      rights therein impaired.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6. Release
      by Borrower.

     

    6.1 FOR
      GOOD AND VALUABLE CONSIDERATION,
      Borrower hereby forever relieves, releases, and discharges Bank and its present
      or former employees, officers, directors, agents, representatives, attorneys,
      and each of them, from any and all claims, debts, liabilities, demands,
      obligations, promises, acts, agreements, costs and expenses, actions and causes
      of action, of every type, kind, nature, description or character whatsoever,
      whether known or unknown, suspected or unsuspected, absolute or contingent,
      arising out of or in any manner whatsoever connected with or related to facts,
      circumstances, issues, controversies or claims existing or arising from the
      beginning of time through and including the date of execution of this Amendment
      and Forbearance (collectively “Released
      Claims”).
      Without limiting the foregoing, the Released Claims shall include any and all
      liabilities or claims arising out of or in any manner whatsoever connected
      with
      or related to the Loan Documents, the Recitals hereto, any instruments,
      agreements or documents executed in connection with any of the foregoing or
      the
      origination, negotiation, administration, servicing and/or enforcement of any
      of
      the foregoing.

     

    6.2 In
      furtherance of this release, Borrower expressly acknowledges and waives any
      and
      all rights under Section 1542 of the California Civil Code, which provides
      as
      follows:

     

    “A
      general release
      does not
      extend to claims which the creditor does not know or expect to exist in his
      favor at the time of executing the release, which if known by him must have
      materially affected his settlement with the debtor.” (Emphasis
      added.)

     

    6.3 By
      entering into this release, Borrower recognizes that no facts or representations
      are ever absolutely certain and it may hereafter discover facts in addition
      to
      or different from those which it presently knows or believes to be true, but
      that it is the intention of Borrower hereby to fully, finally and forever settle
      and release all matters, disputes and differences, known or unknown, suspected
      or unsuspected; accordingly, if Borrower should subsequently discover that
      any
      fact that it relied upon in entering into this release was untrue, or that
      any
      understanding of the facts was incorrect, Borrower shall not be entitled to
      set
      aside this release by reason thereof, regardless of any claim of mistake of
      fact
      or law or any other circumstances whatsoever. Borrower acknowledges that it
      is
      not relying upon and has not relied upon any representation or statement made
      by
      Bank with respect to the facts underlying this release or with regard to any
      of
      such party’s rights or asserted rights.

     

    6.4 This
      release may be pleaded as a full and complete defense and/or as a
      cross-complaint or counterclaim against any action, suit, or other proceeding
      that may be instituted, prosecuted or attempted in breach of this release.
      Borrower acknowledges that the release contained herein constitutes a material
      inducement to Bank to enter into this Amendment and Forbearance, and that Bank
      would not have done so but for Bank’s expectation that such release is valid and
      enforceable in all events.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.5 Borrower
      hereby represents and warrants to Bank, and Bank is relying thereon, as
      follows:

     

    (a) Except
      as
      expressly stated in this Amendment and Forbearance, neither Bank nor any agent,
      employee or representative of Bank has made any statement or representation
      to
      Borrower regarding any fact relied upon by Borrower in entering into this
      Amendment and Forbearance.

     

    (b) Borrower
      has made such investigation of the facts pertaining to this Amendment and
      Forbearance and all of the matters appertaining thereto, as it deems
      necessary.

     

    (c) The
      terms
      of this Amendment and Forbearance are contractual and not a mere recital.

     

    (d) This
      Amendment and Forbearance has been carefully read by Borrower, the contents
      hereof are known and understood by Borrower, and this Amendment and Forbearance
      is signed freely, and without duress, by Borrower. 

     

    (e) Borrower
      represents and warrants that it is the sole and lawful owner of all right,
      title
      and interest in and to every claim and every other matter which it releases
      herein, and that it has not heretofore assigned or transferred, or purported
      to
      assign or transfer, to any person, firm or entity any claims or other matters
      herein released. Borrower shall indemnify Bank, defend and hold it harmless
      from
      and against all claims based upon or arising in connection with prior
      assignments or purported assignments or transfers of any claims or matters
      released herein.

     

    7. Counterparts.
      This
      Amendment and Forbearance may be executed in any number of counterparts and
      all
      of such counterparts taken together shall be deemed to constitute one and the
      same instrument.

     

    8. Effectiveness.
      This
      Amendment and Forbearance shall be deemed effective upon (a) the due execution
      and delivery to Bank of this Amendment and Forbearance by each party hereto
      and
      (b) Borrower’s payment of an amendment fee in an amount equal to $7,500.

     

    9. Governing
      Law.
      This
      Amendment and Forbearance and the rights and obligations of the parties hereto
      shall be governed by and construed in accordance with the laws of the State
      of
      California.

     

    [Signature
      page follows.]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS
      WHEREOF, the
      parties hereto have caused this Amendment and Forbearance to be duly executed
      and delivered as of the date first written above.

    

    
      	
              “Borrower”:

               

              NORTH
                AMERICAN SCIENTIFIC, INC.

              A
                Delaware corporation

               

               

              By      
                /s/John
                B. Rush

              
                

              

              President
                or Vice President

               

               

            	
              “Bank”:

               

              SILICON
                VALLEY BANK

               

               

               

              By   
                 /s/Derek
                Brunelle

              
                

              

              Title  
                 Vice
                President

              
                

              

            
	
              “Borrower”:

               

              NORTH
                AMERICAN SCIENTIFIC, INC.

              A
                California corporation

               

               

              By  
                /s/John
                B. Rush

              
                

              

                
                President or Vice President

               

            	 

    

     

    
      
        
        

      

      
        8Unassociated Document

    AGREEMENT
      AND PLAN OF REORGANIZATION

     

    This
      AGREEMENT AND PLAN OF REORGANIZATION dated as of September 14, 2007 (the
“Agreement”), between Downside Up, Inc.,
      a
      Colorado corporation (“DUI”), ESP Resources Inc.
      ,
      a
      Delaware corporation (“ESP”) and DUI
      Operations, Inc.,
      a
      wholly-owned Subsidiary of DUI in organization (“Subsidiary”) and the
      shareholders of ESP, set forth on Schedule A hereto (the “ESP Shareholders”).
      ESP, DUI and Subsidiary may also be referred to herein as the “Constituent
      Corporations” or the “Parties.”

     

    WHEREAS,
      the Parties acknowledge and affirm the following:

     

    
      
        	
                 

              	
                A.

              	
                DUI
                  is a corporation duly organized and existing under the laws of
                  the State
                  of Colorado.

              
	 	 	 
	 	
                B.

              	
                ESP
                  is a corporation duly organized and existing under the laws of
                  the State
                  of Delaware. 

              
	 	 	 
	 	
                C.

              	
                Subsidiary
                  is a corporation which is 100% owned by DUI and is duly organized
                  and
                  existing under the laws of the State of Delaware.

              
	 	 	 
	 	
                D.

              	
                The
                  Colorado Business Corporation Act and the Delaware General Corporation
                  Law
                  permit the merger of ESP with and into the Subsidiary.

              
	 	 	 
	 	
                E.

              	
                DUI
                  and ESP and their respective Boards of Directors declare it advisable
                  and
                  to the advantage, welfare, and best interests of said corporations
                  and
                  their respective stockholders to merge Subsidiary with and into
                  ESP
                  pursuant to the provisions of their respective state laws upon
                  the terms
                  and conditions hereinafter set forth.

              
	 	 	 
	 	
                F.

              	
                The
                  respective Boards of Directors of DUI and ESP have approved this
                  Agreement; and the shareholders of ESP have approved the
                  merger.

              
	 	 	 
	 	
                G.

              	
                For
                  federal income tax purposes, it is intended that the merger qualify
                  as a
                  tax free reorganization under Section 368(a) of the Internal Revenue
                  Code
                  of 1986, as amended (the
“IRC”).

              

      

     

    ARTICLE
      1

    THE
      MERGER

     

    1.1    Merger.

     

    In
      accordance with the provisions of this Agreement and applicable provisions
      of
      their respective state laws, Subsidiary shall be merged with and into ESP (the
      “Merger”). Following the Merger, the separate existence of Subsidiary shall
      cease and ESP shall be, and is herein sometimes referred to as, the “Surviving
      Corporation.” For the purposes of this Agreement, this form of transaction may
      also be referred to herein as a “reverse triangular merger.”

     

    1.2    Filing
      and Effectiveness.

     

    The
      Merger shall become effective when the following actions shall have been
      completed:

     

    
      	 	(a)	
              This
                Agreement and the Merger shall have been adopted and approved by
                the
                shareholders of ESP and DUI in accordance with the requirements of
                the
                Colorado Business Corporation Act and the Delaware General Corporation
                Law;

            
	 	 	 
	 	
              (b)

            	
              DUI
                shall have formed a wholly-owned subsidiary for the purposes of this
                Merger in accordance with the requirements of the DGCL (the
                “Subsidiary”);

            
	 	 	 
	 	
              (c)

            	
              All
                of the conditions precedent to the consummation of the Merger specified
                in
                this Agreement shall have been satisfied or duly waived, in writing,
                by
                the Party entitled to satisfaction thereof;

            
	 	 	 
	 	
              (d)

            	
              As
                soon as practicable following the Closing, the Parties shall execute
                a
                Certificate of Merger meeting the requirements of the Colorado Business
                Corporation Act and the Delaware General Corporation Law and file
                same
                with the Secretaries of State of the States of Colorado and Delaware
                in
                substantially the form attached hereto as Exhibit A; the time the
                Certificate of Merger is filed with the Secretary of State of the
                State of
                Colorado is the “Effective Time”;
                and

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (e)

            	
              The
                closing of the transactions described in this Agreement is herein
                called
                the “Closing.” The Parties agree that the Closing of the transactions
                identified in this Agreement shall take place at the offices of Joseph
                J.
                Tomasek, Esq., or at such other place as the Parties may mutually
                determine, on or before October 31, 2007.

            
	 	 	 
	 	
              (f)

            	
              The
                audit of the financial statements of ESP for the period ended June
                30,
                2007 shall have been completed with all necessary data and materials
                delivered by ESP to DUI.

            

    

     

    1.3    Effect
      of the Merger.

     

    Upon
      the
      Effective Time, hereinafter defined, and upon the terms and subject to the
      conditions of this Agreement and in accordance with applicable state laws,
      the
      separate existence of Subsidiary shall cease and, ESP, as the Surviving
      Corporation,: (i) shall continue to possess all of the assets, rights, powers
      and property of ESP and Subsidiary as constituted immediately prior to the
      Effective Time, and all debts, liabilities and duties of ESP and Subsidiary
      shall become the debts, liabilities and duties of the Surviving Corporation,
      all
      as more fully provided under the applicable provisions of the applicable state
      laws. 

      

    ARTICLE
      2

    CHARTER
      DOCUMENTS, DIRECTORS AND OFFICERS

     

    2.1    Certificate
      of Incorporation: ESP.

     

    Attached
      hereto as Exhibit B and made a part hereof is a copy of the Certificate of
      Incorporation of ESP as in effect in the State of Delaware immediately prior
      to
      the Closing; and at the Effective Time said Certificate of Incorporation shall
      continue in full force and effect as the Certificate of Incorporation of the
      Surviving Corporation until duly amended in accordance with the provisions
      thereof and applicable law.

     

    2.2    Subsidiary.

     

    Attached
      hereto as Exhibit C and made a part hereof is a copy of the Certificate of
      Incorporation of Subsidiary as in effect immediately prior to the
      Closing.

    

    2.3    Bylaws.

     

    Attached
      hereto as Exhibit D and made a part hereof is a copy of the Bylaws of ESP as
      in
      effect immediately prior to the Closing; and at the Effective Time said Bylaws
      shall continue in full force and effect as the Bylaws of the Surviving
      Corporation until duly amended in accordance with the provisions thereof and
      applicable law.

      

    2.4    Directors
      and Officers. 

     

    The
      directors and officers of ESP immediately prior to the Closing shall be the
      directors and officers of the Surviving Corporation until their successors
      shall
      have been duly elected and qualified or until as otherwise provided by law,
      the
      Certificate of Incorporation of the Surviving Corporation or the Bylaws of
      the
      Surviving Corporation. The Board of Directors of DUI following the Merger shall
      consist of Michael Cavaleri of DUI and David Dugas and Anthony Primeaux of
      ESP
      until their successors shall have been duly elected and qualified. 

     

    ARTICLE
      3

    TERMS
      OF MERGER, PAYMENT, EXCHANGE OF STOCK AND INVESTMENT
      COMMITMENTS

     

    

    3.1    Conversion
      of ESP Shares.

     

    
      	 	
              
                (a)

              

            	
              
                Conversion
                  of Subsidiary Common Stock. At the Effective Time, each outstanding
                  share
                  of the common stock no par value per share, of Subsidiary shall,
                  by virtue
                  of the Merger and without any action on the part of DUI, Subsidiary
                  or
                  ESP, be converted into one fully paid and non-assessable share
                  of common
                  stock of the Surviving Corporation. 

              

            
	 	 	 
	 	
              
                (b)

              

            	
              
                
                  Each
                    share of the common stock, $.0001 par value per share, of ESP
                    (“ESP Common
                    Stock”) issued and outstanding prior to the Effective Time shall by
                    virtue
                    of the Merger and without any action on the part of DUI, Subsidiary,
                    ESP
                    or any holder thereof, be converted into and be exchangeable
                    for the right
                    to receive newly issued , fully paid and non-assessable voting
                    common
                    shares, no par value, of DUI ("DUI Shares"), based upon an exchange
                    ratio
                    (“Exchange Ratio”) determined in accordance with the provisions below.
                    

                

              

            

    

     

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      
        	 	
                (c)

              	
                Amount
                  of DUI Shares to be Exchanged:
                  Upon the Closing, DUI shall issue and exchange for the ESP Common
                  Stock
                  with the ESP Shareholders newly issued DUI Shares at the conversion
                  rate
                  of .608108 DUI Shares for each share of the common stock of ESP.
                  

                 

                
                  At
                    the Effective Time, each share of the ESP Common Stock held by
                    the ESP
                    immediately prior to the Effective Time shall, by virtue of the
                    Merger and
                    without any action on the part of Merger Sub or the Company,
                    be canceled,
                    retired and cease to exist and no payment shall be made with
                    respect
                    thereto.

                   

                  No
                    Further Ownership Rights in ESP Common Stock. All DUI Shares
                    issued and
                    exchanged in accordance with the terms of this Article 3 shall
                    be deemed
                    to have been issued in full satisfaction of all rights pertaining
                    to the
                    ESP Common Stock.

                

              
	 	 	 
	 	
                (d)

              	
                
                  Appraisal
                    Rights: This executed Agreement shall constitute each of the
                    ESP
                    Stockholders' acknowledgment to decline any appraisal rights
                    under the
                    statutes and laws of the State of Delaware. By executing this
                    Agreement,
                    each ESP Stockholder acknowledges receipt of written notice of
                    appraisal
                    rights and a copy of the applicable section of the DGCL at least
                    20 days
                    prior to the date of executing this Agreement.
                    

                

              

      

    

     

     3.2    Status
      of DUI Common Shares.

     

    
      	
               

            	
              (a)

            	
              The
                DUI Common Shares to be issued to the ESP Shareholders in the
                reorganization will
                not be registered under the Securities Act of 1933, as amended (the
                "1933
                Act") and may not be sold, transferred or otherwise disposed of except
                in
                compliance with the 1933 Act or pursuant to an exemption from the
                registration provisions thereof and the Securities Exchange Act of
                1934,
                as amended (the "1934 Act").

            
	 	 	 
	
                 

            	
              (b)

            	
              Each
                Certificate representing the DUI Common Shares shall bear the following
                or
                substantially similar legend:

               

              "The
                Shares represented by this Certificate have not been registered
                under

              the
                Securities Act of 1933, as amended. These Shares have been acquired
                

              for
                investment purposes and not with a view to distribution or resale,
                and

              may
                not be sold, assigned, pledged, hypothecated or otherwise
                transferred

              without
                an effective Registration Statement for such Shares under the

              Securities
                Act of 1933, as amended, or an opinion of counsel to the
                effect

              that
                registration is not required under such
                Act."

            

    

     

    ARTICLE
      4

    REPRESENTATIONS
      AND WARRANTIES OF ESP AND THE ESP SHAREHOLDERS

     

    ESP
      and
      the ESP Shareholders represent and warrant to DUI that the statements contained
      in this Article 4 are correct and complete as of the date of this Agreement
      and
      will be correct and complete as of the Closing as though made then and as though
      the Closing were substituted for the date of this Agreement throughout this
      Article 4, with respect to itself.

     

    4.1    Organization
      of ESP.

     

    ESP
      is
      duly organized, validly existing, and in good standing under the laws of
      Delaware.

     

    4.2    Authorization
      of Transaction.

     

    
      	 	(a)	
              ESP
                has full corporate power and authority to execute and deliver this
                Agreement and to perform his obligations hereunder. This Agreement
                constitutes the valid and legally binding obligation of ESP, enforceable
                in accordance with its terms and conditions. Except as expressly
                contemplated hereby, ESP need not give any notice to, make any filing
                with, or obtain any authorization, consent, or approval of any government
                or governmental agency in order to consummate the transactions
                contemplated by this
                Agreement.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              The
                ESP Shareholders, individually represent and warrant to DUI that:
                this
                Agreement constitutes the legal, valid and binding obligation of
                each of
                the ESP Shareholders and is enforceable against each of them in accordance
                with the terms hereof; each of them own their respective ESP Common
                Shares
                free and clear of any and all liens, claims, pledges, restrictions,
                obligations, security interests and encumbrances of any kind; Attached
                hereto as Schedule A is an accurate and complete list of the ESP
                Common
                Shares owned by each ESP Shareholder; none of the ESP Shareholders
                have
                issued any calls, puts, options and/or any other rights in favor
                of any
                third party whatsoever with respect to their ESP Common Shares, and;
                none
                of their respective ESP Common Shares are subject to any voting
                agreements, voting trusts, stockholder agreements and/or any other
                agreements, obligations or
                understandings.

            

    

     

    4.3    Non-contravention.

     

    Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (i) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which ESP is
      subject or any provision of its charter or bylaws; or (ii) conflict with, result
      in a breach of, constitute a default under, result in the acceleration of,
      create in any party the right to accelerate, terminate, modify, or cancel,
      or
      require any notice under any agreement, contract, lease, license, instrument,
      or
      other arrangement to which ESP is a party or by which it is bound or to which
      any of its assets is subject, except for such notices or consents which have
      been given or obtained by ESP on or prior to the Closing.

    

    4.4    Capitalization.

     

    The
      authorized capital stock of ESP consists of 100,000,000 shares of Class A Common
      Stock, $.0001 par value per share, of which 29.6 million shares are issued
      and
      outstanding; 5,000,000 shares of Class B Common Stock, $.0001 par value per
      share, none of which are issued and outstanding, and; 20,000,000 shares of
      Class
      A Preferred Stock, $.0001 par value per share of which none are outstanding.
      There are no outstanding or authorized options, warrants, purchase rights,
      subscription rights, conversion rights, exchange rights, or other contracts
      or
      commitments that could require ESP to issue, sell, or otherwise cause to become
      outstanding any of its capital stock. There is no outstanding or authorized
      stock appreciation, phantom stock, profit participation, or similar rights
      with
      respect to ESP’s Common Stock. There are no voting trusts, proxies, or other
      agreements or understandings with respect to the voting of the capital stock
      of
      ESP.

     

    4.5    Investment.

     

    The
      ESP
      Shareholders are not acquiring the Common Shares of DUI with a view to or for
      sale in connection with any distribution thereof within the meaning of the
      Securities Act of 1933. ESP and the ESP Shareholders have had access to all
      information concerning DUI and its operations which it required to make its
      investment decision.

     

    4.6    Brokers'
      Fees.

     

    ESP
      has
      incurred no obligation to pay any commission, finder’s fee or other charge in
      connection with the transactions contemplated in this Agreement for which DUI
      could become liable or obligated. ESP and the ESP Shareholders, jointly and
      severally, will indemnify and hold DUI, and the Subsidiary, their respective
      officers, directors, employees, accountants and lawyers harmless from and
      against any and all liabilities and claims of any nature whatsoever arising
      out
      of or in connection with any commission, fee or charge so far as any arises
      by
      reason of services alleged to have been rendered to, or at the instance of,
      ESP
      and/or the ESP Shareholders. This
      indemnification shall survive the Closing and shall be included in the terms
      of
      indemnification set forth in Article 4.7 of this Agreement. 

    

    4.7    Events
      Subsequent to Fiscal Year End.

     

    Since
      the
      most recent fiscal year end of ESP there has not been any material adverse
      change in the business, financial condition, operations, results of operations,
      or future prospects of ESP taken as a whole. ESP and the ESP Shareholders,
      jointly and severally, shall indemnify, defend and hold DUI and Subsidiary,
      their successors and assigns, harmless from and against any order, action,
      cost,
      claim, damage, disbursement, expense, liability, loss, deficiency, obligation,
      penalty, fine, assessment or settlement of any kind or nature, whether
      foreseeable or unforeseeable, including, but not limited to, any and all
      attorney’s fees, costs, and other expenses, directly or indirectly, as a result
      of, or upon or arising from (i) any inaccuracy or breach or non-performance
      of
      any of the representations, warranties, covenants or agreements made by ESP
      or
      the ESP Shareholders in or pursuant to this Agreement, (ii) any order, action,
      cost, claim, damage, liability or lien arising out of ESP’s or ESP Shareholder’s
      conduct before or after the Closing, (iii) any third party claims against ESP
      or
      the ESP Shareholders, before or after the Closing that arise from ESP’s or ESP
      Shareholder’s conduct, or (iv) any loss or liability the proximate cause of
      which is determined to be the result of ESP’s or ESP Shareholder’s negligence or
      failure to comply with their respective obligations under this Agreement. DUI
      and/or Subsidiary, as the case may be, their successors and assigns, shall
      notify ESP and/or the ESP Shareholders of any claim for indemnification with
      reasonable promptness, and ESP’s or ESP’s legal representatives or ESP
      Shareholder’s or their legal representatives shall have, at their election, the
      right to compromise or defend any such matter involving such asserted liability
      of ESP and/or the ESP Shareholders through counsel of their own choosing, at
      the
      expense of ESP and the ESP Shareholders. ESP and the ESP Shareholders shall
      notify DUI and the Subsidiary, or their successors or assigns, in writing
      promptly of their intention to compromise or defend any claim and DUI and/or
      the
      Subsidiary, or their successors or assigns, shall cooperate with ESP and the
      ESP
      Shareholders, their respective counsel in compromising or defending any such
      claim, in accordance with Article 8 hereof. The terms of this Article 4.7 shall
      survive Closing.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    4.8    Undisclosed
      Liabilities.

     

    ESP
      has
      no material liability (whether known or unknown, whether asserted or unasserted,
      whether absolute or contingent, whether accrued or un-accrued, whether
      liquidated or un-liquidated, and whether due or to become due, including any
      liability for taxes), except for (i) liabilities set forth on the ESP Financial
      Statements; and (ii) liabilities which have arisen after the date of the ESP
      Financial Statements in the ordinary course of business. As used herein, “ESP
      Financial Statements” consist of the financial statements of ESP previously
      delivered to DUI in the form attached hereto as Exhibit E.

     

    4.9    Legal
      Compliance.

     

    ESP
      has
      complied with all applicable laws (including rules, regulations, codes, plans,
      injunctions, judgments, orders, decrees, rulings, and charges thereunder) of
      federal, state, local, and foreign governments (and all agencies thereof),
      and
      no action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      demand, or notice has been filed or commenced against ESP alleging any failure
      so to comply, except where the failure to comply would not have a material
      adverse effect on the business, financial condition, operations, results of
      operations, or future prospects of ESP.

    

    4.10    Tax
      Matters.

     

    
      	
               

            	
              (a)

            	
              ESP
                has filed all income tax returns that it has been required to file.
                All
                such income tax returns were correct and complete in all material
                respects. All income taxes owed by ESP (whether or not shown on any
                income
                tax return) have been paid. ESP is not currently the beneficiary
                of any
                extension of time within which to file any income tax
                return.

            
	 	 	 
	 	
              (b)

            	
              There
                is no material dispute or claim concerning any income tax liability
                of ESP
                either (i) claimed or raised by any authority in writing; or (ii)
                as to
                which ESP has knowledge based upon personal contact with any agent
                of such
                authority.

            

    

     

    4.11    Contracts.

    

    The
      ESP
      Financial Statements disclose all material contracts of ESP. Each contract
      or
      legal obligation of ESP which is to be assumed by DUI in connection with the
      Merger is listed on Exhibit F hereto. To the extent requested, true and correct
      copies of such contracts have been delivered to DUI for due diligence
      purposes.

    

    4.12    Environmental,
      Health and Safety Matters.

     

    ESP
      and
      its predecessors and affiliates have complied and are in compliance, in each
      case in all material respects, with all Environmental, Health, and Safety
      Requirements. As used herein “Environmental, Health & Safety Requirements”
means any Environmental, Health & Safety law or regulation including air and
      water quality laws and regulations and other similar requirements.

     

    4.13    Disclosure.

     

    The
      representations and warranties contained in this Article 4 do not contain any
      untrue statement of a material fact or omit to state any material fact necessary
      in order to make the statements and information contained in this Article 4
      not
      misleading.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    4.14    Financial
      Statements.

     

    The
      ESP
      Financial Statements are true and correct in all material respects, have been
      prepared on a consistent basis, and fairly represent the business, financial
      condition, assets and liabilities of ESP.

     

    4.15    Litigation.

     

    There
      is
      no claim, suit, action, proceeding or investigation pending or, to the knowledge
      of ESP, pending against ESP or any of its subsidiaries or assets which,
      individually or in the aggregate, could reasonably be expected to have a
      material adverse effect on ESP.

     

    4.16    Materials
      Required for Audit.

     

    To
      the
      best of its knowledge, ESP has maintained its records, data and materials
      related to the financial accounting of the business, and have all such data
      and
      materials immediately available, such that an audit may be completed per
      regulatory requirements.

     

    ARTICLE
      5

    REPRESENTATIONS
      AND WARRANTIES OF DUI

     

    DUI
      represents and warrants to ESP and to the ESP Shareholders that the statements
      contained in this Article 5 are correct and complete as of the date of this
      Agreement and will be correct and complete as of the Closing (as though made
      then and as though the Closing were substituted for the date of this Agreement
      throughout this Article 5).

     

    5.1    Organization
      of DUI

     

    DUI
      is a
      corporation duly organized, validly existing, and in good standing under the
      laws of Colorado. DUI has one subsidiary, DUI Operations, Inc., the
      Subsidiary.

     

    5.2    Authorization
      of Transaction.

     

    DUI
      has
      full corporate power and authority to execute and deliver this Agreement and
      to
      perform its obligations hereunder, and no approval of DUI’s shareholders is
      required under the laws of Colorado to consummate the Merger and other
      transactions contemplated in this Agreement. This Agreement constitutes the
      valid and legally binding obligation of DUI, enforceable in accordance with
      its
      terms and conditions. Except as expressly contemplated hereby, DUI need not
      give
      any notice to, make any filing with, or obtain any authorization, consent,
      or
      approval of any government or governmental agency in order to consummate the
      transactions contemplated by this Agreement.

    

    5.3    Non-contravention.

     

    Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (i) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which DUI is
      subject or any provision of its charter or bylaws; or (ii) conflict with, result
      in a breach of, constitute a default under, result in the acceleration of,
      create in any party the right to accelerate, terminate, modify, or cancel,
      or
      require any notice under any agreement, contract, lease, license, instrument,
      or
      other arrangement to which DUI is a party or by which it is bound or to which
      any of its assets is subject, except for such notices or consents which have
      been given or obtained by DUI on or prior to the Closing.

     

    5.4    Capitalization.

     

    The
      authorized capital stock of DUI consists of 20,000,000 shares of Common Stock,
      no par value per share, and 5,000,000 shares of Preferred Stock. As of the
      date
      of this Agreement, no preferred shares are outstanding, 1,230,000 shares of
      Common Stock are outstanding and upon the Closing, there shall be 6,000,000
      shares of its Common Stock outstanding. There are no outstanding options,
      warrants, or other outstanding purchase rights, subscription rights, conversion
      rights, exchange rights, or other contracts or commitments that could require
      DUI to issue, sell, or otherwise cause to become outstanding any of its capital
      stock except as may be set forth in one or more of the material agreements
      identified in Exhibit I hereto. There are no outstanding or authorized stock
      appreciation, phantom stock, profit participation, or similar rights with
      respect to DUI’s Common Stock. There are no voting trusts, proxies, or other
      agreements or understandings with respect to the voting of the capital stock
      of
      DUI. 

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    5.5    Intentionally
      Omitted

     

    5.6    Brokers'
      Fees.

     

    DUI
      has
      incurred no obligation to pay any commission, finder’s fee or other charge in
      connection with the transactions contemplated in this Agreement for which DUI
      could become liable or obligated. DUI will indemnify and hold ESP, and the
      ESP
      Shareholders, their respective officers, directors, employees, accountants
      and
      lawyers harmless from and against any and all liabilities and claims of any
      nature whatsoever arising out of or in connection with any commission, fee
      or
      charge so far as any arises by reason of services alleged to have been rendered
      to, or at the instance of, DUI or Subsidiary. This indemnification shall survive
      the Closing and shall be included in the terms of indemnification set forth
      in
      Article 5.7 of this Agreement. 

    

    5.7    Events
      Subsequent to Year End.

    

    Since
      the
      most recent calendar-fiscal year end of DUI, there has not been any material
      adverse change in the business, financial condition, operations, results of
      operations, or future prospects of DUI taken as a whole.

    DUI
      shall
      indemnify, defend and hold ESP, ESP Shareholders, their successors and assigns,
      harmless from and against any order, action, cost, claim, damage, disbursement,
      expense, liability, loss, deficiency, obligation, penalty, fine, assessment
      or
      settlement of any kid or nature, whether foreseeable or unforeseeable,
      including, but not limited to, any and all attorney’s fees, costs, and other
      expenses, directly or indirectly, as a result of, or upon or arising from (i)
      any inaccuracy or breach or non-performance of any of the representations,
      warranties, covenants or agreements made by DUI or Subsidiary in or pursuant
      to
      this Agreement, (ii) any order, action, cost, claim, damage, liability or lien
      arising out of DUI’s conduct before or after the Closing, (iii) any third party
      claims against DUI, Subsidiary before or after the Closing that arise from
      DUI’s
      conduct, or (iv) any loss or liability the proximate cause of which is
      determined to be the result of DUI’s negligence or failure to comply with its
      obligations under this Agreement. ESP and ESP’s Shareholders, their successors
      and assigns, shall notify DUI of any claim for indemnification with reasonable
      promptness, and DUI or DUI’s legal representatives shall have, at their
      election, the right to compromise or defend any such matter involving such
      asserted liability of DUI through counsel of their own choosing, at the expense
      of DUI. DUI shall notify ESP, ESP’s Shareholders, or their successors or
      assigns, in writing promptly of their intention to compromise or defend any
      claim and ESP, ESP’s Shareholders, or their successors or assigns, shall
      cooperate with DUI and DUI’s counsel in compromising or defending any such
      claim, in accordance with Article 8 hereof. The terms of this Article 5.7 shall
      survive Closing.

    

    5.8    Undisclosed
      Liabilities.

     

    DUI
      has
      no material liability (whether known or unknown, whether asserted or unasserted,
      whether absolute or contingent, whether accrued or un-accrued, whether
      liquidated or un-liquidated, and whether due or to become due, including any
      liability for taxes), except for (i) liabilities set forth on the DUI Financial
      Statements; and (ii) liabilities which have arisen after the date of the DUI
      Financial Statements in the ordinary course of business. As used herein, “DUI
      Financial Statements” consist of the financial statements of DUI previously
      delivered to ESP in the form attached hereto as Exhibit H.

     

    5.9    Legal
      Compliance.

    DUI
      has
      complied with all applicable laws (including rules, regulations, codes, plans,
      injunctions, judgments, orders, decrees, rulings, and charges thereunder) of
      federal, state, local, and foreign governments (and all agencies thereof),
      and
      no action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      demand, or notice has been filed or commenced against DUI alleging any failure
      so to comply, except where the failure to comply would not have a material
      adverse effect on the business, financial condition, operations, results of
      operations, or future prospects of DUI.

    

     5.10    Tax
      Matters.

     

    
      	
               

            	
              (a)

            	
              DUI
                has filed all income tax returns that it has been required to file.
                All
                such income tax returns were correct and complete in all material
                respects. All income taxes owed by DUI (whether or not shown on any
                income
                tax return) have been paid. DUI is not currently the beneficiary
                of any
                extension of time within which to file any income tax
                return.

            
	 	 	 
	
               

               

            	
              (b)

            	
              There
                is no material dispute or claim concerning any income tax liability
                of DUI
                either (i) claimed or raised by any authority in writing; or (ii)
                as to
                which DUI has knowledge based upon personal contact with any agent
                of such
                authority.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    5.11    Contracts.

     

    The
      DUI
      Financial Statements disclose all material contracts of DUI. Each contract
      or
      legal obligation of DUI to which DUI shall remain subject after the Merger
      is
      listed on Exhibit I hereto. To the extent requested, true and correct copies
      of
      such contracts have been delivered to ESP for due diligence
      purposes.

     

    5.12    Environmental,
      Health and Safety Matters.

     

    DUI
      and
      its predecessors and affiliates have complied and are in compliance, in each
      case in all material respects, with all Environmental, Health, and Safety
      Requirements. As used herein “Environmental, Health & Safety Requirements”
means any Environmental, Health & Safety law or regulation including air and
      water quality laws and regulations and other similar requirements.

     

    5.13    Disclosure.

     

    The
      representations and warranties contained in this Article 5 do not contain any
      untrue statement of a material fact or omit to state any material fact necessary
      in order to make the statements and information contained in this Article 5
      not
      misleading.

     

    5.14    Financial
      Statements.

     

    The
      DUI
      Financial Statements are true and correct in all material respects, have been
      prepared on a consistent basis, and fairly represent the business, financial
      condition, assets and liabilities of DUI.

     

    5.15    Litigation.

     

    There
      is
      no claim, suit, action, proceeding or investigation pending or, to the knowledge
      of DUI, pending against DUI or any of its subsidiaries or assets which,
      individually or in the aggregate, could reasonably be expected to have a
      material adverse effect on DUI.

    

    5.16    Materials
      Required for Audit.

    

    To
      the
      best of its knowledge, DUI has maintained its records, data and materials
      related to the financial accounting of the business, and has all such data
      and
      materials immediately available, such that an audit may be completed per
      regulatory requirements.

     

    ARTICLE
      6

    REPRESENTATIONS
      AND WARRANTIES OF SUBSIDIARY

     

    DUI
      represents and warrants to ESP that Subsidiary has been formed solely for the
      purpose of this Merger and that no contract, liabilities or other obligations
      exist in Subsidiary.

     

    6.1    Organization
      of Subsidiary.

     

    Subsidiary
      is a corporation duly organized, validly existing, and in good standing under
      the laws of Delaware and 100% owned by DUI.

     

    6.2    Authorization
      of Transaction.

     DUI
      has full corporate power and authority to execute and deliver Subsidiary with
      regard to this Agreement and to perform its obligations hereunder, including
      shareholder approval as may be required by the DGCL. 

     

    6.3    Non-contravention.

     

    Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (i) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which DUI or
      Subsidiary is subject or any provision of its charter or bylaws; or (ii)
      conflict with, result in a breach of, constitute a default under, result in
      the
      acceleration of, create in any party the right to accelerate, terminate, modify,
      or cancel, or require any notice under any agreement, contract, lease, license,
      instrument, or other arrangement to which DUI or Subsidiary is a party or by
      which it is bound or to which any of its assets is subject, except for such
      notices or consents which have been given or obtained by ESP on or prior to
      the
      Closing.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    6.4    Capitalization.

     

    The
      authorized capital stock of Subsidiary consists of two hundred (200) shares
      of
      Common Stock, $.01 par value per share, and no shares of Preferred Stock. As
      of
      the date of the Closing, there shall be 200 shares issued and outstanding and
      owned by DUI. There are not now nor shall there be any outstanding or authorized
      options, warrants, purchase rights, subscription rights, conversion rights,
      exchange rights, or other contracts or commitments that could require Subsidiary
      to issue, sell, or otherwise cause to become outstanding any of its capital
      stock. There are no outstanding or authorized stock appreciation, phantom stock,
      profit participation, or similar rights with respect to Subsidiary’s Common
      Stock. There are no voting trusts, proxies, or other agreements or
      understandings with respect to the voting of the capital stock of
      Subsidiary.

    

    ARTICLE
      7

    PRE-CLOSING
      COVENANTS

     

    The
      Parties agree as follows with respect to the period between the execution of
      this Agreement and the Closing:

     

    7.1    General.

     

    Each
      of
      the Parties will use its reasonable best efforts to take all action and to
      do
      all things necessary, proper, or advisable in order to consummate and make
      effective the transactions contemplated by this Agreement (including
      satisfaction, but not waiver, of the closing conditions set forth in Article
      9
      below).

     

    7.2    Notices
      and Consents.

     

    Each
      of
      the Parties will give any notices to, make any filings with, and use its
      reasonable best efforts to obtain any and all authorizations, consents, and
      approvals of governments and governmental agencies in connection with the
      transactions contemplated hereby. 

     

    7.3    Operation
      of Business.

     

    ESP,
      DUI,
      including Subsidiary, will not engage in any practice, take any action, or
      enter
      into any transaction outside the ordinary course of business, including, but
      not
      limited to declaration of dividends or distributions, redemptions, splits,
      recapitalizations, or similar events respecting its capital stock prior to
      Closing except, however, DUI shall prepare and file all documents necessary
      to
      increase its authorized common shares and enter into employment and consulting
      agreements pursuant to which it may issue its securities. 

     

    7.4    Full
      Access For Due Diligence.

     

    The
      Parties shall permit their respective representatives to have full access at
      all
      reasonable times, and in a manner so as not to interfere with their respective
      normal business operations, to all premises, properties, personnel, books,
      records (including tax records), contracts, and documents. The Parties shall
      treat and hold as such any Confidential Information they receive from ESP,
      will
      not use any of the Confidential Information except in connection with this
      Agreement, and, if this Agreement is terminated for any reason whatsoever,
      will
      return to ESP all tangible embodiments (and all copies) of the Confidential
      Information which are in their possession.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    7.5    No
      Shop Promises.

    

    Each
      of
      DUI, ESP and the ESP Shareholders have promised to each other that they shall
      utilize their respective best efforts to undertake any and all measures and
      deliver any and all documents necessary to consummate the transactions
      contemplated in this Agreement. The Parties make the following covenants to
      each
      other:

    

    (a)
      Except in the case that it terminates this Agreement pursuant to Article 10(c)
      or in the event of an automatic termination pursuant to Article 10(d), the
      ESP
      Shareholders shall
      not
      solicit or seek to acquire any assets or stock of any third party, nor shall
      they accept any offer to purchase or exchange any assets or securities of ESP
      from the date of this Agreement to the Closing or through the date they
      terminate this Agreement pursuant to the Articles set forth in this Article
      10(a).

    

    (b)
      Except
      in
      the case that it terminates this Agreement pursuant to Article 10(b) or in
      the
      event of an automatic termination pursuant to Article 10(d), DUI
      shall
      not solicit or seek to acquire any assets or stock of any third party from
      the
      date of this Agreement to the Closing or through the date it terminates this
      Agreement pursuant to the Articles set forth in this Article 10(b).

     

    ARTICLE
      8

    POST-CLOSING
      COVENANTS

     

    The
      Parties agree as follows with respect to the period following the
      Closing.

     

    8.1    General.

    

    In
      case
      at any time after the Closing any further action is necessary to carry out
      the
      purposes of this Agreement, each of the Parties will take such further action
      (including the execution and delivery of such further instruments and documents)
      as any other Party reasonably may request, all at the sole cost and expense
      of
      the requesting Party. ESP acknowledges and agrees that from and after the
      Closing, DUI will be entitled to possession of all documents, books, records
      (including tax records), agreements, and financial data of any sort relating
      to
      ESP.

    

    8.2    Intentionally
      Omitted

    

    8.3    Litigation
      Support.

     

    In
      the
      event and for so long as DUI or ESP actively are contesting or defending against
      any action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      or demand in connection with (i) any transaction contemplated under this
      Agreement; or (ii) any fact, situation, circumstance, status, condition,
      activity, practice, plan, occurrence, event, incident, action, failure to act,
      or transaction on or prior to the Closing Date involving ESP, then ESP and
      its
      affiliates will cooperate with DUI or ESP in the contest or defense, make
      available their personnel, and provide such testimony and access to their books
      and records as shall be necessary in connection with the contest or defense,
      all
      at the sole cost and expense of the contesting or defending Party. 

     

    ARTICLE
      9

    CONDITIONS
      TO OBLIGATION TO CLOSE

     

    9.1    Assumption
      of ESP
      Liabilities by DUI.
      DUI
      shall pay for only
      such
      liabilities as disclosed in Exhibit J hereto. 

     

    9.2    Conditions
      to Obligation of DUI and Subsidiary.

     

    The
      obligations of DUI and Subsidiary to consummate the transactions to be performed
      by them in connection with the Closing are subject to satisfaction of the
      following conditions:

     

    
      	
               

            	
              (a)

            	
              the
                representations and warranties set forth in Article 4 above shall
                be true
                and correct in all material respects at and as of the Closing
                Date;

            
	 	 	 
	 	
              (b)

            	
              ESP
                shall have performed and complied with all of its covenants hereunder
                in
                all material respects through the Closing, including Article 4
                hereby;

            
	 	 	 
	 	
              (c)

            	
              No
                action, suit, or proceeding shall be pending before any court or
                quasi-judicial or administrative agency of any federal, state, local,
                or
                foreign jurisdiction or before any arbitrator wherein an unfavorable
                injunction, judgment, order, decree, ruling, or charge would (i)
                prevent
                consummation of any of the transactions contemplated by this Agreement;
                (ii) cause any of the transactions contemplated by this Agreement
                to be
                rescinded following consummation; or (iii) affect materially and
                adversely
                the right of ESP to own its assets and to operate its businesses
                (and no
                such injunction, judgment, order, decree, ruling, or charge shall
                be in
                effect);

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	 	
              (d)

            	
              ESP
                shall have delivered to DUI a certificate to the effect that each
                of the
                conditions specified above in paragraphs 9.2 (a) through (c) is satisfied
                in all respects;

            
	 	 	 
	 	
              (e)

            	
              All
                actions to be taken by ESP in connection with consummation of the
                transactions contemplated hereby and all certificates, opinions,
                instruments, and other documents required to effect the transactions
                contemplated hereby will be reasonably satisfactory in form and substance
                to DUI.

            
	 	 	 
	 	
              (f)

            	
              ESP
                shall have delivered to DUI its audited financial statements for
                six month
                period ended June 30, 2007.

            

    

     

    9.3    Conditions
      to Obligation of ESP and the ESP Shareholders.

     

    The
      obligation of ESP and the ESP Shareholders to consummate the transactions to
      be
      performed by them in connection with the Closing is subject to satisfaction
      of
      the following conditions:

     

    
      
        	 	
                (a)

              	
                the
                  representations and
                  warranties set forth in Articles 5 and 6 above shall be true and
                  correct
                  in all material respects at and as of the Closing Date;

              
	 	 	 
	 	
                (b)

              	
                DUI
                  shall have performed and complied with all of their covenants hereunder
                  in
                  all material respects through the Closing;

              
	 	 	 
	 	
                (c)

              	
                No
                  action, suit, or proceeding shall be pending before any court or
                  quasi-judicial or administrative agency of any federal, state,
                  local, or
                  foreign jurisdiction or before any arbitrator wherein an unfavorable
                  injunction, judgment, order, decree, ruling, or charge would (i)
                  prevent
                  consummation of any of the transactions contemplated by this Agreement;
                  or
                  (ii) cause any of the transactions contemplated by this Agreement
                  to be
                  rescinded following consummation (and no such injunction, judgment,
                  order,
                  decree, ruling, or charge shall be in effect);

              
	 	 	 
	 	
                (d)

              	
                DUI
                  shall have delivered to ESP a certificate to the effect that each
                  of the
                  conditions specified above in paragraphs 9.3 (a) through (c) is
                  satisfied
                  in all respects;

              
	 	 	 
	 	
                (e)

              	
                All
                  actions to be taken by DUI in connection with consummation of the
                  transactions contemplated hereby and all certificates, opinions,
                  instruments, and other documents required to effect the transactions
                  contemplated hereby will be reasonably satisfactory in form and
                  substance
                  to ESP;

              
	 	 	 
	 	
                (f)

              	
                The
                  representations, warranties and covenants of the parties contained
                  in
                  Articles 4,
                  5,
                  6, 7 and 8 of
                  this Agreement shall survive the Closing
                  hereunder;

              
	 	 	 
	 	(g)	DUI shall have filed
                certificates
                of Amendment to its Articles of Incorporation (i) increasing its
authorized
                common shares from 20,000,000 to 200,000,000 shares and changed its
                corporate name
                to ESP Enterprises, Inc.;
	 	 	 
	 	(h)	DUI shall have obtained
                the
                approval of its shareholders to the Merger in accordance with the
Colorado
                Business Corporation Act and applicable securities
                laws.
	 	 	 
	 	(i)	ESP shall have received no less than
                $700,000
                in loans from DUI, all of which outstanding principal
                balances and accrued interest shall be forgiven by DUI at the
                Closing.

      

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    ARTICLE
      10

    TERMINATION

    

    10.1    Termination

     

    This
      Agreement may be terminated:

    

        (a)
      by the
      mutual written consent of DUI and ESP;

    

        (b)
      by DUI,
      in the event that any of the conditions to obligation to close enumerated in
      Section 9.2 
      have not
      been satisfied or waived by DUI in writing at or prior to the
      Closing;

    

        (c)
      by ESP
      and the ESP Shareholders, in the event that any of the conditions to obligation
      to close enumerated in Section 9.3 have not been satisfied or waived by ESP
      and
      the ESP Shareholders, in writing, at or prior to the Closing;

     

        (d)
      automatically, in the event that the Closing has not occurred on or before
      October 1, 2007 unless extended by mutual agreement of the parties.

    

    In
      the
      event of the termination of this Agreement in accordance with the provisions
      of
      this Article 10: this Agreement shall forthwith become null and void and there
      shall be no liability or obligation on the part of DUI, ESP or the ESP
      Shareholders or their respective officers and directors, and; the parties shall
      cooperate to rescind any corporate filings made with the Secretaries of State,
      States of Colorado and Delaware, if filed. 

    

    ARTICLE
      11

    MISCELLANEOUS

     

    11.1    Further
      Assurances

     

    From
      time
      to time, as and when required by DUI, ESP and/or the ESP Shareholders shall
      execute and deliver on behalf of ESP such deeds and other instruments, and
      shall
      take or cause to be taken by it such further and other actions, as shall be
      appropriate or necessary in order to vest or perfect in or conform of record
      the
      title to and possession of all the property, interests, assets, rights,
      privileges, immunities, powers, franchises and authority of ESP and to otherwise
      carry out the purposes of this Agreement. The officers and directors of ESP
      are
      fully authorized in the name and on behalf of ESP to take any and all such
      action and to execute and deliver any and all such deeds and other
      instruments.

     

    11.2    Agreement

     

    Executed
      copies of this Agreement will be on file at the office of DUI’s counsel at
      Joseph J. Tomasek, Esq., 77 North Bridge Street, Somerville, New Jersey 08876,
      and copies thereof will be furnished to any stockholder of a Constituent
      Corporation, upon request at such shareholder’s cost. DUI shall be responsible
      for all post-closing filings with any and all state and federal
      agencies.

     

    11.3    No
      Third-Party Beneficiaries.

     

    This
      Agreement shall not confer any rights or remedies upon any Person other than
      the
      Parties and their respective successors and permitted assigns.

     

    11.4    Entire
      Agreement.

     

    This
      Agreement (including the documents referred to herein) constitutes the entire
      agreement among the Parties and supersedes any prior understandings, agreements,
      Letter of Intent, or representations by or among the Parties, written or oral,
      to the extent they related in any way to the subject matter hereof.

     

    11.5    Succession
      and Assignment.

     

    This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign either this Agreement or any of his or its rights, interests, or
      obligations hereunder without the prior written approval of the other
      Parties.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    11.6    Counterparts.

     

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

     

    11.7    Headings.

     

    The
      section headings contained in this Agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    11.8    Notices.

     

    All
      notices, requests, demands, claims, and other communications hereunder will
      be
      in writing. Any notice, request, demand, claim, or other communication hereunder
      shall be deemed duly given if (and then two business days after) it is sent
      by
      registered or certified mail, return receipt requested, postage prepaid, and
      addressed to the intended recipient as set forth below:

     

    
      	
               

            	
              If
                to DUI:

            	
              Downside
                Up, Inc.

              C/O
                Joseph J. Tomasek, Esq.

              77
                North Bridge Street

              Somerville,
                New Jersey 08876

            
	
               

            	
               

            	 
	
               

            	
              To
                ESP:

            	
              ESP
                Resources, Inc.

              P.O.
                Box 53846

              Lafeyette,
                Louisiana 70505

               

              Attention:
                David Dugas, President

            

    

     

    Any
      Party
      may send any notice, request, demand, claim, or other communication hereunder
      to
      the intended recipient at the address set forth above using any other means
      (including personal delivery, expedited courier, messenger service, telecopy,
      telex, ordinary mail, or electronic mail), but no such notice, request, demand,
      claim, or other communication shall be deemed to have been duly given unless
      and
      until it actually is received by the intended recipient. Any Party may change
      the address to which notices, requests, demands, claims, and other
      communications hereunder are to be delivered by giving the other Parties notice
      in the manner herein set forth.

     

    11.9    Governing
      Law.

     

    This
      Agreement shall be governed by and construed in accordance with the domestic
      laws of the State of Delaware without giving effect to any choice or conflict
      of
      law provision or rule (whether of the State of Delaware or any other
      jurisdiction).

    

    11.10    Amendments
      and Waivers.

     

    No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by each of the Parties. No waiver by any Party
      of
      any default, misrepresentation, or breach of warranty or covenant hereunder,
      whether intentional or not, shall be deemed to extend to any prior or subsequent
      default, misrepresentation, or breach of warranty or covenant hereunder or
      affect in any way any rights arising by virtue of any prior or subsequent such
      occurrence.

    

     11.11    Severability.

     

    Any
      term
      or provision of this Agreement that is invalid or unenforceable in any situation
      in any jurisdiction shall not affect the validity or enforceability of the
      remaining terms and provisions hereof or the validity or enforceability of
      the
      offending term or provision in any other situation or in any other
      jurisdiction.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    11.12    Expenses.

     

    Each
      of
      the Parties will bear its own costs and expenses incurred in connection with
      this Agreement and the transactions contemplated hereby. 

    

    11.13    Construction.

     

    The
      Parties have participated jointly in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the Parties
      and no presumption or burden of proof shall arise favoring or disfavoring any
      Party by virtue of the authorship of any of the provisions of this Agreement.
      Any reference to any federal, state, local, or foreign statute or law shall
      be
      deemed also to refer to all rules and regulations promulgated thereunder, unless
      the context requires otherwise. 

     

    11.14    Status.

     

    Nothing
      contained in this Agreement shall cause a Party to be deemed an agent, employee,
      franchisee, joint venture, partner or legal representative of any other Party,
      and no Party shall purport to act in any such capacity for any other
      Party.

     

    11.15    Arbitration. 

    

    Any
      and
      all disputes arising out of or relating to this Agreement shall be resolved
      by
      arbitration. All arbitration hereunder will be conducted by the American
      Arbitration Association (“AAA”). If the AAA is dissolved, disbanded or becomes
      subject to any state or federal bankruptcy or insolvency proceeding, the parties
      will remain subject to binding arbitration which will be conducted by a mutually
      agreeable arbitral forum. The parties agree that all arbitrator(s) selected
      will
      be attorneys with at least five (5) years securities and corporate
      reorganization experience. The arbitrator(s) will decide if any inconsistency
      exists between the rules of any applicable arbitral forum and the arbitration
      provisions contained herein. If such inconsistency exists, the arbitration
      provisions contained herein will control and supersede such rules. The site
      of
      all arbitration proceedings will be in the City of Princeton and State of New
      Jersey in which AAA maintains a regional office. Any arbitration award rendered
      shall be final, conclusive and binding upon the Parties hereto, and a judgment
      thereon may be entered in any court of competent jurisdiction. 

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement and Plan of
      Merger to be signed by their respective officers thereunto duly authorized
      as of
      the date first written above.

     

    
      	
              ATTEST:

            	 	
              DOWNSIDE
                UP, INC.

            
	
               

            	 	
               

            
	
               

            	 	
              By:
                /s/ Michael J. Cavaleri

            
	
               ,
                Secretary

            	 	Michael J.
              Cavaleri,
              CEO and President
	 	 	 
	 	 	 
	ATTEST:	 	DUI OPERATIONS,
              INC.
              (In Organization)
	 	 	 
	 	 	
              By:
                /s/
                Michael J. Cavaleri

            
	
               ,
                Secretary

            	 	
              Michael
                Cavaleri, Chief Executive Officer

            
	 	 	 
	 	 	 
	ATTEST:	 	
              ESP
                RESOURCES, INC.

            
	 	 	 
	 	 	
              By:
                /s/
                David Dugas

            
	
              ,
                Secretary

            	 	
              David
                Dugas, President

            

    

     

    
      
         

      

      
        15

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