Document:

COMPROMISE, SETTLEMENT AND  MUTUAL RELEASE AGREEMENT

     This  Compromise,  Settlement and Mutual Release Agreement ("Agreement") is
made  as of June 20, 2002 between REPUBLIC CREDIT CORPORATION I, ("Republic") of
Denver,  Colorado  (Creditor), and Murdock Communications Corporation ("MCC") of
Cedar  Rapids,  Iowa  (Debtor)  and Silent Woman, L.L.C. ("SW") of Cedar Rapids,
Iowa.  Republic,  MCC,  and  SW shall collectively be referred to herein as "the
Parties."

WHEREAS,  during  the  period  between January 1, 1998 and December 31, 1999 MCC
made,  executed,  and  delivered  Promissory  Notes  to  certain  individuals
("Individuals"),  as  set  forth  in  Exhibit "A"  and as attached hereto, ("the
Notes");  and

     WHEREAS,  the Hartford-Carlisle Bank became insolvent and the assets of the
Bank  were  assumed  by or assigned to the Federal Deposit Insurance Corporation
("FDIC");  and

     WHEREAS,  Republic  then  became  the  FDIC's  assignee with respect to the
underlying  loans;  and

WHEREAS,  Republic  is, and has been, actively pursuing payment of the Notes and
on  or  about  April  24, 2001, filed a Petition at Law, No. LACV 040002, in the
Iowa  District  Court in and for Linn County demanding payment on certain of the
Notes,  said  Petition  attached  hereto  as  Exhibit  "B";  and

WHEREAS,  on  or  about June 25, 2001, the Court entered a Default Judgment (the
"Default  Judgment")  in  favor of Republic on its claim as set forth in Exhibit
"C";  and

WHEREAS,  on  December  19, 2001, MCC entered into a Definitive Merger Agreement
(the  "Merger  Agreement")  with  Polar  Molecular  Corporation  ("Polar");  and
WHEREAS,  one  of  the  Merger  Conditions  is  that MCC will eliminate its debt
obligations  under  the Notes and obtain satisfaction of the outstanding Default
Judgment;  and

WHEREAS,  SW  is  willing  to  provide partial consideration for the release and
satisfaction  of  the  Default  Judgment,  and  MCC's  full  release  from  its
obligations  under  the  Notes;  and

WHEREAS,  Republic  is  willing  to  accept  such  consideration from SW and the
remaining  consideration  required  pursuant  to  this  Agreement  from  MCC, in
exchange for a Release and Satisfaction of the Default Judgment, and the release
of  any  and  all claims Republic may have against MCC related to the Notes; and

WHEREAS, MCC is likewise willing to tender consideration to Republic and release
Republic  from  all  claims MCC may have against Republic related to said Notes;

<PAGE>
NOW,  THEREFORE, in consideration of the mutual promises and covenants set forth
herein,  the  parties  hereby  agree  as  follows:

                                   SECTION ONE
                        EXISTENCE OF NOTES AND JUDGMENTS

     The  Parties  acknowledge  that  Republic  currently holds MCC Notes in the
amounts  set  forth  in Exhibit "A" hereto; that Republic has obtained a Default
Judgment  against  MCC, as evidenced by the court order set forth in Exhibit "C"
hereto.

                                   SECTION TWO
                    AGREEMENT FOR DIFFERENT TERMS OF PAYMENT

     The  Parties agree that payment of the indebtedness on terms and provisions
different  from, and in substitution of, the terms and provisions for payment of
the  indebtedness  contained  in  and  represented  by the Notes and the Default
Judgment,  is  desirable  and  in  the best interest of all of the Parties.  The
Parties  agree  that  the provisions of this Agreement supersede and control any
and all prior agreements between MCC and Republic, and that no other document or
instruments  shall  supersede  this  Agreement  between  the  Parties, except as
hereafter  may  be  otherwise  agreed  to  by  all  of  the  Parties in writing.

                                  SECTION THREE
                    TERMS OF PAYMENT AND RELEASE OF JUDGMENT

     3.1.  METHOD  OF PAYMENT:  Republic agrees to accept the following, in full
satisfaction  of  the  obligations  under  the  Notes  and  the Default Judgment
described  in  Section  1  above:

          (a)  Upon  execution  of  this  Agreement  by  the  Parties, MCC shall
               deliver  to  Republic Fifteen Thousand Dollars ($15,000) in cash,
               by  wire  transfer  or  guaranteed  funds, which $15,000 shall be
               nonrefundable;  and

          (b)  At  the Closing of the Merger, MCC shall deliver to Republic Four
               Hundred  and  Eighty-four  Thousand  and  Nine  Hundred  Dollars
               ($484,900)  in  cash  or  electronic  funds  transfer;  and

          (c)  Prior  to the Closing of the Merger, SW shall deliver to Republic
               One  Hundred Dollars ($100) in cash or electronic funds transfer.

     3.2.  RELEASE AND SATISFACTION OF JUDGMENT; RETURN OF NOTES: At the Closing
of  the  Merger, Republic shall provide to MCC a Release and Satisfaction of the
Default Judgment set forth in Exhibit "C"; and each of the original Notes in its
possession  and  which  are  enumerated  in  Exhibit  "A".

                                        2
<PAGE>
                                  SECTION FOUR
                  REPRESENTATIONS AND WARRANTIES OF THE PARTIES

     4.1.  MCC  hereby  represents  and  warrants  to  Republic  that  MCC  is a
corporation duly organized, validly existing and in good standing under the laws
of  Iowa,  has  all  requisite  power  to  own,  lease  and  operate its assets,
properties,  business,  and  to  carry  on  its  business  as conducted; is duly
qualified  or  licensed  to  do business as a foreign corporation and is in good
standing  in  every  jurisdiction  in  which  the  nature of its business or the
locations  of  its properties requires such qualification or licensing.  MCC has
all requisite power, authority and approvals required to enter into, execute and
deliver  this Agreement and to perform fully the obligations required hereunder.

     4.2.  MCC hereby represents and warrants to Republic that MCC has taken all
actions  necessary  to  authorize  it  to  enter  into  and  perform  fully  its
obligations  under  this  Agreement,  and  as of the closing of the Merger, this
Agreement  and  any  related  documents  will  be  the  legal, valid and binding
obligations  of  MCC in accordance with its terms, and neither the execution nor
the  delivery  by MCC of this Agreement nor the consummation of the transactions
contemplated under this Agreement will violate any provisions of the Articles of
Incorporation  or  the  Bylaws  of  MCC  or  any  other  covenants or agreements
currently  binding  MCC.

     4.3.  MCC  represents  that  it  has  made  full  disclosure of any and all
information that might materially impact directly or indirectly the substance or
intent  of  this  transaction  and  has  furnished  all information necessary to
Republic.

     4.4.  Republic  hereby  represents  and  warrants to MCC that Republic is a
corporation duly organized, validly existing and in good standing under the laws
of  Colorado,  and  that  it  has  all  requisite power, authority and approvals
required  to enter into, execute and deliver this Agreement and to perform fully
the  obligations  required  hereunder  and  has  taken  all actions necessary to
authorize  it  to  enter  into  and  perform  fully  its  obligations under this
Agreement.

     4.5.  Republic  represents  and  warrants  that,  as  of the Closing of the
Merger,  that it is not aware of the existence of any notes other than the Notes
made  by  MCC  that  Republic  has any right or interest in; and that it has not
sold, assigned, or transferred any right or interest it has, or may have, in any
of the Notes or in the Default Judgment to any other person or entity; and that,
barring  any breach of this Agreement by MCC, Republic shall not bring any legal
cause of action against MCC with respect to any Note.  Republic's representation
herein does not include any legal cause of action that Republic may have against
any  individuals  in  connection  with  any  of  the  Notes.

                                        3
<PAGE>
     4.6.  SW  hereby  represents  and warrants to Republic that SW is a limited
liability  company  duly  organized, validly existing and in good standing under
the  laws  of  Delaware,  has  all requisite power to own, lease and operate its
assets, properties, business, and to carry on its business as conducted; is duly
qualified  or  licensed  to do business as a limited liability company and is in
good  standing  in every jurisdiction in which the nature of its business or the
locations of its properties requires such qualification or licensing. SW has all
requisite  power,  authority  and  approvals required to enter into, execute and
deliver  this  Agreement  and  to  perform  fully  its  obligations  hereunder.

                                  SECTION FIVE
                       MUTUAL RELEASE AND INDEMNIFICATION

     5.1.  SATISFACTION  AND  RELEASE:  Upon  fulfillment  of the obligations of
each  of MCC, SW, and Republic, as set forth in Section Three of this Agreement,
the  Parties  are  hereby,  each  by  the  other,  released, together with their
respective  parent  companies,  subsidiaries,  affiliates,  officers, directors,
employees,  agents, assigns and predecessors or successors in interest, from any
and  all  indebtedness,  claims, causes of action or demands of any nature which
any  of  the  Parties to this Agreement has, or may have had, with respect to or
relating  to the Notes and Default Judgment from the beginning of time until the
Closing  of  the  Merger and the obligations of MCC to Republic, as described in
Section One and set forth in Exhibits "A" and "C" attached hereto, shall forever
be  cancelled  and  discharged,  and  MCC  shall  be  fully  released  from  the
obligations described in Section One above.  For the purposes of this Agreement,
Republic's  predecessors  include  the  Federal  Deposit  Insurance Corporation,
Hartford-Carlisle  Savings  Bank  and  their  agents  and  assigns.

     5.2.  In return for the consideration, warranties and representations given
by  Republic, MCC agrees to indemnify, defend if requested, and to keep harmless
Republic,  from and against any and all liabilities, losses, damages, penalties,
claims, actions, suits, costs and expenses, including court costs and reasonable
legal  fees,  of  whatever  kind  imposed  on,  incurred  by or asserted against
Republic  in any way arising from the representations or warranties, made by MCC
herein,  whether  set  forth  in  Section  Four  of this Agreement or elsewhere.

                                   SECTION SIX
              RELEASE FROM PERFORMANCE; NULLIFICATION OF AGREEMENT

     In  the  event  that the Merger does not close, for any reason, the Parties
hereto  shall be released from any and all requirements of performance hereunder
and  this  Agreement  shall  be  null,  void  and of no further force or effect.

                                        4
<PAGE>
                                  SECTION SEVEN
                                  MISCELLANEOUS

     7.1.  CLOSING.  For  purposes  of  this  Agreement, "Closing of the Merger"
shall  refer  to  that  time set forth in Article II, Section 2.01 of the Merger
Agreement  between  MCC  and  Polar  unless  otherwise  agreed in writing by the
parties  thereto.  Notwithstanding the prior sentence, the Parties agree that if
the  merger is not closed prior to midnight December 31, 2002, this Agreement is
null  and  void,  except  that  the  Fifteen  Thousand Dollars ($15,000) paid to
Republic  pursuant to Section 3.1(a), and any expenses paid to Republic pursuant
to  Section  7.3  of  this  Agreement  shall  not  be  refundable  to  MCC.

     7.2.  AMENDMENT.  Subject  to  applicable  law,  this Agreement may only be
amended  or  supplemented  by  mutual  agreement  in  writing  by  the  parties.

     7.3.  EXPENSES.  At the time of execution of this agreement, and at Closing
of  the  Merger,  MCC shall pay Republic and reimburse Republic for its attorney
fees,  and  other  fees  and  expenses,  in  connection  with  the  negotiation,
preparation, review, and completion of the Agreement and for expenses related in
any  manner  to  the  negotiation,  preparation,  review,  or  completion of any
documents  relating  to  the  Agreement between the parties, as well as any fees
incurred  by  Republic in connection with the foreclosure on the Notes listed in
Exhibit  "A".  MCC  shall  pay  to  Republic  any  additional  legal  or  other
professional  fees,  expenses  and costs incurred by Republic in connection with
its  suit(s)  against  MCC  on  the  Notes,  whether  or  not  the  transactions
contemplated hereby are consummated. MCC is to make payment on these invoices at
the  time  they are submitted by Republic or its counsel. Failure by MCC to make
payments  hereunder of any of the expenses incurred by Republic, as set forth in
this  paragraph,  shall  cause  this  Agreement  to  be null and void, and of no
further consequence, except that the payments made pursuant hereto by MCC to the
point  that  this  Agreement  is nullified shall remain the absolute property of
Republic and be nonrefundable. Upon nullification of the agreement, Republic may
pursue  any  claims  it  may  have  against  MCC.

     7.4. EXPRESS LIMITATION OF CERTAIN LIABILITY AND RELIANCE. It is understood
and  expressly agreed by the Parties that, except for the obligations undertaken
by  SW  as  set  forth herein, SW has no legal duty or obligation of any kind or
nature  to  Republic  and  that  SW  is  a  party hereto for the sole purpose of
inducing  Republic  to  join in this Agreement. SW's liability and obligation to
Republic  pursuant  to this Agreement is expressly limited to the payment of the
specifically  designated  consideration  set  forth  in  Paragraph  3.1(b).

                                        5
<PAGE>
     7.5. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall
inure to the benefit of the Parties and their respective successors and assigns.
This  Agreement  does  not  create,  and shall not be construed as creating, any
rights  or  claims enforceable by any third person or entity not a party to this
Agreement.

     7.6.  GOVERNING  LAW.  The  validity,  interpretation,  enforceability, and
performance  of  this Agreement shall be governed by and construed in accordance
with  the  law  of  the  State  of  Iowa.  The Parties have agreed that personal
jurisdiction  and venue shall be solely in the state and federal district courts
located  in  Cedar  Rapids,  Linn  County,  Iowa.

     7.7.  COUNTERPARTS.  This Agreement maybe executed in counterparts, each of
which  shall  be  deemed an original, but all of which together shall constitute
one  and  the  same  instrument.

     7.8.  ENTIRE AGREEMENT. The parties intend that the terms of this Agreement
shall  be  the  final  expression of their agreement with respect to the subject
matter  hereof  and  may  not  be  contradicted  by  evidence  of  any  prior or
contemporaneous  agreement.

     7.9.  SEVERABILITY.  If any provision of this Agreement, or the application
thereof  to  any  Person,  place,  or  circumstance, shall be held by a court of
competent  jurisdiction  to be invalid, unenforceable, or void, the remainder of
this  Agreement  and  such  provisions  as applied to other Persons, places, and
circumstances  shall  remain  in  full  force  and  effect.

     7.10.  ADDITIONAL  DOCUMENTS.  Each  of  the Parties agree, without further
consideration, to execute and deliver such other documents and take such further
action  as  may  be  reasonably  required  to  effectuate the provisions of this
Agreement.

     7.11.  EXHIBITS.  All Exhibits attached hereto shall be deemed to be a part
of  this  Agreement  and  are  fully  incorporated  in  this  Agreement  by this
reference.

     7.12.  SURVIVAL.  All  representations warranties, and agreements contained
in  this  Agreement  or  made  pursuant to the transactions contemplated by this
Agreement,  whether  set  forth  in Section Four or elsewhere, shall survive the
closing  of  the  Merger  and  performance  pursuant  to  this  Agreement.

     7.13.  BINDING  AGREEMENT.  The terms, provisions, covenants and conditions
contained  in  this  Agreement shall apply to and inure to the benefit of and be
binding  upon  the  parties  and  their  respective  successors  and  assigns.

                                        6
<PAGE>
In  Witness  Whereof,  the  Parties  have  executed  this  Agreement.

REPUBLIC  CREDIT  CORPORATION  I

BY:
   ---------------------------------     ----------------------
                                                Date
MURDOCK  COMMUNICATIONS  CORPORATION

BY:
   ---------------------------------     ----------------------
    Principal Accounting Officer                Date

BY:
   ---------------------------------     ----------------------
      Attorney  For  MCC                        Date

SILENT  WOMAN,  L.L.C.

BY:
   ---------------------------------     ----------------------
      James  Arenson,  Member                    Date
                                        7
<PAGE>

               RECEIPT  FOR  PAYMENT  DISCHARGING  CLAIM  IN  FULL
              ACCEPTANCE BY CREDITOR OF PAYMENT IN A DIFFERENT FORM

     Received  of  Murdock  Communications Corporation ("MCC"), of P.O. Box 412,
Marion,  Linn  County,  Iowa,  and Silent Woman, L.L.C. ("SW"), of Cedar Rapids,
Linn  County,  Iowa, consideration constituting full payment to Republic for the
Default  Judgment on the Notes and the Notes as set forth on Exhibit "A" hereto,
as  follows:

(1)  Fifteen  Thousand  Dollars  ($15,000)  in cash or electronic funds transfer
     from  MCC  at the time of execution of Compromise, Settlement Agreement and
     Mutual  Release;  and

(2)  One  Hundred Dollars ($100) in cash or electronic funds transfer from SW at
     the  Closing  of  the  Merger;  and

(3)  Four  Hundred  and  Eighty-four Thousand Nine Hundred Dollars ($484,900) in
     cash  or  electronic  funds transfer from MCC at the Closing of the Merger;
     and

     Such  payment to Republic constitutes full and complete satisfaction of any
and all debts due Republic from MCC with respect to Republic's legal interest in
the Notes and the Default Judgment which it has obtained.  Republic acknowledges
that SW is a third-party to the indebtedness Republic sought to collect from MCC
and that SW has no legal duty or obligation to pay or agree to pay any amount of
consideration  to  Republic  to  effectuate the satisfaction of any indebtedness
that  is,  or may be, owed to Republic by MCC.  This instrument is intended as a
receipt  of  consideration received by Republic in full discharge of any and all
amounts  due to Republic from MCC related to the Notes and the Default Judgment.

Dated
     --------------------------------

REPUBLIC  CREDIT  CORPORATION  I

BY:__________________________________
   Its_______________________________

     STATE  OF  ________________,     ___________________  COUNTY,  ss:

     On  this day of______________________ , 2002, before me, the undersigned, a
Notary  Public  in  and  for  said  County  and  State,  personally  appeared
____________________________,  to  me  personally  known,  who  being by me duly
sworn,  did say that he is the President: of Republic Credit Corporation I; that
this  Receipt  and  Acceptance  was  signed  on  behalf  of  the Republic Credit
Corporation  I  by  authority  of  its  Board  of  Directors;  and  that
___________________________,  as  officer,  acknowledged  the  execution  of the
foregoing  instrument to be the voluntary act and deed of the corporation, by it
and  by  him  voluntarily  executed.

__________________________________
Notary  Public  in  and  for
State  of  _______________________

                                        8
<PAGE>

                   LIST OF EXHIBITS TO ACCORD AND SATISFACTION

     EXHIBIT          DESCRIPTIONS

1.   EXHIBIT "A": Listing of MCC promissory Notes representing MCC's obligations
     to  certain  individuals,  which  is the subject of the attached Agreement.

2.   EXHIBIT  "B":  Republic's  Petition  at  Law,  No.  LACV  040002.

3.   EXHIBIT  "C":  Default  Judgment  in  favor of Republic in No. LACV 040002.

4.   EXHIBIT  "D":  Definitive Merger Agreement between MCC and Polar Molecular.

                                        9EXHIBIT 10.1

                               LEGAL SERVICES PLAN
                               -------------------

     THIS LEGAL SERVICES PLAN (the "Plan") is entered into as of June 3, 2002 by
and between XDOGS, Inc., a Nevada corporation with a principal address of 126
North Street, Suite 407, Minneapolis, Minnesota 55401 ("Xdogs"), and Jeffrey C.
Robbins, 150 South Fifth Street, Suite 1800, Minneapolis, Minnesota 55402
("Robbins").

                                R E C I T A L S :
                                -----------------

     WHEREAS, Xdogs is a public company in the business of selling branded
sportwear and whose common stock is quoted on the OTC bulletin board;

     WHEREAS, Robbins is an attorney licensed in the State of Minnesota who has
provided, and proposed to continue to provide, general corporate legal services
to Xdogs;

     WHEREAS, Xdogs desires to contract with Robbins for the provision of
ongoing legal services, which services shall not be in connection with the offer
or sale of securities in a capital-raising transaction and shall not directly or
indirectly promote or maintain a market for the Company's securities, by
issuance of shares of the Company's common stock in lieu of cash payment, such
shares to be unrestricted.

     NOW, THEREFORE, it is mutually agreed by and between the parties as
follows:

     In consideration of the performance by Robbins of the legal services
designated herein, Xdogs will issue Robbins 750,000 shares of Xdogs's common
stock (the "Shares"). These shares will be issued as soon as practicable
following execution of this Agreement and the filing of a Registration Statement
under the Securities Act of 1993, as amended on Form S-8 covering the shares.

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

XDOGS, INC., a Nevada corporation

By: /s/ KENT A. RODRIGUEZ
-------------------------------------------------
Kent A. Rodriguez, President and Chief Executive Officer

By: /s/ JEFFREY C. ROBBINS
-------------------------------------------------
Jeffrey C. Robbins, Service Provider

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