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Exhibit 10.1 Employment Agreement of Matthew Todd Kanipe dated September 17, 2009

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”) made and effective as of September 17, 2009, by and between CITIZENS FIRST CORPORATION, a Kentucky corporation (“Employer”), and MATTHEW TODD KANIPE, an individual (“Kanipe”).

WHEREAS, the parties hereto entered into that certain Employment Agreement on January 1, 2005, as amended by that certain First Amendment to Employment Agreement dated September 26, 2005 (the “Prior Agreement”), wherein Kanipe was employed by Employer as the Chief Credit Officer of Citizens First Bank, Inc.,
Employer’s wholly-owned subsidiary (the “Bank”); and

WHEREAS, the parties desire to enter into this Agreement which shall supersede the prior Agreement in its entirety.

NOW, THEREFORE, for and in consideration of the mutual terms, conditions and benefits to be obtained by the parties to this Agreement, the receipt and sufficiency of which the parties hereby acknowledge, Employer and Kanipe agree as follows:

1. Employment.  Employer hereby employs Kanipe, and Kanipe hereby accepts employment with Employer, as the President and Chief Executive
Officer of Employer and of the Bank.  Such positions are hereinafter collectively referred to as the “Position.”

 

 

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    2. Term of Employment.  This
Agreement shall commence on and be effective as of September 17, 2009 (the “Commencement Date”), and continue through September 16, 2012, subject to renewal and to termination in accordance with the terms of this Agreement.  This Agreement shall automatically renew at the end of the initial term and each subsequent term thereafter for a one year period, unless either Employer or Kanipe shall elect to terminate this Agreement by written notice to the other party hereto at least 60 days prior
to the end of the respective term.  Kanipe’s initial term of employment and any subsequent renewal thereof shall hereinafter be referred to as the “Term”.  If this Agreement is not renewed as specified herein, all of Kanipe’s rights to compensation and fringe benefits shall terminate at the end of the Term.

    3. Responsibilities in Position.  During
his employment, except for illness and reasonable vacation periods as hereinafter provided and reasonable involvement in civic affairs and in organizations which benefit,  promote or complement the interests of Employer and the Bank, and except as otherwise provided in this Agreement, or as
approved by the Board of Directors of Employer, Kanipe shall devote substantially all of his time, attention, skill and efforts to the faithful performance of his duties hereunder and in the Position, and shall use his best efforts, skill and experience to promote the business, interests and welfare of Employer and the Bank.  Kanipe shall not, without the consent of the Board of Directors of Employer, be engaged in any other business activity, whether or not such activity is pursued for gain, profit
or pecuniary advantage.

    4. Specific Description of
Authority.  Kanipe shall have, exercise and carry out the authorities, powers, duties and responsibilities conferred upon persons occupying each of the capacities contained in the Position by the Bylaws of Employer, as such Bylaws are from time to time in effect, and  shall observe such directions and restrictions as the Board of Directors of  Employer may from time to time confer or impose upon him. In the absence of specific directions, Kanipe shall have the following duties,  responsibilities
and authorities with respect to Employer and the Bank:

              A. He
shall have complete charge of the day-to-day management, operation and supervision of the business of the Employer and the Bank;

        B. He
shall discharge all of those duties and responsibilities customarily discharged by a President and Chief Executive Officer of a banking institution  and shall have all of the powers and authorities customarily 

 

 

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conferred upon an individual holding such offices, including, without limitation, the authority to formulate policies and administer its business, including the business of any banking institution which it might organize, subject to the policies and directions from time to time adopted or given by its Board of Directors;

              C. He
shall have the general management and control of its business activity;

      D. He
and those working under his supervision, acting with his authority, shall have the responsibility and authority to hire, appoint, discipline and dismiss all of its employees and shall have the general supervision of all of its employees and officers including those employees and officers associated with any banking institution that it might organize;

               E. He
shall be responsible for carrying out such other acts and duties, not otherwise specified herein, as shall be necessary for the management of its business, as its Board of Directors shall from time to time direct.

    5. Compensation.  Kanipe’s
salary shall be $200,000 annually and shall be paid in equal bi-weekly installments.  The Compensation Committee of the Employer’s Board of Directors and Kanipe may mutually agree to further adjust the salary of Kanipe during the Term of this Agreement.  Any such additional adjustment of salary made during the Term of this Agreement shall be in the form of a duly adopted resolution of the Compensation Committee of the Board of Directors.  Any purported agreement for additional
compensation or for an adjustment in compensation which is not so evidenced by a written resolution of Employer’s Compensation Committee shall not be enforceable, and shall be of no force or effect whatsoever.

    6. Reimbursement.  Employer
will reimburse Kanipe for all reasonable and necessary expenses incurred by him in carrying out his duties under this Agreement; provided that such expenses shall be incurred by him only pursuant to the policies and procedures of Employer, from time to time in effect, and that all such expenses must be reasonable and necessary expenses incurred by him solely for the purpose of carrying out his duties under this Agreement.  Kanipe shall present to Employer on a quarterly basis an itemized account of
such expenses in such form as may be required by Employer’s Board of Directors. Any such itemized account shall be subject to approval by Employer’s Board of Directors.

  

 

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  7. Vacation and Sick Leave.  Kanipe shall be entitled to four weeks of
vacation annually.  Kanipe shall be responsible for arranging to have other officers of Employer discharge his duties and responsibilities during any vacation period.  Vacation shall be taken only at those times during which such vacation will be calculated to cause a minimum of disruption in the business of Employer.  At least five days of vacation must be taken consecutively each year.  Unused vacation time shall not accrue from year to year.

Kanipe shall additionally be entitled to 10 days of paid sick leave annually except that if Kanipe becomes entitled to receive benefits under any disability policy provided by the Employer, all rights to sick leave compensation shall end at that time.  Sick leave shall only be taken if Kanipe is incapacitated by
illness or injury from performing his duties in the Position and shall not be utilized as additional vacation time.  Sick leave may be carried over from year to year, but Kanipe agrees that he will not be compensated for any unused sick leave upon termination of this Agreement.

8. Employee Benefits.  Kanipe shall be entitled to participate in all employee benefit programs as are conferred by Employer, from time
to time, upon its other executive officers, including the following:

               A. The
right to participate in any health insurance program established by Employer;

             B. The
right to participate in any profit sharing plan,  pension plan, or other incentive program, retirement benefit plan or similar program established by Employer; provided, that Kanipe must be a “qualified participant,” as defined in the legal documentation establishing such plans; and

        C. The
right to participate in any life insurance plan, short-term disability plan, or long-term disability plan established by Employer.

                     D. Kanipe
shall be entitled to receive a monthly car allowance of $400 during the Term, which allowance shall be in lieu of any mileage or other automobile expense reimbursement.

9. Annual Evaluation.  At least annually, the Employer shall devote a portion of one meeting of the Employer’s Board of Directors
to an evaluation of Kanipe’s performance as measured against specific goals and objectives as established by the Employer.  If Kanipe is a member of the Board of Directors, he shall not be permitted to attend 

 

 

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that part of any meeting at which his evaluation is being considered without invitation by a majority of the other Board members.

    10. Termination.  Kanipe
may terminate his employment in the Position, and this Agreement, at any time during the Term, provided that he shall give to the Employer’s Board of Directors at least 60 days prior written notice of such termination; provided that Employer may, in its discretion, elect to accelerate the effective date of any resignation, and the effective date of the termination of this Agreement, upon receipt of any such notice of termination.  If Kanipe voluntarily terminates his employment in the Position
and this Agreement at any time during the Term, then all rights to compensation and fringe benefits shall terminate as of the effective date of such termination; provided, however, that Kanipe shall be entitled to receive payment for any accrued  vacation.

       The Employer’s Board of Directors may terminate Kanipe’s employment in writing for cause during the Term.  If Kanipe’s employment is terminated for cause,
Kanipe shall not be entitled to any further compensation of any kind or nature whatsoever following written notice of such termination.

For purposes of this Paragraph, termination “for cause” means that the Employer has determined in good faith that Kanipe has engaged in the following conduct:

A.  Kanipe has appropriated to his personal use funds, rights or property of Employer or of any of the customers of Employer;

             B. Kanipe
has misrepresented or engaged in any other act of substantial dishonesty in the performance of his duties or responsibilities;

            C. Kanipe
has, in any substantial respects, failed to discharge his duties and responsibilities in the Position, and fails or refuses to correct such failings within thirty (30) days of receipt of written notice to him from the Employer of the failings, which such notice shall specifically describe Kanipe’s failings and the steps required to remedy same;

            D. Kanipe
is engaging in competition with Employer in any manner or in activities harmful to the business of Employer;

 

 

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                             E. Kanipe
is using alcohol, drugs or similar substances in an illegal manner;

                             F. Kanipe
has become “disabled”, as hereinafter defined in this Agreement;

            G. Kanipe
is convicted of a felony, or of a substantial misdemeanor involving moral turpitude;

            H. For
any reason, Employer or the Bank is unable to procure upon Kanipe a substantial fidelity bond, or a bonding company refuses to issue a bond to Employer or the Bank if Kanipe is employed in the Position;

                            I. Kanipe
is guilty of gross professional misconduct, or of a gross breach of this Agreement of such a serious nature as would reasonably render his service entirely unacceptable, or

         J. The
issuance by any state of federal regulatory agency of a request or demand for removal of Kanipe from employment with the Employer or the Bank or from any office which Kanipe then holds with Employer or the Bank. The termination of this Agreement for any reason shall operate as Kanipe’s automatic resignation from all positions associated with the Employer and the Bank and any affiliate of the Employer or the Bank, including
as a member of the board of directors or any committee thereof.

 

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11. Disability.  Kanipe shall be deemed to be “disabled” or shall be deemed to be suffering from a “disability”
under the provisions of this Agreement if a competent physician, acceptable to Kanipe and Employer, states in writing that it is such physician’s opinion that Kanipe will be permanently (or for a continuous period of four (4) calendar months) unable to perform a substantial number of the usual and customary duties of Kanipe’s  employment.  In the event Kanipe and Employer are unable to agree upon such a suitable physician for the purposes of making such a determination, then Kanipe
and Employer shall each select a physician, and such two physicians as selected by Employer and Kanipe shall select a third physician who shall make the determination, and the determination made by such third physician shall be binding upon Kanipe and Employer.  It is further agreed that if a guardian is appointed for Kanipe’s person, or a conservator or curator is appointed for Kanipe’s estate, or he is adjudicated “incompetent”
or is suffering or operating under a mental “disability” by a court of appropriate jurisdiction, then Kanipe shall be deemed to be “disabled” for all purposes under this Agreement. In the event Kanipe becomes “disabled,” then his employment and all rights to compensation and fringe benefits shall terminate effective as of the date of such disability determination.

    12. Death of Kanipe.  Kanipe’s
death shall terminate the Term and Kanipe’s employment and shall terminate all of Kanipe’s rights to all salary, compensation and fringe benefits effective as of the date of such death.

    13. Duties Upon Termination.  Upon
the termination of Kanipe’s employment hereunder for any reason whatsoever (including but not limited to the failure of the parties to renew this Agreement pursuant to Section 2 hereof), Kanipe shall promptly return to Employer any property of Employer or its subsidiaries then in Kanipe’s possession or control, including without limitation, any technical data, performance information and reports, sales or marketing plans, documents or other records, computer programs, discs and any other physical
representations of any other information relating to Employer or its subsidiaries. Kanipe hereby acknowledges that any and all of such documents, items, and information are and shall remain at all times the exclusive property of Employer.

    14. Faithfulness.  Kanipe
shall diligently employ himself in the Position and in the business of Employer and shall be faithful to Employer in all transactions relating to it and its business and shall give, whenever required, a true account to the Employer’s Board of Directors of all business transactions arising out of or connected with Employer and its business.  Kanipe shall keep Employer’s Board of Directors fully informed of all work for and transactions

 

 

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 on behalf of Employer.  He shall not, except in accordance with regular policies of the Board of Directors from time to time in effect, borrow money in the name of Employer, use collateral owned by Employer as security for loans or lease or dispose of or in any way deal with any of the property, assets or
interests of Employer other than in connection with the proper conduct of the business of Employer.

    15. Nonassignability.  Neither
this Agreement, nor any rights or interests hereunder, shall be assignable by Employer, or by Kanipe, his beneficiaries or legal representatives, without the prior written consent of the other party.  All services to be performed hereunder by Kanipe must be personally performed by him.

    16. Consolidation.  Merger
or Sale of Assets.  Nothing in this Agreement shall preclude Employer from consolidating or merging into or with, or transferring all or substantially all of its assets to, another bank or corporation.  Upon such a consolidation, merger or transfer of assets, the successor to Employer or to all or substantially all of Employer’s business and/or assets shall be obligated to assume the obligations of Employer under this Agreement and the term “Employer,” as used herein,
shall mean such other bank or corporation, as the case may be, and this Agreement shall continue in full force and effect.

    17. Binding Effect.  This
Agreement shall be binding upon, and shall inure to the benefit of Employer and its successors and assigns, and Kanipe and his heirs, executors, administrators and personal representatives.

    18. Amendment of Agreement.  This
Agreement may not be amended or modified except by an instrument in writing signed by the parties hereto.

    19. Waiver.  No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed to be a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived, and shall not constitute a
waiver of such term or condition in the future or as to any act other than that specifically waived.

 

 

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    20. Severability.  If
for any reason any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall, to the full extent consistent with law, continue in full force and effect.  If any provisions of this Agreement shall be invalid in part, such partial invalidity shall in no way affect the rest of such provision not held invalid, and the rest of such provision, together with all other provisions of this Agreement,
shall, to the extent consistent with law, continue in full force and effect.

    21. Trade Secrets.  Kanipe
shall not, at any time or in any manner, either directly or indirectly, divulge, disclose or communicate to any person, firm or corporation, in any manner whatsoever, any information concerning  any matters affecting or relating to Employer or the Bank, including, without limiting the generality of the foregoing, any information concerning any of its customers, its manner of operation, its plans, process or other data, without regard to whether
all or any part of the foregoing matters will be deemed confidential, material or important, as the parties hereto stipulate that as between them, the same are important, material and confidential and gravely affect the effective and successful conduct of the business and goodwill of Employer and the Bank, and that any breach of the terms of this Paragraph shall be a substantial and material breach of this Agreement.  All terms of this Paragraph shall remain in full force and effect after the termination
of Kanipe’s employment and of this Agreement.  Kanipe acknowledges that it is necessary and proper that Employer preserve and protect its proprietary rights and unique, confidential and special information and goodwill, and the confidential nature of its business and of the affairs of its and the Bank’s customers, and that it is therefore appropriate that Employer prevent Kanipe from engaging in any breach of the provisions of this Paragraph.  Kanipe, therefore, agrees that a violation
by Kanipe of the terms of this Paragraph would result in irreparable and continuing injury to Employer, for which there might well be no adequate remedy at law. Therefore, in the event Kanipe shall fail to comply with the provisions of this Paragraph, Employer shall be entitled to such injunctive and other relief as may be necessary or appropriate to cause Kanipe to comply with the provisions of this Paragraph, and to recover, in addition to such relief, its reasonable costs and
attorney’s fees incurred in obtaining same. Such right to injunctive relief shall be in addition to, and not in lieu of, such rights to damages or other remedies as Employer shall be entitled to receive.

    22. Covenant Not to Compete.   Should
this Agreement be terminated for any reason by Kanipe during the Term, Kanipe covenants and agrees that he will not, for a period of six (6) months following the date of termination of the 

 

 

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Agreement: (i) directly or indirectly engage or participate in the operation of a banking institution or enter the employ of, or render any personal services to, or receive remuneration in the form of salary, commissions or otherwise, from any business operating a banking institution within the geographical limits of Barren,
Hart, Simpson, and Warren Counties in Kentucky and all other counties adjoining Warren County, Kentucky; (ii) offer employment to, hire, solicit, divert or appropriate to himself or any other person, any business or services of any person who was an employee or an agent of Employer or the Bank at any time during the last 12 months of Kanipe’s employment hereunder; or (iii) contact or communicate by any means either or himself or on behalf of any other person, any existing or prospective customer of Employer
or the Bank on the date of Kanipe’s termination for the purpose of soliciting, offering or doing any type of business or services similar in nature to the business of Employer or the Bank.  Kanipe acknowledges that his breach of any covenant contained in this Section 22 will result in irreparable injury to Employer and its subsidiaries and that the remedy at law of such parties for such a breach will be inadequate.  Accordingly, Kanipe agrees and consents that Employer and its subsidiaries
shall be entitled to seek both preliminary and permanent injunctions to prevent and/or halt a breach or threatened breach by Kanipe of any covenant contained in this Section 22.  If any provision of this Section 22 is invalid in part or in whole, it shall be deemed to have been amended, whether as to time, area covered or otherwise, as and to the extent required for its validity under applicable law and, as so amended, shall be enforceable.

    23. Withholding.  Employer
shall have the right to withhold from the compensation payable to Kanipe hereunder any amounts required by law to be withheld.

    24. Entire Agreement.  This
Agreement contains the entire agreement between the parties with respect to Kanipe’s employment by Employer and the Bank. Each of the parties acknowledges that the other party has made no agreements or representations with respect to the subject matter of this Agreement other than those hereinabove specifically set forth in this Agreement.

    25. Governing Law.  This
Agreement is executed and delivered in, and shall be governed by, enforced and interpreted in accordance with the laws of, the Commonwealth of Kentucky.

 

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

 

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/s/ M. Todd Kanipe

 

MATTHEW TODD KANIPE

 

 

CITIZENS FIRST CORPORATION

 

 

BY: /s/ Jack Sheidler

 

 

TITLE: Chairman

                                        11EXHIBIT 10.1

                            SHARE EXCHANGE AGREEMENT

THIS SHARE EXCHANGE AGREEMENT (this "Agreement"),  effective as of September 17,
2009  (the   "Effective   Date"),   is  entered  into  by  and  between  InoLife
Technologies, Inc., a corporation formed under the laws of the State of New York
("Buyer"),  InoVet,  Ltd., a corporation  formed under the laws of Delaware (the
"Company"),  and the  shareholders  of the  Company,  Gary  Berthold  and Sharon
Berthold (collectively, the "Shareholders").

WHEREAS the Shareholders are the registered and beneficial  owners of all of the
issued and outstanding shares of common stock of the Company (the "Shares");

WHEREAS Buyer is a publicly trading company, whose stock currently trades on the
on the Over-the-Counter Bulletin Board under the symbol "NXXN.OB";

WHEREAS subject to approval by the respective Board of Directors,  Buyer desires
to acquire one hundred percent (100%) of the total issued and outstanding Shares
in exchange for 10,000,000 shares of the common stock, par value $0.01, of Buyer
representing  100% of the total  issued  and  outstanding  shares of Buyer  (the
"Buyer Shares");

WHEREAS  Buyer  desires to acquire the Company in exchange for all of the issued
and  outstanding  shares of the  Company  resulting  in the  Company  becoming a
wholly-owned subsidiary of Buyer in a tax-free exchange;

WHEREAS, the parties to this Agreement have agreed to the share exchange subject
to the terms and conditions set forth below.

NOW THEREFORE THIS  AGREEMENT  WITNESSES  that for and in  consideration  of the
mutual premises and the mutual covenants and agreements  contained  herein,  the
parties covenant and agree each with the other as follows:

                                    ARTICLE I
                                EXCHANGE OF STOCK

Section  1.01.  EXCHANGE.  Upon the terms and subject to the  conditions of this
Agreement,  the  Shareholders  agree to exchange the Shares for the Buyer Shares
and Buyer  agrees to issue to the  Shareholders  10,000,000  Buyer  Shares.  The
parties   intend  that  the  share   exchange   shall  qualify  as  a  tax  free
reorganization  under Section 368 of the Internal Revenue Code.  However,  Buyer
makes no representations or warranties  regarding the qualification of the share
exchange as "tax free".  Buyer shall cooperate with the Company in executing any
reasonably necessary documents to qualify the share exchange as tax free.

Section 1.02. DELIVERY OF STOCK. (a) Upon the execution hereof, the Shareholders
shall  deliver  to Buyer all of the stock  certificates  representing  the total
issued and outstanding Shares, duly endorsed in blank;

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(b) Upon  execution  hereof,  Buyer  shall  deliver  to the  Shareholders  stock
certificates representing the Buyer Shares in the names and denominations as set
forth on Exhibit A hereto.

                                   ARTICLE II
       REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SHAREHOLDERS

Section 2.01. ORGANIZATION,  STANDING AND AUTHORITY; FOREIGN QUALIFICATION.  (a)
The  Company is a  corporation  duly  organized,  validly  existing  and in good
standing  under the laws of Delaware with all  requisite  power and authority to
enter into, and perform the obligations  under this  Agreement.  The Company has
all  requisite  power and  authority  to own,  lease  and  operate  its  assets,
properties  and  business  and to  carry on its  business  as now  being  and as
heretofore conducted.

         (b)  The  Company  is  duly  qualified  or  otherwise  authorized  as a
corporation to transact business and is in good standing in each jurisdiction as
necessary to conduct  business as required by law. The Company does not file any
franchise,  income or other tax returns in any other jurisdiction other than the
State of Delaware,  based upon the  ownership or use of property  therein or the
derivation of income there from.

Section 2.02. CAPITALIZATION.  The authorized capital of the Company consists of
75,000,000  shares of common  stock,  par value  $.0001  per  share,  A total of
50,000,000  shares of common  stock are issued and  outstanding.  There are also
1,000,000  shares of preferred stock with a par value of $0.0001 per share.  The
Shares are the only class of the Company's  capital  stock that is  outstanding.
All of the outstanding  Shares are duly authorized,  validly issued,  fully paid
and non-assessable and free of preemptive rights.

Section  2.03.  CERTIFICATE  OF  INCORPORATION  AND  BY-LAWS.  The  Company  has
heretofore  delivered  to  Buyer  true,  correct  and  complete  copies  of  its
Certificate of Incorporation or other documentation evidencing a corporation and
By-laws. The minute books of the Company accurately reflect all actions taken at
all  meetings  and  consents in lieu of meetings  of its  stockholders,  and all
actions  taken at all meetings and consents in lieu of meetings of its boards of
directors and all committees.

Section 2.04. EXECUTION AND DELIVERY.  This Agreement has been duly executed and
delivered  by each  Shareholder  and each  constitutes  the  valid  and  binding
agreement of each Shareholder enforceable against such Shareholder in accordance
with its terms.

Section 2.05. CONSENTS AND APPROVALS. The execution, delivery and performance of
this Agreement and the consummation of the transactions  contemplated hereby and
thereby in accordance  with the terms and  conditions  hereof and thereof do not
require any  Shareholder  to obtain any consent,  approval or action of, or make
any filing with or give any notice to, any person or entity.

Section 2.06. NO CONFLICT.  The execution,  delivery and  performance of each of
this Agreement and the consummation of the transactions  contemplated hereby and
thereby in accordance with the terms and conditions  hereof and thereof will not
(a) violate any  provisions  of the  Certificate  of  Incorporation,  By-laws or
organizational document of the Company; (b) violate,  conflict with or result in
any  modification of the effect of, otherwise give any other  contracting  party

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the right to terminate,  or constitute (or with notice or lapse of time or both,
constitute)  a default  under,  and  contract  to which any  Shareholder  or the
Company  is a party  to by or to which  any of them or any of  their  respective
assets or properties may be bound or subject;  (c) violate any order,  judgment,
injunction,  award  or  decree  of any  court,  arbitrator  or  governmental  or
regulatory  body against,  or binding upon or any  agreement  with, or condition
imposed by, any  governmental or regulatory body,  foreign or domestic,  binding
upon any  Shareholder  or the  Company or upon the Shares or the  properties  or
business of the  Company;  (d) violate any  statute,  law or  regulation  of any
jurisdiction  as such statute,  law or regulation  relates to any Shareholder or
the Company;  or (e) result in the breach of any of the terms or conditions  of,
constitute a default under, or otherwise cause an impairment of, any permit.

Section  2.07.  TITLE  TO  STOCK.  Each  Shareholder  has  valid  title to their
respective  portion of the Shares  free and clear of all liens or  encumbrances,
including,  without  limitation,  any community property claim. Upon delivery of
the Shares to be made on the Closing,  Buyer shall  acquire good and  marketable
title thereto,  free and clear of any lien, including,  without limitation,  any
community property claim.

Section 2.08.  OPTIONS OR OTHER  RIGHTS.  (a) There are no  outstanding  rights,
subscriptions,  warrants, calls, preemptive rights, options,  contracts or other
agreements of any kind to purchase or otherwise to receive from any  Shareholder
or from the Company any of the  outstanding,  unauthorized or treasury shares of
the Shares;  and (b) there is no  outstanding  security of any kind  convertible
into any security of the Company, and, there is no outstanding contract or other
agreement to purchase, redeem or otherwise acquire any of the Shares.

Section 2.09. MATERIAL INFORMATION.  This Agreement, the financial statements of
the Company and all other information provided in writing by the Shareholders or
the  Company  or  representatives  thereof  to Buyer,  taken as a whole,  do not
contain any untrue statement of a material fact or omit to state a material fact
necessary  to make any  statement  contained  herein or therein not  misleading.
There are no facts or  conditions,  which  have not been  disclosed  to Buyer in
writing which,  individually or in the aggregate,  could have a material adverse
effect on Buyer or a material  adverse effect on the ability of any  Shareholder
to perform any of his or her obligations pursuant to this Agreement.

Section 2.10.  FINANCIAL  STATEMENTS.  The Company has or will have prior to the
Closing  furnished to Buyer certain  financial  statements of the Company as set
forth in  Section  4.11  hereof  (the  "Financial  Statements").  The  Financial
Statements  shall be true,  correct and  complete in all  material  respects and
fairly  present the  financial  condition  of the Company and the results of its
operations  for the period then ended and shall be prepared in  conformity  with
U.S. generally accepted accounting principles applied on a consistent basis.

Section  2.11.  ABSENCE  OF  CERTAIN  CHANGES.  Since the date of the  Financial
Statements,  there has been no event,  change or development  which could have a
material adverse effect on the Company.

Section 2.12. UNDISCLOSED  LIABILITIES.  Except as reflected or reserved against
in the Financial  Statements,  as of and for the period reflected  therein,  the
Company was not on that date subject to, and since that date the Company has not
incurred, any direct or indirect indebtedness,  liability,  claim, loss, damage,
deficiency, obligation or responsibility,  fixed or unfixed, choate or inchoate,
liquidated or un liquidated, secured or unsecured, accrued, absolute, contingent
or otherwise,  of a kind required by generally accepted accounting principles to

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be reflected or reserved against on a financial statement ("Liabilities"), which
individually or in the aggregate exceeds $10,000.

Section  2.13.  OPERATIONS  OF THE  COMPANY.  Except  as  contemplated  by  this
Agreement,  since the date of the Financial Statements, the Company has not: (a)
amended its  Certificate of  Incorporation  or By-laws or merged with or into or
consolidated  with  any  other  person  or  entity,  subdivided  or in  any  way
reclassified  any shares of its capital  stock or changed or agreed to change in
any manner the rights of its  outstanding  capital stock or the character of its
business; (b) issued,  reserved for issuance,  sold or redeemed,  repurchased or
otherwise acquired, or issued options or rights to subscribe to, or entered into
any contract or  commitment  to issue,  sell or redeem,  repurchase or otherwise
acquire,  any shares of its capital  stock or any bonds,  notes,  debentures  or
other evidence or indebtedness; (c) incurred any indebtedness for borrowed money
or incurred or assumed any other  liability in excess of $10,000 in any one case
(or, in the  aggregate,  in the case of any related  series of  occurrences)  or
$25,000 in the aggregate; (d) declared or paid any dividends or declared or made
any other distributions of any kind to its stockholders;  (e) made any change in
its  accounting  methods  or  practices  or made any change in  depreciation  or
amortization  policies,   except  as  required  by  law  or  generally  accepted
accounting  principles;  (f) made any loan or advance to any of its stockholders
or to any of its directors, officers or employees,  consultants, agents or other
representatives,  or made  any  other  loan or  advance,  otherwise  than in the
ordinary  course of  business;  (g) entered into any lease (as lessor or lessee)
under which the Company is  obligated to make or would  receive  payments in any
one year of $10,000 or more;  sold,  abandoned or made any other  disposition of
any of its  assets or  properties;  granted or  suffered  any lien on any of its
assets or  properties;  entered  into or amended any  contracts to which it is a
party,  or by or to which it or its assets or  properties  are bound or subject;
(h) made any acquisition of all or a substantial part of the assets, properties,
securities  or business  of any other  person or entity;  (i) paid,  directly or
indirectly,  any of its  material  liabilities  before  the same  became  due in
accordance  with its terms or otherwise than in the ordinary course of business;
(j)  terminated or failed to renew,  or received any written threat (that was no
subsequently  withdrawn) to terminate or fail to renew,  any contract that is or
was  material  to  the  assets,  liabilities,  business,  property,  operations,
prospects,  results of  operations  or condition  (financial or otherwise of the
Company);  or (k)  entered  into any other  contract or other  transaction  that
materially increases the Liabilities of the Company.

Section  2.14  COMPLIANCE  WITH LAWS.  The  Company is not in  violation  of any
applicable order, judgment,  injunction,  award or decree nor is it in violation
of any Federal, provincial, state, local or foreign law, ordinance or regulation
or any other  requirement  of any  governmental  or  regulatory  body,  court or
arbitrator,  other than those violations which, in the aggregate, would not have
a  material  adverse  effect  on  the  Company,  neither  the  Company  nor  any
Shareholder has received written notice that any violation is being alleged.

Section  2.15.  ACTIONS  AND  PROCEEDINGS.  There  are  no  outstanding  orders,
judgments,  injunctions,  awards  or  decrees  of  any  court,  governmental  or
regulatory  body or arbitration  tribunal  against or involving the Company,  or
against or involving any of the Shares. There are no actions, suits or claims or
legal, regulatory,  administrative or arbitration proceedings pending or, to the
knowledge  of  any of the  Shareholders  threatened  against  or  involving  the
Company.

                                       4

<PAGE>

Section  2.16.  CONTRACTS.  (a)  Schedule  2.16 sets forth all of the  contracts
hereinafter in this Section 2.16 referred to, to which the Company is a party or
by or to which the Company or its assets or properties are bound or subject:

         (i)    Contracts  with  any  current  or  former   officer,   director,
                employee,  consultant, agent or other representative having more
                than three months to run from the date hereof or  providing  for
                an obligation to pay and/or  accrue  compensation  of $10,000 or
                more per annum,  or  providing  for the payment of fees or other
                consideration  in  excess of  $10,000  in the  aggregate  to any
                officer or director of the  Company,  or to any other  entity in
                which the Company has an interest;
         (ii)   Contracts for the purchase or sale of equipment or services that
                contain an escalation,  renegotiation or predetermination clause
                or that can be cancelled without  liability,  premium or penalty
                only on ninety days' or more notice;
         (iii)  Contract for the sale of any of its assets or  properties or for
                the grant to any person of any  preferential  rights to purchase
                any of its or their assets or properties;
         (iv)   Contracts  (including with limitation,  leases of real property)
                calling for an aggregate  purchase  price or payments in any one
                year of more than $10,000 in any one case (or in the  aggregate,
                in the case of any related series of contracts);
         (v)    Contracts  relating  to the  acquisition  by the  Company of any
                operating  business  of,  or the  disposition  of any  operating
                business by, any other person;
         (vi)   executor Contracts relating to the disposition or acquisition of
                any investment or of any interest in any person; (vii) Contracts
                under which it agrees to indemnify any party,  other than in the
                ordinary  course  of  business  or in  amounts  not in excess of
                $10,000, or to share tax liability of any party;
         (viii) Contracts  containing covenants of the Company not to compete in
                any line of business or with any person in any geographical area
                or covenants of any other person not to compete with in any line
                of business or in any geographical area;
         (ix)   Contracts relating to the making of any loan by the Company;
         (x)    Contracts  relating to the  borrowing of money by the Company or
                the direct or indirect guaranty by the Company of any obligation
                for, or an agreement by the Company to service, the repayment of
                borrowed money, or any other  contingent  obligations in respect
                of  indebtedness  of  any  other  person,   including,   without
                limitation,  (a) any  contract  relating to the  maintenance  of
                balances,  (b) any contract with respect to lines of credit, (c)
                any  contract  to  advance or supply  funds to any other  person
                other than in the ordinary course of business,  (d) any contract
                to pay for  property,  products or services of any other  person
                even if such  property,  products or services are not  conveyed,
                delivered  or  rendered,   (e)  any  keep-well,   make-whole  or
                maintenance of working capital or earnings or similar  contract,
                or (f) any guaranty  with respect to any lease or other  similar
                periodic payments to be made by any other person;
         (xi)   Contracts  for or relating  to  computers,  computer  equipment,
                computer  software  or  computer  services;  and (xii) any other
                material  contract whether or not made in the ordinary course of
                business.

         (b) There have been delivered or made available to Buyer true,  correct
and  complete  copies of each of the  contracts.  Each such  contract  is valid,
subsisting,  in full force and effect and binding  upon the  parties  thereto in

                                       5

<PAGE>

accordance  with its terms,  and neither  the  Company nor any of the  Company's
other affiliates,  as the case may be, is in default in any respect under any of
them.

Section 2.17 INTELLECTUAL PROPERTY. All patents and other intellectual property,
including all inventions,  designs,  models,  processes,  and  applications  for
patents  owned or used by the Company or in which or to which it has any rights,
licenses  or  immunities  are  described  and set forth  with  particularity  in
Schedule 2.17 along with  information as to the Company's  ownership  thereof or
licenses,  rights or immunities therein and registrations  thereof.  The Company
has not infringed on,  misappropriated  or otherwise  conflicted with and is not
now infringing on,  misappropriating or otherwise conflicting with any patent or
other intellectual  property right belonging to any person. The Company is not a
party to any license agreement or arrangement,  whether or licensee, licensor or
otherwise,  with  respect to any  patent,  application  for  patent,  invention,
design, model, process,  trade secret or formula not set forth in Schedule 2.17.
To the Shareholders'  knowledge,  the Company has the right and authority to use
all patents,  applications for patents,  inventions,  trade secrets,  processes,
models,  designs,  formulas  and  other  intellectual  property  rights  as  are
necessary  to enable it to conduct  and to continue to conduct all phases of the
Company's  business in the manner presently  conducted and such use does not and
will not conflict with, infringe on or misappropriate any patent or other rights
of any person.

Section 2.18.  LIENS.  The Company has marketable title to all of its assets and
properties free and clear of any lien.

Section 2.19. OFFICERS,  DIRECTORS AND KEY EMPLOYEES.  The Company does not have
any  contract or agreement  with any of its  officers,  directors,  employees or
consultants whose annual salary equals or exceeds $25,000 or who received or has
accrued in respect of such period a bonus  equal to or in excess of $5,000;  and
the Company does not have any  commitments or contracts to increase the wages or
to modify the  condition or terms of  employment  or  consultancy  of any of the
employees or  consultants  of the Company,  including the aggregate  cost to the
Company of all such commitments or contracts.

Section 2.20.  BROKERAGE.  No brokerage  fees are to be paid in relation to this
transaction.

                                   ARTICLE III
                     REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to the Shareholders as follows:

Section  3.01.  ORGANIZATION,  STANDING  AND  AUTHORITY  OF  BUYER.  Buyer  is a
corporation duly organized, validly existing and in good standing under the laws
of the State of New York and has all requisite  corporate power and authority to
own or lease its  assets as now owned or leased by it and to  otherwise  conduct
its business.  All corporate proceedings required by law or by the provisions of
this Agreement to be taken by Buyer on or before the Closing in connection  with
the  execution  and  delivery  of this  Agreement  and the  consummation  of the
transactions  contemplated  by this  Agreement  have  been  or will be duly  and
validly taken.

                                       6

<PAGE>

Section 3.02.  EXECUTION AND DELIVERY.  This Agreement has been duly authorized,
executed and delivered by Buyer and constitutes the valid and binding  agreement
of Buyer enforceable against Buyer in accordance with its terms.

Section 3.03. CONSENTS AND APPROVALS. The execution, delivery and performance by
Buyer of this  Agreement  and the  consummation  by  Buyer  of the  transactions
contemplated  hereby do not  require  Buyer to obtain any  consent,  approval or
action of, or make any filing with or give any notice to, any person.

Section 3.04.  NO CONFLICT.  The  execution,  delivery and  performance  of this
Agreement  and the  consummation  of the  transactions  contemplated  hereby  in
accordance  with the terms and  conditions  hereof  will not:  (a)  violate  any
provision of the Certificate of Incorporation,  By-laws or other  organizational
document of Buyer; (b) violate,  conflict with or result in the breach of any of
the terms of, result in any  modification  of the effect of,  otherwise give any
other contracting party the right to terminate, or constitute (or with notice or
lapse of time or both  constitute) a default under,  any contract to which Buyer
is a party or by or to which its assets or  properties  may be bound or subject;
(c)  violate  any  order,  judgment,  injunction,  award or decree of any court,
arbitrator or governmental  or regulatory body against,  or binding upon, or any
agreement with, or condition  imposed by, any  governmental or regulatory  body,
foreign  or  domestic,  binding  upon  Buyer or upon the  securities,  assets or
business  of  Buyer;  or (d)  violate  any  statute,  law or  regulation  of any
jurisdiction  as such  statute,  law or  regulation  relates  to Buyer or to the
securities, properties or business of Buyer.

Section  3.05.  CAPITALIZATION.  The capital of Buyer is as set forth in Buyer's
public securities laws filings.

Section 3.06. BROKERAGE.  No broker or finder has acted, directly or indirectly,
for Buyer, nor has Buyer incurred any obligation to pay any brokerage,  finder's
fee or other commission in connection with the transactions contemplated by this
Agreement.

Section 3.07.  CERTIFICATE OF  INCORPORATION  AND BY-LAWS.  Buyer has heretofore
delivered to the Company and the Shareholders  true, correct and complete copies
of the  Certificate of  Incorporation  and By-laws or comparable  instruments of
Buyer.

Section 3.08.  STATUS OF BUYER SHARES.  Upon  consummation  of the  transactions
contemplated  by  this  Agreement,   the  Buyer  Shares  to  be  issued  to  the
Shareholders,  when  issued  and  delivered,  will be free of any and all liens,
claims or encumbrances.

Section 3.09 NO BANKRUPTCY.  Neither Buyer nor its assets are the subject of any
proceeding involving either a voluntary or an involuntary bankruptcy, insolvency
or receivership.

Section 3.10 CONTRACTS AND COMMITMENTS.  All agreements which materially  affect
Buyer to which  Buyer is a party  or by which  Buyer or any of its  property  is
bound  which  exist as of the date of  execution  of this  Agreement  have  been
reviewed by the parties and Buyer is not in default with respect to any material
term or condition of any such contract, nor has any event occurred which through
the passage of time or the giving of notice, or both, would constitute a default
hereunder.

                                       7

<PAGE>

Section 3.11 COMPLIANCE  WITH LAWS. To its knowledge,  Buyer is not in violation
of any  applicable  order,  judgment,  injunction,  award or decree nor is it in
violation of any Federal,  state,  local or foreign law, ordinance or regulation
or any other  requirement  of any  governmental  or  regulatory  body,  court or
arbitrator,  other than those violations which, in the aggregate, would not have
a material  adverse  effect on Buyer and Buyer has not received  written  notice
that any violation is being alleged.

Section 3.12 STOP TRADE ORDERS. To Buyer's knowledge,  there are no pending, and
there have never been any, stop trade orders issued  against Buyer or any of its
directors  or officers  or those of any  affiliates  of Buyer by any  securities
regulatory authority in the United States.

Section  3.13  REGULATORY  INVESTIGATIONS.  To Buyer's  knowledge,  there are no
investigations  or inquiries  pending against Buyer or its directors or officers
by any stock exchange,  securities regulatory authority, taxing authority or any
other governmental department or agency.

Section  3.14  CORPORATE  RECORDS.  All of the minute  books and  corporate  and
financial  records of Buyer are, or prior to the Closing will be made  available
for  review.   In  the  event  of  the  absence  of  a  complete   minute  book,
representation and warranty by the board of directors shall take precedence over
the minute book and shall be incorporated to the minute book.

                                   ARTICLE IV
                            COVENANTS AND AGREEMENTS

The Shareholders, the Company and Buyer covenant and agree as follows:

Section 4.01. CORPORATE  EXAMINATIONS AND INVESTIGATIONS.  Prior to the Closing,
Buyer shall be entitled, through its employees and representatives, to make such
investigation of the assets, liabilities, properties, business and operations of
the Company, and such examination of the books, records, tax returns, results of
operations  and financial  condition of the Company,  as Buyer wishes.  Any such
investigation  and examination  shall be conducted at reasonable times and under
reasonable  circumstances and the Shareholders and the Company and the employees
and representatives of Buyer,  including without  limitation,  their counsel and
independent public accountants,  shall cooperate fully with such representatives
in connection with such review and examination.

Section  4.02.  FURTHER  ASSURANCES.  Each of the  parties  shall  execute  such
documents  and other papers and take such further  actions as may be  reasonably
required or desirable to carry out the  provisions  hereof and the  transactions
contemplated  hereby.  Each such party shall use its best  efforts to fulfill or
obtain  the  fulfillment  of  the  conditions  to the  Closing  as  promptly  as
practicable.

Section 4.03.  DELIVERY OF FINANCIAL  STATEMENTS.  (a) On or before the Closing,
the  Shareholders  shall cause the Company to provide  the  following  financial
statements to Buyer,  which shall  collectively be referred to as the "Financial
Statements".

         (i)  Unaudited  balance  sheets  as of the end of each of the two  most
         recent  fiscal years or such shorter  period as the Company  (including
         its predecessors) has been in existence;

                                       8

<PAGE>

         (ii) Unaudited statements of income and cash flow for each of the three
         fiscal years preceding the date of the unaudited balance sheet referred
         to in (1) above or such shorter  period as the Company  (including  its
         predecessors) has been in existence;

(b) The unaudited  financial  statements referred to in (a)(i) and (a)(ii) above
shall be prepared by an independent  certified public accountants or independent
chartered  accountants that have been duly registered and in good standing.  The
interim  financial  statements  referred to in (a)(iii) and (a)(vi) above may be
unaudited.

Section 4.04 PUBLIC  ANNOUNCEMENTS.  Except as required by any  applicable  law,
rule or regulation, prior to the Closing, the Company shall not issue nor permit
to be issued any press release or otherwise make or permit to be made any public
statement  with  respect  to the  transactions  contemplated  by this  Agreement
without the prior written consent of Buyer.

                                    ARTICLE V
            CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO CLOSE

The  obligation  of Buyer to enter into and complete the Closing is subject,  at
Buyer's  option acting in accordance  with the provisions of this Agreement with
respect to the termination hereof, to the fulfillment on or prior to the Closing
of the  following  conditions,  any one or more of which may be waived by it, to
the extent permitted by law.

Section 5.01.  REPRESENTATIONS AND COVENANTS. The representations and warranties
of the Shareholders contained in this Agreement shall be true and correct on and
as of the Closing with the same force and effect as though made on and as of the
Closing, except that any of such representations and warranties that are give as
of a particular  date and relate solely to a particular  date or period shall be
true as of such date or  period.  The  Shareholders  shall  have  performed  and
complied  with all  covenants and  agreements  required by this  Agreement to be
performed or complied with by them on or prior to the Closing.  The Shareholders
shall have  delivered to Buyer a  certificate  dated the Closing,  and signed by
each Shareholder to the foregoing effect.

Section 5.02. GOVERNMENTAL PERMITS AND APPROVALS. All approvals, authorizations,
consents,  permits and licenses from governmental and regulatory bodies required
for the  transactions  contemplated by this Agreement and to permit the business
currently  carried on by the Company to continue to be carried on by the Company
substantially  in the same manner  immediately  following the Closing shall have
been  obtained and shall be in full force and effect and without  conditions  or
limitations  reasonably  unacceptable  to  Buyer,  and  Buyer  shall  have  been
furnished  with  appropriate  evidence,  reasonably  satisfactory  to it and its
counsel, of the granting of such approvals,  authorizations,  consents,  permits
and  licenses.  There  shall  not have  been  any  action  taken  by any  court,
governmental  or  regulatory  body then  prohibiting  or making  illegal  on the
Closing the transactions contemplated by this Agreement.

Section 5.03.  THIRD PARTY  CONSENTS.  All consents,  permits and approvals from
parties to contracts with the Company that may be required in  connections  with
the performance by the Shareholders of their obligations under this Agreement or

                                       9

<PAGE>

the  continuance  of such  contracts  with the  Company in full force and effect
after the Closing shall have been obtained.

Section  5.04.  LITIGATION.  No  action,  suit or  proceeding  shall  have  been
instituted and be continuing or be threatened by any person to restrain,  modify
or prevent the carrying out of the transactions  contemplated hereby, or to seek
damages  in  connection  with  such  transactions,  or that has or could  have a
material adverse effect on the Company.

Section 5.05 NO CHANGE IN CAPITALIZATION.  On the Closing, the capitalization of
the Company shall be as represented in Section 2.02.

Section 5.06. BOARD AND SHAREHOLDER APPROVAL.  Prior to the Closing, the Company
will obtain from its Board of Directors  and the  Shareholders  approval of this
Agreement and the transactions contemplated hereby.

                                   ARTICLE VI
                    CONDITIONS PRECEDENT TO THE OBLIGATION OF
                            THE SHAREHOLDERS TO CLOSE

The  obligation  of the  Shareholders  to enter into and complete the Closing is
subject, at the Shareholder's option acting in accordance with the provisions of
this Agreement with respect to the termination  hereof, to the fulfillment on or
prior to the Closing of the following  conditions,  any one or more of which may
be waived by it, to the extent permitted by law.

Section 6.01.  REPRESENTATIONS AND COVENANTS. The representations and warranties
of Buyer  contained in this Agreement shall be true and correct on and as of the
Closing  with the same force and effect as though made on and as of the Closing,
except that any of such  representations  and  warranties  that are give as of a
particular  date and relate solely to a particular  date or period shall be true
as of such date or period.  Buyer shall have  performed  and  complied  with all
covenants and agreements  required by this Agreement to be performed or complied
with by them on or prior to the  Closing.  Buyer  shall  have  delivered  to the
Shareholders  a  certificate  dated the  Closing,  and signed by an  appropriate
officer of Buyer to the foregoing effect.

Section 6.02. NO CHANGE IN CAPITALIZATION. On the Closing, the capitalization of
Buyer shall be as represented in Section 3.05 hereof.

Section 6.03. FILING OF PERIODIC  REPORTS.  Buyer is current with respect to the
filings required to be made by Buyer pursuant to the Securities  Exchange Act of
1934 and the rules and  regulations of promulgated  thereunder and the rules and
regulations of the Securities and Exchange Commission.

Section 6.04. QUOTATION ON OVER-THE-COUNTER  BULLETIN BOARD. Buyer is trading on
the Over-the-Counter Bulletin Board under the ticker symbol NXXN.OB.

Section  6.05.  BOARD  APPROVAL.  Prior to the  Closing,  Buyer shall obtain the
approval  of its  Board of  Directors  of this  Agreement  and the  transactions
contemplated hereby.

                                       10

<PAGE>

                                   ARTICLE VII
                          SURVIVAL AND INDEMNIFICATION

Section 7.01  INDEMNIFICATION  BY SHAREHOLDERS.  The  Shareholders,  jointly and
severally,  will indemnify  Buyer,  its affiliates and each of their  respective
officers,  directors,  employees,   stockholders,   agents  and  representatives
against,  and hold them harmless from,  any loss,  liability,  claim,  damage or
expense  (including  reasonable legal fees and expenses) suffered or incurred by
any such  indemnified  party to the  extent  arising  from (i) any breach of any
representation  or  warranty  of the  Company or any of the  Shareholders  which
survives the Closing,  and (ii) any breach of any covenant of the Company and/or
the Shareholders  contained in this Agreement which requires  performance  after
the Closing Date.

Section 7.02  INDEMNIFICATION  BY BUYER.  Buyer will indemnify the Shareholders,
and each of their agents and  representatives  against,  and hold them  harmless
from, any loss, liability,  claim, damage or expense (including reasonable legal
fees and  expenses)  suffered or incurred by any such  indemnified  party to the
extent  arising from (i) any breach of any  representation  or warranty of Buyer
which  survives  the  Closing,  and (ii) any  breach  of any  covenant  of Buyer
contained in this Agreement which requires  performance  after the Closing Date;
provided,  however,  that Buyer shall not have any  liability  under  clause (i)
above  unless the  aggregate  of all  losses,  liabilities,  costs and  expenses
relating thereto for which Buyer would but for this proviso be liable exceeds on
a cumulative  basis an amount equal to $5,000,  and provided  further,  however,
that Buyer's liability shall in no event exceed the Purchase Price.

Section 7.03  LIMITATIONS OF LIABILITY;  COOPERATION.  (a)  Notwithstanding  any
provision herein, none of the parties hereto shall in any event be liable to the
other parties to this Agreement or to such other parties' affiliates,  officers,
directors, employees,  stockholders, agents or representatives on account of any
indemnity   obligation   set  forth  in  this  Article  VII  for  any  indirect,
consequential,  special,  incidental  or punitive  damages  (including,  but not
limited to, lost profits, loss of use, damage to goodwill or loss of business).

         (b) The  parties  hereto  acknowledge  and agree  that  their  sole and
exclusive  remedy with respect to any and all claims relating to this Agreement,
the transactions  contemplated  hereby, and the Assets (other than claims of, or
causes of action arising from,  fraud) shall be pursuant to the  indemnification
provisions set forth in this Article VII. In  furtherance of the foregoing,  the
parties hereto hereby waive,  from and after the Closing,  to the fullest extend
permitted under applicable Law, any and all rights,  claims and causes of action
(other than claims of, or causes of action  arising  from,  fraud)  which it may
have  against  any of the other  parties  hereto  and such  parties'  affiliates
arising under or based upon any federal,  state, local or foreign statute,  law,
ordinance,   rule  or   regulation   or  otherwise   (except   pursuant  to  the
indemnification provisions set forth in this Article VII).

         (c) The  parties  shall  cooperate  with each  other  with  respect  to
resolving any claim or liability with respect to which one party is obligated to
indemnify the other party hereunder including by making commercially  reasonable
efforts to mitigate or resolve any such claim or liability.

                                       11

<PAGE>

Section 7.04  TERMINATION OF  INDEMNIFICATION.  The obligations to indemnify and
hold harmless a party hereto (a) pursuant to Sections  7.01(i) or 7.02(ii) (i.e.
on  account  of a breach  of a  representation  or  warranty),  shall  terminate
eighteen  (18)  months  after the date  hereof;  provided,  however  that  those
pursuant to Section 2.07 and 3.08 shall survive  indefinitely,  and (b) pursuant
to any other  clause(s) of Section 7.01 or 7.02 shall not  terminate;  provided,
however,  that as to  clause  (a) of  this  Section  7.04,  such  obligation  to
indemnify and hold harmless  shall not terminate  with respect to any item as to
which the person to be  indemnified  or the related  party  thereto  shall have,
before the  expiration  of the  applicable  period,  previously  made a claim by
delivering  a notice of such claim  (stating in  reasonable  detail the basis of
such claim to the indemnifying party).

                                  ARTICLE VIII
                                  MISCELLANEOUS

Section 8.01  TIMING.  Time is of the essence of this  Agreement  and each party
hereto agrees and covenants to use their reasonably best efforts to complete the
transactions contemplated hereby in a timely manner.

Section 8.02 ADDITIONAL DOCUMENTATION. The parties will execute and deliver such
further  documents  and  instruments  and do all such acts and  things as may be
reasonably  necessary  or  requisite to carry out the full intent and meaning of
this Agreement and to effect the transactions contemplated by this Agreement.

Section 8.03 MERGER;  ASSIGNMENT.  This  Agreement  (a)  constitutes  the entire
agreement and supersedes all prior agreements and  understandings,  both written
and oral,  among the parties with respect to the subject matter  hereof;  (b) is
not intended to confer upon any other persons any rights or remedies  hereunder,
except as hereinafter  provided;  (c) shall be binding on the parties hereto and
their  respective   permitted  heirs,   executors,   personal   representatives,
successors and assigns,  provided that this Agreement may not be assigned by any
party hereto without the prior written consent of all parties to this Agreement.

Section  8.04  EXECUTION  IN  COUNTERPARTS.  This  Agreement  may be executed in
several counterparts,  each of which will be deemed to be an original and all of
which will together constitute one and the same instrument,  and may be executed
via facsimile transmission or electronic signature,  and facsimile transmissions
and of signed Agreements or electronic signatures shall be regarded and accepted
as if they bore original signatures.

Section  8.05  EXPENSES.  Each party  will pay its legal  expenses  incurred  in
connection  with  the  transactions  contemplated  hereby,  whether  or not such
transactions are consummated.

Section 8.06 GOVERNING  LAW. This Agreement  shall be governed by, and construed
in  accordance  with,  the laws of the  State of  Delaware,  without  regard  to
principles of conflicts of law.

                            [signature page follows]

                                       12

<PAGE>

IN WITNESS WHEREOF the parties hereto have set their hand and seal as of the day
and year first above written.

                                           INOVET, LTD

Date: September 17, 2009                   By: /s/ GARY BETHOLD
                                           _____________________________________

                                           Title: PRESIDENT
                                           _____________________________________

Date: September 17, 2009                   /s/ GARY BETHOLD
                                           _____________________________________
                                               Gary Berthold

Date: September 17, 2009                   /s/ SHARON BERTHOLD
                                           _____________________________________

                                               Sharon Berthold

                                           INOLIFE TECHNOLOGIES, INC.

Date: September 17, 2009                   By: /s/ GARY BERTHOLD
                                           _____________________________________

                                           Title: PRESIDENT/CEO
                                           _____________________________________

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