Document:

BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

                            ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement  ("Agreement") is made and entered into as of this
8th day of January 2007, by and between Interactive Media Technologies,  Inc., a
Florida corporation (the "Buyer"),  and BestNet  Communications  Corp., a Nevada
corporation (the "Seller"). The parties have agreed as follows.

                                   1. RECITALS

1.1 BUSINESS.

Seller,  among other things,  owns and operates a business  that sells  internet
telephone  services to customers  (the  "Business").  Seller  desires to sell to
Buyer and Buyer desires to purchase from Seller certain of Seller's  assets used
primarily in or relating primarily to the Business (as described herein), and to
assume certain specified liabilities, under the terms and conditions hereinafter
set forth.  Buyer owns and operates,  through several wholly and partially owned
subsidiaries,  a number of telephone  service  businesses  and has  expertise in
evaluating, acquiring and operating such businesses.

1.2 BUYER'S INQUIRIES.

Prior to entering  into this  Agreement,  Buyer had full access to the personnel
and  equipment  of the  Business  and has  satisfied  itself as to the assets it
desires  to acquire  from  Seller,  the  liabilities  it wishes to  assume,  the
Seller's customer lists and the feasibility of converting the Seller's customers
to  the  Buyer's   telephone   operating  systems  and  acquiring  the  goodwill
represented by such customers.

1.3 DEFINITIONS

(a) "Assets"  shall mean all of the right,  title and  interest  that the Seller
possesses and has the right to transfer in and to all of the following described
properties,  assets and rights used or useful in connection with the Business as
the same shall exist on the Closing Date:

     (i) all of the right, title and interest of Seller in and to all furniture,
fixtures and equipment listed on Schedule 1.3(a)(i) attached hereto;

     (ii) all intangible assets other than accounts receivable primarily used in
or  relating  to  the  Business,   wheresoever   situated  and  whether  or  not
specifically  referred to herein or in any  instrument of  conveyance  delivered
pursuant  hereto,  and  whether  or not any of such  assets  have any  value for
accounting  purposes or are carried or reflected on or referred to in any of the
books or  financial  statements  of Seller,  excluding,  however,  any rights of
Seller  under a certain  License  Agreement  between  the  Seller  and  Softalk,
Inc.(the  "Softalk  License"),  a copy of which is  attached  hereto as  Exhibit
1.3(a)(ii),  and any sums of money that Seller has deposited  with  suppliers or
other parties ("Deposits");

                                       1

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

     (iii)  all of  Seller's  rights  and  interests  in, to and under the Agent
Agreements listed and described on Schedule 1.3 (a)(iii)(A)  attached hereto and
Lease  Contracts  listed and  described  on Schedule  1.3  (a)(iii)(B)  attached
hereto,;

     (iv) Customer Information History

     (v) the  Seller's  telephone  numbers and  internet  domain names listed on
Schedule 1.3(a)(iv) used in connection with the Business; and

     (vi) all goodwill associated with the Business.

(b) "Assumed  Liabilities"  shall mean all obligations of Seller under the Agent
Agreements,  and Lease Contracts that are validly assigned to Buyer, which arise
after or are to be performed on and after the Closing Date;

(c) "Customer  Information History" shall mean the complete customer transaction
history,  software  developments,   trade  secrets,  customer  lists,  marketing
materials,  billing and collection  records,  and all other intangible  personal
property  rights of the Seller  which  primarily  relate to the  Business or the
Assets of the  Business;  excluding,  however,  any  rights of Seller  under the
Softalk License.

(e)  "Close"  or  "Closing"  shall  mean the  consummation  of the  transactions
contemplated hereby.

(f)  "Switchover  Date" shall mean  January 31, 2007,  at 11:59 p.m.  After this
date,  all revenues  associated  with the Business will accrue to the benefit of
the Buyer and Buyer will be responsible for all liabilities  associated with the
Business.

(g) "Closing  Date" shall mean February 15, 2007, at 10:00 a.m., or as otherwise
described  herein or agreed to by the parties to this Agreement,  at the offices
of Firetag,  Stoss & Dowdell, P.C., 1747 East Morten Avenue, Suite 107, Phoenix,
Arizona 85020.

(h)   "Contracts"   shall  mean  all  contracts,   agreements,   understandings,
indentures,  notes, bonds, loans,  instruments,  leases,  subleases,  mortgages,
franchises,  licenses, commitments or binding arrangements,  express or implied,
oral or written, whether or not enforceable, that are related exclusively to the
Business;  excluding, however, the Seller's rights or interest under the Softalk
License.

(i) "Purchase Price" shall have the meaning set forth in Section 2.3, below.

(j) "Tax" shall mean any federal, state, local or foreign income, gross receipt,
license, payroll,  employment,  excise, severance,  stamp, occupation,  premium,
windfall  profits,  environmental,  custom  duties,  capital  stock,  franchise,
profits, withholding,  social security (or similar),  unemployment,  disability,
real property,  personal  property,  sales, use, transfer,  registration,  value
added,  alternative  or  add-on  minimum,  estimated,  or other  tax of any kind
whatsoever,  including  any  interest,  penalty,  or addition  thereto,  whether
disputed or not.

(k) "Tax Return" shall mean any return,  declaration,  report, claim for refund,
information  return or statement  relating to taxes,  including  any schedule or
attachment thereto, and including any amendment thereof.

                                       2

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

                 2. PURCHASE AND SALE; ASSUMPTION OF LIABILITIES

2.1 PURCHASED ASSETS.

Seller agrees to sell,  assign,  transfer and deliver to Buyer, and Buyer agrees
to purchase  from Seller,  on the Closing Date (as defined in section 4 hereof),
all of the right,  title and interest of Seller in and to all of the Assets,  as
defined above, free and clear of all security interests, liens, claims and other
encumbrances. The Assets are being sold on an "AS IS; WHERE IS" basis. EXCEPT AS
OTHERWISE SPECIFICALLY STATED IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATIONS
OR WARRANTIES  WHATSOEVER WITH RESPECT TO ANY OF THE ASSETS. All tangible Assets
are being sold f.o.b. present location.

2.2 ASSUMPTION OF LIABILITIES.

Buyer and Seller  agree that Buyer shall not assume,  nor shall Buyer in any way
be responsible for, any liability, obligation, claim or commitment,  contingent,
actual or otherwise,  known or unknown, of Seller, it being expressly understood
and  agreed  that  Seller  shall  continue  to be  responsible  for  any and all
liabilities,  obligations,  claims or  commitments  of  Seller  or the  Business
entered into on or prior to the Closing Date,  including but not limited to, any
sales, income, payroll or other taxes,  obligations to other creditors including
vendors,  employees and customers or other liabilities,  obligations,  claims or
commitments  of  the  Seller  incurred  in  connection  with  the   transactions
contemplated hereby.  Notwithstanding the preceding sentence,  Buyer agrees that
it will,  on the Closing  Date,  assume and agree to perform and  discharge  the
obligations of the Seller  arising out of the agreements and contracts  referred
to in Section 1.3(a)(iii)(B).

2.3 PURCHASE PRICE AND PAYMENT.

The purchase price (the "Purchase  Price") for the Purchased  Assets and Assumed
Liabilities  shall be equal to the sum of Sixty Thousand  Dollars  ($60,000.00),
payable as follows:

     (a)  $30,000.00  in cash upon the mutual  execution  and  delivery  of this
Agreement; and

     (b) $30,000.00 in cash upon the Closing Date.

On the Closing Date, Buyer also agrees to reimburse Seller for all expenses paid
by Seller  after the  Switchover  Date  through the Closing Date which relate to
liabilities  associated with the Business that were incurred by Seller after the
Switchover Date.

Buyer  further  understands  and agrees to pay any and all sales tax, use tax or
personal property tax due or to become due as a result of this transaction.  The
parties  shall agree on or prior to the Closing to allocate the  Purchase  Price
among the  purchased  Assets in  accordance  with  section  1060 of the Internal
Revenue Code of 1986, as amended,  and not to take any inconsistent  position on
any tax return or filing.

2.4 FAMILIARIZATION PERIOD

A familiarization  period  ("Familiarization  Period") shall commence  forthwith
upon the mutual  execution  and  delivery  of this  Agreement  and expire on the
Switchover Date. During the  Familiarization  Period,  the Buyer shall have full

                                       3

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

access to the  facilities  of the Seller for the  purpose  of  facilitating  the
seamless transfer of customers from the Seller's systems to the Buyer's systems.

2.5 CLOSING.

The Closing  ("Closing"  or  "Closing  Date") of the  transactions  contemplated
hereby shall take place at the office of Firetag,  Stoss & Dowdell,  P. C., 1740
East Morten,  Suite 107,  Phoenix,  Arizona  85020 at 10 a.m. on the 15th day of
February,  2007, or at such other place,  time or date, no later than forty-five
days after  commencement  of the  Familiarization  Period,  as shall be mutually
agreed upon by Seller and Buyer.

2.6 DELIVERIES AT CLOSING

At the Closing,

(a) Seller shall deliver to Buyer the following:

     (i)  such  bill  of  sale or  other  good  and  sufficient  instruments  of
assignment,  transfer  and  conveyance  as Buyer shall  reasonably  request,  to
transfer to Buyer all right,  title and  interest of Seller in the Assets,  free
and clear of all security interests, liens, claims and encumbrances;

     (ii) all appropriate  instruments granting to Buyer the right to the use of
all trade names and  trademarks  owned or used by Seller in connection  with the
Business;

     (iii) such other instrument or instruments of transfer, if any, as shall be
necessary or appropriate  to vest in the Buyer good and marketable  title to the
Assets;

     (iv) delivery of any required consents; and

     (v) delivery of all UCC-3  termination  statements and all other  documents
and instruments  necessary to release and discharge all liens, claims,  security
interests and other encumbrances on all Assets.

(b)  Buyer shall deliver to Seller the following:

     (i) the cash payment of $30,000 due on the Closing Date; and

     (ii) any reimbursement of expenses due to Seller pursuant to Section 2.3.

2.7 ALLOCATION OF RECEIVABLES UPON CLOSING.

The  parties  will in good faith agree upon and put into  effect  procedures  to
allocate all  receivables  generated  from an after 12:01 AM on the Closing Date
(the "Transition Time") to the Buyer and to permit the Seller to have sufficient
access to the  facilities of the Business for a reasonable  period of time after
the Closing to enable it to collect receivables  generated before the Transition
Time.  It is  understood  that  during  that  period,  the Buyer will  institute
procedures to enable it to collect  receivables  generated  after the Transition
Time. The process is defined as follows:

     1.   On the  Switchover  Date,  a report  will be  prepared  by  Seller  to
          determine the prepaid balances on all of its customer accounts.

                                       4

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

     2.   Seller  will issue a check to Buyer for all the prepaid  accounts  and
          Buyer will ensure that all prepaid  balances are correctly  applied to
          the respective customer accounts maintained by Buyer.

     3.   Seller will obtain a list of open but sold virtual prepaid cards still
          available with its agents.

     4.   Buyer will be responsible for any  chargebacks  related to the prepaid
          account balances transferred.

     5.   Seller will collect all of its receivables via invoicing or its credit
          card collection.  None of Seller's  receivables will be transferred to
          the Buyer.

     6.   The database server and credit  processing  servers will remain active
          and in  Seller's  control  until the Closing  Date to allow  Seller to
          collect all of its open receivables.

     7.   All the non-prepaid  customers  transferred to Buyer will not have any
          beginning balances.

     8.   Seller will retain its merchant accounts and close them  appropriately
          with their credit card processor.

     9.   Seller will be responsible for any future  chargebacks  related to its
          account receivable collection.

2.8 EMPLOYMENT.

Buyer agrees to continue the  employment at Seller's  Grand Rapids office of the
persons  listed in  Schedule  2.8 hereto (the "Grand  Rapids  Personnel")  for a
minimum  period  of two  months  following  the  Switchover  Date at the rate of
compensation shown therein.  The services of the contractor  personnel listed in
Schedule 2.8 other than the Grand Rapids  Personnel (the  "Canadian  Personnel")
will not be  terminated  by the Seller  prior to the Closing  Date unless  Buyer
notifies  Seller  prior  to the  Switchover  Date  that it does not  desire  the
services of the Canadian  Personnel  after the Closing Date.  Buyer  understands
that  even if it so  notifies  Seller,  it shall  nevertheless  be  required  to
reimburse Seller for the expenses of the Canadian  Personnel from the Switchover
Date through the Closing  Date. If not earlier  terminated by the Seller,  Buyer
agrees not to terminate the services of the Canadian  Personnel  without  giving
such  respective  Canadian  Personnel at least  fifteen (15) days prior  written
notice.  It is understood  and agreed that each of the Grand Rapids and Canadian
Personnel is intended to be a beneficiary of this  Agreement,  with the right to
bring an action for damages or otherwise as permitted by law and to recover,  in
addition  to any  other  damages,  their  reasonable  legal  fees  and  costs in
connection therewith.

2.9 USE OF GRAND RAPIDS PREMISES.

From the Closing Date until October 15, 2007,  the Buyer may have the use of the
Seller's  office  facilities in Grand Rapids,  Michigan,  for keeping  purchased
Assets located therein and for its customer service employees in the same manner
as Seller now uses the premises. It is understood that the Buyer will remove all
its purchased  Assets and employees  from these premises by October 15, 2007. It
is understood  that the Seller's  lease on said premises  expires on October 31,
2007. The rental for such use shall be $700.00 per month, and a pro-rated amount
for fractional  months,  payable in advance on the first day of occupancy and on
the first day of each month thereafter.

                                       5

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

             3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER.

Seller  hereby  represents  and  warrants  to,  and from and  after  this  date,
covenants with, Buyer as follows:

3.1 ORGANIZATION AND AUTHORITY.

Seller is a corporation,  duly organized, validly existing, and in good standing
under the laws of the State of Nevada and has all requisite  corporate power and
authority to carry on its business as it is presently being conducted,  to enter
into this Agreement, and to carry out and perform the transactions  contemplated
hereby. The execution,  delivery and performance of this Agreement by Seller has
been  duly  authorized  and  approved  by its Board of  Directors,  and will not
violate its Articles of Incorporation,  By-Laws, or any agreement to which it is
a party or by which it is bound or any law,  rule,  regulation  or court  order.
This  Agreement,  and all other  instruments,  documents  and  agreements  to be
delivered by Seller in connection  therewith,  are the legal,  valid and binding
obligation of Seller enforceable in accordance with its, and their, terms.

3.2 TITLE.

Seller has good and marketable title to all of the Assets, free and clear of any
liabilities, obligations, claims, security interest, liens or encumbrances.

3.3 NO MATERIAL ADVERSE CHANGE.

Since  November 30, 2006,  there has been (i) no material  adverse change in the
Business,  or its financial  condition or prospects  except as noted in Schedule
3.3 attached hereto,  and (ii) no material damage,  destruction,  loss or claim,
whether or not covered by insurance,  or condemnation or other taking  adversely
affecting in any material respect the Assets. Since November 30, 2006 the Seller
has conducted its business  only in the ordinary  course and in conformity  with
past practice.

3.4 TAXES.

Seller has timely filed all required  federal,  state,  county and local income,
excise,  withholding,  property,  sales,  use,  franchise and other tax returns,
declarations  and reports  which are  required to be filed on or before the date
hereof and has paid or reserved  for all taxes which have become due pursuant to
such returns or pursuant to any  assessment  which has become payable except for
taxes which it has contested in good faith.

3.5 LITIGATION.

Except as disclosed in the Seller's  Annual  Report on Form 10KSB for the fiscal
year  ended  August  31,  2006,  as  filed  with  the  Securities  and  Exchange
Commission,  there is no litigation or proceeding or governmental  investigation
pending or, to the knowledge of Seller, threatened against Seller or relating to
the Assets or the Business.

                                       6

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

3.6 COMPLIANCE WITH LAWS.

Since November 30, 2006,  Seller has complied in all material  respects with all
federal,  state and local laws,  statutes,  rules,  regulations,  ordinances and
codes, and has received no written notice from any governmental agency asserting
that a violation has or may have occurred.

3.7 NO DEFAULTS.

All leases,  agreements and other contracts constituting the Assumed Liabilities
are in full force and effect,  with no default or breach existing or which would
occur but for the existence of notice or the lapse of time.

3.8 EQUIPMENT.

Each item of tangible  equipment  comprising  the Assets is in working order and
repair, ordinary wear and tear excepted.

3.9 COMPLETENESS OF ASSETS.

Except for the rights of the Seller under the Softalk  License and the Deposits,
the Assets  being  transferred  hereunder  comprise  all of the assets which are
necessary  to conduct the  Business  in the manner  that it has been  previously
conducted.

3.10 SELLER'S COVENANT NOT TO COMPETE

Seller,  and  its  affiliates,  shall  not,  individually  or  as a  consultant,
shareholder, partner, venturer, director, officer, agent or otherwise, engage in
any of the following actions:

     (i) for a three (3) year period following the Closing,  solicit, call on or
contact any past (within the past 12 months) or present customers,  suppliers or
employees of Seller with respect to the Business; or

     (ii)  for a two (2)  year  period  following  the  Closing,  engage  in any
activity competitive with the Business as now conducted anywhere in the world.

In addition,  Seller shall keep and maintain all  confidential  and  proprietary
information  of Seller,  including  without  limitation,  financial  statements,
customer and supplier lists,  pricing  information,  sales and purchases margins
and  practices,  methods  of  telephone  solicitation  and  similar  information
regarding the Business  confidential  and shall not disclose such information to
any third person or exploit such information personally except as required under
law, or if such information is in the public domain.

              4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER
Buyer hereby represents and warrants,  and from and after this date covenants to
Buyer as follows:

4.1 ORGANIZATION AND AUTHORITY.

Buyer is a corporation,  duly organized,  validly existing, and in good standing
under the laws of the State of Florida and has all requisite corporate power and
authority to carry on its business as it is presently being conducted,  to enter
into this Agreement, and to carry out and perform the transactions  contemplated

                                       7

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

hereby.  The execution,  delivery and performance of this Agreement by Buyer has
been  duly  authorized  and  approved  by its Board of  Directors,  and will not
violate its Articles of Incorporation,  By-Laws, or any agreement to which it is
a party or by which it is bound or any law,  rule,  regulation  or court  order.
This  Agreement,  and all other  instruments,  documents  and  agreements  to be
delivered by Buyer in  connection  therewith,  are the legal,  valid and binding
obligation of Buyer enforceable in accordance with its, and their, terms.

4.2 RECEIPT OF INFORMATION.

Buyer  acknowledges that it has received a copy of the Seller's Annual Report on
Form 10-KSB as filed with the Securities and Exchange  Commission for the fiscal
year ended  November  30,  2006 and that Seller has  heretofore  afforded to the
officers,   employees  and  authorized   representatives   (including,   without
limitation,  independent  public  accountants and attorneys) of the Buyer a full
and complete  opportunity  to conduct and complete  its  acquisition  review and
analysis of the Assets and Assumed  Liabilities,  including a review of Seller's
books and records,  financial  information,  contracts and agreements (including
all  non-competition  and  non-solicitation  covenants  binding on Seller or its
employees)  pertaining  to the Business,  inspection  and review of the physical
operations  of the  Business,  and the right to  contact  and  communicate  with
Seller's vendors, creditors, customers,  employees,  independent contractors and
others  having a business  relationship  with Seller.  Buyer agrees that it will
keep and  maintain  any and all  information  obtained  by it, its  agents,  and
counsel,  confidential, and will not make use of any such information other than
for its evaluation of this transaction.

                 5. CONDITIONS TO THE OBLIGATIONS OF THE SELLER

The  obligations  of the  Seller  under this  Agreement  shall be subject to the
satisfaction,  on or prior to the  Closing  Date,  of the  conditions  set forth
below.

5.1 NO MISREPRESENTATION OR BREACH OF REPRESENTATIONS, WARRANTIES AND COVENANTS.

There  shall  have  been no  breach  by Buyer in the  performance  of any of its
covenants and agreements herein;  each of the  representations and warranties of
Buyer  contained or referred to herein shall be true and correct in all material
respects on the Closing  Date as though  made on the  Closing  Date,  except for
changes therein  specifically  permitted by this Agreement or resulting from any
transaction  expressly  consented  to in writing by the Seller;  and there shall
have been delivered to the Seller a certificate or  certificates to that effect,
dated the Closing Date, signed by the Buyer, by its President.

5.2 CORPORATE ACTION.

Buyer  shall  have  taken  all  corporate   action   necessary  to  approve  the
transactions  contemplated by this Agreement, and Buyer shall have furnished the
Seller  with  certified  copies  of the  resolutions  adopted  by the  Board  of
Directors and the Sole  Shareholder of Buyer,  in form and substance  reasonably
satisfactory to counsel for the Seller, in connection with such transactions.

                                       8

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

5.3 NO RESTRAINT OR LITIGATION.

No action,  suit,  investigation  or  proceeding  shall have been  instituted or
threatened by any third party,  governmental  or regulatory  agency to restrain,
prohibit or otherwise  challenge  the  legality or validity of the  transactions
contemplated hereby.

5.4 OTHER DOCUMENTATION AND PERFORMANCE.

Seller shall have  received  all of the  documents  and payments  required to be
delivered by the Buyer at or before the Closing pursuant to this Agreement.

                   6. CONDITIONS TO THE OBLIGATIONS OF BUYER

The  obligations  of the Buyer  under  this  Agreement  shall be  subject to the
satisfaction,  on or prior to the  Closing  Date,  of the  conditions  set forth
below.

6.1 NO MISREPRESENTATION OR BREACH OF REPRESENTATIONS, WARRANTIES AND COVENANTS.

There  shall  have been no breach  by  Seller in the  performance  of any of its
covenants and agreements herein;  each of the  representations and warranties of
Seller contained or referred to herein shall be true and correct in all material
respects on the Closing  Date as though  made on the  Closing  Date,  except for
changes therein  specifically  permitted by this Agreement or resulting from any
transaction expressly consented to in writing by the Buyer; and there shall have
been delivered to the Buyer a certificate or certificates to that effect,  dated
the Closing Date, signed by the Seller, by its President.

6.2 CORPORATE ACTION.

Seller  shall  have  taken  all  corporate   action  necessary  to  approve  the
transactions contemplated by this Agreement, and Seller shall have furnished the
Buyer  with  certified  copies  of  the  resolutions  adopted  by the  Board  of
Directors,  in form and  substance  reasonably  satisfactory  to counsel for the
Buyer, in connection with such transactions.

6.3 NO RESTRAINT OR LITIGATION.

No action,  suit,  investigation  or  proceeding  shall have been  instituted or
threatened by any third party,  governmental  or regulatory  agency to restrain,
prohibit or otherwise  challenge  the  legality or validity of the  transactions
contemplated hereby.

6.4 OTHER DOCUMENTATION.

Buyer shall have  received  all of the  documents  and  showings  required to be
delivered by the Seller at the Closing
pursuant to this Agreement.

6.5 MUTUAL INDEMNIFICATION.

A. Seller hereby agrees to indemnify and hold the Buyer,  and its  shareholders,
directors, officers, employees and agents, harmless from and against any and all
claims, suits, actions, judgments, liability, losses, damages, fines, penalties,

                                       9

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

costs and expenses, including without limitation, reasonable attorneys' fees and
costs arising out of or relating to any event, condition,  contract, obligation,
act, omission,  non-fulfillment,  non-Assumed Liability,  breach,  inaccuracy or
non-fulfillment  of any  representation,  warranty,  covenant or agreement  with
respect to any of the terms of this Agreement.  Seller  acknowledges  and agrees
that Buyer may withhold from and offset any payments due under the provisions of
this Agreement by the amount due Buyer under this section.

B. Buyer  hereby  agrees to  indemnify  and hold  harmless  the Seller,  and its
shareholders,  directors,  officers,  employees and agents, from and against any
and all claims, suits, actions,  judgments,  liability,  losses, damages, fines,
penalties,  costs  and  expenses,   including  without  limitation,   reasonable
attorneys'  fees and costs  arising out of or relating to any event,  condition,
contract, obligation, act, omission, non-fulfillment,  Assumed Liability, breach
or  misrepresentation  of warranty,  representation,  covenant or agreement with
respect to any of the terms of this Agreement.

                          7. GENERAL AND MISCELLANEOUS

7.1 NOTICES.

All  notices for which  provision  is made in this  Agreement  shall be given in
writing  either by actual  delivery  of the  notice  into the hands of the party
entitled to the notice or by mailing the notice by registered or certified mail,
return receipt  requested,  in which case the notice shall be deemed to be given
on the date of its mailing, addressed as follows:

If to Seller:                       BestNet Communications Corp.
                                    2850 Thornhills Ave SE, Suite 104
                                    Grand Rapids, Michigan 49546

With a Copy to:                     Stephen T. Meadow, Esq.
                                    Firetag, Stoss & Dowdell, P.C.
                                    1747 E. Morten Avenue, Suite 107
Phoenix, AZ  85020

If to Buyer:                        Interactive Media Technologies, Inc.
                                    7999 North Federal Highway, Suite 400
                                    Boca Raton, Florida 33487

7.2 PARTIES.

The terms and  provisions  hereof  shall  inure to the benefit of and be binding
upon the  undersigned  and  each of them and  their  respective  successors  and
assigns.

7.3 SEVERABILITY.

The invalidity or  unenforceability  of any of the  provisions  hereof shall not
affect the validity or enforceability of the remainder hereof.

                                       10

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

7.3 ENTIRE AGREEMENT.

This Agreement  together with all of the Schedules and other documents  referred
to herein constitutes the entire Agreement between the parties with reference to
the  subject   matter   hereof  and   supersedes   all  prior   agreements   and
understandings,  whether  written or oral,  regarding the subject matter hereof,
and may only be changed or modified in writing.

7.4 SURVIVAL PAST CLOSING.

All  of  the  representations,  warranties,  covenants,  agreements,  terms  and
provisions of this Agreement shall survive the Closing Date.

7.5 GOVERNING LAW.

This Agreement shall be governed by the laws of Arizona.

7.6  LIMITATION OF SELLER LIABILITY.

Seller  shall  have no  liability  to  Buyer  for a  breach  or  default  of any
representation  or warranty in this  Agreement or in any agreement  delivered by
Seller pursuant to this Agreement  unless the valid claims for all such breaches
and defaults  ("Representation  Claims"),  collectively  aggregate more than Ten
Thousand Dollars ($10,000). The maximum aggregate liability of Seller on account
of  Representation  Claims shall not exceed the  Purchase  Price  ($60,000).  No
present or future partner, director,  officer,  shareholder,  employee, advisor,
agent,  attorney  or asset  manager  of or in  Seller  shall  have any  personal
liability, directly or indirectly, under or in connection with this Agreement or
any agreement made or entered into under or in connection with the provisions of
this  Agreement,  or any amendment or amendments to any of the foregoing made at
any time or times,  heretofore or hereafter,  and Buyer and its  successors  and
assigns and,  without  limitation,  all other persons and  entities,  shall look
solely to Seller's  assets for the payment of any claim or for any  performance,
and Buyer hereby waives any and all such personal liability.  The limitations on
liability  contained  in  this  Section  7.6  are in  addition  to,  and  not in
limitation of, any limitation on liability  applicable to Seller provided in any
other provision of this Agreement or by law or by any other contract,  agreement
or instrument.

7.7  ARBITRATION.

Any dispute or  controversy  arising out of or relating to this  Agreement,  any
document  or  instrument   delivered   pursuant  to,  in  connection   with,  or
simultaneously  with the Agreement,  or any breach of this Agreement or any such
document  or  instrument  ("Dispute")  shall be subject to the  negotiation  and
arbitration  provisions  contained  herein.  Each party to a Dispute  shall make
every  reasonable  effort  to meet in  person  and  confer  for the  purpose  of
resolving the Dispute by good faith  negotiation  before  resorting to any other
dispute  resolution  procedure or legal proceeding.  If the parties do not reach
such  resolution  within a period of thirty (30) days,  then, upon notice by any
party to the other  parties (a "Dispute  Notice"),  the Dispute shall be finally
settled by arbitration by a single  arbitrator  qualified to consider the matter
in dispute. The parties shall attempt to agree on a qualified arbitrator to hear

                                       11

<PAGE>
BESC/IMT Asset Purchase Agreement                                  Exhibit 10.01

the Dispute,  provided  that if the parties  cannot agree on such an  arbitrator
within thirty (30) days of the Dispute  Notice,  the Dispute shall be filed with
and  administered  by the American  Arbitration  Association,  Phoenix,  Arizona
office  ("AAA")  and the AAA  shall  select a  single  arbitrator  qualified  to
consider  the  Dispute.  The  arbitration  shall  be held in  Phoenix,  Arizona,
governed  by the  Commercial  Arbitration  Rules,  then  obtaining,  of the AAA,
conducted at an arbitration  hearing that shall not exceed three (3) days unless
otherwise agreed by the parties.  The arbitrator may grant  injunctions or other
relief in such dispute or controversy and shall rule on all other evidentiary or
discovery  issues or requests.  The decision of the  arbitrator  shall be final,
conclusive and binding upon the parties to the arbitration;  and any party shall
be entitled to cause  judgment on the decision or award of the  arbitrator to be
entered in any court of competent jurisdiction.  The parties shall share equally
the costs of the  arbitrator,  but each party shall be  responsible  for its own
attorney fees and other related costs,  fees and deposits,  notwithstanding  any
provision to the  contrary by statute or the rules of the  American  Arbitration
Association.

7.8  CAPTIONS AND HEADINGS.

The  captions  and  headings of this  Agreement  are solely for  convenience  of
reference and shall be given no effect in the construction or  interpretation of
this Agreement.

7.9  COUNTERPARTS.

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

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

BestNet Communications Corp.

By:  ______________________________ Its:  ______________________________

Interactive Media Technologies, Inc.

By:  ______________________________         Its:  PresidentExhibit 10.63

    
      

    

    
      EXHIBIT
        10. 63

      

      

      

      COINSURANCE
        AGREEMENT

       

      by
        and
between

       

      INVESTORS
        LIFE INSURANCE COMPANY OF NORTH AMERICA

       

      Austin,
        Texas

       

      and

       

      FAMILY
        LIFE
        INSURANCE COMPANY

       

      Houston,
        Texas

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      COINSURANCE
        AGREEMENT

       

      
         

        
          

          

        

      THIS
        COINSURANCE AGREEMENT
        (the
“Agreement”) is made and entered into by and between INVESTORS
        LIFE INSURANCE COMPANY OF NORTH AMERICA (“Company”),
        a Texas
        stock
        life insurance company,
        and
FAMILY
        LIFE
        INSURANCE COMPANY
        (“Reinsurer”), a Texas
        stock life
        insurance company.

       

      WHEREAS,
        Financial Industries Corporation, the parent of both Company and Reinsurer,
        has
        agreed to sell Reinsurer to The Manhattan Life Insurance Company pursuant
        to a
        Stock Purchase Agreement that includes among its terms the reinsurance of
        the
        Policies;

       

      WHEREAS,
        Company
        is the issuer of insurance Policies (as defined herein) consisting of mortgage
        protection life insurance policies;

       

      WHEREAS,
        Company
desires
        to cede a
        portion
        of its
        risks
        under the Policies to Reinsurer
        subject
        to this Agreement;

       

      WHEREAS,
        effective as of the Effective Date, Company will cede or retrocede its risks
        under the Policies to Reinsurer, and Reinsurer will
        provide
        indemnity reinsurance of such risks,
        in each
        case on the terms and subject to the conditions set forth below;
        and

       

      NOW,
        THEREFORE,
        in
        consideration of the mutual promises and covenants set forth herein, and
        in
        reliance upon the representations, warranties, conditions, and covenants
        contained herein, and intending to be legally bound hereby, Company and
        Reinsurer hereby agree as follows:

       

       

      ARTICLE
        I

      DEFINITION
        OF TERMS

       

      Capitalized
        terms used shall have the meaning given below.

       

      1.1.   Closing
        Date.
        The
        date of closing of the sale of Reinsurer to The Manhattan Life Insurance
        Company.

       

      1.2.   Effective
        Date.
        The
        date upon which the coinsurance of the Policies by Reinsurer under the terms
        of
        this Agreement shall be effective, which shall be 12:01 a.m. Central time,
        on the day following the effective date of termination of the Optimum Re
        Agreement.

       

      1.3.   Expense
        Allowance Percentage.
        The
        percentage of net written premium (written premium less cancellations and
        refunds) specified in Schedule 1.3.

       

      1.4.   Extracontractual
        Liabilities.
        Any
        claim or liability under, in connection with or with respect to the Policies
        for
“bad faith”, punitive, exemplary or other extra-contractual damages that are
        based upon, relate to or arise out of any act, error or omission of Company,
        or
        any of its officers, directors, agents or employees, whether intentional
        or
        otherwise.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      

      1.5.   Optimum
        Re Agreement.
        The
        Automatic Reinsurance Agreement between Company and Optimum Re Insurance
        Company
        dated January 19, 2005.

       

      1.6.   Policies.
        All
        of
        those mortgage protection life insurance policy contracts and riders (but
        not
        universal life plans) issued or to be issued by the Family Sales Division
        of
        Company including those either identified by policy form number or Plan Code
        on
Schedule 1.3.

       

      1.7.   Policy.
        Each
        Policy reinsured by Reinsurer under this Agreement.

       

      1.8.   Policyholder.
        Any
        individual or entity which is the owner of a Policy or which has the right
        to
        terminate or lapse the Policy, effect changes of beneficiary, coverage limits,
        add or terminate persons covered under such Policy or direct any other policy
        changes in such Policy.

       

      1.9.   Reinsurance
        Percentage.
        The
        percentage of contractual liability of Company reinsured by Reinsurer as
        specified in Schedule 1.9.

       

       

      ARTICLE
        II

      BASIS
        OF REINSURANCE

       

      2.1.   Reinsurance.
        Subject
        to the terms and conditions of this Agreement,
        effective as of the Effective Date, Company hereby cedes to Reinsurer, and
        Reinsurer hereby accepts and reinsures from Company the Reinsurance Percentage
        of the Policies that are issued by the Company on and after the Effective
        Date.

       

      2.2.   Liability
        of Reinsurer.
        The
        liability of Reinsurer shall begin and terminate simultaneously with that
        of
        Company, and the extent of Reinsurer’s liability shall be governed by the
        general and special policy conditions of the Policies.

       

      2.3.   Underwriting.
        All
        Policies shall be underwritten in accordance with current underwriting
        guidelines in use as of the Effective Date unless modified in accordance
        with
        Section 2.4.

       

      2.4.   Modification.
        Any
        modifications or changes to the Policies must be mutually agreed upon by
        Company
        and Reinsurer.

       

      2.5.   Premium
        Required.
        The
        receipt by Reinsurer of reinsurance premiums when and as required by this
        Agreement shall be a condition precedent to Reinsurer’s liability for each
        policy to be reinsured.

       

      2.6.   Reinstatements.
        If a
        Policy that was reduced, terminated, or lapsed is reinstated, the reinsurance
        for such Policy under this Agreement will be reinstated automatically to
        the
        amount that would have been in force if the Policy had not been reduced,
        terminated, or lapsed.

       

      2.7.   Authority
        and Territory.
        In no
        event shall the reinsurance be in force and binding unless the Policy issued
        directly by Company is in force and unless the issuance and delivery of the
        Policy constitutes the doing of business in a state of the United States
        of
        America or a country in which Company is properly licensed.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      2.8.   Non-Forfeiture
        Benefits.
        The
        liability of Reinsurer shall include a pro rata share of any non-forfeiture
        benefits under the Policies in accordance with the Reinsurance
        Percentage.

       

      2.9.   Recapture.
        The
        business reinsured is not subject to recapture except by agreement of the
        parties.

       

       

      ARTICLE
        III

      TERMINATION

       

      3.1.   Term.
        This
        Agreement shall commence on the Effective Date and continue in effect according
        to its terms, unless terminated pursuant to Section 3.2,
        until
        12:01 a.m. CST on the fifth anniversary of the Effective Date. This
        Agreement cannot be terminated with respect to the Policies except by mutual
        agreement of Company and Reinsurer.

       

      3.2.   Termination
        of New Sales.
        Reinsurer may terminate this Agreement with respect to new sales by Company
        of
        Policies as of the end of any calendar year or any renewal term by giving
        at
        least one hundred eighty (180) days notice in writing to Company prior to
        the
        end of such calendar year.

       

       

      ARTICLE
        IV

      
        PREMIUMS
          AND EXPENSE ALLOWANCE

      

       

      4.1.   Reinsurance
        Premium.
        Company
        agrees to pay Reinsurer reinsurance premiums equal to the Reinsurance Percentage
        multiplied by the collected premiums less the returns and
        cancellations.

       

      4.2.   Expense
        Allowance.
        Reinsurer will pay Company an Expense Allowance equal to the Expense Allowance
        Percentage, multiplied by the reinsurance premiums, as calculated in
        Section 4.1
        above,
        and the
        applicable fee, as specified in Schedule 1.3.

       

      4.3.   Reinsurer
        Liability.
        Reinsurer shall not be directly liable for any commissions, taxes, or expenses
        incurred by Company except as specifically set forth in this
        Agreement.

       

       

      ARTICLE
        V

      ADMINISTRATION

       

      5.1.   Quarterly
        Report.
        Company
        shall submit to Reinsurer a statement listing reinsurance premiums, new policies
        issued, paid claims and non-forfeiture benefits, expense allowances, premium
        taxes, assessments, reserves, and other pertinent data mutually agreed upon
        by
        both parties relating to the Policies by the fifteenth (15th) of the month
        following the end of each calendar quarter that this Agreement is in effect.
        Any
        balance due Reinsurer by Company shall be paid with the report. Any balance
        due
        Company from Reinsurer shall be paid within fifteen (15) days of receipt
        of such
        report.

       

      5.2.   Access
        to Books and Records.
        Company
        and Reinsurer shall, have at all times, full and free access during regular
        business hours, at the home office of the other party, to inspect all books,
        record and files relating to the Policies in accordance with the terms of
        this
        Agreement.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      

      5.3.   Error
        or Omission.
        It is
        expressly understood and agreed that if non-payment of reinsurance premium
        within the time specified or failure to comply with other terms of this
        Agreement is shown to be the result of a misunderstanding, oversight or clerical
        error, both Company and Reinsurer shall be restored to the positions they
        would
        have occupied had no such misunderstanding, oversight or clerical error
        occurred. Upon discovery of the oversight, clerical error or misunderstanding,
        the party that committed the oversight or clerical error or acted incorrectly
        as
        a result of a misunderstanding shall promptly notify the other party in
        writing.

       

      5.4.   Lapses.
        If a
        Policy lapses for nonpayment of premium and is subsequently reinstated in
        accordance with the terms of the Policy and rules of Company, the reinsurance
        hereunder with respect to such Policy shall be reinstated automatically.
        Reinsurance premiums shall be payable hereunder with respect to any such
        Policy
        in full, as if such Policy had continued uninterrupted in force.

       

      5.5.   Cooperation.
        Each
        party hereto shall cooperate fully with the other in all reasonable respects
        in
        order to accomplish the objectives of this Agreement.

       

      5.6.   Premium
        Taxes.
        Company
        shall be liable for the payment of all Premium Taxes on premiums received
        under
        the Policies. Reinsurer shall allow Company a provision for Premium Taxes
        incurred in connection with premiums received under the Policies in proportion
        to the percentage under Schedule 1.3.
        The
        provision for Premium Taxes shall be two percent (2%) of premiums collected,
        as
        calculated on a calendar quarter basis, minus: (a) the sum of any Premium
        Taxes withheld by Company from amounts transferred to Reinsurer during such
        calendar quarter; and (b) the amount of any Premium Tax offset directly or
        indirectly available for use by Company during such calendar quarter as a
        consequence of any assessment or payment for which Company has been reimbursed
        by Reinsurer pursuant to Section 5.7
        hereof,
        and shall be paid by Reinsurer to Company within thirty (30) days of the
        end of
        each calendar quarter.

       

      5.7.   Guaranty
        Fund Assessments. In
        the
        event that Company is required to pay to any guaranty fund, insolvency fund,
        or
        similar plan, pool, association or organization maintained by any jurisdiction
        an assessment in respect of the Policies, the portion of such payment that
        relates to the Policies for such period shall be reimbursed to Company by
        Reinsurer in
        proportion to the Reinsurance Percentage. Company shall credit Reinsurer
        with
        any Premium Tax offset for such assessments relating to Policies in the
        proportion of the Reinsurance Percentage.

       

      5.8.   Reserves.
        Reinsurer shall establish and maintain reserves in proportion to the Reinsurance
        Percentage in accordance with applicable statutory accounting
        standards.

       

      5.9.   Other
        Reinsurance.
        The
        Company shall provide notice of termination with respect to the Optimum Re
        Agreement prior to the Closing and shall retain its pro rata share of liability
        without other reinsurance of any type.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VI

      CLAIMS

       

      6.1.   Notice
        and Settlement.
        Company
        shall give Reinsurer prompt notice of any and all claims. The settlement
        of any
        claim paid by Company shall be binding on Reinsurer. Reinsurer shall pay
        its
        Reinsurance Percentage to Company pursuant to Section 5.1

       

      6.2.   Reduced
        Settlement and Expense.
        Should
        any claim be settled for a reduced sum, Company and Reinsurer shall participate
        in such reduction in proportion to their respective liabilities. Likewise,
        Reinsurer and Company shall share, in the same proportion as the Reinsurance
        Percentage, any special expenses for investigative or legal fees (excluding
        salaries, retainers, or ordinary administrative and overhead expenses). Claim
        expenses in connection with settlements such as external legal counsel fees,
        costs of investigative agency reports and case management fees from outside
        agencies shall be considered special expenses.

       

      6.3.   Extracontractual
        Liabilities.
        Reinsurer shall not be liable for any extracontractual liabilities or any
        expense relating thereto.

       

       

      ARTICLE
        VII

      INDEMNIFICATION

       

      7.1.   Indemnification.
        From
        and after the Effective Date, (a) Company shall indemnify, defend and hold
        harmless Reinsurer
        and its
        officers, directors, employees, agents and affiliates (collectively, the
        “Reinsurer Indemnified Parties”) from
        and
        against any costs and expenses (including interest, fines, penalties, statutory,
        punitive or extracontractual damages, refunds, reasonable attorneys’,
        accountants’, and actuaries fees and disbursements, and any other costs and
        expenses incident to any suit, action, investigation, or proceeding), damages,
        losses, charges, deficiencies, liabilities, obligations, claims, settlements,
        judgments, or diminution in value (“Loss” or “Losses”) sustained or incurred by,
        or asserted against Reinsurer which arises out of: (i) any breach or
        non-fulfillment by Company of, or any failure by Company to perform, any
        of the
        covenants, terms or conditions of or any of its duties or obligations under
        this
        Agreement, and (ii) any enforcement of this indemnity,
        and
        (b) Reinsurer shall indemnify, defend and hold harmless Company, and its
        officers, directors, employees, agents and affiliates (collectively, the
        “Company Indemnified Parties”) from and against any Loss sustained or incurred
        by, or asserted against, Company Indemnified Parties which arises out of
        (i) any breach or non-fulfillment by Reinsurer of, or any failure by
        Reinsurer to perform, any of the covenants, terms or conditions of or any
        of its
        duties or obligations under this Agreement, and (ii) any enforcement of
        this indemnity.

       

       

      ARTICLE
        VIII

      INSOLVENCY

       

      8.1.   Payment
        of Benefits under Insolvency.
        The
        obligations of Reinsurer under this Agreement shall be payable by Reinsurer
        while in force on the basis of the contractual liability of Company under
        the
        Policies without diminution or in any way affected or diminished because
        of the
        insolvency of Company. In the event of the insolvency of Company and the
        appointment of a conservator, liquidator, receiver, or statutory successor
        of
        Company while coinsurance under this Agreement is in effect as to any Policy,
        all coinsurance made, ceded, renewed or otherwise becoming effective shall
        be
        payable directly to such conservator, liquidator, receiver, or statutory
        successor immediately upon demand, with reasonable provision for verification,
        on the basis of claims allowed against Company by any court of competent
        jurisdiction or by any conservator, liquidator, receiver, or statutory successor
        of Company having authority to allow such claims, without diminution because
        of
        such insolvency or because such conservator, liquidator, receiver, or statutory
        successor has failed to pay all or a portion of any claims.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      

      8.2.   Required
        Notice of and Defense against Claims.
        In the
        event of the insolvency of Company while reinsurance as to any Policy is
        in
        effect under this Agreement, the conservator, liquidator, receiver, or statutory
        successor of Company shall give Reinsurer written notice of the pendency
        of a
        claim against Company on a Policy within a reasonable time after such claim
        is
        filed in the insolvency proceeding. Such notice shall indicate the Policy
        reinsured and whether the claim could involve a possible liability on the
        part
        of Reinsurer. During the pendency of any such claim, Reinsurer may, at its
        own
        expense, investigate such claim and interpose, at its own expense, in the
        proceeding where such claim is to be adjudicated, any defense or defenses
        that
        Reinsurer may deem available to Company or its conservator, liquidator,
        receiver, or statutory successor. The expense thus incurred by Reinsurer
        shall
        be payable, subject to court approval, out of the estate of Company as a
        part of
        the expense of conservation or liquidation to the extent of a proportionate
        share of the benefit which may accrue to Company in conservation or liquidation
        solely as a result of the defense undertaken by Reinsurer,
        all in
        accordance with Sections 10-3-118(3)(b) and (8), Texas Revised
        Statutes.

       

       

      ARTICLE
        IX

      ARBITRATION

       

      9.1.   Agreement
        to Arbitrate.
        The
        parties hereto acknowledge and agree that (a) it is the intention of the
        parties
        that customs and usages of the business of insurance shall be given full
        effect
        in the interpretation of this Agreement; and (b) the parties shall act in
        all
        things with the highest good faith. All disputes between Reinsurer and Company
        arising under this Agreement on which an amicable understanding cannot be
        reached will be decided by arbitration between the parties at a location
        to be
        mutually agreed upon between the parties or as designated by the arbitrators
        if
        agreement as to a location cannot be reached by the parties. Notwithstanding
        any
        other provision of this ARTICLE
        IX,
        if
        either Reinsurer or Company seeks, consents to, or acquiesces in the appointment
        of or otherwise becomes subject to any trustee, receiver, liquidator or
        conservator (including any state insurance regulatory agency or authority
        acting
        in such a capacity), the other party shall not be obligated to resolve any
        claim, dispute or cause of action under this Agreement by arbitration.
        Notwithstanding any other provision of this ARTICLE
        IX,
        nothing
        contained in this Agreement shall require arbitration of any issue for which
        equitable or injunctive relief, including specific performance, is
        sought.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      

      9.2.   Method.
        The
        parties intend this Article VIII to be enforceable in accordance with the
        Federal Arbitration Act (9 U.S.C. Section 1, et seq.), including any
        amendments to that Act which are subsequently adopted, notwithstanding any
        other
        choice of law provision set forth in this Agreement. In the event that either
        party refuses to submit to arbitration as required herein, the other party
        may
        request a United States Federal District Court to compel arbitration in
        accordance with the Federal Arbitration Act. Both parties consent to the
        jurisdiction of such court to enforce this Article and to confirm and
        enforce the performance of any award of the arbitrators. To initiate
        arbitration, either party shall notify the other in writing in the manner
        set
        forth in this Agreement for sending notices to the parties of its desire
        to
        arbitrate, stating the nature of the dispute and the remedy sought, and
        designating an arbitrator. The party to which the notice is sent shall respond
        thereto in writing within thirty (30) days of its receipt of such notice.
        In
        such response, the party shall also assert any claim, defense, and other
        dispute
        it may have against the party initiating arbitration, and which arises out
        of or
        relates in any way to this Agreement and designate its arbitrator. If the
        second
        party fails to respond within the time set forth in this Section 8.2, or
        fails to designate its arbitrator in its response, the party initiating
        arbitration shall appoint a second arbitrator. The two arbitrators shall
        select
        a third arbitrator within thirty (30) days of the designation of the second
        arbitrator. If they are unable to agree upon the selection of the third
        arbitrator, they shall, within such period, each name three (3) individuals
        of
        whom the other shall decline two (2), and the decision of the third arbitrator
        shall be determined by drawing lots from the two remaining designees. All
        arbitrators shall be active or retired officers of life or health insurance
        companies and be unaffiliated in any way with the parties and disinterested
        in
        the outcome of the arbitration. The arbitrators shall have the power to
        determine all procedural rules for the conduct of the arbitration, including
        but
        not limited to the production and inspection of documents, the examination
        of
        witnesses, and any other matter relating to the conduct of the arbitration.
        The
        arbitrators shall interpret this Agreement in accordance with the standards
        identified in Section 8.1. The arbitrators shall have no authority to award
        punitive damages against or in favor of either party (except to reimburse
        a
        party for extra-contractual or punitive damages that either Company or Reinsurer
        has paid or is legally obligated to pay to third parties). The costs of the
        arbitration (except legal fees of the parties) shall be split equally between
        the parties, unless the arbitrators shall otherwise require in their award.
        Each
        party shall pay its own legal fees in connection with the arbitration, unless
        the arbitrators award legal fees and expenses of the prevailing party as
        part of
        any award. Except as otherwise specifically provided herein, the arbitration
        shall be conducted in accordance with rules established by the American
        Arbitration Association. The decision, in writing, of the arbitrators shall
        be
        final and binding upon both of the parties. Judgment may be entered upon
        the
        final decision of the arbitrators in any court having jurisdiction.

       

       

      ARTICLE
        X

      GENERAL
        PROVISIONS

       

      10.1.   Notices.
        Any and
        all notices and other communications required or permitted under this Agreement
        shall be in writing and shall be deemed to have been duly given when (i)
        received by the receiving party if mailed by United States registered or
        certified mail, return receipt requested, (ii) received by the receiving
        party
        if mailed by United States overnight express mail, (iii) sent by facsimile
        or
        telecopy machine, followed by confirmation mailed by United States first-class
        mail or overnight express mail, or (iv) delivered in person to the parties
        at
        the addresses set forth below:

      
        
          Coinsurance
            Agreement

          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      

      
        	 	
                If
                  to Company:

              	 
	 	 	 	 
	 	 	
                INVESTORS
                  LIFE INSURANCE COMPANY OF NORTH AMERICA

              	 
	 	 	
                6500
                  Riverplace Blvd Bldg 1

              	 
	 	 	
                Austin,
                  TX 78730-1123

              	 
	 	 	
                Attention:
                  Michael Hydanus

              	 
	 	 	
                FAX
                  No.: (512) 404-5129

              	 
	 	 	 	 
	 	
                With
                  a concurrent copy
                  to:

              	 
	 	 	 	 
	 	 	
                Michael
                  Saslaw

              	 
	 	 	
                Weil,
                  Gotshal & Manges LLP

              	 
	 	 	
                200
                  Crescent Ct., Suite 300

              	 
	 	 	
                Dallas,
                  TX 75201

              	 
	 	 	
                FAX
                  No.: (214) 746-7777

              	 
	 	 	 	 
	 	
                If
                  to Reinsurer, to:

              	 
	 	 	 	 
	 	 	
                FAMILY
                  LIFE INSURANCE COMPANY

              	 
	 	 	
                2727
                  Allen Parkway, 5th Floor

              	 
	 	 	
                Houston,
                  Texas 77019

              	 
	 	 	
                Attention:
                  Daniel George, President

              	 
	 	 	
                FAX
                  No.: (713) 529-9425

              	 
	 	 	 	 
	 	 	
                With
                  a concurrent copy to:

              	 
	 	 	 	 
	 	 	
                Burnie
                  Burner

              	 
	 	 	
                Long,
                  Burner, Parks & DeLargy, P.C.

              	 
	 	 	
                106
                  E. 6th St., STE 300

              	 
	 	 	
                Austin,
                  TX 78701

              	 
	 	 	
                FAX
                  No.: (512) 322-0301

              	 

      

       

      10.2.   Confidentiality.
        Each of
        the parties shall maintain the confidentiality of all information related
        to the
        Policies and all other information denominated as confidential by the other
        party provided to it in connection with this Agreement and shall not disclose
        such information to any third parties without prior written consent of the
        other
        party, except as may be required by regulatory authorities or by law, or
        pursuant to legal process.

       

      10.3.   Misunderstandings
        and Oversights.
        If any
        failure to pay amounts due or to perform any other act required of either
        party
        under this Agreement is shown to be unintentional and caused by
        misunderstanding, oversight or clerical error, then this Agreement shall
        not be
        deemed in breach thereby, but such error shall be corrected by restoring
        both
        parties to the positions they would have occupied had the error not
        occurred.

      
        
          Coinsurance
            Agreement

          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

      

      10.4.   Entire
        Agreement.
        This
        Agreement supersedes all prior discussions and agreements between the parties
        with respect to the subject matter of this Agreement, and this Agreement
        contains the sole and entire agreement between the parties with respect to
        the
        reinsurance of the Policies hereunder and the obligations of the parties
        are
        determined solely by the terms of this Agreement.

       

      10.5.   Waivers
        and Amendments.
        Any
        term or condition of this Agreement may be waived at any time by the party
        that
        is entitled to the benefit thereof. Such waiver must be in writing and must
        be
        executed by an executive officer of such party. A waiver on one occasion
        will
        not be deemed a waiver of the same or any other term or condition on a future
        occasion. This Agreement may be modified or amended only by a writing duly
        executed by an executive officer of Company and Reinsurer,
        respectively.

       

      10.6.   Offsets.
        Any
        debts or credits, regardless of when they arose or were incurred, in favor
        of or
        against either Company or Reinsurer with respect to this Agreement are deemed
        mutual debts or credits, as the case may be, and shall be set off, and only
        the
        balance shall be allowed or paid.

       

      10.7.   No
        Third Party Beneficiaries.
        This
        Agreement constitutes an indemnity reinsurance agreement solely between Company
        and Reinsurer, and is intended solely for the benefit of the parties hereto
        and
        their permitted successors and assigns, and it is not the intention of the
        parties to confer any rights as a third-party beneficiary to this Agreement
        upon
        any other person.

       

      10.8.   Assignment.
        This
        Agreement shall not be assigned by either of the parties hereto without the
        prior written approval of the other party.

       

      10.9.   Governing
        Law.
        Notwithstanding anything herein to the contrary, all provisions, including
        Arbitration, of this Agreement will be governed by and construed in accordance
        with the laws of the State of Texas,
        without regard to its conflicts of law doctrine.

       

      10.10.   Counterparts.
        This
        Agreement may be executed in counterparts, each of which shall be deemed
        an
        original, but all of which shall constitute one and the same
        instrument.

       

      10.11.   Severability.
        If any
        provision of this Agreement is held to be illegal, invalid or unenforceable
        under any present or future law or if determined by a court of competent
        jurisdiction to be unenforceable, and if the rights or obligations of Company
        or
        Reinsurer under this Agreement will not be materially and adversely affected
        thereby, such provision shall be fully severable, and this Agreement will
        be
        construed and enforced as if such illegal, invalid or unenforceable provision
        had never comprised a part of this Agreement, and the remaining provisions
        of
        this Agreement shall remain in full force and effect and will not be affected
        by
        the illegal, invalid or unenforceable provision or by its severance here
        from.

       

      10.12.   Schedules
        and Paragraph Headings.
        Schedules attached hereto are made a part of this Agreement. Paragraph headings
        are provided for reference purposes only and are not made a part of this
        Agreement.

       

      10.13.   Tax
        Provisions.
        With
        respect to the transaction contemplated by this Agreement, the parties hereby
        agree to make an election in accordance with Internal Revenue Regulation
        Section 1.848-2(g)(8) (the “Regulation”) under Section 848 of the
        Internal Revenue Code of 1986 (the “Code”), as amended, and to comply with all
        of the requirements of such Regulation regarding such election, including,
        without limitation, the election statement and Tax return reporting requirements
        of Regulation Sections 1.848-2(g)(8)(ii) and 1.848-2(g)(8)(iii), and further
        agree:

      
        
          Coinsurance
            Agreement

          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (a)

              	
                To
                  exchange information pertaining to the amount of “net consideration” under
                  this Agreement as defined in the
                  Regulation;

              

      

       

      
        	 	
                (b)

              	
                That
                  Company shall submit its calculation of the “net consideration” for
                  purposes of that Regulation to Reinsurer not later than May 1st
                  for each
                  and every taxable year for which this Agreement is in
                  effect;

              

      

       

      
        	 	
                (c)

              	
                That
                  Reinsurer may challenge such calculation within ten (10) business
                  days of
                  its receipt of Company’s
                  calculation;

              

      

       

      
        	 	
                (d)

              	
                That
                  should Reinsurer challenge Company’s calculation of the “net
                  consideration” and the parties be unable to agree as to the appropriate
                  methodology to determine the “net consideration” for purposes of the
                  Regulation, they shall refer such dispute to an outside Tax consultant
                  unrelated to either of the parties, in lieu of the arbitration
                  provisions
                  of this Agreement, and the parties agree to be bound by the decision
                  of
                  that consultant;

              

      

       

      
        	 	
                (e)

              	
                That,
                  pursuant to such election, the party with net positive consideration
                  with
                  respect to this Agreement for each taxable year will capitalize
                  specified
                  policy acquisition expenses with respect to this Agreement without
                  regard
                  to the general deductions limitation of Section 848(c)(1) of the
                  Code; and

              

      

       

      
        	 	
                (f)

              	
                That
                  the first taxable year for which such election shall be effective
                  is
                  taxable year 2006.

              

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
        as
        of the date first written below.

       

      
        	 	
                INVESTORS
                  LIFE INSURANCE COMPANY OF NORTH AMERICA

              
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/
                  Michael Hydanus 12/29/06

              	 
	 	Michael
                Hydanus, President	 
	 	 	 	 
	 	 	 	 
	 	
                FAMILY
                  LIFE INSURANCE COMPANY

              
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/
                  David W. Harris

              	 
	 	David
                W. Harris, Chief Executive Officer	 

      

      
        
          Coinsurance
            Agreement

          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

      Schedule 1.3

      

      EXPENSE
        ALLOWANCE PERCENTAGE

       

      
        
          
            	
                    Plans
                      Reinsured:

                  	
                    Plan
                      Codes:

                  
	
                    Univestor
                      Term

                  	
                    HA3015E,
                      HA3030E, HA2010E, HA2020E, HA1515E, HA3015K, HA3030K, HA2010K,
                      HA2020K,
                      HA1515K

                  
	
                    Univestor
                      MCI

                  	
                    UT15EF1,
                      UT15EM1, UT15FM1, UT15FF1, UT15GM1, UT15GF1, UT20EF1, UT20EM1,
                      UT20FF1,
                      UT20FM1, UT20GM1, UT20GF1, UT30EN1, UT30FN1, UT30GN1, UT30ET1,
                      UT30FT1,
                      UT30GT1

                  
	
                    Any
                      other mortgage protection life insurance

                  	 

          

        

      

      

       

      Allowances:

       

      Family
        Sales Division.
        All
        mortgage cancellation policies, including Univestor Term and Univestor
        MCI:

       

      
        	 	
                1.

              	
                123%
                  first year plus $25 underwriting/issue allowance per new policy
                  issued,
                  plus 2% premium tax, plus pro rata portion of $42/policy/year
                  administration fee according to the Reinsurance Percentage.
                  

              

        	 	 	 

      

      
        	 	
                2.

              	
                Renewal
                  year allowance is at the rate which covers writing agent renewal
                  commissions and any associated non-affiliated overrides, plus 2%
                  premium
                  tax, plus pro rata portion of $42/policy/year administration fee
                  according
                  to the Reinsurance Percentage.

              

      

      
        
          Coinsurance
            Agreement

          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

      Schedule 1.9

      

      REINSURANCE
        PERCENTAGE

      

      

      
        	 	
                Percentage
                  of Company contractual liability reinsured by
                  line:

              

        	 	 

      

      
        	 	
                ·

              	
                35%
                  until Company retention reaches maximum of $250,000 per life,
                  and

              

        	 	 	 

      

      
        	 	
                ·

              	
                100%
                  thereafter to the Maximum Per Life
                  Amount.

              

        	 	 	 

      

      
        	 	
                ·

              	
                Maximum
                  Per Life Amount is $700,000.

              

      

       

      Coinsurance
        Agreement

       
 -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]