Document:

<PAGE>

Exhibit 10.5      Asset Purchase Agreement dated August 8, 2005, by and among
                  ERF Wireless, Inc., a Nevada corporation, ERF Enterprise
                  Network Services, Inc., a Texas corporation, and SkyvueUSA
                  East Central Texas, Inc., a Texas corporation

                            ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (the "Agreement"), made and entered into as of
this 8th day of August, 2005, by and between the Buyer, as defined below, and
the Seller, as defined below.

As used in this Agreement, the term "Buyer" includes ERF Wireless, Inc., a
Nevada corporation ("Parent"), and ERF Enterprise Network Services, Inc., a
Texas corporation ("Subsidiary") a newly formed wholly owned subsidiary of
Parent created for the purposes of this Agreement.

As used in this Agreement, the term "Seller" means SkyvueUSA East Central Texas,
Inc., a Texas corporation.

                              W I T N E S S E T H:

WHEREAS, Seller presently operates a business engaged in designing, building and
supporting encrypted wireless networks for financial institutions and providing
fixed wireless broadband Internet solutions to commercial businesses and
residential customers (the "Business"); and

WHEREAS, Seller desires to sell substantially all of the assets and contracts of
the Business to Buyer, and Buyer desires to purchase such assets and contracts
from Seller, on the terms and subject to the conditions set forth herein. NOW,
THEREFORE, Buyer and Seller, in consideration of the mutual promises hereinafter
set forth, do hereby promise, and agree as follows:

ARTICLE ONE: ASSETS TO BE PURCHASED

1.1 Subject Assets. Upon the terms and subject to the conditions set forth in
this Agreement, Seller hereby sells to Subsidiary and Subsidiary hereby
purchases from Seller, at the Closing, all of Seller's right, title, and
interest in substantially all of the assets associated with the Business,
including the following:

                                       3

<PAGE>

         all inventories;

         all intellectual property (including but not limited to patents and
pending patent applications, copyrights, trade names, and trade marks, and all
other intellectual property);

         all assets acquired from Netzah Inc. and MoneyVue Financial, Inc.
including non-compete agreements;

         all rights to equipment, tower and office space leases;

         all ISP Subscriber Agreements, all Design Agreements, Equipment
Purchase Agreements, and Monitoring and Maintenance Agreements with banking
customers;

         the revenue sharing agreements with Taylor CNET, First National Bank of
Cameron, and City National Bank of Taylor;

         all accounts and notes receivable, all work in progress, and all other
contracts and agreements relating to the conduct of the Business;

         all distribution rights and intellectual property rights to the
CryptoVue System originally developed by Netzah, Inc.;

         all equipment and software;

         all legally assignable government permits, licenses and certifications
("Governmental Permits"); and

         all documents, files and records containing technical support and other
information pertaining to the operation of the Business.

All of the assets being purchased by Buyer as described in this Paragraph 1.1
are hereinafter referred to as the "Subject Assets."

Documentation that will be provided under the purchase will include copies of
the following books, records, manuals and other materials in any tangible form
to the extent relating to the Business and/or the Subject Assets: records
relating to customers that are parties to any contracts, records relating to
vendors, and all other books, records, files, correspondence, documents and
information owned by Seller relating to the Business that are currently in the
possession of the employees of the Business, however maintained or stored
(collectively, the "Records"), it being understood that the Seller may cause to
be deleted confidential information that does not relate to the Subject Assets
or the Business.

1.2 Excluded Assets. The Subject Assets shall not include the following (herein
referred to as the "Excluded Assets"):

         all cash, bank deposits and cash equivalents of Seller;

         all corporate minute books, stock transfer books and other document
relating to the organization, maintenance and existence of Sellers as a
corporation ("Corporate Documents");

         all rights of Seller pursuant to this Agreement, including the
consideration paid to Seller pursuant to this Agreement;

         all originals of personnel records and other records that Seller are
required by applicable law to retain in its possession;

         all tax refunds which Seller is due;

         all capital stock in Seller; and

         any other item specifically listed in Schedule 1.2.

                                       4

<PAGE>

1.3 Purchase Price; Payment of Purchase Price. In addition to the Assumed
Liabilities described below, the aggregate consideration for the Subject Assets
(the "Purchase Price") shall be the amount equal to: $600,000 (the "Initial
Payment") plus the "Earn out Payment" equal to the following: Four (4) times
Adjusted EBITDA of the Subsidiary for the period of Closing through December 31,
2005; plus Two (2) times Adjusted EBITDA of the Subsidiary for the calendar year
ending December 31, 2006; plus One (1) times Adjusted EBITDA of the Subsidiary
for the calendar year ending December 31, 2007. The Purchase Price shall be
subject to adjustment as set forth in Section 1.7 below as so adjusted.
Revenue relating to accounts receivables more than 90 days past due shall not be
treated as earned for purposes of calculating Adjusted EBITDA for the Earn out
Payment portion of the Purchase Price. Adjusted EBITDA shall be defined as
EBITDA, as defined by GAAP, less all capital expenditures and less all capital
investments mutually agreed to by Seller Representative and Parent and made by
the Parent to the Subsidiary during the Earn out Payment period; amortized over
the co-terminus period ending December 31, 2007. The failure of Parent to
provide $50,000 per month to Subsidiary in secured working capital loans, as
more fully described in Section 6.4.1, starting no later than fifteen days
following Closing and continuing for a total of five months will be considered
an event of default by Parent under this Agreement.

1.4 Payment Terms.

1.4.1 The Initial Payment will be payable to Seller by Buyer on the Closing date
as follows: (a) $125,000 cash at Closing (less $10,000 previously paid to Seller
pursuant to the Letter of Intent dated May 4, 2005, as an "exclusive dealing or
non-shop payment and $10,000 advance payable by Parent concurrently with the
execution of this Agreement), (b) $75,000 in cash paid in equal monthly
increments over a ninety day period following Closing. The first such payment of
$25,000 will be made one month following Closing, the second payment will be
made two months following Closing, and the final $25,000 payment will be made
three months following Closing; and (c) the execution of a $400,000 Promissory
Note ("Note") by Buyer secured by a pledge of Subsidiary's stock. Such Note
shall be in form and substance substantially as set for forth in Exhibit 1 and
having the following terms and other terms that may be mutually agreed to by the
parties: (i) the annual rate of interest on the unpaid portion of the Note shall
be 6% per annum; (ii) installment payments of accrued interest and principal
shall be made over 10 quarters, with the quarterly payments being in the amount
of $43,175.06 and the first payment due ninety days after Closing, and every
ninety days thereafter,; (iii) Buyer may prepay the Note at any time without
penalty; and (iv) in the event of default under the Note or under the material
terms or conditions of this Agreement which survive Closing, Seller may take
actions necessary to protect its interest, including the exercise of the
security interest as defined in the Pledge Agreement. Such Pledge Agreement
shall be in form and substance substantially as set forth in Exhibit 2. The
Buyer may elect to make the quarterly payments on the Note in cash or Freely
Tradable common stock of the Parent. Should the Buyer elect to pay the quarterly
payments in Freely Tradable common stock of the Parent, the Parent will
guarantee to the Seller the underlying value of the Parent common stock as of
the quarterly payment due date for a period of 60 days from the payment date
should Seller elect to sell the stock during this time period. "Freely Tradable
common stock" shall mean fully registered securities which are not subject to

                                       5

<PAGE>

any contractual, regulatory or other legal restrictions on their transfer, are
free and clear of all liens and encumbrances and are freely tradable to members
of the general public. $25,000 of the quarterly payments on the Note shall be
subject to offset by Buyer (if consented to by Seller Representative, such
consent not to be unreasonably withheld or delayed) to address any post-closing
Purchase Price adjustments and potential indemnification claims provided in
writing to Seller. The Parent shall be obligated to prepay the $400,000 Note in
the event that the Seller or its designated representatives causes to be closed
and made available to the Parent at least $1,000,000 in proceeds from the
Parent's securities offering pursuant to its Private Placement Memorandum,
("PPM"), dated June 25, 2005 or as hereafter modified. In the event that the
Seller or its designated representatives close less than $1,000,000 in funding
against Parent's PPM; then the Buyer will be obligated to prepay to Seller on
the Note $1.00 in cash for every $2.00 in funds received by Parent or its
designated representatives up to the full amount of the unpaid amount of the
Note.

1.4.2 With respect to the Earn out Payment, subsequent Annual Payments based on
multiples of Adjusted EBITDA performance shall be payable on the 1st of April
following the close of each calendar year for which payment is to be made (each
an "Annual Payment Date"). Each Annual Payment will be paid, at Parent's
election, either in cash or by issuance of the Parent's restricted common stock,
the number of shares of which would be calculated based on the average closing
price for the 60 trading days immediately preceding each respective Annual
Payment. Parent agrees to grant Seller piggyback registration rights in
connection with the restricted common stock issued to Seller and agrees to
provide its transfer agent with an opinion letter and instructions to remove the
restricted legend from Seller's shares in accordance with SEC Rule 144. Until
the final Annual Payment in Parent common stock associated with the Adjusted
EBITDA performance under this Agreement has been calculated and, if due, paid to
Seller on or before April 1, 2008, Parent agrees to place restrictions on the
Series A Preferred shareholders (or other Preferred shareholders having the
right to convert their shares of Preferred into multiple shares of common stock)
such that no Preferred shareholder may convert an amount of his Preferred stock,
on a quarterly basis, that would result in an amount of new common shares that
can then be sold in the marketplace that would represent more than 4.9% of the
then issued and outstanding common shares of Parent.

1.5 Assumed Liabilities; No Other Assumption of Liabilities. As partial
consideration for the Subject Assets, Subsidiary shall deliver to Seller at
Closing an Assignment and Assumption Agreement pursuant to which Subsidiary
shall assume and pay, perform or discharge, as appropriate, the liabilities and
obligations of Seller (the "Assumed Liabilities") (i) arising in connection with
the operation of the Business by the Subsidiary after the Closing date, (ii)
arising after the Closing date in connection with the performance by the
Subsidiary of the contracts and agreements associated with the Business assigned
to Subsidiary, including the ISP Subscriber Contracts, equipment and tower
leases, office lease and utilities in effect pertaining to the Business, the
Design, Equipment Purchase, Monitoring and Maintenance Agreements in existence
with banking customers, the revenue sharing agreements with Taylor CNET, First
National Bank of Cameron, and City National Bank of Taylor, and (iii) the
$25,000 promissory note with the Taylor Economic Development Corporation used to
purchase inventory and certain operating equipment as it becomes due. Subsidiary

                                       6

<PAGE>

shall not assume or be responsible for any such liabilities or obligations that
arise from breaches thereof or defaults by Seller prior to the Closing, all of
which liabilities and obligations shall constitute "Specified Retained
Liabilities" and all such liabilities shall either be retained by Seller or be
fully paid prior to Closing.

Except for the Assumed Liabilities, Buyer shall not assume or be obligated
under, or become liable for, any debt, liability, contract or obligation
whatsoever of Seller or the Business, and Seller shall be responsible for the
payment or performance and full discharge of all debts, liabilities, contracts
and obligations whatsoever of Seller, including those of the Business accruing
prior to the Closing and the Specified Retained Liabilities. In particular (and
by way only of example and not by way of limitation), Seller shall be and remain
solely responsible for, and shall timely pay or perform and discharge, all
debts, liabilities, contracts and obligations with respect to the Business other
than the Assumed Liabilities (collectively, together with those liabilities and
obligations described in Section 2.2 as constituting the same, "Specified
Retained Liabilities"): (i) all trade accounts payable and other accrued
expenses; (ii) any tax liability or obligation relating to transactions or
periods prior to and including the Closing Date (but excluding any sales, use,
transfer or other tax obligation resulting from the transactions contemplated by
this Agreement, which Subsidiary hereby agrees to be responsible for); (iii) any
liability or obligation to Seller's employees whatsoever, whether for salaries
and wages, sick pay, or any other employee benefit and whether relating to the
termination of their employment or otherwise arising, relating to periods prior
to and including the Closing; and (iv) any legal claim or any other liability or
obligation whatsoever incurred by Seller relating to the Business for periods or
occurrences prior to and including the Closing Date.

1.6 Allocation of Purchase Price. Seller and Buyer shall cooperate to determine
(in accordance with applicable U.S. Treasury regulations promulgated under
Section 1060 of the U.S. Internet Revenue Code, as amended, the allocation of
the Purchase Price and the liabilities of Seller (plus other relevant items)
among the Subject Assets as of the Closing Date. Such allocation shall be made
in a manner consistent with the fair market value of such assets. Each of the
parties will file all tax returns and information reports (including the IRS
Form 8594 and any disclosures that are required under Section 1060 of the
Internal Revenue Code) in a manner consistent with such allocation.

1.7  Adjustments to Purchase Price.

         (a)      The monthly note payment(s) portion of the Purchase Price
                  shall be subject to the following adjustments related to work
                  in process, which shall be reflected in the closing statements
                  to be executed and delivered by Buyer and Seller as
                  hereinafter provided: Any remaining net cash proceeds specific
                  to the Iberville Network Design contract following a
                  reconciliation of all cash received less expenses incurred or
                  accrued as related to such contract and an estimate prepared
                  by Seller reflecting remaining costs and expenses related to
                  any other work in process for which monies have been collected
                  prior to closing for which there are ongoing costs and
                  expenses.

                                       7

<PAGE>

         (b)      The Purchase Price shall be subject to the following
                  additional credits and adjustments (either as additions or
                  reductions to the Purchase Price, as the case may be), which
                  shall be reflected in the closing statements to be executed
                  and delivered by Buyer and Seller as hereinafter provided: Any
                  rents, prepaid items, taxes and other similar items with
                  respect to the Assumed Liabilities shall be prorated as of the
                  Closing.

ARTICLE TWO: CLOSING

2.1 Time and Place of Closing; Closing Deliveries. The closing of the purchase
and sale contemplated herein (the "Closing") shall take place at 10:00 a.m., on
Aug 5, 2005 at the offices of Parent, located at League City, Texas, or such
time and date as the parties may agree upon. The date of Closing is hereinafter
referred to as the "Closing Date."

At the Closing, Seller shall deliver to Buyer the documents, certificates,
agreements and instruments described in Section 2.2, and Buyer shall deliver to
Seller the documents, certificates, agreements and instruments described in
Section 2.3.

2.2 Conditions Precedent to Buyer's Obligation. The obligation of Buyer to
consummate the transactions contemplated herein is subject to the satisfaction
(or, in Buyer's sole discretion, written waiver thereof) as of the Closing of
the following conditions:

The representations and warranties of Seller made in this Agreement shall be
true and correct in all material respects at Closing.

No demand, action, suit, audit, investigation, review, claim or other legal or
administrative proceeding (collectively, a "Proceeding") by any nation or
government, any state or other political subdivision thereof, including any
governmental agency, department, commission, or instrumentality of the United
States, any State of the United States or any political subdivision thereof or,
any self-regulatory agency or authority (collectively, "Governmental Authority")
or other person shall have been instituted or threatened against Seller which
seeks to enjoin, restrain or prohibit, or which questions the validity or
legality of, the transactions contemplated hereby or which otherwise seeks to
affect or could reasonably be expected to affect the transactions contemplated
hereby.

Seller's shareholders shall have approved this Agreement and the transactions
contemplated thereby.

Seller shall have performed in all material respects its obligations described
in Section 5.1.

Seller shall have negotiated and closed a new contract (or a series of related
contracts) for the design, construction, and monitoring of an encrypted wireless
network with a financial institution at a cumulative contract value of not less
than $450,000 and has received an initial down payment of not less than $200,000
under such contract(s).

                                       8

<PAGE>

Seller, John Adrian Burns, and Tim Eisenman shall have executed and delivered,
subject to Closing, 3 year non-competition agreements limited to (i) encrypted
wireless networks and (ii) broadband wireless networks.

Seller shall also furnish to Buyer documentation of all assets within Subject
Assets acquired from Netzah Inc. and MoneyVue Financial, Inc., Seller will
furnish to Buyer a complete listing of such transferred assets in the form of
Exhibit 3, in form and substance satisfactory to Buyer.

Buyer shall have received from Seller all of the following:

A bill of sale including a complete listing of assets in the form of Exhibit 1,
in form and substance satisfactory to Buyer, duly executed by Seller
(collectively, the "Bill of Sale"), conveying to Buyer the Subject Assets free
and clear of all pledges, security interests, or other similar liens granted by
Seller and free and clear of all other adverse claims of any kind whatsoever
known by Seller (collectively, "Encumbrances"), except (i) encumbrances for
taxes, the payment of which is not delinquent, (ii) materialmen's,
warehousemen's, mechanic's or other Encumbrances arising by operation of law in
the ordinary course of business for sums not due and which do not materially
detract from the value of such assets or properties or materially impair the
operation of the Business, and (iii) statutory Encumbrances incurred in the
ordinary course of business in connection with worker's compensation,
unemployment insurance or other forms of governmental insurance or benefits
(collectively "Permitted Encumbrances") ;

An assignment and assumption agreement in the form of Exhibit 4 (the "Assignment
and Assumption Agreement"), duly executed by Seller;

Trademark, copyright and other intellectual property assignment documents
reasonably requested by Buyer to fully effectuate the transfer of the
intellectual property within the Subject Assets, each duly executed by Seller;

Actual or constructive physical possession of all of the Subject Assets and the
Records;

A certificate of the Secretary of Seller certifying, as complete and accurate as
of the Closing, attached copies of the governing documents of Seller, certifying
and attaching all requisite resolutions or actions of Seller's board of
directors and shareholders approving the execution and delivery of this
Agreement and the consummation of the contemplated transactions and the change
of name contemplated by Section 1.1 and certifying to the incumbency and
signatures of the officers of Seller executing this Agreement and any other
document relating to the contemplated transactions and accompanied by the
requisite documents for amending the relevant governing documents of Seller
required to effect such change of name in form sufficient for filing with the
appropriate Governmental Body; and

                                       9

<PAGE>

A legal opinion from Seller's counsel that (1) Seller is bound by this Agreement
and (2) subject to Closing, the Bill of Sale and Assignment and Assumption
Agreement are in a form legally sufficient to convey to Buyer the Subject Assets
free and clear of all Encumbrances, except Permitted Encumbrances.

2.3 Conditions Precedent to Seller's Obligations. The obligation of Seller to
consummate the transactions contemplated hereby is subject to satisfaction as of
the Closing of the following conditions (or, in the sole discretion of Seller,
written waiver thereof):

The representations and warranties of Buyer made in this Agreement shall be true
and correct in all material respects at Closing.

No proceeding by any Governmental Authority or other person shall have been
instituted or threatened against Buyer which seeks to enjoin, restrain or
prohibit, or which questions the validity or legality of, the transactions
contemplated hereby or which otherwise seeks to affect or could reasonably be
expected to affect the transactions contemplated hereby.

Seller's historical operations have been in compliance with all applicable laws
and regulations that could have a material adverse impact on the Business.

Buyer shall have performed in all material respects its obligations described in
Section 5.1.

Parent shall have taken all actions to satisfy its commitment to allow either
Tim Eisenman, John Adrian Burns or their designee to serve on the Parent's board
of directors until the full Purchase Price has been delivered to Seller.

Subsidiary shall have taken all action to appoint one person nominated by Tim
Eisenman or John Adrian Burns to its board of directors and to allow such person
to serve on its board of directors until the full Purchase Price has been
delivered to Seller.

Subsidiary shall have entered, subject to Closing, a 30 month written consulting
agreement with Tim Eisenman that pays Tim Eisenman $3,000 per month for not more
than 20 hours of services per month and as partial consideration for 3 year
non-competition agreement. The consulting agreement will provide for reasonable
and customary reimbursement for out of pocket expenses incurred by Tim Eisenman
at the Subsidiary's request.

Subsidiary shall have entered, subject to Closing, a 30 month written Employment
Agreement with John Adrian Burns to serve as the Chairman of the Board and CEO
of Subsidiary. John Adrian Burns' compensation shall be $15,000 per month plus
benefits and performance incentives. The Employment Agreement shall include as
partial consideration a 3 year non-competition agreement.

                                       10

<PAGE>

Subsidiary shall have entered, subject to Closing a 30 month written Employment
Agreement with John Arley Burns to serve as the President of Subsidiary. John
Arley Burns' compensation shall be $12,500 per month plus benefits and
performance incentives. The Employment Agreement shall include as partial
consideration a 3 year non-competition agreement.

Seller shall have received from Buyer all of the following:

The Initial Payment of the Purchase Price (including the Promissory Note and
Pledge Agreement, both duly executed by Buyer) as provided in Section 2.1; and

The Assignment and Assumption Agreement, duly executed by Subsidiary;

A certificate of the Secretary of each of Parent and Subsidiary certifying, as
complete and accurate as of the Closing, attached copies of the governing
documents of Parent and Subsidiary, respectively, and certifying and attaching
all requisite resolutions or actions of Buyer's board of directors approving the
execution and delivery of this Agreement and the consummation of the
contemplated transactions and certifying to the incumbency and signatures of the
officers of Buyer executing this Agreement and any other document relating to
the contemplated transactions; and

A legal opinion from Buyer's counsel that (1) Buyer is bound by this Agreement
and (2) subject to Closing, Subsidiary is obligated for the Assumed Liabilities
and Buyer is obligated under the Promissory Note and under this Agreement for
the balance of the Purchase Price based upon the earnings of the Subsidiary.

2.4 Consents and Other Conditions to Closing. It shall also be a condition
precedent to closing that:

         (a)      Buyer and Seller shall have obtained all necessary material
                  consents or approvals from all governmental or regulatory
                  authorities that are necessary to acquire the Subject Assets
                  and to continue the historical operations of the Seller in the
                  Subsidiary;

         (b)      Seller shall not be involved in or threatened with any
                  litigation that would have a material adverse effect on the
                  Subject Assets;

         (c)      an environmental inspection (where applicable) by a licensed
                  environmental inspection firm selected by Parent or Subsidiary
                  shall have reasonably determined the Subject Assets to be free
                  from significant environmental liabilities;

Seller shall have obtained all necessary consents from any utility companies,
landlords, lenders, suppliers and other third parties in connection with the
material contracts described in Exhibit 5 to be assumed by Subsidiary at Closing
("Material Consents"). If there are any Material Consents that have not yet been
obtained (or otherwise are not in full force and effect) as of the Closing, in
the case of each Seller contract as to which such Material Consents were not
obtained (or otherwise are not in full force and effect) (the "RESTRICTED
MATERIAL CONTRACTS"), Buyer may waive the closing conditions as to any such
Material Consent and either:

                                       11

<PAGE>

         (i)      elect to have Seller continue its efforts to obtain the
                  Material Consents; or

         (ii)     elect to have Seller retain that Restricted Material Contract
                  and all Liabilities arising therefrom or relating thereto.

If Buyer elects to have Seller continue its efforts to obtain any Material
Consents and the Closing occurs, notwithstanding Sections 1.1 and 1.5, neither
this Agreement nor the Assignment and Assumption Agreement nor any other
document related to the consummation of the contemplated transactions shall
constitute a sale, assignment, assumption, transfer, conveyance or delivery or
an attempted sale, assignment, assumption, transfer, conveyance or delivery of
the Restricted Material Contracts, and following the Closing, the parties shall
use Best Efforts (other than that Seller and Buyer shall have no obligation to
offer or pay any consideration in order to obtain any such Material Consents),
and cooperate with each other, to obtain the Material Consent relating to each
Restricted Material Contract as quickly as practicable. Pending the obtaining of
such Material Consents relating to any Restricted Material Contract, the parties
shall cooperate with each other in any reasonable and lawful arrangements
designed to provide to Buyer the benefits of use of the Restricted Material
Contract for its term (or any right or benefit arising thereunder, including the
enforcement for the benefit of Buyer of any and all rights of Seller against a
third party thereunder). Once a Material Consent for the sale, assignment,
assumption, transfer, conveyance and delivery of a Restricted Material Contract
is obtained, Seller shall promptly assign, transfer, convey and deliver such
Restricted Material Contract to Buyer, and Buyer shall assume the obligations
under such Restricted Material Contract assigned to Buyer from and after the
date of assignment to Buyer pursuant to a special-purpose assignment and
assumption agreement substantially similar in terms to those of the Assignment
and Assumption Agreement (which special-purpose agreement the parties shall
prepare, execute and deliver in good faith at the time of such transfer, all at
no additional cost to Buyer). If there are any Consents not listed on Exhibit 5
necessary for the assignment and transfer of any Seller contracts to Buyer (the
"NONMATERIAL CONSENTS") which have not yet been obtained (or otherwise are not
in full force and effect) as of the Closing, Buyer shall elect at the Closing,
in the case of each of the Seller contracts as to which such Nonmaterial
Consents were not obtained (or otherwise are not in full force and effect) (the
"RESTRICTED NONMATERIAL CONTRACTS"), whether to:

         (i) accept the assignment of such Restricted Nonmaterial Contract, in
which case, as between Buyer and Seller, such Restricted Nonmaterial Contract
shall, to the maximum extent practicable and notwithstanding the failure to
obtain the applicable Nonmaterial Consent, be transferred at the Closing
pursuant to the Assignment and Assumption Agreement as elsewhere provided under
this Agreement; or

         (ii) reject the assignment of such Restricted Nonmaterial Contract, in
which case, notwithstanding Sections 1.1 and 1.5, (A) neither this Agreement nor
the Assignment and Assumption Agreement nor any other document related to the
consummation of the Contemplated Transactions shall constitute a sale,

                                       12

<PAGE>

assignment, assumption, conveyance or delivery or an attempted sale, assignment,
assumption, transfer, conveyance or delivery of such Restricted Nonmaterial
Contract, and (B) Seller shall retain such Restricted Nonmaterial Contract and
all liabilities arising therefrom or relating thereto.

2.5 Failure of Conditions. If any of the conditions to Closing set forth in
Sections 2.2 and 2.3 have not been satisfied, the party or parties entitled to
the benefit of such conditions may elect to terminate this Agreement without
further liability of the terminating party or to consummate the transactions
contemplated hereby and, if any such failure is a result of a breach of any
provision of this Agreement, including the failure of any party to execute
and/or deliver any item required to be executed and/or delivered pursuant to
Sections 2.2 and 2.3, the party or adversely affected thereby may seek
appropriate remedies for any and all damages, costs and expenses incurred by
reason of such breach. Notwithstanding the above provisions, if either party
terminates this agreement prior to Closing, Seller shall remain obligated to
repay to Buyer all advance payments that have been made from Buyer to Seller
prior to Closing; provided, however that the initial $10,000 paid to Seller upon
the execution of the Letter of Intent by Seller and Parent dated May 4, 2005 may
be retained by Seller as a breakup fee as described in the Letter of Intent.

ARTICLE THREE: WARRANTIES AND REPRESENTATIONS OF SELLER

Seller hereby warrants and represents to Buyer, which warranties and
representations shall survive the Closing for one year, as follows:

Corporate Matters; No Conflict. Seller is a corporation duly incorporated,
validly existing and in good standing under the Laws of the State of Texas and
has the authority and power, corporate and otherwise, to carry on the Business
in the places and in the manner presently conducted. Seller has the corporate
power and authority to enter into this Agreement and the agreements and
documents to be executed and delivered pursuant to this Agreement (the
"Ancillary Agreements") by Seller and to consummate the transactions
contemplated hereby.

The execution, delivery and performance of this Agreement and the Ancillary
Documents to be executed by Seller and the consummation of the transactions
contemplated hereby have been approved by all necessary corporate action, other
than the Seller's shareholders. This Agreement and the Ancillary Documents to be
executed by Seller constitute, or, in the case of such Ancillary Documents, upon
their execution and delivery by Seller, will constitute, valid and legally
binding obligations of Seller, enforceable against it in accordance with their
respective terms except as such enforceability may be limited by bankruptcy and
other Laws generally affecting the rights of creditors and general principles of
equity.

To Seller's knowledge, there are no material adverse environmental liabilities
associated with the Seller's Business or the Subject Assets.

                                       13

<PAGE>

Except as set forth in Schedule 3, the execution, delivery and performance of
this Agreement and such Ancillary Documents to be executed by Seller and the
consummation of the transactions contemplated hereby by such party: (i) does not
and will not violate, conflict with, or result in the breach of, or default
under, any term, condition or provision of, give rise to any right to terminate,
cancel, modify, accelerate or otherwise change the existing rights or
obligations of such party with respect to, (A) any domestic or foreign Federal,
state or local statute, law, ordinance, rule, administrative interpretation,
regulation, policy, guideline or other requirement of or by any Governmental
Authority, each as amended through the date hereof (collectively, "Laws") which
is applicable to such party, the Business and/or the Subject Assets, (B) any
judgment, order, writ, injunction, decree, directive or award of any arbitrator
or Governmental Authority (collectively, an "Order") which is applicable to such
party, the Business and/or the Subject Assets, (C) the charter documents of
Seller or any securities issued by Seller, or (D) any authorization, approval,
consent, qualification, permit or license (collectively, an "Authorization") of
any Governmental Authority, or any material agreement, or other material
instrument, document or understanding, oral or written, to which such party is a
party, by which Seller may have rights or by which any of the Subject Assets may
be bound or affected; or (ii) result in the creation or imposition of any
Encumbrance except Permitted Encumbrances, on the Subject Assets. No
Authorization or other action of, or registration, declaration, recording or
filing with, any Governmental Authority or other person (other than the approval
of the Board of Directors and shareholders of Seller) is required in connection
with the execution and delivery of this Agreement and/or any Ancillary Document
to be executed and delivered pursuant hereto by Seller and/or the consummation
by Seller of the transactions contemplated hereby.

Title to the Subject Assets. Seller has good and valid title to all of the
assets constituting the Subject Assets described in Section 1.1, free and clear
of all Encumbrances except Permitted Encumbrances.

Commitments; Customers and Vendors. To the knowledge of Seller, the Assets
listed on Exhibit 1 are all of the material agreements, arrangements, and other
commitments of the Business with its customers (whether written, oral or
otherwise) which, if not assigned to or assumed by Buyer as an "Assumed
Contract" hereunder, would result in liabilities or obligations of Seller
accruing after the Closing. True and correct copies of each of the contracts and
all amendments and modifications thereof, have been delivered to Buyer. Assuming
that the consent of the customers who are parties to the contracts is obtained
pursuant to consents (as defined in 5.1), all of the contracts are assignable by
Seller.

Each Assumed Contract is in full force and effect. To the knowledge of Seller,
Seller has not been made aware of any facts that would suggest that any of the
material contracts within Subject Assets is not valid and binding or enforceable
in accordance with its terms, except as such enforceability may be limited by
bankruptcy and other Laws generally affecting the rights of creditors and
general principles of equity. Except as set forth in Schedule 3, neither Seller
nor, to the knowledge of Seller, any other party to a contract is in breach or
default under any contract (with or without the lapse of time, or the giving of
notice, or both).

                                       14

<PAGE>

Brokers, Agents. Seller has not dealt with any agent, finder, broker or other
representative (other than representatives of Buyer) in any manner which could
result in Buyer being liable for any finder's, broker's or other fee or
commission in connection with the subject matter of this Agreement.

Warranties True and Correct. No representation or warranty by Seller contained
in this Agreement or in any writing to be furnished pursuant hereto contains or
will contain any untrue statement of fact or omits or will omit to state any
material fact required to make the statements herein or therein complete and not
misleading.

Exclusion of Implied Warranties. SELLER EXCLUDES AND DISCLAIMS ANY AND ALL
IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE SUBJECT ASSETS AND EACH
OF THEM. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, SELLER MAKES NO
WARRANTIES TO BUYER IN CONNECTION WITH THE SALE OR TRANSFER OF THE SUBJECT
ASSETS TO SUBSIDIARY OR THE CONDITION OR PROSPECTS OF THE BUSINESS OTHER THAN
THOSE EXPRESSLY SET FORTH IN THIS ARTICLE THREE.

ARTICLE FOUR: WARRANTIES AND REPRESENTATIONS OF BUYER

Buyer hereby warrants and represents to Seller, which warranties and
representations shall survive the Closing for a period of three years following
Closing or one year following the last Earn out Payment, whichever is longer, as
follows:

Corporate Matters; No Conflict. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the state where it was
incorporated. Buyer has the authority and power, corporate or otherwise, to
carry on all business activities in the places and in the manner currently
conducted by it. Buyer has the corporate power and authority to enter into this
Agreement and the Ancillary Agreements to be executed and delivered by it and to
consummate the transactions contemplated hereby. The execution, delivery, and
performance of this Agreement and the Ancillary Agreements by Buyer have been
approved by all necessary corporate action. This Agreement and the Ancillary
Documents to be executed and delivered by Buyer constitute, or in the case of
the Ancillary Documents, upon their execution and delivery by Buyer, will
constitute, valid and legally binding obligations of Buyer, enforceable against
it in accordance with their respective terms except as such enforceability may
be limited by bankruptcy and other Laws generally affecting the rights of
creditors and general principles of equity.

The execution, delivery and performance of this Agreement and the Ancillary
Agreements to be executed and delivered by Buyer, the consummation of the
transactions contemplated hereby, and the compliance herewith, by Buyer: (i)
does not, and will not violate, conflict with or result in the breach of, or
default under, any term, condition or provision of, give rise to any right to

                                       15

<PAGE>

terminate, cancel, modify, accelerate or otherwise change the existing rights or
obligations of such party with respect to, (a) any Laws which is applicable to
Buyer, (b) Order which is applicable to Buyer, (c) the charter documents of
Buyer or any securities issued by Buyer, or (d) any Authorization of any
Governmental Authority, or any agreement, or other instrument, document or
understanding, oral or written, to which Buyer is a party.

No Authorization or other action of, or registration, declaration, recording or
filing with, any Governmental Authority or other person is required in
connection with the execution and delivery of this Agreement and/or any
Ancillary Document to be executed and delivered pursuant hereto by Buyer and/or
the consummation by Buyer of the transactions contemplated hereby. SEC Filings;
Financial Statements

         (a)      The Parent has made available to the Seller, upon request of
                  the Seller, accurate and complete copies (excluding copies of
                  exhibits) of each report, registration statement and
                  definitive proxy statement filed by the Parent with the
                  Securities Exchange Commission (the "SEC") between December
                  31, 2002 and the date of this Agreement (the "Parent SEC
                  Documents"). As of the time it was filed with the SEC (or, if
                  amended or superseded by a filing prior to the date of this
                  Agreement, then on the date of such filing): (i) each of the
                  Parent SEC Documents complied in all material respects with
                  the applicable requirements of the Securities Act of 1933 or
                  the Securities Exchange Act of 1934 (as the case may be); and
                  (ii) none of the Parent SEC Documents contained any untrue
                  statement of a material fact or omitted to state a material
                  fact required to be stated therein or necessary in order to
                  make the statements therein, in the light of the circumstances
                  under which they were made, not misleading.

         (b)      Between the date of the most recently filed Parent SEC
                  Document and the date of this Agreement, there has been no
                  material adverse change in the Parent's affairs that has not
                  been disclosed in the Parent's SEC Documents, PROVIDED,
                  HOWEVER, that for purposes of determining whether there shall
                  have been any such material adverse change, (i) any adverse
                  change resulting from or relating to worldwide general
                  business or economic conditions shall be disregarded, (ii) any
                  adverse change resulting from or relating to conditions
                  generally affecting the industry in which Parent competes
                  shall be disregarded, and (iii) any adverse change to the
                  stock price of the Parent's Common Stock, as quoted on any
                  nationally recognized stock quotation system, shall be
                  disregarded.

         (c)      The consolidated financial statements contained in the
                  Parent's SEC Documents: (i) complied as to form in all
                  material respects with the published rules and regulations of
                  the SEC applicable thereto; (ii) were prepared in accordance
                  with generally accepted accounting principles applied on a
                  consistent basis throughout the periods covered, except as may

                                       16

<PAGE>

                  be indicated in the notes to such financial statements and (in
                  the case of unaudited statements) as permitted by Form 10-Q of
                  the SEC, and except that unaudited financial statements may
                  not contain footnotes and are subject to year-end audit
                  adjustments; and (iii) fairly present the consolidated
                  financial position of the Parent and its subsidiaries as of
                  the respective dates thereof and the consolidated results of
                  operations of the Parent and its subsidiaries for the periods
                  covered thereby.

         (d)      The Parent qualifies as a registrant whose securities may be
                  resold pursuant to Form S-1 or SB-2 promulgated by the SEC
                  pursuant to the Securities Act of 1933, as amended.

Acquisition Subsidiary. Subsidiary was formed in June, 2005 and has transacted
no business other than matters relating to its formation or the entry into this
Agreement. Immediately following the Closing, Subsidiary will be a wholly owned
subsidiary of Parent.

Brokers; Agents. Buyer has not dealt with any agent, finder, broker or other
representative in any manner which could result in Seller being liable for any
fee or commission in the nature of a finder's or originator's fee in connection
with the subject matter of this Agreement.

Warranties True and Correct. No warranty or representation by Buyer contained in
this Agreement or in any writing to be furnished pursuant hereto contains or
will contain any untrue statement of fact or omits or will omit to state any
material fact required to make the statements therein contained not misleading.

ARTICLE FIVE: ADDITIONAL COVENANTS

5.1 General Buyer and Seller understand and agree to cooperate on the completion
of comprehensive due diligence, including the preparation of Parent audited
financial statements covering the assets to be purchased and liabilities assumed
for inclusion in a report on Form 8-K to be filed by Parent with the U.S.
Securities and Exchange Commission. Buyer and Seller acknowledge that the
satisfactory completion of due diligence is a condition precedent to the closing
obligation of either party.

5.2 Best Efforts. Buyer shall use its best efforts to obtain within sixty (60)
days after the Closing from each party (other than Seller) to a contract such
customer's written agreement to the assignment of its contract to Buyer, and
Seller shall use its best efforts, together with Buyer, in obtaining all such
Consents. "Best Efforts" means the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to achieve that result as
expeditiously as possible, provided, however, that a Person required to use Best
Efforts under this Agreement will not be thereby required to take actions that
would result in a material adverse change in the benefits to such Person of this
Agreement and the contemplated transactions or to dispose of or make any change
to its business, expend any material funds or incur any other material burden.

                                       17

<PAGE>

5.3 Publicity. Seller (nor any agent or representative of Seller) shall make any
public statements, including any press releases with respect to this Agreement
and/or the transactions contemplated hereby or any of the terms thereof without
the express prior written consent of the Parent, (it being understood that in no
event shall any statement by Seller or Buyer with respect to this Agreement
and/or the transactions contemplated hereby or any of the terms thereof that is
consistent with the communication plan specified by Parent and agreed upon by
the parties and made after the Closing to customers or vendors of the Business
constitute a public statement restricted hereby). Seller understands that Parent
of Buyer is a public company and Parent will issue all public statements
regarding this transaction as well as information releases for all future public
releases.

5.4 Cooperation. Seller shall cooperate with Buyer and use its best efforts to
cause respective officers, employees, agents, accountants and representatives,
if any, of Seller to cooperate with Buyer after the Closing to facilitate the
orderly transition of the Business and the Subject Assets to Buyer and to
minimize any disruption to the Business that might result from the transactions
contemplated hereby. Without limiting the generality of the foregoing provision,
during the ninety (90) day period commencing on the Closing Date, Seller shall
perform the transition services as reasonably specified by Buyer.

5.5 Execution of Additional Documents. From time to time, as and when requested
by Buyer, Seller shall execute and deliver, or cause to be executed and
delivered, all such documents and instruments of conveyance and shall take, or
cause to be taken, all such further or other actions as are necessary to
consummate the transactions contemplated by this Agreement and to convey,
assign, transfer and deliver to Buyer any of the properties or assets intended
to be conveyed, assigned, transferred and delivered pursuant to this Agreement.

5.7 Records. For the five (5) year period commencing on the Closing Date, upon
reasonable notice, Buyer and Seller agree to furnish or cause to be furnished,
during normal business hours, to each other and their respective
representatives, employees, counsel and accountants access to such information
and assistance relating to the Business as is reasonably necessary for financial
reporting and accounting matters, the preparation and filing of any returns,
reports or forms, or the defense of any tax claim or assessment, relating to the
Business; provided, however, that such access does not unreasonably disrupt the
normal operations of Buyer or Seller.

5.8 Default Provisions. Buyer and seller agree to negotiate mutually acceptable
default provisions that will be included in the Pledge Agreement.

ARTICLE SIX: INDEMNIFICATION & POST CLOSING CONDITIONS

6.1 Indemnification of Buyer. Seller agrees to indemnify Buyer and its
Affiliates and their respective members, managers, shareholders, directors,
officers, employees and agents (collectively, the "Buyer Indemnified Parties")
against, and to hold each such person harmless from, any and all damages,

                                       18

<PAGE>

losses, deficiencies, actions, demands, judgments, diminution in value, costs
and expenses (including reasonable attorneys' and accountants' fees)
(collectively, "Losses") of or against such person resulting from (i) any
misrepresentation or breach of warranty on the part of Seller in this Agreement
or in any Ancillary Agreement; (ii) any breach or non-fulfillment of any
agreement or covenant contained herein or in any Ancillary Agreement on the part
of Seller; (iii) any failure of Seller to pay and/or perform any liabilities or
obligations of Seller or the Business (including the Specified Retained
Liabilities and any such liability arising by operation of law) other than the
Assumed Liabilities; and (iv) any claims and liabilities to the extent related
to both (A) Seller's operation of the Business and (B) periods or occurrences
prior to the Closing or, as Seller's operation of the Business relates to an
Assumed Contract, prior to the deferred transfer date, if any, applicable to
such Restricted Material Contract. For purposes hereof, "Affiliate" shall mean,
as to any person, any other person which, directly or indirectly through one or
more intermediaries, controls, is controlled by, or is under common control
with, such person.

6.2 Indemnification of Seller. Buyer agrees to indemnify Seller and its
Affiliates and their respective shareholders, directors, officers, employees and
agents (collectively, the "Seller Indemnified Parties") against, and to hold
each such person harmless from, any and all Losses of or against such person
resulting from (i) any misrepresentation or breach of warranty on the part of
Buyer in this Agreement or in any Ancillary Agreement; (ii) any breach or
non-fulfillment of any agreement or covenant contained herein or in any
Ancillary Agreement on the part of Buyer; (iii) any failure by Buyer to pay,
discharge and/or perform any of the Assumed Liabilities; (iv) any claims and
liabilities to the extent related to both (A) Buyer's operation of the Business
and (B) periods or occurrences after the Closing or, as Buyer's operation of the
Business relates to a Restricted Material Contract, after the deferred transfer
date if any, applicable to such Restricted Material Contract.

6.3 Procedure Relative to Indemnification. The following procedure shall govern
indemnification:

(a) If either party hereto shall claim that it is entitled to be indemnified
pursuant to the terms of this Article Six, it (the "Claiming Party") shall so
notify Seller in the case of a claim for indemnification hereunder (a "Claim")
by any Claiming Party who or which is a Buyer Indemnified Party or Buyer in the
case of a Claim by a Claiming Party who or which is a Seller Indemnified Party
(the "Indemnifying Party") in writing of such claim promptly within ninety (90)
days after receipt of a notice of such claim or notice of any claim of a third
party that may reasonably be expected to result in a claim by the Claiming Party
against the Indemnifying Party except that notice shall be given to the
Indemnifying Party within such earlier period of time as may be reasonably
necessary to allow the Indemnifying Party to respond to any pleading or other
document for which a timely response is required; provided, however, that
failure to timely give such notification shall not affect the indemnification
provided hereunder except to the extent the Indemnifying Party shall have been
actually prejudiced as a result of such failure. Such notice shall specify the
breach of representation, warranty, or agreement claimed by the Claiming Party

                                       19

<PAGE>

and the Losses incurred by, or imposed upon, the Claiming Party on account
thereof. If such Losses are liquidated in amount, the notice shall so state and
such amount shall be deemed the amount of the Claim of the Claiming Party. If
such Losses are not liquidated in amount, the notice shall so state and, in such
event, a Claim shall be deemed asserted against the Indemnifying Party by the
Claiming Party, but no payment shall be made on account thereof until the amount
of such Claim is liquidated and the Claim is finally determined. In the case of
a Claim other than one which is based upon a Proceeding by any third party,
including any Proceeding by any Governmental Authority (a "Third Party Claim"),
if the Indemnifying Party agrees with such Claim for indemnification, it shall
remit payment for the amount of such Claim promptly after receipt from the
Claiming Party of the notice and invoice therefore. In the event of a dispute,
the Claiming Party and the Indemnifying Party shall proceed in good faith and
attempt to negotiate a resolution of such dispute, and if not resolved through
negotiations, such dispute shall be resolved by litigation in an appropriate
court of competent jurisdiction.

(b) The following provisions shall apply to any Claim of the Claiming Party that
is based upon a Third Party Claim:

(1) The Indemnifying Party shall, upon receipt of such written notice and at its
expense, defend such Third Party Claim in its own name or, if necessary, in the
name of the Claiming Party. The Claiming Party will cooperate with and make
available to the Indemnifying Party such assistance and materials as may be
reasonably requested of it and the Claiming Party shall have the right, at its
expense, to participate in such defense. The Indemnifying Party shall have the
right to settle and compromise such Third Party Claim only with the consent of
the Claiming Party, which consent shall not be unreasonably withheld; provided,
however, that, in making its determination as to whether to grant such consent,
the Claiming Party shall be entitled to consider the impact of the proposed
settlement upon its reputation and/or the goodwill of the businesses which it
conducts.

(2) If the Indemnifying Party shall notify the Claiming Party that it disputes
any Claim made by the Claiming Party with respect to, and/or it shall refuse or
choose not to conduct a defense against, such Third Party Claim, then the
Claiming Party shall have the right to conduct a defense against such Third
Party Claim and shall have the right to settle and compromise such Third Party
Claim without the consent of the Indemnifying Party. Once the amount of such
Claim is liquidated and the Claim is finally determined, the Claiming Party
shall be entitled to pursue each and every remedy available to it at law or in
equity to enforce the indemnification provisions of this Article Six and, if it
is determined, or the Indemnifying Party agrees, that it is obligated to
indemnify the Claiming Party for such Claim, the Indemnifying Party agrees to
pay all costs, expenses and fees, including all reasonable attorneys' fees,
which may be incurred by the Claiming Party in attempting to enforce
indemnification under this Article Six, whether the same shall be enforced by
suit or otherwise.

6.4 Post Closing Conditions.

                                       20

<PAGE>

6.4.1 Buyer's Obligations To Seller Following the Closing, Buyer shall have the
ongoing obligations and duties to Seller concerning the operations of Subsidiary
set forth below.

         (1) Subsidiary will be domiciled and operated from Taylor, Texas,
unless otherwise agreed to in writing by both Parent and Seller Representative,
until April 1, 2008 or the date Buyer pays in full the Purchase Price.

         (2) Parent will operate the Subsidiary as a wholly owned subsidiary
until April 1, 2008 or the date Buyer pays in full the Purchase Price. Parent
shall also not, without the written approval of Seller Representative cause the
Subsidiary to sell or otherwise dispose of any of its assets or of any Subject
Assets acquired from Seller until April 1, 2008 or the date Buyer pays in full
the Purchase Price, except in each case for dispositions made in the ordinary
course of business or payment of expenses incurred by the Subsidiary pursuant to
the transactions contemplated by this Agreement.

         (3) While John Adrian Burns is employed by Subsidiary, he will be
allowed to continue as a member of the Board of Directors of Moneyvue Financial,
Inc. and consult with Moneyvue Financial, Inc., its successors and assigns, from
time to time so long as such board or consulting activities do not unreasonably
interfere (in the reasonable opinion of Parent) with Mr. Burns duties and
responsibilities to the Subsidiary or Parent.

         (4) Parent shall elect John Adrian Burns Chairman and CEO of Subsidiary
and elect John Arley Burns President. Further, Seller Representative will have
veto power over decisions to materially increase or decrease spending or
capitalization above or below the budgets forecasted in the "SkyvueUSA 5 Year
Proforma v 6.5" until April 1, 2008 or the date Buyer pays in full the Purchase
Price.

         (5) Parent agrees to fund the $250,000 in forecasted working capital
needs of the Subsidiary in $50,000 monthly increments in each of the first five
months after Closing with the first installment due fifteen days following
Closing. Parent shall receive a Condition Precedent Demand Note substantially in
the Form of Exhibit 1A for all funds advanced to Subsidiary at any time and from
time to time. Further, Parent shall be granted a security interest in all assets
of the Subsidiary under a Security Agreement substantially in the Form of
Exhibit 2A. The Condition Precedent Demand Note(s) shall be subordinated to
Seller's note described in Section 1.4.1 above and the Pledge Agreement executed
to secure payment of Seller's note. The holder of the Condition Precedent Demand
Note(s) shall not be entitled to demand payment until such time as the Note to
Seller has been paid in full or 30 months from closing, whichever is later.

         (6) Buyer shall cause the Seller employees listed on Exhibit 6 to be
offered at will employment with Subsidiary, subject to Closing, on terms no less
favorable to such employees than they currently enjoy with Seller.

                                       21

<PAGE>

         (7) Until the final Annual Payment in Parent common stock associated
with the Purchase Price under this Agreement has been calculated and, if due,
paid to Seller on or before April 1, 2008, Parent agrees to place restrictions
on the Series A Preferred shareholders (or other Preferred shareholders having
the right to convert their shares of Preferred stock into multiple shares of
common stock) such that any Preferred shareholder, may not convert an amount of
their Preferred stock, on a quarterly basis, that would result in an amount of
new common shares that can then be sold in the marketplace that would represent
more than 4.9% of the then issued and outstanding voting common shares of
Parent.

6.4.2 Sellers Obligations To Buyer. Following the Closing, Seller shall have the
ongoing obligations and duties to Buyer concerning the operations of Subsidiary
set forth below.

         (1) Following the Closing, the operation of Subsidiary will be focused
on the sales, design, installation, and implementation aspects of the business
and all "shared service " aspects of the Business will be provided by Parent to
Subsidiary as a support function in order to reduce costs and achieve economies
of scale. Examples of such shared services include, but are not limited to, (1)
administrative financial transactions such as billing, collections, purchase
orders, payments, accounting, etc. (2) administrative matters related to
personnel, such as payroll, insurance, stock plans and 401K plan, when
implemented. (3) legal, tax, leasing, public releases, investor relations, and
human relations functions. John Adrian Burns as CEO of Subsidiary will make all
day-to-day operational decisions of Subsidiary and agrees to use reasonable
efforts not to duplicate these administrative "shared services" within
Subsidiary to the extent that Parent agrees with Subsidiary to provide and does,
in fact, provide such shared services.

         (2) Following the Closing, all operations of the Taylor wireless
broadband ISP service as well as all future ISP services to commercial
businesses and residential customers will be transferred to the Parent or
another operating subsidiary of Parent in order to let Subsidiary focus on
developing the enterprise level wireless banking business.

         (3) Subsidiary shall use reasonable commercial effort to have all
future contracts for providing encrypted wireless broadband networks negotiated
by Subsidiary with financial institutions or other commercial entities contain a
provision giving Subsidiary ( with transfer rights to the Parent) an option to
resell the excess capacity of the communication links to such institutions under
a mutually agreeable revenue sharing agreement.

         (4) Parent will construct, within first ninety days following Closing,
a second network operations center (NOC) at Parent's League City facility that
will initially serve as the backup for the Taylor Texas NOC. After suitable
testing, training, and staffing the League City NOC will become the primary NOC
for the encrypted wireless broadband networks and the Taylor Texas NOC will
become the backup NOC.

                                       22

<PAGE>

         (5) All operations of Subsidiary, following Closing, will be conducted
in accordance with the mutually agreed Seller provided Proforma v6.5 is a
baseline budget for operations unless changes to this baseline are mutually
agreed to by both Seller Representative and Parent. This budget will be measured
against actual operational numbers on a monthly basis as a management tool to
determine performance of Subsidiary. Proforma v6.5 is shown as Exhibit 7 to this
document.

ARTICLE SEVEN: MISCELLANEOUS

7.1 Expenses. The parties hereto shall pay their own expenses, including
accountants' and attorneys' fees, incurred in connection with the negotiation
and consummation of the transactions contemplated by this Agreement and the
Ancillary Agreements. Buyer shall be liable for and shall pay and discharge when
due any sales or transfer taxes incurred in connection with the purchase and
sale of the Subject Assets pursuant to this Agreement.

7.2 Headings; Use of Certain Words. The headings in this Agreement are for
purposes of convenience and ease of reference only and shall not be construed to
limit or otherwise affect the meaning of any part of this Agreement. Unless the
context clearly otherwise requires, as used herein, the term "Agreement" shall
mean this Agreement, including the Exhibits attached hereto. The words "herein,"
"hereof" and "hereunder" and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section or other
subdivision, and, except as expressly provided otherwise herein, references
herein to Articles or Sections or Schedules or Exhibits shall mean the Articles
and Paragraphs hereof and the Schedules and Exhibits attached hereto. The use of
the neuter pronoun "it" shall also refer as appropriate to the masculine and/or
feminine gender, and vice versa. The use of the singular herein shall, where
appropriate, be deemed to include the plural and vice versa. As used herein, the
word "person" refers to any individual, corporation limited liability company,
partnership, trust, Governmental Authority or other organization or entity. As
used herein, the term "including" shall mean "including, without limitation. For
those warranties and representations set forth in Article Three which are
subject to the qualification "to the Knowledge of Seller" or similar language,
Seller shall be deemed to have knowledge of a matter if any executive officer
has knowledge of the matter. For those warranties and representations set forth
in Article Four which are subject to the qualification "to the Knowledge of
Buyer" or similar language, Buyer shall be deemed to have knowledge of a matter
if any executive officer has knowledge of the matter.

7.3 Notices. All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be considered to be given and
received in all respects when personally delivered, when sent by facsimile
transmission actually received by the receiving equipment, when sent by
reputable express or courier delivery service, delivery charges prepaid, or
three (3) days after being deposited in the United States mail, certified mail,
postage prepaid, return receipt requested, addressed as set forth on the
signature page, or to such other address as shall be designated by the addressee
by notice duly given in accordance herewith.

                                       23

<PAGE>

7.4 Assignment. This Agreement and the rights hereunder shall not be assignable
or transferable by Buyer or Seller prior to the Closing without the prior
written consent of the other party hereto.

7.5 Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective legal representatives, heirs,
beneficiaries, successors and permitted assigns. Nothing expressed or implied in
this Agreement is intended or shall be construed to confer upon or give any
person other than the parties hereto and their permitted successors or assigns
any rights or remedies under or by reason of this Agreement or any transaction
contemplated hereby.

7.6 Entire Agreement; Amendment or Waiver; Cumulative Remedies. This Agreement,
the Schedules and Exhibits attached hereto and the agreements executed and
delivered in connection herewith constitute the entire agreement between the
parties hereto relating to the subject matter hereof, and all prior agreements,
correspondence, discussions, negotiations, agreements and understandings of the
parties (whether oral or written) are merged herein and superseded hereby. No
amendment, modification, or waiver hereto or hereunder shall be valid unless in
a writing signed by an authorized signatory of each party to be affected thereby
against whom enforcement thereof is being sought. The failure of any party
hereto to enforce at any time any of the provisions of this Agreement shall in
no way be construed to be a waiver of any such provision, nor in any way to
affect the validity of this Agreement or any part hereof or the right of such
party thereafter to enforce each and every such provision. No waiver of any
breach of, or failure to comply with, this Agreement shall be held to be a
waiver of any other or subsequent breach or failure to comply. All rights and
remedies under this Agreement are cumulative to all other rights and remedies
that may be available to each party, including all rights and remedies, whether
in tort or otherwise, whatsoever at law or in equity with respect hereto, which
each party hereby expressly reserves.

7.7 Severability. The parties agree that if any provision of this Agreement
shall under any circumstances be deemed invalid or inoperative, this Agreement
shall be construed with the invalid or inoperative provision deleted, and the
rights and obligations of the parties shall be construed and enforced
accordingly.

7.8 Applicable Law. This Agreement in all respects, including as to its
validity, interpretation, enforcement and effect, shall be governed by the
internal Laws of the State of Texas without regard to the Laws which otherwise
would govern under principles of conflicts of laws thereof.

7.9 Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered but one and the same agreement, and shall
become effective when one or more such counterparts have been signed by each of
the parties and delivered to the other party.

                                       24

<PAGE>

7.10 Representative of Seller. Seller hereby constitutes and appoints John
Adrian Burns as their representative ("Seller Representative") and their true
and lawful attorney in fact, with full power and authority in each of their
names and on behalf of each of them:

         (a) to act on behalf of Seller in the absolute discretion of the Seller
Representative, but only with respect to the following provisions of this
Agreement, with the power to: (A) agree to capital expenditures and capital
investments to be considered in connection with the Earn out Payment pursuant to
Section 1.3; (B) act pursuant to Section 1.7 with respect to any Purchase Price
adjustment; (C) consent to deductions in the quarterly payments to be paid to
Seller as a result of any post-closing Purchase Price adjustment and
indemnification claims by Buyer pursuant to Section 1.4 ; (D) consent to any
waiver or exception to Buyer's obligations pursuant to Section 6.4.1 (1), (2) or
(4); and (E) consent to changes in the baseline budget for Subsidiary following
Closing; and

         (b) in general, to do all things and to perform all acts, including
executing and delivering all agreements, certificates, receipts, instructions
and other instruments contemplated by or deemed advisable to effectuate the
provisions of this Section 7.10.

This appointment and grant of power and authority is coupled with an interest
and is in consideration of the mutual covenants made herein and is irrevocable
and shall not be terminated by any act of Seller or by operation of law. Seller
hereby consents to the taking of any and all actions and the making of any
decisions required or permitted to be taken or made by the Seller Representative
pursuant to this Section 7.10. Seller agrees that the Seller Representative
shall have no obligation or liability to any Person for any action or omission
taken or omitted by the Seller Representative in good faith hereunder, and
Seller shall indemnify and hold the Seller Representative harmless from and
against any and all loss, damage, expense or liability (including reasonable
counsel fees and expenses) which the Seller Representative may sustain as a
result of any such action or omission by the Seller Representative hereunder.

                                       25

<PAGE>

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

                                             BUYER

                                             ERF Wireless, Inc., a Nevada
                                             corporation ("Parent")

                                             By:   /S/ R. GREG SMITH
                                                -------------------------------
                                             Name: R. Greg Smith
                                             Title: Chief Executive Officer

                                             ERF Enterprise Network Services,
                                             a Texas corporation ("Subsidiary")

                                             By:   /S/ R. GREG SMITH
                                                -------------------------------
                                             Name: R. Greg Smith
                                             Title: Chief Executive Officer
                                                    (Acting)

Send Notices to:
Mr. R. Greg Smith, CEO
ERF Wireless, Inc.
2911 South Shore Blvd., Suite 100
League City, TX 77573
Telephone 281.538.2101
Facsimile 281.538.2155
Email rgs@erfwireless.com

With a copy to
Mr. Rick Weed
Weed & Co. LLP
4695 MacArthur Court, Suite 1430
Newport Beach, CA 92660
Telephone 949.475.9087
Facsimile 949.475.9087
Email rick@weedco.com

                                       26

<PAGE>

                                              SELLER

                                              SkyvueUSA East Central Texas, Inc.

                                              By:   /S/ JOHN ADRIAN BURNS
                                                 -------------------------------
                                              Name: John Adrian Burns
                                              Title: Chief Executive Officer

Send Notices to:
Mr. John Adrian Burns
Chairman & CEO
SkyvueUSA East Central Texas, Inc.
410 West 7th Street
Taylor, Texas 76574
Via Email: jab@moneyvue.com

                                       27Exhibit 4.1

                     UNIT PURCHASE AGREEMENT

       THIS UNIT PURCHASE AGREEMENT, dated as of July 1, 2005 (the
"Agreement") between Pacific WebWorks, Inc., a Nevada corporation with offices
at 180 South 300 West, Salt Lake City, Utah 84101 (the "Company") and First
Equity Holdings Corp.,  Empire Fund Managers and Compass Equity Partners, LLC
(collectively referred to as the "Investors").

                             RECITALS

      WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the
Investors, and the Investors shall purchase up to 4,500,000 Units (as defined
below) (the "Units").

      WHEREAS, the investment will be made in reliance upon the provisions of
Section 4(2) and Regulation D of the United States Securities Act of 1933, as
amended, and the regulations promulgated thereunder, and/or upon such other
exemptions from the registration requirements of the Securities Act as may be
available with respect to any and all of the investments to be made hereunder.

      NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein and other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

                            ARTICLE I

                       Certain Definitions
                        ------------------

      Section 1.1   "Capital Shares" shall mean the Common Stock and any
shares of any other class of Common Stock whether now or hereafter authorized,
having the right to participate in the distribution of earnings and assets of
the Company.

      Section 1.2   "Capital Shares Equivalents"  shall mean any securities,
rights, or obligations that are convertible into or exchangeable for, or
giving any right to, subscribe for any Capital Shares of the Company or any
warrants, options or other rights to subscribe for or purchase Capital Shares
or any such convertible or exchangeable securities.

      Section 1.3   "Closing" shall mean one of the closings of the purchase
and sale of the Units pursuant to Article II below.

      Section 1.4    "Closing Date" shall mean the date of the closing of the
purchase and sale of the Units pursuant to Article II below.

      Section 1.5    "Common Stock" shall mean the Company's common stock,
$0.001 par value per share.

      Section 1.6    "Damages" shall mean any loss, claim,  damage, liability,
costs and expenses which shall include, but not be limited to, reasonable
attorney's fees, disbursements,  costs and expenses of expert witnesses and
investigation.

      Section 1.7    "Effective Date" shall mean the date on which the SEC
first declares effective the Registration Statement.

      Section 1.8    "Escrow Agent" shall mean the law firm of Daniel W.
Jackson, pursuant to the terms of the Escrow Agreement attached as Exhibit A.

      Section 1.9    "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

      Section 1.10    "Legend" shall have the meaning set forth in Article
VIII below.

      Section 1.11    "Material Adverse Effect" shall mean any effect on the
business, operations, properties, earnings, prospects, Bid Price, trading
volume of the Common Stock, or financial condition of the Company that is
material and adverse to the Company and its subsidiaries and affiliates, taken
as a whole, and/or any condition, circumstance, or situation that would
prohibit or otherwise in any material respect interfere with the ability of
the Company to enter into and perform any of its obligations under this
Agreement, the Registration Rights Agreement and the Escrow Agreement.

      Section 1.12    "NASD" shall mean the National Association of Securities
Dealers, Inc.

      Section 1.13    "Outstanding" when used with reference to shares of
Common Stock, or Capital Shares (collectively the "Shares"), shall mean, at
any date as of which the number of such Shares is to be determined, all issued
and outstanding Shares, and shall include all such Shares issuable in respect
of outstanding scrip or any certificates representing fractional interests in
such Shares; provided, however, that Outstanding shall not mean any such
Shares then directly or indirectly owned or held by or for the account of the
Company.

      Section 1.14    "Person" shall mean an individual, a corporation, a
partnership, an association, a limited liability company, a trust or other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

      Section 1.15    "Principal Market" shall mean the OTC Bulletin Board,
Nasdaq National Market, the Nasdaq Small Cap Stock Market, the American Stock
Exchange, or the New York Stock Exchange, whichever is at the time the
principal trading exchange or market for the Common Stock.

      Section 1.16    "Registrable Securities" shall have the definition set
forth in the Registration Rights Agreement.

      Section 1.17    "Registration Rights Agreement" shall mean the agreement
regarding the filing of the Registration Statement for the resale of the
Registrable Securities, entered into between the Company, and the Investors.

      Section 1.18    "Registration Statement" shall mean a registration
statement on Form SB-2, for the registration of the resale or secondary market
by the Investors of the Registrable Securities under the Securities Act.

      Section 1.19    "Regulation D" shall have the meaning set forth in the
recitals of this Agreement.

      Section 1.20    "SEC" shall mean the  Securities and Exchange
Commission.

      Section 1.21    "Section 4(2)" shall have the meaning set forth in the
recitals of this Agreement.

      Section 1.22    "Securities Act" shall have the meaning set forth in the
recitals of this Agreement.

      Section 1.23    "Warrants" shall mean Common Stock Purchase Warrant,
annexed hereto as Exhibit C &D.

      Section 1.24    "Warrant Shares" shall mean all shares of Common Stock
or other securities issued or issuable pursuant to the exercise of the
Warrants.

                            ARTICLE II

        Purchase and Sale of the Common Stock and Warrants
       --------------------------------------------------

      Section 2.1    Closings. The Company will sell, and the Investors will
buy, on the Closing Date up to 4,500,000 Units at a per unit price of $0.06.

      Section 2.2    Form of Payment. The Investors shall pay the Purchase
Price by delivering good funds in United States Dollars by check or wire
transfer to the Escrow Agent, or the conversion of any or all outstanding
loans made to the Company against delivery of the original shares of Warrants.
The parties have entered into an Escrow Agreement annexed hereto as Exhibit A.

      Section 2.3    Units. Each Unit is comprised of a share of the Company's
common stock, and two Common Stock Purchase Warrants which shall be
exercisable beginning on the Closing Date and extending for a period of one
year thereafter and shall grant to the investor or holder thereof the right to
purchase one additional share of the Company's common stock for each "A"
warrant at a price of $0.12 per share, and each "B" warrant at a price of
$0.17 per share. The common share and warrants shall be delivered by the
Company to the Escrow Agent and delivered to the Investor pursuant to the
terms of this Agreement and the Escrow Agreement. The common share and the
warrant share shall be registered for resale pursuant to the Registration
Rights Agreement.

      Section 2.4    Closings. The closings are as follows:

            (i) Acceptance by the Investor of this Purchase Agreement and due
execution by all parties of this Agreement and the Exhibits annexed hereto;

            (ii) Delivery into escrow by the Company of the original Initial
Shares, original Warrants as more fully set forth in the Escrow Agreement
attached hereto;

            (iii) Delivery into escrow by the Investors of the Purchase Price
as set forth in the Escrow Agreement annexed hereto;

            (iv) All representations, covenants, and warranties of the Company
contained herein shall remain true and correct in all material respects as of
Closing Date;

                           ARTICLE III

         Representations and Warranties of the Investors
         -----------------------------------------------

      The Investor represents and warrants to the Company that:

      Section 3.1    Intent. The Investor is entering into this Agreement for
its own account and has no present arrangement (whether or not legally
binding) at any time to sell the Common Stock to, or through any person or
entity; provided, however, that by making the representations herein, the
Investor does not agree to hold the Common Stock for any minimum or other
specific term and reserves the right to dispose of the Common Stock at any
time in accordance with federal and state securities laws applicable to such
disposition.

      Section 3.2    Sophisticated Investors. The Investors are described in
Rule 506(b)(2)(11) of Regulation D) and a accredited investor (as defined in
Rule 501 of Regulation D), and have such experience in business and financial
matters that they are capable of evaluating the merits and risks of an
investment in the Units. The Investors acknowledge that an investment in the
Common Stock is speculative and involves a high degree of risk.

      Section 3.3    Authority. This Agreement has been duly authorized and
validly executed and delivered by the Investors and is a valid and binding
agreement of the Investor enforceable against each of it in accordance with
its terms, subject to applicable bankruptcy, insolvency, or similar laws
relating to, or affecting generally the enforcement of, creditors' rights and
remedies or by other equitable principles of general application.

      Section 3.4    Not an Affiliate. The Investors are not an officer,
director or "affiliate" (as that term is defined in Rule 405 of the Securities
Act) of the Company.

      Section 3.5    Organization and Standing. The Investors are duly
organized, validly existing, and in good standing under the laws of the
countries and/or states of their incorporation or organization.

      Section 3.6    Absence of Conflicts. The execution and delivery of this
Agreement and any other document or instrument executed in connection
herewith, and the consummation of the transactions contemplated thereby, and
compliance with the requirements thereof, will not violate any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on
Investors, or, to the Investors knowledge, (a) violate any provision of any
indenture, instrument or agreement to which the Investor is a party or is
subject, or by which the Investors or any of their assets is bound; (b)
conflict with or constitute a material default thereunder; (c) result in the
creation or imposition of any lien pursuant to the terms of any such
indenture, instrument or agreement, or constitute a breach of any fiduciary
duty owed by Investors to any third party; or (d) require the approval of any
third-party (which has not been obtained) pursuant to any material contract,
agreement, instrument, relationship or legal obligation to which the Investors
are subject or to which any of their assets, operations or management maybe
subject.

      Section 3.7    Disclosure; Access to Information. The Investors have
received all documents, records, books and other information pertaining to
Investors' investment in the Company that have been requested by Investors,
including the opportunity to ask questions and receive answers. The Investors
have reviewed or received copies of any such reports that have been requested
by it. The Investors represent that they have reviewed the Company Reports.

      Section 3.8    Manner of Sale. At no time was the Investors presented
with or solicited by or through any leaflet, public promotional meeting,
television advertisement or any other form of general solicitation or
advertising.

      Section 3.9    Registration or Exemption Requirements. The Investors
further acknowledges and understands that the Securities may not be
transferred, resold or otherwise disposed of except in a transaction
registered under the Securities Act and any applicable state securities laws,
or unless an exemption from such registration is available.  The Investors
understand that the certificate(s) evidencing the Common Shares, and Warrants
will be imprinted with a legend that prohibits the transfer of these
securities unless (i) they are registered or such registration is not
required, or (ii) if the transfer is pursuant to an exemption from
registration (with no limitations).

      Section 3.10    No Legal, Tax or Investment Advice. The Investors
understand that nothing in this Agreement or any other materials presented to
the Investors in connection with the purchase and sale of the Units
constitutes legal, tax or investment advice. The Investors have relied on, and
have consulted with, such legal, tax and investment advisors as they, in their
sole discretion, have deemed necessary or appropriate in connection with their
purchase of the Units.

                            ARTICLE IV

          Representations and Warranties of the Company
          ---------------------------------------------

      The Company represents and warrants to the Investors that:

      Section 4.1    Organization of the Company. The Company is a corporation
duly incorporated and existing in good standing under the laws of the State of
Nevada and has all requisite corporate authority to own its properties and to
carry on its business as now being conducted except as described in the
Company Documents. The Company is duly qualified to do business as a foreign
corporation and is in good standing in every jurisdiction in which the nature
of the business conducted or property owned by it makes such qualification
necessary, other than those in which the failure so to qualify would not
reasonably be expected to have a Material Adverse Effect

      Section 4.2    Authority. (i) The Company has the requisite corporate
power and authority to enter into and perform its obligations under this
Agreement, and all Exhibits annexed hereto, and to issue the Common Shares,
Warrants, and Warrant Shares, (ii) the execution, issuance and delivery of
this Agreement, and all Exhibits annexed hereto, by the Company and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action and no further consent or
authorization of the Company or its Board of Directors, and (iii) this
Agreement, and all Exhibits annexed hereto, have been duly executed and
delivered by the Company and constitute valid and binding obligations of the
Company enforceable against the Company in accordance with their terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws relating to, or affecting generally the enforcement of,
creditors' rights and remedies or by other equitable principles of general
application. Upon their issuance and delivery pursuant to this Agreement, the
Common Shares, Warrants and Warrant Shares, will be validly issued, fully paid
and nonassessable and will be free of any liens or encumbrances other than
those created hereunder or by the actions of the Investor; provided, however,
that the Common Shares, Warrants and Warrant Shares, are subject to
restrictions on transfer under state and/or federal securities laws. The
issuance and sale of the Common Shares, Warrants and Warrant Shares, under
will not give rise to any preemptive right or right of first refusal or right
of participation on behalf of any person.

      Section 4.3    Capitalization. The authorized capital stock of the
Company consists of 50,000,000 shares of Common Stock, $0.001 par value per
share, as of June 30, 2005, the Company's issued and outstanding was
28,748,392 shares. All of the outstanding shares of Common Stock of the
Company has been duly and validly authorized and issued and are fully paid and
nonassessable. To the knowledge of the Company, no Person or group of Persons
beneficially owns (as determined pursuant to Rule 13d-3 promulgated under the
Exchange Act) or has the right to acquire by agreement with or by obligation
binding upon the Company beneficial ownership of in excess of five percent of
the Common Stock.

      Section 4.4    Common Stock. The Common Stock has been registered
pursuant to Section 12(g) of the Exchange Act. The Common Stock is currently
listed or quoted on the OTC Bulletin Board under the symbol "PWEB".

      Section 4.5    Company Documents. The Company has delivered or made
available to the Investor true and complete copies of the Company Documents.
The Company has not provided to the Investor any information that, according
to applicable law, rule or regulation, should have been disclosed publicly
prior to the date hereof by the Company, but which has not been so disclosed.
None of the Company Documents contain any untrue statement of a material fact
or omitted to state a material fact required 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. The financial statements of the Company
included in the Company Documents comply as to form in all material respects
with applicable accounting requirements. Such financial statements have been
prepared in accordance with generally accepted accounting principles applied
on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii)
in the case of unaudited interim statements, to the extent they may not
include footnotes or may be condensed or summary statements) and fairly
present in all material respects the financial position of the Company as of
the dates thereof and the results of operations and cash flows for the periods
then ended.

      Section 4.6    Valid Issuances. When issued and payment has been made
therefor, Common Shares, Warrants and Warrant Shares, sold to the Investors
will be duly and validly issued, fully paid, and nonassessable. Neither the
issuance of the Common Shares, Warrants and Warrant Shares to the Investors,
pursuant to, nor the Company's performance of its obligations under this
Agreement, and all Exhibits annexed hereto will (i) result in the creation or
imposition by the Company of any liens, charges, claims or other encumbrances
upon the securities issued to the Investors, or any of the assets of the
Company, or (ii) entitle the holders of Outstanding Capital Shares to
preemptive or other rights to subscribe to or acquire the Capital Shares or
other securities of the Company.

      Section 4.7    No General Solicitation or Advertising in Regard to this
Transaction. Neither the Company nor any of its affiliates nor any distributor
or any person acting on its or their behalf (i) has conducted or will conduct
any general solicitation (as that term is used in Rule 502(c) of Regulation D)
or general advertising with respect to the Units, or (ii) made any offers or
sales of any security or solicited any offers to buy any security under any
circumstances that would require registration of the Units under the
Securities Act.

      Section 4.8    Corporate Documents. The Company has furnished or made
available to each of the Investors true and correct copies of. (i) the
Company's Articles of Incorporation, as amended and in effect on the date
hereof, (ii) the Company's by-laws, as amended and in effect on the date
hereof (the "By-Laws"); (iii) Form 10-K and 10Q reports.

      Section 4.9    No Conflicts. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including without limitation the issuance of
the Common Shares, Warrants and Warrant Shares, do not and will not (i) result
in a violation of the Company's Articles of Incorporation or By-Laws, or (ii)
conflict with, or constitute a material default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any
material agreement, indenture, instrument or any "lock-up" or similar
provision of any underwriting or similar agreement to which the Company is a
party, or (iii) result in a violation of any federal, state or local law,
rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations) applicable to the Company or by which any
property or asset of the Company is bound or affected, nor is the Company
otherwise in violation of, conflict with or in default under any of the
foregoing as would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. The business of the Company is not being
conducted in violation of any law, ordinance or regulation of any governmental
entity, except for possible violations that either singly or in the aggregate
would not reasonably be expected to have a Material Adverse Effect. The
Company is not required under federal, state or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement
(including all Exhibits annexed hereto) or to issue and sell the Common
Shares, Warrants and Warrant Shares in accordance with the terms hereof,
provided that, for purposes of the representation made in this sentence, the
Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Investors herein.

      Section 4.10    No Material Adverse Change.  Since December 31, 2004, no
Material Adverse Effect has occurred or exists with respect to the Company,
except as publicly announced.

      Section 4.11    No Undisclosed Liabilities. The Company has no
liabilities or obligations which are material, individually or in the
aggregate, that are not disclosed in the Company Documents or otherwise
publicly announced, other than those set forth in the Company's financial
statements or as incurred in the ordinary course of the Company's businesses
since, and which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

      Section 4.12    No Undisclosed Events or Circumstances.  Since December
31, 2004 no event or circumstance has occurred or exists with respect to the
Company or its businesses, properties, prospects, operations or financial
condition, that, under applicable law, rule or regulation, requires public
disclosure or announcement prior to the date hereof by the Company but which
has not been so publicly announced or disclosed in the Company Documents.

      Section 4.13    No Integrated Offering. To the Company's knowledge,
neither the Company, nor any of its affiliates, nor any person acting on its
or their behalf has, directly or indirectly, made any offers or sales of any
security or solicited any offers to buy any security, other than pursuant to
this Agreement or pursuant to the Company's existing employee benefit plan,
under circumstances that would cause the offering of the Units pursuant to
this Agreement to be integrated with prior or future offerings by the Company
for purposes of the Securities Act or any applicable stockholder approval
provisions.

      Section 4.14    Litigation and Other Proceedings. There are no lawsuits
or proceedings pending or to the knowledge of the Company threatened, against
the Company, nor has the Company received any written or oral notice of any
such action, suit, proceeding or investigation, which would reasonably be
expected to have a Material Adverse Effect. Except as set forth in the Company
Documents, no judgment, order, whit, injunction or decree or award has been
issued by or, so far as is known by the Company, requested of any court,
arbitrator or governmental agency which would be reasonably expected to result
in a Material Adverse Effect.

      Section 4.15    Acknowledgment of Dilution. The Company is aware and
acknowledges that issuance of Common Shares, and/or Warrant Shares, may result
in dilution of the outstanding shares of Common Stock, which dilution may be
substantial under certain market conditions. The Company further acknowledges
that its obligation to issue the Common Shares, and Warrant Shares is
unconditional and absolute regardless of the effect of any such dilution.

      Section 4.16    Employee Relations. The Company is not involved in any
labor dispute, nor, to the knowledge of the Company, is any such dispute
threatened which could reasonably be expected to have a Material Adverse
Effect. None of the Company's employees is a member of a union and the Company
believes that its relations with its employees are good.

      Section 4.17    Environmental Laws. The Company is (i) in compliance
with any and all foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants and which
the Company know is applicable to them ("Environmental Laws"), (ii) has
received all permits, licenses or other approvals required under applicable
Environmental Laws to conduct its business, and (iii) is in compliance with
all terms and conditions of any such permit, license or approval.

      Section 4.18    Insurance. The Company is insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as management of the Company believes to be prudent and customary in
the businesses in which the Company is engaged. The Company has no notice to
believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires, or obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not
materially and adversely affect the condition, financial or otherwise, or the
earnings, business or operation, of the Company.

      Section 4.19    Board Approval. The board of directors of the Company
has concluded, in its good faith business judgment, that the issuances of the
securities of the Company in connection with this Agreement are in the best
interests of the Company.

      Section 4.20    Integration. The Company shall not and shall use its
best efforts to ensure that no affiliate shall sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security of the Company
that would be integrated with the offer or sale of the Units, in a manner that
would require the registration under the Securities Act of the issue, offer or
sale of the Units to the Investors. The Units are being offered and sold
pursuant to the terms hereunder, are not being offered and sold as part of a
previously commenced private placement of securities.

      Section 4.21    Use of Proceeds. The Company represents that the net
proceeds from this offering will be used for working capital purposes and the
repayment of any outstanding corporate liabilities.

                            ARTICLE V

                    Covenants of the Investors
                   ---------------------------

      Section 5.1    4.99% Limitation. The number of shares of Common Stock
which may be acquired by any of the Investors pursuant to the terms of this
Agreement shall not exceed the number of such shares which, when aggregated
with all other shares of Common Stock then owned by any of the Investors,
would result in any of the Investors owning more than 4.99% of the then issued
and outstanding Common Stock.

                            ARTICLE VI

                     Covenants of the Company
                    -------------------------

      Section 6.1    Registration Rights. The Company shall cause the
Registration Rights Agreement to remain in full force and effect so long as
any Registrable Securities remain outstanding and the Company shall comply in
all material respects with the terms thereof

      Section 6.2    Reservation of Common Stock. As of the date hereof, the
Company has authorized and reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, shares of Common
Stock for the purpose of enabling the Company to satisfy any obligation to
issue the Common Shares, Warrants and Warrant Shares. The number of shares so
reserved shall be increased or decreased to reflect potential increases or
decreases in the Common Stock that the Company may thereafter be so obligated
to issue by reason of adjustments to the Warrants.

      Section 6.3    Legends. The Common Shares, Warrants and Warrant Shares,
to be issued by the Company pursuant to this Agreement shall be free of
legends, except as set forth in Article VIII.

      Section 6.4    Corporate Existence. The Company will take all steps
necessary to preserve and continue the corporate existence of the Company.

      Section 6.5    Notice of Certain Events Affecting Registration. The
Company will immediately notify each of the Investors within three Business
Days after the occurrence of any of the following events in respect of a
registration statement or related prospectus in respect of an offering of
Registrable Securities: (i) receipt of any request for additional information
by the SEC or any other federal or state governmental authority during the
period of effectiveness of the Registration Statement for amendments or
supplements to the Registration Statement or related prospectus; (ii) the
issuance by the SEC or any other federal or state governmental authority of
any stop order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in the
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in the Registration Statement,
related prospectus or documents so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the related
prospectus, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which
they were made, not misleading (the Company shall not be required to notify
the Investors in this case in the event such notification would be deemed the
release of nonpublic information); and (v) the Company's reasonable
determination that a post-effective amendment to the Registration Statement
would be appropriate. The Company will, within five Business Days of when
filed with the SEC make available to the Investors any such supplement or
amendment to the related prospectus.

      Section 6.6   Consolidation; Merger. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with
or into, or a transfer of all or substantially all of the assets of the
Company to, another entity (a "Consolidation Event") unless the resulting
successor or acquiring entity (if not the Company) assumes by written
instrument the obligation to deliver to the Investors such shares of stock
and/or securities as the Investors are entitled to receive pursuant to this
Agreement.

      Section 6.7    Issuance of Common Shares and Warrant Shares. The
issuance of the Common Shares and Warrant Shares shall be made in accordance
with the provisions and requirements of Section 4(2) of the Securities Act, or
Regulation D and any applicable state securities law.

      Section 6.8    Exercise of Warrants. The Company will allow the
Investors to exercise their right to exercise the Warrants, by telecopying an
executed and completed Notice of Exercise (along with payment of the
applicable Exercise Price) to the Company as is set forth in the Warrant.

      Section 6.9    Increase in Authorized Shares. At such time as the
Company would be, if a notice of exercise were to be delivered on such date,
precluded from honoring (i) the exercise in full of the Warrants, due to the
unavailability of a sufficient number of shares of authorized but unissued or
re-acquired Common Stock, the Board of Directors of the Company shall promptly
(and in any case within sixty (60) calendar days from such date) hold a
shareholders meeting in which the shareholders would vote for authorization to
amend the Company's certificate of incorporation to increase the number of
shares of Common Stock which the Company is authorized to issue to at least a
number of shares equal to the sum of (i) all shares of Common Stock then
outstanding, (ii) the number of shares of Common Stock issuable on account of
all outstanding warrants, options and convertible securities (other than the
Warrants) and on account of all shares reserved under any stock option, stock
purchase, warrant or similar plan, and (iii) such number of Warrant Shares as
would then be issuable upon the exercise in full of the Warrants, as would be
issuable on such date. In connection therewith, the Board of Directors shall
promptly (i) adopt proper resolutions authorizing such increase, (b) recommend
to and otherwise use its best efforts to promptly and duly obtain shareholder
approval to carry out such resolutions and (iii) within five Business Days of
obtaining such shareholder authorization, file an appropriate amendment to the
Company's certificate of incorporation to evidence such increase. In no way
shall the aforementioned be deemed a waiver of the Company's obligations
contained in Section 6.2 above.

      Section 6.10    Notice of Breaches. Each of the Company on the one hand,
and the Investors on the other, shall give prompt written notice to the other
of any breach by it of any representation, covenant, warranty or other
agreement contained in this Agreement or any Exhibit annexed hereto, as well
as any events or occurrences arising after the date hereof, which would
reasonably be likely to cause any representation, covenant, or warranty or
other agreement of such party, as the case may be, contained in this Agreement
or any Exhibit annexed hereto, to be incorrect or breached as of such date.
However, no disclosure by either party pursuant to this Section shall be
deemed to cure any breach of any representation, warranty or other agreement
contained in this Agreement or any Exhibit annexed hereto. Notwithstanding the
generality of the foregoing, the Company shall promptly notify each Investor
of any notice or claim (written or oral) that it receives from any lender of
the Company to the effect that the consummation of the transactions
contemplated by this Agreement or any Exhibit annexed hereto, violates or
would violate any written agreement or understanding between such lender and
the Company, and the Company shall promptly furnish by facsimile to each
Investor a copy of any written statement in support of or relating to such
claim or notice.

                           ARTICLE VII

  Due Diligence Review, Non-Disclosure of Non-Public Information
 ---------------------------------------------------------------

      Section 7.1    Due Diligence Review. The Company shall make available
for inspection and review by the Investors, advisors to and representatives of
the Investors (who may or may not be affiliated with the Investors), any
underwriter participating in any disposition of the Registrable Securities on
behalf of the Investors pursuant to the Registration Statement, any such
registration statement or amendment or supplement thereto or any blue sky,
NASD or other filing, all financial and other records, all Company Documents,
and all other corporate documents and properties of the Company as may be
reasonably necessary for the purpose of such review, and cause the Company's
officers, directors and employees to supply all such information reasonably
requested by any of the Investors or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without
limitation, in response to all questions and other inquiries reasonably made
or submitted by any of them), prior to and from time to time after the filing
and effectiveness of the Registration Statement for the sole purpose of
enabling the Investors and such representatives, advisors and underwriters and
their respective accountants and attorneys to conduct initial and ongoing due
diligence with respect to the Company and the accuracy of the Registration
Statement.

      Section 7.2    Non-Disclosure of Non-Public Information

            (a)  The Company has not disclosed, and hereafter shall not
disclose nonpublic information to the Investors, advisors to, or
representatives of, the Investors unless prior to disclosure of such
information the Company identifies such information as being non-public
information and provides each Investor, and its advisors and representatives
with the opportunity to accept or refuse to accept such non-public information
for review. The Company may, as a condition to disclosing any non-public
information hereunder, require each of the Investors advisors and
representatives to enter into a confidentiality agreement in form reasonably
satisfactory to the Company and the Investors.

            (b)   Nothing  herein shall  require the Company to disclose
non-public  information  to any of the Investors or their  advisors or
representatives, and the Company represents that it does not disseminate
non-public information to any investors who purchase stock in the Company in a
public offering, to money managers or to securities analysts, provided,
however, that notwithstanding anything herein to the contrary, the Company
will, as hereinabove provided, immediately notify the advisors and
representatives of the Investors and, if any, underwriters, of any event or
the existence of any circumstance  (without any obligation to disclose the
specific event or circumstance) of which it becomes aware, constituting
non-public information (whether or not requested of the Company specifically
or generally during the course of due diligence by such persons or entities),
which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to
omit a material fact required to be stated therein in order to make the
statements, therein, in light of the circumstances in which they were made,
not misleading. Nothing contained in this Section shall be construed to mean
that such persons or entities other than the Investors (without the written
consent of the Investors prior to disclosure of such information) may not
obtain non-public information in the course of conducting due diligence in
accordance with the terms of this Agreement and nothing herein shall prevent
any such persons or entities from notifying the Company of their opinion that
based on such due diligence by such persons or entities, that the Registration
Statement contains an untrue statement of a material fact or omits a material
fact required to be stated in the Registration Statement or necessary to make
the statements contained therein, in light of the circumstances in which they
were made, not misleading.

                           ARTICLE VIII

                             Legends
                             -------

      Section 8.1    Legends. The Investors agree to the imprinting, so long
as is required by this Section, of the following legend (or such substantially
similar legend as is acceptable to the Investors and their counsel, the
parties agreeing that any unacceptable legended securities shall be replaced
promptly by and at the Company's cost) on the securities:

      [FOR WARRANTS AND COMMON SHARES] NEITHER THESE SECURITIES NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE  COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

      [ONLY FOR WARRANT SHARES TO THE EXTENT THE RESALE THEREOF IS NOT COVERED
BY AN EFFECTIVE REGISTRATION STATEMENT AT THE TIME OF ISSUANCE OR EXERCISE]
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE  COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

      The Warrant Shares shall not contain the legend set forth above or any
other restrictive legend if the issuance of such occurs at any time while a
Registration Statement is effective under the Securities Act in connection
with the resale of the shares of Common Stock or, in the event there is not an
effective Registration Statement at such time, if in the opinion of counsel to
the Company such legend is not required under applicable requirements of the
Securities Act (including Judicial interpretations and pronouncements issued
by the staff of the Commission). The Company agrees that it will provide the
Investors, upon request, with a certificate or certificates representing the
Warrant Shares, free from such legend at such time as such legend is no longer
required hereunder. The Company may not make any notation on its records or
give instructions to any transfer agent of the Company which enlarge the
restrictions of transfer set forth in this Section.

      Upon the execution and delivery hereof, the Company is issuing to the
transfer agent for its Common Stock (and to any substitute or replacement
transfer agent for its Common Stock upon the Company's appointment of any such
substitute or replacement transfer agent) instructions in substantially the
form of Exhibit D hereto. Such shall be irrevocable by the Company from and
after the date hereof or from and after the issuance thereof to any such
substitute or replacement transfer agent, as the case may be, except as
otherwise expressly provided in the Registration Rights Agreement. It is the
intent and purpose of such instructions, as provided therein, to require the
transfer agent for the Common Stock from time to time upon transfer of
Registrable Securities by the Investors to issue certificates evidencing such
Registrable Securities free of the Legend during the following periods and
under the following circumstances and except as provided below, without
consultation by the transfer agent with the Company or its counsel and without
the need for any further advice or instruction or documentation to the
transfer agent by or from the Company or its counsel or the Investors:

            (a) at any time after the Effective Date, upon surrender of one or
more certificates evidencing the Warrants or Warrant Shares that bear the
aforementioned Legend, to the extent accompanied by a notice requesting the
issuance of new certificates free of the aforementioned legend to replace
those surrendered; provided that (i) the Registration Statement shall then be
effective; (ii) the Investor(s) confirm to the transfer agent that it has
sold, pledged or otherwise transferred or agreed to sell, pledge or otherwise
transfer such Common Stock in a bona fide transaction to a third party that is
not an affiliate of the Company; and (iii) the Investor(s) confirm to the
transfer agent that the Investor(s)  have complied with the prospectus
delivery requirement.

            (b) at any time upon any surrender of one or more certificates
evidencing Registrable Securities, that bear the aforementioned legend, to the
extent accompanied by a notice requesting the issuance of new certificates
free of such legend to replace those surrendered and containing
representations that (i) the Investor(s) is permitted to dispose of such
Registrable Securities, without limitation as to amount or manner of sale
pursuant to Rule 144(k) under the Securities Act or (ii) the Investor(s) has
sold, pledged or otherwise transferred or agreed to sell, pledge or otherwise
transfer such Registrable Securities, in a manner other than pursuant to an
effective registration statement, to a transferee who will upon such transfer
be entitled to freely tradeable securities. The Company shall have counsel
provide any and all opinions necessary for the sale under Rule 144, as
permitted under applicable law.

      Any of the notices referred to above in this Section may be sent by
facsimile to the Company's transfer agent.

      Section 8.2    No Other Legend or Stock Transfer Restrictions. No legend
other than the one specified in this Article has been or shall be placed on
the share certificates representing the Common Stock, and no instructions or
"stop transfer orders," so called, "stock transfer restrictions," or other
restrictions have been or shall be given to the Company's transfer agent with
respect thereto other than as expressly set forth in this Article.

      Section 8.3   Special Rights to Warrant Shares and Conversion. The
exercise price and number of common shares into which these warrants are
exercisable shall not be subject to any adjustment at any time during this
offering or at conversion.

      Section 8.4    Investor's Compliance. Nothing in this Article shall
affect in any way any of the Investors obligations under any agreement to
comply with all applicable securities laws upon resale of the Common Stock.

                            ARTICLE IX

                          Choice of Law
                          -------------

      Section 9.1    Choice of Law, Venue, Jurisdiction. This Agreement will
be construed and enforced in accordance with and governed by the laws of the
State of Utah, except for matters arising under the Securities Act, without
reference to principles of conflicts of law. Each of the parties consents to
the exclusive jurisdiction of the United States District Court for the
District of Utah in connection with any dispute arising under this Agreement
and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non conveniens, to the bringing of any
such proceeding in such jurisdictions. Each party hereby agrees that if
another party to this Agreement obtains a judgment against it in such a
proceeding, the party which obtained such judgment may enforce same by summary
judgment in the courts of any country having jurisdiction over the party
against whom such judgment was obtained, and each party hereby waives any
defenses available to it under local law and agrees to the enforcement of such
a judgment. Each party to this Agreement irrevocably consents to the service
of process in any such proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to such party at its address
set forth herein. Nothing herein shall affect the right of any party to serve
process in any other manner permitted by law. Each party waives its right to a
trial by jury.

                            ARTICLE X

       Assignment; Entire Agreement, Amendment, Termination
      ------------------------------------------------------

      Section 10.1    Assignment. The Investor's interest in this Agreement
and its ownership of Common Stock and Warrants may be assigned or transferred
at any time, in whole or in part, to any other person or entity (including any
affiliate of the Investors) who agrees to, and truthfully can, make the
representations and warranties contained in Article III, and who agrees to be
bound by the covenants of Article V. The provisions of this Agreement shall
inure to the benefit of, and be enforceable by, any transferee of any of the
shares of Common Stock and/or Warrants purchased or acquired by the Investors
hereunder with respect to the Common Stock held by such person.

      Section 10.2    Termination. This Agreement shall terminate upon the
earliest of (i) the date that all the Registrable Securities have been sold by
the Investors pursuant to the Registration Statement; (ii) the date the
Investors receive an opinion from counsel to the Company that all of the
Registrable Securities may be sold under the provisions of Rule 144, without
volume limitation; or (iii) five years after the Closing Date; provided,
however, that the provisions of Articles III, IV, V, VI, VII, VIII, IX, X, XI,
and XII herein, and the registration rights provisions for the Registrable
Securities held by the Investors set forth in this Agreement, and the
Registration Rights Agreement, shall survive the termination of this
Agreement.

                            ARTICLE XI

                             Notices

      Section 11.1    Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be
in writing and, unless otherwise specified herein, shall be (i) personally
served, (ii) deposited in the mail, registered or certified, return receipt
requested, postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery, telegram, or
facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other
communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile,  with accurate
confirmation  generated by the transmitting facsimile machine, at the address
or number designated below (if delivered on a Business Day during normal
business hours where such notice is to be received), or the first Business Day
following such delivery (if delivered other than on a Business Day during
normal business hours where such notice is to be received), or (b) on the
second Business Day following the date of mailing by reputable courier
service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such
communications shall be:

      If to the Company:
                           Pacific WebWorks, Inc.
                           180 South 300 West, Suite 400
                           Salt Lake City, Utah 84101

      If to the Investors:

                           See attached "Exhibit E"

      Either party hereto may from time to time change its address or
facsimile number for notices under this Section 11. 1 by giving at least ten
calendar days' prior written notice of such changed address or facsimile
number to the other party hereto.

      Section 11.2    Indemnification. The Company agrees to indemnify and
hold harmless each of the Investors and each officer, director of the
Investors or person, if any, who controls the Investors within the meaning of
the Securities Act against any losses, claims, damages or liabilities, Joint
or several (which shall, for all purposes of this Agreement, include, but not
be limited to, all costs of defense and investigation and all attorneys'
fees), to which the Investors may become subject, under the Securities Act or
otherwise, insofar as such losses, claims. damages or liabilities (or actions
in respect thereof) arise out of or are based upon the breach of any term of
this Agreement by the Company. This indemnity agreement will be in addition to
any liability which the Company may otherwise have.

      Each Investor agrees that it will indemnify and hold harmless the
Company, and each officer, director of the Company or person, if any, who
controls the Company within the meaning of the Securities Act, against any
losses, claims, damages or liabilities (which shall, for all purposes of this
Agreement,  include,  but not be limited to, all costs of defense and
investigation and all attorneys' fees) to which the Company or any such
officer, director or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon the
breach of any term of this Agreement by the Investor. This indemnity agreement
will be in addition to any liability which the Investors or any subsequent
assignee may otherwise have.

      Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section, notify the indemnifying party of the commencement thereof, but
the omission so to notify the indemnifying party will not relieve the
indemnifying party from any liability which it may have to any indemnified
party otherwise than as to the particular item as to which indemnification is
then being sought solely pursuant to this Section. In case any such action is
brought against any indemnified party, and it notifies the indemnifying party
of the commencement thereof, the indemnifying party will be entitled to
participate in, and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, assume the defense thereof, subject to
the provisions herein stated and after notice from the indemnifying party to
such indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation, unless the indemnifying party shall not pursue the
action to its final conclusion. The indemnified party shall have the right to
employ separate counsel in any such action and to participate in the defense
thereof, but the fees and expenses of such counsel shall not be at the expense
of the indemnifying party if the indemnifying party has assumed the defense of
the action with counsel reasonably satisfactory to the indemnified party;
provided that if the indemnified party is one of the Investors, the fees and
expenses of such counsel shall be at the expense of the indemnifying party if
(i) the employment of such counsel has been specifically authorized in writing
by the indemnifying party, or (ii) the named parties to any such action
(including any impleaded parties) include both the Investors and the
indemnifying party and the Investors shall have been advised by such counsel
that there may be one or more legal defenses available to the indemnifying
party in conflict with any legal defenses which may be available to the
Investors (in which case the indemnifying party shall not have the right to
assume the defense of such action on behalf of the Investors, it being
understood, however, that the indemnifying party shall, in connection with any
one such action or separate but substantially similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances, be liable only for the reasonable fees and expenses of one
separate firm of attorneys for the Investor(s), which firm shall be designated
in writing by the Investor(s)). No settlement of any action against an
indemnified party shall be made without the prior written consent of the
indemnified party, which consent shall not be unreasonably withheld.

      Section 11.3    Contribution. In order to provide for just and equitable
contribution under the Securities Act in any case in which (i) the indemnified
party makes a claim for indemnification pursuant to Section 11.2 hereof but is
judicially determined (by the entry of a final judgment or decree by a court
of competent jurisdiction and the expiration of time to appeal or the denial
of the last right of appeal) that such indemnification may not be enforced in
such case notwithstanding the fact that the express provisions of Section 11.2
hereof provide for  indemnification in such case, or (ii) contribution under
the Securities Act may be required on the part of any indemnified party, then
the Company and the applicable Investor shall contribute to the aggregate
losses, claims, damages or liabilities to which they may be subject (which
shall, for all purposes of this Agreement, include, but not be limited to, all
costs of defense and investigation and all attorneys' fees), in either such
case (after contribution from others) on the basis of relative fault as well
as any other relevant equitable considerations. The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities
(or actions in respect thereof) referred to above in Section 11.2 shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such
action or claim. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11 (F) of the Securities Act) shall be entitled to
contributions from any person who was not guilty of such fraudulent
misrepresentation.

                           ARTICLE XII

                          Miscellaneous
                          -------------

      Section 12.1    Counterparts; Facsimile; Amendments. This Agreement may
be executed in multiple counterparts, each of which may be executed by less
than all of the parties and shall be deemed to be an original instrument which
shall be enforceable against the parties actually executing such counterparts
and all of which together shall constitute one and the same instrument. Except
as otherwise stated herein, in lieu of the original documents, a facsimile
transmission or copy of the original documents shall be as effective and
enforceable as the original. This Agreement may be amended only by a writing
executed by the Company on the one hand, and the Investors, on the other hand.

      Section 12.2    Entire Agreement. This Agreement, the Exhibits or
attachments hereto, which include, but are not limited to the Warrant, the
Certificate of Designation, the Escrow Agreement, and the Registration Rights
Agreement, set forth the entire agreement and understanding of the parties
relating to the subject  matter  hereof and  supersedes  all prior and
contemporaneous agreements, negotiations and understandings between the
parties, both oral and written relating to the subject matter hereof. The
terms and conditions of all Exhibits to this Agreement are incorporated herein
by this reference and shall constitute part of this Agreement as if fully set
forth herein.

      Section 12.3    Survival;  Severability.  The  representations,
warranties, covenants and agreements of the parties hereto shall survive each
Closing hereunder. In the event that any provisions of this Agreement becomes
or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision; provided that such severability shall be ineffective
if it materially changes the economic benefit of this Agreement to any party.

      Section 12.4    Title and Subtitles. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

      Section 12.5    Reporting Entity for the Common Stock. The reporting
entity relied upon for the determination of the trading price or trading
volume of the Common Stock on any given Trading Day for the purposes of this
Agreement and all Exhibits shall be either Yahoo Finance, or any successor
thereto. The written mutual consent of the Investors and the Company shall be
required to employ any other reporting entity.

      Section 12.6    Replacement of Certificates. Upon (i) receipts of
evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of a certificate representing the Initial Shares,
Secondary Shares, Reset Shares, Warrants, Warrant Shares, or Additional
Shares, and (ii) in the case of any such loss, theft or destruction of such
certificate, upon delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or (iii) in the case of any
such mutilation, on surrender and cancellation of such certificate, the
Company at is expense will execute and deliver, in lieu thereof, a new
certificate of like tenor.

      Section 12.7    Fees and Expenses. Each of the parties shall pay its own
fees and expenses (including the fees of any attorneys, accountants,
appraisers or others engaged by such party) in connection with this Agreement
and the transactions contemplated hereby, except that the Company shall pay
(i) on the Closing Date the Escrow Agent will distribute the following: up to
$10,000 to be paid for legal, accounting, commissions,  administrative, and
escrow fees.

      Section 12.8    Publicity. The Company and the Investors shall consult
with each other in issuing any press releases or otherwise making public
statements with respect to the transactions contemplated hereby and no party
shall issue any such press release or otherwise make any such public statement
without the prior written consent of the other parties, which consent shall
not be unreasonably withheld or delayed, except that no prior consent shall be
required if such disclosure is required by law, in which such case the
disclosing party shall provide the other parties with prior notice of such
public statement. Notwithstanding the foregoing, the Company shall not
publicly disclose the names of the Investors without the prior written consent
of the Investors, except to the extent required by law or in response to a
written SEC request, in which case the Company shall provide the Investors
with prior written notice of such public disclosure.

EXHIBITS:
Escrow Agreement
Registration Statement
Warrant
Instructions to Transfer Agent
List of Investors

           [Remainder of page intentionally left blank]

                     [Signature page follows]

     IN WITNESS WHEREOF, the parties hereto have caused this Unit Purchase
Agreement to be executed by the undersigned, thereunto duly authorized, as of
the date first set forth above.

PACIFIC WEBWORKS, INC.

     /s/ Kenneth Bell
By: __________________________
     Kenneth Bell
     CEO

                                          FIRST EQUITY HOLDINGS CORP.

                                          /s/ John Clayton
                                     By:  ________________________________
                                     Its: President

                                          COMPASS EQUITY PARTNERS

                                          /s/ Don Mayer
                                     By:  ________________________________
                                     Its: Manager

                                          EMPIRE FUND MANAGERS, LLC

                                          /s/ Linda L. Perry
                                     By:  _________________________________
                                     Its: Member

                        INDEX OF EXHIBITS

Exhibit A  Escrow Agreement

Exhibit B  Registration Rights Agreement

Exhibit C  Common Stock Purchase Warrant ($0.12) - First Equity Holdings Corp
           Common Stock Purchase Warrant ($0.12) - Empire Fund Managers LLC
           Common Stock Purchase Warrant ($0.12) - Compass Equity Partners LLC

Exhibit D  Common Stock Purchase Warrant ($0.17) - First Equity Holdings Corp
           Common Stock Purchase Warrant ($0.17) - Empire Fund Managers LLC
           Common Stock Purchase Warrant ($0.17) - Compass Equity Partners LLC

Exhibit E  Instructions To Transfer Agent

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]