Document:

AGREEMENT AND PLAN OF MERGER

BETWEEN AND AMONG

DIGITAL COMPUTER INTEGRATION CORPORATION,

DEFENSE TECHNOLOGY SYSTEMS, INC.,

ZENON MACIEKOWICZ

AND

SKYLYNX COMMUNICATIONS, INC.

AND

SKYLYNX ACQUISITION CORP.

DATED AS OF DECEMBER 16, 2005 

 

AGREEMENT AND PLAN OF MERGER

          THIS AGREEMENT AND PLAN OF MERGER (the "Agreement") is made and entered into this 16th day of December, 2005, by and among DIGITAL COMPUTER INTEGRATION CORPORATION, a Texas corporation  ("DCI"); DEFENSE TECHNOLOGY SYSTEMS, INC.,  a Delaware corporation ("DFTS"), a shareholder of DCI; ZENON MACIEKOWICZ and CLARA JANE MACIEKOWICZ, ("ZM")individually, collectively and as shareholders of DCI; (hereafter, DFTS and ZM may each be referred to as a "Shareholder" and collectively be referred to as "Shareholders"); SKYLYNX COMMUNICATIONS, INC., a Delaware corporation ("SkyLynx"); and SKYLYNX ACQUISITION CORP., a Colorado Subsidiary of SKYLYNX ("SAC").  DCI, DFTS, ZM, SKYLYNX and SAC are hereinafter sometimes individually referred to as a "party" and collectively as the "parties".

WITNESETH:

          WHEREAS, DCI is engaged in the development, sale and installation of high-value quality communications, information technology and security systems for federal, state, and local governments, as well as commercial customers; and

           WHEREAS, DFTS is the record and beneficial owner of shares of common stock of DCI representing 51% of the total issued and outstanding shares of equity securities of DCI; and ZM is the record and beneficial owner of shares of common stock of DCI representing 49% of the total issued and outstanding shares of equity securities of DCI; and

          WHEREAS, SKYLYNX is the owner in the aggregate of ten (10) shares (the "Shares") of the issued and outstanding Common Stock of SAC, $.001 par value per share, representing all the issued and outstanding shares of the capital stock of SAC; 

          WHEREAS, for federal income tax purposes, the merger of SAC and DCI is intended to qualify as a tax-free reorganization pursuant to Section 368 of the Internal Revenue Code of 1986, as amended (the "Code"); and 

          WHEREAS, the parties hereto desire to set forth certain representations, warranties and covenants under which a merger of SAC and DCI will occur. 

          NOW, THEREFORE, for and in consideration of the premises, the mutual representations, warranties and covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows: 

SECTION 1: GENERAL DEFINITIONS

          For purposes of this Agreement, the following terms shall have the respective meanings set forth below: 

          1.1          Affiliate.  "Affiliate" of any Person shall mean any Person Controlling, Controlled by or under common Control with such Person.

          1.2          Agreement.   "Agreement" shall include this Agreement and any and all documents and instruments executed in connection with the Merger (as hereinafter defined). 

          1.3          Best Knowledge.  "Best Knowledge" shall mean both what a Person knew as well as what the Person should have known had the Person exercised reasonable diligence. When used with respect to a Person other than a natural person, the term "Best Knowledge" shall include matters that are known to the directors and officers of the Person. 

          1.4          Control.  "Control" and all derivations thereof shall mean the ability to either (i) vote (or direct the vote of) 50% or more of the voting interests in any Person or (ii) direct the affairs of another, whether through voting power, contract or otherwise. 

          1.5          Exchange Act.  "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

          1.6          Fiscal Year.  "Fiscal Year" shall mean a twelve-month period beginning July 1. 

          1.7          Governmental Authority. "Governmental Authority "shall mean any and all applicable foreign, federal, state or local governments, governmental institutions, public authorities and governmental entities of any nature whatsoever, and any subdivisions or instrumentalities thereof, including, but not limited to, departments, boards, bureaus, commissions, agencies, courts, administrations and panels, and any division or instrumentalities thereof, whether permanent or ad hoc and whether now or hereafter constituted or existing. 

          1.8          Governmental Requirement.  "Governmental Requirement" shall mean any and all applicable laws (including, but not limited to, applicable common law principles), statutes, ordinances, codes, rules regulations, interpretations, guidelines, directions, orders, judgments, writs, injunctions, decrees, decisions or similar items or pronouncements, promulgated, issued, passed or set forth by any Governmental Authority. 

          1.9          Legal Requirements.  "Legal Requirements" means applicable common law and any applicable statute, ordinance, code or other laws, rule, regulation, order, technical  or  other  standard, requirement, judgment, or procedure enacted, adopted, promulgated, applied or followed by any Governmental Authority, including, without limitation, any order, decree, award, verdict, findings of fact, conclusions of law, decision or judgment, whether or not final or appealable, of any court, arbitrator, arbitration board or administrative agency. 

          1.10          Net Worth.  "Net Worth" shall mean the assets of a Person minus the liabilities of the Person, as of a given date as determined in accordance with generally accepted accounting principles consistently applied with prior periods. 

          1.11          Person.  "Person" shall mean any natural person, any Governmental Authority and any entity the separate existence of which is recognized by any Governmental Authority or Governmental Requirement, including, but not limited to, corporations, partnerships, joint ventures, joint stock companies, trusts, estates, companies and associations, whether organized for profit or otherwise. 

          1.12          Exhibit.   Unless otherwise stated herein, the term "Exhibit" when used in this Agreement shall refer to the Exhibits to this Agreement. The Exhibits to this Agreement may be attached to this Agreement or may be set forth in a separate document denoted as the Exhibits to this Agreement, or both, and such Exhibits are incorporated herein by reference for all purposes. 

          1.13          Section.   Unless otherwise stated herein, the term "Section" when used in this Agreement shall refer to the Sections of this Agreement. 

          1.14          Securities Act.  "Securities Act" shall mean the Securities Act of 1933, as amended. 

          1.15          Taxes. "Tax" and "Taxes" shall mean any and all income, excise, franchise or other taxes and all other charges or fees imposed or collected by any Governmental Authority or pursuant to any Governmental Requirement, and shall also include any and all penalties, interest, deficiencies, assessments and other charges with respect thereto. 

SECTION 2: THE MERGER

          2.1          The Merger.  Subject to the terms and conditions of this Agreement, at the Effective Time (as defined in Section 2.3 herein). SAC shall be merged (the "Merger") with and into DCI upon the terms and conditions set forth herein as permitted by and in accordance with the Colorado Business Corporation Act (the "CBCA") and the Texas Business Corporation Act ("TBCA"). Thereupon, the separate existence of SAC shall cease, and DCI, as the surviving corporation in the Merger (the "Surviving Corporation"), shall continue to exist under and be governed by the TBCA, with all its purposes, objects, rights, privileges, immunities, powers and franchises continuing unaffected and unimpaired by the Merger. The name of the Surviving Corporation shall be "DCI ."

          2.2          Filing.  As soon as practicable following fulfillment or waiver of the conditions specified in Sections 8.2 and 8.3 hereof, and provided that this Agreement has not been terminated pursuant to Section 12 hereof, SAC and DCI will cause a Statement of Merger and Articles of Merger, in the form attached hereto as Exhibit 2.2, to be executed, acknowledged and filed with the Secretaries of State of each of Colorado and Texas as provided in applicable provisions of the CBCA and TBCA and obtain a copy of the Articles of Merger, certified by the Secretaries of State of the States of Colorado and Texas. 

          2.3          Effective Time of the Merger. The Merger shall become effective immediately upon the filing of the Statement of Merger and Articles of Merger with the Secretaries of State of the States of Colorado and Texas in accordance with the CBCA and TBCA.  The date and time of the completion of such filings is herein sometimes referred to as the "Effective Time". 

          2.4          Closing: Closing Date.  Subject to the terms and conditions set forth in the Agreement, the consummation of the transactions referenced above shall take place (the "Closing") on or before January 16, 2006, at 10:00 a.m. Eastern Time at the offices of SKYLYNX, 500 John Ringling Boulevard, Sarasota, Florida 34242, or at such other time, date and place as DCI and SAC shall designate (the "Closing Date"). 

SECTION 3: APPROVALS AND REGULATORY MATTERS

          3.1          SKYLYNX Approvals.  Subject to the provisions hereof, the Board of Directors of SKYLYNX shall approve the Merger and the transactions provided for or contemplated by this Agreement; provided, however, that such approvals shall be subject to their satisfaction that the consummation of the Merger shall be and is exempt from the registration requirements of the Securities Act, is undertaken without violation of the anti-fraud provisions of the Securities Act and has been consummated in conformity with all other applicable Legal Requirements.

          3.2          DFTS Board of Directors Approval.  Subject to the provisions hereof, the Board of Directors of DCI shall approve the Merger and the transactions provided for or contemplated by this Agreement; provided, however, that such approvals shall be subject to their satisfaction that the consummation of the Merger shall be and is exempt from the registration requirements of the Securities Act, is undertaken without violation of the anti-fraud provisions of the Securities Act and has been consummated in conformity with all other applicable Legal Requirements.

          3.3          DCI Shareholder Approval; Waiver of Dissenters' Rights.  By their execution and delivery of this Agreement, DFTS and ZM, as the sole Shareholders of DCI, hereby ratify and approve the transactions provided for herein.  Further, both DFTS and ZM waive any and all rights they may have under the TBCA to dissent hereunder and receive payment for their shares of DCI common stock.

          3.4          Income Tax Considerations.  It is the intention of the parties hereto that the Merger provided for in this Agreement will qualify for treatment as a tax-free reorganization under Section 368(a)(2)(E) of the Code and the parties will agree to undertake all appropriate actions necessary both before and after the Effective Date of the Merger to effect such treatment.  Notwithstanding the foregoing, neither SKYLYNX nor any of its affiliates shall have any liability whatsoever to DCI or the DCI shareholders for the treatment ultimately accorded the Merger by federal or state taxing and regulatory authorities; and DCI shall bear all responsibility for any tax or other assessment levied, imposed or assessed by any regulatory or governmental authority on DCI by virtue of the consummation of the Merger and the other transactions provided for in this Agreement.  The DCI shareholders shall bear all responsibility for any tax or other assessment levied, imposed or assessed by any regulatory or governmental authority on the DCI shareholders by virtue of the consummation of the Merger or other transactions provided for in this Agreement.

          3.5          Compliance with Securities Laws.  The Merger provided for in this Agreement shall be undertaken in reliance upon an exemption from the registration requirements contained in Section 5 of the Securities Act and set forth in Section 4(2) of the Securities Act and Regulation D thereunder.  All shares issued to the DCI shareholders in connection with the Merger shall be "restricted securities" within the meaning of Rule 144 under the Securities Act.  

          3.6          Restrictive Legend.  Certificates representing the shares of SKYLYNX preferred stock issued in connection with the Merger shall be "restricted securities" under the Securities Act and shall bear the following restrictive legend:

	 	
The shares represented by this certificate have not been registered under the Securities Act of 1933 ("the Act") and are "restricted securities" as that term is defined in Rule 144 under the Act.  The shares may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act, the availability of which is to be established to the satisfaction of the Company.

SECTION 4. ADDITIONAL AGREEMENTS

          4.1          DCI Financial Statements.  Not later than 45 days following the Closing Date, DCI shall use best efforts to cause to be prepared audited balance sheets, income statements, statements of cash flows and stockholders' equity as of and for the two year period ended June 30, 2005 and unaudited balance sheets, income statements and statements of cash flows as of and for the interim period ended September 30, 2005 (the "DCI Financial Statements").  The DCI Financial Statements (including any related schedules and/or notes), will show all liabilities, direct or contingent, required at the time of preparation to be shown in accordance with U.S. generally accepted accounting principles ("GAAP") and fairly present the financial position and results of operations of DCI as of the date thereof and for the periods indicated in accordance with GAAP, consistently applied with all prior periods.  Except as otherwise disclosed in the Agreement, including, without limitation, Exhibit 4.1 hereof, DCI will have no material liability or obligation of any nature (whether liquidated, unliquidated, accrued, absolute, contingent or otherwise, whether due or to become due) except those set forth on the DCI Financial Statements except liabilities incurred and current liabilities (determined in accordance with GAAP) incurred since the date of the DCI Financial Statements in the ordinary course of business consistent with past practice.  The DCI Financial Statements shall conform in all respects to the requirements of Regulation SB, Item 310 under the Securities Act.  The Financial Statements to be prepared following the Closing shall also include pro forma financial information ("Pro Forma Financial Information") in accordance with the requirements of Regulation SB, Item 310.  DCI agrees to indemnify, defend and hold harmless SKYLYNX and its respective past and present officers and directors from any debt, damage, liability or obligation whatsoever arising from any failure on the part of DCI to properly prepare the DCI Financial Statements and Pro Forma Financial Information.  All costs and expenses incurred in connection with the preparation of the DCI Financial Statements and the Pro Forma Financial Information, including fees and disbursements of the Auditor, shall be borne exclusively by
DCI.

          4.2          DCI Financial Condition.  At Closing, after giving effect to the exchange of the DCI Note to NMKT for the SkyLynx Convertible Note (as defined in Section 5.___ below), except for the liabilities set forth in the DCI Financial Statements, DCI shall have no liabilities or obligations of any nature, whether liquidated, unliquidated, accrued, absolute, contingent or otherwise, whether due or to become due except for (i) the obligations and liabilities set forth herein and in Exhibit 4.2 hereof, (ii) ongoing contractual commitments (the "DCI Contracts"), and (iii) obligations incurred in the ordinary course of business.  DFTS agrees to indemnify, defend and hold harmless SKYLYNX from any debt, damage, liability or obligation incurred prior to the Closing Date not specifically approved in writing by SKYLYNX or otherwise disclosed in this Agreement (an "Undisclosed Liability").  If indemnity is not promptly paid for any Undisclosed Liability, then the shares to be distributed to DFTS from the Closing Escrow shall be reduced by the value of any Undisclosed Liability as set forth in the Closing Escrow.

          4.3          Notification of Certain Matters.  DCI shall give prompt notice to SKYLYNX and SKYLYNX shall give prompt notice to DCI of (i) the occurrence or non-occurrence of any event which would cause any representation or warranty made by the respective parties in this Agreement to be materially untrue or inaccurate when made and (ii) any failure of SKYLYNX or DCI, as the case may be, to materially comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this section shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice and, provided further, that the failure to give such notice shall not be treated as a breach of covenant for the purposes of this Agreement unless the failure to give such notice results in material prejudice to the other party.

          4.4          Further Action.  Upon the terms and subject to the conditions hereof, each of the parties hereto shall use all commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all other things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement, to obtain in a timely manner all necessary waivers, consents and approvals and to effect all necessary registrations and filings, and to otherwise satisfy or cause to be satisfied all conditions precedent to its obligations under this Agreement.

          4.5          Public Announcements.  DCI and SKYLYNX shall consult with each other before issuing any press release or other public statement with respect to the Merger or this Agreement and shall not issue any such press release or make any such public statement without the prior consent of the other party, which consent shall not be unreasonably withheld, delayed or conditioned; provided, however, that a party may, without the prior consent of the other party, issue such press release or make such public statement as may, upon the advice of counsel, be required by law if it has used reasonable efforts to first consult with the other party.

          4.6          Cooperation in Securities Filings.  DCI shall provide such information regarding DCI, its business, its officers, directors and affiliates, as is reasonably required by SKYLYNX for purposes of preparing any notices, reports and other filings with the SEC.  Moreover, following the Closing, the current officers and directors of DCI shall provide such information as the post-closing management of SKYLYNX shall reasonably request for the purpose of preparing any notices, reports and other filings by SKYLYNX with the SEC, including but not limited to, in connection with the preparation of any financial statements required to be filed under the Exchange Act or Securities Act by SKYLYNX.  

          4.7          Additional Documents.  The parties shall deliver or cause to be delivered such documents or certificates as may be necessary, in the reasonable opinion of counsel for either of the parties, to effectuate the transactions provided for in this Agreement.  If at any time the parties or any of their respective successors or assigns shall determine that any further conveyance, assignment or other document or any further action is necessary desirable to further effectuate the transactions set forth herein or contemplated hereby, the parties and their officers, directors and agents shall execute and deliver, or cause to be executed and delivered, all such documents as may be reasonably required to effectuate such transactions.

SECTION 5: CONVERSION OR CANCELLATION OF SHARES 

          5.1          Conversion or Cancellation of Shares.   At the Effective Time, all the issued and outstanding shares of Common Stock, $.___ par value, of DCI ("DCI Common Stock") shall, by virtue of the Merger, be cancelled and converted into the right to receive shares of the capital stock of SKYLYNX, as follows: 

                    (a)           The shares of DCI Common Stock issued and outstanding immediately prior to the Effective Time, excluding any such shares held in the treasury of DCI, owned by DFTS shall be converted automatically into an aggregate of 572,776 shares of SkyLynx Series B Convertible Preferred Stock having a Stated Value of $1.00 per share (the "Series B Preferred"). Subject to the provisions of Section 5.4 below, such right may be exercised by the surrender of the certificates representing such shares of DCI Common Stock in accordance with Section 5.2 hereof.  The Series B Preferred Stock shall have the following rights and preferences:

	 	
Voting Rights:  Each issued and outstanding share of Series B Preferred shall entitle a holder to one (1) vote for each share of SkyLynx Common Stock issuable upon conversion of the Series B Preferred on any and all matters presented to the  shareholders of SkyLynx for approval, including the election of directors. The Series  B Preferred shall vote together with all other outstanding shares of voting securities,  voting as a single class.

	 	 
	 	
Dividend:  None.

	 	 
	 	
Redemption Right:  SkyLynx shall have the right to call for redemption any or all of the outstanding shares of Series B Preferred upon 30 days' written notice.  The redemption price to be paid for the shares called for redemption (the "Redemption Price") shall be equal to the Stated Value thereof.  Each holder of shares of Series B Preferred called for redemption shall have until the date immediately preceding the redemption date to convert the shares of Series B Preferred into Common Stock of SkyLynx.

	 	 
	 	
Conversion:  Each share of Series B Preferred is convertible into shares of SkyLynx Common Stock, at any time, at the option of the holder,  at a conversion price (the "Series B Conversion Price") equal to the average of the three highest closing prices of the Common Stock during the twenty (20) trading days immediately preceding the conversion date, subject to adjustment under certain circumstances. In addition, one-third (1/3) of the Series B Preferred (190,925 shares) will automatically convert into shares of SkyLynx Common Stock at the Series B Conversion Price on each of the first three anniversaries following the date of issue. 

	 	 
	 	
Liquidation Preference.  $1.00 per share of Preferred Stock, subordinate to the Stated Value of outstanding shares of Series A Preferred, pari passu with the Stated Value of the Series C Preferred Stock, and senior to the rights of holders of Common Stock.

          (b)           The shares of DCI Common Stock issued and outstanding immediately prior to the Effective Time, excluding any such shares held in the treasury of DCI, owned by ZM shall be converted automatically into an aggregate of 3,748,518 shares of SkyLynx Series C Convertible Preferred Stock having a Stated Value of $1.00 per share (the "Series B Preferred"). Subject to the provisions of Section 5.4 below, such right may be exercised by the surrender of the certificates representing such shares of DCI Common Stock in accordance with Section 5.2 hereof.  The Series C Preferred Stock shall have the following rights and preferences:

	 	
Voting Rights:  Each issued and outstanding share of Series C Preferred shall entitle a holder to one (1) vote for each share of SkyLynx Common Stock issuable upon   conversion of the Series C Preferred on any and all matters presented to the  shareholders of SkyLynx for approval, including the election of directors. The Series  C Preferred shall vote together with all other outstanding shares of voting securities,  voting as a single class.

	 	 
	 	
Dividend:  None.

	
 
	 
	 	
Redemption Right:  SkyLynx shall have the right to call for redemption any or all of the outstanding shares of Series C Preferred upon 30 days' written notice.  The redemption price to be paid for the shares called for redemption (the "Redemption Price") shall be equal to the Stated Value thereof.  Each holder of shares of Series C Preferred called for redemption shall have until the date immediately preceding the redemption date to convert the shares of Series C Preferred into Common Stock of SkyLynx.

	 	 
	 	
Conversion:  Each share of Series C Preferred is convertible into shares of SkyLynx Common Stock, at any time, at the option of the holder,  at a conversion price (the "Series C Conversion Price") equal to the average of the three highest closing prices of the Common Stock during the twenty (20) trading days immediately preceding the conversion date, subject to adjustment under certain circumstances. 

	 	 
	 	
Liquidation Preference.  $1.00 per share of Preferred Stock, subordinate to the Stated Value of outstanding shares of Series A Preferred, pari passu with the Stated Value of the Series C Preferred Stock, and senior to the rights of holders of Common Stock.

          (c)          Of the 3,748,518 shares of Series C Preferred issued on conversion of the outstanding shares of DCI owned by ZM, an aggregate of 3,500,000 shares of Series C Preferred (the "Escrow Shares") shall be deposited and held in escrow with SkyLynx legal counsel, as escrow agent, Clifford L. Neuman, Esq., 1507 Pine St., Boulder, CO, under the terms of an Escrow Agreement to be executed at Closing.  The Escrow Agreement shall provide that the Escrow Shares shall be released upon the satisfaction of the following conditions:

	 	
1.
	
750,000 shares shall be released, pro rata, upon DCI achieving annual gross revenues of at least $6.0 million.

	 	 	 
	 	
2.
	
750,000 shares to be released, pro rata, upon DCI achieving a net profit for a fiscal year of at least 5% of revenues.

	 	 	 
	 	
3.
	
750,000 shares shall be released, pro rata, upon DCI achieving annual gross revenues of at least $8.0 million.

	 	 	 
	 	
4.
	
750,000 shares to be released, pro rata, upon DCI achieving a net profit for a fiscal year of at least 8% of revenues.

	 	 	 
	 	
5.
	
500,000 shall be released upon closing L3 business totaling at least $2.5 million.

	 	 	 
	 	
Should any of the foregoing conditions fail to be satisfied within the first five (5) years following closing, provided, the number of Escrow Shares allocated under such condition shall be forfeited and returned to the unauthorized capital stock of SkyLynx.  For so long as the Escrow Shares remain in escrow, the holder(s) shall not exercise any voting rights with respect to the Shares.

          (d)          Each share of Series B and Series C Preferred, issued under paragraph (a) and (b) above, and all shares of SkyLynx Common Stock issuable upon conversion thereof, shall be restricted securities pursuant to Rule 144 promulgated under the Securities Act. 

          (e)           Each share of DCI Common Stock, if any, held in DCI's treasury immediately prior to the Effective Time shall be canceled and retired and no payment shall be made in respect thereof. 

          (f)          At the Effective Time, all outstanding shares of SAC shall be converted into an aggregate of 100 shares of Common Stock of DCI.  Each share of SAC Common Stock, if any, held in SAC's treasury immediately prior to the Effective Time shall be canceled and retired and no payment shall be made in respect thereof.

          (g)          At the Effective Time, all outstanding options, warrants and other rights to acquire shares of DCI common stock shall be cancelled.

          (h)          The full rights and preferences of the Series B and Series C Preferred respectively shall be defined in Certificates of Designation to be attached hereto as Exhibits 5.1.1 and 5.1.2

          5.2          Surrender and Payment.  Subject to the provisions of Section 5.4 below, after the Effective Time, each holder of a certificate representing an issued and outstanding share of DCI Common Stock shall be entitled upon surrender of such certificate along with a fully executed Subscription Agreement in the form of Exhibit 5.3, to SKYLYNX, to receive the Series B or Series C Preferred as set forth in Section 5.1 above. Until so surrendered, each certificate which immediately prior to the Effective Time represented an issued and outstanding share of DCI Common Stock shall, upon and after the Effective Time, be deemed for all purposes to represent and evidence only the right to receive Series B or Series C Preferred as set forth in Section 5.1. If any exchange for shares of DCI Common Stock is to be made in a name other than that in which the certificate therefor surrendered for exchange is registered, it shall be a condition of such payment that the certificate so surrendered be properly endorsed or otherwise in proper form for transfer and that the person requesting such payment either pay to SKYLYNX any transfer or other similar taxes required by reason of the payment to a person other than the registered holder of the certificate surrendered or establish to the satisfaction of SKYLYNX that such tax has been paid or is not payable. 

          5.3          Subscription Agreements.  Each of the DCI Shareholders receiving Series B or Series C Preferred pursuant to the terms hereof shall have delivered a fully executed Subscription Agreement substantially in the form of Exhibit 5.3. 

          5.4          Closing Escrow.  All shares of Series B and Series C Preferred to be issued in the merger (the "Merger Securities") shall be delivered to and deposited into escrow (the "Closing Escrow") with the SkyLynx acting corporate secretary, as escrow agent, pursuant to the terms of a Closing Escrow Agreement, substantially in the form of Exhibit 5.4, attached hereto (the "Closing Escrow Agreement").  Under the terms of the Closing Escrow Agreement, the Merger Securities shall be held in escrow until (a) DCI shall have delivered to SkyLynx the DCI Financial Statements and Pro Forma Financial Information required pursuant to Section 4.1 hereof and Form 8-K under the Exchange Act, and (b) there has been filed with the SEC a Form 8-K containing the DCI Financial Statements and Pro Forma Financial Information in accordance with Form 8-K under the Exchange Act and other applicable Legal Requirements, provided, however, that in the event that any DCI Undisclosed Liability arises in connection with the DCI Financial Statements, an amount of shares of Series B Preferred shall be held in the Closing Escrow contemplated hereby until such DCI Undisclosed Liability is disposed to the satisfaction of the auditors who prepared the DCI Financial Statements.  If such DCI Undisclosed Liability can not be satisfied within 75 days after delivery of the DCI Financial Statements to SkyLynx, then the number of shares of Series B Preferred to be distributed to the DCI Shareholders from the Closing Escrow shall be reduced by the value of the liability based upon a Series B Preferred value of $.50 per share. 

          5.5 Exchange of DCI Note.  At closing SkyLynx will issue a promissory note in the amount of $1,200,000 (the "SkyLynx" Note which is subject to adjustments).  DCI currently has outstanding indebtedness in the form of a promissory note owed to NewMarket Technology, Inc.,  ("NMKT"), in the aggregate amount of approximately $1.2 million including accrued interest (the "DCI Note"). At Closing, that note (the DCI Note), shall be assigned to DFTS without recourse. The SkyLynx Convertible Note shall be substantially in the form of Exhibit 5.5 hereto. The SkyLynx Convertible Note shall accrue interest at the rate of 6% per annum, payable annually, at the option of SkyLynx, in cash or shares of SkyLynx Common Stock valued at Market Price on the date of payment.  Market Price shall mean the average of the three highest closing prices of the Common Stock on the Principal Trading Market during the twenty trading days immediately prior to payment. The Note shall mature and be due and payable in two (2) years from the date of issuance.  The Note shall be convertible, at the option of the holder, into shares of SkyLynx Common Stock at a price equal to the Market Price on the date of conversion. The holder may convert 50% of the note twelve (12) months from the date of issuance and the balance upon maturity.

          5.6          NMKT Preferred Stock.  At Closing, for no additional consideration, DCI shall transfer and assign to DFTS all of DCI's right, title and interest in and to all shares of Series G Convertible Preferred stock of NMKT which DCI owns and holds as portfolio securities.

          5.7          DCI License.   At Closing, DCI shall grant to DFTS a, license for DCI technology in accordance with the terms of the License Agreement, which will be substantially in the form of Exhibit 5.7 hereto.

          5.8          No Further Transfers. On and after the Effective Time, no transfer of the shares of DCI Common Stock issued and outstanding immediately prior to the Effective Time shall be made on the stock transfer books of
DCI. 

SECTION 6:  CERTAIN EFFECTS OF MERGER 

          6.1          Effect of Merger. On and after the Effective Time, the separate existence of SAC shall cease and SAC shall be merged with and into DCI, which as the Surviving Corporation (herein sometimes so called) shall, consistently with its Articles of Incorporation succeed to, and without other transfer, possess all the rights, privileges, immunities, powers and franchises of public as well as private nature, and be subject to all restrictions, disabilities and duties of SAC; and all rights, privileges, immunities, powers and franchises of SAC, and all property, real, personal and mixed, causes of action and every other asset of, and all debts due to SAC on whatever account as well as stock subscriptions and all other things in action or belonging to SAC shall vest in the Surviving Corporation; and all property, rights, privileges, immunities, powers and franchises, and all and every other interest shall be thereafter as effectually the property of the Surviving Corporation as they were of SAC, and the title to any real estate vested by deed or otherwise in SAC, and the title to any real estate vested by deed or otherwise in SAC shall not revert or be in any way impaired but all rights of creditors and all liens upon any property of SAC shall be preserved unimpaired, and all debts, liabilities and duties of SAC shall thenceforth attach to the Surviving Corporation, and may be enforced against it to the same extent as if such debts, liabilities and duties had been incurred or contracted by it.  Any action or proceeding pending by or against SAC may be prosecuted to judgment, which shall bind the Surviving Corporation, or the Surviving Corporation may be proceeded against or substituted in its place. 

          6.2          Further Assurances. If at any time after the Effective Time the Surviving Corporation shall consider any further deeds, assignments or assurances in law or any other action necessary, desirable or proper (a) to vest, perfect or confirm, of record or otherwise, in the Surviving Corporation the title to any property or rights of SAC acquired or to be acquired by reason of, or as a result of, the Merger, or (b) otherwise to carry out the intents and purposes of this Agreement, SAC and SKYLYNX agree that it and its proper officers and directors shall and will execute and deliver, or cause to be executed and delivered, all such property, deeds, assignments and assurances in law and take all other action necessary, desirable or proper to vest, perfect or confirm title to such property or right in the Surviving Corporation and otherwise to carry out the purposes of this Agreement. 

SECTION 7:  POST-MERGER GOVERNANCE 

          7.1          Articles of Incorporation and Bylaws.   At the Effective Time, the Articles of Incorporation and By-Laws of DCI as in effect immediately prior to the Effective Time, shall be and continue to be the Articles of Incorporation and By-Laws of DCI, as the Surviving Corporation, until duly amended in accordance with applicable law. 

          7.2          Directors. Officers and Employees. 

                    (a)           Directors of SKYLYNX.  The Board of Directors of SkyLynx shall remain unchanged as a result of the Merger. 

                    (b)          Executive Officers of SKYLYNX. The executive officers of SKYLYNX shall remain unchanged as a result of the merger.

                    (c)          Directors of DCI.   Concurrently with the Closing, the Board of Directors of DCI shall, in accordance with the TBCA and the Articles of Incorporation and by-laws of DCI, shall consist of three (3) directors, which shall include Zenon Maciekowicz, Jr. and two (2) persons designated by SkyLynx.

                    (d)          Executive Officers of DCI.  Following the Closing, the executive officers of DCI shall be as follows:

	 	 	
Zenon Maciekowicz, Jr.
	 	 	
President

	 	 	
Steve Smith
	 	 	
Chief Executive Officer

	 	 	
Kelly Butler
	 	 	
Chief Financial Officer 

                    (e)            Employment Agreements of DCI.  At Closing, DCI shall enter into a written Employment Agreement with Zenon Maciekowicz, Jr. and
Kelly Butler substantially in the form of Exhibit 7.2(e)(i) and (ii) hereto. 

SECTION 8:  COVENANTS AND CONDITIONS OF CLOSING 

          8.1          Covenants Regarding the Closing.  The parties hereto hereby covenant and agree that they shall (i) use all commercially reasonable efforts to cause all of their respective representations and warranties set forth in this Agreement to be true on and as of the Closing Date, (ii) use all commercially reasonable efforts to cause all of their respective obligations that are to be fulfilled on or prior to the Closing Date to be so fulfilled, (iii) use all commercially reasonable efforts to cause all conditions to the Closing set forth in this Agreement to be satisfied on or prior to the Closing Date, and (iv) deliver to each other at the Closing the certificates, updated lists, opinion of counsel, notices, consents, authorizations, approvals, agreements, transfer documents, receipts and amendments contemplated by Sections 8, 9 and 11 (with such additions or exceptions to such items as are necessary to make the statements set forth in such items accurate, provided that if any such additions or exceptions cause any of the conditions to the parties' obligations hereunder as set forth in Sections 8, 9 and 11 below not to be fulfilled, such additions and exceptions shall in no way limit the rights of the parties to terminate this Agreement or refuse to consummate the transactions contemplated hereby.) All indemnifications, guarantees, covenants, agreements, representations and warranties made by the parties hereunder or pursuant hereto or in connection with the transactions contemplated hereby shall survive the Closing regardless of any investigation at any time made by or on behalf of the parties. 

          8.2          Conditions to Obligation of SKYLYNX and SAC.  The obligation of SKYLYNX and SAC to complete the Merger on the Closing date on the terms set forth in this Agreement is, at the option of SKYLYNX and SAC, subject to the satisfaction or waiver by SKYLYNX and SAC of each of the following conditions: 

                    (a)          Accuracy of Representations and Warranties.  The representations and warranties made by DCI in this Agreement shall be correct in all material respects on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on the Closing Date. 

                    (b)          Compliance with Covenants.  All covenants which DCI is required to perform or comply with on or before the Closing date shall have been fully complied with or performed in all material respects.

                    (c)          Corporate Approvals.  The Board of Directors and shareholders of DCI shall have approved and ratified this Agreement and shall have authorized the appropriate officers of DCI to execute same and fully perform its terms. 

                    (d)          Consents and Approvals.  To the extent that any material lease, mortgage, deed of trust, contract or agreement to which DCI is a party shall require the consent of any person to the exchange of DCI's shares of common stock or any other transaction provided for herein, such consent shall have been obtained; provided, however, that DCI shall not make, as a condition for the obtaining of any such consent, any agreements or undertakings not approved in writing by SKYLYNX and SAC to the extent that such condition otherwise has an adverse effect on SKYLYNX and SAC. 

                    (e)          Review and Due Diligence.   SKYLYNX and SAC, its investment bankers, legal counsel and/or auditors shall have had the opportunity to complete, and shall have completed, a satisfactory due diligence investigation of DCI together with a satisfactory review of DCI's corporate status and the title to DCI's property. 

                    (f)          No Governmental Actions.  No action or proceeding before any governmental authority shall have been instituted or threatened to restrain or prohibit the transactions contemplated by this Agreement, and the parties shall have delivered to each other certificates dated as of the Closing Date and executed by such parties, stating that to their Best Knowledge, no such items exist.  No governmental authority shall have taken any other action as a result of which the management of SKYLYNX or SAC, in its sole discretion, reasonably deems it inadvisable to proceed with the transactions contemplated by this Agreement. 

                    (g)          No Material Adverse Change.  No material adverse change in the business, property or assets of any party hereto shall have occurred, and no loss or damage to any of the assets, whether or not covered by insurance, with respect to any party hereto has occurred, and the parties hereto shall have delivered to each other certificates dated as of the Closing Date and executed by each of the parties to all such effects. 

                    (h)          Update of Contracts.  The parties hereto shall have delivered to each other an accurate list, as of the Closing Date, showing (i) all agreements, contracts and commitments of the type listed on Exhibits 9.17 and 11.14 entered into since the date of this Agreement; and (ii) all other agreements, contracts and commitments related to the businesses or the assets of the respective parties entered into since the date of this Agreement, together with true, complete and accurate copies of all such documents (the "New Contracts").  Each party shall have had the opportunity to review and approve the New Contracts of the other, and any of the parties shall have the right to delay the Closing for up to ten (10) days if it in its sole discretion deems such delay necessary to enable it to adequately review the New Contracts. 

                    (i)          Approval of Counsel.  All actions, proceedings, instruments and documents required or incidental to carry out this Agreement, including all schedules and exhibits thereto, and all other related legal matters shall have been approved by the legal Counsels of DFTS and ZM respectively, and Clifford L. Neuman, P.C., counsel to SKYLYNX and SAC.

                    (j)          No Adverse Information.  The investigations with respect to the parties, the assets and the respective businesses performed by each party's respective professional advisors and other representatives shall not have revealed any information concerning the other parties, their assets or their business that has not been made known to the discovering party, in writing prior to the date of this Agreement and that, in the opinion of such party and its advisors, materially and adversely affects the business or assets of the other party or the viability of the transaction contemplated by this Agreement. 

                    (k)          Ordinary Course of Business.  During the period from the date of this Agreement until the Closing Date, DCI shall have carried on its business in the ordinary and usual course, and shall have delivered to SKYLYNX and SAC a certificate to that effect. 

                    (l)          Liens.  DCI shall have delivered to SKYLYNX a reasonably current lien and judgment search (both state and county levels in each jurisdiction where the party is qualified to or is doing business or owns material assets) confirming the absence of any judicial liens, security interests, tax liens and similar such liens affecting any of its business or assets. Each and every lien or encumbrance of any nature, if any, relating to the assets, business, or the shares of common stock of DCI shall have been terminated and released, and proof thereof delivered to SKYLYNX. 

                    (m)          Other Documents.  The parties shall have delivered or caused to be delivered all other documents, agreements, resolutions, certificates or declarations as each respective party or its attorneys may have reasonably requested. 

                    (n)          Governmental and Regulatory Approvals.  The parties shall have obtained evidence, in form and substance satisfactory to each of them, that there have been obtained all consents, approvals and authorizations required by this Agreement, including, without limitation, the following:

	 	 	 	
(i)
	
SKYLYNX and DFTS Board of Directors and DCI Common Stockholder approval of all the transactions contemplated pursuant to this Agreement; and

	 	 	 	 	 
	 	 	 	
(ii)
	
All regulatory approvals necessary for DCI to conduct business in the ordinary course in each jurisdiction where such approval may be required and the failure to obtain such approval would cause a material adverse affect to the financial condition, business or operations of DCI.

                    (o)          Compliance with Securities Laws.  SKYLYNX shall have undertaken all actions necessary or advisable to consummate the Merger in conformity with all Governmental and Legal Requirements including, without limitation, applicable federal and state securities laws.

                    (p)          Appraisal Rights and/or Dissenters' Rights.  At or prior to Closing, no beneficial or record owner of any outstanding shares of DCI Common Stock shall have exercised or shall have given notice to SKYLYNX or DCI of their intent to exercise any rights under applicable state law, if any, to dissent from the Merger or obtain the payment of the fair market value of such shares of DCI Common Stock in lieu of participating in the Merger in accordance with the terms and subject to the conditions set forth herein.  

                    (q)          Financial Advisory Fees.  At or prior to Closing, all obligations or commitments of SKYLYNX and DCI to their respective financial advisors and investment bankers shall have been paid or otherwise satisfied upon terms satisfactory to the parties, and SKYLYNX and DCI shall each have been delivered and received such written consents, approvals, estoppel certificates or other instruments or undertakings from its advisors or other third parties as each may deem reasonable, necessary or advisable. 

                    (r)          Intentionally Omitted.

                    (s)          Compliance with Sections 5 and 17 of the Securities Act.  The Board of Directors of SKYLYNX shall be satisfied that consummation of the Merger and the issuance of SKYLYNX Preferred Stock to the DCI securityholders are in compliance with the provisions of Sections 5 and 17 of the Securities Act.

                    (t)          Closing Escrow Agreement.  At Closing, DCI, the DCI shareholders and SKYLYNX shall have executed and delivered the Closing Escrow Agreement substantially in the form of Exhibit 5.4 hereto and shall have delivered the Series B Preferred to be held in escrow in accordance with the terms and conditions thereof.

                    (u)          Employment Agreements.  An employment agreement between DCI, on the one hand, and Zenon Maciekowicz and Kelly Butler, respectively, on the other shall have been executed and delivered at Closing.  

          8.3          Conditions to Obligation of DCI.  The obligations of DCI to complete the Merger on the Closing date on the terms set forth in this Agreement is, at the option of DCI, subject to the satisfaction or waiver by DCI of each of the following conditions: 

                    (a)          Accuracy of Representations and Warranties.  The representations and warranties made by SKYLYNX and SAC in this Agreement shall be correct in all material respects on and as of the Closing date with the same force and effect as though such representations and warranties had been made on the Closing date. 

                    (b)          Compliance with Covenants.  All covenants which SKYLYNX and SAC is required to perform or comply with on or before the Closing date shall have been fully complied with or performed in all material respects. 

                    (c)          Corporate Approvals.  The Board of Directors and shareholders of SKYLYNX and SAC shall have approved and ratified this Agreement and shall have authorized the appropriate officers to execute same and fully perform its terms. 

                    (d)          Consents and Approvals.  To the extent that any material lease, mortgage, deed of trust, contract or agreement to which SKYLYNX and SAC is a party shall require the consent of any person to the exchange of SKYLYNX and SAC's shares of common stock or any other transaction provided for herein, such consent shall have been obtained; provided, however, that SKYLYNX and SAC shall not make, as a condition for the obtaining of any such consent, any agreements or undertakings not approved in writing by DCI to the extent that such condition otherwise has an effect on DCI or SKYLYNX and SAC. 

                    (e)          Review and Due Diligence.  DCI and its legal counsel and/or auditors shall have had the opportunity to complete, and shall have completed, a satisfactory due diligence investigation of SKYLYNX and SAC, together with a satisfactory review of SKYLYNX and SAC's corporate status, the marketability of title to SKYLYNX and SAC's property, and compliance with all reporting requirements imposed by or on account of any federal or state securities laws or regulations. 

                    (f)          No Governmental Actions.  No action or proceeding before any governmental authority shall have been instituted or threatened to restrain or prohibit the transactions contemplated by this Agreement, and the parties hereto shall have delivered to each other certificates dated as of the Closing Date and executed by such parties, staling that to their Best Knowledge, no such items exist. No governmental authority shall have taken any other action as a result of which the management of any of the parties, in its sole discretion, reasonably deems it inadvisable to proceed with the transactions contemplated by this Agreement.  

                    (g)          No Material Adverse Change.  No material adverse change in the business, property or assets of any party hereto shall have occurred, and no loss or damage to any of the assets, whether or not covered by insurance, with respect to any party hereto has occurred, and the parties shall have delivered to each other certificates dated as of the Closing Date and executed by each of the parties to all such effects.

                    (h)          Update of Contracts.  The parties shall have delivered to each other an accurate list, as of the Closing Date, showing (i) all agreements, contracts and commitments of the type listed on Exhibits 9.17 and 11.14 entered into since the date of this Agreement; and (ii) all other agreements, contracts and commitments related to the businesses or the assets of the respective parties entered into since the date of this Agreement, together with true, complete and accurate copies of all such documents (the "New Contracts"). Each party shall have had the opportunity to review the New Contracts of the other, and any of the parties shall have the right to delay the Closing for up to ten (10) days if it in its sole discretion deems such delay necessary to enable it to adequately review the New Contracts. 

                    (i)          Approval of Counsel.  All actions, proceedings, instruments and documents required or incidental to carry out this Agreement, including all schedules and exhibits thereto, and all other related legal matters shall have been approved as to substance and form by the legal Counsels of DFTS and ZM respectively, and Clifford L. Neuman, P.C., counsel to SKYLYNX and SAC. 

                    (j)          No Adverse Information.  The investigations with respect to the parties, the assets and their respective businesses performed by each party's respective professional advisors and other representatives shall not have revealed any information concerning the other panes, their assets or their business that has not been made known to the discovering party, in writing prior to the date of this Agreement and that, in the opinion of such party and its advisors, materially and adversely affects the business or assets of the other party or the viability of the transaction contemplated by this Agreement. 

                    (k)          Ordinary Course of Business.  During the period from the date of this Agreement until the Closing Date, SKYLYNX shall have carried on its business in the ordinary and usual course, and shall have delivered to DCI a certificate to that effect. 

                    (1)          Other Documents.  The parties shall have delivered or caused to be delivered all other documents, agreements, resolutions, certificates or declarations as each respective party or its attorneys may have reasonably requested. 

                    (m)          Governmental and Regulatory Approvals.  The parties shall have obtained evidence, in form and substance satisfactory to each of them, that there have been obtained all consents, approvals and authorizations required by this Agreement, including, without limitation, the following: 

		 	 	
(i)
	
SKYLYNX and DFTS Board of Directors and DCI Common Stockholder approval of all the transactions contemplated pursuant to this Agreement; and

	 	 	 	 	 
	 	 	 	
(ii)
	
All regulatory approvals necessary for SAC to conduct business in the ordinary course in each jurisdiction where such approval may be required.

                    (n)          Compliance with Securities Laws.  DCI shall have undertaken all actions necessary or advisable to consummate the Merger in conformity with all Governmental and Legal Requirements including, without limitation, applicable federal and state securities laws.

                    (o)          Appraisal Rights and/or Dissenters' Rights.  At or prior to Closing, no beneficial or record owner of any outstanding shares of DCI Common Stock shall have exercised or shall have given notice to SKYLYNX or DCI of their intent to exercise any rights under applicable state law, if any, to dissent from the Merger or obtain the payment of the fair market value of such shares of DCI Common Stock in lieu of participating in the Merger in accordance with the terms and subject to the conditions set forth herein.  

                    (p)          Financial Advisory Fees.  At or prior to Closing, all obligations or commitments of SKYLYNX and DCI to their respective financial advisors and investment bankers shall have been paid or otherwise satisfied upon terms satisfactory to the parties, and SKYLYNX and DCI shall each have been delivered and received such written consents, approvals, estoppel certificates or other instruments or undertakings from its advisors or other third parties as each may deem reasonable, necessary or advisable. 

                    (q)          Intentionally Omitted.

                    (r)          Compliance with Sections 5 and 17 of the Securities Act.  The Board of Directors of SKYLYNX shall be satisfied that consummation of the Merger and the issuance of SKYLYNX Preferred Stock to the DCI securityholders are in compliance with the provisions of Sections 5 and 17 of the Securities Act.

                    (s)          Closing Escrow Agreement.  At Closing, DCI, the DCI shareholders and SKYLYNX shall have executed and delivered the Closing Escrow Agreement substantially in the form of Exhibit 5.4 hereto and shall have delivered the Series B Preferred to be held in escrow in accordance with the terms and conditions thereof.

                    (t)          Employment Agreements.  An employment agreement between DCI, on the one hand, and Zenon Maciekowicz and Kelly Butler, respectively, on the other, shall have been executed and delivered at Closing. 

          8.4          Specific Items to be Delivered at the Closing. The parties shall deliver the following items to the appropriate party at the Closing of the transactions contemplated by this Agreement. 

                    (a)          To be delivered by DFTS and/or (in triplicate original): 

	 	 	 	
(i)
	
Copy of corporate resolutions authorizing the execution of this Agreement, and the consummation by DFTS of the transactions contemplated by this Agreement. 

	 	 	 	 	 
	 	 	 	
(ii)
	
A certificate of the President of DCI stating that the representations and warranties of DCI set forth in this Agreement are true and correct.  Said certificate shall further verify and affirm that all consents or waivers, if any, which may be necessary to execute and deliver this Agreement have been obtained and are in full force and effect.

	 	 	 	 	 
	 	 	 	
(iii)
	
A certificate dated the Closing Date, signed by the Chief Executive Officer and the Chief Financial Officer of DCI, in form and substance reasonably satisfactory to the other party and its legal counsel, certifying that all conditions precedent set forth in this Agreement to the obligations of DCI to close, have been fulfilled, and that no event of default hereunder and no event which, with the giving of notice or passage of time, or both, would be an event of default, has occurred as of such date. 

	 	 	 	 	 
	 	 	 	
(iv)
	
Certificates dated the Closing Date, signed by the Secretary of DFTS, (i) certifying resolutions duly adopted by the Board of Directors of DFTS, authorizing the execution of this Agreement and all of the other transactions to be consummated pursuant thereto; (ii) certifying the names and incumbency of the officers of DFTS who are empowered to execute the foregoing documents for and on behalf of such company; 

	 	 	 	
(v) 
	
Certificates dated the Closing Date, signed by the Secretary of DCI, (i) certifying the authenticity of copies of the Articles of Incorporation and Bylaws of DCI; and (ii) certifying the authenticity of a reasonably current Certificate of Good Standing, from all jurisdictions in which the company is qualified to conduct business. 

	 	 	 	 	 
	 	 	 	
(vi)
	
The Closing Escrow Agreement substantially in the form of Exhibit 5.4.

	 	 	 	 	 
	 	 	 	
(vii)
	
Articles of Merger and Statement of Merger in proper form to be filed with the Secretaries of States of Colorado and Texas in such form as may be required to consummate the Merger as of the Effective Time.

	 	 	 	 	 
	 	 	 	
(viii)
	
Employment Agreements with Zenon Maciekowicz, Jr. and Kelly Butler, substantially in the form of Exhibits 7.2(e)(i) and (ii).

	 	 	 	 	 
	 	 	 	
(ix)
	
The NMKT Series G Convertible Preferred Stock to be delivered to DFTS.

	 	 	 	 	 
	 	 	 	
(x)
	
The License Agreement to DFTS.

	 	 	 	 	 
	 	 	 	
(xi)
	
By DFTS, the DCI Note to NMKT in exchange for a new note from DFTS to NMKT.

                    (b)          To be delivered by Shareholders of DCI (in triplicate original): 

	 	 	 	
(i)
	
Certificate or certificates representing 100% of the issued and outstanding common shares of DCI, which stock certificates shall be endorsed in favor of SKYLYNX. 

	 	 	 	 	 
	 	 	 	
(ii)
	
Fully executed Subscription Agreements substantially in the form of Exhibit 5.3. 

	 	 	 	 	 
	 	 	 	
(iii)
	
The Closing Escrow Agreement substantially in the form of Exhibit 5.4.

                    (c)          To be delivered by SKYLYNX and SAC (in triplicate original): 

		 	 	
(i)
	
Certificate or certificates representing shares of SKYLYNX Series B and Series C Preferred, which certificates shall be issued in the names of DFTS AND ZM, respectively, and delivered in escrow under the Closing Escrow Agreement;

	 	 	 	 	 
	 	 	 	
(ii)
	
Copy of corporate resolution authorizing the execution of this Agreement and the consummation by SKYLYNX and SAC of the transactions contemplated by this Agreement, including, but not limited to, the issuance of SKYLYNX Common Stock in the amounts and manner set forth in Section 5.1 above; 

	 	 	 	 	 
	 	 	 	
(iii)
	
A certificate dated the Closing Date, signed by the Chief Executive Officer and the Chief Financial Officer of SKYLYNX and SAC, in form and substance reasonably satisfactory to the other party and its legal counsel, certifying that all conditions precedent set forth in this Agreement to the obligations of SKYLYNX and SAC to close, have been fulfilled, and that no event of default hereunder and no event which, with the giving of notice or passage of time, or both, would be an event of default, has occurred as of such date. 

	 	 	 	 	 
	 	 	 	
(iv)
	
Certificates dated the Closing Date, signed by the Secretary of SKYLYNX and SAC, (i) certifying resolutions duly adopted by the Board of Directors of SKYLYNX and SAC, authorizing the execution of this Agreement and all of the other transactions to be consummated pursuant thereto; (ii) certifying the names and incumbency of the officers of SKYLYNX and SAC who are empowered to execute the foregoing documents for and on behalf of such company; (iii) certifying the authenticity of copies of the Articles of Incorporation and Bylaws of SKYLYNX and SAC; and (iv) certifying the authenticity of a  reasonably current Certificate  of Good  Standing, from all jurisdictions  in which  SKYLYNX and SAC are qualified to conduct business. 

	 	 	 	 	 
	 	 	 	
(v)
	
The Closing Escrow Agreement substantially in the form of Exhibit 5.4.

	 	 	 	 	 
	 	 	 	
(vi)
	
Statement of Merger and Certificate of Merger in proper form to be filed with the Secretaries of States of Colorado and Texas in such form as may be required to consummate the Merger as of the Effective Time.

	 	 	 	 	 
	 	 	 	
(vii)
	
The SkyLynx Convertible Note to DFTS.

SECTION 9:  REPRESENTATIONS AND WARRANTIES OF DCI

          As a material inducement to SKYLYNX to enter into this Agreement and with the understanding and expectations that SKYLYNX will be relying thereon in 
consummating the Merger contemplated hereunder, DCI (hereinafter DCI shall be referred to as the "Corporation" unless the context otherwise requires for the purposes of this Section 9 only) hereby represents and warrants as follows:

          9.1          Organization and Standing.  The Corporation is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and has all requisite corporate power and authority to own its assets and properties and to carry on its business as it is now being conducted.

          9.2          Subsidiaries, Etc.  The Corporation does not have any direct or indirect Ownership Interest in any corporation, partnership, joint venture, association or other business enterprise.

          9.3          Qualification.  The Corporation is not qualified to engage in business as a foreign corporation in any state, and there is no other jurisdiction wherein the character of the properties presently owned by the Corporation or the nature of the activities presently conducted by the Corporation makes necessary the qualification, licensing or domestication of the Corporation as a foreign corporation.

          9.4          Corporate Authority.  Except as set forth on Exhibit 9.4 hereto, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby or the compliance by the Corporation with any on the provisions hereof will not:

                    (a)          Conflict with or result in a breach of any provision of its Articles of Incorporation or By-Laws or similar documents of any Subsidiary;

                    (b)          Result in a default (or give rise to any right of termination, cancellation, or acceleration) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, agreement or other instrument or obligation to which the Corporation is a party, or by which any of its properties or assets may be bound except for such default (or right of termination, cancellation, or acceleration) as to which requisite waivers or consents shall either have been obtained by the Corporation prior to the Closing Date or the obtaining of which shall have been waived by SKYLYNX; or

                    (c)          Violate any order, writ, injunction, decree or, to the Corporation's Best Knowledge, any statute, rule or regulation applicable to the Corporation or any of its properties or assets.  No consent or approval by any Governmental Authority is required in connection with the execution and delivery by the Corporation of this Agreement or the consummation by the Corporation of the transactions contemplated hereby, except for possible notice under plant closing laws.

          9.5          Financial Information.  In connection with the investigations performed by and audit to be undertaken by DCI, DCI furnished certain financial information and data including, without limitation, tax and accounting records, financial records, statements, worksheets and other information requested by SKYLYNX and its auditors necessary to undertake and complete the audited financial examinations.  DCI represents and warrants that any and all such information furnished in connection with the conduct of such investigations and audits shall be true, accurate and complete in all material respects and shall not contain any material misstatements nor any material omissions of fact or information respecting the financial condition or results of operation of the business for the respective periods covered by the audits.

          9.6          Capitalization of the Corporation.  The authorized capital stock of DCI consists of 10,000,000 shares of Common Stock, $____ par value per share, of which 4,693,878 shares are issued and outstanding and 0 shares of preferred stocks. The names of one hundred percent (100%) of the record owners of the issued and outstanding Common Stock are set forth on Exhibit 9.6 hereto.  All issued and outstanding shares of DCI Common Stock have been duly authorized and validly issued and are fully paid and non-assessable, free and clear of any liens, encumbrances, claims of any kind and nature except restrictions against transferability without compliance with applicable federal and state securities laws. There are no other outstanding rights, options, warrants, subscriptions, calls, convertible securities or agreement of any character or nature under which the Corporation is or may become obligated to issue any shares of its capital stock of any kind, other than those shares indicated in this Section as presently outstanding. There are no voting trusts, stockholder agreements, or other voting arrangements to which the Corporation is a party or, to the Best Knowledge of the Corporation, to which any of the Corporation's stockholders is a party or bound.

          9.7          Taxes.  Except as set forth in Exhibit 9.7:

                    (a)          The Corporation has filed (or has obtained extensions for filing) all income, excise, sales, corporate franchise, property, payroll and other tax returns or reports required to be filed by it, as of the date hereof by the United States of America, any state or other political subdivision thereof or any foreign country and has paid all Taxes or assessments relating to the time periods covered by such returns or reports; and

                    (b)          The Corporation has paid all tax liabilities imposed or assessed by any governmental authority for all periods prior to the Closing Date for which such taxes have become due and payable and has received no notice from any such governmental authority of any deficiency or delinquency with respect to such obligation.  The Corporation is not currently undergoing any audit conducted by any taxing authority and has received no notice of audit covering any prior period for which taxes have been paid or are or will be due and payable prior to the Closing Date.  There are no present disputes as to taxes of any nature payable by the Corporation.

          9.8          No Actions, Proceeding, Etc.  There is no action or proceeding (whether or not purportedly on behalf of the Corporation) pending or to its Best Knowledge threatened by or against the Corporation which might result in any material adverse change in the condition, financial or otherwise, of the Corporation's business or assets.  No order, writ or injunction or decree has been issued by, or requested of any court or Governmental Agency that does, nor may result in, any material adverse change in the Corporation's assets or properties or in the financial condition or the business of the Corporation.  Except for liabilities referred to in attached Exhibit 9.8, the Corporation is not liable for damages to any employee or former employee as a result of any violation of any state, federal or foreign laws directly or indirectly relating to such employee or former employee.

          9.9          Subsequent Balance Sheet Changes.  Except as set forth on the attached Exhibit 9.9 and as contemplated by this Agreement, since the date of the DCI Financial Statements, the Corporation has not (a) issued, bought, redeemed or entered into any agreements, commitments or obligations to sell, buy or redeem any shares of its capital stock; (b) incurred any obligation or liability (absolute or contingent), other than current liabilities incurred, and obligations under contracts entered into, in the ordinary course of business; (c) discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or contingent), other than current liabilities incurred in the ordinary course of business; (d) mortgaged, pledged or subjected to lien charges, or other encumbrance any of its assets, other than the lien of current or real property taxes not yet due and payable; (e) waived any rights of substantial value, whether or not in the ordinary course of business; (f) suffered any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting its assets or its business; (g) made or suffered any amendment or termination of any material contract or any agreement which adversely affects its business; (h) received notice or had knowledge of any labor trouble other than routine grievance matters, none of which is material; (i) increased the salaries or other compensation of any of its directors, officers or employees or made any increase in other benefits to which employees may be entitled, other than employee salary increases made in the ordinary course of business and reflected on an exhibit hereto; (j) sold, transferred or otherwise disposed of any of its assets, other than in the ordinary course of business; (k) declared or made any distribution or payments to any of its shareholders, officers or employees, other than wages and salaries made to employees in the ordinary course of business; (l) revalued any of its assets; or (m) entered into any transactions not in the ordinary course of business.

          9.10          No Breaches.  The Corporation is not in violation of, and the consummation of the transactions contemplated hereby do not and will not result in any material breach of, any of the terms or conditions of any mortgage, bond, indenture, agreement, contract, license or other instrument or obligation to which the Corporation is a party or by which its assets are bound; nor will the consummation of the transactions contemplated hereby cause DCI to violate any applicable statute, regulation, judgment, writ, injunction or decree of any court, threatened or entered in a proceeding or action in which the Corporation is, was or may be bound or to which any of the Corporation's assets are subject.

          9.11          Condition of the Corporation's Assets.  Except as set forth on Exhibit 9.11, DCI's assets are currently in good and usable condition and there are no defects or other conditions which, in the aggregate, materially and adversely affects the operation or values of such assets taken as a whole.  Except as disclosed on Exhibit 9.11, no person other than DCI (including any officer or employee of the Corporation) has any proprietary interest in any know-how or other intangible assets used by the Corporation in the conduct of its business.    

          9.12          Corporate Contracts and Proceedings.  This Agreement has been duly authorized by all necessary corporate action on behalf of DCI, has been duly executed and delivered by an authorized officer of DCI, and is a valid and binding Agreement on the part of DCI that is enforceable against DCI in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, fraudulent transfers, reorganization or other similar laws affecting the enforcement of creditors' rights generally and to judicial limitations on the enforcement of the remedy of specific performance and other equitable remedies.

          9.13          Registered Rights and Proprietary Information.

                    (a)          Exhibit 9.13 hereto contains a true and complete list of all patents, letters patent and patent applications, service marks, trademark and service mark registrations and applications, copyright, copyright registrations and applications, grants of licenses and rights to the Corporation with respect to the foregoing, both domestic and foreign, claimed by the Corporation or used or proposed to be used by the Corporation in the conduct of its business (collectively herein, "DCI Registered Rights").  Exhibit 9.13 hereto also contains a true and complete list of all and every trade secret, know-how, process, formula, discovery, development, research, design, technique, customer and supplier list, contracts, product development plans, product development concepts, author contracts, marketing and purchasing strategy, invention, and any other matter required for, incident to, or related to the conduct of its business (hereafter collectively the "DCI Proprietary Information").  Except as described in Exhibit 9.13 hereto, the Corporation is not obligated or under any liability whatever to make any payments by way of royalties, fees or otherwise to any owner or licensor of, or other claimant to, any DCI Registered Right or DCI Proprietary Information with respect to the use thereof in the conduct of the business of DCI or otherwise.

                    (b)          Except as described in Exhibit 9.13 hereto, to the Corporation's Best Knowledge, the Corporation owns and has the unrestricted right to use the DCI Registered Rights and DCI Proprietary Information required for or incident to the design, development, manufacture, operation, sale and use of all products and services sold or rendered or proposed to be sold or rendered by the Corporation or relating to the conduct or proposed conduct of its business free and clear of any right, title, interest, equity or claim of others.  As soon as practicable following the execution of this Agreement, and except as described in Exhibit 9.13 hereto, the Corporation agrees to take all necessary steps (including without limitation entering into appropriate confidentiality, assignment of rights and non-competition agreements with all officers, directors, employees and consultants of the Corporation and others with access to or knowledge of the DCI Proprietary Information) to safeguard and maintain the secrecy and confidentiality of, and its proprietary rights in, the DCI Proprietary Information and all related documentation and intellectual property rights therein necessary for the conduct or proposed conduct of its business.

                    (c)          Except as described in Exhibit 9.13 hereto, the Corporation has not sold, transferred, assigned, licensed or subjected to any right, lien, encumbrance or claim of others, any DCI Proprietary Information, including without limitation any DCI Registered Right, or any interest therein, related to or required for the design, development, manufacture, operation, sale or use of any product or service currently under development or manufactured, or proposed to be developed, sold or manufactured, by it.  Exhibit 9.13 contains a true and complete list and description of all licenses of DCI Proprietary Information granted to the Corporation by others or to others by the Corporation.  Except as described in Exhibit 9.13 hereto, there are no claims or demands of any person pertaining to, or any proceedings that are pending or threatened, which challenge the rights of the Corporation in respect of any DCI Proprietary Information used in the conduct of its business.

                    (d)          Except as described in Exhibit 9.13 hereto, the Corporation owns and on the Closing Date shall own, has and shall have, holds and shall hold, exclusively all right, title and interest in the DCI Registered Rights, free and clear of all liens, encumbrances, restrictions, claims and equities of any kind whatsoever, has and shall have the exclusive right to use, sell, license or dispose of, and has and shall have the exclusive right to bring action for the infringement of the DCI Registered Rights and the DCI Proprietary Information.  To the Best Knowledge of Corporation, the marketing, promotion, distribution or sale by the Corporation of any products or interests subject to the DCI Registered Rights or making use of DCI Proprietary Information shall not constitute an infringement of any patent, copyright, trademark, service mark or misappropriation or violation of any other party's proprietary rights or a violation of any license or agreement by the Corporation. Except as described in Exhibit 9.13 hereto, to the knowledge of the Corporation after due inquiry no facts or circumstances exist that could result in the invalidation of any of the DCI Registered Rights.

          9.14          No Liens or Encumbrances.  The Corporation has good and marketable title to all of the property and assets, tangible and intangible, employed in the operations of its business, free of any material mortgages, security interests, pledges, easements or encumbrances of any kind whatsoever and except for liens in favor of the holders of the DCI Shareholder Notes and the lien in favor of SKYLYNX.  

          9.15          Employee Matters.  Exhibit 9.15 attached hereto contains a true, complete and accurate list of all employees of the Corporation and the remuneration of each (including wages, salaries and fringe benefits).  The Corporation has no information or fact indicating that any employee listed on Exhibit 9.15 intends to terminate his/her employment relationship with the Corporation prior or subsequent to the Closing Date, except as may be required by this Agreement.  Except as specifically described on Exhibit 9.15, the Corporation has no employee benefit plans (including, but not limited to, pension plans and health or welfare plans), arrangements or understandings, whether formal or informal.  The Corporation does not now and has never contributed to a "multi-employer plan" as defined in Section 400(a)(3) of the ERISA.  The Corporation has complied with all applicable provisions of ERISA and all rules and regulations promulgated thereunder, and neither the Corporation nor any trustee, administrator, fiduciary, agent or employee thereof has at any time been involved in a transaction that would constitute a "prohibited transaction" within the meaning of Section 406 of ERISA as to any covered plan of the Corporation.  The Corporation is not a party to any collective bargaining or other union agreement.  The Corporation has not, within the past five (5) years had, or been threatened with, any union activities, work stoppages or other labor trouble with respect to its employees which had a material adverse effect on the Corporation, its business or assets.  Except as set forth in Exhibit 9.15, the Corporation has not made any commitment or agreements to increase the wages or modify the conditions or terms of employment of any of the employees of the Corporation used in connection with its business, and between the date of this Agreement and the Closing Date, the Corporation will not make any agreement to increase the wages or modify the conditions or terms of employment of any of the employees of the Corporation used in the conduct of its business, without the prior written consent of all parties hereto.

          9.16          Legal Proceedings and Compliance with Law.  DCI has not received notice of any legal, administrative, arbitration or other proceeding or governmental investigation pending or threatened (including those relating to the health, safety, employment of labor, or protection of the environment) pertaining to DCI which might result in the aggregate in money damages payable by DCI in excess of insurance coverage or which might result in a permanent injunction against DCI.  Except as set forth in such Exhibit 9.16, DCI has substantially complied with, and is not in default in any respect under any applicable laws, ordinances, requirements, regulations, or orders applicable to the business of DCI, the violation of which might materially and adversely affect it.  Except as set forth in such Exhibit 9.16, DCI is not a party to any agreement or instrument, nor is it subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree, rule, regulation, code or ordinance which materially and adversely affects, or might reasonably be expected materially and adversely to affect the business, operations, prospects, property, assets or condition, financial or otherwise, of
DCI.

          9.17          Contract Schedules..  Attached as Exhibit 9.17 hereto is an accurate list of the following:

                    (a)          All contracts, leases, agreements, covenants, licenses, instruments or commitments of DCI pertaining to the business of DCI calling for the payment of Five Thousand Dollars ($5,000) or more or which is otherwise material to the business of DCI, including, without limitation, the following:

	 	 	 	
(i)
	
Licenses and contracts held in the ordinary course of business;

	 	 	 	 	 
	 	 	 	
(ii)
	
Executory contracts for the purchase, sale or lease of any assets;

	 	 	 	 	 
	 	 	 	
(iii)
	
Management or consulting contracts;

	 	 	 	 	 
	 	 	 	
(iv)
	
Patent, trademark and copyright applications, registrations or licenses, and know-how, intellectual property and trade secret agreements or other licenses;

	 	 	 	 	 
	 	 	 	
(v)
	
Note agreements, loan agreements, indentures and the like, other than those entered into and executed in the ordinary course of business; 

	 	 	 	 	 
	 	 	 	
(vi)
	
All sales, agency, distributorship or franchise agreements; and

	 	 	 	 	 
	 	 	 	
(vii)
	
Any other contracts not in the ordinary course of business.

                    (b)          All labor contracts, employment agreements and collective bargaining agreements to which DCI is a party. 

                    (c)          All instruments evidencing any liens or security interest securing any indebtedness of DCI covering any asset of
DCI.

                    (d)          All profit sharing, pension, stock option, severance pay, retirement, bonus, deferred compensation, group life and health insurance or other employee benefit plans, agreements, arrangements or commitments of any nature whatsoever, whether or not legally binding, and all agreements with any present or former officer, director or shareholder of the Corporation.

                    (e)          Any and all documents, instruments and other writings not listed in any other schedule hereto which are material to the business operations of
DCI.

                    Except as set forth in Exhibit 9.17, all of such contracts, agreements, leases, licenses, plans, arrangements and commitments and all other such items set forth above are valid, binding and in full force and effect in accordance with their terms and conditions, except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, fraudulent transfer, reorganization or other similar laws affecting the enforcement of contracts generally, and there is no existing material default thereunder or breach thereof by the Corporation, or to DCI's knowledge by any party to such contracts, or any conditions which, with the passage of time or the giving of notice or both, might constitute such a default by the Corporation or by any other party to the contracts.

          9.18          Labor Matters.  There are no strikes, slowdowns, stoppages, organizational efforts, discrimination charges or other labor disputes pending or, to the knowledge of DCI or any of its agent or employees, threatened against
DCI.

          9.19          Insurance.  DCI maintains insurance coverage on its assets and business as disclosed in Exhibit 9.19.

          9.20          Environmental.  Except as disclosed on Exhibit 9.20, DCI has never owned or operated any real property except for leased office and warehouse space:  

                    (a)          To the Best Knowledge of DCI, no real property (or the subsurface soil and the ground water thereunder) now or previously leased by DCI (the "Leased Premises") either contains any Hazardous Substance (as hereinafter defined) or has underneath it any underground fuel or liquid storage tanks;

                    (b)          To the Best Knowledge of DCI, there has been no generation, transportation, storage, treatment or disposal of any Hazardous Substance on or beneath the Leased Premises, now or in the past;

                    (c)          DCI is not aware of any pending or threatened litigation or proceedings before any court or administrative agency in which any person alleges, or threatens to allege, the presence, release, threat of release, placement on or in the Leased Premises, or the generation, transportation, storage, treatment or disposal at the Leased Premises, of any Hazardous Substance;

                    (d)          DCI has not received any written notice and has no knowledge that any Governmental Authority or any employee or agent thereof has determined or alleged, or is investigating the possibility, that there is or has been any presence, release, threat of release, placement on or in the Leased Premises, or any generation, transportation, storage, treatment or disposal at the Leased Premises, of any Hazardous Substance;

                    (e)          To the Best Knowledge of DCI, there have been no communications or agreements with any Governmental Authority or agency (federal, state, or local) or any private person or entity (including, without limitation, any prior owner of the Leased Premises and any present or former occupant or tenant of the Leased Premises) relating in any way to the presence, release, threat of release, placement on or in the Leased Premises, or any generation, transportation, storage, treatment or disposal at the Leased Premises, of any Hazardous Substance.  DCI further agrees and covenants that DCI will not store or deposit on, otherwise release or bring onto or beneath, the Leased Premises any Hazardous Substance prior to the Closing Date; and

                    (f)          There is no litigation, proceeding, citizen's suit or governmental or other investigation pending, or, to DCI's Best Knowledge, threatened, against DCI, and DCI knows of no facts or circumstances which might give rise to any future litigation, proceeding, citizen's suit or governmental or other investigation, which relate to DCI's compliance with environmental laws, regulations, rules, guidelines and ordinances.

                    For purposes of this Section 9.20, "Hazardous Substance" shall mean and include (i) a hazardous substance as defined in 42 U.S.C. Section 9601(14), the Regulations at 40 C.F.R. Part 302, (2) any substance regulated under the Emergency Planning and Community Right to Know Act (including without limitation any extremely hazardous substances listed at 40 C.F.R. Part 355 and any toxic chemical listed at 40 C.F.R. Part 372), (iii) hazardous wastes and hazardous substances as specified under any Texas state or local Governmental Requirement governing water pollution, groundwater protection, air pollution, solid wastes, hazardous wastes, spills and other releases of toxic or hazardous substances, transportation of hazardous substances, materials and wastes and occupational or employee health and safety, and (iv) any other material, gas or substance known or suspected to be toxic or hazardous (including, without limitation, any radioactive substance, methane gas, volatile hydrocarbon, industrial solvent, and asbestos) or which could cause a material detriment to, or materially impair the beneficial use of, the Leased Premises, or constitute a material health, safety or environmental risk to any person exposed thereto or in contact therewith.  For purposes of this Section 9.20, "Hazardous Substance" shall not mean and shall not include the following, to the extent used normally and required for everyday uses or normal housekeeping or maintenance:  (a) fuel oil and natural gas for heating, (b) lubricating, cleaning, coolant and other compounds customarily used in building maintenance, (c) materials routinely used in the day-to-day operations of an office, such as copier toner, (d) consumer products, (e) material reasonably necessary and customarily used in construction and repair of an office project, and (f) fertilizers, pesticides and herbicides commonly used for routine office landscaping.

          9.21          Disclosure of Information.  The Corporation represents and warrants that all statements, data and other written information provided by it to any party hereto as well as their respective consultants and representatives have been accurate copies or true originals.  The Corporation represents and warrants that, to its Best Knowledge, (i) there exists no material information concerning the Corporation which has been requested but not been disclosed to or made available to the other parties and their representatives or consultants and which would be material to a decision to consummate the transactions provided for in this Agreement and (ii) in the aggregate, such information does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made in them, in light of the circumstances under which they are made, not misleading.

          9.22          Representations and Warranties.  The representations and warranties contained in this Agreement shall be true on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on and as of the Closing Date.  Such representations and warranties shall survive the Closing Date and shall remain operative in full force and effect for the period of eighteen months from the date of Closing regardless of any investigation at any time made by or on behalf of SKYLYNX and shall not be deemed merged in any document or instruction so executed and/or delivered by DCI or Shareholders.

          9.23          Absence of Questionable Payments.  To the Best Knowledge of DCI, neither DCI, nor any director, officer, agent, employee or other person acting on any its behalf has (i) used any corporate or other funds for unlawful contributions, payments, gifts or entertainment, or made any unlawful expenditures relating to political activity to government officials or others or established or maintained any unlawful or unrecorded funds in violation of Section 30A of the Exchange Act or any other applicable foreign, federal or state law; or (ii) accepted or received any unlawful contributions, payments, expenditures or gifts.

SECTION 10:  COVENANTS OF DCI

          10.1          Preservation of Business.  Until Closing, DCI shall use its best efforts to cause DCI to:

                    (a)          Preserve intact the present business organization of DCI; and

                    (b)          Maintain its property and assets in its present state of repair, order and condition, reasonable wear and tear excepted; and

                    (c)          Preserve and protect the goodwill and advantageous relationships of DCI with its customers and all other persons having business dealings with DCI; and

                    (d)          Preserve and maintain in force all licenses, permits, registrations, franchises, patents, trademarks, tradenames, trade secrets, service marks, copyrights, bonds and other similar rights of DCI; and 

                    (e)          Comply with all laws applicable to the conduct of its business

          10.2          Ordinary Course.  Until Closing, DCI shall conduct its business only in the usual, regular and ordinary course, in substantially the same manner as previously, and shall not make any substantial change to its methods of management or operation in respect of such business or property.  Without limiting the foregoing, DCI shall not, with respect to
DCI:

                    (a)          Sell, mortgage, pledge or encumber or agree to sell, mortgage, pledge or encumber, any of its property or assets, other than in the ordinary course of business;

                    (b)          Incur any obligation (contingent or otherwise) or purchase, acquire, transfer, or convey, any material assets or property or enter into any contract or commitment, except in the ordinary course of business.

                    (c)          Without the consent of SKYLYNX, which consent shall not be unreasonably withheld, pay or retire any debt or liabilities except for (i) general, administrative and overhead expenses, (ii) salaries and other employee obligations previously committed, (iii) normal trade payables and vendor liabilities (iv) payments due under the Marquette Commerical Finance, and (v) other expenses incurred in the ordinary course of business.

          10.3          Negative Covenants.  Until Closing, except as contemplated by this Agreement or as disclosed in Exhibits to this Agreement, from the date hereof until the Closing Date, unless and until SKYLYNX otherwise consents in writing, DCI will not: 

                    (a)          change or alter the physical contents or character of the inventories of its business, so as to materially affect the nature of the Corporation's business or materially and adversely change the total dollar valuation of such inventories, other than in the ordinary course of business; 

                    (b)          incur any obligations or liabilities (absolute or contingent) other than current liabilities incurred and obligations under contracts entered into in the ordinary course of business; 

                    (c)          mortgage, pledge or voluntarily subject to lien, charge or other encumbrance any assets, tangible or intangible, other than the lien of current property taxes not due and payable; 

                    (d)          sell, assign or transfer any of its assets or cancel any debts or claims, other than in the ordinary course of business; 

                    (e)          waive any right of any substantial value; 

                    (f)          declare or make any payment or distribution to Shareholders or issue, purchase or redeem any shares of its capital stock or other equity securities or issue or sell any rights to acquire the same or effect any stock split, recapitalization, combination, or reclassification of its capital stock, or reorganization; 

                    (g)          grant any increase in the salary or other compensation of any of its directors, officers, or employees or make any increase in any benefits to which such employees might be entitled or enter into any employment agreement or consulting agreement; 

                    (h)          institute any bonus, benefit, profit sharing, stock option, pension, retirement plan or similar arrangement, or make any changes in any such plans or arrangements presently existing;  

                    (i)          enter into any transactions or series of transactions other than in the ordinary course of business; 

                    (j)          amend or propose to amend its Articles of Incorporation or By-Laws; 

                    (k)          make any change in accounting methods, principles or practices; 

                    (l)          authorize capital expenditures or make any acquisition of, or investment in, assets or stock of any other Person; 

                    (m)          enter into or amend any material contract or agreement other than in the ordinary course of business; 

                    (n)          make any tax election or settle or compromise any material federal, state, local or foreign income tax liability; 

                    (o)          permit any material insurance policy to be canceled or terminated, except in the ordinary course of  business;  

                    (p)          assume, guarantee or endorse, or otherwise as an accommodation become responsible for, the obligations of any person or make any loans or advances; 

                    (q)          maintain its real and personal properties in as good a state of operating condition and repair as they are on the date of this Agreement, except for ordinary wear and tear or insured casualty in amounts less than $5,000; 

                    (r)          terminate or modify any material leases, contracts, licenses, and permits or other authorizations or agreements affecting its business or its real and/or personal property, or the operation thereof, or enter into any additional lease or contract requiring expenditure by it of any amount affecting such properties or the operation thereof; or 

                    (s)          discharge, satisfy or pay any liens, encumbrances, obligations or liabilities relating to it, whether absolute or contingent (including litigation claims), other than liabilities shown on Exhibit 4.1 and liabilities incurred after the date thereof in the ordinary course of business, and no such discharge, satisfaction or payment shall be effected other than in accordance with the ordinary payment terms relating to the liability discharged, satisfied or paid.

          10.4          Additional Covenants.

                    (a)          DCI will promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful taxes, assessments, and governmental charges or levies imposed upon the income, profits, property or business of DCI or any subsidiary; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if DCI shall have set aside on its books adequate reserves therefor; and provided, further, that DCI will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien that may have attached as security therefor.  DCI will promptly pay or cause to be paid when due, or in conformance with customary trade terms, all other indebtedness incident to the operations of
DCI;

                    (b)          DCI will keep its properties and those of its subsidiaries in good repair, working order and condition, reasonable wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements thereto; and DCI will at all times comply with the provisions of all material leases to which any of them is a party or under which any of them occupies property so as to prevent any loss or forfeiture thereof or
thereunder;

                    (c)          DCI will keep its assets that are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire, extended coverage and explosion insurance in amounts customary for companies in similar businesses similarly situated; and immediately following the Closing, DCI will maintain, with financially sound and reputable insurers, insurance against other hazards, risks and liabilities to persons and property to the extent and in the manner customary for companies in similar businesses similarly situated;

                    (d)          DCI will keep true records and books of account in which full, true and correct entries will be made of all dealings or transactions in relation to its business and affairs in accordance with its past practices consistently applied; 

                    (e)          DCI will comply with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, a breach of which could have a material adverse effect on its business or credit;

                    (e)          DCI shall maintain in full force and effect its corporate existence, rights and franchises and all licenses and other rights to use patents, processes, licenses, trademarks, trade names or copyrights owned or possessed by it or any subsidiary and deemed by DCI to be necessary to the conduct of its business;

                    (f)          DCI will, consistent with its practices in the ordinary course of business, endeavor to retain its business relationships with its customers and suppliers that it believes to be advantageous; and

                    (g)          DCI shall deliver to SKYLYNX copies of its statements of operation and financial condition and similar statements as and when prepared (if at all) in the ordinary course of its business.

          10.5          Access to Books and Records, Premises, Etc.  From the date of this Agreement through the Closing Date, DCI will grant SKYLYNX and its authorized representatives reasonable access  during normal business hours to its books and records, premises, products, employees and customers and other parties with whom it has contractual relations during reasonable business hours and in a manner not to disrupt or interfere with DCI's business relationships for purposes of enabling SKYLYNX to fully investigate the business of
DCI.  

          10.6          Compensation.  Except as contemplated by this Agreement, DCI shall not enter into or agree to enter into any employment contract or agreement for consulting, professional, or other services which will adversely and materially affect the operation of DCI prior to the Closing Date, except for any extensions of said contracts or agreements on substantially the same terms and conditions as were previously in effect.

          10.7          No Solicitation.

                    (a)          Except in connection with the transactions contemplated by this Agreement, DCI shall not, nor shall it permit any of its subsidiaries to, nor shall it authorize or permit any officer, director or employee of or any investment banker, attorney or other advisor or representative of, DCI or any of its subsidiaries to, (i) solicit, initiate or encourage the submission of, any takeover proposal, (ii) enter into any agreement with respect to any takeover proposal or (iii) participate in any discussions or negotiations regarding, or furnish to any person any information with respect to, or take any other action to facilitate any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any takeover proposal.  Without limiting the foregoing, it is understood that any violation of the restrictions set forth in the preceding sentence by any executive officer of DCI or any of its subsidiaries or any investment banker, attorney or other advisor or representatives of DCI or any of its subsidiaries or otherwise, shall be deemed to be a breach of this Section by DCI.  For purposes of this Agreement, "takeover proposal" means any proposal for a merger, consolidation or reorganization or other business combination involving DCI or any of its subsidiaries or any proposal or offer to acquire in any manner, directly or indirectly, an equity interest in, any voting securities of, or options, rights, warrants or other interests convertible or exercisable for or into such voting securities, or a substantial or material portion of the assets or business of DCI or any of its subsidiaries, other than the transactions contemplated by this Agreement.

                    (b)          Except upon a material breach of this Agreement by SKYLYNX or SAC or following termination hereof and except for action permitted or contemplated by this Agreement, including a party's right to terminate this Agreement under certain circumstances, neither the Board of Directors of DCI nor any committee thereof shall (i) withdraw or modify, or propose to withdraw or modify, in a manner adverse to SKYLYNX, the approval or recommendation by such Board of Directors of any such committee of this Agreement or the Exchange or (ii) approve or recommend, or propose to approve or recommend, any takeover proposal.

                    (c)          DCI promptly shall advise SKYLYNX orally and in writing of any takeover proposal or any inquiry with respect to or which could lead to any takeover proposal and the identity of the person making any such takeover proposal or inquiry.  DCI will keep SKYLYNX fully informed of the status and details of any such takeover proposal or inquiry.

                    (d)          The provisions of this Section 10.7 shall not be construed to prevent any investment banker, attorney or other advisor or representative of DCI to engage in discussions with third parties in the ordinary course of business with respect to transactions not involving the parties to this Agreement.

SECTION 11:   REPRESENTATIONS AND WARRANTIES OF SKYLYNX AND SAC

          As a material inducement to DCI to enter into this Agreement and with the understanding and expectation that DCI will be relying thereon in consummating the Merger contemplated hereunder, SKYLYNX and SAC (which hereafter may collectively be referred to in Sections 11 and 12 only as the "Corporation") represent and warrant as follows: 

          1.1          Organization and Standing.  SKYLYNX and SAC are corporations duly organized, validly existing and in good standing under the laws of the states of their respective formation and organization and have all requisite corporate power and authority to own their assets and properties and to carry on their businesses as they are now being conducted. 

          11.2          Subsidiaries, etc.  SAC is a subsidiary of and is wholly owned by SKYLYNX, a Colorado.  Other than its ownership interests disclosed in its SEC Documents, as hereinafter defined, SKYLYNX has no direct or indirect ownership interest in any corporation, partnership, joint venture, association or other business enterprise. SAC does not have any direct or indirect ownership interest in any corporation, partnership, joint venture, association or other business enterprise, and, at the Effective Time, will have no assets and no liabilities. 

          11.3          Qualification.  SKYLYNX and SAC are not qualified to engage in business as foreign corporations in any state, and there is no other jurisdiction wherein the character of the properties presently owned by SKYLYNX and SAC or the nature of the activities presently conducted by SKYLYNX and SAC make necessary the qualification, licensing or domestication of SKYLYNX or SAC as foreign corporations.

          11.4          Corporate Authority.  Except as set forth on Exhibit 11.4 hereto, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby nor compliance by SKYLYNX and SAC with any on the provisions hereof will:

                    (a)          Conflict with or result in a breach of any provision of its Articles of Incorporation or By-Laws or similar documents of any Subsidiary;

                    (b)          Result in a default (or give rise to any right of termination, cancellation, or acceleration) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, agreement or other instrument or obligation to which the Corporation is a party, or by which any of its properties or assets may be bound except for such default (or right of termination, cancellation, or acceleration) as to which requisite waivers or consents shall either have been obtained by the Corporation prior to the Closing Date or the obtaining of which shall have been waived by DCI; or

                    (c)          Violate any order, writ, injunction, decree or, to the Corporation's Best Knowledge, any statute, rule or regulation applicable to the Corporation or any of its properties or assets.  No consent or approval by any Governmental Authority is required in connection with the execution and delivery by the Corporation of this Agreement or the consummation by the Corporation of the transactions contemplated hereby, except for possible notice under plant closing laws.

          11.5          SEC Documents; Financial Statements.  The Common Stock of SKYLYNX is registered pursuant to Section 12(g) of the Exchange Act.  DCI has had the opportunity to obtain on DCI's behalf true and complete copies of the SEC Documents (except for exhibits and incorporated documents).  SKYLYNX has not provided to DCI any information which, according to applicable law, rule or regulation, should have been disclosed publicly by SKYLYNX but which has not been so disclosed, other than with respect to the transactions contemplated by this Agreement.  

                    As of their respective dates, all of SKYLYNX's reports, statements and other filings with the Commission (the "SEC Documents") complied in all material respects with the requirements of the Act or the Exchange Act as the case may be and the rules and regulations of the Commission promulgated thereunder and other federal, state and local laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of SKYLYNX included in the SEC Documents comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto.  Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of SKYLYNX as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

          11.6          Capitalization of the Corporation.  The authorized capital stock of SKYLYNX consists entirely of 100,000,000 shares of Common Stock having a par value of $.0001 per share, and 25,000,000 shares of Preferred Stock having a par value of $.0001 per share.  As of September 30, 2005, there were a total of __________________ shares of Common Stock issued and outstanding and no shares of Preferred Stock issued and outstanding.  All outstanding shares of SKYLYNX's capital stock have been validly issued, are fully paid and non-assessable, and are not subject to pre-emptive rights.  The issuance of the shares of SKYLYNX Series A Preferred and Series B Preferred to be issued to the DCI Shareholders on the Closing Date in accordance with Sections 5.1 and 5.5 hereof have been duly approved by the Directors of SKYLYNX and will, upon their issuance, have been validly issued and will be fully paid and non-assessable, free of any liens, encumbrances and claims of any kind and nature except restrictions against transferability without compliance with applicable federal and state securities laws.  Except as described in SKYLYNX's SEC Documents, there are no equity securities of SKYLYNX authorized, issued or outstanding, and except as set forth in SKYLYNX's SEC Documents or on Exhibit 11.6 hereto, there are no authorized, issued or outstanding subscriptions, options, warrants, contracts, calls, commitments or other purchase rights of any nature or character relating to any of SKYLYNX's capital stock, equity securities, debt or other securities convertible into stock or equity securities of SKYLYNX.  As of the date of this Agreement, there are no outstanding contractual obligations of SKYLYNX to repurchase, redeem or otherwise acquire any shares of capital stock of SKYLYNX.  There are no voting trusts, stockholder agreements or other voting arrangements to which the Corporation is a party or, to the Best Knowledge of SKYLYNX, to which any of the SKYLYNX Common Stockholders is a party or bound.

          11.7          No Actions, Proceedings, Etc.  Except as listed on the attached Exhibit 11.7, there is no action or proceeding (whether or not purportedly on behalf of the Corporation) pending or to its knowledge threatened by or against the Corporation, which might result in any material adverse change in the condition, financial or otherwise, of the Corporation's business or assets. No order, writ or injunction or decree has been issued by, or requested of any court or Governmental Agency which does nor may result in any material adverse change in the Corporation's assets or properties or in the financial condition or the business of the Corporation. The Corporation is not liable for damages to any employee or former employee as a result of any violation of any state, federal or foreign laws directly or indirectly relating to such employee or former employee.

          11.8          Taxes.  Except as set forth in Exhibit 11.8:

                    (a)          The Corporation has filed (or has obtained extensions for filing) all income, excise, sales, corporate franchise, property, payroll and other tax returns or reports required to be filed by it, as of the date hereof by the United States of America, any state or other political subdivision thereof or any foreign country and has paid all Taxes or assessments relating to the time periods covered by such returns or reports; and

                    (b)          The Corporation has paid all tax liabilities imposed or assessed by any governmental authority for all periods prior to the Closing Date for which such taxes have become due and payable and has received no notice from any such governmental authority of any deficiency or delinquency with respect to such obligation.  The Corporation is not currently undergoing any audit conducted by any taxing authority and has received no notice of audit covering any prior period for which taxes have been paid or are or will be due and payable prior to the Closing Date.  There are no present disputes as to taxes of any nature payable by the Corporation.

          11.9          Subsequent Balance Sheet Changes.  Except as set forth on Exhibit 11.9 and as contemplated by this Agreement, since the date of the latest financial statements, the Corporation has not: 

                    (a)          issued, bought, redeemed or entered into any agreements, commitments or obligations to sell, buy or redeem any shares of its capital stock, including but not limited to any options or warrants to purchase any securities of the Corporation or any securities convertible into capital stock of the Corporation; 

                    (b)          incurred any obligation or liability (absolute or contingent), other than current liabilities incurred, and obligations under contracts entered into, in the ordinary course of business; 

                    (c)          discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or contingent), other than current liabilities incurred in the ordinary course of business; 

                    (d)          mortgaged, pledged or subjected to lien charges, or other encumbrance any of its assets, other than the lien of current or real property taxes not yet due and payable; 

                    (e)          waived any rights of substantial value, whether or not in the ordinary course of business; 

                    (f)           suffered any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting its assets or its business; 

                    (g)           made or suffered any amendment or termination of any material contract or any agreement which adversely affects its business; 

                    (h)           received notice or had knowledge of any labor trouble other than routine grievance matters, none of which is material; 

                    (i)           increased the salaries or other compensation of any of its directors, officers or employees or made any increase in other benefits to which employees may be entitled, other than employee salary increases made in the ordinary course of business and reflected on an exhibit hereto; 

                    (j)           sold, transferred or otherwise disposed of any of its assets, other than in the ordinary course of business; 

                    (k)          declared or made any distribution or payments to any of its shareholders, officers or employees, other than wages and salaries made to employees in the ordinary course of business; 

                    (l)           revalued any of its assets; or 

                    (m)          ntered into any transactions not in the ordinary course of business.

          11.10          No Breaches.  Except as set forth on Exhibit 11.10, the Corporation is not in violation of, and the consummation of the transactions contemplated hereby do not and will not result in any material breach of, any of the terms or conditions of any mortgage, bond, indenture, agreement, contract, license or other instrument or obligation to which the Corporation is a party or by which its assets are bound; nor will the consummation of the transactions contemplated hereby cause SKYLYNX or any Subsidiary to violate any statute, regulation, judgment, writ, injunction or decree of any court, threatened or entered in a proceeding or action in which the Corporation is, was or may be bound or to which any of the Corporation's assets are subject.

          11.11          Corporate Acts and Proceedings.  This Agreement has been duly authorized by all necessary corporate action on behalf of SKYLYNX, has been duly executed and delivered by authorized officers of SKYLYNX, and is a valid and binding Agreement on the part of SKYLYNX that is enforceable against SKYLYNX in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, fraudulent transfers, reorganization or other similar laws affecting the enforcement of creditors' rights generally and to judicial limitations on the enforcement of the remedy of specific performance and other equitable remedies.  All corporate action necessary to issue and deliver to the DCI Shareholders the SKYLYNX Series A Preferred (as described in Sections 5.1) shall be completed within thirty (30) days following closing.

          11.12          Legal Proceedings and Compliance with Law.  Except as set forth in Exhibit 11.12, SKYLYNX has not received notice of any legal, administrative, arbitration or other proceeding or governmental investigation pending or threatened (including those relating to the health, safety, employment of labor, or protection of the environment) pertaining to SKYLYNX which might result in the aggregate in money damages payable by SKYLYNX in excess of insurance coverage or which might result in a permanent injunction against SKYLYNX.  Except as set forth in such Exhibit 11.12, SKYLYNX has substantially complied with, and is not in default in any respect under any laws, ordinances, requirements, regulations, or orders applicable to the business of SKYLYNX, the violation of which might materially and adversely affect it.  Except as set forth in such Exhibit 11.12, SKYLYNX is not a party to any agreement or instrument, nor is it subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree, rule, regulation, code or ordinance which materially and adversely affects, or might reasonably be expected materially and adversely to affect the business, operations, prospects, property, assets or condition, financial or otherwise, of SKYLYNX.

          11.13          Disclosure of Information.  SKYLYNX represents and warrants that all statements, data and other written information provided by it to any party hereto as well as their respective consultants and representatives have been accurate copies or true originals.  SKYLYNX represents and warrants that, to its Best Knowledge, (i) there exists no material information concerning SKYLYNX which has been requested but not been disclosed to or made available to the other parties and their representatives or consultants and which would be material to a decision to consummate the transactions provided for in this Agreement and (ii) in the aggregate, such information does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made in them, in light of the circumstances under which they are made, not misleading.

          11.14          Representations and Warranties.  The representations and warranties contained in this Agreement shall be true on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on and as of the Closing Date.  Such representations and warranties shall survive the Closing Date and shall remain operative in full force and effect for a period of eighteen months from the date of Closing regardless of any investigation at any time made by or on behalf of DCI and shall not be deemed merged in any document or instruction so executed and/or delivered by SKYLYNX.

          11.15          Absence of Questionable Payments.  To the Best Knowledge of the Corporation, neither the Corporation, nor any director, officer, agent, employee or other person acting on any its behalf has (i) used any corporate or other funds for unlawful contributions, payments, gifts or entertainment, or made any unlawful expenditures relating to political activity to government officials or others or established or maintained any unlawful or unrecorded funds in violation of Section 30A of the Exchange Act or any other applicable foreign, federal or state law; or (ii) accepted or received any unlawful contributions, payments, expenditures or gifts.

SECTION 12:   COVENANTS OF SKYLYNX AND SAC

          12.1          Preservation of Business.  Until Closing, except as provided for in this Agreement, SKYLYNX shall use its best efforts to:

                    (a)          Preserve intact the present business organization of SKYLYNX; 

                    (b)          Maintain its property and assets in its present state of repair, order and condition, reasonable wear and tear excepted;

                    (c)          Preserve and protect the goodwill and advantageous relationships of the Corporation with its customers and all other persons having business dealings with the Corporation; 

                    (d)          Preserve and maintain in force all licenses, permits, registrations, franchises, patents, trademarks, tradenames, trade secrets, service marks, copyrights, bonds and other similar rights of the Corporation; and 

                    (e)          Comply with all laws applicable to the conduct of its business.

          12.2          Additional Covenants.

                    (a)          SKYLYNX will promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful taxes, assessments, and governmental charges or levies imposed upon the income, profits, property or business of SKYLYNX or any subsidiary; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if SKYLYNX shall have set aside on its books adequate reserves therefor and deposited at Closing into an escrow account an amount to cover any such tax, assessment, charge or levy; and provided, further, that SKYLYNX will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien that may have attached as security therefor.  The Corporation will promptly pay or cause to be paid when due, or in conformance with customary trade terms, all other indebtedness incident to the operations of the Corporation;

                    (b)          SKYLYNX will keep its properties and those of its subsidiaries in good repair, working order and condition, reasonable wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements thereto; and SKYLYNX will at all times comply with the provisions of all material leases to which any of them is a party or under which any of them occupies property so as to prevent any loss or forfeiture thereof or
thereunder;

                    (c)          SKYLYNX will keep its assets that are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire, extended coverage and explosion insurance in amounts customary for companies in similar businesses similarly situated; and SKYLYNX will maintain, with financially sound and reputable insurers, insurance against other hazards, risks and liabilities to persons and property to the extent and in the manner customary for companies in similar businesses similarly situated;

                    (d)          SKYLYNX will keep true records and books of account in which full, true and correct entries will be made of all dealings or transactions in relation to its business and affairs in accordance with its past practices consistently applied;

                    (e)          SKYLYNX will comply with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, a breach of which could have a material adverse effect on its business or credit;

                    (e)          SKYLYNX shall maintain in full force and effect its corporate existence, rights and franchises and all licenses and other rights to use patents, processes, licenses, trademarks, trade names or copyrights owned or possessed by it or any subsidiary and deemed by SKYLYNX to be necessary to the conduct of its business;

                    (f)          SKYLYNX will, consistent with its practices in the ordinary course of business, endeavor to retain its business relationships with its customers and suppliers that it believes to be advantageous; and

                    (g)          SKYLYNX shall deliver to DCI copies of its statements of operation and financial condition and similar statements as and when prepared (if at all) in the ordinary course of its business.

          12.3          Access to Books and Records, Premises, Etc.  From the date of this Agreement through the Closing Date, SKYLYNX will grant DCI and its authorized representatives reasonable access during normal business hours to its and the Subsidiaries' books and records, premises, products, employees and customers and other parties with whom it has contractual relations during reasonable business hours for purposes of enabling DCI to fully investigate the business of SKYLYNX and the Subsidiaries.  SKYLYNX will also deliver copies of the monthly statements of operations and financial condition for the period subsequent to the latest financial statements to DCI within a reasonable time of such statements becoming available.

SECTION 13:  TERMINATION

          13.1          Termination.  This Agreement may be terminated and abandoned solely as follows: 

                    (a)          At any time until the Closing Date by the mutual agreement of the Board of Directors of DFTS, SKYLYNX, SAC, and the Shareholders of
DCI,. 

                    (b)          Failure of Conditions.  This Agreement may be terminated by either party hereto, if the conditions, as set forth in this Agreement to such terminating party's obligations under this Agreement are not fulfilled on or prior to the Closing Date; provided that any such termination shall not limit the remedies otherwise available to such party as a result of misrepresentations of or breaches by the other party. 

                    (c)          Material Breach.   This Agreement may be terminated by either party if the other party is in material breach or default of its respective covenants, agreements or other obligations hereunder, or if any of its representations and warranties herein are not true and accurate in all material respects when made or when otherwise required by this Agreement to be true and accurate. 

                    (d)          By either SKYLYNX, SAC, DFTS or the Shareholders of DCI, if for any reason the parties have failed to close this Agreement on or before January 15, 2005, provided that neither SKYLYNX, SAC, DFTS nor the Shareholders of DCI is then in default hereunder. 

          In the event of any termination pursuant to this Section 13.1 (other than pursuant to subparagraph 13.1(a)), written notice setting forth the reasons therefor shall forthwith be given by DFTS, if it is the terminating party, to SKYLYNX, SAC, and the Sherholders of DCI, or by SKYLYNX or SAC, if either of them is the terminating party, to DFTS and the Sharehodlers of DCI, or by the Shareholders of DCI, if it is the terminating party, to DFTS, SKYLYNX and SAC. 

          13.2          Effect of Termination.  If terminated as provided for in this Section, this Agreement shall forthwith become wholly void and of no effect, except for the confidentiality obligations set forth in Section 15 hereof, without liability to any party to this Agreement except for breach of this Agreement. 

SECTION 14:   INDEMNIFICATION

          14.1          Indemnification Covenants of SKYLYNX.  Subject to the limitations set forth in this Section 14, SKYLYNX shall defend, indemnify, save and keep harmless DFTS and its affiliates, directors, officers, agents, attorneys, accountants, or representatives and their respective successors and permitted assigns (the "DFTS Indemnitees") and the Sharehoders of DCI, against and from all liability, demands, claims, actions or causes of action, assessments, losses, fines, penalties, costs, damages and expenses, including reasonable attorneys' fees (collectively, the "Damages") sustained or incurred by any of the DFTS Indemnitees as a result of or arising out of or relating to:

                    (a)          Any inaccuracy in a representation or breach of a warranty made by the SKYLYNX or SAC and in this Agreement or in any document or instrument delivered to DFTS and the Shareholders of DCI in connection with this Agreement; or

                    (b)          The failure of the SKYLYNX or SAC to comply with, or the breach by SKYLYNX or SAC of, any of the covenants contained in this Agreement or in any document or instrument delivered to DFTS and the Shareholders of DCI in connection with this Agreement, to be performed by SKYLYNX or SAC.

          14.2          Indemnification Covenants of DFTS and the Shareholders of DCI.  Subject to the limitations set forth in this Section 14, DFTS and the Shareholders of DCI shall defend, indemnify, save and keep harmless SKYLYNX and its affiliates, managers, officers, members, agents, attorneys, accountants or representatives and their respective successors and permitted assigns (the "SKYLYNX Indemnitees"), against and from all Damages sustained or incurred by any of the SKYLYNX Indemnitees as a result of or arising out of or relating to:

                    (a)          Any inaccuracy in a representation or breach of a warranty made by DFTS and the Shareholders of DCI in this Agreement or in any document or instrument delivered to the SKYLYNX in connection with this Agreement; or

                    (b)          The failure of DFTS and the Shareholders of DCI to comply with, or the breach by DFTS and the Shareholders of DCI of, any of the covenants contained in this Agreement or in any document or instrument delivered to SKYLYNX in connection with this Agreement, to be performed by DFTS and the Shareholders of
DCI.

          14.3          Limitations on Claims and Liability.  

          Notwithstanding any provision of this Agreement to the contrary, no party shall have liability to indemnify the other and neither party may assert a claim for indemnification for damages suffered by it until and unless the party's claims for damages for which the other party is entitled to indemnification equal or exceed, in the aggregate, the sum of $10,000 (the "Damages Threshold"). Upon a party's cumulative claims for indemnification equaling the Damages Threshold, a party may assert claims for indemnification pursuant to Section 14.4 below for the full amount of such party's damages for which it is entitled to indemnification hereunder.

          14.4          Method of Asserting Claims.  For purposes of this Section 14.4, the following terms shall be defined as follows:

                    (a)          "Claims" shall mean all claims asserted pursuant to this Section 14, whether or not arising as a result of a Third Party Claim.

                    (b)          "Indemnified Person" shall mean any DFTS and the Shareholders of DCI Indemnitee, any SKYLYNX Indemnitee or  DFTS and the Shareholders of DCI Indemnitees, as the context requires.

                    (c)          "Indemnifying Person" shall mean any person obligated to indemnify an Indemnified Person pursuant to this Section 14, as the context requires.

                    (d)          "Third Party Claims" shall mean any Claim asserted by any person not a party to this Agreement (including without limitation any Governmental Authority), asserting that an Indemnified Person is liable for monetary or other obligations which may constitute or result in Damages for which such Indemnified Person may be entitled to indemnification pursuant to this Section 14.

                    (e)          All Claims shall be made in writing and shall set forth with reasonable specificity the facts and circumstances of the Claim, as well as the basis upon which indemnification pursuant to this Section 14 is sought.  Notwithstanding the foregoing, no delay or failure by any Indemnified Person to provide notification of any Claim shall preclude any Indemnified Person from recovering for Damages pursuant to this Section 14, except to the extent that such delay or failure materially compromises the rights of any Indemnifying Person under this Section 14.

                    (f)          Within ten (10) days after receipt by an Indemnifying Person of any notification of a Claim, the Indemnifying Person may, upon written notice thereof to the Indemnified Person, assume (at the Indemnifying Person's expense) control of the defense of such action, suit or proceeding with counsel reasonably satisfactory to the Indemnified Person, provided the Indemnifying Person acknowledges in writing to the Indemnified Person that any Damages that may be assessed against the Indemnified Person in connection with such action, suit or proceeding constitute Damages for which the Indemnified Person shall be entitled to indemnification pursuant to this Section 14.  If the Indemnifying Person does not so assume control of such defense, the Indemnified Person shall control such defense, but in so doing shall not waive or limit its right to recover under this Section 14 for any Damages that may be assessed against the Indemnified Person in connection with such action, suit or proceeding.  The party not controlling such defense may participate therein at its own expense; provided that if the Indemnifying Person assumes control of such defense, and the Indemnified Person has been advised in writing by outside legal counsel that under the applicable standards of professional conduct, the Indemnifying Person and the Indemnified Person may not be represented by the same counsel with respect to such action, suit or proceeding, the reasonable fees and expenses of one law firm for the Indemnified Person shall be paid by the Indemnifying Person.  The party controlling such defense shall keep the other party advised of the status of such action, suit or proceeding and the defense thereof and shall consider in good faith recommendations made by the other party with respect thereto.  The Indemnified Person shall not agree to any settlement of such action, suit or proceeding without the prior written consent of the Indemnifying Person, which (with respect to an action, suit or proceeding as to which the Indemnifying Person has not elected to assume control of the defense) shall not be unreasonably withheld, conditioned or delayed.  The Indemnifying Person shall not agree to any settlement of such action, suit or proceeding without the prior written consent of the Indemnified Person, which shall not be unreasonably withheld, conditioned or delayed so long as the settlement includes a complete release of the Indemnified Person from all liability and does not contain or contemplate any payment by, or injunctive or other equitable relief binding upon, the Indemnified Person.

SECTION 15:   NONDISCLOSURE OF CONFIDENTIAL INFORMATION

          15.1          Nondisclosure of Confidential Information.  Each of the parties hereto recognizes and acknowledges that it has and will have access to certain nonpublic information of the others which shall be deemed the confidential information of the other party (including, but not limited to, business plans, costs, trade secrets, licenses, research projects, profits, markets, sales, customer lists, strategies, plans for future development, financial information and any other information of a similar nature) that after the consummation of the transactions contemplated hereby will be valuable, special and unique property of the Companies.  Information received by the other party or its representatives shall not be deemed Confidential Information and afforded the protections of this Section 15.1 if, on the Closing Date, such information has been (i) developed by the receiving party independently of the disclosing party, (ii) rightfully obtained without restriction by the receiving party from a third party, provided that the third party had full legal authority to possess and disclose such information, (iii) publicly available other than through the fault or negligence of the receiving party, (iv) released without restriction by the disclosing party to anyone, including the United States government, (v) properly and lawfully known to the receiving party at the time of its disclosure, as evidenced by written documentation conclusively established to have been in the possession of the receiving party on the date of such disclosure, or (vi) in the opinion of counsel to the party, required to be disclosed under applicable Federal or state securities laws, or the rules of any national securities exchange, Nasdaq, or any over the counter market upon which the securities of the party are then traded.  Each of the parties hereto agrees that it shall not disclose, and that it shall use its best efforts to prevent disclosure by any other Person of, any such confidential information to any Person for any purpose or reason whatsoever, except to authorized representatives of the Companies who agree to be bound by this confidentiality agreement.  Notwithstanding, a party may use and disclose any such confidential information to the extent that a party may become compelled by Legal Requirements to disclose any such information; provided, however, that such party shall use all reasonable efforts and shall have afforded the other party the opportunity to obtain an appropriate protective order or other satisfactory assurance of confidential treatment for any such information compelled to be disclosed.  In the event of termination of this Agreement, each party shall use all reasonable efforts to cause to be delivered to the other parties, and to retain no copies of, any documents, work papers and other materials obtained by such party or on such party's behalf during the conduct of the matters provided for in this Agreement, whether so obtained before or after the execution hereof.  Each of the parties recognizes and agrees that violation of any of the agreements contained in this Section 15.1 will cause irreparable damage or injury to the parties, the exact amount of which may be impossible to ascertain, and that, for such reason, among others, the parties shall be entitled to an injunction, without the necessity of posting bond therefor, restraining any further violation of such agreements.  Such rights to any injunction shall be in addition to, and not in limitation of, any other rights and remedies the parties may have against each other.  The provisions of this Section 15.1 shall survive any termination of this Agreement.

          15.2          No Publicity.  Until the Closing or the termination of this Agreement in accordance with its terms, neither SKYLYNX nor DFTS and the Shareholders of DCI shall, directly or indirectly, issue any press release, or make any public statement, concerning the transactions contemplated by this Agreement without the prior written consent of SKYLYNX (in the case of such a release or statement by DFTS and the Shareholders of DCI) or of DFTS and the Shareholders of DCI (in the case of such a release or statement by SKYLYNX).  This Section 15.2 shall not, however, preclude any party from making any disclosure required by applicable law, and in the event any party, or any officer, director, employee, agent or representative of a party, believes that any press release, public statement or other disclosure is so required, such party will notify and consult with the other parties with respect thereto as promptly as is practicable under the circumstances.

SECTION 16:   EXPENSES

          Each of the parties will pay all costs and expenses of its performance and compliance with this Agreement and the transactions contemplated hereby.  In no event will any party to this Agreement be liable to any other party for incidental damages, lost profits, income tax consequences, lost savings or any other consequential damages, even if such party has been advised of the possibility of such damages, or for punitive damages, resulting from the breach of any obligation under this Agreement.  The provisions of this Section 16 shall survive any termination hereof.

SECTION 17:   MISCELLANEOUS

          17.1          Attorney's Fees.  In any action at law or in equity or in any arbitration proceeding, for declaratory relief or to enforce any of the provisions or rights or obligations under this Agreement, the unsuccessful party to such proceeding, shall pay the successful party or parties all statutorily recoverable costs, expenses and reasonable attorneys' fees incurred by the successful party or parties including without limitation costs, expenses, and fees on any appeals and the enforcement of any award, judgment or settlement obtained, such costs, expenses and attorneys' fees shall be included as part of the judgment.  The successful party shall be that party who obtained substantially the relief or remedy sought, whether by judgment, compromise, settlement or otherwise.

          17.2          No Brokers.  SKYLYNX represents and warrants to DFTS and the Shareholders of DCI and DFTS and the Shareholders of DCI represents and warrants to SKYLYNX, that, except as set forth on Schedule 17.2, neither it nor any party acting on its behalf has incurred any liability, either express or implied, to any "broker," "finder," financial advisor, employee or similar person in respect of any of the transactions contemplated hereby.  SKYLYNX agrees to indemnify DFTS and the Shareholders of DCI against, and hold it harmless from, and DFTS and the Shareholders of DCI agree to indemnify SKYLYNX against, and hold it harmless from, any liability, cost or expense (including, but not limited to, fees and disbursements of counsel) resulting from any agreement, arrangement or understanding made by such party with any third party, including employees of DFTS and DCI, for brokerage, finders' or financial advisory fees or other commissions in connection with this Agreement or the transactions contemplated hereby.  The provisions of this Section 17.2 shall survive any termination of this Agreement. 

          17.3          Survival and Incorporation of Representations.  The representations, warranties, covenants and agreements made herein or in any certificates or documents executed in connection herewith shall survive the execution and delivery thereof for a period of eighteen months from the Closing, and all statements contained in any certificate or other document delivered by any party hereunder or in connection herewith shall be deemed to constitute representations and warranties made by that party to this Agreement.

          17.4          Incorporation by Reference.  All Exhibits to this Agreement and all documents delivered pursuant to or referred to in this Agreement are herein incorporated by reference and made a part hereof.

          17.5          Parties in Interest.  Nothing in this Agreement, whether express or implied, is intended to, or shall, confer any rights or remedies under, or by reason of, this Agreement, on any person other than the parties hereto and their respective and proper successors and assigns and indemnitees.  Nothing in this Agreement shall act to relieve or discharge the obligation or liability of any third persons to any party to this Agreement.

          17.6          Amendments and Waivers.  This Agreement may not be amended, nor may compliance with any term, covenant, agreement, condition or provision set forth herein be waived (either generally or in a particular instance and either retroactively or prospectively) unless such amendment or waiver is agreed to in writing by all parties hereto.

          17.7          Waiver.  No waiver of any breach of any one of the agreements, terms, conditions, or covenants of this Agreement by the parties shall be deemed to imply or constitute a waiver of any other agreement, term, condition, or covenant of this Agreement.  The failure of any party to insist on strict performance of any agreement, term, condition, or covenant, herein set forth, shall not constitute or be construed as a waiver of the rights of either or the other thereafter to enforce any other default of such agreement, term, condition, or covenant; neither shall such failure to insist upon strict performance be deemed sufficient grounds to enable either party hereto to forego or subvert or otherwise disregard any other agreement, term, condition, or covenants of this Agreement.

          17.8          Governing Law - Construction.  This Agreement, and the rights and obligations of the respective parties, shall be governed by and construed in accordance with the laws of the State of Delaware.  Notwithstanding the preceding sentence, it is acknowledged that each party hereto is being represented by, or has waived the right to be represented by, independent counsel.  Accordingly, the parties expressly agree that no provision of this Agreement shall be construed against any party on the ground that the party or its counsel drafted the provision.  Nor may any provision of this Agreement be construed against any party on the grounds that party caused the provision to be present.

          17.9          Representations and Warranties.  The representations and warranties contained in Sections 9 and 11 of this Agreement shall survive the Closing Date and shall remain operative in full force and effect for eighteen months from the date of Closing regardless of any investigation at any time made by or on behalf of either SKYLYNX, DFTS or DCI and shall not be deemed merged in any document or instrument so executed or delivered by either SKYLYNX, DFTS or DCI.

          17.10          Notices.  Any notice, communication, offer, acceptance, request, consent, reply, or advice (herein severally and collectively, for convenience, called "Notice"), in this Agreement provided or permitted to be given, served, made, or accepted by any party or person to any other party or parties, person or persons, hereunder must be in writing, addressed to the party to be notified at the address set forth below, or such other address as to which one party notifies the other in writing pursuant to the terms of this Section 17.10, and must be served by (i) telefax or other similar electronic method, or (i) depositing the same in the United States mail, certified, return receipt requested and postage paid to the party or parties, person or persons to be notified or entitled to receive same, or (iii) delivering the same in person to such party.

          Notice shall be deemed to have been given immediately when sent by telefax and confirmed received or other electronic method and seventy-two hours after being deposited in the United States mail, or when personally delivered in the manner herein above described.  Notice provided in any manner not specified above shall be effective only if and when received by the party or parties, person or persons to be, or provided to be notified.

          All notices, requests, demands and other communications required or permitted under this Agreement shall be addressed as set forth below:

	 	
If SKYLYNX, to:
	
SKYLYNX COMMUNICATIONS, INC.

	 	 	
500 John Ringling Boulevard

	 	 	
Sarasota, Florida  34242

	 	 	
Fax: (941) 388-2866

	 	 	 
	 	
With copy to:
	
Clifford L. Neuman, Esq.

	 	 	
Clifford L. Neuman, P.C. 

	 	 	
1507 Pine Street

	 	 	
Boulder, Colorado  80302

	 	 	
Fax: (303) 449-1045

	 	 	 
	 	
If DFTS, to:
	
DEFENSE TECHNOLOGY SYSTEMS, INC.

	 	 	
275 K Marcus Blvd.

	 	 	
Hauppauge, NY 11788

	 	 	
Fax: (631)951-4094

	 	 	 
	 	
If DCI,to:
	
DIGITAL COMPUTER INTEGRATION CORPORATION

	 	 	
1009 Jupiter Road, Suite 100

	 	 	
Plano, TX 75074

	 	 	
Fax (972) 509-9280

	 	 	 
	 	
If Shareholders of DCI, to:
	
Zenon Maciekowicz, Jr. 

	 	 	
5825 Cardigan Drive

	 	 	
Plano, TX 75093

          Any party receiving a facsimile transmission shall be entitled to rely upon a facsimile transmission to the same extent as if it were an original.  Any party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 17.10 for the giving of notice.

          17.11          Fax/Counterparts.  This Agreement may be executed by telex, telecopy or other facsimile transmission, and such facsimile transmission shall be valid and binding to the same extent as if it were an original.  Further, this Agreement may be signed in one or more counterparts, all of which when taken together shall constitute the same documents.  For all evidentiary purposes, any one complete counter set of this Agreement shall be considered an original.

          17.12          Captions.  The caption and heading of various sections and paragraphs of this Agreement are for convenience only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

          17,13          Severability.  Wherever there is any conflict between any provision of this Agreement and any Governmental Requirement or judicial precedent, the latter shall prevail, but in such event the provisions of this Agreement thus affected shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law.  In the event that any part, section, paragraph or clause of this Agreement shall be held by a court of proper jurisdiction to be invalid or unenforceable, the entire Agreement shall not fail on account thereof, but the balance of the Agreement shall continue in full force and effect unless such construction would clearly be contrary to the intention of the parties or would result in unconscionable injustice.

          17.14          Good Faith Cooperation and Additional Documents.  The parties shall use their best good faith efforts to fulfill all of the conditions set forth in this Agreement over which it has control or influence.  Each party covenants and agrees to cooperate in good faith and to enter into and deliver such other documents and papers as the other party reasonably shall require in order to consummate the transactions contemplated hereby, provided in each instance, any such document is in form and substance approved by the parties and their respective legal counsel.

          17.15          Specific Performance.  The obligations of the parties under Sections 2 and 3 are unique.  If either party should default in its obligations under said Section, the parties each acknowledge that it would be extremely difficult and impracticable to measure the resulting damages; accordingly, the non-defaulting party, in addition to any other available rights and remedies, may sue in equity for injunction (mandatory or prohibitive) or specific performance (all without the need to post a bond or undertaking of any nature), and the parties each expressly waive the defense that a remedy at law in damages is adequate.

          17.16          Assignment.  Neither party may directly or indirectly assign or delegate, by operation of law or otherwise, all or any portion of its/their/his rights, obligations or liabilities under this Agreement without the prior written consent of all other parties, which consent may be withheld in their respective sole and absolute discretion.  Any purported assignment or delegation without such consent shall be null and void.

          For purposes of this Section, the term "Agreement" shall include this Agreement and the Exhibits and other documents attached hereto or described in this Section 17.17.  This Agreement, and other documents delivered pursuant to this Agreement, contain all of the terms and conditions agreed upon by the parties relating to the subject matter of this Agreement and supersede all prior and contemporaneous agreements, letters of intent, representations, warranties, disclosures, negotiations, correspondence, undertakings and communications of the parties, oral or written, respecting that subject matter, including but not limited to the Original Agreement and Plan of Reorganization and the Amendment Agreements entered into by the parties.

          17.17          Time.  Time is of the essence of this Agreement and each of its provisions.

[Signature Pages Follow]

          IN WITNESS WHEREOF, the parties have signed the Agreement the date and year first above written.

		

SKYLYNX ACQUISITION CORP.,

a Colorado corporation

    
		

/s/ Steven D. Smith

Steven D. Smith, COO

    
		
		

SKYLYNX COMMUNICATIONS, INC.,

    
		a Delaware corporation  

    
		

/s/ Steven D. Smith

Steven D. Smith, COO

    
		

    
		

DIGITAL COMPUTER INTEGRATION CORPORATION

		A Texas corporation

    
		

/s/ Zenon Maciekowicz

    
		Zenon Maciekowicz, President

    
		
		DEFENSE TECHNOLOGY SYSTEMS, INC.

    
		A Delaware Corporation

    
		/s/ Russell P. Medina

    
		Russell P. Medina, President

    
		

    
		DCI SHAREHOLDERS:

      

    
		ZENON MACIEKOWICZ, JR.

    
		

/s/ Zenon Maciekowicz

    
		

    
		CLARA JANE MACIEKOWICZ

      

    
		/s/ Clara Jane Maciekowicz<PAGE>

Exhibit 4.12

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER
HEREOF, BY PURCHASING SUCH SECURITIES AGREES FOR THE BENEFIT OF THE COMPANY THAT
SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT, OR (C) IF REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS. IN ADDITION, A SECURITIES PURCHASE AGREEMENT, DATED AS OF THE
DATE HEREOF, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS PRINCIPAL
EXECUTIVE OFFICE, CONTAINS CERTAIN ADDITIONAL AGREEMENTS AMONG THE PARTIES,
INCLUDING, WITHOUT LIMITATION, PROVISIONS WHICH (A) LIMIT THE CONVERSION RIGHTS
OF THE HOLDER, (B) SPECIFY VOLUNTARY AND MANDATORY REPAYMENT, PREPAYMENT AND
REDEMPTION RIGHTS AND OBLIGATIONS AND (C) SPECIFY EVENTS OF DEFAULT FOLLOWING
WHICH THE REMAINING BALANCE DUE AND OWING HEREUNDER MAY BE ACCELERATED.

No.  1                                                                $1,250,000

                              12% CONVERTIBLE NOTE
                                       of

         Miracor Diagnostics, Inc., a Utah corporation (together with its
successors, the "Company"), for value received hereby promises to pay to:

                       GLOBAL CAPITAL FUNDING GROUP, L.P.

(the "Holder") and registered assigns, the principal sum of One Million Two
Hundred Fifty Thousand Dollars ($1,250,000) or, if less, the principal amount of
this Note then outstanding, on the Maturity Date by wire transfer of immediately
available funds to the Holder in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of
public and private debts, and to pay interest, which shall begin to accrue on
the date of this Note, quarterly in arrears, on (i) the last day of March, June,
September and December of each year until the Maturity Date, commencing
September 30, 2003 (unless such day is not a Business Day, in which event on the
next succeeding Business Day) (each an "Interest Payment Date"), (ii) the
Maturity Date, (iii) each Conversion Date, as hereafter defined, and (iv) the
date the principal amount of the Convertible Note shall be declared to be or
shall automatically become due and payable, on the principal sum hereof
outstanding in like coin or currency, at the rates per annum set forth below,
from the most recent Interest Payment Date to which interest has been paid on
this Convertible Note, or if no interest has been paid on this Convertible Note,
from the date of this Convertible Note until payment in full of the principal
sum hereof has been made. The Maturity Date is June 17, 2007.

         The interest rate shall be twelve percent (12%) per annum (the
"Interest Rate") or, if less, the maximum rate permitted by applicable law. Past
due amounts (including interest, to the extent permitted by law) will also
accrue interest at the Interest Rate plus 2% per annum or, if less, the maximum
rate permitted by applicable law, and will be payable on demand ("Default
Interest"). Interest on this Convertible Note will be calculated on the basis of
a 360-day year of twelve 30 day months. All payments of principal and interest
hereunder shall be made in cash for the benefit of the Holder pursuant to the
terms of the Agreement (hereafter defined). At the option of the Holder,
interest may be paid in cash or in shares of Common Stock.

         This Convertible Note (this "Convertible Note") is one of a duly
authorized issuance of $1,250,000 aggregate principal amount Convertible Note
made by the Company referred to in that certain Securities Purchase Agreement
dated as of the date hereof between the Company and the Purchaser named therein
(the "Agreement"). The Agreement contains certain additional agreements among
the parties with respect to the terms of this Convertible Note, including,

<PAGE>

without limitation, provisions which (A) limit the conversion rights of the
Holder, (B) specify voluntary and mandatory redemption rights and obligations
and (C) specify Events of Default following which the remaining balance due and
owing hereunder may be accelerated. All such provisions are an integral part of
this Convertible Note and are incorporated herein by reference. This Convertible
Note is transferable and assignable to one or more Persons, in accordance with
the limitations set forth in the Agreement.

         The Company shall keep a register (the "Register") in which shall be
entered the names and addresses of the registered holder of this Convertible
Note and particulars of this Convertible Note held by such holder and of all
transfers of this Convertible Note. References to the Holder or "Holders" shall
mean the Person listed in the Register as registered holder of such Convertible
Notes. The ownership of this Convertible Note shall be proven by the Register.

         1) CERTAIN TERMS DEFINED. All terms defined in the Agreement and not
otherwise defined herein shall have for purposes hereof the meanings provided
for in the Agreement.

         2) COVENANTS. The Company covenants and agrees to observe and perform
each of its covenants, obligations and undertakings contained in the Agreement,
which obligations and undertakings are expressly assumed herein by the Company
and made for the benefit of the holder hereof.

         3) PAYMENT OF PRINCIPAL.

         a)       PREPAYMENT OF NOTE. For so long as no Event of Default shall
                  have occurred and is continuing and the Company is not in
                  receipt of a Notice of Conversion from the Holder of the Note,
                  the Company may, at its option, prepay, in whole or in part,
                  this Convertible Note for a pre-payment price (the "Prepayment
                  Price") equal to the outstanding principal amount of the Note,
                  plus all accrued and unpaid interest. The Company shall not be
                  entitled to send any notice of prepayment and begin the
                  prepayment procedure unless it has (i) the full amount of the
                  Prepayment Price, in cash, available in a demand or other
                  immediately available account in a bank or similar financial
                  institution or (ii) immediately available credit facilities,
                  in the full amount of the Prepayment Price, with a bank or
                  similar financial institution on the date the prepayment
                  notice is sent to the Holders of this Convertible Note.
                  Provided, however, the Company will process any Notice of
                  Conversion received prior to the issuance of a notice of
                  prepayment; and further provided that, after a notice of
                  prepayment has been issued, the Holder may issue a Notice of
                  Conversion which will not be honored unless the Company fails
                  to make the prepayment payment when due. In the event of such
                  failure, the Notice of Conversion will be honored as of the
                  date of the Notice of Conversion

         b)       PAYMENT ON MATURITY DATE. The Company shall repay the
                  remaining unpaid balance of this Convertible Note along with
                  any unpaid interest on the Maturity Date.

         4) CONVERSION.

         a) CONVERSION OF CONVERTIBLE NOTE. Subject to Section 5 hereof, the
         Holder shall have the right, at its option, at any time from and after
         the third anniversary of the date of issuance of this Convertible Note,
         convert the principal amount of this Convertible Note, or any portion
         of such principal amount, into that number of fully paid and
         nonassessable shares of Common Stock (as such shares shall then be
         constituted) determined pursuant to this Section 4.1; provided,
         however, this Convertible Note shall be immediately convertible, at the
         option of the Holder, upon an Event of Default. The number of shares of
         Common Stock to be issued upon each conversion of this Convertible Note
         shall be determined by dividing the Conversion Amount (as defined
         below) by the Conversion Price in effect on the date (the "Conversion
         Date") a Notice of Conversion is delivered to the Company, as
         applicable, by the Holder by facsimile or other reasonable means of
         communication dispatched prior to 5:00 p.m., E.S.T. The term
         "Conversion Amount" means, with respect to any conversion of this
         Convertible Note, the sum of (1) the principal amount of this
         Convertible Note to be converted in such conversion plus (2) accrued

                                       2
<PAGE>

         and unpaid interest, if any, on such principal amount at the interest
         rates provided in this Convertible Note to the Conversion Date plus (3)
         Default Interest, if any, on the interest referred to in the
         immediately preceding clause (2) plus (4) at the Holder's option, any
         amounts owed to the Holder pursuant to Section 4.3 hereof, Section 10.1
         of the Agreement or Section 10.4 of the Agreement.

         b) CONVERSION PRICE. At the option of the Holder, any portion or all of
         the outstanding principal amount of this Convertible Note shall be
         converted into a number of shares of Common Stock at the conversion
         price (the "Conversion Price") equal to $0.25.

         c) AUTHORIZED SHARES.

                  i) Consistent with Section 7.11 of the Agreement, the Company
         (i) shall promptly irrevocably instruct the Company's transfer agent to
         issue certificates for the Common Stock issuable upon conversion of
         this Convertible Note and (ii) agrees that its issuance of this
         Convertible Note shall constitute full authority to its officers and
         agents who are charged with the duty of executing stock certificates to
         execute and issue the necessary certificates for shares of Common Stock
         in accordance with the terms and conditions of this Convertible Note.

                  ii) If at any time a Holder of this Convertible Note submits a
         Notice of Conversion (x) the Company does not have sufficient
         authorized but unissued shares of Common Stock available to effect such
         conversion in full in accordance with the provisions of this Article 4
         or (y) the Company is prohibited by the applicable rules of the OTC
         Bulletin Board or the National Market on which the Common Shares are
         listed and traded at that time to effect such conversion in full as
         provided in subsection (d) below, without stockholder approval (each, a
         "Conversion Default"), the Company shall issue to the Holder all of the
         shares of Common Stock which are then available to effect such
         conversion. The portion of this Convertible Note which the Holder
         included in its Conversion Notice and which exceeds the amount which is
         then convertible into available shares of Common Stock (the "Excess
         Amount") shall, notwithstanding anything to the contrary contained
         herein, not be convertible into Common Stock in accordance with the
         terms hereof until (and at the Holder's option at any time after) the
         date additional shares of Common Stock are authorized by the Company,
         or its stockholders, as applicable. The Company shall pay to the Holder
         payments ("Conversion Default Payments") for a Conversion Default in
         the amount of (N/365) x .24 x the Excess Amount on the Conversion Date
         in respect of the Conversion Default (the "Conversion Default Date"),
         where N = the number of days from the Conversion Default Date to the
         date (the "Authorization Date") that the Company, or its stockholders,
         as applicable, authorizes a sufficient number of shares of Common Stock
         to effect conversion of the full outstanding principal balance of this
         Convertible Note. The Company shall use its best efforts to authorize,
         or cause its stockholders to authorize within 40 days of the occurrence
         of a Conversion Default, a sufficient number of shares of Common Stock
         as soon as practicable following the earlier of (i) such time that the
         Holder notifies the Company or that the Company otherwise becomes aware
         that there are or likely will be insufficient shares to allow full
         conversion thereof and (ii) a Conversion Default. The Company shall
         send notice to the Holder of the authorization of additional shares of
         Common Stock, the Authorization Date and the amount of Holder's accrued
         Conversion Default Payments. The accrued Conversion Default Payments
         for each calendar month shall be paid in cash or shall be convertible
         into Common Stock (at such time as there are sufficient authorized
         shares of Common Stock) at the Market Price, at the Holder's option, as
         follows:

                           (1) In the event the Holder elects to take such
                  payment in cash, cash payment shall be made to Holder by the
                  fifth Business Day of the month following the month in which
                  it has accrued; and

                           (2) In the event the Holder elects to take such
                  payment in Common Stock, the Holder may convert such payment
                  amount into Common Stock at the Market Price (as in effect at
                  the time of conversion) at any time after the fifth Business
                  Day of the month following the month in which it has accrued
                  (at such time as there are sufficient authorized shares of
                  Common Stock) in accordance with the terms of this Article 4.

                                       3
<PAGE>

                  (c) The Holder's election pursuant to this Section 4.3 shall
         be made in writing to the Company at any time prior to 5:00 p.m.,
         E.S.T., on the third Business Day of the month following the month in
         which Conversion Default payments have accrued. If no election is made,
         the Holder shall be deemed to have elected to receive cash. Nothing
         herein shall limit the Holder's right to pursue actual damages (to the
         extent in excess of the Conversion Default Payments) due to the
         Company's failure to maintain a sufficient number of authorized shares
         of Common Stock.

                  (d) In no event shall the Company issue more than the Maximum
         Number of Shares upon conversion of this Convertible Note, unless the
         Company shall have obtained approval by the stockholders of the Company
         ("Stockholder Approval") or a waiver of such requirement by the OTC
         Bulletin Board or the National Market on which the Common Shares are
         listed and traded at that time. Once the Maximum Number of Shares has
         been issued (the date of which is hereinafter referred to as the
         "Maximum Conversion Date"), unless the Company shall have obtained
         Stockholder Approval or a waiver of such requirement by the OTC
         Bulletin Board or the National Market on which the Common Shares are
         listed and traded at that time within 40 days of the Maximum Conversion
         Date, the Company shall pay to the Holder within five (5) Business Days
         of the expiration of such 40 day period, the Redemption Price plus
         accrued and unpaid Default Interest, if any. The Maximum Number of
         Shares shall be subject to adjustment from time to time for stock
         splits, stock dividends, combinations, capital reorganizations and
         similar events relating to the Common Stock occurring after the date
         hereof as contemplated by Article XI of the Agreement. In the event
         that the Company obtains Stockholder Approval, approval of the OTC
         Bulletin Board or the National Market on which the Common Shares are
         listed and traded at that time, or otherwise is able to increase the
         number of shares to be issued above the Maximum Number of Shares (such
         increased number being the "New Maximum Number of Shares"), the
         references to Maximum Number of Shares above shall be deemed to be,
         instead, references to the New Maximum Number of Shares.

         d) METHOD OF CONVERSION.

                  (a) Notwithstanding anything to the contrary set forth herein,
         upon conversion of this Convertible Note in accordance with the terms
         hereof, the Holder shall not be required to physically surrender this
         Convertible Note to the Company unless the entire unpaid principal
         amount of this Convertible Note is so converted. Rather, records
         showing the principal amount converted (or otherwise repaid) and the
         date of such conversion or repayment shall be maintained on a ledger
         substantially in the form of Annex A attached hereto (a copy of which
         shall be delivered to the Company or transfer agent with each Notice of
         Conversion). It is specifically contemplated that the Holder hereof
         shall act as the calculation agent for conversions and repayments. In
         the event of any dispute or discrepancies, such records maintained by
         the Holder shall be controlling and determinative in the absence of
         manifest error or failure of Holder to record the principal amount
         converted (or otherwise repaid) from time to time, in which events the
         record of the Company shall be controlling and determinative. The
         Holder and any assignee, by acceptance of this Convertible Note,
         acknowledge and agree that, by reason of the provisions of this
         paragraph, following a conversion of a portion of this Convertible
         Note, the principal amount represented by this Convertible Note will be
         the amount indicated on ANNEX A attached hereto (which may be less than
         the amount stated on the face hereof).

                  (b) The Company shall not be required to pay any tax which may
         be payable in respect of any transfer involved in the issuance and
         delivery of shares of Common Stock or other securities or property on
         conversion of this Convertible Note in a name other than that of the
         Holder (or in street name), and the Company shall not be required to
         issue or deliver any such shares or other securities or property unless
         and until the person or persons (other than the Holder or the custodian
         in whose street name such shares are to be held for the Holder's
         account) requesting the issuance thereof shall have paid to the Company
         the amount of any such tax or shall have established to the
         satisfaction of the Company that such tax has been paid.

                  (c) Subject to Section 5 hereof, upon receipt by the Company
         of a Notice of Conversion, the Holder shall be deemed to be the holder
         of record of the Common Stock issuable upon such conversion, the
         outstanding principal amount and the amount of accrued and unpaid
         interest on this Convertible Note shall be deemed reduced to reflect
         such conversion, and, unless the Company defaults on its obligations

                                       4
<PAGE>

         under this Article 4, all rights with respect to the portion of this
         Convertible Note being so converted shall forthwith terminate except
         the right to receive the Common Stock or other securities, cash or
         other assets, as herein provided, on such conversion. Subject to
         Section 5 hereof, if the Holder shall have given a Notice of Conversion
         as provided herein, the Company's obligation to issue and deliver the
         certificates for shares of Common Stock shall be absolute and
         unconditional, irrespective of the absence of any action by the Holder
         to enforce the same, any waiver or consent with respect to any
         provisions thereof, the recovery of any judgment against any person or
         any action by the Holder to enforce the same, any failure or delay in
         the enforcement of any other obligation of the Company to the Holder of
         record, or any setoff, counterclaim, recoupment, limitation or
         termination, or any breach or alleged breach by the Holder of any
         obligation to the Company, and subject to Section 4.4(a) irrespective
         of any other circumstance which might otherwise limit such obligation
         of the Company to the Holder in connection with such conversion. The
         date of receipt (including receipt via telecopy) of such Notice of
         Conversion shall be the Conversion Date so long as it is received
         before 5:00 p.m., E.S.T., on such date.

                  (d) Notwithstanding the foregoing, if a Holder has not
         received certificates for all shares of Common Stock prior to the
         expiration of the Deadline with respect to a conversion of any portion
         of this Convertible Note for any reason, then (unless the Holder
         otherwise elects to retain its status as a holder of Common Stock by so
         notifying the Company), the Holder shall regain the rights of a Holder
         of this Convertible Note with respect to such unconverted portions of
         this Convertible Note and the Company shall, as soon as practicable,
         return such unconverted Convertible Note to the holder or, if the
         Convertible Note has not been surrendered, adjust its records to
         reflect that such portion of this Convertible Note not been converted.
         In all cases, the Holder shall retain all of its rights and remedies
         including, without limitation, the right to receive Conversion Default
         Payments to the extent required thereby for such Conversion Default and
         any subsequent Conversion Default.

                  (e) In lieu of delivering physical certificates representing
         the Common Stock issuable upon conversion, provided the Company's
         transfer agent is participating in the Depository Trust Company ("DTC")
         Fast Automated Securities Transfer program, upon request of the Holder
         and its compliance with the provisions contained in Section 4.1 and in
         this Section 4.4, the Company shall use its best efforts to cause its
         transfer agent to electronically transmit the Common Stock issuable
         upon conversion to the Holder by crediting the account of Holder's
         Prime Broker with DTC through its Deposit Withdrawal Agent Commission
         System.

         5) REDEMPTION BY COMPANY.

         a) MANDATORY REDEMPTION. In accordance with the provisions of the
         Purchase Agreement, the Company may be required under certain
         circumstances, to redeem in whole or in part, the remaining unpaid
         principal amount of this Convertible Note, for cash at a redemption
         price (the "Redemption Price") equal to the greater of (A) the
         applicable Prepayment Price and (B) (x) the number of shares of Common
         Stock into which this Convertible Note is then convertible, times (y)
         the average Closing Bid Price of Common Stock for the five (5) Trading
         Days as reported by Bloomberg L.P. immediately preceding the date that
         this Convertible Note is called for redemption, plus accrued and unpaid
         interest.

         b) MECHANICS OF REDEMPTION. The Company shall effect each such
         redemption within 10 business days of receiving a notice to redeem by
         facsimile with a copy by either overnight or 2-day courier from the
         Holder of this Convertible Note. Such redemption notice shall indicate
         whether the Company is required to redeem all or part of such portion
         of the Convertible Note and the applicable Redemption Price.

         c) PAYMENT OF REDEMPTION PRICE. The Redemption Price shall be paid to
         the Holder of this Convertible Note within 10 business days of the
         delivery of the notice of such redemption to such Holder.

                                       5
<PAGE>

         6) MISCELLANEOUS. This Convertible Note shall be deemed to be a
         contract made under the laws of the State of California, and for all
         purposes shall be governed by and construed in accordance with the laws
         of said State. The parties hereto, including all guarantors or
         endorsers, hereby waive presentment, demand, notice, protest and all
         other demands and notices in connection with the delivery, acceptance,
         performance and enforcement of this Convertible Note, except as
         specifically provided herein, and asset to extensions of the time of
         payment, or forbearance or other indulgence without notice. The Company
         hereby submits to the exclusive jurisdiction of the United States
         District Court for the State of California and any state court sitting
         in San Diego, California for purposes of all legal proceedings arising
         out of or relating to this Convertible Note. The Company irrevocably
         waives, to the fullest extent permitted by law, any objection which it
         may now or hereafter have to the laying of the venue of any such
         proceeding brought in such a court and any claim that any such
         proceeding brought in such a court has been brought in an inconvenient
         forum. The Company hereby irrevocably waives any and all right to trial
         by jury in any legal proceeding arising out of or relating to this
         Convertible Note.

         The Holder of this Convertible Note by acceptance of this Convertible
Note agrees to be bound by the provisions of this Convertible Note which are
expressly binding on such Holder.

                             SIGNATURE PAGE FOLLOWS

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

         Dated:  June 17, 2003

                                              MIRACOR DIAGNOSTICS, INC.

                                              By:
                                              Name:_____________________________
                                              Title:____________________________

                                       6

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