Document:

EXHIBIT 4.1

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR  PRACTICEXPERT,  INC. SHALL HAVE RECEIVED AN
OPINION OF COUNSEL TO  PRACTICEXPERT,  INC. THAT REGISTRATION OF SUCH SECURITIES
UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                               PRACTICEXPERT, INC.

                             Expires January 3, 2012

Number of Shares: 6,000,000                    Date of Issuance: January 3, 2005

         FOR VALUE  RECEIVED,  subject to the provisions  hereinafter set forth,
the undersigned,  PracticeXpert,  Inc., a Nevada corporation  (together with its
successors  and  assigns,  the  "Issuer"),  hereby  certifies  that PI  (Cayman)
Limited,  or its registered  assigns, is entitled to subscribe for and purchase,
during the Term (as hereinafter  defined),  up to Six Million (6,000,000) shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price per share equal to the Warrant Price then in effect, subject,  however, to
the  provisions  and  upon the  terms  and  conditions  hereinafter  set  forth.
Capitalized  terms used in this Warrant and not otherwise  defined  herein shall
have the respective meanings specified in Section 9 hereof.

         1. Term. The term of this Warrant shall commence on January 3, 2005 and
shall  expire at 5:00  p.m.,  PST on  January  3, 2012  (such  period  being the
"Term").

         2. Method of Exercise  Payment;  Issuance of New Warrant;  Transfer and
Exchange.

         (a) Time of Exercise.  The purchase rights  represented by this Warrant
may be  exercised in whole or in part during the Term  commencing  on January 3,
2005 and expiring on January 3, 2012.

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of

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shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised,  payable at such Holder's  election (i) by certified or official bank
check or by wire  transfer  to an  account  designated  by the  Issuer,  (ii) by
"cashless  exercise" in accordance with the provisions of subsection (c) of this
Section  2, but only when a  registration  statement  under the  Securities  Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

         (c) Cashless  Exercise.  Notwithstanding  any provisions  herein to the
contrary,  commencing one (1) year following the Original Issue Date, if (i) the
Per Share  Market Value of one share of Common Stock is greater than the Warrant
Price (at the date of  calculation  as set forth below) and (ii) a  registration
statement under the Securities Act providing for the resale of the Warrant Stock
is not then in effect,  in lieu of  exercising  this Warrant by payment of cash,
the Holder may exercise  this Warrant by a cashless  exercise and shall  receive
the number of shares of Common Stock equal to an amount (as determined below) by
surrender of this Warrant at the  principal  office of the Issuer  together with
the properly endorsed Exercise Form in which event the Issuer shall issue to the
Holder a number of shares of Common Stock computed using the following formula:

                  X = Y - (A)(Y)
                          ------
                            B

Where             X =   the number of shares of Common Stock to be issued to the
                        Holder.

                  Y =   the number of shares of Common Stock purchasable upon
                        exercise of all of the Warrant or, if only a portion of
                        the Warrant is being exercised, the portion of the
                        Warrant being exercised.

                  A =   the Warrant Price.

                  B =   the Per Share Market Value of one share of Common Stock.

         (d) Issuance of Stock Certificates. In the event of any exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and  conditions  hereof,  (i)  certificates  for the shares of Warrant  Stock so
purchased  shall be dated the date of such  exercise and delivered to the Holder
hereof  within a reasonable  time after such  exercise or, at the request of the
Holder  (provided  that  a  registration  statement  under  the  Securities  Act
providing  for the resale of the Warrant  Stock is then in  effect),  issued and
delivered to the Depository Trust Company ("DTC") account on the Holder's behalf
via the Deposit  Withdrawal Agent Commission System ("DWAC") within a reasonable
time after such exercise, and the Holder hereof shall be deemed for all purposes
to be the holder of the shares of Warrant  Stock so  purchased as of the date of
such  exercise  and  (ii)  unless  this  Warrant  has  expired,  a  new  Warrant
representing  the number of shares of Warrant  Stock,  if any,  with  respect to
which this Warrant shall not then have been  exercised  (less any amount thereof
which  shall have been  canceled  in payment or partial  payment of the  Warrant
Price as hereinabove  provided) shall also be issued to the Holder hereof at the
Issuer's expense within such time.

         (e)  Transferability of Warrant.  Subject to Section 2(g), this Warrant
may be  transferred  by a Holder with the consent of the Issuer.  If transferred
pursuant to this  paragraph and subject to the  provisions of subsection  (g) of

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this  Section 2, this Warrant may be  transferred  on the books of the Issuer by
the Holder hereof in person or by duly  authorized  attorney,  upon surrender of
this Warrant at the principal  office of the Issuer,  properly  endorsed (by the
Holder  executing an assignment in the form attached hereto) and upon payment of
any  necessary  transfer  tax or other  governmental  charge  imposed  upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants  for the  purchase  of the same  aggregate  number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of  Warrant  Stock as the  Holder  hereof  shall  designate  at the time of such
exchange.  All Warrants  issued on  transfers  or  exchanges  shall be dated the
Original  Issue Date and shall be identical  with this Warrant  except as to the
number of shares of Warrant Stock issuable pursuant thereto.

         (f) Continuing Rights of Holder.  The Issuer will, at the time of or at
any time after each  exercise  of this  Warrant,  upon the request of the Holder
hereof,  acknowledge in writing the extent, if any, of its continuing obligation
to afford to such  Holder all rights to which such Holder  shall  continue to be
entitled  after such  exercise  in  accordance  with the terms of this  Warrant,
provided  that if any such  Holder  shall  fail to make any  such  request,  the
failure shall not affect the continuing  obligation of the Issuer to afford such
rights to such Holder.

         (g) Compliance with Securities Laws.

                  (i)  The  Holder  of  this  Warrant,   by  acceptance  hereof,
         acknowledges  that this  Warrant or the  shares of Warrant  Stock to be
         issued upon exercise  hereof are being acquired solely for the Holder's
         own  account  and  not as a  nominee  for  any  other  party,  and  for
         investment,  and that the  Holder  will not  offer,  sell or  otherwise
         dispose of this  Warrant  or any  shares of Warrant  Stock to be issued
         upon  exercise  hereof  except  pursuant to an  effective  registration
         statement, or an exemption from registration,  under the Securities Act
         and any applicable state securities laws.

                  (ii) Except as provided in paragraph (iii) below, this Warrant
         and all certificates  representing  shares of Warrant Stock issued upon
         exercise  hereof  shall  be  stamped  or  imprinted  with a  legend  in
         substantially the following form:

                  THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON
                  EXERCISE HEREOF HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES
                  ACT OF 1933,  AS AMENDED (THE  "SECURITIES  ACT") OR ANY STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS  REGISTERED  UNDER THE  SECURITIES  ACT AND
                  UNDER APPLICABLE STATE SECURITIES LAWS OR PRACTICEXPERT,  INC.
                  SHALL HAVE  RECEIVED  AN OPINION OF COUNSEL TO  PRACTICEXPERT,
                  INC. THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
                  ACT AND UNDER THE  PROVISIONS OF APPLICABLE  STATE  SECURITIES
                  LAWS IS NOT REQUIRED.

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<PAGE>

                  (iii)  The   Issuer   agrees  to  reissue   this   Warrant  or
         certificates  representing any of the Warrant Stock, without the legend
         set forth  above if at such time,  prior to making any  transfer of any
         such  securities,  the Holder shall give  written  notice to the Issuer
         describing  the manner and terms of such  transfer  and  removal as the
         Issuer may reasonably request.  Such proposed transfer and removal will
         not be  effected  until:  (a) either (i) the  Issuer  has  received  an
         opinion of counsel to the Issuer,  to the effect that the  registration
         of  such  securities  under  the  Securities  Act  is not  required  in
         connection with such proposed transfer or (ii) a registration statement
         under the  Securities Act covering such proposed  disposition  has been
         filed by the Issuer with the  Securities and Exchange  Commission  (the
         "Commission")  and has become  effective  under the Securities Act; and
         (b) either (i) the  Issuer  has  received  an opinion of counsel to the
         Issuer,  to the effect that  registration  or  qualification  under the
         securities laws of any state or foreign jurisdiction is not required in
         connection  with such proposed  disposition,  or (ii)  compliance  with
         applicable  state  securities or "blue sky" laws has been effected or a
         valid  exemption  exists  with  respect  thereto.  In the  case  of any
         proposed  transfer  under  this  Section  2(g),  the  Issuer  will  use
         reasonable  efforts to comply with any such applicable state securities
         or "blue sky" laws,  but shall in no event be required,  (x) to qualify
         to do business in any state where it is not then qualified, (y) to take
         any action that would  subject it to tax or to the  general  service of
         process  in any state  where it is not then  subject,  or (z) to comply
         with  state  securities  or "blue  sky"  laws of any  state  for  which
         registration  by  coordination  is  unavailable  to  the  Issuer.   The
         restrictions  on transfer  contained  in this  Section 2(g) shall be in
         addition to, and not by way of limitation of, any other restrictions on
         transfer  contained in any other  section of this  Warrant.  Whenever a
         certificate  representing the Warrant Stock is required to be issued to
         a  the  Holder  without  a  legend,  in  lieu  of  delivering  physical
         certificates  representing  the Warrant  Stock,  provided  the Issuer's
         transfer agent is  participating  in the DTC Fast Automated  Securities
         Transfer  program,  the Issuer shall use its reasonable best efforts to
         cause its transfer agent to  electronically  transmit the Warrant Stock
         to the Holder by  crediting  the account of the  Holder's  Prime Broker
         with DTC through its DWAC system (to the extent not  inconsistent  with
         any provisions of this Warrant).

         (h) In no event may the  Holder  exercise  this  Warrant in whole or in
part unless the Holder is an  "accredited  investor" as defined in  Regulation D
under the Securities Act.

         3. Stock Fully Paid; Reservation of Shares; Loss, Theft, Destruction of
Warrant.

         (a) Stock Fully Paid. The Issuer  represents,  warrants,  covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will,  when issued in accordance  with the
terms of this  Warrant,  be duly  authorized,  validly  issued,  fully  paid and
non-assessable  and free from all taxes, liens and charges created by or through
the  Issuer.  The Issuer  further  covenants  and agrees  that during the period
within  which this Warrant may be  exercised,  the Issuer will at all times have
authorized  and  reserved  for the  purpose of the issue upon  exercise  of this
Warrant  a  sufficient  number of shares  of  Common  Stock to  provide  for the
exercise of this Warrant.

           (b) Loss,  Theft,  Destruction of Warrants.  Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer

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<PAGE>

or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

         4. Adjustment of Warrant Price and Warrant Share Number.  The number of
shares of Common Stock for which this Warrant is  exercisable,  and the price at
which such  shares may be  purchased  upon  exercise of this  Warrant,  shall be
subject  to  adjustment  from time to time as set forth in this  Section  4. The
Issuer shall give the Holder notice of any event  described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.

         (a) Recapitalization,  Reorganization, Reclassification, Consolidation,
Merger or Sale.

                  (i) In case the Issuer after the Original  Issue Date shall do
          any of the following (each, a "Triggering  Event"): (a) consolidate or
          merge  with  or  into  another   corporation   where  the  holders  of
          outstanding  Voting Stock prior to such merger or consolidation do not
          own  over  50% of the  outstanding  Voting  Stock  of  the  merged  or
          consolidated entity immediately after such merger or consolidation, or
          (b) sell all or  substantially  all of its properties or assets to any
          other Person,  or (c) change the Common Stock to the same or different
          number  of  shares  of any  class or  classes  of  stock,  whether  by
          reclassification,  exchange,  substitution or otherwise (other than by
          way of a stock  split or  combination  of  shares  or stock  dividends
          provided for in Section 4(b)), or (d) effect a capital  reorganization
          (other than by way of a stock split or  combination of shares or stock
          dividends provided for in Section 4(b)), then, and in the case of each
          such Triggering  Event,  proper  provision shall be made so that, upon
          the basis and the terms and in the manner  provided  in this  Warrant,
          the Holder of this Warrant shall be entitled upon the exercise  hereof
          at any time after the  consummation of such  Triggering  Event, to the
          extent this Warrant is not exercised prior to such  Triggering  Event,
          to  receive  at the  Warrant  Price in effect at the time  immediately
          prior  to the  consummation  of such  Triggering  Event in lieu of the
          Common Stock issuable upon such exercise of this Warrant prior to such
          Triggering  Event,  the  securities,  cash and  property to which such
          Holder  would  have  been  entitled  upon  the  consummation  of  such
          Triggering  Event if such Holder had exercised the rights  represented
          by this Warrant  immediately  prior  thereto,  subject to  adjustments
          (subsequent to such corporate action) as nearly equivalent as possible
          to the adjustments provided for elsewhere in this Section 4.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary,  a Triggering  Event shall not be deemed to have occurred if,
         prior to the consummation  thereof, each Person (other than the Issuer)
         which may be required to deliver any securities,  cash or property upon
         the  exercise  of this  Warrant as provided  herein  shall  assume,  by
         written  instrument  delivered to, and reasonably  satisfactory to, the
         Holder of this Warrant,  (A) the  obligations  of the Issuer under this
         Warrant  (and if the Issuer  shall  survive  the  consummation  of such
         Triggering  Event,  such assumption  shall be in addition to, and shall
         not release the Issuer from, any  continuing  obligations of the Issuer
         under this  Warrant) and (B) the  obligation  to deliver to such Holder
         such shares of securities,  cash or property as, in accordance with the
         foregoing  provisions  of this  subsection  (a),  such Holder  shall be
         entitled to receive,  and such Person shall have similarly delivered to
         such  Holder a written  acknowledgement  executed by the  President  or
         Chief Financial Officer of the Issuer,  stating that this Warrant shall

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         thereafter  continue  in full  force and  effect  and the terms  hereof
         (including,   without  limitation,   all  of  the  provisions  of  this
         subsection (a)) shall be applicable to the securities, cash or property
         which such Person may be required to deliver  upon any exercise of this
         Warrant or the exercise of any rights pursuant hereto.

         (b) Stock Dividends,  Subdivisions and Combinations. If at any time the
Issuer shall:

                  (i) make or issue or set a record  date for the holders of its
         Common  Stock for the purpose of  entitling  them to receive a dividend
         payable in, or other distribution of, shares of Common Stock,

                  (ii) subdivide its  outstanding  shares of Common Stock into a
         larger number of shares of Common Stock, or

                  (iii)  combine its  outstanding  shares of Common Stock into a
         smaller number of shares of Common Stock,

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record  holder of the same
number of  shares  of  Common  Stock  for  which  this  Warrant  is  exercisable
immediately  prior to the  occurrence  of such event would own or be entitled to
receive  after the  happening of such event,  and (2) the Warrant  Price then in
effect  shall  be  adjusted  to  equal  (A) the  Warrant  Price  then in  effect
multiplied  by the number of shares of Common  Stock for which  this  Warrant is
exercisable  immediately  prior to the  adjustment  divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable  immediately  after
such adjustment.

Notwithstanding  the  foregoing,  if such  record date shall have been fixed and
such dividend is not fully paid or if such distribution is not fully made on the
date fixed  therefor,  the  Warrant  Price  shall be  adjusted  pursuant to this
paragraph as of the time of actual payment of such dividends or distributions.

         (c) Other Provisions  applicable to Adjustments under this Section. The
following  provisions  shall be applicable to the making of  adjustments  of the
number of shares of Common Stock for which this Warrant is  exercisable  and the
Warrant Price then in effect provided for in this Section 4:

                  (i) When  Adjustments to Be Made. The adjustments  required by
         this  Section 4 shall be made  whenever  and as often as any  specified
         event requiring an adjustment  shall occur,  except that any adjustment
         of the  number  of shares of Common  Stock for which  this  Warrant  is
         exercisable  that would otherwise be required may be postponed  (except
         in the case of a  subdivision  or  combination  of shares of the Common
         Stock,  as provided for in Section 4(b)) up to, but not beyond the date
         of  exercise  if  such  adjustment  either  by  itself  or  with  other
         adjustments not previously made adds or subtracts less than one percent
         (1%)  of  the  shares  of  Common  Stock  for  which  this  Warrant  is
         exercisable  immediately  prior to the making of such  adjustment.  Any
         adjustment  representing  a change  of less than  such  minimum  amount
         (except as aforesaid)  which is postponed  shall be carried forward and

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         made as  soon  as such  adjustment,  together  with  other  adjustments
         required by this Section 4 and not previously  made,  would result in a
         minimum  adjustment or on the date of exercise.  For the purpose of any
         adjustment, any specified event shall be deemed to have occurred at the
         close of business on the date of its occurrence.

                  (ii) Fractional Interests. In computing adjustments under this
         Section 4,  fractional  interests  in Common  Stock shall be taken into
         account to the nearest one one-hundredth (1/100th) of a share.

         (d) Form of Warrant  after  Adjustments.  The form of this Warrant need
not be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

         5. Notice of  Adjustments.  Whenever the Warrant Price or Warrant Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment.

         6.  Fractional  Shares.  No fractional  shares of Warrant Stock will be
issued in connection  with any exercise  hereof,  but in lieu of such fractional
shares,  the Issuer  shall make a cash payment  therefor  equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

         7. Definitions.  For the purposes of this Warrant,  the following terms
have the following meanings:

                  "Articles   of   Incorporation"    means   the   Articles   of
         Incorporation  of the Issuer as in effect on the  Original  Issue Date,
         and as hereafter from time to time amended,  modified,  supplemented or
         restated in  accordance  with the terms hereof and thereof and pursuant
         to applicable law.

                  "Board" shall mean the Board of Directors of the Issuer.

                  "Capital  Stock"  means and  includes  (i) any and all shares,
         interests,  participations  or other  equivalents  of or  interests  in
         (however designated)  corporate stock,  including,  without limitation,
         shares of preferred or preference stock, (ii) all partnership interests
         (whether  general or  limited)  in any Person  which is a  partnership,
         (iii) all membership  interests or limited  liability company interests
         in any  limited  liability  company,  and (iv) all equity or  ownership
         interests in any Person of any other type.

                  "Common  Stock"  means the Common  Stock,  par value $.001 per
         share,  of the Issuer and any other Capital Stock into which such stock
         may hereafter be changed.

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                  "Governmental Authority" means any governmental, regulatory or
         self-regulatory   entity,   department,   body,  official,   authority,
         commission, board, agency or instrumentality, whether federal, state or
         local, and whether domestic or foreign.

                  "Holders" mean the Persons who shall from time to time own any
         Warrant. The term "Holder" means one of the Holders.

                  "Issuer" means PracticeXpert, Inc., a Nevada corporation, and
         its successors.

                  "Original Issue Date" means January 3, 2005.

                  "OTC  Bulletin  Board" means the  over-the-counter  electronic
         bulletin board.

                  "Outstanding  Common  Stock"  means,  at any given  time,  the
         aggregate amount of outstanding  shares of Common Stock,  assuming full
         exercise,  conversion  or  exchange  (as  applicable)  of all  options,
         warrants and other Securities which are convertible into or exercisable
         or  exchangeable  for, and any right to subscribe for, shares of Common
         Stock that are outstanding at such time.

                  "Person" means an individual,  corporation,  limited liability
         company,  partnership,   joint  stock  company,  trust,  unincorporated
         organization,  joint venture, Governmental Authority or other entity of
         whatever nature.

                  "Per Share Market Value" means on any particular  date (a) the
         closing bid price for a share of Common  Stock in the  over-the-counter
         market,  as  reported  by the OTC  Bulletin  Board  or in the  National
         Quotation  Bureau  Incorporated  or  similar   organization  or  agency
         succeeding  to its  functions  of  reporting  prices)  at the  close of
         business on such date,  or (b) if the Common Stock is not then reported
         by the OTC Bulletin Board or the National Quotation Bureau Incorporated
         (or similar  organization  or agency  succeeding  to its  functions  of
         reporting prices),  then the average of the "Pink Sheet" quotes for the
         relevant  conversion period, as determined in good faith by the holder,
         or (c) if the Common Stock is not then publicly  traded the fair market
         value of a share of  Common  Stock as  determined  by the Board in good
         faith.

                  "Securities"  means  any  debt  or  equity  securities  of the
         Issuer, whether now or hereafter authorized, any instrument convertible
         into or  exchangeable  for  Securities  or a Security,  and any option,
         warrant or other right to purchase or acquire any Security.  "Security"
         means one of the Securities.

                  "Securities Act" means the Securities Act of 1933, as amended,
         or any similar federal statute then in effect.

                  "Subsidiary"  means  any  corporation  at  least  50% of whose
         outstanding  Voting  Stock  shall  at the  time be  owned  directly  or
         indirectly by the Issuer or by one or more of its  Subsidiaries,  or by
         the Issuer and one or more of its Subsidiaries.

                  "Term" has the meaning specified in Section 1 hereof.

                                       8
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                  "Trading  Day"  means (a) a day on which the  Common  Stock is
         traded on the OTC  Bulletin  Board,  or (b) if the Common  Stock is not
         traded on the OTC  Bulletin  Board,  a day on which the Common Stock is
         quoted in the  over-the-counter  market  as  reported  by the  National
         Quotation Bureau  Incorporated  (or any similar  organization or agency
         succeeding its functions of reporting prices); provided,  however, that
         in the event that the Common Stock is not listed or quoted as set forth
         in (a) or (b)  hereof,  then  Trading  Day  shall  mean any day  except
         Saturday, Sunday and any day which shall be a legal holiday or a day on
         which  banking  institutions  in the State of Nevada are  authorized or
         required by law or other government action to close.

                  "Voting  Stock" means,  as applied to the Capital Stock of any
         corporation, Capital Stock of any class or classes (however designated)
         having  ordinary  voting  power for the  election  of a majority of the
         members of the Board of  Directors  (or other  governing  body) of such
         corporation,  other than Capital Stock having such power only by reason
         of the happening of a contingency.

                  "Warrants" means this Warrant,  and any other warrants of like
         tenor issued in  substitution  or exchange for any thereof  pursuant to
         the  provisions of Section 2(c),  2(d) or 2(e) hereof or of any of such
         other Warrants.

                  "Warrant  Price"  initially  means U.S. $0.30, as such Warrant
         Price  may be  adjusted  from  time to time as  shall  result  from the
         adjustments specified in this Warrant, including Section 4 hereto.

                  "Warrant Share Number" means at any time the aggregate  number
         of shares of Warrant  Stock  which may at such time be  purchased  upon
         exercise of this Warrant,  after giving effect to all prior adjustments
         and  increases  to such  number  made or  required to be made under the
         terms hereof.

                  "Warrant  Stock" means Common Stock  issuable upon exercise of
         any Warrant or Warrants or otherwise  issuable  pursuant to any Warrant
         or Warrants.

         8. Amendment and Waiver. Any term, covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Holder; provided, however, that no such amendment or waiver shall
reduce the Warrant Share Number,  increase the Warrant Price, shorten the period
during  which this  Warrant may be  exercised  or modify any  provision  of this
Section 9 without the consent of the Holder of this Warrant.

         9.  Governing  Law.  THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE  STATE OF  NEVADA,  WITHOUT  GIVING  EFFECT  TO
PRINCIPLES OF CONFLICTS OF LAW.

         10. Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone  number  specified  for notice prior to 5:00 p.m.,  eastern time, on a

                                       9
<PAGE>

Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or  communication  is delivered via facsimile at the facsimile  telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date  of  mailing,  if sent  by  overnight  delivery  by  nationally  recognized
overnight  courier  service  or (iv)  actual  receipt  by the party to whom such
notice is required to be given. The addresses for such  communications  shall be
with respect to the Holder of this Warrant or of Warrant  Stock issued  pursuant
hereto,  addressed to such Holder at its last known address or facsimile  number
appearing  on the books of the  Issuer  maintained  for such  purposes,  or with
respect to the Issuer, addressed to:

                           PracticeXpert, Inc.
                           10833 Washington Blvd.
                           Culver City, California 90232
                           Attention: Michael Manahan, CFO
                           Tel. No.: (310) 815-3500
                           Fax No.: (310) 815-3507

Any party  hereto may from time to time change its address for notices by giving
at least ten (10) days written notice of such changed address to the other party
hereto.

         11.  Successors  and  Assigns.  This  Warrant and the rights  evidenced
hereby  shall inure to the  benefit of and be binding  upon the  successors  and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the
Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any
such Holder or Holder of Warrant Stock.

         12.  Modification and Severability.  If, in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

         13.  Headings.  The  headings of the  Sections of this  Warrant are for
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

         IN WITNESS WHEREOF,  the Issuer has executed this Warrant as of the day
and year first above written.

                                                 PRACTICEXPERT, INC.

                                                 By: /s/ Jonathan Doctor
                                                     ------------------------
                                                     Name:  Jonathan Doctor
                                                     Title: President and CEO

                                       10
<PAGE>

                                  EXERCISE FORM

                               PRACTICEXPERT, INC.

The  undersigned  _______________,  pursuant  to the  provisions  of the  within
Warrant,   hereby   elects  to  purchase   _____   shares  of  Common  Stock  of
PracticeXpert, Inc. covered by the within Warrant.

Dated: _________________            Signature  ___________________________

                          Address __________________________

                                  __________________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise:
-------------------------

                                   ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                          Address __________________________

                                  __________________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the right to  purchase  _________  shares of  Warrant  Stock
evidenced  by the within  Warrant  together  with all rights  therein,  and does
irrevocably  constitute and appoint  ___________________,  attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                          Address __________________________

                                  __________________________

                                       11
<PAGE>

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this ______ day of
__________________, _____, shares of Common Stock issued therefor in the name of
_________________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                       12EXHIBIT 10.1

                     AGREEMENT OF PURCHASE AND SALE OF STOCK

         THIS AGREEMENT OF PURCHASE AND SALE OF STOCK (the  "Agreement") is made
as of December 20, 2004, at Culver City, California, by and among PRACTICE XPERT
SERVICES CORP.,  ("Buyer"), a California Corporation and wholly owned subsidiary
of  PracticeXpert,  Inc.  ("Parent"),  having  its  principal  office  at  10833
Washington  Blvd,  Culver  City,  CA  90232,  and,  PI  (CAYMAN),  LIMITED,  , a
corporation  duly organized and existing  under the laws of the Cayman  Islands,
("Majority  Shareholder"),  and PHYSICIAN  INFORMATICS,  INC.,  t/a  PracticeOne
("Corporation"),  a Virginia  corporation,  having its principal  office at 8605
Westwood Center, Suite 500, Vienna, Virginia 22182.

                                    RECITALS:

         WHEREAS, the Board of Directors of Corporation and Majority Shareholder
deem it advisable for their welfare and best interests that Majority Shareholder
sell and Buyer  purchase  all of the issued  and  outstanding  capital  stock of
Corporation  (the  "Shares")  owned  by  Majority   Shareholder  and  the  other
shareholders of the Corporation  (collectively,  the  "Shareholders"),  upon the
terms and subject to the conditions hereinafter set forth.

         WHEREAS,  in connection  with the  consummation  of the purchase of the
Shares,  Parent,  Buyer,  Corporation  and Majority  Shareholder  have agreed to
provide for certain matters with respect to the sale,  assignment or transfer of
Corporation's  capital stock and other matters with respect to  Corporation,  as
more  fully  set forth  herein.  In this  Agreement,  Majority  Shareholder  and
Corporation are collectively referred to as "Selling Parties".

<PAGE>

                                    AGREEMENT

         NOW, THEREFORE,  in consideration of the mutual covenants,  agreements,
representations,  and warranties contained in this Agreement, and subject to the
satisfaction or waiver of the conditions  contained  herein,  the parties hereto
hereby agree as follows:

1.  Agreement

         1.1.  On the  terms and  subject  to the  conditions  set forth in this
Agreement,  on the Closing  Date (as defined in Section  6.6  hereof),  Majority
Shareholder  will sell,  transfer,  convey and deliver to Buyer,  and Buyer will
purchase, acquire and accept from Majority Shareholder,  the number of shares of
Capital Stock set forth  opposite the name of Majority  Shareholder  on Schedule
2.2  hereto,  constituting  all of the issued and  outstanding  shares  owned by
Majority Shareholder.  To effect the transfers contemplated by this Section 1.1,
at the Closing (as defined in Section 6.6 hereof),  Majority  Shareholder  shall
deliver,  stock  certificates  representing  the Shares  being sold by  Majority
Shareholder  hereunder,  duly  executed in proper form  acceptable  to Buyer for
transfer  to Buyer on the books of  Corporation,  against  payment  therefor  in
accordance with Section 1.2 hereof.

         1.2.  As full  payment  for the  transfer  of the  Shares  by  Majority
Shareholder to Buyer, Buyer shall deliver the following at the Closing:

                  1.2.1  12,500,000  shares of  unregistered  common stock,  par
value $.001 per share,  of Parent (the "Parent  Common  Stock"),  which shall be
allocated among the Shareholders in accordance with their  respective  ownership
interests as set forth on Schedule 2.2 hereof.

         1.3. In addition, the following terms have been agreed to:

                  1.3.1 Majority  Shareholder  has been authorized in writing to
represent all of the  Shareholders  for purposes of sale of the capital stock of
the  Corporation  and Majority  Shareholder is entitled under the  Corporation's
Bylaws to exercise  "drag along"  rights with respect to the Shares of the other
Shareholders  of  Corporation.  Majority  Shareholder  shall be responsible  for
ensuring the  assignment,  transfer,  conveyance  and delivery of such Shares to
Buyer  together with duly executed  stock powers in blank or otherwise in proper
form  acceptable to Buyer for transfer to Buyer on the books of Corporation  and
subject to Section 5.1.1 hereof.

<PAGE>

                  1.3.2 Shares of Parent Common Stock issued pursuant to Section
1.3.1 shall be allocated  among the other  Shareholders in accordance with their
respective ownership interests, as set forth on Schedule 2.2 hereof.

                  1.3.3  Corporation  shall  restructure  the  balance  sheet of
Corporation  such  that it shall  carry  only  the  following  liabilities  upon
Closing:

                           1.3.3.1 A  $2,000,000  promissory  note to  Citibank,
N.A., a copy of which appears in Schedule 1.3.3.1 (the "Citibank Note"); and

                           1.3.3.2  A  $4,000,000  promissory  note to  Majority
Shareholder,  a copy of which appears in Schedule  1.3.3.2,  bearing no interest
and  carrying a five year term and  convertible  into Parent  common  stock at a
conversion  price equal to $.40 per share in accordance  with the following time
constraints:  (a) at any time at the option of Parent;  and (b) at anytime on or
following  the  181st  calendar  day  after the  Closing  Date at the  option of
Majority Shareholder.

                           1.3.3.3.  Trade  Payables  and  Accounts  Payable  of
Corporation,  as set forth in Schedule 1.3.3.3, and to include Other Liabilities
incurred in the Ordinary Course of Business.

                  1.3.4 The  parties  hereto  shall  review the  performance  of
Corporation  on a quarterly  basis or other periodic basis as may be agreed from
time to time.

                  1.3.5  The  existing  secured  debt on the  balance  sheet  of
Corporation  owed to  Citibank  and any New  Funding  (defined  below)  shall be
secured  by a first  position  lien on the  assets of the  Corporation,  a first
position lien on assets  acquired by Buyer and/or Parent  through use of the New
Funding  and a second  position  lien on the assets of the  Parent.  Such second
position lien shall be subordinate  to liens made in  conjunction  with existing
debt of the Parent as shown on  Schedule  1.3.5,  and new debt which  Parent may
obtain  for  working  capital  and  other  purposes  which  is  currently  under
negotiation.  Buyer and  Parent  agree to enter into such  security  agreements,
guarantee  agreements,  UCC filings and other  documents  as may be necessary to
memorialize said security interest.

                  1.3.6  Buyer,  Parent  and  Corporation  agree  to  repay  the
Citibank  Note in  accordance  with the terms of the Citibank  Note. In no event
shall  any  portion  of  the  debt  represented  by  the  Citibank  Note  remain

<PAGE>

outstanding  after  5:00 pm EST on the  earlier  of (i)  demand  for  payment by
Citibank as may be permitted  under the Citibank  Note or (ii) the last business
day of the 36th calendar month following the Closing Date.

                  1.3.7 Majority  Shareholder shall provide a funding commitment
("New  Funding")  to  Parent.,  in an amount of up to $2 million,  carrying  the
following terms;

                           1.3.7.1  Available  within  72 hours  of the  signing
hereof;

                           1.3.7.2  An  interest  rate  similar  to  that on the
Citibank Note;

                           1.3.7.3 A term of 36 months  with the  balance due at
the end of such term;

                           1.3.7.4  Secured  by  a  first  lien  on  the  assets
acquired with the New Funding and a second lien on the assets of Parent;

                           1.3.7.5  The New  Funding  will be  used  solely  for
acquisitions  and a  promissory  note shall be  executed by Parent each time the
facility is drawn upon.

                           1.3.7.6 Buyer and Parent will be fully  obligated and
responsible  for all payments and  obligations  arising from the New Funding and
its associated uses.

                  1.3.8 As  consideration  for obtaining the  commitment for the
New  Funding,  Parent  will  provide  the  following  consideration  to Majority
Shareholder:

                           1.3.8.1 A fee equal to eight  percent  (8%)  interest
per annum on the outstanding balance under the loan provided to Parent under the
New  Funding,  net of interest  paid on New Funding  payable in shares of Parent
Common  Stock.  Such interest  shall be  calculated on a quarterly  basis on the
average  outstanding  balance  under the loan during such  quarterly  period and
shares of Parent  Common Stock due under this section  shall be issued within 30
days of the end of each fiscal quarter in which interest is earned, and

                           1.3.8.2  Warrants for the purchase of up to 6,000,000
shares of Parent Common Stock at an exercise  price of $.30 per share and a term
of 7 years to be  delivered  at Closing  pursuant  to the terms of that  certain

<PAGE>

warrant agreement to be delivered at closing in a form substantially  similar to
that set forth in Schedule 1.3.8.2.

                  1.3.9 Majority Shareholder shall have a first right of refusal
to  participate,  in part or whole,  on all future debt or equity  financings in
excess of $250,000  sought or issued by Parent in accordance with the following.
For the purpose of this agreement,  "debt or equity financings" shall be defined
as any debts  assumed or stock  issuances  occurring as a direct  result of cash
being  contributed  to  Buyer,  Parent  or any of  Buyer's  other  wholly  owned
subsidiaries;

                           1.3.9.1 In the event that Parent receives a bona fide
offer from an unrelated  third party for a debt or equity  financing in a single
transaction  or a series of related  transactions,  and Parent desires to accept
such offer,  then Parent shall  promptly send a written notice (the "Notice") to
Majority Shareholder.  Such Notice shall contain (i) a true and complete copy of
the offer,  setting forth the price and all terms and conditions,  and the name,
address  (both home and office) and  business or other  occupation  of the party
making the offer (the  "Offeror")  and (ii) an offer to enter into a transaction
with  Majority  Shareholder  at the same  price  and upon  the  same  terms  and
conditions as are contained in the offer.  Majority  Shareholder  and the Parent
shall then have the following obligations, rights and privileges.

                           1.3.9.1.1 For a period of ten business (10) days from
its receipt of the Notice,  Majority  Shareholder  shall have the right, but not
the  obligation,  to enter into the transaction so offered (or to participate in
part by purchasing some of the shares or providing a portion of the debt).

                           1.3.9.1.2  If,  within  the times  specified  in this
Agreement,  (i)  Majority  Shareholder  fails to  exercise  its  First  Right of
Refusal,  then the Parent  shall have the right to accept the offer and to enter
into the proposed transaction with Offeror, subject to all of the provisions and
restrictions  of  this  Agreement,  but  only  in  strict  accordance  with  the
provisions  of the offer;  provided  however,  if the  transaction  is not fully
consummated,  the provisions of Section 1.3.9 must again be complied with by the
Parent before the Parent may enter into the transaction described in the offer.

<PAGE>

                           1.3.9.1.3 If Majority  Shareholder elects to exercise
its First Right of Refusal  hereunder,  then Majority  Shareholder shall send to
the Parent within ten business (10) days from Majority  Shareholder's receipt of
the Notice, a written notice confirming its desire to accept (the  "Acceptance")
the offer and to  participate in such debt or equity  financing.  The closing of
the transaction between Majority  Shareholder and Parent shall take place within
the number of days (as opposed to specific  dates)  provided in the offer. If no
time frame is provided in the offer,  then the closing  shall occur within sixty
(60) days of Parent's receipt of Majority Shareholder's Acceptance.

                  1.3.10 All stock and  warrants  issued  under  this  Agreement
shall be  eligible  for  "piggy-back"  registration  rights and other  rights in
accordance with the Registration Rights Agreement attached as Schedule 1.3.10.

                  1.3.11  Majority  Shareholder  shall  provide funds in cash to
cover Corporation's  operating deficit (if any) for the six months of operations
following the Closing Date;

1.3.11.1 The funding of operating deficits,  if any, shall be made at the end of
each of the three two month periods  after the Closing  Date.  The amount of the
operating  deficit shall be  determined  within ten (10) days after the close of
each such two month period;

1.3.11.2 The  determination of any operating deficit shall be made by the CFO of
Parent and reviewed by Majority Shareholder;

1.3.11.3 Upon agreement of the final operating deficit, the Parent will submit a
formal, written request for reimbursement of the operating deficit;

                           1.3.11.4 If Buyer,  Parent and  Majority  Shareholder
initiate any changes in operations other than changes which occur as a result of
normal day-to-day  operations,  and which are in line with historical activities
of the Corporation,  which negatively impact Cash Flow from Operations,  make it
impracticable  to calculate  Cash Flow from  Operations or properly  account for
Corporation  as a separate  business unit and to prepare a segregated  Cash Flow
Report for Corporation,  then Buyer,  Parent and Majority  Shareholder  agree to
negotiate in good faith to amend the formula for determining  the  reimbursement
due from Majority Shareholder to cover operating deficits; and

<PAGE>

                           1.3.11.5  Majority  Shareholder will transfer by wire
in immediately available funds the amount requested within fifteen (15) business
days of  receipt of written  notice  from  Parent  requesting  reimbursement  of
Corporation's operating deficit pursuant to this Section 1.3.11.

                  1.3.12 As consideration  for the provision of funds in cash to
cover Corporation's  operating deficit (if any) for the six months of operations
following  the Closing  Date,  Parent will  provide  the  following  to Majority
Shareholder:

                           1.3.12.1   Majority   Shareholder   shall  receive  a
quantity of Parent  Common  Stock equal in dollar  value to two times the Annual
Cash Flow From  Operations (as defined below) for each of the three  consecutive
calendar  years  starting  with the year in which the Closing Date occurs (2005,
2006, and 2007) . Said stock shall be issued annually and shall be priced at the
average  closing  price of the Parent  Common  Stock for the 365  calendar  days
preceding issuance.

                           1.3.12.2  The "Annual  Cash Flow" shall be defined as
the Cash Flow From Operations (as defined below).

                           1.3.12.3   "Cash  Flow  From   Operations"   for  the
Corporation  shall be  determined  by  inclusion of the  components  included in
Schedule  1.3.12.3.  Any funding of operations of Corporation in accordance with
Section 1.3.12 will be included in the calculation of Cash Flow From Operations.

                           1.3.12.4 Within thirty (30) days following the end of
each period ending December 31, 2005, 2006 and 2007, Parent shall provide a Cash
Flow Report (the "Cash Flow  Report")  to  Majority  Shareholder.  The Cash Flow
Report will calculate Cash Flow From Operations for the Corporation, identifying
the key  components  used in  determining  Cash  Flow  From  Operations  and any
information needed to evaluate the reasonableness of the calculation.

                           1.3.12.5 Majority Shareholder shall have the right to
have an audit of the Cash Flow From  Operations  calculation as set forth on the
Cash  Flow  Report  performed  by  a  Certified  Public   Accountant.   Majority
Shareholder  must notify  Buyer and Parent of the audit in writing  prior to the
issuance  of  shares of Parent  Common  Stock,  within  thirty  (30) days  after
delivery  of the Cash Flow Report to  Majority  Shareholder.  If the audit shows

<PAGE>

that the Cash Flow From  Operations  was  understated  by more than ten  percent
(10%), the audit will be paid for by the Buyer or Parent.  Otherwise,  the audit
will be at the expense of the Majority Shareholder.  If the audit shows the Cash
Flow From Operations was understated,  additional  shares of Parent Common Stock
will  be  issued  to  the  Majority  Shareholder  equal  to  the  amount  of the
understatement  subject  to  Section  5.1.1  hereof.  No change in the number of
shares of Parent Common Stock issued to Majority Shareholder will be made if the
audit shows an overstatement of the Cash Flow From Operations.

                           1.3.12.6  Shares of Parent Common Stock to be issued,
if any,  will be issued no later than thirty (30) days after the  completion  of
the Cash Flow Report. If Majority  Shareholder  exercises its right to audit the
Cash Flow Report,  such shares will still be issued  within this 30-day  period.
Any  additional  shares of Parent Common Stock that may be issued as a result of
the  audit,  will be  issued  within  thirty  (30) days of the  delivery  of the
completed audit to the Buyer and Parent.

                           1.3.12.7 Buyer, Parent and Majority Shareholder agree
that changes to the operations of Corporation or accounting  allocations made by
the Buyer or Parent could negatively impact Cash Flow from Operations,  and thus
affect  the number of shares of Parent  Common  Stock to be issued  pursuant  to
Section 1.3.12 hereof.  Therefore,  any such changes in operations or accounting
allocations made by Buyer or Parent which could negatively impact Cash Flow from
Operations,  other than  changes  which  occur as a result of normal  day-to-day
operations and consistent with historical activities of the Corporation, must be
agreed to by Majority  Shareholder.  In such an  instance,  Parent and  Majority
Shareholder  agree  to  negotiate  in  good  faith  to  amend  the  formula  for
determining the shares to be issued under paragraph 1.3.12. accordingly.

                           1.3.12.8  To the degree  that Buyer  and/or  Parent's
operations  ("Other  Divisions"),  and  the  operations  of  Corporation,  share
resources,   an  accounting   allocation  consistent  with  standard  accounting
procedures will be made between Corporation and the Other Divisions. Such shared
resources  could  include,  but are not limited to,  advertising  and  marketing
expenses,  insurance,  customer revenues,  sales costs,  employee benefit plans,
audit  fees,  and  other  expenses  that  could be  obtained  at less  cost on a

<PAGE>

corporate wide basis, than on a business unit basis. Any and all such accounting
allocations,  whether from  Corporation  to Buyer and/or  Parent,  or from Buyer
and/or  Parent to  Corporation,  will be  detailed  in the Cash Flow  Report for
Majority Shareholder's review.

                           1.3.12.9 If Buyer,  Parent and  Majority  Shareholder
agree to change  Corporation's  operations or to integrate the operations of the
Corporation  with the  operations  of Other  Divisions  to such a degree that it
becomes  impracticable to calculate the Annual Cash Flow from Operations set out
in Schedule  1.3.12.3 or properly account for Corporation as a separate business
unit and to prepare a segregated Cash Flow Report for Corporation, Buyer, Parent
and Majority  Shareholder  agree to negotiate in good faith to amend the formula
for  determining  the shares of Parent  Common  Stock to be issued  pursuant  to
Section 1.3.12.

                  1.3.13 Within a reasonable time following  Closing,  execution
of an Intercreditor Agreement by and among Corporation,  Buyer, Parent, Majority
Shareholder,  Citicorp and the secured  creditors of Parent and Buyer consenting
to the liens of each  creditor  and the  subordination  items  described  in the
Intercreditor Agreement.

                  1.3.14  Parent shall  appoint one  representative  selected by
Majority Shareholder to the Board of Directors Parent.

                  1.3.15 Each certificate  evidencing  shares of Parent's common
stock issued in connection with this Agreement shall bear a restrictive legend.

                  1.3.1516  Buyer and  Parent  shall  have no  liability  to any
Shareholder arising out of the acts or omissions of Majority  Shareholder or any
disputes among the Shareholders with Majority Shareholder.  Buyer and Parent may
rely  entirely  on their  dealings  with,  and  notices  to and  from,  Majority
Shareholder to satisfy any obligations it might have to the  Shareholders  under
this Agreement and any agreement  referred to herein or otherwise.  Furthermore,
Charles  Smith (the  "Shareholder  Representative")  shall serve as the sole and
exclusive  representative  of  Majority  Shareholder.  Unless  Parent  and Buyer
otherwise consent in writing, the Shareholder  Representative shall serve as the
sole and exclusive  representative  of Majority  Stockholder with respect to any
issue that arises in respect of this  Agreement.  As more fully set forth below,

<PAGE>

Parent,  Buyer,  Corporation  and  Majority  Shareholder  hereby  agree that the
Shareholder  Representative  shall have the power to take any action in order to
contest,  resolve and settle each such issue on behalf of Majority  Shareholder,
including but not limited to actions taken by Majority  Shareholder on behalf of
other Shareholders,  and any action by the Shareholder  Representative  shall be
final and  binding  on  Majority  Shareholder  and the other  Shareholders.  The
parties hereto are hereby expressly authorized to rely on the genuineness of the
signature  of the  Shareholder  Representative,  and upon receipt of any writing
which reasonably appears to have been signed by the Shareholder  Representative.
The parties  hereto any other  person may act upon the same  without any further
duty  of  inquiry  as to the  genuineness  of the  writing.  By  executing  this
Agreement, Charles Smith hereby (a) accepts his appointment and authorization to
act  as  the  Shareholder  Representative  and  as  representative  of  Majority
Shareholder  in  accordance  with the terms hereof and (b) agrees to perform his
obligations hereunder and otherwise to comply with this Section. Notwithstanding
anything herein to the contrary,  the Shareholder  Representative  may resign at
any time;  provided,  that Majority Shareholder shall be required to designate a
successor  within  five (5)  business  days  from  the date of such  Shareholder
Representative's resignation in accordance with this Section.

                  1.3.17 The Shareholder  Representative  is hereby  exclusively
authorized  after  the  Closing  Date to take  such  action  as the  Shareholder
Representative,  acting in his sole discretion, deems necessary,  appropriate or
convenient  to perform  the actions  and  satisfy  the  obligations  of Majority
Shareholder  contemplated by this Agreement,  the Registration Rights Agreement,
Warrant and any other  agreements,  documents or instruments  made in connection
with the Agreement  (collectively,  the  "Transaction  Documents") and any other
action  reasonably  related  thereto.  Without  limiting the  generality  of the
foregoing, the Shareholder Representative is specifically authorized:

                  (a) to assert  claims,  make demands and  commence  actions on
behalf of Majority Shareholder under the Transaction Documents;

                  (b) to act on behalf of  Majority  Shareholder  in  connection
with the Transaction Documents;

<PAGE>

                  (c) to negotiate  and  compromise  any dispute which may arise
under,  and exercise or refrain from exercising  remedies  available to Majority
Shareholder,  or any other Shareholder  under, the Transaction  Documents and to
sign any releases or other documents with respect to such dispute or remedy (and
to bind Majority Shareholder or any Shareholder in so doing);

                  (d) to retain and compensate attorneys,  accountants and other
professionals or consultants to assist in performing his duties hereunder;

                  (e) to give such  instructions  and do such  other  things and
refrain  from doing such  things as it shall deem  appropriate  to carry out the
provisions of the Transaction Documents;

                  (f) to  give  any and  all  consents  and  notices  under  the
Transaction Documents; and

                  (g) to perform all actions,  exercise all powers,  and fulfill
all duties otherwise assigned to it in the Transaction Documents.

                  1.3.18 The  authorization  of the  Shareholder  Representative
contained  herein  shall be  irrevocable  and  effective  until the  rights  and
obligations of Majority Shareholder under the Transaction Documents terminate.

                  1.3.19 The  Shareholder  Representative  will not be liable to
the parties hereto or any  Shareholder for any action taken by him in good faith
pursuant  to this  Agreement.  Majority  Shareholder  shall  indemnify  and save
harmless the Shareholder  Representative from and against any and all liability,
including  all  expenses  reasonably  incurred  in his defense and all costs and
expenses   reasonably  incurred  in  connection  with  the  performance  of  his
reasonable  duties under the Transaction  Documents.  This Section shall survive
the termination of this Agreement.

2. Each of the  Corporation  and  Majority  Shareholder  jointly  and  severally
represents and warrants that all of the  representations  and warranties in this
Section 2 are true and  correct at the date of this  Agreement,  and agrees that
such  representations and warranties shall survive the Closing Date for a period
of eighteen (18) months (the last day of such period being the "Selling  Parties

<PAGE>

Expiration Date"),  except that the representations and warranties regarding tax
matters set forth in this Agreement shall survive until such time as the statute
of  limitations  period  has run for all tax  periods  ended  on or prior to the
Closing Date, which shall be deemed to be the Selling Partes Expiration Date for
purposes  of Section  2. Any  excerpt  from or  summary of any of the  following
representations  and  warranties  that may be set forth on any of the  Schedules
hereto shall not modify or limit the following representations and warranties in
any manner.

         2.1. Corporation is a corporation duly organized, validly existing, and
in good  standing  under the laws of the  Commonwealth  of Virginia  and has all
necessary corporate powers to own its properties and operate its business as now
owned  and  operated  by it.  The  Articles  of  Incorporation  and  By-laws  of
Corporation,  copies of which are  attached as Schedule  2.1,  are  complete and
reflect all amendments thereto through the date hereof.

         2.2. The  authorized  capital stock of Corporation is shown on Schedule
2.2. The issued and outstanding shares of capital stock of Corporation are owned
of record and beneficially by the Shareholders as shown on Schedule 2.2. and the
shares of Parent Common Stock are to be allocated among the  Shareholders as set
forth on Schedule 2.2. which sets forth all of the issued and outstanding shares
of capital stock of Corporation on a fully diluted basis. All outstanding shares
of  capital  stock  of  Corporation   are  validly   issued,   fully  paid,  and
non-assessable,  and such shares have been so issued in full compliance with all
federal,  state  and  foreign  securities  laws  and  Corpoation's  Articles  of
Incorporation,  as amended,  and Bylaws, as amended.  Corporation has not issued
any other  shares of its  capital  stock and there are no  outstanding  options,
warrants,  subscriptions  or other rights or  obligations to purchase or acquire
any  of  such  shares,  nor  any  outstanding  securities  convertible  into  or
exchangeable for such shares,  and there are no preemptive  rights affecting the
issuance or sale of the Shares  except as set forth on Schedule  2.2.  Except as
contemplated under this Agreement,  there are no agreements to which Corporation
is a party  regarding  the  issuance,  registration,  voting or  transfer of its
outstanding shares of its capital stock.

         2.3. Majority Shareholder owns,  beneficially and of record, all of the
Shares,  as set forth next to its name in  Schedule  2.2,  free and clear of all
liens, encumbrances,  security agreements,  equities,  options, claims, charges,
and restrictions.  Majority Shareholder has full power to transfer its Shares to

<PAGE>

Buyer  without  obtaining  the  consent  or  approval  of any  other  person  or
governmental authority. Majority Shareholder is entitled under the Corporation's
Bylaws  to  exercise   "drag  along"  rights  with  respect  to  the  shares  of
Corporation.  Majority  Shareholder is  responsible  for and will use their best
efforts to ensure the  execution of the  assignment,  transfer,  conveyance  and
delivery of such shares pursuant to the terms of this Agreement.

         2.4.  Schedule 2.4 to this  Agreement sets forth  historical  financial
statements and tax returns of Corporation.

                  2.4.1 The financial statements for the years 2001 to 2003 have
been audited and the opinion of the Corporation's auditors is included.

                  2.4.2 Corporation's tax returns for the years 2001 to 2003 are
also included.

                  2.4.3 The financial  statements and tax returns  identified in
Sections  2.4.1 and 2.4.2  and the  financial  statements  for the  period  from
January  1, 2004  through  October  31,  2004 have been  certified  by the chief
financial officer as accurately reflecting the financial condition and financial
performance  of  Corporation  for those  historical  periods.  The  documents in
Schedule  2.4 are  referred  to as the  "financial  statements".  The  financial
statements  have  been  prepared  in  accordance  with U.S.  generally  accepted
accounting principles ("GAAP")  consistently followed by Corporation  throughout
the  periods  indicated,  have  been  prepared  from the books  and  records  of
Corporation,  and fairly  present the financial  position of  Corporation on the
respective dates of the balance sheets included in the financial statements, and
the results of its operations for the respective periods indicated.

         2.5 Since the date of the last  financial  statements  in Schedule 2.4,
there has not been any  change  in the  financial  condition  or  operations  of
Corporation,  except  changes  in the  ordinary  course  of  business  or  those
necessary to implement the terms of this  Agreement,  which have been materially
adverse.

        2.6.  Since the date of the last  financial  statements in Schedule 2.4,
there has been no:

                  2.6.1 Transaction by Corporation except in the ordinary course
of business as conducted on that date;

<PAGE>

                  2.6.2 Capital expenditure by Corporation exceeding $10,000.00;

                  2.6.3  Material  adverse  change in the  financial  condition,
liabilities  (contingent  or  otherwise),  assets,  business,  or  prospects  of
Corporation;

                  2.6.4  Destruction,  damage  to,  or  loss  of  any  asset  of
Corporation (whether insured or uninsured) that materially and adversely affects
the financial condition, business, or prospects of Corporation;

                  2.6.5 Change in  accounting  methods or practices  (including,
without  limitation,  any change in  depreciation  or  amortization  policies or
rates) by Corporation;

                  2.6.6 Revaluation by Corporation of any of its assets;

                  2.6.7 Declaration,  setting aside, or payment of a dividend or
other distribution in respect to the capital stock of Corporation, or any direct
or indirect redemption,  purchase, or other acquisition by Corporation of any of
its shares of capital stock, except as set forth in Schedule 2.6.7.;

                  2.6.8 Increase in the salary or other compensation  payable or
to become payable by Corporation to any of its officers,  directors,  employees,
consultants or agents or  declaration,  payment,  or commitment or obligation of
any kind for the payment, by Corporation,  of a bonus or other additional salary
or compensation to any such person, except as set forth in Schedule 2.6.8.

                  2.6.9 Sale or transfer of any asset of Corporation,  except in
the ordinary course of business,  or any plan, agreement or arrangement granting
any  preferential  rights to  purchase  or acquire  any  interest  in any of the
assets,  property or rights of Corporation or requiring  consent of any party to
the transfer and assignment of any such assets, property or rights;

                  2.6.10 Amendment or termination of any contract, agreement, or
license  to which  Corporation  is a party,  except  in the  ordinary  course of
business;

                  2.6.11  Loan  by  Corporation  to any  person  or  entity,  or
guaranty by Corporation of any loan;

<PAGE>

                  2.6.12 Mortgage,  pledge, or other encumbrance of any asset of
Corporation;

                  2.6.13 Waiver or release of any right or claim of Corporation,
including without  limitation any indebtedness or obligation of any Shareholder,
except in the ordinary course of business.

                  2.6.14  Commencement,  written  notice,  or written  threat of
commencement  of  any  civil  litigation  or  governmental   proceeding  against
Corporation or investigation of its affairs;

                  2.6.15 Labor trouble or written claim of wrongful discharge or
other unlawful labor practice or action;

                  2.6.16  Issuance or sale by  Corporation  of any shares of its
capital stock of any class or of any other of its securities;

                  2.6.17 Change in the authorized  capital of Corporation or its
outstanding  securities or any change in its ownership interests or any grant by
Corporation of any options,  warrants,  calls, conversion rights or commitments,
except as necessitated as a result of this Agreement.

                  2.6.18 Change in the articles of  incorporation  or by-laws of
Corporation;

                  2.6.19  Agreement  by  Corporation  to do any  of  the  things
described in the preceding subsections (1) through (18).

            2.7. Corporation does not have any debt, liability, or obligation of
any nature, whether accrued, absolute, contingent, or otherwise, and whether due
or to become due, that is not contemplated by Section 1.3.3, or is not reflected
or reserved against in Corporation's consolidated balance sheet, included in the
financial statements or set forth in Schedule 2.4 to this Agreement,  except for
(1)  those  that may have  been  incurred  after  the date of that  consolidated
balance  sheet and (2) those that are not  required  by GAAP to be included in a
balance sheet. All debts, liabilities,  and obligations incurred after that date
were  incurred in the  ordinary  course of business  and are usual and normal in
amount both individually and in the aggregate. Corporation is not liable upon or
with respect to, or obligated in any other way to provide funds in respect of or
to guarantee or assume in any manner,  any debt,  obligation  or dividend of any
person,  corporation,  association,  partnership,  joint venture, trust or other
entity.

<PAGE>

         2.8. All accounts  receivable of Corporation shown on the balance sheet
of Corporation,  as set forth on Schedule 2.4 arose from bona fide  transactions
in the ordinary  course of business,  and the goods and services  involved  have
been sold,  delivered  and  performed  to the  account of the  obligors,  and no
further  goods are required to be provided and no further  services are required
to be rendered in order to complete  the sales and fully render the services and
to entitle  Corporation  to collect the  accounts  receivable  in full.  No such
account has been assigned or pledged to any other person,  firm or  corporation,
and,  except  only to the  extent  fully  reserved  against  as set forth on the
balance sheet, no defense or setoff to any such account has been asserted by the
account obligor. That balance sheet reflects adequate and reasonable reserves to
provide for losses thereby  contemplated.  Trade  discounts shown on the balance
sheet of Corporation (Schedule 2.4), if any, are on a basis consistent with that
of prior years.

           2.9. Tax Returns.  Corporation  has properly  filed,  or caused to be
properly  filed,  all required  federal tax returns and  reports,  all state and
local tax returns and reports and all related  information  required to be filed
with respect to income, withholding, property and sales taxes, and all other tax
returns,  reports  and  related  information,  the  filing  of any of  which  is
reasonably required for the conduct of the businesses of Corporation or required
by any taxing  authority  having  jurisdiction  over  Corporation.  All such tax
returns properly reflect the taxes  attributable to the businesses of Parent and
Buyer for the periods  covered  thereby.  All  federal,  state and local  taxes,
assessments,  interest,  penalties,  deficiencies,  fees and other  governmental
charges or  impositions  called for by such tax  returns or claimed to be due by
any taxing authority have been properly accrued or paid if due.

         2.10.  Corporation has never filed,  and will not file on or before the
Closing Date, any consent under Internal Revenue Code Section 341(f).

         2.11.  Schedule 2.11 to this  Agreement is a complete and accurate list
of all real property owned by or leased to Corporation,  and all leases relating
thereto, together with an accurate brief description of each property.  Schedule
2.11 also  sets  forth  brief  descriptions  of all  buildings  and other  major
improvements  located  on these  properties.  Buyer  shall  promptly  assume the
obligations under such identified leases.

<PAGE>

         2.12.  Schedule 2.12 contains a complete and accurate  description  and
specifies the location of all machinery,  equipment, furniture, supplies, tools,
and all other tangible personal property owned by, in the possession of, or used
by Corporation in connection with its business.  The tangible  personal property
reflected  in those books and records  constitutes  all such  tangible  personal
property  necessary for the conduct by Corporation of its respective  businesses
as now conducted.

         2.13.  Except as stated in Schedule 2.12, no personal  property used by
Corporation  in connection  with its business is held under any lease,  security
agreement,  conditional  sales  contract,  or other title  retention or security
arrangement, or is located other than in the possession of Corporation.

         2.14.  Corporation has good and marketable  title to all its respective
assets and interests in assets,  whether real,  personal,  mixed,  tangible,  or
intangible,  which  constitute  all the assets and  interests in assets that are
used in the  businesses of  Corporation.  All these assets are free and clear of
restrictions  on or conditions  to transfer or assignment  and free and clear of
mortgages, liens, pledges, charges,  encumbrances,  equities, claims, easements,
rights of way, covenants, conditions, or restrictions,  except for (1) the liens
of Majority  Shareholder and lenders to the Corporation  contemplated by Section
1.3.5;  (2) those disclosed in Corporation's  consolidated  balance sheet, or in
Schedules  to this  Agreement;  (3) the lien of  current  taxes  not yet due and
payable;  and  (4)  possible  minor  matters  that,  in the  aggregate,  are not
substantial in amount and do not  materially  detract from or interfere with the
present or intended use of any of these  assets or  materially  impair  business
operations.  Corporation is not in default or in arrears in any material respect
under any lease. All real property and tangible personal property of Corporation
is in good  operating  condition and repair,  ordinary  wear and tear  excepted.
Corporation  is in  possession  of all  premises  leased  from  others.  Neither
Majority Shareholder; nor any other shareholder,  officer, director, or employee
of  Corporation;  nor any  spouse,  child,  or  other  relative  of any of these
persons, owns, or has any interest,  directly or indirectly,  in any of the real
or  personal  property  owned by or leased  to  Corporation  or any  copyrights,
patents,  trademarks,  trade names,  or trade secrets  licensed by  Corporation,
except as further described in Schedule 2.14 to this Agreement.

<PAGE>

         2.15. Corporation does not occupy any real property in violation of any
law, regulation, or decree.

         2.16.  Schedule 2.16 to this Agreement is a correct and current list of
all customers of Corporation together with summaries of the services provided or
sales made to each customer during the most recent twelve-month  period.  Except
as indicated in Schedule 2.16, neither the Corporation, nor Majority Shareholder
has any information indicating that any of these customers intend to cease doing
business with  Corporation  or materially  alter the amount of the business they
are presently doing with Corporation.

         2.17. Schedule 2.17 to this Agreement is a description of all insurance
policies  held  by  Corporation   concerning  its  businesses  and   properties.
Corporation  has  maintained  and now  maintains (1) insurance on all assets and
businesses of a type customarily  insured,  covering property damage and loss of
income by fire or other casualty,  and (2) adequate insurance protection against
all  liabilities,  claims,  and risks  against  which it is customary to insure,
except for errors and omissions  insurance.  Corporation  is not in default with
respect  to  payment  of  premiums  on any such  policy.  Except as set forth in
Schedule 2.17, no claim is pending under any such policy.

         2.18. Corporation is not a party to any distributor's or manufacturer's
representative or agency agreement;  any output or requirements  agreement;  any
agreement not entered into in the ordinary  course of business;  any  indenture,
mortgage,  deed of trust, or lease;  or any agreement  except for the agreements
listed in Schedule  2.18,  copies of which have been furnished or made available
to Buyer.  There is no default or event that,  with  notice,  lapse of time,  or
both,  would  constitute  a  default  by any  party to any of these  agreements.
Corporation  has not  received  written  notice  that any  party to any of these
agreements intends to cancel or terminate any of these agreements or to exercise
or not exercise any options under any of these agreements.  Corporation is not a
party to, nor is either the Corporation or the property of Corporation bound by,
any  agreement  that is materially  adverse to the  businesses,  properties,  or
financial condition of Corporation.

         2.19.  Corporation has not received  written notice of any violation of
any applicable federal,  state, or local statute,  law, or regulation (including
any  applicable  building,  zoning,  environmental  protection,  or  other  law,

<PAGE>

ordinance,  or regulation)  affecting  their  properties or the operation of its
business;  and  to the  best  of  the  knowledge  of  Majority  Shareholder  and
Corporation, there are no such violations.

         2.20. Except as set forth in Schedule 2.20, there is no pending, or, to
the best  knowledge  of Majority  Shareholder  and  Corporation,  threatened  in
writing,  suit,  action,  arbitration,  or  legal,   administrative,   or  other
proceeding, or governmental  investigation against or affecting Corporation,  or
any of it's businesses,  assets, or financial conditions.  The matters set forth
in Schedule  2.20,  if decided  adversely to  Corporation,  will not result in a
material  adverse  change in the  business,  assets,  or financial  condition of
Corporation. Selling Parties have furnished or made available to Buyer copies of
all relevant court papers and other documents  relating to the matters set forth
in Schedule 2.20. Corporation is not in default with respect to any order, writ,
injunction,   or  decree  of  any  federal,  state,  local,  or  foreign  court,
department,  agency, or  instrumentality.  Except as set forth in Schedule 2.20,
the  Corporation  is not presently  engaged in any legal action to recover money
due to it or damages sustained by it.

         2.21.  Except as  otherwise  set forth in  Schedule  2.21,  neither the
execution  and  delivery  of  this   Agreement  nor  the  carrying  out  of  the
transactions  contemplated by this Agreement will: (1) result in or constitute a
default or an event that, with notice, lapse of time, or both, would result in a
default,  breach,  or violation of the  articles of  incorporation  or bylaws of
Corporation or any lease, license,  promissory note, conditional sales contract,
commitment,  indenture, mortgage, deed of trust, or other agreement, instrument,
or arrangement to which the  Corporation is a party or by which any of it or the
property of it is bound;  (2) result in or constitute an event that would permit
any party to  terminate  any  agreement  or to  accelerate  the  maturity of any
indebtedness or other  obligation of Corporation;  (3) result in the creation or
imposition of any lien, charge, or other encumbrance on any of the properties of
Corporation  or  its  shares  of  capital  stock;  or  (4)  require  any  of the
Shareholders  or  Corporation  to obtain or make any  waiver,  consent,  action,
approval or  authorization  of, or registration,  declaration,  notice or filing
with, any private  non-governmental  third party or any governmental  authority.
Any and all  consents  required to be obtained  by  Corporation  as set forth in
Schedule 2.21 shall be obtained and copies  thereof  delivered to Buyer within a
reasonable period of time following Closing.

<PAGE>

         2.22.  Selling  Parties  have the right,  power,  legal  capacity,  and
authority  to enter into and perform  their  respective  obligations  under this
Agreement.  The execution and delivery of this Agreement by Corporation has been
duly authorized by all necessary corporate action.

         2.23.   Except  as  set  forth  in  Schedule  2.23,   neither  Majority
Shareholder;  nor any officer,  director,  or employee of  Corporation;  nor any
spouse  or child of any of them  has any  direct  or  indirect  interest  in any
competitor,  supplier,  or customer of Corporation or in any person from whom or
to whom Corporation leases any real or personal property, or in any other person
with whom Corporation is doing business.

         2.24.  Selling  Parties have furnished to Buyer for its examination (1)
copies of the  articles  of  incorporation  and bylaws of  Corporation;  (2) the
minute books of Corporation; (3) all permits, orders, and consents issued by the
appropriate  Commissioner  of Corporations  with respect to Corporation,  or any
security,  and all applications for such permits,  orders, and consents; and (4)
the stock  transfer  books of  Corporation  setting  forth all  transfers of any
capital stock.

        2.25.  Schedule  2.25  is a  list  of the  names  and  addresses  of all
  officers,  directors,  employees,  agents, and representatives of Corporation,
  stating the rates of compensation payable to each.

            2.26.  Schedule  2.26  is  a  list  of  all  Corporation's  material
employment contracts;  collective  bargaining  agreements;  and pension,  bonus,
profit-sharing,  stock  option,  or  other  agreements  providing  for  employee
remuneration  or benefits.  Schedule  2.26 also contains a complete and accurate
list of all Compensation  Plans sponsored by Corporation or to which Corporation
contributes on behalf of its  employees.  As used herein,  "Compensation  Plans"
shall mean and include,  without  limitation,  plans,  arrangements or practices
that provide for  severance  pay,  deferred  compensation,  incentive,  bonus or
performance awards, and stock ownership or stock options. To the best of Selling
Parties' knowledge, Corporation is not in default under any of these agreements.

         2.27.  Schedule  2.27 lists (1) the names and  addresses of all persons
holding a power of attorney on behalf of  Corporation  and a description  of the
terms of such power, (2) the names and addresses of all banks or other financial

<PAGE>

institutions in which Corporation has an account,  deposit, or safe deposit box,
with the names of all persons  authorized to draw on these  accounts or deposits
or to have access to these boxes and (3) the type of account and account number.

         2.28.  None  of  the  warranties   made  by  Majority   Shareholder  or
Corporation,  or  made  in any  certificate  or  memorandum  furnished  or to be
furnished by any of them or on their behalf, contains or will contain any untrue
statement of a material  fact, or omits to state any material fact  necessary to
make the statements made.

         2.29. Software Contracts.

                  2.29.1  Schedule  2.29.1  lists  all  contracts,   agreements,
licenses,  and other  commitments and  arrangements,  oral or written,  with any
person  respecting the ownership,  license,  acquisition,  design,  development,
distribution,  marketing,  use, or maintenance of computer program code, related
technical or user  documentation,  and  databases,  in each case  relating to or
arising  out of  Corporation's  business  consisting  of the  items  listed  and
classified  as follows:  (1) licenses  from third  parties  (development  and/or
marketing); (2) licenses from third parties (internal use only); (3) development
contracts,  work-for-hire agreements,  and consulting and employment agreements;
(4) distributorships, dealerships, franchises, and manufacturer's representative
contracts; (5) licenses and sublicenses to others; and (6) maintenance, support,
or enhancement agreements (the "Software Contracts").

                  2.29.2  All  Software  Contracts  are  valid,   binding,   and
enforceable  in  accordance  with their  terms and are in full force and effect.
There are no existing defaults by Corporation  under any such contracts,  and no
act, event, or omission has occurred that, whether with or without notice, lapse
of time, or both, would constitute a default thereunder.

                  2.29.3  Corporation has not received any written notice from a
customer that is a party to any Software  Contract  requiring the performance of
services by Corporation that such customer will not do business on substantially
the same terms and conditions subsequent to the date as such customer did before
such date.

         2.30. Technical Documentation.

<PAGE>

                  2.30.1  Schedule  2.30.1 lists all technical  and  descriptive
materials relating to the acquisition,  design, development, use, or maintenance
of computer code and program  documentation and materials used by Corporation in
the conduct of its business (the "Technical Documentation").

                  2.30.2 Except as set forth on Schedule  2.30.2,  the Technical
Documentation  includes the source code,  system  documentation,  statements  of
principles of operation,  and schematics  for all Software  Programs (as defined
below), as well as any pertinent commentary or explanation that may be necessary
to render  such  materials  understandable  and  usable  by a  trained  computer
programmer.  The Technical  Documentation  also includes any program  (including
compilers),  "workbenches," tools, and higher level (or "proprietary")  language
used  for the  development,  maintenance,  and  implementation  of the  Software
Programs.

         2.31. Third-Party Components in Software Programs.

                  2.31.1  Corporation has validly and  effectively  obtained the
right  and  license  to  use,  copy,  modify,  and  distribute  the  third-party
programming  and  materials   contained  in  software  programs  (the  "Software
Programs")  and  Technical  Documentation  pursuant  to the  Software  Contracts
identified as "licenses from third parties  (development  and/or  marketing)" or
"Licenses  from third  parties  (internal  use only)" in  Schedule  2.31.1.  The
Software  Programs and Technical  Documentation  contain no other programming or
materials  in which  any  third  party  may  claim  superior,  joint,  or common
ownership,  including any right or license.  The Software Programs and Technical
Documentation  do not contain  derivative  works of any programming or materials
not owned in their entirety by Corporation.

                  2.31.2 Schedule 2.31.2 sets forth all obligations  under which
Corporation  has to pay royalties to any third party to use, copy,  modify,  and
distribute the third-party  programming and materials  contained in the Software
Programs and Technical Documentation.

         2.32  Third-Party Interests or Marketing Rights in Software Programs.

                  2.32.2 Corporation has not granted,  transferred,  or assigned
any right or interest in the Software Programs, the Technical Documentation,  or
the Intellectual  Property (as defined below) to any Person,  except pursuant to

<PAGE>

the Software Contracts identified as "distributorships, dealerships, franchises,
and  manufacturer's  representative  contracts" or "licenses and  sublicenses to
others" in Schedule 2.32.2.

                  2.32.3  Except as set  forth in  Schedule  2.32.3(a),  (1) all
Software  Contracts  identified  as  "licenses  and  sublicenses  to  others" in
Schedule 2.29.1 constitute only end-user agreements, each of which substantially
conforms to the standard form(s) established by Corporation, copies of which are
attached  hereto as Schedule  2.32.3(b),  (2) subject to changes that  (assuming
continuation  of  present  business  practices)  are not  material.  Except  for
reasonable and ordinary  marketing and service  commitments  and  practices,  or
except as provided in written purchase orders,  license agreements,  maintenance
contracts,  and customer files  identified in Schedule 2.16 and (3)  Corporation
has not made or entered into any contracts or commitments,  written or oral, for
the  benefit  of  any  current  customers  or  prospects,   including,   without
limitation, custom software development.

                  2.32.4 There are no contracts, agreements, licenses, and other
commitments   and   arrangements  in  effect  with  respect  to  the  marketing,
distribution,  licensing,  or promotion of the Software Programs,  the Technical
Documentation,  or the  Intellectual  Property by any  independent  salesperson,
distributor,  sublicensor, or other remarketer or sales organization, except for
the Software Contracts identified as "distributorships, dealerships, franchises,
and manufacturer's representative contracts" in Schedule 2.29.1.

         2.33  Intellectual Property.

                  2.33.1 Schedule 2.33.1 lists all patents, trademarks,  service
marks,  trade names,  and copyrights  (including  registrations,  licenses,  and
applications  pertaining thereto),  and all other intellectual  property rights,
trade secrets, and other proprietary  information,  processes, and formulae used
in  Corporation's  business or otherwise  necessary for the ownership and use of
the  assets  used  in  Corporation's   business  and  for  the  conduct  of  the
Corporation's business (the "Intellectual  Property").  The specific location of
each  trade  secret's   documentation,   including  its  complete   description,
specifications,  charts,  procedures, and other material relating to it, is also
set forth in Schedule  2.33.1.  Each trade  secret's  documentation  is current,
accurate, and sufficient in detail and content to identify and explain it and to
allow its full and proper use by Buyer without reliance on the special knowledge
or memory of others.

<PAGE>

                  2.33.2  Except  for  the  rights  and  licenses   validly  and
effectively  established  by  the  Software  Contracts,   Corporation  owns  the
Intellectual  Property.  The business of  Corporation as conducted in the normal
course  of  business  prior  to the  date  hereof,  including  the  development,
manufacture,  marketing,  sale or use of any product or service by  Corporation,
does  not  require  or use any  intellectual  property  rights  other  than  the
Intellectual Property.

                  2.33.3  The  execution,   delivery  and  performance  of  this
Agreement and the consummation of the transactions contemplated hereby, will not
breach,  violate or conflict  with any  instrument  or agreement  governing  any
Intellectual Property, will not cause the forfeiture or termination or give rise
to a right of forfeiture or termination of any  Intellectual  Property or in any
way impair the right of  Corporation  to use,  sell,  license  (or  sublicense),
transmit,  broadcast,  deliver (electronically or otherwise) or dispose of or to
bring any action for the infringement  of, any Intellectual  Property or portion
thereof

                  2.33.4  Corporation  has taken all  reasonable  precautions to
protect the secrecy, confidentiality, and value of its trade secrets. The source
code and system documentation  relating to the Software Programs (1) have at all
times been  maintained in confidence  and (2) have been disclosed by Corporation
only to employees and consultants  having "a need to know" the contents  thereof
in connection with the performance of their duties to Corporation.

                  2.33.5   All   personnel,    including   employees,    agents,
consultants,  and  contractors,  who have  contributed to or participated in the
conception and development of the Software Programs, Technical Documentation, or
Intellectual  Property  on  behalf  of  Corporation  either  (1) are  party to a
"work-for-hire"  arrangement or agreement with  Corporation,  in accordance with
applicable federal and state law, that has accorded Corporation full, effective,
exclusive,  and  original  ownership of all  tangible  and  intangible  property
thereby arising, or (2) have executed  appropriate  instruments of assignment in
favor of  Corporation  as  assignee  that have  conveyed  to  Corporation  full,
effective,  and  exclusive  ownership of all tangible  and  intangible  property
thereby arising.

                  2.33.6 In no  instance  has the  eligibility  of the  Software
Programs for  protection  under  applicable  copyright law been forfeited to the
public domain.

<PAGE>

                  2.33.7 To the best knowledge of Corporation, no third party is
infringing upon, or is in violation of any license or agreement with Corporation
relating to, any Intellectual Property.

                  2.33.8 The use and  application of the  Intellectual  Property
and the operation of the business of  Corporation  in the normal course prior to
the date hereof does not infringe in any respect upon the intellectual  property
rights  of any  Person.  No claims  have been  asserted  by any  Person  against
Corporation's use of the Intellectual Property, and Corporation does not know of
any valid basis for any such claim. No proceeding  alleging  infringement of the
intellectual  property  rights of any Person is pending  or  threatened  against
Corporation  (and to the best of  Corporation's  knowledge there is no basis for
any such allegation).

                  2.33.9 Set forth on Schedule  2.33.9 is a description  of what
rights  (unlimited,  limited,  restrictive,  government  purpose license rights,
etc.) if any, the U.S. government has in any technical data or computer software
that Corporation  uses in its business.  Except as set forth on Schedule 2.33.8,
Corporation  has not  developed  any item,  component,  process or software as a
requirement of any U.S. government contract.

         2.34     Significant Customers; Material Contracts and Commitments.

                  2.34.1 If any  customer  or client of  Corporation  during the
past 12-month period  accounted for more than 15% of  Corporation's  revenues or
gross profits during such period, Schedule 2.34 hereto identifies such customers
or clients.  If any customer or client of Corporation  (or group of customers or
clients) that is material to  Corporation  or was material to Corporation or its
results of  operations  during the year ended  December  31,  2003 or during the
period reflected by the most recent  financial  statements set forth on Schedule
2.4 has  canceled  or  substantially  reduced  or, is  currently  attempting  or
threatening to cancel or  substantially  reduce its or their  utilization of the
services  provided by the  Corporation,  Schedule 2.34.1 hereto  identifies such
customers or clients.

                  2.34.2 Schedule  2.34.1 also lists all Material  Contracts (as
defined below) to which  Corporation is a party,  and  Corporation has delivered
true,  complete and correct copies of such  contracts to Buyer.  For purposes of
this Agreement, the term "Material Contracts" means:

<PAGE>

                  (i) contracts  between  Corporation and significant  customers
(as described above);

                  (ii)  contracts  material  (in  the  reasonable   judgment  of
Majority Shareholder) to the operation of the business of Corporation, including
those relating to medical practice management and billing,  strategic alliances,
and other  agreements  of  importance  (in the  reasonable  judgment of Majority
Shareholder) to Corporation; and

                  (iii)  any  other   contracts   which   involve   payments  by
Corporation in any twelve-month period in excess of $25,000.

All of the Material  Contracts are in full force and effect and constitute valid
and  binding  agreements  of the  parties  (and  their  successors)  thereto  in
accordance with their respective terms except as the enforceability  thereof may
be  limited  by  bankruptcy,  insolvency,  reorganization,  moratorium  or other
similar laws relating to the enforcement of creditors'  rights  generally and by
general principles of equity.

         2.35 The  representations  and warranties of  Corporation  and Majority
Shareholder set forth in this Agreement,  including the Schedules  hereto do not
contain an untrue  statement of a material fact or omit to state a material fact
necessary  to make  the  statements  herein  and  therein,  in the  light of the
circumstances  under  which  they were made,  not  misleading.  This  Agreement,
including the Schedules  hereto and all other  documents  and  information  made
available  to Buyer  and its  representatives  in  writing  pursuant  hereto  or
thereto,  present  fairly the business of the  Corporation  for the time periods
with respect to which such information was requested. Corporation's rights under
the  documents  delivered  pursuant  hereto  would not be  materially  adversely
affected  by, and no  statement  made  herein  would be  rendered  untrue in any
material  respect by, any other  document to which  Corporation  or any officer,
director or  Majority  Shareholder  is a party,  or to which its  properties  or
assets are subject, or by any other fact or circumstance  regarding  Corporation
(which fact or circumstance was, or should reasonably,  after due inquiry,  have
been  known  to  Corporation  or  Majority  Shareholder)  that is not  disclosed
pursuant hereto or thereto.

<PAGE>

3. Each of the Buyer and Parent  jointly and severally  represents  and warrants
that all of the  representations  and  warranties in this Section 3 are true and
correct at the date of this Agreement,  and agrees that such representations and
warranties shall survive the Closing Date for a period of eighteen  months.  Any
excerpt from or summary of any of the following  representations  and warranties
that may be set forth on any of the  Schedules  hereto shall not modify or limit
the following representations and warranties in any manner.

         3.1.  Due  Organization,  Qualification.  The Buyer is duly  organized,
validly  existing  and  in  good  standing,  under  the  laws  of the  State  of
California.  Parent is duly  organized,  validly  existing and in good standing,
under the laws of the State of Nevada.  If not qualified as of the Closing Date,
Buyer  shall  promptly  (and in no event  later than  thirty (30) days after the
Closing  Date)  be duly  qualified  or  licensed  to do  business  as a  foreign
corporation in every  jurisdiction  in which the ownership of property  requires
qualification.

         3.2.  Authority;  Binding  Nature of  Agreement.  Upon the  adoption of
appropriate resolutions by the Buyer's and Parent's boards of directors:

                  3.2.1  The  Buyer  and  Parent  will  have  the  absolute  and
unrestricted   right,  power  and  authority  to  enter  into  and  perform  its
obligations under this Agreement;

                  3.2.2  The  execution,   delivery  and   performance  of  this
Agreement  by the  Buyer and  Parent  will  have  been  duly  authorized  by all
necessary action on the part of the Buyer,  Parent and their respective board of
directors; and

                  3.2.3 This  Agreement  will  constitute  the legal,  valid and
binding  obligation  of the Buyer,  enforceable  against the Parent and Buyer in
accordance with its terms; and

         3.3. Capitalization.

                  The authorized  capital stock of Parent is 200,000,000  shares
of common stock,  par value $0.001 per share.  All of the issued and outstanding
shares of the capital stock of Buyer are owned by Parent.  All of the issued and
outstanding  shares  of the  capital  stock of Parent  and Buyer  have been duly
authorized and validly issued,  are fully paid and  nonassessable,  and further,
such shares were  offered,  issued,  sold and  delivered  by Parent and Buyer in
compliance in all material  respects with all applicable  state and federal laws
concerning the issuance of securities.

<PAGE>

         3.4. Financial Statements; SEC Filings.

                  3.4.1  The  Consolidated  balance  sheets  of  Parent  and its
subsidiaries  as of  December  31,  2003  and  December  31,  2002  and  related
statements of operations, shareholders' equity and cash flows for the years then
ended included in the Annual Report on Form 10-KSB of Parent for the fiscal year
ended December 31, 2003, as filed with the  Securities  and Exchange  Commission
("SEC"), and the unaudited, consolidated balance sheet of Parent as of September
30, 2004 and the related  unaudited  statement of operations for the period then
ended  included  in the  Quarterly  Report  on Form  10-QSB  of  Parent  and its
subsidiaries  for the quarter  ended  September  30, 2004 as filed with the SEC,
copies  of  all  of  which  have  been  made   available  by  Parent  to  Seller
(collectively,  the  "Parent  Financial  Statements"),  have  been  prepared  in
accordance with GAAP (except as disclosed in the notes  thereto),  and presented
fairly  the  financial  position  of  Buyer at the  dates,  and the  results  of
operations of Parent and its subsidiaries for the periods, stated therein.

                  3.4.2  Since  November  22,  2004,  Parent  and its  principal
shareholders have filed with the SEC all forms,  reports and documents  required
to be filed pursuant to the Securities Act of 1933, as amended (the  "Securities
Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
together with the rules and regulations  promulgated  there under, all of which,
as of the respective  filing dates,  complied in all material  respects with all
applicable  requirements  of the Securities Act and the Exchange Act. Parent has
made available to Seller a true and complete copy of each report filed by Parent
with the SEC since November 22, 2004 (the "Parent  Filings).  None of the Parent
Filings as of the dates they  respectively were filed with the SEC contained any
untrue  statement  of a  material  fact or  omitted  to  state a  material  fact
necessary  to be stated  therein or  necessary  in order to make the  statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.

         3.5.  Absence of Undisclosed  Liabilities.  There are no liabilities of
Parent or its  subsidiaries of any kind  whatsoever,  whether or not accrued and
whether or not  contingent  or absolute,  determined or  determinable,  that are
material to Parent, other than:

<PAGE>

                  3.5.1  Liabilities  disclosed  or  provided  for in the Parent
Financial Statements;

                  3.5.2 Liabilities disclosed in the Parent Filings;

                  3.5.3 Liabilities  incurred by or on behalf of Parent or Buyer
in connection with the transactions; and

                  3.5.4 Liabilities  incurred in the ordinary course of business
since September 30, 2004, none of which, either singly or in the aggregate,  are
reasonably likely to be materially adverse to the financial condition,  business
or properties of Parent.

         3.6. Absence of Changes.  Except as disclosed in the Parent Filings, or
the  Parent  Financial  Statements,  since  September  30,  2004,  and except as
contemplated by this Agreement, Parent and Buyer have conducted their respective
business in the ordinary course, and there has not been:

                  3.6.1 Any Material adverse change in the financial  condition,
business or properties of Parent or Buyer;

                  3.6.2 Any change in the  method of  accounting  or  accounting
practice of Parent other than changes required by GAAP; or

                  3.6.3 Any  setting  aside or payment of any  dividend or other
distribution  (whether in cash,  stock or  property) in respect of any shares of
any class of stock of Parent in excess of $5000.

         3.7. Non-Contravention; Consents.

                  3.7.1  Except  as set forth in  Schedule  3.7.1,  neither  the
execution nor delivery of any of this  Agreement or the  documents  contemplated
herein (the  "Transaction  Agreements"),  nor the consummation or performance of
any of the transactions contemplated therein (the "Transactions"), will directly
or indirectly (with or without notice or lapse of time):

                           3.7.1.1  Contravene,  conflict  with or  result  in a
violation  of (i)  any of the  provisions  of  either  Parent's  or the  Buyer's
articles of incorporation or bylaws, or (ii) any resolution  adopted by Parent's

<PAGE>

or the Buyer's respective board of directors or any committee of Parent's or the
Buyer's board of directors; or

                           3.7.1.2  Contravene,  conflict  with or  result  in a
violation  of,  or give any  Governmental  Body or  other  Person  the  right to
challenge any of the Transactions or to exercise any remedy or obtain any relief
under,  any legal  requirement or any order to which Parent or the Buyer, or any
of the assets owned or used by Parent or the Buyer, is subject.

                  3.7.2 No  governmental  authorization  or other  consent  of a
governmental  body or  other  regulatory  authority  is  required  to be made or
obtained  by Parent or Buyer in  connection  with the  execution,  delivery  and
performance of this Agreement,  the Transaction  Agreements and the consummation
of the Transaction.

         3.8. Proceedings; Orders.

                  3.8.1  Except  as set  forth in  Schedule  3.8.1,  there is no
pending  legal  proceeding,  and no Person has  threatened to commence any legal
proceeding;

                           3.8.1.1  that  involves  Parent  or  Buyer,  or  that
otherwise relates to or might affect Parent's or Buyer's respective  businesses;
or

                           3.8.1.2 that challenges,  or that may have the effect
of  preventing,  delaying,  making  illegal  or  interfering  with,  any  of the
Transactions.

                  3.8.2  Except as set  forth in  Schedule  3.8.2,  no event has
occurred,  and no claim, dispute or other condition or circumstance exists, that
might  directly  or  indirectly  give  rise  to or  serve  as a  basis  for  the
commencement of any such proceeding.

                  3.8.3  The  Parent  and  Buyer  have   delivered  to  Majority
Shareholder  accurate and complete copies of all pleadings,  correspondence  and
other written materials, to which Parent and/or Buyer have access that relate to
the proceedings identified in Schedule 3.8.1 and Schedule 3.8.2.

                  3.8.4 There is no proposed  order that, if issued or otherwise
put into effect,  (i) may have a material  adverse effect on Parent's or Buyer's
businesses,  condition, assets, liabilities,  operations, financial performance,

<PAGE>

net income or prospects (or on any aspect or portion  thereof) or on the ability
of Parent or Buyer to comply with or perform any  covenant or  obligation  under
any of the  Transaction  Agreements,  (ii) may have the  effect  of  preventing,
delaying,  making illegal or otherwise interfering with any of the Transactions,
or (iii) may have an adverse  effect on either  Parent's  or Buyer's  ability to
operate the business related to the Transactions.

                  3.8.5 No Other Defaults. Except as set forth on Schedule 3.8.1
and Schedule 3.82,  neither Parent,  nor Buyer is in material  default under any
contract  or other  instrument  to which it is a party and to the  knowledge  of
Parent and Buyer,  no other party under any such  contract or  instrument  is in
material default thereunder.

                  3.8.6 Tax  Returns.  Except as set  forth on  Schedule  3.8.6,
Parent  and Buyer have  properly  filed,  or caused to be  properly  filed,  all
required  federal tax returns and  reports,  all state and local tax returns and
reports and all related information required to be filed with respect to income,
withholding,  property and sales taxes,  and all other tax returns,  reports and
related  information,  the filing of any of which is reasonably required for the
conduct of the  businesses  of Parent  and/or  Buyer or  required  by any taxing
authority  having  jurisdiction  over Parent and/or Buyer.  All such tax returns
properly reflect the taxes attributable to the businesses of Parent and/or Buyer
for  the  periods  covered  thereby.   All  federal,   state  and  local  taxes,
assessments,  interest,  penalties,  deficiencies,  fees and other  governmental
charges or  impositions  called for by such tax  returns or claimed to be due by
any taxing authority have been properly accrued or paid if due.

                  3.8.9  Solvency.  As of the date  hereof and as of the Closing
Date and the completion of all of the Transactions, Parent and Buyer will expect
to be able to pay their  respective  debts as they  mature,  will  have  capital
sufficient to carry on their business and all businesses in which they are about
to engage,  and will have assets  that will have a present  fair  salable  value
greater than the aggregate amount of Parent and Buyer's indebtedness. Parent and
Buyer do not intend to incur  debts  beyond  their  ability to pay as such debts

<PAGE>

mature.  Neither Parent nor Buyer contemplate filing a petition in bankruptcy or
for  reorganization  under the federal Bankruptcy Code, or (ii) are aware of any
threatened bankruptcy or insolvency proceedings against either of them.

                  3.8.10 Disclosure. The representations and warranties of Buyer
and Parent set forth in this  Agreement,  including the Schedules  hereto do not
contain any untrue statement of a material fact or omit to state a material fact
necessary  to make  the  statements  herein  and  therein,  in the  light of the
circumstances  under  which  they were made,  not  misleading.  This  Agreement,
including the Schedules  hereto and all other  documents  and  information  made
available to Corporation and its  representatives  in writing pursuant hereto or
thereto,  present  fairly the  business of Buyer and Parent for the time periods
with  respect to which such  information  was  requested.  Buyer's and  Parent's
rights under the  documents  delivered  pursuant  hereto would not be materially
adversely  affected by, and no statement made herein would be rendered untrue in
any  material  respect  by, any other  document  to which  Buyer,  Parent or any
officer  or  director  is a party,  or to which its  properties  or  assets  are
subject,  or by any other fact or circumstance  regarding Buyer or Parent (which
fact or circumstance  was, or should  reasonably,  after due inquiry,  have been
known to Buyer or Parent) that is not disclosed pursuant hereto or thereto.

                  3.8.11 Brokers.  The Buyer and Parent have not agreed and will
not become  obligated to pay, and have not taken any action that might result in
any Person  claiming  to be  entitled  to  receive,  any  brokerage  commission,
finder's fee or similar commission or fee in connection with the Transactions.

4.  Selling  Parties  covenant  that from the date of this  Agreement  until the
Closing  Date,  except as necessary to carry out the  Transactions  contemplated
herein and in the Transaction Agreements:

         4.1. Buyer and its counsel, accountants, and other representatives will
have  full  access  during  normal  business  hours  to all  properties,  books,
accounts,  records,  contracts,  and  documents  of or relating to  Corporation.
Selling  Parties  will  furnish  or  cause  to be  furnished  to  Buyer  and its
representatives all data and information concerning the business,  finances, and
properties of Corporation that may reasonably be requested.

<PAGE>

         4.2.  Nothing  in this  Agreement  will  obligate  Selling  Parties  to
disclose any classified  information or provide any access to representatives of
Buyer prohibited or not authorized by applicable governmental authority.

         4.3. Corporation will carry on its respective businesses and activities
diligently and in  substantially  the same manner as they  previously  have been
carried out and will not institute any unusual or novel methods of  manufacture,
purchase, sale, lease, management, accounting, or operation that vary materially
from those methods used by Corporation as of the date of this Agreement.

         4.4.  Corporation will use  commercially  reasonable  efforts,  without
making any commitments on behalf of Buyer,  to preserve its respective  business
organizations  intact; to keep available to Corporation its present officers and
employees; and to preserve its present relationships with suppliers,  customers,
and others having business relationships with them.

         4.5.  Corporation  will not (1) amend its articles of  incorporation or
bylaws;  (2) issue any  shares of its  capital  stock;  (3) issue or create  any
warrants, obligations,  subscriptions, options, convertible securities, or other
commitments  under which any additional shares of its capital stock of any class
might  be  directly  or  indirectly  authorized,  issued,  or  transferred  from
treasury; or (4) agree to do any of the acts listed above.

         4.6. Corporation will continue to carry its existing insurance, subject
to variations in amounts required by the ordinary  operations of its businesses.
At the request of Buyer and at Buyer's  sole  expense,  the amount of  insurance
against  fire  and  other  casualties  that,  at the  date  of  this  Agreement,
Corporation  carries on any of its  properties  or in respect of its  operations
will be increased by the amount or amounts Buyer will specify.

         4.7. Other than in the ordinary  course of business,  Corporation  will
not,  or will not agree to:  (1) make any change in  compensation  payable or to
become payable, to any officer,  employee,  sales agent, or representative;  (2)
make any change in benefits  payable to any officer,  employee,  sales agent, or
representative  under any bonus or pension plan or other contract or commitment;
or (3) modify any collective  bargaining  agreement to which it is a party or by
which it may be bound.

<PAGE>

         4.8.  Corporation  will not or will not  agree to do,  without  Buyer's
consent, any of the following:

                  4.8.1 Enter into any contract,  commitment, or transaction not
in the usual and ordinary course of its business;

                  4.8.2 Enter into any contract,  commitment,  or transaction in
the usual  and  ordinary  course  of  business  involving  an  amount  exceeding
$10,000.00, individually, or $50,000.00 in the aggregate;

                  4.8.3 Make any capital  expenditures  in excess of  $10,000.00
for any single item or $50,000.00 in the aggregate,  or enter into any leases of
capital  equipment or property  under which the annual lease charge is in excess
of $100,000.00; or

                  4.8.4 Sell or dispose of any  capital  assets  with a net book
value exceeding $10,000.00, individually, or $50,000.00 in the aggregate.

         4.9. Corporation will not:

                  4.9.1  Declare,  set aside,  or pay any  dividend  or make any
distribution in respect of its capital stock;

                  4.9.2 Directly or indirectly  purchase,  redeem,  or otherwise
acquire any shares of its capital stock; or

                  4.9.3 Enter into any agreement  obligating it to do any of the
foregoing prohibited acts.

         4.10.  Other than in the ordinary course of business,  Corporation will
not, or will not agree to, without Buyer's prior consent: (1) pay any obligation
or liability, fixed or contingent,  other than current liabilities; (2) waive or
compromise any right or claim;  or (3) cancel,  without full payment,  any note,
loan, or other obligation owed to Corporation.

         4.11.  Corporation  will  not,  or will not agree  to,  modify,  amend,
cancel,  or terminate any of its existing  contracts or agreements except in the
ordinary course of business.

<PAGE>

         4.12. As soon as reasonably  practical after the execution and delivery
of this  Agreement,  Selling  Parties  will  obtain the  written  consent of the
persons required to consent to any of the items herein and will furnish to Buyer
executed copies of those consents.

         4.13. Buyer will exercise commercially reasonable efforts, and promptly
execute  and  deliver  any  documents  and  instruments  that may be  reasonably
required,  to assist  Selling  Parties  in  obtaining  such  consents  provided,
however,  that Buyer will not be  obligated  under this  Section to execute  any
guaranty,  assumption of liability, or other document or instrument requiring it
to assume obligations not contemplated by this Agreement.

         4.14. At the written  request of Buyer,  Corporation  will document and
describe any of its trade secrets,  processes,  or business procedures specified
by Buyer, in form and content satisfactory to Buyer.

         4.15. All warranties of Selling Parties set forth in this Agreement and
in any  written  statements  delivered  to Buyer by Selling  Parties  under this
Agreement  will also be true and correct on the Closing  Date as if made on that
date.

5. Conditions precedent to Buyer's performance:

         5.1. At the Closing,  Majority  Shareholder  shall deliver to Buyer the
following  instruments,  in form and  substance  satisfactory  to Buyer  and its
counsel:

                  5.1.1 A certificate or certificates representing Shares issued
in the name of Majority  Shareholder,  duly endorsed by Majority Shareholder for
transfer or accompanied by an assignment of the Shares duly executed by Majority
Shareholder.  Majority  Shareholder will collect and arrange for the transfer of
all remaining  outstanding Shares held by the other Shareholders.  On submission
of the certificate or certificates to Corporation for transfer, Corporation will
issue to Buyer a certificate or certificates  representing the Shares, issued in
Buyer's  name.  For any  certificates  that are  determined  to be lost, a "Lost
Certificate  Affidavit",  satisfactory  to the Buyer,  will be provided that has
been  duly  executed  by  the  appropriate  parties.  If  any  Shares  (or  Lost
Certificate  Affidavits) of the other Shareholders are not delivered as provided

<PAGE>

in this Section, then the stock of the Parent to be issued in exchange for those
Shares will be held back by Parent  until such time as the Shares are  delivered
as provided in this Section.

                  5.1.2  The stock  books,  stock  ledgers,  minute  books,  and
corporate seals of Corporation.

                  5.1.3  A   certificate   executed   by  officers  of  each  of
Corporation and Majority  Shareholder (the "Officers  Certificates"),  dated the
Closing Date, certifying that their respective representations and warranties in
this  Agreement  are true and  correct  on the  Closing  Date,  as  though  each
representation  and warranty had been made on that date and certifying,  in such
detail as Buyer may reasonably  request,  that the conditions  specified  herein
have been fulfilled.

                  5.1.4 Buyer will have  received  certificate  of good standing
certificate  for the  State of  Virginia  for  Corporation  and a good  standing
certificate from the Cayman Islands for Majority  Shareholder dated as of a date
not more than (30) days  following  the Closing date. In the event that Majority
Shareholder is not in good standing  pursuant to the corporat laws of the Cayman
Islands, all steps will be taken to bring the company into good standing with 30
days following the Closing date.

         5.2.  The  obligations  of Buyer to  purchase  the  shares  under  this
Agreement are subject to the satisfaction,  at or before the Closing, of all the
conditions  set out herein.  Buyer may waive any or all of these  conditions  in
whole or in part without prior notice; provided, however, that no such waiver of
a  condition  will  constitute  a waiver by Buyer of any of its other  rights or
remedies,  at law or in equity,  if Majority  Shareholder or Corporation  are in
default of any of their  representations,  warranties,  or covenants  under this
Agreement.

         5.3. Except as otherwise permitted by this Agreement, all warranties by
each of the Selling Parties in this Agreement,  or in any written statement that
will be delivered to Buyer by any of them under this Agreement,  must be true at
Closing as though made at that time.

         5.4. Selling Parties must have performed,  satisfied, and complied with
all  covenants,  agreements,  and  conditions  required by this  Agreement to be
performed or complied with by them, or any of them, by the Closing Date.

<PAGE>

         5.5. During the period from the most recent financial  statement to the
Closing  Date,  there  will not have  been any  material  adverse  change in the
financial condition or the results of operations of Corporation, and Corporation
will not have  sustained  any insured or uninsured  loss or damage to its assets
that materially affects its ability to conduct a material part of its business.

         5.6.  No  action,   suit,  or  proceeding   before  any  court  or  any
governmental   body  or  authority,   pertaining  to  the  Transactions  or  the
consummation  thereof,  will have been instituted or threatened on or before the
Closing Date.

         5.7.  Buyer  will have  received  from  Corporation's  chief  financial
officer a letter, dated the Closing Date, stating that on the basis of a limited
review (not an audit) of the latest available accounting records of Corporation,
consultations   with  other   responsible   officers  of  Corporation  and  with
Shareholders,  and other pertinent inquiries that he may deem necessary,  he has
no knowledge or reason to suspect that during the period from the latest audited
financial  statement(s)  to a specified  date not more than five  business  days
before the Closing  Date,  there was any change in the  financial  condition  or
results of operations of  Corporation,  except changes  incurred in the ordinary
and usual course of it business during that period that in the aggregate are not
materially adverse, and any other changes contemplated by this Agreement.

         5.8. The execution and delivery of this  Agreement by  Corporation  and
Majority  Shareholder,  and the  performance of their  covenants and obligations
under it, will have been duly authorized by all necessary  corporate action, and
Buyer and Parent will have received copies of all resolutions pertaining to that
authorization,  certified  respectively  by the secretary of Corporation and the
secretary of Majority Shareholder.

         5.9.  All  necessary  agreements  and  consents  of any  parties to the
consummation of the  Transactions  contemplated by this Agreement,  or otherwise
pertaining  to the  matters  covered by it,  will have been  obtained by Selling
Parties and delivered to Buyer.

         5.10.  The  form  and  substance  of  all  certificates,   instruments,
opinions,  and other  documents  delivered to Buyer under this Agreement will be
satisfactory in all reasonable respects to Buyer and its counsel.

6. Conditions precedent to Selling Parties's performance:

<PAGE>

         6.1. The obligations of Majority  Shareholder and the Corporation under
this Agreement are subject to the  satisfaction,  at or before the Closing Date,
of all the following  conditions.  Majority  Shareholder and the Corporation may
waive any or all of these  conditions  in whole or in part without prior notice,
provided,  however,  that no such waiver of a condition will constitute a waiver
by  Majority  Shareholder  or the  Corporation  of any of its  other  rights  or
remedies, at law or in equity, if Parent or Buyer should be in default of any of
their representations, warranties, or covenants under this Agreement.

         6.2. All  representations  and warranties by Buyer and Parent contained
in this  Agreement  or in any written  statement  delivered  by Buyer and Parent
under this  Agreement  must be true on and as of the Closing Date as though such
representations and warranties were made on and as of that date.

         6.3.  Buyer must have  performed  and complied  with all  covenants and
agreements and satisfied all conditions that it is required by this Agreement to
perform, comply with, or satisfy before or at the Closing Date.

         6.4.  The board of  directors  of Buyer will have duly  authorized  and
approved the execution and delivery of this  Agreement and all corporate  action
necessary or proper to fulfill  Buyer's  obligations to be performed  under this
Agreement on or before the Closing Date.

         6.5.  No  action,   suit,  or  proceeding   before  any  court  or  any
governmental   body  or  authority,   pertaining  to  the  Transactions  or  the
consummation  thereof,  will have been instituted or threatened on or before the
Closing Date.

         6.6. The closing of the Transactions (the "Closing") will take place at
the offices of Buyer,  at 10:00 a.m.  local time,  on January 7, 2005 or at such
other  time and place as the  parties  may  agree to in  writing  (the  "Closing
Date").

         6.7. At the Closing, subject to the provisions of Section 5.1.1 hereof,
Buyer must  deliver,  in  accordance  with  Schedule 2.2 and at the direction of
Majority Shareholder, 12,500,000 shares of Parent Common Stock.

<PAGE>

         6.8.  No  action,   suit,  or  proceeding   before  any  court  or  any
governmental   body  or  authority,   pertaining  to  the  Transactions  or  the
consummation  thereof,  will have been instituted or threatened on or before the
Closing Date.

         6.9.  Selling  Parties  will have  received  from the  chief  financial
officer of Parent, a letter,  dated the Closing Date,  stating that on the basis
of a limited review (not an audit) of the latest available accounting records of
Parent,  consultations  with other  responsible  officers  of Parent , and other
pertinent inquiries that he may deem necessary, he has no knowledge or reason to
suspect that during the period from the latest audited financial statement(s) to
a specified date not more than five business days before the Closing Date, there
was any change in the  financial  condition or results of  operations of Parent,
except  changes  incurred in the ordinary  and usual course of their  respective
businesses during that period that in the aggregate are not materially  adverse,
and any other changes contemplated by this Agreement.

         6.10.  All  necessary  agreements  and  consents  of any parties to the
consummation of the Transactions, or otherwise pertaining to the matters covered
by it, will have been obtained by Buyer and delivered to Selling Parties.

         6.11.  The  form  and  substance  of  all  certificates,   instruments,
opinions,  and other documents delivered to Selling Parties under this Agreement
will be  satisfactory  in all  reasonable  respects  to Selling  Parties and its
counsel.

         6.12.  There  shall  have  been no  material  adverse  change in either
Buyer's and/or Parent's business,  condition,  assets, liabilities,  operations,
financial  performance,  net  income or  prospects  (or in any aspect or portion
thereof) since September 30, 2004.

7. Majority  Shareholder  will  indemnify,  defend,  and hold harmless Buyer and
Parent  against  and in respect of claims,  demands,  losses,  costs,  expenses,
obligations,  liabilities,  damages,  recoveries,  and  deficiencies,  including
interest,  penalties, and reasonable attorney fees, that Buyer and/or Parent may
incur or  suffer,  which  arise,  result  from,  or relate to any  breach of, or
failure by Selling Parties to perform, any of their representations, warranties,
covenants, or agreements in this Agreement or in any schedule,  certificate,  or
other  instrument  furnished or to be furnished  by Selling  Parties  under this
Agreement.  Majority  Shareholder's  liability  under  this  section  will  not,

<PAGE>

however,  exceed the aggregate amount of $1,000,000.00.  In computing the amount
to be paid by Majority Shareholder under its indemnity  obligations,  there will
be  deducted an amount  equal to any tax  benefits  actually  received by Buyer,
taking into account the income tax  treatment of the receipt of these  payments.
This  indemnity  will be Buyer's and  Parent's  sole remedy  against the Selling
Parties for any claims described in this Section or under this Agreement.

         7.1. Buyer will promptly notify  Majority  Shareholder of the existence
of  any  claim,  demand,  or  other  matter  to  which  Majority   Shareholder's
indemnification   obligations   would  apply  and  will  give  it  a  reasonable
opportunity  to defend the same at its own expense  and with  counsel of its own
selection;  provided  that  Buyer  will at all  times  also  have  the  right to
participate  fully in the defense at its own expense.  If Majority  Shareholder,
within a reasonable time after this notice, fails to defend, Buyer will have the
right, but not the obligation, to undertake the defense of, and to compromise or
settle (exercising  reasonable business judgment),  the claim or other matter on
behalf, for the account, and at the risk, of Majority Shareholder.  If the claim
is one that  cannot by its nature be  defended  solely by  Majority  Shareholder
(including any federal or state tax  proceeding),  Buyer will make available all
information and assistance that Majority Shareholder may reasonably request.

         7.2. Any indemnity  claim may be paid by Majority  Shareholder,  at its
option,  by an assignment of Shares of Parent's  Stock (valued at the greater of
the  current  share  price  or the  share  price  on the  Closing  Date) or by a
forfeiture  of options or warrants  granted  hereunder  (valued at the amount by
which the  greater  of the  current  share  price or the  share  price as of the
Closing Date exceeds the option price for such Shares).

         7.3. Threshold for  Indemnification by Majority  Shareholder.  Majority
Shareholder shall not be required to make any  indemnification  payment pursuant
to this Section 7 until such time as the total amount of all damages  (including
the damages arising from such claim and all other damages arising from any other
claims) that have been directly or indirectly  suffered or insured by any one or
more of the  indemnitees,  or to which any one or more of the indemnitees has or
have otherwise become subject, exceeds $50,000 in the aggregate. At such time as
the  total  amount  of  such  damages  exceeds  $50,000  in the  aggregate,  the

<PAGE>

indemnitees shall be entitled to be indemnified  against the full amount of such
damages (and not merely the portion of such damages exceeding $50,000).

         7.4  Unless  Parent  or  Buyer  otherwise  consents  in  writing,   the
Shareholder  Representative shall serve as the sole and exclusive representative
of Majority Shareholder with respect to any claim for indemnification brought by
Parent or Buyer under this  Section 7 and with  respect to any issue that arises
in respect of this  Section  7.  Majority  Shareholder  hereby  agrees  that the
Shareholder  Representative  shall have the power to take any action in order to
contest,  defend and settle  each such  claim for  indemnification  on behalf of
Majority  Shareholder and any action by the Shareholder  Representative shall be
final and binding on Majority Shareholder.

8. Majority Shareholder agrees not to divulge, communicate, use to the detriment
of Buyer or for the  benefit of any other  person or  persons,  or misuse in any
way, any  confidential  information or trade secrets of  Corporation,  including
personnel  information,  secret processes,  know-how,  customer lists,  recipes,
formulas, or other technical data. Majority Shareholder  acknowledges and agrees
that any  information  or data it has acquired on any of these  matters or items
was received in confidence and as a fiduciary of Corporation.

9. Buyer and Parent  will  jointly and  severally  indemnify  and hold  harmless
Majority  Shareholder  against,  and in respect of,  claims,  losses,  expenses,
costs,  obligations,  and  liabilities  it may  incur by reason  of  Buyer's  or
Parent's  breach of or  failure to perform  any of its  warranties,  guaranties,
commitments, or covenants in this Agreement, or by reason of any act or omission
of Buyer or Parent, or any of its successors or assigns, after the Closing Date,
that  constitutes  a breach or  default  under,  or a failure  to  perform,  any
obligation,  duty,  or liability of any of Majority  Shareholder  under any loan
agreement,  lease, contract, order, or other agreement to which it is a party or
by which it is bound at the  Closing,  but only to the extent to which  Buyer or
Parent expressly assumes these  obligations,  duties, and liabilities under this
Agreement.  This  indemnity will be Majority  Shareholder's  sole remedy against
Buyer  and  Parent  for any  claims  described  in this  Section  or under  this
Agreement.

         9.1. Majority  Shareholder will promptly notify Buyer and Parent of the
existence  of any claim,  demand,  or other  matter to which Buyer and  Parent's
indemnification   obligations   would  apply  and  will  give  it  a  reasonable

<PAGE>

opportunity  to defend the same at its own expense  and with  counsel of its own
selection;  provided that Majority  Shareholder  will at all times also have the
right to  participate  fully in the  defense  at its own  expense.  If Buyer and
Parent,  within a reasonable  time after this notice,  fail to defend,  Majority
Shareholder  will have the  right,  but not the  obligation,  to  undertake  the
defense  of,  and  to  compromise  or  settle  (exercising  reasonable  business
judgment),  the claim or other  matter on behalf,  for the  account,  and at the
risk,  of Buyer and  Parent.  If the claim is one that  cannot by its  nature be
defended  solely  by Buyer  and  Parent  (including  any  federal  or state  tax
proceeding),  Majority  Shareholder  will make  available  all  information  and
assistance that Buyer and Parent may reasonably request.

         9.2.  Threshold for  Indemnification by the Buyer and Parent. The Buyer
and Parent shall not be required to make any indemnification payment pursuant to
Section 9.1 until such time as the total  amount of all damages  (including  the
damages  arising  from the claim and all other  damages  arising  from any other
claims) that have been  directly or  indirectly  suffered or insured by Majority
Shareholder,  or to which Majority  Shareholder  has otherwise  become  subject,
exceeds  $50,000  in the  aggregate.  At such time as the  total  amount of such
damages exceeds $50,000 in the aggregate, Majority Shareholder shall be entitled
to be  indemnified  against the full amount of such  damages (and not merely the
portion of such damages exceeding $50,000).

10.  All  notices  to third  parties  and all  other  publicity  concerning  the
Transactions  will be jointly  planned and  coordinated by and between Buyer and
Majority  Shareholder  with the  exception  being that Parent will have full and
unencumbered  authority to make any  disclosures,  including  press releases and
public  statements  which are  necessary  or  advisable  to comply  with any SEC
regulations  or other  relevant  legal  requirements  or judicial or legislative
order or  proceeding.  Outside of any such required  disclosures,  no party will
take any action in this regard  without the prior written  approval of the other
pareties hereto; however, this approval will not be unreasonably withheld.

11.  Majority  Shareholder  shall be  solely  responsible  for any and all fees,
commissions,  costs or  compensation  due to any broker or finder  and  Majority
Shareholder  shall  indemnify and hold harmless  Parent,  Buyer and  Corporation
against any loss, liability,  damage, cost, claim, or expense incurred by reason
of any brokerage commission or finder's fee alleged to be payable because of any

<PAGE>

act, omission, agreement, or statement of Majority Shareholder. Buyer and Parent
represent and warrant that no commissions,  costs or compensation are due to any
broker or finder engaged by them.

12.  The  parties  covenant  and  agree  that the  terms of this  Agreement  are
sensitive  and shall  remain  confidential  and Majority  Shareholder  expressly
agrees  not to  divulge  the terms of the  Agreement  herein or any  information
relating to  compensation  or any other matters  concerning  the terms of Buyers
acquisition and payments to the Corporation to any other person or party without
the express written consent of Buyer.

13. FEDERAL SECURITIES ACT REPRESENTATIONS

         Majority   Shareholder   represents   and  warrants  that  all  of  the
representations  and warranties in this Section are true and correct at the date
of this Agreement,  and agrees that such  representations  and warranties  shall
survive perpetually.

         13.1 Compliance with Law.  Majority  Shareholder  acknowledges that the
shares of Parent Common Stock to be delivered to Majority  Shareholder  pursuant
to this Agreement have not been and will not be registered  under the Securities
Act  of  1933,  as  amended  (the  "1933  Act"),  (except  as  provided  in  the
Registration  Rights  Agreement)  and that such shares may not be resold without
compliance with the 1933 Act. The Parent Common Stock to be acquired by Majority
Shareholder  pursuant to this  Agreement is being  acquired  solely for Majority
Shareholder's  own account,  for  investment  purposes only, and with no present
intention of  distributing,  selling or otherwise  disposing of it in connection
with a distribution,  except as related to Majority Shareholder's  intentions to
award  or  provide  future  incentives  to  former  directors,   management  and
consultants.  Except as noted here, Majority Shareholder covenants, warrants and
represents  that none of the shares of Parent  Common  Stock  issued to Majority
Shareholder will be offered, sold, assigned, pledged, hypothecated,  transferred
or otherwise disposed of except after full compliance with all of the applicable
provisions of the 1933 Act and the rules and  regulations  of the SEC including,
if required  by Parent,  the  obtaining  of an opinion of counsel to Parent that
such  disposition is exempt from  registration  under the 1933 Act and any other
applicable securities laws.

<PAGE>

         13.2 Economic Risk; Sophistication;  Reg D. Majority Shareholder hereby
represents to Parent that Majority Shareholder is able to bear the economic risk
of an  investment  in the Parent  Common  Stock to be acquired  pursuant to this
Agreement and can afford to sustain a total loss of such investment and has such
knowledge  and  experience  in  financial  and business  matters  that  Majority
Shareholder  is capable  of  evaluating  the  merits  and risks of the  proposed
investment in such common stock.  Majority  Shareholder  hereby  represents  and
warrants to Parent that  Majority  Shareholder  is an  "accredited  investor" as
defined in Regulation D under the 1933 Act.  Majority  Shareholder  has not been
organized for the purpose of acquiring Parent Common Stock. Majority Shareholder
hereby  further   confirms  that  Majority   Shareholder  has  had  an  adequate
opportunity  to ask  questions  and receive  answers from the officers of Parent
concerning any and all matters  relating to the  transactions  described  herein
including, without limitation, the background and experience of the officers and
directors  of  Parent,   the  business  of  Parent,  any  plans  for  additional
acquisitions,  and any other matters Majority Shareholder considers appropriate.
Majority  Shareholder has asked any and all questions of the nature described in
the  preceding  sentence,  and all  questions  have been  answered  to  Majority
Shareholder's  satisfaction.  Majority Shareholder  understands that the sale of
shares of Parent Common Stock to Majority Shareholder pursuant to this Agreement
is intended to be a "private  placement" exempt from registration under the 1933
Act by virtue  of  Regulation  D thereof  and/or  other  applicable  exceptions.
Majority  Shareholder  represents  and warrants  that,  as of the Closing  Date,
assuming the truth of the  representations and warranties made herein by each of
the parties thereto,  Majority Shareholder has taken no action without the prior
written  consent of the other parties that would cause the sale of Parent Common
Stock  pursuant  to  this  Agreement  to  become  subject  to  the  registration
requirements of the 1933 Act.

         13.3 SEC Filings.  Majority  Shareholder  hereby confirms that Majority
Shareholder  has received a copy of Parent's  Form SB-2  Registration  Statement
which was declared  effective by the SEC on August 13, 2004, and Form 10-QSB for
the period ended September 30, 2004, has reviewed them carefully, as well as the
other filings by Parent on the SEC's website at  www.sec.gov,  and has discussed
them and the transactions contemplated by this Agreement, to the extent Majority
Shareholder desires to do so, with Majority Shareholder's attorney,  accountant,
tax, financial or other advisor.

<PAGE>

         13.4 Purchase Entirely for Own Account. Except as may occur as noted in
13.1  above,  the  shares of Parent  Common  Stock to be  received  by  Majority
Shareholder   from  Parent  will  be  acquired  for   investment   for  Majority
Shareholder's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof in violation of applicable securities
laws, and Majority Shareholder has no present intention of selling, granting any
participation  in or  otherwise  distributing  the same in a manner  that  would
require  registration under the 1933 Act. Majority Shareholder does not have any
contract,  undertaking,  agreement  or  arrangement  with  any  person  to sell,
transfer or grant  participations  to any third  person,  with respect to any of
Parent's common stock, except as may ensue as noted in Section 13.1 above.

14. Each party will pay all costs and expenses  incurred or to be incurred by it
in negotiating  and preparing this Agreement and in closing and carrying out the
Transactions contemplated by this Agreement.

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

16. Unless the context clearly requires  otherwise;  plural and singular numbers
will each be  considered  to include the other;  the  masculine,  feminine,  and
neuter genders will each be considered to include the others;  "shall,"  "will,"
"must," "agree," and "covenants" are each mandatory;  "may" is permissive;  "or"
is not exclusive; and "includes" and "including" are not limiting.

17.  This  Agreement  constitutes  the  entire  agreement  between  the  parties
pertaining to the subject  matter  contained in it and  supersedes all prior and
contemporaneous agreements,  representations, and understandings of the parties.
No  supplement,  modification,  or amendment of this  Agreement  will be binding
unless  executed  in  writing  by  all  the  parties.  No  waiver  of any of the
provisions of this  Agreement will  constitute a waiver of any other  provision,
whether or not similar,  nor will any waiver constitute a continuing  waiver. No
waiver  will be binding  unless  executed  in  writing  by the party  making the
waiver.

<PAGE>

18. This Agreement may be executed  simultaneously in one or more  counterparts,
each of which will be  considered  an original,  but all of which  together will
constitute one and the same instrument.

19. Nothing in this Agreement, whether express or implied, is intended to confer
any rights or remedies under or by reason of this Agreement on any persons other
than the parties to it and their respective  successors and assigns.  Nothing in
this  Agreement is intended to relieve or discharge the  obligation or liability
of any third  persons to any party to this  Agreement.  No  provision  gives any
third  persons  any right of  subrogation  or action  against  any party to this
Agreement.

20.  This  Agreement  will be binding  on, and will inure to the benefit of, the
parties to it and their respective heirs, legal representatives, successors, and
assigns.

21. Except for claims for specific  performance or injunctive relief pursuant to
Section 22 hereof, any controversy or claim arising out of, or relating to, this
Agreement, or the making,  performance, or interpretation of it, will be settled
by binding  arbitration  in Los Angeles,  California if initiated by the Selling
Parties, and in Fairfax County,  Virginia,  if initiated by the Buyer or Parent,
under the commercial  arbitration rules of the American Arbitration  Association
then existing, and judgment on the arbitration award may be entered in any court
having jurisdiction over the subject matter of the controversy. Arbitrators will
be persons  experienced in negotiating,  making,  and  consummating  acquisition
agreements.  In such proceeding the parties will have all rights to do discovery
as provided in the Code of Civil Procedure relating to discovery in normal court
actions in such state.

22. Each party's  obligation under this Agreement is unique. If any party should
default in its obligations under this Agreement,  both parties  acknowledge that
it  would  be  extremely   impracticable  to  measure  the  resulting   damages;
accordingly,  the  non-defaulting  party or  parties,  in  addition to any other
available rights or remedies,  may sue in equity for specific  performance,  and
the parties  each  expressly  waive the defense that a remedy in damages will be
adequate.  Despite  any breach or default by any of the  parties of any of their
respective  representations,  warranties,  covenants,  or agreements  under this
Agreement,  if the purchase and sale  contemplated  by it will be consummated at
the Closing,  each of the parties  waives any rights that it may have to rescind

<PAGE>

this Agreement or the Transaction  consummated by it;  provided,  however,  that
this  waiver  will not  affect any other  rights or  remedies  available  to the
parties under this Agreement or under the law.

23. If any legal action or any  arbitration  or other  proceeding is brought for
the enforcement of this  Agreement,  or because of an alleged  dispute,  breach,
default, or  misrepresentation  in connection with any of the provisions of this
Agreement,  the  successful or  prevailing  party or parties will be entitled to
recover  reasonable  attorney's  fees and other costs incurred in that action or
proceeding, in addition to any other relief to which it or they may be entitled.

24.  Subject  to the  provisions  herein  relating  to the  postponement  of the
Closing,  neither party may on or before the Closing  terminate this  Agreement,
without  liability to any other for any reason other than war,  natural disaster
or any other unusual  external  factors or events  totally beyond the control of
either  party,  including  any bona fide  action or  proceeding  pending  on the
Closing Date that could result in an unfavorable judgment, decree, or order that
would  prevent or make  unlawful  the  performance  of this  Agreement or if any
agency of the federal or of any state  government  has objected at or before the
Closing  Date to this  acquisition  or to any  other  action  required  by or in
connection with this Agreement;

25. If either Buyer or Selling Parties  materially default in the due and timely
performance of any of their warranties or agreements  under this Agreement,  the
non-defaulting  party  or  parties  may on  the  Closing  Date  give  notice  of
termination of this Agreement,  in the manner provided  herein.  The notice will
specify with particularity the default or defaults on which the notice is based.
The termination  will be effective five days after the Closing Date,  unless the
specified  default or defaults have been cured on or before this  effective date
for termination.

26. All covenants, and agreements of the parties contained in this Agreement, or
in any instrument,  certificate,  opinion,  or other writing provided for in it,
will survive the Closing.

27.  All  notices,  requests,  demands,  and  other  communications  under  this
Agreement  must be in writing and will be  considered to have been duly given on
the date of service if served  personally  on the party to whom  notice is to be
given,  or on the second day after mailing if mailed to the party to whom notice

<PAGE>

is to be given, by first class mail,  registered or certified,  postage prepaid,
and properly addressed as follows:

       To Selling Parties at: Charles Smith, Care of Physician Informatics, Inc.
                              Corporate Park III
                              580 Howard Avenue
                              Somerset, New Jersey 08873

       To Parent or Buyer at: Michael Manahan
                              PracticeXpert, Inc.
                              10833 Washington Blvd
                              Culver City, CA 90232

         Any party may change its address for purposes of this section by giving
the other  parties  written  notice of the new  address  in the manner set forth
above.

28. This  Agreement  will be construed in accordance  with, and governed by, the
laws of the State of  California  as applied to contracts  that are executed and
performed entirely in California without regard to its principles of conflict of
laws.

29. If any provision of this Agreement is held invalid or  unenforceable  by any
court of final  jurisdiction,  it is the  intent of the  parties  that all other
provisions  of this  Agreement be construed to remain fully valid,  enforceable,
and binding on the parties.

<PAGE>

         IN WITNESS WHEREOF, the parties to this Agreement have duly executed it
on the day and year first above written.

                                    BUYER: PRACTICE XPERT SERVICES, CORP.

                                    By: /s/ Jonathan Doctor
                                        ----------------------------------------
                                        Jonathan Doctor, President/CEO

                                    PARE PRACTICEXPERT, INC.

                                    By: /s/ Jonathan Doctor
                                        ----------------------------------------
                                        Jonathan Doctor, President/CEO

                                    CORPORATION: PHYSICIAN INFORMATICS, INC.

                                    By: /s/ Charles Smith
                                        ----------------------------------------
                                        Charles Smith, Chairman/CEO

                                    MAJORITY SHAREHOLDER: PI (CAYMAN), LIMITED

                                    By: /s/ PI (Cayman), Limited
                                        ----------------------------------------
                                        Name/title

                                    SHAREHOLDER REPRESENTATIVE: CHARLES SMITH

                                    By: /s/ Charles Smith
                                        ----------------------------------------
                                        CHARLES SMITH

<PAGE>

                               INDEX TO SCHEDULES

--------------------------------------------------------------------------------
                      Schedule Description                       Schedule Number
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Components of Cash Flow From Operations                              1.3.2.2
--------------------------------------------------------------------------------
$2,000,000 Note Payable to Citibank                                  1.3.3.1
--------------------------------------------------------------------------------
$4,000,000 Note Payable to PI (Cayman), Limited                      1.3.3.2
--------------------------------------------------------------------------------
Trade Payable of Corporation                                         1.3.3.3
--------------------------------------------------------------------------------
Secured Debt of Parent                                                1.3.5
--------------------------------------------------------------------------------
Form of Warrant to PI Cayman                                         1.3.8.2
--------------------------------------------------------------------------------
Restrictions and Rights Agreement                                    1.3.10
--------------------------------------------------------------------------------
Authorized Capital Stock of Corporation: List of Shareholders          2.2
--------------------------------------------------------------------------------
Financial Statements and Tax Returns of Corporation                    2.4
--------------------------------------------------------------------------------
Dividends of Corporation                                              2.6.7
--------------------------------------------------------------------------------
Increases in Compensation                                             2.6.8
--------------------------------------------------------------------------------
Real Property of Corporation                                          2.11
--------------------------------------------------------------------------------
Tangible Personal Property of Corporation                             2.12
--------------------------------------------------------------------------------
Third Party Interests in Assets of Company                            2.14
--------------------------------------------------------------------------------
Current Customers List                                                2.16
--------------------------------------------------------------------------------
Insurance Policies                                                    2.17
--------------------------------------------------------------------------------
Contracts Outside Normal Scope of Business                            2.18
--------------------------------------------------------------------------------
Legal Matters                                                         2.20
--------------------------------------------------------------------------------
Required Consents                                                     2.21
--------------------------------------------------------------------------------
Related Party's Ownership in Competitors or Affiliates                2.23
--------------------------------------------------------------------------------
Officers, Directors, Employees, Agents and Representatives            2.25
--------------------------------------------------------------------------------
Corporation's Material Employment Contracts, Etc.                     2.26
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
Person's Holding Corporation's Power of Attorney; Banks, Etc.         2.27
--------------------------------------------------------------------------------
List of Software Contracts                                           2.29.1
--------------------------------------------------------------------------------
Technical Documentation                                              2.30.1
--------------------------------------------------------------------------------
Exceptions to Technical Documentation                                2.30.2
--------------------------------------------------------------------------------
Software Licenses From Third Parties                                 2.31.1
--------------------------------------------------------------------------------
Software Royalty Obligations                                         2.31.2
--------------------------------------------------------------------------------
Transfers Of Ownership Interest                                      2.32.2
--------------------------------------------------------------------------------
Non-Conforming End User Software Contracts                         2.32.3 (a)
--------------------------------------------------------------------------------
Copies of Conforming Licenses and Sub-Licenses to Others           2.32.3 (b)
--------------------------------------------------------------------------------
Intellectual Property and Location                                   2.33.1
--------------------------------------------------------------------------------
Government Rights and Products of Government Contracts               2.33.9
--------------------------------------------------------------------------------
Material Contracts                                                    2.34
--------------------------------------------------------------------------------
Material Contracts Lost or Threatened                                2.34.1
--------------------------------------------------------------------------------
Non-Contravention; Consents                                           3.7.1
--------------------------------------------------------------------------------
Legal Proceedings                                                     3.8.1
--------------------------------------------------------------------------------
Potential Legal Proceedings                                           3.8.2
--------------------------------------------------------------------------------

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