Document:

EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "Agreement") is made and
entered into as of this ___ day of November, 2006 by and among UTIX Group, Inc.,
a Delaware corporation (the "Company"), and the "Investors" named in that
certain Purchase Agreement, dated as of November __, 2006 (the "Purchase
Agreement"), by and among the Company and the Investors. Capitalized terms used
herein have the respective meanings ascribed thereto in the Purchase Agreement
unless otherwise defined herein.

         The parties hereby agree as follows:

         1. CERTAIN DEFINITIONS.

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

         "COMMON STOCK" shall mean the Company's common stock, par value $0.001
per share, and any securities into which such shares may hereinafter be
reclassified.

         "INVESTORS" shall mean the Investors identified in the Purchase
Agreement and any Affiliate or permitted transferee of any Investor who is a
subsequent holder of any Warrants or Registrable Securities.

         "PROSPECTUS" shall mean (i) the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus, and (ii) any "free
writing prospectus" as defined in Rule 405 under the 1933 Act.

         "REGISTER," "REGISTERED" and "REGISTRATION" refer to a registration
made by preparing and filing a Registration Statement or similar document in
compliance with the 1933 Act (as defined below), and the declaration or ordering
of effectiveness of such Registration Statement or document.

         "REGISTRABLE SECURITIES" shall mean (i) the Conversion Shares, (ii) the
Warrant Shares and (iii) any other securities issued or issuable with respect to
or in exchange for Registrable Securities; provided, that, a security shall
cease to be a Registrable Security upon (A) sale pursuant to a Registration
Statement or Rule 144 under the 1933 Act, or (B) such security becoming eligible
for sale by the Investors pursuant to Rule 144(k).

         "REGISTRATION STATEMENT" shall mean any registration statement of the
Company filed under the 1933 Act that covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement, amendments
and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

         "REQUIRED INVESTORS" means the Investors holding a majority of the
Registrable Securities.

         2. REGISTRATION.

               (a) REGISTRATION STATEMENTS.

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               (i) Promptly following the initial Closing but no later than 60
days after the initial Closing Date (the "Filing Deadline"), the Company shall
prepare and file with the SEC one Registration Statement on Form SB-2 (or, if
Form SB-2 is not then available to the Company, on such form of registration
statement as is then available to effect a registration for resale of the
Registrable Securities, subject to the Required Investors' consent), covering
the resale of the Conversion Shares and the Warrant Shares issuable in respect
of the Shares and Warrants. Subject to any SEC comments, such Registration
Statement shall include the plan of distribution attached hereto as Exhibit A.
Such Registration Statement also shall cover, to the extent allowable under the
1933 Act and the rules promulgated thereunder (including Rule 416), such
indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends or similar transactions with respect to the Registrable
Securities. Such Registration Statement shall not include any shares of Common
Stock or other securities for the account of any other holder without the prior
written consent of the Required Investors. The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of
effectiveness thereof) shall be provided in accordance with Section 3(c) to the
Investors and Lowenstein Sandler PC prior to its filing or other submission. If
a Registration Statement covering the Registrable Securities is not filed with
the SEC on or prior to the Filing Deadline, the Company will make pro rata
payments to each Investor, as liquidated damages and not as a penalty, in an
amount equal to 1.5% of the aggregate amount invested by such Investor under the
Purchase Agreement for each 30-day period or pro rata for any portion thereof
following the Filing Deadline for which no Registration Statement is filed with
respect to the Registrable Securities. Such payments shall constitute the
Investors' exclusive monetary remedy for such events, but shall not affect the
right of the Investors to seek injunctive relief. Such payments shall be made to
each Investor in cash.

               (ii) ADDITIONAL REGISTRABLE SECURITIES. Upon the written demand
of any Investor and upon any change in the Conversion Price (as defined in the
Certificate of Designations) or the Warrant Price (as defined in the Warrant)
such that additional shares of Common Stock become issuable upon the conversion
of the Shares or the exercise of the Warrants, the Company shall prepare and
file with the SEC one or more Registration Statements on Form SB-2 or amend the
Registration Statement filed pursuant to clause (i) or (ii) above, if such
Registration Statement has not previously been declared effective (or, if Form
SB-2 is not then available to the Company, on such form of registration
statement as is then available to effect a registration for resale of such
additional shares of Common Stock (the "Additional Shares"), subject to the
Required Investors' consent) covering the resale of the Additional Shares, but
only to the extent the Additional Shares are not at the time covered by an
effective Registration Statement. Subject to any SEC comments, such Registration
Statement shall include the plan of distribution attached hereto as Exhibit A.
Such Registration Statement also shall cover, to the extent allowable under the
1933 Act and the rules promulgated thereunder (including Rule 416), such
indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends or similar transactions with respect to the Additional
Shares. Such Registration Statement shall not include any shares of Common Stock
or other securities for the account of any other holder without the prior
written consent of the Required Investors. The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of
effectiveness thereof) shall be provided in accordance with Section 3(c) to the
Investors and Lowenstein Sandler PC prior to its filing or other submission. If
a Registration Statement covering the Additional Shares is required to be filed
under this Section

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2(a)(ii) and is not filed with the SEC within ten Business Days of the request
of any Investor or upon the occurrence of any of the events specified in this
Section 2(a)(ii), the Company will make pro rata payments to each Investor, as
liquidated damages and not as a penalty, in an amount equal to 1.5% of the
aggregate amount invested by such Investor for each 30-day period or pro rata
for any portion thereof following the date by which such Registration Statement
should have been filed for which no Registration Statement is filed with respect
to the Additional Shares. Such payments shall constitute the Investors'
exclusive monetary remedy for such events, but shall not affect the right of the
Investors to seek injunctive relief. Such payments shall be made to each
Investor in cash.

               (iii) S-3 QUALIFICATION. Promptly following the date (the
"Qualification Date") upon which the Company becomes eligible to use a
registration statement on Form S-3 to register the Registrable Securities or
Additional Shares, as applicable, for resale, but in no event more than thirty
(30) days after the Qualification Date (the "Qualification Deadline"), the
Company shall file a registration statement on Form S-3 covering the Registrable
Securities or Additional Shares, as applicable (or a post-effective amendment on
Form S-3 to the registration statement on Form SB-2) (a "Shelf Registration
Statement") and shall use commercially reasonable efforts to cause such Shelf
Registration Statement to be declared effective as promptly as practicable
thereafter. If a Shelf Registration Statement covering the Registrable
Securities is not filed with the SEC on or prior to the Qualification Deadline,
the Company will make pro rata payments to each Investor, as liquidated damages
and not as a penalty, in an amount equal to 1.5% of the aggregate purchase price
paid by such Investor pursuant to the Purchase Agreement attributable to those
Registrable Securities that remain unsold at that time for each 30-day period or
pro rata for any portion thereof following the date by which such Shelf
Registration Statement should have been filed for which no such Shelf
Registration Statement is filed with respect to the Registrable Securities or
Additional Shares, as applicable. Such payments shall constitute the Investors'
exclusive monetary remedy for such events, but shall not affect the right of the
Investors to seek injunctive relief. Such payments shall be made to each
Investor in cash.

               (b) EXPENSES. The Company will pay all reasonable expenses
associated with each registration, including filing and printing fees, the
Company's counsel and accounting fees and expenses, costs associated with
clearing the Registrable Securities for sale under applicable state securities
laws, listing fees, reasonable fees and expenses of Lowenstein Sandler PC and
the Investors' reasonable expenses in connection with the registration, but
excluding discounts, commissions, fees of underwriters, selling brokers, dealer
managers or similar securities industry professionals with respect to the
Registrable Securities being sold.

               (c) EFFECTIVENESS.

               (i) The Company shall use commercially reasonable efforts to have
the Registration Statement declared effective as soon as practicable. The
Company shall notify the Investors by facsimile or e-mail as promptly as
practicable, and in any event, within twenty-four (24) hours, after any
Registration Statement is declared effective and shall simultaneously provide
the Investors with copies of any related Prospectus to be used in connection
with the sale or other disposition of the securities covered thereby. If (A)(x)
a Registration Statement covering the Registrable Securities is not declared
effective by the SEC prior to the earlier of (i)

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five (5) Business Days after the SEC shall have informed the Company that no
review of the Registration Statement will be made or that the SEC has no further
comments on the Registration Statement or (ii) the 120th day after the initial
Closing Date, (y) a Registration Statement covering Additional Shares is not
declared effective by the SEC within 120 days following the time such
Registration Statement was required to be filed pursuant to Section 2(a)(ii), or
(z) a Shelf Registration Statement is not declared effective by the SEC within
120 days after the Qualification Deadline or (B) after a Registration Statement
has been declared effective by the SEC, sales cannot be made pursuant to such
Registration Statement for any reason (including without limitation by reason of
a stop order, or the Company's failure to update the Registration Statement),
but excluding the inability of any Investor to sell the Registrable Securities
covered thereby (1) due to market conditions, (2) to the extent excused pursuant
to subparagraph (ii) below or (3) in the case of a particular Investor, solely
to any action on the part of such Investor or such Investor's Affiliates, then
the Company will make pro rata payments to each Investor, as liquidated damages
and not as a penalty, in an amount equal to 1.5% of the aggregate amount
invested by such Investor for each 30-day period or pro rata for any portion
thereof following the date by which such Registration Statement should have been
effective (the "Blackout Period"). Such payments shall constitute the Investors'
exclusive monetary remedy for such events, but shall not affect the right of the
Investors to seek injunctive relief. The amounts payable as liquidated damages
pursuant to this paragraph shall be paid monthly within three (3) Business Days
of the last day of each month following the commencement of the Blackout Period
until the termination of the Blackout Period. Such payments shall be made to
each Investor in cash.

               (ii) For not more than twenty (20) consecutive days or for a
total of not more than forty-five (45) days in any twelve (12) month period, the
Company may delay the disclosure of material non-public information concerning
the Company, by suspending the use of any Prospectus included in any
registration contemplated by this Section containing such information, the
disclosure of which at the time is not, in the good faith opinion of the
Company, in the best interests of the Company (an "Allowed Delay"); provided,
that the Company shall promptly (a) notify the Investors in writing of the
existence of (but in no event, without the prior written consent of an Investor,
shall the Company disclose to such Investor any of the facts or circumstances
regarding) material non-public information giving rise to an Allowed Delay, (b)
advise the Investors in writing to cease all sales under the Registration
Statement until the end of the Allowed Delay and (c) use commercially reasonable
efforts to terminate an Allowed Delay as promptly as practicable.

               (c) LIQUIDATED DAMAGES. Notwithstanding the provisions of this
Section 2, in no event shall the Company be liable for liquidated damages (i) in
the aggregate in excess of 1.5% of the aggregate amount invested by any Investor
for each 30-day period or pro rata for any portion thereof and (ii) in excess of
an aggregate of 24% of the aggregate purchase price paid by the Investors
pursuant to the Purchase Agreement.

         3. COMPANY OBLIGATIONS. The Company will use commercially reasonable
efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously
as possible:

               (a) use commercially reasonable efforts to cause such
Registration Statement to become effective and to remain continuously effective
for a period that will

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terminate upon the earlier of (i) the date on which all Registrable Securities
covered by such Registration Statement as amended from time to time, have been
sold, and (ii) the date on which all Registrable Securities covered by such
Registration Statement may be sold pursuant to Rule 144(k) (the "Effectiveness
Period") and advise the Investors in writing when the Effectiveness Period has
expired;

               (b) prepare and file with the SEC such amendments and
post-effective amendments to the Registration Statement and the Prospectus as
may be necessary to keep the Registration Statement effective for the
Effectiveness Period and to comply with the provisions of the 1933 Act and the
1934 Act with respect to the distribution of all of the Registrable Securities
covered thereby;

               (c) provide copies to and permit Lowenstein Sandler PC to review
each Registration Statement and all amendments and supplements thereto no fewer
than seven (7) days prior to their filing with the SEC and not file any document
to which such counsel reasonably objects;

               (d) furnish to the Investors and Lowenstein Sandler PC (i)
promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after
the filing date, receipt date or sending date, as the case may be) one (1) copy
of any Registration Statement and any amendment thereto, each preliminary
prospectus and Prospectus and each amendment or supplement thereto, and each
letter written by or on behalf of the Company to the SEC or the staff of the
SEC, and each item of correspondence from the SEC or the staff of the SEC, in
each case relating to such Registration Statement (other than any portion of any
thereof which contains information for which the Company has sought confidential
treatment), and (ii) such number of copies of a Prospectus, including a
preliminary prospectus, and all amendments and supplements thereto and such
other documents as each Investor may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such Investor that are
covered by the related Registration Statement;

               (e) use commercially reasonable efforts to (i) prevent the
issuance of any stop order or other suspension of effectiveness and, (ii) if
such order is issued, obtain the withdrawal of any such order at the earliest
possible moment;

               (f) prior to any public offering of Registrable Securities, use
commercially reasonable efforts to register or qualify or cooperate with the
Investors and their counsel in connection with the registration or qualification
of such Registrable Securities for offer and sale under the securities or blue
sky laws of such jurisdictions requested by the Investors and do any and all
other commercially reasonable acts or things necessary or advisable to enable
the distribution in such jurisdictions of the Registrable Securities covered by
the Registration Statement; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (i) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(f), (ii) subject itself to general taxation in any
jurisdiction where it would not otherwise be so subject but for this Section
3(f), or (iii) file a general consent to service of process in any such
jurisdiction;

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               (g) use commercially reasonable efforts to cause all Registrable
Securities covered by a Registration Statement to be listed on each securities
exchange, interdealer quotation system or other market on which similar
securities issued by the Company are then listed;

               (h) immediately notify the Investors upon discovery that, or upon
the happening of any event as a result of which, the Prospectus includes an
untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, and promptly prepare, file with the
SEC and furnish to such holder a supplement to or an amendment of such
Prospectus as may be necessary so that such Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing; and

               (i) otherwise use commercially reasonable efforts to comply with
all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act, including, without limitation, Rule 172 under the 1933 Act, file any final
Prospectus, including any supplement or amendment thereof, with the SEC pursuant
to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the
conditions specified in Rule 172 and, as a result thereof, the Investors are
required to deliver a Prospectus in connection with any disposition of
Registrable Securities and take such other actions as may be reasonably
necessary to facilitate the registration of the Registrable Securities
hereunder; and make available to its security holders, as soon as reasonably
practicable, but not later than the Availability Date (as defined below), an
earnings statement covering a period of at least twelve (12) months, beginning
after the effective date of each Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the 1933 Act,
including Rule 158 promulgated thereunder (for the purpose of this subsection
3(i), "Availability Date" means the 45th day following the end of the fourth
fiscal quarter that includes the effective date of such Registration Statement,
except that, if such fourth fiscal quarter is the last quarter of the Company's
fiscal year, "Availability Date" means the 90th day after the end of such fourth
fiscal quarter).

               (j) With a view to making available to the Investors the benefits
of Rule 144 (or its successor rule) and any other rule or regulation of the SEC
that may at any time permit the Investors to sell shares of Common Stock to the
public without registration, the Company covenants and agrees to: (i) make and
keep public information available, as those terms are understood and defined in
Rule 144, until the earlier of (A) six months after such date as all of the
Registrable Securities may be resold pursuant to Rule 144(k) or any other rule
of similar effect or (B) such date as all of the Registrable Securities shall
have been resold; (ii) file with the SEC in a timely manner all reports and
other documents required of the Company under the 1934 Act; and (iii) furnish to
each Investor upon request, as long as such Investor owns any Registrable
Securities, (A) a written statement by the Company that it has complied with the
reporting requirements of the 1934 Act, (B) a copy of the Company's most recent
Annual Report on Form 10-KSB or Quarterly Report on Form 10-QSB, and (C) such
other information as may be reasonably requested in order to avail such Investor
of any rule or regulation of the SEC that permits the selling of any such
Registrable Securities without registration.

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         4. DUE DILIGENCE REVIEW; INFORMATION. The Company shall make
available, during normal business hours, for inspection and review by the
Investors, advisors to and representatives of the Investors (who may or may not
be affiliated with the Investors and who are reasonably acceptable to the
Company), all financial and other records, all SEC Filings (as defined in the
Purchase Agreement) and other filings with the SEC, and all other corporate
documents and properties of the Company as may be reasonably necessary for the
purpose of such review, and cause the Company's officers, directors and
employees, within a reasonable time period, to supply all such information
reasonably requested by the Investors or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without
limitation, in response to all questions and other inquiries reasonably made or
submitted by any of them), prior to and from time to time after the filing and
effectiveness of the Registration Statement for the sole purpose of enabling the
Investors and such representatives, advisors and underwriters and their
respective accountants and attorneys to conduct initial and ongoing due
diligence with respect to the Company and the accuracy of such Registration
Statement.

               The Company shall not disclose material nonpublic information to
the Investors, or to advisors to or representatives of the Investors, unless
prior to disclosure of such information the Company identifies such information
as being material nonpublic information and provides the Investors, such
advisors and representatives with the opportunity to accept or refuse to accept
such material nonpublic information for review and any Investor wishing to
obtain such information enters into an appropriate confidentiality agreement
with the Company with respect thereto.

         5. OBLIGATIONS OF THE INVESTORS.

               (a) Each Investor shall furnish in writing to the Company such
information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it, as
shall be reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company may reasonably request. At least five (5) Business Days prior to
the first anticipated filing date of any Registration Statement, the Company
shall notify each Investor of the information the Company requires from such
Investor if such Investor elects to have any of the Registrable Securities
included in the Registration Statement. An Investor shall provide such
information to the Company at least two (2) Business Days prior to the first
anticipated filing date of such Registration Statement if such Investor elects
to have any of the Registrable Securities included in the Registration
Statement.

               (b) Each Investor, by its acceptance of the Registrable
Securities agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of a Registration
Statement hereunder, unless such Investor has notified the Company in writing of
its election to exclude all of its Registrable Securities from such Registration
Statement.

               (c) Each Investor agrees that, upon receipt of any notice from
the Company of either (i) the commencement of an Allowed Delay pursuant to
Section 2(c)(ii) or (ii) the happening of an event pursuant to Section 3(h)
hereof, such Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering

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such Registrable Securities, until the Investor is advised by the Company that
such dispositions may again be made.

         6. INDEMNIFICATION.

               (a) INDEMNIFICATION BY THE COMPANY. The Company will indemnify
and hold harmless each Investor and its officers, directors, members, employees
and agents, successors and assigns, and each other person, if any, who controls
such Investor within the meaning of the 1933 Act, against any losses, claims,
damages or liabilities, joint or several, to which they may become subject under
the 1933 Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of any material fact contained
in any Registration Statement, any preliminary Prospectus or final Prospectus,
or any amendment or supplement thereof; (ii) any blue sky application or other
document executed by the Company specifically for that purpose or based upon
written information furnished by the Company filed in any state or other
jurisdiction in order to qualify any or all of the Registrable Securities under
the securities laws thereof (any such application, document or information
herein called a "Blue Sky Application"); (iii) the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; (iv) any violation by the Company or
its agents of any rule or regulation promulgated under the 1933 Act applicable
to the Company or its agents and relating to action or inaction required of the
Company in connection with such registration; or (v) any failure to register or
qualify the Registrable Securities included in any such Registration in any
state where the Company or its agents has affirmatively undertaken or agreed in
writing that the Company will undertake such registration or qualification on an
Investor's behalf and will reimburse such Investor, and each such officer,
director or member and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case if and to the extent that
any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by such Investor or any such
controlling person in writing specifically for use in such Registration
Statement or Prospectus.

               (b) INDEMNIFICATION BY THE INVESTORS. Each Investor agrees,
severally but not jointly, to indemnify and hold harmless, to the fullest extent
permitted by law, the Company, its directors, officers, employees, stockholders
and each person who controls the Company (within the meaning of the 1933 Act)
against any losses, claims, damages, liabilities and expense (including
reasonable attorney fees) resulting from any untrue statement of a material fact
or any omission of a material fact required to be stated in the Registration
Statement or Prospectus or preliminary Prospectus or amendment or supplement
thereto or necessary to make the statements therein not misleading, to the
extent, but only to the extent that such untrue statement or omission is
contained in any information furnished in writing by such Investor to the
Company specifically for inclusion in such Registration Statement or Prospectus
or amendment or supplement thereto. In no event shall the liability of an
Investor be greater in amount than the dollar amount of the proceeds (net of all
expense paid by such Investor in connection with any claim relating to this
Section 6 and the amount of any damages such Investor has otherwise been
required to pay by reason of such untrue statement or omission)

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received by such Investor upon the sale of the Registrable Securities included
in the Registration Statement giving rise to such indemnification obligation.

               (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. Any person entitled
to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii)
permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided that any person
entitled to indemnification hereunder shall have the right to employ separate
counsel and to participate in the defense of such claim, but the fees and
expenses of such counsel shall be at the expense of such person unless (a) the
indemnifying party has agreed to pay such fees or expenses, or (b) the
indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its counsel, a
conflict of interest exists between such person and the indemnifying party with
respect to such claims (in which case, if the person notifies the indemnifying
party in writing that such person elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such claim on behalf of such person); and
provided, further, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such
claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or
expenses of more than one separate firm of attorneys at any time for all such
indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

               (d) CONTRIBUTION. If for any reason the indemnification provided
for in the preceding paragraphs (a) and (b) is unavailable to an indemnified
party or insufficient to hold it harmless, other than as expressly specified
therein, then the indemnifying party shall contribute to the amount paid or
payable by the indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnified party and the indemnifying party, as well as any other relevant
equitable considerations. No person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to
contribution from any person not guilty of such fraudulent misrepresentation. In
no event shall the contribution obligation of a holder of Registrable Securities
be greater in amount than the dollar amount of the proceeds (net of all expenses
paid by such holder in connection with any claim relating to this Section 6 and
the amount of any damages such holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise
to such contribution obligation.

         7. MISCELLANEOUS.

               (a) AMENDMENTS AND WAIVERS. This Agreement may be amended only by
a writing signed by the Company and the Required Investors. The Company may take
any

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action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company shall have obtained the written consent to
such amendment, action or omission to act, of the Required Investors.

               (b) NOTICES. All notices and other communications provided for or
permitted hereunder shall be made as set forth in Section 9.4 of the Purchase
Agreement.

               (c) ASSIGNMENTS AND TRANSFERS BY INVESTORS. The provisions of
this Agreement shall be binding upon and inure to the benefit of the Investors
and their respective successors and assigns. An Investor may transfer or assign,
in whole or from time to time in part, to one or more persons its rights
hereunder in connection with the transfer of Registrable Securities by such
Investor to such person, provided that such Investor complies with all laws
applicable thereto and provides written notice of assignment to the Company
promptly after such assignment is effected.

               (d) ASSIGNMENTS AND TRANSFERS BY THE COMPANY. This Agreement may
not be assigned by the Company (whether by operation of law or otherwise)
without the prior written consent of the Required Investors, provided, however,
that the Company may assign its rights and delegate its duties hereunder to any
surviving or successor corporation in connection with a merger or consolidation
of the Company with another corporation, or a sale, transfer or other
disposition of all or substantially all of the Company's assets to another
corporation, without the prior written consent of the Required Investors, after
notice duly given by the Company to each Investor.

               (e) BENEFITS OF THE AGREEMENT. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

               (f) COUNTERPARTS; FAXES. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may also
be executed via facsimile, which shall be deemed an original.

               (g) TITLES AND SUBTITLES. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

               (h) SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be interpreted as if it
were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent

                                      -10-

<PAGE>

permitted by applicable law, the parties hereby waive any provision of law which
renders any provisions hereof prohibited or unenforceable in any respect.

               (i) FURTHER ASSURANCES. The parties shall execute and deliver all
such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to
evidence the fulfillment of the agreements herein contained.

               (j) ENTIRE AGREEMENT. This Agreement is intended by the parties
as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

               (k) GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.
This Agreement shall be governed by, and construed in accordance with, the
internal laws of the State of New York without regard to the choice of law
principles thereof. Each of the parties hereto irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York located in New
York County and the United States District Court for the Southern District of
New York for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Agreement and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                                       11
<PAGE>

               IN WITNESS WHEREOF, the parties have executed this Agreement or
caused their duly authorized officers to execute this Agreement as of the date
first above written.

The Company:                                UTIX GROUP, INC.

                                            By__________________________________
                                            Name:
                                            Title:

The Investors:                              ____________________________________

                                            By:_________________________________
                                            Name:
                                            Title:

                                            By:_________________________________
                                            Name:
                                            Title:

                                            By:_________________________________
                                            Name: Austin W. Marxe
                                            Title: General Partner

                                      -12-

<PAGE>

                                                                      Exhibit A

                              PLAN OF DISTRIBUTION

         The selling stockholders, which as used herein includes donees,
pledgees, transferees or other successors-in-interest selling shares of common
stock or interests in shares of common stock received after the date of this
prospectus from a selling stockholder as a gift, pledge, partnership
distribution or other transfer, may, from time to time, sell, transfer or
otherwise dispose of any or all of their shares of common stock or interests in
shares of common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These dispositions may
be at fixed prices, at prevailing market prices at the time of sale, at prices
related to the prevailing market price, at varying prices determined at the time
of sale, or at negotiated prices.

         The selling stockholders may use any one or more of the following
methods when disposing of shares or interests therein:

         - ordinary brokerage transactions and transactions in which the
broker-dealer solicits purchasers;

         - block trades in which the broker-dealer will attempt to sell the
shares as agent, but may position and resell a portion of the block as principal
to facilitate the transaction;

         - purchases by a broker-dealer as principal and resale by the
broker-dealer for its account;

         - an exchange distribution in accordance with the rules of the
applicable exchange;

         - privately negotiated transactions;

         - short sales effected after the date the registration statement of
which this Prospectus is a part is declared effective by the SEC;

         - through the writing or settlement of options or other hedging
transactions, whether through an options exchange or otherwise;

         - broker-dealers may agree with the selling stockholders to sell a
specified number of such shares at a stipulated price per share; and

         - a combination of any such methods of sale.

         The selling stockholders may, from time to time, pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock, from
time to time, under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act
amending the list of selling stockholders to include the pledgee, transferee or
other successors in interest as

                                      -13-

<PAGE>

selling stockholders under this prospectus. The selling stockholders also may
transfer the shares of common stock in other circumstances, in which case the
transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.

         In connection with the sale of our common stock or interests therein,
the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the
common stock in the course of hedging the positions they assume. The selling
stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities. The selling
stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

         The aggregate proceeds to the selling stockholders from the sale of the
common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any. Each of the selling stockholders reserves the
right to accept and, together with their agents from time to time, to reject, in
whole or in part, any proposed purchase of common stock to be made directly or
through agents. We will not receive any of the proceeds from this offering. Upon
any exercise of the warrants by payment of cash, however, we will receive the
exercise price of the warrants.

         The selling stockholders also may resell all or a portion of the shares
in open market transactions in reliance upon Rule 144 under the Securities Act
of 1933, provided that they meet the criteria and conform to the requirements of
that rule.

         The selling stockholders and any underwriters, broker-dealers or agents
that participate in the sale of the common stock or interests therein may be
"underwriters" within the meaning of Section 2(11) of the Securities Act. Any
discounts, commissions, concessions or profit they earn on any resale of the
shares may be underwriting discounts and commissions under the Securities Act.
Selling stockholders who are "underwriters" within the meaning of Section 2(11)
of the Securities Act will be subject to the prospectus delivery requirements of
the Securities Act.

         To the extent required, the shares of our common stock to be sold, the
names of the selling stockholders, the respective purchase prices and public
offering prices, the names of any agents, dealer or underwriter, any applicable
commissions or discounts with respect to a particular offer will be set forth in
an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

         In order to comply with the securities laws of some states, if
applicable, the common stock may be sold in these jurisdictions only through
registered or licensed brokers or dealers. In addition, in some states the
common stock may not be sold unless it has been registered or qualified for sale
or an exemption from registration or qualification requirements is available and
is complied with.

                                      -14-

<PAGE>

         We have advised the selling stockholders that the anti-manipulation
rules of Regulation M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling stockholders and their affiliates.
In addition, to the extent applicable we will make copies of this prospectus (as
it may be supplemented or amended from time to time) available to the selling
stockholders for the purpose of satisfying the prospectus delivery requirements
of the Securities Act. The selling stockholders may indemnify any broker-dealer
that participates in transactions involving the sale of the shares against
certain liabilities, including liabilities arising under the Securities Act.

         We have agreed to indemnify the selling stockholders against
liabilities, including liabilities under the Securities Act and state securities
laws, relating to the registration of the shares offered by this prospectus.

         We have agreed with the selling stockholders to keep the registration
statement of which this prospectus constitutes a part effective until the
earlier of (1) such time as all of the shares covered by this prospectus have
been disposed of pursuant to and in accordance with the registration statement
or (2) the date on which the shares may be sold pursuant to Rule 144(k) of the
Securities Act.

                                      -15-Executive Employment Agreement

     

    EXHIBIT
      10.35

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    

     

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      made November 21, 2006 between CITIZENS FINANCIAL CORPORATION, a Kentucky
      corporation (“Employer”),
      and
      JOHN D. CORNETT, an individual currently residing in Houston, Texas
      (“Employee”).

     

    RECITALS

     

    Employer
      desires to employ Employee for the Employer Group, and Employee wishes to accept
      such employment, upon the terms and conditions set forth in this
      Agreement.

     

    AGREEMENT

     

    The
      parties, intending to be legally bound, agree to the following terms and
      conditions of Employee’s employment by Employer. Anything to the contrary
      notwithstanding, however, this Agreement and any and all obligations hereunder
      are subject to the condition precedent that all of Employee’s obligations under
      the Cornett Employment Agreement dated April 1, 2006 between Employee and
      American Capitol Insurance Company and any related agreements (excluding
      continuing confidentiality obligations) shall have been fully and finally
      terminated prior to the Effective Date. Employee undertakes to deliver to
      Employer evidence of such termination in form and substance satisfactory to
      Employer as soon as it becomes available. 

     

    1.     DEFINITIONS
      

     

    For
      the
      purposes of this Agreement, the following terms have the meanings specified
      or
      referred to in this Section 1.

     

    “Agreement”
--
      this
      Executive Employment Agreement, as amended from time to time.

     

    “Benefits”
--
      as
      defined in Section 3.3.

     

    “Boards
      of Directors”
--
      the
      boards of directors of the constituents of the Employer Group.

     

    “Bonuses”
--
      as
      defined in Section 3.2.

     

    “Change
      in Control”
means
      the occurrence of any of the following events:

     

    (a)     any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3
      of such Act), directly or indirectly, of securities of Employer representing
      more than fifty percent (50%) of the total voting power represented by
      Employer’s then outstanding voting securities, excluding
      (A)
      those persons and entities included in the Schedule 13D filed by Darrell R.
      Wells with the Securities and Exchange Commission with respect to Employer
      securities, as heretofore and hereafter amended from time to time, and Margaret
      Ann Wells, his wife, and all current or 

     

    
      
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    future
      heirs, successors and affiliates to and of such persons and all trusts or other
      entities established or maintained, or to be established or maintained, for
      the
      benefit of such persons and their heirs, successors and affiliates
      (collectively, the “Wells
      Family Interests”),
      (B)
      any employee benefit plan or related trust sponsored or maintained by Employer,
      and (C) any corporation or other entity owned, directly or indirectly, by all
      or
      substantially all of the shareholders of Employer immediately prior to the
      transaction in substantially the same proportions as their ownership of stock
      of
      Employer; provided, that, at the time of the acquisition of such beneficial
      ownership interest, such person’s beneficial ownership interest in Employer
      exceeds that of the Wells Family Interests; 

     

    (b)     the
      consummation of the sale or disposition by Employer of all or substantially
      all
      of Employer’s assets, other
      than
      a sale
      or disposition that would result in the voting securities of Employer
      outstanding immediately prior thereto continuing to represent (by being
      converted into voting securities of the acquiring corporation or entity or
      its
      parent) more than fifty percent (50%) of the total voting power represented
      by
      the voting securities of the acquiring corporation or entity or its parent
      outstanding immediately after such sale or disposition; or

     

    (c)     the
      consummation of a merger or consolidation of Employer with any other corporation
      or entity, other
      than
      a merger
      or consolidation that would result in the voting securities of Employer
      outstanding immediately prior thereto continuing to represent (either by
      remaining outstanding or by being converted into voting securities of the
      surviving corporation or entity or its parent) more than fifty percent (50%)
      of
      the total voting power represented by the voting securities of Employer or
      such
      surviving corporation or entity or its parent outstanding immediately after
      such
      merger or consolidation. 

     

    “Confidential
      Information”
--
      any
      and all:

     

    (a)     trade
      secrets concerning the business and affairs of the Employer Group, including
      without limitation products, past, current, and planned research and
      development, current and planned distribution methods and processes, customer
      lists, agent lists, current and anticipated customer requirements, market
      studies, business plans, computer software and programs (including object code
      and source code), and any other information, however documented, that is a
      trade
      secret within the meaning of the Uniform Trade Secrets Act, KRS
      365.880-.900;

     

    (b)     information
      concerning the business and affairs of the Employer Group including without
      limitation historical internal financial statements, financial projections
      and
      budgets, historical and projected sales data, the names and backgrounds of
      key
      personnel, and personnel training and techniques and materials, however
      documented; and

     

    (c)     notes,
      analyses, compilations, studies, summaries, and other material prepared by
      or
      for the Employer Group containing or based, in whole or in part, on any
      information included in the foregoing.

     

    “Contract
      Year”
--
      a
      period of 12 months from the Effective Date or any anniversary
      thereof.

     

    
      
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    “disability”
--
      as
      defined in Section 6.2.

     

    “Effective
      Date”
--
      January 1, 2007.

     

    “Employee”
--
      as
      defined in the heading of this Agreement.

     

    “Employee
      Invention”
--
      any
      idea, invention, technique, modification, process, or improvement (whether
      patentable or not) and any work of authorship (whether or not copyright
      protection may be obtained for it) created, conceived or developed by Employee,
      either solely or in conjunction with others, during the Employment Period,
      or a
      period that includes a portion of the Employment Period, that relates in any
      way
      to, or is useful in any manner in, the business then being conducted or proposed
      to be conducted by the Employer Group, and any such item created by Employee,
      either solely or in conjunction with others, following termination of Employee’s
      employment with Employer, that is based upon or uses Confidential Information.
      Notwithstanding the foregoing, Employee Invention does not include the business
      process described in a certain provisional patent application filed with the
      United States Patent and Trademark Office (the “Patent
      Application”),
      a
      copy of which Employee has furnished to Employer on a confidential basis, and
      any idea, invention, technique, modification, process, or improvement and any
      work or authorship that developed by or for the business Employee and others
      may
      establish to prosecute the Patent Application and commercialize the business
      process it describes. 

     

    “Employer”
--
      as
      defined in the heading of this Agreement.

     

    “Employer
      Group”
--
      Employer and one or more of the Principal Subsidiaries.

     

    “Employment
      Period”
--
      the
      actual term of Employee’s employment by Employer, beginning on the Effective
      Date and terminating as provided herein.

     

    “for
      cause”
--
      as
      defined in Section 6.3.

     

    “for
      convenience of Employer”
--
      as
      defined in Section 6.5

     

    “for
      good reason”
--
      as
      defined in Section 6.4.

     

    “Nominal
      Expiration Date”
--
      as
      defined in Section 2.2.

     

    “person”
--
      any
      individual, corporation (including any non-profit corporation), general or
      limited partnership, limited liability company, joint venture, estate, trust,
      association, organization or governmental body.

     

    “Post-Employment
      Limitation Period”
--
      as
      defined in Section 9.3.

     

    “President
      of Employer”
--
      Darrell R. Wells and his successors in office as president of
      Employer.

     

    “Principal
      Subsidiaries”
--
      the
      subsidiaries through which Employer may conduct insurance or related businesses
      from time to time, presently consisting of (but without 

     

    
      
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    limitation)
      Citizens Security Life Insurance Company, United Liberty Life Insurance Company,
      Citizens Insurance Company and Citizens Security Benefit Services, Inc.

     

    “Proprietary
      Items”
--
      as
      defined in Section 8.2.

     

    “Salary”
--
      as
      defined in Section 3.1.

     

    2.     EMPLOYMENT
      TERMS AND DUTIES

     

    2.1     Employment.
      Employer hereby employs Employee, and Employee hereby accepts employment by
      Employer, upon the terms and conditions set forth in this
      Agreement.

     

    2.2     Term.
      The
      term of Employee’s employment under this Agreement will begin on the Effective
      Date and shall terminate on December 31, 2008 (the “Nominal
      Expiration Date”).
      The
      Nominal Expiration Date shall be automatically extended for successive periods
      of one year each ending on the next anniversary of the Effective Date, unless
      either party shall give at least sixty (60) days notice of termination of this
      Agreement as of the original or last extended Nominal Expiration Date. This
      Agreement is subject to earlier termination as provided in Section 6.

     

    2.3     Duties.
      

     

    (a)    Employee
      will have such offices and duties for the Employer Group as are assigned or
      delegated to Employee by the President of Employer or the Boards of Directors
      of
      the Employer Group, and will initially serve as executive vice president and
      chief operating officer of Employer and as president and chief operating officer
      of the Principal Subsidiaries. 

     

    (b)     Employee
      will devote substantially his entire business time, attention, skill and energy
      exclusively to the business of the Employer Group in and from its executive
      offices in Louisville, will use his best efforts to promote the success of
      the
      Employer Group’s business, and will cooperate fully with the President of
      Employer and the Boards of Directors of the Employer Group in the advancement
      of
      the best interests of the Employer Group. 

     

    (c)     Employee
      may devote insubstantial amounts of time during Employer’s office hours, as such
      office hours are listed from time to time in Employer’s Employee Handbook
      (“Office
      Hours”)
      to the
      business Employee and others may establish to prosecute the Patent Application
      and commercialize the business process it describes. Employee may serve as
      a
      director and officer of the business but shall not engage in day-to-day
      management and operation of the business. Employee shall maintain reasonably
      detailed records of any time he devotes during Office Hours to the business
      and
      furnish such records to the President of Employer upon request. The President
      of
      Employer may present any concerns to Employee, who shall have five (5) days
      to
      provide assurances reasonably acceptable to the President of Employer regarding
      the extent of his commitments to the business in the future. Employee may also
      devote insubstantial amounts of time to activities in connection with personal
      investments and 

     

    
      
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    community
      affairs so long as they do not interfere with Employee’s duties under this
      Agreement.

     

    2.4     Relocation.
      Employee agrees to relocate his family residence and domicile from Texas to
      Kentucky not later than June 30, 2007, subject to extension for reasons beyond
      the control of Employee (such as an unfavorable Houston real estate market)
      with
      the approval of Employer, which shall not be unreasonably withheld.

     

    3.     COMPENSATION

     

    3.1     Salary.
      During
      the Employment Period, Employer will pay Employee a salary at the annual rate
      of
      $195,000.00 (the
      “Salary”),
      which
      will be payable bi-weekly less withholding according to applicable law and
      Employer’s customary payroll practices.

     

    3.2     Bonuses.
      Employer will pay the following additional sums to Employee (“Bonuses”):

     

    (a)     Employer
      will pay Employee a guaranteed bonus of $60,000, less the amount of costs paid
      or reimbursed by Employer pursuant to Section 4.2, and less withholding
      according to applicable law and Employer’s customary payroll practices, on the
      first regular payday falling next after January 1, 2008.

     

    (b)     During
      the Employment Period, Employee shall be eligible to participate in bonus plans
      established by the Board of Directors of Employer, in its discretion, for which
      senior executives are generally eligible, on the same terms and conditions
      applicable to other senior executives.

     

    3.3     Benefits.
      Employee will, during the Employment Period, be permitted to participate in
      all
      such life insurance, hospitalization, major medical and dental plans of Employer
      that may be in effect from time to time, on the same terms and conditions under
      which other senior executives of Employer are eligible under the terms of those
      plans (collectively, the “Benefits”).
      

     

    4.     FACILITIES
      AND EXPENSES

     

    4.1     Standard
      Items.
      During
      the Employment Period, Employer will furnish Employee suitable office space,
      equipment, supplies and such other facilities and personnel (including an
      assigned administrative assistant) for the performance of Employee’s duties
      under this Agreement. Employer will pay on behalf of Employee (or reimburse
      Employee for) actual and reasonable expenses incurred by Employee at the request
      of, or on behalf of, Employer in the performance of Employee’s duties pursuant
      to this Agreement, and in accordance with Employer’s employment policies, but
      specifically including the following whether or not addressed in such employment
      policies:

     

    (a)     charges
      for cellular telephone usage not exceeding $1,000 per Contract Year;

     

    
      
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    (b)     continuing
      education and license fees not exceeding $1,200 per Contract Year;
      and

     

    (c)     use
      of an
      automobile supplied by Employer or an automobile expense allowance of $500
      per
      calendar month.

     

    Employee
      must file expense reports with respect to such expenses in accordance with
      or
      corresponding to Employer’s policies regarding expense
      reimbursements.

     

    4.2     Relocation
      Expenses.
      During
      the first Contract Year, Employer will also pay on behalf of Employee (or
      reimburse Employee for) actual expenses incurred by Employee in relocating
      his
      family residence and domicile from Houston to Louisville and interim living
      expense in Louisville, including trips to and from Houston and Louisville,
      up to
      a maximum of $60,000.

     

    5.     VACATIONS
      AND HOLIDAYS

     

    Employee
      will be entitled to paid vacation, holiday, personal, and sick days in
      accordance with the policies of Employer in effect for its senior executives
      from time to time, except that Employee’s paid vacation shall be not less than
      four (4) weeks per Contract Year. Vacation may be taken by Employee at such
      time
      or times as reasonably chosen by the Employee, on notice to the President of
      Employer. 

     

    6.     TERMINATION

     

    6.1     Events
      of Termination.
      Subject
      to the other provisions of this Section 6, the Employment Period, Basic
      Compensation, Bonuses, Benefits, and any and all other rights of Employee under
      this Agreement or otherwise as an employee of Employer will terminate:

     

    (a)     on
      the
      Nominal Expiration Date;

     

    (b)     upon
      the
      death of Employee;

     

    (c)     upon
      the
      disability of Employee (as defined in Section 6.2) and its continuation for
      sixty (60) consecutive days or ninety (90) days during any twelve (12) month
      period, immediately upon notice from either party to the other;

     

    (d)     for
      cause
      (as defined in Section 6.3), immediately upon notice from Employer to Employee,
      or at such later time as such notice may specify or at such earlier time as
      Employee may then determine;

     

    (e)     for
      good
      reason (as defined in Section 6.4), immediately upon notice from Employee to
      Employer;

     

    (f)     upon
      the
      resignation of Employee other than for good reason, upon not less than two
      (2)
      weeks notice from Employee to Employer or at such earlier time as Employer
      may
      then determine; or

     

    
      
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    (g)     for
      the
      convenience of Employer (as defined in Section 6.5), immediately upon notice
      from Employer to Employee, or at such later time as such notice may specify
      or
      at such earlier time as Employee may then determine.

     

    6.2     Definition
      of Disability.
      For
      purposes of Section 6.1, Employee will be deemed to have a “disability”
if,
      by
      reason of a change in his physical or mental condition, Employee is unable
      to or
      does not perform Employee’s duties under this Agreement. Employer shall notify
      Employee if Employer at any time claims that Employee has a disability. If
      Employee contests Employer’s claim, the questions of the existence of the
      claimed disability and the approximate date of its onset submitted to a medical
      doctor selected by written agreement of Employer and Employee. If Employer
      and
      Employee cannot agree on the selection of a medical doctor, each of them will
      select a medical doctor and the two medical doctors will select a third medical
      doctor who will determine whether Employee has a disability. The professional
      opinion of the medical doctor selected under this Section 6.2 will be binding
      on
      both parties as to the questions submitted. Employee must submit to a reasonable
      number of examinations by the medical doctor selected under this Section 6.2,
      and Employee hereby authorizes the disclosure and release to Employer of such
      determination and all supporting medical records. If Employee is not legally
      competent, Employee’s legal guardian or duly authorized attorney-in-fact will
      act in Employee’s stead, under this Section 6.2, for the purposes of submitting
      Employee to the examinations, and providing the authorization of disclosure,
      required under this Section 6.2. 

     

    6.3     Definition
      of “For Cause.”
For
      purposes of Section 6.1, the phrase “for
      cause”
means:
      (a) Employee’s material breach of this Agreement, which breach continues for a
      period of ten (10) days after Employer has given Employee written notice
      thereof; (b) Employee’s failure to adhere to any written Employer policy
      (including without limitation, its Code of Business Ethics and Conduct and
      Insider Trading Policy) if Employee has been given a reasonable opportunity
      to
      comply with such policy or cure his failure to comply (which reasonable
      opportunity must be granted during the ten (10) day period preceding termination
      of this Agreement); (c) the failure for more than ten (10) days of Employer
      and
      Employee to agree on acceptable specific limitations on the time Employee may
      devote to the business described in Section 2.3(c), (d) the appropriation (or
      attempted appropriation) of a material business opportunity of the Employer
      Group, including attempting to secure or securing any personal profit in
      connection with any transaction entered into on behalf of the Employer Group,
      except that this Section 6.3(d) shall not prohibit Employee’s purchase of equity
      securities of Employer subject to its Insider Trading Policy and other generally
      applicable policies; (e) the misappropriation (or attempted misappropriation)
      of
      any of the Employer Group’s funds or property; or (f) the conviction of, the
      indictment for (or its procedural equivalent), or the entering of a guilty
      plea
      or plea of no contest with respect to, a felony, the equivalent thereof, or
      any
      other crime with respect to which imprisonment is a possible punishment.

     

    6.4     Definition
      of “For Good Reason.”
For
      purposes of Section 6.1, the phrase “for
      good reason”
means
      (a) Employer’s breach of this Agreement, which breach continues for a period of
      ten (10) days after Employee has given Employer written notice thereof, (b)
      a
      material reduction in the duties or title of Employee, (c) a relocation of
      Employer’s offices in and from which Employee is expected to work beyond fifty
      (50) miles from where such offices are located on the Effective Date of this
      Agreement, and (d) a Change of Control. 

     

    
      
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    6.5     Definition
      of “For Convenience of Employer.”
For
      purposes of Section 6.1, the phrase “for
      convenience of Employer”
means
      a
      termination by Employer for a reason other than pursuant to Section 6.1(c)
      or
      (d).

     

    6.6     Termination
      Pay.
      Effective upon the termination of this Agreement, Employer will be obligated
      to
      pay Employee (or, in the event of his death, his designated beneficiary as
      defined below) only such compensation as is provided in this Section 6.6, and
      in
      lieu of all other Salary or Bonus, which shall be in settlement and complete
      release of all claims Employee may have against the Employer Group. For purposes
      of this Section 6.6, Employee’s designated beneficiary will be Employee’s spouse
      or such other individual beneficiary or trust located at such address, as
      Employee may designate by notice to Employer from time to time. Notwithstanding
      the preceding sentence, Employer will have no duty, under any circumstances,
      to
      attempt to determine whether any beneficiary designated by Employee is alive
      or
      to ascertain the address of any such beneficiary, to determine the existence
      of
      any trust, to determine whether any person or entity purporting to act as
      Employee’s personal representative (or the trustee of a trust established by
      Employee) is duly authorized to act in that capacity, or to locate or attempt
      to
      locate any beneficiary, personal representative or trustee.

     

    (a)     Termination
      upon Nominal Expiration Date.
      If this
      Agreement is terminated because the term has reached the Nominal Expiration
      Date
      (as extended, if applicable) and has not been extended, Employer will pay
      Employee his Salary through such Nominal Expiration Date. In addition, if the
      Nominal Expiration Date is not extended because Employer gave a notice of
      termination as contemplated by Section 2.2, Employer will continue to pay
      Employee his Salary in bi-weekly installments for an additional period of three
      (3) months after the Nominal Expiration Date. The parties agree that Employer’s
      liability under this paragraph (a) is to be reduced by any unemployment
      compensation benefits Employee may receive after termination and that Employer
      may reduce its payments to the extent of any such benefits.

     

    (b)     Termination
      upon Death.
      If this
      Agreement is terminated because of Employee’s death, Employer will pay Employee
      his Salary only through the end of the pay period in which his death occurs.
      If
      such termination occurs prior to the payment of the bonus described in Section
      3.2(a), Employer will also pay such bonus at the end of the pay period in which
      such termination occurs.

     

    (c)     Termination
      upon Disability.
      If this
      Agreement is terminated by either party as a result of Employee’s disability, as
      determined under Section 6.2, Employer will pay Employee his Salary only through
      the end of the pay period in which the effective date of such termination
      occurs. If such termination occurs prior to the payment of the bonus described
      in Section 3.2(a), Employer will also pay such bonus at the end of the pay
      period in which such termination occurs.

     

    (d)     Termination
      by Employer for Cause.
      If
      Employer terminates this Agreement for cause, Employer will pay Employee his
      Salary only through the end of the pay period in which the effective date of
      such termination occurs.

     

    
      
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    (e)     Termination
      by Employee by Resignation Other than for Good Reason.
      If
      Employee terminates this Agreement by resignation other than for good reason,
      Employer will pay Employee his Salary only through the end of the pay period
      in
      which the effective date of such resignation occurs.

     

    (f)     Termination
      by Employee for Good Reason or by Employer for the Convenience of
      Employer.
      If
      Employee terminates this Agreement for good reason or Employer terminates this
      Agreement for the convenience of Employer, Employer will pay Employee his Salary
      through the end of the pay period in which the effective date of such
      termination occurs. In addition, at the option of Employee but subject to his
      obligation in Section 9.2(b) and if the effective date of such termination
      occurs prior to the Nominal Expiration Date (as extended if applicable),
      Employer will continue to pay Employee his Salary in bi-weekly installments
      for
      an additional period of one year from the end of the pay period in which the
      effective date occurs. If such termination occurs prior to the payment of the
      bonus described in Section 3.2(a), Employer will also pay such bonus at the
      end
      of the pay period in which such termination occurs. 

     

    (g)     Benefits.
      Employee’s accrual of, or participation in plans providing for, the Benefits
      will cease at the effective date of the termination of this Agreement, and
      Employee will be entitled to accrued and post-employment Benefits, including
      accrued vacation time, pursuant to such plans only as provided in such plans
      or
      applicable law (including without limitation “COBRA benefits”).

     

    7.     STOCK
      PURCHASE AGREEMENT.

     

    7.1     Purchase
      Following Termination.
      At
      Employee’s request received within thirty (30) days following the termination of
      this Agreement, other than a termination pursuant to Section 6.1(d) (Termination
      by Employer for Cause) or 6.1(e) (Termination by Employee by Resignation Other
      Than for Good Reason), and subject to the limitations hereinafter stated,
      Employer shall use its best efforts to arrange for an offer or offers to
      purchase for cash a number of shares designated by Employee of Employer’s Class
      A Stock acquired by Employee after the date of this Agreement (“Employee
      Class A Stock”),
      in
      one or more privately negotiated transactions with one or more third party
      purchasers at a price or prices not less than the average of the reported
      transaction prices per share for the Class A Stock in the preceding twenty
      (20)
      trading days on the principal trading market for the Class A Stock or, if there
      is then no organized trading market for the Class A Stock, at the value per
      share of the Class A Stock as determined by the most recent annual appraisal
      of
      the Class A Stock obtained by Employer in the ordinary course of business (which
      Employer agrees to obtain in the event there no longer is an organized trading
      market for the Class A Stock). If Employer is able to arrange such offers,
      Employee shall sell all of the number of shares that he so designated at the
      cash price or prices so offered and other usual and customary terms and
      conditions. If despite its best efforts, Employer is unable to arrange for
      such
      offer or offers within ninety (90) days after its receipt of Employee’s request,
      Employer shall, at Employee’s option, exchange the number of shares that he so
      designated for shares of a new series of Class B Stock having the
      characteristics substantially as described in Exhibit
      A
      attached
      hereto and made a part hereof and valued at $100 per share for purposes of
      the
      exchange. 

     

    
      
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    7.2     Purchase
      Following Change of Control.
      At
      Employee’s request received within thirty (30) days following a Change of
      Control either [i] during the Employment Period or [ii] after a termination
      of
      the Employment Period other than pursuant to Section 6.1(d) (Termination by
      Employer for Cause) or 6.1(e) (Termination by Employee by Resignation Other
      Than
      for Good Reason) but not later than December 31, 2016, and in either case
      subject to the limitations hereinafter stated, Employer shall use its best
      efforts to arrange for an offer or offers to purchase for cash all but not
      less
      than all shares of Employee Class A Stock acquired by Employee after the date
      of
      this Agreement, in one or more privately negotiated transactions with one or
      more third party purchasers at a price or prices not less than the after-tax
      economic equivalent of the consideration per share (in cash, securities or
      other
      property) received by the persons who transferred control. If Employer is able
      to arrange such offers, Employee shall sell all such shares at the cash price
      or
      prices so offered and other usual and customary terms and conditions. If despite
      its best efforts, Employer is unable to arrange for such offer or offers within
      ninety (90) days after its receipt of Employee’s request, Employer shall, at
      Employee’s option, exchange all such shares for shares of a new series of Class
      B Stock having the characteristics substantially as described in Exhibit
      A
      attached
      hereto and made a part hereof and valued at $100 per share for purposes of
      the
      exchange. 

     

    7.3     Employer’s
      obligations under this Section 7 to arrange for offer or offers to purchase
      or
      to exchange shares of a new series of Class B Stock for shares of Employee
      Class
      A Stock shall be limited to a maximum of one hundred thousand (100,000) shares
      of Employee Class A Stock so purchased or exchanged. 

     

    8.     NON-DISCLOSURE
      COVENANT.

     

    8.1     Acknowledgments
      by Employee.
      Employee acknowledges that (a) during the Employment Period and as a part of
      his
      employment, Employee will be afforded access to Confidential Information; (b)
      public disclosure of such Confidential Information could have an adverse effect
      on the Employer Group and its business and/or violate or create liability under
      federal securities laws and securities exchange regulations; (c) the Employer
      Group will be at a substantial competitive disadvantage if it fails to acquire
      exclusive ownership of each Employee Invention; and (d) the provisions of this
      Section 8 are reasonable and necessary to prevent the improper use or disclosure
      of Confidential Information and to provide Employer with exclusive ownership
      of
      all Employee Inventions.

     

    8.2     Agreements
      of Employee.
      In
      consideration of the compensation and benefits to be paid or provided to
      Employee by Employer under this Agreement, Employee covenants as
      follows:

     

    (a)     Confidentiality

     

    (i)    During
      and following the Employment Period, Employee will hold in confidence the
      Confidential Information and will not disclose it to any person except with
      the
      specific prior written consent of Employer or except as otherwise expressly
      permitted by the terms of this Agreement.

     

    
      
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    (ii)     Any
      trade
      secrets of the Employer Group will be entitled to all of the protections and
      benefits under the Uniform Trade Secrets Act (KRS 365.880-.900) and any other
      applicable law. Employee hereby waives any requirement that Employer submit
      proof of the economic value of any trade secret or post a bond or other
      security.

     

    (iii)     None
      of
      the foregoing obligations and restrictions applies to any part of the
      Confidential Information that Employee demonstrates was or became generally
      available to the public other than as a result of a disclosure by
      Employee.

     

    (iv)     Employee
      will not remove from the Employer Group’s premises (except to the extent such
      removal is for purposes of the performance of Employee’s duties at home or while
      traveling, or except as otherwise specifically authorized by the President
      of
      Employer) any document, record, or computer software or code, whether embodied
      in a disk or in any other form (collectively, the “Proprietary
      Items”).
      Employee recognizes that, as between Employer and Employee, all of the
      Proprietary Items, whether or not developed by Employee, are the exclusive
      property of Employer. Upon termination of this Agreement by either party, or
      upon the request of Employer during the Employment Period, Employee will return
      to Employer all of the Proprietary Items in Employee’s possession or subject to
      Employee’s control, and Employee shall not retain any copies or other physical
      embodiment of any of the Proprietary Items.

     

    (b)     Employee
      Inventions.
      Each
      Employee Invention will belong exclusively to Employer. Employee acknowledges
      that all of Employee’s Employee Inventions are works made for hire and the
      property of Employer, including any copyrights, patents or other intellectual
      property rights pertaining thereto. If it is determined that any such works
      are
      not works made for hire, Employee hereby assigns to Employer all of Employee’s
      right, title, and interest, including all rights of copyright, patent and other
      intellectual property rights, to or in such Employee Inventions. Employee
      covenants that he will promptly:

     

    (i)     disclose
      to Employer in writing any Employee Invention;

     

    (ii)     assign
      to
      Employer or to a party designated by Employer, at Employer’s request and without
      additional compensation, all of Employee’s right, title, and interest to or in
      Employee Invention;

     

    (iii)     execute
      and deliver to Employer such applications, assignments, and other documents
      as
      Employer may request in order to apply for and obtain patents or other
      registrations with respect to any Employee Invention;

     

    (iv)     sign
      all
      other papers necessary to carry out the above obligations; and

     

    (v)     give
      testimony and render any other assistance but without expense to Employee in
      support of Employer’s rights to any Employee Invention.

     

    
      
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    8.3     Disputes
      or Controversies.
      Employee recognizes that should a dispute or controversy arising from or
      relating to this Agreement be submitted for adjudication to any court,
      arbitration panel, or other third party, the preservation of the secrecy of
      Confidential Information may be jeopardized. All pleadings, documents,
      testimony, and records relating to any such adjudication will be maintained
      in
      secrecy and will be available for inspection by Employer, Employee, and their
      respective attorneys and experts, who will agree, in advance and in writing,
      to
      receive and maintain all such information in secrecy, except as may be limited
      by them in writing.

     

    9.     NON-COMPETITION,
      NON-SOLICITATION AND NON-INTERFERENCE 

     

    9.1     Acknowledgments
      by Employee.
      Employee acknowledges that: (a) the services to be performed by him under this
      Agreement are of a special, unique, unusual, extraordinary, and intellectual
      character; and (b) the provisions of this Section 9 are reasonable and necessary
      to protect the Employer Group’s business.

     

    9.2     Covenants
      of Employee.
      In
      consideration of the acknowledgments by Employee, and in consideration of the
      compensation and benefits to be paid or provided to Employee by Employer,
      Employee covenants that he will not, directly or indirectly:

     

    (a)    during
      the Employment Period, except as permitted in Section 2.3 and except in the
      course of his employment hereunder, engage or invest in, own, manage, operate,
      finance, control, or participate in the ownership, management, operation,
      financing, or control of, be employed by, associated with, or in any manner
      connected with, lend Employee’s name or any similar name to, lend Employee’s
      credit to or render services or advice to, any business whose products or
      activities compete in whole or in part with the products or activities of the
      Employer Group anywhere; provided, however, that Employee may purchase or
      otherwise acquire up to (but not more than) five percent of any class of
      securities of any enterprise (but without otherwise participating in the
      activities of such enterprise) if such securities are listed on any securities
      exchange or have been registered under Section 12(g) of the Securities Exchange
      Act of 1934;

     

    (b)    for
      as long
      as Employee is receiving salary continuation payments pursuant to Section
      6.6(f), engage or invest in, own, manage, operate, finance, control, or
      participate in the ownership, management, operation, financing, or control
      of,
      be employed by, associated with, or in any manner connected with, lend
      Employee’s name or any similar name to, lend Employee’s credit to or render
      services or advice to, any business whose products or activities compete in
      whole or to any substantial degree with the products or third-party
      administration activities of the Employer Group in any market; provided,
      however, that Employee may purchase or otherwise acquire up to (but not more
      than) five (5) percent of any class of securities of any enterprise (but without
      otherwise participating in the activities of such enterprise) if such securities
      are listed on any securities exchange or have been registered under Section
      12(g) of the Securities Exchange Act of 1934. 

     

    (c)    whether
      for Employee’s own account or for the account of any other person, at any time
      during the Employment Period and the Post-Employment 

     

    
      
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    Limitation
      Period, solicit business of the same or similar type being carried on by the
      Employer Group, from any person known by Employee to be a customer of the
      Employer Group, whether or not Employee had personal contact with such person
      during and by reason of Employee’s employment with the Employer
      Group;

     

    (d)     whether
      for Employee’s own account or the account of any other person (i) at any
      time during the Employment Period and the Post-Employment Limitation Period
      solicit as an employee or agent any person who is or was an employee or agent
      of
      the Employer Group at any time during the Employment Period or in any manner
      induce or attempt to induce any employee or agent of the Employer Group to
      terminate his employment or agency with the Employer Group; or (ii) at any
      time
      during the Employment Period and the Post-Employment Limitation Period,
      interfere with the Employer Group’s relationship with any person, including any
      person who at any time during the Employment Period was an employee or agent
      of
      the Employer Group; or 

     

    (e)     at
      any
      time disparage the Employer Group or any of its shareholders, directors,
      officers, employees, or agents.

     

    9.3     Additional
      Provisions.

     

    (a)     For
      purposes of this Section 9, the term “Post-Employment
      Limitation Period”
means
      the one-year period beginning on the date of termination of Employee’s
      employment with Employer.

     

    (b)    If
      any
      covenant in this Section 9 is held to be unreasonable, arbitrary, or against
      public policy, such covenant will be considered to be divisible with respect
      to
      scope, time, and geographic area, and such lesser scope, time, or geographic
      area, or all of them, as a court of competent jurisdiction may determine to
      be
      reasonable, not arbitrary, and not against public policy, will be effective,
      binding, and enforceable against Employee.

     

    (c)    The
      period of time applicable to any covenant in this Section 9 will be extended
      by
      the duration of any violation by Employee of such covenant.

     

    (d)     Employee
      will, while the covenants under this Section 9 is in effect, give notice to
      Employer, within ten (10) days after accepting any other employment, of the
      identity of Employee’s employer. Employer may notify such employer that Employee
      is bound by this Agreement and, at Employer’s election, furnish such employer
      with a copy of this Agreement or relevant portions thereof.

     

    10.     GENERAL
      PROVISIONS 

     

    10.1    Injunctive
      Relief and Additional Remedy.
      Employee acknowledges that the injury that would be suffered by the Employer
      Group as a result of a breach of the provisions of this Agreement (including
      any
      provision of Sections 8 and 9) would be irreparable and that an award of
      monetary damages to the Employer Group for such a breach would be an inadequate
      remedy. Consequently, Employer will have the right, in addition to any other
      rights it may have, to obtain injunctive relief to restrain any breach or
      threatened breach or otherwise to specifically

     

     

    
      
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enforce
        any provision of this Agreement, and Employer will not be obligated to post
        bond
        or other security in seeking such relief. Without limiting Employer’s rights
        under this Section 10 or any other remedies of the Employer Group, if Employee
        breaches any of the provisions of Section 8 or 9, Employer will have the
        right
        to cease making any payments otherwise due to Employee under this
        Agreement.

    

     

    10.2    Covenants
      of Sections 8 and 9 are Essential and Independent Covenants.

     

          (a)    The
      covenants by Employee in Sections 8 and 9 are essential elements of this
      Agreement, and without Employee’s agreement to comply with such covenants,
      Employer would not have entered into this Agreement or employed or continued
      the
      employment of Employee. Employer and Employee have independently consulted
      their
      respective counsel and have been advised in all respects concerning the
      reasonableness and propriety of such covenants, with specific regard to the
      nature of the business conducted by the Employer Group.

     

    (b)     Employee’s
      covenants in Sections 8 and 9 are independent covenants and the existence of
      any
      claim by Employee against the Employer Group under this Agreement or otherwise
      will not excuse Employee’s breach of any covenant in Section 8 or
      9.

     

    (c)     This
      Agreement will continue in full force and effect after termination of Employee’s
      employment as is necessary or appropriate to enforce the covenants and
      agreements of Employee in Sections 8 and 9.

     

    10.3     Representations
      and Warranties by Employee.

     

    (a)    Employee
      represents and warrants to Employer that the execution and delivery by Employee
      of this Agreement do not, and the performance by Employee of Employee’s
      obligations hereunder will not, with or without the giving of notice or the
      passage of time, or both: (a) violate any judgment, writ, injunction, or order
      of any court, arbitrator, or governmental agency applicable to Employee; or
      (b)
      conflict with, result in the breach of any provisions of or the termination
      of,
      or constitute a default under, any agreement to which Employee is a party or
      by
      which Employee is or may be bound, including without limitation any covenant
      not
      to compete. 

     

    (b)    Employee
      further represents and warrants that the information contained in the [i] resume
      and [ii] completed Questionnaire for Prospective Officer heretofore furnished
      by
      Employee to Employer is true, correct and complete in all material respects
      as
      of the date of his signature of this Agreement.

     

    10.4     Waiver.
      The
      rights and remedies of the parties to this Agreement are cumulative and not
      alternative. Neither the failure nor any delay by either party in exercising
      any
      right, power, or privilege under this Agreement will operate as a waiver of
      such
      right, power, or privilege, and no single or partial exercise of any such right,
      power, or privilege will preclude any other or further exercise of such right,
      power, or privilege or the exercise of any other right, power, or privilege.
      To
      the maximum extent permitted by applicable law, (a) no claim or right arising
      out of this Agreement can be discharged by one party, in whole or in part,
      by a
      waiver or

     

    
      
        
        

      

      
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 renunciation
        of the claim or right unless in writing signed by the other party; (b) no
        waiver
        that may be given by a party will be applicable except in the specific instance
        for which it is given; and (c) no notice to or demand on one party will be
        deemed to be a waiver of any obligation of such party or of the right of
        the
        party giving such notice or demand to take further action without notice
        or
        demand as provided in this Agreement.

    

     

    10.5    Binding
      Effect; Delegation of Duties Prohibited.
      This
      Agreement shall inure to the benefit of, and shall be binding upon, the parties
      hereto and their respective successors, assigns, heirs, and legal
      representatives, including the other members of the Employer Group and any
      entity with which any member of the Employer Group may merge or consolidate
      or
      to which all or substantially all of its assets may be transferred. The duties
      and covenants of Employee under this Agreement, being personal, may not be
      delegated or assigned.

     

    10.6    Notices.
      All
      notices, consents, waivers, and other communications under this Agreement must
      be in writing and will be deemed to have been duly given when (a) delivered
      by hand (with written confirmation of receipt), (b) sent by facsimile (with
      written confirmation of receipt), provided that a copy is mailed by certified
      mail, return receipt requested, or (c) when received by the addressee, if
      sent by a nationally recognized overnight delivery service (receipt requested),
      in each case to the appropriate addresses and facsimile numbers set forth below
      (or to such other addresses and facsimile numbers as a party may designate
      by
      notice to the other parties):

     

     

    
      	 	If to
              Employer:  	
              Citizens Financial Corporation

              Suite 300

              The Marketplace

              12910 Shelbyville Road

              Louisville, Kentucky 40253-6149

              Attention: President

               Facsimile No.: 502/212-267

            
	 	
            	 
	 	If to Employee: 	
              John Cornett

              10922 Burgoyne Rd.

              Houston, TX 77042

              Facsimile No.: 713/784-4845

            

    

                                                                                                                        

    10.7    Entire
      Agreement; Amendments.
      This
      Agreement contains the entire agreement between the parties with respect to
      the
      subject matter hereof and supersedes all prior agreements and understandings,
      oral or written, between the parties hereto with respect to the subject matter
      hereof. This Agreement may not be amended orally, but only by an agreement
      in
      writing signed by the parties hereto.

     

    10.8     Governing
      Law.
      This
      Agreement will be governed by the laws of the State of Kentucky without regard
      to conflicts of laws principles.

     

    10.9     Jurisdiction.
      Any
      action or proceeding seeking to enforce any provision of, or based on any right
      arising out of, this Agreement may be brought against either of the parties
      in
      the courts of the State of Kentucky, County of Jefferson, or, if it has or
      can
      acquire

     

    
      
        
        

      

      
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 jurisdiction,
        in the United States District Court for the Western District of Kentucky,
        and
        each of the parties consents to the jurisdiction of such courts (and of the
        appropriate appellate courts) in any such action or proceeding and waives
        any
        objection to venue laid therein. Process in any action or proceeding referred
        to
        in the preceding sentence may be served on either party anywhere in the
        world.

    

     

    10.10     Section
      Headings, Construction.
      The
      headings of Sections in this Agreement are provided for convenience only and
      will not affect its construction or interpretation. All references to “Section”
or “paragraph” or “Sections” or “paragraphs” refer to the corresponding parts of
      this Agreement unless otherwise specified. All words used in this Agreement
      will
      be construed to be of such gender or number as the circumstances require. Unless
      otherwise expressly provided, the word “including” does not limit the preceding
      words or terms.

     

    10.11     Severability.
      If any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement will remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

     

    10.12     Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, will be deemed to constitute one and the same agreement.

     

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

     

    
      	
               

            	
               

            
	
               

            	
              CITIZENS
                FINANCIAL CORPORATION

            
	
               

            	
               

            
	
               

            	
              By:    
                /s/ Darrell R.
                Wells                     
                

                  Darrell
                R. Wells, President

            
	
               

            	
               

            
	 	 
	 	 
	
               

            	
               

            
	
               

            	
                      
                /s/ John D. Cornett         
                               

              JOHN
                D. CORNETT

            

    

    

    Exhibit
      A
      per Section 7

     

    Attachments
      per Section 10.3(b)

        Employee’s
      Resume

        Employee’s
      completed Questionnaire for Prospective Officer

     

    
      
        Page
          16
of
          19 

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A
      per Section 7 

    

    Summary
      of Principal Terms of [INSERT YEAR OF ISSUANCE] Class B Convertible Preferred
      Stock

    

    

      
        	
                Dividends:

              	
                The
                  holders of [INSERT YEAR OF ISSUANCE] Class B Convertible Preferred
                  Stock
                  (the “Class
                  B Stock”)
                  shall be entitled to receive, when and as declared by the Board
                  of
                  Directors, out of funds legally available therefor, cumulative
                  quarterly
                  dividends payable in cash on the first business day of January,
                  April,
                  July and October in each year, beginning [INSERT FIRST DAY OF NEXT
                  CALENDAR QUARTER AFTER ISSUANCE, E.G. “APRIL 1, 2010”], at the annual rate
                  of $5 per share (as adjusted for any stock dividends, combinations
                  or
                  splits with respect to such shares), and no more. Dividends payable
                  on the
                  Class B Stock for each full dividend period shall be computed by
                  dividing
                  the annual dividend rate by four (4). No dividends (other than
                  those
                  payable solely in Class A Stock) shall be paid on any shares of
                  Class A
                  Stock at any time and for so long as there shall not have been
                  declared
                  and paid (or set aside for payment) all amounts necessary to pay
                  in full
                  any arrearage in dividends on the Class B Stock.

                 

              
	
                Liquidation

              	 
	
                Preference:

              	
                The
                  holders of Class B Stock shall be entitled to be paid, upon the
                  voluntary
                  or involuntary liquidation, dissolution or winding up of the corporation,
                  and before any distribution is made to the holders of Class A Stock
                  in
                  respect of such shares, an amount equal to $100 per share (such
                  amount
                  being the agreed issuance price per share of the Class B Stock)
                  (the
                  “Class
                  B Issuance Price”),
                  as adjusted for any stock dividends, combinations or splits with
                  respect
                  to such shares, plus all declared or accrued but unpaid dividends
                  thereon.
                  The voluntary sale, lease, exchange or transfer of all or substantially
                  all of the corporation’s property or assets to, or its consolidation or
                  merger with, one or more corporations shall not be deemed to be
                  a
                  voluntary or involuntary liquidation, dissolution or winding up
                  of the
                  corporation.

              
	 	 
	
                Redemption:

              	
                At
                  its option at any time, the corporation may redeem all of the outstanding
                  shares of Class B Stock by paying in cash therefor an amount equal
                  to the
                  Class B Issuance Price, as adjusted for any stock dividends, combinations
                  or splits with respect to such shares, plus all declared but unpaid
                  dividends thereon. The corporation shall give each holder of Class
                  B Stock
                  not less than fifteen (15) days prior written notice of its election
                  to
                  redeem all of the outstanding shares of Class B Stock; provided,
                  however,
                  that each holder may thereupon elect, by giving written notice
                  to the
                  corporation prior to the expiration of such fifteen (15) day period,
                  to
                  convert all of his or its shares of Class B Stock into Class A
                  Stock as
                  described below, whereupon the redemption right of the corporation
                  as
                  described in this paragraph shall terminate.

              
	 	 
	
                Conversion:

              	
                Each
                  share of Class B Stock shall be convertible, at the option of the
                  holder
                  thereof at any time, into such number of fully paid and nonassessable
                  shares of Class A Stock equal to the number of Class A Stock from
                  which
                  the Class B

              

      

    

     

     

    
      
        Page
          17 of 19

      

      
         

        
          

        

      

      
         

      

    

     

    

      
        	 	
                Stock
                  was originally converted (as adjusted for any stock dividends,
                  combinations or splits).

              
	 	 
	
                Voting:

              	
                The
                  holders of the Class B Stock shall be entitled to vote on all matters
                  presented to the holders of Class A Stock for a vote. The holder
                  of each
                  share of Class B Stock shall have the right to one (1) vote for
                  each share
                  of Class A Stock into which such share of Class B Stock could then
                  be
                  converted. Except as provided below under the heading “Restrictive
                  Covenant,” the holders of the Class A Stock and Class B Stock shall vote
                  together as one class.

              
	 	 
	
                Restrictive

              	 
	
                Covenant:

              	
                So
                  long as any shares of Class B Stock remain outstanding, the corporation
                  shall not, without the vote or written consent of the holders of
                  at least
                  a majority of the Class B Stock, amend its Articles of Incorporation
                  or
                  Bylaws to change any of the preferences, limitations or relative
                  rights
                  provided for the benefit of the Class B
                  Stock.

              

      

    

    

    

    
      
        Page
          18
of 
          19

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Attachments
      per Section 10.3(b)

     

    Employee’s
      Resume

     

       Employee’s
      Completed Questionnaire for Prospective Officer

     

    [Intentionally
      Omitted]

    

     

     

     

     

     

     

     

     

     

    
Page
      19
      of 19

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