Document:

Exhibit 10.1

                              EMPLOYMENT AGREEMENT

This  Employment  Agreement  is entered  into as of this 1st day of January 2006
(the  "Commencement  Date"),  by and between  Jacob R. Miles III,  ("Miles") and
Urban Television Network Corporation, a Nevada corporation ("Urban Television").

WHEREAS,  Miles is currently  employed by Urban  Television as its President and
Chief Executive Officer; and

WHEREAS,  Urban  Television now wishes to enter into an employment with Miles as
its President  and Chief  Executive  Officer,  and Miles desires to accept Urban
Television's employment in that capacity;

NOW,  THEREFORE,  in consideration of the mutual agreements set forth below, the
parties agree as follows:

1.Employment  Duties.  Urban  Television  hereby  employs Miles and Miles hereby
accepts  employment  on the terms and  conditions  set forth by this  Agreement.
Miles shall serve as President and Chief  Executive  Officer.  In that capacity,
subject  to the  direction  and  control  of the  Urban  Television's  Board  of
Directors (the "Board"),  Miles shall exercise  general  supervision and control
over Urban Television's  property,  business and affairs. Miles shall devote his
full-time  efforts to Urban Television and shall not undertake  self-employment,
nor shall he perform any services or undertake employment for any other employer
except,  his  relationships   with  Celebrity  Ventures  Inc.,   Grapevine  Star
Entertainment  Inc. and Miles Investment Group LLC as may be approved in advance
by the Board.  Miles further agrees to  participate in no activities  during his
employment that may conflict with the best interest of Urban Television.

2. Compensation.

     a. Base Compensation. Urban Television agrees to pay Miles a base salary of
Two  Hundred  Thousand  Dollars  ($225,000)  per  annum,  less  all  lawful  and
applicable  withholdings  and  deductions,  payable  semi-monthly  or on a basis
conforming  to the  established  payroll  practices  of Urban  Television.  Base
compensation shall increase a minimum of 5% per year.

     b. Incentive  Compensation  in Addition to Base Salary.  In addition to the
basic  compensation  set forth  above,  Miles shall be entitled to receive  such
performance-based incentive compensation that will be determined by the Board of
Directors.  In addition employee shall  participate in any  non-qualified  stock
option  plan or other  plan or grant  plan  offered  or  provided  to any  other
executive employee at an equal or greater participation level during the term of
this agreement.

3. Term. This Agreement  shall continue  through  December 31, 2009,  subject to
earlier  termination in accordance  with its  provisions.  Upon its  expiration,
unless earlier  terminated in accordance  with its  provisions,  this Agreement,
shall be renewed automatically upon the same terms and conditions for successive
periods of one year,  commencing  January 1,  unless  otherwise  negotiated  and
agreed upon by the  parties.  The  successive  one year  renewals  shall also be
subject to the earlier termination provisions of this Agreement.

4. Retirement  Plans.  Subject to the satisfaction of eligibility  requirements,
Miles shall participate in Urban Television's qualified pension,  profit-sharing
or other  deferred  compensation  plan or  combination  thereof,  as they may be
adopted and offered by Urban Television in the future.

5. Time Off. Miles shall receive time off for holidays in accordance  with Urban
Television's  policies.  Subject to Urban Television's policies regarding limits
on accrual and payout, Miles shall be entitled to sixteen (16) days of paid time
off per year, accruable at the rate of 5.33 hours per semi-monthly pay period.

6.  Reimbursable  Expenses.  Miles shall be entitled  to  reimbursement  for all
reasonable and necessary expenses including cell phone charges incurred by Miles
and approved by Urban Television in connection with Urban Television's business,
including (i)  entertainment  and  promotional  expenses;  and (ii) other direct
expenses approved by Urban  Television.  All such  reimbursements  shall be paid
monthly,  provided  Miles has  furnished  to Urban  Television  such  supporting
documentation  as Urban  Television  may reasonably  require.  Employee shall be
entitled to a car allowance of $500.00 per month plus all taxes and insurance.

7. Insurance.  Miles shall receive similar medical, dental, group disability and
life insurance  coverage provided to all other employees of Urban Television and
upon the same terms and conditions, when such is provided by Urban Television.

8. Termination  Notwithstanding the Term of this Agreement or any renewals, this
Agreement may be terminated by either party as set forth below:

<PAGE>

     a.  Termination  Without  Cause.  Urban  Television  may terminate  Miles's
employment hereunder without Cause upon written notice to Miles. In the event of
termination  of Miles by Urban  Television  without Cause,  and contingent  upon
Miles's  execution of a release of all claims  against Urban  Television and its
officers, directors, employees and agents, Urban Television shall pay Miles as a
separation  payment a sum equal to eighteen (18) months of his base compensation
as of  the  date  of his  termination,  less  all  appropriate  deductions  (the
"Separation Benefit").  Such sum shall be payable in eighteen (18) equal monthly
installments. All options and grants will immediately vest. Miles's will also be
entitled to his pro-rata share of any incentive compensation earned.

     b. Termination for Cause. Urban Television may terminate Miles's employment
hereunder for "Cause" as that term is defined below:

     (i) Miles's failure to perform  substantially  his  responsibilities  under
this Agreement, after demand for substantial performance has been given by Urban
Television  that  specifically   identifies  how  Miles  has  not  substantially
performed his responsibilities,

     (ii) Miles's conviction of any felony or of a misdemeanor  involving fraud,
dishonesty  or moral  turpitude or the entry  against him of any civil  judgment
arising  from  allegations  of  fraud,  dishonesty  or moral  turpitude,  or any
violation of law which has a material adverse effect on Urban Television,

     (iii)  Miles's  breach of this  Agreement  that  results  in  financial  or
reputational detriment to Urban Television,

     (iv)  Miles's  misconduct  in the  performance  of  his  duties  under  the
Agreement  that  results  in  financial  or  reputational   detriment  to  Urban
Television,  (v) Miles's breach of Urban  Television's Code of Ethics or Insider
Trading Policy, as now in effect or as modified in the future,

     (vi) Miles's theft or embezzlement from Urban Television, or

     (vi)  Miles's  attempt  to  obstruct  or  failure  to  cooperate  with  any
investigation   authorized   by  Urban   Television  or  any   governmental   or
self-regulatory entity.

In the event of termination  "for Cause," all obligations of Urban Television to
pay compensation  under this Agreement will immediately cease and Miles shall be
entitled  to no  further  compensation  of any kind with the  exception  of base
compensation accrued to the date of termination.

     c.  Resignation  without  Good Reason.  Should Miles wish to terminate  his
employment with Urban  Television  without Good Reason (as defined below) during
the term of this  Agreement,  Miles  shall give  sixty  (60) days prior  written
notice to Urban  Television  specifying the date on which such resignation is to
become  effective.  In the event of a  resignation  without Good  Reason,  Urban
Television shall have no further  obligations to pay compensation to Miles under
this Agreement other than to pay Miles his base compensation through the date of
resignation.  At Urban  Television's  sole  option,  it may elect to end Miles's
service at a date earlier than  specified in Miles's  written notice and pay his
compensation  through the end of a sixty (60) day notice period.  d. Resignation
with Good Reason. Miles may terminate his employment hereunder for "Good Reason"
as that term is defined below:

     (i) The material diminution of Miles's position,  duties,  responsibilities
or status with Urban Television,

     (ii) Urban  Television's  assignment of Miles on a substantially  full-time
basis to work at a location  where the  distance  between the new  location  and
Miles's  principal  residence  is at least 60 miles  greater  than the  distance
between the former location and such residence,

     (iii) Any  reduction  in Miles's base  salary,  or a material  reduction in
benefits  payable to Miles or the failure of Urban  Television  to pay Miles any
earned salary,  bonus or benefits except during the period when Urban Television
does not have the financial  resources  after paying its other normal  operating
expenses or with Miles's prior written consent,

     (iv) Urban Television's  failure to obtain an assumption of the obligations
incumbent upon Urban  Television  under this Agreement by any successor to Urban
Television,

     (v) The exclusion or limitation of Miles from participating in some form of
variable  compensation  plan which provides  Miles the  opportunity to achieve a
level of total compensation consistent with Miles's potential compensation under
this Agreement, or

     (vi) Any demand by any  director of the Company  that Miles take any action
or refrain from taking any action where such action or inaction, as the case may
be, would violate any law, rule, regulation or other governmental pronouncement,
court order, decree or judgment, or breach any agreement or fiduciary duty.

<PAGE>

In the event of a  resignation  by Miles for Good Reason,  and  contingent  upon
Miles's  execution of a release of all claims  against Urban  Television and its
officers,  directors,  employees and agents,  Urban Television shall pay Miles a
sum equal to eighteen (18) months of his base compensation as of the date of his
resignation,  less all appropriate deductions (the "Separation  Benefit").  Such
sum shall be payable in eighteen (18) equal monthly installments, beginning when
Urban  Television  has the  financial  resources  after  paying its other normal
operating  expenses.  All options and grants will immediately vest. Miles's will
also be entitled to his pro-rata share of any incentive compensation earned.

     e.  Death.  This  Agreement,   Miles's  employment  hereunder,   and  Urban
Television's  obligations  hereunder shall terminate forthwith upon the death of
Miles and Urban Television shall have no further  obligation to pay compensation
to Miles or Miles's  estate,  successors or  beneficiaries  under this Agreement
other than to pay Miles's base salary through the date of death.

     f.  Disability.  If Miles shall fail or be unable to perform this  services
required under this Agreement, with or without reasonable accommodation, because
of any  physical  or mental  disability,  and such  failure or  inability  shall
continue for three consecutive  months or for a total of ninety (90) days during
any consecutive twelve (12) month period,  Urban Television shall have the right
to terminate this Agreement thirty days after delivering  written notice of such
termination to Miles;  provided,  however,  that Miles shall continue to receive
his base compensation to the date of termination.

     9. Trade Secrets and  Confidential  Information.  a. Miles agrees that both
during and after the Term of the  Agreement  he will keep  confidential  and not
disclose  or  use  confidential   information  relating  to  Urban  Television's
customers, personnel, designs, pricing, sourcing, manufacturing and distribution
policies,  methods  of  doing  business,  sales  volume  information,   business
prospects or plans, or any other proprietary  information which is not otherwise
available  to the general  public,  including,  but not limited to,  information
covered  under the Uniform  Trade  Secrets Act,  RCW 19.108 et. seq.,  except in
furtherance of the interests of Urban Television.

     b. Miles  shall  neither  use nor allow any other  person to use any of the
Secrets in any way,  except for the benefit of Urban  Television.  All  material
containing  or  disclosing  any portion of the  Secrets  shall be and remain the
property of Urban Television, and shall be returned to Urban Television upon the
termination  of Miles's  employment  or at the  earlier  request of the Board of
Directors.  At such  time,  Miles  shall  also  assemble  all  materials  in his
possession or control that contain any of the Secrets, and promptly deliver such
items to Urban Television.

     10. Intellectual  Properties.  a. All ownership,  copyright,  patent, trade
secrecy and other  rights in all works,  designs,  inventions,  ideas,  manuals,
improvements,  discoveries,  processes,  customer lists or other properties (the
"Intellectual  Properties")  made or  conceived  by Miles during the Term and in
connection with Miles's  employment with Urban Television shall be the right and
property solely of Urban Television, whether developed independently by Miles or
jointly with others,  and whether or not developed or conceived  during  regular
working  hours or at Urban  Television's  facilities,  and  whether or not Urban
Television uses, registers, or markets the same.

     b. In accordance with Urban Television's policy and Texas law, this section
does not apply to, and Miles has no  obligation  to assign to Urban  Television,
any  invention  for which no Urban  Television  trade  secrets and no equipment,
supplies or  facilities  of Urban  Television  were used and which was developed
entirely on Miles's own time,  unless (i) the invention  relates directly to the
business  of  Urban  Television;   (ii)  the  invention  relates  to  actual  or
demonstrably  anticipated  research or development work of Urban Television;  or
(iii)  the  invention  results  from  any work  performed  by  Miles  for  Urban
Television. c. Miles will assist Urban Television as reasonably requested during
and after the term of his  employment  to further  evidence and perfect,  and to
enforce,  Urban  Television's  rights  in  and  ownership  of  the  Intellectual
Properties  covered  hereby,  including  without  limitation,  the  execution of
additional  instruments  of  conveyance  and  assisting  Urban  Television  with
applications for patents or copyright or other registrations.

11.  Authority  and  Non-Infringement.  Miles  warrants  that to the best of his
knowledge  any and all items,  technology  and  Intellectual  Properties  of any
nature  developed or provided by him under this  Agreement and in any way for or
related to Urban  Television will be original to Miles and will not, as provided
to Urban  Television  or when used and  exploited  by Urban  Television  and its
contractors and customers and its and their successors and assigns,  infringe in
any  respect  on the  rights or  property  of any third  party.  Miles will not,
without  prior  authorization  by  the  Board,  use  any  equipment,   supplies,
facilities or proprietary information of any other party. Miles warrants that he
is fully  authorized  to enter  into  employment  with Urban  Television  and to
perform under this Agreement,  without  conflicting with any other  commitments,
understandings,  agreements or duties,  whether to prior employers or otherwise.
Miles agrees to indemnify Urban  Television for all losses,  claims and expenses
(including reasonable attorneys' fees) arising from claims brought against Urban
Television as a result of any breach by Miles of this section.

<PAGE>

12. Noncompetition, Nonsolicitation and Non-Hire.

     a. Subject to the  provisions of Section 12.d.,  below,  Miles agrees that,
both  during  the term and for a period  of twelve  (12)  months  following  the
termination of Miles's  employment with Urban Television,  Miles will not in any
capacity,  directly or indirectly,  engage or invest in, own,  manage,  operate,
finance,  control  or  participate  in  the  ownership,  management,  operation,
financing  or control  of, be employed  by,  associated  with,  or in any manner
connected with, lend his name or any similar name to, lend his credit to, render
services or advice to, or assist others to engage in or own a material  interest
in any business or activity that is, or is preparing to be, in competition  with
Urban  Television,  its subsidiaries or licensees with respect to any product or
any  service  sold or  provided  by  Urban  Television  directly  or  through  a
subsidiary or a licensee of the Urban Television brand in any geographical  area
in  which  such  product  or  service  is  sold  or  is  actively   engaged  in.
Notwithstanding  any other  provision of this section,  however,  Miles shall be
permitted to maintain an equity  ownership  interest in a competing  business if
that business is subject to reporting  obligations under the Securities Exchange
Act of 1934 and Miles's  ownership  interest does not exceed two percent (2%) of
that entity's outstanding equity securities.

     b. Subject to the provisions of Section 12.d.,  below, Miles further agrees
that both  during  the Term of this  Agreement  and for a period of twelve  (12)
months  following the termination of Miles's  employment with Urban  Television,
Miles will not: (i) directly or indirectly  solicit or accept  business from any
actual or identified  potential customer of Urban Television or its subsidiaries
which might  reasonably  be foreseen to decrease such  customer's  likelihood to
transact future business with Urban  Television in a volume  consistent with its
historical practices or reasonably anticipated future volume; or (ii) attempt to
entice away from Urban  Television or its  subsidiaries any actual or identified
potential  customer  of Urban  Television  or its  subsidiaries,  nor will Miles
assist  others in doing so.  Miles  further  agrees that during the Term of this
Agreement and for a period of twelve (12) months  following  termination  of his
employment  with Urban  Television,  he will not induce or attempt to induce any
customer,  supplier,  licensee,  shareholder,  investor, or business relation of
Urban Television to sever or diminish its relationship with Urban Television, or
refrain from doing  business with Urban  Television,  its  subsidiaries,  or its
licensees or in any way interfere with the relationship between Urban Television
and any customer, supplier, licensee, shareholder, investor or business relation
of Urban Television.

     c. Subject to the provisions of Section 12.d.,  below, Miles further agrees
that both  during  the Term of this  Agreement  and for a period of twelve  (12)
months  following the  termination of his employment with Urban  Television,  he
will not, directly or indirectly, for himself or any other person or entity; (i)
induce  or  attempt  to  induce  any  employee,  consultant,  independent  sales
representative or independent contractor of Urban Television to leave the employ
of or terminate his, her or its contract with Urban Television;  (ii) in any way
interfere  with the  relationship  between  Urban  Television  and any employee,
consultant,  independent sales representative or independent contractor of Urban
Television;  or (iii) employ,  or otherwise  engage as an employee,  consultant,
independent sales representative or independent  contractor,  or otherwise,  any
individual serving as an employee, consultant,  independent sales representative
or independent  contractor of Urban  Television or its  subsidiaries on the date
this  Agreement  is  executed.

     d. In the event that Miles receives a Severance Payment under the Change in
Control Agreement, then the restrictions set forth in Sections 12.a., 12.b., and
12.c.,  above,  shall be extended to require Miles to comply with those Sections
for a period of twenty-four (24) months from the termination of his employment.

     e.  Nothing  in this  Agreement  prohibits  Miles from  providing  truthful
testimony to governmental, regulatory or self regulatory authorities.

     f. Miles  acknowledges  that the  covenants  contained  in this section are
necessary  and  reasonable  to protect  Urban  Television  in the conduct of its
business  and that  compliance  with such  covenants  will not  prevent him from
pursuing his  livelihood.  However,  should any court find that any provision of
such covenants is unreasonable,  invalid or unenforceable,  whether in period of
time,  geographical  area or  otherwise,  then in that event the parties  hereby
agree that such  covenants  shall be  interpreted  and  enforced  to the maximum
extent which the court deems reasonable.

13.  Remedies.  Miles  acknowledges  that any breach by him of the provisions of
Sections  9, 10,  11 or 12 may be wholly  or  partly  irreparable  and not fully
compensable  by  damages.  Miles  hereby  agrees  that such  obligations  may be
enforced by  injunctive  relief and other  appropriate  remedies,  as well as by
damages.  The remedies  available to Urban Television for violations of Sections
9, 10, 11 and 12 are cumulative and not alternative.

14.  Amendment;  Waivers.  This  Agreement  may be  amended  only  by a  written
instrument  signed by both  parties.  No breach of any  agreement,  warranty  or
representation  shall be deemed  waived unless  expressly  waived in writing and
signed by the party who might assert such breach.  No failure or delay by either
party in exercising any right under this Agreement  shall operate as a waiver of
such right nor shall any single or partial  exercise of any right  preclude  any
other or further exercise of such right or the exercise of any other right.

<PAGE>

15. Assignment  Prohibited.  Miles may not assign any of his rights nor delegate
any of his duties  hereunder.  Urban  Television  may assign this  Agreement and
delegate its duties hereunder in connection with any merger,  consolidation,  or
sale of  assets,  or to any of its  affiliates  at any time  owned  by, or under
common  ownership with,  Urban  Television,  provided that any such successor or
assignee expressly assumes in writing Urban Television's obligations hereunder.

16.  Governing  Law.  This  Agreement,  including  all matters of  construction,
validity and  performance,  shall be governed by, and  construed and enforced in
accordance  with, the laws of the State of Texas without regard to its choice of
law provisions.

17.  Arbitration.  Except for Urban  Television's  right to seek  injunctive and
other relief in any court of competent  jurisdiction  for alleged  violations of
Paragraphs 9, 10, 11 and 12 of this Agreement, all disputes and controversies of
every kind between the parties hereto arising out of or in connection  with this
Agreement  and their  employment  relationship  shall be  submitted  to  binding
arbitration.  The arbitrator shall be appointed by an arbitration service agreed
upon by the parties, or if the parties cannot agree upon an arbitration service,
by the Judicial Dispute  Resolution of Fort Worth,  Texas. The arbitration shall
take place in Tarrant County,  Texas. The  determination  made by the arbitrator
shall be final and binding upon the parties hereto, subject only to the right to
appeal  such  decision  to the  District  Court on any basis  authorized  by the
Federal Arbitration Act.

18. Notices. All notices and other communications called for or required by this
Agreement  shall be in writing  to the  parties  at their  respective  addresses
stated below, or to such other address as a party may  subsequently  specify and
shall be deemed to have been received (i) upon delivery in person, (ii) upon the
passage of seventy-two  hours  following  post by the first class  registered or
certified  mail,  return receipt  requested,  with postage  prepaid,  (iii) upon
passage of  twenty-four  hours  following  post by overnight  receipted  courier
service,  or (iv) upon transmittal by confirmed telex or facsimile  provide that
if sent by  facsimile a copy of such notice shall be  concurrently  sent by U.S.
certified mail, return receipt requested and postage prepaid, with an indication
that the original was sent facsimile and the date of its transmittal.

19. Savings Clause. If any provision of this Agreement, is held to be invalid or
unenforceable to any extent in any context, it shall nevertheless be enforced to
the fullest extent allowed by law in that and other  contexts,  and the validity
and force of the remainder of this Agreement shall not be affected thereby.

20. Counterparts.  This Agreement may be signed in several counterparts, each of
which shall be an original,  but all of which together shall constitute the same
instrument.

21. Complete  Agreement.  This Agreement  comprises the entire agreement between
the  parties.   It  supersedes  and  merges  within  it  all  prior  agreements,
discussions  or  understandings  between the parties,  whether  written or oral,
express or implied. In interpreting and construing this Agreement, the fact that
any  particular  party may have drafted this  Agreement or any provision  hereof
shall not be given any weight or relevance.

22. Costs and Expenses of  Enforcement.  If any legal action or  arbitration  is
brought to interpret or enforce any term or provision of this  Agreement,  then,
subject to applicable law, the prevailing  party shall, in addition to any other
relief to which such party may be entitled, be awarded against the nonprevailing
party, his or its attorney's fees and costs reasonably and actually incurred.

By his signature below,  Miles acknowledges that he has read and understood this
Agreement,  that its terms have been fully and fairly negotiated between himself
and Urban Television,  that he has had the opportunity to seek independent legal
advice  and has  obtained  such  independent  legal  advice  about the terms and
conditions  of this  Agreement  as he sees fit, and that he signs it and accepts
its terms, covenants and restrictions voluntarily.

Executed by the parties as of the date first written above.

URBAN TELEVISION NETWORK CORPORATION.    JACOB R. MILES III

 /s/ Randy Moseley                        /s/ Jacob R. Miles III
---------------------------------------  ---------------------------------------
By: Randy Moseley
Its: Executive Vice President/CFO

Notice Address:                          Notice Address:

2707 South Cooper,  Suite 119            3416 Hightimber Dr.
Arlington, Texas   76015                 Grapevine, Texas 76051
Attn: Chief Financial OfficerExhibit 10.1

    

     

     

    AGREEMENT
      OF MERGER AND

     

     

    PLAN
      OF REORGANIZATION

     

    among

     

    AGRONIX,
      INC.,

     

    AGRONIX
      ACQUISITION CORP. and

     

    WARNER
      NUTRACEUTICAL INTERNATIONAL, INC.

     

    May
      10, 2006

     

    

     

    

     

    

     

    

     

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    Page

     

    
      	
              1.   The
                Merger.

            	
               1 

            
	
              1.1

            	
              Merger

            	
               1 

            
	
              1.2

            	
              Effective
                Time

            	
               2 

            
	
              1.3

            	
              Certificate
                of Incorporation, Bylaws, Directors and Officers.

            	
              2

            
	
              1.4

            	
              Assets
                and Liabilities

            	
              2

            
	
              1.5

            	
              Conversion
                of Securities.

            	
              2

            
	
              1.6

            	
              Surrender
                and Exchange of Certificates

            	
              3 

            
	
              1.7

            	
              Intentionally
                Omitted.

            	
              3 

            
	
              1.8

            	
              Parent
                Common Stock and Parent Class A Preferred Stock

            	
              3 

            
	
              1.9

            	
              Operation
                of Surviving Corporation.

            	
              4 

            
	
              1.10

            	
              Further
                Assurances

            	
              4 

            
	
              2.   Representations
                and Warranties of the Company

            	
              4 

            
	
              2.1

            	
              Organization,
                Standing, Subsidiaries, Etc.

            	
              4 

            
	
              2.2

            	
              Qualification

            	
              4 

            
	
              2.3

            	
              Capitalization
                of the Company

            	
              5 

            
	
              2.4

            	
              Indebtedness

            	
              5 

            
	
              2.5

            	
              Company
                Stockholders

            	
              5 

            
	
              2.6

            	
              Corporate
                Acts and Proceedings

            	
              5 

            
	
              2.7

            	
              Compliance
                with Laws and Instruments

            	
              5

            
	
              2.8

            	
              Binding
                Obligations

            	
              5 

            
	
              2.9

            	
              Broker’s
                and Finder’s Fees

            	
              6 

            
	
              2.10

            	
              Financial
                Statements

            	
              6 

            
	
              2.11

            	
              Absence
                of Undisclosed Liabilities

            	
              6 

            
	
              2.12

            	
              Changes

            	
              6 

            
	
              2.13

            	
              Intentionally
                Omitted.

            	
              7 

            
	
              2.14

            	
              Employees

            	
              7 

            
	
              2.15

            	
              Tax
                Returns and Audits

            	
              7 

            
	
              2.17

            	
              Employee
                Benefit Plans; ERISA

            	 
	
              2.18

            	
              Title
                to Property and Encumbrances

            	
              8

            
	
              2.19

            	
              Condition
                of Properties

            	
              8 

            
	
              2.20

            	
              Insurance
                Coverage

            	
              8 

            
	
              2.21

            	
              Litigation

            	
              8 

            
	
              2.22

            	
              Licenses

            	
              8 

            
	
              2.23

            	
              Interested
                Party Transactions

            	
              8 

            
	
              2.24

            	
              Environmental
                Matters

            	
              9 

            
	
              2.25

            	
              Receivables

            	
              9 

            
	
              2.26

            	
              Inventories

            	
              10 

            
	
              2.27

            	
              Customers,
                Suppliers and Independent Contractors

            	
              10 

            
	
              2.28

            	
              Duty
                to Make Inquiry.

            	
              10 

            
	
              2.29

            	
              Disclosure.

            	
              10 

            

    

     

     

    
      
        i

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.30

            	
              Questionable
                Payments

            	
              10 

            
	
              2.31

            	
              Obligations
                to or by Stockholders

            	
              11 

            
	
              3.   Representations
                and Warranties of Parent and Acquisition Corp.

            	
              11 

            
	
              3.1

            	
              Organization
                and Standing

            	
              11 

            
	
              3.2

            	
              Corporate
                Authority

            	
              11 

            
	
              3.3

            	
              Broker’s
                and Finder’s Fees

            	
              12 

            
	
              3.4

            	
              Capitalization
                of Parent

            	
              12

            
	
              3.5

            	
              Acquisition
                Corp.

            	
              12

            
	
              3.6

            	
              Validity
                of Shares

            	
              12

            
	
              3.7

            	
              SEC
                Reporting and Compliance

            	
              12

            
	
              3.8

            	
              Financial
                Statements

            	
              12 

            
	
              3.9

            	
              Governmental
                Consents

            	
              13

            
	
              3.10

            	
              Compliance
                with Laws and Other Instruments

            	
              14

            
	
              3.11

            	
              No
                General Solicitation

            	
              14

            
	
              3.12

            	
              Binding
                Obligations

            	
              14

            
	
              3.13

            	
              Absence
                of Undisclosed Liabilities

            	
              15

            
	
              3.14

            	
              Changes

            	
              15

            
	
              3.15

            	
              Tax
                Returns and Audits

            	
              15

            
	
              3.16

            	
              Employee
                Benefit Plans; ERISA

            	
              16

            
	
              3.17

            	
              Litigation

            	
              16

            
	
              3.18

            	
              Interested
                Party Transactions

            	
              17

            
	
              3.19

            	
              Questionable
                Payments

            	
              17

            
	
              3.20

            	
              Obligations
                to or by Stockholders

            	
              17

            
	
              3.21

            	
              Schedule
                of Assets and Contracts

            	
              17

            
	
              3.22

            	
              Employees

            	
              18 

            
	
              3.23

            	
              Disclosure

            	
              18 

            
	
              3.24

            	
              Patents
                and Other Intangible Assets

            	
              19 

            
	 	 	 
	
              4.   Intentionally
                Omitted.

            	
              19

            
	
              5.   Conduct
                of Businesses Pending the Merger.

            	
              19

            
	
              5.1

            	
              Conduct
                of Business by the Company Pending the Merger

            	
              20 

            
	
              5.2

            	
              Conduct
                of Business by Parent and Acquisition Corp. Pending the
                Merger

            	
              21 

            
	
              6.   Additional
                Agreements.

            	
              21 

            
	
              6.1

            	
              Access
                and Information

            	
              22 

            
	
              6.2

            	
              Additional
                Agreements

            	
              22 

            
	
              6.3

            	
              Publicity

            	
              22 

            
	
              6.4

            	
              Appointment
                of Directors

            	
              22 

            
	
              6.5

            	
              Filing
                of 10-QSB.

            	
              22 

            
	
              6.6

            	
              Satisfaction
                of, Release of and Indemnification from Liabilities; Escrow
                Agreement

            	
              22 

            

    

     

     

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              6.7

            	
              Subsidiary
                Purchase Agreement

            	
              23 

            
	
              7.   Conditions
                of Parties’ Obligations

            	
              23 

            
	
              7.1

            	
              Parent
                and Acquisition Corp. Obligations

            	
              23 

            
	
              7.2

            	
              Company
                Obligations

            	
              25

            
	
              8.   Non-Survival
                of Representations and Warranties

            	
              27 

            
	
              9.   Amendment
                of Agreement

            	
              27 

            
	
              10.     Definitions

            	
              27 

            
	
              11. 
Closing

            	
              31 

            
	
              12.        
                Termination
                Prior to Closing

            	
              32

            
	
              12.1

            	
              Termination
                of Agreement

            	
              32 

            
	
              12.2

            	
              Termination
                of Obligations

            	
              32 

            
	
              13.        
                Miscellaneous.

            	
              32 

            
	
              13.1

            	
              Notices

            	
              32 

            
	
              13.2

            	
              Entire
                Agreement

            	
              33 

            
	
              13.3

            	
              Expenses

            	
              33 

            
	
              13.4

            	
              Time

            	
              33 

            
	
              13.5

            	
              Severability

            	
              33 

            
	
              13.6

            	
              Successors
                and Assigns

            	
              34 

            
	
              13.7

            	
              No
                Third Parties Benefited

            	
              34  

            
	
              13.8

            	
              Counterparts

            	
              34  

            
	
              13.9

            	
              Recitals,
                Schedules and Exhibits

            	
              34  

            
	
              13.10

            	
              Section
                Headings and Gender

            	
              34

            
	
              13.11

            	
              Governing
                Law

            	 
	 	 	 

    

    
      
        iii

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIST
      OF EXHIBITS AND SCHEDULES

     

    

      
        	
                Exhibits

              	 
	
                A

              	
                Articles
                  of Merger and Certificate of Merger

              
	
                B

              	
                Certificate
                  of Incorporation of the Company

              
	
                C

              	
                Bylaws
                  of the Company

              
	
                D

              	
                Directors
                  and Officers of the Surviving Corporation and Parent

              
	
                E

              	
                Letter
                  of Transmittal

              
	
                F

              	
                Intentionally
                  Omitted

              
	
                G

              	
                Form
                  of Opinion of Company’s Counsel

              
	
                H

              	
                Form
                  of Opinion of Parent’s Counsel

              
	
                I

              	
                Intentionally
                  Omitted

              
	
                J

              	
                
                  Intentionally
                    Omitted

                

              
	
                K

              	
                
                  Intentionally
                    Omitted

                

              
	
                L

              	
                Subsidiary
                  Purchase Agreement

              
	 	 
	
                Company
                  Disclosure Schedules

              
	 
	
                2.5

              	
                Company
                  Stockholders

              
	
                2.9

              	
                Company
                  Broker’s and Finder’s Fees

              
	
                2.10

              	
                Financial
                  Statements

              
	
                2.21

              	
                Litigation

              
	
                2.23

              	
                Interested
                  Party Transactions

              
	
                2.31

              	
                Obligations
                  to or by Stockholders

              
	 	 
	
                Parent
                  Disclosure Schedules

              
	 
	
                3.3

              	
                Parent
                  Broker’s and Finder’s Fees

              
	
                3.4

              	
                Outstanding
                  Options and Other Convertible Securities

              
	
                3.7

              	
                SEC
                  Reporting

              
	
                3.10

              	
                Compliance
                  with Laws

              
	
                0.1

              	
                Absence
                  of Undisclosed Liabilities

              
	
                0.2

              	
                Changes/Indebtedness

              
	
                3.15

              	
                Schedule
                  of Parent Bank Accounts

              
	
                6.6

              	
                Executed
                  Releases from Creditors

              

      

    

     

     

    

    
      
        
          iv

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    AGREEMENT
      OF MERGER AND PLAN OF REORGANIZATION

     

    THIS
      AGREEMENT OF MERGER AND PLAN OF REORGANIZATION is made and entered into on
      May
      5, 2006, by and among AGRONIX, INC., a Florida Corporation (“Parent”),
      AGRONIX ACQUISITION CORP., a Florida corporation (“Acquisition
      Corp.”),
      which
      is a wholly-owned subsidiary of Parent, and WARNER NUTRACEUTICAL INTERNATIONAL,
      INC., a Delaware corporation (the “Company”).

     

     

    WITNESSETH:

     

    A.
      The
      Board of Directors of each of Acquisition Corp., Parent and the Company have
      each determined that it is fair to and in the best interests of their respective
      corporations and stockholders for Acquisition Corp. to be merged with and into
      the Company (the “Merger”)
      upon
      the terms and subject to the conditions set forth herein;

     

    B.
      The
      Board of Directors of Acquisition Corp. and the Board of Directors of the
      Company have approved the Merger in accordance with the Florida Business
      Corporation Act (the “FBCA”)
      and
      Delaware General Corporation Law (the “DGCL”),
      and
      upon the terms and subject to the conditions set forth herein and in the
      Articles of Merger and Certificate of Merger (including the Plan of Merger
      attached thereto as Exhibit A, the “Articles
      of Merger”)
      attached as Exhibit
      A
      hereto;
      and the Board of Directors of Parent also has approved this Agreement and the
      Articles of Merger and Certificate of Merger;

     

    C.
      The
      requisite Stockholders (as such term is defined in Section
      10
      hereof)
      of the Company have approved by written consent pursuant to Section 228 of
      the
      DGCL this Agreement and the Certificate of Merger and the transactions
      contemplated and described hereby and thereby, including without limitation
      the
      Merger, and Parent, as the sole stockholder of Acquisition Corp., has approved
      this Agreement, the Articles of Merger and the transactions contemplated and
      described hereby and thereby, including without limitation the Merger;
      and

     

    D.
      The
      parties intend the Merger to qualify as a reorganization under the provisions
      of
      Section 368(a)(1)(A) of the Internal Revenue Code of 1986, as amended (the
      “Code”), by reason of Section 368(a)(2)(E) of the Code.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements and covenants hereinafter
      set forth, the parties
      hereto agree as follows:

     

    1 1. The
      Merger.

     

    1.1 Merger.
      Subject
      to the terms and conditions of this Agreement and the Articles of Merger and
      Certificate of Merger, Acquisition Corp. shall be merged with and into the
      Company in accordance with Section 607.1101 of the FBCA and Section 221 of
      the
      DGCL. At the Effective Time (as hereinafter defined), the separate legal
      existence of Acquisition Corp. shall cease, the Company shall be the surviving
      corporation in the Merger (sometimes hereinafter referred to as the
“Surviving
      Corporation”)
      and
      shall be a wholly-owned subsidiary of the Parent and shall continue its
      corporate existence under the laws of the State of Delaware under the name
      WARNER NUTRACEUTICAL INTERNATIONAL, INC.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.2 Effective
      Time.
      The
      Merger shall become effective on the date and at the time the Articles of Merger
      is filed with the Florida Secretary of State in accordance with Section 607.1101
      of the FBCA, and the Certificate of Merger is filed with the Delaware Secretary
      of State in accordance with Section 251 of the DGCL. The time at which the
      Merger shall become effective as aforesaid is referred to hereinafter as the
      “Effective Time.” 

     

    1.3 Certificate
      of Incorporation, Bylaws, Directors and Officers.

     

    (a) The
      Certificate of Incorporation of Company in effect immediately prior to the
      Effective Time, attached as Exhibit
      B,
      shall
      be the Certificate of Incorporation of the Surviving Corporation from and after
      the Effective Time until further amended in accordance with applicable
      law.

     

    (b) The
      Bylaws of Company in effect immediately prior to the Effective Time, attached
      as
Exhibit
      C,
      shall
      be the Bylaws of the Surviving Corporation from and after the Effective Time
      until amended in accordance with applicable law, the Certificate of
      Incorporation and such Bylaws.

     

    (c) The
      directors, officers and key employees listed in Exhibit
      D
      shall be
      the directors, officers and key employees of the Surviving Corporation, and
      each
      shall hold his respective office or offices from and after the Effective Time
      until his successor shall have been elected and shall have qualified in
      accordance with applicable law, or as otherwise provided in the Certificate
      of
      Incorporation or Bylaws of the Surviving Corporation.

     

    1.4 Assets
      and Liabilities.
      At the
      Effective Time, the Surviving Corporation shall possess all the rights,
      privileges, powers and franchises of a public as well as of a private nature,
      and be subject to all the restrictions, disabilities and duties of each of
      Acquisition Corp. and the Company (collectively, the “Constituent
      Corporations”); and all the rights, privileges, powers and franchises of each of
      the Constituent Corporations, and all property, real, personal and mixed, and
      all debts due to any of the constituent corporations on whatever account, as
      well for stock subscriptions as all other things in action or belonging to
      each
      of the Constituent Corporations, shall be vested in the Surviving Corporation;
      and all property, rights, privileges, powers and franchises, and all and every
      other interest shall be thereafter as effectively the property of the Surviving
      Corporation as they were of the several and respective constituent corporations,
      and the title to any real estate vested by deed or otherwise in either of the
      such Constituent Corporations shall not revert or be in any way impaired by
      the
      Merger; but all rights of creditors and all liens upon any property of any
      of
      the Constituent Corporations shall be preserved unimpaired, and all debts,
      liabilities and duties of the Constituent Corporations shall thenceforth attach
      to the Surviving Corporation, and may be enforced against it to the same extent
      as if said debts, liabilities and duties had been incurred or contracted by
      it.

     

    1.5 Conversion
      of Securities.

     

    (a) At
      the Effective Time:

     

    (i) Each
      share of Acquisition Corp. common stock, par value $.001 per share, issued
      and
      outstanding immediately prior to the Effective Time shall, by virtue of the
      Merger and without any action on the part of the holder thereof, be converted
      into the right to receive one (1) share of common stock, par value $.001 per
      share, of the Surviving Corporation, so that at the Effective Time, Parent
      shall
      be the holder of all of the issued and outstanding shares of the Surviving
      Corporation;

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (ii) Each
      share of Company Common Stock, $.0001 par value per share, (the “Company
      Common Stock”),
      shall, by virtue of the Merger and without any action on the part of the holders
      thereof, in consideration for a cash payment of $289,000, be converted into
      (a)
      5,481.1475 newly issued shares of Parent Common Stock, par value $.001 per
      share, for a total issuance by Parent of 54,811,475 shares of Parent Common
      Stock, so that the Surviving Corporation’s Stockholders hold 54.8% of the issued
      and outstanding shares of Parent, and (b)
      147.3649074 newly issued shares of Parent Class A Preferred Stock, par value
      $.001 per share, for a total issuance by Parent of 1,473,649.074 shares of
      Parent Class A Preferred Stock, of which each share is convertible into five
      hundred (500) shares of Parent Common Stock; and

     

    (iii) Each
      share of Company Common Stock held in the treasury of the Company immediately
      prior to the Effective Time shall be cancelled in the Merger and cease to
      exist.

     

    (b) After
      the
      Effective Time, there shall be no further registration of transfers on the
      stock
      transfer books of the Surviving Corporation of the shares of Company Common
      Stock that were outstanding immediately prior to the Effective
      Time.

     

    1.6 Surrender
      and Exchange of Certificates.
      Promptly
      after the Effective Time and upon (i) surrender of a certificate or certificates
      representing shares of Company Common Stock that were outstanding immediately
      prior to the Effective Time or an affidavit and indemnification in form
      reasonably acceptable to counsel for the Parent stating that such Stockholder
      has lost their certificate or certificates or that such have been destroyed
      and
      (ii) delivery of a Letter of Transmittal (as described in Section
      4
      hereof),
      Parent shall issue to each record holder of Company Common Stock surrendering
      such certificate or certificates and Letter of Transmittal, a certificate or
      certificates registered in the name of such Stockholder representing the number
      of shares of Parent Common Stock and Parent Class A Preferred Stock that such
      Stockholder shall be entitled to receive as set forth in Section
      1.5(a)(ii)
      hereof.
      Until the certificate, certificates or affidavit is or are surrendered together
      with the Letter of Transmittal as contemplated by this Section
      1.6
      and
Section
      4
      hereof,
      each certificate or affidavit that immediately prior to the Effective Time
      represented any outstanding shares of Company Common Stock shall be deemed
      at
      and after the Effective Time to represent only the right to receive upon
      surrender as aforesaid the Parent Common Stock and Parent Class A Preferred
      Stock specified in Schedule
      1.5
      hereof
      for the holder thereof or to perfect any rights of appraisal which such holder
      may have pursuant to the applicable provisions of the FBCA and
      DGCL.

     

    1.7 Intentionally
      Omitted.

     

    1.8 Parent
      Common Stock and Parent Class A Preferred Stock.
      Parent
      agrees that it will cause the Parent Common Stock and Parent Class A Preferred
      Stock to be issued to the Company at the Effective Time pursuant to Section
      1.5(a)(ii)
      to be
      available for such purpose. Parent further covenants that immediately prior
      to
      the Effective Time there will be no more than 45,188,525 shares of Parent Common
      Stock and no shares of Parent Preferred Stock issued and outstanding, and that
      no other common or preferred stock or equity securities or any options,
      warrants, rights or other agreements or instruments convertible, exchangeable
      or
      exercisable into common or preferred stock or other equity securities shall
      be
      issued or outstanding,
      except as described herein.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.9 Operation
      of Surviving Corporation.

     

     
      The
      Company acknowledges that upon the effectiveness of the Merger, and the
      compliance by the Parent and Acquisition Corp. of its duties and obligations
      hereunder, Parent shall have the absolute and unqualified right to deal with
      the
      assets and business of the Surviving Corporation as its own property without
      limitation on the disposition or use of such assets or the conduct of such
      business. 

     

    1.10 Further
      Assurances.
      From
      time to time, from and after the Effective Time, as and when reasonably
      requested by Parent, the proper officers and directors of the Company as of
      the
      Effective Time shall, for and on behalf and in the name of the Company or
      otherwise, execute and deliver all such deeds, bills of sale, assignments and
      other instruments and shall take or cause to be taken such further actions
      as
      Parent, Acquisition Corp. or their respective successors or assigns reasonably
      may deem necessary or desirable in order to confirm or record or otherwise
      transfer to the Surviving Corporation title to and possession of all of the
      properties, rights, privileges, powers, franchises and immunities of the Company
      or otherwise to carry out fully the provisions and purposes of this Agreement
      and the Certificate of Merger. 

     

    2 2. Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to Parent and Acquisition Corp. as
      follows:

     

    2.1 Organization,
      Standing, Subsidiaries, Etc.

     

    (a) The
      Company is a corporation duly organized and existing in good standing under
      the
      laws of the State of Delaware, and has all requisite power and authority
      (corporate and other) to carry on its business, to own or lease its properties
      and assets, to enter into this Agreement and the Articles of Merger and to
      carry
      out the terms hereof and thereof. Copies of the Certificate of Incorporation
      and
      Bylaws of the Company that have been delivered to Parent and Acquisition Corp.
      prior to the execution of this Agreement are true and complete and have not
      since been amended or repealed.

     

    (b) Other
      than Company’s wholly-owned subsidiary, Harbin Yingxia Industrial Group Co. Ltd,
      a corporation duly organized and existing in good standing under the laws of
      the
      Republic of China (the “Subsidiary”),
      Company has no other subsidiaries or direct or indirect interest (by way of
      stock ownership or otherwise) in any firm, corporation, limited liability
      company, partnership, association or business. Company owns all of the issued
      and outstanding capital stock of Subsidiary free and clear of all Liens, and
      Subsidiary has no outstanding options, warrants or rights to purchase capital
      stock or other equity securities of Subsidiary, other than the capital stock
      owned by Company. Unless the content otherwise requires, all references in
      this
      Section 2 to the “Company” shall be treated as being a reference to the Company
      and Subsidiary taken together as one enterprise. 

     

    2.2 Qualification.
      The
      Company is duly qualified to conduct business as a foreign corporation and
      is in
      good standing in each jurisdiction wherein the nature of its activities or
      its
      properties owned or leased makes such qualification necessary, except where
      the
      failure to be so qualified would not have a material adverse effect on the
      condition (financial or otherwise), properties, assets, liabilities, business
      operations, results of operations or prospects of the Company taken as a whole
      (the “Condition
      of the Company”). 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.3 Capitalization
      of the Company.
      The
      authorized capital stock of the Company consists of 60,000,000 shares of Company
      Common Stock, par value $.0001 per share, no shares of Preferred Stock, and
      the
      Company has no authority to issue any other capital stock. There are 10,000
      shares of Company Common Stock issued and outstanding, and such issued shares
      are duly authorized, validly issued, fully paid and nonassessable, and none
      of
      such shares have been issued in violation of the preemptive rights of any
      person. Except as disclosed in Schedule
      2.5,
      the
      Company has no outstanding options, rights or commitments to issue Company
      Common Stock or other Equity Securities of the Company, and there are no
      outstanding securities convertible or exercisable into or exchangeable for
      Company Common Stock or other Equity Securities of the Company. 

     

    2.4 Indebtedness.
      The
      Company has no Indebtedness for Borrowed Money, except as disclosed on the
      Balance Sheet and Schedule
      2.4.

     

    2.5 Company
      Stockholders. Schedule
      2.5
      hereto
      contains a true and complete list of the record owner of all of the outstanding
      shares of Company Common Stock together with the number of securities held.
      To
      the knowledge of the Company, except as described in Schedule
      2.5,
      there
      is no voting trust, agreement or arrangement among any of the beneficial holders
      of Common Stock affecting the nomination or election of directors or the
      exercise of the voting rights of Company Stock.

     

    2.6 Corporate
      Acts and Proceedings.
      The
      execution, delivery and performance of this Agreement and the Certificate of
      Merger (together, the “Merger
      Documents”)
      have
      been duly authorized by the Board of Directors of the Company and have been
      approved by the requisite vote of the Stockholders, and all of the corporate
      acts and other proceedings required for the due and valid authorization,
      execution, delivery and performance of the Merger Documents
      and the
      consummation of the Merger have been validly and appropriately taken, except
      for
      the filing referred to in Section
      1.2.

     

    2.7 Compliance
      with Laws and Instruments.
      The
      execution, delivery and performance by the Company of the Merger Documents
      and
      the consummation by the Company of the transactions contemplated by this
      Agreement will not cause the Company to violate or contravene (i) any provision
      of law, (ii) any rule or regulation of any agency or government (iii) any order,
      judgment or decree of any court, or (v) any provision of their respective
      certificates of incorporation or by-laws as amended and in effect on and as
      of
      the Closing Date and will not violate or be in conflict with, result in a breach
      of or constitute (with or without notice or lapse of time, or both) a default
      under any material indenture, loan or credit agreement, deed of trust, mortgage,
      security agreement or other agreement or contract to which the Company is a
      party or by which Company or any of its respective properties is
      bound.

     

    2.8 Binding
      Obligations. The
      Merger Documents constitute the legal, valid and binding obligations of the
      Company and are enforceable against the Company in accordance with their
      respective terms, except as such enforcement is limited by bankruptcy,
      insolvency and other similar laws affecting the enforcement of creditors’ rights
      generally and by general principles of equity.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.9 Broker’s
      and Finder’s Fees.
      No
      Person has, or as a result of the transactions contemplated or described herein
      will have, any right or valid claim against the Company, Parent, Acquisition
      Corp. or any Stockholder for any commission, fee or other compensation as a
      finder or broker, or in any similar capacity, except as disclosed in
Schedule
      2.9
      hereto.
      Parent
      and Acquisition on the one hand and the Company on the other, hereby indemnify
      and hold each other harmless from and against any and all claims, losses or
      liabilities for any such commission, fee or other compensation as a result
      of
      the claim by any other Person that the indemnifying party or parties introduced
      or assisted them in connection with the transactions contemplated or described
      here. 

     

    2.10 Financial
      Statements.
      Attached
      hereto as Schedule
      2.10
      are the
      Company’s audited balance sheets (the “Balance
      Sheet”)
      for
      the year ended December 31, 2005
      (the
“Balance
      Sheet Date”).
      Such
      financial statements (i) are in accordance with the books and records of the
      Company, (ii) present fairly in all material respects the financial condition
      of
      the Company at the dates therein specified and the results of its operations
      and
      changes in financial position for the periods therein specified and (iii) have
      been prepared in accordance with generally accepted accounting principles
      (“GAAP”)
      applied on a basis consistent with prior accounting periods.

     

    2.11 Absence
      of Undisclosed Liabilities. The
      Company has no material obligation or liability (whether accrued, absolute,
      contingent, liquidated or otherwise, whether due or to become due), arising
      out
      of any transaction entered into at or prior to the Closing, (b) to the extent
      set forth on or reserved against in the Balance Sheet or the Notes to the
      Financial Statements, (c) current liabilities incurred and obligations under
      agreements entered into in the usual and ordinary course of business since
      the
      Balance Sheet Date, none of which (individually or in the aggregate) has had
      or
      will have a material adverse effect on the Condition of the Company, and (d)
      by
      the specific terms of any written agreement, document or arrangement identified
      in the Schedules.

     

    2.12 Changes.
      Since
      the Balance Sheet Date, the Company has not (a) incurred any debts, obligations
      or liabilities, absolute, accrued, contingent or otherwise, whether due or
      to
      become due, except for fees, expenses and current liabilities incurred in the
      usual and ordinary course of business, (b) discharged or satisfied any Liens
      other than those securing, or paid any obligation or liability other than,
      current liabilities shown on the Balance Sheet and current liabilities incurred
      since the Balance Sheet Date, in each case in the usual and ordinary course
      of
      business, (c) mortgaged, pledged or subjected to Lien any of its assets,
      tangible or intangible other than in the usual and ordinary course of business,
      (d) sold, transferred or leased any of its assets, except in the usual and
      ordinary course of business, (e) cancelled or compromised any debt or claim,
      or
      waived or released any right, of material value, (f) suffered any physical
      damage, destruction or loss (whether or not covered by insurance) materially
      and
      adversely affecting the Condition of the Company, (g) entered into any
      transaction other than in the usual and ordinary course of business, (h)
      encountered any labor union difficulties, (i) declared or paid any dividends
      on
      or made any other distributions with respect to, or purchased or redeemed,
      any
      of its outstanding capital stock, (j) suffered or experienced any change in,
      or
      condition affecting, the Condition of the Company other than changes, events
      or
      conditions in the usual and ordinary course of its business, none of which
      (either by itself or in conjunction with all such other changes,
      events and conditions) has been materially adverse, (k) made any change in
      the
      accounting principles, methods or practices followed by it or depreciation
      or
      amortization policies or rates theretofore adopted, (l) made or permitted any
      amendment or termination of any material contract, agreement or license to
      which
      it is a party, (m) suffered any material loss not
      reflected in the Balance Sheet or its statement of income for the year ended
      on
      the Balance Sheet Date, or (n) entered into any agreement, or otherwise
      obligated itself, to do any of the foregoing.

     

     

    
      
        
        

      

      
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    2.13 Intentionally
      Omitted.

     

    2.14 Employees.
      The
      Company has complied in all material respects with all laws relating to the
      employment of labor, and the Company has encountered no material labor union
      difficulties. Other than pursuant to ordinary arrangements of employment
      compensation, the Company is not under any obligation or liability to any
      officer, director or employee of the Company.

     

    2.15 Tax
      Returns and Audits.
      All
      required federal, state and local Tax Returns of the Company have been
      accurately prepared and duly and timely filed or extensions with respect thereto
      have been granted, and all federal, state and local Taxes required to be paid
      with respect to the periods covered by such returns have been paid. The Company
      is not and has not been delinquent in the payment of any Tax. The Company has
      not had a Tax deficiency proposed or assessed against it and has not executed
      a
      waiver of any statute of limitations on the assessment or collection of any
      Tax.
      None of the Company’s federal income tax returns nor any state or local income
      or franchise tax returns has been audited by governmental authorities. The
      reserves for Taxes reflected on the Balance Sheet are and will be sufficient
      for
      the payment of all unpaid Taxes payable by the Company as of the Balance Sheet
      Date. Since the Balance Sheet Date, the Company has made adequate provisions
      on
      its books of account for all Taxes with respect to its business, properties
      and
      operations for such period. The Company has withheld or collected from each
      payment made to each of its employees the amount of all taxes (including, but
      not limited to, federal, state and local income taxes, Federal Insurance
      Contribution Act taxes and Federal Unemployment Tax Act taxes) required to
      be
      withheld or collected therefrom, and has paid the same to the proper Tax
      receiving officers or authorized depositaries. There are no federal, state,
      local or foreign audits, actions, suits, proceedings, investigations, claims
      or
      administrative proceedings relating to Taxes or any Tax Returns of the Company
      now pending, and the Company has not received any notice of any proposed audits,
      investigations, claims or administrative proceedings relating to Taxes or any
      Tax Returns. The
      Company is not obligated to make a payment, or is a party to an agreement that
      under certain circumstances could obligate it to make a payment, that would
      not
      be deductible under Section 280G of the Code. The
      Company has not agreed nor is required to make any adjustments under Section
      481(a) of the Code (or any similar provision of state, local and foreign law)
      by
      reason of a change in accounting method or otherwise for any Tax period for
      which the applicable statute of limitations has not yet expired. The Company
      (i)
      is not a party to, is bound by or has any obligation
      under, any Tax sharing agreement, Tax indemnification agreement or similar
      contract or arrangement, whether written or unwritten (collectively,
“Tax
      Sharing Agreements”),
      or (ii)
      does not have any potential liability or obligation to any person as a result
      of, or pursuant to, any such Tax Sharing Agreements.

     

    2.16 
      [Intentionally Omitted]

     

    
      
        
        

      

      
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    2.17 Employee
      Benefit Plans; ERISA.
      (a)
      The
      Company has no “employee benefit plans” (within the meaning of Section 3(3) of
      the ERISA) nor any other employee benefit or fringe benefit arrangements,
      practices, contracts, policies or programs of any type other than programs
      merely involving the regular payment of wages, commissions, or bonuses
      established, maintained or contributed to by the Company, whether written or
      unwritten and whether or not funded.

     

    2.18 Title
      to Property and Encumbrances. The
      Company has good, valid and indefeasible marketable title to all properties
      and
      assets used in the conduct of its business (except for property held under
      valid
      and subsisting leases which are in full force and effect and which are not
      in
      default) free of all Liens and other encumbrances, except Permitted Liens and
      such ordinary and customary imperfections of title, restrictions and
      encumbrances as do not, individually or in the aggregate, materially detract
      from the value of the property or assets or materially impair the use made
      thereof by the Company in its business. Without limiting the generality of
      the
      foregoing, the Company has good and indefeasible title to all of its properties
      and assets reflected in the Balance Sheet, except for property disposed of
      in
      the usual and ordinary course of business since the Balance Sheet Date and
      for
      property held under valid and subsisting leases which are in full force and
      effect and which are not in default.

     

    2.19 Condition
      of Properties.
      All
      facilities, machinery, equipment, fixtures and other properties owned, leased
      or
      used by the Company are in operating condition and repair, subject to ordinary
      wear and tear, and are adequate and sufficient for the Company’s
      business.

     

    2.20 Insurance
      Coverage.
      There is
      in full force and effect one or more policies of insurance issued by insurers
      of
      recognized responsibility, insuring the Company and its properties, products
      and
      business against such losses and risks, and in such amounts, as are customary
      for corporations engaged in the same or similar business and similarly situated.
      

     

    2.21 Litigation.
      Except
      as disclosed in Schedule
      2.21
      hereto,
      there is no legal action, suit, arbitration or other legal, administrative
      or
      other governmental proceeding pending or, to the best knowledge of the Company,
      threatened against or affecting the Company or its properties, assets or
      business, and after reasonable investigation, the Company is not aware of any
      incident, transaction, occurrence or circumstance that might reasonably be
      expected to result in or form the basis for any such action, suit, arbitration
      or other proceeding. The Company is not in default with respect to any order,
      writ, judgment, injunction, decree, determination or award of any court or
      any
      governmental agency or instrumentality or arbitration authority.

     

    2.22 Licenses.
      The
      Company possesses from all appropriate governmental authorities all licenses,
      permits, authorizations, approvals, franchises and rights necessary for the
      Company to engage in the business currently conducted by it, all of which are
      in
      full force and effect.

     

    2.23 Interested
      Party Transactions.
      Except
      as disclosed in Schedule
      2.23
      hereto,
      no officer, director or stockholder of the Company or any Affiliate or
“associate” (as such term is defined in Rule 405 under the Securities Act)
      of any
      such
      Person or the Company has or has had, either directly or indirectly, (a) an
      interest in any Person that (i) furnishes or sells services or products that
      are
      furnished or sold or are proposed to be furnished or sold by the Company or
      (ii)
      purchases from or sells or furnishes to the Company any goods or services,
      or
      (b) a beneficial interest in any contract or agreement to which the Company
      is a
      party or by which it may be bound or affected.

     

    
      
        
        

      

      
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    2.24 Environmental
      Matters

     

    (a) To
      the
      knowledge of the Company, the Company has never generated, used, handled,
      treated, released, stored or disposed of any Hazardous Materials on any real
      property on which it now has or previously had any leasehold or ownership
      interest, except in compliance with all applicable Environmental
      Laws.

     

    (b) To
      the
      knowledge of the Company, the historical and present operations of the business
      of the Company are in compliance with all applicable Environmental Laws, except
      where any non-compliance has not had and would not reasonably be expected to
      have a material adverse effect on the Condition of the Company.

     

    (c) There
      are
      no material pending or, to the knowledge of the Company, threatened, demands,
      claims, information requests or notices of noncompliance or violation against
      or
      to the Company relating to any Environmental Law; and, to the knowledge of
      the
      Company, there are no conditions or occurrences on any of the real property
      used
      by the Company in connection with its business that would reasonably be expected
      to lead to any such demands, claims or notices against or to the Company, except
      such as have not had, and would not reasonably be expected to have, a material
      adverse effect on the Condition of the Company.

     

    (d) To
      the
      knowledge of the Company, (i) the Company has not, sent or disposed of,
      otherwise had taken or transported, arranged for the taking or disposal of
      (on
      behalf of itself, a customer or any other party) or in any other manner
      participated or been involved in the taking of or disposal or release of a
      Hazardous Material to or at a site that is contaminated by any Hazardous
      Material or that, pursuant to any Environmental Law, (A) has been placed on
      the
“National Priorities List”, the “CERCLA” list, or any similar state or federal
      list, or (B) is subject to or the source of a claim, an administrative order
      or
      other request to take “removal”, “remedial”, “corrective” or any other
“response” action, as defined in any Environmental Law, or to pay for the costs
      of any such action at the site; (ii) the Company is not involved in (and has
      no
      basis to reasonably expect to be involved in) any suit or proceeding and has
      not
      received (and has no basis to reasonably expect to receive) any notice, request
      for information or other communication from any governmental authority or other
      third party with respect to a release or threatened release of any Hazardous
      Material or a violation or alleged violation of any Environmental Law, and
      has
      not received (and has no basis to reasonably expect to receive) notice of any
      claims from any Person relating to property damage, natural resource damage
      or
      to personal injuries from exposure to any Hazardous Material; and (iii) the
      Company has timely filed every report required to be filed, acquired all
      necessary certificates, approvals and permits, and generated and maintained
      all
      required data, documentation and records under all Environmental Laws, in all
      such instances except where the failure to do so would not reasonably be
      expected to have, individually or in the aggregate, a material adverse effect
      on
      the Condition of the Company.

     

    2.25 Receivables.
      The
      accounts receivable shown on the Balance Sheet (net of the allowance for
      doubtful accounts in the amount appearing thereon) have been collected or are,
      to the knowledge of the Company, collectible in the usual and ordinary course
      of
      the Company’s business in the amounts thereof shown on the Balance Sheet. The
      accounts receivable of the Company acquired after the Balance Sheet Date and
      prior to the Closing Date will be reflected on the books of account of the
      Company at 100% of the amount thereof and have been collected, or are, to the
      knowledge of the Company, collectible in the usual and ordinary course of the
      Company’s business, in the full amounts thereof (less normal allowances for
      doubtful accounts). All of the accounts receivable reflected on the Balance
      Sheet and all accounts receivable which have arisen since the Balance Sheet
      Date
      are valid and enforceable claims, and the goods and services sold and delivered
      which gave rise to such accounts receivable were sold and delivered in
      conformity with all applicable express and implied warranties, purchase orders,
      agreements and specifications, and, to knowledge of the Company, are not subject
      to any valid defense or offset.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    2.26 Inventories.
      The
      inventories of the Company which are reflected in the Balance Sheet and all
      inventory items which have been acquired since the Balance Sheet Date consist
      of
      raw materials, supplies, work-in-process and finished goods of such quality
      and
      in such quantities as are being used and will be usable or are being sold and
      will be saleable in the ordinary course of its business with full mark-up at
      prevailing market prices, except to the extent of reserves for obsolete and
      slow-moving inventories reflected in the Balance Sheet. Such inventories are
      valued at the lower of cost or fair market value and were determined in
      accordance with generally accepted accounting principles consistently applied.
      The Company has not experienced, nor has any reason to believe that it will
      experience in the foreseeable future, any material difficulty in obtaining,
      in
      the desired quantity and quality and upon reasonable terms and conditions,
      the
      raw materials, supplies or component products required for the manufacture,
      assembly or production of its products.

     

    2.27 Customers,
      Suppliers and Independent Contractors.
      Since
      the Balance Sheet Date, the Company has not been advised that any customer,
      supplier or independent contractor of the Company intends to terminate or
      materially curtail its business relationship with the Company.

     

    2.28 Duty
      to Make Inquiry.
      To the
      extent that any of the representations or warranties in this Section 2 are
      qualified by “knowledge” or “belief,” the Company represents and warrants that
      it has made due and reasonable inquiry and investigation concerning the matters
      to which such representations and warranties relate, including, but not limited
      to, diligent inquiry of its directors, officers and key personnel.

     

    2.29 Disclosure.
      There is
      no fact relating to the Company that the Company has not disclosed to Parent
      and
      Acquisition Corp. in writing which has had or is currently having a material
      and
      adverse effect nor, insofar as the Company can now foresee, will materially
      and
      adversely affect, the Condition of the Company. No representation or warranty
      by
      the Company herein and no information disclosed in the schedules or exhibits
      hereto by the Company contains any untrue statement of a material fact or omits
      to state a material fact necessary to make the statements contained herein
      or
      therein not misleading.

     

    2.30 Questionable
      Payments. Neither
      the Company nor any director, officer or, to the best knowledge of the Company,
      agent, employee or other Person associated with or acting on behalf of the
      Company, has used any corporate funds for unlawful contributions, gifts,
      entertainment or other unlawful expenses relating to political activity; made
      any direct or indirect unlawful payments to government officials or employees
      from corporate funds; established or maintained any unlawful or unrecorded
      fund
      of corporate monies or other assets; made any false or fictitious entries on
      the
      books of record of any such corporations; or made any bribe, rebate, payoff,
      influence payment, kickback or other unlawful payment.

     

    
      
        
        

      

      
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    2.31 Obligations
      to or by Stockholders.
      Except
      as disclosed in Schedule
      2.31,
      other
      than for accrued salary of employees of the Company who are also Stockholders
      and legal fees owed to the Law Firm of Anslow & Jaclin, LLP, the Company has
      no liability or obligation or commitment to any Stockholder or any Affiliate
      or
“associate” (as such term is defined in Rule 405 under the Securities Act) of
      any Stockholder, nor does any Stockholder or any such Affiliate or associate
      have any liability, obligation or commitment to the Company.

     

    3 3. Representations
      and Warranties of Parent and Acquisition Corp.

     

     
      Parent
      and Acquisition Corp. represent and warrant to the Company as
      follows:

     

    3.1 Organization
      and Standing. 

     

    (a) Parent
      is
      a corporation duly organized and existing in good standing under the laws of
      the
      State of Florida. Acquisition Corp. is a corporation duly organized and existing
      in good standing under the laws of the State of Florida. Parent and Acquisition
      Corp. have heretofore delivered to the Company complete and correct copies
      of
      their respective Certificates of Incorporation and Bylaws as now in effect.
      Parent and Acquisition Corp. have full corporate power and authority to carry
      on
      their respective businesses as they are now being conducted and as now proposed
      to be conducted and to own or lease their respective properties and assets.
      

     

    (b)Except
      for Parent’s wholly-owned subsidiary, American Waste Recovery, Inc., neither
      Parent nor Acquisition Corp. has any other subsidiaries (except Parent’s
      ownership of American Waste Recovery, Inc. and Acquisition Corp.) or direct
      or
      indirect interest (by way of stock ownership or otherwise) in any firm,
      corporation, limited liability company, partnership, association or business.
      Parent owns all of the issued and outstanding capital stock of American Waste
      Recovery, Inc. and Acquisition Corp. free and clear of all Liens, and American
      Waste Recovery, Inc. and Acquisition Corp. have no outstanding options, warrants
      or rights to purchase capital stock or other equity securities of American
      Waste
      Recovery, Inc. or Acquisition Corp., other than the capital stock owned by
      Parent. Unless the content otherwise requires, all references in this Section
      3
      to the “Parent” shall be treated as being a reference to the Parent, American
      Waste Recovery, Inc., and Acquisition Corp. taken together as one
      enterprise.

     

    3.2 Corporate
      Authority.
      Each of
      Parent and/or Acquisition Corp. (as the case may be) has full corporate power
      and authority to enter into the Merger Documents and the other agreements to
      be
      made pursuant to the Merger Documents, and to carry out the transactions
      contemplated hereby and thereby. All corporate acts and proceedings required
      for
      the authorization, execution, delivery and performance of the Merger Documents
      and such other agreements and documents by Parent and/or Acquisition Corp.
      (as
      the case may be) have been duly and validly taken or will have been so taken
      prior to the Closing. Each of the Merger Documents constitutes a legal, valid
      and binding obligation of Parent and/or Acquisition Corp. (as the case may
      be),
      each enforceable against them in accordance with their respective terms, except
      as such enforcement may be limited by bankruptcy, insolvency, reorganization
      or
      other similar laws affecting creditors’ rights generally and by general
      principles of equity.

     

    
      
        
        

      

      
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    3.3 Broker’s
      and Finder’s Fees.
      No
      person, firm, corporation or other entity is entitled by reason of any act
      or
      omission of Parent or Acquisition Corp. to any broker’s or finder’s fees,
      commission or other similar compensation with respect to the execution and
      delivery of this Agreement or the Certificate of Merger, or with respect to
      the
      consummation of the transactions contemplated hereby or thereby, except as
      disclosed in Schedule
      3.3
      hereto.
      Parent
      and Acquisition Corp. jointly and severally indemnify and hold Company harmless
      from and against any and all loss, claim or liability arising out of any such
      claim from any other Person who claim they introduced Parent or Acquisition
      Corp. to, or assisted them with the transactions contemplated by or described
      herein. 

     

    3.4 Capitalization
      of Parent. The
      authorized capital stock of Parent consists of (a) 100,000,000 shares of common
      stock, par value $0.001 per share (the “Parent
      Common Stock”),
      of
      which not more than 45,188,525 shares will be, prior to the Effective Time,
      issued and outstanding, and (b) 10,000,000 shares of preferred stock, par value
      $.001 per share, of which 1,473,650
      are
      designated as Class A Preferred Stock, and no shares are issued and outstanding
      on the date hereof. Except
      as
      disclosed in Schedule
      3.4,
      Parent
      has no outstanding options, rights or commitments to issue shares of Parent
      Common Stock or any other Equity Security of Parent or Acquisition Corp., and
      there are no outstanding securities convertible or exercisable into or
      exchangeable for shares of Parent Common Stock or any other Equity Security
      of
      Parent or Acquisition Corp. There is no voting trust, agreement or arrangement
      among any of the beneficial holders of Parent Common Stock affecting the
      nomination or election of directors or the exercise of the voting rights of
      Parent Common Stock. All outstanding shares of the capital stock of Parent
      are
      validly issued and outstanding, fully paid and nonassessable, and none of such
      shares have been issued in violation of the preemptive rights of any
      person.

     

    3.5 Acquisition
      Corp.

     

     Acquisition
      Corp. is a wholly-owned subsidiary of Parent that was formed specifically for
      the purpose of the Merger and that has not conducted any business or acquired
      any property, and will not conduct any business or acquire any property prior
      to
      the Closing Date, except in preparation for and otherwise in connection with
      the
      transactions contemplated by this Agreement, the Certificate of Merger and
      the
      other agreements to be made pursuant to or in connection with this Agreement
      and
      the Certificate of Merger.

     

    3.6 Validity
      of Shares.
      The
      shares of Parent Common Stock and Parent Class A Preferred Stock to be issued
      at
      the Closing pursuant to Section
      1.5(a)(ii)
      hereof,
      when issued and delivered in accordance with the terms hereof and of the
      Certificate of Merger, shall be duly and validly issued, fully paid and
      nonassessable. The issuance of the Parent Common Stock and Parent Class A
      Preferred Stock upon the Merger pursuant to Section
      1.5(a)(ii)
      will be
      exempt from the registration and prospectus delivery requirements of the
      Securities Act under Section 4(2) and from the qualification or registration
      requirements of any applicable state blue sky or securities laws.

     

    3.7 SEC
      Reporting and Compliance. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (a)  Parent
      filed a registration statement on Form 10-SB under the Securities Act which
      became effective on July 16, 2000. Since that date, Parent has filed with the
      Commission all registration statements, proxy statements, information statements
      and reports required to be filed pursuant to the Exchange Act. Parent
      has not filed with the Commission a certificate on Form 15 pursuant to Rule
      12h-3 of the Exchange Act.

     

    (b) Parent
      has delivered to the Company true and complete copies of the registration
      statements, information statements and other reports (collectively, the
“Parent
      SEC Documents”)
      filed
      by the Parent with the Commission. None of the Parent SEC Documents, as of
      their
      respective dates, contained any untrue statement of a material fact or omitted
      to state a material fact necessary in order to make the statements contained
      therein not misleading.

     

    (c) Except
      as
      set forth on Schedule
      3.7,
      Parent
      has not filed, and nothing has occurred with respect to which Parent would
      be
      required to file, any report on Form 8-K since February 22, 2006 and Form 10-KSB
      or 10-QSB since April 14, 2006. Prior to and until the Closing, Parent will
      provide to the Company copies of any and all amendments or supplements to the
      Parent SEC Documents filed with the Commission since April 14, 2006 and all
      subsequent registration statements and reports filed by Parent subsequent to
      the
      filing of the Parent SEC Documents with the Commission and any and all
      subsequent information statements, proxy statements, reports or notices filed
      by
      the Parent with the Commission or delivered to the stockholders of
      Parent.

     

    (d) Parent
      is
      not an investment company within the meaning of Section 3 of the Investment
      Company Act.

     

    (e) The
      shares of Parent Common Stock are quoted on the Over-the-Counter (OTC) Bulletin
      Board under the symbol “AGNI,” and Parent is in compliance in all material
      respects with all rules and regulations of the OTC Bulletin Board applicable
      to
      it and the Parent Stock.

     

    (f) Between
      the date hereof and the Closing Date, Parent shall continue to timely satisfy
      the filing requirements of the Exchange Act and all other requirements of
      applicable securities laws and the OTC Bulletin Board including, but not limited
      to the timely filing of notices required by Rule 10b-17 under the Securities
      Act.

     

    (g) To
      the
      best knowledge of the Parent, the Parent has otherwise complied with the
      Securities Act, Exchange Act and all other applicable federal and state
      securities laws.

     

    (h) Parent
      is
      not a “blank check company” subject to the requirements of Rule 419 of the
      Securities Act.

     

    3.8 Financial
      Statements.
      The
      balance sheets, and statements of income, changes in financial position and
      stockholders’ equity contained in the Parent SEC Documents (the “Parent
      Financial Statements”)
      (i)
      have been prepared in accordance with GAAP applied on a basis consistent with
      prior periods (and, in the case of unaudited financial information, on a basis
      consistent with year-end audits), (ii) are in accordance with the books and
      records of the Parent, and (iii) present fairly in all material respects the
      financial condition of the Parent at the dates therein specified and the results
      of its operations and changes in financial position for the periods therein
      specified. The financial statements included in the Annual Report on Form 10-KSB
      for the fiscal year ended December 31, 2005, are as audited by, and include
      the
      related opinions of Lancaster & David, Chartered Accountants, Parent’s
      independent certified public accountants. The financial information included
      in
      the Quarterly Reports on Form 10-QSB for the quarters ended June 30, 2005 and
      March 31, 2005 are unaudited, but reflect all adjustments (including normally
      recurring accounts) that Parent considers necessary for a fair presentation
      of
      such information and have been prepared in accordance with generally accepted
      accounting principles, consistently applied.

     

     

    
      
        
        

      

      
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    3.9 Governmental
      Consents.
      All
      material consents, approvals, orders, or authorizations of, or registrations,
      qualifications, designations, declarations, or filings with any federal or
      state
      governmental authority on the part of Parent or Acquisition Corp. required
      in
      connection with the consummation of the Merger shall have been obtained prior
      to, and be effective as of, the Closing.

     

    3.10 Compliance
      with Laws and Other Instruments.
      The
      business, products and operations of Parent and/or Acquisition Corp. have been
      and are being conducted in compliance in all material respects with all
      applicable laws, rules and regulations, except for such violations thereof
      for
      which the penalties, in the aggregate, would not have a material adverse effect
      on the Condition of t Parent and/or Acquisition Corp. The execution, delivery
      and performance by Parent and/or Acquisition Corp. of this Agreement, the
      Certificate of Merger and the other agreements to be made by Parent or
      Acquisition Corp. pursuant to or in connection with this Agreement or the
      Articles of Merger and the consummation by Parent and/or Acquisition Corp.
      of
      the transactions contemplated by the Merger Documents (a) will not require
      any
      authorization, consent or approval of, or filing or registration with, any
      court
      or governmental agency or instrumentality, except such as shall have been
      obtained prior to the Closing or as set forth in Schedule
      3.10,
      (b)
      will not cause the Parent and/or Acquisition Corp. to violate or contravene
      (i)
      any provision of law, (ii) any rule or regulation of any agency or government,
      (iii) any order, judgment or decree of any court, or (iv) any provision of
      the
      Certificate of Incorporation or Bylaws of the Parent and/or Acquisition Corp.,
      (c) will not violate or be in conflict with, result in a breach of or constitute
      (with or without notice or lapse of time, or both) a default under, any
      indenture, loan or credit agreement, deed of trust, mortgage, security agreement
      or other contract, agreement or instrument to which the Parent and/or
      Acquisition Corp. is a party or by which Parent and/or Acquisition Corp. or
      any
      of its properties is bound or affected, except as would not have a material
      adverse effect on the Condition of Parent and/or Acquisition Corp. and (d)
      will
      not result in the creation or imposition of any Lien upon any property or asset
      of Parent and/or Acquisition Corp. Parent and/or Acquisition Corp. are not
      in
      violation of, or (with or without notice or lapse of time, or both) in default
      under, any term or provision of their Certificate of Incorporation or Bylaws
      or
      of any indenture, loan or credit agreement, deed of trust, mortgage, security
      agreement or, except as would not materially and adversely affect the Condition
      of Parent and/or Acquisition Corp. or any other material agreement or instrument
      to which Parent and/or Acquisition Corp. is a party or by which Parent and/or
      Acquisition Corp. or any of its properties is bound or affected.

     

    3.11 No
      General Solicitation.
      In
      issuing Parent Common Stock in the Merger hereunder, neither Parent nor anyone
      acting on its behalf has offered to sell the Parent Common Stock by any form
      of
      general solicitation or advertising.

     

     

    
      
        
        

      

      
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    3.12 Binding
      Obligations.
      The
      Merger Documents constitute the legal, valid and binding obligations of the
      Parent and Acquisition Corp., and are enforceable against the Parent and
      Acquisition Corp., in accordance with their respective terms, except as such
      enforcement is limited by bankruptcy, insolvency and other similar laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity. 

     

    3.13 Absence
      of Undisclosed Liabilities.
      Neither
      Parent nor Acquisition Corp. has any material obligation or liability (whether
      accrued, absolute, contingent, liquidated or otherwise, whether due or to become
      due), arising out of any transaction entered into at or prior to the Closing,
      except (a) as disclosed in the Parent SEC Documents, (b) to the extent set
      forth
      on or reserved against in the balance sheet of Parent as of December 31, 2005
      (the “Parent
      Balance Sheet”)
      or the
      Notes to the Parent Financial Statements, (c) current liabilities incurred
      and
      obligations under agreements entered into in the usual and ordinary course
      of
      business since December 31, 2005 (the “Parent
      Balance Sheet Date”),
      none
      of which (individually or in the aggregate) materially and adversely affects
      the
      condition (financial or otherwise), properties, assets, liabilities, business
      operations, results of operations or prospects of the Parent or Acquisition
      Corp., taken as a whole (the “Condition
      of the Parent”),
      (d)
      by the specific terms of any written agreement, document or arrangement attached
      as an exhibit to the Parent SEC Documents, and (e) as disclosed in Schedule
      3.13 hereto.

     

    3.14 Changes.
      Since
      the Parent Balance Sheet Date, except as disclosed in Schedule
      3.14
      hereto
      and in the Parent SEC Documents, the Parent has not (a) incurred any debts,
      obligations or liabilities, absolute, accrued or, to the Parent’s knowledge,
      contingent, whether due or to become due, except for current liabilities
      incurred in the usual and ordinary course of business, (b) discharged or
      satisfied any Liens other than those securing, or paid any obligation or
      liability other than, current liabilities shown on the Parent Balance Sheet
      and
      current liabilities incurred since the Parent Balance Sheet Date, in each case
      in the usual and ordinary course of business, (c) mortgaged, pledged or
      subjected to Lien any of its assets, tangible or intangible, other than in
      the
      usual and ordinary course of business, (d) sold, transferred or leased any
      of
      its assets, except in the usual and ordinary course of business, (e) cancelled
      or compromised any debt or claim, or waived or released any right of material
      value, (f) suffered any physical damage, destruction or loss (whether or not
      covered by insurance) which could reasonably be expected to have a material
      adverse effect on the Condition of the Parent, (g) entered into any transaction
      other than in the usual and ordinary course of business, (h) encountered any
      labor union difficulties, (i) made or granted any wage or salary increase or
      made any increase in the amounts payable under any profit sharing, bonus,
      deferred compensation, severance pay, insurance, pension, retirement or other
      employee benefit plan, agreement or arrangement, other than in the ordinary
      course of business consistent with past practice, or entered into any employment
      agreement, (j) issued or sold any shares of capital stock, bonds, notes,
      debentures or other securities or granted any options (including employee stock
      options), warrants or other rights with respect thereto, (k) declared or paid
      any dividends on or made any other distributions with respect to, or purchased
      or redeemed, any of its outstanding capital stock, (l) suffered or experienced
      any change in, or condition affecting, the financial condition of the Parent
      other than changes, events or conditions in the usual and ordinary course of
      its
      business, none of which (either by itself or in conjunction with all such other
      changes, events and conditions) could reasonably be expected to have a material
      adverse effect on the Condition of the Parent, (m) made any change in the
      accounting principles, methods or practices followed by it or depreciation
      or
      amortization policies or rates theretofore adopted, (n) made or permitted any
      amendment or termination of any material contract, agreement or license to
      which
      it is a party, (o) suffered any material loss not reflected in the Parent
      Balance Sheet or its statement of income for the year ended on the Parent
      Balance Sheet Date, (p) paid, or made any accrual or arrangement for payment
      of,
      bonuses or special compensation of any kind or any severance or termination
      pay
      to any present or former officer, director, employee, stockholder or consultant,
      (q) made or agreed to make any charitable contributions or incurred any
      non-business expenses in excess of $5,000 in the aggregate, or (r) entered
      into
      any agreement, or otherwise obligated itself, to do any of the
      foregoing.

     

    
      
        
        

      

      
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    3.15 Tax
      Returns and Audits.
      All
      required federal, state and local Tax Returns of the Parent have been accurately
      prepared in all material respects and duly and timely filed, and all federal,
      state and local Taxes required to be paid with respect to the periods covered
      by
      such returns have been paid to the extent that the same are material and have
      become due, except where the failure so to file or pay could not reasonably
      be
      expected to have a material adverse effect upon the Condition of the Parent.
      The
      Parent is not and has not been delinquent in the payment of any Tax. The Parent
      has not had a Tax deficiency assessed against it. None of the Parent’s federal
      income tax returns nor any state or local income or franchise tax returns has
      been audited by governmental authorities. The reserves for Taxes reflected
      on
      the Parent Balance Sheet are sufficient for the payment of all unpaid Taxes
      payable by the Parent with respect to the period ended on the Parent Balance
      Sheet Date. There are no federal, state, local or foreign audits, actions,
      suits, proceedings, investigations, claims or administrative proceedings
      relating to Taxes or any Tax Returns of the Parent now pending, and the Parent
      has not received any notice of any proposed audits, investigations, claims
      or
      administrative proceedings relating to Taxes or any Tax Returns.

     

    3.16 Employee
      Benefit Plans; ERISA. (a)
      Except
      as disclosed in the Parent SEC Documents, there are no “employee benefit plans”
(within the meaning of Section 3(3) of ERISA) nor any other employee benefit
      or
      fringe benefit arrangements, practices, contracts, policies or programs other
      than programs merely involving the regular payment of wages, commissions, or
      bonuses established, maintained or contributed to by the Parent. Any plans
      listed in the Parent SEC Documents are hereinafter referred to as the
“Parent
      Employee Benefit Plans”.

     

    (b) Any
      current and prior material documents, including all amendments thereto, with
      respect to each Parent Employee Benefit Plan have been given to the Company
      or
      its advisors.

     

    (c) All
      Parent Employee Benefit Plans are in material compliance with the applicable
      requirements of ERISA, the Code and any other applicable state, federal or
      foreign law.

     

    (d) There
      are
      no pending, or to the knowledge of the Parent, threatened, claims or lawsuits
      which have been asserted or instituted against any Parent Employee Benefit
      Plan,
      the assets of any of the trusts or funds under the Parent Employee Benefit
      Plans, the plan sponsor or the plan administrator of any of the Parent Employee
      Benefit Plans or against any fiduciary of a Parent Employee Benefit Plan with
      respect to the operation of such plan.

     

    
      
        
        

      

      
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    (e) There
      is
      no pending, or to the knowledge of the Parent, threatened, investigation or
      pending or possible enforcement action by the Pension Benefit Guaranty
      Corporation, the Department of Labor, the Internal Revenue Service or any other
      government agency with respect to any Parent Employee Benefit Plan.

     

    (f) No
      actual
      or, to the knowledge of Parent, contingent liability exists with respect to
      the
      funding of any Parent Employee Benefit Plan or for any other expense or
      obligation of any Parent Employee Benefit Plan, except as disclosed on the
      financial statements of the Parent or the Parent SEC Documents, and to the
      knowledge of the Parent, no contingent liability exists under ERISA with respect
      to any “multi-employer plan,” as defined in Section 3(37) or Section 4001(a)(3)
      of ERISA.

     

    3.17 Litigation.
      Except
      as disclosed in the Parent SEC Documents, there is no legal action, suit,
      arbitration or other legal, administrative or other governmental proceeding
      pending or, to the knowledge of the Parent, threatened against or affecting
      the
      Parent or Acquisition Corp. or their properties, assets or business. To the
      knowledge of the Parent, neither Parent nor Acquisition Corp. is in default
      with
      respect to any order, writ, judgment, injunction, decree, determination or
      award
      of any court or any governmental agency or instrumentality or arbitration
      authority.

     

    3.18 Interested
      Party Transactions.
      Except
      as disclosed in the Parent SEC Documents, no officer, director or stockholder
      of
      the Parent or any Affiliate or “associate” (as such term is defined in Rule 405
      under the Securities Act) of any such Person or the Parent has or has had,
      either directly or indirectly, (a) an interest in any Person that (i) furnishes
      or sells services or products that are furnished or sold or are proposed to
      be
      furnished or sold by the Parent or (ii) purchases from or sells or furnishes
      to
      the Parent any goods or services, or (b) a beneficial interest in any contract
      or agreement to which the Parent is a party or by which it may be bound or
      affected.

     

    3.19 Questionable
      Payments.
      Neither
      the Parent, Acquisition Corp. nor to the knowledge of the Parent, any director,
      officer, agent, employee or other Person associated with or acting on behalf
      of
      the Parent or Acquisition Corp., has used any corporate funds for unlawful
      contributions, gifts, entertainment or other unlawful expenses relating to
      political activity; made any direct or indirect unlawful payments to government
      officials or employees from corporate funds; established or maintained any
      unlawful or unrecorded fund of corporate monies or other assets; made any false
      or fictitious entries on the books of record of any such corporations; or made
      any bribe, rebate, payoff, influence payment, kickback or other unlawful
      payment.

     

    3.20 Obligations
      to or by Stockholders.
      Except
      as disclosed in the Parent SEC Documents, the Parent has no liability or
      obligation or commitment to any stockholder of Parent or any Affiliate or
“associate” (as such term is defined in Rule 405 under the Securities Act) of
      any stockholder of Parent, nor does any stockholder of Parent or any such
      Affiliate or associate have any liability, obligation or commitment to the
      Parent.

     

    3.21 Schedule
      of Assets and Contracts.
      Except
      as expressly set forth in this Agreement, the Parent Balance Sheet or the notes
      thereto, the Parent is not a party to any written or oral agreement not made
      in
      the ordinary course of business that is material to the Parent. Parent does
      not
      own any real property. Parent is not a party to or otherwise barred by any
      written or oral (a) agreement with any labor union, (b) agreement for the
      purchase of fixed assets or for the purchase of materials, supplies or equipment
      in excess of normal operating requirements, (c) agreement for the employment
      of
      any officer, individual employee or other Person on a full-time basis or any
      agreement with any Person for consulting services, (d) bonus, pension, profit
      sharing, retirement, stock purchase, stock option, deferred compensation,
      medical, hospitalization or life insurance or similar plan, contract or
      understanding with respect to any or all of the employees of Parent or any
      other
      Person, (e) indenture, loan or credit agreement, note agreement, deed of trust,
      mortgage, security agreement, promissory note or other agreement or instrument
      relating to or evidencing Indebtedness for Borrowed Money or subjecting any
      asset or property of Parent to any Lien or evidencing any Indebtedness, (f)
      guaranty of any Indebtedness, (g) lease or agreement under which Parent is
      lessee of or holds or operates any property, real or personal, owned by any
      other Person, (h) lease or agreement under which Parent is lessor or permits
      any
      Person to hold or operate any property, real or personal, owned or controlled
      by
      Parent, (i) agreement granting any preemptive right, right of first refusal
      or
      similar right to any Person, (j) agreement or arrangement with any Affiliate
      or
      any “associate” (as such term is defined in Rule 405 under the Securities Act)
      of Parent or any present or former officer, director or stockholder of Parent,
      (k) agreement obligating Parent to pay any royalty or similar charge for the
      use
      or exploitation of any tangible or intangible property, (1) covenant not to
      compete or other restriction on its ability to conduct a business or engage
      in
      any other activity, (m) distributor, dealer, manufacturer’s representative,
      sales agency, franchise or advertising contract or commitment, (n) agreement
      to
      register securities under the Securities Act, (o) collective bargaining
      agreement, or (p) agreement or other commitment or arrangement with any Person
      continuing for a period of more than three months from the Closing Date that
      involves an expenditure or receipt by Parent in excess of $1,000. The Parent
      maintains no insurance policies and insurance coverage of any kind with respect
      to Parent, its business, premises, properties, assets, employees and agents.
      Schedule
      3.15
      contains
      a true and complete list and description of each bank account, savings account,
      other deposit relationship and safety deposit box of Parent, including the
      name
      of the bank or other depository, the account number and the names of the
      individuals having signature or other withdrawal authority with respect thereto.
      Except as disclosed on Schedule
      3.15,
      no
      consent of any bank or other depository is required to maintain any bank
      account, other deposit relationship or safety deposit box of Parent in effect
      following the consummation of the Merger and the transactions contemplated
      hereby. Parent has furnished to the Company true and complete copies of all
      agreements and other documents disclosed or referred to in Schedule
      3.15,
      as well
      as any additional agreements or documents, requested by the
      Company.

     

    
      
        
        

      

      
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    3.22 Employees.
      Other
      than pursuant to ordinary arrangements of employment compensation, Parent is
      not
      under any obligation or liability to any officer, director, employee or
      Affiliate of Parent.

     

    3.23 Disclosure.
      There is
      no fact relating to Parent that Parent has not disclosed to the Company in
      writing that materially and adversely affects nor, insofar as Parent can now
      foresee, will materially and adversely affect, the condition (financial or
      otherwise), properties, assets, liabilities, business operations, results of
      operations or prospects of Parent. No representation or warranty by Parent
      herein and no information disclosed in the schedules or exhibits hereto by
      Parent contains any untrue statement of a material fact or omits to state a
      material fact necessary to make the statements contained herein or therein
      misleading.

     

    3.24 Patents
      and Other Intangible Assets. 

     

    (a)  Except
      as set forth in Schedule
      2.16
      or as
      disclosed in the Memorandum, the Company (i) owns or has the right to use,
      free
      and clear of all Liens, claims and restrictions, all patents, trademarks,
      service marks, trade names, copyrights, licenses and rights with respect to
      the
      foregoing used in or necessary for the conduct of its business as now conducted
      or proposed to be conducted without infringing upon or otherwise acting
      adversely to the right or claimed right of any Person under or with respect
      to
      any of the foregoing and (ii) is not obligated or under any liability to make
      any payments by way of royalties, fees or otherwise to any owner or licensor
      of,
      or other claimant to, any patent, trademark, service mark, trade name, copyright
      or other intangible asset, with respect to the use thereof or in connection
      with
      the conduct of its business or otherwise.

     

    (b)To
      the
      best knowledge of the Company, the Company owns and has the unrestricted right
      to use all trade secrets, if any, including know-how, negative know-how,
      formulas, patterns, programs, devices, methods, techniques, inventions, designs,
      processes, computer programs and technical data and all information that derives
      independent economic value, actual or potential, from not being generally known
      or known by competitors (collectively, “intellectual
      property”)
      required for or incident to the development, operation and sale of all products
      and services sold by the Company, free and clear of any right, Lien or claim
      of
      others; provided,
      however,
      the
      possibility exists that other Persons, completely independent of the Company
      or
      its employees or agents, could have developed intellectual property similar
      or
      identical to that of the Company. Except as set forth in Schedule
      2.16 (b)
      hereof
      or as disclosed in the Memorandum, the Company is not aware of any such
      development of substantially identical trade secrets or technical information
      by
      others.

     

    4. Intentionally
      Omitted.

     

    
      
        
        

      

      
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    5 5. Conduct
      of Businesses Pending the Merger.

     

    5.1 Conduct
      of Business by the Company Pending the Merger.
      Prior to
      the Effective Time, unless Parent or Acquisition Corp. shall otherwise agree
      in
      writing or as otherwise contemplated by this Agreement:

     

    (i) the
      business of the Company shall be conducted only in the ordinary
      course;

     

    (ii) the
      Company shall not (A) directly or indirectly redeem, purchase or otherwise
      acquire or agree to redeem, purchase or otherwise acquire any shares of its
      capital stock; (B) amend its Certificate of Incorporation or Bylaws; or (C)
      split, combine or reclassify the outstanding Company Stock or declare, set
      aside
      or pay any dividend payable in cash, stock or property or make any distribution
      with respect to any such stock.

     

    (iii) the
      Company shall not (A) issue or agree to issue any additional shares of, or
      options, warrants or rights of any kind to acquire any shares of, Company Stock,
      except to issue shares of Company Common Stock in connection with the exercise
      of stock options outstanding on the date hereof; (B) acquire or dispose of
      any
      fixed assets or acquire or dispose of any other substantial assets other than
      in
      the ordinary course of business; (C) incur additional Indebtedness or any other
      liabilities or enter into any other transaction other than in the ordinary
      course of business; (D) enter into any contract, agreement, commitment or
      arrangement with respect to any of the foregoing; or (E) except as contemplated
      by this Agreement, enter into any contract, agreement, commitment or arrangement
      to dissolve, merge, consolidate or enter into any other material business
      combination;

     

    
      
        
        

      

      
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    (iv) the
      Company shall use its best efforts to preserve intact the business organization
      of the Company, to keep available the service of its present officers and key
      employees, and to preserve the good will of those having business relationships
      with it; and

     

    (v) the
      Company will not, nor will it authorize any director or authorize or permit
      any
      officer or employee or any attorney, accountant or other representative retained
      by it to, make, solicit, encourage any inquiries with respect to, or engage
      in
      any negotiations concerning, any Acquisition Proposal (as defined below). The
      Company will promptly advise Parent orally and in writing of any such inquiries
      or proposals (or requests for information) and the substance thereof. As used
      in
      this paragraph, “Acquisition
      Proposal”
shall
      mean any proposal for a merger or other business combination involving the
      Company or for the acquisition of a substantial equity interest in it or any
      material assets of it other than as contemplated by this Agreement. The Company
      will immediately cease and cause to be terminated any existing activities,
      discussions or negotiations with any person conducted heretofore with respect
      to
      any of the foregoing.

     

    5.2 Conduct
      of Business by Parent and Acquisition Corp. Pending the
      Merger.
      Prior to
      the Effective Time, unless the Company shall otherwise agree in writing or
      as
      otherwise contemplated by this Agreement:

     

    (i) the
      business of Parent and Acquisition Corp. shall be conducted only in the ordinary
      course; provided,
      however,
      that
      Parent shall take the steps necessary to have discontinued its existing business
      without liability to Parent or Acquisition Corp. as of the Closing
      Date;

     

    (ii) neither
      Parent nor Acquisition Corp. shall (A) directly or indirectly redeem, purchase
      or otherwise acquire or agree to redeem, purchase or otherwise acquire any
      shares of its capital stock; (B) amend its certificate of incorporation or
      bylaws other than as reasonably requested by the Company; or (C) split, combine
      or reclassify its capital stock or declare, set aside or pay any dividend
      payable in cash, stock or property or make any distribution with respect to
      such
      stock; and

     

    (iii) neither
      Parent nor Acquisition Corp. shall (A) issue or agree to issue any additional
      shares of, or options, warrants or rights of any kind to acquire shares of,
      its
      capital stock; (B) acquire or dispose of any assets other than in the ordinary
      course of business (except for dispositions in connection with Section 5.2(i)
      hereof); (C) incur additional Indebtedness or any other liabilities or enter
      into any other transaction except in the ordinary course of business; (D) enter
      into any contract, agreement, commitment or arrangement with respect to any
      of
      the foregoing, or (E) except as contemplated by this Agreement, enter into
      any
      contract, agreement, commitment or arrangement to dissolve, merge; consolidate
      or enter into any other material business contract or enter into any
      negotiations in connection therewith.

     

    
      
        
        

      

      
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    (iv) neither
      the Parent nor Acquisition will,
      nor
      will they authorize any director or authorize or permit any officer or employee
      or any attorney, accountant or other representative retained by them to, make,
      solicit, encourage any inquiries with respect to, or engage in any negotiations
      concerning, any Acquisition Proposal (as defined below for purposes of this
      paragraph). Parent will promptly advise the Company orally and in writing of
      any
      such inquiries or proposals (or requests for information) and the substance
      thereof. As used in this paragraph, “Acquisition
      Proposal”
shall
      mean any proposal for a merger or other business combination involving the
      Parent or Acquisition Corp or for the acquisition of a substantial equity
      interest in either of them or any material assets of either of them other than
      as contemplated by this Agreement. The Parent will immediately cease and cause
      to be terminated any existing activities, discussions or negotiations with
      any
      person conducted heretofore with respect to any of the foregoing;
      and

     

    (v)
      neither
      the Parent nor Acquisition will enter into any new employment agreements with
      any of their officers or employees or grant any increases in the compensation
      or
      benefits of their officers and employees. 

     

    6 6. Additional
      Agreements.

     

    6.1 Access
      and Information.
      The
      Company, Parent and Acquisition Corp. shall each afford to the other and to
      the
      other’s accountants, counsel and other representatives full access during normal
      business hours throughout the period prior to the Effective Time of all of
      its
      properties, books, contracts, commitments and records (including but not limited
      to tax returns) and during such period, each shall furnish promptly to the
      other
      all information concerning its business, properties and personnel as such other
      party may reasonably request, provided
      that no
      investigation pursuant to this Section 6.1 shall affect any representations
      or
      warranties made herein. Each party shall hold, and shall cause its employees
      and
      agents to hold, in confidence all such information (other than such information
      which (i) is already in such party’s possession or (ii) becomes generally
      available to the public other than as a result of a disclosure by such party
      or
      its directors, officers, managers, employees, agents or advisors, or (iii)
      becomes available to such party on a non-confidential basis from a source other
      than a party hereto or its advisors, provided that such source is not known
      by
      such party to be bound by a confidentiality agreement with or other obligation
      of secrecy to a party hereto or another party until such time as such
      information is otherwise publicly available; provided,
      however,
      that
      (A) any such information may be disclosed to such party’s directors, officers,
      employees and representatives of such party’s advisors who need to know such
      information for the purpose of evaluating the transactions contemplated hereby
      (it being understood that such directors, officers, employees and
      representatives shall be informed by such party of the confidential nature
      of
      such information), (B) any disclosure of such information may be made as to
      which the party hereto furnishing such information has consented in writing,
      and
      (C) any such information may be disclosed pursuant to a judicial, administrative
      or governmental order or request; provided,
      however,
      that
      the requested party will promptly so notify the other party so that the other
      party may seek a protective order or appropriate remedy and/or waive compliance
      with this Agreement and if such protective order or other remedy is not obtained
      or the other party waives compliance with this provision, the requested party
      will furnish only that portion of such information which is legally required
      and
      will exercise its best efforts to obtain a protective order or other reliable
      assurance that confidential treatment will be accorded the information
      furnished). If this Agreement is terminated, each party will deliver to the
      other all documents and other materials (including copies) obtained by such
      party or on its behalf from the other party as a result of this Agreement or
      in
      connection herewith, whether so obtained before or after the execution
      hereof.

     

     

    
      
        
        

      

      
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    6.2 Additional
      Agreements.
      Subject
      to the terms and conditions herein provided, each of the parties hereto agrees
      to use its commercially reasonable efforts to take, or cause to be taken, all
      action and to do, or cause to be done, all things necessary, proper or advisable
      under applicable laws and regulations to consummate and make effective the
      transactions contemplated by this Agreement, including using its commercially
      reasonable efforts to satisfy the conditions precedent to the obligations of
      any
      of the parties hereto to obtain all necessary waivers, and to lift any
      injunction or other legal bar to the Merger (and, in such case, to proceed
      with
      the Merger as expeditiously as possible). In order to obtain any necessary
      governmental or regulatory action or non-action, waiver, consent, extension
      or
      approval, each of Parent, Acquisition Corp. and the Company agrees to take
      all
      reasonable actions and to enter into all reasonable agreements as may be
      necessary to obtain timely governmental or regulatory approvals and to take
      such
      further action in connection therewith as may be necessary. In case at any
      time
      after the Effective Time any further action is necessary or desirable to carry
      out the purposes of this Agreement, the proper officers and/or directors of
      Parent, Acquisition Corp. and the Company shall take all such necessary
      action.

     

    6.3 Publicity.
      No party
      shall issue any press release or public announcement pertaining to the Merger
      that has not been agreed upon in advance by Parent and the Company, except
      as
      Parent reasonably determines to be necessary in order to comply with the rules
      of the Commission or of the principal trading exchange or market for Parent
      Common Stock, provided that in such case Parent will use its best efforts to
      allow Company to review and reasonably approve any same prior to its
      release.

     

    6.4 Appointment
      of Directors.
      Immediately upon the Effective Time, Parent shall accept the resignations of
      the
      current officers and directors of Parent as provided by Section
      7.2(f)(7)
      hereof,
      and shall cause the persons listed as directors in Exhibit
      D
      hereto
      to be elected to the Board of Directors of Parent. At the first annual meeting
      of Parent stockholders and thereafter, the election of members of Parent’s Board
      of Directors shall be accomplished in accordance with the bylaws of
      Parent.

     

    6.5 Filing
      of 10-QSB.
      Parent
      shall, not later than May 15, 2006, file with the SEC its Quarterly Report
      on
      Form 10-QSB for the quarter ended March 31, 2006.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    6.6 Satisfaction
      of, Release of and Indemnification from Liabilities; Escrow
      Agreement.
      Prior to
      or at the time of the Closing Date, Parent shall satisfy all outstanding
      liabilities, debts, expenses and unpaid taxes from the cash proceeds of the
      closing, including payment of (i) $100,000 CAD to Carleton University, and
      (ii)
      $100,000 CAD to Peter Barnett, for which wire instructions are attached as
      Schedule
      6.6.
      Parent
      has also received executed releases from creditors, which are attached to
Schedule
      6.6,
      releasing certain liabilities, debts and expenses. The Company is aware, and
      Parent acknowledges that it has not paid any taxes from its inception. All
      parties agree to close the Merger and resolve the unpaid taxes issue
      post-merger. Parent agrees that Surviving Corporation will hold in escrow for
      ninety (90) days or until such time as any unpaid taxes and/or penalties from
      Parent’s inception through the Closing Date are paid, whichever is longer, the
      remainder of the cash purchase price of $107,000 less any fees paid to
      reconcile liabilities within 90 days of closing of the Merger to satisfy
      the remainder of Parent’s unsatisfied debts or liabilities. If no debts or
      liabilities are discovered within the ninety (90) day period after Closing
      or
      the question of the existence of such liabilities is satisfactorily resolved,
      the full purchase price will then be released. 

    

     

    6.7 Subsidiary
      Purchase Agreement .
      AGNI
      entered into a Subsidiary Purchase Agreement, which is attached as Exhibit
      L,
      with
      the Principal Shareholder. The Agreement provides that at any time during the
      period commencing 90 days after closing of the merger and ending 180 days after
      closing of the merger, AGNI may require the Principal Shareholder to purchase,
      or the Principal Shareholder may require AGNI to sell, all of American Waste
      Recovery that is, at present, the subsidiary of AGNI. The purchase price, if
      either option is exercised, will be $107,000 less any fees paid to
      reconcile liabilities within 90 days of closing of the Merger. In addition,
      the
      Principal Shareholder will be required to indemnify AGNI against any liabilities
      that existed on the date of the merger closing or that arose in connection
      with
      the operations of the subsidiaries.

    

     

     7. Conditions
      of Parties’ Obligations.

     

    7.1 Parent
      and Acquisition Corp. Obligations.
      The
      obligations of Parent and Acquisition Corp. under this Agreement and the
      Certificate of Merger are subject to the fulfillment at or prior to the Closing
      of the following conditions, any of which may be waived in whole or in part
      by
      Parent.

     

    (a) No
      Errors, etc.
      The
      representations and warranties of the Parent and Acquisition Corp. under this
      Agreement shall be deemed to have been made again on the Closing Date and shall
      then be true and correct in all material respects.

     

    (b) Compliance
      with Agreement.
      The
      Parent and Acquisition Corp. shall have performed and complied in all material
      respects with all agreements and conditions required by this Agreement to be
      performed or complied with by them on or before the Closing Date.

     

    (c) No
      Default or Adverse Change.
      There
      shall not exist on the Closing Date any Default or Event of Default or any
      event
      or condition that, with the giving of notice or lapse of time, or both, would
      constitute a Default or Event of Default, and since the Balance Sheet Date,
      there shall have been no material adverse change in the Condition of the Parent
      and Acquisition Corp.

     

    (d) Certificate
      of Officers.
      The
      Parent and Acquisition Corp. shall have delivered to the Company a certificate
      dated the Closing Date, executed on its behalf by the Chief Executive Officer
      and Chief Financial Officer of Parent and Acquisition Corp., certifying the
      satisfaction of the conditions specified in paragraphs (a), (b) and (c) of
      this
      Section 7.1.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (e) No
      Restraining Action.
      No
      action or proceeding before any court, governmental body or agency shall have
      been threatened, asserted or instituted to restrain or prohibit, or to obtain
      substantial damages in respect of, this Agreement or the Certificate of Merger
      or the carrying out of the transactions contemplated by the Merger
      Documents.

     

    (f) Supporting
      Documents.
      Parent
      and Acquisition Corp. shall have received the following:

     

    (1) Copies
      of
      resolutions of the Board of Directors and the stockholders of the Company,
      certified by the Secretary of the Company, authorizing and approving the
      execution, delivery and performance of the Merger Documents and all other
      documents and instruments to be delivered pursuant hereto and
      thereto.

     

    (2) A
      certificate of incumbency executed by the Secretary of the Company certifying
      the names, titles and signatures of the officers authorized to execute any
      documents referred to in this Agreement and further certifying that the
      Certificate of Incorporation and Bylaws of the Company delivered to Parent
      and
      Acquisition Corp. at the time of the execution of this Agreement have been
      validly adopted and have not been amended or modified.

     

    (3) A
      certificate, dated the Closing Date, executed by the Company’s Secretary,
      certifying that, except for the filing of the Certificate of Merger: (i) all
      consents, authorizations, orders and approvals of, and filings and registrations
      with, any court, governmental body or instrumentality that are required for
      the
      execution and delivery of this Agreement and the Certificate of Merger and
      the
      consummation of the Merger shall have been duly made or obtained, and all
      material consents by third parties that are required for the Merger have been
      obtained; and (ii) no action or proceeding before any court, governmental body
      or agency has been threatened, asserted or instituted to restrain or prohibit,
      or to obtain substantial damages in respect of, this Agreement or the
      Certificate of Merger or the carrying out of the transactions contemplated
      by
      the Merger Documents.

     

    (4) Evidence
      as of a recent date of the good standing and corporate existence of the Company
      issued by the Secretary of State of the State of Delaware and evidence that
      the
      Company is qualified to transact business as a foreign corporation and is in
      good standing in each state of the United States and in each other jurisdiction
      where the character of the property owned or leased by it or the nature of
      its
      activities makes such qualification necessary.

     

    (5) Such
      additional supporting documentation and other information with respect to the
      transactions contemplated hereby as Parent and Acquisition Corp. may reasonably
      request.

     

    (g) Consents.
      The
      Parent and Acquisition Corp. shall have obtained and delivered to the Company
      written consents, reasonably satisfactory in form and substance to Parent,
      from
      each party to the leases, contracts, instruments and other documents consenting
      to the assignment to the Surviving Corporation upon the effectiveness of the
      Merger, of all of the rights and interests of Parent and Acquisition Corp.
      in
      and to such leases, contracts, instruments and documents, except to the extent
      (i) waived by Parent and/or Acquisition Corp. in its sole discretion, or (ii)
      such lease, contract, instrument or other document does not require the consent
      of such party to such assignment. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    (h) Proceedings
      and Documents.
      All
      corporate and other proceedings and actions taken in connection with the
      transactions contemplated hereby and all certificates, opinions, agreements,
      instruments and documents mentioned herein or incident to any such transactions
      shall be reasonably satisfactory in form and substance to the Company. Parent
      and Acquisition Corp. shall furnish to the Company such supporting documentation
      and evidence of the satisfaction of any or all of the conditions precedent
      specified in this Section 7.1 as Parent or its counsel may reasonably
      request.

     

    7.2 Company
      Obligations.
      The
      obligations of the Company under this Agreement and the Certificate of Merger
      are subject to the fulfillment at or prior to the Closing of the conditions
      precedent specified in paragraphs (f), (g) and (h) of Section 7.1 hereof and
      the
      following additional conditions:

     

    (a) No
      Errors, etc.
      The
      representations and warranties of the Company under this Agreement shall be
      deemed to have been made again on the Closing Date and shall then be true and
      correct in all material respects.

     

    (b) Compliance
      with Agreement.
      The
      Company shall have performed and complied in all material respects with all
      agreements and conditions required by this Agreement and the Certificate of
      Merger to be performed or complied with by them on or before the Closing
      Date.

     

    (c) No
      Default or Adverse Change.
      There
      shall not exist on the Closing Date any Default or Event of Default or any
      event
      or condition, that with the giving of notice or lapse of time, or both, would
      constitute a Default of Event of Default, and since the Company Balance Sheet
      Date, there shall have been no material adverse change in the Condition of
      the
      Company.

     

    (d) Certificate
      of Officers.
      The
      Company shall have delivered to Parent and Acquisition Corp. a certificate
      dated
      the Closing Date, executed on its behalf by its respective President or other
      duly authorized officer, certifying the satisfaction of the conditions specified
      in paragraphs (a), (b), and (c) of this Section 7.2.

     

    (e) Opinion
      of Parent’s Counsel.
      The
      Company shall have received from counsel for Parent, a favorable opinion dated
      the Closing Date to the effect set forth in Exhibit
      H
      hereto.

     

    (f) Supporting
      Documents.
      The
      Company shall have received the following:

     

    (1) Copies
      of
      resolutions of Parent’s and Acquisition Corp.’s respective board of directors
      and the sole stockholder of Acquisition Corp., certified by their respective
      Secretaries, authorizing and approving, to the extent applicable, the execution,
      delivery and performance of this Agreement, the Certificate of Merger and all
      other documents and instruments to be delivered by them pursuant hereto and
      thereto.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    (2) A
      certificate of incumbency executed by the respective Secretaries of Parent
      and
      Acquisition Corp. certifying the names, titles and signatures of the officers
      authorized to execute the documents referred to in paragraph (i) above and
      further certifying that the certificates of incorporation and Bylaws of Parent
      and Acquisition Corp. appended thereto have not been amended or
      modified.

     

    (3) A
      certificate, dated the Closing Date, executed by the Secretary of each of the
      Parent and Acquisition Corp., certifying that, except for the filing of the
      Certificate of Merger: (i) all consents, authorizations, orders and approvals
      of, and filings and registrations with, any court, governmental body or
      instrumentality that are required for the execution and delivery of this
      Agreement and the Certificate of Merger and the consummation of the Merger
      shall
      have been duly made or obtained, and all material consents by third parties
      required for the Merger have been obtained; and (ii) no action or proceeding
      before any court, governmental body or agency has been threatened, asserted
      or
      instituted to restrain or prohibit, or to obtain substantial damages in respect
      of, this Agreement or the Certificate of Merger or the carrying out of the
      transactions contemplated by any of the Merger Documents.

     

    (4) A
      certified list from Manhattan Transfer Registrar Co., Parent’s transfer agent
      and registrar, of the names and addresses of the record owners of all of the
      outstanding shares of Parent Common Stock and Parent Preferred Stock, together
      with the number of shares of Parent Common Stock and Parent Preferred Stock
      held
      by each record owner.

     

    (5) An
      opinion letter from Frascona, Joiner, Goodman and Greenstein, P.C., Parent’s
      counsel setting forth that the number of shares of Parent Common Stock that
      are
      issued and outstanding as of the Closing Date is no more than 45,188,525 shares
      of Parent Common Stock, that no shares of Parent Preferred Stock are issued
      and
      outstanding, and that 1,473,650 shares of Parent Preferred Stock are designated
      as Parent Class A Preferred Stock, for which each share is convertible into
      500
      shares of Parent Common Stock.

     

    (6) An
      agreement in writing from Lancaster & David, Chartered Accountants, in form
      and substance reasonably satisfactory to the Company, to deliver copies of
      the
      audit opinions with respect to any and all financial statements of Parent that
      had been audited by such firm.

     

    (7)
      The
      executed resignations of Brian Hauff, Peter J. Barnett and Charles Mayer, as
      directors and officers of Parent, with the director resignations to take effect
      at the Effective Time.

    (8) Evidence
      as of a recent date of the good standing and corporate existence of each of
      the
      Parent and Acquisition Corp. issued by the Secretary of State of their
      respective states of incorporation and evidence that the Parent and Acquisition
      Corp. are qualified to transact business as foreign corporations and are in
      good
      standing in each state of the United States and in each other jurisdiction
      where
      the character of the property owned or leased by them or the nature of their
      activities makes such qualification necessary.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (9) Evidence
      that Parent has all tax returns required to be filed in the states of Florida
      and Delaware and in Vancouver, B.C. and that Parent has no liabilities for
      taxes
      or penalties for failure to timely file tax returns.

     

    (10) Evidence
      that Parent has satisfied all outstanding liabilities prior to the Closing
      Date.

     

    (11) Such
      additional supporting documentation and other information with respect to the
      transactions contemplated hereby as the Company may reasonably
      request. 

     

    (g) Proceedings
      and Documents.
      All
      corporate and other proceedings and actions taken in connection with the
      transactions contemplated hereby and all certificates, opinions, agreements,
      instruments and documents mentioned herein or incident to any such transactions
      shall be mutually satisfactory in form and substance to the Company, Parent
      and
      Acquisition Corp. Parent and Acquisition Corp. shall furnish to the Company
      such
      supporting documentation and evidence of satisfaction of any or all of the
      conditions specified in this Section 7.2 as the Company may reasonably
      request.

     

    The
      Company and Parent may waive compliance with any of the conditions precedent
      specified in this Sections 7.1 and 7.2.

     

    8 8. Non-Survival
      of Representations and Warranties

     

    .
      The
      representations and warranties of the parties made in Sections 2 and 3 of this
      Agreement (including the Schedules to the Agreement which are hereby
      incorporated by reference) shall not survive beyond the Effective Time. This
      Section 8 shall not limit any claim for fraud or any covenant or agreement
      of
      the parties which by its terms contemplates performance after the Effective
      Time.

     

    9 9. Amendment
      of Agreement.
      This
      Agreement and the Certificate of Merger may be amended or modified at any time
      in all respects by an instrument in writing executed (i) in the case of this
      Agreement by the parties hereto and (ii) in the case of the Certificate of
      Merger by the parties thereto.

     

    10 10. Definitions.
      Unless
      the context otherwise requires, the terms defined in this Section 10 shall
      have
      the meanings herein specified for all purposes of this Agreement, applicable
      to
      both the singular and plural forms of any of the terms herein
      defined.

     

    “Acquisition
      Corp.”
means
      Agronix Acquisition Corp., a Florida corporation.

     

    “Affiliate”
shall
      mean any Person that directly or indirectly controls, is controlled by, or
      is
      under common control with, the indicated Person.

     

    “Agreement”
shall
      mean this Agreement.

     

    “Articles
      of Merger”
shall
      have the meaning assigned to it in the second recital of this
      Agreement.

     

    “Balance
      Sheet”
and
      “Balance
      Sheet Date”
shall
      have the meanings assigned to such terms in Section 2.10 hereof.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    “Closing”
and
      “Closing
      Date”
shall
      have the meanings assigned to such terms in Section 11 hereof.

     

    “Code”
shall
      mean the Internal Revenue Code of 1986, as amended.

     

    “Commission”
shall
      mean the U.S. Securities and Exchange Commission.

     

    “Company”
shall
      mean Agronix, Inc., a Florida corporation.

     

    “Company
      Common Stock”
shall
      mean the Common Stock of the Company.

     

    “Condition
      of the Company”
shall
      have the meaning assigned to it in Section 2.2 hereof.

     

    “Condition
      of the Parent”
shall
      have the meaning assigned to it in Section 3.13 hereof.

     

    “Default”
shall
      mean a default or failure in the due observance or performance of any covenant,
      condition or agreement on the part of the Company to be observed or performed
      under the terms of this Agreement or the Certificate of Merger, if such default
      or failure in performance shall remain unremedied for five (5)
      days.

     

    “Effective
      Time”
shall
      have the meaning assigned to it in Section 1.2 hereof.

     

    “Employee
      Benefit Plans”
shall
      have the meaning assigned to it in Section 2.17 hereof.

     

    “Environmental
      Laws”
means
      the Comprehensive Environmental Response, Compensation and Liability Act, 42
      U.S.C. §§ 9601, et seq.; the Emergency Planning and Community Right-to-Know Act
      of 1986, 42 U.S.C. §§ 11001, et seq.; the Resource Conservation and Recovery
      Act, 42 U.S.C. §§ 6901, et seq.; the Toxic Substances Control Act, 15 U.S.C. §§
2601 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C.
      §§ 136, et seq. and comparable state statutes dealing with the registration,
      labeling and use of pesticides and herbicides; the Clean Air Act, 42 U.S.C.
§§
7401 et seq.; the Clean Water Act (Federal Water Pollution Control Act), 33
      U.S.C. §§ 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f, et seq.;
      the Hazardous Materials Transportation Act, 49 U.S.C. §§ 1801, et seq.; as any
      of the above statutes have been amended as of the date hereof, all rules,
      regulations and policies promulgated pursuant to any of the above statutes,
      and
      any other foreign, federal, state or local law, statute, ordinance, rule,
      regulation or policy governing environmental matters, as the same have been
      amended as of the date hereof.

     

    “Equity
      Security”
shall
      mean any stock or similar security of an issuer or any security (whether stock
      or Indebtedness for Borrowed Money) convertible, with or without consideration,
      into any stock or similar equity security, or any security (whether stock or
      Indebtedness for Borrowed Money) carrying any warrant or right to subscribe
      to
      or purchase any stock or similar security, or any such warrant or
      right.

     

    “ERISA”
shall
      mean the Employee Retirement Income Securities Act of 1974, as
      amended.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    “Event
      of Default”
shall
      mean (a) the failure of the Company to pay any Indebtedness for Borrowed Money,
      or any interest or premium thereon, within five (5) days after the same shall
      become due, whether such Indebtedness shall become due by scheduled maturity,
      by
      required prepayment, by acceleration, by demand or otherwise, (b) an event
      of
      default under any agreement or instrument evidencing or securing or relating
      to
      any such Indebtedness, or (c) the failure of the Company to perform or observe
      any material term, covenant, agreement or condition on its part to be performed
      or observed under any agreement or instrument evidencing or securing or relating
      to any such Indebtedness when such term, covenant or agreement is required
      to be
      performed or observed.

     

    “FBCA”
means
      the Florida Business Corporation Act, as amended.

     

    “GAAP”
shall
      mean generally accepted accounting principles in the United States, as in effect
      from time to time.

     

    “Hazardous
      Material”
means
      any substance or material meeting any one or more of the following criteria:
      (a)
      it is or contains a substance designated as or meeting the characteristics
      of a
      hazardous waste, hazardous substance, hazardous material, pollutant, contaminant
      or toxic substance under any Environmental Law; (b) its presence at some
      quantity requires investigation, notification or remediation under any
      Environmental Law; or (c) it contains, without limiting the foregoing, asbestos,
      polychlorinated biphenyls, petroleum hydrocarbons, petroleum derived substances
      or waste, pesticides, herbicides, crude oil or any fraction thereof, nuclear
      fuel, natural gas or synthetic gas.

     

    “Indebtedness”
shall
      mean any obligation of the Company which under generally accepted accounting
      principles is required to be shown on the balance sheet of the Company as a
      liability. Any obligation secured by a Lien on, or payable out of the proceeds
      of production from, property of the Company shall be deemed to be Indebtedness
      even though such obligation is not assumed by the Company.

     

    “Indebtedness
      for Borrowed Money”
shall
      mean (a) all Indebtedness in respect of money borrowed including, without
      limitation, Indebtedness which represents the unpaid amount of the purchase
      price of any property and is incurred in lieu of borrowing money or using
      available funds to pay such amounts and not constituting an account payable
      or
      expense accrual incurred or assumed in the ordinary course of business of the
      Company, (b) all Indebtedness evidenced by a promissory note, bond or similar
      written obligation to pay money, or (c) all such Indebtedness guaranteed by
      the
      Company or for which the Company is otherwise contingently liable.

     

    “Investment
      Company Act”
shall
      mean the Investment Company Act of 1940, as amended.

     

    “knowledge”
and
      “know”
means,
      when referring to any person or entity, the actual knowledge of such person
      or
      entity of a particular matter or fact, and what that person or entity would
      have
      reasonably known after due inquiry. An entity will be deemed to have "knowledge"
      of a particular fact or other matter if any individual who is serving, or who
      has served, as an executive officer of such entity has actual "knowledge" of
      such fact or other matter, or had actual "knowledge" during the time of such
      service of such fact or other matter, or would have had "knowledge" of such
      particular fact or matter after due inquiry.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    “Letter
      of Transmittal”
shall
      have the meaning assigned to it in Section 4 hereof.

     

    “Lien”
shall
      mean any mortgage, pledge, security interest, encumbrance, lien or charge of
      any
      kind, including, without limitation, any conditional sale or other title
      retention agreement, any lease in the nature thereof and the filing of or
      agreement to give any financing statement under the Uniform Commercial Code
      of
      any jurisdiction and including any lien or charge arising by statute or other
      law.

     

    “Memorandum”
shall
      have the meaning assigned to it in the fourth recital hereof.

     

    “Merger”
shall
      have the meaning assigned to it in Section 1.1 hereof.

     

    “Merger
      Documents”
shall
      have the meaning assigned to it in Section 2.6 hereof.

     

    “Parent”
shall
      mean Warner Nutraceutical, Inc., a Delaware corporation.

     

    “Parent
      Balance Sheet Date”
shall
      have the meaning assigned to it in Section 3.14 hereof.

     

    “Parent
      Class A Preferred Stock”
shall
      mean the designated Class A preferred stock, par value [$.001] per share, of
      Parent.

     

    “Parent
      Common Stock”
shall
      mean the common stock, par value [$.001] per share, of Parent.

     

    “Parent
      Employee Benefit Plans”
shall
      have the meaning assigned to it in Section 3.16 hereof.

     

    “Parent
      Financial Statements”
shall
      have the meaning assigned to it in Section 3.8 hereof.

     

    “Parent
      Preferred Stock”
shall
      mean the preferred stock, par value [$.001] per share, of Parent.

     

    “Parent
      SEC Documents”
shall
      have the meaning assigned to it in Section 3.7 hereof.

     

    “Permitted
      Liens”
shall
      mean (a) Liens for taxes and assessments or governmental charges or levies
      not
      at the time due or in respect of which the validity thereof shall currently
      be
      contested in good faith by appropriate proceedings; (b) Liens in respect of
      pledges or deposits under workmen’s compensation laws or similar legislation,
      carriers’, warehousemen’s, mechanics’, laborers’ and materialmens’ and similar
      Liens, if the obligations secured by such Liens are not then delinquent or
      are
      being contested in good faith by appropriate proceedings; and (c) Liens
      incidental to the conduct of the business of the Company that were not incurred
      in connection with the borrowing of money or the obtaining of advances or
      credits and which do not in the aggregate materially detract from the value
      of
      its property or materially impair the use made thereof by the Company in its
      business.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    “Person”
shall
      include all natural persons, corporations, business trusts, associations,
      limited liability companies, partnerships, joint ventures and other entities
      and
      governments and agencies and political subdivisions.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Stockholders”
shall
      mean all of the stockholders of the Company.

     

    “Subsidiary”
shall
      mean Harbin Yingxia Industrial Group Co. Ltd., a corporation of the Republic
      of
      China, and the Company’s wholly-owned subsidiary.

     

    “Surviving
      Corporation”
shall
      have the meaning assigned to it in Section 1.1 hereof.

     

    “Tax”
or
      “Taxes”
shall
      mean (a) any and all taxes, assessments, customs, duties, levies, fees, tariffs,
      imposts, deficiencies and other governmental charges of any kind whatsoever
      (including, but not limited to, taxes on or with respect to net or gross income,
      franchise, profits, gross receipts, capital, sales, use, ad valorem, value
      added, transfer, real property transfer, transfer gains, transfer taxes,
      inventory, capital stock, license, payroll, employment, social security,
      unemployment, severance, occupation, real or personal property, estimated taxes,
      rent, excise, occupancy, recordation, bulk transfer, intangibles, alternative
      minimum, doing business, withholding and stamp), together with any interest
      thereon, penalties, fines, damages costs, fees, additions to tax or additional
      amounts with respect thereto, imposed by the United States (federal, state
      or
      local) or other applicable jurisdiction; (b) any liability for the payment
      of
      any amounts described in clause (a) as a result of being a member of an
      affiliated, consolidated, combined, unitary or similar group or as a result
      of
      transferor or successor liability, including, without limitation, by reason
      of
      Regulation section 1.1502-6; and (c) any liability for the payments of any
      amounts as a result of being a party to any Tax Sharing Agreement or as a result
      of any express or implied obligation to indemnify any other Person with respect
      to the payment of any amounts of the type described in clause (a) or
      (b).

     

    “Tax
      Return”
shall
      include all returns and reports (including elections, declarations, disclosures,
      schedules, estimates and information returns (including Form 1099 and
      partnership returns filed on Form 1065) required to be supplied to a Tax
      authority relating to Taxes.

     

     11. Closing.
      The
      closing of the Merger (the “Closing”)
      shall
      occur concurrently with the Effective Time (the “Closing
      Date”).
      The
      Closing shall occur at the offices of Anslow & Jaclin, LLP, 195 Route 9
      South, Suite 204, Manalapan, NJ 07726. At the Closing, Parent shall present
      for
      delivery to each Stockholder the certificate representing the Parent Class
      A
      Preferred Stock and Parent Common Stock to be issued pursuant to Section
      1.5(a)(ii)
      hereof
      to them pursuant to Sections
      1.6 and 4
      hereof.
      Such presentment for delivery shall be against delivery to Parent and
      Acquisition Corp. of the certificates, opinions, agreements and other
      instruments referred to in Section
      7.1 hereof,
      and the certificates representing all of the Common Stock issued and outstanding
      immediately prior to the Effective Time. Parent will deliver at such Closing
      to
      the Company the officers’ certificate and opinion referred to in Section
      7.2
      hereof.
      All of the other documents and certificates and agreements referenced in
Section
      7
      will
      also be executed as described therein. At the Effective Time, all actions to
      be
      taken at the Closing shall be deemed to be taken simultaneously.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    12. Termination
      Prior to Closing.

     

    12.1 Termination
      of Agreement.
      This
      Agreement may be terminated at any time prior to the Closing:

     

    (a) By
      the
      mutual written consent of the Company, Acquisition Corp. and
      Parent;

     

    (b) By
      the
      Company, if Parent or Acquisition Corp. (i) fails to perform in any material
      respect any of its agreements contained herein required to be performed by
      it on
      or prior to the Closing Date, (ii) materially breaches any of its
      representations, warranties or covenants contained herein, which failure or
      breach is not cured within thirty (30) days after the Company has notified
      Parent and Acquisition Corp. of its intent to terminate this Agreement pursuant
      to this paragraph (b);

     

    (c) By
      Parent
      and Acquisition Corp., if the Company (i) fails to perform in any material
      respect any of its agreements contained herein required to be performed by
      it on
      or prior to the Closing Date, (ii) materially breach any of its representations,
      warranties or covenants contained herein, which failure or breach is not cured
      within thirty (30) days after Parent or Acquisition Corp. has notified the
      Company of its intent to terminate this Agreement pursuant to this paragraph
      (c);

     

    (d) By
      either
      the Company, on the one hand, or Parent and Acquisition Corp., on the other
      hand, if there shall be any order, writ, injunction or decree of any court
      or
      governmental or regulatory agency binding on Parent, Acquisition Corp. or the
      Company, which prohibits or materially restrains any of them from consummating
      the transactions contemplated hereby, provided
      that the
      parties hereto shall have used their best efforts to have any such order, writ,
      injunction or decree lifted and the same shall not have been lifted within
      ninety (90) days after entry, by any such court or governmental or regulatory
      agency; or

     

    12.2 Termination
      of Obligations.
      Termination of this Agreement pursuant to this Section 12 shall terminate all
      obligations of the parties hereunder, except for the obligations under
Sections
      6.1, 13.3 and 13.11;
      provided,
      however,
      that
      termination pursuant to paragraphs (b) or (c) of Section 12.1 shall not relieve
      the defaulting or breaching party or parties from any liability to the other
      parties hereto.

     

    13 13. Miscellaneous.

     

    13.1 Notices.
      Any
      notice, request or other communication hereunder shall be given in writing
      and
      shall be served either personally by overnight delivery or delivered by mail,
      certified return receipt and addressed to the following addresses:

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

      
        	
                If
                  to Parent

              	 
	
                or
                  Acquisition Corp.:

              	
                Agronix,
                  Inc. 

              
	 	
                #1008
                  - 510 West Hastings Street

              
	 	
                Vancouver,
                  B.C., Canada V6B 1L8

              
	 	
                Attention:
                  Brian Huff, President 

              
	 	 
	
                With
                  a copy to:

              	
                Frascona,
                  Joiner, Goodman and Greenstein, P.C. 

              
	 	
                70
                  Grand Ave. 

              
	 	
                Table
                  Mesa Drive 

              
	 	
                Boulder,
                  CO 80305 

              
	 	
                Fax:
                  (303) 494-6309

              
	 	Attention:
                Gary Joiner, Esq.
	
                If
                  to Company: 

              	 
	 	
                c/o
                  American Union Securities

              
	 	
                100
                  Wall Street 

              
	
                 

              	
                Warner
                  Nutraceutical International, Inc. 

              
	
                 

              	
                15th
                  Floor 

              
	
                 

              	
                New
                  York, NY 10005 

              
	 	
                Attention:
                  Dr. Huakang Zhou

              
	 	 
	
                With
                  a copy to:

              	
                Anslow
                  & Jaclin, LLP 

              
	 	
                195
                  Route 9 South, Suite 204

              
	 	
                Manalapan,
                  NJ 07726

              
	 	
                Fax:
                  (732) 577-1188

              
	 	
                Attention:
                  Richard I. Anslow, Esq. 

              
	 	 

      

    

     

     

    Notices
      shall be deemed received at the earlier of actual receipt or three (3) business
      days following mailing. Counsel for each party (or any authorized
      representative) shall have authority to accept delivery of any notice on behalf
      of such party.

     

    13.2 Entire
      Agreement.
      This
      Agreement, including the schedules and exhibits attached hereto and other
      documents referred to herein, contains the entire understanding of the parties
      hereto with respect to the subject matter hereof. This Agreement supersedes
      all
      prior agreements and undertakings between the parties with respect to such
      subject matter.

     

    13.3 Expenses.
      In
      addition to the provisions in Section 12.3 hereof, each party shall bear and
      pay
      all of the legal, accounting and other expenses incurred by it in connection
      with the transactions contemplated by this Agreement.
      Expenses
      of Parent prior to the effective time shall be satisfied by Parent immediately
      prior to the effective time and Parent shall not be liable for such expenses
      after the effective date. 

     

    13.4 Time.
      Time is
      of the essence in the performance of the parties’ respective obligations herein
      contained.

     

    13.5 Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    13.6 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors, assigns and heirs; provided,
      however,
      that
      neither party shall directly or indirectly transfer or assign any of its rights
      hereunder in whole or in part without the written consent of the others, which
      may be withheld in its sole discretion, and any such transfer or assignment
      without said consent shall be void.

     

    13.7 No
      Third Parties Benefited.
      This
      Agreement is made and entered into for the sole protection and benefit of the
      parties hereto, their successors, assigns and heirs, and no other Person shall
      have any right or action under this Agreement.

     

    13.8 Counterparts.
      This
      Agreement may be executed in one or more counterparts, with the same effect
      as
      if all parties had signed the same document. Each such counterpart shall be
      an
      original, but all such counterparts together shall constitute a single
      agreement.

     

    13.9 Recitals,
      Schedules and Exhibits.
      The
      Recitals, Schedules and Exhibits to this Agreement are incorporated herein
      and,
      by this reference, made a part hereof as if fully set forth herein.

     

    13.10 Section
      Headings and Gender.
      The
      Section headings used herein are inserted for reference purposes only and shall
      not in any way affect the meaning or interpretation of this Agreement. All
      personal pronouns used in this Agreement shall include the other genders,
      whether used in the masculine, feminine or neuter gender, and the singular
      shall
      include the plural, and vice versa, whenever and as often as may be
      appropriate.

     

    13.11 Governing
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Florida.
      This
      Agreement and the transactions contemplated hereby shall be subject to the
      exclusive jurisdiction of the courts of Palm Beach County, Florida. The parties
      to this Agreement agree that any breach of any term or condition of this
      Agreement or the transactions contemplated hereby shall be deemed to be a breach
      occurring in the State of Florida by virtue of a failure to perform an act
      required to be performed in the State of Florida. The parties to this Agreement
      irrevocably and expressly agree to submit to the jurisdiction of the courts
      of
      the State of Florida for the purpose of resolving any disputes among the parties
      relating to this Agreement or the transactions contemplated hereby. The parties
      irrevocably waive, to the fullest extent permitted by law, any objection which
      they may now or hereafter have to the laying of venue of any suit, action or
      proceeding arising out of or relating to this Agreement and the transactions
      contemplated hereby, or any judgment entered by any court in prospect hereof
      brought in Palm Beach County, Florida, and further irrevocably waive any claim
      that any suit, action or proceeding brought in Palm Beach County, Florida has
      been brought in an inconvenient forum. With respect to any action before the
      above courts, the parties hereto agree to service of process by certified or
      registered United States mail, postage prepaid, addressed to the party in
      question.

     

    

     

    [Remainder
      of Page Intentionally Left Blank]

     

    [Signature
      Page to Follow]

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              PARENT:

               

              AGRONIX,
                INC.

               

              By: /s/Brian
                Hauff 

              
                

              

              Brian
                Hauff, CEO 

               

            
	 	
              ACQUISITION
                CORP.:

               

              AGRONIX
                ACQUISITION CORP.

               

              By: /s/Brian
                Hauff

              
                
Brian
                Hauff, CEO 

               

            
	 	
              THE
                COMPANY:

               

              WARNER
                NUTRACEUTICAL INTERNATIONAL, INC.

               

              By: /s/Dr.
                Huakang Zhou

              
                

              

              Name:
                Dr. Huakang Zhou

              Title:
                President

               

            

    

    

     

    
      
        35

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