Document:

ASSET SALE AND PURCHASE AGREEMENT

     THIS  ASSET  SALE  AND PURCHASE AGREEMENT ("Agreement") is made and entered
into  effective  as  of  the  15th  day  of  September,  2005 by and between (a)
Trilliant  Corporation,  a  Texas  corporation  ("Seller"),  and William Koehler
("Shareholder,"  who  shall  not  be  construed as representing any of the other
shareholders  of Seller), each such person being a shareholder in Seller, on the
one  hand,  and (b) Bluegate Corporation, a Nevada corporation ("Bluegate"), and
Trilliant  Technology  Group,  Inc.  ("Purchaser"),  a  Nevada corporation and a
subsidiary  of  Bluegate,  on  the  other  hand.

                                    RECITALS:

     WHEREAS,  for  the  purchase  price  provided for herein and subject to the
terms,  provisions and conditions set forth herein, Purchaser desires to acquire
from  Seller  full  right,  title  and  interest  in  and to all of the personal
property  of every kind or nature used in the business of Seller (the "Assets"),
including,  without  limitation,  the  personal  property  that  is  more  fully
described  in  ARTICLE  ONE  below  but  not  including the "Excluded Assets" as
defined  hereinafter,  free  and clear of any security interest, lien, mortgage,
encumbrance,  claim,  or  limitation  or  restriction  on  the  transfer thereof
(collectively,  "Encumbrances"),  except  as  set forth on Schedule 2.7 attached
hereto;  and

     WHEREAS,  for  the  purchase  price  provided for herein and subject to the
terms,  provisions  and  conditions set forth herein, Seller desires to sell the
Assets  to  Purchaser;

                                   AGREEMENT:

     NOW,  THEREFORE,  in  consideration  of  the  mutual  promises,  covenants,
agreements,  representations  and  warranties  set forth hereinafter, $10.00 and
other  good and valuable consideration (the receipt, adequacy and sufficiency of
which  each  of Seller, Shareholder, Bluegate and Purchaser hereby acknowledges)
and  subject  to  the  terms,  provisions and conditions hereof, each of Seller,
Shareholder,  Bluegate  and  Purchaser  hereby  agrees  as  follows:

                                  ARTICLE ONE
                          SALE AND PURCHASE OF ASSETS

     1.1     Sale  and  Purchase of Assets.  In consideration of the issuance of
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the  Bluegate  Common Stock to Seller pursuant to Section 1.3 below, Seller does
hereby assign, transfer and convey to Purchaser (without any further act or deed
except  as otherwise indicated herein), full right, title and interest in and to
all  of  the  Assets,  and Purchaser does hereby acquire and receive full right,
title  and  interest  in  and  to the Assets, wherever located and regardless of
whether  or  not  reflected on Seller's books and records, free and clear of any
Encumbrances.  Without  any  limitation  on  anything  stated  above, the Assets
consist  of  all  of  the  following:

          (a)     All  machinery,  equipment,  computer  equipment,  appliances,
     motor  vehicles,  fixtures,  furniture,  furnishings  and  other  tangible
     personal  property,  of  every  kind  and  description,  owned  by  Seller,
     including, without limitation, those items listed on Schedule 1.1(a) hereto
     (in  connection  with  the  transfer of any motor vehicles that are Assets,
     Seller  has  endorsed  and  delivered  to  Purchaser  certificates of title
     respecting  the  same);

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          (b)     All  inventories  of raw materials, work-in--process, finished
     products,  supplies,  tools,  spare  parts,  and  shipping  containers  and
     materials,  held  for  use  in  Seller's  business,  including,  without
     limitation,  those  items  listed  on  Schedule  1.1(b)  hereto;

          (c)     All  rights  of Seller in, to and under any and all contracts,
     agreements,  commitments,  leases,  licenses,  and  franchises  (including,
     without  limitation,  those  pertaining to suppliers, customers, employees,
     equipment and motor vehicles), to which Seller is a party or the Assets are
     subject,  including,  without  limitation,  those  items listed on Schedule
     1.1(c)  hereto;

          (d)     All  cash, cash equivalents, deposits in transit and interests
     in  bank  accounts  of  Seller, all accounts receivable owed to Seller (the
     "Accounts  Receivable"), and all bills, notes, and securities of Seller, as
     of  the  date  of  the  completion  of  the sale and purchase of the Assets
     provided  for  hereby, including, without limitation, those items listed on
     Schedule  1.1(d)  hereto;

          (e)     All  of  Seller's  computer  programs and software, including,
     without  limitation,  those  items  listed  on  Schedule  1.1(e)  hereto;

          (f)     All telephone and facsimile numbers (local and toll free), all
     internet  domain sites, all e-mail, internet and website addresses, and all
     mailboxes  and  lockboxes  used  by  Seller, including, without limitation,
     those  items  listed  on  Schedule  1.1(f)  hereto;

          (g)     To  the  extent  that they may be lawfully transferred, all of
     Seller's  licenses,  permits,  certificates  of  authority,  variances,
     authorizations,  approvals,  registrations, franchises and similar consents
     granted or issued by any governmental authority (including applications for
     any  of  the  preceding) denoted as transferable on Schedule 1.1(g) hereto;

          (h)     All  records  of Seller's business in whatever form (copies of
     which  Seller  may  retain  at its cost), including accounting records, tax
     records,  property  records, personnel records, and credit records, and all
     of  Seller's  customer  lists, supplier lists, catalogs, and brochures; and

          (i)     All  of  Seller's Intellectual Property (as defined in Section
     2.10), and any and all other intangible property or rights whatsoever owned
     by  Seller  and  the  goodwill  of  Seller's  business  symbolized  by such
     Intellectual  Property  (in  connection with the transfer of the preceding,
     Seller  executed  all additional transfer documents requested by Purchaser)
     including,  without  limitation,  those  items  listed  on  Schedule 1.1(i)
     hereto.

     1.2     Excluded Assets.  Seller is not selling to Purchaser, and Purchaser
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is  not  acquiring,  any of the items listed on Schedule 1.2 hereto, which items
shall  not  constitute  "Assets"  for  any

<PAGE>
purpose  hereof.

     1.3     Purchase  Price,  and  Payment,  Adjustment and Allocation Thereof.
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          (a)     The  aggregate  purchase  price  for the Assets (the "Purchase
     Price")  shall  be  composed  of (i) an initial stock payment consisting of
     151,065  shares  of Bluegate's common stock ("Bluegate Common Stock"), (ii)
     the  contingent  issuance  of  additional  shares  of Bluegate Common Stock
     pursuant  to  Section  1.3(b) immediately below, (iii) a promissory note in
     the  form  of  Exhibit  1.3(a)  hereto  in the original principal amount of
     $136,033.49  (the  "Acquisition  Promissory  Note"), all the proceeds to be
     received  by  Seller on the payment thereof to be used by Seller to satisfy
     outstanding  indebtedness  so  that  Seller  will  have  no  outstanding
     indebtedness  after  the  use  of  the  proceeds as aforesaid, and (iv) the
     royalty  payments  provided  for  in  Section  1.3(c)  immediately  below.

          (b)     (i)     For  purposes  of  this Section 1.3(b) relating to the
          Contingent Stock Issuance, the following terms shall have the meanings
          respectively  assigned  to  them  immediately  below:

               "Contingent  Stock Issuance" shall mean one of the two contingent
               stock issuances provided for by this Section 1.3(b) consisting of
               shares  of  Bluegate  Common  Stock.

               "First  Yearly  Period" shall mean the year commencing on October
               1,  2005  and  ending  on  September  30,  2006.

               "Second  Yearly Period" shall mean the year commencing on October
               1,  2006  and  ending  on  September  30,  2007.

               "Revenues"  shall mean all revenues of Purchaser for the relevant
               period  of  time (other than revenues derived from the Stipulated
               Software  as  defined  in Section 1.3 (c) below), as reflected on
               the  financial  statements  of Purchaser prepared in the ordinary
               course  of  business  in  accordance  with  generally  accepted
               accounting  principles.

               "Alternative  Percentage"  shall  mean the percentage obtained by
               dividing  the  Revenues for either the First Yearly Period or the
               Second  Yearly  Period  (as  the  case  may  be) by $1.3 million.

               (ii)     If  Revenues for the First Yearly Period equal or exceed
          $1.3  million,  then  Seller  shall  be entitled to a Contingent Stock
          Issuance  consisting  of  407,407  shares of Bluegate Common Stock. If
          Revenues  for the First Yearly Period are less than $1.3 million, then
          Seller  shall be entitled to a Contingent Stock Issuance consisting of
          a  number  of  shares  of  Bluegate  Common Stock equal to the product
          obtained  by  multiplying  407,407  times

<PAGE>
          the  Alternative  Percentage  computed  for the First Yearly Period. A
          stock  certificate representing the Contingent Stock Issuance provided
          for  by this Section 1.3(b)(ii) shall be delivered to Seller within 45
          days  after  the  end  of  the  First  Yearly  Period.

               (iii)     If  Revenues  for  the  Second  Yearly  Period equal or
          exceed  $1.3  million,  then  Seller shall be entitled to a Contingent
          Stock  Issuance consisting of 419,753 shares of Bluegate Common Stock.
          If  Revenues  for the Second Yearly Period are less than $1.3 million,
          then  Seller  shall  be  entitled  to  a  Contingent  Stock  Issuance
          consisting of a number of shares of Bluegate Common Stock equal to the
          product  obtained  by  multiplying  419,753  times  the  Alternative
          Percentage  computed for the Second Yearly Period. A stock certificate
          representing  the  Contingent  Stock  Issuance  provided  for  by this
          Section 1.3(b)(iiii) shall be delivered to Seller within 45 days after
          the  end  of  the  Second  Yearly  Period.

               (iv)     During  the  First  Yearly  Period and the Second Yearly
          Period,  (A) Purchaser shall be maintained as a separate subsidiary of
          Bluegate,  and  Bluegate  shall  deal,  and  shall  cause  its  other
          subsidiaries  to  deal, with Purchaser on terms no less favorable than
          it  makes  available  to  unrelated  third  parties,  (B) the Board of
          Directors  of  Purchaser  shall be composed of three persons who shall
          include  William  E.  Koehler, Larry Walker and a Bluegate nominee, or
          such  other  persons  nominated  by  a  majority  of  the  Seller's
          shareholders  (based  on  their  stock  ownership in Seller), and such
          Board  of  Directors  shall  be  entitled  to  manage  the business of
          Purchaser,  (C)  books  and  records  covering  all  of  Purchaser's
          operations  shall  be maintained in accordance with generally accepted
          accounting  principles,  and  each  of  Bluegate,  Seller  and  their
          respective  independent  accountants  shall  have  the  right,  upon
          reasonable  request,  to review these books and records during regular
          business hours, (D) neither Bluegate nor any of its other subsidiaries
          shall  directly  or  indirectly  engage  in  any  business  previously
          conducted  by  Seller  immediately  prior  to the date hereof, and (E)
          Bluegate shall pay to Purchaser, for services rendered by Purchaser to
          Bluegate,  the same charges that Purchaser customarily makes available
          to  its  best  customers.

               (v)     In  the  event  of  a "Change in Control" (as hereinafter
          defined), Seller shall be entitled to (A) the maximum number of shares
          of  Bluegate  Common  Stock  that  may  be  issued pursuant to Section
          1.3(b)(ii)  and  Section  1.3(b)(iii), if the Change in Control occurs
          during the First Yearly Period, or (B) the maximum number of shares of
          Bluegate  Common  Stock  that  may  be  issued  pursuant  to  Section
          1.3(b)(iii),  if the Change in Control occurs during the Second Yearly
          Period.  For  purposes  of this Agreement, a "Change in Control" shall
          mean  the  occurrence  of  any  of  the  following events: (I) Manfred
          Sternberg's  failure  to  serve  as  Chairman  of  Bluegate's Board of
          Directors  for  any  reason  at  any  time

<PAGE>
          prior  to March 14, 2006, the date marking the end of six months after
          the  date of this Agreement, or the individuals constituting the Board
          of  Directors  of  Bluegate  as  of  the  date  of this Agreement (the
          "Incumbent  Board")  cease  for  any  reason  to constitute at least a
          majority  of  the  Board;  provided, however, that if the election, or
          nomination  for  election  by  Bluegate's  stockholders,  of  any  new
          director  was  approved  by  a  vote  of  at  least  a majority of the
          Incumbent Board, such new director shall be considered a member of the
          Incumbent  Board;  (II)  an  acquisition  of  any voting securities of
          Bluegate  (the  "Voting  Securities")  by  any  "person"  (as the term
          "person" is used for purposes of Section 13(d) or Section 14(d) of the
          Securities  Exchange  Act  of  1934,  as  amended  (the  "1934  Act"))
          immediately after which such person has "beneficial ownership" (within
          the  meaning  of  Rule 13d-3 promulgated under the 1934 Act) of 20% or
          more  of  the  combined  voting  power  of Bluegate's then outstanding
          Voting Securities unless such acquisition was approved by a vote of at
          least  a  majority  of  the  Incumbent Board; or (III) approval by the
          stockholders  of  Bluegate  of:  (x)  a  merger,  consolidation, share
          exchange or reorganization involving Bluegate, unless the stockholders
          of  Bluegate,  immediately  before  such  merger, consolidation, share
          exchange  or  reorganization,  own, directly or indirectly immediately
          following  such  merger,  consolidation,  share  exchange  or
          reorganization,  at  least  80%  of  the  combined voting power of the
          outstanding Voting Securities of the corporation that is the successor
          in  such  merger,  consolidation,  share exchange or reorganization in
          substantially  the  same  proportion  as their ownership of the Voting
          Securities  immediately  before  such  merger,  consolidation,  share
          exchange  or reorganization; (y) a complete liquidation or dissolution
          of  Bluegate; or (z) an agreement for the sale or other disposition of
          all  or  substantially  all of the assets of Bluegate. The shares that
          become vested pursuant to this Section 1.3(b)(v) or such consideration
          that  is  received or to be received with respect to such shares shall
          be  held  by Bluegate in escrow pursuant to the other terms hereof and
          shall be delivered only at the time that the shares that become vested
          pursuant  to  this  Section  1.3(b)(v)  would have been delivered if a
          Change  in  Control  had  not  occurred  but only then if an event for
          indemnification  under  Section  6.2  hereof  has  not  then  arisen.

               (vi)     [INTENTIONALLY  OMITTED]

               (vii)     If  the outstanding shares of the Bluegate Common Stock
          shall  be  subdivided into a greater number of shares or a dividend in
          Bluegate  Common  Stock  shall  be  paid in respect of Bluegate Common
          Stock  or  if the outstanding shares of Bluegate Common Stock shall be
          combined  into  a  smaller  number  of shares, the number of shares of
          Bluegate  Common  Stock  otherwise  to  be  issued pursuant to Section
          1.3(b)(ii)  or  Section  1.3(b)(iii),  including  in  cases in which a
          Change  of  Control has occurred, shall be adjusted by multiplying the
          number  of  shares otherwise to be issued by a fraction, the numerator
          of  which  shall  be  the  number  of  shares  of  the

<PAGE>
          Bluegate  Common  Stock  outstanding  immediately  after the split-up,
          stock  dividend  or  combination  (on  an  undiluted  basis),  and the
          denominator  of  which  shall  be the number of shares of the Bluegate
          Common  Stock  outstanding  immediately  prior  to the split-up, stock
          dividend  or  combination  (on  an  undiluted  basis).

          (c)     (i)     For  purposes  of  this Section 1.3(c) relating to the
          Royalty,  the  following  terms  shall  have the meanings respectively
          assigned  to  them  immediately  below:

               "Stipulated  Software"  shall  mean  the following three software
               products  heretofore owned by Seller: eCast, LTMS, and Electronic
               Patient  Medical  Record  Application.

               "Stipulated  Software  Revenues"  shall  mean  all  revenues  of
               Purchaser  derived from the Stipulated Software during either the
               First  Yearly Period or the Second Yearly Period, as reflected on
               the  financial  statements  of Purchaser prepared in the ordinary
               course  of  business  in  accordance  with  generally  accepted
               accounting  principles.

               "Royalty"  shall  mean  the  royalty provided for by this Section
               1.3(c).

               (ii)     Once  Stipulated Software Revenues totaling $1.0 million
          dollars  have  been realized on or before the end of the Second Yearly
          Period, Seller shall be entitled to a royalty (the "Royalty") equal to
          10% of all Stipulated Software Revenues realized before the end of the
          Second  Yearly  Period  exceeding  $1.0  million dollars. Whenever the
          Royalty is earned with respect to a particular month, the Royalty with
          respect  to  such  month shall be paid within 30 days after the end of
          such  month.

          (d)     The  Purchase  Price  shall  be  allocated  among the items or
     classes  of  the  Assets  for  all  tax  purposes  in  accordance  with the
     allocation  schedule  attached  hereto  as  Schedule  1.3(d).  Seller  and
     Purchaser  agree  that they shall prepare and file their respective federal
     and  any  state  or  local income tax returns, and any sales tax returns or
     other  filings,  based  on such allocation of the Purchase Price, and shall
     not  take  a  position  in  any  tax  proceeding,  tax  audit  or otherwise
     inconsistent  with  such  allocation.

     1.4     Assumed  Liabilities.  Purchaser  hereby  agrees  to  assume and be
             --------------------
obligated to pay, perform or discharge only those liabilities that are expressly
set  forth  on  Schedule  1.4  hereto,  if  any  (referred to hereinafter as the
"Assumed Liabilities").  Purchaser assumes no obligations, liabilities and debts
other  than the Assumed Liabilities.  Seller agrees to pay or perform timely any
and  all obligations, liabilities and debts of Seller other than for the Assumed
Liabilities.

<PAGE>
     1.5     Consents.  Seller  shall  use  its best efforts to obtain any third
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party  consents  necessary  to sell the Assets to Purchaser.  To the extent that
any  of  the  Assets are not assignable without the consent of another party and
such  consent  has not been obtained on or prior to the date hereof, such Assets
shall  not  be  assigned  or  attempted  to  be  assigned  if such assignment or
attempted  assignment would constitute a breach thereof.  While Seller is trying
to  procure  all necessary consents, Seller and Purchaser shall cooperate in any
reasonable  arrangements  designed  to  provide to Purchaser the benefits of any
such  Assets, including enforcement at the cost and for the account of Purchaser
of any and all rights of Seller against the other party thereto arising out of a
cancellation  or  breach  by  such  other  party  or  otherwise.  If any consent
necessary  to  sell  the  Assets to Purchaser is obtained after the date of this
Agreement,  then  the  related  Asset  not  previously assigned pursuant to this
Section  1.5  shall  be  immediately  assigned  upon procurement of such consent
without  any  further  act  or  deed.

     1.6     Seller's  Deliveries.  Prior  to  or on the date hereof, Seller and
             --------------------
the  Shareholder  (as  the  case  may  be)  delivered:

          (a)     Such deeds, bills of sale, covenants of warranty, assignments,
     endorsements,  consents  and  other  good  and  sufficient  instruments and
     documents  of  conveyance and transfer in a form satisfactory to Seller and
     Purchaser,  and  necessary  documents  of  title, as shall be necessary and
     effective  to convey, transfer and assign to, and vest in, Purchaser all of
     Seller's  right,  title  and  interest  in  and  to  the  Assets;

          (b)     Evidence  satisfactory  to Purchaser that any and all security
     interests  and  liens  on  the Assets (other than those being assumed) have
     been  released;

          (c)     Copies of all required third party consents to the sale of the
     Assets  that  are  required  and  have  been  obtained;

          (d)     All  of the agreements, contracts, commitments, leases, plans,
     bids,  quotations,  proposals,  licenses,  permits,  authorizations,
     instruments,  computer programs and software, manuals and guidebooks, price
     books  and  price  lists,  customer  lists,  supplier lists, sales records,
     files,  correspondence,  and other documents, books, records, papers, files
     and  data  belonging  to  Seller  which  are  part  of  the  Assets;

          (e)     Covenants Not to Compete in the form of Exhibit 1.6(e) hereto,
     one  executed  by each of Seller and each of the persons whose names appear
     on  Schedule  1.6(e)  hereto;

          (f)     Employment  Agreements  in  the form of Exhibit 1.6(f) hereto,
     one  executed in favor of each person whose name appears on Schedule 1.6(f)
     hereto  and each one providing for employment with Purchaser or Bluegate as
     indicated  therein  of  the  person who is the employee thereunder, for the
     salary  and period of time indicated on Schedule 1.6(f) hereto with respect
     to  such  person  (such  Employment

<PAGE>
     Agreements  are  referred  to  hereinafter as the "Employment Agreements");

          (g)     A  copy  of  Seller's  Certificate  of  Incorporation  and all
     amendments  thereto  as  in  effect as of the date hereof (certified by the
     appropriate  state official) and a copy of Seller's Bylaws as amended as of
     the  date  hereof  (certified  by  an  appropriate  officer  of  Seller);

          (h)     A copy of all of the resolutions adopted by Seller's directors
     and  shareholders  relating  to  the  transactions  contemplated  by  this
     Agreement,  certified  on  the date hereof to be complete and correct by an
     appropriate  officer  of  Seller;  and

          (i)     Actual  possession  and  operating  control  of  the  Assets.

     1.7     Purchaser's  Deliveries.  Prior to or on the date hereof, Purchaser
             -----------------------
and  Bluegate  (as  the  case  may  be)  delivered:

          (a)     A stock certificate representing the initial stock issuance of
     shares  of  Bluegate  Common  Stock  pursuant  to  Section 1.3(a)(i) above;
     provided,  however  that  this  stock certificate was delivered into escrow
     with  Bluegate  to  be held as security for the indemnification obligations
     provided  for in Section 6.2 hereof and (to secure such obligations) Seller
     hereby  grants  to  Purchaser  and  Bluegate  a  security interest in and a
     general  lien upon the shares represented by such stock certificate as well
     as  all other shares of Bluegate Common Stock to be issued pursuant hereto.
     Bluegate  shall  hold such stock certificate for one year after the date of
     this  Agreement and shall release such stock certificate to Seller promptly
     thereafter  provided  that  no  event for indemnification under Section 6.2
     hereof  has  then arisen, but if an event for indemnification under Section
     6.2  hereof  has arisen prior to the end of one year after the date of this
     Agreement, Bluegate shall continue to hold such stock certificate until the
     matter  giving  rise  to  indemnification under Section 6.2 hereof has been
     full  resolved  and  (if  necessary)  adjudicated;

          (b)     The  Employment  Agreements as contemplated by Section 1.6(f);

          (c)     A  Registration Rights Agreement in the form of Exhibit 1.7(d)
     hereto  pursuant  to  which  Bluegate  grants  to  Seller  "piggy  back"
     registration  rights  with  respect  to the shares of Bluegate Common Stock
     being  issued  pursuant  to  this  Agreement;

          (d)     A copy of Purchaser's and Bluegate's charter documents and all
     amendments  thereto  as  in  effect as of the date hereof (certified by the
     appropriate  state official) and a copy of Purchaser's and Bluegate's other
     governing  documents  as  amended  as  of  the date hereof (certified by an
     appropriate  officer  of  Purchaser  and  Bluegate);  and

          (e)     Copies  of  all  of the resolutions adopted by Purchaser's and
     Bluegate's  boards of directors and, if necessary, stockholders relating to
     the  transactions

<PAGE>
     contemplated by this Agreement, certified on the date hereof to be complete
     and  correct  by  appropriate  officers  of  Purchaser  and  Bluegate;  and

          (f)     The  Acquisition  Promissory  Note.

                                   ARTICLE TWO
                           REPRESENTATIONS, WARRANTIES
                    AND AGREEMENTS OF SELLER AND SHAREHOLDER

     Each  of Seller and Shareholder, jointly and severally (except with respect
to the representations and warranties contained in Section 2.20, which are being
made  only  by  Seller),  hereby  represents,  warrants  and  agrees to and with
Purchaser  and  Bluegate  that:

     2.1     Organization  and Standing of Seller.  Seller is a corporation duly
             ------------------------------------
organized, validly existing, and in good standing under the laws of the state of
Texas.  Seller  has full requisite corporate power and authority to carry on its
business  as  it  is  now  being con-ducted, and to own, operate,  and lease the
properties  now  owned,  operated,  or  leased  by  it.  Except  as set forth on
Schedule  2.1  hereto,  Seller  is duly authorized and qualified to carry on its
business in the manner as now conducted in all states in which authorization and
qualification is required.  Schedule 2.1 sets forth a true, correct and complete
list  of all of the jurisdictions in which Seller is qualified to do business as
a  foreign  corporation.  Seller  has  made  available to Purchaser as requested
true,  correct  and  complete copies of the contents of Seller's minute book and
other  corporate  records,  which  are accurate in all material respects and set
forth  fully  and  fairly  all  of  Seller's  material  corporate  transactions.

     2.2     Capacity  to Enter into Agreement.  Seller and Shareholder has full
             ---------------------------------
right,  power  and authority to execute and deliver this Agreement and all other
agreements,  documents and instruments to be executed in connection herewith and
perform its, his or her obligations hereunder and thereunder.  The execution and
delivery  by  Seller and Shareholder that is an entity of this Agreement and all
other  agreements, documents and instruments to be executed by Seller and such a
Shareholder  in connection herewith have been authorized by all necessary entity
action  by  Seller  and  such  Shareholder.  When  this  Agreement and all other
agreements, documents and instruments to be executed by Seller and a Shareholder
in connection herewith are executed by Seller and such Shareholder and delivered
to  Purchaser,  this  Agreement  and  such  other  agreements,  documents  and
instruments  will constitute the valid and binding agreements of Seller and such
Shareholder  enforceable  against Seller and such Shareholder in accordance with
their  respective  terms,  except  as  such  enforceability may be limited by or
subject  to  (a) any bankruptcy, insolvency, reorganization, moratorium or other
similar  laws relating to creditors' rights generally and (b) general principles
of  equity  (regardless  of  whether  such  enforceability  is  considered  in a
proceeding  in  equity  or  at  law).

     2.3     Conflicts.  The  execution,  delivery,  and  consummation  of  the
             ---------
transactions contemplated by this  Agreement will not (a) violate, conflict with
or  result  in  the  breach  or  termination  of,  or  otherwise  give any other
contracting  party  the  right  to terminate, or constitute a default (by way of
substitution,  novation  or otherwise) under the terms of, any contract to which
Seller  or  any  Shareholder is a party or by which Seller or any Shareholder is
bound  or  by  which  any of the assets of Seller or any Shareholder is bound or
affected,  (b)  violate  any  judgment  against,  or

<PAGE>
binding  upon,  Seller  or  any  Shareholder or upon the assets of Seller or any
Shareholder,  (c) result in the creation of any lien, charge or encumbrance upon
any  assets  of  Seller  or  any  Shareholder  pursuant to the terms of any such
contract,  or  (d) violate any provision in the charter documents, bylaws or any
other  agreement  affecting  the  governance  and  control  of  Seller  or  any
Shareholder  that  is  an  entity.

     2.4     Consents.  No  consent,  approval  or  authorization  of,  or
             --------
declaration,  filing  or  registration  with,  any  governmental  or  regulatory
authority  or any court or other tribunal, and no consent or waiver of any party
to  any  material  contract  to which Seller or any Shareholder is a party or is
bound is required to be obtained by Seller or any Shareholder in connection with
the  execution,  delivery  and  performance  of  this Agreement by Seller or any
Shareholder, such that the failure to obtain or make any such consent, approval,
authorization,  declaration,  filing  or registration would materially adversely
affect  the  consummation  of  the  transactions contemplated by this Agreement.

     2.5     Financial  Statements.  Seller has delivered to Purchaser copies of
             ---------------------
the  following financial statements (hereinafter collectively referred to as the
"Financial  Statements"):  an  unaudited  balance sheet of Seller as of July 31,
2005 (the "Balance Sheet"), an unaudited profit and loss statement of Seller for
the  seven-month  period  ended  July 31, 2005, and unaudited balance sheets and
unaudited  statements of income of Seller as of and for the years ended December
31,  2004  and  December  31,  2003. Except as set forth on Schedule 2.5 hereto,

     (a)  The  Financial  Statements  present fairly the financial  condition of
          Seller  as  at  the  respective  dates  thereof,  and  the  results of
          operations  for the respective periods covered thereby, and  have been
          prepared  in accordance with generally accepted accounting  principles
          applied  on  a  consistent  basis;

     (b)  There  is  no  basis  for  the  assertion of any debts, liabilities or
          obligations  (whether  absolute,  accrued,  contingent,  fixed  or
          otherwise,  and  whether  due  or to become due) which might adversely
          affect  Purchaser's  ownership  of  the  Assets,  or  the  value, use,
          operation  or  enjoyment  of  the  Assets  by  Purchaser  which is not
          expressly  set  forth  on  the  Balance  Sheet;  and

     (c)  Seller is not a party to or bound either absolutely or on a contingent
          basis  by  any  agreement  of  guarantee,  surety,  indemnification,
          assumption  or  endorsement or any like commitment of the obligations,
          liabilities  or  indebtedness  of  any other person (whether absolute,
          accrued,  contingent, fixed or otherwise, and whether due or to become
          due),  which  is  not  expressly  set  forth  on  the  Balance  Sheet.

     2.6     Absence  of  Certain  Changes  and  Events.  Except as set forth on
             ------------------------------------------
Schedule  2.6  hereto,  since the date of the Balance Sheet, there has not been:

          (a)     Financial  Change.  Any  material  adverse  change  in  the
                  -----------------
financial  condition,  operations,  business  prospects,  employee  relations,
customer  relations, assets, liabilities (whether absolute, accrued, contingent,
fixed  or  otherwise,  and  whether  due  or  to  become  due)  or  income  of

<PAGE>
Seller, or the business  of Seller, from that shown on the Financial Statements;

          (b)     Distributions.  Any  declaration, setting aside, or payment of
                  -------------
any  distribution in respect of the equity interests in Seller, or any direct or
indirect  redemption,  purchase, or any other acquisition of any such interests;

          (c)     Incurrence of Debt.  Any borrowing of, or agreement  to borrow
                  ------------------
any  funds  or  any  debt,  obligation, or liability (whether absolute, accrued,
contingent,  fixed  or  otherwise, and whether due or to become due) incurred by
Seller  (whether  or  not  presently  outstanding)  except  current  liabilities
incurred,  and obligations under agreements  entered into in the ordinary course
of  business  consistent  with  past  practice;

          (d)     Creation  of  Liens.  Any  Encumbrance created on or in any of
                  -------------------
Seller's  properties  or  assets, except liens for current taxes not yet due and
payable;

          (e)     Assets.  Any sale, assignment, or transfer of Seller's assets,
                  ------
except  in  the  ordinary  course of business consistent with past practice, any
cancellation  of any debts or claims owed to Seller, any capital expenditures or
commitments  therefor exceeding in the aggregate $5,000, any damage, destruction
or  casualty  loss  exceeding in the aggregate $5,000 (whether or not covered by
insurance),  or  any  charitable  contributions  or  pledges;

          (f)     Material  Contracts.  Any  amendment,  modification  or
                  -------------------
Termination  of any contract, agreement, license, or arrangement to which Seller
is or was a party or to which any Assets are or were subject, which amendment or
termination has had, or may be reasonably expected to have, an adverse effect on
the  financial  condition,  properties,  assets,  liabilities (whether absolute,
accrued,  contingent,  fixed  or  otherwise,  and whether due or to become due),
income  or  business  of  Seller;  or

          (g)     Other  Material  Changes.  Any  other  material transaction by
                  ------------------------
Seller  or any other event or condition pertaining to,  and materially adversely
affecting  the  operations,  assets,  liabilities  (whether  absolute,  accrued,
contingent,  fixed  or  otherwise,  and whether due or to become due), income or
business  of  Seller.

     2.7     Assets.  Each  of  the schedules referenced in Section 1.1 is true,
             ------
correct  and  complete  in  all  material  respects as of the date hereof (or if
different,  as  of the date set forth thereon).  Except as set forth on Schedule
2.7  hereto,

     (a)  Seller  has,  and  upon the sale of the Assets to Purchaser, Purchaser
          will  receive,  good and indefeasible title to all of the Assets, free
          and  clear of all Encumbrances, except liens for current taxes not yet
          due  and  payable;

     (b)  All Assets constituting tangible personal property are in a good state
          of  repair  and operating condition,  ordinary wear and tear excepted;

     (c)  All  of  the inventories of Seller reflected on Schedule 1.1(b) hereto
          or  acquired thereafter (including, without limitation, raw materials,
          spare  parts

<PAGE>
          and  supplies,  work-in-process, finished goods) consist of items of a
          quality,  condition  and  quantity  useable and saleable in the normal
          course  of  business;  and

     (d)  All  of  the  Accounts  Receivable reflected Schedule 1.1(d) hereto or
          created  thereafter  are  valid, subsisting, and genuine, arose out of
          bona  fide  transactions and are current and collectible, subject to a
          $20,000  reserve  for  Accounts  Receivable  created  by  this Section
          2.7(d).

     2.8     Contracts.  Schedule  1.1(c)  contains a true, correct and complete
             ---------
list  of  Seller's contracts, agreements, commitments and leases, whether or not
made  in the ordinary course of business, that either (a) involve or may involve
aggregate  payments  by  or  to Seller exceeding $5,000 per year; (b) are not by
their  terms  terminable by Seller without premium or penalty within 60 or fewer
days  notice,  or  (c) otherwise materially adversely affect or, to Seller's and
Shareholder's  best  knowledge,  might materially adversely affect the financial
condition, property, assets, liabilities (whether absolute, accrued, contingent,
fixed  or  otherwise,  and  whether due or to become due), income or business of
Seller.  Except  as  set  forth  on  Schedule  2.8  hereto,

     (a)  All leases, contracts, agreements, arrangement or commitments to which
          Seller  is  a  party  or  the Assets are subject are in good standing,
          valid,  and  effective;  and

     (b)  There  is  not, under any such lease, contract, agreement, arrangement
          or commitment, any existing or prospective default or event of default
          by  Seller  or event which with notice or lapse of time, or both would
          constitute  a  default;  and,  to  Seller's  and  Shareholder's  best
          knowledge,  no  other  party  to  any such lease, contract, agreement,
          arrangement or commitment, is in default or breach thereof nor has any
          event  occurred  which with notice or lapse of time would constitute a
          breach  or  default  of  any  of  such  lease,  contract,  agreement,
          arrangement  or  commitment.

     2.9     Permits.  Schedule  1.1(g)  contains  a  true, correct and complete
             -------
list  of  Seller's licenses, permits and authorizations.  Except as set forth on
Schedule  2.9  hereto,

     (a)  Seller  holds  all  licenses,  permits  and authorizations required to
          carry  on  its  business,  and  all  such  licenses,  permits  and
          authorizations  are  in  good  standing;

     (b)  Seller is in full compliance with and not in default or violation with
          respect  to  any term or provision of any of its licenses, permits and
          authorizations;

     (c)  Seller  has  received  no  notice  of pending, threatened, or possible
          violation  or  investigation  in  connection  with,  or  loss  of, any
          license,  permit,  or  authorization  of  Seller;

     (d)  To  Seller's  and  Shareholder's best knowledge, no issuance of such a
          notice  is

<PAGE>
          being considered, and no facts or circumstances exist which could form
          the  basis  for  the  issuance  of  such  a  notice;  and

     (e)  No  license,  permit,  or  authorization  of Seller is affected by the
          transactions  provided  for  herein  or  contemplated  hereby.

     2.10     Intellectual  Property.  Schedule  1.1(i)  contains  a listing and
              ----------------------
summary description of all of Seller's patents, trademarks, service marks, trade
names,  trade  dress, logos, business names, copyrights, and registered designs,
and  registrations  and  applications  thereof,  trade  secrets and confidential
know-how,  business  information and other intellectual property, including, but
not  limited  to,  computer  software, databases, source code and documentation;
product  formulations;  drawings;  technical specifications; manufacturing data;
and  test  and  development  data  (the  foregoing  intellectual  property  is
collectively referred to hereinafter as the "Intellectual Property").  Except as
set  forth  on  Schedule  2.10  hereto,

     (a)  Seller possesses all intellectual property necessary to the conduct of
          its  businesses;

     (b)  The  loss  or  expiration  of  any  Intellectual  Property or group of
          Intellectual  Property would not have an adverse effect on the conduct
          of  its  businesses;

     (c)  No  such loss or expiration is pending or reasonably foreseeable or to
          Seller's  and  Shareholder's  best  knowledge,  threatened;

     (d)  Seller  owns  all  right,  title,  and  interest  in and to all of the
          Intellectual  Property;

     (e)  There have been no claims made against Seller for the assertion of the
          invalidity,  abuse,  misuse,  or  unenforceability of any Intellectual
          Property,  and  there  are  no  grounds  for  the  same;

     (f)  Seller  has not received a notice of conflict with the asserted rights
          of  others;  and

     (g)  The  conduct  of  Seller's business has not infringed on any rights of
          others  and,  to  Seller's  and Shareholder's best knowledge, no other
          person  has  infringed  the  Intellectual  Property.

     2.11     Employees.  Schedule  2.11 sets forth a true, correct and complete
              ---------
list  of all of the employees of Seller, their respective dates of hire, lengths
of  service,  positions  and  their  respective  salaries,  wage rates and bonus
schedules,  as  applicable.  Except  as  set  forth  on  Schedule  2.11  hereto,

     (a)  Seller  is  not  a  party  as  an employer to any employment contract,
          agreement or understanding which is not terminable at will without any
          penalty,  liquidated  damages  or  other  required  payment;

<PAGE>
     (b)  Seller  has  satisfied  (or  has  made  adequate  provision  for)  all
          salaries,  wages, unemployment insurance premiums, worker compensation
          payments,  income tax, FICA and other deductions and any like payments
          required  by law through and with respect to periods prior to the date
          hereof;

     (c)  Seller's  employees  are  not  unionized,  and  to  Seller's  and
          Shareholder's best knowledge, there have not been attempts to unionize
          them;  and

     (d)  There  have  not  been  any  unfair  labor practices complaints, labor
          difficulties  or  work  stoppages,  or threats thereof, relating to or
          affecting  any  of  Seller's  activities.

     2.12     Employee  Benefit  Plans.  Neither  Seller,  nor  any other person
              ------------------------
that,  together with Seller as of the relevant measuring date under the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), was or is required
to  be  treated  as  a single employer under Section 414 of the Internal Revenue
Code, has ever sponsored or contributed to any employee benefit plan, as defined
in  Section  3(3)  of  ERISA,  covering employees or former employees of Seller.

     2.13     Litigation.  Except  as  set  forth  on  Schedule  2.13  hereto,
              ----------

     (a)  Seller  and  the Assets are not subject to any pending, or to Seller's
          and Shareholder's best knowledge, threatened litigation, proceeding or
          administrative investigation of any kind or nature (including, without
          limitation,  any  matter  (including  audits)  involving  the Internal
          Revenue  Service,  or  other  federal  or  state  taxing authorities);

     (b)  Seller  is  not  in default with respect to any judgment, order, writ,
          injunction,  decree,  or  award applicable to  it or the Assets of any
          court  or  other  govern-mental  instrumentality  or arbitrator; and

     (c)  Neither  Seller  nor  any  Shareholder  has  been  served with any now
          pending  suit, action, or legal, administrative, arbitration, or other
          proceeding  or  govern-mental  investigation  in  which an unfavorable
          decision,  ruling,  or  finding  would  render  unlawful  or otherwise
          materially  adversely  affect  the  consummation  of  the transactions
          contemplated  by  this  Agreement,  and the Seller's and Shareholder's
          best  knowledge,  no  such  suit,  action,  or  legal, administrative,
          arbitration,  or  other  proceeding or govern-mental investigation has
          been  instituted  or  is  threatened.

     2.14     Compliance with Law.  Except as set forth on Schedule 2.14 hereto,
              -------------------

     (a)  Seller  is  not  in violation of, or in default with respect to, or in
          alleged  violation  of  or  alleged  default  with  respect  to,  any
          applicable  law,  rule,

<PAGE>
          regulation,  permit,  or  any  writ  or  decree  of  any  court or any
          governmental  commission,  board,  bureau, agency, or instrumentality,
          including  without  limitation,  any  laws,  ordinances,  rules,
          regulations, permits, or orders relating to the business of Seller, or
          the  business  operations  and  practices,  health  and  safety,  and
          employment  practices  of  Seller;

     (b)  Seller  is  not  delinquent  with  respect  to  any  report, filing or
          submission  required  to  be  filed with any govern-mental commission,
          board,  bureau,  agency,  or  instrumentality,  or  with  any  trade
          association  or  certification  organization  that  has  in  the  past
          certified  or  endorsed  the  business  of  Seller;  and

     (c)  Seller-  is  not  delinquent  with respect to any reports,  filings or
          submissions  required  by private covenants or agreements  to which it
          is  a  party.

     2.15     Taxes.  Seller  has  filed,  when  due,  with  all  appropriate
              -----
governmental agencies, all tax returns, estimates, reports, and statements to be
filed by it (collectively, the "Returns").  Except as set forth on Schedule 2.15
hereto,

     (a)  Each  of  the  Returns  is  true, complete, proper and accurate in all
          respects;

     (b)  Seller  has  paid,  when  due and payable, all requisite income taxes,
          sales,  use, property and transfer taxes, levies, duties, licenses and
          registration  fees  and  charges of any nature whatsoever and workers'
          compensation  and unemployment taxes, including interest and penalties
          thereon.  Seller  has  withheld  all tax required to be withheld under
          applicable tax laws and regulations, and such withholdings have either
          been  paid  to  the  respective  governmental agencies or set aside in
          accounts  for  such  purpose;

     (c)  The  tax  provision  and  accruals  reflected in the Balance Sheet are
          adequate  to cover the liability at the date thereof for all taxes not
          yet due and payable, including, without limitation, all taxes based on
          income,  sales,  business,  or  assets,  as  well  as any other taxes;

     (d)  Seller  has  not  given  or  been  requested to give, or executed, any
          extension of time or waiver of any statute of limitations with respect
          to  federal, state, or other political subdivision income or other tax
          for  any  period;

     (e)  Seller  has not received any notice of deficiency or assessment issued
          or  proposed  deficiency or assessment by the Internal Revenue Service
          or  any  other  taxing  authority;

     (f)  There  is  no  pending  audit  or  inquiry  of  Seller, nor has Seller
          received  any  oral or written notice of any proposed audit or inquiry
          by  any  taxing  authority  or  jurisdiction;  and

<PAGE>
     (g)  Seller  has  delivered  to  Purchaser  as  requested true, correct and
          complete  copies  of  all  Returns.

     2.16     Insurance.  Schedule  2.16  contains  a true, correct and complete
              ---------
list  of all insurance policies either maintained by Seller or maintained by any
other  person which relates to Seller or the Assets in any manner as of the date
hereof  (collectively,  the  "Insurance  Policies").  Seller  has  heretofore
delivered  to  Purchaser  as  requested true, correct and complete copies of all
Insurance  Policies  requested.  Except  as  set  forth on Schedule 2.16 hereto,

     (a)  All  Insurance  Policies  are  still in full force and effect, and all
          premiums  due  thereon  have  been  paid;

     (b)  Seller  has  complied  in all material respects with the provisions of
          all  Insurance  Policies;

     (c)  No claim is pending under any of the Insurance Policies, except in the
          ordinary  course  of  business  and  in  an  amount less than $10,000;

     (d)  Seller has not asserted any claims in excess of $10,000 per occurrence
          under  any  of  the  Insurance  Policies  during the three-year period
          immediately  preceding  the  date  hereof;

     (e)  There  are  no  outstanding  requirements  or  recommendations  by any
          insurance  company that issued any of the Insurance Policies or by any
          Board  of  Fire  Underwriters or other similar body exercising similar
          functions  or  by  any  governmental  authority  exercising  similar
          functions  which  requires or recommends any changes in the conduct of
          the  business  of,  or any repairs or other work to be done on or with
          respect  to  any  of  the  properties  or  assets  of,  Seller;  and

     (f)  Seller  has  not  received  any notice or other communication from any
          such  insurance  company within the three (3) years preceding the date
          hereof  canceling  or materially amending or materially increasing the
          annual  or other premiums payable under any of the Insurance Policies,
          and  (to  Seller's  and  Shareholder's  best  knowledge)  no  such
          cancellation,  amendment  or  increase  of  premiums  is  threatened.

     2.17     Environmental  Matters.  Except  as  set  forth  on  Schedule 2.17
              ----------------------
hereto,

     (a)  Seller  is  in compliance with all applicable federal, state and local
          laws  and  regulations relating to pollution control and environmental
          contamination  including, but not limited to, all laws and regulations
          governing  the  generation,  use,  collection,  treatment,  storage,
          transportation,  recovery, removal, discharge or disposal of Hazardous
          Materials  (as defined below) and all laws and regulations with regard
          to  record keeping, notification and reporting requirements respecting
          Hazardous  Materials;

<PAGE>
     (b)  Seller  has  not received any notice from any governmental agency with
          respect  to  any  alleged  violation  by it of any applicable federal,
          state  or  local  environmental  or  health  and  safety  statutes and
          regulations  in  connection  with Seller's operations, nor does Seller
          know  of  any  basis for any investigation or proceeding against it by
          any  federal,  state  or  local  environmental  or  health  and safety
          enforcement  agency  in connection with the operation of the business;

     (c)  Seller  has  not  received  notice  of  its  violation of, or has been
          subject to any administrative or judicial proceeding pursuant to, such
          laws  and  regulations, either now or at any time during the past five
          years,  and to Seller's and Shareholder's best knowledge, there are no
          such  threatened  or proposed violations with respect to such laws and
          regulations;

     (d)  There  are  no permits, licenses, consents, filings or other approvals
          necessary  or  required to be obtained or made by laws and regulations
          relating  to  Hazardous Material, pollution controls and environmental
          contamination  in  connection  with  Seller's  business;

     (e)  Seller  is  not a party to any contract or other agreement relating to
          the  storage,  transportation,  treatment  or  disposal  of  Hazardous
          Materials;

     (f)  There  are  no  claims or facts or circumstances that reasonably could
          form  the  basis  for  the  assertion  of  any  claim  relating  to
          environmental matters involving Seller, including, but not limited to,
          any  claim  arising  from  any  act  or  omission of Seller or past or
          present  practices  of  the  business  of  Seller,  or with respect to
          properties now or previously owned or leased by Seller, which could be
          asserted under the Comprehensive Environmental Response, Compensation,
          and  Liability  Act  of  1980,  42  U.S.  9601-9657 and any amendments
          thereto  ("CERLA"),  or the Resource Conservation and Recovery Act, 42
          U.S  6901-6987  and  any  amendments  thereto  ("RCRA"),  or any other
          federal,  state  or  local  environmental  statute  governing  the
          generation, use, treatment, disposal, discharge, ownership, operation,
          transportation  or  storage  of  Hazardous  Materials;

     (g)  Seller  is not subject to any remedial obligation under applicable law
          or  administrative order or decree pertaining to environmental, health
          or  safety  statutes  or  regulations,  including, without limitation,
          CERLA,  RCRA  or  any  similar  state  statute;

     (h)  To  the  best  of  Seller's  and Shareholder's knowledge, no Hazardous
          Material  or  other  substances known or suspected to pose a threat to
          health  or the environment have been disposed of or otherwise released
          on  or  near  any  real  property  or  improvements  of  Seller;

<PAGE>
     (i)  There  are  no off-site locations where Hazardous Materials associated
          in  any way with Seller have been generated, used, collected, treated,
          stored,  transported,  recycled,  discharged  or  disposed  of;  and

     (j)  To  the best of Seller's and Shareholder's knowledge and belief, after
          diligent  investigation  and  inquiry,  no  real  property is owned or
          leased  by  Seller that is on any federal or state "Superfund" list or
          subject  to  any  environmentally related liens, and no claim has been
          made  or,  to  Seller's  and Shareholder's best knowledge, threatened,
          alleging  damages  arising  from  any  Hazardous  Materials  or  other
          substances  known  or  suspected  to  pose  a  threat to health or the
          environment.

     The  term  "Hazardous Materials" shall mean materials, substances, waste or
by-products  defined  as  "hazardous  substances",  "hazardous wastes" or "solid
wastes"  in  CERLA,  RCRA  or  any  other  federal, state or local environmental
statute  or  regulation.  For  the purposes of this representation and warranty,
the  term  "claim"  shall  mean  any  and all claims, demands, causes of action,
suits,  proceedings,  administrative  proceedings,  losses,  judgments, decrees,
debts,  damages,  liabilities,  costs,  and  attorneys'  fees and other expenses
regarding  or  against  Seller  or  the  Assets.

     2.18     Finder's  Fees.  None  of Seller, any Shareholder or anyone acting
              --------------
on their behalf has employed any financial advisor, broker or finder or incurred
any  liability  for  any  financial  advisory,  brokerage  or  finder's  fee  or
commission  in  connection  with this Agreement or the transactions contemplated
hereby.

     2.19     Transactions  with  Affiliated  Parties.  Except  as  set forth on
              ---------------------------------------
Schedule  2.19  hereto,

     (a)  There  are no transactions currently engaged in between Seller and any
          of  its  Affiliates  (as  defined  below)  (other  than  arrangements
          governing  remuneration  for services provided as officers, directors,
          or employees). For purposes of this Agreement, "Affiliate" means, with
          respect  to any Person (as defined below), any other Person or Persons
          that  controls,  is controlled by or is under common control with such
          first Person, together with such other Person's or Persons' respective
          members,  managers,  partners,  venturers,  directors,  officers,
          shareholders,  agents, employees, spouses and legal representatives. A
          Person  shall  be  presumed  to have control of another Person when it
          possesses  the  power, directly or indirectly, to direct, or cause the
          direction of, the management or policies of such other Person, whether
          through  ownership  of  voting  securities, by contract, or otherwise.
          "Person"  means an individual, partnership, limited liability company,
          association,  corporation  or  other  entity;

     (b)  Except for the ownership of non-controlling interests in securities of
          corporations  the  shares of which are publicly traded, neither Seller
          nor  any Affiliate of Seller has any investment or ownership interest,
          directly,  indirectly, or beneficially, in any competitor or potential
          competitor,  major  supplier,  or  customer  of  Seller;  and

<PAGE>
     (c)  There  are  no  agreements  to which Seller is a party under which the
          transactions  contemplated  by this Agreement (i) will require payment
          by  Seller  or  Purchaser  to,  or  any  consent  or  waiver from, any
          Affiliate  of  Seller  or  Purchaser,  or  (ii)  will impose any other
          liability,  duty,  obligation  or  responsibility  to any Affiliate of
          Seller  under  any  such  agreement.

     2.20     Securities  Representations.  Seller  believes that it is familiar
              ---------------------------
with  the business and financial condition, properties, operations and prospects
of  Bluegate,  has been given full access to all material information concerning
the  condition,  properties,  operations  and  prospects of Bluegate (including,
without  limitation,  all  of  Bluegate's  filings  with the U.S. Securities and
Exchange  Commission),  and  it has had an opportunity to ask such questions of,
and  to  receive such information from, Bluegate as it has desired and to obtain
any  additional  information necessary to verify the accuracy of the information
and  data  received;  it  has  such knowledge, skill and experience in business,
financial  and investment matters so that it is capable of evaluating the merits
and  risks  of  an acquisition of the Bluegate Common Stock; it has reviewed its
financial  condition  and  commitments  and  that,  based  on such review, it is
satisfied that it (a) has adequate means of providing for contingencies, (b) has
no  present or contemplated future need to dispose of all or any of the Bluegate
Common  Stock  to  satisfy  existing  or  contemplated  under-takings,  needs or
indebtedness,  (c)  is  capable of bearing the economic risk of the ownership of
the  Bluegate  Common  Stock  for  the  indefinite future, and (d) has assets or
sources  of  income  which,  taken together, are more than sufficient so that it
could  bear  the  loss  of  the entire value of the Bluegate Common Stock; it is
acquiring  the  Bluegate Common Stock solely for its own beneficial account, for
investment  purposes,  and not with a view to, or for resale in connection with,
any  distribution  or  public  offering  of the Bluegate Common Stock within the
meaning  of  the  Securities  Act,  and  applicable  state  securities  laws; it
understands  that  the  Bluegate  Common Stock has not been registered under the
Securities  Act  of 1933 or any state securities laws and therefore the Bluegate
Common Stock is "restricted" under such laws; and it has not offered or sold any
portion  of  the  Bluegate  Common  Stock.

     2.21     Untrue  Statements.  This  Agreement,  the  schedules and exhibits
              ------------------
hereto,  and  all  other  documents  and  information furnished by Seller or its
representatives  pursuant  hereto  or  in connection herewith do not include any
untrue  statement  of a material fact or omit to state any material fact that is
necessary  to  make  the  statements  made  herein  and  therein not misleading.

                                  ARTICLE THREE
                   REPRESENTATIONS, WARRANTIES, AND AGREEMENTS
                                  OF PURCHASER

     Purchaser  hereby  represents,  warrants, and agrees to and with Seller and
Shareholder  that:

     3.1     Organization and Standing of Purchaser.  Purchaser is a corporation
             --------------------------------------
duly  organized,  validly  existing  and  in good standing under the laws of the
state  of  Nevada.  Purchaser has full requisite power and authority to carry on
its  business as it is now being con-ducted, and to own, operate,  and lease the
properties  now  owned, operated, or leased by it.  Purchaser is duly authorized
and  qualified  to  carry on its business in the manner as now conducted in each
state  in  which

<PAGE>
authorization  and  qualification  is  required.

     3.2     Capacity  to Enter into Agreement.  Purchaser has full right, power
             ---------------------------------
and  authority  to  execute and deliver this Agreement and all other agreements,
documents  and instruments to be executed in connection herewith and perform its
obligations  hereunder  and thereunder.  The execution and delivery by Purchaser
of  this  Agreement  and  all  other agreements, documents and instruments to be
executed  by  Purchaser  in  connection  herewith  have  been  authorized by all
necessary  action  by  Purchaser.  When this Agreement and all other agreements,
documents and instruments to be executed by Purchaser in connection herewith are
executed  by  Purchaser  and  delivered to Seller, this Agreement and such other
agreements,  documents  and  instruments  will  constitute the valid and binding
agreements  of  Purchaser  or  enforceable  against Purchaser in accordance with
their  respective  terms,  except  as  such  enforceability may be limited by or
subject  to  (a) any bankruptcy, insolvency, reorganization, moratorium or other
similar  laws relating to creditors' rights generally and (b) general principles
of  equity  (regardless  of  whether  such  enforceability  is  considered  in a
proceeding  in  equity  or  at  law).

     3.3     Conflicts.  The  execution,  delivery,  and  consummation  of  the
             ---------
transactions  contemplated by this Agreement will not (a) violate, conflict with
or  result  in  the  breach  or  termination  of,  or  otherwise  give any other
contracting  party  the  right  to terminate, or constitute a default (by way of
substitution,  novation  or otherwise) under the terms of, any contract to which
Purchaser  is  a  party  or  by  which Purchaser is bound or by which any of the
assets  of  Purchaser is bound or affected, (b) violate any judgment against, or
binding  upon,  Purchaser  or  upon  the  assets of Purchaser, (c) result in the
creation  of  any  lien,  charge  or  encumbrance  upon  any assets of Purchaser
pursuant  to the terms of any such contract, or (d) violate any provision in any
charter  document  of Purchaser, or any other agreement affecting the governance
and  control  of  Purchaser,  such  that  any  such violation, conflict, breach,
termination  or  creation  would materially adversely affect the consummation of
the  transactions  contemplated  by  this  Agreement.

     3.4     Consents.  No  consent,  approval  or  authorization  of,  or
             --------
declaration,  filing  or  registration  with,  any  governmental  or  regulatory
authority  or any court or other tribunal, and no consent or waiver of any party
to  any  material contract to which Purchaser is a party or is bound is required
to  be  obtained  by  Purchaser  in  connection with the execution, delivery and
performance  of  this Agreement by Purchaser, such that the failure to obtain or
make  any  such  consent,  approval,  authorization,  declaration,  filing  or
registration  would  materially  adversely  affect  the  consummation  of  the
transactions  contemplated  by  this  Agreement.

     3.5     Litigation.  Purchaser  has  not  been  served with any now pending
             ----------
suit,  action,  or  legal,  administrative,  arbitration, or other proceeding or
govern-mental investigation in which an unfavorable decision, ruling, or finding
would  render unlawful or otherwise materially adversely affect the consummation
of  the transactions contemplated by this Agreement, and the best of Purchaser's
knowledge, no such suit, action, or legal, administrative, arbitration, or other
proceeding  or govern-mental investigation has been instituted or is threatened.

     3.6     Finder's  Fees.  Neither Purchaser nor any one acting on its behalf
             --------------
has  employed  any financial advisor, broker or finder or incurred any liability
for  any  financial  advisory,  brokerage  or  finder's  fee  or  commission  in
connection  with  this  Agreement  or  the  transactions  contemplated

<PAGE>
hereby.

                                  ARTICLE FOUR
                  REPRESENTATIONS, WARRANTIES, AND AGREEMENTS
                                  OF BLUEGATE

     Bluegate  hereby  represents,  warrants,  and agrees to and with Seller and
Shareholder  that:

     4.1     Organization  and  Standing of Bluegate.  Bluegate is a corporation
             ---------------------------------------
duly  organized,  validly  existing  and  in good standing under the laws of the
state  of  Nevada.  Bluegate  has full requisite power and authority to carry on
its  business as it is now being con-ducted, and to own, operate,  and lease the
properties  now  owned,  operated, or leased by it.  Bluegate is duly authorized
and  qualified  to  carry on its business in the manner as now conducted in each
state  in  which  authorization  and  qualification  is  required.

     4.2     Capacity  to  Enter into Agreement.  Bluegate has full right, power
             ----------------------------------
and  authority  to  execute and deliver this Agreement and all other agreements,
documents  and instruments to be executed in connection herewith and perform its
obligations hereunder and thereunder.  The execution and delivery by Bluegate of
this  Agreement  and  all  other  agreements,  documents  and  instruments to be
executed  by  Bluegate  in  connection  herewith  have  been  authorized  by all
necessary  action  by  Bluegate.  When  this Agreement and all other agreements,
documents  and instruments to be executed by Bluegate in connection herewith are
executed  by  Bluegate  and  delivered  to Seller, this Agreement and such other
agreements,  documents  and  instruments  will  constitute the valid and binding
agreements  of Bluegate or enforceable against Bluegate in accordance with their
respective  terms, except as such enforceability may be limited by or subject to
(a) any bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating  to  creditors'  rights  generally and (b) general principles of equity
(regardless  of  whether  such  enforceability  is considered in a proceeding in
equity  or  at  law).

     4.3     Conflicts.  The  execution,  delivery,  and  consummation  of  the
             ---------
transactions  contemplated by this Agreement will not (a) violate, conflict with
or  result  in  the  breach  or  termination  of,  or  otherwise  give any other
contracting  party  the  right  to terminate, or constitute a default (by way of
substitution,  novation  or otherwise) under the terms of, any contract to which
Bluegate  is a party or by which Bluegate is bound or by which any of the assets
of  Bluegate  is bound or affected, (b) violate any judgment against, or binding
upon, Bluegate or upon the assets of Bluegate, (c) result in the creation of any
lien, charge or encumbrance upon any assets of Bluegate pursuant to the terms of
any  such  contract,  or  (d)  violate  any provision in any charter document of
Bluegate,  or  any  other  agreement  affecting  the  governance  and control of
Bluegate,  such  that  any  such  violation,  conflict,  breach,  termination or
creation  would materially adversely affect the consummation of the transactions
contemplated  by  this  Agreement.

     4.4     Consents.  No  consent,  approval  or  authorization  of,  or
             --------
declaration,  filing  or  registration  with,  any  governmental  or  regulatory
authority  or any court or other tribunal, and no consent or waiver of any party
to any material contract to which Bluegate is a party or is bound is required to
be  obtained  by  Bluegate  in  connection  with  the  execution,  delivery  and
performance  of  this  Agreement by Bluegate, such that the failure to obtain or
make  any  such  consent,  approval,

<PAGE>
authorization,  declaration,  filing  or registration would materially adversely
affect  the  consummation  of  the  transactions contemplated by this Agreement.

     4.5     Litigation.  Bluegate  has  not  been  served  with any now pending
             ----------
suit,  action,  or  legal,  administrative,  arbitration, or other proceeding or
govern-mental investigation in which an unfavorable decision, ruling, or finding
would  render unlawful or otherwise materially adversely affect the consummation
of  the  transactions contemplated by this Agreement, and the best of Bluegate's
knowledge, no such suit, action, or legal, administrative, arbitration, or other
proceeding  or govern-mental investigation has been instituted or is threatened.

     4.6     Finder's  Fees.  Neither  Bluegate nor any one acting on its behalf
             --------------
has  employed  any financial advisor, broker or finder or incurred any liability
for  any  financial  advisory,  brokerage  or  finder's  fee  or  commission  in
connection  with  this  Agreement  or  the  transactions  contemplated  hereby.

     4.7     Valid  Issuance.  Each  share of Bluegate Common Stock to be issued
             ---------------
to  Seller  in  connection  herewith  shall (when issued in accordance with this
Agreement)  be  duly  and  validly  authorized  and  issued,  fully  paid  and
non-assessable.

     4.8     SEC  Filings.  Since January 1, 2005, Bluegate has filed all forms,
             ------------
reports,  statements  and  other  documents  required  to be filed with the U.S.
Securities  and  Exchange  Commission, including, without limitation, all Annual
Reports  on  Form 10-KSB, Quarterly Reports on Form 10-QSB, all proxy statements
relating  to  meetings  of  shareholders  (whether  annual  or special), and all
Reports  on Form 8-K (all such filings being referred to hereinafter as the "SEC
Reports").  The  SEC  Reports  (i)  were  prepared  in  all material respects in
accordance  with  the  requirements  of  the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder applicable to such SEC Reports
and  (ii)  did not at the time they were filed and (with respect to registration
statements)  as  of  their  effective  dates,  contain any untrue statement of a
material  fact or omit 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.  Since the date of the
Company's  Quarterly  Reports on Form 10-QSB for the quarter ended June 30, 2005
(the  "Quarterly  Report"),  no  material  adverse  change  has  occurred in the
financial  condition or results of operations of the Company from that reflected
in  the  Quarterly  Report.

                                  ARTICLE FIVE
                               CERTAIN AGREEMENTS

     5.1     Further  Assurances.  Following  the  date hereof, each party shall
             -------------------
execute and deliver such other documents, and take such other actions, as may be
reasonably  requested  by  the other party to vest in Purchaser full right title
and  interest in and to the Assets, to complete the transactions contemplated by
this  Agreement  and  to allow each party fully to enjoy and exercise the rights
accorded  to  and  acquired  by  it  under this Agreement or any other agreement
entered  into  pursuant  hereto.

     5.2     Accounts  Receivable.  Upon  the  request  and  at  the  expense of
             --------------------
Purchaser,  Seller shall use reasonable and its best efforts to assist Purchaser
in  collecting  the  Accounts  Receivable.

<PAGE>
In  the  event that Seller shall receive any payment on the Accounts Receivable,
Seller  shall hold the amount received in trust for the benefit of Purchaser and
shall  immediately  remit  to  Purchaser  the  amount  received in its entirety.
Seller  shall  not  settle,  compromise  or  release  (in  whole or in part) any
Accounts  Receivable,  or  take any action or omit to take any action that would
adversely  affect  the Accounts Receivable, without the prior written consent of
Purchaser.

     5.3     Employees.
             ---------

          (a)  Seller  shall  pay  to  its employees all compensation, including
     salaries,  commissions,  bonuses,  deferred  compensation,  severance,
     insurance,  pensions,  profit  sharing,  vacation  pay,  sick pay and other
     compensation  or  benefits  to which they are entitled for periods prior to
     the  date  hereof.  Seller  shall  be  responsible  for  maintenance  and
     distribution  of  benefits  accrued  under  any  employee  benefit plan (as
     defined  in  ERISA) maintained by Seller pursuant to the provisions of such
     plans.  Purchaser  shall  assume neither any liability for any such accrued
     benefits  nor any fiduciary or administrative responsibility to account for
     or  dispose  of  any such accrued benefits under any employee benefit plans
     maintained  by  Seller.

          (b)  On the date hereof, Seller terminated the employment relationship
     with  such  of  its  employees  as  Purchaser  has expressed an interest in
     hiring,  and  Seller  paid to each such employee any and all amounts due to
     them  prior  to  or as a result of such termination that were not expressly
     assumed  by Purchaser. Purchaser is hereby expressly permitted by Seller to
     enter  into an employment relationship with each of these former employees.
     Purchaser  may,  in  its sole discretion, offer employment to any or all of
     the  former  employees of Seller. All such persons so employed by Purchaser
     are  referred  to  hereinafter  as  a  "Hired  Employee."

          (c)  All  claims  and  obligations under, pursuant to or in connection
     with  any welfare, medical, insurance, disability or other employee benefit
     plans of Seller or arising under any legal requirement applicable to Seller
     affecting  employees  of  Seller  incurred  on or before the date hereof or
     resulting  or arising from events or occurrences occurring or commencing on
     or  prior  to  the  date  hereof shall remain the responsibility of Seller,
     whether or not such employees are hired by Purchaser after the date hereof.
     Purchaser  shall  have  and  assume  no obligation or liability under or in
     connection  with any such plan and, shall assume no obligation with respect
     to  any pre-existing condition of any employee of Seller who is hired as an
     employee  of  Purchaser.

          (d)  Purchaser  shall:  (i) credit each Hired Employee with the amount
     of  vacation  time  permitted  to  be  accrued  by  employees  of Seller in
     accordance  with  Purchaser's  standard  practices  accrued  by  him or her
     through  and  including  the  date  of this Agreement; (ii) give each Hired
     Employee credit for such employee's past service with Seller as of the date
     of this Agreement for purposes of eligibility to participate in Purchaser's
     employee  welfare  benefit  plans  to the same extent as similarly situated
     employees  of  Purchaser;  (iii)  give  each Hired Employee credit for such
     employee's  past  service  with Seller as of the date of this Agreement for

<PAGE>
     purposes  of  eligibility and vesting under any 401(k) plan of Purchaser to
     the  same  extent  as  similarly situated employees of Purchaser; (iv) give
     each  Hired Employee credit for such employee's past service with Seller as
     of  the  date  of  this Agreement for any waiting periods under Purchaser's
     employee  welfare  benefit plans, including any group health and disability
     plans  to  the  same  extent  as similarly situated employees of Purchaser,
     except  to the extent such employees were subject to such limitations under
     the employee benefit plans of Seller and not subject any Hired Employees to
     any  limitations on benefits for any preexisting conditions; and (v) credit
     each  Hired  Employee under any group health plan for any deductible amount
     previously  met  by  such  Hired  Employee as of the date of this Agreement
     under  any  of  the group health plans of Seller for the plan year in which
     the  transfer  of  employment  occurs.

     5.4     Publicity.  The  parties  hereto  shall  jointly  prepare any press
             ---------
release or other public announcement relating to this Agreement, except that the
foregoing  shall  not  prevent  any  party  hereto or any affiliate thereof from
issuing  any  press  release  required  by  applicable  law.

     5.5     Loan.
             ----

     (a)  On  the  date  hereof, Bluegate entered into a credit arrangement with
          Purchaser  (the  "Loan"),  whereby Purchaser may borrow up to $150,000
          from  Bluegate; provided, however, that Bluegate shall not at any time
          be  required  to make advances pursuant to the Loan to the extent that
          the  total  amount  outstanding  under  the  Loan  would exceed 80% of
          Purchaser's Eligible Accounts as defined in Section 5.5(b) immediately
          below.  In  this  connection, as soon as possible but within five days
          after the end of each month during which amounts are outstanding under
          the  Loan,  Purchaser  shall deliver to Bluegate, under the cover of a
          signed Borrowing Base Certificate in the form of Exhibit 5.5-1 hereto,
          a  list of Purchaser's accounts receivable as of the end of such month
          and  an  aging  schedule  relating  thereto.  To  represent  the Loan,
          Purchaser  executed and delivered to Bluegate a promissory note in the
          form  attached  hereto as Exhibit 5.5-2. To secure the Loan, Purchaser
          executed and delivered to Bluegate a security agreement in the form of
          Exhibit  5.5-3  hereto  (the "Security Agreement") and, to perfect the
          security interest created thereby, a Form UCC-1 Financing Statement in
          the  form  of Exhibit 5.5-4 hereto. Whenever the Loan has been paid in
          full  and  no  party has any further obligations with respect thereto,
          Bluegate  shall  file  with  the  appropriate  governmental agencies a
          release  respecting the aforementioned Form UCC-1 Financing Statement.

     (b)  For  purposes  hereof  "Eligible  Accounts"  shall mean those accounts
          receivables  of  Purchaser  that  arise  in  the  ordinary  course  of
          Purchaser's  business,  that  are bona fide existing obligations, with
          respect  to which the service or property giving rise to such accounts
          receivables  has  been performed or delivered to the account debtor or
          to  the  account  debtor's  agent  for  immediate  shipment  to  and
          unconditional  acceptance  by  the account debtor, and with respect to
          which  purchaser  has  not  received  notice  of  actual  or  imminent
          insolvency  proceeding;  provided,  however,  that  Eligible

<PAGE>
          Accounts  shall  not  include  the  following:

          (i)  Accounts receivables of Purchaser that the related account debtor
               has  failed  to  pay  within  90  days  of  invoice  date;

          (ii) Accounts  receivables  of  Purchaser  with  respect to an account
               debtor,  50%  of whose accounts receivables owed to Purchaser the
               account  debtor has failed to pay within 90 days of invoice date;

          (iii)  Accounts  receivables  of  Purchaser with respect to an account
               debtor,  including  affiliates,  whose  total  obligations  to
               Purchaser exceed 25% of all accounts receivables of Purchaser, to
               the extent such obligations exceed the aforementioned percentage,
               except  as  approved  in  writing  by  Bluegate;

          (iv) Accounts  receivables  of  Purchaser  with  respect  to which the
               related  account  debtor  does  not  have  its principal place of
               business  in  the  United  States;

          (v)  Accounts  receivables  of  Purchaser  with  respect  to which the
               related account debtor is a federal, state, or local governmental
               entity  or  any  department,  agency, or instrumentality thereof;

          (vi) Accounts receivables of Purchaser with respect to which Purchaser
               is  liable  to  the account debtor, but only to the extent of any
               amounts  owing  to  the  account debtor (sometimes referred to as
               "contra"  accounts,  e.g.  accounts  payable,  customer deposits,
               credit  accounts  etc.);

          (vii)  Accounts receivables of Purchaser generated by demonstration or
               promotional  equipment, or with respect to which goods are placed
               on  consignment,  guaranteed  sale,  sale  or  return,  sale  on
               approval,  bill  and  hold, or other terms by reason of which the
               payment  by  the  account  debtor  may  be  conditional;

          (viii)  Accounts  receivables  of  Purchaser with respect to which the
               related  account  debtor  is  an affiliate, officer, employee, or
               agent  of  Purchaser;

          (ix) Accounts  receivables  of  Purchaser  with  respect  to which the
               related account debtor disputes liability or makes any claim with
               respect  thereto  as  to  which  Bluegate  believes,  in its sole
               discretion,  that  there  may be a basis for dispute (but only to
               the extent of the amount subject to such dispute or claim), or is
               subject  to  any  insolvency proceeding, or becomes insolvent, or
               goes  out  of  business;

          (x)  Accounts  receivables  of  Purchaser  subject  to  any  lien;

          (xi) Accounts  receivables  of Purchaser which are in whole or in part
               the  direct  or  indirect  proceeds  of  any  property, rights or
               licenses  to  the  extent  the  granting

<PAGE>
               of  a security interest therein to Bluegate (i) would be contrary
               to  applicable law or (ii) is prohibited by or would constitute a
               default  under any agreement or document governing such property,
               rights  or  licenses  (but only to the extent such prohibition is
               enforceable  as  against  the Bluegate under applicable law); and

         (xii) Accounts  receivables  of  Purchaser  the  collection  of  which
               Bluegate  reasonably  determines  after  reasonable  inquiry  and
               consultation  with  Purchaser  to  be  doubtful.

     5.6     Insurance.  Seller  agrees  that,  for  two years after the date of
             ---------
this  Agreement,  it shall (procure if necessary and) maintain in full force and
effect, with financially sound and reputable insurers, all forms of insurance of
the type maintained at any time by Seller within six months prior to the date of
this  Agreement  in  amounts  historically  maintained  by Seller.  All policies
evidencing all such insurance shall contain a standard endorsement providing for
payment  of  any  loss  to  Bluegate and shall provide for a minimum of ten (10)
days'  prior  written  notice  to  Bluegate  of  any cancellation.  Seller shall
furnish  Bluegate  with  certificates  or  other evidence of compliance with the
foregoing  insurance  provisions.  If  any  such  insurance policy expires or is
canceled  within  two  years  after  the  date  of this Agreement, at Bluegate's
option,  Bluegate  may  obtain replacement insurance which may, but need not, be
single interest insurance in favor of Bluegate and Bluegate may pay the premiums
thereunder,  and  all  payments  by  Bluegate  in  connection therewith shall be
indemnifiable  amount  covered  by  Section  6.2  hereof.  Bluegate  may  act as
attorney  for Seller and Seller hereby irrevocably appoints Bluegate as Seller's
true  and lawful attorney and agent-in-fact, with full power of substitution, in
Bluegate's  name or Seller's name or otherwise, but at Seller's cost and expense
and without notice to Seller, to undertake the action described in the preceding
sentence.

                                  ARTICLE SIX
                             SURVIVAL AND INDEMNITY

     6.1     Survival  of  Representations  and  Warranties.  All  of  the
             ----------------------------------------------
representations  and  warranties made by the parties hereto in this Agreement or
pursuant  hereto,  shall  be continuing and shall survive the closing hereof and
the  consummation  of  the transactions contemplated hereby, notwithstanding any
investigation at any time made by or on behalf of any party hereto, for a period
of  two  years  after  the  date  of  this  Agreement.

     6.2     Indemnification  by  Seller  and  Shareholder.  Each  of Seller and
             ---------------------------------------------
Shareholder  shall,  jointly and severally, protect, indemnify and hold harmless
Purchaser  and Bluegate, and Purchaser's and Bluegate's shareholders, directors,
officers,  employees,  agents,  affiliates, successors and assigns, from any and
all  demands,  claims,  actions,  causes  of  actions,  lawsuits,  proceedings,
judgments,  losses,  damages,  injuries,  liabilities, obligations, expenses and
costs  (including  costs  of  litigation  and attorneys' fees), arising from any
breach  of any agreement, representation or warranty made by any of them in this
Agreement.  Seller  and Shareholder agree that Purchaser and Bluegate shall have
the  right  to  offset  any  indemnifiable amount arising under this Section 6.2
against  the  Royalty  to be paid pursuant to this Agreement or any stock issued
into  escrow  or  to  be issued pursuant to this Agreement or such consideration
that  is  received  or  to  be  received  with  respect  to

<PAGE>
such  stock  in  connection with a Change in Control.  To the extent that Seller
and  Shareholder are found to be liable to the Purchaser and Bluegate under this
Section  6.2,  Seller and Shareholder shall be entitled to elect to satisfy such
liability  by  means  of  Bluegate Common Stock by giving written notice of such
election to Bluegate and by remitting to Bluegate a number of shares of Bluegate
Common  Stock  having  an  aggregate  market  value, as of the close of the date
preceding  the  notice required by this Section 6.2, equalling the amount of the
liability.  The  liability  of  Seller and Shareholder to Bluegate and Purchaser
hereunder  shall  be limited to the amount of the Royalty to be paid pursuant to
this  Agreement  after  the  date  that  the  liability  arose and the shares of
Bluegate Common Stock issued pursuant to this Agreement.  Seller and Shareholder
shall  have  no liability to Bluegate and Purchaser under this Section 6.2 until
the  amount  of  claims  for which Bluegate or Purchaser or both are entitled to
indemnification  from  Seller  and  Shareholder  hereunder  exceeds  $20,000.

     6.3     Indemnification  by  Purchaser.  Purchaser shall protect, indemnify
             ------------------------------
and  hold  harmless  Seller,  and  Seller's  shareholders,  directors, officers,
members,  managers,  and  Seller's employees, agents, affiliates, successors and
assigns, from any and all demands, claims, actions, causes of actions, lawsuits,
proceedings,  judgments,  losses,  damages,  injuries, liabilities, obligations,
expenses  and costs (including costs of litigation and attorneys' fees), arising
from  any breach of any agreement, representation or warranty made by it in this
Agreement.

     6.4     Indemnification by Bluegate.  Bluegate shall protect, indemnify and
             ---------------------------
hold  harmless  Seller, and Seller's shareholders, directors, officers, members,
managers,  and  Seller's  employees, agents, affiliates, successors and assigns,
from  any  and  all  demands,  claims,  actions,  causes  of  actions, lawsuits,
proceedings,  judgments,  losses,  damages,  injuries, liabilities, obligations,
expenses  and costs (including costs of litigation and attorneys' fees), arising
from  any breach of any agreement, representation or warranty made by it in this
Agreement.

     6.5     Special  Indemnification  by  Seller.  Seller  shall,  protect,
                      ---------------------------
indemnify  and  hold  harmless  Purchaser  and  Bluegate,  and  Purchaser's  and
Bluegate's  shareholders,  directors,  officers,  employees, agents, affiliates,
successors  and  assigns,  from  any and all demands, claims, actions, causes of
actions,  lawsuits,  proceedings,  judgments,  losses,  damages,  injuries,
liabilities,  obligations, expenses and costs (including costs of litigation and
attorneys'  fees),  arising from any claim asserted by Enron or any affiliate of
Enron relating to any preferential payment (as such concept is understood in the
bankruptcy  context)  made  or  allegedly  made  by  the claimant to Seller (the
"Claim").  Seller  agrees  that  Purchaser  and Bluegate shall have the right to
offset  any  indemnifiable  amount  arising  under  this Section 6.5 against the
Royalty to be paid pursuant to this Agreement or any stock issued into escrow or
to  be  issued pursuant to this Agreement or such consideration that is received
or  to  be  received  with  respect to such stock in connection with a Change in
Control.  Bluegate agrees to advance to Seller from time to time hereafter up to
$10,000  for  legal expenses hereafter incurred by Seller in connection with the
defense  of  the  Claim; provided, however, that any and all amounts so advanced
shall  constitute  an  indemnifiable  amount arising under this Section 6.5, and
Bluegate  shall  have  the right to offset provided for in this Section 6.5 with
respect  to  any  and  all  amounts  so  advanced.

                                  ARTICLE SEVEN
                                  MISCELLANEOUS

<PAGE>
     7.1     Notices.  Any  notices,  requests, demands, or other communications
             -------
herein  required  or  permitted  to  be  given  shall  be  in writing and may be
personally  served, sent by United States mail, sent by an overnight courier who
keeps  proper records regarding its deliveries, faxed or e-mailed.  Notice shall
be deemed to have been given if personally served, when served, or if mailed, on
the  third  business  day  after  deposit in the United States mail with postage
pre-paid  by  certified or registered mail and properly addressed, or if sent by
overnight  courier  as  aforesaid  with charges being billed to the sender, when
received  by  the  party being notified, or if faxed, when the person giving the
notice  receives  a  confirmation statement with all relevant details indicating
that  the  fax was properly received, or if e-mailed, when the person giving the
notice  receives  a  confirmation statement with all relevant details indicating
that  the  e-mail  was  properly  received.  As used in this Agreement, the term
"business day" means days other than Saturdays, Sundays, and holidays recognized
by  Federal  banks.  For purposes of this Agreement, the physical addresses, fax
numbers  and  e-mail  addresses  of  the  parties  hereto  shall be the physical
addresses,  fax numbers and e-mail addresses as set forth on the signature pages
of  this  Agreement.  Any party to be notified hereunder may change its physical
address,  fax  number and e-mail address by notifying each other party hereto in
writing  as  to  the  new  physical  address,  fax number and e-mail address for
sending  notices.

     7.2     Counterparts.  This  Agreement  may  be  executed  in any number of
             ------------
counterparts  and  each  such  counterpart  shall  be  deemed  to be an original
instrument, but all such  counterparts together shall constitute but one and the
same  instrument.

     7.3     Amendments  and  Waivers.  This Agreement may be amended, modified,
             ------------------------
or  superseded  only  by  written instrument executed by all parties hereto. Any
waiver  of  the  terms,  provisions,  agreements,  covenants,  representations,
warranties,  or  conditions  hereof  shall  be made only by a written instrument
executed and delivered by the party waiving compliance. The failure of any party
at  any time or times to require performance of any provision hereof shall in no
manner  affect  the  right  to  enforce  the same. No waiver by any party of any
condition,  or  of  the  breach  of  any  term, provision, agreements, covenant,
representation, or warranty contained in this Agreement in one or more instances
shall be deemed to be or construed as a further or continuing waiver of any such
condition  or  breach  or  a  waiver of any other condition or the breach of any
other  term,  provision,  agreements,  covenant,  representation,  or  warranty.

     7.4     Time  of  Essence.  Time  is  of the essence in the  performance of
             -----------------
this  Agreement.

     7.5     Captions.  The captions contained in this Agreement are  solely for
             --------
convenient  reference  and  shall  not  be  deemed  to  affect  the  meaning  or
interpretation  of  any  Article,  Section,  or  paragraph  hereof.

     7.6     Entire  Agreement.  This  Agreement  (including  the schedules  and
             -----------------
exhibits  hereto,  the  Financial  Statements,  and  all  supporting  agreements
referred  to  herein, all of which are by this reference fully incorporated into
this  agreement)  sets  forth  the  entire  agreement  and understanding of  the
parties  with  respect  to the transactions contemplated hereby, and  supersedes
all  prior  agreements, arrangements, and understandings relating to the subject
matter  hereof.

     7.7     Assignment, and Successors and Assigns.  No party hereto may assign
             --------------------------------------
any  of  its

<PAGE>
rights,  interests or obligations under this Agreement without the prior written
consent  of  the  other  parties.  Notwithstanding  the preceding, Purchaser may
assign  all or part of this Agreement and its rights hereunder to a wholly-owned
subsidiary  or  to  a  person  who  acquires  substantially all of the assets of
Purchaser  and  who  assumes  all  of  the  obligations  of Purchaser hereunder,
provided  in each such case that no such assignment shall release Purchaser from
its  duties and obligations hereunder. All of the terms, provisions, agreements,
covenants,  representations,  warranties, and conditions of this Agreement shall
be  binding  upon  and  shall  inure to the benefit of and be enforceable by the
parties  hereto  and  their  respective  heirs, legal representatives, permitted
assigns,  and  successors.

     7.8     Knowledge,  Gender,  and  Certain  References.  Whenever  a
             ---------------------------------------------
representation  or  warranty  made  herein  is  made to the best of any entity's
knowledge, such representation or warranty is based only on the actual knowledge
or  belief  of  the entity's management without any independent investigation on
the  part of such management or any other person although such management has no
reason  to  believe  that the representation or warranty made was not true as of
the  date  which  it  speaks.  Whenever from the context it appears appropriate,
each  term  stated  in  either the singular or the plural shall include both the
singular  and  the  plural,  and  pronouns stated in the masculine or the neuter
gender  shall  include  the  masculine, the feminine and the neuter gender.  The
terms  "hereof,"  "herein,"  or  "here-under" shall refer to this Agreement as a
whole  and  not  to  any  particular  Article,  Section,  or  paragraph  hereof.

     7.9     Applicable Law, Mandatory Venue, and Draftsmanship.  This Agreement
             --------------------------------------------------
has  been  executed  in  Harris County, Texas.  THIS AGREEMENT SHALL BE GOVERNED
EXCLUSIVELY  BY ITS TERMS AND BY THE LOCAL, INTERNAL LAWS OF THE STATE OF TEXAS.
The  parties  hereto  stipulate  and agree that the courts of the State of Texas
shall  have  in  personam  jurisdiction  for  any  claim,  lawsuit or proceeding
regarding  this  Agreement, and that mandatory venue for any such claim, lawsuit
or  proceeding  shall  be  in  any  state  or  federal  court  having  competent
jurisdiction  located  in  Harris  County,  Texas.  Each  party  hereto  hereby
acknowledges  and  agrees that it has consulted legal counsel in connection with
the negotiation of this Agreement and that it has bargaining power equal to that
of  the other parties hereto in connection with the negotiation and execution of
this Agreement.  Accordingly, the parties hereto agree that the rule of contract
construction  that  an  agreement shall be construed against the draftsman shall
have  no  application  in  the construction or interpretation of this Agreement.

     7.10     Severability.  If  any  term,  provision, agreements, covenant, or
              ------------
restriction  of  this Agreement is held by a court of competent  jurisdiction to
be  invalid,  void,  or  unenforceable, the remainder of the  terms, provisions,
agreements,  covenants  and  restrictions shall remain in  full force and effect
and  shall  in  no  way  be  affected,  impaired,  or  invalidated.

     7.11     Costs,  Expenses and Fees.  Each party hereto agrees hereby to pay
              -------------------------
all costs, expenses, and fees incurred by it in connection with the transactions
contemplated  hereby,  including,  without  limitation,  all  attorneys'  and
accountants'  fees.

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

<PAGE>
"SELLER"                                     "SHAREHOLDER"

TRILLIANT CORPORATION

By:__________________________________        ___________________________________

Name:______________________________          Name:     William  Koehler

Its:_________________________________

Address:    ________________________        Address:    ________________________

            ________________________                    ________________________

Fax  no:    ________________________         Fax  no:   ________________________

E-mail                                       E-mail
Address:    ________________________         Address:   ________________________

"BLUEGATE"                                   "PURCHASER"

BLUEGATE CORPORATION                         TRILLIANT TECHNOLOGY GROUP, INC.

By:_________________________________         By:________________________________
     Manfred Sternberg,
     Chief Executive Officer
     Name:______________________________

                                             Its:_______________________________

Address:     701 N. Post Oak Blvd.,          Address:     701 N. Post Oak Blvd.,
             Suite  630                                   Suite  630
             Houston,  Texas  77024                       Houston,  Texas  77024

Fax  no:     _______________________         Fax  no:     ______________________

E-mail                                       E-mail
Address:     _______________________         Address:     ______________________

<PAGE>
                                  SCHEDULE 1.2
                                 EXCLUDED ASSETS
                                 ---------------

1.   All  components  of  the aggregate purchase price for the Assets including,
     without  limitation,  (i)  the  initial stock payment consisting of 138,714
     shares  of  Bluegate  Common  Stock, (ii) the additional shares of Bluegate
     Common  Stock that may become issuable with respect to the Contingent Stock
     Issuance, (iii) the payments of principal of or interest on the Acquisition
     Promissory  Note, and (iv) the amounts that may become payable with respect
     to  the  Royalty.
2.   All  rights  and claims of Seller under any of Seller's insurance policies,
     except  as  otherwise  provided  in  Section  5.6  hereof;
3.   All  assets  of  any  of  Seller's  employee  benefit  plans;
4.   All  claims,  rights  and  interest  in and to any prepayment or refunds of
     federal,  provincial,  state  or  local franchise, income or other taxes or
     fees  of  any nature whatsoever which relate solely to the period up to and
     including  the  date  of  this  Agreement;
5.   All  rights of Seller under any contract, license, authorization, agreement
     or  commitment other than those creating or evidencing Assumed Liabilities;
6.   All rights that would accrue or will accrue to Seller under this Agreement;
     and
7.   All  of  Seller's  minute  books  and  other  books and records relating to
     internal  corporate matters, and all other books and records not related to
     the  business  conducted  with  the  Assets.
8.   385  Shares  of  Texas  Petrochemical  Stock (estimated worth $5,000) - Has
     never  been represented on the QuickBooks balance sheet. It is reflected on
     the  Balance  Sheet  in  Schedule  1.1  (d)  as  a  company  owned  asset.EMPLOYMENT AGREEMENT
                    BETWEEN BLUEGATE COMMUNICATIONS, INC. AND
                               WILLIAM E. KOEHLER

     This Employment agreement (the "Agreement") is made effective as of the 1st
day  of  September  2005,  by  and  between Bluegate, Inc., a Nevada corporation
("Bluegate"),  and  William  E.  Koehler  (the  "Executive").

     WHEREAS, The Executive is willing to be employed by Bluegate from and after
the  effective  date  on  the  basis  and terms and conditions set forth in this
Agreement.

     THEREFORE, upon the mutual promises and covenants of the parties, and other
good  and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged,  and  intending to be legally bound, the parties agree as follows:

1.   Employment.

     Bluegate  hereby  employs  the  Executive, and the Executive hereby accepts
     such  employment,  for  the period stated in section (3) below and upon the
     other  terms  and  conditions  herein  provided.

2.   Position  and  Duties.

     During the Employment Period the Executive agrees to serve as President and
     Chief  Operating Officer ("President and COO") of Bluegate. In his capacity
     of  President  and  COO,  the  Executive  will  perform  such  duties  and
     responsibilities  for  Bluegate as may from time to time be assigned to him
     by  the  Board  of  Directors  of  Bluegate.  The  Executive  shall have no
     responsibility  for  payroll  nor for the filing of any payroll tax return,
     nor  for  payment  of  any  tax  of  any kind that may be due or payable by
     Bluegate  or  any  of  its  divisions.

3.   Term.

     By  this  Agreement,  Bluegate  employs  the  Executive,  and the Executive
     accepts employment with Bluegate, for a period consisting of two (2) years,
     commencing  on  the  date  of  this  Agreement.

4.   Compensation.

     In  consideration  of such service, Bluegate agrees to pay the Executive as
     compensation an annual salary of $150,000.00, in accordance with Bluegate's
     regular  payroll  practices  in  effect  from  time  to  time.

     Stock  Options.  In  addition  to  the  compensation  set  forth above, the
     --------------
     Executive  shall  be  entitled to receive options to purchase the following
     number  of  Bluegate  shares  of  common  stock, par value $.001 per share,
     ("Option  Shares")  pursuant to a Stock Option Agreement on the date and at
     the  option  price  set  out  below:

<PAGE>
     DATE OF GRANT        OPTION SHARES               OPTION PRICE
     -----------------   ---------------              ------------
     September 1, 2005    50,000 shares               $1.08 per share

     September 1, 2006    290,000 shares              $1.08 per share

     The  Option  Shares  to  be  issued  pursuant  to  this  Agreement shall be
     restricted  securities  with  piggy  back  registration  rights,  and shall
     terminate  and  become null and void after the expiration of five (5) years
     from  the  date  of  grant.

     Bonus.  In  addition  to the compensation set forth above, Executive may be
     -----
     entitled  to  receive  an annual bonus in an amount to be determined by the
     Board  of  Directors  of  the  Company  in  its  sole  discretion.

5.   Change  of  Control.

     In  the  event a "Change of Control" occurs then, in that event the Company
     shall  pay  Executive the sum of $50,000, and all future compensation under
     this Agreement will immediately become due and payable to Executive and all
     options  granted under this Agreement immediately will become fully vested.
     For  purposes of this Agreement a "Change of Control" is hereby defined as:

          (a)  A  sale,  transfer, or other disposition by the Company through a
     single transaction or a series of transactions of securities of the Company
     representing thirty-five (35%) percent or more of the combined voting power
     of  the  Company's then outstanding securities to any "Unrelated Person" or
     "Unrelated  Persons"  acting  in  concert with one another. For purposes of
     this  definition,  the term "Person" shall mean and include any individual,
     partnership, joint venture, association, trust corporation, or other entity
     (including  a  "group" as referred to in Section 13(d)(3) of the 1934 Act).
     For purposes of this definition, the term "Unrelated Person" shall mean and
     include any Person other than the Company, a wholly-owned subsidiary of the
     Company,  or  an  employee benefit plan of the Company; provided however, a
     sale  to underwriters in connection with a public offering of the Company's
     securities  pursuant to a firm commitment shall not be a Change of Control;
     or

          (b)  A  sale,  transfer,  or  other  disposition  through  a  single
     transaction  or a series of transactions of all or substantially all of the
     assets of the Company to an Unrelated Person or Unrelated Persons acting in
     concert  with  one  another.

     6.     Confidentiality.

     In the course of the performance of Executive's duties hereunder, Executive
     recognizes  and  acknowledges  that  Executive  may  have access to certain
     confidential  and  proprietary  information  of  Company  or  any  of  its
     affiliates.  Without  the prior written consent of Company, Executive shall
     not disclose any such confidential or proprietary information to any person
     or  firm,  corporation,  association,  or  other  entity  for any reason or
     purpose  whatsoever,  and  shall  not  use  such  information,  directly or
     indirectly,  for  Executive's  own  behalf or on behalf of any other party.
     Executive agrees and affirms that all such information is the sole property
     of  Company  and  that  at  the  termination

<PAGE>
     and/or  expiration  of  this  Agreement,  at  Company's  written  request,
     Executive  shall promptly return to Company any and all such information so
     requested  by  Company.

               The  provisions  of  this  Section  shall  not, however, prohibit
     Executive  from  disclosing  to  others  or using in any manner information
     that:
               (a)     has  been  published  or  has  become  part of the public
     domain  other  than  by  acts,  omissions  or  fault  of  Executive;
               (b)     has  been  furnished  or made known to Executive by third
     parties (other than those acting directly or indirectly for or on behalf of
     Executive)  as  a  matter  of legal right without restriction on its use or
     disclosure;
               (c)     was in the possession of Executive prior to obtaining
     such  Not  Applicable
               (d)     is  required  to  be  disclosed  by  law.

7.   Indemnification.

     The  Company  shall  to the full extent permitted by law or as set forth in
     the  Articles  of  Incorporation  and the Bylaws of the Company, indemnify,
     defend  and  hold  harmless  Executive from and against any and all claims,
     demands,  liabilities,  damages,  loses  and expenses (including reasonable
     attorney's  fees,  court  costs  and  disbursements)  arising  out  of  the
     performance  by  him  of  his  duties  hereunder  except in the case of his
     willful  misconduct.

8.   Termination.

     This  Agreement  and  the  employment  relationship  created  hereby  will
     terminate  (i)  upon  the  death of Executive under section 8(a); (ii) with
     cause  under  Section  8(b);  or  (iii)  upon  the voluntary termination of
     employment  by  Executive  under  Section8(c).

          (a)     Death.  This  Agreement  will  terminate  on  the Death of the
     Executive.
          (b)     With  Cause.  The  Company may terminate this Agreement at any
     time  because  of  (i)  the  determination by the Board of Directors in the
     exercise  of its reasonable judgment that Executive has committed an act or
     acts  constituting  a  felony  or  other  crime  involving moral turpitude,
     dishonesty or theft or fraud; or (ii) Executive's willful misconduct in the
     performance  of his duties hereunder, provided, in each case, however, that
     the  Company  shall  not  terminate this Agreement pursuant to this Section
     unless  the  Company  shall first have delivered to the Executive, a notice
     which  specifically  identifies such breach or misconduct and the executive
     shall  not  have  cured  the same within fifteen (15) days after receipt of
     such  notice.
          (c)     Voluntary  Termination.  The  Executive  may  terminate  his
     employment  voluntarily.

     Obligations of Company Upon Termination. In the event of the termination of
     Executive's  employment  pursuant  to  Section 8 (a), (b) or (c), Executive
     will be entitled only to the compensation earned by him hereunder as of the
     date  of  such  termination  (plus  any  life  insurance  benefits).

<PAGE>
9.   Waiver  of  Breach.

     The  waiver  by  any  party  hereto  of  a  breach of any provision of this
     Agreement  will  not  operate or be construed as a waiver of any subsequent
     breach  by  any  party.

10.  Arbitration.

     If  a  dispute should arise regarding this Agreement the parties agree that
     all  claims,  disputes,  controversies,  differences  or  other  matters in
     question  arising  out  of  this  relationship  shall  be  settled finally,
     completely  and conclusively by arbitration in Houston, Texas in accordance
     with  the  Commercial  Arbitration  Rules  of  the  American  Arbitration
     Association (the "Rules"). The governing law of this Agreement shall be the
     substantive law of the State of Texas, without giving effect to conflict of
     laws.  A  decision of the arbitrator shall be final, conclusive and binding
     on  the  Company  and  Executive.

11.  Covenant  Not  to  Compete.

     So  long  as  the  Executive is employed by the Company and for a period of
     eighteen  (18)  months  after  either  (i)  the  voluntary  termination  of
     employment  by  Executive  or  (ii) the termination of the Executive by the
     Company  for  cause,  as  set  forth  in Section 8(b) hereof, the Executive
     specifically  agrees  that  he  will  not, for himself, on behalf of, or in
     conjunction  with  any  person, firm, corporation or entity, other than the
     Company  (either  as  principal,  employee,  shareholder, member, director,
     partner, consultant, owner or part-owner of any corporation, partnership or
     any type of business entity) anywhere in any county in which the Company is
     doing  business  at  the  time of termination, directly or indirectly, own,
     manage,  operate,  control, be employed by, participate in, or be connected
     in  any manner with the ownership, management, operation, or control of any
     business  similar  to  the type of business conducted by the Company at the
     time  of  termination  of  the  Executive's  employment.

     Executive's  Acknowledgments and Agreements. The Executive acknowledges and
     agrees  that:
          (1)     Due  to  the  nature  of the Company's business, the foregoing
     covenants  place no greater restraint upon the Executive than is reasonably
     necessary  to  protect  the  business  and  goodwill  of  the  Company;
          (2)     These  covenants  protect a legitimate interest of the Company
     and  do  not  serve  solely  to  limit  the  Company's  future competition;
          (3)     This  Agreement is not an invalid or unreasonable restraint of
     trade;
          (4)     A  breach  of  these  covenants  by  the Executive would cause
     irreparable  damage  to  the  Company;
          (5)     These covenants will not preclude the Executive from  becoming
     gainfully  employed  following  termination of employment with the Company;
          (6)     These  covenants  are  reasonable  in scope and are reasonably
     necessary  to  protect the Company's business and goodwill and valuable and
     extensive  trade  which the Company has established through its own expense
     and  effort;
          (7)     The signing of this Agreement is necessary for the Executive's
     employment;  and

<PAGE>
          (8)     He  has  carefully  read and considered all provisions of this
     Agreement  and  that  all  of  the  restrictions  set  forth  are  fair and
     reasonable  and are reasonably required for the protection of the interests
     of  the  Company.

     Remedies,  Injunction. In the event of the Executive's actual or threatened
     breach  of  any provisions of this Agreement, the Executive agrees that the
     Company  shall  be  entitled  to a temporary restraining order, preliminary
     injunction  and/or  permanent  injunction  restraining  and  enjoining  the
     Executive  from  violating the provisions herein. Nothing in this Agreement
     shall  be  construed  to  prohibit  the  Company  from  pursuing  any other
     available  remedies  for  such  breach  or threatened breach, including the
     recovery  of  damages from the Executive. The Executive further agrees that
     for  the  purpose  of  any such injunction proceeding, it shall be presumed
     that  the Company's legal remedies would be inadequate and that the Company
     would  suffer  irreparable harm as a result of the Executive's violation of
     the  provisions of this Agreement. In any proceeding brought by the Company
     to  enforce  the  provisions of this Agreement, no other matter relating to
     the  terms  of  any  claim  or cause of action of the Executive against the
     Company  will  be  defense  thereto.  The  foregoing  remedy provisions are
     subject  to  the provisions of Sec.15.15 of the Texas Business and Commerce
     Code,  as  amended (the "Code"), which Code provisions shall control in the
     event  of  any  conflict  between the provisions hereof and the Code or any
     other  law  in  effect  relevant  and  applicable  hereto.

12.  Benefits  Insurance.

          (i)Medical,  Dental  and  Vision  Benefits.  During  this  Agreement,
          Executive  and  his  dependents will be entitled to receive such group
          medical,  dental  and  vision  benefits  as Company may provide to its
          other  executives,  provided such coverage is reasonably available, or
          be  reimbursed  if  Executive  is  carrying his own similar insurance.

          (ii)Benefit  Plans.  The  Executive will be entitled to participate in
          any  benefit  plan or program of the Company which may currently be in
          place  or  implemented  in  the  future.

          (iii)Other  Benefits.  During  the Term, Executive will be entitled to
          receive, in addition to and not in lieu of base salary, bonus or other
          compensation,  such  other  benefits and normal perquisites as Company
          currently  provides or such additional benefits as Company may provide
          for  its  executive  officers  in  the  future.

13.  Vacation  and  Sick  Leave.

     Vacation  Pay.  The Executive shall be entitled to an annual vacation leave
     -------------
     of  four  (4)  weeks  at  full  pay.

     Sick  Pay.  The  Executive  shall  be  entitled  to  sick  leave as needed.
     ---------

<PAGE>
14.  Reimbursement  of  Expenses.

     Upon  submission  of  a  detailed  statement  and reasonable documentation,
     Company  will  reimburse  Executive  in  the same manner as other executive
     officers  for  all  reasonable  and  necessary or appropriate out-of-pocket
     travel  and  other  expenses  incurred  by  Executive in rendering services
     required  under  this  Agreement.

15.  Withholding  of  Taxes.

     Bluegate may withhold from any payments under this Agreement all applicable
     taxes,  as shall be required pursuant to any law or governmental regulation
     or  ruling.

16.  Entire  Understanding.

     This Agreement sets forth the entire understanding between the parties with
     respect  to  the subject matter hereof and cancels and supersedes all prior
     oral and written agreements between the parties with respect to the subject
     matter  hereof.

17.  Severability.

     If  for  any  reason any provision of this Agreement shall be held invalid,
     such  invalidity shall not affect any other provision of this Agreement not
     held  so  invalid.

18.  Governing  Law.

     This  Agreement  has  been executed and delivered in the State of Texas and
     its validity, interpretation, performance and enforcement shall be governed
     by  and  construed  in  accordance  with  the  laws  thereof  applicable to
     contracts  executed  and  to  be  wholly  performed  in  Texas.

19.  Notices.

     All notices shall be in writing and shall have been duly given if delivered
     by  hand  or mailed, certified or registered mail, return receipt requested
     to  the  following  address  or  to  such other address as either party may
     designate  by  like  notice:

     If  to  Executive:

     William  E.  Koehler
     1602  Lynnview  Dr.
     Houston,  Texas  77055

     If  to  Bluegate:

     Bluegate,  Inc.
     Attn:  Manfred  Sternberg,  Chairman  of  the  Board  of  Directors
     701  N.  Post  Oak  Road,  Suite  630
     Houston,  Texas  77024

<PAGE>
     Bluegate  has  caused  this Agreement to be executed by its officer and the
     Executive  has  signed  this  Agreement.

20.  Successors,  Binding  Agreement.

     This Agreement is binding upon Bluegate's successors. Bluegate will require
     any  successor  (whether  direct  or  indirect,  by  purchase,  merger,
     consolidation,  or  otherwise)  to all or substantially all of the business
     and/or  assets  of  Bluegate  to expressly assume and agree to perform this
     Agreement  in the same manner and to the same extent that Bluegate would be
     required to perform it as if no such succession had taken place. Failure of
     Bluegate to obtain such assumption and agreement prior to the effectiveness
     of  any such succession shall constitute a breach of this Agreement and the
     provisions  of  Section  5 shall apply as if there was a Change of Control.

     This  Agreement  shall  inure  to  the  benefit  of  both  Bluegate and its
     successors  and  assigns  and  the  Executive  and  his  personal  or legal
     representatives,  executors, administrators, heirs, distributes, successors
     and  assigns.

Bluegate:                                   Executive:

--------------------------------            --------------------------------
Manfred  Sternberg,                         WILLIAM  E.  KOEHLER
CHAIRMAN  OF  THE  BOARD

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