Document:

SHARE
      EXCHANGE AGREEMENT

     

    THIS
      SHARE EXCHANGE AGREEMENT
      (the
“Agreement”)
      dated
      this 20th
      day of
      August, 2007, by and among
      AMERICAN RACING CAPITAL, INC., a
      Nevada
      corporation (“ARC”),
      and
      MILLENNIUM MOTORSPORTS OF PENNSYLVANIA, a
      Pennsylvania company (the
      “Company”),
      and
      the Shareholder of the Company listed on Exhibit
      A
      attached
      hereto (the “Company
      Shareholder”).

     

    RECITALS:

     

    A. The
      Company Shareholder owns all of the outstanding capital stock of the Company.
      The authorized capital stock of the Company consists of One Thousand (1,000)
      shares of common stock, par value $1.00 per share, of which Four Hundred (400)
      of these shares are issued and outstanding (the “Company
      Common Stock”).

     

    B. The
      Company Shareholder desires to transfer and exchange 196 shares of the Company
      Common Stock in exchange for Thirteen Million Three Hundred-Fifty Thousand
      (13,350,000) shares of common stock, par value $0.001 per share, and One Million
      shares of preferred stock, par value $0.001of ARC (the “ARC
      Common Stock”
and
      “ARC
      Preferred Stock”
on
      the
      terms and conditions set forth herein and ARC desires to consummate such
      transfer and exchange pursuant to the terms and conditions set forth
      herein.

     

    AGREEMENT:

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises herein set forth and certain other good
      and
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto agree as follows:

     

    
      	1.            	
              THE
                SHARE EXCHANGE AND RELATED
                TRANSACTIONS.

            

    

     

    1.1.  Share
      Exchange.
      In
      accordance with the provisions of this Agreement, the Nevada Revised Statutes
      (the “NRS”)
      and
      other applicable law, on the Closing Date (as defined below), the Company
      Shareholder shall exchange with, and deliver to, ARC, the Company Common Stock,
      and in exchange therefore, ARC shall issue, and deliver, to the Company
      Shareholder in the denominations set forth opposite the name of each Company
      Shareholder on Schedule A
      attached
      hereto, Thirteen Million Three Hundred Fifty Thousand (13,350,000) restricted
      shares of ARC Common Stock and One Million (1,000,000) shares of Preferred
      Stock, par value $0.001 per share (the “ARC
      Preferred Stock”),
      (the
      exchange transaction is referred to herein as the “Share
      Exchange”).
      The
      total number of shares of ARC Common Stock and ARC Preferred Stock to be issued
      to the Company Shareholder shall be equal to Fourteen Million Three
      Hundred-Fifty Thousand shares. The shares of ARC Common Stock and the ARC
      Preferred Stock to be issued as part of the Share Exchange is referred to herein
      as the “ARC
      Shares,”
also
      sometimes referred to hereinafter as the “Exchange
      Consideration.”
In
      return, the Company shareholder shall exchange 196 shares of the Company Common
      Stock.

     

    1.2.  Closing.
      ARC,
      with the cooperation of the Company shall file Articles of Exchange (as defined
      below) pursuant to the NRS, cause the Share Exchange to become effective
      and consummate the other transactions contemplated by this Agreement (the
“Closing”) no
      later than August _, 2007; provided, in no event shall the Closing occur prior
      to the satisfaction of the conditions precedent set forth in Sections 6, 7
      and 8
      hereof. The date of the Closing is referred to herein as the “Closing
      Date.”
The
      Closing shall take place at the offices of counsel to ARC, or at such other
      place as may be mutually agreed upon by ARC and the Company Shareholder. At
      the
      Closing, (i) the Company Shareholder shall deliver to ARC the original
      stock certificates representing 196 shares of the Company Common Stock, together
      with stock powers duly executed in blank; and (ii) ARC shall deliver to the
      Company Shareholder stock certificates representing the ARC Shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    1.3.  Plan
      of Exchange; Articles of Share Exchange.
      The
      parties to this Agreement shall cause ARC and the Company to enter into a plan
      of exchange on the date hereof, substantially in the form attached hereto as
      Exhibit
      “B”
      (the
“Plan
      of Exchange”),
      and,
      at the Closing, to execute the Articles of Exchange, substantially in the form
      attached hereto as Exhibit
      “C”
      (the
“Articles
      of Exchange”).
      The
      Articles of Exchange shall be filed with the Secretary of State of Nevada on
      or
      shortly after the Closing Date in accordance with the NRS.

     

    1.4.  Approval
      of Share Exchange.
      By
      execution of this Agreement, the Company Shareholder and ARC, shall hereby
      ratify, approve and adopt the Share Exchange and the Plan of Exchange for all
      purposes under the NRS. On or before the execution of this Agreement, the
      respective Boards of Directors of ARC and the Company shall have approved this
      Agreement, the Plan of Exchange and the transactions contemplated hereby and
      thereby.

     

    	2.          
             	
            ADDITIONAL
              AGREEMENTS.

          

     

    2.1.  Access
      and Inspection, Etc.
      Each
      party to this Agreement has allowed and shall allow the other party and its
      authorized representatives full access during normal business hours from and
      after the date hereof and prior to the Closing Date to all of its properties,
      books, contracts, commitments and records for the purpose of making such
      investigations as the other party may reasonably request in connection with
      the
      transactions contemplated hereby, and shall cause the other party to furnish
      such information concerning its affairs as reasonably requested. Each party
      to
      this Agreement has caused and shall cause its personnel to assist the other
      party in making such investigation and shall use his best efforts to cause
      its
      counsel, accountants, and other non-employee representatives to be reasonably
      available to the other party for such purposes. 

     

    2.2.  Confidential
      Treatment of Information.
      From
      and after the date hereof, the parties hereto shall and shall cause their
      representatives to hold in confidence all data and information obtained with
      respect to the other parties or their business, except such data or information
      as is published or is a matter of public record, or as compelled by legal
      process. In the event this Agreement is terminated pursuant to Section 10
      hereof, each party shall promptly return to the other(s) any statements,
      documents, schedules, exhibits or other written information obtained from them
      in connection with this Agreement, and shall not retain any copies
      thereof.

     

    2.3.  Public
      Announcements.
      After
      the date hereof and prior to the Closing, none of the parties hereto shall
      make
      any press release, statement to employees or other disclosure of this Agreement
      or the transactions contemplated hereby without the prior written consent of
      the
      other parties, except as may be required by law. Neither the Company nor the
      Company Shareholder shall make any such disclosure unless ARC shall have
      received prior notice of the contemplated disclosure and has had adequate time
      and opportunity to comment on such disclosure, which shall be satisfactory
      in
      form and content to ARC and its counsel.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    2.4.  Securities
      Law Compliance.
      The
      issuance of the ARC Shares to the Company Shareholder hereunder shall not be
      registered under the Securities Act of 1933, as amended, by reason of the
      exemption provided by Section 4(2) thereof, and such shares may not be
      further transferred unless such transfer is registered under applicable
      securities laws or, in the opinion of ARC’s counsel, such transfer complies with
      an exemption from such registration. All certificates evidencing the ARC Shares
      to be issued to the Company Shareholder shall be legended to reflect the
      foregoing restriction. ARC hereby accepts all responsibility for insuring that
      ARC has, followed all necessary NRC, Securities, and all federal and state
      statutes, rules and regulations with respect to ARC’s securities and corporate
      law obligations in connection with this Agreement.

     

    2.5.  Best
      Efforts.
      Subject
      to the terms and conditions provided in this Agreement, each of the parties
      shall use its best efforts in good faith to take or cause to be taken as
      promptly as practicable all reasonable actions that are within its power to
      cause to be fulfilled those conditions precedent to its obligations or the
      obligations of the other parties to consummate the transactions contemplated
      by
      this Agreement that are dependent upon its actions.

     

    2.6.  Further
      Assurances.
      The
      parties shall deliver any and all other instruments or documents required to
      be
      delivered pursuant to, or necessary or proper in order to give effect to, the
      provisions of this Agreement, including, without limitation, all necessary
      stock
      powers and such other instruments of transfer as may be necessary or desirable
      to transfer ownership of the Company Common Stock and to consummate the
      transactions contemplated by this Agreement.

     

    2.7.  Certain
      Tax Matters.
      

     

    (a)  Cooperation
      on Tax Matters.

     

    (i)  ARC,
      the
      Company and the Company Shareholder shall cooperate fully, as and to the extent
      reasonably requested by the other party, in connection with the filing of tax
      returns pursuant to this Section 2.7 and any audit, litigation or other
      proceeding with respect to taxes. Such cooperation shall include the retention
      and (upon the other party’s request) the provision of records and
      information which are reasonably relevant to any such audit, litigation or
      other
      proceeding and making employees available on a mutually convenient basis to
      provide additional information and explanation of any material provided
      hereunder. The Company and the Company Shareholder agree (A) to retain all
      books and records with respect to tax matters pertinent to the Company relating
      to any taxable period beginning before the Closing Date until the expiration
      of
      the statute of limitations (and, to the extent notified by ARC or the Company
      Shareholder, any extensions thereof) of the respective taxable periods, and
      to abide by all record retention agreements entered into with any taxing
      authority, and (B) to give the other party reasonable written notice prior
      to transferring, destroying or discarding any such books and records and, if
      the
      other party so requests, the Company or the Company Shareholder, as the case
      may
      be, shall allow the other party to take possession of such books and
      records.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (ii)  ARC
      and
      the Company Shareholder further agree, upon request, to use their commercially
      reasonable efforts to obtain any certificate or other document from any
      governmental authority or any other person as may be necessary to mitigate,
      reduce or eliminate any tax that could be imposed (including, but not limited
      to, with respect to the transactions contemplated hereby).

     

    2.8.  Release
      of Claims By the Company Shareholder.
      Effective as of the Closing Date, and except for any obligations arising out
      of
      this Agreement, the Company Shareholder, and its successors, predecessors,
      assigns, agents, advisors, legal representatives, partners and all persons
      acting by, through or under it, hereby release the Company and each of their
      successors, predecessors, assigns, agents, advisors, officers, directors,
      employees, legal representatives, partners and all persons acting by, through
      or
      under each of them, from any and all claims, obligations, causes of action,
      actions, suits, contracts, controversies, agreements, promises, damages,
      demands, costs, attorneys’ fees and liabilities of any nature whatsoever from
      the beginning of time up to and including the Closing Date, in law or at equity,
      whether known now or on the Closing Date, anticipated or unanticipated,
      suspected or claimed, fixed or contingent, liquidated or unliquidated, arising
      out of, in connection with or relating to any matter, cause or thing
      whatsoever.

     

    	3.         
              	
            REPRESENTATIONS,
              COVENANTS AND WARRANTIES OF THE COMPANY AND THE COMPANY
              SHAREHOLDER.

          

     

    To
      induce
      ARC to enter into this Agreement and to consummate the transactions contemplated
      hereby, the Company, and the Company Shareholder jointly and severally represent
      and warrant to and covenant with ARC as follows:

     

    3.1.  Organization;
      Compliance.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of Pennsylvania. The Company is: (a) entitled to own or
      lease its properties and to carry on its business as and in the places where
      such business is now conducted, and (b) duly licensed, in good standing and
      qualified in all jurisdictions where the character of the property owned by
      it
      or the nature of the business transacted by it makes such license or
      qualification necessary, except where the failure to do so would not result
      in a
      material adverse effect on the Company. Schedule 3.1
      lists
      all locations where the Company has an office or place of business and the
      nature of the ownership interest in such property (fee, lease, or
      other).

     

    3.2.  Capitalization
      and Related Matters of the Company.

     

    (a)  The
      authorized capital stock of the Company consists One Thousand (1,000) shares
      of
      common stock, par value $1.00 per share, of which Four Hundred (400) of these
      shares are issued and outstanding. No shares of the Company Common Stock
      (i) were issued in violation of the preemptive rights of any shareholder,
      or (ii) are held as treasury stock. All of the shares of the Company Common
      Stock to be delivered under the terms of this Agreement are owned of record,
      legally and beneficially by the Company Shareholder. The shares of the Company
      Common Stock are free and clear of any and all security interests, encumbrances,
      and rights of any kind or nature whatsoever (collectively, “Encumbrances”),
      and
      upon delivery of the Company Common Stock hereunder, ARC and its assigns will
      acquire title thereto, free and clear of any and all Encumbrances. Other than
      voting rights, redemption rights and such other rights conferred by the
      Company’s charter documents and by applicable Pennsylvania statutes, there exist
      no Securities Rights (as defined herein) with respect to the Company Common
      Stock. All rights and powers to vote the shares of the Company Common Stock
      are
      held exclusively by the Company Shareholder. All of the Company Common Stock
      is
      validly issued, fully paid and nonassessable, were not issued in violation
      of
      the terms of any agreement or other understanding, and were issued in compliance
      with all applicable federal and state securities or “blue
      sky”
laws
      and regulations. The certificates representing the Company Common Stock to
      be
      delivered to ARC at the Closing are, and the signatures and endorsements thereof
      or stock powers relating thereto will be, valid and genuine. For the purposes
      of
      this section, “Securities
      Rights”
means,
      with respect to the Company Common Stock (whether issued or unissued) or
      any other securities convertible into or exchangeable for the Company Common
      Stock, and includes all written or unwritten contractual rights relating to
      the
      issuance, sale, assignment, transfer, purchase, redemption, conversion,
      exchange, registration or voting of the Company Common Stock and all rights
      conferred by the Company’s governing documents and by any applicable
      agreement.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (b)  There
      are
      not outstanding any securities convertible into capital stock of the Company
      nor
      any rights to subscribe for or to purchase, or any options for the purchase
      of,
      or any agreements providing for the issuance (contingent or otherwise) of,
      or any calls, commitments or claims of any character relating to, such capital
      stock or securities convertible into such capital stock. The Company:
      (i) is not subject to any obligation (contingent or otherwise) to
      repurchase or otherwise acquire or retire any of its capital stock; or
      (ii) has no liability for dividends or other distributions declared or
      accrued, but unpaid, with respect to any capital stock.

     

    3.3.  Subsidiaries.
      Except
      as set forth on Schedule 3.3 attached hereto, the Company owns (a) no
      shares of capital stock of any other corporation, including any joint stock
      company, and (b) no other proprietary interest in any company, partnership,
      trust or other entity, including any limited liability company. 

     

    3.4.  Execution;
      No Inconsistent Agreements; Etc. 

     

    (a)  This
      Agreement is a valid and binding agreement of the Company and the Company
      Shareholder, enforceable in accordance with its terms, except as such
      enforcement may be limited by bankruptcy or similar laws affecting the
      enforcement of creditors’ rights generally, and the availability of equitable
      remedies. The Company and the Company Shareholder have the absolute and
      unrestricted right, power, authority, and capacity to execute and deliver this
      Agreement and the documents to be delivered by them in connection with the
      Closing and to perform their obligations under this Agreement.

     

    (b)  The
      execution and delivery of this Agreement by the Company and the Company
      Shareholder does not, and the consummation of the transactions contemplated
      hereby will not, constitute a breach or violation of the charter or bylaws
      of
      the Company, or a default under any of the terms, conditions or provisions
      of
      (or an act or omission that would give rise to any right of termination,
      cancellation or acceleration under) any note, bond, mortgage, lease,
      indenture, agreement or obligation to which the Company or the Company
      Shareholder is a party, pursuant to which the Company or the Company Shareholder
      otherwise receives benefits, or to which any of the properties of the Company
      or
      the Company Shareholder is subject, or violate any judgment, order, decree,
      statute or regulation applicable to the Company or the Company Shareholder
      or by
      which any of them may be subject.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    3.5.  Articles
      of Incorporation and By-Laws.
      The
      Company has heretofore made available and delivered to ARC a complete and
      correct copy of the Articles of Incorporation and the By-laws of the Company.
      Such Articles of Incorporation and By-Laws are in full force and effect and
      have
      not been amended or modified.

     

    3.6.  Corporate
      Records.
      The
      statutory records, including the stock register and minute books of the Company
      fully reflect all issuances, transfers and redemptions of its capital stock,
      currently show and will correctly show the total number of shares of its capital
      stock issued and outstanding on the date hereof and on the Closing Date, the
      charter or other organizational documents and all amendments thereto, the bylaws
      as amended and currently in force. To the best knowledge of the Company
      Shareholder, the books of account, minute books, stock record, books, and other
      records of the Company all of which have been made available to ARC, are
      complete and correct and have been maintained in accordance with sound business
      practices. The minute books of the Company contain accurate and complete records
      of all meetings held of, and corporate action taken by, the Company Shareholder,
      the Board of Directors, and committees of the Boards of Directors of the Company
      and no meeting of any such Company Shareholder, Board of Directors, or committee
      has been held for which minutes have not been prepared and are not contained
      in
      such minute books. At the Closing, all of those books and records will be in
      the
      possession of the Company.

     

    (a)  Liabilities.
      Except
      as set forth on Schedule
      3.7,
      the
      Company has no debt, liability or obligation of any kind, whether accrued,
      absolute, contingent or otherwise.

     

    3.7.  Absence
      of Changes.
      Except
      as disclosed on Schedule
      3.8,
      through
      the date of this Agreement:

     

    (a)  there
      has
      not been any adverse change in the business, assets, liabilities, results of
      operations or financial condition of the Company; and

     

    (b)  there
      has
      not been any: (i) change in the Company’s authorized or issued capital
      stock; (ii) a declaration or payment of any dividend or other distribution
      or payment in respect of shares of capital stock; or (iii) amendment to the
      Articles of Incorporation or Bylaws of the Company.

     

    3.8.  Title
      to Properties.
      The
      Company has good and marketable title to all of its properties and assets,
      real
      and personal, free and clear of all encumbrances, liens or charges of any kind
      or character.

     

    3.9.  Compliance
      With Law.
      The
      business and activities of the Company has at all times been conducted in
      accordance with their respective Articles of Incorporation and Bylaws and any
      applicable law, regulation, ordinance, order, License (as defined in
      Section 3.18), permit, rule, injunction or other restriction or ruling of
      any court or administrative or governmental agency, ministry, or body, except
      where the failure to do so would not result in a material adverse effect on
      the
      Company.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    3.10.  Taxes.
      Except
      as stated on Schedule
      3.12,
      the
      Company has duly filed all federal, provincial, and material local and foreign
      tax returns and reports, and all returns and reports of all other governmental
      units having jurisdiction with respect to taxes imposed on it or on its income,
      properties, sales, franchises, operations or employee benefit plans or trusts,
      all such returns were complete and accurate when filed, and all taxes and
      assessments payable by the Company has been paid to the extent that such taxes
      have become due. All taxes accrued or payable by the Company for all periods
      through the date of this Agreement, have been accrued or paid in full, whether
      or not due and payable and whether or not disputed. Each of the Company has
      withheld or collected and paid over to the appropriate governmental
      authorities (or is properly holding for such payment) all Taxes
      required by law to be withheld or collected, except for amounts which would
      not,
      individually or in the aggregate, have a material adverse effect on the Company.
      For purposes of this Agreement, “Tax”
or
      “Taxes”
means
      any and all taxes, fees, levies, duties, tariffs, imposts and other charges
      of
      any kind (together with any and all interest, penalties, additions to tax and
      additional amounts imposed with respect thereto) imposed by any government
      or taxing authority, including, without limitation: taxes or other charges
      on or
      with respect to income, franchises, windfall or other profits, gross receipts,
      property, sales, use, capital stock, payroll, employment, social security,
      workers’ compensation, unemployment compensation, or net worth; taxes or other
      charges in the nature or excise, withholding, ad
      valorem,
      stamp,
      transfer, value added or gains taxes, license, registration and documentation
      fees, and custom duties, tariffs and similar charges. 

     

    3.11.  Assets.

     

    (a)  The
      Company owns, leases or has the right to use all the properties and assets,
      including, without limitation, the real property and personal property, used
      in
      the conduct of its business or otherwise owned, leased, or used, and, with
      respect to contract rights, is a party to and enjoys the right to the benefits
      of all contracts, agreements and other arrangements used or intended to be
      used
      by the Company or in or relating to the conduct of its business (all such
      properties, assets and contract rights being the “Assets”).
      The
      Company has good and marketable title to, or, in the case of leased or subleased
      Assets, valid and subsisting leasehold interests in, all the Assets, free and
      clear of all encumbrances.

     

    (b)  The
      Assets constitute all the properties, assets and rights forming a part of,
      used
      or held in, and all such properties, assets and rights used in the conduct
      of,
      the business of the Company and the Company’s subsidiaries as it is currently
      conducted. All of the Assets are in good operating condition and repair, normal
      wear and tear excepted.

     

    3.12.  Contingencies.
      Except
      as disclosed on Schedule 3.13,
      there
      are no actions, suits, claims or proceedings pending, or to the knowledge of
      the
      Company Shareholder threatened against, by or affecting, the Compamy in any
      court or before any arbitrator or governmental agency that may have a material
      adverse effect on the Company or which could materially and adversely affect
      the
      right or ability of the Company Shareholder to consummate the transactions
      contemplated hereby. To the knowledge of the Company Shareholder, there is
      no
      valid basis upon which any such action, suit, claim, or proceeding may be
      commenced or asserted against the Company. There are no unsatisfied judgments
      against the Company and no consent decrees or similar agreements to which the
      Company is subject and which could have a material adverse effect on the
      Company.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    3.13.  Employee
      Benefit Matters.
      There
      are no employee benefit plans (as defined in Section 3(3) of
      ERISA), bonus, stock option, stock purchase, restricted stock, incentive,
      deferred compensation, retiree medical or life insurance, supplemental
      retirement, severance or other benefit plans, programs or arrangements to which
      the Company is a party, with respect to which the Company has any obligation,
      or
      which are maintained, contributed to, or sponsored by the Company for the
      benefit of any current or former employee, officer, or director of the
      Company.

     

    3.14.  Intellectual
      Property.
      The
      Company and the is the owner of the entire, title and interest in and to the
      intellectual property used by them in the conduct of their businesses, free
      and
      clear of all Encumbrances, and has the right to use, all such intellectual
      property in the continued operations of the Company.

     

    3.15.  Possession
      of Franchises, Licenses, Etc.
      Each of
      the Company: (a) possess all material franchises, certificates, licenses,
      permits and other authorizations (collectively, the “Licenses”) from
      governmental authorities, political subdivisions or regulatory authorities
      that
      are necessary for the ownership, maintenance and operation of its business
      in
      the manner presently conducted; (b) are not in violation of any provisions
      thereof; and (c) have maintained and amended, as necessary, all Licenses
      and duly completed all filings and notifications in connection therewith.
Schedule
      3.16
      sets
      forth a list of all of the Company’s Licenses.

     

    3.16.  Agreements
      and Transactions with Related Parties.
      Except
      as disclosed on Schedule 3.17,
      the
      Company is not a party to any contract, agreement, lease or transaction with,
      or
      any other commitment to, (a) any ARC Shareholder, (b) any person
      related by blood, adoption or marriage to any ARC Shareholder, (c) any
      director or officer of the Company, (d) any corporation or other entity in
      which any of the foregoing parties has, directly or indirectly, at least five
      percent (5.0%) beneficial interest in the capital stock or other type
      of equity interest in such corporation or other entity, or (e) any
      partnership in which any such party is a general partner or a limited partner
      having a five percent (5%) or more interest therein (any or all of the
      foregoing being herein referred to as a “Related
      Party”
and,
      collectively, as the “Related
      Parties”).

     

    3.17.  Litigation.
      Except
      as disclosed on Schedule
      3.18,
      there
      is no suit, action or proceeding pending, and no person has overtly-threatened
      in a writing delivered to the Company or the Company Shareholder to commence
      any
      suit, action or proceeding, against or affecting the Company, nor is there
      any
      judgment, decree, injunction, or order of any governmental entity or arbitrator
      outstanding against, or, to the knowledge of the Company, pending investigation
      by any governmental entity involving, the Company or the Company’s
      Shareholder.

     

    3.18.  Material
      Contracts.
      Schedule 3.19
      contains
      a complete list of all contracts of the Company, which involve consideration
      in
      excess of the equivalent of $10,000 or have a term of one year or more (the
      “Material
      Contracts”).
      The
      Company has delivered to ARC a true, correct and complete copy of each of the
      written contracts, and a summary of each oral contract, listed on Schedule 3.19.
      Except
      as disclosed in Schedule 3.19:
      (a) the Company has performed all material obligations to be performed by
      it under all such contracts, and is not in material default thereof, and
      (b) no condition exists or has occurred which with the giving of notice or
      the lapse of time, or both, would constitute a material default or accelerate
      the maturity of, or otherwise modify, any such contract, and (c) all such
      contracts are in full force and effect. No material default by any other party
      to any of such contracts is known or claimed by the Company or any ARC
      Shareholder to exist.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    3.19.  Employment
      and Labor Matters.
      Schedule 3.2
      sets
      forth the name, position, employment date, and current compensation (base and
      bonus) of each employee of the Company. The Company is not a party to any
      collective bargaining agreement or agreement of any kind with any union or
      labor
      organization.

     

    3.20.  Environmental
      Matters.
      The
      Company is not in violation, in any material respect, of any Environmental
      Law
      (as defined herein); the Company has received all permits and approvals with
      respect to emissions into the environment and the proper collection, storage,
      transport, distribution or disposal of Wastes (as defined herein) and other
      materials required for the operation of its business at present operating
      levels; and they are not liable or responsible for any clean up, fines,
      liability or expense arising under any Environmental Law, as a result of the
      disposal of Wastes or other materials in or on the property of the Company
      (whether owned or leased), or in or on any other property, including property
      no
      longer owned, leased or used by the Company. As used herein,
      (a) “Environmental
      Laws”
means,
      collectively, the Comprehensive Environmental Response, Compensation and
      Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization
      Act of 1986, the Resource Conservation and Recovery Act, the Toxic Substances
      Control Act, as amended, the Clean Air Act, as amended, the Clean Water Act,
      as
      amended, any other “Superfund”
or
      “Superlien”
law
      or
      any other federal, or applicable state or local statute, law, ordinance, code,
      rule, regulation, order or decree (foreign or domestic) regulating,
      relating to, or imposing liability or standards of conduct concerning, Wastes,
      or the environment; and (b) “Wastes”
means
      and includes any hazardous, toxic or dangerous waste, liquid, substance or
      material (including petroleum products and derivatives), the generation,
      handling, storage, disposal, treatment or emission of which is subject to any
      Environmental Law.

     

    3.21.  Full
      Disclosure.
      No
      representation or warranty of the Company Shareholder contained in this
      Agreement, and none of the statements or information concerning the Company
      contained in this Agreement and the Schedules attached hereto, contains or
      will
      contain as of the date hereof and as of the Closing Date any untrue statement
      of
      a material fact nor will such representations, warranties, covenants or
      statements taken as a whole omit 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.

     

    	4.          
             	
            REPRESENTATIONS
              AND WARRANTIES OF ARC.

          

     

    To
      induce
      the Company Shareholder to enter into this Agreement and to consummate the
      transactions contemplated hereby, ARC represents and warrants to and covenants
      with the Company Shareholder as follows:

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    4.1.  Organization.
      ARC is
      a corporation duly organized, validly existing and in good standing under the
      laws of the State of Nevada. ARC is entitled to own or lease its properties
      and
      to carry on its business as and in the places where such business is now
      conducted, and ARC is duly licensed and qualified in all jurisdictions where
      the
      character of the property owned by it or the nature of the business transacted
      by it makes such license or qualification necessary, except where such failure
      would not result in a material adverse effect on ARC.

     

    4.2.  Capitalization
      and Related Matters.
      

     

    (a)  ARC
      has
      an authorized capital stock consisting of Five Hundred Million (500,000,000)
      shares of common stock, par value $0.001 per share, of which Thirty Three
      Million One Hundred Eighty-Five Thousand Three Hundred Ninety-Eight (33,185,398)
      shares are issued and outstanding. Additionally, ARC has authorized the issuance
      of Ten Million (10,000,000) shares of preferred stock, $0.001 per share, of
      which One Million (1,000,000) are issued and outstanding. 

     

    (b)  Except
      as
      disclosed in documents filed by ARC with the Securities and Exchange
      Commission (the “SEC
      Documents”),
      and
      except for employee stock options to purchase shares of the ARC Common Stock,
      ARC does not have outstanding any securities convertible into capital stock,
      nor
      any rights to subscribe for or to purchase, or any options for the purchase
      of,
      or any agreements providing for the issuance (contingent or otherwise) of,
      or any calls, commitments or claims of any character relating to, its capital
      stock or securities convertible into its capital stock.

     

    (c)  The
      shares of the ARC Common and Preferred Stock that are being conveyed to
      Company’s Shareholder are free and clear of any and all security interests,
      encumbrances, and rights of any kind or nature whatsoever (collectively,
“Encumbrances”),
      and
      upon delivery of the ARC Common and Preferred Stock hereunder, the Company
      Shareholder and its assigns will acquire title thereto, free and clear of any
      and all Encumbrances, except as created by the Company Shareholder.

     

    4.3.  Execution;
      No Inconsistent Agreements; Etc. 

     

    (a)  The
      execution and delivery of this Agreement and the performance of the transactions
      contemplated hereby have been duly and validly authorized and approved by the
      Board of Directors of ARC and this Agreement is a valid and binding agreement
      of
      ARC enforceable against ARC in accordance with its terms, except as such
      enforcement may be limited by bankruptcy or similar laws affecting the
      enforcement of creditors’ rights generally, and the availability of equitable
      remedies.

     

    (b)  The
      execution and delivery of this Agreement by ARC does not, and the consummation
      of the transactions contemplated hereby will not, constitute a breach or
      violation of the charter or bylaws of ARC or a default under any of the terms,
      conditions or provisions of (or an act or omission that would give rise to
      any
      right of termination, cancellation or acceleration under) any material
      note, bond, mortgage, lease, indenture, agreement or obligation to which ARC
      or
      any of its Company’s subsidiaries is a party, pursuant to which any of them
      otherwise receive benefits, or by which any of their properties may be
      bound.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    4.4.  Financial
      Statements.
      ARC has
      delivered to the Company the consolidated audited balance sheets of ARC as
      of
      December 31, 2006, the consolidated audited statement of income for the fiscal
      year ended December 31, 2006, and the consolidated unaudited balance sheet
      as of
      March 31, 2007, collectively, the “ARC
      Financial Statements”).
      The
      ARC Financial Statements have been prepared in accordance with GAAP, applied
      on
      a consistent basis (except that the unaudited statements do not contain all
      the
      disclosures required by GAAP), and fairly reflect in all material respects
      the
      consolidated financial condition of ARC and its subsidiaries as at the dates
      thereof and the consolidated results of ARC’s operations for the periods then
      ended. Since December 31, 2006, or as disclosed in the SEC Documents or press
      releases issued by ARC, there has been no material adverse change in the assets
      or liabilities, in the business or condition, financial or otherwise, of ARC,
      or
      in its results of operations.

     

    4.5.  Liabilities.
      Except
      as disclosed in the SEC Documents or press releases issued by ARC or
Schedule
      4.5,
      ARC nor
      any of its subsidiaries has any material debt, liability or obligation of any
      kind, whether accrued, absolute, contingent or otherwise, except (a) those
      reflected on the ARC Financial Statements, including the notes thereto, and
      (b) liabilities incurred in the ordinary course of business since December
      31, 2006, none of which have had or will have a material adverse affect on
      the
      financial condition of ARC and its subsidiaries taken as a whole.

     

    4.6.  Contingencies.
      Except
      as disclosed on Schedule
      4.6
      or the
      SEC Documents, there are no actions, suits, claims or proceedings pending or,
      to
      the knowledge of ARC’s management, threatened against, by or affecting ARC or
      any of its subsidiaries in any court or before any arbitrator or governmental
      agency which could have a material adverse effect on ARC or its subsidiaries
      or
      which could materially and adversely affect the right or ability of ARC to
      consummate the transactions contemplated hereby. To the knowledge of ARC, there
      is no valid basis upon which any such action, suit, claim or proceeding may
      be
      commenced or asserted against ARC or its subsidiaries. There are no unsatisfied
      judgments against ARC and no consent decrees or similar agreements to which
      ARC
      or its subsidiaries is subject and which could have a material adverse effect
      on
      ARC or its subsidiaries or which could materially and adversely affect the
      right
      or ability of ARC to consummate the transactions contemplated
      hereby.

     

    4.7.  Full
      Disclosure.
      No
      representation or warranty of ARC contained in this Agreement, and none of
      the
      statements or information concerning ARC contained in this Agreement and the
      Schedules attached hereto, contains or will contain as of the date hereof and
      as
      of the Closing Date any untrue statement of a material fact nor will such
      representations, warranties, covenants or statements taken as a whole omit
      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.

     

    	5.          
             	
            INTENTIONALLY
              NOT USED.

          

     

    	6.          
             	
            CONDITIONS
              TO OBLIGATIONS OF ALL PARTIES.

          

     

    The
      obligation of the Company, the Company Shareholder and ARC to consummate the
      transactions contemplated by this Agreement are subject to the satisfaction,
      on
      or before the Closing, of each of the following conditions; any or all of which
      may be waived in whole or in part by the joint agreement of ARC, the Company
      and
      the Company Shareholder:

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    6.1.  Absence
      of Actions.
      No
      action or proceeding shall have been brought or threatened before any court
      or
      administrative agency to prevent the consummation or to seek damages in a
      material amount by reason of the transactions contemplated hereby, and no
      governmental authority shall have asserted that the within transactions (or
      any
      other pending transaction involving ARC, any of its subsidiaries, the Company
      Shareholder or the Company when considered in light of the effect of the within
      transactions) shall constitute a violation of law or give rise to material
      liability on the part of the Company Shareholder, the Company or ARC or its
      Subsidiaries.

     

    6.2.  Consents.
      The
      parties shall have received from any suppliers, lessors, lenders, lien holders
      or governmental authorities, bodies or agencies having jurisdiction over the
      transactions contemplated by this Agreement, or any part hereof, such consents,
      authorizations and approvals as are necessary for the consummation hereof,
      including, without limitation, the consents listed on Schedule 6.2.

     

    	7.          
             	
            CONDITIONS
              TO OBLIGATIONS OF ARC. 

          

     

    All
      obligations of ARC to consummate the transactions contemplated by this Agreement
      are subject to the fulfillment and satisfaction of each and every of the
      following conditions on or prior to the Closing, any or all of which may be
      waived in whole or in part by ARC:

     

    7.1.  Representations
      and Warranties.
      The
      representations and warranties contained in Section 3 of this Agreement and
      in any certificate, instrument, schedule, agreement or other writing delivered
      by or on behalf of the Company and the Company Shareholder in connection with
      the transactions contemplated by this Agreement shall be true, correct and
      complete in all material respects (except for representations and
      warranties which are by their terms qualified by materiality, which shall be
      true, correct and complete in all respects) as of the date when made and
      shall be deemed to be made again at and as of the Closing Date and shall be
      true, correct and complete at and as of such time in all material respects
      (except for representations and warranties which are by their terms qualified
      by
      materiality, which shall be true, correct and complete in all
      respects).

     

    7.2.  Compliance
      with Agreements and Conditions.
      The
      Company Shareholder and the Company shall have performed and complied with
      all
      material agreements and conditions required by this Agreement to be performed
      or
      complied with by the Company Shareholder and/or by the Company prior to or
      on
      the Closing Date. 

     

    7.3.  Absence
      of Material Adverse Changes.
      No
      material adverse change in the business, assets, financial condition, or
      prospects of the Company shall have occurred, and no event shall have occurred
      which has had or will have a material adverse effect on the business, assets,
      financial condition or prospects of the Company.

     

    7.4.  Certificate
      of the Company Shareholder.
      The
      Company Shareholder shall have executed and delivered, or caused to be executed
      and delivered, to ARC one or more certificates, dated the Closing Date,
      certifying in such detail as ARC may reasonably request to the fulfillment
      and
      satisfaction of the conditions specified in Sections 7.1 through 7.3
      above.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    	8.          
             	
            CONDITIONS
              TO OBLIGATIONS OF THE COMPANY
              SHAREHOLDER.

          

     

    All
      of
      the obligations of the Company Shareholder to consummate the transactions
      contemplated by this Agreement are subject to the fulfillment and satisfaction
      of each and every of the following conditions on or prior to the Closing, any
      or
      all of which may be waived in whole or in part by the Company
      Shareholder:

     

    8.1.  Representations
      and Warranties.
      The
      representations and warranties contained in Section 4 of this Agreement and
      in any certificate, instrument, schedule, agreement or other writing delivered
      by or on behalf of ARC in connection with the transactions contemplated by
      this
      Agreement shall be true and correct in all material respects (except for
      representations and warranties which are by their terms qualified by
      materiality, which shall be true, correct and complete in all
      respects) when made and shall be deemed to be made again at and as of the
      Closing Date and shall be true at and as of such time in all material respects
      (except for representations and warranties which are by their terms qualified
      by
      materiality, which shall be true, correct and complete in all
      respects).

     

    8.2.  Compliance
      with Agreements and Conditions.
      ARC
      shall have performed and complied with all material agreements and conditions
      required by this Agreement to be performed or complied with by ARC prior to
      or
      on the Closing Date.

     

    8.3.  Absence
      of Material Adverse Changes.
      No
      material adverse change in the assets or financial condition, of ARC and its
      Company’s subsidiaries, taken as a whole, shall have occurred and no event shall
      have occurred which has had, or will have a material adverse effect on the
      assets or financial condition of ARC and its Company’s subsidiaries, taken as a
      whole.

     

    8.4.  Certificate
      of ARC.
      ARC
      shall have delivered to the Company Shareholder a certificate, executed by
      an
      executive officer and dated the Closing Date, certifying to the fulfillment
      and
      satisfaction of the conditions specified in Sections 8.1 through 8.3
      above.

     

    	9.          
             	
            INDEMNITY.

          

     

    9.1.  Indemnification
      by Company Shareholder.
      Subject
      to Section 9.5, the Company Shareholder (hereinafter, collectively, called
      the
“Shareholder
      Indemnitors”) shall
      jointly and severally defend, indemnify and hold harmless ARC and its direct
      and
      indirect Company’s subsidiaries (including the Company after
      Closing) and affiliates, their officers, directors, employees and agents
      (hereinafter, collectively, called “ARC
      Indemnitees”) against
      and in respect of any and all loss, damage, liability, fine, penalty, cost
      and
      expense, including reasonable attorneys’ fees and amounts paid in settlement
      (collectively, “ARC
      Losses”),
      suffered or incurred by any ARC Indemnitee by reason of, or arising out of:
      

     

    (a)  any
      misrepresentation, breach of warranty or breach or non-fulfillment of any
      agreement of the Company and/or the Company Shareholder contained in this
      Agreement or in any certificate, schedule, instrument or document delivered
      to
      ARC by or on behalf of the Company Shareholder or the Company pursuant to the
      provisions of this Agreement (without regard to materiality thresholds contained
      therein); and

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (b)  any
      liabilities of the Company of any nature whatsoever (including tax
      liability, penalties and interest), whether accrued, absolute, contingent or
      otherwise, (i) existing as of the date of the Balance Sheet, and required
      to be shown therein in accordance with applicable GAAP, to the extent not
      reflected or reserved against in full in the Balance Sheet; or (ii) arising
      or occurring between June 30, 2007 and the Closing Date, except for liabilities
      arising in the ordinary course of business, none of which shall have a material
      adverse effect on the Company.

     

    9.2.  Indemnification
      by ARC.
      Subject
      to Section 9.5, ARC (hereinafter called the “ARC
      Indemnitor”) shall
      jointly and severally defend, indemnify and hold harmless the Company
      Shareholder (hereinafter called “Shareholder
      Indemnitees”) against
      and in respect of any and all loss, damage, liability, fine, penalty, cost
      and
      expense, including reasonable attorneys’ fees and amounts paid in settlement
      (collectively, “Shareholder
      Losses”),
      suffered or incurred by any Shareholder Indemnitees by reason of, or arising
      out
      of:

     

    (a)  any
      misrepresentation, breach of warranty or breach or non-fulfillment of any
      material agreement of ARC contained in this Agreement or in any other
      certificate, schedule, instrument or document delivered to the Company
      Shareholder by or on behalf of ARC pursuant to the provisions of this Agreement
      (without regard to materiality thresholds contained therein); and

     

    (b)  any
      liabilities of the Company of any nature whatsoever (including tax
      liability, penalties and interest), whether accrued, absolute, contingent or
      otherwise, arising from ARC’s ownership or operation of the Company after
      Closing, but only so long as such liability is not the result of an act or
      omission of the Company or the Company Shareholder occurring prior to the
      Closing. ARC Losses and Shareholder Losses are sometimes collectively referred
      to as “Indemnifiable
      Losses.”

     

    (c)  indemnify
      and hold harmless, the Company Shareholder from any and all loss, damage,
      liability, fine, penalty, cost and expense, including reasonable attorneys’ fees
      and amounts paid in settlement (collectively, “Shareholder
      Losses”),
      in
      connection with ARC’s failure to follow all rules, regulations and statutes,
      Federal or State, including all Securities and Exchange Commission and NRS
      rules
      and regulations in connection with this Share Exchange Agreement.

     

    9.3.  Defense
      of Claims.

     

    (a)  Each
      party seeking indemnification hereunder (an “Indemnitee”):
      (i) shall provide the other party or parties (the “Indemnitor”) written
      notice of any claim or action by a third party arising after the Closing Date
      for which an Indemnitor may be liable under the terms of this Agreement, within
      ten (10) days after such claim or action arises and is known to Indemnitee,
      and (ii) shall give the Indemnitor a reasonable opportunity to participate
      in any proceedings and to settle or defend any such claim or action. The
      expenses of all proceedings, contests or lawsuits with respect to such claims
      or
      actions shall be borne by the Indemnitor. If the Indemnitor wishes to assume
      the
      defense of such claim or action, the Indemnitor shall give written notice to
      the
      Indemnitee within ten (10) days after notice from the Indemnitee of such
      claim or action, and the Indemnitor shall thereafter assume the defense of
      any
      such claim or liability, through counsel reasonably satisfactory to the
      Indemnitee, provided that Indemnitee may participate in such defense at their
      own expense, and the Indemnitor shall, in any event, have the right to control
      the defense of the claim or action.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (b)  If
      the
      Indemnitor shall not assume the defense of, or if after so assuming it shall
      fail to defend, any such claim or action, the Indemnitee may defend against
      any
      such claim or action in such manner as they may deem appropriate and the
      Indemnitees may settle such claim or litigation on such terms as they may deem
      appropriate but subject to the Indemnitor’s approval, such approval not to be
      unreasonably withheld; provided, however, that any such settlement shall be
      deemed approved by the Indemnitor if the Indemnitor fails to object thereto,
      by
      written notice to the Indemnitee, within fifteen (15) days after the
      Indemnitor’s receipt of a written summary of such settlement. The Indemnitor
      shall promptly reimburse the Indemnitee for the amount of all expenses, legal
      and otherwise, incurred by the Indemnitee in connection with the defense and
      settlement of such claim or action.

     

    (c)  If
      a
      non-appealable judgment is rendered against any Indemnitee in any action covered
      by the indemnification hereunder, or any lien attaches to any of the assets
      of
      any of the Indemnitee, the Indemnitor shall immediately upon such entry or
      attachment pay such judgment in full or discharge such lien unless, at the
      expense and direction of the Indemnitor, an appeal is taken under which the
      execution of the judgment or satisfaction of the lien is stayed. If and when
      a
      final judgment is rendered in any such action, the Indemnitor shall forthwith
      pay such judgment or discharge such lien before any Indemnitee is compelled
      to
      do so.

     

    9.4.  Waiver.
      The
      failure of any Indemnitee to give any notice or to take any action hereunder
      shall not be deemed a waiver of any of the rights of such Indemnitee hereunder,
      except to the extent that Indemnitor is actually prejudiced by such
      failure.

     

    9.5.  Limitations
      on Indemnification.
      Notwithstanding anything to the contrary contained in this
      Agreement:

     

    9.5.1.  Time
      Limitation.
      No
      party shall be responsible hereunder for any Indemnifiable Loss unless the
      Indemnitee shall have provided such party with written notice containing a
      reasonable description of the claim, action or circumstances giving rise to
      such
      Indemnifiable Loss within three (3) years after the Closing Date (the
“Indemnity
      Notice Period”);
      provided, however, that:

     

    (a)  with
      respect to any Indemnifiable Loss resulting or arising from any breach of a
      representation or warranty of the Company Shareholder relating to taxes, or
      any
      tax liability of the Company arising or relating to periods prior to the Closing
      Date, the Indemnity Notice Period shall extend for the full duration of the
      statute of limitations; and

     

    (b)  there
      shall be no limit on the Indemnity Notice Period for indemnity claims:
      (i) against the Company Shareholder for Indemnifiable Losses arising or
      resulting from a breach of a representation or warranty relating to
      Environmental Laws, or any liability which relates to the handling or disposal
      of Wastes or the failure to comply with any Environmental Law; and
      (ii) against any party based on fraud or intentional breach or
      misrepresentation.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

     

    9.5.2.  Caps
      on Losses.
      The
      aggregate liability of the Company Shareholder after the Closing for ARC Losses
      shall not exceed an amount equal to ___ Dollars (US $______), which represents
      the value of the Exchange Consideration paid to the Company Shareholder as
      of
      the Closing Date. The aggregate liability of ARC after the Closing for
      Shareholder Losses shall not exceed ____ Dollars (US $___), which represents
      the
      value of the Exchange Consideration paid to the Company Shareholder as of the
      Closing Date.

     

    9.5.3.  Basket.
      No
      party shall have any liability hereunder for Indemnifiable Losses after the
      Closing, with respect to a breach of the representations and warranties
      contained herein, until the aggregate of all Indemnifiable Losses for which
      the
      Shareholder or ARC as applicable, are responsible under this Agreement exceeds
      Ten Thousand ($10,000) Dollars (the “Basket”);
      provided that once such Basket is exceeded for the Company Shareholder or ARC
      as
      applicable, the responsible party or parties shall be responsible for all
      Indemnifiable Losses, from the first dollar as if such Basket never existed;
      and
      further provided that this Section 9.5.3 shall not limit in any respect
      indemnity claims: (a) based upon fraud or intentional breach or intentional
      misrepresentation; (b) arising from a breach by the ARC Indemnitor of any
      covenant contained in this Agreement; (c) arising from a breach by the
      Company Shareholder of any representation or warranty contained in
      Section 3.2 hereof; or (d) related to any tax or tax liability of the
      Company for periods prior to the Closing Date.

     

    	10.       
              	
            TERMINATION.

          

     

    10.1.  Termination.
      This
      Agreement may be terminated at any time on or prior to the Closing:

     

    (a)  By
      mutual
      consent of ARC and the Company Shareholder; or

     

    (b)  At
      the
      election of ARC if: (i) the Company Shareholder have breached or failed to
      perform or comply with any of his representations, warranties, covenants or
      obligations under this Agreement; or (ii) any of the conditions precedent
      set forth in Section 6 or 7 is not satisfied as and when required by
      this Agreement; or (iii) the Closing has not been consummated
      by.

     

    (c)  At
      the
      election of the Company Shareholder if: (i) ARC has breached or failed to
      perform or comply with any of its representations, warranties, covenants or
      obligations under this Agreement; or (ii) any of the conditions precedent
      set forth in Section 6 or 8 is not satisfied as and when required by this
      Agreement; or (iii) the Closing has not been consummated by.

     

    10.2.  Manner
      and Effect of Termination.
      Written
      notice of any termination (“Termination
      Notice”) pursuant
      to this Section 10 shall be given by the party electing termination of this
      Agreement (“Terminating
      Party”) to
      the other party or parties (collectively, the “Terminated
      Party”),
      and
      such notice shall state the reason for termination. The party or parties
      receiving Termination Notice shall have a period of ten (10) days
      after receipt of Termination Notice to cure the matters giving rise to such
      termination to the reasonable satisfaction of the Terminating Party. If the
      matters giving rise to termination are not cured as required hereby, this
      Agreement shall be terminated effective as of the close of business on the
      tenth
      (10th) day following the Terminated Party’s receipt of Termination Notice.
      Upon termination of this Agreement prior to the consummation of the Closing
      and
      in accordance with the terms hereof, this Agreement shall become void and of
      no
      effect, and none of the parties shall have any liability to the others, except
      that nothing contained herein shall relieve any party from: (a) its
      obligations under Sections 2.2 and 2.3; or (b) liability for its
      intentional breach of any representation, warranty or covenant contained herein,
      or its intentional failure to comply with the terms and conditions of this
      Agreement or to perform its obligations hereunder.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    	11.        
             	
            MISCELLANEOUS.

          

     

    11.1.  Notices.
      

     

    (a)  All
      notices, requests, demands, or other communications required or permitted
      hereunder shall be in writing and shall be deemed to have been duly given upon
      receipt if delivered in person, or upon the expiration of four (4) days
      after the date sent, if sent by federal express (or similar overnight courier
      service) to the parties at the following addresses:

     

    
      	 	
              (i)            
                If
                to ARC:

            	
              American
                Racing Capital, Inc.

            
	 	 	
              PO
                Box 22002

            
	 	 	
              San
                Diego, CA 92192

            
	 	 	
              Attn:
                A. Robert Koveleski

            
	 	 	
              Telephone:
                (800) 230-7132

            
	 	 	
              Facsimile:
                (858) 750-7482

            
	 	 	 
	 	
              with
                a copy to:

            	
              Kirkpatrick
                & Lockhart Preston Gates Ellis, LLP

            
	 	 	
              201
                South Biscayne Blvd.

            
	 	 	
              Suite
                2000, Miami Center

            
	 	 	
              Miami,
                Florida 33131

            
	 	 	
              Attn: Clayton
                E. Parker, Esq.

            
	 	 	
              Telephone:
                (305) 539-3300

            
	 	 	
              Facsimile:
                (305) 358-7095

            
	 	 	 
	 	
              (ii)           
                If
                to the Company:

            	
              Millennium
                Motorsports of Pennsylvania

            
	 	 	
              Attn.
                Joseph Mattioli, III

            
	 	
              with
                a copy to:

            	
              Schulman,Treem,Kaminkow,Gliden&Ravenell

            
	 	 	
              401
                East Pratt Street

            
	 	 	
              Suite
                1800, 

            
	 	 	
              Baltimore,
                MD 21202

            
	 	 	
              Telephone:
                (410) 332-0850

            
	 	 	
              Facsimile:
                (410)-332-0866

            
	 	 	 
	 	
              (iii)          If
                to Company 

            	
              Exhibit
                A
                attached hereto.

            
	 	
              Shareholder:

            	 
	 	 	 

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    (b)  Notices
      may also be given in any other manner permitted by law, effective upon actual
      receipt. Any party may change the address to which notices, requests, demands
      or
      other communications to such party shall be delivered or mailed by giving notice
      thereof to the other parties hereto in the manner provided herein.

     

    11.2.  Survival.
      Except
      as provided in the next sentence, the representations, warranties, agreements
      and indemnifications of the parties contained in this Agreement or in any
      writing delivered pursuant to the provisions of this Agreement shall survive
      any
      investigation heretofore or hereafter made by the parties and the consummation
      of the transactions contemplated herein and shall continue in full force and
      effect after the Closing, subject to the limitations of Section 9.5. The
      representations, warranties and agreements of the Company contained in this
      Agreement shall not survive the Closing.

     

    11.3.  Counterparts;
      Interpretation.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, and all of which shall constitute one and the same
      instrument. This Agreement supersedes all prior discussions and agreements
      between the parties with respect to the subject matter hereof, and this
      Agreement contains the sole and entire agreement among the parties with respect
      to the matters covered hereby. All Schedules hereto shall be deemed a part
      of
      this Agreement. This Agreement shall not be altered or amended except by an
      instrument in writing signed by or on behalf of all of the parties hereto.
      No
      ambiguity in any provision hereof shall be construed against a party by reason
      of the fact it was drafted by such party or its counsel. For purposes of this
      Agreement: “herein”, “hereby”, “hereunder”, “herewith”, “hereafter” and
“hereinafter” refer to this Agreement in its entirety, and not to any particular
      section or paragraph. References to “including”
means
      including without limiting the generality of any description preceding such
      term. Nothing expressed or implied in this Agreement is intended, or shall
      be
      construed, to confer upon or give any person other than the parties hereto
      any
      rights or remedies under or by reason of this Agreement.

     

    11.4.  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Nevada. The parties hereto agree that any claim, suit, action or
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby shall be submitted for adjudication exclusively in any
      state
      or federal court sitting in San Diego County, California, and each party hereto
      expressly agrees to be bound by such selection of jurisdiction and venue for
      purposes of such adjudication. Each party (a) waives any objection which it
      may
      have that such court is not a convenient forum for any such adjudication, (b)
      agrees and consents to the personal jurisdiction of such court with respect
      to
      any claim or dispute arising out of or relating to this Agreement or the
      transactions contemplated hereby and (c) agrees that process issued out of
      such
      court or in accordance with the rules of practice of such court shall be
      properly served if served personally or served by certified mail or other form
      of substituted service, as provided under the rules of practice of such
      court.

     

    11.5.  Successors
      and Assigns; Assignment.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective heirs, executors, legal representatives, and
      successors; provided, however, that no Shareholder may assign this Agreement
      or
      any rights hereunder, in whole or in part.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    11.6.  Partial
      Invalidity and Severability.
      All
      rights and restrictions contained herein may be exercised and shall be
      applicable and binding only to the extent that they do not violate any
      applicable laws and are intended to be limited to the extent necessary to render
      this Agreement legal, valid and enforceable. If any terms of this Agreement
      not
      essential to the commercial purpose of this Agreement shall be held to be
      illegal, invalid or unenforceable by a court of competent jurisdiction, it
      is
      the intention of the parties that the remaining terms hereof shall constitute
      their agreement with respect to the subject matter hereof and all such remaining
      terms shall remain in full force and effect. To the extent legally permissible,
      any illegal, invalid or unenforceable provision of this Agreement shall be
      replaced by a valid provision which will implement the commercial purpose of
      the
      illegal, invalid or unenforceable provision.

     

    11.7.  Waiver.
      Any
      term or condition of this Agreement may be waived at any time by the party
      which
      is entitled to the benefit thereof, but only if such waiver is evidenced by
      a
      writing signed by such party. No failure on the part of a party hereto to
      exercise, and no delay in exercising, any right, power or remedy created
      hereunder, shall operate as a waiver thereof, nor shall any single or partial
      exercise of any right, power or remedy by any such party preclude any other
      future exercise thereof or the exercise of any other right, power or remedy.
      No
      waiver by any party hereto to any breach of or default in any term or condition
      of this Agreement shall constitute a waiver of or assent to any succeeding
      breach of or default in the same or any other term or condition
      hereof.

     

    11.8.  Headings.
      The
      headings as to contents of particular paragraphs of this Agreement are inserted
      for convenience only and shall not be construed as a part of this Agreement
      or
      as a limitation on the scope of any terms or provisions of this
      Agreement.

     

    11.9.  Expenses.
      Except
      as otherwise expressly provided herein, all legal and other costs and expenses
      incurred in connection with this Agreement and the transactions contemplated
      hereby shall be paid by ARC or the Company Shareholder as each party incurs
      such
      expenses, and none of such expenses shall be charged to or paid by the
      Company.

     

    11.10.  Finder’s
      Fees.
      ARC
      represents to the Company Shareholder that no broker, agent, finder or other
      party has been retained by it in connection with the transactions contemplated
      hereby and that no other fee or commission has been agreed by the ARC to be
      paid
      for or on account of the transactions contemplated hereby. The Company
      Shareholder represent to ARC that no broker, agent, finder or other party has
      been retained by Shareholder or the Company in connection with the transactions
      contemplated hereby and that no other fee or commission has been agreed by
      the
      Company Shareholder or the Company to be paid for or on account of the
      transactions contemplated hereby.

     

    11.11.  Gender.
      Where
      the context requires, the use of the singular form herein shall include the
      plural, the use of the plural shall include the singular, and the use of any
      gender shall include any and all genders.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    11.12.  Acceptance
      by Fax.
      This
      Agreement shall be accepted, effective and binding, for all purposes, when
      the
      parties shall have signed and transmitted to each other, by telecopier or
      otherwise, copies of the signature pages hereto.

     

    11.13.  Attorneys
      Fees.
      In the
      event of any litigation arising under the terms of this Agreement, the
      prevailing party or parties shall be entitled to recover its or their reasonable
      attorneys fees and court costs from the other party or parties.

     

    11.14.  Opportunity
      to Hire counsel; Role of K&L Gates llp.
      The
      Company Shareholder and the Company acknowledge that they have been advised
      and
      have been given an opportunity to hire counsel with respect to this Agreement
      and the transactions contemplated hereby. The Company Shareholder and the
      Company further acknowledge that the law firm of Kirkpatrick & Lockhart
      Preston Gates Ellis LLP, did not provide them any legal advice, including any
      tax advice with respect to the transactions contemplated by this Agreement.
      The
      Company Shareholder further acknowledge that the law firm of Kirkpatrick &
Lockhart Preston Gates Ellis LLP, has solely represented ARC in connection
      with
      this Agreement and the transactions contemplated hereby and no other
      person.

     

    11.15.  Time
      is of the Essence.
      It is
      understood and agreed among the parties hereto that time is of the essence
      in
      this Agreement and this applies to all terms and conditions contained
      herein.

     

    11.16.  NO
      JURY TRIAL.
      THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY DOCUMENT
      CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT,
      COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
      PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF
      THIS AGREEMENT.

     

    [REMAINDER
      OF THE PAGE INTENTIONALLY LEFT BLANK]

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement to be duly executed by their duly
      authorized officers as of the day and year first above written.

     

    
      	 	AMERICAN
              RACING CAPITAL, INC., 
	 	a
              Nevada corporation 
	 	 	 
	 	By:	
               /s/
                A. Robert Koveleski  

            
	 	Name:	
               A.
                Robert Koveleski 

            
	 	Title: 	
              President
                & Chief Executive Officer 

            
	 	 	 
	 	 	 
	 	COMPANY
              SHAREHOLDER:
	 	 	 
	 	By:	
               /s/
                Joseph Mattioli, III  

            
	 	Name: 	
              Joseph
                Mattioli, III

            
	 	 	 
	 	 	 
	 	THE
              COMPANY:
	 	 	 
	 	MILLENIUM
              MOTORSPORTS OF PENNSYLVANIA,
              a
              Pennsylvania ______
	 	 	 
	 	 	 
	 	By:	
               /s/
                Joseph Mattioli, III   

            
	 	Name:	
               Joseph
                Mattioli, III

            
	 	Title:	
               President

            
	 	 	 

    

    

    
      
         

      

      
        21CONSULTING
      AGREEMENT

     

    This
      Consulting Agreement (the “Agreement”)
      is
      entered into and made effective as of August 20, 2007 (the “Effective
      Date”)
      by and
      between American Racing Capital, Inc., a Nevada corporation (the “Company”),
      and
      Joseph Mattioli, III (“Consultant”). 

     

    RECITALS

     

    WHEREAS,
      the Company desires to employ and retain the Consultant for the term specified
      herein in order to advance the business interests of the Company on the terms
      and conditions set forth herein; and

     

    WHEREAS,
      the Consultant desires to provide his services to the Company on and subject
      to
      the terms and conditions hereof including, but not limited to, the Company
      using
      its best efforts in hiring, within ninety (90) days of execution of this
      Agreement, an experienced Chief Executive Officer and Chief Financial Officer
      capable of handling all financial and reporting aspects related to the operation
      of a public company; and

     

    WHEREAS,
      the Company desires to provide the Consultant, or his assigns, with the
      opportunity to obtain stock in the Company in order that the Consultant may
      have
      the opportunity to participate in the growth and performance of the Company,
      as
      set forth herein; and

     

    NOW,
      THEREFORE, the parties hereto, intending to be legally bound, agree as
      follows:

     

    1.  Adoption
      of Recitals

     

    .
      The
      Company and Consultant hereto adopt the above recitals as being true and
      correct. 

     

    2.  Consulting.
      

     

    (a)  Subject
      to the terms and conditions set forth herein, the Company hereby employs
      Consultant, and Consultant hereby agrees to serve the Company for a three-year
      period from the Effective Date of this Agreement (“Consulting
      Period”).
      

     

    3.  Duties
      and Responsibilities.
      

     

    (a)  During
      the Consulting Period, the Consultant will assist the Company with the Company’s
      business development, including identification and investigation of business
      opportunities, assisting the Company in acquisitions and assisting the Company
      in general supervisory management of those acquisitions. Consultant shall have
      absolutely no responsibility or involvement in connection with any of the
      financial and reporting aspects relating to the operation of a public company.
      During the Consulting Period, Consultant shall perform and discharge faithfully,
      diligently, in good faith and to the best of Consultant’s ability such duties
      and responsibilities. The Consultant agrees to devote as much of its time as
      is
      reasonably necessary to accomplish its duties and obligations under this
      Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Other
      Activities.
      The
      Company recognizes that the position is not that of a full time Consultant,
      but
      that Consultant shall devote as much time to the job that the Consultant
      believes is necessary to perform its duties under this agreement. The
      Consultant, during the Consulting Period, may engage in other activities for
      compensation outside this Consulting Agreement with the Company, as long as
      those activities do not materially interfere with or detract from the
      performance of Consultant’s duties or constitute a breach of any of the
      provisions contained in this Agreement. Those activities will include but shall
      not be limited to serving in a consulting role to any other affiliate or
      subsidiary of the Company. Consultant is not prohibited from entering into
      any
      and all agreements, deals, arrangements or relationships with any Pocono Raceway
      opportunities, whether competitive to the Company or otherwise. The Company
      has
      agreed to employ Consultant, conditioned upon the knowledge that Consultant
      already competes with Company in the motor racing business and Company waives
      it
      right to object to any such competitive relationship, or any issue with respect
      to the usurpation of corporate opportunity. 

     

    4.  Compensation.
      

     

    (b)  Base
      Fee.
      During
      the Consulting Period, the Company shall pay to Consultant an annual base fee
      (“Base
      Fee”)
      of
      Three Hundred Thousand Dollars ($300,000. 00) payable on a bi-weekly basis
      or
      otherwise in accordance with the Company’s customary practices, throughout the
      term of such Consulting Period subject to the provisions of Section 6 hereof
      (governing Terminations), and subject to any applicable tax and payroll
      deductions. The Base Fee shall increase by five percent (5%) (the “Annual
      Fee Increase”)
      on the
      anniversary date of the Effective Date on the same date each year during the
      Consulting Period. The Board shall review the Annual Fee Increase and shall
      have
      the authority to modify the terms of the Annual Fee Increase. Any such
      modifications in the Annual Fee Increase shall be communicated to the Consultant
      thirty (30) days prior to the date when the Annual Fee Increase would be
      effectuated. 

     

    (c)  Bonus.
      In
      addition to the Fee, Consultant shall be entitled to such bonuses and benefits
      as may be determined by the Board. Any bonus granted pursuant to Section 4(b)
      shall be paid within forty-five (45) days after the end of the fiscal year
      for
      which such bonus is earned. 

     

    5.  Share
      Exchange Agreement

     

    .
      Consultant, or its assigns, shall be entitled to Capital Stock of the Company
      as
      set forth in the Share Exchange Agreement attached hereto and herein
      incorporated by reference. As a condition to entering into this Agreement,
      the
      Company and Millennium Motorsports of Pennsylvania, a Pennsylvania company,
      shall enter into a Share Exchange Agreement as of the date hereof (the
“Share
      Exchange Agreement”).
      

     

    

    6.  Benefits.
      

     

    (a)  Other
      Benefits.
      During
      the Consulting Period, Consultant shall be entitled to apply to participate
      in
      any and all benefit plans, programs or arrangements (collectively the
“Plans”),
      implemented by the Company and available to Consultants of the Company
      Consultant’s participation in such plans shall be governed by the terms of the
      respective plans. 

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    (b)  Fringe
      benefits.
      

     

    (i)  During
      the Consulting Period, the Company shall pay for directly or reimburse
      Consultant for all reasonable, customary and necessary business-related expenses
      incurred by Consultant in connection with the duties of Consultant hereunder,
      in
      accordance with the applicable Company policy, as may be revised from time
      to
      time, and upon submission by Consultant to the Company of such written evidence
      of such expense as the Company may require. 

     

    (ii)  The
      Consultant shall be entitled to vacation, sick and personal leave as determined
      by the Board and the Consultant. 

     

    (iii)  Nothing
      paid to Consultant under any Company Plan, bonuses, or fringe benefit
      arrangements shall be deemed to be in lieu of Base Fee payable to Consultant
      hereunder. 

     

    7.  Restrictive
      Covenants.
      

     

    (a)  Non
      Disclosure of Confidential Information.
      

     

    (i)  Except
      with respect to the terms set forth in 3(b) above, during and at all times
      after
      the Consulting Period, the Consultant shall not, directly or indirectly, without
      the prior written consent of the Board, or a person duly authorized thereby,
      other than a person to whom disclosure is reasonably necessary or appropriate
      in
      connection with the performance by Consultant of the duties of Consultant as
      an
      Consultant of the Company, access, maintain, keep, disclose or use for the
      benefit of himself or herself or any other person, corporation, partnership,
      joint venture, association, or other business organization, any of the trade
      secrets or Confidential Information of the Company. If Consultant is legally
      required to disclose any Confidential Information, Consultant will notify
      Company prior to doing so by providing Company with written notice ten (10)
      days
      in advance of the intended or compelled disclosure. Notice shall be provided
      as
      defined in Section 7 below. For the purposes of its Agreement, “Confidential
      Information” shall mean all information, whether written or oral, tangible or
      intangible, of a private, secret, proprietary or confidential nature, of or
      concerning the Company or any of its subsidiaries. 

     

    (b)  Need
      for Restrictions.
      The
      Consultant acknowledges and agrees that the restrictive covenant contained
      in
      this Section 7 is reasonable and necessary to protect the legitimate business
      interests of the Company, including, without limitation, the need to protect
      the
      Company’s trade secrets and the Confidential Information. 

     

    (c)  Breach
      of Restrictive Covenants.
      In the
      event of a breach by the Consultant of the restrictive covenant set forth in
      Section 7, the Consultant agrees that such a breach would cause irreparable
      injury to the Company, and that if the Company shall bring legal proceedings
      against the Consultant to enforce any restrictive covenant, the Company shall
      be
      entitled to seek all available civil remedies, at law or in equity, including,
      without limitation, an injunction, damages, attorneys’ fees, and costs.
      Consultant agrees that given the significance of the Company’s Confidential
      Information, Consultant, as a material part of its Agreement, acknowledges
      and
      agrees that he will not oppose the Company’s request to post only the minimum
      bond required by law in the event the relief sought by the Company requires
      that
      the Company post a bond. Consultant specifically agrees that he or she will
      not
      make any argument or seek any order from the court requiring the posting of
      a
      bond greater than the minimum imposed by any applicable statute. 

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

    (d)  Construction,
      Survival.
      If the
      period of time or scope of any restrictions specified in Section 7 should be
      adjudged unreasonable, void, or unenforceable in any proceeding, then the period
      of time or scope shall be reduced or altered so that the restrictions may be
      enforced as is adjudged to be reasonable and consistent with public policy
      and
      law. All the provisions of Section 7 shall survive the Consulting Period.

     

    (e)  Successors
      and Assigns.
      The
      restrictive covenant may be enforced by the Company and its successors and
      assigns. 

     

    (f)  Other
      Knowledge.
      Notwithstanding anything to the contrary stated herein, it is understood by
      the
      Company that Consultant has substantial experience in the operation and
      management of motor sports businesses and venues. All of that knowledge and
      experience and use thereof at anytime does not constitute Confidential
      Information and can be used by Consultant for any and all purposes deemed
      appropriate by Consultant for any and all purposes and will not constitute
      a
      violation of this Agreement. 

     

    8.  Termination.
      

     

    (a)  Termination
      upon Death.
      Consultant’s consulting hereunder shall terminate upon the death of Consultant;
      provided, however, that for purposes of its Agreement the Date of Termination
      based upon the death of Consultant shall de deemed to have occurred on the
      last
      day of the month in which the death of the Consultant shall have occurred.
      

     

    (b)  Termination
      upon Incapacity.
      If the
      Consultant is unable to perform the essential functions of its position, with
      or
      without reasonable accommodation, for a period in excess of twelve (12) weeks
      during the previous twelve (12) months, due to a physical or mental illness,
      disability or condition, the Company may terminate Consultant’s Consulting
      hereunder at the end of any calendar month by giving written Notice of
      Termination to Consultant. Any questions as to the existence, extent or
      potentiality of illness or incapacity of Consultant upon which the Company
      and
      Consultant cannot agree shall be determined by a qualified independent physician
      selected and paid for by the Company who is acceptable to Consultant or its
      personal representative, as the case may be. The determination of such physician
      certified in writing to the Company and to Consultant shall be final and
      conclusive for all purposes of its Agreement. Section 8 (b) is intended to
      be
      interpreted and applied consistent with the Americans with Disabilities Act
      and
      Sections 503 and 504 of the Rehabilitation Act of 1973; the Family and Medical
      Leave Act of 1993; the California Fair Housing and Consulting Act; and any
      state
      or local ordinance prohibiting discrimination, harassment and/or retaliation
      on
      the basis of a disability. 

     

    (c)  Termination
      for Cause.
      The
      Company may terminate Consultant’s Consulting hereunder for Cause by giving
      written Notice of Termination to Consultant (as defined below in Section 8
      (f)
      hereof. The Date of Termination shall be specified in the Notice of Termination
      and may be immediate. For the purpose of its Agreement, the Company shall have
      “Cause” to terminate Consultant’s Consulting hereunder if Consultant is
      convicted of a felony under federal or state law involving moral turpitude
      or
      that Consultant’s actions or omissions constitute fraud, or gross misconduct
      that have a material adverse effect on the Company. 

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    (d)  Termination
      by the Consultant for Good Reason.
      Consultant may terminate its Agreement for Good Reason. For purposes of its
      Agreement ‘Good Reason’ shall mean (i) a material breach by the Company or its
      affiliate of its obligations under this Agreement, or the Share Exchange
      Agreement, or (ii) any material change in the assignment of duties or
      responsibilities to Consultant by the Board which are inconsistent in a material
      and adverse respect with Consultant’s position causing it to be of materially
      less stature or responsibility. Any such breach by the Company, if curable,
      may
      be cured within ten (10) days after notice thereof to the Company. 

     

    (e)  Termination
      by the Consultant.
      Consultant may terminate its Agreement by delivering written notice to the
      Company. The Consultant shall provide ninety (90) calendar days written notice
      to the Company. The Date of Termination shall be specified in the Notice of
      Termination; provided however, that the Date of Termination shall not be earlier
      than ninety (90) calendar days after delivery of the Notice of Termination.
      

     

    (f)  Notice
      of Termination.
      Notice
      of Termination to effectuate a termination under Section 6 shall be made in
      accordance with Notice defined in Section 8. For purposes of its Agreement,
      a
“Notice of Termination” shall mean a notice, in writing, which shall indicate
      the specific termination provision of its Agreement relied upon as the basis
      for
      the Termination and the Date of Termination. The Date of Termination shall
      not
      be earlier than the date such Notice of Termination is delivered (as defined
      above); provided however, that the Company, at its option, may elect to have
      the
      Consultant not report to work after the date of the written notice.

     

    (g)  Date
      of Termination.
“Date
      of Termination” means the date on which its Agreement shall terminate (except
      for those provisions which survive termination as specified in its Agreement)
      in
      accordance with the provisions of its Section 8. 

     

    (h)  Obligation
      to Pay.
      

     

    (i)  For
      Terminations under Subsection 8(a), the estate of Consultant shall be paid
      all
      sums otherwise payable to Consultant, including without limitation all pro-rated
      Base Fee, Bonuses or other benefits accrued or accruable to Consultant through
      the end of the month in which the death of Consultant occurred. The Bonuses
      will
      be pro-rated to the Date of Termination and will be pro-rated after receipt
      of
      year-end results. 

     

    (ii)  For
      Terminations under Subsection 8(b), the Consultant or the person charged with
      legal responsibility for the Consultant’s estate shall be paid all sums
      otherwise payable to the Consultant, including the pro-rated Base Fee, Bonuses
      and other benefits accrued or accruable to the Consultant through the Date
      of
      Termination, and the Company shall have no further obligation to the Consultant
      under its Agreement. The Bonuses will be pro-rated to the Date of Termination
      and will be pro-rated after receipt of year-end results to the extent any
      additional sums would be owed after receipt of year end results. 

     

    
      
        
          
          

        

        
          -
            5 -

          
            

          

        

        
          
          

        

      

    

     

    (iii)  For
      Terminations for Cause under Subsection 8(c), the Company shall pay the
      Consultant its Base Fee and benefits accrued through the Date of Termination.
      The Consultant shall receive pro-rated Bonuses and benefits through the Date
      of
      Termination and will not be entitled to receive any other Bonuses or benefits
      not earned or accrued as of the Date of Termination. The Bonuses will be
      pro-rated to the Date of Termination and will be pro-rated after receipt of
      year-end results. The Company shall have no further obligation to the Consultant
      under its Agreement. 

     

    (iv)  For
      Terminations for Good Reason under Subsection 8(d), the Consultant shall be
      entitled to the lesser of (i) the Base Fee for the remainder of the Consulting
      Period, as well as medical and dental benefits included in section 4(d) of
      its
      Agreement provided that such benefits are in place at the time of termination),
      without regard to the Date of Termination set forth in the Notice of Termination
      or (ii) the Base Fee for two (2) years, in one lump sum. The Consultant shall
      receive pro-rated Bonuses and benefits through the Date of Termination and
      will
      not be entitled to receive any other Bonuses or benefits not earned or accrued
      as of the Date of Termination. The Bonuses will be pro-rated to the Date of
      Termination and will be pro-rated after receipt of year-end results.

     

    (v)  For
      Terminations by the Consultant under Subsection 8(e), the Company shall pay
      the
      Consultant its Base Fee and benefits accrued through the Date of Termination.
      The Consultant shall receive pro-rated Bonuses and benefits through the Date
      of
      Termination and will not be entitled to receive any other Bonuses or benefits
      not earned or accrued as of the Date of Termination. The Bonuses will be
      pro-rated to the Date of Termination and will be pro-rated after receipt of
      year-end results. The Company shall have no further obligation to the Consultant
      under its Agreement. 

     

    9.  Notice

     

    .
      For the
      purpose of its Agreement, notices and all other communications to either party
      hereunder provided for in the Agreement shall be in writing and shall be deemed
      to have been duly given when delivered in person or three (3) business days
      after being mailed by certified mail, return receipt requested, postage prepaid,
      two (2) business days after being provided to a courier for next business day
      delivery, or 24 hours after being sent by telecopy: 

     

    
      	
              in
                the case of the Company to:

            	
              American
                Racing Capital

              P.O.
                Box 22002

              San
                Diego, CA 92192 

              Attention:
                Bob Koveleski

              Telephone:
                (800)230-7132

               

            
	
              in
                the case of Consultant to:

            	
              Joesph
                Mattioli, III

              PO
                Box 378 

              Long
                Pond, PA 18334 

              Telephone:
                (570) 646-0898

               

            
	
              With
                a copy (not constituting notice) to:

            	
              Robert
                B. Schulman

              Suite
                1800 - 18th
                Floor

              401
                E. Pratt Street

              Baltimore,
                MD 21202

              Telephone:
                (410)332-0866

            

    

    

    or
      to
      such other address as either party shall designate by giving written notice
      of
      such change to the other party. 

     

    
      
        
          
          

        

        
          -
            6 -

          
            

          

        

        
          
          

        

      

    

     

    10.  
      Liability Insurance

     

    .
      To
      protect the Consultant from any liability, loss, claims, damages, or costs,
      including legal fees and costs, the Company shall purchase and maintain
      liability insurance (the “Insurance”) in an amount not less than One Million
      Dollars ($1,000,000), or in such amount as is later agreed upon by the
      Consultant and the Company and which shall include a duty to defend clause.
      The
      policy shall name the Consultant by name or title as an additional insured
      in
      each (and all) policy of Insurance. 

     

    11.  Indemnification

     

    .
      The
      Company shall hereby
      absolutely and unconditionally, indemnify, hold harmless, remise, release,
      acquit and forever discharge Consultant and its agents, servants, attorneys,
      heirs, successors, officers, directors, shareholders, employees, former
      employees, executors, administrators, assigns and representatives, of and from
      any and all claims, demands, damages, losses, actions, causes of action, suits
      at law or in equity, of whatsoever kind or nature, for or because of any matter
      or thing which was done, omitted or suffered to be done in connection with
      the
      work undertaken pursuant to this Consulting Agreement. 

     

    12.  Hiring
      of CEO and CFO.
      The
      Company hereby agrees that it shall use its best efforts to hire an experienced
      Chief Executive Officer and Chief Financial Officer within ninety (90) days
      hereof. 

     

    13.  Right
      to
      Review and Seek Counsel

     

    .
      The
      Consultant hereby acknowledges that he has actively engaged in the discussion
      and negotiation of its Agreement and its terms and has had full and fair
      opportunity to discuss and review the Agreement and its terms with any legal
      or
      other advisor of its choice and has either done so, or voluntarily declined
      to
      do so. Consultant further agrees that its Agreement has been fully negotiated
      by
      parties acting at arms’ length with full opportunity to negotiate terms such
      that its Agreement and all of its terms shall be deemed to have been drafted
      mutually by both parties. 

     

    14.  Waiver

     

    .
      The
      waiver by the Company of a breach or threatened breach of its Agreement by
      the
      Consultant shall not be construed as a waiver of any subsequent breach by the
      Consultant. Inaction or silence by the Company shall not be deemed a waiver.
      No
      waiver of any breach is effective unless expressly stated in writing and signed
      by a duly authorized member of the Board or its authorized designee.

     

    15.  Entire
      Agreement/Amendments

     

    .
      No
      provision of its Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is approved by the Board and agreed to in
      writing signed by Consultant and such officer as may be specifically authorized
      by the Board. Its Agreement contains the entire understanding of the parties
      hereto and no agreements or representations, oral or otherwise, express or
      implied, with respect to the subject matter hereof have been made by either
      party, which are not set forth expressly in its Agreement. Its Agreement
      supersedes all negotiations, preliminary agreements, and all prior and
      contemporaneous discussions and understandings of the parties hereto and/or
      their affiliates. The Consultant acknowledges that he has not relied on any
      prior or contemporaneous discussions or understandings in entering into its
      Agreement. 

     

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

     

    16.  Governing
      Law

     

    .
      Its
      Agreement shall be governed and construed in accordance with the laws of the
      State of Nevada without regard to conflicts of law. 

     

    17.  Consent
      to Personal Jurisdiction and Venue

     

    .
      Each
      party hereby consents to personal jurisdiction and exclusive venue of the
      Federal and State courts located in Maryland and waive any objections to such
      courts based on venue in connection with any claim or dispute arising under
      its
      Agreement. For purposes of its Section, the term “Consultant” includes any
      business entity owned or controlled by the Consultant. 

     

    18.  Headings
      and Captions

     

    .
      The
      titles and captions of paragraphs and subparagraphs contained in its Agreement
      are provided for convenience of reference only, and shall not be considered
      terms or conditions of its Agreement. 

     

    19.  Validity

     

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

     

    20.  Survival

     

    .
      The
      following provisions of its Agreement shall survive the termination of
      Consulting Agreement hereunder and shall be binding upon the parties.

     

    21.  Successors
      and Assigns

     

    .
      Its
      Agreement shall be binding upon and inure to the benefit of the Company and
      its
      successors and assigns, and the Consultant agrees that its Agreement may be
      assigned by the Company. Its Agreement is not assignable by the Consultant.
      

     

    22.  Counterparts

     

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

     

    
      
        
          
          

        

        
          -
            8 -

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed its Agreement on the day, month and year first
      above mentioned. 

     

    
      	 AMERICAN RACING
              CAPITAL, INC.	 	 CONSULTANT
	 	 	 	 	 
	 	 	 	 	 
	By:	 /s/
              A. Robert Koveleski 	 	 	 
	Name:	 A.
              Robert Koveleski 	 	By:	/s/
              Joseph Mattioli, III 
	Title:	 President
&
Chief
              Executive Officer 	 	 	Joseph
              Mattioli, III

    

     

    
      
        
        

      

      
        -
          9 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]