Document:

CONTRACT FOR THE SALE OF GOODS
                   (Includes Grant of Purchase Money Security
                                   Interest)

THIS CONTRACT FOR THE SALE OF GOODS (the "Agreement") is made and entered into
     as of this 10th day of August, 2000 ("Effective Date") by and between
     Chasin of Long Beach, Inc. dba Colbie Pacific Capital with its principal
     offices at 3660 Wilshire Boulevard, Suite 1008, Los Angeles CA 90010 (the
     "Seller") and Auxer Telecom, Inc. a Delaware corporation with principal
     offices at 12 Andrews Drive, West Patterson, NJ 07424 (the "Buyer").

                                    Recitals

This Agreement is made and entered into with reference to the following facts,
all of which are hereby incorporated into, and made a material part of this
Agreement.

A.   Seller entered into a Loan and Security Agreement with an entity known as
     Cyberlight, Inc. (the "Cyberlight Agreement"). Pursuant to the Cyberlight
     Agreement, Colbie was granted a security interest in certain assets of
     Cyberlight, Inc.

B.   The Cyberlight Agreement went into default. Cyberlight, Inc. filed for
     relief under Chapter 7 of the Bankruptcy Code, and Seller was granted
     relief from the automatic stay in order to foreclose upon its collateral
     granted by Cyberlight, Inc. to Seller to secure the obligations under the
     Cyberlight Agreement.

C.   Buyer desires to purchase two Magellan Switches and accessories described
     as: CDR Format DBF; Fraud Detection; Software Version 4.33; Two (2) M4000
     LNX Driven NT based platforms, 64 ports each; redundant CPU's and power
     supplies.

D.   Seller is willing to sell to Buyer the equipment in a private foreclosure
     sale, pursuant to its rights under the Cyberlight Agreement and applicable
     provisions of the California Commercial Code, including but not limited to
     Sec 9504.

NOW, THEREFORE, for and inconsideration of the foregoing recitals, the mutual
covenants, agreements, representations, and warranties contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereby enter into the following
Agreement.

Paragraph 1. Sales of Goods

1.01 Seller shall transfer and deliver to Buyer, and Buyer shall pay for and
     accept, the Goods, pursuant to the terms and conditions of this Agreement.

Paragraph 2 Delivery of Goods

2.01 The Goods are presently being store at 707 Wilshire Blvd., 8th Floor, Los
     Angeles, CA 90017. Upon execution of this Agreement and payment of the
     first installment payment as more fully set forth in Par. 7 below, Buyer
     may take possession of the Goods, moving them to 611 Wilshire Blvd., Suite
     804, Los Angeles, CA 90017.

2.02 All shipping, storage rental fees and all other costs of any nature
     associated with or related to the Goods shall be the sole and absolute
     responsibility of the Buyer.

Paragraph 3. Identification - Risk of Loss

3.01 Identification of the Goods under Commercial Code Section 2501 shall occur
     on the Effective Date. Upon identification, the risk of loss shall pass to
     Buyer.

Paragraph 4. Title

4.01 Title to the Goods shall vest with Buyer on the Effective Date, subject to
     the terms and conditions of this Agreement.

Paragraph 5. Disclaimer of Express Warranties

5.01 Seller warrants that the Goods are as described in this Agreement, but no
     other express warranty is made with respect to the Goods. Any description
     of the Goods contained in the Agreement is for the sole purpose of
     identifying them, is not part of the basis of the bargain, and does not
     constitute a warranty that the Goods will conform to that description. If
     any model or sample was shown to Buyer, that model or sample was used
     merely to illustrate the general type and quality of the Goods and not to
     represent that the Goods would necessarily conform to the model or sample.

Paragraph 6. Disclaimer of Implied Warranties

6.01 THE GOODS SOLD UNDER THIS CONTRACT ARE PURCHASED BY THE BUYER "AS IS' AND
     THE SELLER DOES NOT WARRANT THAT THEY ARE OF MERCHANTABLE QUALITY OR THAT
     THEY CAN BE USED FOR ANY PARTICULAR PURPOSE. THIS PROVISION IS NOT INTENDED
     TO LIMIT, ENHANCE OR OTHERWISE MODIFY ANY APPLICABLE MANUFACTURE'S WARRANTY
     IN PLACE WITH RESPECT TO THE GOODS.

Paragraph 7. Price and Payment

7.01 The total price to be paid by Buyer will be Five Hundred Sixty Eight
     Thousand Dollars ($568,000) (the "Purchase Price"). On August 10, 2000,
     Buyer shall pay to Seller the sum of $10,000. Commencing October 1, 2000,
     and continuing on the 1st day of each successive month thereafter, Buyer
     shall pay additional monthly installments of $10,000 for a series of ten
     (10) payments. On August 1, 2001, Buyer shall pay to Seller the sum of
     $458,000.

7.02 Payment shall be made by lawful money of the United States, In the event
     any installment payment is not paid when due, or if Buyer defaults to
     Seller on any of its Obligations, Seller may, at its option, declare the
     entire amount owed under this Agreement, due and payable.

Paragraph 8. Grant of Purchase Money Security Interest

8.01 In order to secure Buyer's Obligations to Seller under this Agreement,
     Buyer grants to Seller a security interest in the Goods, and all proceeds
     thereof, including but not limited to insurance proceeds. The term
     "Obligations" as used in this Agreement, shall mean and include each and
     all of the following: the obligations evidenced by the Agreement, the
     obligation to pay all installment payments set forth in Paragraph 7 above,
     and to perform when due all other debts and all obligations, liabilities,
     covenants, agreements, guarantees, warranties and representations of Buyer
     to Seller, of any and every kind and nature, whether heretofore, now or
     hereafter owing, arising, due and payable from Buyer to Seller.

Paragraph 9. Buyer's Covenants With Respect To The Goods

9.01 Buyer, at its expense, shall keep and maintain (i) the Goods insures
     against loss or damage by fire, theft, explosion, earthquake, flood,
     sprinklers, natural disasters and all other hazards and risks ordinarily
     insured against by other owners or users of such properties and interests
     in properties in similar businesses for the full insurable value thereof;
     (ii) business interruption insurance and public liability and property
     damage insurance relating to Buyer's ownership and use of its assets. All
     such policies of insurance (except those of public liability and property
     damage) shall contain an endorsement in a form satisfactory to Seller
     showing loss payable to Seller and all proceeds payable thereunder shall be
     payable to Seller and upon receipt by Seller shall be applied on account of
     Buyer's Obligations. In the event Seller at any time or times hereafter
     shall fail to obtain or maintain any of the policies of insurance required
     above or to pay any premium in whole or in part relating thereto, then
     Seller, without waiving or releasing any obligation or default by Seller
     hereunder, may at any time or times hereafter, but shall be under no
     obligation to do so, obtain and maintain such policies of insurance and pay
     such premiums and take any other action with respect thereto which Seller
     in its sole and absolute discretion deems advisable. All sums so disbursed
     by Seller, including reasonable attorneys' fees, court costs, expenses and
     other charges relating thereto, shall be a part of Buyer's Obligations and
     payable on demand.

Paragraph 10. Buyer's Negative Covenants

10.01 Buyer covenants and agrees that it shall not: (a) grant a security
     interest in or permit a lien, claim or encumbrance upon any of the
     Collateral in favor of any Person other than Seller, and shall provide
     written notice to Seller within ten days of Buyer obtaining any knowledge
     of the foregoing; (b) permit any levy, attachment or restraint to be made
     affecting any of its assets; (c) permit any receiver, trustee or assignee
     for the benefit of Sellers to be appointed to take possession of any or all
     of its assets; (d) other than in the ordinary course of its business, sell,
     lease or otherwise dispose of or transfer, whether by sale, merger,
     consolidation or otherwise, any of its assets; (e) merge or consolidate
     with any other person or entity; (f) acquire all or any material interest
     in any other person or entity; (g) enter into any transaction not in the
     ordinary course of its business; (h) under any circumstances or in any
     manner whatsoever, interfere with any of Seller's rights under this
     Agreement.

Paragraph 11. Default

11.01 Default. Any one or more of the following events shall constitute
     a default (each, a "Default") by Buyer under this Agreement (a) Buyer shall
     fail to pay any of the Obligations when due, upon maturity or by
     acceleration; (b) if Buyer fails or neglects to perform, keep or observe
     any term, provision, condition or covenant on its part contained in this
     Agreement; (c) if any representation and warranty under this Agreement, or
     representation, warranty or other information contained in any statement,
     report or certificate made or delivered by Buyer or any of its officers,
     employees or agents to Seller was not true and correct when made or deemed
     made; *d) if Seller shall reasonably determine in good faith that it is
     insecure with respect to the repayment of all or any of Buyer's
     Obligations; (e) an order or decree appointing a receiver, trustee,
     custodian or liquidator shall have been issued with respect to Buyer or its
     assets; (f) if all or any of Buyer's assets are attached, seized, subjected
     to a writ or warrant, or are levied upon, by a Seller or come within the
     possession or any receiver, trustee, custodian or assignee for the benefit
     of Sellers; (g) Buyer shall fail to pay its debts to Sellers as they com
     due or shall be insolvent; (h) Buyer shall seek relief under any
     bankruptcy, insolvency, reorganization or similar law, or a proceeding is
     commenced against Buyer under any bankruptcy, insolvency, reorganization or
     similar law and not dismissed within sixty day; (i) if Buyer shall make an
     assignment for the benefit of Sellers; (j) if any proceeding is filed or
     commenced by or against Buyer for its dissolution or liquidation; (k) if
     Buyer is enjoined, restrained or in any way prevented by judicial or
     administrative order from conducting al or any part of its business
     affairs; (l) if a notice of lien, levy or assessment is filed of record
     with respect to all or any of Buyer's assets by the United States or any
     department, agency or instrumentality thereof, or by any state, county,
     municipality or other governmental agency or if any taxes or debts owing at
     any time or times hereafter to any one or more of them becomes a lien,
     whether choate or otherwise, upon all or any of Buyer's assets; (m) if a
     judgment or other claim becomes alien or encumbrance upon all or any of
     Buyer's assets; (n) the occurrence of any event, circumstance, or condition
     which, after any applicable cure or notice period or lapse of time, or
     both, would constitute a default under any material agreement, contract,
     instrument or the like to which Buyer is a party of which any of Buyer's
     property is subject, whether or not a party thereto exercises any of its
     rights and remedies with respect to such default, or upon acceleration of
     the maturity of any material indebtedness of Buyer; or (o) the destruction
     or occurrence of substantial damage to the Collateral or any material
     portion thereof, or which there is no or substantially no insurance
     coverage in respect and/or for which not or substantially no insurance
     coverage will be paid in respect thereto.

Paragraph 12. Remedies

12.01 If any Default shall be occurred, Buyer may exercise all the rights and
     remedies of a secured party on default under the California Commercial Code
     and all of the rights and remedies provided for in the Agreement and such
     other rights and remedies as may be provided by law or otherwise (such
     rights and remedies to be cumulative and non-exclusive). Seller also may:
     (a0 declare Buyer's Obligations immediately due and payable; (b) enter,
     with or without process of law, any premises where the Collateral is or may
     be located and, without breach of the peace and without charge or liability
     to Seller therefore, until Seller's completion of enforcement of its
     security interests in the Collateral and/or until Sellers' removal of the
     Collateral therefrom to such other place or places as Seller deems
     convenient and in connection therewith (i) take possession of said premises
     and of any of the Collateral located therein; (ii) place a receiver in
     exclusive control of said premises and any of the Collateral located
     therein; (iii) remove the Collateral (and any of Buyer's materials,
     supplies, books and records) for the purpose of collecting the Collateral
     and/or preparing the Collateral for disposition and/or disposing of the
     Collateral; (c) sell or otherwise dispose of the Collateral (in its then
     condition or after further manufacturing, processing or preparation
     thereof, utilizing in connection therewith, without charge or liability to
     Seller therefore, any of Buyer's assets) at public or private sale, as
     Seller deems advisable for cash, or credit, or such other terms as Seller
     deems acceptable; provided however, that Buyer shall be credited with the
     net proceeds of such sale or other disposition only when such proceeds are
     actually received by Seller and Seller may become the purchaser at any such
     sale if permissible under applicable law. Buyer shall, if Seller requests,
     assemble the Collateral and make it available to Seller at a place or
     places to be designated by Seller which is reasonably convenient to Seller
     and Buyer. Seller shall not be obligated to make any sale of Collateral
     regardless of notice of sale having been given. Seller may adjourn any
     public or private sale from time to time by announcement at he time and
     place fixed therefore, and such sale may without further notice, be made at
     the time and place to which it was so adjourned. Buyer recognizes that if
     Buyer fails to perform, observe or discharge any of its obligations under
     this Agreement, not remedy of law will provide adequate relief to Seller;
     therefore, Buyer agrees that Seller shall be entitled to temporary and
     permanent injunctive relief in any such case without the necessity of
     proving actual damages. Seller may enter the premises of Buyer and take
     possession of the Collateral and of the records pertaining to the
     Collateral. Buyer grants to Seller a right of entry to obtain possession of
     such Collateral and records and further promises to store such Collateral
     and records on the premises of Buyer without cost to Seller.

Paragraph 13. Interpretation and Parole Evidence

13.01 This writing is intended by the Parties as a final expression of their
     agreement and understanding concerning the matters contained herein, and is
     also intended as a complete and exclusive statement of the terms of their
     agreement and understanding. No course of prior dealings between the
     Parties and no usage of the trade shall be relevant to supplement or
     explain any term used in the Agreement. Acceptance or acquiescence in a
     course of performance rendered under this contact shall be relevant to
     determine the meaning of this Agreement even though the accepting or
     acquiescing Party has knowledge of the nature of performance and
     opportunity of objection. Whenever a term defined by the California
     Commercial Code is used in the Agreement, the definition contained in the
     California Commercial Code shall control.

Paragraph 14. Authority of Seller's Agents

14.01 No agent, employee or representative of Seller has any authority to bind
     Seller to any affirmation, representation, or warranty concerning the Goods
     sold under this Agreement, and unless an affirmation, representation, or
     warranty made by an agent, employee or representative is specifically
     included within this written contract, is has not constituted a part of the
     basis of this bargain and shall not in any way be enforceable.

Paragraph 15. Miscellaneous Provisions

15.01 No supplement, modification or amendment of this Agreement shall be
     binding unless executed in writing by all the Parties. No waiver of any of
     the provisions of this Agreement shall be deemed, or shall constitute, a
     waiver of any other provision, whether or not similar, not shall any waiver
     constitute a continuing waiver. No waiver shall be binding unless executed
     in writing by the Party making the waiver. This Agreement may be executed
     simultaneously in one or more counterparts, each of which shall be deemed
     an original, but all of which together shall constitute on and the same
     instrument. The Parties shall promptly execute and deliver such additional
     documents and instruments as shall be necessary to effectuate this
     transaction.

15.02 This Agreement, and all rights and obligation of the Parties under this
     Agreement, shall be construed in accordance with, and governed by, the
     Uniform Commercial Code as enacted and in force in the State of California
     of the Effective Date.

15.03 If any legal action or any arbitration or other proceeding is brought for
     the interpretation or enforcement of this Agreement, or because of an
     alleged dispute, breach, default or misrepresentation in connection with
     any of the provisions of the Agreement, the successful or prevailing Party
     shall be entitled to recover from the non-prevailing or unsuccessful Party
     reasonable attorneys' fees and other costs incurred in that action or
     proceeding, in addition to any other relief to which it or they may be
     entitled.

15.04 Any dispute under this Agreement shall only be litigated in any court
     having its situs within the County of Los Angeles, and the parties consent
     and submit to the jurisdiction of any state or federal court located within
     such venue which has original jurisdiction over matters which arise within
     the County of Los Angeles.

15.05 If any provision of this agreement is held by a court of competent
     jurisdiction to be invalid, void or unenforceable, the remaining provisions
     will continue in full force and effect without being impaired or
     invalidated in any way.

15.06 This Agreement shall insure to the benefit of, and shall be binding upon,
     each of the Parties, and each of their respective predecessors, successors,
     assigns, representatives, heirs and devises.

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the
Effective Date.
<TABLE>
<CAPTION>
  "SELLER"                           "BUYER"
<S>                                  <C>
  Chasin of Long Beach, Inc. dba     Auxer Telecom, Inc.
  Colbie Pacific Capital

  By: /s/ Neil Chaslin               By: /s/ Ronald Shaver
  -------------------------------    ---------------------
  Its:     Vice President            Its:     President
</TABLE>ACQUISITION AGREEMENT AND PLAN OF REORGANIZATION

     THIS ACQUISITION AGREEMENT AND PLAN OF REORGANIZATION, (hereinafter the
"Agreement") is made and entered into this 18th day of April, 1995 by and
between The Auxer Gold Mines, an Idaho corporation (hereinafter "Auxer"), CT
Industries, Inc., a Nevada corporation (hereinafter "CTI"), and the shareholders
of CT Industries, Inc. (hereinafter "Shareholders").

                                    RECITALS

     WHEREAS, Auxer desires to acquire all of the issued and outstanding shares
of CTI capital stock in exchange for 4,000,000 shares of authorized but
previously unissued Auxer common stock, par value One Tenth of a Cent ($.001)
per share, and pursuant to the terms and conditions set forth herein;

     WHEREAS, the Shareholders of CTI desire to exchange all of their shares of
CTI capital stock for shares of Auxer common stock in the respective amounts set
forth herein; and

     WHEREAS, the parties hereto desire to reorganize the management and
operations of Auxer, to change the corporation name to Auxer Industries, Inc.,
and to change the principal place of business of the corporation.

     NOW, THEREFORE, in consideration of the premises and mutual
representations, warranties and covenants herein contained, the parties hereby
agree as follows:

                                    ARTICLE I

                       ACQUISITION AND EXCHANGE OF SHARES

     SECTION 1.1 Acquisition and Plan of Reorganization. The parties hereby
agree that Auxer shall acquire all of the issued and outstanding shares of M
capital stock, in exchange for four million (4,000,000) shares of authorized but
previously unissued Auxer common stock, par value $.001 per share. It is also
agreed to by the parties hereto that by acquiring all of the shares of CTI
capital stock, Auxer will acquire all rights, title and interest to certain
identified assets and property presently owned by CTI and specifically described
and set forth in Exhibit 1.1, annexed hereto and by this reference made a part
hereof. Said assets and property may be subject to certain interests, liens
and/or encumbrances which are further described in Exhibit 1.1. The parties
hereto hereby further agree that (i) at the Closing, as hereinafter defined, CTI
shall become a wholly-owned subsidiary of Auxer subject to the conditions and
provisions of Section 1.5 hereof; (ii) as promptly as practicable after the
effectiveness of the Closing, Auxer's corporate name shall be changed to Auxer
Industries, Inc.; and (iii) as promptly as practicable after the Closing, the
necessary steps shall be taken in order to reflect the relocation of Auxer's
principal place of business to Newark, New Jersey.

     SECTION 1.2 Issuance of Shares.

     (a)  Upon the Closing of this Agreement, Auxer shall cause to be issued and
          delivered to the Shareholders of CTI or their designees, stock
          certificates representing an aggregate of 4,000,000 shares (the "Auxer
          Shares") of Auxer common stock.

     (b)  The Auxer Shares to be issued hereunder shall be authorized but
          previously unissued shares of Auxer common stock, and shall be issued
          to those persons and in the respective amounts set forth in Exhibit
          1.2 annexed hereto and by this reference made a part hereof.

     (c)  It is hereby acknowledged by the parties hereto that pursuant to that
          certain Marketing Agreement entered into by and between Auxer and CTI
          on March 13, 1995, Auxer issued to CTI 100,000 shares of authorized
          but previously unissued common stock of Auxer as consideration for the
          Marketing Agreement. It is agreed upon by the parties hereto that the
          100,000 shares are to be considered as part of the 4,000,000 shares of
          Auxer common stock to be issued hereunder and therefore upon the
          issuance of the additional 3,900,000 shares of Auxer common stock
          under the terms of this Agreement, the full consideration of the
          4,000,000 shares designated hereunder shall be deemed to have been
          satisfied. (d) All Auxer Shares to be issued hereunder are deemed
          "restricted securities" as defined by Rule 144 of the Securities Act
          of 1933, as amended (the "1933 Act"), and the recipients shall
          represent that they are acquiring the Auxer Shares for investment
          purposes only and without the intent to make a further distribution of
          the Auxer Shares. All Auxer Shares to be issued under the terms of
          this Agreement shall be issued pursuant to an exemption from the
          registration requirements of the 1933 Act, under Section 4(2) of the
          1933 Act and the rules and regulations promulgated thereunder.
          Certificates representing the Auxer Shares to be issued hereunder
          shall bear the following legend:

          The shares represented by this certificate have not been registered
          under the Securities Act of 1933, as amended, and may not be offered
          for sale, sold or otherwise transferred except in compliance with the
          registration provisions of such Act or pursuant to an exemption from
          such registration provisions, the availability of which is to be
          established to the satisfaction of the Company.

     SECTION 1.3 Closing.

     The closing of this Agreement and the transactions contemplated hereby (the
     "Closing") shall take place on the day of ,1995 (the "Closing Date"), at a
     time and place to be mutually agreed upon by the parties hereto, and shall
     be subject to the provisions of Article X of this Agreement. At the
     Closing:

          (a)  CTI shall deliver to Auxer all stock certificates representing
               100% of the issued and outstanding shares of CTI capital stock,
               duly endorsed, so as to make Auxer the sole holder thereof, free
               and clear of all claims and encumbrances;

          (b)  Auxer shall deliver to those persons listed in Exhibit 1.2 stock
               certificates representing an aggregate of 4,000,000 shares of
               Auxer common stock and which certificates shall bear a standard
               restrictive legend in the form customarily used with restricted
               securities and as set forth in Section 1.2(d) above;

          (c)  Auxer shall deliver an Officer's Certificate as described in
               Sections 9.1 and 9.2 hereof, dated the Closing Date, that all
               representations, warranties, covenants and conditions set forth
               herein by Auxer are true and correct as of, or have been fully
               performed and complied with by, the Closing Date; and

          (d)  CTI shall deliver an Officer's Certificate as described in
               Sections 8.1 and 8.2 hereof, dated the Closing Date, that all
               representations, warranties, covenants and conditions set forth
               herein by CTI and Shareholders are true and correct as of, or
               have been fully performed and complied with by, the Closing Date;

     SECTION 1.4 Auxer Special Meeting of Shareholders. In anticipation of this
Agreement and prior to the Closing Date, Auxer shall have taken all necessary
and requisite action to call for a Special Meeting of Shareholders to be held on
or before April 18, 1995, in order to transact the following business:

          (a)  To ratify this Agreement and all transactions contemplated
               hereby;

          (b)  To amend the Articles of Incorporation to change the corporate
               name to Auxer Industries, Inc., or any other name deemed suitable
               by the shareholders attending the meeting;

          (c)  To accept the resignation of the current directors of the Company
               and to nominate and elect a new Board of Directors consisting of
               the following three nominees: Eugene Chiaramonte, Jr., Howard
               Tapen and Eugene Chiaramonte III;

          (d)  To amend the Articles of Incorporation to change the authorized
               capitalization of the Company to 50,000,000 shares of common
               stock, par value $.001 per share; and

          (e)  To amend the Articles of Incorporation to change the stated
               corporate purpose to permit the corporation to engage in any
               lawful act or activity for which a corporation may be organized
               under the Idaho Business Corporation Act.

     SECTION 1.5 Consummation of Transaction. If at the Closing, no condition
exists which would permit any of the parties to terminate this Agreement, or a
condition then exists and the party entitled to terminate because of that
condition elects not to do so, then the transactions herein contemplated shall
be consummated upon such date, and then and thereupon, Auxer shall file any
additional necessary documents that may be required by the State of Idaho.

                                   ARTICLE II
                     REPRESENTATIONS AND WARRANTIES OF AUXER

Auxer hereby represents, warrants and agrees that:

     SECTION 2.1 Organization of Auxer. Auxer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Idaho, is
duly qualified and in good standing as a foreign corporation in every
jurisdiction in which such qualification is necessary, and has the corporate
power and authority to own its properties and assets and to transact the
business in which it is engaged. There are no corporations or other entities
with respect to which (i) Auxer owns any of the outstanding stock or other
interest, or (ii) Auxer may be deemed to be in control because of factors or
relationships other that the quantity of stock or other interest owned. Auxer
has all requisite corporate power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated hereby. This Agreement
is the legal, valid and binding obligation of Auxer, enforceable against Auxer
in accordance with its respective terms except to the extent that such
enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors' rights generally. SECTION 2.2 Capitalization
of Auxer. The authorized capital stock of Auxer consists of 10,000,000 shares of
common stock, par value $.50 per share, of which 1,029,929 shares are presently
issued and outstanding. All shares of Auxer common stock currently issued and
outstanding have been duly authorized and validly issued and are fully paid and
non-assessable, and have been issued in compliance with applicable federal and
state laws or pursuant to appropriate exemptions therefrom. There are no
options, warrants, rights, calls, commitments or agreements of any character
obligating Auxer to issue any shares of its capital stock or any security
representing the right to purchase or otherwise receive any such stock. Shares
of Auxer common stock to be issued pursuant to this Agreement, when so issued,
will be duly authorized, validly issued, fully paid and non-assessable.

     SECTION 2.3 Charter Documents. Certified copies of the Auxer Articles of
Incorporation and By-Laws, as amended to date, are annexed hereto as Exhibit 2.3
and by this reference made a part hereof.

     SECTION 2.4 Corporate Documents. The Auxer shareholders' list and corporate
minute books are complete and accurate as of the date hereof and the corporate
minute books contain the recorded minutes of all corporate meetings of
shareholders and directors.

     SECTION 2.5 Financial Statements. Auxer's financial statements for the
period ended March 31, 1995 and the fiscal years ended December 31, 1994 and
1993, a copy of which is annexed hereto as Exhibit 2.5 and by this reference
made a part hereof, are true and complete in all material respects, having been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis for the periods covered by such statements, and fairly
present, in accordance with generally accepted accounting principles, the
financial condition of Auxer, and results of its operations for the periods
covered thereby. Except as otherwise disclosed to CTI in writing and as set
forth herein, there has been no material adverse change in the business
operations, assets, properties, prospects or condition (financial or otherwise)
of Auxer taken as a whole from that reflected in the financial statements
referred to in this Section 2.5.

     SECTION 2.6 Absence of Certain Changes or Events. Since the date of the
Auxer financial report attached hereto as Exhibit 2.5 and except as disclosed
otherwise herein, Auxer has not (i) issued or sold any promissory note, stock,
bond, option or other corporate security of which it was an issuer or other
obligor, (ii) discharged or satisfied any lien or encumbrance or paid any
obligation or liability, absolute or contingent, direct of indirect, (iii)
incurred or suffered to be incurred any liability or obligation whatsoever, (iv)
caused or permitted any lien, encumbrance or security interest to be created or
arise on or in any of its properties or assets, (v) declared or made any
dividend, payment or distribution to stock holders or purchased or redeemed or
agreed to purchase or redeem any shares of its capital stock, (vi) reclassified
its shares of capital stock, or (vii) entered into any agreement or transaction
except in connection with the execution and performance of this Agreement.

     SECTION 2.7 Assets and Liabilities. Auxer does not have any material assets
as reflected in the financial statements included as Exhibit 2.5. As of the date
hereof, Auxer does not have any debts, liabilities or obligations of any nature,
whether accrued, absolute, contingent, or otherwise, whether due or to become
due, that are not fully reflected in the Auxer financial statements.

     SECTION 2.8 Tax Returns and Payments. Auxer has filed with the appropriate
governmental authority tax returns, whether based upon income, sales or
franchise, as required by law to be filed on or before the date of this
Agreement with the exception of its federal corporate tax returns. Auxer
represents that immediately upon the Closing it will prepare and file those
required federal tax returns that may be due. Auxer has paid all taxes to be due
on said returns, any assessments made against Auxer and all other taxes, fees
and similar charges imposed on Auxer by any governmental authority. No tax liens
have been filed and no claims are being assessed and no returns are under audit
with respect to any such taxes, fees or other similar charges.

     SECTION 2.9 Contracts. Auxer is not a party to or bound by any contract or
commitment, including guaranty whether written or oral, except as otherwise
disclosed in Exhibit 2.9.

     SECTION 2.10 Required Authorizations. There have been or will be timely
filed, given, obtained or taken, all applications, notices, consents, approvals,
orders, registrations, qualifications waivers or other actions of any kind
required by virtue of execution and delivery of this Agreement by Auxer or the
consummation by it of the transactions contemplated hereby. Prior to the
Closing, the shareholders of Auxer shall have approved this Agreement and the
transactions contemplated hereunder and the appropriate corporate filings shall
have been made with the State of Idaho.

     SECTION 2.11 Compliance with Law and Government Regulations. Auxer is in
compliance with and is not in violation of, applicable federal, state, local or
foreign statutes, laws and regulations (including without limitation, any
applicable building, zoning or other law, ordinance or regulation) affecting its
properties or the operation of its business. Auxer is not subject to any order,
decree, judgment or other sanction of any court, administrative agency or other
tribunal.

     SECTION 2.12 Litigation. There is no litigation, arbitration, proceeding or
investigation pending or threatened to which Auxer is a party or which may
result in any material change in the business or condition, financial or
otherwise, of Auxer or in any of its properties or assets, or which might result
in any liability on the part of Auxer, or which questions the validity of this
Agreement or of any action taken or to be taken pursuant to or in connection
with the provisions of this Agreement, and to the best knowledge of Auxer, there
is no basis for any such litigation, arbitration, proceeding or investigation.

     SECTION 2.13 Trade Names and Rights. Auxer does not use any trade mark,
service mark, trade name, or copyright in its business, nor does it own any
trade marks, trade mark registrations or application, trade name, service marks,
copyrights, copyright registrations or application. No person owns any trade
mark, trade mark registration or application, service mark, trade name,
copyright, or copyright registration or application, the use of which is
necessary or contemplated in connection with the operation of Auxer's business.

     SECTION 2.14 Governmental Consent. No consent, approval, authorization or
order of, or registration, qualification, designation, declaration or filing
with, any governmental authority on the part of Auxer is required in connection
with the execution and delivery of this Agreement or the carrying out of any
transactions contemplated hereby with the exception of the necessary corporate
filings with the State of Idaho relating to the amendment of the Articles of
Incorporation and the proposed exchange of shares.

     SECTION 2.15 Authority. Auxer and its shareholders will, prior to the
Closing, approve this Agreement and the transactions contemplated hereby and
will duly authorize the execution and delivery hereof. Auxer has full power,
authority and legal right to enter into this Agreement and to consummate the
transactions contemplated hereby, and all corporate action necessary to
authorize the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby has been duly and validly taken. The
execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby and compliance by Auxer with the provisions hereof will not
(a) conflict with or result in a breach of any provisions of, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the creation of any lien, security
interest, charge or encumbrance upon any of the properties or assets of Auxer
under, any of the terms, conditions or provisions of the Articles of
Incorporation or By-Laws of Auxer, or any note, bond, mortgage, indenture,
license, lease, agreement or any instrument or obligation to which Auxer is a
party or by which it is bound; or (b) violate any order, writ, injunction,
decree, statute, rule or regulation applicable to Auxer or any of its properties
or assets.

     SECTION 2.16 Full Disclosure. None of the representations and warranties
made by Auxer herein, or in any exhibit, certificate or memorandum furnished or
to be furnished by Auxer, on its behalf pursuant hereto, contains or will
contain any untrue statement of material fact, or omits any material fact, the
omission of which would be misleading.

                                   ARTICLE III
                               COVENANTS OF AUXER

     SECTION 3.1 Conduct Prior to the Closing. Between the date hereof and the
Closing:

          (a)  Auxer will not enter into any material agreement, contract or
               commitment, whether written or oral, or engage in any
               transaction, without the prior written consent of CTI;

          (b)  Auxer will not declare any dividends or distributions with
               respect to its capital stock or amend its Articles of
               Incorporation or By-Laws, without the prior written consent of
               CTI;

          (c)  Auxer will not authorize, issue, sell, purchase or redeem any
               shares of its capital stock or any options or other rights to
               acquire its capital stock, without the prior written consent of
               CTI;

          (d)  Auxer will comply with all requirements which federal or state
               law may impose on it with respect to this Agreement and the
               transactions contemplated hereby, and will promptly cooperate
               with and furnish written information to CTI in connection with
               any such requirements imposed upon the parties hereto in
               connection therewith;

          (e)  Auxer will not incur any indebtedness for money borrowed, or
               issue or sell any debt securities, incur or suffer to be incurred
               any liability or obligation of any nature whatsoever, or cause or
               permit any lien, encumbrance or security interest to be created
               or arise on or in any of its properties or assets, acquire or
               dispose of fixed assets, change employment terms, enter into any
               material or long-term contract, guarantee obligations of any
               third party, settle or discharge any balance sheet receivable for
               less than its stated amount or enter into any other transaction
               other than in the regular course of business, except to comply
               with the terms of this Agreement, without the prior written
               consent of CTI;

          (f)  Auxer shall grant to CTI and its counsel, accountants and other
               representatives, full access during normal business hours during
               the period prior to the Closing to all its respective properties,
               books, contracts, commitments and records and, during such
               period, furnish promptly to CTI and such representatives all
               information relating to Auxer as CTI may reasonably request, and
               shall extend to CTI the opportunity to meet with Auxer's
               accountants and attorneys to discuss the financial condition of
               Auxer; and

          (g)  Except for the transactions contemplated by this Agreement, Auxer
               will conduct its business in the normal course, and shall not
               sell, pledge or assign any of its assets without the prior
               written consent of CTI.

     SECTION 3.2 Affirmative Covenants. Prior to Closing, Auxer will do the
following.

          (a)  Use its best efforts to accomplish all actions necessary to
               consummate this Agreement, including satisfaction of all the
               conditions contained in this Agreement;

          (b)  Promptly notify CTI in writing of any material adverse change in
               the financial condition, business, operations or key personnel of
               Auxer, any threatened material litigation or investigation, any
               breach of its representations or warranties contained herein, and
               any material contract, agreement, license or other agreement
               which, if in effect on the date of this Agreement, should have
               been included in this Agreement or in an exhibit annexed hereto
               and made a part hereof;

          (c)  Obtain approval of this Agreement from its shareholders;

          (d)  Nominate at the Auxer Special Meeting of Shareholders a new Board
               of Directors, nominees to be Eugene Chiaramonte, Jr., Howard
               Tapen and Eugene Chiaramonte III;

          (e)  Reserve, and promptly after the Closing, issue and deliver to
               Shareholders or their designees the number of shares of Auxer
               common stock required hereunder;

          (f)  Take the necessary corporate action to amend its Articles of
               Incorporation to change its name to Auxer Industries, Inc. or any
               other name deemed suitable and approved by the shareholders; and

          (g)  Take all other necessary corporate actions to accomplish those
               items set forth in Section 1.4 hereof.

                                   ARTICLE IV
             REPRESENTATIONS AND WARRANTIES OF CTI AND SHAREHOLDERS

CTI and Shareholders hereby represent, warrant and agree that:

     SECTION 4.1 Organization of CTI. CTI is a corporation duly organized,
validly existing and in good standing under the laws of the State of Nevada and
is duly qualified and in good standing in every jurisdiction in which such
qualification is necessary. There are no corporations or other entities with
respect to which (i) CTI owns any of the outstanding stock or other interest, or
(ii) CTI may be deemed to be in control because of factors or relationships
other than the percentage of outstanding stock or other interest owned in such
entity except as otherwise disclosed in Exhibit 4.1 annexed hereto and by this
reference made a part hereof. CTI has all requisite corporate power and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

     SECTION 4.2 Charter Documents. Complete and correct copies of the Articles
of Incorporation and By-Laws of CTI and all amendments thereto, have been or
will be delivered to Auxer prior to the Closing.

     SECTION 4.3 Financial Statements / Assets and Liabilities. CTI's financial
statements for the period ended December 31, 1994, a copy of which is annexed
hereto as Exhibit 4.3 and by this reference made a part hereof; are true and
complete in all material respects, having been prepared in accordance with
generally accepted accounting principles applied on a consistent basis for the
periods covered by such statements, and fairly present the financial condition
of CTI and results of its operations for the periods covered thereby. CTI has
good and marketable title to all of its assets and property to be delivered to
Auxer hereunder (by way of tendering all of its outstanding shares of common
stock to Auxer), free and clear of any and all liens, claims and encumbrances,
except as may be otherwise set forth herein and in its financial statements or
as otherwise set forth in Exhibit 1.1.

     SECTION 4.4 Tax Returns and Payments. All of CTI's tax returns (federal,
state, city, county or foreign) which are required by law to be filed on or
before the date of this Agreement, have been duly filed or extended with the
appropriate governmental authority. CTI has paid all taxes to be due on said
returns, any assessments made against CTI and all other taxes, fees and similar
charges imposed on CTI by any governmental authority (other than those, the
amount or validity of which is being contested in good faith by appropriate
proceedings). No tax liens have been filed and no claims are being assessed with
respect to any such taxes, fees or other similar charges.

     SECTION 4.5 Required Authorizations. There have been or will be timely
filed, given, obtained or taken, all applications, notices, consents, approvals,
orders, registrations, qualifications waivers or other actions of any kind
required by virtue of execution and delivery of this Agreement by CTI or the
consummation by it of the transactions contemplated hereby.

     SECTION 4.6 Compliance with Law and Government Regulations. CTI is in
compliance with all applicable statutes, regulations, decrees, orders,
restrictions, guidelines and standards affecting its properties and operations,
imposed by the United States of America or any state to which CTI is subject.

     SECTION 4.7 Litigation. There is no material litigation, arbitration,
proceeding or investigation pending or threatened to which it is a party or
which may result in any material change in the business or condition, financial
or otherwise, of CTI or in any of its properties or assets, or which if
determined against CTI would have a material adverse effect against CTI, or
which might result in any liability on the part of CTI, or which questions the
validity of this Agreement or of any action taken or to be taken pursuant to or
in connection with the provisions of this Agreement, and to the best knowledge
of CTI, there is no basis for any such litigation, arbitration, proceeding or
investigation.

     SECTION 4.8 Patents, Trade Names and Rights Exhibit 4.8 annexed hereto and
by this reference made a part hereof, contains a complete list of all patents,
trademarks, service marks, trademark and service mark registrations,
applications and licenses with respect to the foregoing owned or held by M. CTI
has no knowledge of any facts and nothing has come to its attention that would
lead it to believe that it has infringed or misappropriated or is infringing
upon any trademark, copyright, patent or other similar right of any person. No
claim relating thereto is pending or to the knowledge of CTI is threatened.

     SECTION 4.9 Governmental Consent. No consent, approval, authorization or
order of, or registration, qualification, designation, declaration or filing
with, any governmental authority on the part of CTI is required in connection
with the execution and delivery of this Agreement or the carrying out of any
transactions contemplated hereby.

     SECTION 4.10 Authority . CTI and its Shareholders representing no less than
one hundred percent (100%) of the issued and outstanding shares of CTI capital
stock of record, have approved this Agreement and duly authorized the execution
and delivery hereof. CTI has full power, authority and legal right to enter into
this Agreement on behalf of CTI and its Shareholders and to consummate the
transactions contemplated hereby, and all corporate action necessary to
authorize the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby has been duly and validly taken. The
execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby and compliance by CTI with the provisions hereof will not
(a) conflict with or result in a breach of any provisions of, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the creation of any lien, security
interest, charge or encumbrance upon any of the properties or assets of CTI
under, any of the terms, conditions or provisions of the Articles of
Incorporation or By-Laws of CTI, or any note, bond, mortgage, indenture,
license, agreement or any instrument or obligation to which CTI is party or by
which it is bound; or (b) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to CTI or any of its properties or assets.

     SECTION 4.11 Ownership of Shares. Shareholders representing 100% of the CTI
capital stock currently issued and outstanding and which stock is to be
transferred to Auxer under this Agreement, have full power and authority to
transfer such shares of CTI capital stock to Auxer hereunder, and such shares
are free and clear of any liens, charges, mortgages, pledges or encumbrances and
such shares are not subject to any claims as to the ownership thereof or any
rights, powers or interest therein, by any third party.

     SECTION 4.12 Investment Purpose . CTI and Shareholders represent that the
recipients of the Auxer Shares hereunder are acquiring the shares for investment
purposes only and acknowledges that the Auger Shares issued hereunder are
"restricted securities" and may not be sold, traded or otherwise transferred
without registration under the 1933 Act or exemption therefrom.

     SECTION 4.13 Full Disclosure. None of the representations and warranties
made by CTI and Shareholders herein, or in any exhibit, certificate or
memorandum furnished or to be furnished by Auxer, on its behalf contains or will
contain any untrue statement of material fact, or omit any material fact, the
omission of which would be misleading.

                                    ARTICLE V
                                COVENANTS OF CTI

     SECTION 5.1 Conduct Prior to the Closing. Between the date hereof and the
Closing:

     (a)  Except within the regular course of business, CTI will not enter into
          any material agreement, contract or commitment, whether written or
          oral, or engage in any transaction, without the consent of Auxer;

     (b)  CTI will not declare any dividends or distributions with respect to
          its capital stock or amend its Articles of Incorporation or By-Laws,
          without the prior consent of Auxer;

     (c)  Except within the regular course of business, CTI will not incur any
          indebtedness for money borrowed or issue any debt securities, or incur
          or suffer to be incurred any liability or obligation of any nature
          whatsoever, or cause or permit any lien, encumbrance or security
          interest to be created or arise on or in any of its properties or
          assets, without the consent of Auxer;

     (d)  CTI will comply with all requirements which federal or state law may
          impose on it with respect to this Agreement and the transactions
          contemplated hereby, and will promptly cooperate with and furnish
          information to Auxer in connection with any such requirements imposed
          upon the parties hereto in connection therewith; and

     (e)  CTI shall grant to Auxer and its counsel, accountants and other
          representatives, full access during normal business hours during the
          period prior to the Closing to all its respective properties, books,
          contracts, commitments and records and, during such period, furnish
          promptly to Auxer and such representatives all information relating to
          CTI as Auxer may reasonably request, and shall extend to Auxer the
          opportunity to meet with CTI's accountants and attorneys to discuss
          the financial condition of CTI.

     SECTION 5.2 Affirmative Covenants. Prior to Closing, CTI will do the
following.

     (a)  Obtain the approval of its Board of Directors and Shareholders to
          proceed with this Agreement;

     (b)  Use its best efforts to accomplish all actions necessary to consummate
          this Agreement, including satisfaction of all the conditions contained
          in this Agreement; and

     (c)  Promptly notify Auxer in writing of any materially adverse change in
          the financial condition, business, operations or key personnel of CTI,
          any breach of its representations or warranties contained herein, and
          any material contract, agreement, license or other agreement which, if
          in effect on the date of this Agreement, should have been included in
          this Agreement.

                                   ARTICLE VI
                              ADDITIONAL AGREEMENTS

     SECTION 6.1 Expenses. Whether or not the transactions contemplated in this
Agreement are consummated, all costs and expenses incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such expense or as otherwise agreed to herein.

     SECTION 6.2 Brokers and Finders. Each of the parties hereto represents, as
to itself, that no agent, broker, investment banker or firm or person is or will
be entitled to any broker's or finder's fee or any other commission or similar
fee in connection with any of the transactions contemplated by this Agreement.

     SECTION 6.3 Necessary Actions. Subject to the terms and conditions herein
provided, each of the parties hereto agree to use all reasonable efforts to
take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated by this Agreement.
In the event at any time after the Closing, any further action is necessary or
desirable to carry out the purposes of this Agreement, the proper officers
and/or directors of Auxer or CTI, as the case may be, shall take all such
necessary action.

     SECTION 6.4 Indemnification.

     (a)  CTI and Shareholders agree to defend and hold Auger harmless against
          and in respect of any and all claims, demands, losses, costs,
          expenses, obligations, liabilities, damages, recoveries and
          deficiencies, including interest, penalties, and reasonable attorney
          fees, that Auxer shall incur or suffer, which arise out of, result
          from or relate to any material breach of, or failure by CTI and/or
          Shareholders to perform any of its representations, warranties,
          covenants and agreements in this Agreement or in any exhibit or other
          instrument furnished or to be furnished by CTI and Shareholders under
          this Agreement.

     (b)  Auxer agrees to defend and hold CTI and Shareholders harmless against
          and in respect of any and all claims, demands, losses, costs,
          expenses, obligations, liabilities, damages, recoveries and
          deficiencies, including interest, penalties, and reasonable attorney
          fees, that CTI and/or Shareholders shall incur or suffer, which arise
          out of, result from or relate to any material breach of, or failure by
          Auxer to perform any of its representations, warranties, covenants and
          agreements in this Agreement or in any exhibit or other instrument
          furnished or to be furnished by Auxer under this Agreement.

     SECTION 6.5 Confidentiality. All parties hereto agree to keep confidential
this Agreement and all information and documents relating to this Agreement
until such time as the Agreement and the transactions contemplated hereunder are
made public by means of an appropriate press release or by any other means
reasonably assured to make such information publicly available.

                                   ARTICLE VII
                    CONDITIONS TO OBLIGATIONS OF TIE PARTIES

     The obligations of the parties under this Agreement are subject to the
fulfillment and satisfaction of each of the following conditions:

     SECTION 7.1 Legal Action. No preliminary or permanent injunction or other
order by any federal or state court which prevents the consummation of this
Agreement or any of the transactions contemplated by this Agreement shall have
been issued and remain in effect.

     SECTION 7.2 Absence of Termination. The obligations to consummate the
transactions contemplated hereby shall not have been canceled pursuant to
Article X hereof.

     SECTION 7.3 Required Approvals. Auger and CTI shall have received all such
approvals, consents, authorizations or modifications as may be required to
permit the performance by Auxer and C77 of the respective obligations under this
Agreement, and the consummation of the transactions herein contemplated, whether
from governmental authorities or other persons, and Auxer and CTI shall each
have received any and all permits and approvals from any regulatory authority
having jurisdiction required for the lawful consummation of this Agreement.

     SECTION 7.4 Blue Sky Compliance. There shall have been obtained any and all
permits, approvals and consents of the Securities or "Blue Sky" Commissions of
any jurisdictions, and of any other governmental body or agency, which counsel
for Auxer may reasonably deem necessary or appropriate so that consummation of
the transactions contemplated by this Agreement may be in compliance with all
applicable laws.

                                  ARTICLE VIII
                  CONDITIONS PRECEDENT TO OBLIGATIONS OF AUXER

     All obligations of Auxer under this Agreement are subject to the
fulfillment and satisfaction by CTI and Shareholders prior to or at the time of
the Closing, of each of the following conditions, any one or more of which may
be waived by Auxer.

     SECTION 8.1 Representations and Warranties True at the Closing. All
representations and warranties of CTI and Shareholders contained in this
Agreement will be true and correct at and as of the time of the Closing, and CTI
and Shareholders shall have delivered to Auxer certificates, dated the date of
the Closing, to such effect and in the form and substance satisfactory to Auxer,
and signed, in the case of CTI, by its president and secretary.

     SECTION 8.2 Performance. The obligations of CTI and Shareholders to be
performed on or before the Closing pursuant to the terms of this Agreement shall
have been duly performed at such time, and CTI and Shareholders shall have
delivered to Auxer a certificate, dated the date of the Closing, to such effect
and in form and substance satisfactory to Auxer.

     SECTION 8.3 Authority. All action required to be taken by, or on the part
of CTI and its Shareholders to authorize the execution, delivery and performance
of this Agreement by CTI and Shareholders and the consummation of the
transactions contemplated hereby, shall have been duly and validly taken.

     SECTION 8.4 Absence of Certain Changes or Events. There shall not have
occurred, since the date hereof' any adverse change in the business, condition,
(financial or otherwise), assets or liabilities of CTI or any event or condition
of any character adversely affecting CTI, and it shall have delivered to Auxer,
certificates, dated the date of the Closing, to such effect and in form and
substance satisfactory to Auxer and signed, in the case of CTI, by its president
and secretary.

     SECTION 8.5 Acceptance by CTI Shareholders. The holders of record as of the
Closing of an aggregate of not less than one hundred percent (100%) of the
issued and outstanding shares of capital stock of CTI have agreed to exchange
their shares for the Auxer Shares specified herein.

                                   ARTICLE IX
                   CONDITIONS PRECEDENT TO OBLIGATIONS OF CTI

     All obligations of CTI and Shareholders under this Agreement are subject to
the fulfillment and satisfaction by Auxer, prior to or at the time of Closing,
of each of the following conditions, any one or more of which may be waived by
CTI and Shareholders.

     SECTION 9.1 Representations and Warranties True at the Closing. All
representations and warranties of Auxer contained in this Agreement will be true
and correct at and as of the time of the Closing, and Auxer shall have delivered
to CTI a certificate, dated the date of the Closing, to such effect and in the
form and substance satisfactory to CTI and Shareholders, and signed, in the case
of Auxer, by its president and secretary.

     SECTION 9.2 Performance. Each of the obligations of Auxer to be performed
on or before the Closing pursuant to the terms of this Agreement shall have been
duly performed at the time of the Closing, and Auxer shall have delivered to CTI
a certificate, dated the date of the Closing, to such effect and in form and
substance satisfactory to CTI and Shareholders, and signed, in the case of
Auxer, by its president and secretary.

     SECTION 9.3 Authority. All action required to be taken by, or on the part
of Auxer, to authorize the execution, delivery and performance of this Agreement
by Auxer, and the consummation of the transactions contemplated hereby shall be
duly and validly taken.

     SECTION 9.4 Absence of Certain Chances or Events. There shall not have
occurred, since the date hereof, any adverse change in the business, condition,
(financial or otherwise), assets or liabilities of Auxer or any event or
condition of any character adversely affecting Auxer and it shall have delivered
to CTI, certificates, dated the date of the Closing, to such effect and in form
and substance satisfactory to CTI and Shareholders and signed, in the case of
Auxer, by its president and secretary.

     SECTION 9.5 Action by Auxer Shareholders. Prior to the Closing of this
Agreement, the shareholders of Auxer shall have approved this Agreement and the
transactions contemplated hereunder, approved the amendments to the Auxer
Articles of Incorporation as set forth in Section 1.4 above, and shall have
elected new directors as specified in Section 1.4(d) above. The current
directors and officers of Auxer shall have submitted their resignations as
directors and officers of Auxer effective on the Closing of this Agreement.

                                    ARTICLE X
                                   TERMINATION

     SECTION 10.1 Termination. Notwithstanding anything herein or elsewhere to
the contrary, this Agreement may be terminated:

     (a)  By mutual agreement of all the parties hereto at any time;

     (b)  By the board of directors of Auxer at any time prior to the Closing if

          (i)  a condition to performance by Auxer under this Agreement or a
               covenant of CTI and/or Shareholders contained herein shall not be
               fulfilled on or before the time of the Closing or at such other
               time and date specified for the fulfillment for such covenant or
               condition; or

          (ii) a material default or breach of this Agreement shall be made by
               CTI; or

          (iii) if the Closing shall not have taken place on or prior to May 31,
               1995.

     (c)  By the board of directors of CTI at any time prior to the Closing if

          (i)  a condition to CTI's and Shareholders' performance under this
               Agreement or a covenant of Auxer contained in this Agreement
               shall not be fulfilled on or before the Closing or at such other
               time and date specified for the fulfillment of such covenant or
               conditions;

          (ii) a material default or breach of this Agreement shall be made by
               Auger; or

          (iii) if the Closing shall not have taken place on or prior to May 31,
               1995.

     SECTION 10.2 Effect of Termination. If this

Agreement is terminated, this Agreement, except as to Section 11.1 and Section
11.2, shall no longer be of any force or effect and there shall be no liability
on the part of any party or its respective directors, officers or stockholders;
provided however, that in the case of a Termination without cause by a party or
a termination pursuant to Sections 10.1(b)(i) or 10.1(c)(i) hereof because of a
prior material default under or a material breach of this Agreement by another
party, the damages which the aggrieved party or parties may recover from the
defaulting party or parties shall in no event exceed the amount of out-of-pocket
costs and expenses incurred by such aggravated party or parties in connection
with this Agreement, and no party to this Agreement shall be entitled to any
injunctive relief.

                                   ARTICLE XI
                                  MISCELLANEOUS

     SECTION 11.1 Cost and Expenses. All costs and expenses incurred in
connection with this Agreement will be paid by the party incurring such
expenses. In the event of any termination of this Agreement pursuant to Section
10.1, subject to the provisions of Section 10.2, Auxer and CTI will each bear
their own respective expenses.

     SECTION 11.2 Extension of Time: Waivers. At any time prior to the Closing
date:

          (a)  Auxer may (i) extend the time for the performance of any of the
               obligations or other acts of CTI and/or Shareholders, (ii) waive
               any inaccuracies in the representations and warranties of CTI and
               Shareholders contained herein or in any document delivered
               pursuant hereto by CTI and Shareholders, and (iii) waive
               compliance with any of the agreements or conditions contained
               herein to be performed by CTI and Shareholders. Any agreement on
               the part of Auxer to any such extension or waiver shall be valid
               only if set forth in an instrument, in writing, signed on behalf
               of Auxer;

          (b)  CTI may (i) extend the time for the performance of any of the
               obligations or other acts of Auxer, (ii) waive any inaccuracies
               in the representations and warranties of Auxer contained herein
               or in any document delivered pursuant hereto by Auxer and (iii)
               waive compliance with any of the agreements or conditions
               contained herein to be performed by Auxer. Any agreement on the
               part of CTI and to any such extension or waiver shall be valid
               only if set forth in an instrument, in writing, signed on behalf
               of CTI.

     SECTION 11.3 Notices. Any notice to any party hereto pursuant to this
Agreement shall be in writing and given by Certified or Registered Mail or by
facsimile, addressed as follows:

     The Auger Gold Mines
     c/o Leonard E. Neilson
     Attorney at Law
     1121 East 3900 South, Suite 200
     Salt Lake City, Utah 84124

     CT Industries, Inc.
     P.O. Box 22895
     Newark, New Jersey 07101-9998

     Additional notices are to be given as to each party, at such other address
as should be designated in writing complying as to delivery with the terms of
this Section 11.3. All such notices shall be effective when sent, addressed as
aforesaid.

     SECTION 11.4 Parties in Interest. This Agreement shall inure to the benefit
of and be binding upon the parties hereto and the respective successors and
assigns. Nothing in this Agreement is intended to confer, expressly or by
implication, upon any other person any rights or remedies under or by reason of
this Agreement.

     SECTION 11.5 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and together shall
constitute one document. The delivery by facsimile of an executed counterpart of
this Agreement shall be deemed to be an original and shall have the full force
and effect of an original executed copy.

     SECTION 11.6 Severability. The parties hereto agree and affirm that none of
the provisions herein is dependent upon the validity of any other provision, and
if any part of this Agreement is deemed to be unenforceable, the remainder of
the Agreement shall remain in full force and effect.

     SECTION 11.7 Headings. The Article and Section headings are provided herein
for convenience of reference only and do not constitute a part of this
Agreement.

     SECTION 11.8 Governing Law. This Agreement shall be governed by the laws of
the State of Utah.

     SECTION 11.9 Survival of Representations and Warranties. All terms,
conditions, representations and warranties set forth in this Agreement or in any
instrument, certificate, opinion, or other writing providing for in it, shall
survive the Closing and the delivery of the Auxer Shares issued hereunder at the
Closing, for a period of one year from the Closing regardless of any
investigation made by or on behalf of any of the parties hereto.

     SECTION 11.10 Assignability. This Agreement shall not be assignable by any
of the parties hereto without the prior written consent of the other parties.

     SECTION 11.11 Amendment. This Agreement may be amended with the approval of
Shareholders and the boards of directors of Auxer and C77 at any time before or
after approval thereof by stockholders of Auxer, if required, and CTI; but after
such approval by the Auxer shareholders, no amendment shall be made which
substantially and adversely changes the terms hereof. This Agreement may not be
amended except by an instrument, in writing, signed on behalf of each of the
parties 'hereto.

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement in a manner legally binding upon them as of the date first above
written.

     "Auxer"

     THE AUXER GOLD MINES          Attest:

     By:
     Its: President                Secretary

     "CTI"
     CT INDUSTRIES, INC.

     By: /s/ Eugene Chiaramonte      /s/ Howard Tapen
     President                       Secretary

     "Shareholders"

     /s/ Eugene Chiaramonte
     EUGENE CHIARAMONTE, JR.

     /s/ Howard Tapen
     HOWARD TAPEN

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