Document:

AUXER INDUSTRIES, INC.

                         NONSTATUTORY STOCK OPTION PLAN

1.     Purpose
       -------

The purpose of this Nonstatutory Stock Option Plan (hereinafter referred to as
the "Plan"), is to provide a special incentive to selected individuals who have
made significant contributions to the business and success of AUXER INDUSTRIES,
INC., (hereinafter referred to as the "Company"). The Plan is designed to
accomplish this purpose by offering such individuals options ("Options") to
purchase shares of the common stock of the Company ("Shares") so that they will
share in the Company's success.

2.     Administration
       --------------
The Plan shall be administered by the board of directors of the Company or by an
option committee to be established by the board of directors of the Company. If
an option committee administers the Plan, it shall consists of three or more
members, at least one of whom shall be neither an officer nor an employee of the
Company. (The board of directors or an option committee shall be referred to the
"Board" herein).

The  Board shall have authority, consistent with the Plan,

     (a)  to determine which individuals shall be granted Options;
     (b)  to determine the time or times when Options shall
          be granted and the number of Shares to be subject
          to each Option;
     (c)  to determine the exercise price of the Shares
          subject to each Option and the method of payment
          of such price;
     (d)  to determine the time or times when each Option becomes exercisable
          and the duration of the exercise period, subject to the limitations
          contained in Paragraph 6(b);
     (e)  to prescribe the form or forms of the instruments evidencing any
          options granted under the Plan and of any other instruments required
          under the Plan and to change such forms from time to time;
     (f)  to adopt, amend and rescind rules and regulations
          for the administration of the Plan and the Options
          and for its own acts and proceedings; and
     (g)  to decide all questions and settle all controversies and disputes
          which may arise in connection with the Plan. All decisions,
          determinations and interpretations of the Board shall be binding on
          all parties concerned.

8.     Participants
       ------------

The Participants in the Plan shall be employees, officers, directors,
consultants of the Company or any other parties who have made a significant
contribution to the business and success of the Company, as may be selected from
time to time by the Board in its discretion. In any grant of Options after the
initial grants, Participants who were previously granted Options or sold Shares
under the Plan may be included or excluded.

9.     Limitations
       -----------

No Option shall be granted under the Plan after March 31, 2001, but Options
theretofore granted may extend beyond that date. Subject to adjustments as
provided in Section 8 of the Plan, the number of Shares which may be issued
under the Plan shall not exceed two (2,000,000) million in the aggregate. To the
extend that any Option granted under the plan shall expire or terminate
unexercised or for any reason become unexercisable as to any Shares subject
thereto, such Shares shall thereafter be available for further grants under the
Plan, within the limit specified above.

10.     Shares to be Issued
        -------------------

Shares to be issued under the Plan may constitute an original issue of
authorized Shares or may consist of previously issued Shares acquired by the
Company, as shall be determined by the Board. The Board and the proper officers
of the Company shall take any appropriated action required for such issuance.
The maximum number of Shares which may be issued under the Plan is two millions
(2,000,000) Shares.

11.     Terms and Conditions of Options
        -------------------------------

All Options granted under the Plan shall be subject to the following terms and
conditions (except as provided in Section 7) and to such other terms and
conditions as the Board shall determine to be appropriate to accomplish the
purposes of the Plan:

     (A) Exercise price. The exercise price under each Option shall be
determined by the Board and may be more, equal to or less than the then current
market price of the Shares as the Board may deem to be appropriate: provided,
however, that in the event an option committee shall determine to grant an
Option at less than 85% of the then current market price of the Shares, such
Option shall not be granted by the option committee without the prior approval
of the board of directors.

     (B) Period of Options. The period of an Option shall not exceed five years
from the date of grant.

     (C) Exercise of Options

          (i)  Each Option shall be made exercisable at such time or times,
               whether or not in installments, as the Board shall prescribe at
               the time the Option is granted.

          (ii) A person electing to exercise an Option shall give written notice
               to the Company, as specified by the Board, of his/her election
               and of the number of Shares he/she has elected to purchase, such
               notice to be accompanied by such instruments or documents as may
               be required by the Board, and shall at the time of such exercise
               tender the purchase price of the Shares he/she has elected to
               purchase.

     (C) Payment for Issuance of Shares. Upon exercise of any Option granted
hereunder, payment in full shall be made at the time of such exercise for all
such Shares then being purchased.

The Company shall not be obligated to issue any Shares unless and until, in the
opinion of the Company's counsel, all applicable laws and regulations have been
complied with, nor, in the event the Shares at the time are not listed upon any
stock exchange, unless and until the Shares to be issued have been listed or
authorized to be added to the list upon official notice of issuance upon such
exchange, nor unless or until all other legal matters in connection with the
issuance and delivery of Shares have been approved by the Company's counsel.
Without limiting the generality of the foregoing, the Company may require from
the Participant such investment representation or such agreement, if any, as
counsel for the Company may consider necessary in order to comply with the
Securities Act of 1933 as then in effect, and may require that the Participant
agree that any sale of the Shares will be made only in such manner as is
permitted by the Board and that a participant will notify the Company when
he/she intends to make any disposition of the Shares whether by sale, gift or
otherwise. The Participant shall take any action reasonably requested by the
Company in such connection. A Participant shall have the rights of a stockholder
only as to Shares actually acquired by him/her under the Plan.

     (D) Transferability of Options. No Option may be transferred by the
Participant otherwise than by will or by the laws of descent and distribution,
and during the Participant's lifetime the Option may be exercised only by the
Participant.

     (E) Termination of Employment. If the Participant is an employee and
his/her employment terminates for any reason other than his/her death, the
Participant may, unless discharged for cause, thereafter exercise his/her Option
as provided below, but only to the extent the Participant was entitled to
exercise the Option on the date when his/her employment terminated. If such
termination of employment is voluntary on the part of the Participant, he/she
may exercise his/her Option only within ten days after the date of termination
of employment (unless a longer period not in excess of three months is allowed
by the Board). If such termination of employment is involuntary on the part of
the Participant, he/she may exercise his/her Option only within three months
after the date of termination of employment. In no event, however, may such
Participant exercise his/her Option at a time when the Option would not be
exercisable had the Participant remained an employee or when the termination was
for cause. For purposes of this subsection (f), a Participant's employment shall
not considered terminated in the case of sick leave or other bona fide leave of
absence approved by the Company or a subsidiary, or in the case of a transfer to
the employment of a subsidiary or the employment of the Company. Anything herein
to the contrary notwithstanding, an Option may be exercised only to the extent
exercisable on the date of termination of employment by death or otherwise.

     (F) Retirement or Resignation. If prior to the expiration date of a
Participant's Option an optionee shall retire or resign with the Company's
consent such Option may be exercised in the same manner as if the Optionee had
continued in the Company's employ; provided, however, the Board may terminate,
at any time prior to exercise, all unexercised Options if it shall determine
that the retired or resigning optionee has engaged in any activity detrimental
to the Company's interest.

     (G) Death. If a Participant dies at a time when he/she is entitled to
exercise an Option, then at any time or times within one (1) year after his/her
death (or such further period as the Board may allow) such Option may be
exercised, as to all or any of the Shares which the Participant was entitled to
purchase immediately prior to his/her death, by his/her executor or
administrator or the person or persons to whom the Option is transferred by will
or the applicable laws of descent and distribution, and except as so exercised
such Option shall expire at the end of such period. In no event, however, may an
Option be exercised after the expiration of the Option period.

8.     Replacement Options
       -------------------

The Company may grant Options under the Plan on terms differing from those
provided for in Section 6 where such Options are granted in substitution for
Options held by employees of other corporations who concurrently become
employees of the Company or a subsidiary as the result of a merger,
consolidation or other regoranization of the employing corporation with the
Company of subsidiary, or the acquisition by the Company or a subsidiary of the
business, property or stock of the employing corporation. The Board may direct
that the substitute Options be granted on such terms and conditions as the Board
considers appropriate in the circumstances.

9.     Changes in Stock
       ----------------

In the event of a stock dividends, stock split or recapitalization or merger in
which the Company is the surviving corporation, or other similar capital change,
the number and kind of shares of stock or securities of the Company to be
subject to the Plan and to options then outstanding or to be granted thereunder,
the maximum number of Shares or securities which may be issued or sold under the
Plan, the exercise price and other relevant provisions shall be appropriately
adjusted by the Board of the Company, the determination of which shall be
binding on all persons.

10.     Employment Rights
        -----------------

The adoption of the plan or the granting of an Option does not confer upon any
individual any right to employment or continued employment with the Company or a
subsidiary, as the case may be, nor does it interfere in any way with the right
of the Company or a subsidiary to terminate the employment of any of its
employees at any time.

11.     Amendment
        ---------

The Board may at any time discontinue granting Options under the Plan. The Board
of the Company may at any time or times amend the Plan or amend any outstanding
Option or Options for the purpose of satisfying the requirements of any changes
in applicable laws or regulations or for any other purpose which may at the time
be permitted by law provided, however, that, except to the extent required or
permitted under Section 8, no such amendment shall void or diminish Options
previously granted without the consent of the Participant, nor shall any
amendment increase or accelerate the conditions and actions required for the
exercise of an Option unless the Participant shall have been discharged from the
Company's employment for cause.

Adopted by the Board of DirectorsASSET PURCHASE AGREEMENT

                                  by and among

                             CLIFTON TELECARD, INC.

                             a Delaware Corporation

                                       and

                              THE AUXER GROUP, INC.

                             A Delaware Corporation

                                       and

                         CLIFTON TELECARD ALLIANCE, INC.

                            a New Jersey Corporation

                       effective as of September 27, 2000

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT, made and entered into this 27th day of
September, 2000, by and among Clifton Telecard, Inc. a Delaware Corporation with
its principal place of business located at 12 Andrews Drive, West Paterson, NJ
07424 ("Telecard"); The Auxer Group, Inc., a Delaware corporation with its
principal place of business located at 12 Andrews Drive, West Paterson, NJ 07424
("Auxer") and Clifton Telecard Alliance, Inc. a New Jersey Corporation with its
principal place of business at 8901 Kennedy Boulevard, North Bergen, NJ 07047
("Clifton"). Premises

     A. This Agreement provides for the acquisition of all of the assets as
listed on Schedule A and the liabilities listed on Schedule B attached hereto of
Clifton by Telecard and in connection therewith the payment of $500,000, the
issuance of a $200,000 promissory note plus the issuance of 2,000,000 ($ 0.0001
par value per share) shares of restricted common stock of Auxer and other
consideration.

     B. The majority shareholders and boards of directors of Telecard, Auxer and
Clifton have determined, subject to the terms and conditions set forth in this
Agreement, that the transaction contemplated hereby is desirable and in the best
interests of their stockholders, respectively. This Agreement is being entered
into for the purpose of setting forth the terms and conditions of the proposed
acquisition.

     C. Auxer is the sole shareholder of Telecard and this Agreement provides
for the transfer of all the assets listed in Schedule A and all the liabilities
listed on Schedule B of Clifton to Telecard.

     D. Both parties agree that the primary purpose for this Agreement is for
the running of the time to go through the switches located in California and
both parties will undertake all steps to ensure that this part of the
transaction is undertaken immediately after the Closing Date of this Agreement.
Within one week of the Closing Date, all current and future telecommunications
traffic will be run through the switch equipment to be owned by Auxer's
subsidiary, Auxer Telecom.

     E. Clifton Telecard, Inc. agrees to obtain its own lease from sellers
landlord as soon as possible. This representation shall survive the closing.

Agreement

     NOW, THEREFORE, on the stated premises and for and in consideration of the
mutual covenants and agreements hereinafter set forth and the mutual benefits to
the parties to be derived herefrom, it is hereby agreed as follows:

                                    ARTICLE I

                  REPRESENTATIONS, COVENANTS AND WARRANTIES OF
                               TELECARD AND AUXER

     As an inducement to and to obtain the reliance of Clifton, Telecard and
Auxer represent and warrant as follows:

     Section 1.1 ORGANIZATION. Telecard and Auxer are corporations duly
organized, validly existing, and in good standing under the laws of Delaware and
have the corporate power and are duly authorized, qualified, franchised and
licensed under all applicable laws, regulations, ordinances and orders of public
authorities to own all of their properties and assets and to carry on its
business in all material respects as it is now being conducted, including
qualification to do business as a foreign corporation in the jurisdiction in
which the character and location of the assets owned by it or the nature of the
business transacted by it requires qualification. Included in the Telecard and
Auxer Schedules (as hereinafter defined) are complete and correct copies of the
articles of incorporation, bylaws and amendments thereto of both Telecard and
Auxer as in effect on the date hereof. The execution and delivery of this
Agreement does not and the consummation of the transactions contemplated by this
Agreement in accordance with the terms hereof will not violate any provision of
Auxer or Telecard's articles of incorporation or bylaws. Auxer and Telecard have
full power, authority and legal right and have taken all action required by law,
its articles of incorporation, its bylaws or otherwise to authorize the
execution and delivery of this Agreement.

     Section 1.2 OPTIONS AND WARRANTS. There are no existing options, warrants,
calls or commitments of any character to which Telecard is a party and by which
it is bound. Telecard have no securities, warrants or options authorized or
issued. Auxer presently has 4,500,000 options outstanding.

     Section 1.3 LITIGATION AND PROCEEDING. To the best of Auxer's knowledge and
belief, there are no actions, suits, proceedings or investigations pending or
threatened by or against Auxer or affecting Auxer or its properties, at law or
in equity, before any court or other governmental agency or instrumentality,
domestic or foreign or before any arbitrator of any kind that would have a
material adverse affect on the business, operations, financial condition or
income of Auxer. Auxer does not have any knowledge of any default on its part
with respect to any judgment, order, writ, injunction, decree, award, rule or
regulation of any court, arbitrator or governmental agency or instrumentality or
of any circumstances which, after reasonable investigation, would result in the
discovery of such a default.

     To the best of Telecard's knowledge and belief, there are no actions,
suits, proceedings or investigations pending or threatened by or against
Telecard or affecting Telecard or its properties, at law or in equity, before
any court or other governmental agency or instrumentality, domestic or foreign
or before any arbitrator of any kind that would have a material adverse affect
on the business, operations, financial condition or income of Telecard. Telecard
does not have any knowledge of any default on its part with respect to any
judgment, order, writ, injunction, decree, award, rule or regulation of any
court, arbitrator or governmental agency or instrumentality or of any
circumstances which, after reasonable investigation, would result in the
discovery of such a default.

     Section 1.4 MATERIAL CONTRACT DEFAULTS. To the best of Auxer's knowledge
and belief, Auxer is not in default in any material respect under the terms of
any outstanding contract, agreement, lease or other commitment which is material
to the business, operations, properties, assets or condition of Auxer, and there
is no event of default in any material respect under any such contract,
agreement, lease or other commitment in respect of which Auxer has not taken
adequate steps to prevent such a default from occurring.

     To the best of Telecard's knowledge and belief, Telecard is not in default
in any material respect under the terms of any outstanding contract, agreement,
lease or other commitment which is material to the business, operations,
properties, assets or condition of Telecard, and there is no event of default in
any material respect under any such contract, agreement, lease or other
commitment in respect of which Auxer has not taken adequate steps to prevent
such a default from occurring.

     Section 1.5 NO CONFLICT WITH OTHER INSTRUMENTS. The execution of this
Agreement and the consummation of the transactions contemplated by this
Agreement will not result in the breach of any term or provision of, or
constitute an event of default under, any material indenture, mortgage, deed of
trust or other material contract, agreement or instrument to which Auxer or
Telecard is a party or to which any of their properties or operations are
subject.

     Section 1.6 GOVERNMENTAL AUTHORIZATIONS. To the best of Auxer's knowledge,
Auxer and Telecard have all licenses, franchises, permits or other governmental
authorizations legally required to enable Auxer and Telecard to conduct its
business in all material respects as conducted on the date hereof. Except for
compliance with federal and state securities and corporation laws, as
hereinafter provided, no authorization, approval, consent or order of, or
registration, declaration or filing with, any court or other governmental body
is required in connection with the execution and delivery by Auxer and Telecard
of this Agreement and the consummation of Auxer and Telecard of the transactions
contemplated hereby.

                                   ARTICLE II
                    REPRESENTATIONS, COVENANTS AND WARRANTIES
                                   OF CLIFTON

     As an inducement to, and to obtain the reliance of Auxer and Telecard,
Clifton represents and warrants as follows:

     Section 2.1 ORGANIZATION. Clifton is a corporation duly organized, validly
existing and in good standing under the laws of the state of New Jersey and has
the corporate power and is duly authorized, qualified, franchised and licensed
under all applicable laws, regulations, ordinances and orders of public
authorities to own all of its properties and assets and to carry on its business
in all material respects as it is now being conducted, including qualification
to do business as a foreign entity in the country or states in which the
character and location of the assets owned by it or the nature of the business
transacted by it requires qualification. Included in the Clifton Schedules (as
hereinafter defined) are complete and correct copies of the certificate of
incorporation, memorandum and articles of association and amendments thereto of
Clifton as in effect on the date hereof. The execution and delivery of this
Agreement does not and the consummation of the transactions contemplated by this
Agreement in accordance with the terms hereof will not, violate any provision of
Clifton's certificate of incorporation or bylaws. Clifton has full power,
authority and legal right and has taken all action required by law, its articles
of incorporation, bylaws or otherwise to authorize the execution and delivery of
this Agreement.

     Section 2.2 MINIMUM REVENUE PER MONTH. Clifton hereby represents that the
assets being transferred will generate and maintain a minimum of $2,000,0000 in
revenue per month for the first year of this Agreement. However, this is not a
guarantee and will depend upon the quality, service and competitive pricing of
the buyers.

     Section 2.3 AUTHORIZATION. Mustafa Qattous, President of Clifton and the
other officers of Clifton will sign all necessary documents pursuant to the
terms of this Agreement.

     Section 2.4     TAX MATTERS; BOOKS & RECORDS

(a) The books and records, financial and others, of Clifton are in all material
respects complete and correct and have been maintained in accordance with good
business accounting practices; and

(b) Clifton has no liabilities with respect to the payment of any country,
federal, state, county, local or other taxes (including any deficiencies,
interest or penalties) except as set forth in Schedule B.

     Section 2.5 INFORMATION. The information concerning Clifton as set forth in
this Agreement and in the Clifton Schedules is complete and accurate in all
material respects and does not contain any untrue statement of a material fact
or omit to state a material fact required to make the statements made, in light
of the circumstances under which they were made, not misleading.

     Section 2.6     ABSENCE OF CERTAIN CHANGES OR EVENTS.
Except as described herein or in the Clifton Schedules,
since June 30, 2000:

     (a) Clifton has not: (i) waived any rights of value which in the aggregate
are extraordinary or material considering the business of Clifton; (ii) made any
material change in its method of management, operation or accounting; or (iii)
made any accrual or arrangement for or payment of bonuses or special
compensation of any kind or any severance or termination pay to any present or
former officer or employee;

     (b) Clifton has not: (i) borrowed or agreed to borrow any funds or incurred
or become subject to, any material obligation or liability (absolute or
contingent) except liabilities incurred in the ordinary course of business; and

     (c) to the best knowledge of Clifton, it has not become subject to any law
or regulation which materially and adversely affects, or in the future may
adversely affect, the business, operations, properties, assets or condition of.

     Section 2.7 TITLE AND RELATED MATTERS. Clifton has good and marketable
title to and is the sole and exclusive owner of all of its properties,
inventory, interests in properties and assets, real and personal (collectively,
the "Assets") free and clear of all liens, pledges, charges or encumbrances.
Except as set forth in the Clifton Schedules, Clifton owns free and clear of any
liens, claims, encumbrances, royalty interests or other restrictions or
limitations of any nature whatsoever and all procedures, techniques, marketing
plans, business plans, methods of management or other information utilized in
connection with Clifton's business. Except as set forth in the Clifton
Schedules, no third party has any right to, and Clifton had not received any
notice of infringement of or conflict with asserted rights of others with
respect to any product, technology, data, trade secrets, know-how, proprietary
techniques, trademarks, service marks, trade names or copyrights which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a materially adverse affect on the business, operations,
financial conditions or income of Clifton or any material portion of its
properties, assets or rights.

     Section 2.8 LITIGATION AND PROCEEDINGS. There are no actions, suits or
proceedings pending or, to the best of Clifton's knowledge and belief,
threatened by or against or affecting Clifton, at law or in equity, before any
court or other governmental agency or instrumentality, domestic or foreign or
before any arbitrator of any kind that would have a material adverse effect on
the business, operations, financial condition, income or business prospects of
Clifton. Clifton does not have any knowledge of any default on its part with
respect to any judgement, order, writ, injunction, decree, award, rule or
regulation of any court, arbitrator or governmental agency or instrumentality.

     Section 2.9     CONTRACTS.     On the Closing Date:

     (a) There are no material contracts, agreements, franchises, license
agreements, or other commitments to which Clifton is a party or by which it or
any of its properties are bound;

     (b) Clifton is not a party to any contract, agreement, commitment or
instrument or subject to any charter or other corporate restriction or any
judgment, order, writ, injunction, decree or award which materially and
adversely affects, or in the future may (as far as Clifton can now foresee)
materially and adversely affect, the business, operations, properties, assets or
conditions of Clifton; and

     (c) Clifton is not a party to any material oral or written: (i) contract
for the employment of any officer or employee; (ii) profit sharing, bonus,
deferred compensation, stock option, severance pay, pension, benefit or
retirement plan, agreement or arrangement covered by Title IV of the Employee
Retirement Income Security Act, as amended; (iii) agreement, contract or
indenture relating to the borrowing of money; (iv) guaranty of any obligation
for the borrowing of money or otherwise, excluding endorsements made for
collection and other guaranties of obligations, which, in the aggregate exceeds
$1,000; (v) consulting or other contract with an unexpired term of more than one
year or providing for payments in excess of $10,000 in the aggregate; (vi)
collective bargaining agreement; (vii) contract, agreement, or other commitment
involving payments by it for more than $10,000 in the aggregate.

     Section 2.10 NO CONFLICT WITH OTHER INSTRUMENTS. The execution of this
Agreement and the consummation of the transactions contemplated by this
Agreement will not result in the breach of any term or provision of, or
constitute an event of default under, any material indenture, mortgage, deed of
trust or other material contract, agreement or instrument to which Clifton is a
party or to which any of its properties or operations are subject.

     Section 2.11 MATERIAL CONTRACT DEFAULTS. To the best of Clifton's knowledge
and belief, Clifton is not in default in any material respect under the terms of
any outstanding contract, agreement, lease or other commitment which is material
to the business, operations, properties, assets or condition of Clifton, and
there is no event of default in any material respect under any such contract,
agreement, lease or other commitment in respect of which Clifton has not taken
adequate steps to prevent such a default from occurring.

     Section 2.12 GOVERNMENTAL AUTHORIZATIONS. To the best of Clifton's
knowledge, Clifton has all licenses, franchises, permits and other governmental
authorizations that are legally required to enable it to conduct its business
operations in all material respects as conducted on the date hereof. Except for
compliance with federal and state securities or corporation laws, no
authorization, approval, consent or order of, or registration, declaration or
filing with, any court or other governmental body is required in connection with
the execution and delivery by Clifton of the transactions contemplated hereby.

     Section 2.13 COMPLIANCE WITH LAWS AND REGULATIONS. To the best of Clifton's
knowledge and belief, Clifton has complied with all applicable statutes and
regulations of any federal, state or other governmental entity or agency
thereof, except to the extent that noncompliance would not materially and
adversely affect the business, operations, properties, assets or condition of
Clifton or would not result in Clifton's incurring any material liability.

     Section 2.14 INSURANCE. All of the insurable properties of Clifton are
insured for Clifton's benefit under valid and enforceable policy or policies
containing substantially equivalent coverage and will be outstanding and in full
force at the Closing Date.

                                   ARTICLE III

                   EXCHANGE PROCEDURE AND OTHER CONSIDERATION

     Section 3.1 BILL OF SALE FOR ASSETS AND EXHIBIT FOR ASSUMED LIABILITIES. On
the Closing Date, Clifton shall deliver to Auxer a bill of sale for all of the
assets of Clifton and any and all other documents to transfer all of the assets
to Clifton. In addition, at closing Clifton will provide Telecard with a
Schedule of the liabilities of Clifton that Clifton has agreed to assume under
the terms of this Agreement.

     Section 3.2 ISSUANCE OF 2,000,000 COMMON SHARES; PAYMENT OF $500,000 AND
ISSUANCE OF $200,000 PROMISSORY NOTE. In exchange for the transfer of all of the
assets of Clifton to Telecard pursuant to Section 3.1, Auxer shall pay Clifton
$500,000; Telecard shall assume the liabilities of Clifton as indicated on
Schedule B; Auxer shall issue a $200,000 promissory note to Clifton on the
following terms and conditions: terms of repayment: 180 days; interest rate: 8%
per annum; and Auxer shall issue 2,000,000 common shares of Auxer to Clifton at
the time of the Closing. The issued shares shall be restricted under Rule 144 of
the 1933 Securities Act.

     Section 3.3 OTHER CONSIDERATION.

     (a) Mustafa Qattous shall be provided with an employment agreement with
Telecard, attached hereto and made a part hereof, for a three-year term at the
same salary base that he presently has with Clifton.

     (b) Both parties will ensure as soon as possible after closing, all current
and future telecommunications traffic will be run through the switch equipment
in California to be owned by Auxer's subsidiary, Auxer Telecom.

     Section 3.4 EVENTS PRIOR TO CLOSING. Upon execution hereof or as soon
thereafter as practical, management of Auxer, Telecard and Clifton shall
execute, acknowledge and deliver (or shall cause to be executed, acknowledged
and delivered) any and all certificates, opinions, financial statements,
schedules, agreements, resolutions rulings or other instruments required by this
Agreement to be so delivered, together with such other items as may be
reasonably requested by the parties hereto and their respective legal counsel in
order to effectuate or evidence the transactions contemplated hereby, subject
only to the conditions to Closing referenced herein below.

     Section 3.6 CLOSING. The closing ("Closing") of the transactions
contemplated by this Agreement shall be on or about September 19, 2000 ("Closing
Date").

     Section 3.7     TERMINATION.

     (a) This Agreement may be terminated by the board of directors or majority
interest of Shareholders of either Auxer, Telecard or Clifton, respectively, at
any time prior to the Closing Date if:

          (i) there shall be any action or proceeding before any court or any
governmental body which shall seek to restrain, prohibit or invalidate the
transactions contemplated by this Agreement and which, in the judgement of such
board of directors, made in good faith and based on the advice of its legal
counsel, makes it inadvisable to proceed with the exchange contemplated by this
Agreement; or

          (ii) any of the transactions contemplated hereby are disapproved by
any regulatory authority whose approval is required to consummate such
transactions.

In the event of termination pursuant to this paragraph (a) of this Section 3.5,
no obligation, right, or liability shall arise hereunder and each party shall
bear all of the expenses incurred by it in connection with the negotiation,
drafting and execution of this Agreement and the transactions herein
contemplated.

     (b) This Agreement may be terminated at any time prior to the Closing Date
by action of the board of directors of Auxer or Telecard if Clifton shall fail
to comply in any material respect with any of its covenants or agreements
contained in this Agreement or if any of the representations or warranties of
Clifton contained herein shall be inaccurate in any material respect, which
noncompliance or inaccuracy is not cured after 20 days written notice thereof is
given to Clifton. If this Agreement is terminated pursuant to this paragraph (b)
of this Section 3.5, this Agreement shall be of no further force or effect and
no obligation, right or liability shall arise hereunder.

                                   ARTICLE IV

                                SPECIAL COVENANTS

     Section 4.1 ACCESS TO PROPERTIES AND RECORDS. Prior to closing, Auxer,
Telecard and Clifton will each afford to the officers and authorized
representatives of the other full access to the properties, books and records of
each other, in order that each may have full opportunity to make such reasonable
investigation as it shall desire to make of the affairs of the other and each
will furnish the other with such additional financial and operating data and
other information as to the business and properties of each other, as the other
shall from time to time reasonably request.

     Section 4.2 AVAILABILITY OF RULE 144. Auxer shareholders holding
"restricted securities, " as that term is defined in Rule 144 promulgated
pursuant to the Securities Act will remain as "restricted securities." Auxer is
under no obligation to register such shares under the Securities Act, or
otherwise. The stockholders of Auxer holding restricted securities of Auxer and
their respective heirs, administrators, personal representatives, successors and
assigns, are intended third party beneficiaries of the provisions set forth
herein. The covenants set forth in this Section 4.2 shall survive the Closing
and the consummation of the transactions herein contemplated.

     Section 4.3 SPECIAL COVENANTS AND REPRESENTATIONS REGARDING THE AUXER
COMMON SHARES TO BE ISSUED IN THE AGREEMENT. The consummation of this Agreement,
including the issuance of the Auxer Common Shares to Clifton as contemplated
hereby, constitutes the offer and sale of securities under the Securities Act,
and applicable state statutes. Such transaction shall be consummated in reliance
on exemptions from the registration and prospectus delivery requirements of such
statutes which depend, inter alia, upon the circumstances under which Clifton
acquires such securities.

     Section 4.4 THIRD PARTY CONSENTS. Auxer, Telecard and Clifton agree to
cooperate with each other in order to obtain any required third party consents
to this Agreement and the transactions herein contemplated.

     Section 4.5     ACTIONS PRIOR AND SUBSEQUENT TO CLOSING.

     (a) From and after the date of this Agreement until the Closing Date,
except as permitted or contemplated by this Agreement, Clifton, Telecard and
Auxer will each use its best efforts to:

     (i)  carry on its business in substantially the same manner as it has
          heretofore;

     (ii) maintain and keep its properties in states of good repair and
          condition as at present, except for depreciation due to ordinary wear
          and tear and damage due to casualty;

     (iii) maintain in full force and effect insurance comparable in amount and
          in scope of coverage to that now maintained by it;

     (iv) perform in all material respects all of its obligations under material
          contracts, leases and instruments relating to or affecting its assets,
          properties and business;

     (v)  maintain and preserve its business organization intact, to retain its
          key employees and to maintain its relationship with its material
          suppliers and customers; and

     (vi) fully comply with and perform in all material respects all obligations
          and duties imposed on it by all federal and state laws and all rules,
          regulations and orders imposed by federal or state governmental
          authorities.

     Section 4.6     INDEMNIFICATION.

     (a) Clifton hereby agrees to indemnify Auxer and Telecard and each of the
officers, agents and directors of Auxer and Telecard as of the date of execution
of this Agreement against any loss, liability, claim, damage or expense
(including, but not limited to, any and all expense whatsoever reasonably
incurred in investigating, preparing or defending against any litigation,
commenced or threatened or any claim whatsoever), to which it or they may become
subject to or rising out of or based on any inaccuracy appearing in or
misrepresentation made in this Agreement, including, but not limited to,
misrepresentations. The indemnification provided for in this paragraph shall
survive the Closing and consummation of the transactions contemplated hereby and
termination of this Agreement.

                                    ARTICLE V

            CONDITIONS PRECEDENT TO OBLIGATIONS OF AUXER AND TELECARD

     The obligations of Auxer of Telecard under this Agreement are subject to
the satisfaction, at or before the Closing Date, of the following conditions:

     Section 5.1 ACCURACY OF REPRESENTATIONS. The representations and warranties
made by Clifton in this Agreement were true when made and shall be true at the
Closing Date with the same force and effect as if such representations and
warranties were made at the Closing Date (except for changes therein permitted
by this Agreement), and Clifton shall have performed or compiled with all
covenants and conditions required by this Agreement to be performed or complied
with by Clifton prior to or at the Closing.

     Section 5.2 OFFICER'S CERTIFICATE. Auxer shall be furnished with a
certificate dated the Closing date and signed by a duly authorized officer of
Clifton to the effect that: (a) the representations and warranties of Clifton
set forth in the Agreement and in all Exhibits, Schedules and other documents
furnished in connection herewith are in all material respects true and correct
as if made on the Effective Date; and (b) Clifton had performed all covenants,
satisfied all conditions, and complied with all other terms and provisions of
the Agreement to be performed, satisfied or complied with by it as of the
Effective Date.

     Section 5.3 APPROVAL. Mustafa Qattous shall have the proper authority to
bind Clifton to the terms of the Agreement and the transactions contemplated
herein.

     Section 5.4 NO MATERIAL ADVERSE CHANGE. Prior to the Closing Date, there
shall not have occurred any material adverse change in the financial condition,
business or operations of nor shall any event have occurred which, with the
lapse of time or the giving of notice, may cause or create any material adverse
change in the financial condition, business or operations of Clifton.

     Section 5.5 OTHER ITEMS. Auxer shall have received such further documents,
certificates or instruments relating to the transactions contemplated hereby as
Auxer may reasonably request.

                                   ARTICLE VI

                 CONDITIONS PRECEDENT TO OBLIGATIONS OF CLIFTON

     The obligations of Clifton under this Agreement are subject to the
satisfaction, at or before the Closing date (unless otherwise indicated herein),
of the following conditions:

     Section 6.1 ACCURACY OF REPRESENTATIONS. The representations and warranties
made by Auxer and Telecard in this Agreement were true when made and shall be
true as of the Closing Date (except for changes therein permitted by this
Agreement) with the same force and effect as if such representations and
warranties were made at and as of the Closing Date, and Auxer and Telecard shall
have performed and complied with all covenants and conditions required by this
Agreement to be performed or complied with by Auxer and Telecard prior to or at
the Closing. Clifton shall have been furnished with a certificate, signed by a
duly authorized executive officer of Auxer and Telecard and dated the Closing
Date, to the foregoing effect.

     Section 6.2 OFFICER'S CERTIFICATE. Clifton shall be furnished with a
certificate dated the Closing date and signed by a duly authorized officer of
Auxer and Telecard to the effect that: (a) the representations and warranties of
Auxer and Telecard set forth in the Agreement and in all Exhibits, Schedules and
other documents furnished in connection herewith are in all material respects
true and correct as if made on the Effective Date; and (b) Auxer and Telecard
had performed all covenants, satisfied all conditions, and complied with all
other terms and provisions of the Agreement to be performed, satisfied or
complied with by it as of the Effective Date.

     Section 6.3 NO MATERIAL ADVERSE CHANGE. Prior to the Closing Date, there
shall not have occurred any material adverse change in the financial condition,
business or operations of nor shall any event have occurred which, with the
lapse of time or the giving of notice, may cause or create any material adverse
change in the financial condition, business or operations of Auxer and Telecard.

     Section 6.4 OTHER ITEMS. Clifton shall have received such further
documents, certificates or instruments relating to the transactions contemplated
hereby as Clifton may reasonably request.

                                   ARTICLE VII

                                  MISCELLANEOUS

     Section 7.1 BROKERS AND FINDERS. Each party hereto hereby represents and
warrants that it is under no obligation, express or implied, to pay certain
finders in connection with the bringing of the parties together in the
negotiation, execution, or consummation of this Agreement. The parties each
agree to indemnify the other against any claim by any third person not listed in
Schedule 7.1 for any commission, brokerage or finder's fee or other payment with
respect to this Agreement or the transactions contemplated hereby based on any
alleged agreement or understanding between the indemnifying party and such third
person, whether express or implied from the actions of the indemnifying party.

     Section 7.2 LAW, FORUM AND JURISDICTION. This Agreement shall be construed
and interpreted in accordance with the laws of the State of New Jersey, United
States of America.

     Section 7.3 NOTICES. Any notices or other communications required or
permitted hereunder shall be sufficiently given if personally delivered to it or
sent by registered mail or certified mail, postage prepaid, or by prepaid
telegram addressed as follows:

     If to Auxer and Clifton: 12 Andrews Drive
                              West Paterson, NJ 07424

                and :         Richard I. Anslow & Associates
                              4400 Route 9 South, 2nd Floor
                              Freehold, NJ 07728

     If to Clifton:           8901 Kennedy Boulevard
                              North Bergen, NJ 07047

or such other addresses as shall be furnished in writing by any party in the
manner for giving notices hereunder, and any such notice or communication shall
be deemed to have been given as of the date so delivered, mailed or telegraphed.

     Section 7.4 ATTORNEYS' FEES. In the event that any party institutes any
action or suit to enforce this Agreement or to secure relief from any default
hereunder or breach hereof, the breaching party or parties shall reimburse the
non-breaching party or parties for all costs, including reasonable attorneys'
fees, incurred in connection therewith and in enforcing or collecting any
judgment rendered therein.

     Section 7.5 CONFIDENTIALITY. Each party hereto agrees with the other party
that, unless and until the transactions contemplated by this Agreement have been
consummated, they and their representatives will hold in strict confidence all
data and information obtained with respect to another party or any subsidiary
thereof from any representative, officer, director or employee, or from any
books or records or from personal inspection, of such other party, and shall not
use such data or information or disclose the same to others, except: (i) to the
extent such data is a matter of public knowledge or is required by law to be
published; and (ii) to the extent that such data or information must be used or
disclosed in order to consummate the transactions contemplated by this
Agreement.

     Section 7.6 SCHEDULES; KNOWLEDGE. Each party is presumed to have full
knowledge of all information set forth in the other party's schedules delivered
pursuant to this Agreement.

     Section 7.7 THIRD PARTY BENEFICIARIES. This contract is solely between
Auxer and Clifton and except as specifically provided, no director, officer,
stockholder, employee, agent, independent contractor or any other person or
entity shall be deemed to be a third party beneficiary of this Agreement.

     Section 7.8 ENTIRE AGREEMENT. This Agreement represents the entire
agreement between the parties relating to the subject matter hereof. This
Agreement alone fully and completely expresses the agreement of the parties
relating to the subject matter hereof. There are no other courses of dealing,
understanding, agreements, representations or warranties, written or oral,
except as set forth herein. This Agreement may not be amended or modified,
except by a written agreement signed by all parties hereto.

     Section 7.9 SURVIVAL; TERMINATION. The representations, warranties and
covenants of the respective parties shall survive the Closing Date and the
consummation of the transactions herein contemplated for 18 months.

     Section 7.10 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken
together shall be but a single instrument.

     Section 7.11 AMENDMENT OR WAIVER. Every right and remedy provided herein
shall be cumulative with every other right and remedy, whether conferred herein,
at law, or in equity, and may be enforced concurrently herewith, and no waiver
by any party of the performance of any obligation by the other shall be
construed as a waiver of the same or any other default then, theretofore, or
thereafter occurring or existing. At any time prior to the Closing Date, this
Agreement may be amended by a writing signed by all parties hereto, with respect
to any of the terms contained herein, and any term or condition of this
Agreement may be waived or the time for performance hereof may be extended by a
writing signed by the party or parties for whose benefit the provision is
intended.

     Section 7.12 INCORPORATION OF RECITALS. All of the recitals hereof are
incorporated by this reference and are made a part hereof as though set forth at
length herein.

     Section 7.13 EXPENSES. Each party herein shall bear all of their respective
cost s and expenses incurred in connection with the negotiation of this
Agreement and in the consummation of the transactions provided for herein and
the preparation thereof.

     Section 7.14 HEADINGS; CONTEXT. The headings of the sections and paragraphs
contained in this Agreement are for convenience of reference only and do not
form a part hereof and in no way modify, interpret or construe the meaning of
this Agreement.

     Section 7.15 BENEFIT. This Agreement shall be binding upon and shall inure
only to the benefit of the parties hereto, and their permitted assigns
hereunder. This Agreement shall not be assigned by any party without the prior
written consent of the other party.

     Section 7.16 PUBLIC ANNOUNCEMENTS. Except as may be required by law,
neither party shall make any public announcement or filing with respect to the
transactions provided for herein without the prior consent of the other party
hereto. Notwithstanding same, both parties agree that Auxer will be issuing a
press release regarding this transaction.

     Section 7.17 SEVERABILITY. In the event that any particular provision or
provisions of this Agreement or the other agreements contained herein shall for
any reason hereafter be determined to be unenforceable, or in violation of any
law, governmental order or regulation, such unenforceability or violation shall
not affect the remaining provisions of such agreements, which shall continue in
full force and effect and be binding upon the respective parties hereto.

     Section 7.18 FAILURE OF CONDITIONS; TERMINATION. In the event of any of the
conditions specified in this Agreement shall not be fulfilled on or before the
Closing Date, either of the parties have the right either to proceed or, upon
prompt written notice to the other, to terminate and rescind this Agreement
without liability to any other party. The election to proceed shall not affect
the right of such electing party reasonably to require the other party to
continue to use its efforts to fulfill the unmet conditions.

     Section 7.19 NO STRICT CONSTRUCTION. The language of this Agreement shall
be construed as a whole, according to its fair meaning and intendment, and not
strictly for or against either party hereto, regardless of who drafted or was
principally responsible for drafting the Agreement or terms or conditions
hereof.

     Section 7.20 EXECUTION KNOWING AND VOLUNTARY. In executing this Agreement,
the parties severally acknowledge and represent that each: (a) has fully and
carefully read and considered this Agreement; (b) has been or has had the
opportunity to be fully apprized by its attorneys of the legal effect and
meaning of this document and all terms and conditions hereof; (c) is executing
this agreement voluntarily, free from any influence, coercion or duress of any
kind.

     IN WITNESS WHEREOF, the corporate parties hereto have caused this Agreement
to be executed by their respective officers, hereunto duly authorized, and
entered into as of the date first above written.

<TABLE>
<S>                                <C>
                                   THE AUXER GROUP, INC.
ATTEST:

/s/ Eugene Chiaramonte             By: /s/ Eugene Chiaramonte
------------------------------     -----------------------------------------
       , Secretary                         Eugene Chiaramonte, Jr., President

ATTEST:                            CLIFTON TELECARD, INC.

/s/ Eugene Chiaramonte             By: /s/ Ronald Shaver
------------------------------     -----------------------------------------
       , Secretary                         Ronald Shaver, President

ATTEST:                            CLIFTON TELECARD ALLIANCE, INC.

/s/ Afif Asmar                     By:/s/ Mustafa Qattous
------------------------------     -----------------------------------------
       , Secretary                        Mustafa Qattous, President

</TABLE>

<PAGE>

                                   SCHEDULE A

                                       To
                                  Bill of Sale

                                Of the Assets of
                         Clifton Telecard Alliance, Inc.
                            Dated September 27, 2000

                In Conjunction With The Asset Purchase Agreement
                                  By and Among

                 CLIFTON TELECARD, INC., a Delaware Corporation
                                       and

                  THE AUXER GROUP, INC., a Delaware Corporation
                                       and

           CLIFTON TELECARD ALLICANCE, INC., a New Jersey Corporation
                          Effective September 27, 2000

Bank Book Balance                          $401,388
A/R Schedule                               $513,046
Inventory Schedule                         $543,866
Equipment Schedule                          $18,995
Deposits                                     $9,403
Prepaid Printing                             $8,000
TM/Patents Schedule                            N/A

<TABLE>
<S>                               <C>                       <C>
/s/ Mustafa Qattous               /s/ Ronald Shaver         /s/ Eugene Chiaramonte, Jr.
-------------------------         -------------------       ---------------------------
    Mustafa Qattous                   Ronald Shaver             Eugene Chiaramonte, Jr.
    Clifton Telecard Alliance, Inc.   Clifton Telecard, Inc.    The Auxer Group, Inc.
</TABLE>

<PAGE>

                                   SCHEDULE B

                                       To
                                  Bill of Sale

                              Of the Liabilities of
                         Clifton Telecard Alliance, Inc.
                            Dated September 27, 2000

                In Conjunction With The Asset Purchase Agreement
                                  By and Among

                 CLIFTON TELECARD, INC., a Delaware Corporation
                                       and

                  THE AUXER GROUP, INC., a Delaware Corporation
                                       and

           CLIFTON TELECARD ALLICANCE, INC., a New Jersey Corporation
                          Effective September 27, 2000

A/P Schedule                          $1,377,637
Obligations Schedule                          $0

<TABLE>
<S>                               <C>                       <C>
/s/ Mustafa Qattous               /s/ Ronald Shaver         /s/ Eugene Chiaramonte, Jr.
-------------------------         -------------------       ---------------------------
    Mustafa Qattous                   Ronald Shaver             Eugene Chiaramonte, Jr.
    Clifton Telecard Alliance, Inc.   Clifton Telecard, Inc.    The Auxer Group, Inc.
</TABLE>

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