Document:

Prepared and filed by St Ives Financial

Exhibit 10.1

MIVA, INC. 

EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EXECUTIVE EMPLOYMENT AGREEMENT is made this 13th day of July 2006, (this “Agreement”) between MIVA, Inc. (“MIVA” or the “Company”), a Delaware corporation, and Subhransu “Brian” Mukherjee (“Executive”).

Recitals

     The Company wishes to employ Executive and Executive wishes to be employed by the Company on the terms and conditions set forth in this Agreement.

Statement of Agreement

     In consideration of the foregoing, and of Executive's employment, the parties agree as follows:

     1.      Employment. Executive’s employment with MIVA shall be upon the terms and conditions hereinafter set forth to become effective upon execution of this Agreement (the “Effective Time”).

     2.      Duties. 

          (a)      Executive’s first day of employment shall be July 13, 2006 (the “Start Date”).  Executive is being hired as the Senior Vice President – North America of the Company, reporting to the Chief Executive Officer, and he shall perform such other or additional duties and responsibilities consistent with Executive’s title(s), status, and position as the Chief Executive Officer or Board of Directors of Miva (“Board of Directors,” in each case to mean either the Board of Directors as a whole or the Compensation Committee of the Board of Directors in accordance with the delegation policies of the Board of Directors) may,
from time to time, prescribe.  Executive’s performance will be subject to review by the Chief Executive Officer with oversight by the Board of Directors.

          (b)      So long as he is employed under this Agreement, Executive agrees to devote his full working time and efforts exclusively on behalf of the Company and to competently, diligently and effectively discharge all duties of Executive hereunder.  Executive shall not be prohibited from engaging in such personal, charitable, or other nonemployment activities as do not interfere with full time employment hereunder and which do not violate the other provisions of this Agreement.  Executive further agrees to comply fully with all reasonable generally applicable policies of the Company as are from time to time in effect.

          (c)      The Executive shall be based out of the Company’s New York, New York office. If the Company decides to move its operations more than 50 miles from its current offices in New York, New York, Executive shall not be required to relocate and, to the extent the Executive cannot perform his duties hereunder as a result of such a move, his non-performance will not constitute Cause (as defined below).  

     3.      Compensation.  

          (a)      As compensation for all services rendered to the Company pursuant to this Agreement, in whatever capacity rendered, the Company will pay to Executive during the term hereof a minimum base salary at the rate of $265,000 per year (the "Basic Salary"), payable in accordance with the usual payroll practices of the Company.  The Basic Salary thereafter may be increased, but not decreased, from time to time, by the Board of Directors in connection with reviews of Executive’s performance occurring no less frequently than annually.     

          (b)      Executive will be entitled to receive incentive compensation pursuant to the terms of plans adopted by the Board of Directors or its Compensation Committee from time to time.  Executive’s target bonus shall be 25% of Basic Salary (“Target Bonus”).  The Target Bonus percentage may be increased, but not decreased, from time to time, by the Board of Directors in connection with reviews of Executive’s performance.  Executive’s Target Bonus shall be based 50% on attaining objectives established by the Chief Executive Officer and 50% on Company Performance as provided in the Company’s Bonus Program.  Under that program,
Executive’s bonus may be increased up to 50% of Basic Salary.  For fiscal 2006 Executive’s incentive compensation shall be pro-rated for the amount of time employed by the Company in the year 2006.

          (c)      On the Start Date and pursuant to the Company’s 2004 Stock Incentive Plan, the Company will grant to Executive options to acquire an aggregate of 100,000 shares of the Company’s Common Stock, of which 25% of such options will vest on each of the first four anniversaries of this Agreement.  The Board of Directors or its Compensation Committee, as applicable, shall review Executive's performance on an annual basis pursuant to the same review process employed by the Board of Directors for the Company’s other executive officers.  In connection with such annual review, the Executive may be entitled to receive additional grants of stock
options.  Such additional options will be granted, if at all, in the sole discretion of the Board of Directors or its Compensation Committee on terms and conditions they determine. If there is a change in control of the Company (as that term is used in the governing documents of any stock option agreement) any stock options granted to Executive shall fully vest on the date the change in control is consummated and shall remain exercisable during the term of such option(s) as if the Executive were still employed by the Company.  Additionally, notwithstanding any provisions to the contrary in any stock option agreements or plans, if the Executive's employment with the Company is terminated by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), any
stock options granted to Executive shall immediately fully vest and remain exercisable during the term of such options as if the Executive were still employed by the Company.

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     4.      Business Expenses.  The Company shall promptly pay directly, or reimburse Executive for, all business expenses to the extent such expenses are paid or incurred by Executive during the term of employment in accordance with Company policy in effect from time to time and to the extent such expenses are reasonable and necessary to the conduct by Executive of the Company's business and properly substantiated.  Additionally, the Company shall reimburse Executive for his reasonable and necessary expenses, which must be documented in accordance with the Company’s expense documentation policy, incurred in relocating his household to New York (“Relocation Expense
Reimbursement” or “ RER”).  To the extent any RER in excess of deductible relocation expenses is includable as income to Executive for Federal income tax purposes; the Company shall provide an additional payment to cover the applicable tax.

     5.      Benefits.  During the term of this Agreement and Executive's employment hereunder, the Company shall provide to Executive such insurance, vacation, sick leave and other like benefits as are provided to other executive officers of the Company from time to time.    Executive will use his reasonable best efforts to schedule vacation periods to minimize disruption of the Company’s business.

     6.      Term; Termination.

          (a)      The Company shall employ the Executive, and the Executive accepts such employment, for an initial term commencing on the date of this Agreement and ending on the first anniversary of the date of this Agreement.  Thereafter, this Agreement shall be extended automatically for additional twelve-month periods, unless terminated as described herein.  Executive's employment may be terminated at any time as provided in this Section 6.  For purposes of this Section 6, "Termination Date" shall mean the date on which any notice period required under this Section 6 expires or, if no notice period is specified in this Section 6, the effective date of the
termination referenced in the notice.

          (b)      The Company may terminate Executive's employment without Cause (as defined below) upon giving 30 days' advance written notice to Executive.  If Executive's employment is terminated without Cause under this Section 6(b), the Executive shall be entitled to receive (A) the earned but unpaid portion of Executive's Basic Salary and pro rata portion of Executive’s bonus, if any, through the Termination Date; (B) over a period of twelve (12) months following such Termination Date (the “Severance Period”) an amount equal to the sum of his (i) Basic Salary at the time of Termination, plus (ii) the Termination Bonus (as defined below); (C) any
other amounts or benefits owing to Executive under the then applicable employee benefit, incentive or equity plans and programs of the Company, which shall be paid or treated in accordance with Section 3 hereof  and otherwise in accordance with the terms of such plans and programs; and (D) benefits, (including, without limitation health, life, disability and pension) as if Executive were an employee during the Severance Period; provided, however, that if the Company determines that any amounts to be paid to Executive hereunder are subject to Section 409A of the Internal Revenue Code of 1986, as amended, then the Company shall in good faith adjust the form or timing of such payments as it reasonably determines to be necessary or advisable to be in compliance with Section 409A.

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          (c)      The Company may terminate Executive's employment upon a determination by the Company that "Cause" exists for Executive's termination and the Company serves written notice of such termination upon Executive.  As used in this Agreement, the term Cause shall refer only to any one or more of the following grounds:

	 	
          (i)      commission of a material and substantive act of theft, including, but not limited to, misappropriation of funds or any property of the Company;

	 	 
	 	
          (ii)      intentional engagement in activities or conduct clearly injurious to the best interests or reputation of the Company which in fact result in material and substantial injury to the Company, including, but not limited to, knowing  participation in any activity intended by Executive to result in misreporting  the financial affairs of the Company;

	 	 
	 	
          (iii)      refusal to perform his assigned duties and responsibilities (so long as the Company does not assign any duties or responsibilities which would give the Executive Good Reason to terminate his employment as described in Section 6(e)) after receipt by Executive of written detailed notice and reasonable opportunity to cure;

	 	 
	 	
          (iv)      gross insubordination by Executive, which shall consist only of a willful refusal to comply with a lawful written directive to Executive issued by the Chief Executive Officer or pursuant to a duly authorized resolution adopted by the Board of Directors (so long as the directive does not give the Executive Good Reason to terminate his employment as described in Section 6(e));

	 	 
	 	
          (v)      the clear violation of any of the material terms and conditions of this Agreement or any written agreement or agreements Executive may from time to time have with the Company (following 30 days' written notice from the Company specifying the violation and Executive's failure to cure such violation within such 30 day period); 

	 	 
	 	
          (vi)      Executive's substantial dependence, as reasonably determined by the Chief Executive Officer or the Board of Directors of the Company, on alcohol or any narcotic drug or other controlled or illegal substance which materially and substantially prevents Executive from performing his duties hereunder; 

	 	 
	 	
          (vii)      the final and unappealable conviction of Executive of a crime which is a felony or a misdemeanor involving an act of moral turpitude, or a misdemeanor committed in connection with his employment by the Company, which causes the Company a substantial detriment; or

	 	 
	 	
          (viii)      Executive’s failure to relocate to the New York, New York area within twelve months of the Start Date, provided, however, in the event the Company enters into negotiations for a transaction which would result in a change in control (as that term is used in Section 3(c) hereof) prior to Executive’s relocation this Section 6(c)(viii) may not be utilized by the Company to terminate Executive’s employment until (i) if the negotiation results in a transaction, expiration of the Window Period; or (ii) if the negotiation does not result in a transaction, the later of (a) twelve months from the Start Date or (b) three months from the termination of
negotiations.

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In the event of a termination under this Section 6(c), the Company will pay Executive the earned but unpaid portion of Executive's Basic Salary through the Termination Date.  If any determination of substantial dependence under Section 6(c)(vi) is disputed by the Executive, the parties hereto agree to abide by the decision of a panel of three physicians appointed in the manner as specified in Section 6(d) of this Agreement.  If any determination of “Cause” is made under items 6(c), (i), (ii), (iii), (iv), (v), (vii), or (viii) which Executive contests, Executive shall have the opportunity, within 30 days of such determination, to personally appear in front of the Board of Directors and present his case to the Board of Directors and
have the Board of Directors reconsider the determination of Cause.

          (d)      Executive's employment shall terminate upon the death or permanent disability of Executive.  For purposes hereof, "permanent disability," shall mean the inability of the Executive, as determined by the Board of Directors of MIVA, by reason of physical or mental illness to perform the duties required of him under this Agreement with or without reasonable accommodation for more than 120 days in any 360 day period. Upon a determination by the Board of Directors of MIVA that Executive's employment shall be terminated under this Section 6(d), the Board of Directors shall give Executive 30 days' prior written notice of the termination.  If Executive
disputes a determination of the Board of Directors under this Section 6(d), the parties agree to abide by the decision of a panel of three physicians.  MIVA will select a physician, Executive will select a physician and the physicians selected by MIVA and Executive will select a third physician.  Executive agrees to make himself available for and submit to examinations by such physicians as may be directed by the Company.  Failure to submit to any examination shall constitute a breach of a material part of this Agreement.   In the event of termination due to death or permanent disability, the Company will pay Executive, or his legal representative, the earned but unpaid portion of Executive's Basic Salary through the Termination Date and any other amounts or benefits owing to Executive
under the then applicable employee benefit, incentive or equity plans and programs of the Company, which shall be paid or treated in accordance with Section 3 hereof  and otherwise in accordance with the terms of such plans and programs; provided, however, that if the Company determines that any amounts to be paid to Executive hereunder are subject to Section 409A of the Internal Revenue Code of 1986, as amended, then the Company shall in good faith adjust the form or timing of such payments as it reasonably determines to be necessary or advisable to be in compliance with Section 409A.

          (e)      The Executive may terminate his employment for Good Reason (as defined below) upon giving 30 days advance written notice to the Company.  If Executive's employment is terminated with Good Reason under this Section 6(e), the Executive shall be entitled to receive (A) the earned but unpaid portion of Executive's Basic Salary and pro rata portion of Executive’s bonus, if any, through the Termination Date; (B) during the Severance Period an amount equal to the sum of his (i) Basic Salary at the time of the Termination Date, plus (ii) the Termination Bonus (as defined below); (C) any other amounts or benefits owing to Executive under the then applicable
employee benefit, incentive or equity plans and programs of the Company, which shall be paid or treated in accordance with Section 3 hereof  and otherwise in accordance with the terms of such plans and programs; and (D) benefits, (including, without limitation health, life, disability and pension) as if Executive were an employee during the Severance Period; provided, however, that if the Company determines that any amounts to be paid to Executive hereunder are subject to Section 409A of the Internal Revenue Code of 1986, as amended, then the Company shall in good faith adjust the form or timing of such payments as it reasonably determines to be necessary or advisable to be in compliance with Section 409A.  As used in this Agreement, the term "Good Reason" means any one or more
of the following grounds:

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(i)	
a change in Executive’s title(s), status, reporting structure, position or responsibilities without Executive's written consent, which does not represent a promotion from his existing status, position or responsibilities, despite Executive’s written notice to the Company of his objection to such change and the Company’s failure to address such notice in a reasonable fashion within 30 days of such notice;

			 	 
			
(ii)	
the assignment to Executive of any duties or responsibilities which are inconsistent with his status, position or responsibilities as set forth in Section 2 hereof, despite Executive’s written notice to the Company of his objection to such change and the Company’s failure to address such notice in a reasonable fashion within 30 days of such notice; 

			 	 
			
(iii)	
if there is a reduction in Executive's Basic Salary or Executive’s Target Bonus percentage;

			 	 
			
(iv)	
if there is a Change in Control of the Company and Executive terminates his employment during the “Window Period” (as defined below);

			 	 
			
(v)	
a breach by the Company of any material term or provision of this Agreement; or

			 	 
			
(vi)	
a relocation of the Company’s offices in New York, New York to a location more than 50 miles from the current location.

          (f)      The Executive may terminate his employment for any reason (other than Good Reason) upon giving 30 days' advance written notice to the Company.  If Executive's employment is so terminated under this Section 6(f), the Company will pay Executive the earned but unpaid portion of Executive's Basic Salary through the Termination Date and any other amounts or benefits owing to Executive under the then applicable employee benefit, incentive or equity plans and programs of the Company, which shall be paid or treated in accordance with Section 3 hereof  and otherwise in accordance with the terms of such plans and programs under and consistent with plans adopted by
the Company prior to the Termination Date.

          (g)      In the event of the Executive’s death during
the Severance Period, payments under this paragraph 6
shall continue to be made in accordance with the terms specified herein during the remainder of the Severance Period to the
beneficiary designated in writing for such purpose by the Executive or, if no such beneficiary is specifically designated,
to the Executive's estate.

          (h)      As
    used in
this Agreement, the term “Bonus” shall mean any bonus, incentive
compensation or any other  cash benefit paid or payable to the Executive under
any incentive compensation grant or plan, excluding signing bonuses
and the Company's stock incentive plan.  For purposes of this Agreement “Termination
Bonus” means (i)
 an amount equal to the Executive’s target bonus for the fiscal year in
 which the termination occurs, increased  or decreased pursuant to the objectives
 attained and actual performance versus targeted performance in the then current

plan measured as of the end of the calendar month in the month preceding the
Termination Date; or (ii)  in the event the target bonus has not been so established
 as provided in (i), an  amount equal to the Executive's Bonus for the four (4)
 fiscal quarters immediately preceding the Termination Date;
 provided, however, if there has been a Change in Control of the Company the
 Termination Bonus shall be an amount  equal to the greater of (i) the preceding
 calculation or (ii) Executive’s Bonus for the four (4) fiscal quarters
 immediately preceding the Change in Control of the Company.

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          (i)      As used in this Agreement, the term “Window Period” shall mean the period of time after a Change in Control in which Executive can terminate his employment with the Company for any reason and the termination shall be deemed a termination for Good Reason for purposes of this Agreement.  The Window Period begins 180 days after a Change in Control and lasts for thirty (30) days.

          (j)       As used in this Agreement, the term “Change in Control” as a capitalized term shall mean the occurrence of any one of the following events: 

               (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more, excluding in the calculation of Beneficial Ownership securities acquired directly from the Company, of the combined voting power of the Company's then outstanding voting securities; 

               (ii) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing fifty-one percent (51%) or more of the combined voting power of the Company’s then outstanding voting securities;

               (iii) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the Effective Time, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or recommended by a vote of the at least two-thirds (2/3) of the directors then still in office who either were directors
on the Effective Time or whose appointment, election or nomination for election was previously so approved or recommended; 

               (iv) there is a consummated merger or consolidation with any other corporation of either the Company or any direct or indirect subsidiary of the Company that represents an operating business division for which the Executive has direct operating responsibility, other than (A) a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or parent entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving or parent
equity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person, directly or indirectly, acquired twenty-five percent (25%) or more of the combined voting power of the Company's then outstanding securities (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its Affiliates); or 

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               (v) the stock holders of the Company approve a plan of complete liquidation of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets (or any transaction having a similar effect), other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

For purposes of this Section 6, the following terms shall have the following meanings: 

               (i) "Affiliate" shall mean an affiliate of the Company, as defined in Rule 12b-2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended from time to time (the "Exchange Act"); 

               (ii) "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Exchange Act; and

               (iii) "Person" shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (1) the Company, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company, (3) an underwriter temporarily holding securities pursuant to an offering of such securities or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of shares of Common Stock of the Company.

     7.      Indemnity.  

          (a)      The Company agrees that if the Executive is made a party, is threatened to be made a party or reasonably anticipates being made a party, to any formal or informal action, suit or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding"), by reason of the fact that he is or was a director, officer, manager, trustee, representative, consultant or employee of the Company or is or was serving at the request of the Company as a director, officer, member, employee, manager, trustee, representative, consultant or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans (collectively herein “Other Entity”) the Executive shall be promptly indemnified and held harmless by the Company to the fullest extent permitted by law against all cost, expense, liability and loss (including, without limitation, attorney's fees and other professional fees and charges, judgments, fines, interest, expenses of investigation, ERISA excise taxes or other liabilities or penalties and other amounts paid or to be paid in settlement if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) reasonably incurred or suffered by the Executive in connection therewith, or in connection with seeking to enforce his rights under this Section 7 and such indemnification shall continue as to the
Executive even if he has ceased to be a officer, director, member, employee, manager, trustee, representative, consultant or agent of the Company or Other Entity and shall inure to the benefit of the Executive's heirs, executors and administrators.

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          (b)      The Company shall not indemnify Executive pursuant to Section 7(a):

	 	
          (i)      except
to the extent the aggregate losses to be indemnified hereunder exceed the amount
of such losses for which Executive is reimbursed
pursuant to any directors and officers liability insurance purchased and maintained
by the Company;

	 	 
	 	
          (ii)      in respect to remuneration paid to Executive if it
shall be determined by a final judgment or other final adjudication that such
remuneration was in violation of law;

	 	 
	 	
          (iii)      on account of any suit in which judgment is rendered against Executive for an accounting of profits made from the purchase or sale by Executive of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law;

	 	 
	 	
          (iv)      on account of Executive's material breach of any provision of this Agreement; 

	 	 
	 	
          (v)      on account of Executive's act or omission being finally adjudged to involve intentional misconduct, a knowing violation of law, or grossly negligent conduct; or

	 	 
	 	
          (vi)      if a final decision by a Court having jurisdiction in the matter shall determine that such indemnification is not lawful.

          (c)      If the Executive is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the cost, expense, liability and loss reasonably incurred or suffered by the Executive in the investigation, defense, appeal or settlement of any Proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify the Executive for the portion of the cost, expense, liability and loss to which the Executive is entitled.

          (d)      The indemnification provided in this Agreement is in addition to, and not in derogation of, any rights to indemnification or advancement of expenses to which the Executive may otherwise be entitled under the Certificate of Incorporation or Bylaws of the Company, any resolutions of the Board of Directors, any indemnification contract or agreement, provided, however, that Executive is not entitled to more than a single indemnification on a given claim. 

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          (e)      The Company shall advance all expenses incurred by the Executive in connection with the investigation, defense, settlement or appeal of any Proceeding (including amounts actually paid in settlement of any such Proceeding).  The Executive hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company as authorized hereby.  Any advances made hereunder shall be paid by the Company to the Executive within twenty (20) days following delivery of a written request therefor by the Executive to the Company.

          (f)      Neither the failure of the Company (including the Board, independent legal counsel or stockholders) to have made a determination prior to the commencement of any Proceeding concerning payment of amounts claimed by the Executive under Section 7(a) that indemnification of the Executive is proper because he has met the applicable standard of conduct, nor a determination by the Company (including the Board, independent legal counsel or stockholders) that the Executive has not met such applicable standard of conduct, shall create a presumption that the Executive has not met the applicable standard of conduct.

          (g)      During the Executive's employment with the Company and thereafter, the Company agrees to continue and maintain a directors' and officers' liability insurance policy covering the Executive on terms and conditions no less favorable to him in any respect (including, but not limited to, with respect to the period of coverage, scope, exclusions, amounts and deductibles) than the coverage then being provided to any other present or former director or senior executive of the Company.

          (h)      Executive agrees that Executive will reimburse the Company for all customary and reasonable expenses paid by the Company in defending any civil or criminal action, suit or proceeding against Executive in the event and only to the extent that it shall be ultimately determined that Executive is not entitled to be indemnified by the Company for such expenses under the provisions of Delaware law (or the laws of the Company’s state of incorporation at the time), federal securities laws, the Company’s By-laws or this Agreement.  Additionally, Executive agrees that Executive will reimburse the Company for all customary and reasonable expenses paid
by the Company on behalf of Executive in connection with Executive's seeking to enforce his rights under this Section 7 in the event and only to the extent that it shall be ultimately determined that Executive is not entitled to be indemnified by the Company for the subject matter of such indemnification claim under the provisions of Delaware law (or the laws of the Company's state of incorporation at the time), federal securities laws, the Company's By-laws or this Agreement.

     8.      Certain Additional Payments by the Company.

          (a) Anything in this Agreement to the contrary  notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 8) (the "Payments") would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), or any interest or penalties are
incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"), then the Company shall pay to Executive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the product of any deductions disallowed because of the inclusion of the Gross-up Payment in Executive's adjusted gross income and the highest applicable marginal rate of federal income taxation for the calendar year in which the Gross-up Payment is to be made.
For purposes of determining the amount of the Gross-up Payment, the Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in which the Gross-up Payment is to be made, and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-up Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Notwithstanding the foregoing provisions of this Section 8(a), if it shall be determined that Executive is entitled to a Gross-Up Payment, but that the Payments would not be subject to the Excise Tax if the Payments were reduced by an amount that is less than 5% of
the portion of the Payments that would be treated as "parachute payments" under Section 280G of the Code, then the amounts payable to Executive under this Agreement shall be reduced (but not below zero) to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the "Safe Harbor Cap"), and no Gross-Up Payment shall be made to Executive. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing first the payments under Section 8, unless an alternative method of reduction is elected by Executive. For purposes of reducing the Payments to the Safe Harbor Cap, only amounts payable under this Agreement (and no other Payments) shall be reduced.

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          If the reduction of the amounts payable hereunder would not result in a reduction of the Payments to the Safe Harbor Cap, no amounts payable under this Agreement shall be reduced pursuant to this provision.

          (b) Subject to the provisions of Section 8(a), all determinations required to be made under this Section 8(b), including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment, the reduction of the Payments to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by the public accounting firm that is retained by the Company as of the date immediately prior to the Change in Control (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from the Company or the Executive that there has been a Payment, or such earlier time as is
requested by the Company (collectively, the "Determination"). In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, Executive may appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any agreement requested by the Accounting Firm in connection with the performance of the services hereunder. The Gross-up Payment under this Section 8 with respect to any Payments shall be made no later than thirty (30) days following such Payment. If the
Accounting Firm determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive's applicable federal income tax return will not result in the imposition of a negligence or similar penalty. In the event the Accounting Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it shall furnish Executive with a written opinion to such effect. The Determination by the Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-up Payments which will not have been made by the Company should have been made
("Underpayment") or Gross-up Payments are made by the Company which should not have been made ("Overpayment"), consistent with the calculations required to be made hereunder. In the event that the Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive. In the event the amount of the Gross-up Payment exceeds the amount necessary to reimburse the Executive for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such
Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive (to the extent he has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of  the Company. Executive shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax.

11

     9.      Assignment.  This Agreement is personal to Executive and Executive may not assign or delegate any of his rights or obligations hereunder.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the respective parties hereto, their heirs, executors, administrators, successors and assigns.

     10.      Waiver.  Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement or any of the documents referred to in 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 or any of the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation
of the claim or right unless in a written document 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 that 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 or the documents referred to in this Agreement.

12

     11.      Notices.  Any and all notices required or permitted to be given under this Agreement will be sufficient and deemed effective three (3) days following deposit in the United States mail if furnished in writing and sent by certified mail to Executive at:

          Mr. Subhransu “Brian” Mukherjee

          PO BOX 620732

          Woodside, CA 94062-0732

and to the Company at:  

          MIVA

          5220 Summerlin Commons Boulevard

          Suite 500

          Ft. Myers, Florida 33907

          Attention:  Chief Executive Officer

or such subsequent addresses as one party may designate in writing to the other parties.

     12.      Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of State of New York, without reference to its choice of law rules.  

     13.      Amendment.  This Agreement may be amended in any and every respect only by agreement in writing executed by both parties hereto.

     14.      Section Headings.  Section headings contained in this Agreement are for convenience only and shall not be considered in construing any provision hereof.

     15.      Entire Agreement.  With the exception of the Confidentiality, Assignment and Noncompetition Agreement, of even date herewith, and any stock option agreements or other equity compensation agreements between Executive and the Company, this Agreement terminates, cancels and supersedes all previous employment or other agreements relating to the employment of Executive with the Company or any predecessor, written or oral, and this Agreement contains the entire understanding of the parties with respect to the subject matter of this Agreement.  This Agreement was fully reviewed and negotiated on behalf of each party and shall not be construed against the interest of either party as
the drafter of this Agreement.  EXECUTIVE ACKNOWLEDGES THAT, BEFORE SIGNING THIS AGREEMENT, HE HAS READ THE ENTIRE AGREEMENT AND HAS THIS DAY RECEIVED A COPY HEREOF.  

     16.      Severability.  The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement or parts thereof.

     17.      Survival.  The last two sentences of Section 3(c), and Sections 6, 7 and 8 of this Agreement and this Section 17 shall survive any termination or expiration of this Agreement.

13

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

                                   EXECUTIVE:

                                   _______________________________

                                   Subhransu “Brian” Mukherjee

                                   MIVA, INC.

                                   By:  _____________________________

                                                     Peter A. Corrao

                                   Its:   Chief Executive Officer

14Asset Purchase Agreement

    Exhibit
      10.1

     

     

    ASSET
      PURCHASE AGREEMENT

    

    THIS
      ASSET PURCHASE AGREEMENT (the “Agreement”) is made as of November 22, 2000, by
      and between ALLERGY LIMITED, LLC., a Nevada Limited-Liability Company
      (“Seller”), and ST. PETKA, INC., a Nevada corporation (“Buyer”).

    

    NOW,
      THEREFORE, in consideration of the foregoing premises, terms, covenants, and
      conditions hereinafter set forth, and other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the parties hereby
      agree as follows:

    

    R
      E C I T A L S

    

    
      	 	
              A.

            	
              Seller
                is a pharmaceutical company engaged in the business of researching,
                developing, manufacturing and marketing a dietary supplement product
                for
                the treatment of the symptoms of allergic diseases such as allergic
                rhinitis (aka hay fever) and atopic asthma (the
                “Business”).

            

    

    

    
      	 	
              B.

            	
              Seller
                owns certain intellectual property, including issued US and pending
                US and
                Patent Cooperation Treaty (PCT) patents, and possible trademark rights
                to
                the trade name "Immun-Eeze", acquired or used in connection with
                the
                Business.

            

    

    

    
      	 	
              C.

            	
              Buyer
                desires to purchase, and Seller desires to sell and transfer to Buyer,
                substantially all of the intellectual property and/or assets of Seller
                used or developed in connection with the Business upon the terms
                and
                conditions hereinafter set forth. 

            

    

    

    The
      agreement in principal is as follows:

    

    
      	 	
              1.

            	
              Assets
                and Liabilities to be Purchased and
                Assumed.

            

    

    

    
      	 	
              1.1

            	
              Purchased
                Assets:
                Buyer hereby agrees to purchase from Seller, and Seller hereby agrees
                to
                sell, transfer and assign to Buyer, free and clear of any and all
                liens,
                security interests, encumbrances, pledges, leases, equities, claims,
                charges, restrictions, conditions, conditional sale contracts, mortgages,
                and any other adverse interests of any kind whatsoever (other than
                those
                securing any Assumed Obligations), certain assets of the Seller,
                in which
                Seller has right, title and interest, used in connection with the
                Business
                (collectively referred to herein as the “Purchased Assets”). The Purchased
                Assets shall include, but shall not be limited to, the
                following:

            

    

     

    
      	 	
              (a)

            	
              Tangible
                personal property including but not limited to all directories,
                publications, lists, products, marketing and promotional materials,
                files,
                books, compilations of names, equipment, tools, machines, machine
                and
                electric parts, and supplies that are used and have been acquired
                or
                developed in connection with the Business, wherever located, owned
                or used
                by Seller, including Seller’s rights therein, all of which are identified
                on Schedule
                1.1(a)
                attached hereto and shall be delivered by or on behalf of Seller
                to Buyer
                at or prior to the Closing (collectively, the “Tangible Assets”);
                

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (b)

            	
              All
                rights in and to any requirements, processes, formulations, methods,
                technology, know-how, formulae, trade secrets, trade dress, designs,
                inventions and other proprietary rights and all documentation embodying,
                representing or otherwise describing any of the foregoing, owned
                or held
                by Seller in connection with the Business all of which are set forth
                in
                Schedule
                1.1(b))
                and referred to herein as "Intangible Property
                Rights";

            

    

     

    
      	 	
              (i)

            	
              All
                patents, copyrights, trade names, trademarks, including the ability
                to
                trademark, and service marks of Seller including, but not limited
                to, the
                ability to trademark the name of the dietary product, “Immun-Eeze,” the
                Business name, Allergy Limited, and the Business Website,
                www.allergylimited.com used in the Business, all of which are set
                forth in
                Schedule
                1.1(b),
                and all applications therefor, and all documentation embodying,
                representing, or otherwise describing any of the
                forgoing;

            

    

     

    
      	 	
              (ii)

            	
              All
                of Seller’s rights in and to the medical data, patient and clinical
                protocols, clinical studies, published reports or synopses, and/or
                outside
                medical research and/or studies (including all published and unpublished
                materials relating to the safety and efficacy of “Immun-Eeze” for the
                treatment of allergies; specifically) used in connection with the
                Business
                or developed or under development by, or on behalf of, Seller in
                connection with the Business, all of which are identified on Schedule
                1.1(b),
                to the extent that Seller possesses and has a right to possess and
                transfer the same. All causes of action, claims, suits, proceedings,
                judgments or demands, of whatsoever nature, of or held by Seller
                against
                any third parties with respect to the Purchased Assets and the
                Business;

            

    

     

    
      	 	
              1.2

            	
              Excluded
                Assets: The
                Purchased Assets do not include those assets set forth on Schedule
                1.2
                (the “Excluded Assets”).

            

    

     

    
      	 	
              A.

            	
              1.3

            	
              Assumed
                Obligations:
                Buyer shall not be liable to assume any obligation of Seller except
                those
                specifically set forth on Schedule
                1.3
                (the “Assumed Obligations”).

            

    

     

    
      
        	 	
                B.

              	
                1.32

              	
                Liabilities
                  Not Assumed. Except
                  for the purchase price and the amount or percentage of royalties,
                  the
                  terms of which are set forth below, Seller agrees that Buyer will
                  not
                  assume or perform, and Seller shall remain responsible for and
                  shall
                  indemnify, hold harmless and defend Buyer from and against, any
                  and all
                  liabilities and obligations of Seller, whether known or unknown,
                  and
                  regardless of when such liabilities or obligations arise or are
                  asserted,
                  including, without limitation, any obligations or liabilities of
                  Seller
                  with respect to the following:

              

      

       

    

    
      	 	
              (a)

            	
              All
                federal, state, local, foreign or other taxes applicable to Seller
                for
                periods prior to the Closing Date;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (b)

            	
              Injuries
                to or the death of any person, or any employee of Seller, that has
                occurred or may occur, prior to Closing, in connection with the Business
                or any other operations engaged in by Seller, even if not discovered
                until
                after the Closing Date;

            

    

     

    
      	 	
              (c)

            	
              All
                liens, claims and encumbrances on any of the Purchased Assets and
                all
                obligations and liabilities secured
                thereby;

            

    

     

    
      	 	
              (d)

            	
              All
                obligations of Seller for borrowed money, or incurred in connection
                with
                the purchase, lease or acquisition of any assets, and any obligations
                of a
                similar nature incurred by Seller;

            

    

     

    
      	 	
              (e)

            	
              Any
                accounts or notes payable or similar indebtedness incurred by Seller;
                

            

    

     

    
      	 	
              (f)

            	
              Any
                claims, demands, actions, suits, legal proceedings, obligations or
                liabilities arising from Seller’s operation of the Business prior to the
                Closing, or arising from any other business or operations of Seller
                conducted prior to the Closing, whether such claims, demands, actions,
                suits, legal proceedings, obligations or liabilities are presently
                pending
                or threatened or are threatened or asserted at any time after the
                date
                hereof and whether before or after the Closing;
                and

            

    

     

    
      	 	
              (g)

            	
              Any
                liabilities arising out of the termination by Seller of any of its
                employees in anticipation or as a consequence of, or following
                consummation of, the transactions contemplated hereby.
                

            

    

     

    
      	 	
              3.

            	
              Purchase
                Price/Terms of Payment/Performance
                Covenant.

            

    

     

    
      	 	
              3.1

            	
              Purchase
                Price. As
                consideration for the sale to Buyer of the Purchased Assets, Buyer
                agrees
                to pay to Seller a lump sum payment (the "Lump Sum Payment") of ONE
                HUNDRED AND FIFTY THOUSAND DOLLARS ($150,000) US plus a royalty (the
                "Royalty") calculated as a percentage of the Gross Sales of the product
                now known as "Immun-Eeze" (the "Product") occurring on or after January
                1,
                2001. Subject to Section 3.2 hereof, such Royalty shall be computed
                and
                payable quarterly, beginning with the quarter ending March 31, 2001,
                at
                the greater of (i) Buyer's obligation under Section 3.2 hereof, or
                (ii)
                the rate of SIX PERCENT (6%) of gross sales on the first FIFTY MILLION
                DOLLARS ($50,000,000) in Gross Sales, or (iii) the rate of THREE
                PERCENT
                (3%) of Gross Sales on all Gross Sales in excess of FIFTY MILLION
                DOLLARS
                ($50,000,000) .

            

    

     

    
      	 	
              (a)

            	
              For
                purposes of this Agreement, quarters of each year shall be identified
                as
                follows: Q1 shall be January 1 through March 31, Q2 shall be April
                1
                through June 30, Q3 shall be July 1 through September 30, and Q4
                shall be
                October 1 through December 31.

            

    

     

    
      	 	
              (b)

            	
              Gross
                Sales are defined as all payments received by Buyer on worldwide
                sales of
                all products containing Vitamin B12, including but not limited to,
                sales
                of all products in pediatric doses and for use by domestic
                animals.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                (c)

              	
                All
                  Royalty payments shall be calculated and paid to Seller within
                  SIXTY (60)
                  days after the close of each quarter, together with an accounting
                  for
                  sales in that quarter in a form acceptable to
                  Seller.

              

      

       

      
        	 	
                (d)

              	
                Buyer
                  agrees to pay the entire Lump Sum Payment on or before February
                  4, 2001 in
                  accordance with the following schedule:TWENTY-FIVE THOUSAND DOLLARS
                  ($25,000) on or before the Closing Date; FIFTY THOUSAND DOLLARS
                  ($50,000)
                  on or befo
                  Exhibit A
                  re
                  January 2, 2001; and SEVENTY-FIVE THOUSAND DOLLARS on or before
                  February
                  4, 2001. Buyer's obligation hereunder shall be evidenced by the
                  terms of a
                  promissory note, a form of which is attached by the terms of a
                  promissory
                  note, a form of which is attached hereto as Exhibit
                  A,
                  of even date herewith, between Seller, as holder, and Buyer, as
                  debtor,
                  under such note (the "Promissory
                  Note").

              

      

    

     

    
      	 	
              3.2

            	
              Buyer's
                Minimum Royalty Obligation. As
                an incentive for Buyer to use its best efforts in marketing and selling
                the Product, Buyer agrees to pay to Seller, in the event Gross Sales
                in
                any quarter do not meet certain threshold amounts, a minimum royalty
                (the
                "Minimum Royalty") for such quarter, as follows: FIFTEEN THOUSAND
                DOLLARS
                ($15,000) per quarter, for each quarter of the year 2001, if Gross
                Sales
                in any such quarter fall short of TWO HUNDRED AND FIFTY THOUSAND
                DOLLARS
                ($250,000); THIRTY THOUSAND DOLLARS ($30,000) per quarter, for each
                quarter of the year 2002, if Gross Sales in any such quarter fall
                short of
                FIVE HUNDRED THOUSAND DOLLARS ($500,000) and FORTY-FIVE THOUSAND
                DOLLARS
                ($45,000) per quarter, for each quarter of every year for the years
                2003
                through 2022, if Gross Sales in any such quarter fall short of SEVEN
                HUNDRED AND FIFTY THOUSAND DOLLARS ($750,000). All Minimum Royalty
                payments shall be paid to Seller within SIXTY (60) days after the
                end of
                each quarter in which they are incurred, together with an accounting
                of
                sales in that quarter in a form acceptable to
                Seller.

            

    

     

    
      	 	
              3.3

            	
              Reversion
                on Default. In
                the event Buyer defaults on the payment of any Royalty or Minimum
                Royalty
                to Seller as set forth herein, and such default is not cured within
                ONE
                HUNDRED AND TWENTY (120) days, all Purchased Assets shall immediately
                revert to Seller, without compensation of any amount or sort to
                Buyer.

            

    

     

    
      	 	
              3.4

            	
              Fair
                Market Value/Income Tax Reporting.
                Buyer and Seller agree that the purchase price set forth in this
                Section
                3, together with the Assumed Obligations set forth in Schedule 1.3
                as
                assumed by Buyer, represents the fair market value of the Purchased
                Assets
                as of November 22, 2000. The purchase price shall be allocated among
                the
                Purchased Assets as agreed to by Buyer and Seller, and each of the
                parties
                hereto shall report such allocation consistently on all income tax
                returns. Both parties agree to comply with, and furnish the information
                required by, Section 1060 if the Internal Revenue Code of 1986, as
                amended, and any regulations promulgated thereunder.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.5

            	
              Buyout
                of Royalty Obligations. Notwithstanding
                any of the foregoing provisions, Buyer shall have the option, in
                his sole
                discretion, to make a lump-sum deferred cash payment (the "Deferred
                Payment") to Seller in lieu of the Royalty and Minimum Royalty payments
                provided for herein, in accordance with the following schedule: between
                the Closing Date and June 30, 2002, the Deferred Payment shall be
                FIVE
                MILLION DOLLARS ($5,000,000); between July 1, 2002 and June 30, 2003,
                the
                Deferred Payment shall be SIX MILLION DOLLARS ($6,000,000); between
                July
                1, 2003 and June 30, 2004, the Deferred Payment shall be SEVEN MILLION
                DOLLARS ($7,000,000); thereafter the Deferred Payment shall be EIGHT
                MILLION DOLLARS ($8,000,000). In the event Buyer elects to exercise
                its
                option hereunder, Buyer shall so notify Seller, and upon receipt
                of the
                Deferred Payment by Seller, Buyer's subsequent obligations for the
                payment
                of the Royalty and the Minimum Royalty hereunder shall be deemed
                to be
                satisfied in full.

            

    

     

    
      	 	
              4.

            	
              Representations
                and Warranties of the Seller.
                Seller hereby represents and warrants to Buyer, as of the date hereof
                and
                as of the Closing Date, as follows:

            

    

     

    
      	 	
              4.1

            	
              Organization
                and Related Matters.
                Seller is a Limited-Liability Company duly organized, validly existing
                and
                in good standing under the laws of the State of Nevada. Seller is
                qualified to do business in the State of Neveda. Seller has the requisite
                power and authority to carry on its business as now being conducted
                and to
                execute and deliver the Agreement.

            

    

     

    
      	 	
              4.2

            	
              Necessary
                Actions; Binding Effect.
                Prior to the Closing Date, Seller will have taken all action necessary
                to
                authorize the execution and delivery of, and the performance of its
                obligations under, this Agreement. This Agreement constitutes, and
                upon
                execution and delivery will constitute, valid obligations of Seller
                that
                are legally binding on and enforceable against Seller in accordance
                with
                the respective terms of the Agreement, except as such enforceability
                may
                be limited by (i) bankruptcy, insolvency, moratorium or other similar
                laws affecting creditors’ rights, and (ii) general principles of
                equity relating to the availability of equitable
                remedies.

            

    

     

    
      	 	
              4.3

            	
              Representations
                Pertaining to the Purchased
                Assets.

            

    

     

    
      	 	
              (a)

            	
              Title
                to and Adequacy of Purchased Assets.
                Seller has, and at the Closing Seller will convey and transfer to
                Buyer,
                good, complete and marketable title to all of the Purchased Assets,
                free
                and clear of all mortgages, liens, security interests, encumbrances,
                pledges, leases, equities, claims, charges, restrictions, conditions,
                conditional sale contracts and any other adverse interests except
                for
                those leases set forth on Schedule
                1.1(b).
                The
                Seller can make no assurance or guarantee as to the eventual issuance
                of
                pending patent PCT/US99/31092 in the US or any PCT country. All
                of the Purchased Assets are in the exclusive possession and control
                of
                Seller and Seller has the unencumbered right to use and sell to Buyer
                all
                of the Purchased Assets without interference from others, except
                for those
                leases set forth on Schedule
                1.1(b).
                The Purchased Assets constitute all the assets, properties, rights,
                privileges and interests necessary for Buyer to own and operate the
                Business substantially in the same manner as it has been conducted
                by
                Seller during the period immediately preceding the execution of this
                Agreement.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Tangible
                Assets. Schedule 1.1(a)
                is
                a list of all of the Tangible Assets used in the Business, other
                than any
                Tangible Asset the replacement cost of which would be less than $1,000.00
                and which is not of material importance to Seller’s operations. The
                Tangible Assets are in good working order and condition, ordinary
                wear and
                tear excepted, have been maintained in accordance with generally
                accepted
                industry standards, are suitable for the uses for which they are
                being
                utilized in the Business and comply with all requirements under applicable
                laws, regulations and licenses which govern the use and operation
                thereof.

            

    

     

    
      	 	
              (c)

            	
              Intangible
                Property Rights. Schedule
                1.1(d)
                is
                a list of the Intangible Property Rights which are the only material
                intangible property used by Seller in the Business, and from and
                after the
                Closing Date, Buyer shall have the right to use all of the Intangible
                Property Rights in the Business consistent with Seller’s use of the
                Intangible Property Rights in the Business. Seller owns, or holds
                adequate
                licenses, or other rights to use, modify, change, or amend all of
                the
                Intangible Property Rights, such use does not conflict with, infringe
                on
                or otherwise violate any rights of any other person. All of such
                licenses
                and rights are transferable to Buyer without cost or liability to
                Buyer
                and will be included in the Purchased Assets being sold to Buyer
                hereunder. Seller has not granted, transferred or assigned any right,
                license or interest in any of its Intangible Property Rights. In
                no
                instance has the eligibility of any copyright to any material property
                included in the Intangible Property Rights been forfeited to the
                public
                domain by omission of any required notice or any other action. All
                personnel, including employees, agents, consultants and contractors,
                who
                have contributed to or participated in the conception and development
                of
                any of the Intangible Property Rights on behalf of Seller either
                (i) in
                the case of any copyright, have been party to a “work-for-hire”
                arrangement or agreement with Seller, in accordance with applicable
                federal and state law, that has accorded Seller full, effective,
                exclusive
                and original ownership of all United States copyrights thereby arising
                or
                (ii) shall, prior to the Closing, have executed appropriate
                instruments of assignment in favor of Seller as assignee that convey
                to
                Seller full, effective and exclusive ownership of all Intangible
                Property
                Rights thereby arising. Seller has not infringed, is not now infringing
                and has not received notice of any infringement, on any patent, trade
                name, trademark, service mark, copyright, trade secret, trade dress,
                design, invention, technology, know-how, process or other proprietary
                right belonging to any other person, firm or corporation, which
                infringement would have an adverse effect on any of the Purchased
                Assets
                or the Business. To the best of Seller’s knowledge, there is no
                infringement by any other person of any Intangible Property
                Right.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

      
        	 	
                4.4

              	
                Contracts,
                  Agreements and Commitments.
                  Seller is not a party to any contracts, agreements, leases, licenses
                  and
                  instruments to which Seller is a party or is bound or which relate
                  to or
                  affect any of the Purchased Assets or the Business.  Seller
                  further represents that there have not been any defaults by Seller
                  or, to
                  the best knowledge of the Seller, defaults or any claims of default
                  or
                  claims of nonenforceability by the other party or parties which,
                  individually or in the aggregate, would have a material adverse
                  effect on
                  the Business or any of the Purchased Assets, and there are no facts
                  or
                  conditions that have occurred or that are anticipated to occur
                  which,
                  through the passage of time or the giving of notice, or both, would
                  constitute a default by Seller, or to the best knowledge of the
                  Seller, by
                  the other party or parties, under any of such contracts, agreements,
                  leases, licenses and instruments or would cause a creation of a
                  lien,
                  security interest or encumbrance upon any of the Purchased Assets
                  or
                  otherwise materially and adversely affect any of the Purchased
                  Assets or
                  the Business. Buyer agrees to use good faith in pursuing a mutually
                  acceptable contract-manufacturing and packaging agreement with
                  the dietary
                  supplement manufacturer Natural Alternatives International, Inc.
                  (NAI) of
                  San Marcos, California for the
                  Product.

              

      

       

    

    
      	 	
              4.5

            	
              Conflicts.
                Seller represents that neither the execution and delivery of, nor
                the
                consummation of the transactions contemplated by, this Agreement
                could
                result in any of the following: (i) a default or an event that, with
                notice or lapse of time, or both, would be a default, breach or violation
                of the respective charter, bylaws or other governing instruments
                of
                Seller, or any contract, lease, license, franchise, promissory note,
                conditional sales contract, commitment, indenture, mortgage, deed
                of
                trust, security or pledge agreement, or other agreement, instrument
                or
                arrangement to which the Seller is a party or is bound which relates
                to
                the Business or which affects any of the Purchased Assets; (ii) the
                termination of any contract, lease, agreement, or commitment, or
                the
                acceleration of the maturity of any indebtedness or other obligation
                of
                the Seller; (iii) the creation or imposition of any lien, charge or
                encumbrance on any of the respective assets or properties of the
                Seller,
                including any of the Purchased Assets; (iv) a violation or breach of
                any writ, injunction or decree of any court or governmental
                instrumentality to which the Seller is a party or is bound or which
                affects any of their respective properties or any of the Purchased
                Assets
                or the Business; (v) a loss or adverse modification of any license,
                franchise, permit, other authorization or right (contractual or other)
                to
                operate, granted to or otherwise held by Seller or used in the Business,
                which would have a material adverse effect on the Business or Buyer;
                or
                (vi) the cessation or termination of any other business relationship
                or arrangement between Seller and any third party that is material
                to the
                Business, or its operating results, condition (financial or other)
                or
                prospects or any of the Purchased Assets. Seller does not know of
                any
                business relationship or arrangement between it and any third party
                (governmental or other) that is material to the Business, its operating
                results, condition or prospects and that will cease or is likely
                to be
                terminated as a result of the consummation of the transactions
                contemplated by this Agreement.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.6

            	
              Taxes
                and Tax Returns.
                Seller has duly filed all tax reports and returns which are required
                by
                law to be filed by it and has duly paid all foreign, federal, state
                and
                local taxes due or claimed to be due from such authorities, and there
                are
                no assessments or claims for payment of taxes now pending or, to
                the best
                knowledge of the Seller, threatened, nor is any audit of Seller’s records
                presently being made by any taxing
                authority.

            

    

     

    
      	 	
              4.7

            	
              Compliance
                with Law/Permits. Seller
                is in compliance with all, and is not in violation of any, law, ordinance,
                order, decree, rule or regulation of any governmental agency or authority,
                the violation of or noncompliance with which could reasonably be
                expected
                to have a material adverse effect on the Business or any of the Purchased
                Assets.

            

    

     

    
      	 	
              4.8

            	
              Litigation
                and Proceedings.
                Seller is not subject to any judgment, order, writ, injunction, decree
                or
                award of any court, arbitrator or governmental department, commission,
                board, bureau, agency or instrumentality having jurisdiction over
                Seller,
                any of its assets or the Business, which may reasonably be expected
                to
                affect the Business or otherwise interfere with Seller’s ability to
                perform under this Agreement or any ancillary documents hereto. Seller
                represents that no existing or former shareholder, director, officer
                or
                employee of Seller has any claims against or disputes with Seller
                which
                could result in the imposition of any liability or judgment against
                the
                Business or any of the Purchased
                Assets.

            

    

     

    
      	 	
              4.9

            	
              Intellectual
                Property.
                

            

    

     

    
      	 	
              (a)

            	
              Attached
                hereto as Schedule
                1.1(d) is
                an accurate list and description of all patents, patent applications,
                patent licenses, copyrights, copyright licenses, trademarks, trademark
                applications and trademark licenses, ability to trademark the product
                name
                “Immun-Eeze”, and other trade secrets, know-how or intellectual property
                rights (the “Intellectual Property”) owned, held, utilized or applied for
                by Seller in connection with the Business. Seller owns all right,
                title
                and interest in and to all Intellectual Property used in or necessary
                for
                the conduct of the Business as presently conducted, or as planned
                to be
                conducted, including, without limitation, all Intellectual Property
                developed or discovered in connection with or contained in or related
                to
                the Purchased Assets, free and clear of all liens, mortgages, charges,
                pledges, claims and encumbrances (including without limitation any
                distribution rights and royalty
                rights).

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                Intellectual Property which comprises a portion of the Purchased
                Assets
                (i) substantially complies with all specifications set forth therefor
                in any contract, agreement, advertisement or other promotional material
                for such products and with all other warranty requirements, other
                than
                bugs or fixes required or expected in the ordinary course of business
                as
                historically experienced in the Business; (ii) has been created in a
                professional manner considering its present stage of development;
                and
                (iii) can be recreated from its associated processes, formulations,
                methods, technology, know-how, formulae, trade secrets, trade dress,
                designs, inventions, and other proprietary rights and all documentation
                embodying, representing or otherwise describing any of the foregoing,
                owned or held by Seller without undue
                burden.

            

    

     

    
      	 	
              (c)

            	
              Seller
                has not knowingly altered its medical data, patient and clinical
                protocols, clinical studies (including any and all published or
                unpublished materials relating to the scientific/medical studies
                of
                “Immun-Eeze”) in any manner that may damage or undermine the validity of
                said data, whether in print or stored in electronic, optical, or
                magnetic
                or other form.

            

    

     

    
      	 	
              (d)

            	
              Seller
                has furnished Buyer with true, complete, and accurate copies of all
                documentation relating to any and all the aforementioned Intellectual
                Property, including medical data, patient and clinical protocols,
                clinical
                studies (including any and all published or unpublished materials
                relating
                to the scientific/medical studies of “Immun-Eeze”) sold to Buyer in
                connection with this Agreement.

            

    

     

    
      	 	
              4.10

            	
              Operational
                Restrictions.
                Seller is not a party to any undisclosed agreement or instrument
                or
                subject to any undisclosed charter or other corporate restriction
                or any
                undisclosed judgment, order, writ, injunction, decree, or order,
                which
                materially adversely affects, or in the future could adversely affect,
                the
                Business, or any of the Purchased Assets or the ability of Seller
                to
                transfer the Purchased Assets to Buyer pursuant to the terms of this
                Agreement. The Seller does not know knows of any facts, circumstances
                or
                events which result, or with the passage of time may result, in any
                material adverse change in the condition (financial or other), operating
                results, business or prospects of the Business or which might adversely
                affect any of the Purchased Assets.

            

    

     

    
      	 	
              4.11

            	
              Bulk
                Sale Notices.
                Seller represents and warrants that the Purchased Assets will be
                transferred to the Buyer free and clear of any encumbrances or transferee
                liability that may be imposed by the Bulk Sales Law or such similar
                laws.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.12

            	
              Representations
                and Warranties.
                Seller represents that the representations and warranties of the
                Seller
                contained herein and the materials contained in the Schedules attached
                hereto do not contain any statement of a material fact that was untrue
                when made. Seller further represents that it did not omit any material
                fact necessary to make the information contained therein not misleading.
                In this Agreement and the ancillary documents thereto, wherever there
                is a
                reference to “knowledge” or “best knowledge” of Seller, Seller shall be
                charged with the knowledge of facts, circumstances, conditions,
                occurrences and events known to Ernest
                Armstrong,
                President of Seller, as of the Closing
                Date.

            

    

     

    
      	 	
              5.

            	
              Representations
                and Warranties of Buyer.
                Buyer hereby represents and warrants to the Seller, as of the date
                hereof
                and again as of the Closing Date, as
                follows:

            

    

     

    
      	 	
              5.1

            	
              Organization
                and Related Matters.
                Buyer is a Corporation duly organized, validly existing and in good
                standing under the laws of the State of Nevada. Buyer is qualified
                to do
                business in the State of California. Buyer has the requisite corporate
                power and authority to carry on its business as now being conducted
                and to
                execute and deliver the Agreement.

            

    

     

    
      	 	
              5.2

            	
              Necessary
                Actions; Binding Effect.
                Prior to the Closing Date, Buyer will have taken all corporate action
                necessary to authorize the execution and delivery of, and the performance
                of its obligations under, this Agreement. This Agreement constitutes,
                and
                upon execution and delivery will constitute, valid obligations of
                Buyer
                that are legally binding on and enforceable against Buyer in accordance
                with their respective terms, except as such enforceability may be
                limited
                by (i) bankruptcy, insolvency, moratorium or other similar laws
                affecting creditors’ rights, and (ii) general principles of equity
                relating to the availability of equitable
                remedies.

            

    

     

    
      	 	
              5.3

            	
              Conflicts.
                Buyer represents that neither the execution and delivery of, nor
                the
                consummation of the transactions contemplated by, this Agreement
                could
                result in any of the following: (i) a default or an event that, with
                notice or lapse of time, or both, would be a default, breach or violation
                of the respective charter, bylaws or other governing instruments
                of Buyer,
                or any contract, lease, license, franchise, promissory note, conditional
                sales contract, commitment, indenture, mortgage, deed of trust, security
                or pledge agreement, or other agreement, instrument or arrangement
                to
                which the Buyer is a party or is bound which relates to the Business
                or
                which affects any of the Purchased Assets; (ii) the termination of
                any
                contract, lease, agreement, or commitment, or the acceleration of
                the
                maturity of any indebtedness or other obligation of the Buyer; (iii)
                the
                creation or imposition of any lien, charge or encumbrance on any
                of the
                respective assets or properties of the Buyer, including any of the
                Purchased Assets; (iv) a violation or breach of any writ, injunction
                or
                decree of any court or governmental instrumentality to which the
                Buyer is
                a party or is bound or which affects any of their respective properties
                or
                any of the Purchased Assets or the Business; (v) a loss or adverse
                modification of any license, franchise, permit, other authorization
                or
                right (contractual or other) to operate, granted to or otherwise
                held by
                Buyer or used in the Business, which would have a material adverse
                effect
                on the Business or Buyer; or (vi) the cessation or termination of
                any
                other business relationship or arrangement between Buyer and any
                third
                party that is material to the Business, or its operating results,
                condition (financial or other) or prospects or any of the Purchased
                Assets. Buyer does not know of any business relationship or arrangement
                between it and any third party (governmental or other) that is material
                to
                the Business, its operating results, condition or prospects and that
                will
                cease or is likely to be terminated as a result of the consummation
                of the
                transactions contemplated by this
                Agreement.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.4

            	
              Representations
                and Warranties.
                Buyer represents that the representations and warranties of the Buyer
                contained herein and the materials contained in the Schedules attached
                hereto do not contain any statement of a material fact that was untrue
                when made. Buyer further represents that it did not omit any material
                fact
                necessary to make the information contained therein not misleading.
                In
                this Agreement and the ancillary documents thereto, wherever there
                is a
                reference to “knowledge” or “best knowledge” of Buyer, Buyer shall be
                charged with the knowledge of facts, circumstances, conditions,
                occurrences and events known to Radul
                Radovich,
                President of Buyer, as of the Closing
                Date.

            

    

     

    
      	 	
              6.

            	
              Covenants
                Pending the Closing.
                Between the date hereof and the Closing, and except as otherwise
                consented
                to by Buyer in writing, Seller covenants to afford to Buyer full
                access to
                records, data and documents, pertaining to the Business and the Purchased
                Assets. Seller further covenants to operate the Business diligently
                in
                accordance with past practices and observe and perform all agreements
                and
                obligations to which Seller is legally obligated to perform in the
                course
                of operating the business or otherwise. Seller further covenants
                to
                maintain in good working order and condition all of the Purchased
                Assets
                pending the Closing.

            

    

     

    
      	 	
              7.

            	
              Obligations
                Pending and Following the
                Closing.

            

    

     

    
      	 	
              7.1

            	
              Termination
                of Security Interests and Liens.
                At
                no cost or expense to Buyer, Seller shall cause, as of the Closing
                Date,
                any and all prior security interests, liens, claims, encumbrances
                and
                adverse interests to which any of the Purchased Assets are subject
                (other
                than those securing any of the Assumed Obligations listed on Schedule
                1.3)
                to be terminated and all indebtedness or obligations secured thereby
                (other than the Assumed Obligations) to be
                paid.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              7.2

            	
              Consents.
                Except as may otherwise be agreed by the parties, each party to this
                Agreement shall use commercially reasonable efforts to obtain or
                cause to
                be obtained at the earliest practicable date, all consents, approvals
                and
                Licenses and Permits, if any, which such party requires to permit
                it to
                consummate the transactions contemplated hereby without violating
                any
                agreement, contract, instrument or applicable law or regulation or
                any
                License or Permit to which it is a party or to which it or its assets
                are
                subject. The parties hereto shall cooperate with each other in their
                efforts to obtain all such consents, approvals and Licenses and
                Permits.

            

    

     

    
      	 	
              7.3

            	
              Further
                Assurances.
                Each party hereto shall execute and deliver, both before and after
                the
                Closing, such instruments and take such other actions as the other
                party
                or parties, as the case may be, may reasonably request in order to
                carry
                out the intent of this Agreement or to better evidence or effectuate
                the
                transactions contemplated herein.

            

    

     

    
      	 	
              7.4

            	
              Notice
                of Breach.
                Each party to this Agreement will notify the other parties of the
                occurrence of any event, or the failure of any event to occur, that
                results in or constitutes a breach by it of any representation or
                warranty
                or a failure by it to comply with or fulfill any covenant, condition
                or
                agreement contained herein, within two (2) business days after learning
                of
                such breach or failure.

            

    

     

    
      	 	
              7.5

            	
              Taxes.
                Seller shall pay all taxes (other than income taxes of Buyer) of
                any kind
                or nature arising from (i) the conduct of Seller’s business or
                operations, whether prior to or after the Closing Date, and (ii) the
                consummation of the transactions contemplated hereby, including,
                without
                limitation, all sales, use or similar taxes, if any, that may arise
                from
                or be assessed by reason of the sale of the Purchased Assets by Seller
                to
                Buyer. If any taxes required under this Section 7.5
                to
                be borne by Seller are assessed against Buyer, Buyer shall notify
                Seller
                in writing promptly thereafter and Seller shall be entitled to contest,
                in
                good faith, such assessment or charge. Notwithstanding the foregoing,
                Buyer may, but shall not be obligated to, pay any such taxes assessed
                against it but payable by Seller pursuant hereto, if Buyer’s failure to do
                so, in the reasonable judgment of Buyer, could result in the imposition
                of
                a lien or attachment on any of the Purchased Assets or any other
                assets of
                Buyer or would constitute a violation of any agreement to which Buyer
                is
                subject, or if Seller fails to contest such assessment or charge
                in good
                faith. In the event Buyer pays any taxes which pursuant hereto are
                required to be borne by Seller, Buyer shall be entitled to reimbursement
                thereof from Seller, on demand.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	 	
              8.

            	
              Survival
                of Representations, Warranties and Covenants.
                All of the representations and warranties set forth in this Agreement
                or
                in any certificates delivered pursuant hereto, as the same have been
                modified by the information contained in the Schedules to this Agreement
                delivered on the date hereof by Seller to Buyer, or by Buyer to Seller,
                and all covenants which by their terms require performance or compliance
                following the Closing, shall remain in full force and effect and
                shall
                survive the Closing until (i) in the case of the representations and
                warranties, the expiration of the periods following the Closing Date
                applicable to such representations and warranties as set forth in
                this
                Agreement, regardless of any investigation or verification by any
                party
                hereto or by anyone or on behalf of any party hereto, and (ii) in the
                case of any such covenants, until they have been fully performed
                and no
                further performance is required with respect thereto pursuant to
                this
                Agreement, unless the party for whose benefit such covenant,
                representation or warranty was made waives the same in
                writing.

            

    

     

    
      	 	
              9.

            	
              Conditions
                to Obligations of Buyer.
                The obligation of Buyer to consummate the transactions contemplated
                by
                this Agreement shall be subject to the satisfaction, or the waiver
                in
                writing by Buyer, at or before the Closing, of all the conditions
                set out
                below in this Section 9.

            

    

     

    
      	 	
              9.1

            	
              Accuracy
                of Representations and Warranties/Compliance With
                Covenants.
                All of the representations and warranties of Seller contained in
                this
                Agreement and the Schedules hereto, were true and correct when made
                and
                remain true and correct as of the Closing Date. The Seller shall,
                in all
                material respects, have performed, satisfied and complied with all
                covenants, agreements and conditions required by this Agreement to
                have
                been performed or complied with by any or all of them on or before
                the
                Closing Date.

            

    

     

    
      	 	
              9.2

            	
              Certificates.
                Buyer shall have received the
                following:

            

    

     

    
      	 	
              (a)

            	
              Good
                Standing Certificates of Seller, as of a recent date, from the Nevada
                Secretary of State;

            

    

     

    
      	 	
              (b)

            	
              A
                certificate signed by the President or Chief Financial Officer of
                Seller,
                dated as of the Closing Date, certifying that (i) all representations
                and
                warranties of Seller were true and correct when made and remain,
                in all
                material respects, true and correct as of the Closing; and (ii) all
                of the
                respective covenants, agreements, obligations and conditions of Seller
                required to have been performed by Seller as of or prior to the Closing
                have been fully performed and complied with;
                and

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              A
                certificate signed by the Secretary of Seller, dated as of the Closing
                Date, as to the incumbency of the Secretary of Seller and certifying
                the
                effectiveness, accuracy and completeness of the copies attached to
                such
                certificate of resolutions duly adopted by the Board of Directors
                of
                Seller authorizing the execution and delivery of this Agreement and
                the
                performance by Seller of its obligations hereunder and the consummation
                of
                the transactions contemplated
                hereby.

            

    

     

    
      	 	
              9.3

            	
              No
                Material Adverse Changes.
                Subsequent to November 21, 2000 there shall not have occurred nor
                shall
                there exist any material adverse change in the purchased assets and
                financial condition, properties, assets, business or operating results
                or
                prospects of the Business from that reflected in the Sellers last
                audited
                balance sheet.

            

    

     

    
      	 	
              9.4

            	
              UCC
                1 Termination Statements.
                Seller shall have delivered or caused to be delivered to Buyer, at
                or
                before the Closing, UCC 1 Termination Statements and such other releases
                as Buyer may reasonably request, duly completed and executed by each
                person having any security interest, lien, claim or other encumbrances
                or
                adverse interests in or on any of the Purchased Assets which are
                required
                to be terminated pursuant to Section 7.1
                above, in order to evidence the termination
                thereof.

            

    

     

    
      	 	
              9.5

            	
              Bill
                of Sale and Assignment.
                Seller shall have executed and delivered to Buyer a Bill of Sale
                and
                Assignment, in the form attached hereto as Exhibit B,
                transferring title to the Purchased Assets and the Assumed Obligations
                to
                Buyer.

            

    

     

    
      	 	
              9.6

            	
              Other
                Documents.
                Seller shall have delivered to Buyer all instruments, consents, licenses,
                certifications, certificates of title(s), deeds, assignments and
                other
                documents called for in this Agreement, including, without limitation,
                assignments and certificates of title for any and all vehicles included
                in
                the Purchased Assets, properly executed and acknowledged for transfer,
                and
                such other documents and instruments as Buyer or its counsel reasonably
                requests to better evidence or effectuate the transactions contemplated
                hereby.

            

    

     

    
      	 	
              10.

            	
              Conditions
                to the Obligations of Seller.
                The obligations of Seller to consummate the transactions contemplated
                by
                this Agreement shall be subject to the satisfaction, or the waiver
                by
                Seller, at or before the Closing, of each of the following
                conditions:

            

    

     

    
      	 	
              10.1

            	
              Accuracy
                of Representations and Warranties/Compliance With
                Covenants.
                All of the representations and warranties of Buyer contained in this
                Agreement and in the Schedules hereto were true and correct when
                made and
                remain true and correct as of the Closing Date. Buyer shall have
                performed, satisfied and complied in all material respects with all
                covenants, agreements and conditions required by this Agreement to
                be
                performed or complied with by them on or prior to the
                Closing.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	 	
              10.2

            	
              Certificates.
                Seller shall have received the
                following:

            

    

     

    
      	 	
              (a)

            	
              Good
                Standing Certificates of Buyer, as of a recent date, from the Nevada
                Secretary of State;

            

    

     

    
      	 	
              (b)

            	
              A
                certificate signed by the President or Chief Financial Officer of
                Buyer,
                dated as of the Closing Date, certifying that (i) all representations
                and warranties of Buyer were true and correct when made and remain,
                in all
                material respects, true and correct as of the Closing; and (ii) all
                of the respective covenants, agreements, obligations and conditions
                of
                Buyer required to have been performed by Buyer as of or prior to
                the
                Closing have been fully performed and complied with;
                and

            

    

     

    
      	 	
              (c)

            	
              A
                certificate signed by the Secretary of Buyer, dated as of the Closing
                Date, as to the incumbency of the Secretary of Buyer and certifying
                the
                effectiveness, accuracy and completeness of the copies attached to
                such
                certificate of resolutions duly adopted by the Board of Directors
                of Buyer
                authorizing the execution and delivery of this Agreement and the
                performance by Buyer of its obligations hereunder and the consummation
                of
                the transactions contemplated
                hereby.

            

    

     

    
      	 	
              10.3

            	
              Other
                Documents.
                Buyer shall have delivered to Seller all instruments, consents, deeds,
                assignments and other documents called for in this
                Agreement.

            

    

     

    
      	 	
              10.4

            	
              Bill
                of Sale and Assignment.
                Buyer shall have executed and delivered to Seller a Bill of Sale
                and
                Assignment in the form of Exhibit B
                hereto with Buyer (the “Assignment Agreement”), pursuant to which Seller
                shall assign, and Buyer shall assume, all of the Assumed
                Obligations.

            

    

     

    
      	 	
              10.5

            	
              Delivery
                of Promissory Note. Seller
                shall have received that certain Promissory Note referenced in
                Section
                3
                hereto and such other documents and instruments as Seller or Seller’s
                counsel may reasonably request to better evidence or effectuate the
                transactions contemplated hereby.

            

    

     

    
      	 	
              11.

            	
              Closing.

            

    

     

    
      	 	
              11.1

            	
              Time,
                Date and Place of Closing.
                The closing of the sale and purchase of the Purchased Assets contemplated
                by this Agreement (the “Closing”) shall take place at the offices
                of
                Blue Moon Capital, in Costa Mesa, California at 1:00 P.M., on
                November 22, 2000,
                or at such other location or time or on such other date as the parties
                may
                agree to in writing (the “Closing
                Date”).

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              11.2

            	
              Seller’s
                Obligations at Closing.
                Subject to the satisfaction, or Buyer’s waiver, of the conditions
                precedent contained in Section 10
                hereof, at the Closing, the Seller shall deliver, or cause to be
                delivered
                to Buyer, the following documents and instruments, in form and substance
                satisfactory to Buyer and its
                counsel:

            

    

     

    
      	 	
              (a)

            	
              Each
                of the documents and instruments required to be delivered by the
                Seller to
                satisfy the conditions set forth in Section 10
                above;

            

    

     

    
      	 	
              (b)

            	
              The
                UCC Termination Statements, and such instruments and other documents
                as
                Buyer may request, from all persons holding security interests, liens,
                claims or encumbrances or any other adverse interests on any of the
                Purchased Assets, terminating and discharging all of such security
                interests, liens, claims, encumbrances and adverse
                interests;

            

    

     

    
      	 	
              (c)

            	
              All
                checks, cash and other negotiable instruments in the possession of
                Seller
                evidencing or constituting payment of any accounts or notes receivable
                included in the Purchased Assets, endorsed for payment to Buyer;
                and

            

    

     

    
      	 	
              (d)

            	
              Such
                other documents and instruments as Buyer or Buyer’s counsel may reasonably
                request to better evidence or effectuate the transactions contemplated
                hereby.

            

    

     

    
      	 	
              11.3

            	
              Obligations
                of Buyer at the Closing.
                Subject to the satisfaction, or Seller’s waiver, of the conditions
                precedent contained in Section 9
                hereof, at the Closing, Buyer shall do the
                following:

            

    

     

    
      	 	
              (a)

            	
              Buyer
                shall deliver each of the certificates and other documents and instruments
                required to be delivered by Buyer to Seller pursuant to Section 9
                above; and

            

    

     

    
      	 	
              (b)

            	
              Buyer
                shall deliver such other documents and instruments as Seller or Seller’s
                counsel may reasonably request to better evidence or effectuate the
                transactions contemplated hereby, including but not limited to a
                signed
                and completed UCC Financing Statement and Security Agreement in the
                form
                attached as Exhibit
                C
                hereto.

            

    

     

    
      	 	
              (3)

            	
              Check
                in the amount of TWENTY-FIVE THOUSAND DOLLARS
                ($25,000).

            

    

    

    
      	 	
              12.

            	
              Termination.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	 	
              12.1

            	
              Methods
                of Termination.
                This Agreement may be terminated and the transactions herein contemplated
                may be abandoned at any time, without liability to the terminating
                party:

            

    

     

    
      	 	
              (a)

            	
              By
                mutual written consent of Buyer and Seller;
                or

            

    

     

    
      	 	
              (b)

            	
              By
                either Buyer or Seller, if the Closing has not occurred at the close
                of
                business (5 PM, PST) Friday, December 1, 2000; provided, that the
                party so
                terminating is not in breach of any of its material obligations under
                this
                Agreement.

            

    

     

    
      	 	
              12.2

            	
              Procedure
                Upon Termination.
                In
                the event of termination of this Agreement by Buyer or Seller or
                by both
                Buyer and Seller pursuant to Section 12.1
                hereof, written notice thereof shall forthwith be given to the other
                party
                or parties hereto and the transactions contemplated herein shall
                be
                abandoned without further action by Buyer or the
                Seller.

            

    

     

    
      	 	
              13.

            	
              Notices.
                All notices, requests, demands or other communications hereunder
                shall be
                in writing and shall be deemed to have been duly given, if delivered
                in
                person or by a nationally recognized courier service, if sent by
                facsimile
                machine (“fax”) or mailed, certified, return-receipt requested, postage
                prepaid:

            

    

     

    
      	
              If
                to Buyer to:

               

              St.
                Petka, Inc.

              c/o
                Blue Moon Capital, Inc.

              1503
                South Coast Drive, Suite 320

              Costa
                Mesa, CA 92626

              Attention:
                Radul Radovich, President

            	
              If
                to Seller to:

               

              Allergy
                Limited, LLC.

              5707
                Santa Fe Street

              San
                Diego, CA 92109

              Attention:
                Ernest T. Armstrong

            
	
               

              With
                a copy to:

              William
                Harris Knudson, P.C.

              2921
                N. Tenaya Way, Suite 321 

              Las
                Vegas, NV 89128

              Attention
                William H. Knudson, Esq. 

            	
               

              With
                a copy to:

              Allergy
                Limited, LLC

              P.O.
                Box 1247

              Oceanside,
                CA 92051

            

    

    

    Any
      party
      hereto may from time to time, by written notice to the other parties, designate
      a different address, which shall be substituted for the one specified above
      for
      such party. If any notice or other document is sent by certified or registered
      mail, return receipt requested, postage prepaid, properly addressed as
      aforementioned, the same shall be deemed served or delivered seventy-two (72)
      hours after mailing thereof. If any notice is sent by fax to a party, it will
      be
      deemed to have been delivered on the date the fax thereof is actually received,
      provided the original thereof is sent by certified or registered mail, in the
      manner set forth above, within twenty-four (24) hours after the fax is sent.
      If
      the notice is delivered in person or is sent by a nationally recognized courier
      service, it shall be deemed to have been delivered on the date received by
      the
      recipient of such notice.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    
      	 	
              14.

            	
              Miscellaneous.

            

    

    

    
      	 	
              14.1

            	
              Binding
                Effect.
                This Agreement shall be binding upon the heirs, executors,
                representatives, successors and assigns of the respective parties
                hereto.

            

    

     

    
      	 	
              14.2

            	
              Assignment.
                No
                party may assign this Agreement, or assign their respective rights
                or
                delegate their respective duties hereunder, without the prior written
                consent of the other party.

            

    

    

    
      	 	
              14.3

            	
              Counterparts.
                This Agreement may be executed in facsimile and in any number of
                counterparts, each of which shall be deemed to be an original and
                all of
                which together shall be deemed to be one and the same
                instrument.

            

    

    

    
      	 	
              14.4

            	
              Headings.
                The subject headings of the sections and subsections of this Agreement
                are
                included for purposes of convenience only and shall not affect the
                construction or interpretation of any of its
                provisions.

            

    

    

    
      	 	
              14.5

            	
              Waivers.
                Any party to this Agreement may waive any right, breach or default
                which
                it has the right to waive; provided, that such waiver will not be
                effective against the waiving party unless it is in writing and
                specifically refers to this Agreement and notice thereof is promptly
                given
                to all parties in the manner provided in Section 13
                of
                this Agreement. No waiver will be deemed to be a waiver of any other
                matter, whenever occurring and whether identical, similar or dissimilar
                to
                the matter waived.

            

    

    

    
      	 	
              14.6

            	
              Entire
                Agreement.
                This Agreement, including the Schedules, Exhibits and other documents
                referred to herein which form a part hereof, embodies the entire
                agreement
                and understanding of the parties hereto, and supersedes all prior
                or
                contemporaneous agreements or understandings (whether written or
                oral)
                among the parties.

            

    

    

    
      	 	
              14.7

            	
              Governing
                Law.
                This Agreement is deemed to have been made in the State of California,
                and
                its interpretation, its construction and the remedies for its enforcement
                or breach are to be applied pursuant to, and in accordance with,
                the laws
                of California for contracts made and to be performed in that
                state.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    
      	 	
              14.8

            	
              Arbitration.
                All disputes between the parties hereto shall be determined solely
                and
                exclusively by arbitration under, and in accordance with the rules
                then in
                effect of, the American Arbitration Association, or any successors
                thereto
                (“AAA”), in Orange County, California, unless the parties otherwise agree
                in writing. The parties shall, in connection with such arbitration,
                in
                addition to any discovery permitted under AAA rules, be permitted
                to
                conduct discovery in accordance with Section 1283.05 of the California
                Code of Civil Procedure, the provisions of which are incorporated
                herein
                by this reference. The parties shall jointly select an arbitrator.
                In the
                event the parties fail to agree upon an arbitrator within ten (10)
                days,
                then each party shall select an arbitrator and such arbitrators shall
                then
                select a third arbitrator to serve as the sole arbitrator; provided,
                that
                if either party, in such event, fails to select an arbitrator within
                seven
                (7) days, such arbitrator shall be selected by the AAA upon application
                of
                either party. Judgment upon the award of the agreed upon arbitrator
                or the
                so chosen third arbitrator, as the case may be, shall be binding
                and shall
                be entered into by a court of competent
                jurisdiction.

            

    

    

    
      	 	
              14.9

            	
              Severability.
                Any provision of this Agreement which is illegal, invalid or unenforceable
                shall be ineffective to the extent of such illegality, invalidity
                or
                unenforceability, without affecting in any way the remaining provisions
                hereof. 

            

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned corporations have caused this Agreement to
      be
      executed by officers hereunto duly authorized, on the date first above
      stated.

     

     

    
      	 	
              SELLER:

            
	 	 	 
	 	ALLERGY
              LIMITED, LLC, a Nevada Limited Liability Company 
	 
 	 
 	 
 
	 	By:  	/s/ Ernest
              T. Armstrong
	 	
              
                

              

              Its: President 

            

    

     

     

    
      	 	BUYER: 
	 	 	 
	 	ST.
              PETKA, INC., a
              Nevada corporation
	 
 	 
 	 
 
	 	By:  	/s/ Radul
              Radovich
	 	
              
                

              

              Its: President 

            

    

     

    

    
      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

     

    EXHIBITS

     

    
      
        	
                Exhibit
                  A

              	
                Form
                  of Promissory Note

              

      

      
        	
                Exhibit
                  B

              	
                Form
                  of Bill of Sale and Assignment 

              

      

      
        	
                Exhibit
                  C

              	
                UCC
                  Financing Statement and Security
                  Agreement

              

      

       

    

    SCHEDULES

     

    
      	
              Schedule
                1.1(a)

            	
              Tangible
                Assets (i.e.
                PRODUCT INVENTORY ETC.)

            

    

    
      	
              Schedule
                1.1(b)

            	
              Intangible
                Property Rights (i.e.
                PATENT RIGHTS/ADDIT. I.P.ETC.).

            

    

    
      	
              Schedule
                1.2

            	
              Excluded
                Assets

            

    

    
      	
              Schedule
                1.3

            	
              Assumed
                Obligations (i.e.
                BUYER TO ASSUME)

            

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Schedule
      1.1(a) 

    Tangible
      Assets

     

    Asset
      ID Description Value Prepared in Accordance with GAAP

    Asset
      Type: Physical product, Immun-Eeze

    $12.50
      per kit (wholesale)

    500
      Kits

    SubtotaL:
      $
      6,250.00

    Grand
      TotaL:  $
      6,250.00

    

     

    Copies
      of
      clinical studies.

    Copies
      of
      customer lists.

    
 

    
      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

    

    Schedule
      1.1(b)

    Intangible
      Property Rights

    

     

    1.
      US
      Patent No. 5,135,918 (Peraita)

    2.
      Pending patent International application No.: PCT/US99/31092, (Armstrong, et.
      al.)

    3.
      www.allergylimited.com 

    4.
      Clinical research study write-ups.

    5.
      Art
      work related to Immun-Eeze.

    6.
      Claimed trademark for Immun-Eeze.

    7.
      Company trade name Allergy Limited.

    8.
      Customer lists. 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Schedule
      1.2

    Excluded
      Assets

     

    

      1.
        Allergy Limited, LLC Wells Fargo Bank Account

      2.
        Computers

       

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Schedule
      1.3

    Assumed
      Obligations

     

    i.e.
      BUYER TO ASSUME THE FOLLOWING: 

     

    Buyer
      agrees to assume all responsibilities regarding the patents. This responsibility
      includes, but is not limited to, the Buyer paying all maintenance fees, all
      issuance fees, and any other sums that shall become due to the US Patent and
      Trademark Office (USPTO) and to the Patent Cooperation Treaty (PCT) offices
      pertaining to US Patent No. 5,135,918 (Peraita) and PCT pending Patent
      International application No.: PCT/US99/31092, (Armstrong, et al). The Buyer
      agrees to make a best efforts attempt to secure the issuance of pending patent
      PCT/US99/31092 in the United States and in a minimum of eight (8) PCT countries,
      to be selected by the Buyer. The Seller can make no assurance or guarantee
      as to
      the eventual issuance of pending patent PCT/US99/31092 in the US or any PCT
      country. The Buyer also agrees to notify Seller in writing within 30 days of
      making any and all payments to the USPTO and PCT offices. This responsibility
      includes the fees associated with maintaining the ownership of
      www.allergylimited.com, including but not limited to those fees to Network
      Solutions, Inc. and Mr. Phil Jolley, the webmaster. Buyer agrees to not sell
      the
      Product in the absence of a valid liability insurance policy covering the Buyer
      from liabilities arising from the use of the Product. There
      are
      no Asumed Contracts.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    BILL
      OF
      SALE AND ASSIGNMENT

     

    ALLERGY
      LIMITED, LLC., a Nevada Limited-Liability Company ("Seller"), pursuant to and
      in
      accordance with the provisions and requirements of that certain Asset Purchase
      Agreement (the "Agreement") and Promissory Note of even date herewith by and
      between Seller and ST. PETKA, INC., a Nevada Corporation (“Buyer”), and in
      consideration of the lump sum payment of ONE HUNDRED FIFTY THOUSAND DOLLARS
      ($150,000.00) US, plus a royalty calculated as the greater of (i) Buyer's
      obligation under Section 3.2 of the Agreement, or (ii) the rate of SIX PERCENT
      (6%) of Gross Sales of the Product now known as Immun-Eeze on the first FIFTY
      MILLION DOLLARS ($50,000,000) in Gross Sales, or (iii) the rate of THREE PERCENT
      (3%) of Gross Sales of the Product on all Gross Sales in excess of FIFTY MILLION
      DOLLARS ($50,000,000), or as otherwise provided in the Agreement, the receipt
      and sufficiency of which is hereby acknowledged, hereby:

     

    
      	 	
              1.

            	
              Grants,
                conveys, delivers, sells, transfers and sets-over unto Buyer good
                and
                marketable title to the Purchased Assets (as defined in Section 1.1
                of the
                Agreement and set forth in Schedules 1.1 (a) and (b) thereto, all
                of which
                are incorporated herein by reference) free and clear of all
                encumbrances;

            

    

     

    
      	 	
              2.

            	
              Transfers
                and delivers to Buyer the Purchased Assets for Buyer and its own
                use;
                

            

    

     

    
      	 	
              3.

            	
              Defends
                such title to the Purchased Assets against any and all adverse claims
                thereto; and;

            

    

     

    
      	 	
              4.

            	
              Assigns
                to Buyer the Assumed Obligations (as defined in Section 1.3 of the
                Agreement and as set forth in Schedule 1.3 thereto, all of which
                are
                incorporated herein by reference), and Buyer hereby agrees to assume
                and
                perform all of the Assumed
                Obligations.

            

    

     

    Seller
      and Buyer agree to execute and deliver such instruments and documents as the
      other party may from time to time hereafter reasonably request to further
      effectuate the sale and transfer to Buyer of the Purchased Assets, and the
      assignment of the Assumed Obligations or the assumption by Buyer of the Assumed
      Obligations, respectively, as provided in the Agreement.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    The
      representations and warranties of Seller contained in the Agreement with respect
      to the Purchased Assets, together with all limitations on such representations
      and warranties expressly set forth in the Agreement, are incorporated herein
      by
      this reference and made a part of this Bill of Sale and Assignment.

     

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto have caused this Bill of Sale and Assignment to be executed
      by its duly authorized representative as of the 22nd
      day of
      November, 2000.

     

    
       

      
        	 	SELLER: 
	 	 	 
	 	ALLERGY
                LIMITED, LLC, a Nevada Limited Liability Company 
	 
 	 
 	 
 
	 	By:  	/s/ Ernest
                T. Armstrong, MBA
	 	
                
                  

                

                Name:
                  Ernest T. Armstrong, MBA

                Its:
                  President

              

      

       

       

      
        	 	BUYER: 
	 	 	 
	 	ST.
                PETKA, INC., a
                Nevada corporation
	 
 	 
 	 
 
	 	By:  	/s/ Radul
                Radovich
	 	
                
                  

                

                Its: President 

              

      

       

       

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    ST.
      PETKA, INC.

    a
      Nevada
      corporation

     

    PROMISSORY
      NOTE

     

    $150,000.00/Terms
      of Lum Sum Payments November 22, 2000

     

    FOR
      VALUE
      RECEIVED, ST. PETKA, INC., a Nevada corporation (the “Company”), hereby promises
      to pay ALLERGY LIMITED, LLC., a Nevada Limited-Liability Company (hereinafter
      referred to as the “Holder”), the principal sum of ONE HUNDRED FIFTY THOUSAND
      DOLLARS ($150,000.00) US. This Note is the promissory note referenced in
      Section 3.1 of that certain Asset Purchase Agreement (the “Purchase
      Agreement”) of even date herewith between Holder and the Company. 

     

    
      	
              1.

            	
              Payment.
                The Company shall pay to Holder the Lump Sum amount of this Note
                as
                follows: 

            

    

     

    
      	 	
              1.1

            	
              An
                initial payment of TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) U.S.
                paid
                directly to Holder immediately upon the parties’ entrance into the Asset
                Purchase Agreement, attached
                hereto;

            

    

     

    
      	 	
              1.2

            	
              A
                second installment of FIFTY THOUSAND DOLLARS ($50,000.00) shall be
                paid
                directly to Holder on or by the end of business (5 PM P.S.T.) on
                January
                2, 2001, and;

            

    

     

    
      	 	
              1.3

            	
              The
                final installment of SEVENTY FIVE THOUSAND DOLLARS ($75,000.00) U.S.
                shall
                be paid directly to Holder on or by the end of business (5 PM P.S.T.)
                on
                February 4, 2001. 

            

    

     

    
      	 	
              1.4

            	
              Reversion
                on Default. In
                the event Buyer defaults on any of the Lump Sum payments to Seller
                as set
                forth herein, and such default is not cured within ONE HUNDRED AND
                TWENTY
                (120) days, all Purchased Assets shall immediately revert to Seller,
                without compensation of any amount or sort to
                Buyer.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

    
      	
              2.

            	
              Amendment,
                Waiver Etc., By Holder.
                The terms of this Note may be amended or waived only upon the written
                consent of the Company and the
                Holder.

            

    

     

    
      	
              3.

            	
              Miscellaneous.
                This Note shall be governed by and construed in accordance with the
                laws
                of the State of California. The Company hereby waives presentment,
                demand,
                notice of nonpayment, protest and all other demands and notices in
                connection with the delivery, acceptance, performance or enforcement
                of
                this Note. If an action is brought for collection under this Note,
                the
                Holder shall be entitled to receive all costs of collection, including,
                but not limited to, its reasonable attorneys
                fees.

            

    

     

     

    
      	 	HOLDER:  
	 	 	 
	 	
              ALLERGY
                LIMITED, LLC. 

            
	 
 	 
 	 
 
	 	By:  	/s/ Ernest
              T. Armstrong, MBA
	 	
              

              Name:
                Ernest T. Armstrong, MBA

              Its:
                President

            

    

     

    
      	 	COMPANY: 
	 	 	 
	 	
              ST.
                PETKA, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Radul
              Radovich
	 	
              
                

              

              Its: President 

            

    

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    EXIBIT
      1

     

    (Form
      UCC 1)

     

    SCHEDULES

     

    
      	
              Schedule
                1.1(a)

            	
              Tangible
                Assets (i.e.
                PRODUCT INVENTORY ETC.)

            

    

     

    
      	
              Schedule
                1.1(b)

            	
              Intangible
                Property Rights (i.e.
                PATENT RIGHTS/ADDIT

            

    

     

     

    Schedule
      1.1(a) Tangible Assets

     

    Asset
      ID Description Value Prepared in Accordance with GAAP

    Asset
      Type: Physical product, Immun-Eeze

    $12.50
      per kit (wholesale)

    500
      Kits

    Subtotal:
      $6,250.00

    Grand
      Total: $6,250.00

    

    Copies
      of
      clinical studies.

    Copies
      of
      customer lists.

     

    Schedule
      1.1(b)Intangible Property Rights

     

    1.
      US
      Patent No. 5,135,918 (Peraita)

    2.
      Pending patent International application No.: PCT/US99/31092, (Armstrong, et.
      al.)

    3.
      www.allergylimited.com 

    4.
      Clinical research study write-ups.

    5.
      Art
      work related to Immun-Eeze.

    6.
      Claimed trademark for Immun-Eeze.

    7.
      Company trade name Allergy Limited.

    8.
      Customer lists.

     

    30

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