Document:

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                                                                    EXHIBIT 10.2

EXECUTION COPY

                            ASSET PURCHASE AGREEMENT

                                     BETWEEN

                                  INNUITY, INC.

                                       AND

                                 ACQUIRINT, LLC

                                NOVEMBER 8, 2006

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                                TABLE OF CONTENTS

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<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
1. Definitions...........................................................     1

2. Basic Transaction.....................................................     5
   2.1  Purchase and Sale of Assets......................................     5
   2.2  No Assumption of Liabilities.....................................     5
   2.3  Purchase Price...................................................     5
   2.4  The Closing......................................................     5
   2.5  Allocation.......................................................     5

3. Representations and Warranties of the Seller..........................     5
   3.1  Organization, Qualification and Power............................     6
   3.2  Authorization of Transaction.....................................     6
   3.3  Noncontravention.................................................     6
   3.4  Brokers' Fees....................................................     6
   3.5  Title to Assets..................................................     6
   3.6  Members; Subsidiaries............................................     7
   3.7  Financial Statements.............................................     7
   3.8  Events Subsequent to Most Recent Fiscal Year End.................     7
   3.9  Undisclosed Liabilities..........................................     7
   3.10 Tax Matters......................................................     7
   3.11 Real Property....................................................     8
   3.12 Intellectual Property............................................     8
   3.13 Tangible Assets..................................................    11
   3.14 Contracts........................................................    11
   3.15 Insurance........................................................    12
   3.16 Legal Compliance; Litigation.....................................    12
   3.17 Employment Matters...............................................    13
   3.18 Employee Benefits................................................    13
   3.19 Environmental....................................................    13
   3.20 Certain Business Relationships with the Seller...................    13
   3.21 Securities Representations.......................................    13
   3.22 Other Information................................................    15

4. Representations and Warranties of the Buyer...........................    15
   4.1  Organization of the Buyer........................................    15
   4.2  Authorization of Transaction.....................................    16
   4.3  SEC Documents....................................................    16

5. Covenants.............................................................    16
   5.1  General..........................................................    16
   5.2  Notices and Consents.............................................    16
   5.3  Litigation Support...............................................    16
   5.4  Transition.......................................................    17
   5.5  Confidentiality..................................................    17
</TABLE>

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<TABLE>
<S>                                                                         <C>
   5.6  Covenant Not to Compete..........................................    17
   5.7  Nonsolicitation; Non-Hire and Noninterference....................    18

6. Conditions to Obligations to Close....................................    18
   6.1  Conditions to Obligations of the Buyer...........................    18
   6.2  Conditions to Obligation of the Seller...........................    20

7. Remedies for Breaches of this Agreement...............................    21
   7.1  Survival of Representations, Warranties and Covenants............    21
   7.2  Indemnification Provisions for Benefit of the Buyer..............    21
   7.3  Indemnification Provisions for Benefit of the Seller.............    22
   7.4  Matters Involving Third Parties..................................    22
   7.5  Adjustment to Purchase Price.....................................    24
   7.6  Recoupment Against Innuity Stock.................................    24
   7.7  Other Indemnification Provisions.................................    24

8. Termination...........................................................    24
   8.1  Termination of Agreement.........................................    24
   8.2  Effect of Termination............................................    25

9. Miscellaneous.........................................................    25
   9.1  Press Releases and Public Announcements..........................    25
   9.2  No Third-Party Beneficiaries.....................................    25
   9.3  Entire Agreement.................................................    25
   9.4  Succession and Assignment........................................    26
   9.5  Counterparts and Facsimile Signatures............................    26
   9.6  Governing Law....................................................    26
   9.7  Amendments and Waivers...........................................    26
   9.8  Severability.....................................................    26
   9.9  Expenses.........................................................    26
   9.10 Construction.....................................................    26
   9.11 Incorporation of Exhibits and Schedules..........................    27
   9.12 Notices..........................................................    27
   9.13 Specific Performance.............................................    28
   9.14 Submission to Jurisdiction.......................................    28
   9.15 Special Meeting; Agreement to Vote Membership Interests; Proxy...    28
</TABLE>

                                    EXHIBITS

Exhibit A - Registration Rights Agreement

                                    SCHEDULES

Schedule 1(a) - Acquired Assets
Seller's Disclosure Schedule
Buyer's Disclosure Schedule

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                            ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (this "AGREEMENT") between Innuity, Inc., a
Utah corporation (the "BUYER") and Acquirint, LLC, a Nevada limited liability
company (the "SELLER") and each of Randall L. Sargent and Ralph H. Smith with
respect to Sections 9.1 and 9.15 of this Agreement (each, a "MEMBER," and
collectively, the "MEMBERS"), takes effect on November 8, 2006. The Buyer and
the Seller are each individually referred to as a "PARTY," and collectively as
the "PARTIES."

                                     RECITAL

     The Seller desires to sell, transfer and otherwise convey, and the Buyer
desires to purchase and assume, all of the assets of the Seller, on the terms
and subject to the conditions of this Agreement.

                                    AGREEMENT

     In consideration of the above recital and the promises set forth in this
Agreement, the Parties agree as follows:

1.   DEFINITIONS.

     "ACQUIRED ASSETS" means all right, title and interest in, to and under all
     of the assets of the Seller (other than the Excluded Assets), including
     those assets of the Seller set forth on SCHEDULE 1(A) of this Agreement.
     The Acquired Assets include all of the assets necessary to conduct the
     businesses of the Seller as currently conducted and as currently proposed
     to be conducted, including all of the following types of assets: (a)
     tangible personal property, including equipment, furniture, computer
     hardware, data center hardware and related inventories of supplies and
     spare parts; (b) Intellectual Property, associated goodwill, licenses and
     sublicenses (including all software licenses and sublicenses), remedies
     against infringements, and rights to protection of interests under any Law,
     including the Software and the rights to the use of the name "Acquirint,"
     and any other trade names used by the Seller or any derivations thereof;
     (c) agreements, including all customer, service and partnership contracts
     and other third party agreements, instruments, Security Interests,
     guaranties and other similar arrangements; (d) claims, deposits,
     prepayments, refunds, causes of action, choses in action, rights of
     recovery, rights of set off and rights of recoupment; (e) permits; (f)
     books, records, ledgers, files, documents, correspondence, lists, drawings
     and specifications, creative materials, advertising and promotional
     materials, studies, reports and other printed or written materials; (g)
     current telephone and facsimile numbers, e-mail addresses, uniform resource
     locators, domain names and websites and the listings for each; and (h) all
     goodwill and general intangibles associated with the Seller and its
     business as conducted and as currently proposed to be conducted.

     "ADVERSE CONSEQUENCES" means all actions, suits, proceedings, hearings,
     investigations, charges, complaints, claims, demands, injunctions,
     judgments, orders, decrees, rulings, damages, dues, penalties, fines,
     costs, amounts paid in settlement, Liabilities, obligations,

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     Taxes, liens, losses, expenses and fees, including court costs and
     reasonable attorneys' fees and expenses.

     "AFFILIATE" has the meaning set forth in Rule 12b-2 of the regulations
     promulgated under the Securities Exchange Act.

     "ASSUMED LIABILITIES" means any Liabilities of the Seller assumed by the
     Buyer between September 6, 2006 and the date of this Agreement under that
     certain term sheet executed by the Buyer, the Seller and Acquirint, LLC
     dated September 6, 2006.

     "BUYER PARTIES" means the Buyer and its officers, directors, employees,
     stockholders, agents and Affiliates.

     "CODE" means the Internal Revenue Code of 1986, as amended.

     "CONFIDENTIAL INFORMATION" means any information concerning the business
     and affairs of the Seller that is not already generally available to the
     public.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended.

     "EXCLUDED ASSETS" means each of the following of the Seller: (a) the
     limited liability company organizational documents, qualifications to
     conduct business as a foreign limited liability company, arrangements with
     registered agents relating to foreign qualifications, taxpayer and other
     identification numbers, seals, minute books, membership interest transfer
     books and other documents relating to the organization, maintenance and
     existence of the Seller as a limited liability company, post-office boxes;
     and (b) any of the rights of the Seller under this Agreement (or under any
     side agreement between the Seller and the Buyer entered into on or after
     the date of this Agreement).

     "GOVERNMENTAL AUTHORITY" means (a) any federal, state, local or foreign
     governmental, administrative or regulatory authority, court, agency or
     body, or any division or subdivision, or (b) any arbitration board,
     tribunal or mediator.

     "INNUITY STOCK" means the common stock of the Buyer.

     "INTELLECTUAL PROPERTY" means: (a) all inventions (whether patentable or
     unpatentable and whether or not reduced to practice), all improvements, and
     all patents, patent applications and patent disclosures, together with all
     reissuances, continuations, continuations-in-part, revisions, extensions
     and reexaminations; (b) all trademarks, service marks, trade dress, logos,
     trade names and corporate names, together with all translations,
     adaptations, derivations and combinations and including all associated
     goodwill, and all applications, registrations and renewals; (c) all
     copyrightable works, all copyrights and all applications, registrations and
     renewals; (d) all mask works and all applications, registrations and
     renewals in connection therewith; (e) all trade secrets and confidential
     business information (including ideas, research and development, know-how,
     formulas, compositions, manufacturing and production processes and
     techniques, technical data, designs, drawings, specifications, customer and
     supplier lists, pricing and cost information, and business and marketing
     plans and proposals); (f) all computer

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     software (including data and related documentation); (g) all other
     proprietary rights; and (h) all copies and tangible embodiments (in
     whatever form or medium).

     "KNOWLEDGE" means actual knowledge after reasonable investigation and
     knowledge that could have been obtained through reasonable inquiry.

     "LAW" means any federal, state, local or foreign constitution, law, code,
     plan, statute, rule, regulation, ordinance, order, writ, injunction,
     ruling, judgment, decree, charge, restriction or Permit of any Governmental
     Authority, each as amended and in effect, now or in the future.

     "LIABILITY" means any liability (whether known or unknown, whether asserted
     or unasserted, whether absolute or contingent, whether accrued or
     unaccrued, whether liquidated or unliquidated, and whether due or to become
     due), including any liability for Taxes.

     "MATERIAL ADVERSE EFFECT" means any adverse financial or business
     consequence (or any development that could reasonably be expected to have
     an adverse financial or business consequence) on the Business, the Acquired
     Assets, the condition (financial or otherwise), the results of operations
     or prospects of the Business or on the ability of the Seller to satisfy its
     obligations under this Agreement, other than consequences relating to or
     arising from (i) a mutually agreed to public announcement of the existence
     (but not the terms or provisions) of this Agreement, (ii) economic
     conditions generally, or (iii) events or circumstances that affect the
     Business in the same manner and to the same extent as other businesses in
     the industry generally.

     "MOST RECENT BALANCE SHEET" means the balance sheet contained within the
     Most Recent Financial Statements.

     "OPERATING AGREEMENT" means the operating agreement of the Seller
     originally executed on October 31, 2001, as amended.

     "ORDINARY COURSE OF BUSINESS" means the conduct of business in a manner
     consistent with the past custom and practice of the Seller and its
     Affiliates (including with respect to quantity and frequency).

     "PERMITS" means any permits, authorizations, approvals, decisions, zoning
     orders, franchises, registrations, licenses, filings, certificates,
     variances or similar rights granted by or obtained from any Governmental
     Authority.

     "PERSON" means an individual, a partnership, a limited liability company, a
     corporation, an association, a joint stock company, a trust, a joint
     venture, an unincorporated organization or a Governmental Authority.

     "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights Agreement
     between the Buyer and the Seller to be executed at the Closing, the form of
     which is set forth on Exhibit A of this Agreement.

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     "SECURITIES ACT" means the Securities Act of 1933, as amended.

     "SECURITIES EXCHANGE ACT" means the Securities Exchange Act of 1934, as
     amended.

     "SECURITY INTEREST" means any mortgage, pledge, lien, encumbrance, charge
     or other security interest, other than: (a) mechanic's, materialmen's and
     similar liens that are being contested in good faith and for which the
     particular entity has provided adequate reserves; (b) liens for Taxes not
     yet due and payable or for Taxes that the taxpayer is contesting in good
     faith through appropriate proceedings and for which the taxpayer has
     provided adequate reserves; (c) purchase money liens and liens securing
     rental payments under capital lease arrangements; and (d) other liens
     arising in the Ordinary Course of Business and not incurred in connection
     with the borrowing of money.

     "SOFTWARE" means the Seller's proprietary software technology, products and
     associated documentation, as further described on SCHEDULE 1(A) of this
     Agreement.

     "SPECIAL MEETINGS" has the meaning set forth in Section 9.15 of this
     Agreement.

     "TAX" means any federal, state, local, or foreign income, gross receipts,
     license, payroll, employment, excise, severance, stamp, occupation,
     premium, windfall profits, environmental (including taxes under Code
     Section 59A), customs 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, whether disputed
     or not.

     "TAX RETURN" means any return, declaration, report, claim for refund, or
     information return or statement relating to Taxes, including any schedule,
     attachment or amendment.

     "TRANSACTION DOCUMENTS" means all documents and agreements to be entered
     into by one or more of the Parties in connection with the transactions
     contemplated by this Agreement.

     Additionally, the following terms will have the meanings defined for such
     terms in the corresponding Sections of this Agreement as set forth below:

<TABLE>
<CAPTION>
TERM                                 SECTION
----                                 -------
<S>                                  <C>
"AGREEMENT"                          Preface
"BUYER"                              Preface
"BUYER SEC DOCUMENTS"                3.21(g)
"BUYER'S DISCLOSURE SCHEDULE"        4
"CLOSING"                            2.3
"CLOSING DATE"                       2.3
"FINANCIAL STATEMENTS"               3.7
"HIRED EMPLOYEE"                     5.6
"INDEMNIFIED PARTY"                  7.4
"INDEMNIFYING PARTY"                 7.4
</TABLE>

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<TABLE>
<CAPTION>
TERM                                 SECTION
----                                 -------
<S>                                  <C>
"MOST RECENT FINANCIAL STATEMENTS"   3.7
"MOST RECENT FISCAL MONTH END"       3.7
"MOST RECENT FISCAL YEAR END"        3.7
"NON-COMPETITION AGREEMENTS"         6.1
"PARTY" and "PARTIES"                Preface
"PURCHASE PRICE"                     2.3
"SELLER"                             Preface
"SELLER'S DISCLOSURE SCHEDULE"       3
"THIRD PARTY CLAIM"                  7.4
"TRANSFER"                           3.21
</TABLE>

2.   BASIC TRANSACTION.

     2.1  PURCHASE AND SALE OF ASSETS. On the terms and subject to the
          conditions of this Agreement, on the Closing Date the Buyer will
          purchase from the Seller, and the Seller will sell, transfer, convey
          and deliver to the Buyer, the Acquired Assets, free and clear of all
          Security Interests, in exchange for the Purchase Price.

     2.2  NO ASSUMPTION OF LIABILITIES. Except for the Assumed Liabilities, the
          Buyer will not assume or otherwise become responsible for any
          Liabilities of the Seller at the Closing.

     2.3  PURCHASE PRICE. On the Closing Date, the Buyer will deliver 25,000
          shares of Innuity Stock to the Seller (the "PURCHASE PRICE").

     2.4  THE CLOSING. The closing of the transactions contemplated by this
          Agreement (the "CLOSING") will take place at the offices of Gray,
          Plant, Mooty, Mooty & Bennett, P.A., in Minneapolis, Minnesota, at
          9:00 a.m., on the second business day after the respective Parties
          have satisfied or waived all conditions to the obligations of the
          Parties to consummate the transactions contemplated by this Agreement
          (other than actions the Parties will take at the Closing itself) or
          any other time and date as the Parties may agree (the "CLOSING DATE").

     2.5  ALLOCATION. The Parties will allocate the Purchase Price and all other
          capitalizable costs among the Acquired Assets for all purposes,
          including financial accounting and tax purposes, in accordance with
          the allocation schedule to be determined by the Parties at the
          Closing.

3.   REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller, jointly and
     severally, represents and warrants to the Buyer that the statements
     contained in this Section 3 are correct and complete as of the date of this
     Agreement and will be correct and complete as of the Closing Date, except
     as set forth in the attached disclosure schedule accompanying this
     Agreement (the "SELLER'S DISCLOSURE SCHEDULE"). The Seller's Disclosure
     Schedule will be arranged in paragraphs corresponding to the sections
     contained in this Section 3.

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     3.1  ORGANIZATION, QUALIFICATION AND POWER. The Seller is a limited
          liability company duly organized, validly existing and in good
          standing under the laws of the State of Nevada. The Seller is duly
          authorized to conduct business and are in good standing under the Laws
          of each jurisdiction where such qualification is required. The Seller
          has full corporate power and authority and all Permits necessary to
          carry on the businesses in which it is engaged and in which it
          presently propose to engage, and to own and use the properties owned
          and used by it.

     3.2  AUTHORIZATION OF TRANSACTION. The Seller has full power and authority
          (including full limited liability company power and authority) to
          enter into and perform its obligations under this Agreement and the
          Transaction Documents to which it is a party. The managing member of
          the Seller has duly authorized the execution, delivery and performance
          of this Agreement and the Transaction Documents to which the Seller is
          a party. This Agreement and the Transaction Documents to which the
          Seller is a party constitute valid and legally binding obligations of
          the Seller, as applicable, enforceable in accordance with their
          respective terms and conditions.

     3.3  NONCONTRAVENTION. Except as set forth on Section 3.3 of the Seller's
          Disclosure Schedule, neither the execution and the delivery of this
          Agreement or the Transaction Documents to which the Seller is a party,
          nor the consummation of the contemplated transactions: (a) will
          violate any Law to which the Seller is subject; (b) will violate any
          provision of the articles or certificate of organization, limited
          liability company agreement, member control agreement, operating
          agreement or other organizational documents of the Seller; (c) will
          conflict with, result in a breach of, constitute a default under,
          result in the acceleration of, create in any party the right to
          accelerate, terminate, modify or cancel, or require any notice or
          consent under any agreement, contract, lease, license, instrument or
          other arrangement to which the Seller is a party or by which he or it
          is bound or to which any of his or its assets are subject (or result
          in the imposition of any Security Interest upon any of his or its
          assets); (d) requires the Seller to give any notice to, make any
          filing with, or obtain any authorization, consent or approval of any
          Governmental Authority in order for the Parties to consummate the
          transactions contemplated by this Agreement and the Transaction
          Documents; or (e) will result in the cancellation, forfeiture,
          revocation, suspension or adverse modification of any Permit owned or
          held by the Seller.

     3.4  BROKERS' FEES. Seller has no Liability or obligation to pay any fees
          or commissions to any broker, finder or agent with respect to the
          transactions contemplated by this Agreement for which the Buyer could
          become liable or obligated.

     3.5  TITLE TO ASSETS. The properties and assets used by the Seller, located
          on his or its premises, or shown on the Most Recent Balance Sheet or
          acquired after the date of the Most Recent Balance Sheet are free and
          clear of all Security Interests, except for properties and assets
          disposed of in the Ordinary Course of Business

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          since the date of the Most Recent Balance Sheet. The Seller has good
          and marketable title to or a valid leasehold interest in such
          properties and assets, including the Acquired Assets, free and clear
          of any Security Interest or other restriction on transfer.

     3.6  MEMBERS; SUBSIDIARIES. The membership interests of the Seller are held
          by the owners of record set forth on Section 3.6 of the Seller's
          Disclosure Schedule. The Seller does not have any subsidiaries and
          does not otherwise control, own directly or indirectly, or have any
          equity participation directly or indirectly in any Person.

     3.7  FINANCIAL STATEMENTS. Attached to Section 3.7 of the Seller's
          Disclosure Schedule is the following financial information related to
          the operations of the Seller's (the "FINANCIAL STATEMENTS"): (a)
          unaudited balance sheets and statements of income as of and for the
          fiscal year ended December 31, 2005 (the "MOST RECENT FISCAL YEAR
          END"); and (b) unaudited balance sheets and statements of income (the
          "MOST RECENT FINANCIAL STATEMENTS") for the five months ended June 30,
          2006, (the "MOST RECENT FISCAL MONTH END") for the Seller. The
          Financial Statements are true, complete and correct. No Material
          Adverse Effect has occurred to the businesses of the Seller since the
          Most Recent Financial Statements. Further, Section 3.7 of the Seller's
          Disclosure Schedule lists all Liabilities of the Seller that are not
          otherwise set forth on the Financial Statements.

     3.8  EVENTS SUBSEQUENT TO MOST RECENT FISCAL YEAR END. Since the Most
          Recent Fiscal Year End, there have been no changes in the assets,
          business, financial condition, operations, results of operations, or
          future prospects of the Seller that individually or in the aggregate
          would have a Material Adverse Effect on the Seller.

     3.9  UNDISCLOSED LIABILITIES. Except as set forth on Section 3.9 of the
          Seller's Disclosure Schedule, the Seller does not have any Liability
          (and there is no basis for any present or future action, suit,
          proceeding, hearing, investigation, charge, complaint, claim or demand
          against it giving rise to any Liability), except for: (a) Liabilities
          set forth on the Most Recent Balance Sheet (rather than in its notes);
          and (b) Liabilities that have arisen after the Most Recent Fiscal
          Month End in the Ordinary Course of Business (none of which results
          from, arises out of, relates to, is in the nature of or was caused by
          any breach of contract, breach of warranty, tort, infringement or
          violation of Law).

     3.10 TAX MATTERS. The Seller has filed all required Tax Returns. The Seller
          is treated as a partnership for Tax purposes, including federal and
          state income Tax purposes. All such Tax Returns were correct and
          complete in all respects. All Taxes owed by the Seller (whether or not
          shown on any Tax Return) have been paid. Except as set forth in
          Section 3.10 of the Seller's Disclosure Schedule, the Seller is not
          currently the beneficiary of any extension of time within which to
          file any Tax Return. No claim has ever been made that the Seller is or
          may be subject to taxation by a jurisdiction where it does not file
          Tax Returns. No assets of the

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          Seller have a Security Interest that arose in connection with any
          failure (or alleged failure) to pay any Tax.

     3.11 REAL PROPERTY. The Seller does not own any real property. Section 3.12
          of the Seller's Disclosure Schedule lists and describes briefly all
          real property leased or subleased to the Seller. The Seller has
          delivered to the Buyer correct and complete copies of the leases and
          subleases listed in Section 3.12 of the Seller's Disclosure Schedule.
          Except as set forth on Schedule 3.12 of the Seller's Disclosure
          Schedule, (a) the lease or sublease is legal, valid, binding,
          enforceable and in full force and effect; (b) the lease or sublease
          will continue to be legal, valid, binding, enforceable and in full
          force and effect on identical terms following the consummation of the
          contemplated transactions; (c) no party to the lease or sublease is in
          breach or default, and no event has occurred that, with notice or
          lapse of time, would constitute a breach or default or permit
          termination, modification or acceleration; (d) the Seller has not
          assigned, transferred, conveyed, mortgaged, deeded in trust or
          encumbered any interest in the leasehold or subleasehold; (e) all
          facilities leased or subleased have received all required approvals of
          governmental authorities (including Permits) and have been operated
          and maintained in accordance with applicable Laws; and (f) all
          facilities leased or subleased are supplied with utilities and other
          services necessary for the operation of the facilities.

     3.12 INTELLECTUAL PROPERTY.

          (a)  The Seller owns or has the right to use pursuant to license,
               sublicense, agreement or permission all Intellectual Property
               necessary for the operation of the businesses of the Seller as
               presently conducted and as presently proposed to be conducted.
               Each item of Intellectual Property owned or used by the Seller
               immediately before the Closing will be owned or available for use
               by the Buyer on identical terms and conditions immediately after
               the Closing. The Seller has taken all necessary action to
               maintain and protect each item of Intellectual Property that it
               owns or uses.

          (b)  The Seller has not interfered with, infringed upon,
               misappropriated or otherwise come into conflict with any
               Intellectual Property rights of third parties. The Seller has
               never received any charge, complaint, claim, demand or notice
               alleging any such interference, infringement, misappropriation or
               violation (including any claim that the Seller must license or
               refrain from using any Intellectual Property rights of any third
               party). As of the Closing Date no third party has interfered
               with, infringed upon, misappropriated or otherwise come into
               conflict with any Intellectual Property rights of the Seller.

          (c)  Section 3.12(c) of the Seller's Disclosure Schedule identifies
               the following: (i) each patent or registration that has been
               issued to the Seller for any Intellectual Property; (ii) each
               pending patent application or

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               application for registration that the Seller has made for any of
               its Intellectual Property; (iii) each license, agreement or other
               permission that the Seller has granted to any third party with
               respect to Intellectual Property (together with any exceptions);
               and (iv) each trade name or unregistered trademark used by the
               Seller in connection with any of its businesses.

          (d)  The Seller has delivered to the Buyer correct and complete copies
               of all such patents, registrations, applications, licenses,
               agreements and permissions (as amended to date) listed in Section
               3.12(c) of the Seller's Disclosure Schedule and have made
               available to the Buyer correct and complete copies of all other
               written documentation evidencing ownership and prosecution (if
               applicable) of each item. With respect to each item of
               Intellectual Property required to be identified in Section
               3.12(c) of the Seller's Disclosure Schedule: (i) a Seller
               possesses all right, title and interest in and to the item, free
               and clear of any Security Interest, license or other restriction;
               (ii) the item is not subject to any outstanding injunction,
               judgment, order, decree, ruling or charge; (iii) no action, suit,
               proceeding, hearing, investigation, charge, complaint, claim or
               demand is pending or, to the Knowledge of either of the managers,
               members and employees with responsibility for Intellectual
               Property matters of the Seller, is threatened that challenges the
               legality, validity, enforceability, use or ownership of the item;
               and (iv) the Seller has never agreed to indemnify any Person for
               or against any interference, infringement, misappropriation or
               other conflict with respect to the item.

          (e)  Section 3.12(e) of the Seller's Disclosure Schedule identifies
               each item of Intellectual Property that any third party owns and
               that the Seller uses pursuant to license, sublicense, agreement
               or permission. The Seller has delivered to the Buyer correct and
               complete copies of all such licenses, sublicenses, agreements and
               permissions (as amended to date).

          (f)  With respect to each item of Intellectual Property required to be
               identified in Section 3.12(e) of the Seller's Disclosure
               Schedule: (i) the license, sublicense, agreement or permission
               covering the item is legal, valid, binding, enforceable and in
               full force and effect; (ii) the license, sublicense, agreement or
               permission will continue to be legal, valid, binding, enforceable
               and in full force and effect on identical terms following the
               consummation of the contemplated transactions; (iii) no party to
               the license, sublicense, agreement or permission is in breach or
               default, and no event has occurred that, with notice or lapse of
               time, would constitute a breach or default or permit termination,
               modification or acceleration; (iv) no party to the license,
               sublicense, agreement or permission has repudiated any provision
               thereof; (v) for each sublicense, the representations and
               warranties set forth in subsections (i) through (iv) above are
               true and correct for the underlying license; (vi) the underlying
               item of Intellectual Property is not subject to any outstanding
               injunction,

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               judgment, order, decree, ruling or charge; (vii) no action, suit,
               proceeding, hearing, investigation, charge, complaint, claim or
               demand is pending or, to the Knowledge of either of the managers,
               members and employees with responsibility for Intellectual
               Property matters of the Seller, is threatened that challenges the
               legality, validity or enforceability of the underlying item of
               Intellectual Property; and (viii) the Seller has never granted
               any sublicense or similar right with respect to the license,
               sublicense, agreement or permission.

          (g)  To the Knowledge of any of the managers, members and employees
               with responsibility for Intellectual Property matters of the
               Seller, the Seller will not interfere with, infringe upon,
               misappropriate or otherwise come into conflict with, any
               Intellectual Property rights of third parties as a result of the
               continued operation of their businesses as presently conducted
               and as presently proposed to be conducted.

          (h)  None of the managers, members and employees with responsibility
               for Intellectual Property matters of the Seller has any Knowledge
               of any new products, inventions, procedures or methods of
               manufacturing or processing that any competitors or other Persons
               have developed that reasonably could be expected to supersede or
               make obsolete any product or process of the Seller.

          (i)  Except as set forth on Section 3.14(i) of the Seller's Disclosure
               Schedule, the Seller owns all components included in the Software
               and the Software contains no freeware, shareware or other open
               source free or public domain software. Section 3.14(i) of the
               Seller's Disclosure Schedule identifies all ancillary software
               necessary to use the Software. The Seller has no obligation to
               make any payment with respect to the use of the freeware
               identified on Section 3.14(i) of the Seller's Disclosure
               Schedule. The Seller owns, possesses and controls all source
               code, object code, documentation, benchmark tests, programmer
               level documentation, user level documentation, specifications and
               other materials necessary for the use of the Software. Except as
               set forth on Section 3.14(i) of the Seller's Disclosure Schedule,
               no copies of the Software's source code, object code, programmer
               level documentation, user level documentation, benchmark tests or
               any other documentation relating to the Software have been
               provided to any third parties. The Software is free of any remote
               or automatic disabling or recapture devices, passwords, master
               access keys, security devices, trap doors or computer viruses.
               The Software fully complies in all respects with the associated
               documentation, including the description and documents attached
               as SCHEDULE 1(A) to this Agreement, and such description and
               documentation accurately and completely describes the operation
               and use of the Software.

          (j)  Section 3.14(j) of the Seller's Disclosure Schedule sets forth
               the name of all Persons involved in the testing and development
               of the Software and all

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               Persons who have intellectual property assignment agreements,
               whether with the Seller relating to the Software.

          (k)  All former and current employees, consultants, contractors and
               other Persons who have ever been involved in any aspect of the
               design or creation of any of the Seller's Intellectual Property,
               including the Software, have executed valid and enforceable
               written agreements that cause ownership to accrue to or that
               assign to the Seller any and all rights to all Intellectual
               Property, including inventions, improvements or discoveries,
               whether patentable or not, made by them during their service to
               the Seller. Correct and complete copies of all such written
               agreements have been provided to the Buyer by the Seller prior to
               the date of this Agreement. No former or current employee,
               consultant, contractor or other Person who has ever been involved
               in any aspect of the design or creation of any of the Seller's
               Intellectual Property, including the Software, designed or
               created any of the Seller's Intellectual Property, including the
               Software, on his or her own time or without the use of any
               equipment, supplies, facilities or trade secret information of
               the Seller.

          (l)  The Seller has taken all steps necessary and appropriate to
               protect and preserve the confidentiality of all Confidential
               Information. All former and current employees, consultants,
               contractors and other Persons who have ever had access to any
               Confidential Information have executed valid and enforceable
               written confidentiality agreements. All use, disclosure or
               appropriation of Confidential Information to or by any third
               party has been pursuant to the terms of a valid and enforceable
               written confidentiality agreement between the Seller and such
               third party. Correct and complete copies of all such written
               confidentiality agreements have been provided to the Buyer by the
               Seller prior to the date of this Agreement.

          (m)  Except as specifically set forth in this Section 3.12, the Seller
               makes no representations and warranties with respect to the
               Software or the Seller's Intellectual Property, including implied
               warranties of merchantability and fitness for a particular
               purpose. The Software and the Intellectual Property are being
               purchased by the Buyer from the Seller on an "as is," "where is"
               basis.

     3.13 TANGIBLE ASSETS. The Seller owns or leases all buildings, machinery,
          equipment and other tangible assets necessary for the conduct of their
          businesses as presently conducted and as presently proposed to be
          conducted. Each such tangible asset is free from defects (patent and
          latent), has been maintained in accordance with normal industry
          practice, is in good operating condition and repair (subject to normal
          wear and tear), and is suitable for the purposes for which it
          presently is used and presently is proposed to be used.

     3.14 CONTRACTS. Section 3.14 of the Seller's Disclosure Schedule lists all
          contracts and other agreements, whether written or oral, to which the
          Seller is a party that provide for payments to the Seller, or that
          require the Seller to make payments to

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          a third party, in excess of $5,000 per year. The Seller has delivered
          to the Buyer a correct and complete copy of each written agreement
          listed in Section 3.14 of the Seller's Disclosure Schedule (as amended
          to date) and a written summary setting forth the terms and conditions
          of each oral agreement referred to in Section 3.14 of the Seller's
          Disclosure Schedule. With respect to each such agreement (a) the
          agreement is legal, valid, binding, enforceable and in full force and
          effect, (b) the agreement will continue to be legal, valid, binding,
          enforceable and in full force and effect on identical terms following
          the consummation of the transactions contemplated hereby, (c) no party
          is in breach or default, (d) no event has occurred that, with notice
          or lapse of time, would constitute a breach or default, or permit
          termination, modification, or acceleration, under the agreement; and
          (e) no party has repudiated any provision of the agreement.

     3.15 INSURANCE.

          (a)  Section 3.15 of the Seller's Disclosure Schedule sets forth the
               following information with respect to each insurance policy
               (including without limitation policies providing property,
               casualty, liability and workers' compensation coverage and bond
               and surety arrangements but excluding policies related to the
               employee benefit plans maintained by the Seller) to which the
               Seller is a party, a named insured or otherwise the beneficiary
               of coverage as of the Closing Date: (i) the name, address and
               telephone number of the agent; (ii) the name of the insurer, the
               name of the policyholder, and the name of each covered insured;
               and (iii) the policy number and the period of coverage.

          (b)  With respect to each insurance policy required to be identified
               in Section 3.15 of the Seller's Disclosure Schedule: (i) the
               policy is legal, valid, binding, enforceable and in full force
               and effect; (ii) the Seller nor any other party to the policy is
               in breach or default (including with respect to the payment of
               premiums or the giving of notices), and no event has occurred
               that, with notice or the lapse of time, would constitute a breach
               or default, or permit termination, modification or acceleration,
               under the policy; and (iii) no party to the policy has repudiated
               any provision of such policy.

     3.16 LEGAL COMPLIANCE; LITIGATION. Except as set forth on Section 3.16 of
          the Seller's Disclosure Schedule, the Seller has complied with all
          applicable laws related to his or its business in all respects, and no
          action, suit, proceeding, hearing, investigation, charge, complaint,
          claim, demand or notice has been filed, commenced or, to the Knowledge
          of the Seller, alleged against it. Except as set forth on Section 3.16
          of the Seller's Disclosure Schedule, there are no pending or to the
          Seller's knowledge any threatened claims, actions, suits, proceedings,
          hearings or investigations affecting the Acquired Assets or the
          business of the Seller. Except as set forth on Section 3.16 of the
          Seller's Disclosure Schedule, the Seller is not operating under or
          subject to, or in default with respect to, any order, writ, injunction
          or decree of any court or Governmental Authority. There

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          are no Permits or licenses necessary for the Buyer's operation of the
          businesses of the Seller as presently conducted and as presently
          proposed to be conducted.

     3.17 EMPLOYMENT MATTERS. The Seller has complied in all respects with all
          Laws relating to employment, equal employment opportunity,
          nondiscrimination, immigration, wages, hours, benefits, collective
          bargaining, the payment of social security and similar Taxes,
          occupational safety and health, and plant closing. To the Knowledge of
          any of the managers, members and employees with responsibility for
          employment matters of the Seller, no executive, key employee or group
          of employees has any plans to terminate employment with the Seller.

     3.18 EMPLOYEE BENEFITS. Section 3.18 of the Seller's Disclosure Schedule
          contains a list of all employee benefit plans maintained, or
          contributed to, by the Seller. The Seller is not and has not been in
          violation in form and in operation of any provision of ERISA or any
          other Law or regulation relating to any employee benefit plan.

     3.19 ENVIRONMENTAL. The Seller has complied and are in compliance with all
          environmental laws and there are no pending or threatened
          environmental claims, administrative orders, determinations and
          regulations concerning public health and safety, workers health and
          safety, and pollution or protection of the environment which are in
          any way related to the businesses of the Seller.

     3.20 CERTAIN BUSINESS RELATIONSHIPS WITH THE SELLER. None of the members of
          the Seller or its Affiliates, have been involved in any business
          arrangement or relationship with the Seller within the past 12 months.
          None of the members of the Seller or its Affiliates own any asset,
          tangible or intangible, that is used in the business of the Seller,
          including the Intellectual Property used in the businesses of the
          Seller.

     3.21 SECURITIES REPRESENTATIONS.

          (a)  The Seller has such knowledge and experience in financial and
               business matters that it is capable of evaluating the merits and
               risks of the acquisition of Innuity Stock and, by reason of the
               Seller's financial and business experience, has the capacity to
               protect the Seller's interests in connection with the acquisition
               of Innuity Stock. The Seller is financially able to bear the
               economic risk of the acquisition of Innuity Stock contemplated by
               this Agreement, including the total loss thereof. The Seller was
               not organized for the specific purpose of acquiring the Innuity
               Stock.

          (b)  The Seller has received and reviewed all information it considers
               necessary or appropriate for deciding whether to acquire the
               Innuity Stock for the account of the Seller. The Seller further
               represents that it has had an opportunity to ask questions and
               receive answers from the Buyer and its officers and employees
               regarding the terms and conditions of purchase of the Innuity
               Stock and regarding the business, financial affairs and other
               aspects

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               of the Buyer and has further had the opportunity to obtain any
               information (to the extent the Buyer possesses or can acquire
               such information without unreasonable effort or expense) which
               the Seller deems necessary to evaluate the investment and to
               verify the accuracy of information otherwise provided to the
               Seller.

          (c)  The Seller acknowledges that the Innuity Stock has not been
               registered under the Securities Act, or qualified under
               applicable blue sky laws or any other applicable blue sky laws in
               reliance, in part, on the representations and warranties herein.
               The Innuity Stock is being acquired by the Seller for investment
               purposes for the Seller's own account only and not for sale or
               with a view to distribution of all or any part of the Innuity
               Stock.

          (d)  The Seller understands that unless the shares of Innuity Stock
               become registered under the Securities Act pursuant to the
               Registration Rights Agreement, the shares of Innuity Stock are
               "restricted securities" under the federal securities laws in that
               such securities will be acquired from the Buyer in a transaction
               not involving a public offering, and that under such laws and
               applicable regulations such securities may be resold only upon
               registration or without registration under the Act only in
               certain limited circumstances in each case in compliance with
               applicable securities laws and that otherwise such securities
               must be held indefinitely. The Seller understands that each
               certificate representing Innuity Stock will bear a transfer
               restriction substantially in the following form:

               THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
               FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
               ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES OR
               "BLUE-SKY" LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED,
               ASSIGNED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
               ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM.

          (e)  The Seller understands that unless the shares of Innuity Stock
               become registered under the Securities Act pursuant to the
               Registration Rights Agreement, the shares of Innuity Stock, and
               any securities issued as a dividend or otherwise distributed
               thereon, will not be sold, transferred, assigned, pledged,
               encumbered or otherwise disposed of (each a "TRANSFER") except
               upon the conditions specified in this Agreement, which conditions
               are intended to insure compliance with the provisions of the
               Securities Act. The Seller will observe and comply with the
               Securities Act and the rules and regulations promulgated by the
               Securities and Exchange Commission thereunder as no in effect or
               hereafter enacted or promulgated in connection with any Transfer
               of shares of Innuity Stock beneficially owned by the Seller of
               the Selling Members If the shares of the Innuity Stock become
               registered,

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               any Transfers of such shares will be governed by the terms and
               conditions of Securities Exchange Act, the registration statement
               for such shares and the Registration Rights Agreement.

          (f)  No shares of Innuity Stock acquired pursuant to this Agreement
               may be transferred except (i) upon written notice to the Buyer
               prior to any Transfer and (ii) if accompanied by the written
               opinion of counsel to the Buyer stating that in the opinion of
               such counsel such proposed Transfer does not involve a
               transaction requiring registration or qualification of such
               shares of Innuity Stock under the Securities Act or the
               securities or "blue-sky" laws of any relevant state of the United
               States. The Seller understands and agrees that the Buyer, at its
               discretion, may cause stop transfer orders to be placed with its
               transfer agent with respect to certificates for the Innuity Stock
               in the event of a proposed Transfer in violation or breach of
               this Agreement or that is or may otherwise be unlawful.
               Notwithstanding the foregoing, the Buyer will not prohibit the
               Transfer of Innuity Stock to the extent that such a Transfer is
               in compliance with (a) the Securities Act (including Rule 144
               promulgated under the Securities Act), the Securities Exchange
               Act and any applicable state securities or "blue-sky" laws, and
               (b) if the shares of Innuity Stock are registered, the applicable
               registration statement and the Registration Rights Agreement.

          (g)  The Seller has read and reviewed all of the Buyer's
               registrations, reports, proxy statements, schedules, forms,
               statements and other documents filed with the SEC under either of
               the Act or the Securities Exchange Act, since September 30, 2006
               (the "BUYER SEC DOCUMENTS").

     3.22 OTHER INFORMATION. The information concerning the Seller set forth in
          this Agreement and the Schedules and Exhibits attached to this
          Agreement and any statement or certificate of the Seller furnished or
          to be furnished to the Buyer pursuant to this Agreement, does not and
          will not contain any untrue statement of a material fact or omit to
          state a material fact required to be stated herein or therein or
          necessary to make the statements and facts contained herein or
          therein, in light of the circumstances in which they are made, not
          false or misleading.

4.   REPRESENTATIONS AND WARRANTIES OF THE BUYER. The Buyer represents and
     warrants to the Seller that the statements contained in this Section 4 are
     correct and complete as of the date of this Agreement and will be correct
     and complete as of the Closing Date, except as set forth in the disclosure
     schedule of the Buyer accompanying this Agreement (the "BUYER'S DISCLOSURE
     SCHEDULE"). The Buyer's Disclosure Schedule will be arranged in paragraphs
     corresponding to the numbered paragraphs contained in this Section 4.

     4.1  ORGANIZATION OF THE BUYER. The Buyer is a corporation duly organized,
          validly existing and in good standing under the laws of the State of
          Utah. The Buyer is duly authorized to conduct business and is in good
          standing under the Laws of each jurisdiction where such qualification
          is required. The Buyer has full

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          corporate power and authority and all Permits necessary to carry on
          the businesses in which it is engaged and in which it presently
          proposes to engage, and to own and use the properties owned and used
          by it.

     4.2  AUTHORIZATION OF TRANSACTION. The Buyer has full power and authority
          (including full corporate power and authority) to enter into and
          perform its obligations under this Agreement and the Transaction
          Documents to which it is a party. This Agreement and the Transaction
          Documents to which it is a party constitute valid and legally binding
          obligations of the Buyer, enforceable in accordance with their
          respective terms and conditions.

     4.3  SEC DOCUMENTS. As of their respective filing dates, the Buyer SEC
          Documents complied in all material respects with the requirements of
          the Securities Act and the Securities Exchange Act, and none of the
          Buyer SEC Documents contained any untrue statement of a material fact
          or omitted to stated a material fact required to be state therein or
          necessary to make the statements made therein, in light of the
          circumstances in which they were made, not misleading, except to the
          extent corrected by a subsequently filed Buyer SEC Document.

5.   COVENANTS.

     5.1  GENERAL. In case at any time after the Closing any further action is
          necessary or desirable to carry out the purposes of this Agreement,
          the Transaction Documents and the contemplated transactions, each of
          the Parties will take such further action (including the execution and
          delivery of further instruments and documents) as any other Party
          reasonably may request, all at the sole cost and expense of the
          requesting Party (unless the requesting Party is entitled to
          indemnification therefor under Section 7). The Seller acknowledges and
          agrees that from and after the Closing the Buyer will be entitled to
          copies of all documents, books, records (including Tax records),
          agreements and financial data of any sort relating to the Seller.

     5.2  NOTICES AND CONSENTS. Each of the Parties will give any notices to,
          make any filings with and use its reasonable best efforts to obtain
          any authorizations, consents and approvals of any Governmental
          Authority necessary in connection with the transactions contemplated
          by this Agreement.

     5.3  LITIGATION SUPPORT. In the event and for so long as any Party is
          actively contesting or defending against any action, suit, proceeding,
          hearing, investigation, charge, complaint, claim or demand in
          connection with (a) any transaction contemplated under this Agreement,
          or (b) any fact, situation, circumstance, status, condition, activity,
          practice, plan, occurrence, event, incident, action, failure to act or
          transaction on or prior to the Closing Date involving the Seller, each
          of the other Parties will cooperate with the contesting or defending
          Party and his, her or its counsel in the contest or defense, make
          available his, her or its personnel, and provide such testimony and
          access to his, her or its books and records as will be necessary in
          connection with the contest or

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          defense, all at the sole cost and expense of the contesting or
          defending Party (unless the contesting or defending Party is entitled
          to indemnification therefor under Section 7).

     5.4  TRANSITION. Neither the Seller or its Affiliates will take any action
          that is designed or intended to have the effect of discouraging any
          lessor, licensor, customer, supplier or other business associate of
          any of the Seller from maintaining the same business relationships
          with the Buyer and its Affiliates after the Closing as it maintained
          with the Seller prior to the Closing. The Seller will refer all
          customer inquiries relating to the businesses of the Seller to the
          Buyer from and after the Closing.

     5.5  CONFIDENTIALITY. The Seller will treat and hold as such all of the
          Confidential Information, refrain from using any of the Confidential
          Information except in connection with this Agreement, and deliver
          promptly to the Buyer or destroy, at the request and option of the
          Buyer, all tangible embodiments (and all copies) of the Confidential
          Information that are in his possession. In the event that a Seller
          Member is requested or required (by oral question or request for
          information or documents in any legal proceeding, interrogatory,
          subpoena, civil investigative demand or similar process) to disclose
          any Confidential Information, the applicable Seller Member will notify
          the Buyer promptly of the request or requirement so that the Buyer may
          seek an appropriate protective order or waive compliance with the
          provisions of this Section 5.5. If, in the absence of a protective
          order or the receipt of a waiver, the Seller Member is, on the advice
          of counsel, compelled to disclose any Confidential Information to the
          tribunal or else stand liable for contempt, the Seller Member may
          disclose the Confidential Information to the tribunal. The disclosing
          party must use his reasonable best efforts to obtain, at the
          reasonable request of the Buyer, an order or other assurance that
          confidential treatment will be accorded to such portion of the
          Confidential Information required to be disclosed as the Buyer will
          designate.

     5.6  COVENANT NOT TO COMPETE. For a period of five years from and after the
          Closing Date, the Seller will not engage directly or indirectly
          (except having less than 1% ownership of the outstanding stock in any
          publicly-traded corporation) in any business that the Seller conducts
          as of the Closing Date in any geographic area in which the Seller
          conducts that business as of the Closing Date. If the final judgment
          of a court of competent jurisdiction declares that any term or
          provision of this Section 5.6 is invalid or unenforceable, the Parties
          agree that the court making the determination of invalidity or
          unenforceability will have the power to reduce the scope, duration, or
          area of the term or provision, to delete specific words or phrases, or
          to replace any invalid or unenforceable term or provision with a term
          or provision that is valid and enforceable and that comes closest to
          expressing the intention of the invalid or unenforceable term or
          provision, and this Agreement will be enforceable as so modified after
          the expiration of the time within which the judgment may be appealed.

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     5.7  NONSOLICITATION; NON-HIRE AND NONINTERFERENCE. For a period of five
          years from and after the Closing Date, the Seller will not directly or
          indirectly (a) induce or attempt to induce any Person hired by the
          Buyer or its Affiliates (each, a "HIRED EMPLOYEE") to leave the employ
          of the Buyer and its Affiliates, or in any way interfere adversely
          with the relationship between any Hired Employee and the Buyer and its
          Affiliates, (b) induce or attempt to induce any Hired Employee to work
          for, render services or provide advice to or supply confidential
          business information or trade secrets of the Buyer and its Affiliates
          to any Person, (c) employ, or otherwise pay for services rendered by,
          any Hired Employee in any business enterprise with which the Seller
          and its Affiliates may be associated, connected or affiliated, or (d)
          induce or attempt to induce any customer, supplier, licensee, licensor
          or other Person having a business relationship with the Seller or its
          Affiliates to cease doing business with the Buyer and its Affiliates,
          or in any way interfere with the relationship between any such
          customer, supplier, licensee, licensor or other such Person and the
          Buyer and its Affiliates. If the final judgment of a court of
          competent jurisdiction declares that any term or provision of this
          Section 5.7 is invalid or unenforceable, the Parties agree that the
          court making the determination of invalidity or unenforceability will
          have the power to reduce the scope, duration, or area of the term or
          provision, to delete specific words or phrases, or to replace any
          invalid or unenforceable term or provision with a term or provision
          that is valid and enforceable and that comes closest to expressing the
          intention of the invalid or unenforceable term or provision, and this
          Agreement will be enforceable as so modified after the expiration of
          the time within which the judgment may be appealed.

6.   CONDITIONS TO OBLIGATIONS TO CLOSE.

     6.1  CONDITIONS TO OBLIGATIONS OF THE BUYER. The obligation of the Buyer to
          consummate the transactions to be performed by it in connection with
          the Closing are subject to satisfaction of the following conditions:

          (a)  the representations and warranties set forth in Section 3 will be
               true and correct in all respects at and as of the Closing Date;

          (b)  the Seller will have performed and complied with all its
               covenants contained in this Agreement in all respects through the
               Closing;

          (c)  no action, suit or proceeding will be pending or threatened
               before any Governmental Authority in which an unfavorable
               injunction, judgment, order, decree, ruling or charge would: (i)
               prevent consummation of any of the transactions contemplated by
               this Agreement; (ii) cause any of the transactions contemplated
               by this Agreement to be rescinded following consummation; or
               (iii) affect adversely the right of the Buyer to own the Acquired
               Assets or to operate the former businesses of the Seller;

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          (d)  the Seller will have executed and delivered to the Buyer a
               certificate to the effect that each of the conditions specified
               in this Section 6.1(a) to (c) is satisfied in all respects;

          (e)  members of the Seller holding at least 70% of the Seller's
               membership units will have approved this Agreement and the
               Transaction Documents and the transactions contemplated by this
               Agreement and the Transaction Documents at the Special Meeting or
               by a written consent circulated to the members in accordance with
               Section 5.4 of the Operating Agreement;

          (f)  the Seller will have delivered to the Buyer a list of Liabilities
               of the Seller current as of the Closing Date, certified by a
               manager of each of the Seller;

          (g)  the Seller will have procured all of the necessary third party
               consents, authorizations and approvals, all of which must be
               final and non-appealable for the contracts and agreements
               described on Section 3.14 of the Seller's Disclosure Schedule;

          (h)  there will not have occurred any material adverse change in the
               condition (financial or otherwise), properties, business
               operations, results of operations or prospects of the Seller or
               the Acquired Assets, individually or in the aggregate;

          (i)  the Buyer will have completed its business, legal, accounting and
               Intellectual Property due diligence on the businesses of the
               Seller to its sole satisfaction;

          (j)  the Seller will have delivered to the Buyer non-competition
               agreements between the Buyer and each of the Persons that are
               Affiliates or employees of the Seller designated by the Buyer in
               its sole and absolute discretion, in form and substance
               acceptable to the Buyer (collectively, the "NON-COMPETITION
               AGREEMENTS");

          (k)  the Seller will have delivered to the Buyer a bill of sale,
               executed by the Seller, in a form acceptable to the Buyer;

          (l)  the Seller will have delivered an assignment and assumption
               agreement whereby the Buyer will accept and assume the agreements
               described on Section 3.14 of the Seller's Disclosure Schedule, in
               a form and substance agreeable to the Buyer;

          (m)  the Seller will have delivered intellectual property assignment
               agreement(s) whereby each of the Persons that are Affiliates or
               employees of the Seller designated by the Buyer in its sole and
               absolute discretion, will have delivered his, her or its rights
               to the Intellectual Property of the Seller to the Seller prior to
               the Closing Date;

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          (n)  the Seller will have delivered a certificate of incumbency, dated
               as of the Closing Date, as to the managers and other personnel of
               the Seller executing this Agreement and any certificate,
               instrument or document to be delivered by the Seller at the
               Closing; and

          (o)  the Seller will have delivered a certified copy of limited
               liability company resolutions authorizing the execution and
               delivery of this Agreement and the consummation of the
               transactions contemplated by this Agreement;

          (p)  the Seller will have delivered to the Buyer such other documents
               and instruments as are reasonably necessary or appropriate to
               effect the consummation of the contemplated transactions or that
               may be required under any Laws; and

          (q)  all actions to be taken by the Seller in connection with
               consummation of the contemplated transactions and all
               certificates, instruments and other documents required to effect
               these transactions will be reasonably satisfactory in form and
               substance to the Buyer.

     6.2  CONDITIONS TO OBLIGATION OF THE SELLER. The obligation of the Seller
          to consummate the transactions to be performed by them in connection
          with the Closing are subject to satisfaction of the following
          conditions:

          (a)  the representations and warranties set forth in Section 4 will be
               true and correct in all respects at and as of the Closing Date;

          (b)  the Buyer will have performed and complied with all its covenants
               contained in this Agreement in all respects through the Closing;

          (c)  no action, suit or proceeding will be pending or threatened
               before any Governmental Authority in which an unfavorable
               injunction, judgment, order, decree, ruling or charge would: (i)
               prevent consummation of any of the transactions contemplated by
               this Agreement; (ii) cause any of the transactions contemplated
               by this Agreement to be rescinded following consummation; or
               (iii) affect adversely the right of the Buyer to own the Acquired
               Assets or to operate the former businesses of the Seller;

          (d)  the Buyer will have executed and delivered to the Buyer a
               certificate to the effect that each of the conditions specified
               in this Section 6.2(a) to (c) is satisfied in all respects;

          (e)  members of the Seller holding at least 70% of the Seller's
               membership units will have approved this Agreement and the
               Transaction Documents and the transactions contemplated by this
               Agreement and the Transaction Documents at the Special Meeting or
               by a written consent circulated to the members in accordance with
               Section 5.4 of the Operating Agreement;

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          (f)  the Buyer will have delivered the Purchase Price to the Seller in
               accordance with Section 2 of this Agreement;

          (g)  the Buyer will have delivered the Registration Rights Agreement
               to the Seller, executed by the Buyer;

          (h)  the Buyer will have delivered a certificate of incumbency, dated
               as of the Closing Date, as to the officers and other personnel of
               the Buyer executing this Agreement and any certificate,
               instrument or document to be delivered by the Buyer at the
               Closing; and

          (i)  the Buyer will have delivered a certified copy of corporate
               resolutions authorizing the execution and delivery of this
               Agreement and the consummation of the transactions contemplated
               by this Agreement.

7.   REMEDIES FOR BREACHES OF THIS AGREEMENT.

     7.1  SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS. Notwithstanding
          any investigation made by or on behalf of any of the Parties or the
          results of any investigation, and notwithstanding the participation of
          any Party in the Closing, (a) the representations and warranties found
          in Sections 3.5, 3.6 and 3.12 (the "FUNDAMENTAL REPRESENTATIONS") and
          the covenants found in this Agreement will continue in full force and
          effect indefinitely (subject to applicable statutes of limitation, and
          (b) the remainder of the representations and warranties contained in
          this Agreement will continue in full force and effect for a period of
          three years following the Closing, unless a shorter period of survival
          is specifically set forth in this Agreement.

     7.2  INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE BUYER.

          (a)  If the Seller breaches (or in the event any third party alleges
               facts that, if true, would mean the Seller has breached) any
               representations, warranties or covenants contained in this
               Agreement, provided that the Buyer makes a written claim for
               indemnification against the Seller, then the Seller will
               indemnify the Buyer Parties from and against the entirety of any
               Adverse Consequences any of the Buyer Parties may suffer through
               and after the date of the claim for indemnification (including
               any Adverse Consequences the Buyer Parties may suffer after the
               end of any applicable survival period) resulting from, arising
               out of, relating to, in the nature of, or caused by such breach
               (or alleged breach).

          (b)  The Seller will indemnify the Buyer Parties from and against the
               entirety of any Adverse Consequences any of the Buyer Parties may
               suffer through and after the date of the claim for
               indemnification (including any Adverse Consequences the Buyer
               Parties may suffer after the end of any applicable survival
               period) resulting from, arising out of, relating to, in the
               nature of, or caused by any Liability of the Seller (including
               any Liability of the Seller that becomes a Liability of the Buyer
               under any bulk transfer law of

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               any jurisdiction, under any common law doctrine of de facto
               merger or successor liability, or otherwise by operation of Law)
               that is not an Assumed Liability.

          (c)  The obligation to indemnify the Buyer following the Closing from
               and against any Adverse Consequences resulting from, arising out
               of, relating to, in the nature of or caused by the breach (or
               alleged breach) under this Section 7.2 will be subject to each of
               the following:

               (i)  The Buyer Parties may not assert a claim for indemnification
                    against the Seller until the Buyer has suffered Adverse
                    Consequences by reason of all such breaches (or alleged
                    breaches) in excess of an aggregate threshold equal to
                    $10,000, after which point the Buyer Parties will be
                    indemnified by the Seller only from and against Adverse
                    Consequences from the first dollar of such Adverse
                    Consequences (the "BASKET"). Notwithstanding the foregoing,
                    the Basket will not apply to any claims for indemnification
                    of the Buyer Parties related to Adverse Consequences arising
                    from breaches of the Fundamental Representations or under
                    Section 7.2(b) of this Agreement.

               (ii) The Seller will have no Liability for indemnification under
                    this Section 7 in excess of an aggregate amount equal to per
                    share value of the Innuity Stock at the Closing, multiplied
                    by 425,000 (the "CAP"). Notwithstanding the foregoing, the
                    Cap will not apply to any claims for indemnification of the
                    Buyer Parties related to Adverse Consequences arising from
                    breaches of the Fundamental Representations or under Section
                    7.2(b) of this Agreement.

     7.3  INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE SELLER. If the Buyer
          breaches (or in the event any third party alleges facts that, if true,
          would mean the Buyer has breached) any representations, warranties or
          covenants contained in this Agreement, provided that the Seller makes
          a written claim for indemnification against the Buyer, then the Buyer
          will indemnify the Seller, as applicable, from and against the
          entirety of any Adverse Consequences the Seller may suffer through and
          after the date of the claim for indemnification (including any Adverse
          Consequences the Seller may suffer after the end of any applicable
          survival period) resulting from, arising out of, relating to, in the
          nature of or caused by such breach (or alleged breach).

     7.4  MATTERS INVOLVING THIRD PARTIES.

          (a)  If any third party will notify any Party (the "INDEMNIFIED
               PARTY") with respect to any matter (a "THIRD PARTY CLAIM") that
               may give rise to a claim for indemnification against any other
               Party (the "INDEMNIFYING PARTY") under this Section 7, then the
               Indemnified Party will promptly

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               notify each Indemnifying Party in writing. Delay on the part of
               the Indemnified Party in notifying any Indemnifying Party will
               not relieve the Indemnifying Party from their obligation unless
               (and then solely to the extent) the Indemnifying Party is
               prejudiced.

          (b)  Any Indemnifying Party will have the right to defend the
               Indemnified Party against the Third Party Claim with counsel of
               its choice reasonably satisfactory to the Indemnified Party so
               long as (i) the Indemnifying Party notifies the Indemnified Party
               in writing within 15 days after the Indemnified Party has given
               notice of the Third Party Claim that the Indemnifying Party will
               indemnify the Indemnified Party from and against the entirety of
               any Adverse Consequences the Indemnified Party may suffer
               resulting from, arising out of, relating to, in the nature of or
               caused by the Third Party Claim, (ii) the Indemnifying Party
               provides the Indemnified Party with evidence reasonably
               acceptable to the Indemnified Party that the Indemnifying Party
               will have the financial resources to defend against the Third
               Party Claim and fulfill its indemnification obligations, (iii)
               the Third Party Claim involves only money damages and does not
               seek an injunction or other equitable relief, (iv) settlement of,
               or an adverse judgment with respect to, the Third Party Claim is
               not, in the good faith judgment of the Indemnified Party, likely
               to establish a precedential custom or practice materially adverse
               to the continuing business interests of the Indemnified Party,
               and (v) the Indemnifying Party conducts the defense of the Third
               Party Claim actively and diligently.

          (c)  So long as the Indemnifying Party is conducting the defense of
               the Third Party Claim in accordance with Section 7.4(b), (i) the
               Indemnified Party may retain separate co-counsel at its sole cost
               and expense and participate in the defense of the Third Party
               Claim, (ii) the Indemnified Party will not consent to the entry
               of any judgment or enter into any settlement with respect to the
               Third Party Claim without the prior written consent of the
               Indemnifying Party (not to be withheld unreasonably), and (iii)
               the Indemnifying Party will not consent to the entry of any
               judgment or enter into any settlement with respect to the Third
               Party Claim without the prior written consent of the Indemnified
               Party (not to be withheld unreasonably).

          (d)  If any of the conditions in Section 7.4(b) is not or is no longer
               satisfied, (i) the Indemnified Party may defend against, and
               consent to the entry of any judgment or enter into any settlement
               with respect to, the Third Party Claim in any manner it
               reasonably may deem appropriate (and the Indemnified Party need
               not consult with, or obtain any consent from, any Indemnifying
               Party), (ii) the Indemnifying Parties will reimburse the
               Indemnified Party promptly and periodically for the costs of
               defending against the Third Party Claim (including reasonable
               attorneys' fees and expenses), and (iii) the Indemnifying Parties
               will remain responsible for any Adverse Consequences the
               Indemnified Party may suffer resulting

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               from, arising out of, relating to, in the nature of, or caused by
               the Third Party Claim to the fullest extent provided in this
               Section 8.

     7.5  ADJUSTMENT TO PURCHASE PRICE. All indemnification payments under this
          Section 7 will be deemed adjustments to the Purchase Price.

     7.6  RECOUPMENT AGAINST INNUITY STOCK. Any indemnification to which the
          Buyer Parties are entitled under this Agreement as a result of any
          Adverse Consequences it may suffer arising out of the breach (or
          alleged breach) of any Adverse Consequences it may suffer will be
          satisfied by the Seller through the return of Innuity Stock held by
          the Seller with a value at the time such Adverse Consequences arose
          equal to the amount of such Adverse Consequences. The Buyer's right to
          recoup Adverse Consequences in exchange for a return of Innuity Stock
          under this Section 7.6 will not otherwise limit any rights of the
          Buyer Parties to recover under this Section 7.

     7.7  OTHER INDEMNIFICATION PROVISIONS. The above indemnification provisions
          are in addition to, and not in derogation of, any statutory, equitable
          or common law remedy any Party may have with respect to the
          transactions contemplated by this Agreement. The Seller agrees that it
          will not make any claim for indemnification against any of the Buyer
          Parties by reason of the fact that he, she or it was a director,
          officer, employee, shareholder or agent of the Seller or was serving
          at the request of the entity as a partner, trustee, director, officer,
          employee or agent of another entity (whether the claim is for
          judgments, damages, penalties, fines, costs, amounts paid in
          settlement, losses, expenses or otherwise and whether the claim is
          pursuant to any statute, charter document, bylaw, agreement or
          otherwise) with respect to any action, suit, proceeding, complaint,
          claim or demand brought by any of the Buyer Parties against the Seller
          (whether the action, suit, proceeding, complaint, claim or demand is
          pursuant to this Agreement, applicable Law or otherwise).

8.   TERMINATION.

     8.1  TERMINATION OF AGREEMENT. The Parties may terminate this Agreement as
          provided below:

          (a)  the Buyer and the Seller may terminate this Agreement by mutual
               written consent at any time prior to the Closing; and

          (b)  The Buyer may terminate this Agreement by giving written notice
               to the Seller at any time prior to the Closing (i) in the event
               the Seller has materially breached any representation, warranty
               or covenant contained in this Agreement and not qualified by
               materiality, or breached any representation, warranty or covenant
               contained in this Agreement that is qualified by materiality, and
               the Buyer has notified the Seller of the breach, the breach
               cannot be cured or has continued without cure or written waiver
               by the Parent for a period of 10 days after the notice of

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               breach, or (ii) if the Closing does not occur on or before
               December 31, 2006, by reason of the failure of any condition
               precedent under Section 6.1 of this Agreement (unless the failure
               results primarily from the Buyer itself breaching any
               representation, warranty or covenant contained in this
               Agreement), subject to extension by mutual agreement of the
               Parties;

          (c)  The Seller may terminate this Agreement by giving written notice
               to the Buyer at any time prior to the Closing (i) in the event
               the Buyer has materially breached any representation, warranty or
               covenant contained in this Agreement and not qualified by
               materiality, or breached any representation, warranty or covenant
               contained in this Agreement that is qualified by materiality, and
               the Seller has notified the Buyer of the breach, and the breach
               cannot be cured or has continued without cure or written waiver
               by the Seller for a period of 10 days after the notice of breach,
               or (ii) if the Closing does not occur on or before December 31,
               2006, by reason of the failure of any condition precedent under
               Section 6.2 of this Agreement (unless the failure results
               primarily from the Seller itself breaching any representation,
               warranty or covenant contained in this Agreement), subject to
               extension by mutual agreement of the Parties;

          (d)  the Buyer may terminate this Agreement by giving written notice
               to the Seller on or before the 30th day following the date of
               this Agreement if the Buyer is not reasonably satisfied with the
               results of its continuing business, legal and accounting due
               diligence regarding the Seller; and

          (e)  Either Party may terminate this Agreement for any reason if the
               Closing has not occurred by December 31, 2006.

     8.2  EFFECT OF TERMINATION. If any Party terminates this Agreement pursuant
          to Section 8.1, all rights and obligations of the Parties under this
          Agreement will terminate without any Liability of any Party to any
          other Party (except for any Liability of any Party then in breach).

9.   MISCELLANEOUS.

     9.1  PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. The Seller will not make any
          public announcement regarding this Agreement following the Closing
          without the prior written consent of the Buyer. The Buyer will issue a
          press release following the Closing and will offer the Seller an
          opportunity to review the press release before it is distributed.

     9.2  NO THIRD-PARTY BENEFICIARIES. This Agreement will not confer any
          rights or remedies upon any Person (including without limitation
          employees of the Seller) other than the Parties and their respective
          successors and permitted assigns.

     9.3  ENTIRE AGREEMENT. This Agreement (including the documents referred to
          in this Agreement) and the Transaction Documents constitute the entire
          agreement

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          between the Parties and supersede any prior understandings, agreements
          or representations by or between the Parties, written or oral, to the
          extent they related in any way to the subject matter of this
          Agreement.

     9.4  SUCCESSION AND ASSIGNMENT. This Agreement will be binding upon and
          inure to the benefit of the Parties and their respective successors
          and permitted assigns. No Party may assign either this Agreement or
          any of its rights, interests or obligations under this Agreement
          without the prior written approval of the other Party. The Buyer,
          however, may (a) assign any or all of its rights and interests
          hereunder to one or more of its Affiliates, and (b) designate one or
          more of its Affiliates to perform its obligations under this Agreement
          (in any or all of which cases the Buyer nonetheless will remain
          responsible for the performance of all of its obligations).

     9.5  COUNTERPARTS AND FACSIMILE SIGNATURES. This Agreement may be executed
          in one or more counterparts, each of which will be deemed an original
          but all of which together will constitute one and the same instrument,
          and by facsimile.

     9.6  GOVERNING LAW. This Agreement will be governed by and construed in
          accordance with the domestic laws of the State of Washington without
          giving effect to any choice or conflict of law provision or rule
          (whether of the State of Washington or any other jurisdiction) that
          would cause the application of the laws of any jurisdiction other than
          the State of Washington.

     9.7  AMENDMENTS AND WAIVERS. No amendment of any provision of this
          Agreement will be valid unless the same is in writing and signed by
          the Buyer and the Seller. No waiver by any Party of any default,
          misrepresentation or breach of warranty or covenant hereunder, whether
          intentional or not, will be deemed to extend to any prior or
          subsequent default, misrepresentation or breach of warranty or
          covenant under this Agreement or affect in any way any rights arising
          by virtue of any prior or subsequent such occurrence.

     9.8  SEVERABILITY. Any term or provision of this Agreement that is invalid
          or unenforceable in any situation in any jurisdiction will not affect
          the validity or enforceability of the remaining terms and provisions
          of this Agreement or the validity or enforceability of the offending
          term or provision in any other situation or in any other jurisdiction.

     9.9  EXPENSES. The Buyer and the Seller will bear their own costs and
          expenses (including legal fees and expenses) incurred in connection
          with this Agreement and the contemplated transactions.

     9.10 CONSTRUCTION. The Parties have participated jointly in the negotiation
          and drafting of this Agreement. In the event an ambiguity or question
          of intent or interpretation arises, this Agreement will be construed
          as if drafted jointly by the Parties and no presumption or burden of
          proof will arise favoring or disfavoring any Party by virtue of the
          authorship of any of the provisions of this Agreement.

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          Nothing in either the Seller's Disclosure Schedule or the Buyer's
          Disclosure Schedule will be deemed adequate to disclose an exception
          to a representation or warranty made unless such disclosure schedule
          identifies the exception with reasonable particularity and describes
          the relevant facts in reasonable detail. Without limiting the
          foregoing, the mere listing (or inclusion of a copy) of a document or
          other item is not adequate to disclose an exception to a
          representation or warranty (unless the representation or warranty has
          to do with the existence of the document or other item itself). The
          Parties intend that each representation, warranty and covenant have
          independent significance. If any Party has breached any
          representation, warranty or covenant in any respect, the fact that
          there exists another representation, warranty or covenant relating to
          the same subject matter (regardless of the relative levels of
          specificity) that the Party has not breached does not detract from or
          mitigate the fact that the Party is in breach of the first
          representation, warranty or covenant.

     9.11 INCORPORATION OF EXHIBITS AND SCHEDULES. The Exhibits and Schedules
          identified in this Agreement are incorporated by reference and are
          made a part of this Agreement.

     9.12 NOTICES. All notices, requests, demands, claims and other
          communications under this Agreement will be in writing. Any notice,
          request, demand, claim or other communication under this Agreement
          will be deemed duly given two business days after it is sent by
          registered or certified mail, return receipt requested, postage
          prepaid and addressed to the intended recipient as set forth below:

          If to the Seller:

          Acquirint, LLC
          324 Datura Street, Suite 150
          West Palm Beach, Florida
          Attn:  Randall L. Sargent
          Facsimile: (561) 828-5744
          Email: rlsargent@acquirint.com

          If to the Buyer:                  Copy to:

          Innuity, Inc.                     Gray, Plant, Mooty,
          8644 154th Avenue N.E.            Mooty & Bennett, P.A.
          Redmond, Washington 98052         500 IDS Center
          Orem, Utah 94097                  80 South Eighth Street
          Attn: Mr. John Dennis             Attn: JC Anderson, Esq.
          Facsimile: (425) 497-0409         Facsimile: (612) 632-4002
          Email: jrdsummit@earthlink.net    Email: jc.anderson@gpmlaw.com

          Any Party may send any notice, request, demand, claim or other
          communication to the intended recipient at the address set forth above
          using any other means (including personal delivery, expedited courier,
          messenger service, telecopy,

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          telex, ordinary mail or electronic mail), but no such notice, request,
          demand, claim or other communication will be deemed to have been duly
          given unless and until it actually is received by the intended
          recipient. Any Party may change the address to which notices,
          requests, demands, claims and other communications hereunder are to be
          delivered by giving the other Party notice in the manner set forth in
          this Agreement.

     9.13 SPECIFIC PERFORMANCE. Each of the Parties acknowledges and agrees that
          the other Party would be damaged irreparably in the event any of the
          provisions of this Agreement are not performed in accordance with
          their specific terms or otherwise are breached. Accordingly, each of
          the Parties agrees that the other Party is entitled to an injunction
          or injunctions to prevent breaches of the provisions of this Agreement
          and to enforce specifically this Agreement in any action instituted in
          any court of the United States or any state having jurisdiction over
          the Parties and the matter (subject to the provisions set forth in
          Section 9.14 below), in addition to any other remedy to which it may
          be entitled, at law or in equity.

     9.14 SUBMISSION TO JURISDICTION. Each of the Parties submits to the
          jurisdiction of any state or federal court sitting in the State of
          Washington, in any action or proceeding arising out of or relating to
          this Agreement and agrees that all claims in respect of the action or
          proceeding may be heard and determined there. Each Party also agrees
          not to bring any action or proceeding arising out of or relating to
          this Agreement in any other court. Each of the Parties waives any
          defense of inconvenient forum to the maintenance of any action or
          proceeding so brought and waives any bond, surety or other security
          that might be required of any other Party. Each Party agrees that a
          final judgment in any action or proceeding so brought will be
          conclusive and may be enforced by suit on the judgment or in any other
          manner provided by law or in equity.

     9.15 SPECIAL MEETING; AGREEMENT TO VOTE MEMBERSHIP INTERESTS; PROXY. The
          Members will do the following in connection with this Agreement:

          (a)  SPECIAL MEETING. The Members, in their capacity as managers of
               the Seller and collectively as the holders of a majority of the
               membership interests in the Seller and in accordance with the
               respective operating agreements of the Seller and the Laws of the
               State of Nevada, will either (i) call a special meeting of the
               members of the Seller to be held as soon as practicable following
               the date of this Agreement in order for the members of the Seller
               to consider and vote upon this Agreement and the transactions
               contemplated thereby (the "SPECIAL MEETING"), or (ii) circulate a
               written consent to the members in accordance with Section 5.4 of
               the Operating Agreement.

          (b)  AGREEMENT TO VOTE MEMBERSHIP INTERESTS. At every meeting of the
               members of the Seller called with respect to any of the following
               (including the Special Meeting), and on every action or approval
               by

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               written consent of the members of the Seller held on or before
               the Closing or the termination of this Agreement, the Members
               will vote their membership interests in the Seller in accordance
               with the following: (i) in favor of approval of the this
               Agreement and the transactions contemplated by this Agreement,
               and any matter that could reasonably be expected to facilitate
               the transactions contemplated by this Agreement; (ii) against
               approval of any proposal made in opposition to or competition
               with consummation of this Agreement and the transactions
               contemplated by this Agreement; (iii) against any merger,
               consolidation, sale of assets, reorganization or
               recapitalization, with any Person other than with the Buyer and
               its Affiliates; and (iv) against any liquidation or winding up of
               the Seller (each of Sections 8.15(b)(ii), (iii) and (iv), an
               "OPPOSING PROPOSAL"). The Members will not, directly or
               indirectly, solicit or encourage any offer from any Person
               concerning an Opposing Proposal or the possible disposition of
               all or any substantial portion of the Seller's business, assets
               or membership interests.

          (c)  PROXY. To secure the Members obligation to vote their membership
               interests in the Seller in accordance with the provisions of
               Section 9.15(b) of this Agreement, each Member does hereby
               irrevocably constitute and appoint the Buyer, or any nominee of
               the Buyer, with full power of substitution, from the date of this
               Agreement until the Closing Date or the termination of this
               Agreement in accordance with Section 8 of this Agreement, as his
               true and lawful proxy, for and in his name, place and stead,
               including the right to sign his name to any consent, certificate
               or other document relating to the Seller that the laws of the
               State of Nevada may permit or require, to cause the Member's
               membership interests of the Seller to be voted in the manner
               contemplated by Section 9.15(b) of this Agreement. Each Member
               hereby revokes all other proxies and powers of attorney with
               respect to the membership interests of the Seller that such
               Member holders as may have appointed or granted. Each Member will
               not give a subsequent proxy or power of attorney (and if given,
               will not be effective) or enter into any other voting agreement
               with respect to the membership interests of the Seller.

         [THE REMAINDER OF THIS PAGE IS BLANK. SIGNATURE PAGE FOLLOWS.]

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     The Parties have executed this Asset Purchase Agreement to be made
effective as of the date first above written.

                                        BUYER:

                                        INNUITY, INC.

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        SELLER:

                                        ACQUIRINT, LLC

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        MEMBERS:

                                        ----------------------------------------
                                        Randall L. Sargent, individually with
                                        respect to Sections 9.1 and 9.15

                                        ----------------------------------------
                                        Ralph H. Smith, individually with
                                        respect to Sections 9.1 and 9.15

    [SIGNATURE PAGE TO INNUITY, INC./ACQUIRINT, LLC ASSET PURCHASE AGREEMENT]

                                       30exv4w28

 

 

KB
HOME,

Company,

THE
GUARANTORS PARTY HERETO,

Guarantors,

and

U.S.
BANK NATIONAL ASSOCIATION,

As successor Trustee

 

FOURTH SUPPLEMENTAL INDENTURE

 

Dated as of November 9, 2006

5-3/4% Senior Notes due 2014

6-3/8% Senior Notes due 2011

5-7/8% Senior Notes due 2015

6-1/4% Senior Notes due 2015

7-1/4% Senior Notes due 2018

 

 

 

     THIS FOURTH SUPPLEMENTAL INDENTURE is dated as of November 9, 2006 (this “Fourth
Supplemental Indenture”), between KB HOME, a Delaware corporation (the “Company”), the
Guarantors (as defined in the Indenture), and U.S. BANK NATIONAL ASSOCIATION (successor in interest
to SUNTRUST BANK), a national banking association duly organized and existing under the laws of the
United States of America (the “Trustee”). Capitalized terms used in this Supplemental
Indenture and not otherwise defined herein shall have the meanings assigned to them in the Original
Indenture (defined below).

RECITALS:

     WHEREAS, the Company, the Guarantors and the Trustee are parties to the Indenture dated as of
January 28, 2004 (the “Original Indenture”), amended and supplemented by a First
Supplemental Indenture dated as of January 28, 2004 (the “First Supplemental Indenture”), a
Second Supplemental Indenture dated as of June 30, 2004 (the “Second Supplemental
Indenture”), and a Third Supplemental Indenture dated as of May 1, 2006 (the “Third
Supplemental Indenture”; the Original Indenture, as amended and supplemented by the First
Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture and
this Fourth Supplemental Indenture, is hereinafter called the “Indenture”, which term shall
include the terms and provisions of each series of Securities (as defined in the Original
Indenture) established from time to time pursuant to Section 301 of the Original Indenture),
providing for the issuance by the Company from time to time of its Securities;

     WHEREAS, pursuant to Articles Two and Three of the Original Indenture, the Company has
established (i) by the First Supplemental Indenture, the form and terms of a series of the
Company’s Securities designated the “5-3/4% Senior Notes due 2014” (the “5-3/4% Notes”),
(ii) by the Second Supplemental Indenture, the form and terms of a series of the Company’s
Securities designated the “6-3/8% Senior Notes due 2011” (the “6-3/8% Notes”), (iii) by an
Officers’ Certificate and Guarantors’ Officers’ Certificate, dated as of December 15, 2004, the
form and terms of a series of the Company’s Securities designated the “5-7/8% Senior Notes due
2015” (the “5-7/8% Notes”), (iv) by Officers’ Certificates and Guarantors’ Officers’
Certificates, dated as of June 2, 2005 and June 27, 2005, the form and terms of a series of the
Company’s Securities designated the “6-1/4% Senior Notes due 2015” (the “6-1/4% Notes”),
and (v) by an Officers’ Certificate and Guarantors’ Officers’ Certificate, dated as of April 3,
2006, the form and terms of a series of the Company’s Securities designated the “7-1/4% Senior
Notes due 2018” (the “7-1/4% Notes,” and together with the 5-3/4% Notes, the 6-3/8% Notes,
the 5-7/8% Notes and the 6-1/4% Notes, the “Senior Notes”);

     WHEREAS, the Holders (as defined in the Original Indenture) of not less than a majority in the
aggregate principal amount of the 5-3/4% Notes, the 6-3/8% Notes, the 5-7/8% Notes, the 6-1/4%
Notes and the 7-1/4% Notes, (“the Consenting Senior Notes”) have consented to the amendment
of the Indenture to suspend through and including February 23, 2007 the occurrence of any default
or Event of Default, and the consequences thereof, under Section 501(4) or Section 501(5) of the
Indenture caused by (i) the matters described in Part III of the Company’s Form 12b-25 filed with
the Commission on October 10, 2006, (ii) matters reasonably related thereto or (iii) matters
incidental thereto that are collectively not material to the Company;

 

 

     WHEREAS, the Company has requested that the Trustee execute and deliver this Fourth
Supplemental Indenture pursuant to Sections 902 and 903 of the Original Indenture; and

     WHEREAS, all requirements necessary to make this Fourth Supplemental Indenture a valid
instrument in accordance with its terms have been performed and the execution and delivery of this
Fourth Supplemental Indenture have been duly authorized in all respects by the Company and each of
the Guarantors.

     NOW, THEREFORE, for and in consideration of the foregoing premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company,
the Guarantors and the Trustee mutually covenant and agree for the equal and proportionate benefit
of the Holders of the Consenting Senior Notes , as follows:

     SECTION 1. Amendment of Section 501(4). Section 501(4) of the Indenture shall be
amended, by adding the following proviso to the end of such Section, prior to the last word, “or”:

“provided, however, that, with respect to the Consenting Senior Notes, through and
including February 23, 2007, there shall be no default or Event of Default under this
Section 501(4) as a result of any default by the Company or any Guarantor in the
performance of, or breach of, any covenant or warranty of the Company or such
Guarantor in this Indenture or any Security of any series of Consenting Senior Notes
caused by (i) the matters described in Part III of the Company’s Form 12b-25 filed
with the Commission on October 10, 2006, (ii) matters reasonably related thereto or
(iii) matters incidental thereto that are collectively not material to the Company;”

     SECTION 2. Amendment of Section 501(5). Section 501(5) of the Indenture shall be
amended, by adding the following proviso to the end of such Section:

“ provided, however, that, with respect to the Consenting Senior Notes, through and
including February 23, 2007, there shall be no default or Event of Default under
this Section 501(5) as a result of a default under any mortgage, indenture or other
instrument or agreement under which there may be issued or by which there may be
secured or evidenced any Indebtedness of the Company or any Significant Subsidiary
if such default is caused by (i) the matters described in Part III of the Company’s
Form 12b-25 filed with the Commission on October 10, 2006, (ii) matters reasonably
related thereto or (iii) matters incidental thereto that are collectively are not
material to the Company; or”

     SECTION 3. Governing Law; Fourth Supplemental Indenture. This Fourth Supplemental
Indenture shall be governed by and construed in accordance with the laws of the State of New York
applicable to agreements made or instruments entered into and, in each case, performed in said
State. The terms and conditions of this Fourth Supplemental Indenture shall be, and be deemed to
be, part of the terms and conditions of the Indenture for any and all purposes. Other than as
amended and supplemented by this Fourth Supplemental Indenture, the Original Indenture, as amended
and supplemented by the First Supplemental Indenture, the

- 3 -

 

Second Supplemental Indenture and the Third Supplemental Indenture, is in all respects
ratified and confirmed.

     SECTION 4. Acceptance by Trustee. Subject to Section 7 hereof, the Trustee hereby
accepts this Fourth Supplemental Indenture and agrees to perform the same upon the terms and
conditions set forth in the Original Indenture, as amended and supplemented by the First
Supplemental Indenture, the Second Supplemental Indenture and the Third Supplemental Indenture.

     SECTION 5. Counterparts. This Fourth Supplemental Indenture may be executed in two
or more counterparts, each of which shall constitute an original, but all of which when taken
together shall constitute but one instrument.

     SECTION 6. Headings. The headings of this Fourth Supplemental Indenture are for
reference only and shall not limit or otherwise affect the meaning hereof.

     SECTION 7. Trustee Not Responsible for Recitals. The recitals herein contained are
made by the Company and the Guarantors and not by the Trustee, and the Trustee assumes no
responsibility and shall have no liability for the correctness thereof. The Trustee shall not be
responsible or liable in any manner whatsoever for or in respect of the validity or sufficiency of
this Fourth Supplemental Indenture, except as to its validity with respect to the Trustee.

     SECTION 8. Separability. In case any one or more of the provisions contained in this
Fourth Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof shall not, to the fullest extent permitted by
law, in any way be affected or impaired thereby.

     SECTION 9. Conflict With Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with any duties under any required provision of the Trust Indenture Act
imposed hereon by Section 318(c) thereof, such provision shall control.

[Signature Page Follows]

- 4 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be
duly executed, and their respective seals to be hereunto affixed, all as of the day and year first
above written.

	 	 	 	 	 
	“Company”: 	KB HOME

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President, Treasury 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Assistant Secretary
	 	 

	 	 	 	 	 
	“Existing Guarantors”: 	KB HOME PHOENIX INC., an Arizona corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

- 5 -

 

	 	 	 	 	 
	 	KB HOME COASTAL INC., a California corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

	 	 	 	 	 
	 	KB HOME SACRAMENTO INC., a California corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

- 6 -

 

	 	 	 	 	 
	 	KB HOME SOUTH BAY INC., a California corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

	 	 	 	 	 
	 	KB HOME GREATER LOS ANGELES INC., a California

corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

- 7 -

 

	 	 	 	 	 
	 	KB HOME COLORADO INC., a Colorado corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

	 	 	 	 	 
	 	KB HOME NEVADA INC., a Nevada corporation

 	 
	 	By:  	/S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

- 8 -

 

	 	 	 	 	 
	 	KB HOME LONE STAR LP, a Texas limited partnership

 	 
	 	By:  	KBSA, INC., a Texas corporation,
 	 
	 	 	Its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                              /S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

	 	 	 	 	 
	 	KB HOME ORLANDO LLC, a Delaware limited liability

company

 	 
	 	By:  	KB HOME FLORIDA LLC, a Delaware
 	 
	 	 	 limited liability company, 	 
	 	 	Its sole member 	 
	 
	 	 	 
	 	By:  	                                              /S/ KELLY M. ALLRED
 	 
	 	 	Name:  	 Kelly M. Allred 	 
	 	 	Title:  	 Vice President and Treasurer 	 
	 

[SEAL]

Attest:

	 	 	 
	/S/ TONY RICHELIEU
	 	 
	 

Name: Tony Richelieu

	 	 
	Title: Secretary
	 	 

- 9 -

 

	 	 	 	 	 
	“Trustee”:  	U.S. BANK NATIONAL ASSOCIATION,

as successor Trustee

 	 
	 	By:  	/S/ MURIEL SHAW
 	 
	 	 	Name:  	 Muriel Shaw 	 
	 	 	Title:  	 Assistant Vice President 	 
	 

Attest:

	 	 	 
	/S/ JACK ELLERIN
	 	 
	 

Name: Jack Ellerin

	 	 
	Title: Vice President
	 	 

- 10 -

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