EX-10.13

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v023664_ex10-13.txt

                                                                   Exhibit 10.13

               REDEEMABLE PREFERENCE SHARE SUBSCRIPTION AGREEMENT

      THIS REDEEMABLE SHARE SUBSCRIPTION  AGREEMENT is made as of the 6th day of

February 2004 (the "Agreement"),

BETWEEN:    MAINTOP HOLDINGS LTD. an international  business company established

            under the laws of the Barbados,  with its  registered  office at 30E

            Lower Halcyon  Heights,  in the Parish of St. James in the Island of

            Barbados {the "Subscriber"); and

AND:        STRATEGY  HOLDING  COMPANY LIMITED an exempt  insurance  established

            under the laws of Barbados,  with its registered  office at Chancery

            House, High Street, Bridgetown, Barbados (the "Company")

WHEREAS:

A.    The Company has been formed  pursuant to the  Companies Act of the laws of

      Barbados ("Companies Act")

B.    The authorised capital of the Company consists of

      (i)   an  unlimited  number  of  shares of one  class,  designated  Common

            Shares;

      (ii)  an unlimited  number of redeemable  preference  shares of one class,

            designated Class A Redeemable  Preference  Shares Series 1 ("Class A

            Preference Shares Series 1 ");

      (iii) an unlimited  number of redeemable  preference  shares of one class,

            designated Class B Redeemable  Preference  Shares Series 1 ("Class B

            Preference Shares 1")

      (iv)  an unlimited  number of redeemable  preference  shares of one class,

            designated Class C Redeemable  Preference  Shares Series 1 ("Class C

            Preference Shares Series 1");

      (v)   an unlimited  number of redeemable  preference  shares of one class,

            designated Class D Redeemable  Preference  Shares Series 1 ("Class D

            Preference Shares 1")

C.    It is intended that the  Subscriber,  subscribe for and FIFTY SIX THOUSAND

      FIVE  HUNDRED and SIXTY ONE and ONE FIFTH  (56,561.5)  Class B  Preference

      Shares Series 1,  representing  100% of the issued and outstanding Class B

      preference Shares Series 1 then  outstanding,  determined on fully diluted

      basis for a subscription price of Fifty Six Million Five Hundred and Sixty

      One  Thousand   Five  Hundred  and  Twenty  Six  United   States   Dollars

      (USD$56,561,526.00).

D.    The purchase and sale of the Class B  Preference  Shares  Series 1 and the

      completion of the other  transactions as contemplated  herein are referred

      to as the "Transactions".

CONDITIONS PRECEDENT:

1.    The  Transaction  is  conditional  upon  exemption from any prospectus and

      registration requirements of all-applicable securities legislation,  rules

      and  policies.  Each of the  Subscriber  and the Company  hereby agrees to

      execute and deliver all  documentation  required by applicable  securities

      legislation  to permit  the  issuance  and sale of all shares on the terms

      herein set forth.

2.    The  Transaction  is  further   conditional   upon  (i)  GARADAN  INC.  an

      international  business company  incorporated  under the laws of Barbados,

      having  subscribed for and the Company having issued to that subscriber an

      approximately  equal number of non-voting 10% cumulative  ten-year Class B

      Preference  Shares  Series 1 Shares of the Company on terms  substantially

      similar  to  those   contemplated   herein,   and  (ii)   KAVRAV  LTD,  an

      international  business company  incorporated  under the laws of Barbados,

      having  subscribed  for and the Company  having issued to that  Subscriber

      Four Hundred  (400) Common Shares  (representing  40% of the Common Shares

      then  outstanding  determined on a fully diluted basis) for a subscription

      price of US$1 per Common Share.

3.    It shall also be condition of the Closing (as  hereinafter  defined)  that

      all  documentation  relating  to the  Transaction  shall  be in  form  and

      substance  satisfactory  to Subscriber's  legal counsel for Company,  each

      acting reasonably, and that all warranties of the parties contained herein

      are true and  correct on Closing as if made by the  respective  parties on

      and as at that date.

1.    INTERPRETATION

As used in this Agreement, the following terms have the following meanings:

      "Affiliate"  means an  affiliated  company or  affiliated  body  corporate

      within the meaning of the Companies Act Cap. 308 of the laws of Barbados.

      "Business" means the Company's proposed business to be carried on directly

      or  indirectly  through  one or  more  wholly  owned  subsidiaries  of the

      international (non-domestic) insurance and reinsurance,  matters ancillary

      thereto and other  business as the board of  directors  of the Company may

      from time to time determine.

      "Closing" has the meaning ascribed thereto in Section 4.

      "Closing Date" has the meaning ascribed thereto in Section 4.

      "Common  Shares"  means the common shares in the capital of the Company as

      from time to time constituted.

      "Company" means Strategy Holding Company Limited Section 4.

      "Control" a body  Corporate is controlled by a person if any shares of the

      body corporate  carrying  voting rights  sufficient to elect a majority of

      the directors of the body corporate, except by way of security only, held,

      directly or indirectly, by or on behalf of that person.

                                       2

      "Fair  Market  Value" of any  property at any date means the highest  cash

      price in terms of money which would be obtainable  for that property as at

      that  date in an open and  unrestricted  market  without  compulsion  to a

      willing and knowledgeable  purchaser acting at arm's length, as determined

      by the auditors of the Company having regard to such considerations as may

      in their sole and unfettered discretion be considered relevant.

      "Government  Body" means any domestic or foreign  legislative  executives,

      judicial or  administrative  body or Person  having or  purporting to have

      jurisdiction in relevant circumstances.

      "Laws" means all statutes, codes, ordinances, decrees, rules, regulations,

      municipal by-laws; all judicial,  arbitral,  administrative,  ministerial,

      departmental  or  regulatory  judgements,  orders,  decisions,  rulings or

      awards,  policies,   published  guidelines;   or  any  provisions  of  the

      foregoing,  including  general  principles  of  common  and  civil law and

      equity,  binding on or affecting the person  referred to in the context in

      which such word is used; and "Law" means any one of them.

      "Mortgages" means the fixed rate registered  mortgages and charges on Real

      Property  having an estimated  aggregate  Fair Market Value and  principal

      value of USD$56,561,526.00  each with a minimum remaining term to maturity

      of no less than ten years, all as more particular described on Exhibit "A"

      annexed hereto, and any mortgage substituted for any thereof in accordance

      with the provisions of section 5 hereof.

      "Person"  or  "person"   means  any   individual,   partnership,   limited

      partnership, corporation, joint venture, association, joint stock company,

      trust, unincorporated organization or a government or an agency thereof.

      "Purchased Shares" has the meaning ascribed thereto in Section 2.

      "Real  Property"  means the lands,  premises and buildings  which are from

      time to time the  subject  of the  mortgages  and  charges  created by the

      Mortgages, all as more particularly described in Exhibit "B" hereto.

      "Subsidiary"  means  another body  Corporate,  which is  controlled by the

      Company being Strategy Insurance Limited.

IT IS HEREBY AGREED as follows:

2.    SUBSCRIPTION FOR SHARES

2.1   The Subscriber hereby subscribes for and irrevocably  agrees to take up on

      Closing  FIFTY  SIX  THOUSAND  FIVE  HUNDRED  and  SIXTY ONE and ONE FIFTH

      (56,561.5)  Class B  Preference  Shares  Series  1 in the  capital  of the

      Company, and tenders herewith the subscription amount of Fifty Six Million

      Five  Hundred and Sixty One  Thousand  Five  Hundred and Twenty Six United

      States Dollars (USD$56,561,526.00)(the "Subscription Amount") representing

      USD$1,000  per Class B Preference  Shares Series 1, in full payment of the

      aggregate subscription price for such shares.

                                       3

2.2   All the  Classes of  Preference  Shares and the Common  Shares  shall have

      attached thereto in substance the rights,  privileges,  restrictions,  and

      conditions set forth on Exhibit C hereto.

3.    TENDER AND PAYMENT OF SUBSCRIPTION AMOUNT

3.1   The Subscriber will tender the  Subscription  Amount in full on Closing by

      delivery and  conveyance on Closing to the Company of good and  marketable

      title to the Mortgages,  free and clear of any lien, charge,  encumbrance,

      right or claim of any nature.  The Subscriber  agrees that upon Closing it

      shall deliver to the Company the original registered  duplicate of each of

      the  Mortgages,  together  with a legal  opinion  as to the  title  to and

      ownership and provenance of each Mortgage in form and substance.

3.2   The  Transaction  shall be completed (the "Closing") at the offices of the

      Company's  counsel in Bridgetown,  Barbados,  as soon as practicable after

      and in any event no later than the 6th day of February  2004 or such other

      date as counsel  to the  parties  hereto  may agree in writing  (such date

      being herein referred to as the "Closing Date").

4.    ISSUE OF SHARES

4.1   In  consideration of the  Subscription  Amount,  the Company pursuant to a

      resolution  of the Board of  Directors,  shall issue to the  Subscriber on

      payment in full,  as set out in Clause  3.1  hereof,  therefore  FIFTY SIX

      THOUSAND  FIVE  HUNDRED  and SIXTY ONE and ONE  FIFTH  (56,561.5)  Class B

      Preference  Shares Series 1 in the capital of the Company,  such shares to

      be issued as fully paid and  non-assessable,  and as evidence  thereof the

      Company shall issue a share  certificate  representing  such shares in the

      name of the Subscriber.

5.    SUBSCRIBER'S RIGHT OF SUBSTITUTION OF MORTGAGES

5.1   The Company hereby  irrevocably  grants to the Subscriber,  effective upon

      Closing,  [but  only  so  long  as the  Subscriber  or any  subsidiary  or

      affiliate  of the  Subscriber  is the  registered  holder  of any  Class B

      Preference  Shares  Series 1 of the  Company] the option to acquire at any

      time  all or from  time  to time  any of the  Mortgages  then  held by the

      Company or its  Subsidiary,  upon and subject to the  following  terms and

      conditions:

      (a)   The Subscriber  shall have the option,  exercisable at any time upon

            at least  thirty (30) days' prior  written  notice  delivered to the

            Company and the Custodian,  to require the Company or its Subsidiary

            to sell to the  Subscriber  any or all of the Mortgages then held by

            the Company or its Subsidiary for a purchase price equal to the Fair

            Market Value  thereof as at the date of such notice,  payable in the

            manner set forth in Sub-Clause  5.1(b)  below,  and upon delivery of

            such  notice,  together  with  payment in full,  the  Company or its

            Subsidiary shall deliver to the Subscriber good and marketable title

            to  such   Mortgages   free  and  clear  of  any   liens,   charges,

            encumbrances,  rights or claims of any nature,  the Custodian  shall

            deliver  to the  Subscriber  the  Mortgages  so  purchased  and  the

            proceeds of such sale be released to the Company or its Subscriber.

                                       4

      (b)   The purchase  price payable under  Sub-clause  5.1(a) above shall be

            payable in immediately  available  funds  denominated in US dollars,

            provided  that  Subscriber  may at its  option,  if so stated in its

            notice of exercise under Sub-clause  5.1(a) above,  elect to pay the

            whole or any part of such  purchase  price  by way of  delivery  and

            conveyance to Company of good and marketable  title,  free and clear

            of any lien, charge,  encumbrance,  right or claim of any nature, of

            another mortgage or mortgages:

            (i)   having a Fair Market Value at the time of substitution no less

                  than such purchase price or part thereof;

            (ii)  having a maturity  date within 90 days of the maturity date of

                  the Mortgage being purchased;

            (iii) secured on Real  Property  then having a Pair Market  value no

                  less than the greater of (A) the then Fair Market Value at the

                  time of  substitution,  and (B) the original Pair Market Value

                  as at Closing,  of the Real  Property  subject to the Mortgage

                  being  purchased,

            (iv)  supported by the Guarantee; and

            (v)   otherwise of a nature,  form and  substance  acceptable to the

                  Company, acting reasonably.

      (c)   Except as otherwise contemplated herein, neither the Company nor its

            Subsidiary shall be entitled to sell, transfer,  assign or otherwise

            dispose  of  (otherwise  than by way of pledge,  charge or  security

            interest)  any  interest in any of the  Mortgages  without the prior

            written consent of the Subscriber.

      (d)   Notwithstanding the foregoing  Sub-clause 5.1(c), the Company or its

            Subsidiary  shall be entitled,  upon delivery to the  Subscriber and

            the  Custodian of at least 15 days' prior  written  notice  together

            with the certificate of the Company's  auditors  confirming that the

            Company or its  Subsidiary  lacks the liquidity  necessary to honour

            any claim or claims  enforceable  against  it and the  amount of any

            such  deficiency,  to sell such one or more of the Mortgages in such

            manner and to such person or persons as may in the discretion of the

            Company's  or its  Subsidiary's  board of  directors be necessary or

            advisable in order to fund such  deficiency  and honour such claims.

            Upon  receipt of such notice and  certificate  the  Custodian  shall

            release to the  Company's or its  Subsidiary's  attorney-at-law  the

            Mortgages to be sold,  to be held in escrow  against  receipt of the

            net sale proceeds  thereof of the Company,  which  proceeds shall be

            released to the Company or its Subsidiary,

      (e)   Notwithstanding  the foregoing  Sub-clause  5.1(d),  the  Subscriber

            shall be entitled  to  participate  in any sale  process on the same

            basis as any other potential purchaser of the Mortgages to be sold.

6.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY

6.1   The Company hereby represents and warrants to the Subscriber as follows:

                                       5

      (a)   The Company has been duly and validly incorporated and organised and

            is validly existing under the laws of Barbados and has all requisite

            corporate  power and  authority  to carry on its  business,  own its

            property and assets and to carry out the  provisions  hereof and has

            full  power  and  capacity  to  execute   deliver  and  perform  its

            obligations under this Agreement and to complete the Transaction.

      (b)   Each  of  this  Agreement  and  other  agreements  entered  into  in

            connection with the Transaction  when executed,  will have been duly

            authorised, executed and delivered on behalf of the Company and will

            be a valid and  binding  obligation  of the Company  enforceable  in

            accordance  with its  terms  subject,  however,  to  limitations  on

            enforcement   imposed  by   bankruptcy,   insolvency,   liquidation,

            reorganisation,  reconstruction and other similar Laws affecting the

            enforcement  of the rights of creditors and others and to the extent

            that equitable remedies such as specific performance and injunctions

            are only  available in the  discretion  of the court from which they

            are sought.

      (c)   The Company does not have any direct or indirect  ownership or other

            interest  in any  business,  venture  or  endeavour  other  than the

            Business.

      (d)   The  Company,  or a  wholly  owned  subsidiary  thereof,  will be on

            Closing duly qualified or licensed and in good standing as a company

            authorised   to  do  business  in   Barbados,   which  is  the  only

            jurisdiction in which it carries on the Business or where the nature

            of  business  carried  on  or  proposed  to be  carried  on by it or

            requires it to be so licensed or qualified.

      (e)   There are no material  liabilities,  indebtedness  or obligations of

            the  Company  of any kind  whatsoever,  whether or not  absolute  or

            contingent,  other than liabilities  incurred in the ordinary course

            of business since the date of incorporation.

      (f)   Immediately   prior  to  giving  effect  to  the  Transaction,   the

            authorised  capital of the  Company  will on  Closing  consist of an

            unlimited number of shares of one class,  designated  Common Shares;

            an unlimited  number of redeemable  preference  shares of one class,

            designated  Class  A  Redeemable  Preference  Shares  Series  1;  an

            unlimited  number of  redeemable  preference  shares  of one  class,

            designated  Class  B  Redeemable  Preference  Shares  Series  1;  an

            unlimited  number of  redeemable  preference  shares  of one  class,

            designated  Class C Redeemable  Preference  Shares  Series 1; and an

            unlimited  number of  redeemable  preference  shares  of one  class,

            designated  Class D Redeemable  preference  Shares Series 1 and only

            One  Thousand  (1000)  Common  Shares,   will  be  duly  issued  and

            outstanding as fully paid and non-assessable.

      (g)   At Closing,  all necessary  corporate action will have been taken by

            the Company to authorize  the creation and issuance of the Purchased

            Shares and all of the Purchased Shares will, upon their issuance, be

            validly  issued  as  fully-paid  and   non-assessable   shares.  The

            Purchased  Shares will on Closing be issued in  compliance  with all

            applicable security laws.

                                       6

      (h)   There is no action,  suit,  proceeding or investigation  (whether or

            not  purportedly  on behalf of the Company) which has been commenced

            or, to the  knowledge of the  directors and officers of the Company,

            no action,  proceeding or  investigation  is threatened  against the

            Company before any court or before any Government Body or before any

            arbitrator or board.

      (i)   There is no person, firm, or corporation acting or purporting to act

            for  the  Company  entitled  to any  brokerage  or  finder's  fee in

            connection with this Agreement.

      (j)   Each of the Company's warranties herein shall be true and correct on

            Closing as if made by the Company on and as at that date.

6.2   The  Company  hereby  acknowledges  and  agrees  that  each  of the  above

      representations  and  warranties  is being relied on by the  Subscriber in

      connection  with its decision to enter into this Agreement and to complete

      the  transactions  herein  and  therein  contemplated  and that  each such

      representation  and warranty  shall not merge in or be prejudiced  by, and

      shall survive and continue in full force and effect following Closing.

7.    REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

7.1   The Company hereby represents and warrants to the Subscriber as follows:

      (a)   The Subscriber is duly  incorporated  and validly existing under the

            laws of Barbados and has all requisite  corporate power and capacity

            to enter and perform its  obligations  under this  Agreement  and to

            complete the Transaction.

      (b)   This Agreement has been duly  authorised,  executed and delivered on

            behalf of the  Subscriber  and is a valid and binding  obligation of

            the Subscriber, enforceable in accordance with its respective terms,

            subject  to  the  usual   exceptions  as  to   bankruptcy   and  the

            availability of equitable remedies.

      (c)   The execution and delivery of this Agreement, and the performance of

            the  Subscriber's  obligations  hereunder or the consummation of the

            transactions  herein provided for will not result in or constitute a

            breach of any term or  provision  of, or  constitute a breach of any

            term or provision of, or constitute a default under,  the constating

            documents, Articles of Incorporation or By-laws of the Subscriber or

            any  agreement  to which the  Subscriber  is a party or by which the

            Subscriber is bound.

                                       7

      (d)   The  Subscriber is or will,  subject to the  provisions  hereof,  be

            purchasing the Purchased Shares for its own account,  for investment

            purposes  and  not  with a view  to the  distribution  thereof.  The

            Subscriber will not, directly or indirectly,  offer, transfer, sell,

            assign,  pledge,  hypothecate or otherwise  dispose of any Purchased

            Shares (or solicit any offers to buy, purchase, or otherwise acquire

            any of such Purchased  Shares)  acquired by it, except in compliance

            with the Articles and all applicable securities Laws.

      (e)   The Subscriber understands that the transfer of the Purchased Shares

            acquired by it pursuant hereto shall be subject to the  restrictions

            imposed by the Articles or applicable  securities  Laws and may bear

            restrictive legends describing such restrictions.

      (f)   The Subscriber is the sole and exclusive  beneficial  owner of right

            of the mortgages,  with good and  marketable  title thereto free and

            clear of any liens, charges,  encumbrances,  rights or claims of any

            nature.

      (g)   The Mortgages  constitute  valid and  enforceable  first  registered

            mortgages and charges against all Real Property, subject to no prior

            registered charges.

      (h)   The Subscriber's decision to execute this Agreement and purchase the

            Purchased  Shares  has not been  based  upon any  verbal or  written

            representations  as to fact or otherwise made by or on behalf of the

            Company other than those contained in this Agreement.

      (i)   The Subscriber acknowledges that no prospectus has been filed by the

            Company  with  any  securities   commission  or  similar  regulatory

            authority in any  jurisdiction  in  connection  with the sale of the

            Purchased  Shares  and  as  a  result  (i)  the  Subscriber  may  be

            restricted  from using most of the civil  remedies  available  under

            applicable  securities  Laws,  (ii) the  Subscriber  may not receive

            information  that would  otherwise  be required to be provided to it

            under  applicable  securities  Laws,  and (iii) the  Company  may be

            relieved from certain  obligations  that would otherwise apply under

            applicable securities Laws.

      (j)   The  Subscriber  acknowledges  that the  investment in the Purchased

            Shares  may have tax and/or  other  consequences  to the  Subscriber

            under applicable  Laws,  which the Subscriber is solely  responsible

            for  determining  and in  respect  of  which no  assistance  will be

            provided  by the Company or its  advisors,  and the  Subscriber  has

            obtained its own legal and tax advice.

      (k)   There is no person,  firm or corporation acting or purporting to act

            for the  Subscriber  entitled to any  brokerage  or finder's  fee in

            connection with this Agreement.

      (l)   The  aggregate  Fair Market  Value of the Real  Property  will be at

            Closing no less than [100%] of the  aggregate  Fair Market  Value of

            the Mortgages on that date.

      (m)   Each of the Subscriber's warranties herein shall be true and correct

            on Closing as if made by the Subscriber on and as that date.

7.2   The  Subscriber  hereby  acknowledges  and  agrees  that each of the above

      representations  and warranties is being relied on by the Company  without

      independent  inquiry  in  connection  with  the  issue  and  sale  to  the

      Subscriber  of the  Purchased  Shares  acquired  by it and that  each such

      representation  and warranty  shall not merge in or be prejudiced  by, and

      shall survive and continue in full force and effect following Closing.

                                       8

8.    COVENANTS OF THE COMPANY

8.1   The Company shall maintain its corporate existence,  rights and franchises

      in full force and effect.

8.2   The Company shall comply with all  applicable  Laws,  non-compliance  with

      which  could  materially  adversely  affect  its  business  or  condition,

      financial or otherwise.

8.3   The Company shall make all dividend payments on all, Classes and Series of

      the Preference Shares, as they become due and payable.

9.    DIVIDEND PAYMENTS

9.1   In the event that any dividend  payments that are due and payable,  on the

      Class A  Preference  Shares  Series 1 shares,  are not paid,  the  Company

      shall, at the option of the Subscriber,  immediately pay the equivalent of

      the six (6) months anticipated dividend the Subscriber.

10.   GENERAL

10.1  Governing Law. This Agreement is a Barbados  contract governed by the laws

      of Barbados.  Both parties hereby  irrevocably attorn to the non-exclusive

      jurisdiction o f the courts of Barbados.

10.2  Time of the Essence. Time shall be of the essence hereof.

      Currency.  All  references  herein to monetary  amounts are  references to

      lawful money of the United States of America.

10.3  Entire  Agreement.  This Agreement and the other  agreements  contemplated

      herein  constitute the only agreement  between the parties with respect to

      the  subject  matter  hereof  and  shall   supersede  any  and  all  prior

      negotiations and understandings.

10.4  Amendments. This Agreement may be amended, modified or supplemented in any

      respect by written instrument only signed by each party hereto.

10.5  Execution by Facsimile.  This Agreement may be executed by the parties and

      transmitted by facsimile transmission,  and if so executed and transmitted

      this Agreement will be for all purposes as effective as if the parties had

      delivered an executed original agreement.

10.6  Counterparts. This Agreement may be executed in several counterparts, each

      of which  when so  executed  shall be  deemed to be an  original  and such

      counterparts together shall constitute one and the same instrument.

10.7  Severability.   Any  Section,  paragraph  or  other  subdivision  of  this

      Agreement or any provision of this  Agreement  which is or becomes,  or is

      determined by an arbitrator  pursuant,  to section 10.8 hereof or court of

      competent  jurisdiction to be, illegal,  invalid or unenforceable shall be

      severed  from  this  Agreement  and be  effective  to the  extent  of such

      illegality,  invalidity or unenforceability and shall not affect or impair

      the remaining provisions hereof.

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10.8  In the event of any dispute  between any of the Parties hereto arising out

      of this Agreement,  the matter in dispute shall be referred to arbitration

      in  accordance  with this  Section  10.8 and a Party may make a demand for

      arbitration  by written  notice to the other Party  stating the matter and

      amount,  if any, in dispute.  The matter in dispute shall be referred to a

      panel  of three  (3)  arbitrators  (the  "Arbitrators")  agreed  to by the

      parties and arbitration  proceedings shall be conducted in accordance with

      the Arbitration Act, Cap. 110 of the laws of Barbados.

10.9  Waiver.  No waiver of any of the  provisions  of this  Agreement  shall be

      deemed  to  constitute  a waiver of any other  provision  (whether  or not

      similar),  nor shall such waiver  constitute a waiver or continuing waiver

      unless otherwise  expressly provided in writing duly executed by the party

      to be bound thereby.

10.10 Assignment  and  Enurement.   This  Agreement  is  not   transferable   or

      assignable.  This  Agreement  shall enure to the benefit of and be binding

      upon the parties, their successors and permitted assigns.

10.11 Non-Merger of  Agereement.  The rights and  obligations  of this Agreement

      shall not merge on the consummation of the Agreement, but shall be binding

      on the  parties  until  such time as the  Subscriber,  his  successors  or

      permitted assigns ceases to be a Shareholder of the Company.

10.12 Further Assurances.  Each of the parties covenants and agrees that it will

      sign such further agreements,  assurances,  waivers and documents,  and do

      and perform or cause to be done and performed  such further and other acts

      and things as may be necessary or desirable  from time to time in order to

      give full effect to this Agreement and every part hereof.

10.13 Notice.  Any notice  required or permitted  to be given or made  hereunder

      shall be given in writing and shall be  effectively  given or made if sent

      by  electronic  facsimile or  personally  delivered  to any party  hereto,

      except the Company, at its last address as set forth in the records of the

      Company,  and if to the Company,  at its then registered  office,  in each

      case to the attention of the President.  If delivered personally or by way

      of  electronic  facsimile,  any such  notice  shall be deemed to have been

      given or made on the date of such delivery or transmission.  Any party may

      change its address for service by giving  notice of such change of address

      to the Company and the other parties hereto in the manner herein provided.

                                       10

This Agreement is signed and executed by the respective  parties in counterpart;

each counterpart is to be read as an original document and all such counterparts

are to be deemed as representing the same document.

A telecopied  transmission  of this Agreement by any person named below shall be

sufficient  to  establish  the  signature of that person and to  constitute  the

authority in writing of such person to the foregoing resolution.

If the  foregoing  is in  accordance  with your  understanding,  please sign and

return the enclosed  copy of this  Agreement as soon as possible to evidence the

Subscriber's agreement to purchase the Purchased Shares.

      IN WITNESS  WHEREOF,  the parties have executed this Agreement on the date

first before written.

Witness:    /s/ Kezsha N. Hyde

            ---------------------

Name:  Kezsha N. Hyde

Address: Apt. #3 Pilgrim Road, Christ Church

Calling/Description: Attorney-at-law

                                       11

                                    EXHIBIT A

                            DESCRIPTION OF MORTGAGES

                                [to be inserted]

                                       12

                                    EXHIBIT B

                          DESCRIPTION OF REAL PROPERTY

                                [to be inserted]

                                       13

                                    EXHIBIT C

                                SHARE ATTRIBUTES

PREFERENCE SHARES       Each  Series of  Preferred  Shares  shall have  attached

                        thereto the following rights,  privileges,  restrictions

                        and conditions:

                  (a)   Each Series of Preferred Shares shall rank pari passu in

                        all respects.

                  (b)   The Redeemable  Preferred Shares shall bear a cumulative

                        preferential  dividend equal to 10% per annum of the par

                        value  thereof,  payable  quarterly on the last business

                        day of each calendar quarter, in preference and priority

                        to any payment of  dividends to the holders of any other

                        class of shares in the capital of the Company in respect

                        of that quarter, but the holders of the Preferred shares

                        shall  have no  further  right  to  dividends.  The said

                        preferential  dividend shall accrue from January 1, 2004

                        and the first payment of such dividend  shall be payable

                        on April 1, 2004.

                  (c)   The Preferred  Shares shall be  retractable  in whole or

                        part at the  option  of the  holder  at any  time by the

                        shareholder and is mandatory after the tenth anniversary

                        of the Closing  Date upon at least  fifteen (15) working

                        days prior  written  notice at the  redemption  price of

                        US$1,000 per  preferred  share,  plus accrued and unpaid

                        cumulative preferential dividends.

                  (d)   The  Preferred  Shares  shall  rank in  priority  to the

                        shares of all  classes in the  capital of the Company as

                        to  the   return  of  capital   upon  the   liquidation,

                        dissolution  or other  winding-up  of the  Company,  but

                        thereafter  the holders of the  Preferred  Shares  shall

                        have no further  right to  participate  in the assets of

                        the Company.

                  (e)   In the case of any redemption or retraction of Preferred

                        Shares,   or  the  liquidation,   dissolution  or  other

                        winding-up of the Company, the Company may at its option

                        pay the whole or any part of the  amount  payable to any

                        one or more  holders  of the  Preferred  shares  in such

                        event  by way of the  delivery  and  conveyance  to such

                        holders of good and marketable  title to Property having

                        an aggregate  Fair Market Value equal to or greater than

                        such amount or part  thereof,  For the  purposes  hereof

                        "Property"  means  property  then  owned by the  Company

                        which was  acquired by the Company in  consideration  of

                        the issuance of any Preferred Shares of the Series being

                        redeemed or repurchased,  or any property of the Company

                        received  by  the  Company  pursuant  to  any  right  of

                        substitution of property  exercised by the party to whom

                        any such shares were issued.

                                       14

                  (f)   The Preferred Shares shall be non-voting in all events.

                  (g)   The Preferred Shares shall be  non-transferable  without

                        the prior written consent of the Company,  which consent

                        may be arbitrarily granted or denied,  provided that the

                        Preferred  Shares may be transferred to Subsidiary or an

                        Affiliate of the Subscriber upon prior written notice of

                        the Company.

COMMON SHARES:

                  (a)   Subject  to  the  prior  rights  of the  holders  of the

                        Preferred Shares, the holders of the Common Shares shall

                        have the  right to  receive  dividends,  if any,  as the

                        directors  in their  discretion  may  from  time to time

                        declare.

                  (b)   Subject  to  the  prior  rights  of the  holders  of the

                        Preferred Shares, the holders of the Common Shares shall

                        have  the  right  on  the  liquidation,  dissolution  or

                        winding-up of the Company or other  distribution  of its

                        assets among its shareholders for the purpose of winding

                        up its  affairs to receive the  remaining  assets of the

                        Company.

                  (c)   The  holders of the Common  Shares  shall be entitled to

                        receive   notice  of  and  to  attend  all  meetings  of

                        shareholders  of the  company  and to vote  at any  such

                        meeting  on the basis of one vote of each  Common  Share

                        held.

                  (d)   The Common Shares shall be in registered  form and shall

                        be  transferable  upon the prior written  consent of the

                        Company,  which consent may not be unreasonably withheld

                        or delayed.

                  (e)   In the event that the holders of at least  two-thirds of

                        Common  Shares  then  outstanding   shall  at  any  time

                        hereafter  receive  from a third party  dealing at arm's

                        length with each holder of Common Shares an  irrevocable

                        bona fide offer to purchase  all, but not less than all,

                        of the  outstanding  Common  Shares of the Company for a

                        purchase  price  payable in cash or by way of shares the

                        purchaser  of a class listed for trading on a recognized

                        North American stock  exchange,  which offer they desire

                        to accept,  then all holders of Common  shares  shall be

                        immediately  provided  with a complete and accurate copy

                        of that offer and all holders of Common  Shares shall be

                        obliged to accept and shall sell their Common  Shares to

                        the  third  part in  accordance  with the  terms of that

                        offer.

                                       15