Document:

EXHIBIT
      10.2

     

    DISPOSAL
      AGREEMENT

    

    THIS
      AGREEMENT dated October 31, 2006 is made

    

    BETWEEN:--

    

    (1)
      PHYSICAL SPA & FITNESS INC., a Delaware corporation whose business address
      is at 40/F., Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong
      Kong
      (the "Vendor");

    

    and

    

    (2)
      Mr.
      NGAI KEUNG LUK, whose corresponding address is at Flat A, 5/F., Mei Foo Sun
      Cheun, 120 Broadway, Kowloon, Hong Kong (the "Purchaser").

    

    WHEREAS
      the Vendor has agreed to sell and the Purchaser has agreed to purchase the
      Disposing Shares subject to the terms and conditions hereinafter set
      out.

    

    IT
      IS
      HEREBY AGREED:--

    

    1.
      INTERPRETATION

    

    (A)
      In
      this Agreement and the Recitals hereto, unless the context otherwise
      requires:--

     

        "Business
      day" means a day other than a Saturday on which banks are open for business
      in
      Hong Kong;

    

        "Company"
      means Physical Beauty & Fitness Holdings Limited, details of which are set
      out in Schedule 1;

    

        "Completion"
      means the time fixed for completion pursuant to Clause 3(B) and where the
      context requires also means the performance by the parties of their

                 
      respective obligations in accordance with the provisions of Clause
      3;

    

        "Condition"
      means the condition set out in Clause 3(A);

    

        "Disposing
      Shares" means the one share of US$1.00 of the Company which represents the
      entire issued share capital of the Company;

     

        "Hong
      Kong"
      means the Hong Kong Special Administrative Region of the People's Republic
      of
      China; 

    

        "Share
      Exchange Agreement" means the agreement of even date between the Vendor and
      the
      Purchaser;

    

        "US$"
      means
      dollars of the United States of America.

    

    (B)
      In
      this Agreement, words importing the singular include the plural and vice versa,
      words importing gender or the neuter include both genders and the neuter and
      references to persons include bodies corporate or unincorporate.

    

    (C)
      References in this Agreement to statutory provisions are references to those
      provisions as respectively amended or re-enacted from time to time (if and
      to
      the extent that the provisions as amended or re-enacted are for the purposes
      hereof equivalent to those provisions before such amendment or re-enactment)
      and
      shall include any provision of which they are re-enactments (if and to the
      extent aforesaid) and any subordinate legislation made under such
      provisions.

    

    (D)
      References herein to "Clauses" and "Schedules" are to clauses of and schedules
      to this Agreement respectively and a reference to this Agreement includes a
      reference to each Schedule hereto.

    

    (E)
      The
      headings and table of contents in this Agreement are for convenience only and
      shall not affect its interpretation.

    

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

    2.
      TRANSFER, CONVEYANCE, AND ASSIGNMENT OF THE DISPOSING
      SHARES

    

    Subject
      to satisfaction of the Condition, the Vendor as beneficial owner shall transfer,
      convey, and assign and the Purchaser shall accept and assume of the Disposing
      Shares (to be completed at Completion pursuant to Clause 3) free from all rights
      of pre-emption options, liens, claims, equities, charges, encumbrances or
      third-party rights of any nature and with all dividends, benefits and other
      rights now or hereafter being attached or accruing thereto as from the date
      of
      this Agreement.

    

    3.
      COMPLETION

    

    (A)
      Completion of this Agreement is conditional upon the shareholders of the Vendor
      having approved this Agreement as required under Delaware law and a Definitive
      Information Statement on Schedule 14C having been filed with the U.S. Securities
      and Exchange Commission (the “Commission”) and been mailed to shareholders, and
      twenty days have elapsed since such filing and mailing.

    

    (B)
      Completion shall take place immediately after the closing pursuant to the Share
      Exchange Agreement, provided that if closing pursuant to the Share Exchange
      Agreement does not take place, Completion shall not take place. Completion
      shall
      take place at the offices of 40/F., Tower One, Times Square, 1 Matheson Street,
      Causeway Bay, Hong Kong when all (but not part only) of the following businesses
      set out in sub-clauses (C) and (D) shall be transacted.

    

    (C)
      The
      Vendor shall procure that before Completion a board meeting of the Company
      is
      held and that at such meeting resolutions are passed to approve of the transfer
      of the Disposing Shares to the Purchaser or its nominee upon presentation of
      duly executed transfers.

    

    (D)
      At
      Completion:--

    

        
      (a) the Vendor shall deliver or procure the delivery to the Purchaser
      of:--

    

             
      (i)   instruments of transfer in respect of the Disposing Shares
      duly executed by the registered and beneficial 

                    
      owner thereof in favor of the Purchaser and/or its nominee;

             
      (ii)  the share certificates in respect of the Disposing
      Shares;

             
      (iii) certified true copies of any power of attorney or other authority pursuant
      to which this Agreement and any 

                   
      document referred to in (i) above may have been executed;

    

        
      (b) the Vendor shall deliver to the Purchaser in respect of the
      Company:--

    

             
      (i)  the corporate seal, cheque books, chops and all copies of the
      memorandum and articles of association of the Company;

             
      (ii) the statutory books of the Company duly made up to date and any unissued
      share certificates and such

                
        other records (including all title documents to the assets including
      financial records) of the Company as may exist;

             
      (iii) all current insurance policies, books and records, title documents of
      the
      Company, all contracts to which 

                   
      the Company is a party and such licenses, authorizations and registrations
      granted to or owned by the Company.

    

    (E)
      The
      Purchaser shall not be obliged to complete the purchase of the Disposing Shares
      or perform any obligations hereunder unless the Vendor complies fully with
      its
      obligations under Sub-Clauses (C) and (D).

    

    (F)
      For
      avoidance of doubt, this Agreement shall automatically terminate if the Share
      Exchange Agreement is terminated and the parties shall in such event be released
      from all their obligations hereunder and shall have no claims against each
      other
      for such termination.

    

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    4.
      SET-OFF

    

    The
      parties agree that upon Completion, the Vendor shall be deemed to be released
      from all assets and properties of the Company; and all liabilities and
      obligations of the Vendor relating to the Company.

    

    5.
      CLAIMS

    

    (A)
      The
      Vendor hereby waives and agrees to waive all claims which it may have against
      the Company or in respect of any assets of the Company.

    

    (B)
      For
      the purpose hereof "Claims" means any and all rights and claims, contingent
      or
      otherwise and whether or not known to the parties or any of them, which the
      Vendor and may have against the Company subsisting at or before Completion,
      together with any such rights or claims arising out of any events or omissions
      at or before Completion.

    

    6.
      THE PURCHASER INDEMNITY

    

    It
      is
      being understood that the Purchaser is fully familiar with the operation of
      the
      Company. The Purchaser shall indemnify and hold harmless the Vendor (i) from
      any
      obligation and liabilities arising from this transaction, and (ii) any claim
      by
      or any obligation or liability to any third party arising out of or in relation
      to the Company or any assets of the Company, whether known or unknown, actual
      or
      contingent, to the extent the same are arisen on or before the closing under
      the
      Share Exchange Agreement, provided that notice of any claim under this Clause
      6
      by the Vendor must be delivered by the Vendor to the Purchaser within 2 years
      from Completion.

    

    7.
      TAX INDEMNITY

    

    (A)
      Subject to other provisions of this clause, the Purchaser hereby covenants
      with
      and undertakes to indemnify and keep indemnified the Vendor against any loss
      and
      liability suffered by the Vendor and costs and expenses reasonably incurred
      as a
      result of or in connection with any claim by any fiscal authorities falling
      on
      the Vendor resulting from or by reference to or arising out of the Disposing
      and
      purchase of the Disposing Shares herein.

    

    (B)
      If
      the Vendor shall become aware of a claim relevant for the purpose of this clause
      the Vendor shall forthwith give written notice thereof to the Purchaser at
      the
      address given in this Agreement (or such other address or addresses as the
      Purchaser may from time to time notify the Vendor for the purpose of this
      Agreement) and shall take such action as the Purchaser may reasonably request
      and at the costs of the Purchaser to avoid, resist or compromise any such
      claim.

    

    (C)
      The
      liabilities of the Purchaser under this clause shall cease after 24 months
      from
      Completion except in respect of matters which have been the subject of a bona
      fide written claim made within the said period by the Vendor to the
      Purchaser.

    

    8.
      ANNOUNCEMENTS AND CONFIDENTIALITY

    

    (A)
      Each
      of the parties hereby undertakes to the other that it will not, at any time
      after the date of this Agreement, divulge or communicate to any person other
      than to their respective professional advisers, or when required by law, or
      to
      their respective officers or employees whose province it is to know the contents
      of this Agreement or the negotiations in respect thereof and that it will not,
      at any time after Completion, divulge or communicate to any person other than
      to
      their respective professional advisers, or when required by law or to their
      respective officers or employees whose province it is to know, any confidential
      information concerning the business, accounts, finance or contractual
      arrangements or other dealings, transactions or affairs of the Company which
      may
      be within or may come to its knowledge and that it shall prevent the publication
      or disclosure of any such confidential information concerning such matters
      provided that the parties' obligations under this Sub-Clause (A) shall cease
      and
      determine upon Completion.

    

    (B)
      No
      public announcement or communication of any kind shall be made in respect of
      the
      subject matter of this Agreement unless specifically agreed between the parties
      or unless an announcement is required pursuant to relevant law or statutory
      requirements. Any announcement by either party required to be made pursuant
      to
      any relevant law or statutory requirements shall be issued only after such
      prior
      consultation with the other party as is reasonably practicable in the
      circumstances.

    

    
      
        
        

      

      
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          3 -

        
          

        

      

      
        
        

      

    

     

    9.
      NOTICES

    

    Each
      notice, demand or other communication given or made under this Agreement shall
      be in writing and delivered or sent by post or airmail or by facsimile
      transmission to the relevant party at its address or fax number set out below
      (or such other address or fax number as the addressee has by five (5) days'
      prior written notice specified to the other parties):--

    

    To
      the Purchaser:

    

    Flat
      A,
      5/F., Mei Foo Sun Chuen

    120
      Broadway,

    Kowloon,
      Hong Kong

    Fax
      Number: 852.2890.9484

    Attention:
      Mr. Ngai Keung Luk

    

    To
      the Vendor:

    

    40/F.,
      Tower One, Times Square

    1
      Matheson Street,

    Causeway
      Bay, Hong Kong

    Fax
      Number: 852.2573.2930

    Attention:
      Ms. Darrie Lam

    

    Any
      notice, demand or other communication so addressed to the relevant party shall
      be deemed to have been delivered (a) if given or made by letter, 3 business
      days
      after the date of dispatch, and (b) if given or made by fax, when
      dispatched.

    

    10.
      MISCELLANEOUS

    

    (A)
      The
      provisions of this Agreement shall, so far as they are capable of being
      performed or observed, continue in full force and effect notwithstanding
      Completion except in respect of those matters then already
      performed.

    

    (B)
      If at
      any time one or more provisions hereof is or becomes invalid, illegal
      unenforceable or incapable of performance in any respect under the laws of
      any
      relevant jurisdiction, the validity, legality, enforceability or performance
      in
      that jurisdiction of the remaining provisions hereof or the validity, legality,
      enforceability or performance under the laws of any other relevant jurisdiction
      of these or any other revisions hereof shall not thereby in any way be affected
      or impaired.

    

    (C)
      Time
      shall be of the essence of this Agreement.

    

    (D)
      Each
      party shall bear its own legal and professional fees, costs and expenses
      incurred in connection with this Agreement.

    

    (E)
      This
      Agreement shall be binding on and shall enure for the benefit of the successors
      and assigns of the parties hereto but shall not be capable of being assigned
      by
      any party without the written consent of the other party.

    

    (F)
      This
      Agreement sets forth the entire agreement and understanding between the parties
      or any of them in relation to the Disposing and purchase of the Disposing Shares
      the other transactions contemplated by this Agreement and supersedes and cancels
      in all respects all previous agreements, letters of intent, correspondence,
      understandings, agreements and undertakings (if any) between the parties hereto
      with respect to the subject matter hereof, whether such be written or
      oral.

    

    (G)
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument and each of which shall
      be
      binding on and enforceable against the party who shall have executed
      it.

    

    (H)
      No
      variation or amendment to or waiver of any of the provisions of this Agreement
      shall be valid or effective unless in writing and signed by or on behalf of
      each
      party.

    

    (I)
      Each
      of the parties to this Agreement shall cooperate with the other and shall
      execute and deliver to the other such other instruments and documents and take
      such other action as may reasonably be requested from time to time by that
      other
      party in order to carry out, evidence and confirm their respective rights and
      the intended purpose of this Agreement.

    

    
      
        
        

      

      
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          4 -

        
          

        

      

      
        
        

      

    

    11.
      GOVERNING LAW AND JURISDICTION

    

    (A)
      This
      Agreement is governed by and shall be construed in accordance with the laws
      of
      Hong Kong and the parties hereto hereby submit to the non-exclusive jurisdiction
      of Hong Kong in connection herewith.

    

    (B)
      The
      submission to the jurisdiction of the courts of Hong Kong shall not (and shall
      not be construed so as to) limit the right of either of the parties hereto
      to
      take proceedings against the other in any court of competent jurisdiction nor
      shall the taking of proceedings by either of the parties hereto in any one
      or
      more jurisdictions preclude it from taking proceedings in any other jurisdiction
      (whether concurrently or not) if and to the extent permitted by applicable
      law.

     

    
 

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has executed this Agreement as of the date first set forth
      above.

     

    
      	 	
              Physical
                Spa & Fitness Inc.

            
	 	
              (The
                Vendor)

            
	 	 
	 	
              By:
                /s/ Darrie Lam

            
	 	
              Name:
                Darrie Lam

            
	 	
              Its:
                Chief Financial Officer

            
	 	 
	 	
              Ngai
                Keung Luk

            
	 	
              (The
                Purchaser)

            
	 	 
	 	
              By:
                /s/ Ngai Keung Luk

            
	 	
              Name:
                Ngai Keung Luk

            
	 	
              (In
                His Individual Capacity)

            

    

    

    

    
      
        
        

      

      
        -
          5 -Exhibit 10.2 Employment Agreement

    EMPLOYMENT
      AGREEMENT

    DATED
      AS
      OF MARCH 6, 2006

    BETWEEN
      PAPERFREE MEDICAL SOLUTIONS, INC. AND STEPHEN HAWKSWORTH

     

    STEPHEN
      HAWKSWORTH ("Executive") and PAPERFREE MEDICAL SOLUTIONS, INC. ("Company")
      hereby agree as follows:

     

    1.
      Term.
      The term of Executive's employment by Company under this Agreement (the "Term")
      shall commence on and as of March 6, 2006 for a one-year term ending March
      5,
      2007, and continue thereafter for successive one-year terms (the initial
      one-year term and each one-year term thereafter, collectively the "Term"),
      unless either Company or Executive gives notice to the other at least three
      (3)
      months in advance of the expiration of the current term that it wishes to
      terminate this Agreement, in which event this Agreement shall terminate as
      of
      the end of such term, unless earlier terminated as hereafter
      provided.

     

    2.
      Title
      and Duties. During the Term, Executive shall be employed by Company as Chief
      Executive Officer ("CEO") reporting to the Board of Directors of the Company.
      Executive shall devote his full-time attention and energies to the business
      of
      the Company; provided, however, that the foregoing shall not preclude Executive
      from engaging in charitable and community affairs, or participating as a
      director of a non competing business company, or managing his personal
      investments. Executive shall perform such duties, which shall not be
      inconsistent with his position as CEO of Company, as are assigned to him from
      time to time by the Chairmen of the Board of Company, and any other duties
      undertaken or accepted by Executive consistent with his position as Chief
      Executive Officer of the Company. Every executive officer of the Company (other
      than the Board of Directors) designated by the Executive shall report to him.
      Company agrees to use its best efforts to cause Executive to be elected to
      the
      Board of Directors of the Company (or its successor in interest), at the next
      annual meeting of the Company or earlier if possible, and to nominate Executive
      as a member of the management slate at each annual meeting of stockholders
      during employment hereunder at which Executive's director class comes up for
      election. Executive agrees to serve on the Board if elected. A failure to elect
      the Executive to the Board of Directors shall give the Executive the right
      to
      terminate his employment under this Agreement in accordance with Section
      10.

     

    3.
      Salary. Executive shall receive a salary of $100,000 per annum during the first
      year of the Term. Executive's salary shall be reviewed at least annually and
      may
      be increased but not decreased. Salary payments shall be made in equal
      installments in accordance with Company's then prevailing payroll
      policy.

     

    4.
      Performance Bonus. Within each year of the Term, Executive will be eligible
      for
      a performance bonus which will be determined by the mutual agreement of
      Executive and the Board of Directors, but which shall not be less than $80,000
      for any year during the Term. The performance bonus shall be subject to the
      following conditions:

    

    (a)
      The
      bonus shall be earned by Executive through the company meeting or exceeding
      fiscal quarterly performance metrics that are mutually agreed by Executive
      and
      the Board of Directors. 

    

    (b)
      The
      fiscal quarterly performance metrics may be revised within any year by mutual
      agreement of Executive and the Board of Directors to reflect changing business
      conditions.

    

    (c)
      The
      bonus shall be paid in equal installments within thirty (30) days of the end
      of
      the fiscal quarter in which the metrics are satisfied except that Executive
      shall have the right to achieve the metrics of any previous quarter, wherein
      the
      metrics went unsatisfied, in any subsequent quarter throughout the fiscal
      year.

    

    (d)
      The
      performance bonus shall be reviewed at least annually by the Board of Directors
      and may be increased but not decreased.

     

    5.
      Stock
      Warrants. Subject to Board approval, Executive shall be granted stock warrants
      (the "Two Million Warrants") to purchase an aggregate of Two Million (2,000,000)
      shares of common stock of the Company. The Two Million Warrants are deemed
      to be
      of record as of March 6, 2006. The Two Million Options shall be granted in
      accordance with, and subject to the following:

     

    (a)
      The
      exercise price of the Two Million Warrants shall be equal to the closing price
      plus Ten Percent (10%) per share of the common stock of the Company on the
      day
      before this Agreement is executed, delivered, and announced. The Two Million
      Warrants may be exercised at any time after vesting but prior to
      expiration.

     

    (b)
      The
      Two Million Options shall be subject to the terms and conditions of the 2004
      Directors, Officers and Consultants Stock Option, Stock Warrant, and Stock
      Award
      Plan; a copy of which is attached hereto and incorporated herein by reference
      as
      Exhibit "A".

     

    (c)
      The
      Two Million Warrants shall vest in such shares according to the following
      schedule:

     

    Tranche
      No. of Shares  Vesting

    -------
      -------------  -------

    1
      500,000
 
      Immediately upon execution of

    this
      Agreement

    2
      500,000
 June
      5,
      2006

    3
      500,000
 September
      5, 2006

    4
      500,000
 December
      5, 2006

     

    The
      vesting schedule shall be accelerated in the event of a Non-Fault Termination
      (as defined in Section 11).

     

    (d)
      In
      the event there is a Change of Control at any time during the Term, then the
      acceleration of the vesting schedule of the Two Million Warrants and the
      exercisiability of the Two Million Warrants shall be governed by the Plan upon
      such Change of Control.

     

    (e)
      The
      Two Million Warrants shall expire on the earlier of ten years from the date
      of
      grant or the termination date plus two (2) years after termination of
      Executive's employment with Company.

     

    (f)
      At
      the end of the initial Term, Executive shall have the right, for a period of
      six
      (6) months thereafter, exercisable on ten (10) days written notice to Company
      ("Put Period"), to require the Company to purchase from him up to 2,000,000
      shares of the common stock of the Company held by Executive as a result of
      the
      exercise of the Two Million Warrants at a purchase price equal to the closing
      price less ten percent (10%) of the common stock of the Company on the day
      after
      the initial Term.

     

    (g)
      In
      the event the outstanding shares of common stock of Company are changed into
      or
      exchanged for a different number or kind of shares or other securities of
      Company or of another corporation by reason of merger, consolidation, other
      reorganization, reclassification, combination of shares, stock split-up or
      stock
      dividend, rights of the Two Million Warrants granted hereunder, the number
      of
      subject shares and the exercise price (and other terms herein relating thereto)
      shall be adjusted appropriately.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.
      Benefits. Executive shall be entitled to receive the following
      benefits:

     

    (a)
      Health care coverage equivalent to that provided to the Company's other
      executive officers at the Executive’s option subject to the stated Enrollment
      Periods then prevailing.

     

    (b)
      Reimbursement of reasonable living expenses in the Kokomo area to a monthly
      maximum of two thousand five hundred dollars ($2,500) per month.

    

    (c)
      Three
      (3) weeks paid vacation each year during the Term. The maximum accrued vacation
      shall be six (6) weeks.

       

    (d)
      The
      Executive shall be treated in the same manner as, and shall be entitled to
      such
      benefits and other perquisites and terms and conditions of employment no less
      favorable than those provided to the most senior officers of the
      Company.

     

    7.
      Reimbursement for Expenses. Executive shall be expected to incur various
      business expenses customarily incurred by persons holding like positions,
      including but not limited to traveling, entertainment and similar expenses,
      all
      of which are to be incurred by Executive in the belief that they will benefit
      the Company. Subject to Company's policy regarding the reimbursement and
      non-reimbursement of such expenses, Company shall reimburse Executive for such
      expenses from time to time, at Executive's request, and Executive shall account
      to Company for such expenses.

     

    8.
      Protection of Company's Interests.

     

    (a)
      During the Term of Executive's employment by Company, Executive will not compete
      in any manner, directly or indirectly, whether as a principal, employee,
      consultant, agent, owner or otherwise, with Company or any affiliate thereof
      except that the foregoing will not prevent Executive from holding at any time
      less that 5% of the outstanding capital stock of any company whose stock is
      publicly traded.

     

    (b)
      To
      the extent permitted by law, all rights worldwide with respect to any and all
      intellectual or other property of any nature produced, created or suggested
      by
      Executive during the Term of his employment or resulting from his service shall
      be deemed to be a work for hire and shall be the sole and exclusive property
      of
      Company. Executive agrees to execute, acknowledge and deliver to Company, at
      Company's request, such further documents as Company finds appropriate to
      evidence Company's rights in such property. Any confidential and/or proprietary
      information of Company or any affiliate thereof (including, without limitation,
      any information relating to the identities, capabilities, compensatory and
      contractual arrangements and/or general personnel data of employees of Company
      and its affiliates) shall not be used by Executive or disclosed or made
      available by Executive to any person except as required in the course of his
      employment, and upon expiration or earlier termination of the term of this
      Agreement, Executive shall return to Company all such information that exists
      in
      written or other physical form (and all copies thereof) under his control.
      Executive agrees to sign the Company's standard form of confidentiality
      agreement contemporaneously with the execution and delivery of this
      Agreement.

     

    9.
      Termination. In addition to any right to terminate under Section 1
      above:

     

    (a)
      Company shall have the right to terminate Executive's employment with Company
      under the following circumstances:

     

    (i)
      Upon
      death of Executive;

     

    (ii)
      Upon
      notice from the Company to Executive in the event of an 

    illness
      or other disability which has totally and permanently

    incapacitated
      him from performing his duties as Executive on a

    substantially
      full-time basis as described in the Company's long

    term
      disability plan;

     

    (iii)
      For
      good cause immediately upon notice from Company. Termination 

    by
      Company of Executive's employment for "good cause" as used in

    this
      Agreement shall mean actual fraud, embezzlement or

    intentional
      misconduct which has caused demonstrable and serious

    injury
      to
      the Company; or

     

    (iv)
      Conviction of a felony or crime of moral turpitude which has 

    caused
      serious injury to the Company.

     

    (b)
      If
      Executive's employment is terminated pursuant to Section 9(a)(iii) or 9(a)(iv)
      above, Executive's rights and Company's obligations hereunder, and all unvested
      stock warrants granted in accordance with this Agreement which have not already
      vested shall forthwith terminate in their entirety, except that, notwithstanding
      the foregoing, (i) the expiration date of any Warrants which have already vested
      in accordance with this Agreement shall be 30 days after the date of termination
      pursuant to Section 9(a).

     

    (c)
      If
      Executive's employment is terminated pursuant to this Section 9 no Termination
      Payment (as defined in Section 11) shall be payable.

     

    10.
      Termination by Executive. Prior to the expiration of the Term, Executive shall
      have the right to terminate his employment under this Agreement upon 30 days'
      notice to Company given within 60 days following the occurrence of any of the
      following events, provided that Company shall have 20 days after the date such
      notice has been given to Company in which to cure the conduct or cause specified
      in such notice:

     

    (a)
      Executive is not elected or retained in accordance with Section 2 as CEO
      (reporting to Company's Board of Directors) and a director of
      Company;

     

    (b)
      There
      is a significant change in the nature or scope of the Executive's authority,
      powers, functions, duties or responsibilities;

     

    (c)
      There
      is a substantial and continued reduction in the level of support services,
      staff, secretarial and other assistance, office space and accoutrements
      available to a level below that which is reasonably necessary for the
      performance of Executive's duties;

     

    (d)
      Company shall fail to issue stock pursuant to Executive's stock warrants
      provided for herein or shall reduce his salary or shall deny Executive
      eligibility for annual discretionary bonuses, or Company shall fail to make
      any
      compensation payment required hereunder;

     

    (e)
      A
      Change of Control shall occur; and

     

    (f)
      Any
      breach of this agreement by the Company.

     

    11.
      Termination Payment. If a Non-Fault Termination (as defined below) of
      Executive's employment with Company shall occur other than by means of the
      death
      or disability of Executive, Executive shall be entitled to receive a lump sum
      payment equal to the Executive's then annual base salary and bonus (provided,
      however, that in no event shall the annual bonus be less than $50,000)
      (Termination Payment). The Termination Payment shall be made to Executive not
      later than 30 days after the date of such Non-Fault Termination. "Non-Fault
      Termination" shall mean Executive's employment with Company shall be terminated
      (i) without cause, (ii) be reason of death or total and permanent disability
      pursuant to Section 9(a)(i) or (ii) hereof, or (iii) Executive shall validly
      terminate his employment pursuant to Section 11 hereof. Except for Executive's
      rights under Sections 5(e), 5(f) and 6(e), which shall remain in full force
      and
      effect after any Non-Fault Termination of this Agreement, and for the
      acceleration of the vesting of the Two Million Warrants, the Termination Payment
      described in this Section 11 shall be Executive's sole and exclusive remedy
      under this Agreement in the event of a Non-Fault Termination.

     

    12.
      Assignment. Company may assign this Agreement or all or any part of its rights
      hereunder to any entity that succeeds to all or substantially all of Company's
      assets or that holds, directly or indirectly, all or substantially all of the
      capital stock of Company or that is otherwise a successor in interest to Company
      generally, and this Agreement shall insure to the benefit of, and be binding
      upon, such assignee or successor in interest. This Agreement is personal to
      Executive and Executive may not, without the express written permission of
      Company, assign or pledge any rights or obligations hereunder to any person,
      firm, corporation or other entity.

     

    13.
      No
      Conflict with Prior Agreements. Executive represents and warrants to Company
      that, to the best of his personal knowledge and belief, neither the execution
      and delivery of this Agreement, his commencement of employment hereunder nor
      the
      performance of his duties hereunder conflicts with any contractual commitment
      on
      his part of any third party or violates or interferes with any rights of any
      third party.

     

    14.
      Key
      Man Insurance. Company shall have the right to secure, in its own name or
      otherwise, and at its own expense, life, disability, accident or other insurance
      covering Executive and Executive shall have no right, title or interest in
      or to
      such insurance. Executive shall assist Company in procuring such insurance
      by
      submitting to reasonable examinations and signing such applications and other
      instruments as may be required by the insurance carriers to which applications
      is made for any such insurance.

     

    15.
      Post-Termination Obligation. After the expiration or earlier termination of
      the
      Executive's employment hereunder for any reason whatsoever, Executive shall
      not
      either alone or jointly, with or on behalf of others, either directly or
      indirectly, expressly or implied, whether as principal, partner, agent,
      shareholder, director, employee, consultant or otherwise, at any time during
      a
      period of two years following such expiration or termination, solicit in any
      manner whatsoever the employment or engagement of, either for his own account
      or
      for any other person, firm, company or other entity, any person who is employed
      by Company or any affiliated entity, whether or not such person would commit
      any
      breach of his contract of employment by reason of his leaving the service of
      Company or any affiliated entity.

     

    16.
      Reimbursement of Legal Expenses. Company agrees to reimburse Executive for
      his
      reasonable out-of-pocket legal expenses and costs incurred in connection with
      the negotiation and preparation of this Agreement.

     

    17.
      Entire Agreement, Amendment, Waiver, Etc.

     

    (a)
      This
      Agreement supersedes all prior and/or contemporaneous agreement and/or
      statements, whether written or oral, concerning the terms of Executive's
      employment, and no amendment or modification of this Agreement shall be binding
      unless set forth in writing signed by Company and Executive. No waiver by either
      party of any breach by the other party of any provision or condition of this
      Agreement shall be effective unless in writing and signed by the party effecting
      the waiver, and no such waiver shall be deemed a waiver of any similar or
      dissimilar provision or condition at the same or any prior or subsequent
      time.

     

    (b)
      All
      payments required to be made to Executive hereunder, whether during the term
      of
      his employment hereunder or otherwise, shall be subject to all applicable
      federal, state and local tax withholding laws.

     

    (c)
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Indiana. In the event of any controversy or claim by either party
      hereunder, the prevailing party in any final and legally binding adjudication
      (as to which all periods for the filing of any appeal have expired) with respect
      to such controversy or claim shall be entitled to reimbursement from the losing
      party for reasonable attorney's fees and costs and for all other reasonable
      expenses of such adjudication.

     

    18.
      Notices. All notices that either party is required or may desire to give the
      other shall be in writing and shall be effective (i) upon personal delivery
      or
      (ii) three business days after deposit of the same with the United States Postal
      Service for delivery by certified mail, return receipt requested, addressed
      to
      the party to be given notice as follows:

     

    To
      Company: PaperFree Medical Solutions, Inc.

    121
      West
      Sycamore Street

    Kokomo,
      Indiana 46901

    Attn:
      William Sklar, Chairman

     

    To
      Executive: Stephen Hawksworth

    1725
      Kent
      Road

    Hoffman
      Estates, Illinois 60195

     

    Either
      party may by written notice designate a different address for giving notices.
      The date of mailing of any such notices shall be deemed to be the date on which
      such notice is given.

     

    19.
      Arbitration. Any dispute arising out of this Agreement shall be determined
      by
      arbitration in Indianapolis, Indiana, under the rules of the American
      Arbitration Association then in effect and judgment upon any award pursuant
      to
      such arbitration may be enforced in any court having jurisdiction thereof,
      provided each of the parties to this Agreement will appoint one person as an
      arbitrator to hear and determine the dispute, and if they are unable to agree,
      then the two arbitrators so chosen will select a third impartial arbitrator
      whose decision will be final and conclusive upon the parties to this Agreement.
      Subject to Section 16(c), the expenses of the arbitration proceedings concluded
      pursuant to this paragraph will be borne by the parties in such proportions
      as
      the arbitrators decide.

     

    20.
      Certain Additional Payments by the Company. Anything in this Agreement to the
      contrary notwithstanding, in the event it shall be determined that any payment,
      award, benefit or distribution by the Company to or for the benefit of the
      Executive would be subject to the excise tax imposed by Section 4999 of the
      Code
      or any corresponding provisions of state or local tax laws as a result of
      payment upon a change of control, or any interest or penalties are incurred
      by
      the Executive with respect to such excise tax (such excise tax, together with
      any such interest and penalties, are hereinafter collectively referred to as
      the
      "Excise Tax"), then the Executive shall be entitled to receive an additional
      payment (a "Gross-Up Payment") in an amount such that after payment by the
      Executive of all taxes (including any interest or penalties imposed with respect
      to such taxes) imposed upon the Gross-Up Payment, the Executive retains an
      amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
      payments.

     

    21.
      Headings. The headings set forth herein are included solely for the purpose
      of
      identification and shall not be used for the purpose of construing the meaning
      of the provisions of this Agreement.

     

     

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

    

    PAPERFREE
      MEDICAL SOLUTIONS, INC.

    

    
      	 /s/ Stephen Hawksworth	 /s/ William Sklar
	
              ________________________

              STEPHEN
                HAWKSWORTH

            	
              ________________________

              WILLIAM
                SKLAR, CHAIRMAN

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