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                                                                    EXHIBIT 10.1

                     PARTNERSHIP INTEREST PURCHASE AGREEMENT

      THIS PARTNERSHIP INTEREST PURCHASE AGREEMENT (this "AGREEMENT") is made as
of the 30th day of December, 2004, by and between Endocare, Inc., a Delaware
corporation (the "SELLER") and Advanced Medical Partners, Inc., a Delaware
corporation (the "BUYER").

                                   WITNESSETH

      WHEREAS, the Seller owns, manages, and operates certain entities that own
medical devices and other equipment which provide cryosurgical therapy for
prostate cancer (the "BUSINESS"); and

      WHEREAS, the Seller desires to sell, assign and transfer to the Buyer, and
the Buyer desires to purchase from the Seller, the Seller's general partnership
interests, limited partnership interests and other equity and ownership
interests of any kind or nature in the partnerships described herein; and

      WHEREAS, the parties wish to set forth their agreement with respect to the
purchase and sale of the Interests (as defined in Section 1.1(B) below) and
other matters.

      NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and promises herein contained, the parties agree as follows:

      1.    PURCHASE, SALE, AND ASSIGNMENT OF THE INTERESTS.

            1.1 PURCHASE, SALE AND ASSIGNMENT.

                  (A) Subject to the terms and conditions hereof, at the Initial
Closing (as defined in Section 1.4 hereof) the Seller shall sell, assign, convey
and otherwise transfer to the Buyer, and the Buyer shall purchase from the
Seller, all right, title and interest of Seller in and to (i) each limited
partnership and other ownership or equity interest (including, without
limitation, each option or other right to purchase or acquire any such limited
partnership and other ownership or equity interest) as set forth and described
on Schedule 1.1 hereto (collectively, the "INITIAL INTERESTS"), in the
partnerships or that constitute a portion of the Business as listed on Schedule
1.1 hereto (collectively, the "PARTNERSHIPS"), (ii) a ninety-nine percent (99%)
interest in each general partnership interest and each option or other right to
purchase or acquire any such general partnership interest, as set forth and
described in Schedule 1.1, in the Partnerships ("FIRST TRANCHE GP INTERESTS,"
the Initial Interests and the First Tranche GP Interests are collectively
referred to herein as the "FIRST TRANCHE INTERESTS"), (iii) any management
agreements or other similar agreements between Seller and/or its affiliates, on
the one hand, and any of the Partnerships, on the other hand (the "MANAGEMENT
AGREEMENTS"); (iv) any rights of Seller and/or any of Seller's products in any
territory ("DISTRIBUTION RIGHTS"); and (v) 1,134,922 shares of Class A Common
Stock (the "U.S.M.D. INTEREST") of U.S. Medical Development, Inc., a Nevada
corporation ("U.S.M.D."), in each case, free and clear of any and all security
interests, liens, charges, claims, agreements (other than the obligations of
Buyer under the Partnership Agreements from and after the Initial Closing),
obligations and encumbrances of any nature whatsoever (as defined in Section
2.2) ("ENCUMBRANCES").

                  (B) Subject to the terms and conditions hereof, at the Second
Closing (as defined in Section 1.4 hereof) the Seller shall sell, assign, convey
and otherwise transfer to Buyer, and the Buyer shall purchase from the Seller,
all right, title and interest of Seller in and to the Seller's then remaining
one percent (1%) interests in each general partnership interest of the Seller,
as set forth and described in Schedule 1.1, in the Partnerships (the "SECOND
TRANCHE GP INTERESTS"; the First Tranche Interests and the

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Second Tranche GP Interests are collectively referred to herein as the
"INTERESTS"), free and clear of any and all Encumbrances.

                  (C) The Seller and Buyer hereby expressly acknowledge and
agree that Buyer is purchasing and Seller is selling at and as of the Initial
Closing, with respect to the First Tranche Interests and at and as of the Second
Closing, with respect to the Second Tranche GP Interests, each and every
economic and financial interest of Seller in and to the Partnerships, including
without limitation, the right to receive distributions under the Partnership
Organizational Documents (as defined in Section 2.2 below). Without limiting the
generality of the foregoing, if and to the extent that the transfer of any of
the Interests hereunder or the consummation of any of the Transactions is deemed
to have been a transfer that is not a "Permitted Transfer" (as such term is
defined in the Partnership Agreements) under any of the Partnership Agreements,
the Seller, as general partner for each Partnership for which such Seller is a
general partner, in accordance with Section 10.03 of each of the Partnership
Agreements, hereby elects to recognize such transfer notwithstanding that such
transfer may be deemed to not be a "Permitted Transfer."

            1.2 PURCHASE PRICE. In consideration of the sale, assignment and
transfer of the Interests pursuant to Section 1.1 hereof, the Buyer agrees to
pay to Seller, within twenty (20) days of the Second Closing Date (the
"CONSIDERATION DATE"), the sum of $850,000 (the "CONSIDERATION") by wire
transfer of immediately available funds to an account designated by the Seller.

            1.3 NO ASSUMPTION OF LIABILITY. Except as expressly provided in this
Agreement, neither party shall assume or shall be deemed to have assumed any
liability or obligation of any other party of any kind, character, or
description, whether known or unknown, absolute or contingent, accrued or
unaccrued, disputed or undisputed, liquidated or unliquidated, secured or
unsecured, joint or several, due or to become due, vested or unvested,
executory, determined, determinable or otherwise (a "LIABILITY").

            1.4 CLOSING.

                  (A) INITIAL CLOSING. The initial closing of the transactions
contemplated hereby, other than the transactions contemplated by Section 1.1(B)
hereof, (the "INITIAL CLOSING") shall be held on December 30, 2004 (the "INITIAL
CLOSING DATE"), at the offices of Haynes and Boone, LLP, 201 Main Street, Suite
2200, Fort Worth, Texas 76102, or at such other location as the Buyer shall
designate.

                  (B) SECOND CLOSING. The closing of the transactions
contemplated by Section 1.1(B) hereof (the "SECOND CLOSING"; the Initial Closing
and the Second Closing are sometimes collectively referred to herein as the
"CLOSINGS") shall be held on December 31, 2004 (the "SECOND CLOSING DATE") at
the offices of Haynes and Boone, LLP, 201 Main Street, Suite 2200, Fort Worth,
Texas 76102, or at such other location as the Buyer shall designate. The parties
agree that the effective date of the transactions contemplated by this
Agreement, for accounting and employment purposes, shall be the Second Closing
Date.

                  (C) TRANSACTIONS. For purposes of this Agreement,
"TRANSACTIONS" shall mean any and all of the transactions contemplated by this
Agreement.

      2.    REPRESENTATIONS AND WARRANTIES OF SELLER.

      The Seller, on its own behalf and on behalf of the Partnerships, as
applicable, represents and warrants to the Buyer, as follows, as of the date
hereof, except as set forth on the disclosure schedule furnished to Buyer and
attached hereto which sets for the exceptions to the representations and
warranties

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contained in this Section 2 and certain other information called for by this
Section 2 (the "SELLER DISCLOSURE SCHEDULE") which Seller Disclosure Schedule
identifies any such exceptions with reasonable particularity and is arranged in
sections corresponding to the numbered and lettered sections contained in this
Agreement. The parties acknowledge and agree that disclosure of any fact or item
in any particular section of the Seller Disclosure Schedule shall be deemed to
be made in any other specific section or sections of the Seller Disclosure
Schedule to which such disclosure reasonably relates.

            2.1 AUTHORITY. The Seller possesses full corporate power and
authority to execute and deliver this Agreement and to consummate the
Transactions. This Agreement has been duly and validly executed and delivered by
the Seller and constitutes the legal, valid and binding obligation of the
Seller, enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency or other similar laws
from time to time in effect which affect the enforcement of creditors' rights
generally and by general principles of equity.

            2.2 NO VIOLATION. The execution and delivery of this Agreement by
the Seller and the performance by it of the Transactions will not (A) violate
any provision of the Partnership Organizational Documents, (B) violate any law
or regulation of any United States federal, territorial, state or local
governmental or regulatory agency or authority (an "AUTHORITY"), (C) require any
consent or approval of, notice to or filing with any Authority which has not
been obtained or made, except where the failure to obtain such consent or
approval, or to provide such notice or filing, would not have a Material Adverse
Effect (as defined below) on the Partnerships, (D) result in a breach of any
provision of, or require the consent or approval of any third party which has
not been obtained under any material contract or agreement to which the Seller
or any of the Partnerships is a party, or (E) result in the creation or
imposition of any Encumbrance upon any portion of the assets of the Partnerships
pursuant to the terms of any contract or agreement to which the Seller or any of
the Partnerships is a party (the consents, approvals and notices, if any,
required to be obtained or made and referred to in clauses (C) and (D) above are
collectively referred to herein as "PARTNERSHIP CONSENTS"). Seller has
heretofore delivered to the Buyer true, correct and complete copies of (X) the
certificates of limited partnership of the Partnerships and all amendments
thereto (collectively, the "PARTNERSHIP CERTIFICATES"), (Y) the limited
partnership agreements of the Partnerships and all amendments thereto
(collectively, the "PARTNERSHIP AGREEMENTS"), and (Z) all other organizational
documents, if any, of the Partnerships governing the ownership, operation,
voting and control of any of the Partnerships (the documents described in
clauses (X), (Y) and (Z) above are, collectively referred to herein as the
"PARTNERSHIP ORGANIZATIONAL DOCUMENTS").

            2.3 TITLE TO THE INTERESTS.

                  (A) The list of the Partnerships set forth in Schedule 1.1
hereto is a true, correct and complete list of each partnership through which
the Business (or any portion thereof) is conducted by the Seller.

                  (B) The list of the Interests set forth and described in
Schedule 1.1 hereto is a true, correct and complete list of each general
partnership, limited partnership and other ownership or equity interest
(including, without limitation each option or other right to purchase or acquire
any such general partnership, limited partnership and other ownership or equity
interest), of the Partnerships owned beneficially or of record by the Seller.

                  (C) The Seller is the record and beneficial owner of and has
good and valid title to the Interests in the percentages set forth in Schedule
1.1, free and clear of any and all Encumbrances.

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                  (D) The delivery by the Seller of the Interests to the Buyer
at the Initial Closing or the Second Closing, as provided herein, shall convey
to the Buyer good and valid title to the Interests, free and clear of all, and
shall not result in Buyer being subject to any, Encumbrances.

                  (E) During the Ownership Period (as defined in Section 9.10
below), each of the issued and outstanding general partnership, limited
partnership and other equity ownership interests (including, without limitation,
each option or other right to purchase or acquire any such general partnership,
limited partnership and other equity ownership interests), in the Partnerships,
including, without limitation, the Interests, has been issued in full compliance
with the Partnership Organizational Documents applicable thereto and in full
compliance with all applicable securities laws, rules, regulations and
requirements. Each subsequent transfer during the Ownership Period, if any, of
any such general partner interests (including the First Tranche GP Interests and
the Second Tranche GP Interests), was made in full compliance with the
Partnership Organizational Documents applicable thereto and, in full compliance
with all applicable securities laws, rules, regulations and requirements.

                  (F) The Seller has made any and all capital contributions
required to be made by it during the Ownership Period (including, without
limitation, any required initial capital contributions) to the Partnerships as
required by the Partnership Organizational Documents. The Seller has no
obligation to make any other capital contribution or any loan or other payment
or any other transfer of assets or services to the Partnerships.

            2.4 OTHER OWNERSHIP INTERESTS. During the Ownership Period, no other
person has any right to obtain or acquire any general partnership, limited
partnership or other ownership or equity interest (including, without
limitation, any option or other right to purchase or acquire any such general
partnership, limited partnership or other ownership or equity interest), in or
to any of the Partnerships or its capital, profits or distributions.

            2.5 CONTRACTS AND COMMITMENTS.

                  (A) CONTRACTS. Set forth in Section 2.5 of the Seller
Disclosure Schedule is a true, correct and complete list of each of the
following agreements, whether written or oral, to which the Partnerships (or any
of them) is a party:

                        (1) any lease of real property, or legally binding
commitment, contract, obligation or agreement for the purchase or sale of real
property (hereinafter, legally binding commitments, contracts, obligations and
agreements of any nature shall all be included in the term "AGREEMENT");

                        (2) any employment agreement with any officer, employee,
director or consultant which is not terminable without severance liability in
excess of $50,000.00 at the discretion of such Partnership on thirty (or fewer)
days' notice from such Partnership;

                        (3) any agreement to lend or borrow money in excess of
$50,000;

                        (4) any collective bargaining agreement with any labor
union or other representative of employees;

                        (5) any agreement guaranteeing the payment or
performance of the obligations of others, except in the ordinary course of
business;

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                        (6) any lease of any personal property under the express
terms of which such Partnership shall hereafter be obligated to make aggregate
annual payments exceeding one hundred thousand dollars ($100,000.00);

                        (7) any ongoing agreement for the sale or purchase of
products or services by such Partnership under the terms of which such
Partnership could hereafter be entitled to receive or obligated to make
aggregate annual payments exceeding one hundred thousand dollars ($100,000.00)
for any such agreement;

                        (8) any partnership or joint venture agreement the
existence of which the Seller has not informed the limited partners of the
Partnerships;

                        (9) any security or pledge agreement;

                        (10) any management or similar agreement, or

                        (11) any amendments Partnership Organizational Documents
made during the Ownership Period;

                        (12) any agreement (written or oral) pursuant to which
the Seller has granted to any person the exclusive right to conduct procedures
provided by the Partnerships; and

                        (13) any other agreement material to any of the
Partnerships.

                  (B) ENFORCEABILITY AND ASSIGNABILITY. Each of the agreements
set forth in Section 2.5 of the Seller Disclosure Schedule and the requirements
relating to the indebtedness referenced in Section 2.6 (the "CONTRACTS") is
enforceable and in full force and effect, except as such enforceability and
effectiveness may be limited by bankruptcy, insolvency or other similar laws
from time to time in effect which affect the enforcement of creditors rights
generally and by general principles of equity; and none of the Partnerships is
in breach or default, nor are there any facts that with notice or lapse of time
would cause a breach or default by the Partnerships under any of the Contracts,
nor is the Seller aware of any existing breach or default or of any facts that
with notice or lapse of time would constitute a breach or default of any such
Contract by any other party thereto. Each of the written Contracts incorporates
all of the material terms and conditions agreed to by the parties thereto. The
consummation of the Transactions will not be deemed to be an assignment of any
of the Contracts requiring the consent of any other person.

            2.6 INDEBTEDNESS OF THE PARTNERSHIPS. None of the Partnerships has,
during the Ownership Period, nor shall the consummation of the Transactions
result in any of the Partnerships being subject to, any debt, guaranty,
liability or obligation of any nature, whether accrued, absolute, contingent or
otherwise, due or to become due, or known or unknown, other than such
liabilities incurred in the ordinary course of business consistent with past
practices or which have not had or could not reasonably be expected to result in
a Material Adverse Effect on the Partnerships.

            2.7 LITIGATION. Except as disclosed in the Seller SEC Reports (as
defined in Section 9.10 below) filed prior to the date hereof, there is no suit,
action or other proceeding, or injunction or final judgment relating thereto,
pending, or to the knowledge of the Seller, threatened (i) against either the
Seller or the Partnerships, nor, to the knowledge of the Seller, any
investigation that might result in any such suit, action or proceeding, (ii)
that, to the knowledge of the Seller, otherwise relates to or may affect the
Business or (iii) that challenges, or that may have the effect of preventing,
delaying, making illegal or otherwise interfering with, any of the Transactions.

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            2.8 ABSENCE OF CHANGES. During the Ownership Period, except for (i)
the execution and delivery of this Agreement and the Transactions and (ii) as
disclosed in the Seller SEC Reports filed prior to the date hereof, there has
not been any event or development which could reasonably be expected to result
in a Material Adverse Effect (as hereafter defined) on the Partnerships. For
purposes of this Agreement, "MATERIAL ADVERSE EFFECT" means, for any person, a
material adverse effect (a) on the business, operations, financial condition,
assets and properties, liabilities or prospects of such person, taken as a
whole, or (b) on the ability of such person to consummate the Transactions,
provided, however, that it shall not include any of the following, either alone
or in combination any effect or change occurring as a result of (i) general
economic or financial conditions, or (ii) other developments which are not
unique to the person but also uniformly affect each of the other persons who
participate or are engaged in the lines of business in which the person
participates or is engaged.

            2.9 TANGIBLE PERSONAL PROPERTY. All tangible personal property and
equipment used by the Partnerships in the conduct of the Business is listed in
Section 2.9 of the Seller Disclosure Schedule (the property and equipment listed
in such section is referred to herein as the "PARTNERSHIPS EQUIPMENT"). Each of
the Partnerships is in possession of and has good title to the Partnerships
Equipment, except where the failure to hold such title, interest or right would
not have a Material Adverse Effect either individually or in the aggregate on
the Partnerships (or any of them).

            2.10 COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL
AUTHORIZATIONS. Except as otherwise disclosed in the Seller SEC Reports filed
prior to the date hereof, during the Ownership Period:

                  (A) Both the Seller (with respect to the conduct and
operations of the Business) and the Partnerships are, and have been during the
Ownership Period, in compliance with each legal requirement that is or was
applicable to it or to the conduct or operation of the Business or the ownership
or use of any of its assets, except where failure to comply would not result in
a Material Adverse Effect.

                  (B) No event has occurred or circumstance exists during the
Ownership Period that (with or without notice or lapse of time) (i) may
constitute or result in a violation by the Seller and the Partnerships (or any
of them) of any legal requirement with respect to the conduct and operation of
the Business, except where such violation would not result in a Material Adverse
Effect on the Partnerships (or any of them) or (ii) may give rise to any
obligation on the part of the Seller and the Partnerships (or any of them) to
undertake, or to bear all or any portion of the cost of, any remedial action of
any nature with repect to the conduct or operations of Business, except where
the cost of such remedial action would not have a Material Adverse Effect.

                  (C) Neither the Seller nor the Partnerships has received any
written notice or other written communication from any Authority or any other
person during the Ownership Period regarding (i) any actual, alleged, possible,
or potential violation of, or failure to comply with, any legal requirement with
respect to the conduct and operation of the Business, or (ii) any actual,
alleged, possible, or potential obligation on the part of the Seller and the
Partnerships (or any of them) to undertake, or to bear all or any portion of the
cost of, any remedial action of any nature with respect to the conduct and
operation of the Business.

            2.11 ENVIRONMENTAL MATTERS. Except as otherwise disclosed in the
Seller SEC Reports filed prior to the date hereof:

                  (A) Each of the Partnerships is in compliance with all
applicable Environmental Laws (as defined below) except where such failure could
not reasonably be expected to have a Material Adverse Effect, and there are no
circumstances which may materially prevent or interfere with such

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compliance in the future. Neither the Seller nor the Partnerships have received
during the Ownership Period any communication (whether written or oral), whether
from an Authority, citizen group, employee or otherwise, that alleges that the
Partnerships (or any of them) or any of their respective assets or properties
used in the Business is not in full compliance with Environmental Laws. All
permits, registrations and other governmental authorizations currently held by
the Seller and the Partnerships (or any of them) pursuant to Environmental Laws
(collectively, "ENVIRONMENTAL PERMITS") represent all permits necessary for the
conduct of the Business as currently conducted, except where the failure to hold
such Environmental Permits (or any of them) could reasonably be expected to have
a Material Adverse Effect. Neither the Seller nor the Partnerships has been
notified by any relevant Authority during the Ownership Period that any permit
will be modified, suspended or revoked or cannot be renewed in the ordinary
course of business.

                  (B) There is no Environmental Notice (as defined below) that
is (i) pending or, to the knowledge of the Seller, threatened against any of the
Partnerships or (ii) to the knowledge of the Seller, pending or threatened
against any person whose liability for such Environmental Notice may have been
retained or assumed by or could reasonably be imputed or attributed to the
Seller and the Partnerships (or any of them).

                  (C) To the knowledge of the Seller, there are no past or
present actions, activities, circumstances, conditions, events or incidents
arising from the operation, ownership or use of any property currently or
formerly owned, operated or used by the Partnerships during the Ownership
Period, including, without limitation, the release, emission, discharge or
disposal of any Material (as defined below) into the Environment (as defined
below), that (i) could reasonably be expected to result in the incurrence of
costs under Environmental Laws or (ii) could reasonably be expected to form the
basis of any Environmental Notice against or with respect to the Partnerships or
against any person whose liability for any Environmental Notice may have been
retained or assumed by or could be imputed or attributed to the Seller and the
Partnerships (or any of them).

                  (D) For purposes of this Section 2.11:

                        (1) "ENVIRONMENT" means any surface water, ground water,
drinking water supply, land surface or subsurface strata, ambient air and any
indoor workplace.

                        (2) "ENVIRONMENTAL NOTICE" means any written notice by
any person alleging potential liability (including, without limitation,
potential liability for investigatory costs, cleanup costs, governmental costs,
harm or damages to person, property, natural resources or other fines or
penalties) arising out of, based on or resulting from (a) the emission,
discharge, disposal, release or threatened release in or into the Environment of
any Material or (b) circumstances forming the basis of any violation, or alleged
violation, of any applicable Environmental Law.

                        (3) "ENVIRONMENTAL LAWS" means all national, state,
local and foreign laws, codes, regulations, common law, requirements,
directives, orders, and administrative or judicial interpretations thereof, all
as in effect on the date hereof or on the Initial Closing Date, that may be
enforced by any Authority, relating to pollution, the protection of the
Environment.

                        (4) "MATERIAL" means pollutants, contaminants or
chemical, industrial, hazardous or toxic materials or wastes, including, without
limitation, petroleum and petroleum products.

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            2.12 TAX MATTERS.

              (A) Each of the Partnerships has filed on a timely basis during
the Ownership Period all Tax Returns (as defined below) that it was required to
file, and all such Tax Returns were complete and accurate in all material
respects. Each Partnership has paid on a timely basis all Taxes that were due
and payable during the Ownership Period, or if not yet due and payable, such
Taxes are accrued on the books and records of the Partnerships. None of the
Partnerships has any actual or potential liability for any Tax obligation of any
other taxpayer (including any affiliated group of entities that included the
Partnerships. All Taxes that the Partnerships are or were required by law to
withhold or collect during the Ownership Period have been duly withheld or
collected and, to the extent required, have been paid to the proper Authority.

                  (B) Seller has made available to Buyer complete and accurate
copies of all federal income Tax Returns with repect to the Ownership Period,
and has delivered to Buyer complete and accurate copies of all examination
reports and statements of deficiencies, if any, assessed against or agreed to by
the Partnerships during the Ownership Period. Seller has delivered to Buyer or
made available to Buyer complete and accurate copies of all other Tax Returns of
the Seller and the Partnerships, together with all related examination reports
and statements of deficiency during the Ownership Period. To the knowledge of
the Seller, no examination or audit of any Tax Return of the Partnerships by any
Authority is currently in progress or, threatened or contemplated. Neither the
Seller nor the Partnerships has been informed in writing by any jurisdiction
during the Ownership Period that the jurisdiction believes that the Partnerships
(or any of them) were required to file any Tax Return that was not filed. The
Partnerships have not, during the Ownership Period, waived any statute of
limitations with respect to Taxes or agreed to an extension of time with respect
to a Tax assessment or deficiency.

                  (C) For purposes of this Agreement:

                        (1) "TAX" (and, with correlative meaning, "TAXES,"
"TAXABLE" and "TAXING") means (i) any federal, state, local or foreign income,
alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad
valorem, transfer, franchise, profits, license, withholding, payroll,
employment, excise, severance, stamp, occupation, premium, property,
environmental or windfall profit tax, custom, duty or other tax, governmental
fee or other like assessment or charge of any kind whatsoever, together with any
interest or any penalty, addition to tax or additional amount imposed by any
Authority responsible for the imposition of any such tax (domestic or foreign),
(ii) any liability for payment of any amounts of the type described in (i) as a
result of being a member of an affiliated, consolidated, combined, unitary or
other group for any Taxable period and (iii) any liability for the payment of
any amounts of the type described in (i) or (ii) as a result of any express
obligation to indemnify any other person.

                        (2) "TAX RETURN" means any return, report, information
return, schedule or other document (including any related or supporting
information) filed or required to be filed with respect to any taxing authority
with respect to Taxes.

            2.13 PERMITS. All permits used in and material, individually, or in
the aggregate, to the Partnerships for the conduct of the Business during the
Ownership Period are currently effective and valid and have been validly issued.
Upon written request, the Seller shall provide the Buyer a list of such permits.
To the knowledge of Seller and the Partnerships, no additional permits are
necessary to enable the Partnerships (or any of them) to conduct the Business in
material compliance with all applicable federal, state and local laws. Neither
the execution, delivery or performance of this Agreement nor the mere passage of
time will have any effect on the continued validity or sufficiency of such
permits, nor will any additional permits be required by virtue of the execution,
delivery or performance of this Agreement to enable the conduct of the Business
as now conducted.

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            2.14 REGULATORY COMPLIANCE. Except as disclosed in the Seller SEC
Reports filed prior to the date hereof:

                  (A) Each Partnership has timely filed or otherwise provided
all registrations, reports, data, and other information and applications with
respect to its medical device, pharmaceutical, consumer, health care, and other
governmentally regulated products (the "REGULATED PRODUCTS") required to be
filed with or otherwise provided during the Ownership Period to the United
States Food and Drug Administration (the "FDA") or any other Authority with
jurisdiction over the manufacture, use, or sale of the Regulated Products, has
complied in all material respects during the Ownership Period with all legal
requirements of the FDA or other Authority with respect to the Regulated
Products (including but not limited to the Federal Food, Drug, and Cosmetic Act,
the Medicare Anti-Kickback Statute, the Health Insurance Portability and
Accountability Act, the Federal False Claims Act, the Federal laws concerning
physician self-referral known as "Stark Laws", and the rules and regulations of
the Joint Commission on Accreditation of Healthcare Organizations) in all
material respects, and all regulatory licenses or approvals in respect thereof
are in full force and effect. All documentation, correspondence, reports, data,
analyses and certifications relating to or regarding any medical devices of the
Partnerships filed with or delivered by or on behalf of the Partnerships during
the Ownership Period to any Authority was in all material respects true and
accurate when so filed or delivered and, to the knowledge of the Seller, remains
true and accurate in all material respects. Each Regulated Product is being
distributed and marketed in all material respects in compliance with all
applicable requirements under all applicable laws.

                  (B) No request has been made during the Ownership Period to
recall, withdraw, suspend or discontinue any Regulated Product distributed or
managed by the Partnerships (whether voluntarily or otherwise). To the knowledge
of the Seller, no proceedings (whether completed or pending) seeking the recall,
withdrawal, suspension or seizure of any Regulated Product managed or
distributed by the Partnerships during the Ownership Period are pending or, to
the knowledge of the Seller, threatened against the Partnerships, nor have any
such proceedings ever been instituted during the Ownership Period.

                  (C) Neither the Seller nor the Partnerships has received any
written notice from the FDA or any other Authority during the Ownership Period
of any action to withdraw its approval or request the recall of any Regulated
Product with repect to the conduct or operation of the Business, any action to
enjoin production of any such Regulated Product.

            2.15 BROKERS. The Seller has not retained any broker in connection
with the Transactions. Buyer has, and will have, no obligation to pay any
broker's, finder's, investment banker's, financial advisor's or similar fee in
connection with this Agreement or the Transactions by reason of any action taken
by or on behalf of any of the Seller or the Partnerships.

      3.    REPRESENTATIONS AND WARRANTIES OF THE BUYER.

      Buyer represents and warrants to the Seller, as of the date hereof, as
      follows:

            3.1 AUTHORITY AND NO VIOLATION. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. Buyer possesses full corporate power and authority to execute and
deliver this Agreement and to consummate the Transactions. This Agreement has
been duly and validly executed and delivered by the Buyer and constitutes the
legal, valid and binding obligation of the Buyer, enforceable against it in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency or other similar laws from time to time in effect which
affect the enforcement of creditors' rights generally and by general principles
of equity. The execution and delivery of this Agreement by the Buyer and the
performance by it of the Transactions do not violate the

                                       -9-
<PAGE>

Certificate of Incorporation or Bylaws of the Buyer or, to the Buyer's
knowledge, (A) violate any law or regulation of any Authority, (B) require any
consent or approval of, notice to or filing with any Authority which has not
been obtained or made, except where the failure to obtain such consent or
approval, or to provide such notice or filing, would not have a Material Adverse
Effect on the Buyer or (C) result in a breach of any provision of, or require
the consent or approval of any third party which has not been obtained under,
the terms of any contract or agreement to which the Buyer is a party, which
violation, breach or consent or approval (if not obtained) would have a Material
Adverse Effect on the Buyer.

            3.2 LITIGATION. There is no suit, action or other proceeding, or
injunction or final judgment relating thereto, pending, or to the knowledge of
Buyer, threatened against Buyer that challenges, or that may have the effect of
preventing, delaying, making illegal or otherwise interfering with, any of the
Transactions.

            3.3 BROKERS. Buyer has not retained any broker or investment banker
in connection with the Transactions. Seller and the Partnerships have, and will
have, no obligation to pay any broker's, finder's, investment banker's,
financial advisor's or similar fee, including without limitation, any fees of
Buyer's Financial Advisor, in connection with this Agreement or the Transactions
by reason of any action taken by or on behalf of the Buyer.

            3.4 SELLER INFORMATION The Buyer acknowledges that it has access to,
and has reviewed, the Seller SEC Reports and has had an opportunity to discuss
the Seller's business, management, financial affairs, and other matters
disclosed in the Seller SEC Reports with directors, officers and management of
the Seller and has had the opportunity to review the Sellers operations and
facilities. The Buyer has also had an opportunity to ask questions of and
receive answers from the Seller and its management regarding the conduct and
operations of the Business.

            3.5 U.S.M.D. INTEREST. The USMD Interest to be received by the Buyer
is being acquired for its own account, for investment purposes only, and not
with a view to the resale or distribution thereof, except pursuant to effective
registrations or qualifications related thereto under the Securities Act of
1933, as amended, and applicable state securities or blue sky laws or pursuant
to an exemption therefrom; provided, however, that in making this
representation, Buyer does not agree to hold the USMD Interest for any minimum
or specific term and reserves the right to sell, transfer or otherwise dispose
of the USMD Interest at any time in accordance with (i) federal and state
securities laws applicable to such sale, transfer or disposition, and (ii) the
provisions of this Agreement.

      4.    CERTAIN COVENANTS.

            4.1 TRANSACTIONAL TAXES. The Seller and Buyer shall be equally
liable for, and shall indemnify and hold harmless the Partnerships against, all
Taxes with respect to the sale, transfer, or assignment of the Interests or the
consummation of the Transactions.

            4.2 ACCESS. The Seller shall provide to Buyer, during the normal
business hours of Seller, reasonable access to the facilities, books, and
records of the Partnerships and any partnerships of which any of the
Partnerships is the general partner and shall cause their officers, employees,
accountants, and other agents and representatives ("collectively,
"REPRESENTATIVES") to reasonably cooperate with each Representative of Buyer in
connection with Buyer's due diligence investigation of the Partnerships and the
assets, contracts, liabilities, operations, records and other aspects of the
Business.

            4.3 OPERATIONS. The Seller covenants and agrees on its own behalf
and on behalf of each of the Partnerships that the operations and financial
affairs of each of the Partnerships and the partnerships of which any of the
Partnerships is the general partner will be conducted in its ordinary

                                      -10-
<PAGE>

course of business consistent with past practices during the period from the
effective date hereof until the Initial Closing.

            4.4 INFORMATION ACCESS. Buyer agrees that, at the Seller's expense,
for a period of seven (7) years after the Initial Closing Date, it will assist
and cooperate with the Seller in collecting and assembling information relating
to the operation of the business of the Partnerships on or prior to the Initial
Closing Date that customarily has been provided or used in connection with the
preparation of any and all Tax Returns, information returns or other reports
required to be filed by the Seller with any Authority. During such period, Buyer
shall retain, and neither destroy nor dispose of, all Tax Returns, books and
records (including computer files) of, or with respect to the activities of, the
Business and the divisions for all taxable periods ending prior to the Initial
Closing Date.

            4.5 FILINGS. Each of the Buyer and the Seller, on its own behalf and
on behalf of the Partnerships, shall promptly take all such action as may, under
applicable law, be necessary or appropriate for, and will promptly file and, if
appropriate, use its best efforts to have declared effective or approved all
documents and notifications with or to any Authority that are necessary or
appropriate for the consummation of the Transactions, and each of the Buyer and
the Seller shall promptly give the other party information requested by such
other party pertaining to it and its affiliates that is reasonably necessary to
enable such other party to take such actions and file in a timely manner all
documents and notifications required to be so filed by applicable law.

            4.6 OTHER ACTIONS. Each of the Buyer and the Seller, on its own
behalf and on behalf of the Partnerships, shall use its reasonable best efforts
to consummate the Transactions and make them effective as promptly as
practicable, including, without limitation, (i) defending lawsuits or other
proceedings challenging this Agreement or the consummation of any of the
Transactions, (ii) using reasonable best efforts to lift any injunction or order
adversely affecting this Agreement or the consummation of the Transactions or
(iii) using reasonable best efforts to obtain any consents necessary for its
performance of the Transactions.

            4.7 NO SOLICITATION OR NEGOTIATION. Between the date hereof and the
Initial Closing Date, the Seller will not (nor will the Seller permit any of the
Seller's officers, directors, general partners, limited partners, employees,
agents, Representatives or affiliates to) directly or indirectly, take any of
the following actions with any person other than Buyer: (i) solicit or initiate
any proposals or offers from any person relating to any possible acquisition of
any of the Partnerships or any of the Interests (whether by way of merger,
purchase of equity or ownership interests, purchase of assets or otherwise) or
any material portion of its or their assets; (ii) unless otherwise required by
any Authority, provide information with respect to it or any of the Partnerships
to any person, other than to Buyer, relating to, or otherwise cooperate with,
facilitate or encourage any effort or attempt by any such person to which the
Seller has knowledge, to acquire any of the Partnerships or any of the Interests
(whether by way of merger, purchase of equity or ownership interest, purchase of
assets or otherwise) or any portion of its or their assets; or (iii) enter into
any agreement with any person providing for the possible acquisition of any of
the Partnerships or any of the Interests (whether by way of merger, purchase of
equity or ownership interest, purchase of assets or otherwise), or any portion
of its or their assets.

            4.8 RIGHT OF FIRST REFUSAL. The Seller hereby grants the Buyer a
right of first refusal to service cryotherapy cases where the applicable
hospital elects a "per procedure" case rate; provided, however, that (i) this
right shall only apply to the six (6) geographic markets serviced by the
Partnerships as of the Closing; and (ii) nothing herein shall obligate the
Seller to utilize the Buyer's mobile resources for those hospitals that elect to
provide technical service with their own staff or another service provider.

                                      -11-
<PAGE>

            4.9 TRI STATES CRYOTHERAPY, L.P.. Following the Closing, the Seller
shall promptly take the necessary actions in order to cause Tri States
Cryotherapy, L.P., a Texas limited partnership ("TRI STATES"), to be dissolved.
In addition, the Seller Agrees that it will not, for a period of one (1) year
following the Closing, enter into a limited partnership agreement with the
former limited partners of Tri States.

            4.10 U.S.M.D. INTEREST. In the event that, at any time during the
one (1) year period following the Second Closing Date, (i) the Buyer sells the
U.S.M.D. Interest, (ii) all or substantially all of the assets of U.S.M.D. are
sold or transferred, (iii) the occurrence of a merger or consolidation of
U.S.M.D. by means of any transaction or series of related transactions, or (iv)
U.S.M.D. makes any liquidation distribution(s) (each of (i), (ii), (iii) and
(iv) a "Liquidation Event"), then the Buyer shall promptly (and in any event
within thirty (30) days of the Buyer's receipt thereof) pay the Seller fifty
percent (50%) of the proceeds above $200,000 received in connection with any
such Liquidation Event; provided, however, that the Buyer's obligations under
this section shall terminate upon its payment of $500,000, in the aggregate, to
the Seller pursuant to the terms of this Section 4.10.

            4.11 FUNDING. In the event that the Consideration is not delivered
to Seller by Buyer on or before the Consideration Date, Buyer and Seller agree
to take all necessary actions in order to immediately cause the Interests, the
U.S.M.D. Interest, the Distribution Rights and all rights under the Management
Agreement to be transferred back to the Seller, including, without limitation,
executing one or more assignment agreements.

      5.    CONDITIONS TO OBLIGATIONS OF THE BUYER AND THE SELLER.

            5.1 THE BUYER'S CONDITIONS. The Seller will deliver or cause to be
delivered to the Buyer:

                  (A) CERTIFICATE. At the Initial Closing, certificates of an
authorized officer of the Seller certifying (i) copies of resolutions duly
adopted by the Board of Directors of the Seller authorizing and approving the
execution, delivery and performance of this Agreement and the other agreements
and documents executed and delivered in connection herewith, (ii) that all
action by the Seller and the Partnerships necessary to approve the execution,
delivery and performance of this Agreement, and the other agreements and
documents executed and delivered by the Seller and the Partnerships (or any of
them) in connection herewith, shall have been duly and validly taken, (iii) that
the representations and warranties of the Seller contained in this Agreement
shall be true and correct in all material respects at and as of the Initial
Closing Date with the same effect as if made at and as of the Initial Closing
Date (except to the extent such representations specifically relate to an
earlier date, in which case such representations shall be true and correct in
all material respects as of such earlier date and in any event, subject to the
foregoing materiality qualification) and (iv) such other matters as the Buyer
may reasonably request.

                  (B) ASSIGNMENT AND ASSUMPTION AGREEMENTS AND AMENDMENTS TO
PARTNERSHIP AGREEMENTS.

                        (1) At the Initial Closing, (i) an Assignment Agreement,
providing for the sale, assignment and assumption of the First Tranche Interests
and the assignment of the Management Agreements and the Distribution Rights, all
as set forth in Section 1.1 above, substantially in the form satisfactory to the
Buyer, Seller and its legal counsel (the "INITIAL ASSIGNMENT AGREEMENT") and
(ii) if recommended by counsel to the Buyer, amendments to the Partnership
Agreements providing for the admission and substitution of the Buyer as the
general partner of the Partnerships, substantially in the form satisfactory to
the Buyer, Seller and its legal counsel (the "AMENDMENT AGREEMENTS"), in each
case,

                                      -12-
<PAGE>

executed by the Buyer and the Seller (and any other parties required for the
effectuation thereof) and such other documentation as shall be reasonably
requested by the Buyer to evidence the valid assignment of the First Tranche
Interests and, if recommended by legal counsel to the Buyer, the admission and
substitution of the Buyer as the general partner of the Partnerships.

                        (2) At the Second Closing, an Assignment Agreement
providing for the sale, assignment and assumption of the Second Tranche GP
Interests as set forth in Section 1.1 above (the "SECOND ASSIGNMENT AGREEMENT"),
executed by the Buyer and the Seller and such other documentation as shall be
reasonably requested by the Buyer to evidence the valid assignment of the Second
Tranche GP Interests.

                  (C) AMENDMENTS TO PARTNERSHIP CERTIFICATES. At the Initial
Closing, if advised to do so by legal counsel to the Buyer, Certificates of
Amendment to the Partnership Certificates of the Partnerships, evidencing the
substitution and admission of the Buyer as the general partner of the
Partnerships, in a form satisfactory to the Buyer and its legal counsel,
executed by each of Buyer and the Seller (and any other parties required for the
effectuation thereof).

                  (D) TERMINATION OF ENCUMBRANCES. At the Initial Closing,
evidence satisfactory to Buyer and its counsel that all Encumbrances, if any, on
or with respect to (i) any of the Interests, and (ii) any Encumbrances on or
with respect to the Partnerships (or any of them) or any of the Partnerships'
respective assets and properties have, in each case, been fully released and
terminated (the "RELEASED ENCUMBRANCES"), including, without limitation, Uniform
Commercial Code ("UCC") termination statements terminating all UCC financing
statements which cover any of the Released Encumbrances; provided, however,
notwithstanding the closing of the Transactions, failure to secure the release
of any Encumbrances by Seller shall not constitute a waiver on the part of Buyer
of the obligations of Seller set forth in this subsection (D).

                  (E) LEGAL OPINIONS.

                        (1) At the Initial Closing, an opinion of Morrison &
Foerster LLP dated the Initial Closing Date, substantially in the form of
Exhibit 5.1(E), unless waived by the Buyer.

                        (2) At the Initial Closing, evidence that opinions of
Morrison & Foerster LLP dated the Initial Closing Date and substantially in the
form required by any of the Partnership Agreements have, where applicable, been
delivered to or waived by the Partnerships.

                        (F) GOOD STANDING CERTIFICATES. At the Initial Closing,
certificates dated as of a date not earlier than the tenth (10th) business day
prior to the Initial Closing as to the good standing of the Seller and each of
the Partnerships executed by the appropriate officials of the jurisdictions of
organization of each of the Seller and the Partnerships.

                        (G) CONSENTS. At the Initial Closing, the Partnership
Consents.

                        (H) OTHER CLOSING DOCUMENTS. At the Initial Closing,
such other deeds, bills of sale, assignments, certificates of title, documents
and other instruments of transfer and conveyance as may reasonably be requested
by Buyer, each in form and substance satisfactory to Buyer and its legal counsel
and executed by Seller.

            5.2 SELLER' CONDITIONS. The Buyer will deliver or cause to be
      delivered to the Seller:

                                      -13-
<PAGE>

                        (A) CERTIFICATE. At the Initial Closing, a Certificate
of the Secretary of the Buyer certifying (i) copies of resolutions duly adopted
by the Board of Directors of the Buyer authorizing and approving the execution,
delivery and performance of this Agreement and the other agreements and
documents executed and delivered in connection herewith, (ii) that all action by
Buyer necessary to approve the execution, delivery and performance of this
Agreement, and the other agreements and documents executed and delivered by
Buyer in connection herewith, shall have been duly and validly taken, (iii) that
the representations and warranties of the Buyer contained in this Agreement
shall be true and correct in all material respects at and as of the Initial
Closing Date with the same effect as if made at and as of the Initial Closing
Date (except to the extent such representations specifically relate to an
earlier date, in which case such representations shall be true and correct in
all material respects as of such earlier date and in any event, subject to the
foregoing materiality qualification) and (iv) such other matters as the Seller
may reasonably request.

                        (B) ASSIGNMENT AGREEMENTS. At the Initial Closing, the
Initial Assignment Agreement, executed by the Buyer and, at the Second Closing,
the Second Assignment Agreement, executed by the Buyer.

                        (C) AMENDMENT AGREEMENTS. At the Initial Closing, the
Amendment Agreements, executed by the Buyer.

                        (D) GOOD STANDING CERTIFICATE. At the Initial Closing, a
Certificate dated as of a date not earlier than the tenth (10th) business day
prior to the Initial Closing as to the good standing of Buyer executed by the
Secretary of State of the State of Delaware.

      6.    SURVIVAL OF REPRESENTATIONS; INDEMNITIES; EQUIPMENT WARRANTY.

            6.1 SURVIVAL; LIABILITY.

                  (A) SURVIVAL. The representations and warranties contained in
this Agreement shall survive the sale, assignment and transfer to the Buyer of
the Interests and shall continue in full force and effect for twelve (12) months
following the Initial Closing, except that (i) the representations and
warranties contained in Sections 2.1, 2.3 and 2.4 shall survive forever and (ii)
the representations and warranties contained in Sections 2.10, 2.11 and 2.12
shall survive through the applicable statute of limitations (the "EXPIRATION
DATE"). The agreements and covenants contained in this Agreement shall survive
in accordance with their terms.

                  (B) NO EFFECT ON LIABILITY. None of (i) the consummation of
the Transactions, (ii) the delay or omission of any party to exercise any of its
rights under this Agreement or (iii) any investigation or disclosure that any
party makes, any notice that any party gives, or any knowledge that any party
obtains as a result thereof, or otherwise, shall (x) affect the liability of the
parties to one another for breaches of their covenants contained in this
Agreement, (y) affect the liability of the parties to one another for
misrepresentation under this Agreement, or (z) prevent any party from relying on
the representations contained in this Agreement.

            6.2 INDEMNITIES.

                  (A) SELLER' INDEMNITY. The Seller shall indemnify, defend and
hold harmless the Buyer and its officers, directors, employees, partners,
affiliates, agents, successors, subsidiaries and permitted assigns
(collectively, the "BUYER INDEMNIFIED GROUP") from and against any and all
liabilities, damages, obligations, claims and expenses (including, without
limitation, costs of investigation and defense and reasonable attorney's fees)
(collectively "LOSSES") that any member of the Buyer Indemnified

                                      -14-
<PAGE>

Group sustains or becomes subject to as a result of, arising out of or relating
to (i) the breach of any of the warranties or representations of the Seller made
herein, (ii) the breach of any covenants or agreements of the Seller made
herein, and (iii) any Third Party Claims (as defined in Section 6.2(C) below)
arising out of or relating to the ownership of the Interests, the operation of
the Partnerships and the conduct of the Business during the applicable ownership
period.

                  (B) THE BUYER'S INDEMNITY. The Buyer shall indemnify, defend
and hold harmless the Seller and its officers, directors, employees, partners,
affiliates, agents, successors, subsidiaries and permitted assigns
(collectively, the "SELLER INDEMNIFIED GROUP") from and against all Losses that
any member of the Seller Indemnified Group sustains or becomes subject to as a
result of (i) the breach of any of the warranties or representations of the
Buyer made herein, (ii) the breach of any of the covenants or agreements of the
Buyer made herein, and (iii) the ownership of the Interests, the operation of
the Partnerships and the conduct of the Business in any period subsequent to the
termination of the applicable ownership period.

                  (C) THIRD PARTY CLAIM. If any claim, action, suit or
proceeding is filed or initiated by a third party against any party entitled to
the benefit of indemnity hereunder (each, a "THIRD PARTY CLAIM"), written notice
thereof shall be given to the indemnifying party as promptly as practicable (and
in any event within three (3) business days after the service of the citation or
summons); provided, however, that the failure of any indemnified party to give
timely notice shall not affect rights to indemnification hereunder except to the
extent that the indemnifying party demonstrates actual damage caused by such
failure. After such notice, if the indemnifying party shall acknowledge in
writing to the indemnified party that the indemnifying party shall be obligated
under the terms of its indemnity hereunder in connection with such Third Party
Claim, then the indemnifying party shall be entitled, if it so elects, to take
control of the defense and investigation of such Third Party Claim and to employ
and engage attorneys of its own choice to handle and defend the same, such
attorneys to be reasonably satisfactory to the indemnified party, at the
indemnifying party's cost, risk and expense (unless (i) the indemnifying party
has failed to assume the defense of such Third Party Claim or (ii) the named
parties to such Third Party Claim include both of the indemnifying party and the
indemnified party, and the indemnified party and its counsel determine in good
faith that there may be one or more legal defenses available to such indemnified
party that are different from or additional to those available to the
indemnifying party and that joint representation would be inappropriate), and to
compromise or settle such Third Party Claim, which compromise or settlement
shall be made only with the written consent of the indemnified party, such
consent not to be unreasonably withheld. The indemnified party may withhold such
consent if such compromise or settlement would adversely affect the conduct of
business or requires less than an unconditional release to be obtained. If (i)
the indemnifying party fails to assume the defense of such Third Party Claim
within 15 days after receipt of notice thereof pursuant to this Section 6.2, or
(ii) the named parties to such Third Party Claim include both the indemnifying
party and the indemnified party and the indemnified party and its counsel
determine in good faith that there may be one or more legal defenses available
to such indemnified party that are different from or additional to those
available to the indemnifying party and that joint representation would be
inappropriate, the indemnified party against which such Third Party Claim has
been filed or initiated will (upon delivering notice to such effect to the
indemnifying party) have the right to participate, at the indemnifying party's
cost and expense, in the defense, compromise or settlement of such Third Party
Claim; provided, however, that such Third Party Claim shall not be compromised
or settled without the written consent of both the indemnified and the
indemnifying party, which consent shall not be unreasonably withheld. The
indemnifying party shall be liable for any settlement of any Third Party Claim
effected pursuant to and in accordance with this Section 6.2 and for any final
judgment (subject to any right of appeal), and the indemnifying party agrees to
indemnify and hold harmless the indemnified party from and against any Losses by
reason of such settlement or judgment.

                                      -15-
<PAGE>

      Regardless of whether the indemnified party participates in the defense,
the indemnifying party will pay reasonable costs and expenses in connection with
the defense, compromise or settlement for any Third Party Claim under this
Section 6.2.

                  (D) COOPERATION. The indemnified party shall cooperate in all
reasonable respects with the indemnifying party and such attorneys in the
investigation, trial and defense of such Third Party Claim and any appeal
arising therefrom; provided, however, that the indemnified party may, at its own
cost, participate in the investigation, trial and defense of such Third Party
Claim and any appeal arising therefrom. The indemnifying party shall pay all
reasonable expenses due under this Section 6.2 as such expenses become due. In
the event such expenses are not so paid, the indemnified party shall be entitled
to settle any Third Party Claim under this Section 6.2 without the consent of
the indemnifying party and without waiving any rights the indemnified party may
have against the indemnifying party.

                  (E) LIMITATIONS ON INDEMNIFICATION OF BUYER INDEMNIFIED GROUP.
Claims for indemnification by the Buyer Indemnified Group under Section 6.2(A)
hereof shall be limited as follows:

                        (1) Any claim for indemnification by the Buyer
Indemnified Group under Section 6.2(A)(i) hereof shall be made on or before the
applicable Expiration Date (if any); and

                        (2) Except for any claim for indemnification by the
Buyer Indemnified Group relating to a breach of the representations or
warranties contained in Sections 2.1, 2.3 or 2.4, as to which this Section
6.2(E)(2) shall not apply, Seller shall not be liable to the Buyer Indemnified
Group for any claims for indemnification made by the Buyer Indemnified Group
under Section 6.2(A)(i) hereof until the aggregate amount of Losses with respect
to such claims exceeds $50,000, and then only to the extent such indemnification
claims exceed such amount; and

                        (3) Except for any claim for indemnification by the
Buyer Indemnified Group relating to a breach of the representations or
warranties contained in Sections 2.1, 2.3 or 2.4, as to which this Section
6.2(E)(3) shall not apply, the aggregate liability of Seller for Losses under
Section 6.2(A) shall be limited to $50,000.

                  (F) REMEDIES. Except with respect to claims based on fraud or
willful misconduct, the parties hereto acknowledge and agree that the indemnity
obligations set forth above shall be the exclusive remedy of the indemnified
parties with respect to the Transactions.

            6.3 EQUIPMENT WARRANTY.

                  (A) WARRANTY ITEMS. The Seller hereby warrants to the Buyer
that the Partnerships Equipment (the "WARRANTY ITEM(S)") are, and will be as of
the Closing and throughout the Warranty Period (as defined below), in good
operating condition and repair (subject to normal wear and tear). The Buyer's
exclusive remedy as to the Warranty Items shall be limited to repair of the
applicable Warranty Item by the Seller. The Buyer shall provide prompt notice to
the Seller of any Warranty Item which requires repair following the Buyer's
knowledge thereof, and in all events sufficiently promptly to minimize any
further damage to such Warranty Item.

                  (B) LIMITATION ON WARRANTY. Except as otherwise provided in
this Section 6.3, the Buyer acknowledges and agrees that the provisions of the
warranties given under this Section 6.3 constitute the sole and exclusive remedy
available to it with respect to defective Warranty Items. Except for the
warranties provided in this Section 6.3, all warranties, whether expressed,
implied or statutory, are hereby expressly excluded and disclaimed by the
Seller. The warranty as to the Warranty Items set forth in Section 6.3(A) above
shall only be valid with respect to warranty claims submitted by the Buyer
within

                                      -16-
<PAGE>

the sixty (60) day period commencing as to each such Warranty Item as of the
Closing (the "WARRANTY PERIOD"). The warranty set forth in this Section 6.3
shall not apply to the extent any breach of warranty is directly attributable to
any damage or casualty occurring during the Buyer's ownership of the Warranty
Items, or due to the Buyer's failure to maintain any Warranty Item.

      7.    FURTHER ASSURANCES AND COOPERATION.

      Following the Closings, the Seller and Buyer shall each promptly execute,
deliver and/or file such documents, and promptly take such other actions (at the
requesting party's expense, unless otherwise provided in this Agreement), as
shall be reasonably requested by the other party to effectuate the Transactions,
including, without limitation, if requested by Buyer, executing, delivering
and/or filing amendments to the Partnership Organizational Documents to reflect
the consummation of the Transactions and causing the execution, delivery and/or
filing of such documents and amendments by the holders (other than Buyer) of
equity or ownership interests in the Partnerships.

      8.    CONFIDENTIALITY; MARKET STANDSTILL.

            8.1 CONFIDENTIALITY.

                  (A) From and after the date hereof and through the Initial
Closing Date, neither the Seller and the Partnerships, on the one hand, nor
Buyer, on the other hand (such party, as applicable, for the purpose of this
Section 8.1, the "DISCLOSING PARTY") shall, without the prior written consent of
the other party (for the purpose of this Section 8.1, the "NON-DISCLOSING
PARTY"), disclose to any person Confidential Information (as defined below) of
the Non-disclosing Party, except to a Disclosing Party's affiliates, employees,
financial advisers, lenders, or Representatives who need to know such
information for any reason contemplated by this Agreement (and then only to the
extent that such persons are under an obligation to maintain the confidentiality
of the Confidential Information), or use any Confidential Information of the
Non-disclosing Party for any reason other than contemplated by this Agreement
unless such Disclosing Party has (i) consulted with the Non-disclosing Party and
obtained the Non-disclosing Party's prior written consent, and (ii) been advised
by counsel that disclosure is required to be made under applicable legal
requirements or the requirements of a national securities exchange or another
similar regulatory body. In the event that the Disclosing Party is requested or
required by documents, subpoena, civil investigative demand, interrogatories,
requests for information, or other similar process to disclose any Confidential
Information, the Disclosing Party shall provide the Non-disclosing Party with
prompt written notice of such request or demands or other similar process so
that the Non-disclosing Party may seek an appropriate protective order or, if
such request, demand or other similar process is mandatory, waive the Disclosing
Party's compliance with the provisions of this Section 8.1(A) as appropriate.

                  (B) The term "CONFIDENTIAL INFORMATION" as used herein means
(i) as to Buyer, all confidential information relating to Buyer's business and
operations, and (ii) as to Seller, all confidential information relating to the
business and operations of the Seller and its affiliates in each of (i) and (ii)
whether disclosed prior to or after the date hereof. The term "Confidential
Information" does not include information which becomes generally available to
the public other than as a result of disclosure by the Disclosing Party, or
becomes available to the Disclosing Party on a non-confidential basis from a
source other than the Non-disclosing Party, provided that such source is not
bound by a confidentiality agreement with the Non-disclosing Party; provided,
however, the term "Confidential Information" does not include information which
becomes generally available to the public other than as a result of disclosure
by the Disclosing Party, or becomes available to the Disclosing Party on a
non-confidential basis from a source other than the Non-disclosing Party,
provided that such source is not bound by a confidentiality agreement with the
Non-disclosing Party.

                                      -17-
<PAGE>

            8.2 PUBLIC ANNOUNCEMENTS.

      Neither the Buyer nor the Seller shall issue any press release or
otherwise make any public statements with respect to the Transactions without
the prior consent of Buyer (in the case of the Seller) or the Seller (in the
case of Buyer), except as may be required by applicable law, including any
determination by Seller that a press release or other public statement is
required under applicable securities or regulatory rules. If any party
determines, with the advice of counsel, that it is required by applicable law to
make this Agreement or any terms thereof public, it shall consult with the other
parties regarding such disclosure and seek confidential treatment for such terms
or portions of this Agreement as may be requested by the other parties.

      9.    GENERAL PROVISIONS.

            9.1 TERMINATION.

      This Agreement may be terminated and the Transactions may be abandoned at
any time prior to the Initial Closing whether before or after approval and
adoption of this Agreement:

                  (A) by written consent of Buyer and the Seller;

                  (B) by Buyer or the Seller if (i) any court of competent
jurisdiction in the United States or other United States federal or state
governmental entity shall have issued an order, decree, ruling or other action
restraining, enjoining or otherwise prohibiting the Transactions and such order,
decree, ruling or other action is or shall have become non-appealable, or (ii)
the Transactions have not been consummated by January 31, 2005 (the "FINAL
DATE"); provided that no party may terminate this Agreement pursuant to this
clause (ii) if such party's failure to fulfill any of its obligations under this
Agreement or the Transactions shall have been a principal reason that the
Initial Closing shall not have occurred on or before the Final Date.

                  (C) by the Seller if (i) there shall have been a breach in any
material respect of any representations or warranties on the part of Buyer set
forth in this Agreement or if any representations or warranties of Buyer shall
have become untrue in any material respect, provided that the Seller has not
breached any of its obligations hereunder in any material respect; or (ii) there
shall have been a breach by Buyer of any of its covenants or agreements
hereunder in any material respect or materially adversely affecting (or
materially delaying) the ability of Buyer or the Seller to consummate the
Transactions, and Buyer has not cured such breach within ten (10) business days
after written notice by the Seller thereof, provided that the Seller has not
breached any of its obligations hereunder in any material respect; or

                  (D) by the Buyer if (i) there shall have been a breach in any
material respect of any representations or warranties on the part of the Seller
set forth in this Agreement or if any representations or warranties of the
Seller shall have become untrue in any material respect, provided that Buyer has
not breached any of its obligations hereunder in any material respect; or (ii)
there shall have been a breach by the Seller of one or more of its covenants or
agreements hereunder in any material respect or materially adversely affecting
(or materially delaying) the ability of the Buyer or the Seller to consummate
the Transactions, and the Seller has not cured such breach within ten (10)
business days after notice by the Buyer thereof, provided that Buyer has not
breached any of its obligations hereunder in any material respect.

            9.2 EFFECTS ON TERMINATION. In the event of the termination and
abandonment of this Agreement pursuant to Section 9.1 above, this Agreement
shall forthwith become void and have no effect

                                      -18-
<PAGE>

without liability on the part of any party hereto or its affiliates other than
the provisions of this Section 9.2 and Sections 8, 9.3, 9.7, 9.8, 9.15 and 9.16.

            9.3 REIMBURSEMENT OF BUYER'S THIRD PARTY EXPENSES. In the event
Buyer terminates this Agreement pursuant to Section 9.1(D)(ii) as a result of
the Seller' breach of Section 4.7 hereof, the Seller shall promptly pay to Buyer
in cash, as liquidated damages and not as a penalty, the amount of Buyer's Third
Party Expenses (notwithstanding Section 9.15 hereof) related to this Agreement
and the Transactions, up to a maximum amount of $25,000.

            9.4 NOTICES. All notices and other communications hereunder shall be

in writing and shall be delivered personally (including express courier) or sent
by telecopy (and promptly confirmed by mail) or sent by prepaid registered or
certified mail (return receipt requested) or by overnight delivery by a
nationally recognized overnight courier to the parties at the following
addresses:

                  (A)   if to the Buyer, to:
                        Advanced Medical Partners, Inc.
                        700 Highlander Boulevard,Suite 420
                        Arlington, Texas 76015
                        Attn: Christopher J. Ringel, President
                        Telecopier: (817) 465-3989

                        with a copy to:

                        Haynes and Boone, LLP
                        201 Main Street, Suite 2200
                        Fort Worth, Texas 76102
                        Attention: William D. Greenhill
                        Telecopier:  (817) 347-6650

                  (B)   if to the Seller, to:
                        Endocare, Inc.
                        201 Technology Drive
                        Irvine, California 92618
                        Attention: Chief Executive Officer
                        Telecopier: (949) 450-5302

                        with a copy to:

                        Morrison & Foerster LLP
                        3811 Valley Centre Drive, Suite 500
                        San Diego, California 92130
                        Attention:  Steve Rowles
                        Telecopier:  (858) 720-5125

Notices sent as aforesaid shall be deemed given and effective upon receipt. Any
party (and any other person or entity designated to receive notice) may change
its address or telecopy number for notice by delivery to all other parties of
notice to such effect in the manner set forth herein.

            9.5 ENTIRE AGREEMENT. This Agreement (including the exhibits,
schedules (including Seller Disclosure Schedule), documents and instruments
referred to or incorporated herein) constitutes the entire agreement, and
supersedes all other prior agreements and undertakings (including
representations

                                      -19-
<PAGE>

and warranties), both written and oral, among the parties with
respect to the subject matter hereof and thereof.

            9.6 THIRD PARTIES; ASSIGNMENT. This Agreement is not intended to
confer upon any person other than the parties hereto any rights or remedies
hereunder. The Seller may not assign this Agreement or any interest therein
without the prior written consent of the Buyer. The Buyer may assign this
Agreement or any interest therein without the consent of the Seller.

            9.7 GOVERNING LAW. This Agreement shall be governed in all respects,
including validity, interpretation and effect, by the laws of the State of
Delaware (without regard to principles of conflicts of law).

            9.8 CONSENT TO JURISDICTION AND FORUM SELECTION. The Buyer and the
Seller irrevocably agrees that any legal action or proceeding with respect to
this Agreement or for the recognition and enforcement of any judgment in respect
hereof brought by the other party hereto or its successors or assigns will be
brought and determined in the Chancery or other courts of the State of Delaware,
and the Buyer and the Seller hereby irrevocably submit with regard to any such
action or proceeding for itself and in respect to its property, generally and
unconditionally, to the exclusive jurisdiction of the aforesaid courts. The
Buyer and Seller hereby irrevocably waive and agree not to assert, by way of
motion, as a defense, counterclaim or otherwise, in any action or proceeding
with respect to this Agreement, (a) any claim that it is not personally subject
to the jurisdiction of the above-named courts for any reason other than the
failure to lawfully serve process, (b) that it or its property is exempt or
immune from jurisdiction of any such court or from any legal process commenced
in such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment or otherwise),
(c) to the fullest extent permitted by applicable law, that (i) the suit, action
or proceeding in any such court is brought in an inconvenient forum, (ii) the
venue of such suit, action, or proceeding is improper and (iii) this Agreement,
or the subject matter hereof, may not be enforced in or by such courts and (d)
any right to trial by jury.

            9.9 COUNTERPARTS. This Agreement may be executed in two or more
counterparts which together shall constitute a single agreement.

            9.10 CERTAIN DEFINITIONS

                  (A) "AFFILIATE". For purposes of this Agreement an "AFFILIATE"
of the Seller or the Partnerships (or any of them) or the Buyer is a person that
directly, or through one or more intermediaries, controls, or is controlled by,
or is under common control with the Seller or the Partnerships (or any of them)
or Buyer, as the case may be. "CONTROL" (including the terms "controlled by" and
"under common control with") means the possession, directly or indirectly of the
power to direct or cause the direction of the management or policies of a
person, whether through the ownership of stock or other interests, by contract,
credit arrangement, or otherwise.

                  (B) "OWNERSHIP PERIOD". For purposes of the Agreement, the
"OWNERSHIP PERIOD" shall mean the period of time commencing on October 1, 2002,
and ending on the Closing Date.

                  (C) "PERSON". For purposes of this Agreement a "PERSON" means
any natural person, corporation, general partnership, limited partnership,
limited liability company, proprietorship, other business organization, trust,
union, association or Authority.

                  (D) "KNOWLEDGE". For purposes of this Agreement "KNOWLEDGE OF
THE SELLER" means the knowledge of each of the officers and directors of the
Seller. Each such individual will be

                                      -20-
<PAGE>

deemed to have Knowledge of a particular fact or other matter if: (i) such
individual is actually aware of such fact or other matter; or (ii) a prudent
individual could be expected to discover or otherwise become aware of such fact
or other matter in the course of conducting a reasonable investigation
concerning the existence of such fact or other matter.

                  (E) "SELLER SEC REPORTS". For purposes of this Agreement, all
forms, reports and documents filed by the Seller with the Securities and
Exchange Commission are referred to collectively as the "SELLER SEC REPORTS."

            9.11 AMENDMENT. This Agreement may only be amended by an instrument
in writing signed by the parties hereto.

            9.12 WAIVER. Any term or provision of this Agreement may be waived
at any time by the party or parties entitled to the benefits thereof but (A) no
such waiver shall be effective unless in writing and signed by the party claimed
to have made such waiver, and (B) no waiver of any term, provision or breach of
this Agreement shall operate or be construed as a waiver of the same or any
other term or provision, or any other breach of this Agreement, on any other
occasion.

            9.13 SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future law, and if the
rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(iii) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (iv) in lieu of such illegal, invalid
or unenforceable provision, there will be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible and mutually
acceptable to the parties herein.

            9.14 CONSTRUCTION. No provision of this Agreement shall be construed
in favor of or against any party on the ground that such party or its counsel
drafted the provision. Except as otherwise provided herein, any remedies
provided for herein are not exclusive of any other lawful remedies which may be
available to either party. This Agreement shall at all times be construed so as
to carry out the purposes stated herein.

            9.15 EXPENSES. Whether or not the Transactions are consummated, all
fees, costs and expenses incurred in connection with the Transactions, this
Agreement and the other agreements and transactions contemplated hereby and
thereby, including all legal, accounting, financial advisory, broker's
consulting and other fees and expenses of third parties incurred by a party in
connection with the negotiation, documentation and effectuation of the terms and
conditions of the Transactions, this Agreement and the other agreements and
transactions contemplated hereby and thereby ("THIRD PARTY EXPENSES"), shall be
the obligation of the respective party incurring such Third Party Expenses. For
further clarity, the parties hereto understand and agree that any Third Party
Expenses incurred by or on behalf of the Partnerships shall be the obligation of
the Seller.

            9.16 ATTORNEYS FEES. In the event any action is brought for
enforcement or interpretation of this Agreement, the prevailing party shall be
entitled to recover reasonable attorneys fees and costs incurred in said action.

                                      -21-
<PAGE>

                  [Remainder of page intentionally left blank.]

                                      -22-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                        SELLER:

                        ENDOCARE, INC., a Delaware corporation

                        By: /s/ Craig T. Davenport
                            ------------------------
                        Name: /s/ Craig T. Davenport
                              ----------------------
                        Title: /s/ CEO
                               ---------------------
                        BUYER:

                        ADVANCED MEDICAL PARTNERS, INC., a Delaware corporation

                        By: /s/ Chris Ringel
                            -------------------
                        Name: /s/ Chris Ringel
                              -----------------
                        Title: /s/ President
                               ----------------

                                      -23-
<PAGE>

                                  SCHEDULE 1.1

      GENERAL PARTNERSHIP AND LIMITED PARTNERSHIP INTERESTS TO BE PURCHASED

<TABLE>
<CAPTION>
                                                                    TYPE OF               PERCENTAGE
ENTITY NAME                                                        INTEREST                OWNERSHIP
-----------                                                        --------                ---------
<S>                                                             <C>                       <C>
Atlantic Cryotherapy, LP................................        General Partner              20.0%
Atlantic Cryotherapy, LP................................        Limited Partner             14.36%
Central States Cryotherapy, LP..........................        General Partner              20.0%
Central States Cryotherapy, LP..........................        Limited Partner              35.0%
East Coast Cryotherapy, LP..............................        General Partner              20.0%
East Coast Cryotherapy, LP..............................        Limited Partner              60.0%
East Michigan Cryotherapy, LP...........................        General Partner              20.0%
East Michigan Cryotherapy, LP...........................        Limited Partner              80.0%
Georgia Cryotherapy, LP.................................        General Partner              20.0%
Georgia Cryotherapy, LP.................................        Limited Partner              45.0%
Mid-America Cryotherapy, LP.............................        General Partner              20.0%
Mid-America Cryotherapy, LP.............................        Limited Partner               0.0%
Rocky Mountain Cryotherapy, LP..........................        General Partner              20.0%
Rocky Mountain Cryotherapy, LP..........................        Limited Partner              59.0%
Sabine Cryotherapy, LP..................................        General Partner              20.0%
Sabine Cryotherapy, LP..................................        Limited Partner              80.0%
South Coast Cryotherapy, LP.............................        General Partner              20.0%
South Coast Cryotherapy, LP.............................        Limited Partner              80.0%
</TABLE>

                                       -24-Travelzoo, Inc. Exhibit 10.1 to Form 8K

EXHIBIT 10.1

INSERTION ORDER/ADVERTISING AGREEMENT 

This advertising agreement, including
the Terms and Conditions set forth in an attachment, is entered into by and between
Travelzoo Inc. (“Travelzoo”) and the Advertiser specified below
(“Advertiser”). 

	Advertiser:
Advertised Site:

 Contacts:

Address:
Phone:
E-mail:
Travelzoo Contacts:
Campaign Manager:	 Orbitz, LLC
Orbitz
– www.orbitz.com 
 Mr. Michael Stein (Business Development Contact);

                           Ms. Blagica Stefanovski (Technical & Traffic Contact)

                   200 South Wacker Drive, Suite 1900, Chicago, IL  60606

                     (312) 894-4748          Fax:       (312) 894-5001 or (413) 513-2141

                    mstein@orbitz.com; bstefanovski@orbitz.com
Holger Bartel (650) 943-2411 – holgerb@travelzoo.com
Steve
Clarke (650) 943-2419 – stevec@travelzoo.com 

Program Term  – August 1,
2002 through July 31, 2003 

	Type and Placements: 	Cost 	  

	Text and/or graphical advertisements:

— Travelzoo home page (“Sales in the Spotlight”) – select dates

— Air Travel, Lodging, Vacation, Cruises and other relevant sections

— E-mail newsletters

    (all Top 20 Inclusions subject to approval by Travelzoo Editorial Team)   	$.60 per click  	  

	Target: 		  	  
	August - December 2002: 	200,000 clicks/month	$120,000 per month 	  
	January - July 2003: 	250,000 clicks/month  	$150,000 per month	  

Additional Services/Notes:

Should Travelzoo deliver more
click-throughs than set forth in the above schedule, Advertiser will be billed for the
dollar amounts set forth above plus $0.60 for each click-through actually delivered in
excess of the targets set above; provided, however, that in no event will
Advertiser’s payment obligations under this agreement exceed $1,980,000. Should, for
any reason, Travelzoo fail to deliver the target click-throughs as set forth above,
Advertiser will only be billed for click-throughs actually delivered at a rate of $0.60
per click-through. Advertising placements on the Web site or in Travelzoo’s
newsletters will be determined by Travelzoo. 

Cancellation: Upon 90
days’ prior notice to the other party, Advertiser or Travelzoo may at any time and
for any reason cancel this agreement. If Advertiser or Travelzoo exercise this right of
cancellation, Advertiser will only be billed for click-throughs actually delivered in any
given month after such cancellation at a rate of $0.60 per click-through. 

Billing Information:
As set forth in the Terms and
Conditions of this agreement, Advertiser will be invoiced at the end of each calendar
month for actual number of click-throughs delivered during that month. Payment shall be
made to Travelzoo within thirty (30) days from the receipt of invoice. See Terms &
Conditions for further details. All rates are net. 

We hereby agree to the foregoing, and
the attached Terms and Conditions (Annex A). 

For Advertiser: 

	Date: 	   7/23/02	  	Authorized Signature: 	     /s/ Mike Sands	
		
 			
 	

			  	Printed Name & Title:	     Mike Sands, CMO	
					
 	

			  	Printed Company Name:	     Orbitz, LLC	
					
 	

For Travelzoo: 

	Date: 	  July 19, 2002	  	Authorized Signature: 	     /s/ H. Bartel	
		
 			
 	

			  	Printed Name & Title:	     H. Bartel, Executive VP	
					
 	

			  	Printed Company Name:	     Travelzoo Inc.	
					
 	

ANNEX A: Terms and
Conditions for

Advertising Agreement between Travelzoo and Orbitz, LLC (“Advertiser”)

For August 1, 2002 – July 31, 2003 Program Flight 

The following terms and conditions
(the “Terms”) shall be deemed to be incorporated into the insertion
order/advertising agreement for Advertiser’s August 1, 2002 – July 31, 2003
advertising campaign (the “Insertion Order”): 

     	1. 	
          Terms of payment. This is a cost-per-click agreement, and Advertiser will be
          billed only for click-throughs actually delivered. Travelzoo will invoice
          Advertiser at the end of each month during the term of this agreement for click-
          throughs actually delivered, as set forth n the Insertion Order; provided,
          however, that the total payments during the term of this agreement shall not
          exceed $1,980,000, unless otherwise agreed to in writing. Payment shall be made
          to Travelzoo within thirty (30) days from the receipt of invoice (“Due
          Date”). Amounts paid after the Due Date shall bear interest at the rate of
          one percent (1%) per month (or the highest rate permitted by law, if less). In
          the event Advertiser fails to make timely payment, Advertiser will be
          responsible for all reasonable expenses (including attorneys’ fees)
          incurred by Travelzoo in collecting such amounts. Travelzoo reserves the right
          to suspend performance of its obligations hereunder (or under any other
          agreement with Advertiser) in the event Advertiser fails to make timely payment
          hereunder or under any other agreement with Travelzoo. 

          

     	2. 	
          Positioning. Except for the positions expressively defined in the Insertion
          Order, positioning of advertisements on Travelzoo are determined by Travelzoo
          unless Advertiser has objected to certain positions. Travelzoo may, at its sole
          discretion, remove from the Insertion Order (and substitute with similar
          inventory) any keyword or category page that it reasonably believes to be a
          trademark, trade name, company name, product name or brand name belonging to or
          claimed by a third party. 

          

     	3. 	
          Usage Statistics. Unless specified in the Insertion Order, Travelzoo makes no
          guarantees with respect to usage statistics or levels of impressions for any
          advertisement. Advertiser acknowledges that delivery statistics provided by
          Travelzoo are the official measurements of Travelzoo’s performance on any
          delivery obligations provided in the Insertion Order. The processes and
          technology used to generate such statistics can be audited by the Advertiser or
          an independent agency. Click-throughs will also be tracked and reported by
          Advertiser’s third party ad server (currently DoubleClick DART), and
          Travelzoo will be given access to all third party numbers continuously
          throughout the length of this agreement. In the event there is a discrepancy of
          greater than 5% between the click-throughs reported by Travelzoo and the
          click-throughs reported by advertiser’s third party ad server for any month
          (“Discrepancy”), Advertiser’s payment obligations shall be
          reduced by an amount equal to the Discrepancy (provided that Advertiser shall
          provide documentation of such Discrepancy with its payment). 

          

     	4. 	
          Renewal. Except as expressly set forth in the Insertion Order, any renewal of
          the Insertion Order shall be upon mutual agreement only, and acceptance of any
          additional advertising order shall be at Travelzoo’s sole discretion.
          Pricing for any renewal period is subject to change by Travelzoo from time to
          time prior to commencement of such renewal period. 

          

     	5. 	
          No Assignment or Resale of Ad Space. Neither party shall resell, assign, or
          transfer any of its rights hereunder without the prior approval of the other
          party, and any attempt to resell, assign or transfer such rights without such
          approval shall result in immediate termination of this agreement, without
          liability to the terminating party. 

          

     	6. 	
          Limitation of Liability. In the event (1) Travelzoo fails to publish an
          advertisement in accordance with the schedule provided in the Insertion Order,
          (2) Travelzoo fails to deliver the number of total page views specified in the
          Insertion Order (if any) by the end of the specified period, or (3) of any other
          failure, technical or otherwise, of such advertisements to be delivered as
          provided in the Insertion Order, the sole liability of Travelzoo to Advertiser
          shall be limited to, at Travelzoo’s sole discretion, a pro rata refund of
          the advertising fee representing undelivered page views, placement of the
          advertisement at a later time in a comparable position, or extension of the term
          of the Insertion Order until total page views are delivered. In no event shall
          either party be responsible for any consequential, special, punitive or other
          damages, including, without limitation, lost revenue or profit, in any way
          arising out of or related to the Insertion Order/Terms or publication of the
          advertisement, even if such party has been advised of the possibility of such
          damages. Without limiting the foregoing, neither party shall have any liability
          for any failure or delay resulting from any government action, fire, flood,
          insurrection, earthquake, power failure, riot, explosion, embargo, strikes
          whether legal or illegal, labor material shortage, transportation interruption
          of any kind, work slowdown or any other condition beyond the reasonable control
          of such party affecting production or delivery in any manner. IN NO EVENT SHALL
          EITHER PARTY’S LIABILITY EXCEED THE TOTAL AMOUNT PAID BY ADVERTISER
          HEREUNDER. 

          

	– 1 – 
	(CONTINUED)

     	7. 	
          Representations. Advertisements are accepted upon the representation that
          Advertiser has the right to publish the contents of the advertisement without
          infringing the rights of any third party and without violating any law.
          Travelzoo will use commercially reasonable efforts to deliver a number of
          impressions reasonably calculated to produce the number of click-through
          promised in the Insertion Order. Travelzoo shall use commercially reasonable
          efforts to ensure the advertisements are not placed in any context that harm the
          goodwill or reputation of Advertiser or that disparages or brings Advertiser
          into disrepute, including, but not limited to web sites that contain indecent,
          illegal, misleading, harmful, abusive, harassing, libelous, defamatory, or other
          offensive materials. If Advertiser requests that its advertisements be removed
          from or not placed in any such context, Travelzoo will use commercially
          reasonable efforts to comply with such request promptly. 

          

     	8. 	
          Indemnification. Advertiser agrees, at its own expense, to indemnify, defend,
          and hold harmless Travelzoo and its employees, representatives, agents and
          affiliates, against any and all expenses and losses of any kind (including
          reasonable attorneys’ fees and costs) incurred by Travelzoo in connection
          with any third-party claims, administrative proceedings or criminal
          investigations of any kind arising out of publication of the advertisement
          and/or any material product or service of Advertiser to which users can link
          through the advertisement (including, without limitation, any claim of trademark
          or copyright infringement, defamation, breach of confidentiality, privacy
          violation, false or deceptive advertising or sales practices). Travelzoo agrees,
          at its own expense, to indemnify, defend, and hold harmless Advertiser and its
          employees, representatives, agents and affiliates, against any and all expenses
          and losses of any kind (including reasonable attorneys’ fees and costs)
          incurred by Advertiser in connection with any third-party claims, administrative
          proceedings or criminal investigations of any kind arising out; (a) of any
          content, material, product or service available on a Travelzoo property that was
          not provided by or obtained from Advertiser (including, without limitation, any
          claim of trademark or copyright infringement, defamation, breach of
          confidentiality, privacy violation, false or deceptive advertising or sales
          practices), or (b) Travelzoo’s breach of any duty, representation, or
          warranty under this agreement. All indemnities provided by Advertiser under this
          agreement are conditioned on the following: (a) Advertiser shall have sole
          control over the defense of any claim covered by the indemnity; (b) Travelzoo
          shall promptly report the existence of any claim or potential claim covered by
          the indemnity; (c) Travelzoo shall not materially alter any advertising
          materials supplied to it by Advertiser or on its behalf. All indemnities
          provided by Travelzoo under this agreement are conditioned on the following: (a)
          Travelzoo shall have sole control over the defense of any claim covered by the
          indemnity; (b) Advertiser shall promptly report the existence of any claim or
          potential claim covered by the indemnity; and (c) Advertiser shall provide full
          and reasonable cooperation with Travelzoo’s investigation and defense of
          such claim. 

          

     	9. 	
          Provision of Advertising Materials. Advertiser will provide all materials for
          the advertisement in accordance with Travelzoo’s policies in effect from
          time to time, including (without limitation) the manner of transmission to
          Travelzoo and the lead-time prior to publication of the advertisement. Travelzoo
          shall not be required to publish any advertisement that is not received in
          accordance with such policies and reserves the right to charge Advertiser, at
          the rate specified in the Insertion Order (if any, for inventory held by
          Travelzoo pending receipt of acceptable materials from Advertiser which are past
          due. Advertiser hereby grants to Travelzoo a non-exclusive, worldwide, fully
          paid license to use, reproduce and display the advertisement (and the contents,
          trademarks and brand features contained therein) in accordance herewith. 

          

     	10. 	
          Right to Reject Advertisement. All contents of advertisements are subject to
          Travelzoo’s approval, which shall not be unreasonably withheld. Travelzoo
          reserves the right to reject or cancel any advertisement, insertion order, URL
          link, space reservation or position commitment, at any time, in accordance with
          its policies generally applicable to all its advertisers (including belief by
          Travelzoo that placement of advertisement, URL link, etc., may subject Travelzoo
          to criminal or civil liability). 

          

     	11. 	
          Cancellations and Termination. The agreement’s cancellation policy is set
          forth in the Insertion Order. Notwithstanding anything in the Insertion Order,
          in the event that either party breaches the terms of this agreement and fails to
          cure such breach within fifteen (15) days of receiving notice of such breach,
          the non-breaching party will have the right to terminate this agreement
          immediately without any further liability to the breaching party; provided,
          however, that payments due prior to such termination shall remain payable in
          accordance with Section 1 hereof. 

          

     	12. 	
          Notices. All notices required or permitted under this agreement shall be in
          writing and shall be deemed delivered when delivered in person or mailed
          certified through the United States Postal Service, postage prepaid, or via
          FedEx addressed as follows: 

          

	  	If
to Travelzoo: 	Travelzoo Inc. 
Attn:Contracts Department
300 West El Camino Road,
Suite 180
Mountain View, CA 94040 

	– 2 – 
	(CONTINUED)

	  	If
to Advertiser:	Orbitz, LLC
Attn:  Michael Stein
200 South Wacker Drive, Suite 1900

Chicago, IL 60606

     	13. 	
          Construction. No conditions other than those set forth in the Insertion Order or
          these Terms shall be binding on either party unless expressly agreed to in
          writing by such party. In the event of any inconsistency between the Insertion
          Order and the Terms, the Terms shall control. 

          

     	14. 	
          Miscellaneous. These Terms, together with the Insertion Order, (1) shall be
          governed by and construed in accordance with, the law of the State of
          California, without giving effect to principles of conflicts of law; (2) may be
          amended only by a written agreement executed by an authorized representative of
          each party; and (3) constitute the complete and entire expression of the
          agreement between the parties, and shall supersede any and all other agreements,
          whether written or oral, between the parties. Advertiser shall make no public
          announcement regarding the existence or content of the Insertion Order without
          Travelzoo’s written approval, which may be withheld at Travelzoo’s
          sole discretion. Both parties consent to the jurisdiction of the courts of the
          State of California with respect to any legal proceeding arising in connection
          with the Insertion Order/Terms. In performing their obligations under this
          agreement, the parties will comply with all applicable laws concerning data
          privacy, the use of personally identifiable information, and unsolicited
          commercial e-mail. Each party represents and warrants that it will comply with
          the privacy policy published on its site. Travelzoo shall not provide incentives
          to users (such as prizes, points, rewards, or other encouragements) to click
          through to Advertiser, unless such incentives are part of the Advertiser’s
          offer being published via Travelzoo. 

          

     	15. 	
          Third Party Ad Serving. If Travelzoo has approved the use by Advertiser of a
          third party ad server (Third Party Ad Server) in connection with this Insertion
          Order, the following provisions shall also apply:
 (1)   The Advertiser shall post
          each advertisement to a staging area and shall notify Travelzoo of such posting
          at least four (4) business days prior to the date on which Third Party Ad Server
          is scheduled to serve such advertisement to a Travelzoo property. Such
          advertisement shall be reviewed by Travelzoo and must be approved in writing by
          Travezoo before it can be served by Third Party Ad Server. In accordance with
          Section 10, Travelzoo reserves the right to reject any advertisement or any
          element thereof.
 (2)   The Advertiser shall post all scheduling changes, new
          target URLs, new HTML specifications, new graphics and all other new or revised
          advertisements (“Revisions”) to a staging area and shall notify
          Travelzoo of such postings at least four (4) days prior to the date Advertiser
          wishes such Revisions to take effect. Revisions shall not be implemented until
          approved by Travelzoo in writing, which approval shall be in accordance with
          Travelzoo’s policies generally applied to its advertisers.
 (3)   If
          Advertiser discovers that Advertiser or Third Party Server has served, or caused
          to be served, an advertisement to a Travelzoo property in violation of this
          Agreement, Advertiser must immediately provide notice to Travelzoo of the
          violation (along with a written explanation) and remove the advertisement from
          its placement or rotation to the Travelzoo properties. Nothing in this Section
          shall limit any of Travelzoo’s rights or remedies in the event of such
          breach.
 (4)   In the event Travelzoo exercises its right to cancel an
          advertisement in accordance with Section 10 hereof, Travelzoo shall notify
          Advertiser in writing. The Advertiser must cause the advertisement to be removed
          from the Travelzoo properties and from its advertising rotation no later than
          two (2) business days after written notification by Travelzoo. 

          

	Accepted: 	  	  	  

	For Travelzoo: 	  	For Advertiser: 	  

	     /s/ H. Bartel	  	     /s/ Mike Sands 	  
	
 	 	
 	 

	– 3 – 

INSERTION ORDER/ADVERTISING AGREEMENT 

This advertising agreement, including
the Terms and Conditions set forth in an attachment, is entered into by and between
Travelzoo Inc. (“Travelzoo”) and the Advertiser specified below
(“Advertiser”). 

	Advertiser:
Advertised Site:

 Contacts:

Address:
Phone:
E-Mail:
Travelzoo Contacts:
Producer:	 Orbitz, LLC
Orbitz
– www.orbitz.com 
Mr. Michael Stein (Business Development Contact);

                           Ms. Blagica Stefanovski (Technical & Traffic Contact)

                   200 South Wacker Drive, Suite 1900, Chicago, IL  60606

                     (312) 894-4748          Fax:       (312) 894-5001 or (413) 513-2141

                    mstein@orbitz.com; bstefanovski@orbitz.com
Holger Bartel (650) 943-2411 – holgerb@travelzoo.com
Steve
Clarke (650) 943-2419 – stevec@travelzoo.com 

Program Term   – 
August 1, 2003 through July 31, 2004 

	Type and Placements: 	Cost 	  

	(1) Hotel, Resort and other Lodging Offers
Text and/or graphical advertisements:

— Travelzoo home page (“Sales in the Spotlight”) – select dates

— Lodging and other relevant sections

— E-mail newsletters

    (all Top 20 Inclusions subject to approval by Travelzoo Editorial Team)   	$.80 per click  	  

	Target for Hotel, Resort, and Lodging Offers: 

	August - September 2003: 	100,000 clicks/month	$80,000 per month 	  
	October 2003 - July 2004: 	80,000 clicks/month  	$64,000 per month	  

	(2) Airfare, Car rental and any other, non-lodging offers
Text and/or graphical advertisements:

— Travelzoo home page (“Sales in the Spotlight”) – select dates

— Lodging and other relevant sections

— E-mail newsletters

    (all Top 20 Inclusions subject to approval by Travelzoo Editorial Team)   	$.60 per click  	  

	Target for all Non-Lodging: 

	August - September 2003: 	250,000 clicks/month	$150,000 per month 	  
	October - December 2003: 	200,000 clicks/month	$120,000 per month 	  
	January - July 2004: 	250,000 clicks/month  	$150,000 per month	  

Additional Services/Notes:
Should Travelzoo deliver more
click-throughs than set forth in the above schedule, Advertiser will be billed for the
dollar amounts set forth above plus $0.60 for each click-through ($0.80 for each
click-through from a hotel/resort/other lodging offer) actually delivered in excess of the
targets set above; provided, however, that in no event will Advertiser’s payment
obligations under this agreement exceed $3,012,000. Should, for any reason, Travelzoo fail
to deliver the target click-throughs as set forth above, Advertiser will only be billed
for click-throughs actually delivered at a rate of $0.60 ($0.80 for hotel/resort/other
lodging offers) per click-through. Advertising placements on the Web site or in
Travelzoo’s newsletters will be determined by Travelzoo. Orbitz

reserves the right to
replace offers advertised with alternative offers that advertiser prefers to advertise.
Regarding any Top 20 placements, however, any offers that Orbitz would like to advertise
in the Top 20 newsletter are subject to approval by Travelzoo’s editorial team. 

Orbitz will provide Travelzoo with
separate tracking links for hotel/resort/lodging offers and non-lodging offers, so clicks
for the two types of offers can be tracked separately. 

     Cancellation.    
          Upon 90 days’ prior notice to the other party, Advertiser or Travelzoo may
          at any time and for any reason cancel this agreement. If Advertiser or Travelzoo
          exercise this right of cancellation, Advertiser will only be billed for
          click-throughs actually delivered in any given month after such cancellation at
          a rate of $0.60 ($0.80 for hotel/resort/lodging offers) per click-through. 

Billing Information:
As set forth in the Terms and
Conditions of this agreement, Advertiser will be invoiced at the end of each calendar
month for actual number of clicks-throughs delivered during that month. Payment shall be
made to Travelzoo within thirty (30) days from the receipt of invoice. See Terms &
Conditions for further details. All rates are net. 

We hereby agree to the foregoing, and
the attached Terms and Conditions (Annex A). 

For Advertiser: 

	Date: 	   7/31/03	  	Authorized Signature: 	     /s/ Mike Sands	
		
 			
 	

			  	Printed Name & Title:	     CMO Mike Sands	
					
 	

			  	Printed Company Name:	     Orbitz, LLC	
					
 	

For Travelzoo: 

	Date: 	  8/1/03	  	Authorized Signature: 	     /s/ H. Bartel	
		
 			
 	

			  	Printed Name & Title:	     H. Bartel, EVP	
					
 	

			  	Printed Company Name:	     Travelzoo Inc.	
					
 	

ANNEX A: Terms and
Conditions for 
Advertising Agreement
between Travelzoo and Orbitz, LLC (“Advertiser”)
for August 1, 2003 –
July 31, 2004 Program Flight 

The following terms and conditions
(the “Terms”) shall be deemed to be incorporated into the insertion
order/advertising agreement for Advertiser’s August 1, 2003 – July 31, 2004
advertising campaign (the “Insertion Order”): 

          	1. 	  	
               Term of Payment. This is a cost-per-click agreement, and Advertiser will be
               billed only for click-throughs actually delivered. Travelzoo will invoice
               Advertiser at the end of each month during the term of this agreement for
               click-throughs actually delivered, as set forth in the Insertion Order;
               provided, however, that the total payments during the term of this agreement
               shall not exceed $3,012,00, unless otherwise agreed to in writing. Payment shall
               be made to Travelzoo within thirty (30) days from the receipt of invoice
               (“Due Date”). Amounts paid after the Due Date shall bear interest at
               the rate of one percent (1%) per month (or the highest rate permitted by law, if
               less). In the event Advertiser fails to make timely payment, Advertiser will be
               responsible for all reasonable expenses (including attorneys’ fees)
               incurred by Travelzoo in collecting such amounts. Travelzoo reserves the right
               to suspend performance of its obligations hereunder (or under any other
               agreement with Advertiser) in the event Advertiser fails to make timely payment
               hereunder or under any other agreement with Travelzoo. 

               

          	2. 	  	
               Positioning. Except for the positions expressively defined in the Insertion
               Order, positioning of advertisements on Travelzoo are determined by Travelzoo
               unless Advertiser has objected to certain positions. Travelzoo may, at its sole
               discretion, remove from the Insertion Order (and substitute with similar
               inventory) any keyword or category page that it reasonably believes to be a
               trademark, trade name, company name, product name or brand name belonging to or
               claimed by a third party. 

               

          	3. 	  	
               Usage Statistics. Unless specified in the Insertion Order, Travelzoo makes no
               guarantees with respect to usage statistics or levels of impressions for any
               advertisement. Advertiser acknowledges that delivery statistics provided by
               Travelzoo are the official measurements of Travelzoo’s performance on any
               delivery obligations provided in the Insertion Order. The processes and
               technology used to generate such statistics can be audited by the Advertiser or
               an independent agency. Click-throughs will also be tracked and reported by
               Advertiser’s third party ad server (currently DoubleClick DART), and
               Travelzoo will be given access to all third party numbers continuously
               throughout the length of this agreement. In the event there is a discrepancy of
               greater than 5% between the click-throughs reported by Travelzoo and the
               click-throughs reported by advertiser’s third party ad server for any month
               (“Discrepancy”), Advertiser’s payment obligation shall be reduced
               by an amount equal to the Discrepancy (provided that Advertiser shall provide
               documentation of such Discrepancy with its payment). 

               

          	4. 	  	
               Renewal. Except as expressly set forth in the Insertion Order, any renewal of
               the Insertion Order shall be upon mutual agreement only, and acceptance of any
               additional advertising order shall be at Travelzoo’s sole discretion.
               Pricing for any renewal period is subject to change by Travelzoo from time to
               time prior to commencement of such renewal period. 

               

          	5. 	  	
               No Assignment or Resale of Ad Space. Neither party shall resell, assign, or
               transfer any of its rights hereunder without the prior approval of the other
               party, and any attempt to resell, assign or transfer such rights without such
               approval shall result in immediate termination of this agreement, without
               liability to the terminating party. 

               

          	6. 	  	
               Limitation of Liability. In the event (1) Travelzoo fails to publish an
               advertisement in accordance with the schedule provided in the Insertion Order,
               (2) Travelzoo fails to deliver the number of total page views specified in the
               Insertion Order (if any) by the end of the specified period, or (3) of any other
               failure, technical or otherwise, of such advertisements to be delivered as
               provided in the Insertion Order, the sole liability of Travelzoo to Advertiser
               shall be limited to, at Travelzoo’s sole discretion, a pro rata refund of
               the advertising fee representing undelivered page views, placement of the
               advertisement at a later time in a comparable position, or extension of the term
               of the Insertion Order until total page views are delivered. In no event shall
               either party be responsible for any consequential, special, punitive or other
               damages, including, without limitation, lost revenue or profits, in any way
               arising out of or related to the Insertion Order/Terms or publication of the
               advertisement, even if such party has been advised of the possibility of such
               damages. Without limiting the foregoing, neither party shall have any liability
               for any failure or delay resulting from any governmental action, fire, flood,
               insurrection, earthquake, power failure, riot, explosion, embargo, strikes
               whether legal or illegal, labor material shortage, transportation interruption
               of any kind, work slowdown or any other condition beyond the reasonable control
               of such party affecting production or delivery in any manner. IN NO EVENT SHALL
               EITHER PARTY’S LIABILITY EXCEED THE TOTAL AMOUNT PAID BY ADVERTISER
               HEREUNDER. 

               

	– 1 – 
	(CONTINUED)

          	7. 	  	
               Representations. Advertisements are accepted upon the representation that
               Advertiser has the right to publish the contents of the advertisement without
               infringing the rights of any third party and without violating any law.
               Travelzoo will use commercially reasonable efforts to deliver a number of
               impressions reasonably calculated to produce the number of click-throughs
               promised in the Insertion Order. Travelzoo shall use commercially reasonable
               efforts to ensure the advertisements are not placed in any context that harms
               the goodwill or reputation of Advertiser or that disparages or brings Advertiser
               into disrepute, including, but not limited to web sites that contain indecent,
               illegal, misleading, harmful, abusive, harassing, libelous, defamatory, or other
               offensive materials. If Advertiser requests that its advertisements be removed
               from or not placed in any such context, Travelzoo will use commercially
               reasonable efforts to comply with such request promptly. 

               

          	8. 	  	
               Indemnification. Advertiser agrees, at its own expense, to indemnify, defend,
               and hold harmless Travelzoo and its employees, representatives, agents and
               affiliates against any and all expenses and losses of any kind (including
               reasonable attorneys’ fees and costs) incurred by Travelzoo in connection
               with any third-party claims, administrative proceedings or criminal
               investigations of any kind arising out of publication of the advertisement
               and/or any material, product or service of Advertiser to which users can link
               through the advertisement (including, without limitation, any claim of trademark
               or copyright infringement, defamation, breach of confidentiality, privacy
               violation, false or deceptive advertising or sales practices). Travelzoo agrees,
               at its own expense, to indemnify, defend, and hold harmless Advertiser and its
               employees, representatives, agents and affiliates, against any and all expenses
               and losses of any kind (including reasonable attorneys’ fees and costs)
               incurred by Advertiser in connection with any third-party claims, administrative
               proceedings or criminal investigations of any kind arising out: (a) of any
               content, material, product or service available on a Travelzoo property that was
               not provided by or obtained from Advertiser (including, without limitation, any
               claim of trademark or copyright infringement, defamation, breach of
               confidentiality, privacy violation, false or deceptive advertising or sales
               practices), or (b) Travelzoo’s breach of any duty, representation, or
               warranty under this agreement. All indemnities provided by Advertiser under this
               agreement are conditioned on the following: (a) Advertiser shall have sole
               control over the defense of any claim covered by the indemnity; (b) Travelzoo
               shall promptly report the existence of any claim or potential claim covered by
               the indemnity; (c) Travelzoo shall provide full and reasonable cooperation with
               Advertiser’s investigation and defense of such claim; and (d) Travelzoo
               shall not materially alter any advertising material supplied to it by Advertiser
               or on its behalf. All indemnities provided by Travelzoo under this agreement are
               conditioned on the following: (a) Travelzoo shall have sole control over the
               defense of any claim covered by the indemnity; (b) Advertiser shall promptly
               report the existence of any claim or potential claim covered by the indemnity;
               and (c) Advertiser shall provide full and reasonable cooperation with
               Travelzoo’s investigation and defense of such claim. 

               

          	9. 	  	
               Provision of Advertising Materials. Advertiser will provide all materials for
               the advertisement in accordance with Travelzoo’s policies in effect from
               time to time, including (without limitation) the manner of transmission to
               Travelzoo and the lead-time prior to publication of the advertisement. Travelzoo
               shall not be required to publish any advertisement that is not received in
               accordance with such policies and reserves the right to charge Advertiser, at
               the rate specified in the Insertion Order (if any), for inventory held by
               Travelzoo pending receipt of acceptable materials from Advertiser which are past
               due. Advertiser hereby grants to Travelzoo a non-exclusive, worldwide, fully
               paid license to use, reproduce and display the advertisement (and the contents,
               trademarks and brand features contained therein) in accordance herewith. 

               

          	10. 	  	
               Right to Reject Advertisement. All contents of advertisements are subject to
               Travelzoo’s approval, which shall not be unreasonably withheld. Travelzoo
               reserves the right to reject or cancel any advertisement, insertion order, URL
               link, space reservation or position commitment, at any time, in accordance with
               its policies generally applicable to all its advertisers (including belief by
               Travelzoo that placement of advertisement, URL link, etc., may subject Travelzoo
               to criminal or civil liability). 

               

          	11. 	  	
               Cancellation and Termination. The agreement’s cancellation policy is set
               forth in the Insertion Order. Notwithstanding anything in the Insertion Order,
               in the event that either party breaches the terms of this agreement and fails to
               cure such breach within fifteen (15) days of receiving notice of such breach,
               the non-breaching party will have the right to terminate this agreement
               immediately without any further liability to the breaching party; provided,
               however, that payments due prior to such termination shall remain payable in
               accordance with Section 1 hereof. 

               

          	12. 	  	
               Notices. All notices required or permitted under this agreement shall be in
               writing and shall be deemed delivered when delivered in person or mailed
               certified through the United States Postal Service, postage prepaid, or via
               FedEx addressed as follows: 

               

	  	If
to Travelzoo: 	Travelzoo Inc. 
Attn:Contracts Department
300 West El Camino Road,
Suite 180
Mountain View, CA 94040 

	– 2 – 
	(CONTINUED)

	  	If
to Advertiser:	Orbitz, LLC
Attn:  Michael Stein
200 South Wacker Drive, Suite 1900

Chicago, IL 60606

          	13. 	  	
               Construction. No conditions other than those set forth in the Insertion Order or
               these Terms shall be binding on either party unless expressly agreed to in
               writing by such party. In the event of any inconsistency between the Insertion
               Order and the Terms, the Terms shall control. 

               

          	14. 	  	
               Miscellaneous. These Terms, together with the Insertion Order, (1) shall be
               governed by and construed in accordance with, the law of the State of
               California, without giving effect to principles of conflicts of law; (2) may be
               amended only by a written agreement executed by an authorized representative of
               each party; and (3) constitute the complete and entire expression of the
               agreement between the parties, and shall supersede any and all other agreements,
               whether written or oral, between the parties. Advertiser shall make no public
               announcement regarding the existence or content of the Insertion Order without
               Travelzoo’s written approval, which may be withheld at Travelzoo’s
               sole discretion. Both parties consent to the jurisdiction of the courts of the
               State of California with respect to any legal proceeding arising in connection
               with the Insertion Order/Terms. In performing their obligations under this
               agreement, the parties will comply with all applicable laws concerning data
               privacy, the use of personally identifiable information, and unsolicited
               commercial e-mail. Each party represents and warrants that it will comply with
               the privacy policy published on its site. Travelzoo shall not provide incentives
               to users (such as prizes, points, rewards, or other encouragements) to click
               through to Advertiser, unless such incentives are part of the Advertiser’s
               offer being published via Travelzoo. 

               

          	15. 	  	
               Third Party Ad Serving. If Travelzoo has approved the use by Advertiser of a
               third party ad server (Third Party Ad Server) in connection with this Insertion
               Order, the following provisions shall also apply:
 (1)      The Advertiser shall post
               each advertisement to a staging area and shall notify Travelzoo of such posting
               at least four (4) business days prior to the date on which Third Party Ad Server
               is scheduled to serve such advertisement to a Travelzoo property. Such
               advertisement shall be reviewed by Travelzoo and must be approved in writing by
               Travelzoo before it can be served by Third Party Ad Server. In accordance with
               Section 10, Travelzoo reserves the right to reject any advertisement or any
               element thereof.
(2)      
                                        The Advertiser shall post all scheduling changes, new target URLs, new HTML
                    specifications, new graphics and all other new or revised advertisements
                    (“Revisions”) to a staging area and shall notify Travelzoo of such
                    postings at least four (4) days prior to the date Advertiser wishes such
                    Revisions to take effect. Revisions shall not be implemented until approved by
                    Travelzoo in writing, which approval shall be in accordance with
                    Travelzoo’s policies generally applied to its advertisers. 
(3)      
                                        If Advertiser discovers that Advertiser or Third Party Server has served, or
                    caused to be served, an advertisement to a Travelzoo property in violation of
                    this Agreement, Advertiser must immediately provide notice to Travelzoo of the
                    violation (along with a written explanation) and remove the advertisement from
                    its placement or rotation to the Travelzoo properties. Nothing in this Section
                    shall limit any of Travelzoo’s rights or remedies in the event of such
                    breach.
 (4)     In the event Travelzoo exercises its right to cancel an
                    advertisement in accordance with Section 10 hereof, Travelzoo shall notify
                    Advertiser in writing. The Advertiser must cause the advertisement to be removed
                    from the Travelzoo properties and from its advertising rotation no later than
                    two (2) business days after written notification by Travelzoo. 

                    

          	16. 	  	
               Domestic Traffic. Travlezoo acknowledges that Advertiser may sell travel
               services to customers located in the United States of America only. Travelzoo
               will use commercially reasonable efforts to display advertisements on web pages
               directed at U.S. customers, and will in no event display advertisements on web
               pages directed primarily at non-U.S. residents. In the event that an audit
               determines that during the audited period the number of click-throughs from
               users originating from outside the U.S. (as indicated by a non-U.S. domain or
               ISP, or other indicia showing non-U.S. origin) (the “Non-U.S.
               Click-Throughs”) are 5% or more of the total number of click-throughs
               during the audited period (the “Total Click-Throughs”), then Travelzoo
               shall promptly refund to Advertiser any amounts paid by Advertiser associated
               with the number of Non-U.S. Click-Throughs in excess of 5% of the Total
               Click-Throughs. [By way of illustration, in the event that the number of
               Non-U.S. Click-Throughs is 6.5% of the Total Click-Throughs, then the amount
               refunded by Travelzoo shall be the amount paid by Advertiser associated with
               1.5% of the Total Click-Throughs.] 

               

	Accepted: 	  	  	  

	For Travelzoo: 	  	For Advertiser: 	  

	   /s/ H. Bartel 	  	   /s/ Mike Sands

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